Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | $ 599.1 | ||
Entity Common Stock, Shares Outstanding | 94,512,541 | ||
Documents Incorporated by Reference | 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 16, 2023 are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000712034 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 62.2 | $ 41.2 | |
Accounts receivable less allowances of $26.6 and $27.6, respectively | 384.1 | 416.1 | |
Inventories | 395.2 | 428 | |
Other current assets | 40.8 | 39.6 | |
Total current assets | 882.3 | 924.9 | |
Total property, plant and equipment | 589.2 | 656.4 | |
Less: accumulated depreciation | (404.1) | (441.8) | |
Net property, plant and equipment | [1] | 185.1 | 214.6 |
Right of use asset, leases | 88.8 | 105.2 | |
Deferred income taxes | 99.7 | 115.9 | |
Goodwill | 671.5 | 802.5 | |
Identifiable intangibles, net of accumulated amortization of $380.7 and $346.1, respectively | 847 | 902.2 | |
Other non-current assets | 20.3 | 26 | |
Total assets | 2,794.7 | 3,091.3 | |
Current liabilities: | |||
Notes payable | 10.3 | 9.4 | |
Current portion of long-term debt | 49.7 | 33.6 | |
Accounts payable | 239.5 | 308.2 | |
Accrued compensation | 38.3 | 56.9 | |
Accrued customer program liabilities | 103.3 | 101.4 | |
Lease liabilities | 21.2 | 24.4 | |
Current portion of contingent consideration | 0 | 24.8 | |
Other current liabilities | 126.7 | 149.9 | |
Total current liabilities | 589 | 708.6 | |
Long-term debt, net of debt issuance costs of $8.4 and $9.6, respectively | 936.5 | 954.1 | |
Long-term lease liabilities | 75.2 | 89 | |
Deferred income taxes | 144.1 | 145.2 | |
Pension and post-retirement benefit obligations | 155.5 | 222.3 | |
Contingent consideration | 0 | 12 | |
Other non-current liabilities | 84.3 | 95.3 | |
Total liabilities | 1,984.6 | 2,226.5 | |
Stockholders' equity: | |||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; none issued and none outstanding | 0 | 0 | |
Common stock, $0.01 par value, 200,000,000 shares authorized; 98,851,581 and 100,118,494 shares issued and 94,260,926 and 95,817,946 outstanding, respectively | 1 | 1 | |
Treasury stock, 4,590,655 and 4,300,548 shares, respectively | (43.4) | (40.9) | |
Paid-in capital | 1,897.2 | 1,902.2 | |
Accumulated other comprehensive loss | (540.3) | (535.5) | |
Accumulated deficit | (504.4) | (462) | |
Total stockholders' equity | 810.1 | 864.8 | |
Total liabilities and stockholders' equity | $ 2,794.7 | $ 3,091.3 | |
[1] Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowances | $ 26.6 | $ 27.6 |
Amortizable intangible assets, accumulated amortization | 380.7 | 346.1 |
Debt Issuance cost, unamortized | $ 8.4 | $ 9.6 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 98,851,581 | 100,118,494 |
Common stock, shares outstanding (in shares) | 94,260,926 | 95,817,946 |
Treasury stock, shares (in shares) | 4,590,655 | 4,300,548 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Net sales | $ 1,947,600,000 | $ 2,025,300,000 | $ 1,655,200,000 | |
Cost of products sold | 1,395,300,000 | 1,410,400,000 | 1,162,800,000 | |
Gross profit | 552,300,000 | 614,900,000 | 492,400,000 | |
Operating costs and expenses: | ||||
Selling, general and administrative expenses | 376,700,000 | 392,600,000 | 336,300,000 | |
Amortization of intangibles | 41,500,000 | 46,300,000 | 32,800,000 | |
Restructuring charges | 9,600,000 | 6,000,000 | 10,900,000 | |
Goodwill impairment | 98,700,000 | 0 | 0 | |
Change in fair value of contingent consideration | (9,000,000) | 19,000,000 | 0 | |
Total operating costs and expenses | 517,500,000 | 463,900,000 | 380,000,000 | |
Operating income | [1] | 34,800,000 | 151,000,000 | 112,400,000 |
Non-operating expense (income): | ||||
Interest expense | 45,600,000 | 46,300,000 | 38,800,000 | |
Interest income | (8,300,000) | (1,900,000) | (1,000,000) | |
Non-operating pension income | (4,500,000) | (7,900,000) | (5,600,000) | |
Other (income) expense, net | (12,900,000) | 3,100,000 | 1,600,000 | |
Income before income tax | 14,900,000 | 111,400,000 | 78,600,000 | |
Income tax expense | 28,100,000 | 9,500,000 | 16,600,000 | |
Net (loss) income | $ (13,200,000) | $ 101,900,000 | $ 62,000,000 | |
Per share: | ||||
Basic income per share (in dollars per share) | $ (0.14) | $ 1.07 | $ 0.65 | |
Diluted income per share (in dollars per share) | $ (0.14) | $ 1.05 | $ 0.65 | |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 95.3 | 95.5 | 94.9 | |
Diluted (in shares) | [2] | 95.3 | 97.1 | 96.1 |
[1] Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; v) less restructuring charges; and vi) less change in the fair value of contingent consideration. Due to the net loss during the twelve months ended December 31, 2022, the denominator in the diluted earnings per share calculation does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as it would result in a less dilutive computation. As a result, diluted earnings per share for the twelve months ended December 31, 2022 are the same as basic earnings per share. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (13.2) | $ 101.9 | $ 62 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (loss) income on derivative instruments, net of tax benefit (expense) of $1.4, $(3.0) and $1.1, respectively | (2.9) | 7.1 | (2.9) |
Foreign currency translation adjustments, net of tax benefit (expense) of $3.8, $(2.3) and $(3.3), respectively | (37.9) | (23.4) | (19.3) |
Recognition of deferred pension and other post-retirement items, net of tax (expense) benefit of $(15.5), $(12.3) and $10.5, respectively | 36 | 45 | (36.3) |
Other comprehensive (loss), income net of tax | (4.8) | 28.7 | (58.5) |
Comprehensive (loss) income | $ (18) | $ 130.6 | $ 3.5 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 1.4 | $ (3) | $ 1.1 |
Other comprehensive income (loss), foreign currency translation adjustment, tax | 3.8 | (2.3) | (3.3) |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax | $ (15.5) | $ (12.3) | $ (10.5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net (loss) income | $ (13,200,000) | $ 101,900,000 | $ 62,000,000 |
Amortization of inventory step-up | 0 | 3,000,000 | 0 |
Payments of contingent consideration | (9,200,000) | 0 | 0 |
Gain (loss) on disposal of assets | (3,600,000) | 100,000 | 200,000 |
Deferred income tax expense (benefit) | 1,300,000 | (21,000,000) | (7,600,000) |
Change in fair value of contingent liability | (9,000,000) | 19,000,000 | 0 |
Depreciation | 37,900,000 | 39,400,000 | 37,900,000 |
Amortization of debt issuance costs | 2,700,000 | 2,800,000 | 2,400,000 |
Amortization of intangibles | 41,500,000 | 46,300,000 | 32,800,000 |
Stock-based compensation | 9,500,000 | 15,200,000 | 6,500,000 |
Loss on debt extinguishment | 0 | 3,700,000 | 0 |
Non-cash charge for goodwill impairment | 98,700,000 | 0 | 0 |
Other non-cash items | 0 | 0 | 1,100,000 |
Changes in balance sheet items: | |||
Accounts receivable | 31,600,000 | (77,600,000) | 101,600,000 |
Inventories | 23,200,000 | (131,800,000) | 2,200,000 |
Other assets | 400,000 | (1,200,000) | 14,700,000 |
Accounts payable | (66,000,000) | 131,200,000 | (68,800,000) |
Accrued expenses and other liabilities | (57,500,000) | 26,300,000 | (58,200,000) |
Accrued income taxes | (10,700,000) | 2,300,000 | (7,600,000) |
Net cash provided by operating activities | 77,600,000 | 159,600,000 | 119,200,000 |
Investing activities | |||
Additions to property, plant and equipment | (16,500,000) | (21,200,000) | (15,300,000) |
Proceeds from the disposition of assets | 7,200,000 | 0 | 0 |
Cost of acquisitions, net of cash acquired | 0 | 15,400,000 | (339,400,000) |
Net cash used by investing activities | (9,300,000) | (5,800,000) | (354,700,000) |
Financing activities | |||
Proceeds from long-term borrowings | 236,700,000 | 659,700,000 | 438,600,000 |
Repayments of long-term debt | (220,500,000) | (766,300,000) | (151,900,000) |
Proceeds of notes payable, net | 700,000 | 3,700,000 | 2,100,000 |
Payment for debt premium | 0 | (9,800,000) | 0 |
Payments for debt issuance costs | (1,200,000) | (10,500,000) | (3,200,000) |
Dividends paid | (28,600,000) | (25,800,000) | (24,600,000) |
Payments of contingent consideration | (17,800,000) | (400,000) | 0 |
Repurchases of common stock | (19,400,000) | 0 | (18,900,000) |
Payments related to tax withholding for stock-based compensation | (2,500,000) | (900,000) | (1,800,000) |
Proceeds from the exercise of stock options | 4,300,000 | 3,100,000 | 4,400,000 |
Net cash (used) provided by financing activities | (48,300,000) | (147,200,000) | 244,700,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 1,000,000 | (2,000,000) | (400,000) |
Net increase in cash and cash equivalents | 21,000,000 | 4,600,000 | 8,800,000 |
Cash and cash equivalents | |||
Beginning of the period | 41,200,000 | 36,600,000 | 27,800,000 |
End of the period | 62,200,000 | 41,200,000 | 36,600,000 |
Cash paid during the year for: | |||
Interest | 42,600,000 | 37,600,000 | 36,000,000 |
Income taxes | $ 37,500,000 | $ 28,000,000 | $ 32,200,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Accumulated Deficit |
Balance at start of period at Dec. 31, 2019 | $ 773.7 | $ 1 | $ 1,890.8 | $ (505.7) | $ (38.2) | $ (574.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 62 | 62 | ||||
Gain (loss) on derivative financial instruments, net of tax | (2.9) | (2.9) | ||||
Translation impact, net of tax | (19.3) | (19.3) | ||||
Pension and post-retirement adjustment, net of tax | (36.3) | (36.3) | ||||
Common stock repurchases | (18.9) | (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) | 0.1 | 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) |
Balance at start of period (in shares) at Dec. 31, 2019 | 96,445,488 | 100,412,933 | 3,967,445 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,187,369 | 1,406,814 | 219,445 | |||
Common stock repurchase (in shares) | (2,690,292) | (2,690,292) | ||||
Balance at end of period (in shares) at Dec. 31, 2020 | 94,942,565 | 99,129,455 | 4,186,890 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | $ 101.9 | 101.9 | ||||
Gain (loss) on derivative financial instruments, net of tax | 7.1 | 7.1 | ||||
Translation impact, net of tax | (23.4) | (23.4) | ||||
Pension and post-retirement adjustment, net of tax | 45 | 45 | ||||
Stock-based compensation | 15.2 | 16 | (0.8) | |||
Common stock issued, net of shares withheld for employee taxes | 2.2 | 3.1 | $ (0.9) | |||
Dividends declared | (25.8) | (25.8) | ||||
Other | (0.1) | (0.1) | ||||
Balance at end of period at Dec. 31, 2021 | $ 864.8 | $ 1 | 1,902.2 | (535.5) | $ (40.9) | (462) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 875,381 | 989,039 | 113,658 | |||
Common stock repurchase (in shares) | 0 | |||||
Balance at end of period (in shares) at Dec. 31, 2021 | 95,817,946 | 100,118,494 | 4,300,548 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | $ (13.2) | (13.2) | ||||
Gain (loss) on derivative financial instruments, net of tax | (2.9) | (2.9) | ||||
Translation impact, net of tax | (37.9) | (37.9) | ||||
Pension and post-retirement adjustment, net of tax | 36 | 36 | ||||
Common stock repurchases | (19.4) | (19.4) | ||||
Stock-based compensation | 9.5 | 10 | (0.5) | |||
Common stock issued, net of shares withheld for employee taxes | 1.8 | 4.3 | $ (2.5) | |||
Dividends declared | (28.6) | (28.6) | ||||
Other | 0.1 | (0.1) | ||||
Balance at end of period at Dec. 31, 2022 | $ 810.1 | $ 1 | $ 1,897.2 | $ (540.3) | $ (43.4) | $ (504.4) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,185,569 | 1,475,676 | 290,107 | |||
Common stock repurchase (in shares) | (2,742,589) | (2,742,589) | ||||
Balance at end of period (in shares) at Dec. 31, 2022 | 94,260,926 | 98,851,581 | 4,590,655 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends per share, declared (in dollar per share) | $ 0.300 | $ 0.270 | $ 0.260 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1 . Basis of P resentation As used in this Annual Report on Form 10-K for the fiscal year ended December 31, 2022, 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. On April 1, 2021, we completed the acquisition of Franken Planungs-und Organisationsmittel GmbH ("Franken"), for a purchase price of € 2.4 million (US$ 2.8 million, based on April 1, 2021 exchange rates), net of cash acquired of $ 1.1 million. Franken is a provider of visual communication products, including boards, markers, and planning tools, as well as creative and training products. Franken is a German company that is included in the Company’s EMEA reporting segment. Effective December 17, 2020, we completed the acquisition of PowerA, a leading provider of third-party video gaming console accessories primarily in North America. The purchase price was $ 321.8 million, net of a working capital adjustment received of $ 18.2 million, plus an additional earnout of up to $ 55.0 million in cash, contingent upon PowerA achieving one- and two-year sales and profit objectives. The fair value of the contingent earnout liability was zero as of December 31, 2022 . The results of PowerA are included in all three of the Company's segments effective December 17, 2020. For more information on these acquisitions, see "Note 3 . Acquisitions." |
Significant Accounting Policies
Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards | 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, technology and business branded products used in schools, homes and at work. 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 business branded products used in schools, homes and at work. 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 gaming and computer accessories; storage and organization; notebooks; shredding; laminating and binding machines; stapling; punching; planners; 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 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 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/cash 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 did no t capitalize any interest for the years ended December 31, 2022 and 2021 , and capitalized $ 0.3 million of interest for the year ended December 31, 2020 . 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 year s. We performed our annual assessment, in the second quarter of 2022 , on a qualitative basis, and concluded that it was not more likely than no t that the fair value of any indefinite-lived intangible was less than its carrying amount. During 2022, our revenue generated from our Leitz indefinite-lived trade name has declined. Accordingly, as of August 31, 2022, we completed an impairment assessment, on a quantitative basis, for our Leitz indefinite-lived trade name. The result of our assessment was that the fair value of the Leitz ® indefinite-lived trade name exceeded its carrying value by less than five percent and we concluded that no impairment existed. In addition, we have not identified a triggering event through December 31, 2022 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 2022 , on a quantitative basis, and concluded that it was no t more likely than not that the fair value of any reporting unit was less than its carrying amount. During the third quarter of 2022, our market capitalization declined further compared to the second quarter of 2022 . In addition, our forecasted cash flows for our North America and EMEA reporting units decreased due to lower inventory replenishment by major retailers, lower sales of gaming accessories, and a challenging demand environment in several countries within EMEA. As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of August 31, 2022, we completed a goodwill impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $ 98.7 million . The result of our assessment for the International and EMEA reporting units was that the fair value of each exceeded its carrying value by greater than ten percent and fifty percent, respectively, and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both discounted cash flows and a market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. The implied fair values of all three of our reporting units, more likely than not, exceed their carrying values at December 31, 2022 . In addition, we have not identified a triggering event that would cause us to perform another quantitative goodwill impairment analysis. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, we may be required to record additional goodwill impairment charges in future periods. 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 basis 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. As of December 31, 2022, the Company has recorded $ 5.5 million of deferred taxes on approximately $ 216.0 million of unremitted earnings of non-U.S. subsidiaries that may be remitted to the U.S. The Company has approximately $ 299.0 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; in-store promotional allowances; shared media and customer catalog allowances; other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowances for discounts. 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 to sixty month s, however, most agreements are one year or less. We generally receive payment at inception of the EMAs and recognize revenue over the term of the agreement on a straight line basis. 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 $ 108.8 million , $ 117.4 million and $ 99.0 million for the years ended December 31, 2022, 2021 and 2020, 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 $ 26.3 million , $ 26.6 million and $ 19.7 million for the years ended December 31, 2022, 2021 and 2020 , respectively, are classified as SG&A expenses and are charged to expense as incurred. Stock-Based Compensation Our primary types of stock-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 There are no recently issued accounting pronouncements that are expected to have an impact on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 202-04, Reference Rate Reform (Topic 848), 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. Effective in the fourth quarter of 2022, 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 2022 that had a material effect on the Company’s financial condition, results of operations or cash flow. In December 2019, the 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. Effective January 1, 2021, 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 2021 that had a material effect on the Company’s financial condition, results of operations or cash flow. 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 3 . Acquisitions Acquisition of Franken On April 1, 2021, we completed the acquisition of Franken, for a purchase price of € 2.4 million (US$ 2.8 million, based on April 1, 2021 exchange rates), net of cash acquired of $ 1.1 million. Franken is a provider of visual communication products, including boards, markers, planning tools, as well as creative and training products. Franken is a German company that is included in the Company’s EMEA reporting segment. Pro forma financial information is not presented due to immateriality. Acquisition of PowerA Effective December 17, 2020, we completed the acquisition of PowerA, a leading provider of third-party video gaming console accessories primarily in North America. The results of PowerA are included in all three of the Company's reporting units effective December 17, 2020. The purchase price was $ 321.8 million, net of a working capital adjustment received of $ 18.2 million, plus an additional earnout of up to $ 55.0 million in cash. The PowerA acquisition and related expenses were funded by cash on hand, as well as borrowings from our revolving credit facility. The earnout was contingent upon PowerA achieving one- and two-year sales and profit objectives during 2021 and 2022. During 2022, we paid out $ 27.0 million for the achievement of sales and profit objectives for 2021. Also, PowerA sales and profit objectives were no t met for 2022. Therefore, the fair value of the contingent earnout liability for 2022 was reduced to zero . For accounting purposes, the Company was the acquiring enterprise. The PowerA acquisition was 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. During 2021, we finalized our fair value estimate of assets acquired and liabilities assumed as of the acquisition date. 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 PowerA acquisition: (in millions) At December 17, 2020 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 321.8 Fair value of contingent consideration $ 18.2 Plus fair value of liabilities assumed: Accrued liabilities 9.2 Fair value of liabilities assumed $ 9.2 Less fair value of assets acquired: Inventory 29.3 Property and equipment 0.2 Identifiable intangibles 235.4 Other assets 13.2 Fair value of assets acquired $ 278.1 Goodwill $ 71.1 Transaction costs related to the PowerA acquisition were $ 0.1 million and $ 3.7 million for the years ended December 31, 2021, and 2020, respectively. These costs were reported as 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, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 4.50 to 1.00 2.50 % 1.50 % 0.500 %
≤ 4.50 to 1.00 and > 4.00 to 1.00 2.25 % 1.25 % 0.375 %
≤ 4.00 to 1.00 and > 3.50 to 1.00 2.00 % 1.00 % 0.350 %
≤ 3.50 to 1.00 and > 3.00 to 1.00 1.75 % 0.75 % 0.300 %
≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50 % 0.50 % 0.250 %
≤ 2.00 to 1.00 1.25 % 0.25 % 0.200 % As of December 31, 2022 , the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 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, 2022 , the commitment fee rate was 0.35 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 $ 40.0 million and 1 percent of the Company’s Consolidated Total Assets (as defined in the Credit Agreement, as amended) during any fiscal year; plus (ii) an additional amount not to exceed $ 75.0 million during any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would not be greater than A) 4.25x for the fiscal quarters ending December 31, 2022, March 31, 2023, June 30, 2023 and September 30, 2023, and B) 0.25x inside the applicable Consolidated Leverage Ratio financial covenant thereafter); 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 3.25x; plus (iv) any Net Equity Proceeds (as defined in the Credit Agreement, as amended). Financial Covenants As of December 31, 2022, our Consolidated Leverage Ratio was approximately 4.16 to 1.00 versus our maximum covenant of 4.50 to 1.00. Our Interest Coverage Ratio was approximately 6.56 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 March 2029 (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, 2022, and December 31, 2021, 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, 2022 and 2021: (in millions) December 31, December 31, Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 3.90 % at December 31, 2022 and 2.00 % at December 31, 2021) $ 227.4 $ 254.8 USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.40 % at December 31, 2022 and 2.22 % at December 31, 2021) 84.4 89.0 Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.30 % at December 31, 2022 and 2.11 % at December 31, 2021) 34.9 39.4 U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.36 % at December 31, 2022 and 2.10 % at December 31, 2021) 58.6 13.7 Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 5.18 % at December 31, 2022 and 2.06 % at December 31, 2021) 14.2 25.4 Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25 %) 575.0 575.0 Other borrowings 10.4 9.4 Total debt 1,004.9 1,006.7 Less: Current portion 60.0 43.0 Debt issuance costs, unamortized 8.4 9.6 Long-term debt, net $ 936.5 $ 954.1 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-year senior secured credit facility, which consisted of a € 300.0 million (US$ 320.8 million based on January 27, 2017, exchange rates) term loan facility (the "Euro Term Loan"), an A$ 80.0 million (US$ 60.4 million based on January 27, 2017, exchange rates) term loan facility (the "Australian Term Loan"), and a US$ 600.0 million multi-currency revolving credit facility (the "Revolving Facility"). The USD Term Loan, the Euro Term Loan and the Australian Term Loan are collectively referred to herein as the "Term Loan Facility." From July 2018 to March 2021, the Company entered into five amendments (the "Amendments") to the Credit Agreement 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 following are the key changes, among other things, to the Credit Agreement as a result of the Amendments: • added 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 the LIBOR successor rate procedures did not have a material effect on the Company; • replaced the minimum fixed coverage ratio of 1.25 :1.00 with a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00 :1.00; • required that the Company pay down any amounts on the Revolving Facility when cash and cash equivalents of the loan parties exceed $ 100.0 million; and • amended the maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) financial covenant for the fiscal quarters beginning March 31, 2021, 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 4.00 :1.00 Effective November 7, 2022, the Company entered into a Sixth Amendment (the "Sixth Amendment") to its Third Amended and Restated Credit Agreement, as amended, 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 Sixth Amendment, the Credit Agreement was amended to, among other things: • increase the maximum Consolidated Leverage Ratio financial covenant from current levels for each of the five fiscal quarters beginning December 31, 2022, and ending December 31, 2023, as follows: Quarter Ended Maximum Consolidated Leverage Ratio December 2022 4.50 :1.00 March 2023 5.00 :1.00 June 2023 5.00 :1.00 September 2023 4.75 :1.00 December 2023 4.25 :1.00 • modify the maximum Consolidated Leverage Ratio financial covenant for all first and second fiscal quarters after December 31, 2023, from the current level of 4.00x to 4.50x, while maintaining the current level of 4.00x for all third and fourth fiscal quarters; • limit the maximum Consolidated Leverage Ratio to 5.00 :1.00 at any time, thereby capping any material acquisition step ups for the fiscal quarters ending March 31, 2023, June 30, 2023 and September 30, 2023; • increase the Company’s flexibility under the restricted payments baskets; • remove the anti-cash hoarding provision; and • change the U.S. dollar reference rate from LIBOR-based pricing to SOFR-based pricing, with no changes to existing margins. The current maturity of the Credit Agreement, as amended, is March 31, 2026 . As of December 31, 2022, there was $ 72.8 million in borrowings outstanding under the Revolving Facility. The remaining amount available for borrowings was $ 517.8 million (allowing for $ 9.4 million of letters of credit outstanding on that date). Amortization The outstanding principal amounts under the 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 June 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), 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 > 4.50 to 1.00 2.50 % 1.50 % 0.500 % ≤ 4.50 to 1.00 and > 4.00 to 1.00 2.25 % 1.25 % 0.375 % ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.00 % 1.00 % 0.350 % ≤ 3.50 to 1.00 and > 3.00 to 1.00 1.75 % 0.75 % 0.300 % ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50 % 0.50 % 0.250 % ≤ 2.00 to 1.00 1.25 % 0.25 % 0.200 % As of December 31, 2022 , the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 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, 2022 , the commitment fee rate was 0.35 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 $ 40.0 million and 1 percent of the Company’s Consolidated Total Assets (as defined in the Credit Agreement, as amended) during any fiscal year; plus (ii) an additional amount not to exceed $ 75.0 million during any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would not be greater than A) 4.25x for the fiscal quarters ending December 31, 2022, March 31, 2023, June 30, 2023 and September 30, 2023, and B) 0.25x inside the applicable Consolidated Leverage Ratio financial covenant thereafter); 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 3.25x; plus (iv) any Net Equity Proceeds (as defined in the Credit Agreement, as amended). Financial Covenants As of December 31, 2022, our Consolidated Leverage Ratio was approximately 4.16 to 1.00 versus our maximum covenant of 4.50 to 1.00. Our Interest Coverage Ratio was approximately 6.56 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 March 2029 (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, 2022, and December 31, 2021, 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, 2022 | |
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, 2022, 2021, and 2020, were as follows: (in millions) 2022 2021 2020 Operating lease cost $ 29.5 $ 29.7 $ 28.3 Sublease income ( 2.4 ) ( 1.9 ) ( 1.2 ) Total lease cost $ 27.1 $ 27.8 $ 27.1 Other information related to leases for the years ended December 31, 2022, and 2021 was as follows: (in millions, except lease term and discount rate) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 30.5 $ 31.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11.4 $ 41.1 Weighted average remaining lease term: Operating leases 6.3 years Weighted average discount rate: Operating leases 4.6 % Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of December 31, 2022 were as follows: (in millions) Operating 2023 $ 25.4 2024 19.6 2025 16.3 2026 13.0 2027 8.8 Thereafter 29.1 Total minimum lease payments 112.2 Less imputed interest 15.8 Future minimum payments for leases, net of sublease rental income and imputed interest $ 96.4 |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2022 | |
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. During the first quarter of 2021, the Company froze the pension benefit for the Sidney, New York bargained hourly employees under the ACCO Brands Corporation Pension Plan. As of December 31, 2016, all of our Canadian pension plans were frozen. Effective July 1, 2022 the Company announced its plan to terminate the Canadian pension plans. We expect this to be finalized in 2024. We also provide post-retirement health care and life insurance benefits to certain employees and retirees in the U.S., U.K. and Canada. 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 $ 103.0 million and $ 151.7 million for the years ended December 31, 2022, and 2021, respectively. As is customary, there are no plans to, and there is no requirement to, fund the German Pension Plan other than to meet the current liabilities. 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) 2022 2021 2022 2021 2022 2021 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 212.5 $ 226.1 $ 673.6 $ 748.7 $ 4.3 $ 5.1 Service cost — 0.5 1.0 1.5 — — Interest cost 4.9 4.5 9.6 6.3 0.1 0.1 Actuarial gain ( 45.2 ) ( 3.1 ) ( 158.7 ) ( 33.2 ) ( 0.6 ) ( 0.5 ) Participants’ contributions — — 0.1 0.1 — — Benefits paid ( 9.9 ) ( 15.5 ) ( 25.7 ) ( 28.4 ) ( 0.4 ) ( 0.5 ) Settlement — — — ( 0.3 ) — — Termination benefits — — 0.8 — — — Foreign exchange rate changes — — ( 59.6 ) ( 21.4 ) ( 0.2 ) 0.1 Acquisitions — — — 0.3 — — Projected benefit obligation at end of year 162.3 212.5 441.1 673.6 3.2 4.3 Change in plan assets Fair value of plan assets at beginning of year 180.9 170.6 481.7 484.8 — — Actual return on plan assets ( 33.3 ) 18.6 ( 117.2 ) 16.5 — — Employer contributions 2.5 7.2 13.4 15.0 0.4 0.5 Participants’ contributions — — 0.1 0.1 — — Benefits paid ( 9.9 ) ( 15.5 ) ( 25.7 ) ( 28.4 ) ( 0.4 ) ( 0.5 ) Settlement — — — ( 0.3 ) — — Foreign exchange rate changes — — ( 45.9 ) ( 6.0 ) — — Fair value of plan assets at end of year 140.2 180.9 306.4 481.7 — — Funded status (Fair value of plan assets less PBO) $ ( 22.1 ) $ ( 31.6 ) $ ( 134.7 ) $ ( 191.9 ) $ ( 3.2 ) $ ( 4.3 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 2.8 $ 2.0 $ — $ — Other current liabilities — — 6.9 7.1 0.4 0.4 Pension and post-retirement benefit obligations 22.1 31.6 130.6 186.8 2.8 3.9 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 91.3 96.1 120.6 166.5 ( 4.2 ) ( 4.3 ) Unrecognized prior service cost (credit) — — 5.2 6.1 — ( 0.1 ) Pension and post-retirement benefit obligations of $ 155.5 million as of December 31, 2022, decreased from $ 222.3 million as of December 31, 2021, primarily due to the higher discount rate assumptions compared to the prior year, partly offset by investment losses in 2022. These factors were the primary reasons for the actuarial gains recognized in 2022. The accumulated benefit obligation for all pension plans was $ 598.1 million and $ 870.7 million at December 31, 2022 and 2021, 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) 2022 2021 2022 2021 Accumulated benefit obligation $ 162.3 $ 212.5 $ 406.1 $ 616.7 Fair value of plan assets 140.2 180.9 273.7 437.8 The following table sets out information for pension plans with a projected benefit obligation in excess of plan assets: U.S. International (in millions) 2022 2021 2022 2021 Projected benefit obligation $ 162.3 $ 212.5 $ 411.3 $ 631.7 Fair value of plan assets 140.2 180.9 273.7 437.8 The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2022, 2021, and 2020, were as follows: Year Ended December 31, Pension Post-retirement U.S. International (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ — $ 0.5 $ 1.6 $ 1.0 $ 1.5 $ 1.5 $ — $ — $ — Interest cost 4.9 4.5 5.9 9.6 6.3 9.7 0.1 0.1 0.1 Expected return on plan assets ( 10.9 ) ( 11.4 ) ( 11.4 ) ( 17.5 ) ( 19.3 ) ( 18.6 ) — — — Amortization of net loss (gain) 3.7 3.6 3.2 5.0 7.1 4.9 ( 0.5 ) ( 0.5 ) ( 0.5 ) Amortization of prior service cost — 0.1 0.4 0.3 0.3 0.3 — — — Special termination benefit (1) — — — 0.8 — — — — — Curtailment loss (2) — 1.4 — — — — — — — Settlement loss — — — — — 0.4 — — — Net periodic benefit (income) cost (3) $ ( 2.3 ) $ ( 1.3 ) $ ( 0.3 ) $ ( 0.8 ) $ ( 4.1 ) $ ( 1.8 ) $ ( 0.4 ) $ ( 0.4 ) $ ( 0.4 ) (1) Special termination benefit of $ 0.8 million due to the plan wind up of the ACCO Brands Canada Salaried and Hourly plans effective July 1, 2022. The plan wind up is considered an irrevocable event that triggers special accounting, specifically a one-time special termination benefit. The plan wind up is expected to be completed in 2024. (2) Curtailment loss of $ 1.4 million due to the pension benefit freeze for the Sidney group under the ACCO Brands Corporation Pension Plan. (3) The components of net periodic benefit (income) cost, 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, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Current year actuarial (gain) loss $ ( 1.0 ) $ ( 10.3 ) $ 10.6 $ ( 23.9 ) $ ( 30.5 ) $ 36.5 $ ( 0.6 ) $ ( 0.5 ) $ — Amortization of actuarial (loss) gain ( 3.7 ) ( 3.6 ) ( 3.2 ) ( 5.1 ) ( 7.1 ) ( 5.3 ) 0.5 0.5 0.5 Amortization of prior service cost — ( 1.5 ) ( 0.4 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) — — — Foreign exchange rate changes — — — ( 21.5 ) ( 4.1 ) 8.5 0.2 — — Total recognized in other comprehensive income (loss) ( 4.7 ) ( 15.4 ) 7.0 ( 50.8 ) ( 42.0 ) 39.4 0.1 — 0.5 Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ ( 7.0 ) $ ( 16.7 ) $ 6.7 $ ( 51.6 ) $ ( 46.1 ) $ 37.6 $ ( 0.3 ) $ ( 0.4 ) $ 0.1 Assumptions The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.1 % 2.9 % 2.6 % 4.5 % 1.8 % 1.2 % 3.8 % 2.4 % 1.9 % Rate of compensation increase N/A N/A N/A 3.0 % 3.0 % 2.9 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 2.9 % 3.1 % 3.2 % 1.8 % 1.0 % 1.6 % 2.4 % 2.2 % 2.7 % Expected long-term rate of return 6.5 % 6.8 % 7.0 % 4.0 % 4.0 % 4.2 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 2.7 % 2.9 % 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, 2022, 2021, and 2020 were as follows: Post-retirement 2022 2021 2020 Health care cost trend rate assumed for next year 6 % 6 % 6 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 5 % 5 % 4 % Year that the rate reaches the ultimate trend rate 2030 2030 2028 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 35 percent in equity securities, 58 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, 2022 and 2021 were as follows: 2022 2021 U.S. International U.S. International Asset category Equity securities 35 % 9 % 63 % 15 % Fixed income 58 % 56 % 28 % 59 % Real estate 4 % 3 % 5 % 4 % Other (4) 3 % 32 % 4 % 22 % Total 100 % 100 % 100 % 100 % (4) Multi-strategy hedge funds, commodity linked funds, private equity funds, 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, 2022 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2022 Mutual funds $ 105.3 $ — $ — $ 105.3 Exchange traded funds 33.8 — — 33.8 Common collective trust funds — 1.1 — 1.1 Total $ 139.1 $ 1.1 $ — $ 140.2 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2021 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2021 Mutual funds $ 104.9 $ — $ — $ 104.9 Exchange traded funds 75.1 — — 75.1 Common collective trust funds — 0.9 — 0.9 Total $ 180.0 $ 0.9 $ — $ 180.9 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, 2022 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2022 Cash and cash equivalents $ 16.6 $ — $ — $ 16.6 Equity securities 25.2 — — 25.2 Corporate debt securities — 61.0 — 61.0 Multi-strategy hedge funds — 32.1 — 32.1 Insurance contracts — 3.8 — 3.8 Real estate — 2.2 — 2.2 Government debt securities — 109.1 — 109.1 Investments measured at net asset value (5) Multi-strategy hedge funds 30.2 Real estate 6.0 Private equity 20.2 Total $ 41.8 $ 208.2 $ — $ 306.4 (5) 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. The fair value measurements of our international pension plans assets by asset category as of December 31, 2021 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2021 Cash and cash equivalents $ 10.2 $ — $ — $ 10.2 Equity securities 71.1 — — 71.1 Exchange traded funds 0.1 — — 0.1 Corporate debt securities — 99.6 — 99.6 Multi-strategy hedge funds — 39.0 — 39.0 Insurance contracts — 3.8 — 3.8 Real estate — 6.7 — 6.7 Government debt securities — 186.2 — 186.2 Investments measured at net asset value (5) Multi-strategy hedge funds 46.1 Real estate 11.3 Private equity 7.6 Total $ 81.4 $ 335.3 $ — $ 481.7 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 $ 16.3 million to our pension and post-retirement plans in 2022 and expect to contribute approximately $ 16.6 million in 2023. The following table presents estimated future benefit payments to participants for the next ten fiscal years: (in millions) Pension Benefits Post-retirement Benefits 2023 $ 38.7 $ 0.4 2024 37.6 0.4 2025 38.7 0.4 2026 38.9 0.3 2027 39.1 0.3 Years 2028 - 2032 205.0 1.3 We also sponsor a number of defined contribution plans. Contributions are determined under various formulas. Costs related to such plans amounted to $ 13.2 million , $ 12.7 million and $ 6.8 million for the years ended December 31, 2022, 2021, and 2020, 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 2022 and 2021 is for the plan’s years ended December 31, 2021 , and 2020 , 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 (critical or critical and declining) are generally less than 65 percent funded, plans in the yellow zone (endangered) are less than 80 percent funded, and plans in the green zone (safe) 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 Contributions Year Ended December 31, Pension Fund EIN/Pension Plan Number 2022 2021 FIP/RP Status Pending/Implemented 2022 2021 2020 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.1 $ 0.1 $ 0.1 Yes 6/30/2023 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7 . Stock-Based Compensation The 2022 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. The Plan authorizes the issuance of up to 7,250,000 shares 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 the Plan by issuing new shares. The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of (Loss) Income for the years ended December 31, 2022, 2021, and 2020: (in millions) 2022 2021 2020 Selling, general and administrative expense $ 9.5 $ 15.2 $ 6.5 Loss before income tax ( 9.5 ) ( 15.2 ) ( 6.5 ) Income tax benefit ( 2.2 ) ( 3.6 ) ( 1.6 ) Net loss $ ( 7.3 ) $ ( 11.6 ) $ ( 4.9 ) There was no capitalization of stock-based compensation expense. Stock-based compensation expense by award type for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Stock option compensation expense $ 3.7 $ 3.6 $ 2.7 RSU compensation expense 4.4 5.3 5.2 PSU compensation expense 1.4 6.3 ( 1.4 ) Total stock-based compensation expense $ 9.5 $ 15.2 $ 6.5 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 beginning in 2020 can generally be exercised over a term of ten years and prior to 2020 options could generally be exercised over a term of seven years . Stock options outstanding as of December 31, 2022 , 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, 2022 2021 2020 Weighted average expected lives 6.0 years 6.0 years 6.0 years Weighted average risk-free interest rate 1.89 % 0.93 % 0.81 % Weighted average expected volatility 41.7 % 41.3 % 36.0 % Expected dividend yield 3.60 % 3.07 % 3.16 % Weighted average grant date fair value $ 2.43 $ 2.45 $ 2.03 The weighted average expected option term of the Company's "plain vanilla" stock options granted during the years ended December 31, 2022, 2021 and 2020 reflect the application of the simplified method, as prescribed by Staff Accounting Bulletin Topic 14. The simplified method was used as the Company does not believe it has sufficient historical exercise data to provide a reasonable basis for the expected term of its stock option grants. The simplified method will be used until such time as the Company has stock option exercise experience in which to reasonably determine the expected life. 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. Volatility is calculated using ACCO Brands' historic volatility. A summary of the changes in stock options outstanding under the Plan during the year ended December 31, 2022 is presented below: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Outstanding at December 31, 2021 5,860,567 $ 9.34 Granted 1,793,833 $ 8.35 Exercised ( 573,860 ) $ 7.51 Forfeited ( 351,925 ) $ 8.59 Outstanding at December 31, 2022 6,728,615 $ 9.27 6.1 years - million Exercisable shares at December 31, 2022 3,643,352 $ 10.04 4.2 years - million We received cash of $ 4.3 million , $ 3.1 million and $ 4.4 million from the exercise of stock options during the years ended December 31, 2022, 2021 and 2020, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 totaled $ 0.5 million , $ 1.0 million and $ 1.6 million , respectively. The fair value of options vested during the years ended December 31, 2022, 2021 and 2020 was $ 3.1 million , $ 2.7 million and $ 2.7 million , respectively. As of December 31, 2022, we had unrecognized compensation expense related to stock options of $ 3.6 million , which will be recognized over a weighted-average period of 1.9 years. Stock Unit Awards RSUs vest over a pre-determined period of time, generally three years from the date of grant. Stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 includes $ 1.2 million , $ 0.7 million and $ 0.9 million , respectively, of expense related to RSUs granted to non-employee directors as a component of their compensation. RSUs granted to non-employee directors prior to 2021 became fully vested on the grant date; after 2021 non-employee director RSUs fully vest on the first anniversary of the grant date. PSUs also vest over a pre-determined period of time, generally not longer than three years , but are further subject to the achievement of certain business performance criteria being met during the three-year performance period. Based upon the level of achieved performance, the number of shares actually awarded can vary from 0 percent to 200 percent of the original grant. There were 2,016,120 RSUs outstanding as of December 31, 2022. All outstanding RSUs as of December 31, 2022 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 2022 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 1,906,891 $ 8.64 Granted 695,057 $ 8.15 Vested and distributed ( 489,964 ) $ 8.86 Forfeited and cancelled ( 95,864 ) $ 8.25 Outstanding at December 31, 2022 2,016,120 $ 8.43 Vested and deferred at December 31, 2022 (1) 574,409 $ 8.84 (1) Included in outstanding at December 31, 2022 . Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. For the years ended December 31, 2021 and 2020, we granted 362,750 and 724,319 RSUs, respectively. The weighted-average grant date fair value of our RSUs was $ 8.15 , $ 8.78 , and $ 7.92 for the years ended December 31, 2022, 2021 and 2020, respectively. The fair value of RSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $ 5.1 million , $ 4.2 million and $ 4.7 million , respectively. As of December 31, 2022, we have unrecognized compensation expense related to RSUs of $ 3.9 million , which will be recognized over a weighted-average period of 1.9 years. A summary of the changes in the PSUs outstanding under the Plan during 2022 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 1,758,220 $ 8.42 Granted 1,170,884 $ 8.88 Vested ( 350,656 ) $ 8.42 Forfeited and cancelled ( 161,938 ) $ 8.62 Other - decrease due to performance of PSUs ( 1,743,341 ) $ 8.71 Outstanding at December 31, 2022 673,169 $ 8.42 For the years ended December 31, 2021 and 2020, we granted 1,667,012 and 939,529 PSUs, respectively. For the years ended December 31, 2022, 2021 and 2020, 350,656 , zero and 377,073 PSUs vested, respectively. The weighted-average grant date fair value of our PSUs was $ 8.88 , $ 8.42 , and $ 8.25 for the years ended December 31, 2022, 2021 and 2020, respectively. The fair value of PSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $ 3.0 million , zero and $ 4.8 million , respectively. Based on the level of achievement of the performance targets associated with the PSU awards, as of December 31, 2022, we have $ 0.9 million of unrecognized compensation expense, which will be recognized over a weighted-average period of 1.0 year. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 8 . Inventories The components of inventories were as follows: December 31, (in millions) 2022 2021 Raw materials $ 76.8 $ 67.5 Work in process 4.4 4.1 Finished goods 314.0 356.4 Total inventories $ 395.2 $ 428.0 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 9 . Property, Plant and Equipment, Net The components of net property, plant and equipment were as follows: December 31 (in millions) 2022 2021 Land and improvements $ 20.6 $ 21.5 Buildings and improvements to leaseholds 125.3 140.2 Machinery and equipment 439.5 486.6 Construction in progress 3.8 8.1 589.2 656.4 Less: accumulated depreciation ( 404.1 ) ( 441.8 ) Net property, plant and equipment (1) $ 185.1 $ 214.6 (1) Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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 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. During the second quarter of 2022 , we completed the annual goodwill impairment assessment. Due to a decline in our market capitalization, we performed our annual assessment on a quantitative basis for goodwill for each of our three reporting units. The result of our annual assessment was that the fair value of the North America, International and EMEA reporting units exceeded their carrying values as of our measurement date of May 31, 2022 and we concluded that no impairment existed. During the third quarter of 2022, our market capitalization declined further compared to the second quarter of 2022 . In addition, our forecasted cash flows for our North America and EMEA reporting units decreased due to lower inventory replenishment by major retailers, lower sales of gaming accessories, and a challenging demand environment in several countries within EMEA. As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of August 31, 2022, we completed a goodwill impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $ 98.7 million . The result of our assessment for International and EMEA reporting units was that the fair value of each exceeded its carrying values by greater than ten percent and fifty percent, respectively, and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both a discounted cash flows and market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. The fair values of our reporting units are considered a Level 3 measurement. Level 3 measurements require significant unobservable inputs that reflect assumptions used in our goodwill impairment analysis. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, we may be required to record additional goodwill impairment charges in future periods. Changes in the net carrying amount of goodwill by segment were as follows: (in millions) ACCO Brands North America ACCO Brands EMEA ACCO Brands International Total Balance at December 31, 2020 $ 461.2 $ 188.2 $ 178.0 $ 827.4 Acquisitions (1) ( 14.5 ) 2.0 — ( 12.5 ) Foreign currency translation — ( 11.6 ) ( 0.8 ) ( 12.4 ) Balance at December 31, 2021 $ 446.7 $ 178.6 $ 177.2 $ 802.5 Goodwill impairment ( 98.7 ) — — ( 98.7 ) Foreign currency translation — ( 33.0 ) 0.7 ( 32.3 ) Balance at December 31, 2022 $ 348.0 $ 145.6 $ 177.9 $ 671.5 (1) Goodwill has been recorded on our Consolidated Balance Sheet related to the Franken acquisition, which is part of our EMEA segment, and represents the excess of the cost of the Franken acquisition when compared to the fair value estimate of the net assets acquired on April 1, 2021 (the date of the Franken acquisition). 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) and includes a working capital adjustment of $ 18.2 million recorded in the first quarter of 2021 as a reduction to the purchase price, partially offset by purchase accounting adjustments of $ 3.7 million. See "Note 3 . Acquisitions" for additional details. Identifiable Intangibles Acquired Identifiable Intangibles PowerA Acquisition The valuation of identifiable intangible assets of $ 235.4 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 are being amortized over 15 years while the developed technology is being 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 Trade name $ 21.6 15 years Customer relationships 128.6 15 years Vendor relationships 82.4 15 years Developed technology 2.8 5 years Total identifiable intangibles acquired $ 235.4 The Company's gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 (in millions) Gross Carrying Amounts Accumulated Amortization Net Book Value Gross Carrying Amounts Accumulated Amortization Net Book Value Indefinite-lived intangible assets: Trade names (1) $ 410.6 $ ( 44.5 ) $ 366.1 $ 417.6 $ ( 44.5 ) $ 373.1 Amortizable intangible assets: Trade names 369.7 ( 123.0 ) 246.7 373.2 ( 110.5 ) 262.7 Customer and contractual relationships 356.9 ( 198.2 ) 158.7 366.5 ( 182.4 ) 184.1 Vendor relationships 82.4 ( 11.2 ) 71.2 82.4 ( 5.7 ) 76.7 Patents 8.1 ( 3.8 ) 4.3 8.6 ( 3.0 ) 5.6 Subtotal 817.1 ( 336.2 ) 480.9 830.7 ( 301.6 ) 529.1 Total identifiable intangibles $ 1,227.7 $ ( 380.7 ) $ 847.0 $ 1,248.3 $ ( 346.1 ) $ 902.2 (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 $ 41.5 million , $ 46.3 million and $ 32.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions) 2023 2024 2025 2026 2027 Estimated amortization expense (2) $ 43.3 $ 41.7 $ 40.1 $ 38.0 $ 35.6 (2) Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. We test indefinite-lived intangibles for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, for our indefinite-lived trade names and concluded that no impairment existed as of our measurement date of May 31, 2022. During 2022, our revenue generated from our Leitz ® indefinite-lived trade name declined. Accordingly, as of August 31, 2022, we completed an impairment assessment, on a quantitative basis, for our Leitz ® indefinite-lived trade name. The result of our assessment was that the fair value of the Leitz ® indefinite-lived trade name exceeded its carrying value by less than five percent and we concluded that no impairment existed. The fair value of the trade name is considered a Level 3 measurement which utilizes a relief-from-royalty discounted cash flows approach. Key inputs and assumptions involved include the estimated near-term revenue growth, long-term growth rate, royalty rate, and discount rate. As of December 31, 2022, we changed the indefinite-lived Leitz ® trade name to an amortizable intangible asset. The change was made as a result of decisions regarding the Company's future use of the trade name. The Company will begin amortizing the Leitz ® trade name on a straight-line basis over a life of 30 years effective January 1, 2023. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 11 . Restructuring The Company recorded $ 9.6 million , $ 6.0 million and $ 10.9 million of restructuring charges for the years ended December 31, 2022, 2021 and 2020, respectively. Restructuring charges in 2022 were primarily for severance costs related to cost reduction initiatives in our North America and EMEA segments. In 2021, we recorded $ 4.4 million of restructuring expense for our North America segment, $ 0.5 million for our EMEA segment, and $ 1.1 million for our International segment, primarily for severance expenses associated with several cost savings initiatives. During 2020, we recorded $ 7.6 million of restructuring expense for our North America segment, $ 0.6 million for our EMEA segment, and $ 2.6 million for our International segment, primarily for severance expenses associated with several cost savings initiatives. In addition, we recorded $ 0.1 million of restructuring expense for Corporate. The summary of the activity in the restructuring liability for the year ended December 31, 2022 was as follows: Balance at Non-cash Items / Balance at (in millions) December 31, Provision Cash Currency December 31, Employee termination costs (1) $ 3.4 $ 9.4 $ ( 4.0 ) $ ( 0.1 ) $ 8.7 Termination of lease agreements 1.1 ( 0.2 ) ( 0.9 ) — — Other — 0.4 ( 0.4 ) — — Total restructuring liability $ 4.5 $ 9.6 $ ( 5.3 ) $ ( 0.1 ) $ 8.7 (1) We expect the remaining $ 8.7 million employee termination costs to be substantially paid within the next twelve months . The summary of the activity in the restructuring accounts for the year ended December 31, 2021 was as follows: Balance at Non-cash Items / Balance at (in millions) December 31, Provision Cash Currency December 31, Employee termination costs $ 8.1 $ 5.2 $ ( 9.7 ) $ ( 0.2 ) $ 3.4 Termination of lease agreements 1.0 0.7 ( 1.1 ) 0.5 1.1 Other 0.2 0.1 ( 0.2 ) ( 0.1 ) — Total restructuring liability $ 9.3 $ 6.0 $ ( 11.0 ) $ 0.2 $ 4.5 The summary of the activity in the restructuring accounts for the year ended December 31, 2020 was as follows: (in millions) December 31, Provision Cash Currency December 31, Employee termination costs $ 10.7 $ 8.5 $ ( 11.1 ) $ — $ 8.1 Termination of lease agreements 0.6 1.5 ( 0.7 ) ( 0.4 ) 1.0 Other 0.5 0.9 ( 0.5 ) ( 0.7 ) 0.2 Total restructuring liability $ 11.8 $ 10.9 $ ( 12.3 ) $ ( 1.1 ) $ 9.3 Restructuring charges for the years ended December 31, 2022, 2021 and 2020 by reporting segment were as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 5.3 $ 4.4 $ 7.6 ACCO Brands EMEA 3.4 0.5 0.6 ACCO Brands International 0.7 1.1 2.6 Corporate 0.2 — 0.1 Total restructuring charges $ 9.6 $ 6.0 $ 10.9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12 . Income Taxes The components of income before income tax for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Domestic operations $ ( 80.1 ) $ ( 5.6 ) $ 1.7 Foreign operations 95.0 117.0 76.9 Total $ 14.9 $ 111.4 $ 78.6 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, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Income tax at U.S. statutory rate; 21 % $ 3.1 $ 23.4 $ 16.5 Unrecognized tax benefits ( 7.6 ) ( 1.9 ) — Impact of final GILTI regulations for 2018 and 2019 — ( 1.0 ) ( 2.7 ) Statutory tax rate changes 0.6 ( 6.8 ) ( 2.0 ) Statutory tax law changes — ( 1.2 ) — State, local and other tax, net of federal benefit 3.6 2.0 0.1 Impact from foreign inclusions 4.0 3.2 1.3 U.S. effect of foreign dividends and withholding taxes 1.8 1.2 1.0 Foreign income taxed at a higher effective rate 1.1 1.5 1.4 Net Brazilian Tax Assessments impact 1.9 0.5 1.5 (Decrease) increase in valuation allowance 3.4 ( 11.4 ) 2.2 General business credit ( 1.9 ) ( 2.1 ) — Excess expense from stock-based compensation 1.1 0.5 0.9 Impairment of non-deductible goodwill 20.7 — — Impact of legal entity rationalization ( 4.1 ) — — Other increase (decrease) 0.4 1.6 ( 3.6 ) Income taxes as reported $ 28.1 $ 9.5 $ 16.6 Effective tax rate 188.6 % 8.5 % 21.1 % For 2022, we recorded income tax expense of $ 28.1 million on income before taxes of $ 14.9 million , for an effective rate of 188.6 percent. The increase in the effective rate versus 2021 was primarily due to the impairment of non-deductible goodwill. For 2021, we recorded income tax expense of $ 9.5 million on income before taxes of $ 111.4 million , for an effective rate of 8.5 percent. The decrease in the effective rate versus 2020 was primarily due to beneficial adjustments to deferred taxes resulting from statutory tax rate changes and the release of the valuation allowance on the foreign tax credit carryforward. 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. 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 decided to make the election to exclude high-tax global intangible income for both years and filed amended returns with benefits of $ 1.4 million and $ 2.1 million, respectively. The Company also made the election for 2020 with a comparable benefit to the prior years. The components of the income tax expense for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Current expense (benefit) Federal and other $ 1.8 $ 2.0 $ ( 0.1 ) Foreign 25.0 28.5 24.3 Total current income tax expense 26.8 30.5 24.2 Deferred expense (benefit) Federal and other 6.8 ( 16.5 ) ( 2.0 ) Foreign ( 5.5 ) ( 4.5 ) ( 5.6 ) Total deferred income tax (benefit) expense 1.3 ( 21.0 ) ( 7.6 ) Total income tax expense $ 28.1 $ 9.5 $ 16.6 The components of deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: (in millions) 2022 2021 Deferred tax assets Compensation and benefits $ 15.5 $ 14.4 Pension 23.2 41.2 Inventory 10.1 10.8 Other reserves 21.7 22.3 Accounts receivable 9.7 9.7 Foreign tax credit carryforwards 11.1 17.9 Net operating loss carryforwards 89.2 96.5 Interest expense carryforwards 17.0 15.2 Other 7.9 4.5 Gross deferred income tax assets 205.4 232.5 Valuation allowance ( 51.9 ) ( 52.4 ) Net deferred tax assets 153.5 180.1 Deferred tax liabilities Depreciation ( 8.9 ) ( 13.2 ) Unremitted non-U.S. earnings accrual ( 5.5 ) ( 4.8 ) Identifiable intangibles ( 182.9 ) ( 191.2 ) Other ( 0.6 ) ( 0.2 ) Gross deferred tax liabilities ( 197.9 ) ( 209.4 ) Net deferred tax liabilities $ ( 44.4 ) $ ( 29.3 ) A valuation allowance of $ 51.9 million and $ 52.4 million as of December 31, 2022 and 2021 , respectively, has been established for deferred income tax assets. The $ 0.5 million decrease in the valuation allowance in 2022 includes a $ 3.7 million decrease resulting from foreign currency translation partially offset by an increase to our existing valuation allowance of $ 3.2 million. The valuation allowance is 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, 2022, the Company has state NOL tax benefits of $ 13.3 million which will expire between December 31, 2023 and December 31, 2032. As of December 31, 2022, the Company has no federal general business credit carryforwards. As of December 31, 2022, the Company has $ 11.1 million of foreign tax credit carryforwards which will expire on December 31, 2027. As of December 31, 2022, the Company has foreign NOLs of $ 340.4 million and tax benefits of $ 75.9 million , most of which have unlimited carryforward periods. As of December 31, 2022, the Company has recorded $ 5.5 million of deferred taxes on approximately $ 216 million of unremitted earnings of non-U.S. subsidiaries that may be remitted to the U.S. The Company has approximately $ 299 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, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Balance at beginning of year $ 43.3 $ 45.1 $ 50.5 Additions for tax positions of prior years 2.5 4.5 2.9 Reductions for tax positions of prior years ( 8.3 ) ( 4.2 ) ( 1.1 ) Acquisitions — — 1.4 Increase resulting from foreign currency translation 1.6 — — Decrease resulting from foreign currency translation — ( 2.1 ) ( 8.6 ) Balance at end of year $ 39.1 $ 43.3 $ 45.1 As of December 31, 2022, the amount of unrecognized tax benefits decreased to $ 39.1 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 $ 2.0 to $ 3.0 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, 2022, we have accrued a cumulative $ 25.4 million for interest and penalties on the unrecognized tax benefits. As of December 31, 2022 , the U.S. federal statute of limitations remains open for the year 2018 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 5 year s. As of December 31, 2022 , years still open to examination by foreign tax authorities in major jurisdictions include Australia ( 2017 forward), Brazil ( 2015 forward), Canada ( 2017 forward), Germany ( 2016 forward), Sweden ( 2018 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 its operating entity in Brazil ("ACCO Brazil"). In December of 2012, the Federal Revenue Department of the Ministry of Finance of Brazil ("FRD") issued a tax assessment against ACCO Brazil, challenging the tax deduction of goodwill from ACCO Brazil's taxable income for the year 2007 (the "First Assessment"). A second assessment challenging the deduction of goodwill from ACCO Brazil'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"). The final administrative appeal of the Second Assessment was decided against the Company in 2017. In 2018, we challenged this decision to the first judicial level. In the fourth quarter of 2022, this case was decided against the Company by the first level judicial court. We have appealed this decision to the second 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 and we determined that we would challenge this decision. In 2022, we challenged this adverse decision in the tax authority's lawsuit at the judicial level seeking to collect the tax. In connection with the judicial challenge, we were required to provide security to guarantee payment of the First Assessment should we not prevail. 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 judicial process is complete. It is possible we could have a final decision regarding the Second Assessment in the next ten months to three 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. Because the Brazilian courts have determined that we will have to pay a standard penalty of 75 percent if we do not prevail, we have used this assumption in the reserve calculation. 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. During the years ended December 31, 2022, 2021 and 2020, we accrued additional interest as a charge to current income tax expense of $ 1.5 million , $ 0.5 million and $ 0.3 million , respectively. At current exchange rates, our accrual through December 31, 2022, including tax, penalties and interest, is $ 30.4 million (reported in "Other non-current liabilities"). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13 . Earnings per Share Total outstanding shares as of December 31, 2022, 2021 and 2020 were 94.3 million , 95.8 million and 94.9 million , respectively. Under our stock repurchase authorization, for each of the years ended December 31, 2022 and 2020, we repurchased and retired 2.7 million . For the year ended December 31, 2021 there were no shares repurchased and retired. For the years ended December 31, 2022, 2021 and 2020, we acquired 0.3 million , 0.1 million and 0.2 million shares, respectively, related to tax withholding in connection with stock-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, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Weighted-average number of shares of common stock outstanding - basic 95.3 95.5 94.9 Stock options — 0.1 0.1 Restricted stock units — 1.5 1.1 Weighted-average shares and assumed conversions - diluted (1) 95.3 97.1 96.1 (1) Due to the net loss during the twelve months ended December 31, 2022, the denominator in the diluted earnings per share calculation does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as it would result in a less dilutive computation. As a result, diluted earnings per share for the twelve months ended December 31, 2022 are the same as basic earnings per share. 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, 2022, 2021 and 2020, the number of anti-dilutive shares were approximately 9.8 million , 8.3 million and 7.1 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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. Our primary exposure to currency movements is in the Euro, the Swedish krona, the British pound, the Brazilian real, the Australian dollar, the Canadian dollar, and the Mexican peso. 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 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, 2022 and 2021, we had cash flow foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $ 108.3 million and $ 130.6 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 2023. As of December 31, 2022 and 2021, we had foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $ 79.5 million and $ 84.2 million , respectively, which were not designated as hedges. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2022 and 2021: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet Location December 31, December 31, Balance Sheet Location December 31, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 3.6 $ 5.6 Other current liabilities $ 1.9 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.7 0.7 Other current liabilities 0.7 0.6 Foreign exchange contracts Other non-current assets 4.9 10.2 Other non-current liabilities 4.9 10.2 Total derivatives $ 9.2 $ 16.5 $ 7.5 $ 10.9 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, 2022, 2021, and 2020: 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 Reclassified from AOCI to Income (Effective Portion) (in millions) 2022 2021 2020 2022 2021 2020 Cash flow hedges: Foreign exchange contracts $ 9.8 $ 9.1 $ ( 4.5 ) Cost of products sold $ ( 14.0 ) $ 1.0 $ 0.5 The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of (Loss) Income Location of (Gain) Loss Recognized in Income on Derivatives Amount of (Gain) Loss Recognized in Income (in millions) 2022 2021 2020 Foreign exchange contracts Other expense, net $ ( 3.7 ) $ — $ ( 0.1 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: (in millions) December 31, December 31, Assets: Forward currency contracts $ 9.2 $ 16.5 Liabilities: Forward currency contracts $ 7.5 $ 10.9 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 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 $ 1,004.9 million and $ 1,006.7 million , and the estimated fair value of total debt was $ 910.0 million and $ 1,002.3 million , each as of December 31, 2022 and 2021, respectively. The fair values are determined from quoted market prices, where available, and from using current interest rates based on credit ratings and the remaining terms of maturity. Contingent consideration: The PowerA acquisition included an additional earnout of up to $ 55.0 million in cash, contingent upon PowerA achieving one- and two-year sales and profit growth objectives. Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred in the related business combination and subsequent changes in fair value recorded in operating income on the condensed consolidated statements of income. We use a Monte Carlo simulation model for contingent earnout payments, which are then discounted to present value. We classify the contingent consideration liabilities as Level 3 due to the lack of relevant observable market data over fair value inputs such as probability-weighting of payment outcomes. There have been no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy. The following table provides a reconciliation of the beginning and ending balance of the contingent consideration for the year ended December 31, 2022: (in millions) Contingent Consideration Balance at December 31, 2020 $ 18.2 Change in fair value 19.0 Payments ( 0.4 ) Balance at December 31, 2021 $ 36.8 Change in fair value ( 9.0 ) Other (1) ( 0.8 ) Payments ( 27.0 ) Balance at December 31, 2022 $ — (1) During the third quarter, we reached an agreement with the former owner of the Lucid Sound business to settle the Lucid Sound contingent earnout liability which we assumed in the PowerA acquisition. This settlement was paid in the fourth quarter of 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ ( 3.1 ) $ ( 318.8 ) $ ( 242.3 ) $ ( 564.2 ) Other comprehensive income (loss) before reclassifications, net of tax 6.3 ( 23.4 ) 35.9 18.8 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.8 — 9.1 9.9 Balance at December 31, 2021 $ 4.0 $ ( 342.2 ) $ ( 197.3 ) $ ( 535.5 ) Other comprehensive income (loss) before reclassifications, net of tax 7.0 ( 37.9 ) 29.1 ( 1.8 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax ( 9.9 ) — 6.9 ( 3.0 ) Balance at December 31, 2022 $ 1.1 $ ( 380.1 ) $ ( 161.3 ) $ ( 540.3 ) The reclassifications out of AOCI for the years ended December 31, 2022, 2021, and 2020 were as follows: (in millions) 2022 2021 2020 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 $ 14.0 $ ( 1.0 ) $ ( 0.5 ) Cost of products sold Tax (expense) benefit ( 4.1 ) 0.2 0.2 Income tax expense Net of tax $ 9.9 $ ( 0.8 ) $ ( 0.3 ) Defined benefit plan items: Amortization of actuarial loss $ ( 8.2 ) $ ( 10.2 ) $ ( 8.0 ) (1) Amortization of prior service cost ( 0.3 ) ( 1.8 ) ( 0.7 ) (1) Total before tax ( 8.5 ) ( 12.0 ) ( 8.7 ) Tax benefit 1.6 2.9 2.0 Income tax expense Net of tax $ ( 6.9 ) $ ( 9.1 ) $ ( 6.7 ) Total reclassifications for the period, net of tax $ 3.0 $ ( 9.9 ) $ ( 7.0 ) (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
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 17 . Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount reflective of the consideration we expect to be received in exchange for those goods or services. Taxes we collect concurrent with revenue producing activities are excluded from revenue. Incidental items incurred that are immaterial in the context of the contract are expensed. At the inception of each contract, the Company assesses the products and services promised and identifies each distinct performance obligation. To identify the performance obligations, the Company considers all products and services promised regardless of whether they are explicitly stated or implied within the contract or by standard business practices. Freight and distribution activities performed before the customer obtains control of the goods are not considered promised services under customer contracts and therefore are not distinct performance obligations. The Company has chosen to account for shipping and handling activities as a fulfillment activity, and therefore accrues the expense of freight and distribution in "Cost of products sold" when product is shipped. Service or Extended Maintenance Agreements ("EMAs"). As of December 31, 2021, there was $ 2.4 million of unearned revenue associated with outstanding EMAs, primarily reported in "Other current liabilities." During the year ended December 31, 2022, $ 2.0 million of the unearned revenue was earned and recognized. As of December 31, 2022, the amount of unearned revenue from EMAs was $ 2.8 million . We expect to earn and recognize approximately $ 2.4 million of the unearned amount in the next 12 months and $ 0.4 million in periods beyond the next 12 months . The following tables present our net sales disaggregated by regional geography (1) , based upon our reporting business segments for the years ended December 31, 2022, 2021 and 2020, and our net sales disaggregated by the timing of revenue recognition for the years ended December 31, 2022, 2021 and 2020: (in millions) 2022 2021 2020 United States $ 889.2 $ 934.2 $ 725.3 Canada 108.8 108.2 96.8 ACCO Brands North America 998.0 1,042.4 822.1 ACCO Brands EMEA (2) 580.3 662.9 523.9 Australia/N.Z. 125.6 140.3 128.7 Latin America 197.5 125.5 138.8 Asia-Pacific 46.2 54.2 41.7 ACCO Brands International 369.3 320.0 309.2 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 (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) 2022 2021 2020 Product and services transferred at a point in time $ 1,899.5 $ 1,975.9 $ 1,602.5 Product and services transferred over time 48.1 49.4 52.7 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2022 | |
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 PowerA ® , Five Star ® , AT-A-GLANCE ® , Quartet ® , Kensington ® , Swingline ® , GBC ® , Mead ® , Hilroy ® Computer and gaming accessories, school products, planners, storage and organization, dry erase boards and accessories, laminating, stapling and punching products. ACCO Brands EMEA Europe, Middle East and Africa Leitz ® , Rapid ® , Kensington ® , Esselte ® , Rexel ® , PowerA ® , GBC ® , NOBO ® , Derwent ® Storage and organization products (lever-arch binders, sheet protectors, indexes), computer and gaming accessories, stapling, punching, shredding, laminating, do-it-yourself tools, dry erase boards and writing and art products ACCO Brands International Australia/N.Z., Latin America and Asia-Pacific Tilibra ® , GBC ® , Kensington ® , Marbig ® , Foroni ® , Barrilito ® , Artline ®* , PowerA ® , Spirax ® *Australia/N.Z. only School notebooks, storage and organization products (binders, sheet protectors and indexes), computer and gaming accessories, 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 business branded products used in schools, homes and at work. 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 gaming and computer accessories; storage and organization; notebooks; shredding; laminating and binding machines; stapling; punching; planners; 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 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 through e-commerce sites and our direct sales organization. Net sales by reportable business segment for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 998.0 $ 1,042.4 $ 822.1 ACCO Brands EMEA 580.3 662.9 523.9 ACCO Brands International 369.3 320.0 309.2 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 Operating income by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ ( 4.9 ) $ 121.9 $ 83.0 ACCO Brands EMEA 21.7 61.7 51.6 ACCO Brands International 50.5 31.6 15.6 Segment operating income 67.3 215.2 150.2 Change in fair value of contingent consideration 9.0 ( 19.0 ) — Corporate ⁽ ¹ ⁾ ( 41.5 ) ( 45.2 ) ( 37.8 ) Operating income⁽²⁾ 34.8 151.0 112.4 Interest expense 45.6 46.3 38.8 Interest income ( 8.3 ) ( 1.9 ) ( 1.0 ) Non-operating pension income ( 4.5 ) ( 7.9 ) ( 5.6 ) Other (income) expense, net ( 12.9 ) 3.1 1.6 Income before income tax $ 14.9 $ 111.4 $ 78.6 (1) Corporate operating loss in 2021 and 2020 includes transaction costs of $ 0.2 million and $ 1.6 million, respectively, primarily for legal and due diligence expenditures associated with the PowerA and Foroni 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; v) less restructuring charges; and vi) less change in the fair value of contingent consideration. The following table presents the measure of reportable business segment assets used by the Company’s chief operating decision maker as of December 31, 2022 and 2021: (in millions) 2022 2021 ACCO Brands North America (3) $ 459.2 $ 535.2 ACCO Brands EMEA (3) 236.0 296.3 ACCO Brands International (3) 308.4 265.1 Total segment assets 1,003.6 1,096.6 Unallocated assets 1,787.2 1,993.4 Corporate (3) 3.9 1.3 Total assets $ 2,794.7 $ 3,091.3 (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 right of use asset, leases, the allocation of identifiable intangible assets and goodwill resulting from business combinations as of December 31, 2022 and 2021: (in millions) 2022 2021 ACCO Brands North America (4) $ 1,359.9 $ 1,610.0 ACCO Brands EMEA (4) 588.4 728.6 ACCO Brands International (4) 573.8 567.9 Total segment assets 2,522.1 2,906.5 Unallocated assets 268.7 183.5 Corporate (4) 3.9 1.3 Total assets $ 2,794.7 $ 3,091.3 (4) Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs. Capital spend by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 8.8 $ 11.2 $ 9.3 ACCO Brands EMEA 4.7 7.3 4.0 ACCO Brands International 4.2 2.7 2.0 Total capital spend $ 17.7 $ 21.2 $ 15.3 Depreciation expense by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 20.1 $ 20.7 $ 19.6 ACCO Brands EMEA 12.6 13.1 12.7 ACCO Brands International 5.2 5.6 5.6 Total depreciation $ 37.9 $ 39.4 $ 37.9 Property, plant and equipment, net by reportable business segment as of December 31, 2022, 2021 was as follows: (in millions) 2022 2021 U.S. $ 82.3 $ 96.8 Canada 1.7 1.9 ACCO Brands North America 84.0 98.7 ACCO Brands EMEA 62.9 77.4 Australia/N.Z. 10.0 11.3 Latin America 26.6 25.8 Asia-Pacific 1.6 1.4 ACCO Brands International 38.2 38.5 Property, plant and equipment, net $ 185.1 $ 214.6 Top Customers Net sales to our five largest customers totaled $ 663.3 million , $ 720.9 million and $ 554.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. No customer exceeded 10 percent of net sales for the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022 and 2021, our top five trade account receivable totaled $ 125.6 million and $ 178.0 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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 ACCO Brazil For further information, see "Note 12. Income Taxes - Brazil Tax Assessments " for details on tax assessments issued by the FRD against ACCO Brazil challenging the tax deduction of goodwill from ACCO Brazil'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 May 2021, the Supreme Court of Brazil issued its final ruling in a leading case related to the computation of certain indirect taxes which provides that the indirect tax base should not include the gross amount of the value-added tax known as "ICMS." The Supreme Court further ruled that taxpayers can recognize future operating credits ("Tax Credits") for excess indirect tax payments from past periods due to the inclusion of ICMS in the indirect tax base to the extent the taxpayer had filed judicial challenges seeking to recover excess tax payments prior to March 15, 2017 and for any excess tax payments made after March 15, 2017. ACCO Brazil filed legal actions requesting recovery of these excess tax payments by way of future Tax Credits covering various time periods prior to March 15, 2017. Some of these cases have been finally decided in a court of law in favor of ACCO Brazil, while others are still pending. Finalization of the remaining legal actions ACCO Brazil has filed will result in additional Tax Credits of approximately $ 3.0 million. Indústria Gráfica Foroni Ltda. ("Foroni"), in years prior to its acquisition by ACCO Brazil, also filed a legal action in Brazil to recover these excess indirect tax payments and this legal action has been finalized. We are required under the quota purchase agreement to remit any recovered tax credits, less the applicable tax, to the former owners of Foroni to the extent they relate to a tax period prior to the acquisition date. As of December 31, 2022 and 2021 , we recorded $ 11.1 million and $ 10.7 million, respectively, which is included in "Other (income) expense, net" on our Consolidated Statement of (Loss) Income. Finalizing the remaining legal actions ACCO Brazil has filed will likely result in additional Tax Credits at some time in the future. The Tax Credits will be utilized against future tax obligations. 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, 2022 were as follows: (in millions) 2023 $ 132.3 2024 6.0 2025 4.6 2026 0.7 2027 0.3 Thereafter 0.1 Total unconditional purchase commitments $ 144.0 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Balance at beginning of year $ 10.0 $ 11.4 $ 6.7 Additions charged to expense 0.5 0.9 8.0 Deductions - write offs ( 1.5 ) ( 1.9 ) ( 3.0 ) Foreign exchange changes 0.1 ( 0.4 ) ( 0.3 ) Balance at end of year $ 9.1 $ 10.0 $ 11.4 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) 2022 2021 2020 Balance at beginning of year $ 15.2 $ 12.2 $ 7.7 Additions charged to expense 15.7 28.9 12.2 Deductions ( 13.8 ) ( 25.8 ) ( 7.9 ) Foreign exchange changes ( 1.5 ) ( 0.1 ) 0.2 Balance at end of year $ 15.6 $ 15.2 $ 12.2 Allowances for Cash Discounts Changes in the allowances for cash discounts were as follows: Year Ended December 31, (in millions) 2022 2021 2020 Balance at beginning of year $ 2.4 $ 1.9 $ 2.0 Additions charged to expense 22.9 22.8 19.7 Deductions - discounts taken ( 23.3 ) ( 22.2 ) ( 19.9 ) Foreign exchange changes ( 0.1 ) ( 0.1 ) 0.1 Balance at end of year $ 1.9 $ 2.4 $ 1.9 Warranty Reserves Changes in the reserve for warranty claims were as follows: Year Ended December 31, (in millions) 2022 2021 2020 Balance at beginning of year $ 5.7 $ 6.1 $ 5.4 Provision for warranties issued 5.3 2.9 3.5 Deductions - settlements made (in cash or in kind) ( 4.3 ) ( 2.9 ) ( 3.1 ) Foreign exchange changes ( 0.3 ) ( 0.4 ) 0.3 Balance at end of year $ 6.4 $ 5.7 $ 6.1 Income Tax Valuation Allowance Changes in the deferred tax valuation allowances were as follows: Year Ended December 31, (in millions) 2022 2021 2020 Balance at beginning of year $ 52.4 $ 55.4 $ 51.6 Net increase to valuation allowance - expense (benefit) 3.2 ( 2.2 ) 2.2 Foreign exchange changes ( 3.7 ) ( 0.8 ) 1.6 Balance at end of year $ 51.9 $ 52.4 $ 55.4 |
Significant Accounting Polici_2
Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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. |
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 Receivable 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/cash 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 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 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 did no t capitalize any interest for the years ended December 31, 2022 and 2021 , and capitalized $ 0.3 million of interest for the year ended December 31, 2020 . |
Long-Lived Assets | 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 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 year s. We performed our annual assessment, in the second quarter of 2022 , on a qualitative basis, and concluded that it was not more likely than no t that the fair value of any indefinite-lived intangible was less than its carrying amount. During 2022, our revenue generated from our Leitz indefinite-lived trade name has declined. Accordingly, as of August 31, 2022, we completed an impairment assessment, on a quantitative basis, for our Leitz indefinite-lived trade name. The result of our assessment was that the fair value of the Leitz ® indefinite-lived trade name exceeded its carrying value by less than five percent and we concluded that no impairment existed. In addition, we have not identified a triggering event through December 31, 2022 that more likely than not would result in impairment. |
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 2022 , on a quantitative basis, and concluded that it was no t more likely than not that the fair value of any reporting unit was less than its carrying amount. During the third quarter of 2022, our market capitalization declined further compared to the second quarter of 2022 . In addition, our forecasted cash flows for our North America and EMEA reporting units decreased due to lower inventory replenishment by major retailers, lower sales of gaming accessories, and a challenging demand environment in several countries within EMEA. As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of August 31, 2022, we completed a goodwill impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $ 98.7 million . The result of our assessment for the International and EMEA reporting units was that the fair value of each exceeded its carrying value by greater than ten percent and fifty percent, respectively, and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both discounted cash flows and a market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. The implied fair values of all three of our reporting units, more likely than not, exceed their carrying values at December 31, 2022 . In addition, we have not identified a triggering event that would cause us to perform another quantitative goodwill impairment analysis. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, we may be required to record additional goodwill impairment charges in future periods. |
Employee Benefit Plans | 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 | Income Taxes Deferred tax liabilities or assets are established for temporary differences between financial and tax reporting basis 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. As of December 31, 2022, the Company has recorded $ 5.5 million of deferred taxes on approximately $ 216.0 million of unremitted earnings of non-U.S. subsidiaries that may be remitted to the U.S. The Company has approximately $ 299.0 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 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; in-store promotional allowances; shared media and customer catalog allowances; other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowances for discounts. 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 to sixty month s, however, most agreements are one year or less. We generally receive payment at inception of the EMAs and recognize revenue over the term of the agreement on a straight line basis. 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 Expenses | Advertising Expenses Advertising expenses were $ 108.8 million , $ 117.4 million and $ 99.0 million for the years ended December 31, 2022, 2021 and 2020, 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 Expenses | Research and Development Expenses Research and development expenses were $ 26.3 million , $ 26.6 million and $ 19.7 million for the years ended December 31, 2022, 2021 and 2020 , respectively, are classified as SG&A expenses and are charged to expense as incurred. |
Stock-Based Compensation | Stock-Based Compensation Our primary types of stock-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 There are no recently issued accounting pronouncements that are expected to have an impact on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 202-04, Reference Rate Reform (Topic 848), 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. Effective in the fourth quarter of 2022, 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 2022 that had a material effect on the Company’s financial condition, results of operations or cash flow. In December 2019, the 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. Effective January 1, 2021, 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 2021 that had a material effect on the Company’s financial condition, results of operations or cash flow. 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. |
Leases | 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, Recent Accounting Pronouncements and Adopted Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Net | 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) 2022 2021 Land and improvements $ 20.6 $ 21.5 Buildings and improvements to leaseholds 125.3 140.2 Machinery and equipment 439.5 486.6 Construction in progress 3.8 8.1 589.2 656.4 Less: accumulated depreciation ( 404.1 ) ( 441.8 ) Net property, plant and equipment (1) $ 185.1 $ 214.6 (1) Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PowerA | |
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 PowerA acquisition: (in millions) At December 17, 2020 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 321.8 Fair value of contingent consideration $ 18.2 Plus fair value of liabilities assumed: Accrued liabilities 9.2 Fair value of liabilities assumed $ 9.2 Less fair value of assets acquired: Inventory 29.3 Property and equipment 0.2 Identifiable intangibles 235.4 Other assets 13.2 Fair value of assets acquired $ 278.1 Goodwill $ 71.1 |
Long-term Debt and Short-term_2
Long-term Debt and Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: (in millions) December 31, December 31, Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 3.90 % at December 31, 2022 and 2.00 % at December 31, 2021) $ 227.4 $ 254.8 USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.40 % at December 31, 2022 and 2.22 % at December 31, 2021) 84.4 89.0 Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.30 % at December 31, 2022 and 2.11 % at December 31, 2021) 34.9 39.4 U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.36 % at December 31, 2022 and 2.10 % at December 31, 2021) 58.6 13.7 Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 5.18 % at December 31, 2022 and 2.06 % at December 31, 2021) 14.2 25.4 Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25 %) 575.0 575.0 Other borrowings 10.4 9.4 Total debt 1,004.9 1,006.7 Less: Current portion 60.0 43.0 Debt issuance costs, unamortized 8.4 9.6 Long-term debt, net $ 936.5 $ 954.1 |
Schedule of Maximum Consolidated Leverage Ratio | the maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) financial covenant for the fiscal quarters beginning March 31, 2021, 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 4.00 :1.00 the maximum Consolidated Leverage Ratio financial covenant from current levels for each of the five fiscal quarters beginning December 31, 2022, and ending December 31, 2023, as follows: Quarter Ended Maximum Consolidated Leverage Ratio December 2022 4.50 :1.00 March 2023 5.00 :1.00 June 2023 5.00 :1.00 September 2023 4.75 :1.00 December 2023 4.25 :1.00 |
Schedule of Applicable Rate and Undrawn Fee Based on Company's Consolidated Leverage Ratio | 4.50 to 1.00 2.50 % 1.50 % 0.500 %
≤ 4.50 to 1.00 and > 4.00 to 1.00 2.25 % 1.25 % 0.375 %
≤ 4.00 to 1.00 and > 3.50 to 1.00 2.00 % 1.00 % 0.350 %
≤ 3.50 to 1.00 and > 3.00 to 1.00 1.75 % 0.75 % 0.300 %
≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50 % 0.50 % 0.250 %
≤ 2.00 to 1.00 1.25 % 0.25 % 0.200 %" 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), 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 > 4.50 to 1.00 2.50 % 1.50 % 0.500 % ≤ 4.50 to 1.00 and > 4.00 to 1.00 2.25 % 1.25 % 0.375 % ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.00 % 1.00 % 0.350 % ≤ 3.50 to 1.00 and > 3.00 to 1.00 1.75 % 0.75 % 0.300 % ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50 % 0.50 % 0.250 % ≤ 2.00 to 1.00 1.25 % 0.25 % 0.200 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | The components of lease expense for the years ended December 31, 2022, 2021, and 2020, were as follows: (in millions) 2022 2021 2020 Operating lease cost $ 29.5 $ 29.7 $ 28.3 Sublease income ( 2.4 ) ( 1.9 ) ( 1.2 ) Total lease cost $ 27.1 $ 27.8 $ 27.1 Other information related to leases for the years ended December 31, 2022, and 2021 was as follows: (in millions, except lease term and discount rate) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 30.5 $ 31.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11.4 $ 41.1 Weighted average remaining lease term: Operating leases 6.3 years Weighted average discount rate: Operating leases 4.6 % |
Future Minimum Lease Payments | Future minimum lease payments, net of sub-lease income, for all non-cancelable leases as of December 31, 2022 were as follows: (in millions) Operating 2023 $ 25.4 2024 19.6 2025 16.3 2026 13.0 2027 8.8 Thereafter 29.1 Total minimum lease payments 112.2 Less imputed interest 15.8 Future minimum payments for leases, net of sublease rental income and imputed interest $ 96.4 |
Pension and Other Retiree Ben_2
Pension and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2022 2021 2022 2021 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 212.5 $ 226.1 $ 673.6 $ 748.7 $ 4.3 $ 5.1 Service cost — 0.5 1.0 1.5 — — Interest cost 4.9 4.5 9.6 6.3 0.1 0.1 Actuarial gain ( 45.2 ) ( 3.1 ) ( 158.7 ) ( 33.2 ) ( 0.6 ) ( 0.5 ) Participants’ contributions — — 0.1 0.1 — — Benefits paid ( 9.9 ) ( 15.5 ) ( 25.7 ) ( 28.4 ) ( 0.4 ) ( 0.5 ) Settlement — — — ( 0.3 ) — — Termination benefits — — 0.8 — — — Foreign exchange rate changes — — ( 59.6 ) ( 21.4 ) ( 0.2 ) 0.1 Acquisitions — — — 0.3 — — Projected benefit obligation at end of year 162.3 212.5 441.1 673.6 3.2 4.3 Change in plan assets Fair value of plan assets at beginning of year 180.9 170.6 481.7 484.8 — — Actual return on plan assets ( 33.3 ) 18.6 ( 117.2 ) 16.5 — — Employer contributions 2.5 7.2 13.4 15.0 0.4 0.5 Participants’ contributions — — 0.1 0.1 — — Benefits paid ( 9.9 ) ( 15.5 ) ( 25.7 ) ( 28.4 ) ( 0.4 ) ( 0.5 ) Settlement — — — ( 0.3 ) — — Foreign exchange rate changes — — ( 45.9 ) ( 6.0 ) — — Fair value of plan assets at end of year 140.2 180.9 306.4 481.7 — — Funded status (Fair value of plan assets less PBO) $ ( 22.1 ) $ ( 31.6 ) $ ( 134.7 ) $ ( 191.9 ) $ ( 3.2 ) $ ( 4.3 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 2.8 $ 2.0 $ — $ — Other current liabilities — — 6.9 7.1 0.4 0.4 Pension and post-retirement benefit obligations 22.1 31.6 130.6 186.8 2.8 3.9 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 91.3 96.1 120.6 166.5 ( 4.2 ) ( 4.3 ) Unrecognized prior service cost (credit) — — 5.2 6.1 — ( 0.1 ) |
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) 2022 2021 2022 2021 Accumulated benefit obligation $ 162.3 $ 212.5 $ 406.1 $ 616.7 Fair value of plan assets 140.2 180.9 273.7 437.8 |
Schedule of Defined Benefit Plan, Plan with Projected Benefit Obligations in Excess of Plan Assets | The following table sets out information for pension plans with a projected benefit obligation in excess of plan assets: U.S. International (in millions) 2022 2021 2022 2021 Projected benefit obligation $ 162.3 $ 212.5 $ 411.3 $ 631.7 Fair value of plan assets 140.2 180.9 273.7 437.8 |
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, 2022, 2021, and 2020, were as follows: Year Ended December 31, Pension Post-retirement U.S. International (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ — $ 0.5 $ 1.6 $ 1.0 $ 1.5 $ 1.5 $ — $ — $ — Interest cost 4.9 4.5 5.9 9.6 6.3 9.7 0.1 0.1 0.1 Expected return on plan assets ( 10.9 ) ( 11.4 ) ( 11.4 ) ( 17.5 ) ( 19.3 ) ( 18.6 ) — — — Amortization of net loss (gain) 3.7 3.6 3.2 5.0 7.1 4.9 ( 0.5 ) ( 0.5 ) ( 0.5 ) Amortization of prior service cost — 0.1 0.4 0.3 0.3 0.3 — — — Special termination benefit (1) — — — 0.8 — — — — — Curtailment loss (2) — 1.4 — — — — — — — Settlement loss — — — — — 0.4 — — — Net periodic benefit (income) cost (3) $ ( 2.3 ) $ ( 1.3 ) $ ( 0.3 ) $ ( 0.8 ) $ ( 4.1 ) $ ( 1.8 ) $ ( 0.4 ) $ ( 0.4 ) $ ( 0.4 ) (1) Special termination benefit of $ 0.8 million due to the plan wind up of the ACCO Brands Canada Salaried and Hourly plans effective July 1, 2022. The plan wind up is considered an irrevocable event that triggers special accounting, specifically a one-time special termination benefit. The plan wind up is expected to be completed in 2024. (2) Curtailment loss of $ 1.4 million due to the pension benefit freeze for the Sidney group under the ACCO Brands Corporation Pension Plan. (3) The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income. |
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, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Current year actuarial (gain) loss $ ( 1.0 ) $ ( 10.3 ) $ 10.6 $ ( 23.9 ) $ ( 30.5 ) $ 36.5 $ ( 0.6 ) $ ( 0.5 ) $ — Amortization of actuarial (loss) gain ( 3.7 ) ( 3.6 ) ( 3.2 ) ( 5.1 ) ( 7.1 ) ( 5.3 ) 0.5 0.5 0.5 Amortization of prior service cost — ( 1.5 ) ( 0.4 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) — — — Foreign exchange rate changes — — — ( 21.5 ) ( 4.1 ) 8.5 0.2 — — Total recognized in other comprehensive income (loss) ( 4.7 ) ( 15.4 ) 7.0 ( 50.8 ) ( 42.0 ) 39.4 0.1 — 0.5 Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ ( 7.0 ) $ ( 16.7 ) $ 6.7 $ ( 51.6 ) $ ( 46.1 ) $ 37.6 $ ( 0.3 ) $ ( 0.4 ) $ 0.1 |
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.1 % 2.9 % 2.6 % 4.5 % 1.8 % 1.2 % 3.8 % 2.4 % 1.9 % Rate of compensation increase N/A N/A N/A 3.0 % 3.0 % 2.9 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2022, 2021, and 2020 were as follows: Pension Post-retirement U.S. International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 2.9 % 3.1 % 3.2 % 1.8 % 1.0 % 1.6 % 2.4 % 2.2 % 2.7 % Expected long-term rate of return 6.5 % 6.8 % 7.0 % 4.0 % 4.0 % 4.2 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 2.7 % 2.9 % 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, 2022, 2021, and 2020 were as follows: Post-retirement 2022 2021 2020 Health care cost trend rate assumed for next year 6 % 6 % 6 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 5 % 5 % 4 % Year that the rate reaches the ultimate trend rate 2030 2030 2028 |
Schedule of Allocation of Plan Assets | Our pension plan weighted average asset allocations as of December 31, 2022 and 2021 were as follows: 2022 2021 U.S. International U.S. International Asset category Equity securities 35 % 9 % 63 % 15 % Fixed income 58 % 56 % 28 % 59 % Real estate 4 % 3 % 5 % 4 % Other (4) 3 % 32 % 4 % 22 % Total 100 % 100 % 100 % 100 % (4) Multi-strategy hedge funds, commodity linked funds, private equity funds, 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: (in millions) Pension Benefits Post-retirement Benefits 2023 $ 38.7 $ 0.4 2024 37.6 0.4 2025 38.7 0.4 2026 38.9 0.3 2027 39.1 0.3 Years 2028 - 2032 205.0 1.3 |
Schedule of Multi-employer Plans | Details regarding the plan are outlined in the table below. Pension Protection Act Zone Status Contributions Year Ended December 31, Pension Fund EIN/Pension Plan Number 2022 2021 FIP/RP Status Pending/Implemented 2022 2021 2020 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.1 $ 0.1 $ 0.1 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, 2022 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2022 Mutual funds $ 105.3 $ — $ — $ 105.3 Exchange traded funds 33.8 — — 33.8 Common collective trust funds — 1.1 — 1.1 Total $ 139.1 $ 1.1 $ — $ 140.2 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2021 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2021 Mutual funds $ 104.9 $ — $ — $ 104.9 Exchange traded funds 75.1 — — 75.1 Common collective trust funds — 0.9 — 0.9 Total $ 180.0 $ 0.9 $ — $ 180.9 |
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, 2022 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2022 Cash and cash equivalents $ 16.6 $ — $ — $ 16.6 Equity securities 25.2 — — 25.2 Corporate debt securities — 61.0 — 61.0 Multi-strategy hedge funds — 32.1 — 32.1 Insurance contracts — 3.8 — 3.8 Real estate — 2.2 — 2.2 Government debt securities — 109.1 — 109.1 Investments measured at net asset value (5) Multi-strategy hedge funds 30.2 Real estate 6.0 Private equity 20.2 Total $ 41.8 $ 208.2 $ — $ 306.4 (5) 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. The fair value measurements of our international pension plans assets by asset category as of December 31, 2021 were as follows: (in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value as of December 31, 2021 Cash and cash equivalents $ 10.2 $ — $ — $ 10.2 Equity securities 71.1 — — 71.1 Exchange traded funds 0.1 — — 0.1 Corporate debt securities — 99.6 — 99.6 Multi-strategy hedge funds — 39.0 — 39.0 Insurance contracts — 3.8 — 3.8 Real estate — 6.7 — 6.7 Government debt securities — 186.2 — 186.2 Investments measured at net asset value (5) Multi-strategy hedge funds 46.1 Real estate 11.3 Private equity 7.6 Total $ 81.4 $ 335.3 $ — $ 481.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 (Loss) Income for the years ended December 31, 2022, 2021, and 2020: (in millions) 2022 2021 2020 Selling, general and administrative expense $ 9.5 $ 15.2 $ 6.5 Loss before income tax ( 9.5 ) ( 15.2 ) ( 6.5 ) Income tax benefit ( 2.2 ) ( 3.6 ) ( 1.6 ) Net loss $ ( 7.3 ) $ ( 11.6 ) $ ( 4.9 ) |
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, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Stock option compensation expense $ 3.7 $ 3.6 $ 2.7 RSU compensation expense 4.4 5.3 5.2 PSU compensation expense 1.4 6.3 ( 1.4 ) Total stock-based compensation expense $ 9.5 $ 15.2 $ 6.5 |
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, 2022 2021 2020 Weighted average expected lives 6.0 years 6.0 years 6.0 years Weighted average risk-free interest rate 1.89 % 0.93 % 0.81 % Weighted average expected volatility 41.7 % 41.3 % 36.0 % Expected dividend yield 3.60 % 3.07 % 3.16 % Weighted average grant date fair value $ 2.43 $ 2.45 $ 2.03 |
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, 2022 is presented below: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Outstanding at December 31, 2021 5,860,567 $ 9.34 Granted 1,793,833 $ 8.35 Exercised ( 573,860 ) $ 7.51 Forfeited ( 351,925 ) $ 8.59 Outstanding at December 31, 2022 6,728,615 $ 9.27 6.1 years - million Exercisable shares at December 31, 2022 3,643,352 $ 10.04 4.2 years - million |
Summary of Changes in RSUs Outstanding | A summary of the changes in the RSUs outstanding under the Plan during 2022 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 1,906,891 $ 8.64 Granted 695,057 $ 8.15 Vested and distributed ( 489,964 ) $ 8.86 Forfeited and cancelled ( 95,864 ) $ 8.25 Outstanding at December 31, 2022 2,016,120 $ 8.43 Vested and deferred at December 31, 2022 (1) 574,409 $ 8.84 (1) Included in outstanding at December 31, 2022 . 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 2022 is presented below: Stock Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 1,758,220 $ 8.42 Granted 1,170,884 $ 8.88 Vested ( 350,656 ) $ 8.42 Forfeited and cancelled ( 161,938 ) $ 8.62 Other - decrease due to performance of PSUs ( 1,743,341 ) $ 8.71 Outstanding at December 31, 2022 673,169 $ 8.42 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: December 31, (in millions) 2022 2021 Raw materials $ 76.8 $ 67.5 Work in process 4.4 4.1 Finished goods 314.0 356.4 Total inventories $ 395.2 $ 428.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 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) 2022 2021 Land and improvements $ 20.6 $ 21.5 Buildings and improvements to leaseholds 125.3 140.2 Machinery and equipment 439.5 486.6 Construction in progress 3.8 8.1 589.2 656.4 Less: accumulated depreciation ( 404.1 ) ( 441.8 ) Net property, plant and equipment (1) $ 185.1 $ 214.6 (1) Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Brands North America ACCO Brands EMEA ACCO Brands International Total Balance at December 31, 2020 $ 461.2 $ 188.2 $ 178.0 $ 827.4 Acquisitions (1) ( 14.5 ) 2.0 — ( 12.5 ) Foreign currency translation — ( 11.6 ) ( 0.8 ) ( 12.4 ) Balance at December 31, 2021 $ 446.7 $ 178.6 $ 177.2 $ 802.5 Goodwill impairment ( 98.7 ) — — ( 98.7 ) Foreign currency translation — ( 33.0 ) 0.7 ( 32.3 ) Balance at December 31, 2022 $ 348.0 $ 145.6 $ 177.9 $ 671.5 (1) Goodwill has been recorded on our Consolidated Balance Sheet related to the Franken acquisition, which is part of our EMEA segment, and represents the excess of the cost of the Franken acquisition when compared to the fair value estimate of the net assets acquired on April 1, 2021 (the date of the Franken acquisition). 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) and includes a working capital adjustment of $ 18.2 million recorded in the first quarter of 2021 as a reduction to the purchase price, partially offset by purchase accounting adjustments of $ 3.7 million. See "Note 3 . Acquisitions" for additional details. |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The Company's gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 (in millions) Gross Carrying Amounts Accumulated Amortization Net Book Value Gross Carrying Amounts Accumulated Amortization Net Book Value Indefinite-lived intangible assets: Trade names (1) $ 410.6 $ ( 44.5 ) $ 366.1 $ 417.6 $ ( 44.5 ) $ 373.1 Amortizable intangible assets: Trade names 369.7 ( 123.0 ) 246.7 373.2 ( 110.5 ) 262.7 Customer and contractual relationships 356.9 ( 198.2 ) 158.7 366.5 ( 182.4 ) 184.1 Vendor relationships 82.4 ( 11.2 ) 71.2 82.4 ( 5.7 ) 76.7 Patents 8.1 ( 3.8 ) 4.3 8.6 ( 3.0 ) 5.6 Subtotal 817.1 ( 336.2 ) 480.9 830.7 ( 301.6 ) 529.1 Total identifiable intangibles $ 1,227.7 $ ( 380.7 ) $ 847.0 $ 1,248.3 $ ( 346.1 ) $ 902.2 (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) 2023 2024 2025 2026 2027 Estimated amortization expense (2) $ 43.3 $ 41.7 $ 40.1 $ 38.0 $ 35.6 (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 Trade name $ 21.6 15 years Customer relationships 128.6 15 years Vendor relationships 82.4 15 years Developed technology 2.8 5 years Total identifiable intangibles acquired $ 235.4 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 was as follows: Balance at Non-cash Items / Balance at (in millions) December 31, Provision Cash Currency December 31, Employee termination costs (1) $ 3.4 $ 9.4 $ ( 4.0 ) $ ( 0.1 ) $ 8.7 Termination of lease agreements 1.1 ( 0.2 ) ( 0.9 ) — — Other — 0.4 ( 0.4 ) — — Total restructuring liability $ 4.5 $ 9.6 $ ( 5.3 ) $ ( 0.1 ) $ 8.7 (1) We expect the remaining $ 8.7 million employee termination costs to be substantially paid within the next twelve months . The summary of the activity in the restructuring accounts for the year ended December 31, 2021 was as follows: Balance at Non-cash Items / Balance at (in millions) December 31, Provision Cash Currency December 31, Employee termination costs $ 8.1 $ 5.2 $ ( 9.7 ) $ ( 0.2 ) $ 3.4 Termination of lease agreements 1.0 0.7 ( 1.1 ) 0.5 1.1 Other 0.2 0.1 ( 0.2 ) ( 0.1 ) — Total restructuring liability $ 9.3 $ 6.0 $ ( 11.0 ) $ 0.2 $ 4.5 The summary of the activity in the restructuring accounts for the year ended December 31, 2020 was as follows: (in millions) December 31, Provision Cash Currency December 31, Employee termination costs $ 10.7 $ 8.5 $ ( 11.1 ) $ — $ 8.1 Termination of lease agreements 0.6 1.5 ( 0.7 ) ( 0.4 ) 1.0 Other 0.5 0.9 ( 0.5 ) ( 0.7 ) 0.2 Total restructuring liability $ 11.8 $ 10.9 $ ( 12.3 ) $ ( 1.1 ) $ 9.3 Restructuring charges for the years ended December 31, 2022, 2021 and 2020 by reporting segment were as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 5.3 $ 4.4 $ 7.6 ACCO Brands EMEA 3.4 0.5 0.6 ACCO Brands International 0.7 1.1 2.6 Corporate 0.2 — 0.1 Total restructuring charges $ 9.6 $ 6.0 $ 10.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Domestic operations $ ( 80.1 ) $ ( 5.6 ) $ 1.7 Foreign operations 95.0 117.0 76.9 Total $ 14.9 $ 111.4 $ 78.6 |
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, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Income tax at U.S. statutory rate; 21 % $ 3.1 $ 23.4 $ 16.5 Unrecognized tax benefits ( 7.6 ) ( 1.9 ) — Impact of final GILTI regulations for 2018 and 2019 — ( 1.0 ) ( 2.7 ) Statutory tax rate changes 0.6 ( 6.8 ) ( 2.0 ) Statutory tax law changes — ( 1.2 ) — State, local and other tax, net of federal benefit 3.6 2.0 0.1 Impact from foreign inclusions 4.0 3.2 1.3 U.S. effect of foreign dividends and withholding taxes 1.8 1.2 1.0 Foreign income taxed at a higher effective rate 1.1 1.5 1.4 Net Brazilian Tax Assessments impact 1.9 0.5 1.5 (Decrease) increase in valuation allowance 3.4 ( 11.4 ) 2.2 General business credit ( 1.9 ) ( 2.1 ) — Excess expense from stock-based compensation 1.1 0.5 0.9 Impairment of non-deductible goodwill 20.7 — — Impact of legal entity rationalization ( 4.1 ) — — Other increase (decrease) 0.4 1.6 ( 3.6 ) Income taxes as reported $ 28.1 $ 9.5 $ 16.6 Effective tax rate 188.6 % 8.5 % 21.1 % |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Current expense (benefit) Federal and other $ 1.8 $ 2.0 $ ( 0.1 ) Foreign 25.0 28.5 24.3 Total current income tax expense 26.8 30.5 24.2 Deferred expense (benefit) Federal and other 6.8 ( 16.5 ) ( 2.0 ) Foreign ( 5.5 ) ( 4.5 ) ( 5.6 ) Total deferred income tax (benefit) expense 1.3 ( 21.0 ) ( 7.6 ) Total income tax expense $ 28.1 $ 9.5 $ 16.6 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: (in millions) 2022 2021 Deferred tax assets Compensation and benefits $ 15.5 $ 14.4 Pension 23.2 41.2 Inventory 10.1 10.8 Other reserves 21.7 22.3 Accounts receivable 9.7 9.7 Foreign tax credit carryforwards 11.1 17.9 Net operating loss carryforwards 89.2 96.5 Interest expense carryforwards 17.0 15.2 Other 7.9 4.5 Gross deferred income tax assets 205.4 232.5 Valuation allowance ( 51.9 ) ( 52.4 ) Net deferred tax assets 153.5 180.1 Deferred tax liabilities Depreciation ( 8.9 ) ( 13.2 ) Unremitted non-U.S. earnings accrual ( 5.5 ) ( 4.8 ) Identifiable intangibles ( 182.9 ) ( 191.2 ) Other ( 0.6 ) ( 0.2 ) Gross deferred tax liabilities ( 197.9 ) ( 209.4 ) Net deferred tax liabilities $ ( 44.4 ) $ ( 29.3 ) |
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, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 Balance at beginning of year $ 43.3 $ 45.1 $ 50.5 Additions for tax positions of prior years 2.5 4.5 2.9 Reductions for tax positions of prior years ( 8.3 ) ( 4.2 ) ( 1.1 ) Acquisitions — — 1.4 Increase resulting from foreign currency translation 1.6 — — Decrease resulting from foreign currency translation — ( 2.1 ) ( 8.6 ) Balance at end of year $ 39.1 $ 43.3 $ 45.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our weighted-average shares outstanding for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Weighted-average number of shares of common stock outstanding - basic 95.3 95.5 94.9 Stock options — 0.1 0.1 Restricted stock units — 1.5 1.1 Weighted-average shares and assumed conversions - diluted (1) 95.3 97.1 96.1 (1) Due to the net loss during the twelve months ended December 31, 2022, the denominator in the diluted earnings per share calculation does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as it would result in a less dilutive computation. As a result, diluted earnings per share for the twelve months ended December 31, 2022 are the same as basic earnings per share. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet Location December 31, December 31, Balance Sheet Location December 31, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 3.6 $ 5.6 Other current liabilities $ 1.9 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.7 0.7 Other current liabilities 0.7 0.6 Foreign exchange contracts Other non-current assets 4.9 10.2 Other non-current liabilities 4.9 10.2 Total derivatives $ 9.2 $ 16.5 $ 7.5 $ 10.9 |
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, 2022, 2021, and 2020: 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 Reclassified from AOCI to Income (Effective Portion) (in millions) 2022 2021 2020 2022 2021 2020 Cash flow hedges: Foreign exchange contracts $ 9.8 $ 9.1 $ ( 4.5 ) Cost of products sold $ ( 14.0 ) $ 1.0 $ 0.5 The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of (Loss) Income Location of (Gain) Loss Recognized in Income on Derivatives Amount of (Gain) Loss Recognized in Income (in millions) 2022 2021 2020 Foreign exchange contracts Other expense, net $ ( 3.7 ) $ — $ ( 0.1 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: (in millions) December 31, December 31, Assets: Forward currency contracts $ 9.2 $ 16.5 Liabilities: Forward currency contracts $ 7.5 $ 10.9 |
Summary of Reconciliation of Beginning and Ending Balance of Contingent Consideration | The following table provides a reconciliation of the beginning and ending balance of the contingent consideration for the year ended December 31, 2022: (in millions) Contingent Consideration Balance at December 31, 2020 $ 18.2 Change in fair value 19.0 Payments ( 0.4 ) Balance at December 31, 2021 $ 36.8 Change in fair value ( 9.0 ) Other (1) ( 0.8 ) Payments ( 27.0 ) Balance at December 31, 2022 $ — (1) During the third quarter, we reached an agreement with the former owner of the Lucid Sound business to settle the Lucid Sound contingent earnout liability which we assumed in the PowerA acquisition. This settlement was paid in the fourth quarter of 2022. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | 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, 2020 $ ( 3.1 ) $ ( 318.8 ) $ ( 242.3 ) $ ( 564.2 ) Other comprehensive income (loss) before reclassifications, net of tax 6.3 ( 23.4 ) 35.9 18.8 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.8 — 9.1 9.9 Balance at December 31, 2021 $ 4.0 $ ( 342.2 ) $ ( 197.3 ) $ ( 535.5 ) Other comprehensive income (loss) before reclassifications, net of tax 7.0 ( 37.9 ) 29.1 ( 1.8 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax ( 9.9 ) — 6.9 ( 3.0 ) Balance at December 31, 2022 $ 1.1 $ ( 380.1 ) $ ( 161.3 ) $ ( 540.3 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of AOCI for the years ended December 31, 2022, 2021, and 2020 were as follows: (in millions) 2022 2021 2020 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 $ 14.0 $ ( 1.0 ) $ ( 0.5 ) Cost of products sold Tax (expense) benefit ( 4.1 ) 0.2 0.2 Income tax expense Net of tax $ 9.9 $ ( 0.8 ) $ ( 0.3 ) Defined benefit plan items: Amortization of actuarial loss $ ( 8.2 ) $ ( 10.2 ) $ ( 8.0 ) (1) Amortization of prior service cost ( 0.3 ) ( 1.8 ) ( 0.7 ) (1) Total before tax ( 8.5 ) ( 12.0 ) ( 8.7 ) Tax benefit 1.6 2.9 2.0 Income tax expense Net of tax $ ( 6.9 ) $ ( 9.1 ) $ ( 6.7 ) Total reclassifications for the period, net of tax $ 3.0 $ ( 9.9 ) $ ( 7.0 ) (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, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our net sales disaggregated by regional geography (1) , based upon our reporting business segments for the years ended December 31, 2022, 2021 and 2020, and our net sales disaggregated by the timing of revenue recognition for the years ended December 31, 2022, 2021 and 2020: (in millions) 2022 2021 2020 United States $ 889.2 $ 934.2 $ 725.3 Canada 108.8 108.2 96.8 ACCO Brands North America 998.0 1,042.4 822.1 ACCO Brands EMEA (2) 580.3 662.9 523.9 Australia/N.Z. 125.6 140.3 128.7 Latin America 197.5 125.5 138.8 Asia-Pacific 46.2 54.2 41.7 ACCO Brands International 369.3 320.0 309.2 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 (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) 2022 2021 2020 Product and services transferred at a point in time $ 1,899.5 $ 1,975.9 $ 1,602.5 Product and services transferred over time 48.1 49.4 52.7 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 |
Information on Business Segme_2
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by reportable business segment for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 998.0 $ 1,042.4 $ 822.1 ACCO Brands EMEA 580.3 662.9 523.9 ACCO Brands International 369.3 320.0 309.2 Net sales $ 1,947.6 $ 2,025.3 $ 1,655.2 |
Schedule of Operating Income by Business Segment | Operating income by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ ( 4.9 ) $ 121.9 $ 83.0 ACCO Brands EMEA 21.7 61.7 51.6 ACCO Brands International 50.5 31.6 15.6 Segment operating income 67.3 215.2 150.2 Change in fair value of contingent consideration 9.0 ( 19.0 ) — Corporate ⁽ ¹ ⁾ ( 41.5 ) ( 45.2 ) ( 37.8 ) Operating income⁽²⁾ 34.8 151.0 112.4 Interest expense 45.6 46.3 38.8 Interest income ( 8.3 ) ( 1.9 ) ( 1.0 ) Non-operating pension income ( 4.5 ) ( 7.9 ) ( 5.6 ) Other (income) expense, net ( 12.9 ) 3.1 1.6 Income before income tax $ 14.9 $ 111.4 $ 78.6 (1) Corporate operating loss in 2021 and 2020 includes transaction costs of $ 0.2 million and $ 1.6 million, respectively, primarily for legal and due diligence expenditures associated with the PowerA and Foroni 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; v) less restructuring charges; and vi) less change in the fair value of contingent consideration. |
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, 2022 and 2021: (in millions) 2022 2021 ACCO Brands North America (3) $ 459.2 $ 535.2 ACCO Brands EMEA (3) 236.0 296.3 ACCO Brands International (3) 308.4 265.1 Total segment assets 1,003.6 1,096.6 Unallocated assets 1,787.2 1,993.4 Corporate (3) 3.9 1.3 Total assets $ 2,794.7 $ 3,091.3 (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 right of use asset, leases, the allocation of identifiable intangible assets and goodwill resulting from business combinations as of December 31, 2022 and 2021: (in millions) 2022 2021 ACCO Brands North America (4) $ 1,359.9 $ 1,610.0 ACCO Brands EMEA (4) 588.4 728.6 ACCO Brands International (4) 573.8 567.9 Total segment assets 2,522.1 2,906.5 Unallocated assets 268.7 183.5 Corporate (4) 3.9 1.3 Total assets $ 2,794.7 $ 3,091.3 (4) Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs. |
Schedule of Capital Spend and Depreciation Expense by Segment | Capital spend by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 8.8 $ 11.2 $ 9.3 ACCO Brands EMEA 4.7 7.3 4.0 ACCO Brands International 4.2 2.7 2.0 Total capital spend $ 17.7 $ 21.2 $ 15.3 Depreciation expense by reportable business segment for the years ended December 31, 2022, 2021 and 2020 was as follows: (in millions) 2022 2021 2020 ACCO Brands North America $ 20.1 $ 20.7 $ 19.6 ACCO Brands EMEA 12.6 13.1 12.7 ACCO Brands International 5.2 5.6 5.6 Total depreciation $ 37.9 $ 39.4 $ 37.9 |
Schedule of Property, Plant and Equipment, Net by Geographic Region | Property, plant and equipment, net by reportable business segment as of December 31, 2022, 2021 was as follows: (in millions) 2022 2021 U.S. $ 82.3 $ 96.8 Canada 1.7 1.9 ACCO Brands North America 84.0 98.7 ACCO Brands EMEA 62.9 77.4 Australia/N.Z. 10.0 11.3 Latin America 26.6 25.8 Asia-Pacific 1.6 1.4 ACCO Brands International 38.2 38.5 Property, plant and equipment, net $ 185.1 $ 214.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 were as follows: (in millions) 2023 $ 132.3 2024 6.0 2025 4.6 2026 0.7 2027 0.3 Thereafter 0.1 Total unconditional purchase commitments $ 144.0 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) € in Millions | 12 Months Ended | |||||
Apr. 01, 2021 USD ($) | Apr. 01, 2021 EUR (€) | Dec. 17, 2020 USD ($) Segment | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Working capital adjustment | $ 18,200,000 | |||||
Number of operating segments | Segment | 3 | 3 | ||||
Cost of acquisitions, net of cash acquired | $ 0 | $ (15,400,000) | $ 339,400,000 | |||
Franken | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of working capital adjustment | $ 2,800,000 | € 2.4 | ||||
Cash acquired | $ 1,100,000 | |||||
PowerA | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of working capital adjustment | $ 321,800,000 | |||||
Working capital adjustment | 18,200,000 | |||||
Additional earnout (up to) | $ 55,000,000 | 55,000,000 | ||||
Fair value of contingent earnout liability | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2022 USD ($) Reportingunit | May 31, 2022 USD ($) | Dec. 17, 2020 Segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Segment Reportingunit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Line Items] | |||||||
Number of operating segments | Segment | 3 | 3 | |||||
Interest costs capitalized | $ 0 | $ 0 | $ 300,000 | ||||
Impairment of intangible assets | $ 0 | $ 0 | |||||
Percentage of excess fair value over carrying value | 10% | ||||||
Goodwill impairment | $ 98,700,000 | $ 0 | $ 98,700,000 | 0 | 0 | ||
Number of reporting units | Reportingunit | 3 | 3 | |||||
Deferred taxes for undistributed earnings of foreign subsidiaries | $ 5,500,000 | ||||||
Undistributed earnings of foreign subsidiaries not permanently reinvested | 216,000,000 | ||||||
Undistributed earnings of foreign subsidiaries | 299,000,000 | ||||||
Advertising expenses | 108,800,000 | 117,400,000 | 99,000,000 | ||||
Research and development expenses | $ 26,300,000 | $ 26,600,000 | $ 19,700,000 | ||||
Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Service And Maintenance Agreement Term | 3 months | ||||||
Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of excess fair value over carrying value | 50% | ||||||
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 | ||||||
Computer software | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 5 years | ||||||
Computer software | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years | ||||||
Leitz Indefinite-lived Trade Name | |||||||
Accounting Policies [Line Items] | |||||||
Impairment of intangible assets | $ 0 | ||||||
Leitz Indefinite-lived Trade Name | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of excess fair value over carrying value | 5% | ||||||
ACCO Brands North America | |||||||
Accounting Policies [Line Items] | |||||||
Goodwill impairment | $ 98,700,000 | $ 98,700,000 | |||||
ACCO Brands International | |||||||
Accounting Policies [Line Items] | |||||||
Goodwill impairment | $ 0 | 0 | |||||
ACCO Brands International | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of excess fair value over carrying value | 10% | ||||||
ACCO Brands EMEA | |||||||
Accounting Policies [Line Items] | |||||||
Goodwill impairment | $ 0 | $ 0 | |||||
ACCO Brands EMEA | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of excess fair value over carrying value | 50% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) € in Millions | 12 Months Ended | |||||
Apr. 01, 2021 EUR (€) | Apr. 01, 2021 USD ($) | Dec. 17, 2020 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of reportable segments | Segment | 3 | |||||
Working capital adjustment | $ 18,200,000 | |||||
PowerA | ||||||
Business Acquisition [Line Items] | ||||||
Preliminary purchase price | 321,800,000 | |||||
Working capital adjustment | 18,200,000 | |||||
Additional earnout (up to) | $ 55,000,000 | $ 55,000,000 | ||||
Payments made for prior year achievement of sales and profit objectives. | 27,000,000 | |||||
Payments made for achievement of sales and profit objectives | 0 | |||||
Fair value of contingent earnout liability | $ 0 | |||||
PowerA | SG&A Expenses | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs | $ 100,000 | $ 3,700,000 | ||||
Franken | ||||||
Business Acquisition [Line Items] | ||||||
Preliminary purchase price | € 2.4 | $ 2,800,000 | ||||
Cash acquired | $ 1,100,000 |
Acquisitions - Allocation of Co
Acquisitions - Allocation of Consideration Given to Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 17, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Less fair value of assets acquired: | ||||
Goodwill | $ 671.5 | $ 802.5 | $ 827.4 | |
PowerA | ||||
Calculation of Goodwill: | ||||
Purchase price, net of working capital adjustment | $ 321.8 | |||
Fair value of contingent consideration | 18.2 | $ 0 | $ 36.8 | $ 18.2 |
Plus fair value of liabilities assumed: | ||||
Accrued liabilities | 9.2 | |||
Fair value of liabilities assumed | 9.2 | |||
Less fair value of assets acquired: | ||||
Inventory | 29.3 | |||
Property and equipment | 0.2 | |||
Identifiable intangibles | 235.4 | |||
Other assets | 13.2 | |||
Fair value of assets acquired | 278.1 | |||
Goodwill | $ 71.1 |
Long-term Debt and Short-term_3
Long-term Debt and Short-term Borrowings - Summary of Notes Payable and Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,004.9 | $ 1,006.7 |
Current portion | 60 | 43 |
Debt issuance costs, unamortized | 8.4 | 9.6 |
Long-term debt, net | 936.5 | 954.1 |
Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 3.90% at December 31, 2022 and 2.00% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Total debt | 227.4 | 254.8 |
USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.40% at December 31, 2022 and 2.22% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Total debt | 84.4 | 89 |
Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.30% at December 31, 2022 and 2.11% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Total debt | 34.9 | 39.4 |
U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.36% at December 31, 2022 and 2.10% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Total debt | 58.6 | 13.7 |
Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 5.18% at December 31, 2022 and 2.06% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Total debt | 14.2 | 25.4 |
Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||
Debt Instrument [Line Items] | ||
Total debt | 575 | 575 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | $ 10.4 | $ 9.4 |
Long-term Debt and Short-term_4
Long-term Debt and Short-term Borrowings - Summary of Notes Payable and Long-Term Debt (Parenthetical) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Senior Secured Notes | Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 3.90% at December 31, 2022 and 2.00% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | 2% |
Senior Secured Notes | USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.40% at December 31, 2022 and 2.22% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.40% | 2.22% |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.30% at December 31, 2022 and 2.11% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.30% | 2.11% |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.36% at December 31, 2022 and 2.10% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.36% | 2.10% |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 5.18% at December 31, 2022 and 2.06% at December 31, 2021) | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.18% | 2.06% |
Senior Notes | Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||
Debt Instrument [Line Items] | ||
Stated percentage | 4.25% | 4.25% |
Long-term Debt and Short-term_5
Long-term Debt and Short-term Borrowings - Narrative (Details) € in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
May 23, 2019 | Jan. 27, 2017 USD ($) | Jun. 30, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 01, 2020 USD ($) | May 22, 2019 | Jan. 27, 2017 EUR (€) | Jan. 27, 2017 AUD ($) | |
Debt Instrument [Line Items] | ||||||||||
Total debt | $ 1,004.9 | $ 1,006.7 | ||||||||
Maximum consolidated leverage ratio | 5 | |||||||||
Cash and cash equivalents of the loan parties | $ 100 | |||||||||
Debt issuance costs | $ 1.2 | 10.5 | $ 3.2 | |||||||
Senior Secured Credit Facility Due January 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement, term | 5 years | |||||||||
Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt | $ 575 | $ 575 | ||||||||
Applicable Rate on Base Rate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||
Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement, face amount | $ 320.8 | € 300 | ||||||||
Senior Secured Notes | AUD Term Loan A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 60.4 | $ 80 | ||||||||
Senior Secured Notes | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Coverage Ratio | 6.56 | |||||||||
Maximum consolidated leverage ratio for payment of dividends or repurchase of shares | 4.50 | |||||||||
Leverage ratio | 4.16 | |||||||||
Dividends and/or purchase shares, threshold | $ 40 | |||||||||
Dividends and/or purchase shares, threshold, percent of total assets | 1% | |||||||||
Maximum borrowing capacity, potential increase | $ 500 | |||||||||
Senior Secured Notes | Minimum | Senior Secured Credit Facility Due January 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed coverage ratio | 1.25 | |||||||||
Senior Secured Notes | Minimum | Senior Secured Credit Facility Due May 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Coverage Ratio | 3 | |||||||||
Senior Secured Notes | Minimum | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Coverage Ratio | 3 | |||||||||
Quarterly principal payment, based on annual percentage | 1.25% | |||||||||
Senior Secured Notes | Maximum | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Dividends and/or purchase shares, threshold | $ 75 | |||||||||
Senior Secured Notes | Euro/AUD/CDN | Senior Secured Credit Facility Due March 2026 | ≤ 4.00 to 1.00 and > 3.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2% | |||||||||
Senior Secured Notes | Forecast | Maximum | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Quarterly principal payment, based on annual percentage | 2.50% | |||||||||
Senior Notes | Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated percentage | 4.25% | 4.25% | ||||||||
Revolving Facility | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 600 | |||||||||
Revolving Facility | Senior Secured Notes | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt | $ 72.8 | |||||||||
Amount available for borrowings under the Restated Revolver Facility | 517.8 | |||||||||
Letters of credit outstanding, amount | $ 9.4 | |||||||||
Commitment fee percent | 0.35% | |||||||||
Credit agreement, maturity date | Mar. 31, 2026 | |||||||||
Revolving Facility | Senior Secured Notes | Minimum | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percent | 0.20% | |||||||||
Revolving Facility | Senior Secured Notes | Maximum | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percent | 0.50% | |||||||||
Revolving Facility | Senior Secured Notes | Euro Floor | Senior Secured Credit Facility Due March 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base rate percent | 0% |
Long-term Debt and Short-term_6
Long-term Debt and Short-term Borrowings - Schedule of Maximum Consolidated Leverage Ratio (Details) | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 5 |
March 2021 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 5.25 |
June 2021 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 5.25 |
September 2021 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.75 |
December 2021 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.25 |
March 2022 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.25 |
June 2022 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.25 |
September 2022 and thereafter | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4 |
December 2022 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.50 |
March 2023 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 5 |
June 2023 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 5 |
September 2023 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.75 |
December 2023 | Senior Secured Credit Facility Due May 2024 | Secured Debt | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.25 |
Long-term Debt and Short-term_7
Long-term Debt and Short-term Borrowings - Interest Rates (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | > 4.50 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.50% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | > 4.50 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.50% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | > 4.50 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.50% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 4.50 to 1.00 and > 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.375% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 4.50 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 | 2.25% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 4.50 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 | 1.25% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 4.00 to 1.00 and > 3.50 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.35% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 3.50 to 1.00 and > 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.30% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 3.50 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 3.50 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 3.00 to 1.00 and > 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.25% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn Fee | 0.20% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 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% |
Secured Debt | Senior Secured Credit Facility Due March 2026 | ≤ 2.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.25% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 29.5 | $ 29.7 | $ 28.3 |
Sublease income | (2.4) | (1.9) | (1.2) |
Total lease cost | $ 27.1 | $ 27.8 | $ 27.1 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 30.5 | $ 31.1 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 11.4 | $ 41.1 |
Weighted average remaining lease term, operating leases (in years) | 6 years 3 months 18 days | |
Weighted average discount rate, operating leases (as a percentage) | 4.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments, Net of Sub-Lease Income (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 25.4 |
2024 | 19.6 |
2025 | 16.3 |
2026 | 13 |
2027 | 8.8 |
Thereafter | 29.1 |
Total minimum lease payments | 112.2 |
Less imputed interest | 15.8 |
Future minimum payments for leases, net of sublease rental income and imputed interest | $ 96.4 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Change in plan assets | ||||
Employer contributions | $ 16.3 | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Pension and post-retirement benefit obligations | 155.5 | $ 222.3 | ||
Pension | U.S. | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 212.5 | 226.1 | ||
Service cost | 0 | 0.5 | $ 1.6 | |
Interest cost | 4.9 | 4.5 | 5.9 | |
Actuarial gain | (45.2) | (3.1) | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (9.9) | (15.5) | ||
Settlement | 0 | 0 | ||
Termination benefits | 0 | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | ||
Acquisitions | 0 | 0 | ||
Projected benefit obligation at end of year | 162.3 | 212.5 | 226.1 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 180.9 | 170.6 | ||
Actual return on plan assets | (33.3) | 18.6 | ||
Employer contributions | 2.5 | 7.2 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (9.9) | (15.5) | ||
Settlement | 0 | 0 | ||
Foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets at end of year | 140.2 | 180.9 | 170.6 | |
Funded status (Fair value of plan assets less PBO) | (22.1) | (31.6) | ||
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 | 22.1 | 31.6 | ||
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 91.3 | 96.1 | ||
Unrecognized prior service cost (credit) | 0 | 0 | ||
Pension | International | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 673.6 | 748.7 | ||
Service cost | 1 | 1.5 | 1.5 | |
Interest cost | 9.6 | 6.3 | 9.7 | |
Actuarial gain | (158.7) | (33.2) | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (25.7) | (28.4) | ||
Settlement | 0 | (0.3) | ||
Termination benefits | 0.8 | [1] | 0 | 0 |
Foreign exchange rate changes | (59.6) | (21.4) | ||
Acquisitions | 0 | 0.3 | ||
Projected benefit obligation at end of year | 441.1 | 673.6 | 748.7 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 481.7 | 484.8 | ||
Actual return on plan assets | (117.2) | 16.5 | ||
Employer contributions | 13.4 | 15 | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (25.7) | (28.4) | ||
Settlement | 0 | (0.3) | ||
Foreign exchange rate changes | (45.9) | (6) | ||
Fair value of plan assets at end of year | 306.4 | 481.7 | 484.8 | |
Funded status (Fair value of plan assets less PBO) | (134.7) | (191.9) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 2.8 | 2 | ||
Other current liabilities | 6.9 | 7.1 | ||
Pension and post-retirement benefit obligations | 130.6 | 186.8 | ||
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 120.6 | 166.5 | ||
Unrecognized prior service cost (credit) | 5.2 | 6.1 | ||
Post-retirement | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 4.3 | 5.1 | ||
Service cost | 0 | 0 | 0 | |
Interest cost | 0.1 | 0.1 | 0.1 | |
Actuarial gain | (0.6) | (0.5) | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (0.4) | (0.5) | ||
Settlement | 0 | 0 | ||
Termination benefits | 0 | 0 | 0 | |
Foreign exchange rate changes | (0.2) | 0.1 | ||
Acquisitions | 0 | 0 | ||
Projected benefit obligation at end of year | 3.2 | 4.3 | 5.1 | |
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 | 0.5 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (0.4) | (0.5) | ||
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) | (3.2) | (4.3) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0 | 0 | ||
Other current liabilities | 0.4 | 0.4 | ||
Pension and post-retirement benefit obligations | 2.8 | 3.9 | ||
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | (4.2) | (4.3) | ||
Unrecognized prior service cost (credit) | $ 0 | $ (0.1) | ||
[1] Special termination benefit of $ 0.8 million due to the plan wind up of the ACCO Brands Canada Salaried and Hourly plans effective July 1, 2022. The plan wind up is considered an irrevocable event that triggers special accounting, specifically a one-time special termination benefit. The plan wind up is expected to be completed in 2024. |
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, 2022 | Dec. 31, 2021 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 162.3 | $ 212.5 |
Fair value of plan assets | 140.2 | 180.9 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 406.1 | 616.7 |
Fair value of plan assets | $ 273.7 | $ 437.8 |
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, 2022 | Dec. 31, 2021 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 162.3 | $ 212.5 |
Fair value of plan assets | 140.2 | 180.9 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 411.3 | 631.7 |
Fair value of plan assets | $ 273.7 | $ 437.8 |
Pension and Other Retiree Ben_6
Pension and Other Retiree Benefits - Net Periodic Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | |||||
Pension | U.S. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 0 | $ 0.5 | $ 1.6 | |||
Interest cost | 4.9 | 4.5 | 5.9 | |||
Expected return on plan assets | (10.9) | (11.4) | (11.4) | |||
Amortization of net loss (gain) | 3.7 | 3.6 | 3.2 | |||
Amortization of prior service cost | 0 | 0.1 | 0.4 | |||
Special termination benefit | 0 | 0 | 0 | |||
Curtailment loss | 0 | 1.4 | [1] | 0 | ||
Settlement loss | 0 | 0 | ||||
Net periodic benefit cost (income) cost | [2] | (2.3) | (1.3) | (0.3) | ||
Pension | International | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 1 | 1.5 | 1.5 | |||
Interest cost | 9.6 | 6.3 | 9.7 | |||
Expected return on plan assets | (17.5) | (19.3) | (18.6) | |||
Amortization of net loss (gain) | 5 | 7.1 | 4.9 | |||
Amortization of prior service cost | 0.3 | 0.3 | 0.3 | |||
Special termination benefit | 0.8 | [3] | 0 | 0 | ||
Curtailment loss | 0 | 0 | 0 | |||
Settlement loss | 0 | 0 | 0.4 | |||
Net periodic benefit cost (income) cost | [2] | (0.8) | (4.1) | (1.8) | ||
Post-retirement | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 0 | 0 | 0 | |||
Interest cost | 0.1 | 0.1 | 0.1 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Amortization of net loss (gain) | (0.5) | (0.5) | (0.5) | |||
Amortization of prior service cost | 0 | 0 | 0 | |||
Special termination benefit | 0 | 0 | 0 | |||
Curtailment loss | 0 | 0 | 0 | |||
Settlement loss | 0 | 0 | 0 | |||
Net periodic benefit cost (income) cost | [2] | $ (0.4) | $ (0.4) | $ (0.4) | ||
[1] Curtailment loss of $ 1.4 million due to the pension benefit freeze for the Sidney group under the ACCO Brands Corporation Pension Plan. The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income. Special termination benefit of $ 0.8 million due to the plan wind up of the ACCO Brands Canada Salaried and Hourly plans effective July 1, 2022. The plan wind up is considered an irrevocable event that triggers special accounting, specifically a one-time special termination benefit. The plan wind up is expected to be completed in 2024. |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | $ 1 | $ 10.3 | $ (10.6) |
Amortization of actuarial (loss) gain | (3.7) | (3.6) | (3.2) |
Amortization of prior service cost | 1.5 | 0.4 | |
Foreign exchange rate changes | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (4.7) | (15.4) | 7 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | (7) | (16.7) | 6.7 |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 23.9 | 30.5 | (36.5) |
Amortization of actuarial (loss) gain | (5.1) | (7.1) | (5.3) |
Amortization of prior service cost | 0.3 | 0.3 | 0.3 |
Foreign exchange rate changes | (21.5) | (4.1) | 8.5 |
Total recognized in other comprehensive income (loss) | (50.8) | (42) | 39.4 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | (51.6) | (46.1) | 37.6 |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 0.6 | 0.5 | 0 |
Amortization of actuarial (loss) gain | 0.5 | 0.5 | 0.5 |
Amortization of prior service cost | 0 | 0 | 0 |
Foreign exchange rate changes | 0.2 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 0.1 | 0 | 0.5 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | $ (0.3) | $ (0.4) | $ 0.1 |
Pension and Other Retiree Ben_8
Pension and Other Retiree Benefits - Weighted Average Assumptions Used in Calculating Benefit Obligation (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.10% | 2.90% | 2.60% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.50% | 1.80% | 1.20% |
Rate of compensation increase | 3% | 3% | 2.90% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.80% | 2.40% | 1.90% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 3.10% | 3.20% |
Expected long-term rate of return | 6.50% | 6.80% | 7% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.80% | 1% | 1.60% |
Expected long-term rate of return | 4% | 4% | 4.20% |
Rate of compensation increase | 3% | 2.70% | 2.90% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.40% | 2.20% | 2.70% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 6% | 6% | 6% |
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 5% | 5% | 4% |
Year that the rate reaches the ultimate trend rate | 2030 | 2030 | 2028 |
Pension and Other Retiree Be_11
Pension and Other Retiree Benefits - Weighted Average Asset Allocation (Details) - Pension | Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100% | 100% | |
U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 35% | 63% | |
U.S. | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 58% | 28% | |
U.S. | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 4% | 5% | |
U.S. | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 3% | 4% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100% | 100% | |
International | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 9% | 15% | |
International | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 56% | 59% | |
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 3% | 4% | |
International | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 32% | 22% |
[1] Multi-strategy hedge funds, commodity linked funds, private equity funds, 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 140.2 | $ 180.9 | $ 170.6 |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 139.1 | 180 | |
U.S. | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.1 | 0.9 | |
U.S. | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 140.2 | 180.9 | |
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 | 105.3 | 104.9 | |
U.S. | Mutual funds | Significant Other Observable 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 | 105.3 | 104.9 | |
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 | 33.8 | 75.1 | |
U.S. | Exchange traded funds | Significant Other Observable 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 | 33.8 | 75.1 | |
U.S. | Common collective trust 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 | |
U.S. | Common collective trust funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.1 | 0.9 | |
U.S. | Common collective trust funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. | Common collective trust funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1.1 | 0.9 | |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 306.4 | 481.7 | $ 484.8 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 41.8 | 81.4 | |
International | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 208.2 | 335.3 | |
International | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
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 | 0.1 | ||
International | Exchange traded funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
International | Exchange traded funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 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 | 0.1 | ||
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 | 16.6 | 10.2 | |
International | Cash and cash equivalents | Significant Other Observable 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 | 16.6 | 10.2 | |
International | Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 25.2 | 71.1 | |
International | Equity securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Equity securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 25.2 | 71.1 | |
International | 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 | Corporate debt securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 61 | 99.6 | |
International | Corporate debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Corporate debt securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 61 | 99.6 | |
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 | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 32.1 | 39 | |
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 | 32.1 | 39 | |
International | Multi-strategy hedge funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 30.2 | 46.1 | |
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 | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 3.8 | 3.8 | |
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 | 3.8 | 3.8 | |
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 | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 2.2 | 6.7 | |
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 | 2.2 | 6.7 | |
International | 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 | Government debt securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 109.1 | 186.2 | |
International | Government debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Government debt securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 109.1 | 186.2 | |
International | Real estate | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 6 | 11.3 | |
International | Private equity | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 20.2 | $ 7.6 |
Pension and Other Retiree Be_13
Pension and Other Retiree Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 38.7 |
2024 | 37.6 |
2025 | 38.7 |
2026 | 38.9 |
2027 | 39.1 |
Years 2028 - 2032 | 205 |
Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 0.4 |
2024 | 0.4 |
2025 | 0.4 |
2026 | 0.3 |
2027 | 0.3 |
Years 2028 - 2032 | $ 1.3 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2021 | Dec. 31, 2020 | |
Multiemployer Plan, Pension, Significant, Certified Zone Status [Fixed List] | Red | Red | |
FIP/RP Status | Implemented | ||
Multiemployer Plan, Pension, Significant, Employer Contribution, Cost | $ 0.1 | $ 0.1 | $ 0.1 |
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, 2022 USD ($) Yr | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of post-retirement plans not frozen to new participants | 1 | ||
Pension and post-retirement benefit obligations | $ 155.5 | $ 222.3 | |
Employer contributions | 16.3 | ||
Expected contributions to defined benefit plans for 2022 | 16.6 | ||
Costs related to defined contribution plans | 13.2 | 12.7 | $ 6.8 |
Esselte Leitz Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded Pension Plan liability | $ 103 | 151.7 | |
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 | $ 598.1 | 870.7 | |
Pension Plan | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and post-retirement benefit obligations | $ 22.1 | $ 31.6 | |
Weighted average asset allocations | 100% | 100% | |
Employer contributions | $ 2.5 | $ 7.2 | |
Pension Plan | U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 35% | 63% | |
Pension Plan | U.S. | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 58% | 28% | |
Pension Plan | U.S. | Alternate assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 7% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 7,250,000 | ||
Capitalization of stock based compensation expense | $ 0 | ||
Proceeds from stock options exercised | $ 4,300,000 | $ 3,100,000 | $ 4,400,000 |
Granted (in shares) | 1,170,884 | ||
Vested and distributed (in shares) | (350,656) | (377,073) | |
Share-based compensation expense, shares that vests on grant date | $ 9,500,000 | $ 15,200,000 | $ 6,500,000 |
Shares outstanding (in shares) | 673,169 | 1,758,220 | |
Weighted average grant date fair value (in dollar per share) | $ 8.88 | ||
Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period | 7 years | 10 years | |
Award vesting period | 3 years | ||
Proceeds from stock options exercised | $ 4,300,000 | $ 3,100,000 | $ 4,400,000 |
Options exercised | 500,000 | 1,000,000 | 1,600,000 |
Fair value of options vested during the period | 3,100,000 | 2,700,000 | 2,700,000 |
Unrecognized compensation expense | $ 3,600,000 | ||
Weighted average years expense to be recognized over | 1 year 10 months 24 days | ||
Share-based compensation expense, shares that vests on grant date | $ 3,700,000 | $ 3,600,000 | $ 2,700,000 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Unrecognized compensation expense | $ 3,900,000 | ||
Weighted average years expense to be recognized over | 1 year 10 months 24 days | ||
Granted (in shares) | 695,057 | 362,750 | 724,319 |
Vested and distributed (in shares) | (489,964) | ||
Share-based compensation expense, shares that vests on grant date | $ 4,400,000 | $ 5,300,000 | $ 5,200,000 |
Shares outstanding (in shares) | 2,016,120 | 1,906,891 | |
Weighted average grant date fair value (in dollar per share) | $ 8.15 | $ 8.78 | $ 7.92 |
Fair value of stock awards vested | $ 5,100,000 | $ 4,200,000 | $ 4,700,000 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 900,000 | ||
Weighted average years expense to be recognized over | 1 year | ||
Granted (in shares) | 1,667,012 | 939,529 | |
Vested and distributed (in shares) | (350,656) | 0 | |
Share-based compensation expense, shares that vests on grant date | $ 1,400,000 | $ 6,300,000 | $ (1,400,000) |
Weighted average grant date fair value (in dollar per share) | $ 8.88 | $ 8.42 | $ 8.25 |
Fair value of stock awards vested | $ 3,000,000 | $ 0 | $ 4,800,000 |
Shares called upon vested (in shares) | 1 | ||
Minimum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage awarded | 0% | ||
Maximum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Percentage awarded | 200% | ||
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 | $ 1,200,000 | $ 700,000 | $ 900,000 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-Based Compensation Expense by Line Item (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (9.5) | $ (15.2) | $ (6.5) |
Income tax benefit | (2.2) | (3.6) | (1.6) |
Net loss | (7.3) | (11.6) | (4.9) |
SG&A Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (9.5) | $ (15.2) | $ (6.5) |
Stock-Based Compensation - Sh_2
Stock-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 9.5 | $ 15.2 | $ 6.5 |
Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.7 | 3.6 | 2.7 |
RSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4.4 | 5.3 | 5.2 |
PSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.4 | $ 6.3 | $ (1.4) |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Stock option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 3.6 |
Weighted average years expense to be recognized over | 1 year 10 months 24 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 3.9 |
Weighted average years expense to be recognized over | 1 year 10 months 24 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 0.9 |
Weighted average years expense to be recognized over | 1 year |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected lives | 6 years | 6 years | 6 years |
Weighted average risk-free interest rate | 1.89% | 0.93% | 0.81% |
Weighted average expected volatility | 41.70% | 41.30% | 36% |
Expected dividend yield | 3.60% | 3.07% | 3.16% |
Weighted average grant date fair value ( in dollars per share) | $ 2.43 | $ 2.45 | $ 2.03 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Stock option $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number Outstanding [Roll Forward] | |
Outstanding at December 31, 2021 (in shares) | shares | 5,860,567 |
Granted (in shares) | shares | 1,793,833 |
Exercised (in shares) | shares | (573,860) |
Forfeited (in shares) | shares | (351,925) |
Outstanding at December 31, 2022 (in shares) | shares | 6,728,615 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2021 (in dollar per share) | $ / shares | $ 9.34 |
Granted (in dollar per share) | $ / shares | 8.35 |
Exercised (in dollar per share) | $ / shares | 7.51 |
Forfeited (in dollar per share) | $ / shares | 8.59 |
Outstanding at December 31, 2022 (in dollar per share) | $ / shares | $ 9.27 |
Outstanding at December 31, 2022, Weighted Average Remaining Contractual Term | 6 years 1 month 6 days |
Outstanding at December 31, 2022, Aggregate Intrinsic Value | $ | $ 0 |
Exercisable shares at December 31, 2022 (in shares) | shares | 3,643,352 |
Exercisable shares at December 31, 2022, Weighted Average Exercise Price (in dollar per share) | $ / shares | $ 10.04 |
Exercisable shares at December 31, 2022, Weighted Average Contractual Term | 4 years 2 months 12 days |
Exercisable shares at December 31, 2022, Aggregate Intrinsic Value | $ | $ 0 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Units Rollforward (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2021 (in shares) | 1,758,220 | |||
Granted (in shares) | 1,170,884 | |||
Vested and distributed (in shares) | (350,656) | (377,073) | ||
Forfeited (in shares) | (161,938) | |||
Other - decrease due to performance of PSUs (in shares) | (1,743,341) | |||
Outstanding at December 31, 2022(in shares) | 673,169 | 1,758,220 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2021, Weighted Average Grant Date Fair Value (in dollar per share) | $ 8.42 | |||
Granted, Weighted Average Grant Date Fair Value (in dollar per share) | 8.88 | |||
Vested and Distributed, Weighted Average Grant Date Fair Value (in dollar per share) | 8.42 | |||
Forfeited, Weighted Average Grant Date Fair Value (in dollar per share) | 8.62 | |||
Other decrease due to performance of PSU's, Weighted Average Grant Date Fair Value (in dollar per share) | 8.71 | |||
Outstanding at December 31, 2022, Weighted Average Grant Date Fair Value (in dollar per share) | $ 8.42 | $ 8.42 | ||
RSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2021 (in shares) | 1,906,891 | |||
Granted (in shares) | 695,057 | 362,750 | 724,319 | |
Vested and distributed (in shares) | (489,964) | |||
Forfeited (in shares) | (95,864) | |||
Outstanding at December 31, 2022(in shares) | 2,016,120 | 1,906,891 | ||
Vested and deferred RSUs related to deferred compensation for non-employee directors (in shares) | [1] | 574,409 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2021, Weighted Average Grant Date Fair Value (in dollar per share) | $ 8.64 | |||
Granted, Weighted Average Grant Date Fair Value (in dollar per share) | 8.15 | $ 8.78 | $ 7.92 | |
Vested and Distributed, Weighted Average Grant Date Fair Value (in dollar per share) | 8.86 | |||
Forfeited, Weighted Average Grant Date Fair Value (in dollar per share) | 8.25 | |||
Outstanding at December 31, 2022, Weighted Average Grant Date Fair Value (in dollar per share) | 8.43 | $ 8.64 | ||
Weighted Average Grant Date Fair Value of Vested and Deferred RSUs (in dollar per share) | [1] | $ 8.84 | ||
PSUs | ||||
Stock Units [Roll Forward] | ||||
Granted (in shares) | 1,667,012 | 939,529 | ||
Vested and distributed (in shares) | (350,656) | 0 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted, Weighted Average Grant Date Fair Value (in dollar per share) | $ 8.88 | $ 8.42 | $ 8.25 | |
[1] Included in outstanding at December 31, 2022 . Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 76.8 | $ 67.5 |
Work in process | 4.4 | 4.1 |
Finished goods | 314 | 356.4 |
Total inventories | $ 395.2 | $ 428 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 589.2 | $ 656.4 | ||
Less: accumulated depreciation | (404.1) | (441.8) | ||
Net property, plant and equipment | [1] | 185.1 | 214.6 | |
Computer software included in net property, plant and equipment | 52.5 | 63.4 | ||
Amortization of software costs | 13.9 | 12.9 | $ 11.4 | |
Land and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 20.6 | 21.5 | ||
Buildings and improvements to leaseholds | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 125.3 | 140.2 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 439.5 | 486.6 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 3.8 | $ 8.1 | ||
[1] Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2023 | Aug. 31, 2022 USD ($) Reportingunit | May 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Reportingunit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 17, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Number of reporting units | Reportingunit | 3 | 3 | ||||||
Goodwill, accumulated impairment losses | $ 0 | |||||||
Goodwill impairment | $ 98,700,000 | $ 0 | $ 98,700,000 | $ 0 | $ 0 | |||
Amortization of intangibles | $ 41,500,000 | $ 46,300,000 | $ 32,800,000 | |||||
Impairment of indefinite-lived trade names | $ 0 | $ 0 | ||||||
Percentage of excess fair value over carrying value | 10% | |||||||
Maximum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Percentage of excess fair value over carrying value | 50% | |||||||
Leitz Indefinite-lived Trade Name | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of indefinite-lived trade names | 0 | |||||||
Leitz Indefinite-lived Trade Name | Maximum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, accumulated impairment losses | $ 0 | |||||||
Percentage of excess fair value over carrying value | 5% | |||||||
Trade names | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, useful life | 15 years | |||||||
Trade names | Subsequent Event | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, useful life | 30 years | |||||||
Customer and contractual relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, useful life | 15 years | |||||||
Vendor relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, useful life | 15 years | |||||||
Developed technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, useful life | 5 years | |||||||
PowerA | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Identifiable intangibles acquired | $ 235,400,000 | |||||||
PowerA | Trade names | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Identifiable intangibles acquired | 21,600,000 | |||||||
Intangible assets, useful life | 15 years | |||||||
PowerA | Customer and contractual relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Identifiable intangibles acquired | 128,600,000 | |||||||
Intangible assets, useful life | 15 years | |||||||
PowerA | Vendor relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Identifiable intangibles acquired | 82,400,000 | |||||||
Intangible assets, useful life | 15 years | |||||||
PowerA | Developed technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Identifiable intangibles acquired | $ 2,800,000 | |||||||
Intangible assets, useful life | 5 years |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Summary of Changes in Net Carrying Amount Goodwill By Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Goodwill [Roll Forward] | ||||||
Beginning balance | $ 802,500,000 | $ 827,400,000 | ||||
Acquisitions | [1] | (12,500,000) | ||||
Goodwill impairment | $ (98,700,000) | $ 0 | (98,700,000) | 0 | $ 0 | |
Foreign currency translation | (32,300,000) | (12,400,000) | ||||
Ending balance | 671,500,000 | 802,500,000 | 827,400,000 | |||
ACCO Brands North America | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 446,700,000 | 461,200,000 | ||||
Acquisitions | [1] | (14,500,000) | ||||
Goodwill impairment | (98,700,000) | (98,700,000) | ||||
Foreign currency translation | 0 | 0 | ||||
Ending balance | 348,000,000 | 446,700,000 | 461,200,000 | |||
ACCO Brands EMEA | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 178,600,000 | 188,200,000 | ||||
Acquisitions | [1] | 2,000,000 | ||||
Goodwill impairment | 0 | 0 | ||||
Foreign currency translation | (33,000,000) | (11,600,000) | ||||
Ending balance | 145,600,000 | 178,600,000 | 188,200,000 | |||
ACCO Brands International | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 177,200,000 | 178,000,000 | ||||
Acquisitions | 0 | |||||
Goodwill impairment | $ 0 | 0 | ||||
Foreign currency translation | 700,000 | (800,000) | ||||
Ending balance | $ 177,900,000 | $ 177,200,000 | $ 178,000,000 | |||
[1] Goodwill has been recorded on our Consolidated Balance Sheet related to the Franken acquisition, which is part of our EMEA segment, and represents the excess of the cost of the Franken acquisition when compared to the fair value estimate of the net assets acquired on April 1, 2021 (the date of the Franken acquisition). 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) and includes a working capital adjustment of $ 18.2 million recorded in the first quarter of 2021 as a reduction to the purchase price, partially offset by purchase accounting adjustments of $ 3.7 million. See "Note 3 . Acquisitions" for additional details. |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Summary of Changes in Net Carrying Amount Goodwill By Segment (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 17, 2020 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Working capital adjustment | $ 18.2 | |
Purchase accounting adjustments | $ 3.7 |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Schedule of Acquired Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 17, 2020 | |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 15 years | |
Customer and contractual relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 15 years | |
Vendor relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 15 years | |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years | |
PowerA | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles acquired | $ 235.4 | |
PowerA | Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles acquired | 21.6 | |
Intangible assets, useful life | 15 years | |
PowerA | Customer and contractual relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles acquired | 128.6 | |
Intangible assets, useful life | 15 years | |
PowerA | Vendor relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles acquired | 82.4 | |
Intangible assets, useful life | 15 years | |
PowerA | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles acquired | $ 2.8 | |
Intangible assets, useful life | 5 years |
Goodwill and Identifiable Int_7
Goodwill and Identifiable Intangible Assets - Summary of Gross Carrying Value and Accumulated Amortization By Class of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | $ 817.1 | $ 830.7 | |
Amortizable intangible assets, Accumulated Amortization | (336.2) | (301.6) | |
Amortizable intangible assets, Net Book Value | 480.9 | 529.1 | |
Total identifiable intangibles | |||
Total identifiable intangible assets, Gross Carrying Amounts | 1,227.7 | 1,248.3 | |
Total identifiable intangibles, Accumulated Amortization | (380.7) | (346.1) | |
Total identifiable intangibles, Net Book Value | 847 | 902.2 | |
Trade names | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 369.7 | 373.2 | |
Amortizable intangible assets, Accumulated Amortization | (123) | (110.5) | |
Amortizable intangible assets, Net Book Value | 246.7 | 262.7 | |
Customer and contractual relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 356.9 | 366.5 | |
Amortizable intangible assets, Accumulated Amortization | (198.2) | (182.4) | |
Amortizable intangible assets, Net Book Value | 158.7 | 184.1 | |
Vendor relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 82.4 | 82.4 | |
Amortizable intangible assets, Accumulated Amortization | (11.2) | (5.7) | |
Amortizable intangible assets, Net Book Value | 71.2 | 76.7 | |
Patents | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 8.1 | 8.6 | |
Amortizable intangible assets, Accumulated Amortization | (3.8) | (3) | |
Amortizable intangible assets, Net Book Value | 4.3 | 5.6 | |
Trade Names | |||
Indefinite-lived intangible assets: | |||
Indefinite-lived intangible assets, Gross Carrying Amount | [1] | 410.6 | 417.6 |
Indefinite-lived intangible asset, Accumulated Amortization | [1] | (44.5) | (44.5) |
Indefinite-lived intangible assets, Net Book Value | [1] | $ 366.1 | $ 373.1 |
[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_8
Goodwill and Identifiable Intangible Assets - Amortization Expense and Estimated Future Amortization (Details) $ in Millions | Dec. 31, 2022 USD ($) | [1] |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Estimated amortization expense, 2023 | $ 43.3 | |
Estimated amortization expense, 2024 | 41.7 | |
Estimated amortization expense, 2025 | 40.1 | |
Estimated amortization expense, 2026 | 38 | |
Estimated amortization expense, 2027 | $ 35.6 | |
[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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of period | $ 4.5 | $ 9.3 | $ 11.8 | ||
Provision | 9.6 | 6 | 10.9 | ||
Cash expenditures | (5.3) | (11) | (12.3) | ||
Non-cash Items/ Currency Change | (0.1) | 0.2 | (1.1) | ||
Balance at end of period | 8.7 | 4.5 | 9.3 | ||
Employee termination costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of period | 3.4 | [1] | 8.1 | 10.7 | |
Provision | 9.4 | [1] | 5.2 | 8.5 | |
Cash expenditures | (4) | [1] | (9.7) | (11.1) | |
Non-cash Items/ Currency Change | (0.1) | [1] | (0.2) | ||
Balance at end of period | $ 8.7 | [1] | 3.4 | [1] | 8.1 |
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 | $ 1.1 | 1 | 0.6 | ||
Provision | (0.2) | 0.7 | 1.5 | ||
Cash expenditures | (0.9) | (1.1) | (0.7) | ||
Non-cash Items/ Currency Change | 0 | 0.5 | (0.4) | ||
Balance at end of period | 0 | 1.1 | 1 | ||
Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of period | 0 | 0.2 | 0.5 | ||
Provision | 0.4 | 0.1 | 0.9 | ||
Cash expenditures | (0.4) | (0.2) | (0.5) | ||
Non-cash Items/ Currency Change | 0 | (0.1) | (0.7) | ||
Balance at end of period | 0 | 0 | 0.2 | ||
ACCO Brands North America | |||||
Restructuring Reserve [Roll Forward] | |||||
Provision | 5.3 | 4.4 | 7.6 | ||
ACCO Brands EMEA | |||||
Restructuring Reserve [Roll Forward] | |||||
Provision | $ 3.4 | $ 0.5 | $ 0.6 | ||
[1] We expect the remaining $ 8.7 million employee termination costs to be substantially paid within the next twelve months . |
Restructuring (Restructuring _2
Restructuring (Restructuring Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 9.6 | $ 6 | $ 10.9 | |
ACCO Brands North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5.3 | 4.4 | 7.6 | |
ACCO Brands EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3.4 | 0.5 | 0.6 | |
ACCO Brands International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.7 | 1.1 | 2.6 | |
Operating Segments | ACCO Brands North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4.4 | 7.6 | ||
Operating Segments | ACCO Brands EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.5 | 0.6 | ||
Operating Segments | ACCO Brands International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.1 | 2.6 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.2 | 0.1 | ||
Employee termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9.4 | [1] | 5.2 | 8.5 |
Termination of lease agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (0.2) | 0.7 | 1.5 | |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.4 | $ 0.1 | $ 0.9 | |
[1] We expect the remaining $ 8.7 million employee termination costs to be substantially paid within the next twelve months . |
Income Taxes - Components of In
Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ (80.1) | $ (5.6) | $ 1.7 |
Foreign operations | 95 | 117 | 76.9 |
Income before income tax | $ 14.9 | $ 111.4 | $ 78.6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at U.S. statutory rate; 21% | $ 3.1 | $ 23.4 | $ 16.5 |
Unrecognized tax benefits | (7.6) | (1.9) | 0 |
Impact on final GILTI regulations for 2018 and 2019 | 0 | (1) | (2.7) |
Statutory tax rate changes | 0.6 | (6.8) | (2) |
Statutory tax law changes | 0 | (1.2) | 0 |
State, local and other tax, net of federal benefit | 3.6 | 2 | 0.1 |
Impact from foreign inclusions | 4 | 3.2 | 1.3 |
U.S. effect of foreign dividends and withholding taxes | 1.8 | 1.2 | 1 |
Foreign income taxed at a higher effective rate | 1.1 | 1.5 | 1.4 |
Net Brazilian Tax Assessments impact | 1.9 | 0.5 | 1.5 |
(Decrease) increase in valuation allowance | 3.4 | (11.4) | 2.2 |
General business credit | (1.9) | (2.1) | 0 |
Excess benefit from stock-based compensation | (1.1) | (0.5) | (0.9) |
Impairment of non-deductible goodwill | 20.7 | 0 | 0 |
Impact of legal entity rationalization | (4.1) | 0 | 0 |
Other increase (decrease) | 0.4 | 1.6 | (3.6) |
Total income tax expense | $ 28.1 | $ 9.5 | $ 16.6 |
Effective income tax rate | 188.60% | 8.50% | 21.10% |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense (benefit) | |||
Federal and other | $ 1.8 | $ 2 | $ (0.1) |
Foreign | 25 | 28.5 | 24.3 |
Total current income tax expense | 26.8 | 30.5 | 24.2 |
Deferred expense (benefit) | |||
Federal and other | 6.8 | (16.5) | (2) |
Foreign | (5.5) | (4.5) | (5.6) |
Total deferred income tax (benefit) expense | 1.3 | (21) | (7.6) |
Total income tax expense | $ 28.1 | $ 9.5 | $ 16.6 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Compensation and benefits | $ 15.5 | $ 14.4 |
Pension | 23.2 | 41.2 |
Inventory | 10.1 | 10.8 |
Other reserves | 21.7 | 22.3 |
Accounts receivable | 9.7 | 9.7 |
Foreign tax credit carryforwards | 11.1 | 17.9 |
Net operating loss carryforwards | 89.2 | 96.5 |
Interest expense carryforwards | 17 | 15.2 |
Other | 7.9 | 4.5 |
Gross deferred income tax assets | 205.4 | 232.5 |
Valuation allowance | (51.9) | (52.4) |
Net deferred tax assets | 153.5 | 180.1 |
Deferred tax liabilities | ||
Depreciation | (8.9) | (13.2) |
Unremitted non-U.S. earnings accrual | (5.5) | (4.8) |
Identifiable intangibles | (182.9) | (191.2) |
Other | (0.6) | (0.2) |
Gross deferred tax liabilities | (197.9) | (209.4) |
Net deferred tax liabilities | $ (44.4) | $ (29.3) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 43.3 | $ 45.1 | $ 50.5 |
Additions for tax positions of prior years | 2.5 | 4.5 | 2.9 |
Reductions for tax positions of prior years | (8.3) | (4.2) | (1.1) |
Acquisitions | 0 | 0 | 1.4 |
Increase resulting from foreign currency translation | 1.6 | 0 | 0 |
Decrease resulting from foreign currency translation | 0 | (2.1) | (8.6) |
Balance at end of year | $ 39.1 | $ 43.3 | $ 45.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | |||||||
U.S. statutory rate | 21% | 21% | 21% | ||||
Income tax expense | $ 28,100,000 | $ 9,500,000 | $ 16,600,000 | ||||
Income before income tax | $ 14,900,000 | $ 111,400,000 | $ 78,600,000 | ||||
Effective tax rate | 188.60% | 8.50% | 21.10% | ||||
Amended return expected benefit | $ 2,100,000 | $ 1,400,000 | |||||
Valuation allowance | $ 51,900,000 | $ 52,400,000 | |||||
Increase (Decrease) in valuation allowance | 500,000 | ||||||
Operating loss carryforwards | 13,300,000 | ||||||
Federal general business credit carryforwards | 0 | ||||||
Operating loss carryforwards, valuation allowance | 75,900,000 | ||||||
Deferred taxes for undistributed earnings of foreign subsidiaries | 5,500,000 | ||||||
Undistributed earnings of foreign subsidiaries not permanently reinvested | 216,000,000 | ||||||
Undistributed earnings of foreign subsidiaries | 299,000,000 | ||||||
Foreign tax credit carryforwards | 11,100,000 | 17,900,000 | |||||
Unrecognized tax benefits | 39,100,000 | 43,300,000 | $ 45,100,000 | $ 50,500,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 25,400,000 | ||||||
Excess benefit from stock-based compensation | (1,100,000) | (500,000) | (900,000) | ||||
Additions for tax positions of prior years | 2,500,000 | 4,500,000 | 2,900,000 | ||||
Minimum | |||||||
Income Tax Examination [Line Items] | |||||||
Reasonably possible change in unrecognized tax benefit | 2,000,000 | ||||||
Maximum | |||||||
Income Tax Examination [Line Items] | |||||||
Reasonably possible change in unrecognized tax benefit | 3,000,000 | ||||||
Foreign Currency Translation | |||||||
Income Tax Examination [Line Items] | |||||||
Increase (Decrease) in valuation allowance | 3,700,000 | ||||||
Partially Offset | |||||||
Income Tax Examination [Line Items] | |||||||
Increase (Decrease) in valuation allowance | $ 3,200,000 | ||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2018 | ||||||
Foreign Tax Authority | |||||||
Income Tax Examination [Line Items] | |||||||
Operating loss carryforwards | $ 340,400,000 | ||||||
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 | 2017 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||||
Income Tax Examination [Line Items] | |||||||
Standard penalty rate (percent) | 75% | ||||||
Income tax examination, interest expense | $ 1,500,000 | $ 500,000 | $ 300,000 | ||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2015 | ||||||
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 | $ 5,600,000 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2007-2012 | |||||||
Income Tax Examination [Line Items] | |||||||
Unrecognized tax benefits | $ 44,500,000 | ||||||
Potential tax assessment, accrued reserve related to fair value of liabilities acquired | $ 43,300,000 | ||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2010 | Other non-current liabilities | |||||||
Income Tax Examination [Line Items] | |||||||
Unrecognized tax benefits | $ 30,400,000 | ||||||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2017 | ||||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2016 | ||||||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2018 | ||||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | |||||||
Income Tax Examination [Line Items] | |||||||
Open tax year | 2019 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | |||
Common stock outstanding (in shares) | 94,260,926 | 95,817,946 | 94,900,000 |
Common stock repurchases (in shares) | 2,742,589 | 0 | 2,690,292 |
Shares related to tax withholding for share-based compensation (in shares) | 300,000 | 100,000 | 200,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share (in shares) | 9,800,000 | 8,300,000 | 7,100,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Number of Weighted-Average Shares Outstanding (Details) - shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Basic | 95.3 | 95.5 | 94.9 | |
Weighted Average Number of Shares Outstanding, Diluted | [1] | 95.3 | 97.1 | 96.1 |
Stock option | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0.1 | 0.1 | |
Restricted stock units | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 1.5 | 1.1 | |
[1] Due to the net loss during the twelve months ended December 31, 2022, the denominator in the diluted earnings per share calculation does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as it would result in a less dilutive computation. As a result, diluted earnings per share for the twelve months ended December 31, 2022 are the same as basic earnings per share. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - Foreign exchange contracts - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
U.S. dollar equivalent notional value | $ 79.5 | $ 84.2 |
Cash Flow Hedging | Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
U.S. dollar equivalent notional value | $ 108.3 | $ 130.6 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 9.2 | $ 16.5 |
Derivative Liabilities | 7.5 | 10.9 |
Foreign exchange contracts | Derivatives designated as hedging instruments: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3.6 | 5.6 |
Foreign exchange contracts | Derivatives designated as hedging instruments: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.9 | 0.1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.7 | 0.7 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.7 | 0.6 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4.9 | 10.2 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 4.9 | $ 10.2 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ 9.8 | $ 9.1 | $ (4.5) |
Foreign exchange contracts | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Reclassified from AOCI to Income (Effective Portion) | (14) | 1 | 0.5 |
Derivatives not designated as hedging instruments: | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (3.7) | $ (0.1) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward currency contracts, assets | $ 9.2 | $ 16.5 |
Forward currency contracts, liabilities | $ 7.5 | $ 10.9 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 17, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 1,004.9 | $ 1,006.7 | |
PowerA | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Additional earnout (up to) | 55 | $ 55 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of total debt | $ 910 | $ 1,002.3 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Reconciliation of Beginning and Ending Balance of Contingent Consideration (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 17, 2020 | ||
Contingent Consideration [Roll Forward] | |||||
Change in fair value of contingent liability | $ (9) | $ 19 | $ 0 | ||
PowerA | |||||
Contingent Consideration [Roll Forward] | |||||
Additional earnout (up to) | 55 | $ 55 | |||
Begining balance | 36.8 | 18.2 | |||
Change in fair value of contingent liability | (9) | 19 | |||
Other | [1] | (0.8) | |||
Payments | 27 | 0.4 | |||
Ending balance | $ 0 | $ 36.8 | $ 18.2 | ||
[1] During the third quarter, we reached an agreement with the former owner of the Lucid Sound business to settle the Lucid Sound contingent earnout liability which we assumed in the PowerA acquisition. This settlement was paid in the fourth quarter of 2022. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at start of period | $ 864.8 | $ 742.7 |
Other comprehensive income (loss) before reclassifications, net of tax | (1.8) | 18.8 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3) | 9.9 |
Balance at end of period | 810.1 | 864.8 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at start of period | (535.5) | (564.2) |
Balance at end of period | (540.3) | (535.5) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at start of period | 4 | (3.1) |
Other comprehensive income (loss) before reclassifications, net of tax | 7 | 6.3 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (9.9) | 0.8 |
Balance at end of period | 1.1 | 4 |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at start of period | (342.2) | (318.8) |
Other comprehensive income (loss) before reclassifications, net of tax | (37.9) | (23.4) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 |
Balance at end of period | (380.1) | (342.2) |
Unrecognized Pension and Other Post-retirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at start of period | (197.3) | (242.3) |
Other comprehensive income (loss) before reclassifications, net of tax | 29.1 | 35.9 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6.9 | 9.1 |
Balance at end of period | $ (161.3) | $ (197.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | $ 1,395.3 | $ 1,410.4 | $ 1,162.8 | |
Income tax (expense) benefit | (28.1) | (9.5) | (16.6) | |
Net (loss) income | (13.2) | 101.9 | 62 | |
Income before income tax | 14.9 | 111.4 | 78.6 | |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net (loss) income | 3 | (9.9) | (7) | |
Unrecognized Pension and Other Post-retirement Benefit Costs | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax (expense) benefit | 1.6 | 2.9 | 2 | |
Net (loss) income | (6.9) | (9.1) | (6.7) | |
Amortization of actuarial loss | [1] | (8.2) | (10.2) | (8) |
Amortization of prior service cost | [1] | (0.3) | (1.8) | (0.7) |
Income before income tax | (8.5) | (12) | (8.7) | |
Foreign exchange contracts | Derivative Financial Instruments | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | 14 | (1) | (0.5) | |
Income tax (expense) benefit | (4.1) | 0.2 | 0.2 | |
Net (loss) income | $ 9.9 | $ (0.8) | $ (0.3) | |
[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 o
Revenue Recognition - Service or Extended Maintenance Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue associated with outstanding contracts | $ 2.8 | $ 2.4 |
Revenue recognized | $ 2 |
Revenue Recognition - Unearned
Revenue Recognition - Unearned Revenue (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 2.4 |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 0.4 |
Expected timing of satisfaction | 12 months |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,947.6 | $ 2,025.3 | $ 1,655.2 | |
Product and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,899.5 | 1,975.9 | 1,602.5 | |
Product and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 48.1 | 49.4 | 52.7 | |
ACCO Brands North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 998 | 1,042.4 | 822.1 | |
ACCO Brands North America | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 889.2 | 934.2 | 725.3 | |
ACCO Brands North America | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 108.8 | 108.2 | 96.8 | |
ACCO Brands EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 580.3 | 662.9 | 523.9 |
ACCO Brands International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 369.3 | 320 | 309.2 | |
ACCO Brands International | Australia/N.Z. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 125.6 | 140.3 | 128.7 | |
ACCO Brands International | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 197.5 | 125.5 | 138.8 | |
ACCO Brands International | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 46.2 | $ 54.2 | $ 41.7 | |
[1] ACCO Brands EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. |
Information on Business Segme_3
Information on Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 17, 2020 Segment | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 3 | 3 | ||
Sales Revenue, Net | Customer Concentration Risk | Top five customers | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, sales | $ 663.3 | $ 720.9 | $ 554.7 | |
Accounts Receivable | Customer Concentration Risk | Top five customers | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, trade account receivable | $ 125.6 | $ 178 |
Information on Business Segme_4
Information on Business Segments - Net Sales by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,947.6 | $ 2,025.3 | $ 1,655.2 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 998 | 1,042.4 | 822.1 |
ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 580.3 | 662.9 | 523.9 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 369.3 | $ 320 | $ 309.2 |
Information on Business Segme_5
Information on Business Segments - Operating Income by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Operating income | [1] | $ 34.8 | $ 151 | $ 112.4 |
Change in fair value of contingent consideration | 9 | (19) | 0 | |
Interest expense | 45.6 | 46.3 | 38.8 | |
Interest income | (8.3) | (1.9) | (1) | |
Non-operating pension income | (4.5) | (7.9) | (5.6) | |
Other (income) expense, net | (12.9) | 3.1 | 1.6 | |
Income before income tax | 14.9 | 111.4 | 78.6 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 67.3 | 215.2 | 150.2 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | [2] | (41.5) | (45.2) | (37.8) |
Transaction costs | 0.2 | 1.6 | ||
ACCO Brands North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (4.9) | 121.9 | 83 | |
ACCO Brands EMEA | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 21.7 | 61.7 | 51.6 | |
ACCO Brands International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 50.5 | $ 31.6 | $ 15.6 | |
[1] Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; v) less restructuring charges; and vi) less change in the fair value of contingent consideration. Corporate operating loss in 2021 and 2020 includes transaction costs of $ 0.2 million and $ 1.6 million, respectively, primarily for legal and due diligence expenditures associated with the PowerA and Foroni acquisitions. |
Information on Business Segme_6
Information on Business Segments - Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 2,794.7 | $ 3,091.3 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,003.6 | 1,096.6 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,787.2 | 1,993.4 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 3.9 | 1.3 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 459.2 | 535.2 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 236 | 296.3 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 308.4 | $ 265.1 |
[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_7
Information on Business Segments - Identifiable Intangibles and Goodwill by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 2,794.7 | $ 3,091.3 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 2,522.1 | 2,906.5 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 268.7 | 183.5 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 3.9 | 1.3 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1,359.9 | 1,610 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 588.4 | 728.6 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | $ 573.8 | $ 567.9 |
[1] Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs. |
Information on Business Segme_8
Information on Business Segments - Capital Spend by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 17.7 | $ 21.2 | $ 15.3 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 8.8 | 11.2 | 9.3 |
ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 4.7 | 7.3 | 4 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 4.2 | $ 2.7 | $ 2 |
Information on Business Segme_9
Information on Business Segments - Depreciation Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 37.9 | $ 39.4 | $ 37.9 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 20.1 | 20.7 | 19.6 |
ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 12.6 | 13.1 | 12.7 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 5.2 | $ 5.6 | $ 5.6 |
Information on Business Segm_10
Information on Business Segments - Property, Plant and Equipment by Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | [1] | $ 185.1 | $ 214.6 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 84 | 98.7 | |
ACCO Brands North America | U.S. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 82.3 | 96.8 | |
ACCO Brands North America | Canada | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 1.7 | 1.9 | |
ACCO Brands EMEA | EMEA | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 62.9 | 77.4 | |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 38.2 | 38.5 | |
ACCO Brands International | Australia/N.Z. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 10 | 11.3 | |
ACCO Brands International | Latin America | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 26.6 | 25.8 | |
ACCO Brands International | Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 1.6 | $ 1.4 | |
[1] Net property, plant and equipment as of December 31, 2022 and 2021 contained $ 52.5 million and $ 63.4 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Depreciation expense for software was $ 13.9 million , $ 12.9 million and $ 11.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Additional tax credit | $ 1.9 | $ 2.1 | $ 0 |
Income tax expense | 28.1 | 9.5 | $ 16.6 |
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||
Loss Contingencies [Line Items] | |||
Brazil tax credits | 11.1 | $ 10.7 | |
Additional tax credits | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 132.3 |
2024 | 6 |
2025 | 4.6 |
2026 | 0.7 |
2027 | 0.3 |
Thereafter | 0.1 |
Total unconditional purchase commitments | $ 144 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 10 | $ 11.4 | $ 6.7 |
Additions charged to expense | 0.5 | 0.9 | 8 |
Deductions | (1.5) | (1.9) | (3) |
Foreign exchange changes | 0.1 | (0.4) | (0.3) |
Balance at end of year | 9.1 | 10 | 11.4 |
Allowance for Sales Discounts and Other Credits | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 15.2 | 12.2 | 7.7 |
Additions charged to expense | 15.7 | 28.9 | 12.2 |
Deductions | (13.8) | (25.8) | (7.9) |
Foreign exchange changes | (1.5) | (0.1) | 0.2 |
Balance at end of year | 15.6 | 15.2 | 12.2 |
Allowance for Cash Discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 2.4 | 1.9 | 2 |
Additions charged to expense | 22.9 | 22.8 | 19.7 |
Deductions | (23.3) | (22.2) | (19.9) |
Foreign exchange changes | (0.1) | (0.1) | 0.1 |
Balance at end of year | 1.9 | 2.4 | 1.9 |
Warranty Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 5.7 | 6.1 | 5.4 |
Additions charged to expense | 5.3 | 2.9 | 3.5 |
Deductions | (4.3) | (2.9) | (3.1) |
Foreign exchange changes | (0.3) | (0.4) | 0.3 |
Balance at end of year | 6.4 | 5.7 | 6.1 |
Income Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 52.4 | 55.4 | 51.6 |
Additions charged to expense | 3.2 | (2.2) | 2.2 |
Foreign exchange changes | (3.7) | (0.8) | 1.6 |
Balance at end of year | $ 51.9 | $ 52.4 | $ 55.4 |