Supplemental Business Segment Information and Reconciliation (Unaudited)
About Non-GAAP Financial Measures
We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe our non-GAAP financial measures provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance.
Our non-GAAP financial measures exclude certain items that may have a material impact upon our reported financial results such as restructuring charges, the impact of foreign currency exchange rate fluctuations, unusual tax items, goodwill impairment charges, and other non-recurring items that we consider to be outside of our core operations. These measures should not be considered in isolation or as a substitute for, or superior to, the directly comparable GAAP financial measures and should be read in connection with the Company’s financial statements presented in accordance with GAAP.
ACCO Brands Corporation and Subsidiaries
Supplemental Business Segment Information and Reconciliation (Unaudited)
(In millions)
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| 2023 | | 2022 | | Changes |
| | | | | | | | | Adjusted | | | | | | | | | | Adjusted | | | | | | | | | | |
| | | Reported | | | | Adjusted | | Operating | | | | Reported | | | | Adjusted | | Operating | | | | | | Adjusted | | Adjusted | | |
| | | Operating | | | | Operating | | Income | | | | Operating | | | | Operating | | Income | | | | | | Operating | | Operating | | Adjusted |
| Reported | | Income | | Adjusted | | Income | | (Loss) | | Reported | | Income | | Adjusted | | Income | | (Loss) | | Net Sales | | Net Sales | | Income | | Income | | Margin |
| Net Sales | | (Loss) | | Items | | (Loss) - (A) | | Margin - (A) | | Net Sales | | (Loss) | | Items | | (Loss) - (A) | | Margin - (A) | | $ | | % | | (Loss) $ | | (Loss) % | | Points |
Q1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACCO Brands Americas | $230.0 | | $12.3 | | $6.4 | | $18.7 | | 8.1% | | $244.4 | | $15.3 | | $6.6 | | $21.9 | | 9.0% | | $(14.4) | | (5.9)% | | $(3.2) | | (14.6)% | | (90) |
ACCO Brands International | 172.6 | | 9.7 | | 7.8 | | 17.5 | | 10.1% | | 197.2 | | 8.4 | | 4.8 | | 13.2 | | 6.7% | | (24.6) | | (12.5)% | | 4.3 | | 32.6% | | 340 |
Corporate | — | | (11.9) | | — | | (11.9) | | | | — | | (16.9) | | 4.4 | | (12.5) | | | | — | | | | 0.6 | | | | |
Total | $402.6 | | $10.1 | | $14.2 | | $24.3 | | 6.0% | | $441.6 | | $6.8 | | $15.8 | | $22.6 | | 5.1% | | $(39.0) | | (8.8)% | | $1.7 | | 7.5% | | 90 |
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Q2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACCO Brands Americas | $336.4 | | $60.4 | | $6.4 | | $66.8 | | 19.9% | | $345.6 | | $54.4 | | $7.6 | | $62.0 | | 17.9% | | $(9.2) | | (2.7)% | | $4.8 | | 7.7% | | 200 |
ACCO Brands International | 157.2 | | 7.1 | | 4.6 | | 11.7 | | 7.4% | | 175.4 | | 1.1 | | 4.8 | | 5.9 | | 3.4% | | (18.2) | | (10.4)% | | 5.8 | | 98.3% | | 400 |
Corporate | — | | (12.3) | | — | | (12.3) | | | | — | | (0.1) | | (9.7) | | (9.8) | | | | — | | | | (2.5) | | | | |
Total | $493.6 | | $55.2 | | $11.0 | | $66.2 | | 13.4% | | $521.0 | | $55.4 | | $2.7 | | $58.1 | | 11.2% | | $(27.4) | | (5.3)% | | $8.1 | | 13.9% | | 220 |
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Q3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACCO Brands Americas | $284.4 | | $33.8 | | $6.2 | | $40.0 | | 14.1% | | $311.7 | | $(67.0) | | $105.2 | | $38.2 | | 12.3% | | $(27.3) | | (8.8)% | | $1.8 | | 4.7% | | 180 |
ACCO Brands International | 163.6 | | 9.4 | | 7.6 | | 17.0 | | 10.4% | | 173.9 | | 10.8 | | 3.4 | | 14.2 | | 8.2% | | (10.3) | | (5.9)% | | 2.8 | | 19.7% | | 220 |
Corporate | — | | (11.0) | | — | | (11.0) | | | | — | | (6.8) | | (2.8) | | (9.6) | | | | — | | | | (1.4) | | | | |
Total | $448.0 | | $32.2 | | $13.8 | | $46.0 | | 10.3% | | $485.6 | | $(63.0) | | $105.8 | | $42.8 | | 8.8% | | $(37.6) | | (7.7)% | | $3.2 | | 7.5% | | 150 |
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Q4: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACCO Brands Americas | $284.9 | | $(62.6) | | $112.2 | | $49.6 | | 17.4% | | $298.7 | | $26.0 | | $10.5 | | $36.5 | | 12.2% | | $(13.8) | | (4.6)% | | $13.1 | | 35.9% | | 520 |
ACCO Brands International | 203.7 | | 23.4 | | 8.3 | | 31.7 | | 15.6% | | 200.7 | | 18.3 | | 6.6 | | 24.9 | | 12.4% | | 3.0 | | 1.5% | | 6.8 | | 27.3% | | 320 |
Corporate | — | | (13.6) | | 0.6 | | (13.0) | | | | — | | (8.7) | | (0.4) | | (9.1) | | | | — | | | | (3.9) | | | | |
Total | $488.6 | | $(52.8) | | $121.1 | | $68.3 | | 14.0% | | $499.4 | | $35.6 | | $16.7 | | $52.3 | | 10.5% | | $(10.8) | | (2.2)% | | $16.0 | | 30.6% | | 350 |
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YTD: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACCO Brands Americas | $1,135.7 | | $43.9 | | $131.2 | | $175.1 | | 15.4% | | $1,200.4 | | $28.7 | | $129.9 | | $158.6 | | 13.2% | | $(64.7) | | (5.4)% | | $16.5 | | 10.4% | | 220 |
ACCO Brands International | 697.1 | | 49.6 | | 28.3 | | 77.9 | | 11.2% | | 747.2 | | 38.6 | | 19.6 | | 58.2 | | 7.8% | | (50.1) | | (6.7)% | | 19.7 | | 33.8% | | 340 |
Corporate | — | | (48.8) | | 0.6 | | (48.2) | | | | — | | (32.5) | | (8.5) | | (41.0) | | | | — | | | | (7.2) | | | | |
Total | $1,832.8 | | $44.7 | | $160.1 | | $204.8 | | 11.2% | | $1,947.6 | | $34.8 | | $141.0 | | $175.8 | | 9.0% | | $(114.8) | | (5.9)% | | $29.0 | | 16.5% | | 220 |
(A) Adjusted Operating Income (Loss)/Margin: Represents operating income (loss), excluding restructuring and goodwill impairment charges, the amortization of intangibles, the change in fair value of contingent consideration and non-recurring items. We believe these adjusted non-GAAP financial measures are useful to investors and management because they reflect our underlying operating performance before items that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons. Senior management’s incentive compensation is derived, in part, using adjusted operating income (loss).
