Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-08454 | |
Entity Registrant Name | ACCO Brands Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2704017 | |
Entity Address, Address Line One | Four Corporate Drive | |
Entity Address, City or Town | Lake Zurich | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60047 | |
City Area Code | 847 | |
Local Phone Number | 541-9500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ACCO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 95,797,838 | |
Entity Central Index Key | 0000712034 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 112.7 | $ 66.4 |
Accounts receivable, net | 369.1 | 430.7 |
Inventories | 330 | 327.5 |
Other current assets | 46.6 | 30.8 |
Total current assets | 858.4 | 855.4 |
Total property, plant and equipment | 565.1 | 599.6 |
Less: accumulated depreciation | (411.3) | (429.5) |
Property, plant and equipment, net | 153.8 | 170.1 |
Right of use asset, leases | 89.1 | 91 |
Deferred income taxes | 97.6 | 104.7 |
Goodwill | 451.3 | 590 |
Identifiable intangibles, net | 743.7 | 815.7 |
Other non-current assets | 19.5 | 17.9 |
Total assets | 2,413.4 | 2,644.8 |
Current liabilities: | ||
Notes payable | 13.9 | 0.2 |
Current portion of long-term debt | 48.3 | 36.5 |
Accounts payable | 174.5 | 183.7 |
Accrued compensation | 38.7 | 53.3 |
Accrued customer program liabilities | 84.8 | 104 |
Lease liabilities | 20.4 | 20.5 |
Other current liabilities | 103.7 | 143.8 |
Total current liabilities | 484.3 | 542 |
Long-term debt, net | 917.5 | 882.2 |
Long-term lease liabilities | 75.1 | 76.8 |
Deferred income taxes | 115.1 | 125.6 |
Pension and post-retirement benefit obligations | 144.4 | 157.6 |
Other non-current liabilities | 59.9 | 73.6 |
Total liabilities | 1,796.3 | 1,857.8 |
Stockholders' equity: | ||
Common stock | 1 | 1 |
Treasury stock | (47) | (45.1) |
Paid-in capital | 1,921.7 | 1,913.4 |
Accumulated other comprehensive loss | (555.9) | (526.3) |
Accumulated deficit | (702.7) | (556) |
Total stockholders' equity | 617.1 | 787 |
Total liabilities and stockholders' equity | $ 2,413.4 | $ 2,644.8 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Income Statement [Abstract] | |||||
Net sales | $ 438.3 | $ 493.6 | $ 797.2 | $ 896.2 | |
Cost of products sold | 285.7 | 329.4 | 534.2 | 612.7 | |
Gross profit | 152.6 | 164.2 | 263 | 283.5 | |
Operating costs and expenses: | |||||
Selling, general and administrative expenses | 88 | 98 | 182.2 | 193 | |
Amortization of intangibles | 10.9 | 11 | 21.5 | 21.9 | |
Restructuring | (0.3) | 0 | (0.6) | 3.3 | |
Impairment of goodwill and intangible assets | 165.2 | 0 | 165.2 | 0 | |
Total operating costs and expenses | 263.8 | 109 | 368.3 | 218.2 | |
Operating (loss) income | [1] | (111.2) | 55.2 | (105.3) | 65.3 |
Non-operating expense (income): | |||||
Interest expense | 13.8 | 15.5 | 27.1 | 29.4 | |
Interest income | (2.2) | (2.2) | (4.1) | (4.6) | |
Non-operating pension expense | 4.8 | 0.2 | 5.2 | 0.3 | |
Other (income) expense, net | (0.2) | (0.3) | (0.8) | 1.5 | |
(Loss) income before income tax | (127.4) | 42 | (132.7) | 38.7 | |
Income tax (benefit) expense | (2.2) | 15.6 | (1.2) | 16 | |
Net (loss) income | $ (125.2) | $ 26.4 | $ (131.5) | $ 22.7 | |
Per share: | |||||
Basic (loss) income per share | $ (1.29) | $ 0.28 | $ (1.37) | $ 0.24 | |
Diluted (loss) income per share | $ (1.29) | $ 0.27 | $ (1.37) | $ 0.23 | |
Weighted average number of shares outstanding: | |||||
Basic (in shares) | 96.8 | 95.4 | 96.3 | 95.1 | |
Diluted (in shares) | [2] | 96.8 | 96.3 | 96.3 | 96.7 |
[1] Operating (loss) income is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; v) less restructuring; and vi) less change in the fair value of contingent consideration. As a result of the net loss for the three and six months ended June 30, 2024 and 2023 , diluted earnings per share does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as their effect would have been anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (125.2) | $ 26.4 | $ (131.5) | $ 22.7 |
Other comprehensive (loss) income net of tax: | ||||
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of zero and $(0.2) and $(0.2) and $0.1, respectively | 0.1 | 0.6 | 0.6 | (0.3) |
Foreign currency translation adjustments, net of tax (expense) benefit of $(0.5) and $0.1 and $(0.5) and $0.2, respectively | (15.3) | (1.7) | (36.5) | 7.2 |
Recognition of deferred pension and other post-retirement items, net of tax (expense) benefit of $(1.4) and $0.2 and $(2.1) and $0.6, respectively | 3.9 | (0.8) | 6.3 | (2.3) |
Other comprehensive (loss) income net of tax: | (11.3) | (1.9) | (29.6) | 4.6 |
Comprehensive (loss) income | $ (136.5) | $ 24.5 | $ (161.1) | $ 27.3 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on derivative instruments, tax benefit (expense) | $ 0 | $ (0.2) | $ (0.2) | $ 0.1 |
Foreign currency translation adjustments, tax (expense) benefit | (0.5) | 0.1 | (0.5) | 0.2 |
Recognition of deferred pension and other post-retirement items, tax (expense) benefit | $ (1.4) | $ 0.2 | $ (2.1) | $ 0.6 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net (loss) income | $ (131.5) | $ 22.7 |
Loss on disposal of assets | 0.2 | 1.2 |
Depreciation | 14.1 | 17.3 |
Amortization of debt issuance costs | 1.5 | 1.5 |
Amortization of intangibles | 21.5 | 21.9 |
Stock-based compensation | 7.6 | 8.9 |
Non-cash charge for impairment of goodwill and intangible assets | 165.2 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 43.7 | (33.4) |
Inventories | (12.2) | 10.1 |
Other assets | (15.9) | (9) |
Accounts payable | (4.6) | (55.1) |
Accrued expenses and other liabilities | (58.5) | (19.1) |
Accrued income taxes | (28.5) | (6.3) |
Net cash provided (used) by operating activities | 2.6 | (39.3) |
Investing activities | ||
Additions to property, plant and equipment | (4.9) | (6.1) |
Proceeds from the disposition of assets | 0.1 | 0 |
Net cash used by investing activities | (4.8) | (6.1) |
Financing activities | ||
Proceeds from long-term borrowings | 92 | 107.9 |
Repayments of long-term debt | (38.1) | (28.2) |
Borrowings (repayments) of notes payable, net | 13.8 | (2.4) |
Dividends paid | (14.3) | (14.2) |
Payments related to tax withholding for stock-based compensation | (1.9) | (1.7) |
Net cash provided by financing activities | 51.5 | 61.4 |
Effect of foreign exchange rate changes on cash and cash equivalents | (3) | 4.2 |
Net increase in cash and cash equivalents | 46.3 | 20.2 |
Cash and cash equivalents | ||
Beginning of the period | 66.4 | 62.2 |
End of the period | 112.7 | 82.4 |
Cash paid during the year for: | ||
Interest | 24.9 | 30.3 |
Income taxes | $ 27.2 | $ 22.1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at start of period at Dec. 31, 2022 | $ 810.1 | $ 1 | $ 1,897.2 | $ (43.4) | $ (540.3) | $ (504.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (3.7) | (3.7) | ||||
Gain (loss) on derivative financial instruments, net of tax | (0.9) | (0.9) | ||||
Translation impact, net of tax | 8.9 | 8.9 | ||||
Pension and post-retirement adjustment, net of tax | (1.5) | (1.5) | ||||
Stock-based compensation | 5.6 | 6.2 | (0.6) | |||
Common stock issued, net of shares withheld for employee taxes | (1.7) | (1.7) | ||||
Dividends declared | (7.1) | (7.1) | ||||
Other | 0.1 | (0.1) | 0.1 | 0.1 | ||
Balance at end of period at Mar. 31, 2023 | 809.8 | $ 1 | 1,903.3 | $ (45) | (533.8) | (515.7) |
Balance at start of period (in shares) at Dec. 31, 2022 | 98.9 | 4.6 | ||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 0.9 | 0.3 | ||||
Balance at end of period (in shares) at Mar. 31, 2023 | 99.8 | 4.9 | ||||
Balance at start of period at Dec. 31, 2022 | 810.1 | $ 1 | 1,897.2 | $ (43.4) | (540.3) | (504.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 22.7 | |||||
Gain (loss) on derivative financial instruments, net of tax | (0.3) | |||||
Pension and post-retirement adjustment, net of tax | (2.3) | |||||
Balance at end of period at Jun. 30, 2023 | 830.4 | $ 1 | 1,906.8 | $ (45) | (535.7) | (496.7) |
Balance at start of period (in shares) at Dec. 31, 2022 | 98.9 | 4.6 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 99.8 | 4.9 | ||||
Balance at start of period at Mar. 31, 2023 | 809.8 | $ 1 | 1,903.3 | $ (45) | (533.8) | (515.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 26.4 | 26.4 | ||||
Gain (loss) on derivative financial instruments, net of tax | 0.6 | 0.6 | ||||
Translation impact, net of tax | (1.7) | (1.7) | ||||
Pension and post-retirement adjustment, net of tax | (0.8) | (0.8) | ||||
Stock-based compensation | 3.3 | 3.4 | (0.1) | |||
Dividends declared | (7.1) | (7.1) | ||||
Other | (0.1) | 0.1 | (0.2) | |||
Balance at end of period at Jun. 30, 2023 | 830.4 | $ 1 | 1,906.8 | $ (45) | (535.7) | (496.7) |
Balance at start of period (in shares) at Mar. 31, 2023 | 99.8 | 4.9 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 99.8 | 4.9 | ||||
Balance at start of period at Dec. 31, 2023 | 787 | $ 1 | 1,913.4 | $ (45.1) | (526.3) | (556) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (6.3) | (6.3) | ||||
Gain (loss) on derivative financial instruments, net of tax | 0.5 | 0.5 | ||||
Translation impact, net of tax | (21.2) | (21.2) | ||||
Pension and post-retirement adjustment, net of tax | 2.4 | 2.4 | ||||
Stock-based compensation | 5.1 | 5.4 | (0.3) | |||
Common stock issued, net of shares withheld for employee taxes | (1.9) | (1.9) | ||||
Dividends declared | (7.2) | (7.2) | ||||
Other | 0.1 | 0.1 | ||||
Balance at end of period at Mar. 31, 2024 | 758.5 | $ 1 | 1,918.8 | $ (47) | (544.6) | (569.7) |
Balance at start of period (in shares) at Dec. 31, 2023 | 99.8 | 4.9 | ||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1.1 | 0.3 | ||||
Balance at end of period (in shares) at Mar. 31, 2024 | 100.9 | 5.2 | ||||
Balance at start of period at Dec. 31, 2023 | 787 | $ 1 | 1,913.4 | $ (45.1) | (526.3) | (556) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (131.5) | |||||
Gain (loss) on derivative financial instruments, net of tax | 0.6 | |||||
Pension and post-retirement adjustment, net of tax | 6.3 | |||||
Balance at end of period at Jun. 30, 2024 | 617.1 | $ 1 | 1,921.7 | $ (47) | (555.9) | (702.7) |
Balance at start of period (in shares) at Dec. 31, 2023 | 99.8 | 4.9 | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 101 | 5.2 | ||||
Balance at start of period at Mar. 31, 2024 | 758.5 | $ 1 | 1,918.8 | $ (47) | (544.6) | (569.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (125.2) | (125.2) | ||||
Gain (loss) on derivative financial instruments, net of tax | 0.1 | 0.1 | ||||
Translation impact, net of tax | (15.3) | (15.3) | ||||
Pension and post-retirement adjustment, net of tax | 3.9 | 3.9 | ||||
Stock-based compensation | 2.5 | 2.9 | (0.4) | |||
Dividends declared | (7.1) | (7.1) | ||||
Other | (0.3) | (0.3) | ||||
Balance at end of period at Jun. 30, 2024 | $ 617.1 | $ 1 | $ 1,921.7 | $ (47) | $ (555.9) | $ (702.7) |
Balance at start of period (in shares) at Mar. 31, 2024 | 100.9 | 5.2 | ||||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 0.1 | |||||
Balance at end of period (in shares) at Jun. 30, 2024 | 101 | 5.2 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends per share, declared | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (125.2) | $ (6.3) | $ 26.4 | $ (3.7) | $ (131.5) | $ 22.7 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended June 30, 2024 , no director or officer of the Company who is required to file reports under Section 16 of the Exchange Act informed us that he or she adopted , materially modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule10B51ArrModifiedFlag | false |
NonRule10B51ArrModifiedFlag | false |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation As used in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, the terms "ACCO Brands," "ACCO," the "Company," "we," "us," and "our" refer to ACCO Brands Corporation and its consolidated subsidiaries. The management of ACCO Brands Corporation is responsible for the accuracy and internal consistency of the preparation of the condensed consolidated financial statements and notes contained in this Quarterly Report on Form 10-Q. The condensed consolidated interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Although the Company believes the disclosures are adequate to make the information presented not misleading, certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") have been condensed or omitted pursuant to those rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Condensed Consolidated Balance Sheet as of June 30, 2024 and the related Consolidated Statements of (Loss) Income, Consolidated Statements of Comprehensive (Loss) Income, and Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 are unaudited. The December 31, 2023 Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all annual disclosures required by GAAP. The financial statements included herein were prepared by management and reflect all adjustments (consisting solely of normal recurring items unless otherwise noted) which are, in the opinion of management, necessary for the fair presentation of the results of operations and cash flows for the interim periods ended June 30, 2024 and 2023, and the financial position of the Company as of June 30, 2024. Interim results may not be indicative of results for a full year. Effective January 1, 2024, the Company reorganized its previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. The Americas segment includes the U.S., Canada, Brazil, Mexico and Chile and the International segment includes EMEA, Australia, New Zealand and Asia. Prior period results have been reclassified to reflect this change in our operating segments. See "Note 16. Information on Business Segments" for further details. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and Adopted Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements and Adopted Accounting Standards | 2 . Recent Accounting Pronouncements and Adopted Accounting Standards Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. We are evaluating the effect this guidance will have on our segment disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are evaluating the effect this guidance will have on our tax disclosures. There were no other recently issued accounting standards that are expected to have an impact on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards There were no accounting standards that were adopted in the first six months of 2024 that had a material effect on the Company’s financial condition, results of operations or cash flow. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, there were $ 90.1 million in borrowings outstanding under the Revolving Facility. The remaining amount available for borrowings was $ 501.3 million (allowing for $ 8.6 million of letters of credit outstanding on that date). As of June 30, 2024, our Consolidated Leverage Ratio was approximately 3.70 to 1.00 versus our maximum covenant of 4.50 to 1.00. Senior Unsecured Notes On March 15, 2021, the Company completed a private offering of $ 575.0 million in aggregate principal amount of 4.25 percent Senior Unsecured Notes (the "Notes") due March 2029. Interest on the Notes is payable semiannually on March 15 and September 15 of each year. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of the Company's existing and future U.S. subsidiaries, other than certain excluded subsidiaries. Guarantees and Security Generally, obligations under the Credit Agreement 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." id="sjs-B4">3 . 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 June 30, 2024 and December 31, 2023: (in millions) June 30, December 31, Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.47 % at June 30, 2024 and 5.93 % at December 31, 2023) $ 201.7 $ 218.2 USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 7.19 % at June 30, 2024 and 7.50 % at December 31, 2023) 74.6 78.0 Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.20 % at June 30, 2024 and 6.42 % at December 31, 2023) 30.2 32.5 U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 7.19 % at June 30, 2024 and 7.4 % at December 31, 2023) 82.1 7.3 Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.13 % at June 30, 2024 and 6.42 % at December 31, 2023) 8.0 14.3 Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25 %) 575.0 575.0 Other borrowings 13.9 0.3 Total debt 985.5 925.6 Less: Current portion 62.2 36.7 Debt issuance costs, unamortized 5.8 6.7 Long-term debt, net $ 917.5 $ 882.2 Credit Agreement The Company is party to 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, as amended, provides for a senior secured credit facility, which consists of a € 300.0 million (US$ 320.8 million based on January 27, 2017 exchange rates) term loan facility, an A$ 80.0 million (US$ 60.4 million based on January 27, 2017 exchange rates) term loan facility, a US$ 100.0 million term loan facility, and a US$ 600.0 million multi-currency revolving credit facility (the "Revolving Facility"). From July 2018 to November 2022, the Company entered into six amendments (the "Amendments") to the Credit Agreement. The following are the key changes, among other things, to the Credit Agreement as a result of the Amendments: • replace 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; • increase the maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) financial covenant for each of the five fiscal quarters beginning December 31, 2022, and ending December 31, 2023; • 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; • increase the Company’s flexibility under the restricted payments baskets; 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 is March 31, 2026 and the current pricing is 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 June 30, 2024, there were $ 90.1 million in borrowings outstanding under the Revolving Facility. The remaining amount available for borrowings was $ 501.3 million (allowing for $ 8.6 million of letters of credit outstanding on that date). As of June 30, 2024, our Consolidated Leverage Ratio was approximately 3.70 to 1.00 versus our maximum covenant of 4.50 to 1.00. Senior Unsecured Notes On March 15, 2021, the Company completed a private offering of $ 575.0 million in aggregate principal amount of 4.25 percent Senior Unsecured Notes (the "Notes") due March 2029. Interest on the Notes is payable semiannually on March 15 and September 15 of each year. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of the Company's existing and future U.S. subsidiaries, other than certain excluded subsidiaries. Guarantees and Security Generally, obligations under the Credit Agreement 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. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | 4 . 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 Condensed Consolidated Balance Sheets. 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 the 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 underlying assets except information technology equipment. The components of lease expense were as follows: Three months ended Six Months Ended (in millions) 2024 2023 2024 2023 Operating lease cost $ 7.2 $ 7.1 $ 14.6 $ 14.1 Sublease income ( 0.7 ) ( 0.7 ) ( 1.6 ) ( 1.3 ) Total lease cost $ 6.5 $ 6.4 $ 13.0 $ 12.8 Other information related to leases was as follows: Six Months Ended (in millions, except lease term and discount rate) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14.8 $ 14.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12.7 $ 7.1 Weighted average remaining lease term: Operating leases 5.8 years Weighted average discount rate: Operating leases 5.3 % Future minimum lease payments, net of sublease income, for all non-cancelable leases as of June 30, 2024, were as follows: (in millions) Operating 2024 $ 12.2 2025 24.5 2026 20.1 2027 15.0 2028 12.7 2029 10.2 Thereafter 17.7 Total minimum lease payments 112.4 Less imputed interest 16.9 Future minimum payments for leases, net of sublease rental income and imputed interest $ 95.5 |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Other Retiree Benefits | 5 . Pension and Other Retiree Benefits The components of net periodic benefit (income) cost for pension and post-retirement plans for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Pension Post-retirement U.S. International (in millions) 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 0.2 $ 0.1 $ — $ — Interest cost 1.9 2.0 4.6 5.0 — — Expected return on plan assets ( 3.2 ) ( 3.0 ) ( 4.9 ) ( 5.4 ) — — Amortization of net loss (gain) 0.6 0.6 1.3 1.1 ( 0.1 ) ( 0.1 ) Amortization of prior service cost — — 0.1 0.1 — — Settlement (1) — — 4.4 — — — Net periodic benefit (income) cost (2) $ ( 0.7 ) $ ( 0.4 ) $ 5.7 $ 0.9 $ ( 0.1 ) $ ( 0.1 ) Six Months Ended June 30, Pension Post-retirement U.S. International (in millions) 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 0.4 $ 0.2 $ — $ — Interest cost 3.8 4.0 9.2 9.9 — — Expected return on plan assets ( 6.4 ) ( 6.0 ) ( 9.7 ) ( 10.7 ) — — Amortization of net loss (gain) 1.2 1.2 2.6 2.1 ( 0.2 ) ( 0.2 ) Amortization of prior service cost — — 0.1 0.2 — — Settlement (1) — — 4.4 — — — Net periodic benefit (income) cost (2) $ ( 1.4 ) $ ( 0.8 ) $ 7.0 $ 1.7 $ ( 0.2 ) $ ( 0.2 ) (1) Settlement of $ 4.4 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans being completed in the second quarter of 2024. (2) The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension expense" in the Consolidated Statements of (Loss) Income . We expect to contribute approximately $ 15.9 million to our defined benefit plans in 2024. For the six months ended June 30, 2024, we have contributed $ 6.7 million to these plans. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 6 . Stock-Based Compensation The following table summarizes our stock-based compensation expense (including stock options, restricted stock units ("RSUs") and performance stock units ("PSUs") for the three and six months ended June 30, 2024 and 2023: Three months ended Six Months Ended (in millions) 2024 2023 2024 2023 Stock option compensation expense $ 0.1 $ 0.2 $ 0.3 $ 2.1 RSU compensation expense 1.4 1.3 5.0 3.6 PSU compensation expense 1.0 1.8 2.3 3.2 Total stock-based compensation expense $ 2.5 $ 3.3 $ 7.6 $ 8.9 We generally recognize compensation expense for stock-based awards ratably over the vesting period. During the second quarter of 2024 , the Company's Board of Directors approved the annual stock compensation grant to eligible non-employee directors, which consisted of 199,608 RSUs. The following table summarizes our unrecognized compensation expense and the weighted-average period over which the expense will be recognized as of June 30, 2024: June 30, 2024 (in millions, except weighted average years) Unrecognized Compensation Expense Weighted Average Years Expense To Be Recognized Over Stock options $ 0.3 0.7 RSUs $ 9.8 2.3 PSUs $ 6.6 1.9 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | 7 . Inventories The components of inventories were as follows: (in millions) June 30, 2024 December 31, 2023 Raw materials $ 46.2 $ 50.1 Work in process 4.5 4.7 Finished goods 279.3 272.7 Total inventories $ 330.0 $ 327.5 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 8 . Goodwill and Identifiable Intangible Assets Goodwill We test goodwill for impairment at least annually as of our measurement date of May 31st 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, we identified triggering events within our Americas reporting unit indicating that it was more likely than not that an impairment loss had been incurred. The triggering events included a decline in forecasted cash flows, within specific product categories, and a decline in our stock price. Accordingly, as of May 31, 2024, we completed an impairment assessment, on a quantitative basis, of goodwill for both the Americas and International reporting units. The result of our assessment was that the fair value of the Americas reporting unit did not exceed its carrying value resulting in an impairment charge of $ 127.5 million. The result of our assessment was that the fair value of the International reporting unit exceeded its carrying value and 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 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 two reporting units. 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, or if future events occur that adversely affect our enterprise value, 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 Americas ACCO Brands International Total Balance at December 31, 2023 $ 383.6 $ 206.4 $ 590.0 Goodwill impairment ( 127.5 ) — ( 127.5 ) Foreign currency translation ( 1.5 ) ( 9.7 ) ( 11.2 ) Balance at June 30, 2024 $ 254.6 $ 196.7 $ 451.3 The goodwill balance includes $ 403.3 million and $ 530.8 million of accumulated impairment losses as of December 31, 2023 and June 30, 2024, respectively. Identifiable Intangible Assets We test indefinite-lived intangibles for impairment at least annually as of our measurement date of May 31st 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, we identified a triggering event for our indefinite-lived trade names within our Americas reporting unit indicating that it was more likely than not that an impairment loss had been incurred. The triggering event was a decline in forecasted cash flows within certain product categories. Accordingly, as of May 31, 2024, we completed an impairment assessment, on a quantitative basis, for our indefinite-lived trade names. The result of our assessment was that the fair value of the Five Star ® indefinite-lived trade name did not exceed its carrying value resulting in an impairment charge of $ 37.7 million. The result of our assessment of the Swingline ® and ACCO ® indefinite-lived trade names was that the fair value of each exceeded its carrying value and we concluded that no impairment existed. Estimating the fair value of each trade name requires us to make assumptions and estimates regarding our future. We utilized a relief-from-royalty discounted cash flows approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, royalty rate, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three indefinite-lived trade names. We believe the assumptions used in our impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each our indefinite-lived trade names. 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 indefinite-lived intangible impairment testing, will prove to be an accurate prediction of the future. As of June 1, 2024, we changed our Five Star ® and Swingline ® indefinite-lived trade names to amortizable intangible assets as they no longer met the indefinite-lived criteria. We began amortizing both trade names on a straight-line basis over a life of 30 years as of June 1, 2024. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of June 30, 2024 and December 31, 2023, were as follows: June 30, 2024 December 31, 2023 (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) $ 101.2 $ ( 44.5 ) $ 56.7 $ 295.1 $ ( 44.5 ) $ 250.6 Amortizable intangible assets: Trade names (2) 639.8 ( 148.9 ) 490.9 497.1 ( 142.0 ) 355.1 Customer and contractual relationships 357.0 ( 226.4 ) 130.6 362.4 ( 221.3 ) 141.1 Vendor relationships 82.4 ( 19.5 ) 62.9 82.4 ( 16.7 ) 65.7 Patents 8.0 ( 5.4 ) 2.6 8.2 ( 5.0 ) 3.2 Subtotal 1,087.2 ( 400.2 ) 687.0 950.1 ( 385.0 ) 565.1 Total identifiable intangibles $ 1,188.4 $ ( 444.7 ) $ 743.7 $ 1,245.2 $ ( 429.5 ) $ 815.7 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. (2) Reflects the change of two indefinite-lived trade names from indefinite-lived intangibles to amortizable intangible assets as of June 1, 2024. The Company's intangible amortization expense for the three and six months ended June 30, 2024 was $ 10.9 million and $ 21.5 million , respectively, and $ 11.0 million and $ 21.9 million for the three and six months ended June 30, 2023, respectively. Estimated amortization expense for amortizable intangible assets, as of June 30, 2024, for the current year and the next five years is as follows: (in millions) 2024 2025 2026 2027 2028 2029 Estimated amortization expense (3) $ 45.1 $ 45.7 $ 43.6 $ 41.2 $ 39.0 $ 37.2 (3) 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 | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 9 . Restructuring The Company recorded a $ 0.6 million net reduction to the restructuring provision and $ 3.3 million of restructuring expense for the six months ended June 30, 2024 and 2023, respectively, which was primarily for severance costs related to cost reduction initiatives in our International segment. The Company recorded a $ 0.3 million net reduction to the restructuring provision for the three months ended June 30, 2024 and zero for the three months ended June 30, 2023. The summary of the activity in the restructuring liability for the six months ended June 30, 2024, was as follows: (in millions) Balance at December 31, 2023 Provision Cash Expenditures Non-cash Items/Currency Change Balance at June 30, 2024 Employee termination costs (1) $ 27.5 $ ( 0.9 ) $ ( 8.6 ) $ ( 0.3 ) $ 17.7 Other (2) 0.9 0.3 ( 0.6 ) — 0.6 Total restructuring liability $ 28.4 $ ( 0.6 ) $ ( 9.2 ) $ ( 0.3 ) $ 18.3 (1) We expect the remaining $ 17.7 million employee termination costs to be substantially paid in the next twelve months . (2) We expect the remaining $ 0.6 million of other costs to be substantially paid in the next nine months . The summary of the activity in the restructuring liability for the six months ended June 30, 2023 was as follows: (in millions) Balance at December 31, 2022 Provision Cash Expenditures Non-cash Items/Currency Change Balance at June 30, 2023 Employee termination costs $ 8.7 $ 2.6 $ ( 5.3 ) $ 0.1 $ 6.1 Other — 0.7 ( 0.1 ) — 0.6 Total restructuring liability $ 8.7 $ 3.3 $ ( 5.4 ) $ 0.1 $ 6.7 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10 . Income Taxes For the three months ended June 30, 2024, we recorded income tax benefit of $ 2.2 million on a loss before taxes of $ 127.4 million . For the three months ended June 30, 2023, we recorded income tax expense of $ 15.6 million on income before taxes of $ 42.0 million . The $ 17.8 million decrease in tax expense compared to the three months ended June 30, 2023 was primarily driven by a $ 17.0 million decrease in discrete income tax expense during the second quarter of 2024 primarily related to the impairment of indefinite-lived intangibles, the settlement of certain pensions and the change to uncertain tax positions based on the statutes of limitations. The non-cash goodwill impairment charge of $ 127.5 million had no associated tax benefit. For the six months ended June 30, 2024, we recorded income tax benefit of $ 1.2 million on a loss before taxes of $ 132.7 million . For the six months ended June 30, 2023, we recorded income tax expense of $ 16.0 million on a income before taxes of $ 38.7 million . The $ 17.2 million decrease in tax expense compared to the six months ended June 30, 2023 was primarily driven by a $ 16.3 million decrease in discrete income tax expense during the first half of 2024 primarily related to the impairment of indefinite-lived intangibles, the settlement of certain pensions, the change to uncertain tax positions based on the statutes of limitations and the Brazilian income tax refunded related to certain interest income generated. The U.S. federal statute of limitations remains open for the years 2020 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia ( 2019 forward ), Brazil ( 2018 forward ), Canada ( 2020 forward ), Germany ( 2019 forward ), Sweden ( 2021 forward ) and the U.K. ( 2022 forward ). We are currently under examination in certain foreign jurisdictions. Organisation for Economic Co-operation and Development (“OECD”) Global Anti-Base Erosion Model Rules (Pillar Two) Legislatures and taxing authorities in many jurisdictions in which we operate may enact changes to, or seek to enforce, novel interpretations of their tax rules. These changes may include modifications that can be temporary or permanent. For example, the Organisation for Economic Cooperation and Development (the "OECD"), the European Union and other countries (including countries in which we operate) have committed to enacting substantial changes to numerous long-standing tax principles impacting how large multinational enterprises are taxed. In particular, the OECD's Pillar Two initiative introduces a 15 % global minimum tax applied on a country-by-country basis and for which many jurisdictions have now committed to an effective enactment date starting January 1, 2024. Management is currently assessing the impact and materiality of these potential new rules as well as any other changes in domestic and international tax rules and regulations. 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 at any time in the next twelve to eighteen months. If the FRD's initial position is ultimately sustained, payment of the amount assessed would materially and adversely affect our cash flow in the year of settlement. Because there is no settled legal precedent on which to base a definitive opinion as to whether we will ultimately prevail, we consider the outcome of these disputes to be uncertain. Since it is not more likely than not that we will prevail, in 2012, we recorded a reserve in the amount of $ 44.5 million (at December 31, 2012 exchange rates) in consideration of this contingency, of which $ 43.3 million was recorded as an adjustment to the purchase price and which included the 2007-2012 tax years plus penalties and interest through December 2012. During the third quarter of 2023, there was a change in Brazilian law which allowed us to seek a cancellation of the 75 percent standard penalty that would be payable in the event we do not prevail in our actions challenging the Brazil Tax Assessments. Following completion of the necessary administrative procedures, during the fourth quarter of 2023, the Company reduced its reserve for this contingency by $ 13.3 million, representing the amount of the cancelled penalties, as well as interest and other fees related to those penalties. 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 six months ended June 30, 2024 and 2023, we accrued additional interest as a charge to current income tax expense of $ 0.4 million and $ 1.0 million, respectively. At current exchange rates, our accrual as of June 30, 2024, including tax, penalties and interest is $ 19.5 million (reported in "Other non-current liabilities"). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 11 . Earnings per Share Total outstanding shares as of June 30, 2024 and 2023, were 95.8 million and 94.9 million , respectively. For each of the six months ended June 30, 2024 and 2023, we acquired 0.4 million and 0.3 million shares, respectively, related to tax withholding for share-based compensation. The calculation of basic earnings per share of common stock is based on the weighted-average number of shares of common stock outstanding in the year, or period, over which they were outstanding. Our calculation of diluted earnings per share of common stock assumes that any shares of common stock outstanding were increased by shares that would be issued upon exercise of those stock awards for which the average market price for the period exceeds the exercise price less the shares that could have been purchased by the Company with the related proceeds, including compensation expense measured but not yet recognized. Our weighted-average number of shares outstanding for the three and six months ended June 30, 2024 and 2023 was as follows: Three months ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Weighted-average number of shares of common stock outstanding - basic 96.8 95.4 96.3 95.1 Effect of dilutive securities: Restricted stock units — 0.9 — 1.6 Weighted-average shares and assumed conversions - diluted (1) 96.8 96.3 96.3 96.7 (1) As a result of the net loss for the three and six months ended June 30, 2024 and 2023 , diluted earnings per share does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as their effect would have been anti-dilutive. Awards of potentially dilutive shares of common stock, which have exercise prices that were higher than the average market price during the period, are not included in the computation of dilutive earnings per share as their effect would have been anti-dilutive. For the three and six months ended June 30, 2024, the number of anti-dilutive shares was approximately 9.3 million and 8.8 million , respectively. For the three and six months ended June 30, 2023, the number of anti-dilutive shares was approximately 10.4 million and 9.5 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12 . 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 Accumulated Other Comprehensive Income (Loss) ("AOCI") until the contracts are settled and the underlying hedged transactions relating to inventory purchases are recognized, at which time the deferred gains or losses will be reported in the "Cost of products sold" line in the Consolidated Statements of (Loss) Income. As of June 30, 2024 and December 31, 2023, we had cash flow foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $ 82.7 million and $ 80.2 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 (income) expense, net" in the Consolidated Statements of (Loss) 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 June 2025. As of June 30, 2024 and December 31, 2023, we had foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $ 138.5 million and $ 102.3 million , respectively, which were not designated as hedges. The following table summarizes the fair value of our derivative financial instruments as of June 30, 2024 and December 31, 2023: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet Location June 30, December 31, Balance Sheet Location June 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.7 $ 0.3 Other current liabilities $ 0.4 $ 1.6 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.6 1.0 Other current liabilities 0.6 0.1 Foreign exchange contracts Other non-current assets 3.8 3.2 Other non-current liabilities 3.8 3.2 Total derivatives $ 5.1 $ 4.5 $ 4.8 $ 4.9 The following tables summarize the pre-tax effect of our derivative financial instruments on the condensed consolidated financial statements for the three and six months ended June 30, 2024 and 2023: 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) Three months ended June 30, Three months ended June 30, (in millions) 2024 2023 2024 2023 Cash flow hedges: Foreign exchange contracts $ 0.6 $ 1.0 Cost of products sold $ ( 0.5 ) $ ( 0.3 ) 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) Six months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Cash flow hedges: Foreign exchange contracts $ 1.6 $ 0.4 Cost of products sold $ ( 0.9 ) $ ( 0.8 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Financial Statements Location of (Gain) Loss Recognized in Income on Derivatives Amount of (Gain) Loss Amount of (Gain) Loss Recognized in Income Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Foreign exchange contracts Other expense (income), net $ ( 3.4 ) $ 1.3 $ ( 2.1 ) $ 3.0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 13 . 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 12 . 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 June 30, 2024 and December 31, 2023: (in millions) June 30, December 31, Assets: Forward currency contracts $ 5.1 $ 4.5 Liabilities: Forward currency contracts $ 4.8 $ 4.9 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 $ 985.5 million and $ 925.6 million and the estimated fair value of total debt was $ 922.3 million and $ 870.9 million at June 30, 2024 and December 31, 2023, 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. Nonrecurring Fair Value Measurements On a nonrecurring basis, we remeasure the fair value of the goodwill of our reporting units and our trade name indefinite-lived intangibles if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The fair value of our reporting units and trade names are considered Level 3 measurements. Level 3 measurements require significant unobservable inputs that are reflected in our assumptions. See "Note 8 . Goodwill and Identifiable Intangible Assets" for more information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14 . 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, 2023 $ ( 0.7 ) $ ( 349.8 ) $ ( 175.8 ) $ ( 526.3 ) Other comprehensive (loss) income before reclassifications, net of tax 1.2 ( 36.5 ) 0.8 ( 34.5 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax ( 0.6 ) — 5.5 4.9 Balance at June 30, 2024 $ ( 0.1 ) $ ( 386.3 ) $ ( 169.5 ) $ ( 555.9 ) The reclassifications out of AOCI for the three and six months ended June 30, 2024 and 2023 were as follows: Three months ended Six months ended June 30, (in millions) 2024 2023 2024 2023 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Gain (loss) on cash flow hedges: Foreign exchange contracts $ 0.5 $ 0.3 $ 0.9 $ 0.8 Cost of products sold Tax expense ( 0.1 ) ( 0.1 ) ( 0.3 ) ( 0.2 ) Income tax (benefit) expense Net of tax $ 0.4 $ 0.2 $ 0.6 $ 0.6 Defined benefit plan items: Amortization of net actuarial loss (1) $ ( 5.4 ) $ ( 1.6 ) $ ( 7.2 ) $ ( 3.1 ) Amortization of prior service cost (1) ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.2 ) Total before tax ( 5.5 ) ( 1.7 ) ( 7.3 ) ( 3.3 ) Tax benefit 1.4 0.4 1.8 0.9 Income tax (benefit) expense Net of tax $ ( 4.1 ) $ ( 1.3 ) $ ( 5.5 ) $ ( 2.4 ) Total reclassifications for the period, net of tax $ ( 3.7 ) $ ( 1.1 ) $ ( 4.9 ) $ ( 1.8 ) (1) These AOCI components are included in the computation of net periodic benefit (income) cost for pension and post-retirement plans including $ 3.6 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans in the second of 2024 . See "Note 5 . Pension and Other Retiree Benefits" for additional details. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 15 . 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. 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. As of December 31, 2023, there was $ 2.9 million of unearned revenue associated with outstanding service or extended maintenance agreements ("EMAs"), primarily reported in "Other current liabilities." During the three and six months ended June 30, 2024 , $ 0.6 million and $ 1.8 million of the unearned revenue was earned and recognized. As of June 30, 2024 , the amount of unearned revenue from EMAs was $ 2.9 million. We expect to earn and recognize approximately $ 2.4 million of the unearned amount in the next 12 months and $ 0.5 million in periods beyond the next 12 months. The following tables present our net sales disaggregated by regional geography, by reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 United States $ 224.9 $ 262.1 $ 362.2 $ 418.1 Canada 29.2 31.7 47.4 53.3 Latin America 38.2 42.6 79.9 95.0 ACCO Brands Americas 292.3 336.4 489.5 566.4 EMEA (1) 115.5 125.7 244.7 261.5 Australia/N.Z. 23.2 24.1 48.3 52.4 Asia 7.3 7.4 14.7 15.9 ACCO Brands International 146.0 157.2 307.7 329.8 Net sales (2) $ 438.3 $ 493.6 $ 797.2 $ 896.2 (1) EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. (2) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Product and services transferred at a point in time $ 429.8 $ 483.1 $ 778.7 $ 873.4 Product and services transferred over time 8.5 10.5 18.5 22.8 Net sales $ 438.3 $ 493.6 $ 797.2 $ 896.2 |
Information on Business Segment
Information on Business Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 16 . Information on Business Segments Effective January 1, 2024, the Company reorganized its previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. The Americas includes the U.S., Canada, Brazil, Mexico and Chile, and International includes EMEA, Australia, New Zealand and Asia. The new organizational structure aligns with how the Chief Operating Decision Maker ("CODM") analyzes and evaluates the Company's performance. This change will simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply change optimization, global footprint rationalization, and better leverage of our sourcing capabilities. Prior period results have been reclassified to reflect this change in our operating segments. The Company's two segments are as follows: Operating Segment Geography Primary Brands Primary Products ACCO Brands Americas United States, Canada and Latin America Five Star ® , PowerA ® , Tilibra ® , AT-A-GLANCE ® , Kensington ® , Quartet ® , GBC ® , Mead ® , Swingline ® , Barrilito ® , Foroni ® and Hilroy ® Note taking products, computer and gaming accessories; planners; workspace machines, tools and essentials and dry erase boards and accessories. ACCO Brands International EMEA, Australia/N.Z., and Asia Leitz ® , Rapid ® , Kensington ® , Esselte ® , Rexel ® , PowerA ® , GBC ® , NOBO ® , Franken ® , Derwent ® , Marbig ® , Artline ® * and Spirax ® *Australia/N.Z. only Filing and organization products; workspace machines, tools and essentials; computer and gaming accessories; dry erase boards and accessories; and writing and art products. 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, technology distributors, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, and contract stationers. We also sell directly through e-commerce sites and our direct sales organization. Net sales by reportable business segment for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 ACCO Brands Americas $ 292.3 $ 336.4 $ 489.5 $ 566.4 ACCO Brands International 146.0 157.2 307.7 329.8 Net sales $ 438.3 $ 493.6 $ 797.2 $ 896.2 Operating (loss) income by business segment for the three and six months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 ACCO Brands Americas $ ( 108.7 ) $ 60.4 $ ( 102.6 ) $ 72.7 ACCO Brands International 7.8 7.1 20.6 16.8 Segment operating (loss) income ( 100.9 ) 67.5 ( 82.0 ) 89.5 Corporate ( 10.3 ) ( 12.3 ) ( 23.3 ) ( 24.2 ) Operating (loss) income⁽¹⁾ ( 111.2 ) 55.2 ( 105.3 ) 65.3 Interest expense 13.8 15.5 27.1 29.4 Interest income ( 2.2 ) ( 2.2 ) ( 4.1 ) ( 4.6 ) Non-operating pension expense 4.8 0.2 5.2 0.3 Other (income) expense, net ( 0.2 ) ( 0.3 ) ( 0.8 ) 1.5 (Loss) income before income tax $ ( 127.4 ) $ 42.0 $ ( 132.7 ) $ 38.7 (1) Operating (loss) income is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; v) less restructuring; and vi) less change in the fair value of contingent consideration. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17 . 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 10. 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. All of these cases have been finally decided in a court of law in favor of ACCO Brazil. During the six months ended June 30, 2024 , ACCO Brazil completed the necessary administrative steps which allowed it to benefit from additional Tax Credits and record a gain of $ 1.9 million, which is included in "Other (income) expense, net," on our Consolidated Statements of (Loss) Income. The Tax Credits will be utilized against future tax obligations. 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. Upon the expiration of the applicable statute of limitations, we are required under agreements with the former owners of the Foroni business to remit certain recovered tax credits, less the applicable tax and expenses, to the extent the tax credits relate to a tax period prior to the acquisition date. In September of 2021, the Supreme Court of Brazil issued its final ruling in a leading case which provides that corporate income tax (“IRPJ”) and social contribution on net income (“CSLL”) should not be levied on the Special System of Clearance and Custody (“SELIC”) interest rate received by taxpayers on the refund of overpaid taxes as in our Tax Credits. During the six months ended June 30, 2024 , ACCO Brazil filed legal actions requesting recovery of these excess tax payments and completed the necessary administrative steps which allowed it to record an income tax benefit of $ 2.6 million. 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. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements and Adopted Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. We are evaluating the effect this guidance will have on our segment disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are evaluating the effect this guidance will have on our tax disclosures. There were no other recently issued accounting standards that are expected to have an impact on the Company’s financial condition, results of operations or cash flow. Recently Adopted Accounting Standards There were no accounting standards that were adopted in the first six months of 2024 that had a material effect on the Company’s financial condition, results of operations or cash flow. |
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 Condensed Consolidated Balance Sheets. 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 the 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 underlying assets except information technology equipment. |
Long-term Debt and Short-term_2
Long-term Debt and Short-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of 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 June 30, 2024 and December 31, 2023: (in millions) June 30, December 31, Euro Senior Secured Term Loan A, due March 2026 (floating interest rate of 5.47 % at June 30, 2024 and 5.93 % at December 31, 2023) $ 201.7 $ 218.2 USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 7.19 % at June 30, 2024 and 7.50 % at December 31, 2023) 74.6 78.0 Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.20 % at June 30, 2024 and 6.42 % at December 31, 2023) 30.2 32.5 U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 7.19 % at June 30, 2024 and 7.4 % at December 31, 2023) 82.1 7.3 Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.13 % at June 30, 2024 and 6.42 % at December 31, 2023) 8.0 14.3 Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25 %) 575.0 575.0 Other borrowings 13.9 0.3 Total debt 985.5 925.6 Less: Current portion 62.2 36.7 Debt issuance costs, unamortized 5.8 6.7 Long-term debt, net $ 917.5 $ 882.2 |
Schedule of Applicable Rate and Undrawn Fee Based on Company's Consolidated Leverage Ratio | The current maturity of the Credit Agreement is March 31, 2026 and the current pricing is 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) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | The components of lease expense were as follows: Three months ended Six Months Ended (in millions) 2024 2023 2024 2023 Operating lease cost $ 7.2 $ 7.1 $ 14.6 $ 14.1 Sublease income ( 0.7 ) ( 0.7 ) ( 1.6 ) ( 1.3 ) Total lease cost $ 6.5 $ 6.4 $ 13.0 $ 12.8 Other information related to leases was as follows: Six Months Ended (in millions, except lease term and discount rate) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14.8 $ 14.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12.7 $ 7.1 Weighted average remaining lease term: Operating leases 5.8 years Weighted average discount rate: Operating leases 5.3 % |
Schedule of Future Minimum Lease Payments, Net of Sublease Income | Future minimum lease payments, net of sublease income, for all non-cancelable leases as of June 30, 2024, were as follows: (in millions) Operating 2024 $ 12.2 2025 24.5 2026 20.1 2027 15.0 2028 12.7 2029 10.2 Thereafter 17.7 Total minimum lease payments 112.4 Less imputed interest 16.9 Future minimum payments for leases, net of sublease rental income and imputed interest $ 95.5 |
Pension and Other Retiree Ben_2
Pension and Other Retiree Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost for Pension and Post-Retirement Plans | The components of net periodic benefit (income) cost for pension and post-retirement plans for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Pension Post-retirement U.S. International (in millions) 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 0.2 $ 0.1 $ — $ — Interest cost 1.9 2.0 4.6 5.0 — — Expected return on plan assets ( 3.2 ) ( 3.0 ) ( 4.9 ) ( 5.4 ) — — Amortization of net loss (gain) 0.6 0.6 1.3 1.1 ( 0.1 ) ( 0.1 ) Amortization of prior service cost — — 0.1 0.1 — — Settlement (1) — — 4.4 — — — Net periodic benefit (income) cost (2) $ ( 0.7 ) $ ( 0.4 ) $ 5.7 $ 0.9 $ ( 0.1 ) $ ( 0.1 ) Six Months Ended June 30, Pension Post-retirement U.S. International (in millions) 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 0.4 $ 0.2 $ — $ — Interest cost 3.8 4.0 9.2 9.9 — — Expected return on plan assets ( 6.4 ) ( 6.0 ) ( 9.7 ) ( 10.7 ) — — Amortization of net loss (gain) 1.2 1.2 2.6 2.1 ( 0.2 ) ( 0.2 ) Amortization of prior service cost — — 0.1 0.2 — — Settlement (1) — — 4.4 — — — Net periodic benefit (income) cost (2) $ ( 1.4 ) $ ( 0.8 ) $ 7.0 $ 1.7 $ ( 0.2 ) $ ( 0.2 ) (1) Settlement of $ 4.4 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans being completed in the second quarter of 2024. (2) The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension expense" in the Consolidated Statements of (Loss) Income . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes our stock-based compensation expense (including stock options, restricted stock units ("RSUs") and performance stock units ("PSUs") for the three and six months ended June 30, 2024 and 2023: Three months ended Six Months Ended (in millions) 2024 2023 2024 2023 Stock option compensation expense $ 0.1 $ 0.2 $ 0.3 $ 2.1 RSU compensation expense 1.4 1.3 5.0 3.6 PSU compensation expense 1.0 1.8 2.3 3.2 Total stock-based compensation expense $ 2.5 $ 3.3 $ 7.6 $ 8.9 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The following table summarizes our unrecognized compensation expense and the weighted-average period over which the expense will be recognized as of June 30, 2024: June 30, 2024 (in millions, except weighted average years) Unrecognized Compensation Expense Weighted Average Years Expense To Be Recognized Over Stock options $ 0.3 0.7 RSUs $ 9.8 2.3 PSUs $ 6.6 1.9 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: (in millions) June 30, 2024 December 31, 2023 Raw materials $ 46.2 $ 50.1 Work in process 4.5 4.7 Finished goods 279.3 272.7 Total inventories $ 330.0 $ 327.5 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Net Carrying Amount of Goodwill by Segment | Changes in the net carrying amount of goodwill by segment were as follows: (in millions) ACCO Brands Americas ACCO Brands International Total Balance at December 31, 2023 $ 383.6 $ 206.4 $ 590.0 Goodwill impairment ( 127.5 ) — ( 127.5 ) Foreign currency translation ( 1.5 ) ( 9.7 ) ( 11.2 ) Balance at June 30, 2024 $ 254.6 $ 196.7 $ 451.3 |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of June 30, 2024 and December 31, 2023, were as follows: June 30, 2024 December 31, 2023 (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) $ 101.2 $ ( 44.5 ) $ 56.7 $ 295.1 $ ( 44.5 ) $ 250.6 Amortizable intangible assets: Trade names (2) 639.8 ( 148.9 ) 490.9 497.1 ( 142.0 ) 355.1 Customer and contractual relationships 357.0 ( 226.4 ) 130.6 362.4 ( 221.3 ) 141.1 Vendor relationships 82.4 ( 19.5 ) 62.9 82.4 ( 16.7 ) 65.7 Patents 8.0 ( 5.4 ) 2.6 8.2 ( 5.0 ) 3.2 Subtotal 1,087.2 ( 400.2 ) 687.0 950.1 ( 385.0 ) 565.1 Total identifiable intangibles $ 1,188.4 $ ( 444.7 ) $ 743.7 $ 1,245.2 $ ( 429.5 ) $ 815.7 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. (2) Reflects the change of two indefinite-lived trade names from indefinite-lived intangibles to amortizable intangible assets as of June 1, 2024. |
Estimated Amortization Expense for Future Periods | Estimated amortization expense for amortizable intangible assets, as of June 30, 2024, for the current year and the next five years is as follows: (in millions) 2024 2025 2026 2027 2028 2029 Estimated amortization expense (3) $ 45.1 $ 45.7 $ 43.6 $ 41.2 $ 39.0 $ 37.2 (3) Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | The summary of the activity in the restructuring liability for the six months ended June 30, 2024, was as follows: (in millions) Balance at December 31, 2023 Provision Cash Expenditures Non-cash Items/Currency Change Balance at June 30, 2024 Employee termination costs (1) $ 27.5 $ ( 0.9 ) $ ( 8.6 ) $ ( 0.3 ) $ 17.7 Other (2) 0.9 0.3 ( 0.6 ) — 0.6 Total restructuring liability $ 28.4 $ ( 0.6 ) $ ( 9.2 ) $ ( 0.3 ) $ 18.3 (1) We expect the remaining $ 17.7 million employee termination costs to be substantially paid in the next twelve months . (2) We expect the remaining $ 0.6 million of other costs to be substantially paid in the next nine months . The summary of the activity in the restructuring liability for the six months ended June 30, 2023 was as follows: (in millions) Balance at December 31, 2022 Provision Cash Expenditures Non-cash Items/Currency Change Balance at June 30, 2023 Employee termination costs $ 8.7 $ 2.6 $ ( 5.3 ) $ 0.1 $ 6.1 Other — 0.7 ( 0.1 ) — 0.6 Total restructuring liability $ 8.7 $ 3.3 $ ( 5.4 ) $ 0.1 $ 6.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Weighted-Average Number of Shares Outstanding | Our weighted-average number of shares outstanding for the three and six months ended June 30, 2024 and 2023 was as follows: Three months ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Weighted-average number of shares of common stock outstanding - basic 96.8 95.4 96.3 95.1 Effect of dilutive securities: Restricted stock units — 0.9 — 1.6 Weighted-average shares and assumed conversions - diluted (1) 96.8 96.3 96.3 96.7 (1) As a result of the net loss for the three and six months ended June 30, 2024 and 2023 , diluted earnings per share does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as their effect would have been anti-dilutive. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions) Balance Sheet Location June 30, December 31, Balance Sheet Location June 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.7 $ 0.3 Other current liabilities $ 0.4 $ 1.6 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.6 1.0 Other current liabilities 0.6 0.1 Foreign exchange contracts Other non-current assets 3.8 3.2 Other non-current liabilities 3.8 3.2 Total derivatives $ 5.1 $ 4.5 $ 4.8 $ 4.9 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax effect of our derivative financial instruments on the condensed consolidated financial statements for the three and six months ended June 30, 2024 and 2023: 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) Three months ended June 30, Three months ended June 30, (in millions) 2024 2023 2024 2023 Cash flow hedges: Foreign exchange contracts $ 0.6 $ 1.0 Cost of products sold $ ( 0.5 ) $ ( 0.3 ) 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) Six months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Cash flow hedges: Foreign exchange contracts $ 1.6 $ 0.4 Cost of products sold $ ( 0.9 ) $ ( 0.8 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Financial Statements Location of (Gain) Loss Recognized in Income on Derivatives Amount of (Gain) Loss Amount of (Gain) Loss Recognized in Income Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Foreign exchange contracts Other expense (income), net $ ( 3.4 ) $ 1.3 $ ( 2.1 ) $ 3.0 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a 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 June 30, 2024 and December 31, 2023: (in millions) June 30, December 31, Assets: Forward currency contracts $ 5.1 $ 4.5 Liabilities: Forward currency contracts $ 4.8 $ 4.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 $ ( 0.7 ) $ ( 349.8 ) $ ( 175.8 ) $ ( 526.3 ) Other comprehensive (loss) income before reclassifications, net of tax 1.2 ( 36.5 ) 0.8 ( 34.5 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax ( 0.6 ) — 5.5 4.9 Balance at June 30, 2024 $ ( 0.1 ) $ ( 386.3 ) $ ( 169.5 ) $ ( 555.9 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of AOCI for the three and six months ended June 30, 2024 and 2023 were as follows: Three months ended Six months ended June 30, (in millions) 2024 2023 2024 2023 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income Statement Gain (loss) on cash flow hedges: Foreign exchange contracts $ 0.5 $ 0.3 $ 0.9 $ 0.8 Cost of products sold Tax expense ( 0.1 ) ( 0.1 ) ( 0.3 ) ( 0.2 ) Income tax (benefit) expense Net of tax $ 0.4 $ 0.2 $ 0.6 $ 0.6 Defined benefit plan items: Amortization of net actuarial loss (1) $ ( 5.4 ) $ ( 1.6 ) $ ( 7.2 ) $ ( 3.1 ) Amortization of prior service cost (1) ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.2 ) Total before tax ( 5.5 ) ( 1.7 ) ( 7.3 ) ( 3.3 ) Tax benefit 1.4 0.4 1.8 0.9 Income tax (benefit) expense Net of tax $ ( 4.1 ) $ ( 1.3 ) $ ( 5.5 ) $ ( 2.4 ) Total reclassifications for the period, net of tax $ ( 3.7 ) $ ( 1.1 ) $ ( 4.9 ) $ ( 1.8 ) (1) These AOCI components are included in the computation of net periodic benefit (income) cost for pension and post-retirement plans including $ 3.6 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans in the second of 2024 . See "Note 5 . Pension and Other Retiree Benefits" for additional details. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our net sales disaggregated by regional geography, by reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 United States $ 224.9 $ 262.1 $ 362.2 $ 418.1 Canada 29.2 31.7 47.4 53.3 Latin America 38.2 42.6 79.9 95.0 ACCO Brands Americas 292.3 336.4 489.5 566.4 EMEA (1) 115.5 125.7 244.7 261.5 Australia/N.Z. 23.2 24.1 48.3 52.4 Asia 7.3 7.4 14.7 15.9 ACCO Brands International 146.0 157.2 307.7 329.8 Net sales (2) $ 438.3 $ 493.6 $ 797.2 $ 896.2 (1) EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa. (2) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Product and services transferred at a point in time $ 429.8 $ 483.1 $ 778.7 $ 873.4 Product and services transferred over time 8.5 10.5 18.5 22.8 Net sales $ 438.3 $ 493.6 $ 797.2 $ 896.2 |
Information on Business Segme_2
Information on Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by reportable business segment for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 ACCO Brands Americas $ 292.3 $ 336.4 $ 489.5 $ 566.4 ACCO Brands International 146.0 157.2 307.7 329.8 Net sales $ 438.3 $ 493.6 $ 797.2 $ 896.2 |
Schedule of Operating (Loss) Income by Business Segment | Operating (loss) income by business segment for the three and six months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 ACCO Brands Americas $ ( 108.7 ) $ 60.4 $ ( 102.6 ) $ 72.7 ACCO Brands International 7.8 7.1 20.6 16.8 Segment operating (loss) income ( 100.9 ) 67.5 ( 82.0 ) 89.5 Corporate ( 10.3 ) ( 12.3 ) ( 23.3 ) ( 24.2 ) Operating (loss) income⁽¹⁾ ( 111.2 ) 55.2 ( 105.3 ) 65.3 Interest expense 13.8 15.5 27.1 29.4 Interest income ( 2.2 ) ( 2.2 ) ( 4.1 ) ( 4.6 ) Non-operating pension expense 4.8 0.2 5.2 0.3 Other (income) expense, net ( 0.2 ) ( 0.3 ) ( 0.8 ) 1.5 (Loss) income before income tax $ ( 127.4 ) $ 42.0 $ ( 132.7 ) $ 38.7 (1) Operating (loss) income is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; v) less restructuring; and vi) less change in the fair value of contingent consideration. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - Segment | 6 Months Ended | |
Jan. 01, 2024 | Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | 2 | 2 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 985.5 | $ 925.6 |
Current portion | 62.2 | 36.7 |
Debt issuance costs, unamortized | 5.8 | 6.7 |
Long-term debt, net | 917.5 | 882.2 |
Euro Senior Secured Term Loan A, due March 2026 (floating interest rate 5.47% at June 30, 2024 and 5.93% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 201.7 | 218.2 |
USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 7.19% at June 30, 2024 and 7.50% at December 31, 2023) | ||
Debt Instrument [Line Items] | ||
Total debt | 74.6 | 78 |
Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.20% at June 30, 2024 and 6.42% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 30.2 | 32.5 |
U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 7.19% at June 30, 2024 and 7.4% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 82.1 | 7.3 |
Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.13% at June 30, 2024 and 6.42% at December 31, 2023) | ||
Debt Instrument [Line Items] | ||
Total debt | 8 | 14.3 |
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 | $ 13.9 | $ 0.3 |
Long-term Debt and Short-term_4
Long-term Debt and Short-term Borrowings - Summary of Notes Payable and Long-Term Debt (Parenthetical) (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Senior Secured Notes | Euro Senior Secured Term Loan A, due March 2026 (floating interest rate 5.47% at June 30, 2024 and 5.93% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Floating interest rate (percent) | 5.47% | 5.93% |
Senior Secured Notes | USD Senior Secured Term Loan A, due March 2026 (floating interest rate of 7.19% at June 30, 2024 and 7.50% at December 31, 2023) | ||
Debt Instrument [Line Items] | ||
Floating interest rate (percent) | 7.19% | 7.50% |
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due March 2026 (floating interest rate of 6.20% at June 30, 2024 and 6.42% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Floating interest rate (percent) | 6.20% | 6.42% |
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 7.19% at June 30, 2024 and 7.4% at December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Floating interest rate (percent) | 7.19% | 7.40% |
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 (floating interest rate of 6.13% at June 30, 2024 and 6.42% at December 31, 2023) | ||
Debt Instrument [Line Items] | ||
Floating interest rate (percent) | 6.13% | 6.42% |
Senior Notes | Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 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 | 6 Months Ended | |||||||
Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 15, 2021 USD ($) | May 23, 2019 | May 22, 2019 | Jan. 27, 2017 USD ($) | Jan. 27, 2017 EUR (€) | Jan. 27, 2017 AUD ($) | |
Debt Instrument [Line Items] | ||||||||
Total debt | $ 985.5 | $ 925.6 | ||||||
Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 575 | $ 575 | ||||||
Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, face amount | $ 320.8 | € 300 | ||||||
Maximum borrowing capacity | 100 | |||||||
Senior Secured Notes | Senior Secured Credit Facility Due January 2022 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed coverage ratio | 1.25 | |||||||
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] | ||||||||
Maximum consolidated leverage ratio | 4.5 | |||||||
Consolidated leverage ratio | 3.7 | |||||||
Senior Secured Notes | Senior Secured Credit Facility Due May 2024 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest coverage ratio | 3 | |||||||
Senior Notes | Senior Unsecured Notes, due March 2029 (fixed interest rate of 4.25%) | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, face amount | $ 575 | |||||||
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] | ||||||||
Credit agreement, maturity date | Mar. 31, 2026 | |||||||
Total debt | $ 90.1 | |||||||
Amount available for borrowings under Senior Secured Revolving Credit Facilities | 501.3 | |||||||
Letters of credit outstanding | $ 8.6 |
Long-term Debt and Short-term_6
Long-term Debt and Short-term Borrowings - Schedule of Applicable Rate and Undrawn Fee Based on Company's Consolidated Leverage Ratio (Details) - Secured Debt - Senior Secured Credit Facility Due March 2026 | 6 Months Ended |
Jun. 30, 2024 | |
> 4.50 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.50% |
> 4.50 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 2.50% |
> 4.50 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.50% |
≤ 4.50 to 1.00 and > 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.375% |
≤ 4.50 to 1.00 and > 4.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 2.25% |
≤ 4.50 to 1.00 and > 4.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.25% |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.35% |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 2% |
≤ 4.00 to 1.00 and > 3.50 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1% |
≤ 3.50 to 1.00 and > 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.30% |
≤ 3.50 to 1.00 and > 3.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.75% |
≤ 3.50 to 1.00 and > 3.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.75% |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.25% |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.50% |
≤ 3.00 to 1.00 and > 2.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.50% |
≤ 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Undrawn fee | 0.20% |
≤ 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.25% |
≤ 2.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.25% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 7.2 | $ 7.1 | $ 14.6 | $ 14.1 |
Sublease income | (0.7) | (0.7) | (1.6) | (1.3) |
Total lease cost | $ 6.5 | $ 6.4 | $ 13 | $ 12.8 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 14.8 | $ 14.8 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 12.7 | $ 7.1 |
Weighted average remaining lease term, operating leases (in years) | 5 years 9 months 18 days | |
Weighted average discount rate, operating leases (as a percentage) | 5.30% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments, Net of Sublease Income (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Operating Leases | |
2024 | $ 12.2 |
2025 | 24.5 |
2026 | 20.1 |
2027 | 15 |
2028 | 12.7 |
2029 | 10.2 |
Thereafter | 17.7 |
Total minimum lease payments | 112.4 |
Less imputed interest | 16.9 |
Future minimum payments for leases, net of sublease rental income and imputed interest | $ 95.5 |
Pension and Other Retiree Ben_3
Pension and Other Retiree Benefits - Net Periodic Benefit Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Pension | U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest cost | 1.9 | 2 | 3.8 | 4 | |
Expected return on plan assets | (3.2) | (3) | (6.4) | (6) | |
Amortization of net loss (gain) | 0.6 | 0.6 | 1.2 | 1.2 | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Settlement | [1] | 0 | 0 | 0 | 0 |
Net periodic benefit (income) cost | [2] | (0.7) | (0.4) | (1.4) | (0.8) |
Pension | International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0.2 | 0.1 | 0.4 | 0.2 | |
Interest cost | 4.6 | 5 | 9.2 | 9.9 | |
Expected return on plan assets | (4.9) | (5.4) | (9.7) | (10.7) | |
Amortization of net loss (gain) | 1.3 | 1.1 | 2.6 | 2.1 | |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.2 | |
Settlement | [1] | 4.4 | 0 | 4.4 | 0 |
Net periodic benefit (income) cost | [2] | 5.7 | 0.9 | 7 | 1.7 |
Post-retirement | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 0 | 0 | 0 | 0 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net loss (gain) | (0.1) | (0.1) | (0.2) | (0.2) | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Settlement | [1] | 0 | 0 | 0 | 0 |
Net periodic benefit (income) cost | [2] | $ (0.1) | $ (0.1) | $ (0.2) | $ (0.2) |
[1] Settlement of $ 4.4 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans being completed in the second quarter of 2024. The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension expense" in the Consolidated Statements of (Loss) Income . |
Pension and Other Retiree Ben_4
Pension and Other Retiree Benefits - Net Periodic Benefit Expense (Parenthetical) (Details) - Pension Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement | [1] | $ 4.4 | $ 0 | $ 4.4 | $ 0 |
[1] Settlement of $ 4.4 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans being completed in the second quarter of 2024. |
Pension and Other Retiree Ben_5
Pension and Other Retiree Benefits - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions to defined benefit plans for 2024 | $ 15.9 |
Contributions by company to date | $ 6.7 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.5 | $ 3.3 | $ 7.6 | $ 8.9 |
Stock option compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.1 | 0.2 | 0.3 | 2.1 |
RSU compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1.4 | 1.3 | 5 | 3.6 |
PSU compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1 | $ 1.8 | $ 2.3 | $ 3.2 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Jun. 30, 2024 shares | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options granted in period (shares) | 199,608 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Expense (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 0.3 |
Weighted Average Years Expense To Be Recognized Over | 8 months 12 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 9.8 |
Weighted Average Years Expense To Be Recognized Over | 2 years 3 months 18 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 6.6 |
Weighted Average Years Expense To Be Recognized Over | 1 year 10 months 24 days |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46.2 | $ 50.1 |
Work in process | 4.5 | 4.7 |
Finished goods | 279.3 | 272.7 |
Total inventories | $ 330 | $ 327.5 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
May 31, 2024 USD ($) | Jan. 01, 2024 Segment | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment TradeName Reportingunit | Jun. 30, 2023 USD ($) | Jun. 01, 2024 | Dec. 31, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Number of operating segments | Segment | 2 | 2 | ||||||
Number of reporting units | Reportingunit | 2 | |||||||
Amortization of intangibles | $ 10.9 | $ 11 | $ 21.5 | $ 21.9 | ||||
Goodwill impairment | $ 127.5 | 127.5 | 127.5 | |||||
Accumulated impairment losses | $ 530.8 | $ 530.8 | $ 403.3 | |||||
Indefinite-lived intangibles, impairment charge | $ 37.7 | |||||||
Number of indefinite-lived trade names | TradeName | 3 | |||||||
Finite lived intangible asset useful life | 30 years | |||||||
ACCO Brands International | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill impairment | $ 0 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Summary of Changes in Net Carrying Amount Goodwill By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
May 31, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 590 | ||
Goodwill impairment | $ (127.5) | $ (127.5) | (127.5) |
Foreign currency translation | (11.2) | ||
Ending balance | 451.3 | 451.3 | |
ACCO Brands Americas | |||
Goodwill [Roll Forward] | |||
Beginning balance | 383.6 | ||
Goodwill impairment | (127.5) | ||
Foreign currency translation | (1.5) | ||
Ending balance | 254.6 | 254.6 | |
ACCO Brands International | |||
Goodwill [Roll Forward] | |||
Beginning balance | 206.4 | ||
Goodwill impairment | 0 | ||
Foreign currency translation | (9.7) | ||
Ending balance | $ 196.7 | $ 196.7 |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Summary of Gross Carrying Value and Accumulated Amortization By Class of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | $ 1,087.2 | $ 950.1 | |
Amortizable intangible assets, Accumulated Amortization | (400.2) | (385) | |
Amortizable intangible assets, Net Book Value | 687 | 565.1 | |
Total identifiable intangibles | |||
Total identifiable intangible assets, Gross Carrying Amounts | 1,188.4 | 1,245.2 | |
Total identifiable intangibles, Accumulated Amortization | (444.7) | (429.5) | |
Total identifiable intangibles, Net Book Value | 743.7 | 815.7 | |
Trade Names | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | [1] | 639.8 | 497.1 |
Amortizable intangible assets, Accumulated Amortization | [1] | (148.9) | (142) |
Amortizable intangible assets, Net Book Value | [1] | 490.9 | 355.1 |
Customer and contractual relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 357 | 362.4 | |
Amortizable intangible assets, Accumulated Amortization | (226.4) | (221.3) | |
Amortizable intangible assets, Net Book Value | 130.6 | 141.1 | |
Vendor Relationships | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 82.4 | 82.4 | |
Amortizable intangible assets, Accumulated Amortization | (19.5) | (16.7) | |
Amortizable intangible assets, Net Book Value | 62.9 | 65.7 | |
Patents | |||
Amortizable intangible assets: | |||
Amortizable intangible assets, Gross Carrying Amounts | 8 | 8.2 | |
Amortizable intangible assets, Accumulated Amortization | (5.4) | (5) | |
Amortizable intangible assets, Net Book Value | 2.6 | 3.2 | |
Trade Names | |||
Indefinite-lived intangible assets: | |||
Indefinite-lived intangible assets, Gross Carrying Amount | [2] | 101.2 | 295.1 |
Indefinite-lived intangible asset, Accumulated Amortization | [2] | (44.5) | (44.5) |
Indefinite-lived intangible assets, Net Book Value | [2] | $ 56.7 | $ 250.6 |
[1] Reflects the change of two indefinite-lived trade names from indefinite-lived intangibles to amortizable intangible assets as of June 1, 2024. Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Amortization Expense and Estimated Future Amortization (Details) $ in Millions | Jun. 30, 2024 USD ($) | [1] |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Estimated amortization expense, 2024 | $ 45.1 | |
Estimated amortization expense, 2025 | 45.7 | |
Estimated amortization expense, 2026 | 43.6 | |
Estimated amortization expense, 2027 | 41.2 | |
Estimated amortization expense, 2028 | 39 | |
Estimated amortization expense, 2029 | $ 37.2 | |
[1] Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Reduction in the restructuring provision | $ (0.3) | $ 0 | $ (0.6) | |
Restructuring provision | $ (0.3) | $ 0 | $ (0.6) | $ 3.3 |
Restructuring - Summary of Acti
Restructuring - Summary of Activity in Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | $ 28.4 | $ 8.7 | ||||
Provision | $ (0.3) | $ 0 | (0.6) | 3.3 | ||
Cash expenditures | (9.2) | (5.4) | ||||
Non-cash Items/ Currency Change | (0.3) | 0.1 | ||||
Balance at end of period | 18.3 | 6.7 | 18.3 | 6.7 | ||
Employee termination costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | 27.5 | 8.7 | ||||
Provision | (0.9) | 2.6 | ||||
Cash expenditures | (8.6) | (5.3) | ||||
Non-cash Items/ Currency Change | (0.3) | 0.1 | ||||
Balance at end of period | 17.7 | [1] | 6.1 | 17.7 | [1] | 6.1 |
Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | 0.9 | 0 | ||||
Provision | 0.3 | 0.7 | ||||
Cash expenditures | (0.6) | (0.1) | ||||
Non-cash Items/ Currency Change | 0 | 0 | ||||
Balance at end of period | $ 0.6 | [2] | $ 0.6 | $ 0.6 | [2] | $ 0.6 |
[1] We expect the remaining $ 17.7 million employee termination costs to be substantially paid in the next twelve months . We expect the remaining $ 0.6 million of other costs to be substantially paid in the next nine months . |
Restructuring - Summary of Ac_2
Restructuring - Summary of Activity in Restructuring Liability (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 18.3 | $ 28.4 | $ 6.7 | $ 8.7 | |
Employee termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 17.7 | [1] | 27.5 | 6.1 | 8.7 |
Payment period for restructuring costs | 12 months | ||||
Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 0.6 | [2] | $ 0.9 | $ 0.6 | $ 0 |
Payment period for restructuring costs | 9 months | ||||
[1] We expect the remaining $ 17.7 million employee termination costs to be substantially paid in the next twelve months . We expect the remaining $ 0.6 million of other costs to be substantially paid in the next nine months . |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
May 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | |||||||||
Income tax (benefit) expense | $ (2.2) | $ 15.6 | $ (1.2) | $ 16 | |||||
Income (loss) before income tax | (127.4) | 42 | (132.7) | 38.7 | |||||
Increase (decrease) in income taxes | $ (17.8) | (17.2) | |||||||
Decrease in discrete income tax expense | (17) | (16.3) | |||||||
Non-cash charge for impairment of goodwill | $ 127.5 | $ 127.5 | $ 127.5 | ||||||
Minimum global tax | 15% | 15% | |||||||
Standard penalty cancellation percentage | 75% | ||||||||
Penalties, interest and other fees penalties | $ 13.3 | ||||||||
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 | 6 years | ||||||||
Foreign Tax Authority | Australian Taxation Office | |||||||||
Income Tax Examination [Line Items] | |||||||||
Open tax year | 2019 2020 2021 2022 2023 2024 | ||||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||||||
Income Tax Examination [Line Items] | |||||||||
Income tax (benefit) expense | $ (2.6) | ||||||||
Open tax year | 2018 2019 2020 2021 2022 2023 2024 | ||||||||
Income tax examination, interest expense | $ 0.4 | $ 1 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Additional reserve from a prior period | $ 5.6 | ||||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2012 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Unrecognized tax benefits | $ 44.5 | ||||||||
Potential tax adjustment related to related to acquisition purchase price | $ 43.3 | ||||||||
Foreign Tax Authority | Canada Revenue Agency | |||||||||
Income Tax Examination [Line Items] | |||||||||
Open tax year | 2020 2021 2022 2023 2024 | ||||||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | |||||||||
Income Tax Examination [Line Items] | |||||||||
Open tax year | 2019 2020 2021 2022 2023 2024 | ||||||||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | |||||||||
Income Tax Examination [Line Items] | |||||||||
Open tax year | 2021 2022 2023 2024 | ||||||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||||||||
Income Tax Examination [Line Items] | |||||||||
Open tax year | 2022 2023 2024 | ||||||||
Foreign Tax Authority | Other Noncurrent Liabilities | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2007 to 2010 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Unrecognized tax benefits | $ 19.5 | $ 19.5 | |||||||
State and Local Jurisdiction | Minimum | |||||||||
Income Tax Examination [Line Items] | |||||||||
Statutes of limitation, period | 2 years | ||||||||
State and Local Jurisdiction | Maximum | |||||||||
Income Tax Examination [Line Items] | |||||||||
Statutes of limitation, period | 6 years |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Common stock outstanding (in shares) | 95.8 | 94.9 | 95.8 | 94.9 |
Shares related to tax withholding for share-based compensation (in shares) | 0.4 | 0.3 | ||
Potentially dilutive shares excluded from computation of dilutive earnings per share (in shares) | 9.3 | 10.4 | 8.8 | 9.5 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Weighted-Average Number of Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||
Weighted-average number of common shares outstanding - basic (in shares) | 96.8 | 95.4 | 96.3 | 95.1 | |
Weighted-average number of common shares outstanding - diluted (in shares) | [1] | 96.8 | 96.3 | 96.3 | 96.7 |
Restricted stock units | |||||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment [Abstract] | |||||
Incremental dilutive common shares (in shares) | 0 | 0.9 | 0 | 1.6 | |
[1] As a result of the net loss for the three and six months ended June 30, 2024 and 2023 , diluted earnings per share does not include the effects of the stock awards for which the average market price for the period exceeds the exercised price, as their effect would have been anti-dilutive. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - Foreign exchange contracts - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
U.S. dollar equivalent notional value | $ 138,500,000 | $ 102,300,000 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
U.S. dollar equivalent notional value | $ 82,700,000 | $ 80,200,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 5.1 | $ 4.5 |
Derivative Liabilities | 4.8 | 4.9 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.7 | 0.3 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.4 | 1.6 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.6 | 1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.6 | 0.1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3.8 | 3.2 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 3.8 | $ 3.2 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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) | Other Nonoperating Income (Expense) |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ 0.6 | $ 1 | $ 1.6 | $ 0.4 |
Foreign exchange contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Reclassified from AOCI to Income (Effective Portion) | (0.5) | (0.3) | (0.9) | (0.8) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Recognized in Income | $ (3.4) | $ 1.3 | $ (2.1) | $ 3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward currency contracts, assets | $ 4.8 | $ 4.9 |
Forward currency contracts, liabilities | $ 5.1 | $ 4.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 985.5 | $ 925.6 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of total debt | $ 922.3 | $ 870.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at start of period | $ 787 |
Balance at end of period | 617.1 |
Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at start of period | (0.7) |
Other comprehensive (loss) income before reclassifications, net of tax | 1.2 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (0.6) |
Balance at end of period | (0.1) |
Foreign Currency Adjustments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at start of period | (349.8) |
Other comprehensive (loss) income before reclassifications, net of tax | (36.5) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 |
Balance at end of period | (386.3) |
Unrecognized Pension and Other Post-retirement Benefit Costs | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at start of period | (175.8) |
Other comprehensive (loss) income before reclassifications, net of tax | 0.8 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 5.5 |
Balance at end of period | (169.5) |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at start of period | (526.3) |
Other comprehensive (loss) income before reclassifications, net of tax | (34.5) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 4.9 |
Balance at end of period | $ (555.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Cost of products sold | $ 285.7 | $ 329.4 | $ 534.2 | $ 612.7 | |||
Other expense, net | 0.2 | 0.3 | 0.8 | (1.5) | |||
Income tax (benefit) expense | 2.2 | (15.6) | 1.2 | (16) | |||
Net Income (Loss) | (125.2) | $ (6.3) | 26.4 | $ (3.7) | (131.5) | 22.7 | |
Income (loss) before income tax | (127.4) | 42 | (132.7) | 38.7 | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Net Income (Loss) | (3.7) | (1.1) | (4.9) | (1.8) | |||
Unrecognized Pension and Other Post-retirement Benefit Costs | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Income tax (benefit) expense | 1.4 | 0.4 | 1.8 | 0.9 | |||
Net Income (Loss) | (4.1) | (1.3) | (5.5) | (2.4) | |||
Amortization of net actuarial loss | [1] | (5.4) | (1.6) | (7.2) | (3.1) | ||
Amortization of prior service cost | [1] | (0.1) | (0.1) | (0.1) | (0.2) | ||
Income (loss) before income tax | (5.5) | (1.7) | (7.3) | (3.3) | |||
Foreign exchange contracts | Derivative Financial Instruments | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Cost of products sold | 0.5 | 0.3 | 0.9 | 0.8 | |||
Income tax (benefit) expense | (0.1) | (0.1) | (0.3) | (0.2) | |||
Net Income (Loss) | $ 0.4 | $ 0.2 | $ 0.6 | $ 0.6 | |||
[1] These AOCI components are included in the computation of net periodic benefit (income) cost for pension and post-retirement plans including $ 3.6 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans in the second of 2024 . See "Note 5 . Pension and Other Retiree Benefits" for additional details. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Parenthetical) (Details) - Pension - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
United States | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net periodic benefit (income) cost | [1] | $ (0.7) | $ (0.4) | $ (1.4) | $ (0.8) |
International | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net periodic benefit (income) cost | [1] | 5.7 | $ 0.9 | $ 7 | $ 1.7 |
International | ACCO Brands International | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net periodic benefit (income) cost | $ 3.6 | ||||
[1] The components of net periodic benefit (income) cost, other than service cost, are included in the line "Non-operating pension expense" in the Consolidated Statements of (Loss) Income . |
Revenue Recognition - Service o
Revenue Recognition - Service or Extended Maintenance Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Unearned revenue associated with outstanding contracts | $ 2.9 | $ 2.9 | $ 2.9 |
Revenue recognized | $ 0.6 | $ 1.8 |
Revenue Recognition - Unearned
Revenue Recognition - Unearned Revenue (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
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]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unearned revenue | $ 0.5 |
Expected timing of satisfaction | 12 months |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | $ 438.3 | $ 493.6 | $ 797.2 | $ 896.2 |
Product and services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 429.8 | 483.1 | 778.7 | 873.4 | |
Product and services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 8.5 | 10.5 | 18.5 | 22.8 | |
ACCO Brands Americas | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 292.3 | 336.4 | 489.5 | 566.4 | |
ACCO Brands Americas | United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 224.9 | 262.1 | 362.2 | 418.1 | |
ACCO Brands Americas | Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 29.2 | 31.7 | 47.4 | 53.3 | |
ACCO Brands Americas | Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 38.2 | 42.6 | 79.9 | 95 | |
ACCO Brands International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 146 | 157.2 | 307.7 | 329.8 | |
ACCO Brands International | EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [2] | 115.5 | 125.7 | 244.7 | 261.5 |
ACCO Brands International | Australia/N.Z. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 23.2 | 24.1 | 48.3 | 52.4 | |
ACCO Brands International | Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 7.3 | $ 7.4 | $ 14.7 | $ 15.9 | |
[1] (2) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. (1) 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) - Segment | 6 Months Ended | |
Jan. 01, 2024 | Jun. 30, 2024 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 2 |
Information on Business Segme_4
Information on Business Segments - Net Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 438.3 | $ 493.6 | $ 797.2 | $ 896.2 |
ACCO Brands Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 292.3 | 336.4 | 489.5 | 566.4 |
ACCO Brands International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 146 | $ 157.2 | $ 307.7 | $ 329.8 |
Information on Business Segme_5
Information on Business Segments - Operating (Loss) Income by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Segment Reporting Information [Line Items] | |||||
Segment operating (loss) income | [1] | $ (111.2) | $ 55.2 | $ (105.3) | $ 65.3 |
Interest expense | 13.8 | 15.5 | 27.1 | 29.4 | |
Interest income | (2.2) | (2.2) | (4.1) | (4.6) | |
Non-operating pension expense | 4.8 | 0.2 | 5.2 | 0.3 | |
Other (income) expense, net | (0.2) | (0.3) | (0.8) | 1.5 | |
(Loss) income before income tax | (127.4) | 42 | (132.7) | 38.7 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating (loss) income | (100.9) | 67.5 | (82) | 89.5 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating (loss) income | (10.3) | (12.3) | (23.3) | (24.2) | |
ACCO Brands Americas | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating (loss) income | (108.7) | 60.4 | (102.6) | 72.7 | |
ACCO Brands International | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating (loss) income | $ 7.8 | $ 7.1 | $ 20.6 | $ 16.8 | |
[1] Operating (loss) income is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; v) less restructuring; and vi) less change in the fair value of contingent consideration. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | ||||
Income tax expense (benefit) | $ (2.2) | $ 15.6 | $ (1.2) | $ 16 |
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||
Loss Contingencies [Line Items] | ||||
Tax credits | 1.9 | |||
Income tax expense (benefit) | $ (2.6) |