16. Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount reflective of the consideration we expect to be received in exchange for those goods or services. Taxes we collect concurrent with revenue producing activities are excluded from revenue. Incidental items incurred that are immaterial in the context of the contract are expensed.

At the inception of each contract, the Company assesses the products and services promised and identifies each distinct performance obligation. To identify the performance obligations, the Company considers all products and services promised regardless of whether they are explicitly stated or implied within the contract or by standard business practices.

Freight and distribution activities performed before the customer obtains control of the goods are not considered promised services under customer contracts and therefore are not distinct performance obligations. The Company has chosen to account for shipping and handling activities as a fulfillment activity, and therefore accrues the expense of freight and distribution in "Cost of products sold" when product is shipped.

Service or Extended Maintenance Agreements ("EMAs") As of December 31, 2018, there was $5.0 million of unearned revenue associated with outstanding EMAs, primarily reported in "Other current liabilities." During the three months ended March 31, 2019, $1.6 million of the unearned revenue was recognized. As of March 31, 2019, the amount of unearned revenue was $5.4 million. We expect to recognize approximately $4.1 million of the unearned amount in the next 12 months and $1.3 million in future periods beyond the next 12 months.

The following tables presents our net sales disaggregated by regional geography⁽¹⁾, based upon our reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31,
(in millions)	2019		2018
United States	$	140.0	$	144.4
Canada	20.4		21.2
ACCO Brands North America	160.4		165.6

ACCO Brands EMEA⁽²⁾	146.5		154.5

Australia/N.Z.	32.9		39.8
Latin America	42.3		33.5
Asia-Pacific	11.8		12.4
ACCO Brands International	87.0		85.7
Net sales	$	393.9	$	405.8

(1) Net sales are attributed to geographic areas based on the location of the selling subsidiaries.

(2) ACCO Brands EMEA is comprised largely of Europe, but also includes export sales to the Middle East and Africa.



	Three Months Ended March 31,
(in millions)	2019		2018
Product and services transferred at a point in time	$	373.4	$	391.4
Product and services transferred over time	20.5		14.4
Net sales	$	393.9	$	405.8