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Information On Business Segments | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Information on Business Segments | 17. Information on Business Segments The Company has three operating business segments each of which is comprised of different geographic regions. The Company's three segments are as follows:
Operating Segment |  | Geography
ACCO Brands North America |  | United States and Canada
ACCO Brands EMEA |  | Europe, Middle East and Africa
ACCO Brands International |  | Australia/N.Z., Latin America and Asia-Pacific
Each of the Company's three operating segments designs, markets, sources, manufactures and sells recognized consumer and other end-user demanded branded products used in businesses, schools and homes. Product designs are tailored based on end-user preferences in each geographic region. Our product categories include storage and organization; stapling; punching; laminating, binding and shredding machines and related consumable supplies; whiteboards; notebooks; calendars; computer accessories; and do-it-yourself tools, among others. Our portfolio of consumer and other end-user demanded brands includes both globally and regionally recognized brands. Customers We distribute our products through a wide variety of retail and commercial channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop. These channels include mass retailers; e-tailers; discount, drug/grocery and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; and contract stationers. We also sell directly to commercial and consumer end-users through our e-commerce platform and our direct sales organization. ACCO Brands North America The ACCO Brands North America segment is comprised of the United States and Canada where the Company is a leading branded supplier of consumer and business products under brands such as AT-A-GLANCE®, Five Star®, GBC®, Hilroy®, Kensington®, Mead®, Quartet®, and Swingline®. The ACCO Brands North America segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, and computer accessories, among others, which are primarily used in schools, homes and businesses. The majority of revenue in this segment is related to consumer and home products and is associated with the "back-to-school" season and year-end calendar purchases. We expect sales of consumer products to become an increasingly greater percentage of our revenue as demand for consumer products is faster growing than most business-related products. ACCO Brands EMEA The ACCO Brands EMEA segment is comprised largely of Europe, but also includes export sales to the Middle East and Africa. The Company is a leading branded supplier of consumer and business products under brands such as Derwent®, Esselte®, GBC®, Kensington®, Leitz®, NOBO®, Rapid®, and Rexel®. The ACCO Brands EMEA segment designs, manufactures or sources and distributes storage and organization products (such as lever-arch binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, do-it-yourself tools, and computer accessories, among others, which are primarily used in businesses, homes and schools. ACCO Brands International The ACCO Brands International segment is comprised of Australia/N.Z., Latin America and Asia-Pacific where the Company is a leading branded supplier of consumer and business products under brands such as Artline®, Barrilito®, GBC®, Kensington®, Marbig®, Quartet®, Rexel®, Tilibra®, and Wilson Jones®, among others. The ACCO Brands International segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, writing instruments, and janitorial supplies, among others, which are primarily used in schools, businesses and homes. The majority of revenue in this segment is related to consumer products and is associated with the "back-to-school" season and year-end calendar purchases. We expect sales of consumer products to become an increasingly greater percentage of our revenue as demand for consumer products is faster growing than most business-related products. Net sales by business segment for the three and six months ended June 30, 2019 and 2018 were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2019 |  | 2018 |  | 2019 |  | 2018
ACCO Brands North America | $ | 307.9 |  |  | $ | 282.8 |  |  | $ | 468.3 |  |  | $ | 448.4 |
ACCO Brands EMEA | 128.3 |  |  | 140.5 |  |  | 274.8 |  |  | 295.0 |
ACCO Brands International | 82.5 |  |  | 75.5 |  |  | 169.5 |  |  | 161.2 |
Net sales | $ | 518.7 |  |  | $ | 498.8 |  |  | $ | 912.6 |  |  | $ | 904.6 |
Operating income by business segment for the three and six months ended June 30, 2019 and 2018 was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2019 |  | 2018 |  | 2019 |  | 2018
ACCO Brands North America | $ | 60.6 |  |  | $ | 51.5 |  |  | $ | 67.4 |  |  | $ | 54.4 |
ACCO Brands EMEA | 7.4 |  |  | 8.4 |  |  | 23.3 |  |  | 22.5 |
ACCO Brands International | 4.1 |  |  | 3.3 |  |  | 9.7 |  |  | 9.1 |
Segment operating income | 72.1 |  |  | 63.2 |  |  | 100.4 |  |  | 86.0 |
Corporate | (10.7 | ) |  | (11.4 | ) |  | (21.1 | ) |  | (22.5 | )
Operating income(1) | 61.4 |  |  | 51.8 |  |  | 79.3 |  |  | 63.5 |
Interest expense | 11.7 |  |  | 9.9 |  |  | 22.1 |  |  | 19.3 |
Interest income | (1.3 | ) |  | (1.4 | ) |  | (2.2 | ) |  | (2.4 | )
Non-operating pension income | (1.4 | ) |  | (2.3 | ) |  | (2.8 | ) |  | (4.5 | )
Other expense, net | 1.2 |  |  | 1.6 |  |  | 1.0 |  |  | 1.0 |
Income before income tax | $ | 51.2 |  |  | $ | 44.0 |  |  | $ | 61.2 |  |  | $ | 50.1 |
(1) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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