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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
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.

 

Service or Extended Maintenance Agreements ("EMAs"). As of December 31, 2021, there was $2.4 million of unearned revenue associated with outstanding EMAs, primarily reported in "Other current liabilities." During the three and nine months ended September 30, 2022, $1.4 million and $1.8 million of the unearned revenue was earned and recognized, respectively. As of September 30, 2022, the amount of unearned revenue from EMAs was $3.0 million. We expect to earn and recognize approximately $2.5 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(1), by reporting business segments and our net sales disaggregated by the timing of revenue recognition for the three and nine months ended September 30, 2022 and 2021:

 

 

 

Three months ended September 30,

 

 

Nine Months Ended September 30,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

United States

$

 

221.8

 

$

 

253.9

 

$

 

684.7

 

$

 

685.5

 

Canada

 

 

35.4

 

 

 

33.6

 

 

 

87.6

 

 

 

85.9

 

ACCO Brands North America

 

 

257.2

 

 

 

287.5

 

 

 

772.3

 

 

 

771.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCO Brands EMEA(2)

 

 

130.3

 

 

 

161.1

 

 

 

424.3

 

 

 

475.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Australia/N.Z.

 

 

32.8

 

 

 

35.3

 

 

 

89.0

 

 

 

96.8

 

Latin America

 

 

53.6

 

 

 

30.8

 

 

 

124.5

 

 

 

72.2

 

Asia-Pacific

 

 

11.7

 

 

 

12.0

 

 

 

38.1

 

 

 

39.6

 

ACCO Brands International

 

 

98.1

 

 

 

78.1

 

 

 

251.6

 

 

 

208.6

 

Net sales

$

 

485.6

 

$

 

526.7

 

$

 

1,448.2

 

$

 

1,455.0

 

 

(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 September 30,

 

 

Nine Months Ended September 30,

 

(in millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Product and services transferred at a point in time

$

 

473.6

 

$

 

515.4

 

$

 

1,411.3

 

$

 

1,416.0

 

Product and services transferred over time

 

 

12.0

 

 

 

11.3

 

 

 

36.9

 

 

 

39.0

 

Net sales

$

 

485.6

 

$

 

526.7

 

$

 

1,448.2

 

$

 

1,455.0