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Revenue Recognition
 3 Months Ended
Mar. 31, 2023
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, 2022, there was $2.8 million of unearned revenue associated with outstanding EMAs, primarily reported in "Other current liabilities." During the three months ended March 31, 2023, $1.2 million of the unearned revenue was earned and recognized. As of March 31, 2023, the amount of unearned revenue from EMAs was $2.8 million. We expect to earn and recognize approximately $2.4 million of the unearned amount in the next 12 months and $0.4 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 months ended March 31, 2023 and 2022:

 

 

 

Three Months Ended March 31,

 

(in millions)

 

2023

 

 

2022

 

United States

$

 

155.1

 

$

 

188.5

 

Canada

 

 

21.6

 

 

 

20.0

 

ACCO Brands North America

 

 

176.7

 

 

 

208.5

 

 

 

 

 

 

 

 

ACCO Brands EMEA(2)

 

 

135.8

 

 

 

156.1

 

 

 

 

 

 

 

 

Australia/N.Z.

 

 

28.3

 

 

 

30.0

 

Latin America

 

 

52.4

 

 

 

34.4

 

Asia-Pacific

 

 

9.4

 

 

 

12.6

 

ACCO Brands International

 

 

90.1

 

 

 

77.0

 

Net sales

$

 

402.6

 

$

 

441.6

 

 

(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)

 

2023

 

 

2022

 

Product and services transferred at a point in time

$

 

390.3

 

$

 

429.3

 

Product and services transferred over time

 

 

12.3

 

 

 

12.3

 

Net sales

$

 

402.6

 

$

 

441.6