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Information on Business Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Information on Business Segments

16. 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

 

Primary Brands

 

Primary Products

ACCO Brands North America

 

United States and Canada

 

PowerA®, Five Star®, AT-A-GLANCE®, Quartet®, Kensington®, Swingline®, GBC®, Mead®, Hilroy®

 

Computer and gaming accessories, school products, planners, storage and organization, dry erase boards and accessories, laminating, stapling and punching products.

 

 

 

 

 

 

 

ACCO Brands EMEA

 

Europe, Middle East and Africa

 

Leitz®, Rapid®, Kensington®, Esselte®, Rexel®, PowerA®, GBC®, NOBO®, Derwent®

 

Storage and organization products (lever-arch binders, sheet protectors, indexes), computer and gaming accessories, stapling, punching, shredding, laminating, do-it-yourself tools, dry erase boards and writing and art products.

 

 

 

 

 

 

 

ACCO Brands International

 

Australia/N.Z., Latin America and Asia-Pacific

 

Tilibra®, GBC®, Kensington®, Marbig®, Foroni®, Barrilito®, Artline®*, PowerA®, Spirax®

*Australia/N.Z. only

 

School notebooks, storage and organization products (binders, sheet protectors and indexes), computer and gaming accessories, laminating, shredding, writing and arts products, janitorial supplies, dry erase boards, stapling and punching 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 nine months ended September 30, 2023 and 2022 were as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in millions)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

ACCO Brands North America

$

 

218.9

 

$

 

257.2

 

 $

 

688.2

 

 $

 

772.3

 

ACCO Brands EMEA

 

 

126.6

 

 

 

130.3

 

 

 

388.1

 

 

 

424.3

 

ACCO Brands International

 

 

102.5

 

 

 

98.1

 

 

 

267.9

 

 

 

251.6

 

Net sales

$

 

448.0

 

$

 

485.6

 

 $

 

1,344.2

 

 $

 

1,448.2

 

 

Operating income (loss) by business segment for the three and nine months ended September 30, 2023 and 2022 was as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in millions)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

ACCO Brands North America

$

 

19.9

 

 $

 

(78.4

)

 $

 

80.2

 

 $

 

(13.8

)

ACCO Brands EMEA

 

 

6.9

 

 

 

4.9

 

 

 

20.4

 

 

 

9.0

 

ACCO Brands International

 

 

16.4

 

 

 

17.3

 

 

 

32.1

 

 

 

27.8

 

Segment operating income (loss)

 

 

43.2

 

 

 

(56.2

)

 

 

132.7

 

 

 

23.0

 

Change in fair value of contingent consideration

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

9.0

 

Corporate

 

 

(11.0

)

 

 

(9.0

)

 

 

(35.2

)

 

 

(32.8

)

Operating income (loss)(1)

 

 

32.2

 

 

 

(63.0

)

 

 

97.5

 

 

 

(0.8

)

Interest expense

 

 

15.6

 

 

 

12.1

 

 

 

45.0

 

 

 

32.6

 

Interest income

 

 

(1.6

)

 

 

(2.6

)

 

 

(6.2

)

 

 

(6.2

)

Non-operating pension expense (income)

 

 

0.2

 

 

 

(0.5

)

 

 

0.5

 

 

 

(3.2

)

Other income, net

 

 

(3.6

)

 

 

(7.4

)

 

 

(2.1

)

 

 

(10.2

)

Income (loss) before income tax

$

 

21.6

 

 $

 

(64.6

)

 $

 

60.3

 

 $

 

(13.8

)

 

(1)
Operating income (loss) 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 charges; and vi) less change in the fair value of contingent consideration.