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Goodwill and Identifiable Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Identifiable Intangible Assets | 9. Goodwill and Identifiable Intangible Assets Goodwill We test goodwill for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The result of our annual qualitative assessment performed during the second quarter, as of our measurement date of May 31, 2023, was that there were no triggering events that would make it more likely than no t that an impairment loss to our goodwill had been incurred in our North America, International and EMEA reporting units. During the fourth quarter of 2023, our forecasted cash flows for our North America reporting unit further declined, including lower demand for our technology accessories, due to a weaker macroeconomic environment as well as tight inventory management by retail customers. As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of December 31, 2023, we completed an impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $89.5 million. The result of our assessments for the International and EMEA reporting units was that the fair value of each exceeded its carrying values by approximately ten percent and greater than fifty percent, respectively, and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both a discounted cash flows and market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, we may be required to record additional goodwill impairment charges in future periods. Changes in the net carrying amount of goodwill by segment were as follows:
(in millions) |  | ACCO Brands North America |  |  | ACCO Brands EMEA |  |  | ACCO Brands International |  |  | Total |
Balance at December 31, 2021 |  | $ | 446.7 |  |  | $ | 178.6 |  |  | $ | 177.2 |  |  | $ | 802.5 |
Goodwill impairment |  |  | (98.7 | ) |  |  | — |  |  |  | — |  |  |  | (98.7 | )
Foreign currency translation |  |  | — |  |  |  | (33.0 | ) |  |  | 0.7 |  |  |  | (32.3 | )
Balance at December 31, 2022 |  | $ | 348.0 |  |  | $ | 145.6 |  |  | $ | 177.9 |  |  | $ | 671.5 |
Goodwill impairment |  |  | (89.5 | ) |  |  | — |  |  |  | — |  |  |  | (89.5 | )
Foreign currency translation |  |  | — |  |  |  | 6.7 |  |  |  | 1.3 |  |  |  | 8.0 |
Balance at December 31, 2023 |  | $ | 258.5 |  |  | $ | 152.3 |  |  | $ | 179.2 |  |  | $ | 590.0 |
Identifiable Intangibles The Company's gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2023 and 2022 were as follows:
|  | December 31, 2023 |  |  | December 31, 2022 |
(in millions) |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names(1) |  | $ | 295.1 |  |  | $ | (44.5 | ) |  | $ | 250.6 |  |  | $ | 410.6 |  |  | $ | (44.5 | ) |  | $ | 366.1 |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 497.1 |  |  |  | (142.0 | ) |  |  | 355.1 |  |  |  | 369.7 |  |  |  | (123.0 | ) |  |  | 246.7 |
Customer and contractual relationships |  |  | 362.4 |  |  |  | (221.3 | ) |  |  | 141.1 |  |  |  | 356.9 |  |  |  | (198.2 | ) |  |  | 158.7 |
Vendor relationships |  |  | 82.4 |  |  |  | (16.7 | ) |  |  | 65.7 |  |  |  | 82.4 |  |  |  | (11.2 | ) |  |  | 71.2 |
Patents |  |  | 8.2 |  |  |  | (5.0 | ) |  |  | 3.2 |  |  |  | 8.1 |  |  |  | (3.8 | ) |  |  | 4.3 |
Subtotal |  |  | 950.1 |  |  |  | (385.0 | ) |  |  | 565.1 |  |  |  | 817.1 |  |  |  | (336.2 | ) |  |  | 480.9 |
Total identifiable intangibles |  | $ | 1,245.2 |  |  | $ | (429.5 | ) |  | $ | 815.7 |  |  | $ | 1,227.7 |  |  | $ | (380.7 | ) |  | $ | 847.0 |
(1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. The Company’s intangible amortization expense was $43.4 million, $41.5 million and $46.3 million for the years ended December 31, 2023, 2022, and 2021, respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows:
(in millions) |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |
Estimated amortization expense(2) |  | $ | 42.1 |  |  | $ | 40.5 |  |  | $ | 38.4 |  |  | $ | 36.0 |  |  | $ | 33.8 |
(2) Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. We test indefinite-lived intangibles for impairment at least annually as of our measurement date of May 31st and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, for our indefinite-lived trade names in the second quarter of 2023 and concluded that no impairment loss had been incurred. Effective January 1, 2023, we changed the indefinite-lived Leitz® trade name to an amortizable intangible asset and began amortizing the trade name on a straight-line basis over a life of 30 years. The change was made as a result of decisions regarding the Company's future use of the trade name.

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