XML 42 R29.htm IDEA: XBRL DOCUMENT v3.24.0.1
Information on Business Segments
 12 Months Ended
Dec. 31, 2023
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 operating 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 and stapling and punching products

 

Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and business branded products used in schools, homes and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing.

 

Our product categories include gaming and computer accessories; storage and organization; notebooks; shredding; laminating and binding machines; stapling; punching; planners; dry erase boards; and do-it-yourself tools, among others. Our portfolio includes both globally and regionally recognized brands.

 

Beginning on January 1, 2024, the Company will reorganize our previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. The Americas will include the U.S., Canada, Brazil, Mexico and Chile and the International reportable segment will include EMEA, Australia, New Zealand and Asia. This change will simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply change optimization, global footprint rationalization, and better leverage of our sourcing capabilities. The Company will recast prior period comparable results in early 2024 to reflect this operating segment change.

 

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, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, contract stationers, and specialist technology businesses. We also sell directly through e-commerce sites and our direct sales organization.

 

Net sales by reportable business segment for the years ended December 31, 2023, 2022, and 2021 were as follows:

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

ACCO Brands North America

 

$

887.2

 

 

$

998.0

 

 

$

1,042.4

 

ACCO Brands EMEA

 

 

547.2

 

 

 

580.3

 

 

 

662.9

 

ACCO Brands International

 

 

398.4

 

 

 

369.3

 

 

 

320.0

 

Net sales

 

$

1,832.8

 

 

$

1,947.6

 

 

$

2,025.3

 

 

Operating (loss) income by reportable business segment for the years ended December 31, 2023, 2022, and 2021 was as follows:

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

ACCO Brands North America

 

$

(5.9

)

 

$

(4.9

)

 

$

121.9

 

ACCO Brands EMEA

 

 

38.7

 

 

 

21.7

 

 

 

61.7

 

ACCO Brands International

 

 

60.7

 

 

 

50.5

 

 

 

31.6

 

Segment operating (loss) income

 

 

93.5

 

 

 

67.3

 

 

 

215.2

 

Change in fair value of contingent consideration

 

 

—

 

 

 

9.0

 

 

 

(19.0

)

Corporate(1)

 

 

(48.8

)

 

 

(41.5

)

 

 

(45.2

)

Operating income(2)

 

 

44.7

 

 

 

34.8

 

 

 

151.0

 

Interest expense

 

 

58.6

 

 

 

45.6

 

 

 

46.3

 

Interest income

 

 

(7.1

)

 

 

(8.3

)

 

 

(1.9

)

Non-operating pension expense (income)

 

 

1.8

 

 

 

(4.5

)

 

 

(7.9

)

Other expense (income), net

 

 

4.5

 

 

 

(12.9

)

 

 

3.1

 

(Loss) income before income tax

 

$

(13.1

)

 

$

14.9

 

 

$

111.4

 

 

(1)
Corporate operating loss in 2021 includes transaction costs of $0.2 million primarily for legal and due diligence expenditures associated with acquisitions.
(2)
Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less SG&A expenses; iv) less amortization of intangibles; v) less restructuring charges; and vi) less change in the fair value of contingent consideration.

 

The following table presents the measure of reportable business segment assets used by the Company’s chief operating decision maker as of December 31, 2023 and 2022:

 

(in millions)

 

2023

 

 

2022

 

ACCO Brands North America(3)

 

$

401.4

 

 

$

459.2

 

ACCO Brands EMEA(3)

 

 

217.1

 

 

 

236.0

 

ACCO Brands International(3)

 

 

338.5

 

 

 

308.4

 

  Total segment assets

 

 

957.0

 

 

 

1,003.6

 

Unallocated assets

 

 

1,684.2

 

 

 

1,787.2

 

Corporate(3)

 

 

3.6

 

 

 

3.9

 

  Total assets

 

$

2,644.8

 

 

$

2,794.7

 

 

(3)
Represents total assets, excluding goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases.

 

As a supplement to the presentation of reportable business segment assets presented above, the table below presents reportable business segment assets, including right of use asset, leases, the allocation of identifiable intangible assets and goodwill resulting from business combinations as of December 31, 2023 and 2022:

 

(in millions)

 

2023

 

 

2022

 

ACCO Brands North America(4)

 

$

1,190.7

 

 

$

1,359.9

 

ACCO Brands EMEA(4)

 

 

568.7

 

 

 

588.4

 

ACCO Brands International(4)

 

 

603.4

 

 

 

573.8

 

  Total segment assets

 

 

2,362.8

 

 

 

2,522.1

 

Unallocated assets

 

 

278.4

 

 

 

268.7

 

Corporate(4)

 

 

3.6

 

 

 

3.9

 

  Total assets

 

$

2,644.8

 

 

$

2,794.7

 

 

(4)
Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs.

 

Capital spend by reportable business segment for the years ended December 31, 2023, 2022, and 2021 was as follows:

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

ACCO Brands North America

 

$

4.0

 

 

$

8.8

 

 

$

11.2

 

ACCO Brands EMEA

 

 

6.8

 

 

 

4.7

 

 

 

7.3

 

ACCO Brands International

 

 

4.5

 

 

 

4.2

 

 

 

2.7

 

  Total capital spend

 

$

15.3

 

 

$

17.7

 

 

$

21.2

 

 

Depreciation expense by reportable business segment for the years ended December 31, 2023, 2022, and 2021 was as follows:

 

(in millions)

 

2023

 

 

2022

 

 

2021

 

ACCO Brands North America

 

$

16.8

 

 

$

20.1

 

 

$

20.7

 

ACCO Brands EMEA

 

 

10.9

 

 

 

12.6

 

 

 

13.1

 

ACCO Brands International

 

 

5.0

 

 

 

5.2

 

 

 

5.6

 

  Total depreciation

 

$

32.7

 

 

$

37.9

 

 

$

39.4

 

 

 

Property, plant and equipment, net by reportable business segment as of December 31, 2023, 2022 was as follows:

 

(in millions)

 

2023

 

 

2022

 

U.S.

 

$

68.2

 

 

$

82.3

 

Canada

 

 

1.5

 

 

 

1.7

 

ACCO Brands North America

 

 

69.7

 

 

 

84.0

 

 

 

 

 

 

 

 

ACCO Brands EMEA

 

 

60.9

 

 

 

62.9

 

 

 

 

 

 

 

 

Australia/N.Z.

 

 

9.5

 

 

 

10.0

 

Latin America

 

 

29.1

 

 

 

26.6

 

Asia-Pacific

 

 

0.9

 

 

 

1.6

 

ACCO Brands International

 

 

39.5

 

 

 

38.2

 

  Property, plant and equipment, net

 

$

170.1

 

 

$

185.1

 

 

Top Customers

 

Net sales to our five largest customers totaled $609.0 million, $663.3 million and $720.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. No customer exceeded 10 percent of net sales for the years ended December 31, 2023, 2022 and 2021.

 

As of December 31, 2023 and 2022, our top five trade accounts receivable totaled $138.1 million and $125.6 million, respectively.