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Information on Business Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Information on Business Segments

16. Information on Business Segments

 

Effective January 1, 2024, the Company reorganized its previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. The Americas includes the U.S., Canada, Brazil, Mexico and Chile and International includes EMEA, Australia, New Zealand and Asia. The new organizational structure aligns with how the Chief Operating Decision Maker ("CODM") analyzes and evaluates the Company's performance. 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. Prior period results have been reclassified to reflect this change in our operating segments.

 

The Company's two segments are as follows:

 

Operating Segment

 

Geography

 

Primary Brands

 

Primary Products

ACCO Brands Americas

 

United States, Canada and Latin America

 

Five Star®, PowerA®, Tilibra®, AT-A-GLANCE®, Kensington®, Quartet®, GBC®, Mead®, Swingline®, Barrilito®, Foroni® and Hilroy®

 

Note taking products, computer and gaming accessories; planners; workspace machines, tools and essentials and dry erase boards and accessories.

 

 

 

 

 

 

 

ACCO Brands International

 

EMEA, Australia/N.Z., and Asia

 

Leitz®, Rapid®, Kensington®, Esselte®, Rexel®, PowerA®, GBC®, NOBO®, Franken®, Derwent®, Marbig®, Artline®* and Spirax®

*Australia/N.Z. only

 

Filing and organization products; workspace machines, tools and essentials; computer and gaming accessories; dry erase boards and accessories; and writing and art 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 months ended March 31, 2024 and 2023 were as follows:

 

(in millions)

 

2024

 

 

2023

 

ACCO Brands Americas

 

$

197.2

 

 

$

230.0

 

ACCO Brands International

 

 

161.7

 

 

 

172.6

 

Net sales

 

$

358.9

 

 

$

402.6

 

 

Operating income by business segment for the three months ended March 31, 2024 and 2023 was as follows:

 

(in millions)

 

2024

 

 

2023

 

ACCO Brands Americas

 

$

6.1

 

 

$

12.3

 

ACCO Brands International

 

 

12.8

 

 

 

9.7

 

Segment operating income

 

 

18.9

 

 

 

22.0

 

Corporate

 

 

(13.0

)

 

 

(11.9

)

Operating income(1)

 

 

5.9

 

 

 

10.1

 

Interest expense

 

 

13.3

 

 

 

13.9

 

Interest income

 

 

(1.9

)

 

 

(2.4

)

Non-operating pension expense

 

 

0.4

 

 

 

0.1

 

Other (income) expense, net

 

 

(0.6

)

 

 

1.8

 

Loss before income tax

 

$

(5.3

)

 

$

(3.3

)

 

(1)
Operating income 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.

 

The following table presents the measure of reportable business segment assets used by the Company’s CODM as of March 31, 2024 and December 31, 2023:

 

(in millions)

 

2024

 

 

2023

 

ACCO Brands Americas(2)

 

$

548.3

 

 

$

648.7

 

ACCO Brands International(2)

 

 

283.2

 

 

 

308.3

 

  Total segment assets

 

 

831.5

 

 

 

957.0

 

Unallocated assets

 

 

1,708.2

 

 

 

1,684.2

 

Corporate(2)

 

 

3.9

 

 

 

3.6

 

  Total assets

 

$

2,543.6

 

 

$

2,644.8

 

 

(2)
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 March 31, 2024 and December 31, 2023:

 

(in millions)

 

2024

 

 

2023

 

ACCO Brands Americas(3)

 

$

1,516.0

 

 

$

1,624.6

 

ACCO Brands International(3)

 

 

690.7

 

 

 

738.5

 

  Total segment assets

 

 

2,206.7

 

 

 

2,363.1

 

Unallocated assets

 

 

333.3

 

 

 

278.4

 

Corporate(3)

 

 

3.6

 

 

 

3.3

 

  Total assets

 

$

2,543.6

 

 

$

2,644.8

 

 

(3)
Represents total assets, excluding intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs.