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Information on Operating Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Information on Operating Segments

17. Information on Operating Segments

 

Effective January 1, 2024, the Company reorganized into two operating segments, the Americas and International. The Americas includes the U.S., Canada, Brazil, Mexico and Chile, and International includes EMEA, Australia, New Zealand and Asia. Prior period results have been reclassified to reflect this change in our operating segments.

 

The new organization structure aligns with how our Chief Operating Decision Maker ("CODM"), Thomas W. Tedford, President and Chief Executive Officer, analyzes and evaluates the Company's performance. The CODM reviews discrete financial results at the operating segment level to assess performance and allocate resources. This includes net revenue, gross margins, operating income, restructuring expense, components of working capital investments, and other ratio performance metrics. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

 

The Company's two operating 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.

 

Each operating 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.

 

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.

 

The operating results regularly provided to the CODM for our operating segments for the years ended December 31, 2024, 2023 and 2022 were as follows:

 

 

Twelve Months Ended December 31, 2024

 

 

ACCO Brands Americas

 

ACCO Brands International

 

Total

 

Net sales

$

999.9

 

$

666.3

 

$

1,666.2

 

Cost of products sold

 

666.0

 

 

444.8

 

 

1,110.8

 

Gross profit

 

333.9

 

 

221.5

 

 

555.4

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

115.2

 

 

91.5

 

 

206.7

 

Administrative expenses(2)

 

64.9

 

 

51.9

 

 

116.8

 

Restructuring

 

6.5

 

 

6.9

 

 

13.4

 

Impairment of goodwill and intangible assets

 

165.2

 

 

—

 

 

165.2

 

All other(3)

 

27.6

 

 

17.1

 

 

44.7

 

Segment operating (loss) income

 

(45.5

)

 

54.1

 

 

8.6

 

Corporate expense

 

 

 

 

 

45.6

 

Total consolidated operating loss

 

 

 

 

 

(37.0

)

Interest expense (income), net

 

 

 

 

 

45.1

 

Non-operating pension expense

 

 

 

 

 

6.1

 

Other (income) expense, net

 

 

 

 

 

(0.9

)

Loss before income tax

 

 

 

 

$

(87.3

)

 

 

Twelve Months Ended December 31, 2023

 

 

ACCO Brands Americas

 

ACCO Brands International

 

Total

 

Net Sales

$

1,135.7

 

$

697.1

 

$

1,832.8

 

Cost of products sold

 

761.7

 

 

472.8

 

 

1,234.5

 

Gross profit

 

374.0

 

 

224.3

 

 

598.3

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

123.7

 

 

94.2

 

 

217.9

 

Administrative expenses(2)

 

75.2

 

 

52.3

 

 

127.5

 

Restructuring

 

16.7

 

 

9.9

 

 

26.6

 

Impairment of goodwill and intangible assets

 

89.5

 

 

—

 

 

89.5

 

All other(3)

 

25.0

 

 

18.3

 

 

43.3

 

Segment operating income

 

43.9

 

 

49.6

 

 

93.5

 

Corporate expense

 

 

 

 

 

48.8

 

Total consolidated operating income

 

 

 

 

 

44.7

 

Interest expense (income), net

 

 

 

 

 

51.5

 

Non-operating pension expense

 

 

 

 

 

1.8

 

Other expense (income), net

 

 

 

 

 

4.5

 

Loss before income tax

 

 

 

 

$

(13.1

)

 

 

 

Twelve Months Ended December 31, 2022

 

 

ACCO Brands Americas

 

ACCO Brands International

 

Total

 

Net Sales

$

1,200.4

 

$

747.2

 

$

1,947.6

 

Cost of products sold

 

845.9

 

 

549.4

 

 

1,395.3

 

Gross profit

 

354.5

 

 

197.8

 

 

552.3

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

132.0

 

 

90.1

 

 

222.1

 

Administrative expenses(2)

 

64.2

 

 

49.4

 

 

113.6

 

Restructuring

 

6.0

 

 

3.4

 

 

9.4

 

Impairment of goodwill and intangible assets

 

98.7

 

 

—

 

 

98.7

 

All other(3)

 

24.9

 

 

16.3

 

 

41.2

 

Segment operating income

 

28.7

 

 

38.6

 

 

67.3

 

Corporate expense

 

 

 

 

 

32.5

 

Total consolidated operating income

 

 

 

 

 

34.8

 

Interest expense (income), net

 

 

 

 

 

37.3

 

Non-operating pension income

 

 

 

 

 

(4.5

)

Other (income) expense, net

 

 

 

 

 

(12.9

)

Income before income tax

 

 

 

 

$

14.9

 

 

(1)
Sales and Marketing consists primarily of advertising, marketing, selling, customer service expenses and research and development.
(2)
Admin expense consists primarily of executive, finance, information technology and human resources expenses.
(3)
All other expense primarily consists of amortization and, for 2022, changes in the fair value of contingent earnout.

 

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

 

(in millions)

 

2024

 

 

2023

 

ACCO Brands Americas

 

$

418.0

 

 

$

533.5

 

ACCO Brands International

 

 

201.3

 

 

 

224.7

 

Total segment assets(4)

 

 

619.3

 

 

 

758.2

 

Goodwill

 

 

446.4

 

 

 

590.0

 

Identifiable intangibles, net

 

 

709.6

 

 

 

815.7

 

Property, plant and equipment, net

 

 

137.5

 

 

 

170.1

 

Unallocated assets(5)

 

 

315.6

 

 

 

310.8

 

Total assets

 

$

2,228.4

 

 

$

2,644.8

 

 

(4)
Segment assets represent assets that are regularly provided to the CODM and consist of accounts receivable less allowances and inventory.
(5)
Unallocated assets consist primarily of cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs and right of use asset, leases.

 

Capital spend by operating segment for the years ended December 31, 2024, 2023 and 2022 was as follows:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

ACCO Brands Americas

 

$

10.2

 

 

$

7.7

 

 

$

11.7

 

ACCO Brands International

 

 

6.8

 

 

 

7.6

 

 

 

6.0

 

Total capital spend

 

$

17.0

 

 

$

15.3

 

 

$

17.7

 

 

Depreciation expense by operating segment for the years ended December 31, 2024, 2023 and 2022 was as follows:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

ACCO Brands Americas

 

$

19.2

 

 

$

20.4

 

 

$

23.8

 

ACCO Brands International

 

 

9.2

 

 

 

12.3

 

 

 

14.1

 

Total depreciation

 

$

28.4

 

 

$

32.7

 

 

$

37.9

 

 

Property, plant and equipment, net by operating segment as of December 31, 2024 and 2023 was as follows:

 

(in millions)

 

2024

 

 

2023

 

U.S.

 

$

51.1

 

 

$

68.2

 

Canada

 

 

0.9

 

 

 

1.5

 

Latin America

 

 

22.7

 

 

 

29.1

 

ACCO Brands Americas

 

 

74.7

 

 

 

98.8

 

 

 

 

 

 

 

 

ACCO Brands EMEA

 

 

53.5

 

 

 

60.9

 

Australia/N.Z.

 

 

8.7

 

 

 

9.5

 

Asia-Pacific

 

 

0.6

 

 

 

0.9

 

ACCO Brands International

 

 

62.8

 

 

 

71.3

 

Property, plant and equipment, net

 

$

137.5

 

 

$

170.1

 

 

Top Customers

 

Net sales to our five largest customers totaled $532.9 million, $609.0 million and $663.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. No customer exceeded 10 percent of net sales for the years ended December 31, 2024, 2023 and 2022.

 

As of December 31, 2024 and 2023, our top five trade accounts receivable totaled $116.3 million and $138.1 million, respectively.