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Goodwill and Identifiable Intangible Assets | 3 Months Ended
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Mar. 31, 2025
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 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 did not identify a triggering event during the three months ended March 31, 2025 that would indicate it is more likely than not that an impairment loss has been incurred. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of 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 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 uncertainties that can negatively impact 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, or if future events occur that adversely affect our enterprise value, 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 Americas |  |  | ACCO Brands International |  |  | Total |
Balance at December 31, 2024 |  | $ | 253.3 |  |  | $ | 193.1 |  |  | $ | 446.4 |
Acquisitions(1) |  |  | — |  |  |  | 4.2 |  |  |  | 4.2 |
Foreign currency translation |  |  | 0.6 |  |  |  | 17.5 |  |  |  | 18.1 |
Balance at March 31, 2025 |  | $ | 253.9 |  |  | $ | 214.8 |  |  | $ | 468.7 |
(1) Represents goodwill from our Buro Acquisition. The goodwill balance includes $530.8 million of accumulated impairment losses as of December 31, 2024 and March 31, 2025. Identifiable Intangible Assets We test our indefinite-lived intangible 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 did not identify a triggering event during the three months ended March 31, 2025, that would indicate it is more likely than not that an impairment loss has been incurred. Estimating the fair value of our indefinite-lived trade name requires us to make assumptions and estimates regarding our future. We utilized a relief-from-royalty discounted cash flows approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, royalty rate, discount rate, and other expectations about the anticipated short-term and long-term operating results for our indefinite-lived trade name. We believe the assumptions used in our impairment analysis are appropriate and result in reasonable estimates of the implied fair value of our indefinite-lived trade name. However, given the economic environment and uncertainties that can negatively impact our business, there can be no assurance that our estimates and assumptions, made for purposes of our indefinite-lived intangible impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved, or if future events occur that adversely affect our enterprise value, we may be required to record an impairment charge in future periods against out indefinite-lived trade name. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2025 and December 31, 2024, were as follows:
|  | March 31, 2025 |  |  | December 31, 2024 |
(in millions) |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names(2) |  | $ | 101.2 |  |  | $ | (44.5 | ) |  | $ | 56.7 |  |  | $ | 101.2 |  |  | $ | (44.5 | ) |  | $ | 56.7 |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 639.5 |  |  |  | (164.6 | ) |  |  | 474.9 |  |  |  | 627.5 |  |  |  | (157.5 | ) |  |  | 470.0 |
Customer and contractual relationships |  |  | 359.2 |  |  |  | (237.7 | ) |  |  | 121.5 |  |  |  | 350.7 |  |  |  | (230.0 | ) |  |  | 120.7 |
Vendor relationships |  |  | 82.4 |  |  |  | (23.6 | ) |  |  | 58.8 |  |  |  | 82.4 |  |  |  | (22.2 | ) |  |  | 60.2 |
Patents |  |  | 7.9 |  |  |  | (6.2 | ) |  |  | 1.7 |  |  |  | 7.8 |  |  |  | (5.8 | ) |  |  | 2.0 |
Subtotal |  |  | 1,089.0 |  |  |  | (432.1 | ) |  |  | 656.9 |  |  |  | 1,068.4 |  |  |  | (415.5 | ) |  |  | 652.9 |
Total identifiable intangibles |  | $ | 1,190.2 |  |  | $ | (476.6 | ) |  | $ | 713.6 |  |  | $ | 1,169.6 |  |  | $ | (460.0 | ) |  | $ | 709.6 |
(2) 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 for the three months ended March 31, 2025 and 2024 was $11.3 million and $10.6 million, respectively. Estimated amortization expense for amortizable intangible assets, as of March 31, 2025, for the current year and the next five years is as follows:
(in millions) |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | 2029 |  |  | 2030 |
Estimated amortization expense(3) |  | $ | 45.3 |  |  | $ | 43.4 |  |  | $ | 41.0 |  |  | $ | 38.9 |  |  | $ | 37.2 |  |  | $ | 36.3 |
(3) 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. Acquired Identifiable Intangibles Buro Acquisition The valuation of identifiable intangible assets of $5.7 million acquired in the Buro Acquisition includes an amortizable trade name "Buro," and amortizable customer relationships, which have been recorded at their estimated fair values. The fair value of the trade name was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The fair value of the customer relationships was determined using the multi-period excess earning method which is based on the present value of the projected after-tax cash flows adjusted for contributory asset charges. The allocation of the identifiable intangibles acquired in the Buro Acquisition was as follows:
(in millions) |  | Fair Value |  |  | Remaining Useful Life
Trade name |  | $ | 1.9 |  |  | 20 years
Customer relationships |  |  | 3.8 |  |  | 8 years
Total identifiable intangibles acquired |  | $ | 5.7 |  |  |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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