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Information on Operating Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Information on Operating Segments

17. Information on Operating Segments

 

The Company has two operating segments based in different geographic regions: Americas and International. 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.

 

Our Chief Operating Decision Maker ("CODM"), which is our President and Chief Executive Officer, analyzes and evaluates the Company's 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.

 

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 three months ended March 31, 2025 and 2024 were as follows:

 

 

For The Three Months Ended March 31, 2025

 

 

ACCO Brands Americas

 

ACCO Brands International

 

Total

 

Net sales

$

173.9

 

$

143.5

 

$

317.4

 

Cost of products sold

 

120.4

 

 

97.4

 

 

217.8

 

Gross profit

 

53.5

 

 

46.1

 

 

99.6

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

25.8

 

 

22.6

 

 

48.4

 

Administrative expenses(2)

 

17.7

 

 

13.9

 

 

31.6

 

Restructuring

 

1.8

 

 

0.5

 

 

2.3

 

All other(3)

 

7.3

 

 

4.0

 

 

11.3

 

Segment operating income

 

0.9

 

 

5.1

 

 

6.0

 

Corporate expense

 

 

 

 

 

12.7

 

Total consolidated operating loss

 

 

 

 

 

(6.7

)

Interest expense (income), net

 

 

 

 

 

8.9

 

Non-operating pension expense

 

 

 

 

 

0.5

 

Other expense, net

 

 

 

 

 

0.4

 

Loss before income tax

 

 

 

 

$

(16.5

)

 

 

For The Three Months Ended March 31, 2024

 

 

ACCO Brands Americas

 

ACCO Brands International

 

Total

 

Net Sales

$

197.2

 

$

161.7

 

$

358.9

 

Cost of products sold

 

140.9

 

 

107.6

 

 

248.5

 

Gross profit

 

56.3

 

 

54.1

 

 

110.4

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

27.0

 

 

23.5

 

 

50.5

 

Administrative expenses(2)

 

16.9

 

 

13.8

 

 

30.7

 

Restructuring

 

—

 

 

(0.3

)

 

(0.3

)

All other(3)

 

6.3

 

 

4.3

 

 

10.6

 

Segment operating income

 

6.1

 

 

12.8

 

 

18.9

 

Corporate expense

 

 

 

 

 

13.0

 

Total consolidated operating income

 

 

 

 

 

5.9

 

Interest expense (income), net

 

 

 

 

 

11.4

 

Non-operating pension expense

 

 

 

 

 

0.4

 

Other income, net

 

 

 

 

 

(0.6

)

Loss before income tax

 

 

 

 

$

(5.3

)

 

(1)
Sales and Marketing consists primarily of advertising, marketing, selling, customer service 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 of intangibles.

 

The following table presents the measure of operating segment assets used by the Company's CODM as of March 31, 2025 and December 31, 2024:

 

(in millions)

 

March 31,
2025

 

 

December 31,
2024

 

ACCO Brands Americas

 

$

366.6

 

 

$

418.0

 

ACCO Brands International

 

 

194.6

 

 

 

201.3

 

Total segment assets(4)

 

 

561.2

 

 

 

619.3

 

Goodwill

 

 

468.7

 

 

 

446.4

 

Identifiable intangibles, net

 

 

713.6

 

 

 

709.6

 

Property, plant and equipment, net

 

 

139.2

 

 

 

137.5

 

Unallocated assets(5)

 

 

385.9

 

 

 

315.6

 

Total assets

 

$

2,268.6

 

 

$

2,228.4

 

 

(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 issuances costs and right of use asset, leases.

 

Capital spend by operating segment as of March 31, 2025 and December 31, 2024:

 

(in millions)

 

March 31,
2025

 

 

December 31,
2024

 

ACCO Brands Americas

 

$

3.2

 

 

$

10.2

 

ACCO Brands International

 

 

0.9

 

 

 

6.8

 

Total capital spend

 

$

4.1

 

 

$

17.0

 

 

Depreciation expense by operating segment for three months ended March 31, 2025 and 2024 was as follows:

 

(in millions)

 

March 31,
2025

 

 

March 31,
2024

 

ACCO Brands Americas

 

$

4.5

 

 

$

5.0

 

ACCO Brands International

 

 

2.2

 

 

 

2.4

 

Total depreciation

 

$

6.7

 

 

$

7.4

 

 

Property, plant, and equipment, net by operating segment as of March 31, 2025 and December 31, 2024:

(in millions)

 

March 31,
2025

 

 

December 31,
2024

 

U.S.

 

$

50.5

 

 

$

51.1

 

Canada

 

 

0.8

 

 

 

0.9

 

Latin America

 

 

23.9

 

 

 

22.7

 

ACCO Brands Americas

 

 

75.2

 

 

 

74.7

 

 

 

 

 

 

 

 

ACCO Brands EMEA

 

 

54.8

 

 

 

53.5

 

Australia/N.Z.

 

 

8.6

 

 

 

8.7

 

Asia-Pacific

 

 

0.6

 

 

 

0.6

 

ACCO Brands International

 

 

64.0

 

 

 

62.8

 

Property, plant and equipment, net

 

$

139.2

 

 

$

137.5