Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 10, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ACCO BRANDS CORP | ||
Entity Central Index Key | 712,034 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 105,658,596 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 715.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 55.4 | $ 53.2 | |
Accounts receivable less allowances for discounts, doubtful accounts and returns of $18.7 and $19.5, respectively | 369.3 | 420.5 | |
Inventories | 203.6 | 229.9 | |
Deferred income taxes | 0 | 39.4 | |
Other current assets | 25.3 | 35.8 | |
Total current assets | 653.6 | 778.8 | |
Total property, plant and equipment | 526.1 | 547.7 | |
Less accumulated depreciation | (317) | (312.2) | |
Property, plant and equipment, net | [1] | 209.1 | 235.5 |
Deferred income taxes | 25.1 | 31.7 | |
Goodwill | 496.9 | 544.9 | |
Identifiable intangibles, net of accumulated amortization of $169.3 and $166.3, respectively | 520.9 | 571.4 | |
Other non-current assets | 47.8 | 52.8 | |
Total assets | 1,953.4 | 2,215.1 | |
Current liabilities: | |||
Notes payable | 0 | 0.8 | |
Current portion of long-term debt | 0 | 0.8 | |
Accounts payable | 147.6 | 159.1 | |
Accrued compensation | 34 | 36.6 | |
Accrued customer program liabilities | 108.7 | 111.8 | |
Accrued interest | 6.3 | 6.5 | |
Other current liabilities | 58.7 | 79.8 | |
Total current liabilities | 355.3 | 395.4 | |
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 720.5 | 787.7 | |
Deferred income taxes | 142.3 | 172.2 | |
Pension and post-retirement benefit obligations | 89.1 | 100.5 | |
Other non-current liabilities | 65 | 78.3 | |
Total liabilities | 1,372.2 | 1,534.1 | |
Stockholders' equity: | |||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; none issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value, 200,000,000 shares authorized; 107,129,051 and 112,670,514 shares issued and 105,640,003 and 111,911,290 outstanding, respectively | 1.1 | 1.1 | |
Treasury stock, 1,489,048 and 759,224 shares, respectively | (11.8) | (5.9) | |
Paid-in capital | 1,988.3 | 2,031.5 | |
Accumulated other comprehensive loss | (429.2) | (292.6) | |
Accumulated deficit | (967.2) | (1,053.1) | |
Total stockholders' equity | 581.2 | 681 | |
Total liabilities and stockholders' equity | $ 1,953.4 | $ 2,215.1 | |
[1] | Net property, plant and equipment as of December 31, 2015 and 2014 contained $40.7 million and $37.0 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $6.1 million, $7.4 million and $6.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts receivable and returns | $ 18.7 | $ 19.5 | |
Amortizable intangible assets, accumulated amortization | 169.3 | 166.3 | |
Debt Issuance cost, unamortized | [1] | $ 8.5 | $ 11.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, shares, issued | 107,129,051 | 112,670,514 | |
Common stock, shares outstanding | 105,640,003 | 111,911,290 | |
Treasury stock, shares | 1,489,048 | 759,224 | |
[1] | (1) The company has adopted ASU 2015-03 in the fourth quarter of 2015, see "Note 2. Significant Accounting Policies" for details. |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net sales | $ 1,510.4 | $ 1,689.2 | $ 1,765.1 | |
Cost of products sold | 1,032 | 1,159.3 | 1,217.2 | |
Gross profit | 478.4 | 529.9 | 547.9 | |
Operating costs and expenses: | ||||
Advertising, selling, general and administrative expenses | 295.7 | 328.6 | 347.3 | |
Amortization of intangibles | 19.6 | 22.2 | 24.7 | |
Restructuring (credits) charges | (0.4) | 5.5 | 30.1 | |
Total operating costs and expenses | 314.9 | 356.3 | 402.1 | |
Operating income | [1] | 163.5 | 173.6 | 145.8 |
Non-operating expense (income): | ||||
Interest expense | 44.5 | 49.5 | 59 | |
Interest income | (6.6) | (5.6) | (4.3) | |
Equity in earnings of joint ventures | (7.9) | (8.1) | (8.2) | |
Other expense, net | 2.1 | 0.8 | 7.6 | |
Income from continuing operations before income tax | 131.4 | 137 | 91.7 | |
Income tax expense | 45.5 | 45.4 | 14.4 | |
Income from continuing operations | 85.9 | 91.6 | 77.3 | |
Loss from discontinued operations, net of income taxes | 0 | 0 | (0.2) | |
Net income | $ 85.9 | $ 91.6 | $ 77.1 | |
Basic income per share: | ||||
Income from continuing operations | $ 0.79 | $ 0.81 | $ 0.68 | |
Loss from discontinued operations | 0 | 0 | 0 | |
Basic income per share | 0.79 | 0.81 | 0.68 | |
Diluted income per share: | ||||
Income from continuing operations | 0.78 | 0.79 | 0.67 | |
Loss from discontinued operations | 0 | 0 | 0 | |
Diluted income per share | $ 0.78 | $ 0.79 | $ 0.67 | |
Weighted average number of shares outstanding: | ||||
Basic | 108.8 | 113.7 | 113.5 | |
Diluted | 110.6 | 116.3 | 115.7 | |
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 85.9 | $ 91.6 | $ 77.1 |
Unrealized gain on derivative financial instruments: | |||
Gain arising during the period | 8.2 | 6.9 | 3.7 |
Reclassification of gain included in net income | (10.9) | (3.5) | (3.4) |
Foreign currency translation: | |||
Foreign currency translation adjustments | (136.7) | (76.4) | (61.6) |
Pension and other post-retirement plans: | |||
Actuarial (loss) gain arising during the period | (7.1) | (60.2) | 39.3 |
Amortization of actuarial loss included in net income | 3.6 | 5.9 | 11.4 |
Amortization of prior service cost included in net income | 0.1 | 0.3 | 0.1 |
Other | 5.3 | 5.1 | (2.1) |
Other comprehensive loss, before tax | (137.5) | (121.9) | (12.6) |
Income tax benefit (expense) related to items of other comprehensive loss | 0.9 | 14.9 | (16.9) |
Comprehensive (loss) income | $ (50.7) | $ (15.4) | $ 47.6 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 85.9 | $ 91.6 | $ 77.1 |
Loss (gain) on disposal of assets | 0.1 | 0.8 | (4.1) |
Deferred income tax expense (benefit) | 27.4 | 20.6 | (0.7) |
Release of tax valuation allowance | 0 | 0 | (11.6) |
Depreciation | 32.4 | 35.3 | 39.9 |
Amortization of debt issuance costs | 3.5 | 4.6 | 6.2 |
Amortization of intangibles | 19.6 | 22.2 | 24.7 |
Stock-based compensation | 16 | 15.7 | 16.4 |
Loss on debt extinguishment | 1.9 | 0 | 9.4 |
Other non-cash charges | 0 | 0.7 | 1.2 |
Equity in earnings of joint ventures, net of dividends received | (3.8) | (2.4) | (2.7) |
Changes in balance sheet items: | |||
Accounts receivable | (3.9) | 20.4 | 0.5 |
Inventories | 9.8 | 11.6 | 6.5 |
Other assets | 1.2 | (6.1) | 0.1 |
Accounts payable | (2.6) | (10.1) | 26.8 |
Accrued expenses and other liabilities | (19.2) | (28.9) | 9 |
Accrued income taxes | 2.9 | (4.3) | (4.2) |
Net cash provided by operating activities | 171.2 | 171.7 | 194.5 |
Investing activities | |||
Additions to property, plant and equipment | (27.6) | (29.6) | (36.6) |
Payments related to the sale of discontinued operations | 0 | 0 | (1.5) |
Proceeds from the disposition of assets | 2.8 | 3.8 | 6.1 |
Other | 0.2 | 0 | 0 |
Net cash used by investing activities | (24.6) | (25.8) | (33.3) |
Financing activities | |||
Proceeds from long-term borrowings | 300 | 0 | 530 |
Repayments of long-term debt | (370.1) | (121.1) | (679.5) |
(Repayments) borrowings of notes payable, net | (0.8) | 1 | (0.7) |
Payments for debt issuance costs | (1.7) | (0.3) | (4.3) |
Repurchases of common stock | (60) | (19.4) | 0 |
Payments related to tax withholding for share-based compensation | (5.9) | (2.5) | (1) |
Proceeds from the exercise of stock options | 0.7 | 0.3 | 0 |
Net cash used by financing activities | (137.8) | (142) | (155.5) |
Effect of foreign exchange rate changes on cash and cash equivalents | (6.6) | (4.2) | (2.2) |
Net increase (decrease) in cash and cash equivalents | 2.2 | (0.3) | 3.5 |
Cash and cash equivalents | |||
Beginning of the period | 53.2 | 53.5 | 50 |
End of the period | 55.4 | 53.2 | 53.5 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 41 | 45.1 | 52 |
Income taxes | 16.9 | 28.9 | 31.1 |
Cost of acquisitions, net of cash acquired | $ 0 | $ 0 | $ (1.3) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Accumulated Deficit |
Balance at start of period at Dec. 31, 2012 | $ 639.2 | $ 1.1 | $ 2,018.5 | $ (156.1) | $ (2.5) | $ (1,221.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 77.1 | 0 | 0 | 0 | 0 | 77.1 |
Income (loss) on derivative financial instrument, net of tax | 0.2 | 0 | 0 | 0.2 | 0 | 0 |
Translation impact | (61.6) | 0 | 0 | (61.6) | 0 | 0 |
Pension and post-retirement adjustment, net of tax | 31.9 | 0 | 0 | 31.9 | 0 | 0 |
Stock-based compensation | 16.4 | 0 | 16.4 | 0 | 0 | 0 |
Common stock issued, net of shares withheld for employee taxes | (1) | 0 | 0 | 0 | (1) | 0 |
Other | 0.1 | 0 | 0.1 | 0 | 0 | 0 |
Balance at end of period at Dec. 31, 2013 | $ 702.3 | $ 1.1 | 2,035 | (185.6) | $ (3.5) | (1,144.7) |
Balance at start of period (in shares) at Dec. 31, 2012 | 113,143,344 | 113,403,824 | 260,480 | |||
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 520,512 | 652,592 | 132,080 | |||
Balance at end of period (in shares) at Dec. 31, 2013 | 113,663,856 | 114,056,416 | 392,560 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 91.6 | $ 0 | 0 | 0 | $ 0 | 91.6 |
Income (loss) on derivative financial instrument, net of tax | 2.4 | 0 | 0 | 2.4 | 0 | 0 |
Translation impact | (76.4) | 0 | 0 | (76.4) | 0 | 0 |
Pension and post-retirement adjustment, net of tax | (33) | 0 | 0 | (33) | 0 | 0 |
Common stock repurchases | (19.4) | 0 | (19.4) | 0 | 0 | 0 |
Stock-based compensation | 15.7 | 0 | 15.7 | 0 | 0 | 0 |
Common stock issued, net of shares withheld for employee taxes | (2.2) | 0 | 0.3 | 0 | (2.5) | 0 |
Other | 0 | 0 | (0.1) | 0 | 0.1 | 0 |
Balance at end of period at Dec. 31, 2014 | $ 681 | $ 1.1 | 2,031.5 | (292.6) | $ (5.9) | (1,053.1) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 1,003,076 | 1,369,740 | 366,664 | |||
Common stock repurchases | (2,755,642) | (2,755,642) | 0 | |||
Balance at end of period (in shares) at Dec. 31, 2014 | 111,911,290 | 112,670,514 | 759,224 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 85.9 | $ 0 | 0 | 0 | $ 0 | 85.9 |
Income (loss) on derivative financial instrument, net of tax | (1.9) | 0 | 0 | (1.9) | 0 | 0 |
Translation impact | (136.7) | 0 | 0 | (136.7) | 0 | 0 |
Pension and post-retirement adjustment, net of tax | 2 | 0 | 0 | 2 | 0 | 0 |
Common stock repurchases | (60) | (0.1) | (59.9) | 0 | 0 | 0 |
Stock-based compensation | 16 | 0 | 16 | 0 | 0 | 0 |
Common stock issued, net of shares withheld for employee taxes | (5.2) | 0 | 0.7 | 0 | (5.9) | 0 |
Other | 0.1 | 0.1 | 0 | 0 | 0 | 0 |
Balance at end of period at Dec. 31, 2015 | $ 581.2 | $ 1.1 | $ 1,988.3 | $ (429.2) | $ (11.8) | $ (967.2) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 1,419,341 | 2,149,165 | 729,824 | |||
Common stock repurchases | (7,690,628) | (7,690,628) | 0 | |||
Balance at end of period (in shares) at Dec. 31, 2015 | 105,640,003 | 107,129,051 | 1,489,048 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation As used in this Annual Report on Form 10-K for the fiscal year ended December 31, 2015 , the terms "ACCO Brands," "ACCO," the "Company," "we," "us," and "our" refer to ACCO Brands Corporation, a Delaware corporation incorporated in 2005, and its consolidated domestic and international subsidiaries. The management of ACCO Brands Corporation is responsible for the accuracy and internal consistency of the preparation of the consolidated financial statements and notes contained in this annual report. The consolidated financial statements include the accounts of ACCO Brands Corporation and its domestic and international subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Our investments in companies that are between 20% and 50% owned are accounted for using the equity method of accounting. ACCO Brands has an equity investment in the following joint venture: Pelikan-Artline Pty Ltd ("Pelikan-Artline") - 50% ownership. Our share of earnings from equity investments is included on the line entitled " Equity in earnings of joint ventures " in the Consolidated Statements of Income . On May 1, 2012, we completed the merger (the "Merger") of the Mead Consumer and Office Products Business ("Mead C&OP") with a wholly-owned subsidiary of the Company. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Nature of Business ACCO Brands is primarily involved in the manufacturing, marketing and distribution of office product, school products and accessories for laptop and desktop computers and tablets. We sell primarily to large resellers, and our subsidiaries operate principally in the United States, Northern Europe, Brazil, Canada, Australia and Mexico. The majority of our office products, such as stapling, binding and laminating equipment and related consumable supplies, shredders and whiteboards, are used by businesses. Most of these end-users purchase their products from our customers, which include traditional office supply resellers, wholesalers and other retailers, including on-line retailers. We also supply some of our products directly to large commercial and industrial end-users, and provide business machine maintenance and certain repair services. Additionally, we also supply private label products within the office products sector. Our school products include notebooks, folders, decorative calendars and stationery products. We distribute our school products primarily through mass merchandisers, and other retailers, such as grocery, drug and office superstores as well as on-line retailers. We also supply private label products within the school products sector. Our calendar products are sold through all the same channels where we sell office or school products, as well as directly to consumers both on-line and through direct mail. Our Computer Products Group designs, sources, distributes, markets and sells accessories for laptop and desktop computers and tablets. These accessories primarily include security products, input devices such as presenters, mice and trackballs, ergonomic aids such as foot and wrist rests, docking stations, and other PC and tablet accessories. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. Allowances for Doubtful Accounts, Discounts and Returns Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowance for doubtful accounts represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations, usually due to customers’ potential insolvency. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical experience and existing economic conditions. The allowance for sales returns represents estimated uncollectible receivables associated with the potential return of products previously sold to customers, and is recorded at the time that the sales are recognized. The allowance includes a general provision for product returns based on historical trends. In addition, the allowance includes a reserve for currently authorized customer returns that are considered to be abnormal in comparison to the historical basis. Inventories Inventories are priced at the lower of cost (principally first-in, first-out with minor amounts at average) or market. A reserve is established to adjust the cost of inventory to its net realizable value. Inventory reserves are recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as product discontinuance or engineering/material changes. These estimates could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from expectations. Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset are capitalized; maintenance and repair costs are expensed. Purchased computer software is capitalized and amortized over the software’s useful life. The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years We capitalize interest for major capital projects. Capitalized interest is added to the cost of the underlying assets and is depreciated over the useful lives of those assets. We capitalized interest of $1.3 million , $0.9 million and $0.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Long-Lived Assets We test long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable from its undiscounted cash flow. When such events occur, we compare the sum of the undiscounted cash flow expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate at the time of future cash flow, derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flow. The discount rate applied to these cash flows is based on our weighted average cost of capital, computed by selecting market rates at the valuation dates for debt and equity that are reflective of the risks associated with an investment in our industry as estimated by using comparable publicly traded companies. Intangible Assets Intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. In addition, amortizable intangible assets other than goodwill are amortized over their useful lives. Certain of our trade names have been assigned an indefinite life as we currently anticipate that these trade names will contribute cash flows to ACCO Brands indefinitely. We review indefinite-lived intangibles for impairment at least annually, normally in the second quarter, and whenever market or business events indicate there may be a potential adverse impact on a particular intangible. The review may be on a qualitative or quantitative basis as allowed by GAAP. We consider the implications of both external factors (e.g., market growth, pricing, competition, and technology) and internal factors (e.g., product costs, margins, support expenses, and capital investment) and their potential impact on cash flows for each business in both the near and long term, as well as their impact on any identifiable intangible asset associated with the business. Based on recent business results, consideration of significant external and internal factors, and the resulting business projections, indefinite-lived intangible assets are reviewed to determine whether they are likely to remain indefinite-lived, or whether a finite life is more appropriate. In addition, based on events in the period and future expectations, management considers whether the potential for impairment exists. Finite lived intangibles are amortized over 10 , 15 , 23 or 30 years. We performed our annual assessment in the second quarter of 2015 , on a qualitative basis and concluded that no impairment existed. In the fourth quarter of 2015 we performed a quantitative test (Step 1), as we identified a trigger event related to our trade name primarily used in Brazil. While we concluded that no impairment existed, the trade name's fair value has been significantly reduced. Key financial assumptions utilized to determine the fair value of our trade name primarily used in Brazil included a long-term growth rate of 6.5% and a 14.5% discount rate. The fair values of certain other indefinite-lived trade names are also not substantially above their carrying values. As of December 31, 2015 the aggregate carrying value of indefinite-lived trade names not substantially above their fair values was $176.6 million . Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of the acquisitions when compared to the fair value of the net assets acquired. The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are the ACCO Brands North America, ACCO Brands International and Computer Products Group segments. We test goodwill for impairment at least annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. As permitted by GAAP we may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test included in GAAP. Entities are not required to calculate the fair value of a reporting unit unless they determine that it is more likely than not that the fair value is less than the carrying amount. We performed our annual assessment in the second quarter of 2015 , on a qualitative basis, and concluded that it was not more likely than not that the fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if it is determined that a qualitative assessment is not appropriate, we move onto the two-step goodwill impairment test where we calculate the fair value of the reporting units. When applying a fair-value-based test the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. Given the current economic environment and the uncertainties regarding their impact on our business, there can be no assurance that our estimates and assumptions made for purposes of our qualitative impairment testing during 2015 will prove to be accurate predictions of the future. If our assumptions regarding forecasted revenue or margin growth rates of certain reporting units are not achieved, we may be required to record impairment charges in future periods, whether in connection with our next annual impairment testing in the second quarter of fiscal year 2016 or prior to that, if a triggering event is identified outside of the quarter from when the annual impairment test is performed. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. Employee Benefit Plans We provide a range of benefits to our employees and retired employees, including pension, post-retirement, post-employment and health care benefits. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. Actuarial assumptions are reviewed on an annual basis and modifications to these assumptions are made based on current rates and trends when it is deemed appropriate. As required by GAAP, the effect of our modifications are generally recorded and amortized over future periods. Income Taxes Deferred tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred tax assets to an amount that is more likely than not to be realized. Facts and circumstances may change and cause us to revise the conclusions on our ability to realize certain net operating losses and other deferred tax attributes. The amount of income taxes that we pay is subject to ongoing audits by federal, state and foreign tax authorities. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are revised or resolved. Revenue Recognition We recognize revenue from product sales when earned, net of applicable provisions for discounts, returns and allowances. We consider revenue to be realized or realizable and earned when all of the following criteria are met: title and risk of loss have passed to the customer, persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. We also provide for our estimate of potential bad debt at the time of revenue recognition. Cost of Products Sold Cost of products sold includes all manufacturing, product sourcing and distribution costs, including depreciation related to assets used in the manufacturing, procurement and distribution process, allocation of certain information technology costs supporting those processes, inbound and outbound freight, shipping and handling costs, purchasing costs associated with materials and packaging used in the production processes. Advertising, Selling, General and Administrative Expenses Advertising, selling, general and administrative expenses ("SG&A") include advertising, marketing, selling (including commissions), research and development, customer service, depreciation related to assets outside the manufacturing and distribution processes and all other general and administrative expenses outside the manufacturing and distribution functions (e.g., finance, human resources, information technology, corporate expenses, etc.). Advertising Costs Advertising costs amounted to $120.9 million , $130.8 million and $131.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " below, and are principally expensed as incurred. Customer Program Costs Customer program costs include, but are not limited to, sales rebates, which are generally tied to achievement of certain sales volume levels, in-store promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements, and freight allowance programs. We generally recognize customer program costs as a deduction to gross sales at the time that the associated revenue is recognized. Certain customer incentives that do not directly relate to future revenues are expensed when initiated. In addition, accrued customer program liabilities principally include, but are not limited to, sales volume rebates, promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements and freight allowances as discussed above. Shipping and Handling We reflect all amounts billed to customers for shipping and handling in net sales and the costs incurred from shipping and handling product (including costs to ship and move product from the seller’s place of business to the buyer’s place of business, as well as costs to store, move and prepare products for shipment) in cost of products sold. Warranty Reserves We offer our customers various warranty terms based on the type of product that is sold. Estimated future obligations related to products sold under these warranty terms are provided by charges to cost of products sold in the period in which the related revenue is recognized. Research and Development Research and development expenses, which amounted to $20.0 million , $20.2 million and $22.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are classified as SG&A expenses and are charged to expense as incurred. Stock-Based Compensation Our primary types of share-based compensation consist of stock options, restricted stock unit awards and performance stock unit awards. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Where awards are made with non-substantive vesting periods (for example, where a portion of the award vests upon retirement eligibility), we estimate and recognize expense based on the period from the grant date to the date on which the employee is retirement eligible. Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period. The related translation adjustments are made directly to a separate component of accumulated other comprehensive income (loss) in stockholders’ equity. Some transactions are made in currencies different from an entity’s functional currency. Gains and losses on these foreign currency transactions are included in income as they occur. Derivative Financial Instruments We recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Certain forecasted transactions, assets and liabilities are exposed to foreign currency risk. We continually monitor our foreign currency exposures in order to maximize the overall effectiveness of our foreign currency hedge positions. Principal currencies hedged include the U.S. dollar, Euro, Australian dollar, Canadian dollar, British pound and Japanese yen. Recent Accounting Standards Updates In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ("ASU 2015-14") deferring by one year the effective date of ASU 2014-09 until reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company is currently in the process of evaluating the impact of adoption of ASU 2014-09 on its consolidated financial statements and has not yet selected a transition method. In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption of ASU 2015-11 on its consolidated financial statements. Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015; early adoption is permitted. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ( "ASU 2015-15"). ASU 2015-15 provides guidance for debt issuance costs related to line-of-credit arrangements; the SEC staff stated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The company has adopted ASU 2015-03 and ASU 2015-15 in the fourth quarter of 2015 and has retrospectively adjusted its prior period balance sheet. For the year ended December 31, 2014 we have reclassified $11.3 million from " Other non-current assets " to " Long-term debt, net " related the debt issuance costs for our U.S. Dollar Senior Secured Term Loan A, due April 2020 and our Senior Unsecured Notes, due April 2020. See " Note 3. Long-term Debt and Short-term Borrowings ." In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"). The amendments in ASU 2015-17 require all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company has elected to prospectively adopt the accounting standard in the beginning of our fourth quarter of 2015. Prior periods in our Consolidated Financial Statements were not retrospectively adjusted. Other than the items mentioned above, there are no other recently issued accounting standards that are expected to have a material effect on the Company’s financial condition, results of operations or cash flow. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% As of December 31, 2015 , all of the amounts outstanding under the Restated Term Loan A bore interest at a Eurodollar rate plus the applicable rate of 1.50% and the amounts drawn under the Restated Revolving Facility bore interest at either a Eurodollar rate plus 1.50% or a Base Rate plus the applicable rate of 0.50% . Prepayments Subject to certain conditions and exceptions, the Restated Credit Agreement requires the Company to prepay outstanding loans in certain circumstances, including (a) in an amount equal to 100% of the net cash proceeds from sales or dispositions of property or assets in excess of $10.0 million per fiscal year, (b) in an amount equal to 100% of the net cash proceeds from property insurance or condemnation awards in excess of $10.0 million per fiscal year and (c) in an amount equal to 100% of the net cash proceeds from additional debt other than debt permitted under the Restated Credit Agreement. The Company also is required to prepay outstanding loans with specified percentages of excess cash flow based on its leverage. The Restated Credit Agreement contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Permitted acquisitions The Restated Credit Agreement increases the aggregate amount of Investments (as defined in the Restated Credit Agreement) allowed to be made by the Company and other Loan Parties (as defined in the Restated Credit Agreement) in subsidiaries used to consummate permitted acquisitions by such subsidiaries to the greater of $500.0 million or 15.0% of Consolidated Total Assets (as defined in the Restated Credit Agreement). Dividends and share repurchases . Under the Restated Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount equal to the sum of: (i) the greater of (a) $25.0 million and (b) 1.0% of the Company’s Consolidated Total Assets, plus (ii) an aggregate amount not to exceed $60.0 million in any fiscal year; provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment is greater than 2.50:1.00 and less than or equal to 3.75:1.00, plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment is less than or equal to 2.50 :1.00, plus (iv) any Net Equity Proceeds (as defined in the Restated Credit Agreement). Covenants The Restated Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The indenture governing the senior unsecured notes also contains certain covenants. Under the Restated Credit Agreement, the Company is required to meet certain financial tests, including a maximum Consolidated Leverage Ratio as determined by reference to the following ratio: Period Maximum Consolidated Leverage Ratio (1) July 1, 2015 and thereafter 3.75:1.00 (1) The Consolidated Leverage Ratio is computed by dividing the Company's net funded indebtedness by the cumulative four-quarter-trailing EBITDA, which excludes transaction costs, restructuring and other charges up to certain limits as well as other adjustments defined in the Restated Credit Agreement. Following the consummation of a Material Acquisition (as defined in the Restated Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurs and as of the end of the three fiscal quarters thereafter, the level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Restated Credit Agreement also requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter at or above 1.25 to 1.00. Compliance with Loan Covenants As of and for the year ended December 31, 2015 , we were in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the Restated Credit Agreement are guaranteed, by certain of the Company's existing and future subsidiaries, and are secured by substantially all of the Company's and certain guarantor subsidiaries' assets, subject to certain exclusions and limitations. The Senior Unsecured Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our existing and future domestic subsidiaries other than certain excluded subsidiaries. The Senior Unsecured Notes and the related guarantees will rank equally in right of payment with all of the existing and future senior debt of the Company and the guarantors, senior in right of payment to all of the existing and future subordinated debt of the Company, and the guarantors, and effectively subordinated to all of the existing and future secured indebtedness of the Company and the guarantors to the extent of the value of the assets securing such indebtedness. The Senior Unsecured Notes and the guarantees are and will be structurally subordinated to all existing and future liabilities, including trade payables, of each of the Company's subsidiaries that do not guarantee the notes. Incremental facilities The Restated Credit Agreement permits the Company to seek increases in the size of the Restated Revolving Facility and the Restated Term A Loan prior to maturity by up to $500.0 million , in the aggregate, subject to certain conditions and lender commitment." id="sjs-B4">3. Long-term Debt and Short-term Borrowings Notes payable and long-term debt, listed in order of their security interests, consisted of the following as of December 31, 2015 and 2014 : (in millions of dollars) 2015 2014 U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) $ 229.0 $ — U.S. Dollar Senior Secured Term Loan A, due May 2018 (floating interest rate of 2.24% at December 31, 2014) — 299.0 Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) 500.0 500.0 Other borrowings — 1.6 Total debt 729.0 800.6 Less: Current portion — 1.6 Debt issuance costs, unamortized (1) 8.5 11.3 Long-term debt, net $ 720.5 $ 787.7 (1) The company has adopted ASU 2015-03 in the fourth quarter of 2015, see " Note 2. Significant Accounting Policies " for details. Effective April 28, 2015 (the "Effective Date"), the Company entered into a Second Amended and Restated Credit Agreement, dated as of April 28, 2015 (the "Restated Credit Agreement"), among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other agents and lenders party thereto. The Restated Credit Agreement amends and restates the Company’s existing credit agreement, dated as of May 13, 2013, as amended (the "2013 Credit Agreement"). In addition, immediately prior to the effectiveness of the Restated Credit Agreement, the Company entered into a Third Amendment, dated as of April 28, 2015 (the "Third Amendment"), to the 2013 Credit Agreement in order to facilitate the entry into and obtain certain lender consents for the Restated Credit Agreement. The Company subsequently entered into a First Amendment to the Restated Credit Agreement dated as of July 7, 2015 (the “First Amendment”), which First Amendment eliminated the requirement to use commercially reasonable efforts to maintain public ratings of the Company’s senior secured debt and revised the definition of “Change of Control” in Section 1.01 of the Restated Credit Agreement to remove language that could be viewed as effectively limiting the ability of stockholders to nominate and elect new directors, commonly referred to as a “dead hand proxy put.” The revision to the definition of “Change of Control” in the First Amendment is responsive to recent developments under Delaware law. The Restated Credit Agreement provides for a $600.0 million five -year senior secured credit facility, which consists of a $300.0 million revolving credit facility (the "Restated Revolving Facility") and a $300.0 million term loan. Specifically, in connection with the Restated Credit Agreement, the Company: • replaced the Company’s then existing U.S.-dollar denominated Senior Secured Term A Loan, due May 2018, under the 2013 Credit Agreement (the "Existing Term A Loan"), which had an aggregate principal amount of $299.0 million outstanding immediately prior to the Effective Date, with a new U.S.-dollar denominated Senior Secured Term A Loan, with a maturity date as specified below, in an aggregate original principal amount of $300.0 million (the "Restated Term A Loan"); and • replaced the $250.0 million revolving credit facility under the 2013 Credit Agreement with the Restated Revolving Facility. Borrowings under the Restated Term A Loan were used to continue the entire outstanding principal amount of the Existing Term A Loan and pay fees associated with the Restated Credit Agreement. The Restated Revolving Facility is expected to be available for working capital and general corporate purposes. Undrawn amounts under the Restated Revolving Facility will be subject to a commitment fee rate of 0.25% to 0.40% per annum, depending on the Company’s Consolidated Leverage Ratio (as defined in the Restated Credit Agreement). As of December 31, 2015, the commitment fee rate was 0.30% . As of December 31, 2015 , there were no borrowings under the Restated Revolving Facility. The amount available for borrowings was $291.1 million (allowing for $8.9 million of letters of credit outstanding on that date). Maturity and amortization Borrowings under the Restated Revolving Facility and the Restated Term Loan A will mature on the earlier of (i) April 28, 2020 and (ii) the date that is 180 days prior to the maturity of the Company's Senior Unsecured Notes, due April 30, 2020 (the "Senior Unsecured Notes"), unless such notes are earlier refinanced. Amounts under the Restated Revolving Facility will be non-amortizing. Beginning September 30, 2015, the outstanding principal amount under the Restated Term Loan A was payable in quarterly installments in an amount representing, on an annual basis, 5.0% of the initial aggregate principal amount of such loan and increasing to 12.5% by September 30, 2018. Interest rates Amounts outstanding under the Restated Credit Agreement will bear interest (i) in the case of Eurodollar loans, at a rate per annum equal to the Eurodollar rate (which is based on an average British Bankers Association Interest Settlement Rate) plus the applicable rate; (ii) in the case of loans made at the Base Rate (which means the highest of (a) the Bank of America, N.A. prime rate then in effect, (b) the Federal Funds effective rate then in effect plus ½ of 1.00% and (c) the Eurodollar rate that would be payable on such day for a Eurodollar loan with a one -month interest period plus 1.00% ), at a rate per annum equal to the Base Rate plus the applicable rate; and (iii) in the case of swing line loans, at a rate per annum equal to the Base Rate plus the applicable rate. Separate base interest rate and applicable rate provisions will apply for any Canadian or Australian currency denominated loans. The applicable rate applied to outstanding Eurodollar loans and Base Rate loans is based on the Company's Consolidated Leverage Ratio (as defined in the Restated Credit Agreement) as follows: Consolidated Leverage Ratio Eurodollar Credit Spread Base Rate Credit Spread > 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% As of December 31, 2015 , all of the amounts outstanding under the Restated Term Loan A bore interest at a Eurodollar rate plus the applicable rate of 1.50% and the amounts drawn under the Restated Revolving Facility bore interest at either a Eurodollar rate plus 1.50% or a Base Rate plus the applicable rate of 0.50% . Prepayments Subject to certain conditions and exceptions, the Restated Credit Agreement requires the Company to prepay outstanding loans in certain circumstances, including (a) in an amount equal to 100% of the net cash proceeds from sales or dispositions of property or assets in excess of $10.0 million per fiscal year, (b) in an amount equal to 100% of the net cash proceeds from property insurance or condemnation awards in excess of $10.0 million per fiscal year and (c) in an amount equal to 100% of the net cash proceeds from additional debt other than debt permitted under the Restated Credit Agreement. The Company also is required to prepay outstanding loans with specified percentages of excess cash flow based on its leverage. The Restated Credit Agreement contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Permitted acquisitions The Restated Credit Agreement increases the aggregate amount of Investments (as defined in the Restated Credit Agreement) allowed to be made by the Company and other Loan Parties (as defined in the Restated Credit Agreement) in subsidiaries used to consummate permitted acquisitions by such subsidiaries to the greater of $500.0 million or 15.0% of Consolidated Total Assets (as defined in the Restated Credit Agreement). Dividends and share repurchases . Under the Restated Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount equal to the sum of: (i) the greater of (a) $25.0 million and (b) 1.0% of the Company’s Consolidated Total Assets, plus (ii) an aggregate amount not to exceed $60.0 million in any fiscal year; provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment is greater than 2.50:1.00 and less than or equal to 3.75:1.00, plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment is less than or equal to 2.50 :1.00, plus (iv) any Net Equity Proceeds (as defined in the Restated Credit Agreement). Covenants The Restated Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The indenture governing the senior unsecured notes also contains certain covenants. Under the Restated Credit Agreement, the Company is required to meet certain financial tests, including a maximum Consolidated Leverage Ratio as determined by reference to the following ratio: Period Maximum Consolidated Leverage Ratio (1) July 1, 2015 and thereafter 3.75:1.00 (1) The Consolidated Leverage Ratio is computed by dividing the Company's net funded indebtedness by the cumulative four-quarter-trailing EBITDA, which excludes transaction costs, restructuring and other charges up to certain limits as well as other adjustments defined in the Restated Credit Agreement. Following the consummation of a Material Acquisition (as defined in the Restated Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurs and as of the end of the three fiscal quarters thereafter, the level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Restated Credit Agreement also requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter at or above 1.25 to 1.00. Compliance with Loan Covenants As of and for the year ended December 31, 2015 , we were in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the Restated Credit Agreement are guaranteed, by certain of the Company's existing and future subsidiaries, and are secured by substantially all of the Company's and certain guarantor subsidiaries' assets, subject to certain exclusions and limitations. The Senior Unsecured Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our existing and future domestic subsidiaries other than certain excluded subsidiaries. The Senior Unsecured Notes and the related guarantees will rank equally in right of payment with all of the existing and future senior debt of the Company and the guarantors, senior in right of payment to all of the existing and future subordinated debt of the Company, and the guarantors, and effectively subordinated to all of the existing and future secured indebtedness of the Company and the guarantors to the extent of the value of the assets securing such indebtedness. The Senior Unsecured Notes and the guarantees are and will be structurally subordinated to all existing and future liabilities, including trade payables, of each of the Company's subsidiaries that do not guarantee the notes. Incremental facilities The Restated Credit Agreement permits the Company to seek increases in the size of the Restated Revolving Facility and the Restated Term A Loan prior to maturity by up to $500.0 million , in the aggregate, subject to certain conditions and lender commitment. |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Retiree Benefits | 4. Pension and Other Retiree Benefits We have a number of pension plans, principally in the U.K. and the U.S. The plans provide for payment of retirement benefits, primarily commencing between the ages of 60 and 65 , and also for payment of certain disability and severance benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined based on an employee’s length of service and earnings. Several of these plans have been frozen and are no longer accruing additional service benefits. Cash contributions to the plans are made as necessary to ensure legal funding requirements are satisfied. On January 20, 2009, the Company’s Board of Directors approved plan amendments to temporarily freeze our ACCO Brands Corporation Pension Plan for Salaried and Certain Hourly Paid Employees in the U.S. (the "U.S. Salaried Plan") effective March 7, 2009. During the fourth quarter of 2014, the U.S. Salaried Plan became permanently frozen and, as of December 31, 2014, we have permanently frozen a portion of our U.S. pension plan for certain bargained hourly employees. On September 30, 2012, our U.K. pension plan was frozen and as of December 31, 2013, we have permanently frozen two of our Canadian pension plans. We also provide post-retirement health care and life insurance benefits to certain employee and retirees in the U.S., U.K. and Canada. All but one of these benefit plans have been frozen to new participants. Many employees and retirees outside of the U.S. are covered by government health care programs. The following table sets forth our defined benefit pension and post-retirement plans funded status and the amounts recognized in our Consolidated Balance Sheets: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 212.9 $ 177.4 $ 391.8 $ 371.4 $ 12.2 $ 13.3 Service cost 1.6 2.1 0.9 0.8 0.1 0.2 Interest cost 8.7 8.6 12.9 15.7 0.4 0.5 Actuarial (gain) loss (14.4 ) 34.2 (19.0 ) 48.3 (3.4 ) (0.3 ) Participants’ contributions — — 0.2 0.2 0.1 0.1 Benefits paid (10.1 ) (9.4 ) (15.9 ) (16.6 ) (0.5 ) (0.8 ) Plan amendments — — — (0.2 ) (0.2 ) (0.4 ) Foreign exchange rate changes — — (23.8 ) (27.8 ) (0.6 ) (0.4 ) Projected benefit obligation at end of year 198.7 212.9 347.1 391.8 8.1 12.2 Change in plan assets Fair value of plan assets at beginning of year 163.9 156.3 351.2 342.8 — — Actual return on plan assets (9.3 ) 10.8 (0.8 ) 43.8 — — Employer contributions 1.3 6.2 5.4 5.5 0.4 0.7 Participants’ contributions — — 0.2 0.2 0.1 0.1 Benefits paid (10.1 ) (9.4 ) (15.9 ) (16.6 ) (0.5 ) (0.8 ) Foreign exchange rate changes — — (21.2 ) (24.5 ) — — Fair value of plan assets at end of year 145.8 163.9 318.9 351.2 — — Funded status (Fair value of plan assets less PBO) $ (52.9 ) $ (49.0 ) $ (28.2 ) $ (40.6 ) $ (8.1 ) $ (12.2 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.9 $ — $ — $ — Other current liabilities — — 0.4 0.5 0.6 0.8 Pension and post-retirement benefit obligations (1) 52.9 49.0 28.7 40.1 7.5 11.4 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 55.1 51.9 75.0 78.1 (4.2 ) (1.1 ) Unrecognized prior service (credit) cost 2.0 2.4 (0.3 ) (0.4 ) (0.2 ) (1.5 ) (1) Pension and post-retirement obligations of $89.1 million as of December 31, 2015 , decreased from $100.5 million as of December 31, 2014 , primarily due to cash contributions. Of the amounts included within accumulated other comprehensive income (loss), we expect to recognize the following pre-tax amounts as components of net periodic benefit cost (income) for the year ended December 31, 2016 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 1.8 $ 2.4 $ (0.4 ) Prior service cost 0.4 — — $ 2.2 $ 2.4 $ (0.4 ) All of our plans have projected benefit obligations in excess of plan assets, except for our Irish plan. The accumulated benefit obligation for all pension plans was $533.6 million and $590.0 million at December 31, 2015 and 2014 , respectively. The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets: U.S. International (in millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 198.7 $ 212.9 $ 334.1 $ 371.0 Accumulated benefit obligation 196.1 209.1 324.7 360.9 Fair value of plan assets 145.8 163.9 305.0 331.1 The components of net periodic benefit (income) cost for pension and post-retirement plans for the years ended December 31, 2015 , 2014 , and 2013 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 1.6 $ 2.1 $ 2.0 $ 0.9 $ 0.8 $ 1.6 $ 0.1 $ 0.2 $ 0.2 Interest cost 8.7 8.6 7.9 12.9 15.7 14.7 0.4 0.5 0.6 Expected return on plan assets (12.2 ) (12.0 ) (10.4 ) (21.9 ) (22.8 ) (20.6 ) — — — Amortization of net loss (gain) 2.1 5.1 9.6 2.4 1.9 2.4 (0.4 ) (1.1 ) (0.6 ) Amortization of prior service cost (credit) 0.4 0.4 0.1 — — — (0.3 ) — — Curtailment gain — — — — — (1.0 ) — — — Settlement gain — — — — — — (0.5 ) (0.1 ) — Net periodic benefit (income) cost $ 0.6 $ 4.2 $ 9.2 $ (5.7 ) $ (4.4 ) $ (2.9 ) $ (0.7 ) $ (0.5 ) $ 0.2 Effective from January 1, 2015 we changed the amortization of our net actuarial loss included in accumulated other comprehensive income (loss) for the U.S. Salaried Plan from the average remaining service period of active employees expected to receive benefits under the plan to the average remaining life expectancy of all participants. This change was the result of the Company's decision to permanently freeze the benefits under the plan. In 2013, we recognized a curtailment gain of $1.0 million related to permanently freezing two of our Canadian pension plans. Other changes in plan assets and benefit obligations that were recognized in other comprehensive income (loss) during the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Current year actuarial loss (gain) $ 7.1 $ 35.4 $ (30.2 ) $ 3.8 $ 27.3 $ (10.0 ) $ (3.4 ) $ (0.3 ) $ (2.8 ) Amortization of actuarial (loss) gain (2.1 ) (5.1 ) (9.6 ) (2.4 ) (1.9 ) (2.4 ) 0.9 1.1 0.6 Current year prior service (credit) cost — — 3.7 — (0.2 ) — (0.2 ) (0.3 ) — Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.1 ) — — — 0.3 — — Foreign exchange rate changes — — — (5.6 ) (6.8 ) 2.1 0.1 0.1 — Total recognized in other comprehensive income (loss) $ 4.6 $ 29.9 $ (36.2 ) $ (4.2 ) $ 18.4 $ (10.3 ) $ (2.3 ) $ 0.6 $ (2.2 ) Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) $ 5.2 $ 34.1 $ (27.0 ) $ (9.9 ) $ 14.0 $ (13.2 ) $ (3.0 ) $ 0.1 $ (2.0 ) Assumptions The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.6 % 4.2 % 5.0 % 3.7 % 3.4 % 4.3 % 3.9 % 3.7 % 4.4 % Rate of compensation increase N/A N/A N/A 3.0 % 3.3 % 4.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.2 % 5.0 % 4.2 % 3.4 % 4.3 % 4.3 % 3.7 % 4.4 % 4.0 % Expected long-term rate of return 8.0 % 8.2 % 8.2 % 6.5 % 6.8 % 6.8 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 3.3 % 4.0 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit cost (income) as of December 31, 2015 , 2014 , and 2013 were as follows: Post-retirement 2015 2014 2013 Health care cost trend rate assumed for next year 7 % 8 % 8 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 5 % 5 % 5 % Year that the rate reaches the ultimate trend rate 2024 2023 2020 Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-Percentage- 1-Percentage- (in millions of dollars) Point Increase Point Decrease Increase (decrease) on total of service and interest cost $ 0.1 $ (0.1 ) Increase (decrease) on post-retirement benefit obligation 0.7 (0.6 ) Plan Assets The investment strategy for the Company is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Each plan has a different target asset allocation, which is reviewed periodically and is based on the underlying liability structure. The target asset allocation for our U.S. plan is 65% in equity securities, 20% in fixed income securities and 15% in alternative assets. The target asset allocation for non-U.S. plans is set by the local plan trustees. Our pension plan weighted average asset allocations as of December 31, 2015 and 2014 were as follows: 2015 2014 U.S. International U.S. International Asset category Equity securities 61 % 45 % 62 % 45 % Fixed income 31 39 31 38 Real estate — 4 — 3 Other (1) 8 12 7 14 Total 100 % 100 % 100 % 100 % (1) Insurance contracts, multi-strategy hedge funds and cash and cash equivalents for certain of our plans. U.S. Pension Plan Assets The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2015 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Common stocks $ 6.9 $ — $ — $ 6.9 Mutual funds 82.6 — — 82.6 Common collective trust funds — 2.1 — 2.1 Government debt securities — 3.1 — 3.1 Corporate debt securities — 19.0 — 19.0 Asset-backed securities — 8.8 — 8.8 Multi-strategy hedge funds — 9.2 — 9.2 Government mortgage-backed securities — 7.3 — 7.3 Collateralized mortgage obligations, mortgage backed securities, and other — 6.8 — 6.8 Total $ 89.5 $ 56.3 $ — $ 145.8 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2014 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Common stocks $ 8.3 $ — $ — $ 8.3 Mutual funds 93.2 — — 93.2 Common collective trust funds — 8.9 — 8.9 Government debt securities — 2.2 — 2.2 Corporate debt securities — 16.7 — 16.7 Asset-backed securities — 9.8 — 9.8 Multi-strategy hedge funds — 9.5 — 9.5 Government mortgage-backed securities — 8.0 — 8.0 Collateralized mortgage obligations, mortgage backed securities, and other — 7.3 — 7.3 Total $ 101.5 $ 62.4 $ — $ 163.9 Mutual funds and common stocks: The fair values of mutual fund and common stock fund investments are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs). Common collective trusts : The fair values of participation units held in common collective trusts are based on their net asset values, as reported by the managers of the common collective trusts and as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date (level 2 inputs). Debt securities: Fixed income securities, such as corporate and government bonds, collateralized mortgage obligations, asset-backed securities, government mortgage-backed securities and other debt securities are valued using quotes from independent pricing vendors based on recent trading activity and other relevant information, including market interest rate curves, referenced credit spreads, and estimated prepayment rates, where applicable (level 2 inputs). Multi-strategy hedge funds : The fair values of participation units held in multi-strategy hedge funds are based on their net asset values, as reported by the managers of the funds and are based on the daily closing prices of the underlying investments (level 2 inputs). International Pension Plans Assets The fair value measurements of our international pension plans assets by asset category as of December 31, 2015 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 1.2 $ — $ — $ 1.2 Equity securities 142.6 — — 142.6 Corporate debt securities — 121.6 — 121.6 Multi-strategy hedge funds — 23.7 — 23.7 Insurance contracts — 15.3 — 15.3 Real estate — 10.6 0.7 11.3 Government debt securities — 3.2 — 3.2 Total $ 143.8 $ 174.4 $ 0.7 $ 318.9 The fair value measurements of our international pension plans assets by asset category as of December 31, 2014 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 6.1 $ — $ — $ 6.1 Equity securities 156.7 — — 156.7 Corporate debt securities — 118.6 — 118.6 Multi-strategy hedge funds — 25.1 — 25.1 Insurance contracts — 18.4 — 18.4 Other debt securities — 12.1 — 12.1 Real estate — 9.7 0.9 10.6 Government debt securities — 3.6 — 3.6 Total $ 162.8 $ 187.5 $ 0.9 $ 351.2 Equity securities: The fair values of equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs). Debt securities: Fixed income securities, such as corporate and government bonds and other debt securities, consist of index-linked securities. These debt securities are valued using quotes from independent pricing vendors based on recent trading activity and other relevant information, including market interest rate curves, referenced credit spreads, and estimated prepayment rates, where applicable (level 2 inputs). Real estate: Real estate, exclusive of the Canadian plan, consists of managed real estate investment trust securities (level 2 inputs). Real estate in the Canadian plans is appraised by a third party on an annual basis (level 3 inputs). There have been no substantial purchases or gains/losses in 2015 or 2014 . Insurance contracts: Valued at contributions made, plus earnings, less participant withdrawals and administrative expenses, which approximate fair value (level 2 inputs). Multi-strategy hedge funds : The fair values of participation units held in multi-strategy hedge funds are based on their net asset values, as reported by the managers of the funds and are based on the daily closing prices of the underlying investments (level 2 inputs). Cash Contributions We contributed $7.1 million to our pension and post-retirement plans in 2015 and expect to contribute $6.5 million in 2016 . The following table presents estimated future benefit payments to participants for the next ten fiscal years: Pension Post-retirement (in millions of dollars) Benefits Benefits 2016 $ 24.5 $ 0.6 2017 $ 25.1 $ 0.6 2018 $ 26.0 $ 0.6 2019 $ 26.4 $ 0.6 2020 $ 27.2 $ 0.6 Years 2021 — 2025 $ 146.3 $ 2.6 We also sponsor a number of defined contribution plans. Contributions are determined under various formulas. Costs related to such plans amounted to $9.8 million , $8.6 million and $8.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The $1.2 million increase in defined contribution plan costs in 2015 compared to 2014 was due to an additional contribution for certain hourly employees who agreed to have their pension benefits frozen. Multi-Employer Pension Plan We are a participant in a multi-employer pension plan. The plan has reported significant underfunded liabilities and declared itself in critical status (red). As a result, the trustees of the plan adopted a rehabilitation plan (RP) in an effort to forestall insolvency. Our required contributions to this plan could increase due to the shrinking contribution base resulting from the insolvency of or withdrawal of other participating employers, from the inability or the failure of withdrawing participating employers to pay their withdrawal liability, from lower than expected returns on pension fund assets, and from other funding deficiencies. In the event that we withdraw from participation in the plan, we will be required to make withdrawal liability payments for a period of 20 years or longer in certain circumstances. The present value of our withdrawal liability payments would be recorded as an expense in our Consolidated Statements of Income and as a liability on our Consolidated Balance Sheets in the first year of our withdrawal. The most recent Pension Protection Act (PPA) zone status available in 2015 and 2014 is for the plan’s years ended December 31, 2014 and 2013 , respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. Details regarding the plan are outlined in the table below. Pension Protection Act Zone Status FIP/RP Status Pending/Implemented Contributions Expiration Date of Collective-Bargaining Agreement Year Ended December 31, Pension Fund EIN/Pension Plan Number 2015 2014 2015 2014 2013 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.3 $ 0.4 $ 0.2 Yes 6/30/2017 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 5. Stock-Based Compensation The ACCO Brands Corporation Incentive Plan provides for stock based awards in the form of stock options, stock-settled appreciation rights ("SSARs"), restricted stock units ("RSUs") and performance stock units ("PSUs"), any of which may be granted alone or with other types of awards and dividend equivalents. We have one share-based compensation plan under which a total of 13,118,430 shares may be issued under awards to key employees and non-employee directors. The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 . (in millions of dollars) 2015 2014 2013 Advertising, selling, general and administrative expense $ 16.0 $ 15.7 $ 16.4 Income (loss) from continuing operations before income tax (16.0 ) (15.7 ) (16.4 ) Income tax expense (benefit) (5.7 ) (5.7 ) (5.9 ) Net income (loss) $ (10.3 ) $ (10.0 ) $ (10.5 ) There was no capitalization of stock based compensation expense. Stock-based compensation expense by award type for the years ended December 31, 2015 , 2014 and 2013 was as follows: (in millions of dollars) 2015 2014 2013 Stock option compensation expense $ 3.9 $ 3.7 $ 3.0 RSU compensation expense 4.7 6.6 5.5 PSU compensation expense 7.4 5.4 7.9 Total stock-based compensation expense $ 16.0 $ 15.7 $ 16.4 Stock Option and SSAR Awards The exercise price of each stock option equals or exceeds the fair market price of our stock on the date of grant. Options can generally be exercised over a maximum term of up to seven years. Stock options outstanding as of December 31, 2015 generally vest ratably over three years. During 2015 , 2014 and 2013 , we granted only option awards. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model using the weighted average assumptions as outlined in the following table: Year Ended December 31, 2015 2014 2013 Weighted average expected lives 4.5 years 4.5 years 4.5 years Weighted average risk-free interest rate 1.47 % 1.33 % 0.75 % Weighted average expected volatility 46.5 % 52.2 % 55.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % Weighted average grant date fair value $ 3.00 $ 2.69 $ 3.43 Prior to 2012 we utilized historical volatility for a pool of peer companies for a period of time that is comparable to the expected life of the option to determine volatility assumptions for stock-based compensation. Beginning in 2012 volatility was calculated using a combination of peer companies and ACCO Brands' historic volatility. In 2013, volatility was calculated using a combination of peer companies ( 25% ) and ACCO Brands' historic volatility ( 75% ). From 2014 forward, volatility was calculated using ACCO Brands' historic volatility ( 100% ). The weighted average expected option term reflects the application of the simplified method, which defines the life as the average of the contractual term of the option and the weighted average vesting period for all option tranches. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Forfeitures are estimated at the time of grant in order to calculate the amount of share-based payment awards ultimately expected to vest. The forfeiture rate is based on historical experience. A summary of the changes in stock options/SSARs outstanding under our stock compensation plan during the year ended December 31, 2015 are presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2014 4,973,386 $ 7.02 Granted 1,419,510 $ 7.52 Exercised (456,341 ) $ 2.01 Lapsed (353,024 ) $ 12.60 Outstanding at December 31, 2015 5,583,531 $ 7.20 4.4 years $ 4.3 million Options/SSARs vested or expected to vest 5,464,418 $ 7.20 4.3 years $ 4.3 million Exercisable shares at December 31, 2015 2,794,497 $ 7.37 3.2 years $ 3.3 million We received cash of $0.7 million and $0.3 million from the exercise of stock options for the years ended December 31, 2015 and 2014, respectively. The aggregate intrinsic value of options exercised during the year ended December 31, 2015 totaled $0.7 million . For the year ended December 31, 2014 the aggregate intrinsic value of options exercised was not significant. No options were exercised in the year ended December 31, 2013 . The aggregate intrinsic value of SSARs exercised during the years ended December 31, 2015 , 2014 and 2013 totaled $2.0 million , $3.6 million and $0.7 million , respectively. The fair value of options vested during the years ended December 31, 2015 , 2014 and 2013 was $3.8 million , $3.2 million and $1.9 million , respectively. As of December 31, 2015 , we had unrecognized compensation expense related to stock options of $4.6 million , which will be recognized over a weighted-average period of 1.5 years. Stock Unit Awards RSUs vest over a pre-determined period of time, generally three to four years from the date of grant. Stock-based compensation expense for the years ended December 31, 2015 , 2014 and 2013 includes $0.8 million , $0.8 million and $0.9 million , respectively, of expense related to RSUs granted to non-employee directors, which became fully vested on the grant date. PSUs also vest over a pre-determined period of time, minimally three years, but are further subject to the achievement of certain business performance criteria in future periods. Based upon the level of achieved performance, the number of shares actually awarded can vary from 0% to 150% of the original grant. There were 2,007,117 RSUs outstanding at December 31, 2015 . All outstanding RSUs as of December 31, 2015 vest within three years of their date of grant. We generally recognize compensation expense for our RSU awards ratably over the service period. Also outstanding at December 31, 2015 were 3,197,735 PSUs. All outstanding PSUs as of December 31, 2015 vest at the end of their respective performance periods subject to percentage achieved of the performance targets associated with such awards. Upon vesting, all of the remaining PSU awards will be converted into the right to receive one share of common stock of the Company for each unit that vests. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is generally recognized over the period during which the employee provides the requisite service to the Company. We generally recognize compensation expense for our PSU awards ratably over the performance period based on management’s judgment of the likelihood that performance measures will be attained. A summary of the changes in the RSUs outstanding under our equity compensation plan during 2015 are presented below: Stock Weighted Outstanding at December 31, 2014 2,430,683 $ 8.02 Granted 668,619 $ 7.58 Vested and distributed (1,004,964 ) $ 9.62 Vested and distribution deferred (26,585 ) $ 8.14 Forfeited (60,636 ) $ 6.79 Outstanding at December 31, 2015 2,007,117 $ 7.11 Vested and deferred at December 31, 2015 (1) 228,883 $ 7.93 (1) Included in outstanding at December 31, 2015 . Vested and distribution deferred RSUs are primarily related to deferred compensation for non-employee directors. For the years ended December 31, 2014 and 2013 we granted 881,554 and 791,349 shares of RSUs, respectively. The weighted-average grant date fair value of our RSUs was $7.58 , $6.12 , and $7.14 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The fair value of RSUs that vested during the years ended December 31, 2015 , 2014 and 2013 was $10.3 million , $3.2 million and $1.0 million , respectively. As of December 31, 2015 , we have unrecognized compensation expense related to RSUs of $4.3 million . The unrecognized compensation expense related to RSUs will be recognized over a weighted-average period of 1.7 years. A summary of the changes in the PSUs outstanding under our equity compensation plan during 2015 are presented below: Stock Weighted Outstanding at December 31, 2014 2,837,162 $ 7.05 Granted 1,017,702 $ 7.52 Vested (697,172 ) $ 7.75 Forfeited and cancelled (45,143 ) $ 6.63 Other - increase due to performance of PSU's 85,186 $ 7.81 Outstanding at December 31, 2015 3,197,735 $ 7.07 For the years ended December 31, 2014 and 2013 we granted 1,316,867 and 1,174,465 shares of PSUs, respectively. For the years ended December 31, 2015 , 2014 and 2013 we paid out 697,172 , 496,926 and 419,205 shares of PSUs, respectively. The weighted-average grant date fair value of our PSUs was $7.52 , $6.14 , and $7.59 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The fair value of PSUs that vested during the years ended December 31, 2015 , 2014 and 2013 was $5.4 million , $4.4 million and $3.0 million respectively. As of December 31, 2015 , we have unrecognized compensation expense related to PSUs of $7.0 million . The unrecognized compensation expense related to PSUs will be recognized over a weighted-average period of 1.7 years. We will satisfy the requirement for delivering the common shares for our stock-based plan by issuing new shares. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories are stated at the lower of cost or market value. The components of inventories were as follows: December 31, (in millions of dollars) 2015 2014 Raw materials $ 33.3 $ 36.7 Work in process 2.6 2.0 Finished goods 167.7 191.2 Total inventories $ 203.6 $ 229.9 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, Plant and Equipment, Net The components of net property, plant and equipment were as follows: December 31, (in millions of dollars) 2015 2014 Land and improvements $ 17.6 $ 21.5 Buildings and improvements to leaseholds 120.0 129.0 Machinery and equipment 358.5 374.2 Construction in progress 30.0 23.0 526.1 547.7 Less: accumulated depreciation (317.0 ) (312.2 ) Property, plant and equipment, net (1) $ 209.1 $ 235.5 (1) Net property, plant and equipment as of December 31, 2015 and 2014 contained $40.7 million and $37.0 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $6.1 million , $7.4 million and $6.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangibles | 8. Goodwill and Identifiable Intangible Assets Goodwill Changes in the net carrying amount of goodwill by segment were as follows: (in millions of dollars) ACCO Brands North America ACCO Brands International Computer Products Group Total Balance at December 31, 2013 $ 393.1 $ 168.4 $ 6.8 $ 568.3 Translation (5.5 ) (17.9 ) — (23.4 ) Balance at December 31, 2014 387.6 150.5 6.8 544.9 Translation (10.1 ) (37.9 ) — (48.0 ) Balance at December 31, 2015 $ 377.5 $ 112.6 $ 6.8 $ 496.9 Goodwill $ 508.4 $ 196.8 $ 6.8 $ 712.0 Accumulated impairment losses (130.9 ) (84.2 ) — (215.1 ) Balance at December 31, 2015 $ 377.5 $ 112.6 $ 6.8 $ 496.9 The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are the ACCO Brands North America, ACCO Brands International and Computer Products Group segments. We test goodwill for impairment at least annually 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. The Company performed this annual assessment, on a qualitative basis, as allowed by GAAP, in the second quarter of 2015 and concluded that no impairment existed. A considerable amount of management judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of each reporting unit and the indefinite lived intangible assets. While we believe our judgments and assumptions are reasonable, different assumptions could change the estimated fair values and, therefore, impairment charges could be required. Significant negative industry or economic trends, disruptions to our business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in the use of the assets or in entity structure and divestitures may adversely impact the assumptions used in the valuations and ultimately result in future impairment charges. Identifiable Intangibles We test indefinite-lived intangibles for impairment at least annually 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 performed this annual assessment in the second quarter of 2015 and concluded that no impairment exists. In the fourth quarter of 2015 we performed a quantitative test (Step 1), as we identified a trigger event related to our trade name primarily used in Brazil. While we concluded that no impairment existed, the trade name's fair value has been significantly reduced. Key financial assumptions utilized to determine the fair value of our trade name primarily used in Brazil included a long-term growth rate of 6.5% and a 14.5% discount rate. The fair values of certain other indefinite-lived trade names are also not substantially above their carrying values. As of December 31, 2015 the aggregate carrying value of indefinite-lived trade names not substantially above their fair values was $176.6 million . The gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 471.8 $ (44.5 ) (1) $ 427.3 $ 499.4 $ (44.5 ) (1) $ 454.9 Amortizable intangible assets: Trade names 122.6 (61.7 ) 60.9 127.7 (55.5 ) 72.2 Customer and contractual relationships 94.9 (63.1 ) 31.8 100.4 (57.2 ) 43.2 Patents/proprietary technology 0.9 — 0.9 10.2 (9.1 ) 1.1 Subtotal 218.4 (124.8 ) 93.6 238.3 (121.8 ) 116.5 Total identifiable intangibles $ 690.2 $ (169.3 ) $ 520.9 $ 737.7 $ (166.3 ) $ 571.4 (1) 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 was $ 19.6 million , $ 22.2 million and $ 24.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions of dollars) 2016 2017 2018 2019 2020 Estimated amortization expense $ 17.5 $ 14.3 $ 12.1 $ 9.9 $ 7.8 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. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 9. Restructuring During 2014 and in years prior, we initiated restructuring actions which further enhanced our ongoing efforts to centralize, control and streamline our global and regional operational, supply chain and administrative functions, primarily associated with our North American school, office and Computer Products Group workforce. For the years ended December 31, 2015 , 2014 and 2013 , we recorded restructuring charges (credits) of $(0.4) million , $5.5 million and $30.1 million , respectively. The most significant charges were recorded in 2013 in association with post-merger integration activities of our North American operations following our acquisition of Mead C&OP in 2012, changes to our European business model and manufacturing footprint and the closure of our Brampton, Canada distribution and manufacturing facility. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2015 was as follows: (in millions of dollars) Balance at December 31, 2014 (Income)/ Provision Cash Non-cash Balance at December 31, 2015 Employee termination costs $ 7.8 $ (0.6 ) $ (6.1 ) $ (0.3 ) $ 0.8 Termination of lease agreements 0.6 0.2 (0.6 ) — 0.2 Total restructuring liability $ 8.4 $ (0.4 ) $ (6.7 ) $ (0.3 ) $ 1.0 Management expects the $0.8 million employee termination costs balance to be substantially paid within the next three months. Cash payments associated with lease termination costs of $0.2 million are also expected to be paid within the next three months. The Company's manufacturing facility located in the Czech Republic was sold during the second quarter of 2015 and generated net cash proceeds of $1.0 million . An immaterial gain was recognized on the sale and the cash proceeds are excluded from the table above. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2014 was as follows: (in millions of dollars) Balance at December 31, 2013 Provision Cash Non-cash Balance at December 31, 2014 Employee termination costs $ 19.1 4.3 (15.3 ) (0.3 ) $ 7.8 Termination of lease agreements 1.4 0.5 (1.5 ) 0.2 0.6 Asset impairments/net loss on disposal of assets resulting from restructuring activities — 0.6 — (0.6 ) — Other — 0.1 (0.1 ) — — Total restructuring liability $ 20.5 $ 5.5 $ (16.9 ) $ (0.7 ) $ 8.4 The Company's East Texas, Pennsylvania manufacturing and distribution facility was sold during 2014 and generated net cash proceeds of $3.2 million . An immaterial loss was recognized on the sale and the cash proceeds are excluded from the table above. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2013 was as follows: (in millions of dollars) Balance at December 31, 2012 Provision Cash Non-cash Balance at December 31, 2013 Employee termination costs 15.2 26.4 (22.5 ) — $ 19.1 Termination of lease agreements 0.2 1.9 (0.7 ) — 1.4 Asset impairments/net loss on disposal of assets resulting from restructuring activities — 1.2 0.5 (1.7 ) — Other — 0.6 (0.6 ) — — Total restructuring liability $ 15.4 $ 30.1 $ (23.3 ) $ (1.7 ) $ 20.5 Not included in the restructuring table above is a $2.5 million net gain on the sale of the Company's Ireland distribution facility. The sale generated net cash proceeds of $3.8 million . The gain on sale was recognized in the Consolidated Statements of Income in SG&A. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of income from continuing operations before income tax were as follows: (in millions of dollars) 2015 2014 2013 Domestic operations $ 60.9 $ 43.5 $ 1.8 Foreign operations 70.5 93.5 89.9 Total $ 131.4 $ 137.0 $ 91.7 The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 35% to our effective income tax rate for continuing operations was as follows: (in millions of dollars) 2015 2014 2013 Income tax at U.S. statutory rate of 35% $ 46.0 $ 47.9 $ 32.1 State, local and other tax, net of federal benefit 2.1 2.1 (1.4 ) U.S. effect of foreign dividends and earnings 3.9 7.4 7.5 Unrealized foreign currency benefit on intercompany debt (0.7 ) (3.0 ) (3.5 ) Foreign income taxed at a lower effective rate (5.6 ) (8.6 ) (6.4 ) Interest on Brazilian Tax Assessment 2.7 3.2 1.8 Expiration of tax credits 1.0 11.7 — Decrease in valuation allowance (1.3 ) (11.5 ) (11.6 ) Correction of deferred tax error — — (3.1 ) Other (2.6 ) (3.8 ) (1.0 ) Income taxes as reported $ 45.5 $ 45.4 $ 14.4 Effective tax rate 34.6 % 33.1 % 15.7 % For 2015 , we recorded an income tax expense from continuing operations of $45.5 million on income before taxes of $131.4 million . The effective rate for 2015 of 34.6% approximated the U.S. statutory tax rate of 35% . For 2014 , we recorded an income tax expense from continuing operations of $45.4 million on income before taxes of $137.0 million . The low effective rate for 2014 of 33.1% was less than the U.S. statutory income tax rate primarily due to earnings from foreign jurisdictions, which are taxed at a lower rate. In 2014 , the Foreign Tax Credit Carryover from 2005 in the amount of $11.7 million expired; the valuation allowance on the carryover was also removed. These items netted together and did not affect income tax expense. For 2013, we recorded an income tax expense from continuing operations of $14.4 million on income before taxes of $91.7 million . Included in the results for 2013 is an out-of-period adjustment of $3.1 million made to correct an error related to the estimate of the tax benefit for certain equity compensation grants exercised during 2012. The Company determined that the impact of the error was not significant to the current or prior period, and accordingly, a restatement of the prior period tax expense was not deemed to be necessary. The low effective rate for 2013 of 15.7% was primarily due to the net tax benefit from the release of foreign valuation allowances of $11.6 million and earnings from foreign jurisdictions, which are taxed at a lower rate. We continually review the need for establishing or releasing valuation allowances on our deferred tax attributes. In 2015 the company had a net tax benefit from the release and generation of valuation allowances in U.S. state and certain foreign jurisdictions in the amount of $0.3 million . In 2014, the company had a net tax expense from the release and generation of valuation allowances in U.S. state and certain foreign jurisdictions in the amount of $0.2 million . In 2013, the company had a net tax benefit from the release and generation of valuation allowances in certain foreign jurisdictions in the amount of $11.6 million . The U.S. federal statute of limitations remains open for the year 2012 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia ( 2011 forward), Brazil ( 2010 forward), Canada ( 2007 forward) and the U.K. ( 2014 forward). We are currently under examination in various foreign jurisdictions. The components of the income tax expense (benefit) from continuing operations were as follows: (in millions of dollars) 2015 2014 2013 Current expense Federal and other $ 2.1 $ 1.6 $ 0.8 Foreign 16.0 23.2 25.3 Total current income tax expense 18.1 24.8 26.1 Deferred expense (benefit) Federal and other 22.8 15.4 (2.8 ) Foreign 4.6 5.2 (8.9 ) Total deferred income tax expense (benefit) 27.4 20.6 (11.7 ) Total income tax expense $ 45.5 $ 45.4 $ 14.4 The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2015 2014 Deferred tax assets Compensation and benefits $ 17.3 $ 20.4 Pension 27.9 32.0 Inventory 11.4 7.1 Other reserves 17.1 19.8 Accounts receivable 7.7 7.6 Foreign tax credit carryforwards 10.9 11.9 Net operating loss carryforwards 56.9 87.5 Unrealized foreign currency benefit on intercompany debt 3.0 3.2 Other 9.4 8.8 Gross deferred income tax assets 161.6 198.3 Valuation allowance (22.1 ) (23.9 ) Net deferred tax assets 139.5 174.4 Deferred tax liabilities Depreciation (16.0 ) (19.1 ) Identifiable intangibles (240.7 ) (256.6 ) Gross deferred tax liabilities (256.7 ) (275.7 ) Net deferred tax liabilities $ (117.2 ) $ (101.3 ) Deferred income taxes are not provided on certain undistributed earnings of foreign subsidiaries that are expected to be permanently reinvested in those companies, which aggregate to approximately $540 million and $565 million as of December 31, 2015 and at 2014 , respectively. If these amounts were distributed to the U.S., in the form of a dividend or otherwise, we would be subject to additional U.S. income taxes. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable. As of December 31, 2015 , $172.1 million of net operating loss carryforwards are available to reduce future taxable income of domestic and international companies. These loss carryforwards expire in the years 2016 through 2031 or have an unlimited carryover period. Interest and penalties related to unrecognized tax benefits are recognized within " Income tax expense " in the Consolidated Statements of Income . As of December 31, 2015 , we have accrued a cumulative amount of $10.0 million for interest and penalties on unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows: (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 45.9 $ 52.1 $ 56.3 Additions for tax positions of prior years 3.0 3.5 2.4 Reductions for tax positions of prior years — (4.2 ) — Settlements — — (0.1 ) Foreign exchange changes (14.1 ) (5.5 ) (6.5 ) Balance at end of year $ 34.8 $ 45.9 $ 52.1 As of December 31, 2015 the amount of unrecognized tax benefits decreased to $34.8 million , of which $33.1 million would affect our effective tax rate, if recognized. We expect the amount of unrecognized tax benefits to change within the next twelve months, but these changes are not expected to have a significant impact on our results of operations or financial position. None of the positions included in the unrecognized tax benefit relate to tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about such deductibility. Income Tax Assessment In connection with our May 1, 2012 acquisition of Mead C&OP, we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). In December of 2012, the Federal Revenue Department of the Ministry of Finance of Brazil ("FRD") issued a tax assessment (the "Brazilian Tax Assessment") against Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the year 2007. A second assessment challenging the deduction of goodwill from Tilibra's taxable income for the years 2008, 2009 and 2010 was issued by FRD in October 2013. Tilibra is disputing both of the tax assessments through established administrative procedures. We believe we have meritorious defenses and intend to vigorously contest these matters; however, there can be no assurances that we will ultimately prevail. We are still in the administrative stages of the process to challenge the FRD's tax assessments, and the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which is expected to take a number of years. In addition, Tilibra's 2011-2012 tax years remain open and subject to audit, and there can be no assurances that we will not receive additional tax assessments regarding the goodwill for one or both of those years. The time limit for issuing an assessment for 2011 expires in December 2016. If the FRD's initial position is ultimately sustained, the amount assessed would materially and adversely affect our cash flow in the year of settlement. Because there is no settled legal precedent on which to base a definitive opinion as to whether we will ultimately prevail, we consider the outcome of this dispute to be uncertain. Since it is not more likely than not that we will prevail, in 2012, we recorded a reserve in the amount of $44.5 million (at December 31, 2012 exchange rates) in consideration of this contingency, of which $43.3 million was recorded as an adjustment to the purchase price and which included the 2007-2012 tax years plus penalties and interest through December 2012. Included in this reserve is an assumption of penalties at 75% , which is the standard penalty. While there is a possibility that a penalty of 150% could be imposed, based on the facts in our case and existing precedent, we believe the likelihood of a 150% penalty being imposed is not more likely than not at December 31, 2015. In the meantime, we will continue to actively monitor administrative and judicial court decisions and evaluate their impact, if any, on our legal assessment of the ultimate outcome of our case. In addition, we will continue to accrue interest related to this contingency until such time as the outcome is known or until evidence is presented that we are more likely than not to prevail. During 2015 , 2014 and 2013 , we accrued additional interest as a charge to current tax expense of $2.7 million , $3.2 million and $1.8 million , respectively. At current exchange rates, our accrual through December 31, 2015 , including tax, penalties and interest is $28.2 million . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings per Share Total outstanding shares as of December 31, 2015 and 2014 were 105.6 million and 111.9 million , respectively. Under our stock repurchase program for the years ended December 31, 2015 and 2014 , we repurchased and retired 7.7 million and 2.8 million shares, respectively, of common stock. In addition, for the years ended December 31, 2015 and 2014 we acquired 0.7 million and 0.4 million , respectively, of treasury shares, primarily related to tax withholding for share-based compensation. The calculation of basic earnings per common share is based on the weighted average number of common shares outstanding in the year, or period, over which they were outstanding. Our calculation of diluted earnings per common share assumes that any common shares outstanding were increased by shares that would be issued upon exercise of those stock units for which the average market price for the period exceeds the exercise price less the shares that could have been purchased by the Company with the related proceeds, including compensation expense measured but not yet recognized, net of tax. (in millions) 2015 2014 2013 Weighted-average number of common shares outstanding — basic 108.8 113.7 113.5 Stock options 0.2 0.1 — Stock-settled stock appreciation rights 0.3 0.6 0.9 Restricted stock units 1.3 1.9 1.3 Adjusted weighted-average shares and assumed conversions — diluted 110.6 116.3 115.7 Awards of potentially dilutive shares of common stock, which have exercise prices that were higher than the average market price during the period, are not included in the computation of dilutive earnings per share as their effect would have been anti-dilutive. For the years ended December 31, 2015 , 2014 and 2013 , these shares were approximately 5.5 million , 4.3 million and 4.9 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. Derivative Financial Instruments We are exposed to various market risks, including changes in foreign currency exchange rates and interest rate changes. We enter into financial instruments to manage and reduce the impact of these risks, not for trading or speculative purposes. The counterparties to these financial instruments are major financial institutions. We continually monitor our foreign currency exposures in order to maximize the overall effectiveness of our foreign currency hedge positions. The majority of the Company’s exposure to local currency movements is in Europe (both the Euro and the British pound), Brazil, Canada, Australia, Mexico and Japan. Principal currencies hedged include the U.S. dollar, Euro, Australian dollar, Canadian dollar, British pound and Japanese yen. We are subject to credit risk, which relates to the ability of counterparties to meet their contractual payment obligations or the potential non-performance by counterparties to financial instrument contracts. Management continues to monitor the status of our counterparties and will take action, as appropriate, to further manage our counterparty credit risk. There are no credit contingency features in our derivative financial instruments. When hedge accounting is applicable, on the date we enter into a derivative, the derivative is designated as a hedge of the identified exposure. We measure the effectiveness of our hedging relationships both at hedge inception and on an ongoing basis. Forward Currency Contracts We enter into forward foreign currency contracts to reduce the effect of fluctuating foreign currencies, primarily on foreign denominated inventory purchases and intercompany loans. Forward currency contracts are used to hedge foreign denominated inventory purchases for Europe, Canada, Australia and Japan and are designated as cash flow hedges. Unrealized gains and losses on these contracts for inventory purchases are deferred in other comprehensive income (loss) until the contracts are settled and the underlying hedged transactions are recognized, at which time the deferred gains or losses will be reported in the " Cost of products sold " line in the Consolidated Statements of Income . As of December 31, 2015 and 2014 , the Company had cash flow designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $68.2 million and $68.4 million , respectively. Forward currency contracts used to hedge foreign denominated intercompany loans are not designated as hedging instruments. Gains and losses on these derivative instruments are recognized within " Other expense, net " in the Consolidated Statements of Income and are largely offset by the change in the current translated value of the hedged item. The periods of the forward foreign exchange contracts correspond to the periods of the hedged transactions, and do not extend beyond 2016 . As of December 31, 2015 and 2014 , we have undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $33.3 million and $55.8 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2015 and 2014 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2015 December 31, 2014 Balance Sheet December 31, 2015 December 31, 2014 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.9 $ 4.6 Other current liabilities $ 0.3 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.7 0.1 Other current liabilities 0.1 0.4 Total derivatives $ 2.6 $ 4.7 $ 0.4 $ 0.5 The following tables summarizes the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in OCI (Effective Portion) Location of (Gain) Loss Reclassified from OCI to Income Amount of (Gain) Loss (in millions of dollars) 2015 2014 2013 2015 2014 2013 Cash flow hedges: Foreign exchange contracts $ 8.2 $ 6.9 $ 3.7 Cost of products sold $ (10.9 ) $ (3.5 ) $ (3.4 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2015 2014 2013 Foreign exchange contracts Other expense, net $ (0.5 ) $ 1.3 $ (0.6 ) |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | 13. Fair Value of Financial Instruments In establishing a fair value, there is a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The basis of the fair value measurement is categorized in three levels, in order of priority, as described below: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability We utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We have determined that our financial assets and liabilities described in " Note 12. Derivative Financial Instruments " are Level 2 in the fair value hierarchy. The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 : (in millions of dollars) December 31, 2015 December 31, 2014 Assets: Forward currency contracts $ 2.6 $ 4.7 Liabilities: Forward currency contracts $ 0.4 $ 0.5 Our forward currency contracts are included in " Other current assets " or " Other current liabilities " and mature within 12 months. The forward foreign currency exchange contracts are primarily valued based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. As such, these derivative instruments are classified within Level 2. The fair values of cash and cash equivalents, notes payable to banks, accounts receivable and accounts payable approximate carrying amounts due principally to their short maturities. The carrying amount of total debt was $729.0 million and $800.6 million and the estimated fair value of total debt was $740.3 million and $831.9 million as of December 31, 2015 and 2014 , respectively. The fair values are determined from quoted market prices, where available, and from investment bankers using current interest rates considering credit ratings and the remaining terms of maturity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) Comprehensive income is defined as net income (loss) and other changes in stockholders’ equity from transactions and other events from sources other than stockholders. The components of, and changes in, accumulated other comprehensive income (loss) were as follows: (in millions of dollars) Derivative Unrecognized Accumulated Balance at December 31, 2013 $ 0.3 $ (89.6 ) $ (96.3 ) $ (185.6 ) Other comprehensive income (loss) before reclassifications, net of tax 4.9 (76.4 ) (37.1 ) (108.6 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (2.5 ) — 4.1 1.6 Balance at December 31, 2014 2.7 (166.0 ) (129.3 ) (292.6 ) Other comprehensive income (loss) before reclassifications, net of tax 5.8 (136.7 ) (0.5 ) (131.4 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (7.7 ) — 2.5 (5.2 ) Balance at December 31, 2015 $ 0.8 $ (302.7 ) $ (127.3 ) $ (429.2 ) The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 , 2014 and 2013 were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Gain on cash flow hedges: Foreign exchange contracts $ 10.9 $ 3.5 $ 3.4 Cost of products sold Tax expense (3.2 ) (1.0 ) (1.0 ) Income tax expense Net of tax $ 7.7 $ 2.5 $ 2.4 Defined benefit plan items: Amortization of actuarial loss $ (3.6 ) $ (5.9 ) $ (11.4 ) (1) Amortization of prior service cost (0.1 ) (0.3 ) (0.1 ) (1) Total before tax (3.7 ) (6.2 ) (11.5 ) Tax benefit 1.2 $ 2.1 $ 4.0 Income tax expense Net of tax $ (2.5 ) $ (4.1 ) $ (7.5 ) Total reclassifications for the period, net of tax $ 5.2 $ (1.6 ) $ (5.1 ) (1) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See " Note 4. Pension and Other Retiree Benefits " for additional details). |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 15. Information on Business Segments The Company's three business segments are described below. ACCO Brands North America and ACCO Brands International ACCO Brands North America and ACCO Brands International manufacture, source and sell traditional office products, school supplies and calendar products. ACCO Brands North America comprises the U.S. and Canada, and ACCO Brands International comprises the rest of the world, primarily Northern Europe, Brazil, Australia and Mexico. Our office, school and calendar product lines use name brands such as AT-A-GLANCE ® , Day-Timer ® , Five Star ® , GBC ® , Hilroy, Marbig, Mead ® , NOBO, Quartet ® , Rexel, Swingline ® , Tilibra, Wilson Jones ® and many others. Products and brands are not confined to one channel or product category and are sold based on end-user preference in each geographic location. The majority of our office products, such as stapling, binding and laminating equipment and related consumable supplies, shredders and whiteboards, are used by businesses. Most of these end-users purchase their products from our customers, which include traditional office supply resellers, wholesalers and other retailers, including on-line retailers. We also supply some of our products directly to large commercial and industrial end-users, and provide business machine maintenance and certain repair services. Additionally, we also supply private label products within the office products sector. Our school products include notebooks, folders, decorative calendars and stationery products. We distribute our school products primarily through mass merchandisers, and other retailers, such as grocery, drug and office superstores as well as on-line retailers. We also supply private label products within the school products sector. Our calendar products are sold through all the same channels where we sell office or school products, as well as directly to consumers both on-line and through direct mail. Our customers are primarily large global and regional resellers of our products including traditional office supply resellers, wholesalers and other retailers, including on-line retailers. Mass merchandisers and retail channels primarily sell to individual consumers but also to small businesses. We also sell to commercial contract dealers, wholesalers, distributors and independent dealers who primarily serve business end-users. Over half of our product sales by our customers are to business end-users, who generally seek premium products that have added value or ease-of-use features and a reputation for reliability, performance and professional appearance. Some of our binding and laminating equipment products are sold directly to high-volume end-users and commercial reprographic centers. We also sell calendar and computer products directly to consumers. Computer Products Group Our Computer Products Group designs, sources, distributes, markets and sells accessories for laptop and desktop computers and tablets. These accessories primarily include security products, input devices such as presenters, mice and trackballs, ergonomic aids such as foot and wrist rests, docking stations, and other PC and tablet accessories. We sell these products mostly under the Kensington ® , Microsaver ® and ClickSafe ® brand names, with the majority of revenue coming from the U.S. and Northern Europe. Our computer products are manufactured by third-party suppliers, principally in Asia, and are distributed from our regional facilities. Our computer products are sold primarily to consumer electronics retailers, information technology value-added resellers, original equipment manufacturers, and office products retailers, as well as directly to consumers on-line. Net sales by business segment for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 ACCO Brands North America $ 963.3 $ 1,006.0 $ 1,041.4 ACCO Brands International 426.9 546.9 566.6 Computer Products Group 120.2 136.3 157.1 Net sales $ 1,510.4 $ 1,689.2 $ 1,765.1 Operating income by business segment for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 ACCO Brands North America $ 147.6 $ 140.7 $ 98.2 ACCO Brands International 40.8 62.9 66.5 Computer Products Group 10.3 8.2 13.7 Segment operating income 198.7 211.8 178.4 Corporate (35.2 ) (38.2 ) (32.6 ) Operating income (a) 163.5 173.6 145.8 Interest expense 44.5 49.5 59.0 Interest income (6.6 ) (5.6 ) (4.3 ) Equity in earnings of joint ventures (7.9 ) (8.1 ) (8.2 ) Other expense, net 2.1 0.8 7.6 Income from continuing operations before income tax $ 131.4 $ 137.0 $ 91.7 (a) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. The following table presents the measure of segment assets used by the Company’s chief operating decision maker. December 31, (in millions of dollars) 2015 2014 ACCO Brands North America (b) $ 413.8 $ 433.7 ACCO Brands International (b) 335.0 429.7 Computer Products Group (b) 61.5 62.4 Total segment assets 810.3 925.8 Unallocated assets 1,142.0 1,287.9 Corporate (b) 1.1 1.4 Total assets $ 1,953.4 $ 2,215.1 (b) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. As a supplement to the presentation of segment assets presented above, the table below presents segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations. December 31, (in millions of dollars) 2015 2014 ACCO Brands North America (c) $ 1,220.7 $ 1,272.4 ACCO Brands International (c) 531.5 692.7 Computer Products Group (c) 75.9 77.0 Total segment assets 1,828.1 2,042.1 Unallocated assets 124.2 171.6 Corporate (c) 1.1 1.4 Total assets $ 1,953.4 $ 2,215.1 (c) Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. Property, plant and equipment, net by geographic region were as follows: December 31, (in millions of dollars) 2015 2014 U.S. $ 111.5 $ 122.0 U.K. 38.9 34.1 Brazil 31.9 49.3 Australia 10.6 12.0 Other countries 16.2 18.1 Property, plant and equipment, net $ 209.1 $ 235.5 Net sales by geographic region (d) for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 U.S. $ 904.3 $ 921.0 $ 955.5 Canada 121.4 150.6 159.7 Netherlands 108.7 130.2 130.2 Brazil 92.0 154.0 157.2 Australia 91.8 108.5 119.8 U.K. 76.4 89.1 101.3 Mexico 49.6 58.8 58.9 Other countries 66.2 77.0 82.5 Net sales $ 1,510.4 $ 1,689.2 $ 1,765.1 (d) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. Top Customers Net sales to our five largest customers totaled $637.7 million , $706.0 million and $680.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Net sales to Staples, our largest customer, were $204.1 million ( 14% ), $224.1 million ( 13% ) and $229.5 million ( 13% ) for the years ended December 31, 2015 , 2014 and 2013 , respectively. Net sales to Office Depot, our second largest customer, were $152.5 million ( 10% ) and $190.9 million ( 11% ) for the years ended December 31, 2015 , and 2014 , respectively. Net sales to no other customers exceeded 10% of net sales for any of the last three years. A significant percentage of our sales are to customers engaged in the office products resale industry. Concentration of credit risk with respect to trade accounts receivable is partially mitigated because a large number of geographically diverse customers make up each operating company's domestic and international customer base, thus spreading the credit risk. As of December 31, 2015 and 2014 , our top five trade account receivables totaled $152.3 million and $144.2 million , respectively. |
Joint Venture Investment
Joint Venture Investment | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Investments | 16. Joint Venture Investment Summarized below is financial information for the Company’s joint venture, which is accounted for under the equity method. Accordingly, we record our proportionate share of earnings or losses on the line entitled " Equity in earnings of joint ventures " in the Consolidated Statements of Income . Our share of the net assets of the joint venture is included within " Other non-current assets " in the Consolidated Balance Sheets. Year Ended December 31, (in millions of dollars) 2015 2014 2013 Net sales $ 111.2 $ 121.4 $ 105.4 Gross profit 45.5 48.2 44.8 Net income 15.8 16.4 16.4 December 31, (in millions of dollars) 2015 2014 Current assets $ 76.6 $ 83.4 Non-current assets 43.6 47.3 Current liabilities 37.5 40.7 Non-current liabilities 13.1 22.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Pending Litigation In connection with our May 1, 2012 acquisition of Mead C&OP, we assumed all of the tax liabilities for the acquired foreign operations, including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). See " Note 10. Income Taxes - Income Tax Assessment " for details on tax assessments issued by the FRD against Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the years 2007 through 2010. There are various other claims, lawsuits and pending actions against us incidental to our operations. It is the opinion of management that (other than the Brazilian Tax Assessment) the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations or cash flow. However, there is no assurance that we will ultimately be successful in our defense of any of these matters or that an adverse outcome in any matter will not affect our results of operations, financial condition or cash flow. Lease Commitments Future minimum rental payments for all non-cancelable operating leases (reduced by minor amounts from subleases) as of December 31, 2015 were as follows: (in millions of dollars) 2016 $ 20.5 2017 17.7 2018 15.2 2019 14.5 2020 13.3 Thereafter 22.8 Total minimum rental payments $ 104.0 Less minimum rentals to be received under non-cancelable subleases 3.8 Future minimum payments for operating leases, net of sublease rental income $ 100.2 Total rental expense reported in our Consolidated Statements of Income for all non-cancelable operating leases (reduced by minor amounts for subleases) amounted to $21.2 million , $23.1 million and $25.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Unconditional Purchase Commitments Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2015 were as follows: (in millions of dollars) 2016 $ 96.4 2017 7.5 2018 — 2019 — 2020 — Thereafter — Total unconditional purchase commitments $ 103.9 Environmental We are subject to national, state, provincial and/or local environmental laws and regulations concerning the discharge of materials into the environment and the handling, disposal and clean-up of waste materials and otherwise relating to the protection of the environment. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that we may undertake in the future. In the opinion of our management, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material adverse effect upon our capital expenditures, financial condition and results of operations or competitive position. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 18. Quarterly Financial Information (Unaudited) The following is an analysis of certain line items in the Consolidated Statements of Income by quarter for 2015 and 2014 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2015 Net sales (1) $ 290.0 $ 394.7 $ 413.6 $ 412.1 Gross profit 80.2 126.7 133.7 137.8 Operating income 2.6 49.2 54.8 56.9 Net income (loss) $ (5.8 ) $ 27.7 $ 32.6 $ 31.4 Basic income (loss) per share: Net income (loss) (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.30 Diluted income (loss) per share: Net income (loss) (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.29 2014 Net sales (1) $ 329.4 $ 427.7 $ 472.2 $ 459.9 Gross profit 88.5 131.2 153.3 156.9 Operating income (loss) (0.6 ) 43.9 61.8 68.5 Net income (loss) $ (7.8 ) $ 21.3 $ 34.2 $ 43.9 Basic income (loss) per share: Net income (loss) (2) $ (0.07 ) $ 0.19 $ 0.30 $ 0.39 Diluted income (loss) per share: Net income (loss) (2) $ (0.07 ) $ 0.18 $ 0.29 $ 0.38 (1) Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE ® and Day-Timer ® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. (2) The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing common shares and repurchasing of common shares during the year. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | 19. Condensed Consolidating Financial Information Certain of the Company’s 100% owned domestic subsidiaries are required to jointly and severally, fully and unconditionally guarantee the 6.75% Senior Unsecured Notes that are due in the year 2020. Rather than filing separate financial statements for each guarantor subsidiary with the SEC, the Company has elected to present the following condensed consolidating financial statements, which includes the condensed consolidating statements of comprehensive income and results of operations for the years ended December 31, 2015 , 2014 and 2013 , cash flows for the years ended December 31, 2015 , 2014 and 2013 and financial position as of December 31, 2015 and 2014 of the Company and its guarantor and non-guarantor subsidiaries (in each case carrying investments under the equity method), and the eliminations necessary to arrive at the reported amounts included in the condensed consolidated financial statements of the Company. Condensed Consolidating Balance Sheets December 31, 2015 (in millions of dollars) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.8 $ 0.3 $ 54.3 $ — $ 55.4 Accounts receivable, net — 163.8 205.5 — 369.3 Inventories — 125.8 77.8 — 203.6 Receivables from affiliates 4.4 474.6 64.5 (543.5 ) — Other current assets 1.1 10.8 13.4 — 25.3 Total current assets 6.3 775.3 415.5 (543.5 ) 653.6 Property, plant and equipment, net 3.7 107.8 97.6 — 209.1 Deferred income taxes — — 25.1 — 25.1 Goodwill — 330.8 166.1 — 496.9 Identifiable intangibles, net 57.4 382.0 81.5 — 520.9 Other non-current assets 3.1 0.8 43.9 — 47.8 Investment in, long term receivable from affiliates 1,545.7 903.8 441.0 (2,890.5 ) — Total assets $ 1,616.2 $ 2,500.5 $ 1,270.7 $ (3,434.0 ) $ 1,953.4 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ — $ 86.6 $ 61.0 $ — $ 147.6 Accrued compensation 3.8 17.9 12.3 — 34.0 Accrued customer programs liabilities — 63.9 44.8 — 108.7 Accrued interest 6.3 — — — 6.3 Other current liabilities 2.3 22.9 33.5 — 58.7 Payables to affiliates 5.6 210.0 239.5 (455.1 ) — Total current liabilities 18.0 401.3 391.1 (455.1 ) 355.3 Long-term debt, net 720.5 — — — 720.5 Long-term notes payable to affiliates 178.2 26.7 21.0 (225.9 ) — Deferred income taxes 113.5 — 28.8 — 142.3 Pension and post-retirement benefit obligations 1.5 55.2 32.4 — 89.1 Other non-current liabilities 3.3 20.8 40.9 — 65.0 Total liabilities 1,035.0 504.0 514.2 (681.0 ) 1,372.2 Stockholders’ equity: Common stock 1.1 448.0 227.5 (675.5 ) 1.1 Treasury stock (11.8 ) — — — (11.8 ) Paid-in capital 1,988.3 1,551.1 743.2 (2,294.3 ) 1,988.3 Accumulated other comprehensive loss (429.2 ) (68.8 ) (305.8 ) 374.6 (429.2 ) (Accumulated deficit) retained earnings (967.2 ) 66.2 91.6 (157.8 ) (967.2 ) Total stockholders’ equity 581.2 1,996.5 756.5 (2,753.0 ) 581.2 Total liabilities and stockholders’ equity $ 1,616.2 $ 2,500.5 $ 1,270.7 $ (3,434.0 ) $ 1,953.4 Condensed Consolidating Balance Sheets December 31, 2014 (in millions of dollars) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 9.7 $ 0.1 $ 43.4 $ — $ 53.2 Accounts receivable, net — 156.1 264.4 — 420.5 Inventories — 129.9 100.0 — 229.9 Receivables from affiliates 4.8 302.7 68.0 (375.5 ) — Deferred income taxes 27.2 — 12.2 — 39.4 Other current assets 1.4 15.1 19.3 — 35.8 Total current assets 43.1 603.9 507.3 (375.5 ) 778.8 Property, plant and equipment, net 4.2 117.8 113.5 — 235.5 Deferred income taxes 0.9 — 30.8 — 31.7 Goodwill — 330.9 214.0 — 544.9 Identifiable intangibles, net 57.5 397.9 116.0 — 571.4 Other non-current assets 3.9 1.0 47.9 — 52.8 Investment in, long term receivable from affiliates 1,680.0 890.8 441.0 (3,011.8 ) — Total assets $ 1,789.6 $ 2,342.3 $ 1,470.5 $ (3,387.3 ) $ 2,215.1 Liabilities and Stockholders’ Equity Current liabilities: Notes payable $ — $ — $ 0.8 $ — $ 0.8 Current portion of long-term debt 0.7 0.1 — — 0.8 Accounts payable — 84.8 74.3 — 159.1 Accrued compensation 3.3 20.1 13.2 — 36.6 Accrued customer programs liabilities — 60.1 51.7 — 111.8 Accrued interest 6.5 — — — 6.5 Other current liabilities 1.9 31.0 46.9 — 79.8 Payables to affiliates 5.6 214.1 240.5 (460.2 ) — Total current liabilities 18.0 410.2 427.4 (460.2 ) 395.4 Long-term debt, net 787.7 — — — 787.7 Long-term notes payable to affiliates 178.2 26.7 31.2 (236.1 ) — Deferred income taxes 120.0 — 52.2 — 172.2 Pension and post-retirement benefit obligations 1.5 52.3 46.7 — 100.5 Other non-current liabilities 3.2 19.9 55.2 — 78.3 Total liabilities 1,108.6 509.1 612.7 (696.3 ) 1,534.1 Stockholders’ equity: Common stock 1.1 448.0 247.0 (695.0 ) 1.1 Treasury stock (5.9 ) — — — (5.9 ) Paid-in capital 2,031.5 1,551.1 743.0 (2,294.1 ) 2,031.5 Accumulated other comprehensive loss (292.6 ) (65.2 ) (183.0 ) 248.2 (292.6 ) (Accumulated deficit) retained earnings (1,053.1 ) (100.7 ) 50.8 49.9 (1,053.1 ) Total stockholders’ equity 681.0 1,833.2 857.8 (2,691.0 ) 681.0 Total liabilities and stockholders’ equity $ 1,789.6 $ 2,342.3 $ 1,470.5 $ (3,387.3 ) $ 2,215.1 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 948.5 $ 610.3 $ (48.4 ) $ 1,510.4 Cost of products sold — 645.0 435.4 (48.4 ) 1,032.0 Gross profit — 303.5 174.9 — 478.4 Advertising, selling, general and administrative expenses 42.8 154.2 98.7 — 295.7 Amortization of intangibles 0.1 16.0 3.5 — 19.6 Restructuring credits — (0.3 ) (0.1 ) — (0.4 ) Operating income (loss) (42.9 ) 133.6 72.8 — 163.5 Expense (income) from affiliates (1.2 ) (17.1 ) 18.3 — — Interest expense 45.4 — (0.9 ) — 44.5 Interest income — — (6.6 ) — (6.6 ) Equity in earnings of joint ventures — — (7.9 ) — (7.9 ) Other expense (income), net 0.7 2.0 (0.6 ) — 2.1 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (87.8 ) 148.7 70.5 — 131.4 Income tax expense 25.2 — 20.3 — 45.5 Income (loss) from continuing operations (113.0 ) 148.7 50.2 — 85.9 Loss from discontinued operations, net of income taxes — — — — — Income (loss) before earnings of wholly owned subsidiaries (113.0 ) 148.7 50.2 — 85.9 Earnings of wholly owned subsidiaries 198.9 47.3 — (246.2 ) — Net income $ 85.9 $ 196.0 $ 50.2 $ (246.2 ) $ 85.9 Comprehensive (loss) income $ (50.7 ) $ 192.4 $ (72.6 ) $ (119.8 ) $ (50.7 ) Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 969.2 $ 772.0 $ (52.0 ) $ 1,689.2 Cost of products sold — 673.4 537.9 (52.0 ) 1,159.3 Gross profit — 295.8 234.1 — 529.9 Advertising, selling, general and administrative expenses 45.4 157.1 126.1 — 328.6 Amortization of intangibles 0.1 17.7 4.4 — 22.2 Restructuring charges — 4.6 0.9 — 5.5 Operating income (loss) (45.5 ) 116.4 102.7 — 173.6 Expense (income) from affiliates (1.5 ) (20.7 ) 22.2 — — Interest expense 49.9 — (0.4 ) — 49.5 Interest income — (0.1 ) (5.5 ) — (5.6 ) Equity in earnings of joint ventures — — (8.1 ) — (8.1 ) Other expense (income), net 0.4 (0.7 ) 1.1 — 0.8 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (94.3 ) 137.9 93.4 — 137.0 Income tax expense 18.2 — 27.2 — 45.4 Income (loss) from continuing operations (112.5 ) 137.9 66.2 — 91.6 Loss from discontinued operations, net of income taxes — — — — — Income (loss) before earnings of wholly owned subsidiaries (112.5 ) 137.9 66.2 — 91.6 Earnings of wholly owned subsidiaries 204.1 62.7 — (266.8 ) — Net income $ 91.6 $ 200.6 $ 66.2 $ (266.8 ) $ 91.6 Comprehensive (loss) income $ (15.4 ) $ 181.0 $ (17.1 ) $ (163.9 ) $ (15.4 ) Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2013 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 971.2 $ 814.0 $ (20.1 ) $ 1,765.1 Cost of products sold — 669.8 567.5 (20.1 ) 1,217.2 Gross profit — 301.4 246.5 — 547.9 Advertising, selling, general and administrative expenses 40.6 183.5 123.2 — 347.3 Amortization of intangibles 0.1 19.7 4.9 — 24.7 Restructuring charges 0.5 14.3 15.3 — 30.1 Operating income (loss) (41.2 ) 83.9 103.1 — 145.8 Expense (income) from affiliates (1.5 ) (21.7 ) 23.2 — — Interest expense 58.6 — 0.4 — 59.0 Interest income — (0.1 ) (4.2 ) — (4.3 ) Equity in earnings of joint ventures — — (8.2 ) — (8.2 ) Other expense, net 4.8 0.8 2.0 — 7.6 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (103.1 ) 104.9 89.9 — 91.7 Income tax expense (benefit) (1.5 ) — 15.9 — 14.4 Income (loss) from continuing operations (101.6 ) 104.9 74.0 — 77.3 Loss from discontinued operations, net of income taxes — (0.2 ) — — (0.2 ) Income (loss) before earnings of wholly owned subsidiaries (101.6 ) 104.7 74.0 — 77.1 Earnings of wholly owned subsidiaries 178.7 72.6 — (251.3 ) — Net income $ 77.1 $ 177.3 $ 74.0 $ (251.3 ) $ 77.1 Comprehensive income $ 47.6 $ 200.6 $ 26.5 $ (227.1 ) $ 47.6 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities $ (68.2 ) $ 182.5 $ 56.9 $ 171.2 Investing activities: Additions to property, plant and equipment — (12.0 ) (15.6 ) (27.6 ) Payments for (proceeds from) interest in affiliates — 19.5 (19.5 ) — Proceeds from the disposition of assets — — 2.8 2.8 Other — — 0.2 0.2 Net cash (used) provided by investing activities — 7.5 (32.1 ) (24.6 ) Financing activities: Intercompany financing 172.4 (175.3 ) 2.9 — Net dividends 23.8 (14.4 ) (9.4 ) — Proceeds from long-term borrowings 300.0 — — 300.0 Repayments of long-term debt (370.0 ) (0.1 ) — (370.1 ) Repayments of notes payable, net — — (0.8 ) (0.8 ) Payments for debt issuance costs (1.7 ) — — (1.7 ) Repurchases of common stock (60.0 ) — — (60.0 ) Payments related to tax withholding for share-based compensation (5.9 ) — — (5.9 ) Proceeds from the exercise of stock options 0.7 — — 0.7 Net cash (used) provided by financing activities 59.3 (189.8 ) (7.3 ) (137.8 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (6.6 ) (6.6 ) Net increase (decrease) in cash and cash equivalents (8.9 ) 0.2 10.9 2.2 Cash and cash equivalents: Beginning of the period 9.7 0.1 43.4 53.2 End of the period $ 0.8 $ 0.3 $ 54.3 $ 55.4 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities $ (77.9 ) $ 182.3 $ 67.3 $ 171.7 Investing activities: Additions to property, plant and equipment (0.2 ) (10.6 ) (18.8 ) (29.6 ) Payments for (proceeds from) interest in affiliates — 20.5 (20.5 ) — Proceeds from the disposition of assets — 3.6 0.2 3.8 Net cash (used) provided by investing activities (0.2 ) 13.5 (39.1 ) (25.8 ) Financing activities: Intercompany financing 188.3 (181.3 ) (7.0 ) — Net dividends 35.4 (15.3 ) (20.1 ) — Repayments of long-term debt (121.0 ) (0.1 ) — (121.1 ) Borrowings of notes payable, net — — 1.0 1.0 Payments for debt issuance costs (0.3 ) — — (0.3 ) Repurchase of common stock (19.4 ) — — (19.4 ) Payments related to tax withholding for share-based compensation (2.5 ) — — (2.5 ) Proceeds from the exercise of stock options 0.3 — — 0.3 Net cash (used) provided by financing activities 80.8 (196.7 ) (26.1 ) (142.0 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (4.2 ) (4.2 ) Net (decrease) increase in cash and cash equivalents 2.7 (0.9 ) (2.1 ) (0.3 ) Cash and cash equivalents: Beginning of the period 7.0 1.0 45.5 53.5 End of the period $ 9.7 $ 0.1 $ 43.4 $ 53.2 Condensed Consolidating Statement of Cash Flows Year Ended December 31,2013 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities: $ (81.7 ) $ 186.5 $ 89.7 $ 194.5 Investing activities: Additions to property, plant and equipment — (21.2 ) (15.4 ) (36.6 ) Payments for (proceeds from) interest in affiliates — 55.6 (55.6 ) — Payments related to the sale of discontinued operations — (1.5 ) — (1.5 ) Proceeds from the disposition of assets — — 6.1 6.1 Cost of acquisitions, net of cash acquired — (1.3 ) — (1.3 ) Net cash (used) provided by investing activities — 31.6 (64.9 ) (33.3 ) Financing activities: Intercompany financing 143.8 (168.2 ) 24.4 — Net dividends 65.7 (45.9 ) (19.8 ) — Proceeds from long-term borrowings 530.0 — — 530.0 Repayments of long-term debt (658.1 ) — (21.4 ) (679.5 ) (Repayments) borrowings of short-term debt, net 0.5 — (1.2 ) (0.7 ) Payments for debt issuance costs (4.3 ) — — (4.3 ) Payments related to tax withholding for share-based compensation (1.0 ) — — (1.0 ) Net cash (used) provided by financing activities 76.6 (214.1 ) (18.0 ) (155.5 ) Effect of foreign exchange rate changes on cash — — (2.2 ) (2.2 ) Net increase (decrease) in cash and cash equivalents (5.1 ) 4.0 4.6 3.5 Cash and cash equivalents: Beginning of the period 12.1 (3.0 ) 40.9 50.0 End of the period $ 7.0 $ 1.0 $ 45.5 $ 53.5 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Allowances for Doubtful Accounts Changes in the allowances for doubtful accounts were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 5.5 $ 6.1 $ 6.5 Additions charged to expense 3.2 1.0 1.5 Deductions - write offs (3.5 ) (1.3 ) (1.6 ) Foreign exchange changes (0.4 ) (0.3 ) (0.3 ) Balance at end of year $ 4.8 $ 5.5 $ 6.1 Allowances for Sales Returns and Discounts Changes in the allowances for sales returns and discounts were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 12.0 $ 12.9 $ 10.6 Additions charged to expense 30.3 37.4 41.3 Deductions - returns (30.4 ) (38.4 ) (39.1 ) Foreign exchange changes (0.2 ) 0.1 0.1 Balance at end of year $ 11.7 $ 12.0 $ 12.9 Allowances for Cash Discounts Changes in the allowances for cash discounts were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 2.0 $ 2.2 $ 2.2 Additions charged to expense 14.2 15.5 16.0 Deductions - discounts taken (13.9 ) (15.6 ) (16.2 ) Foreign exchange changes (0.1 ) (0.1 ) 0.2 Balance at end of year $ 2.2 $ 2.0 $ 2.2 Warranty Reserves Changes in the reserve for warranty claims were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 1.8 $ 2.2 $ 2.8 Provision for warranties issued 1.8 2.0 2.0 Deductions - settlements made (in cash or in kind) (1.8 ) (2.4 ) (2.6 ) Foreign exchange changes (0.1 ) — — Balance at end of year $ 1.7 $ 1.8 $ 2.2 Income Tax Valuation Allowance Changes in the deferred tax valuation allowances were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 23.9 $ 33.0 $ 55.4 (Credits) charges to expense (0.3 ) 0.2 (11.6 ) Credited to other accounts (1.1 ) (8.7 ) (10.5 ) Foreign exchange changes (0.4 ) (0.6 ) (0.3 ) Balance at end of year $ 22.1 $ 23.9 $ 33.0 |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. |
Allowances for Doubtful Accounts, Discounts and Returns | Allowances for Doubtful Accounts, Discounts and Returns Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowance for doubtful accounts represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations, usually due to customers’ potential insolvency. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical experience and existing economic conditions. The allowance for sales returns represents estimated uncollectible receivables associated with the potential return of products previously sold to customers, and is recorded at the time that the sales are recognized. The allowance includes a general provision for product returns based on historical trends. In addition, the allowance includes a reserve for currently authorized customer returns that are considered to be abnormal in comparison to the historical basis. |
Inventories | Inventories Inventories are priced at the lower of cost (principally first-in, first-out with minor amounts at average) or market. A reserve is established to adjust the cost of inventory to its net realizable value. Inventory reserves are recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as product discontinuance or engineering/material changes. These estimates could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from expectations. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset are capitalized; maintenance and repair costs are expensed. Purchased computer software is capitalized and amortized over the software’s useful life. The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years We capitalize interest for major capital projects. Capitalized interest is added to the cost of the underlying assets and is depreciated over the useful lives of those assets. We capitalized interest of $1.3 million , $0.9 million and $0.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Long-Lived Assets | Long-Lived Assets We test long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable from its undiscounted cash flow. When such events occur, we compare the sum of the undiscounted cash flow expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate at the time of future cash flow, derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flow. The discount rate applied to these cash flows is based on our weighted average cost of capital, computed by selecting market rates at the valuation dates for debt and equity that are reflective of the risks associated with an investment in our industry as estimated by using comparable publicly traded companies. |
Intangible Assets | Intangible Assets Intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. In addition, amortizable intangible assets other than goodwill are amortized over their useful lives. Certain of our trade names have been assigned an indefinite life as we currently anticipate that these trade names will contribute cash flows to ACCO Brands indefinitely. We review indefinite-lived intangibles for impairment at least annually, normally in the second quarter, and whenever market or business events indicate there may be a potential adverse impact on a particular intangible. The review may be on a qualitative or quantitative basis as allowed by GAAP. We consider the implications of both external factors (e.g., market growth, pricing, competition, and technology) and internal factors (e.g., product costs, margins, support expenses, and capital investment) and their potential impact on cash flows for each business in both the near and long term, as well as their impact on any identifiable intangible asset associated with the business. Based on recent business results, consideration of significant external and internal factors, and the resulting business projections, indefinite-lived intangible assets are reviewed to determine whether they are likely to remain indefinite-lived, or whether a finite life is more appropriate. In addition, based on events in the period and future expectations, management considers whether the potential for impairment exists. Finite lived intangibles are amortized over 10 , 15 , 23 or 30 years. We performed our annual assessment in the second quarter of 2015 , on a qualitative basis and concluded that no impairment existed. In the fourth quarter of 2015 we performed a quantitative test (Step 1), as we identified a trigger event related to our trade name primarily used in Brazil. While we concluded that no impairment existed, the trade name's fair value has been significantly reduced. Key financial assumptions utilized to determine the fair value of our trade name primarily used in Brazil included a long-term growth rate of 6.5% and a 14.5% discount rate. The fair values of certain other indefinite-lived trade names are also not substantially above their carrying values. As of December 31, 2015 the aggregate carrying value of indefinite-lived trade names not substantially above their fair values was $176.6 million . |
Goodwill | Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of the acquisitions when compared to the fair value of the net assets acquired. The authoritative guidance on goodwill and other intangible assets requires that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are the ACCO Brands North America, ACCO Brands International and Computer Products Group segments. We test goodwill for impairment at least annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. As permitted by GAAP we may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test included in GAAP. Entities are not required to calculate the fair value of a reporting unit unless they determine that it is more likely than not that the fair value is less than the carrying amount. We performed our annual assessment in the second quarter of 2015 , on a qualitative basis, and concluded that it was not more likely than not that the fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if it is determined that a qualitative assessment is not appropriate, we move onto the two-step goodwill impairment test where we calculate the fair value of the reporting units. When applying a fair-value-based test the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. Given the current economic environment and the uncertainties regarding their impact on our business, there can be no assurance that our estimates and assumptions made for purposes of our qualitative impairment testing during 2015 will prove to be accurate predictions of the future. If our assumptions regarding forecasted revenue or margin growth rates of certain reporting units are not achieved, we may be required to record impairment charges in future periods, whether in connection with our next annual impairment testing in the second quarter of fiscal year 2016 or prior to that, if a triggering event is identified outside of the quarter from when the annual impairment test is performed. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. |
Employee Benefit Plans | Employee Benefit Plans We provide a range of benefits to our employees and retired employees, including pension, post-retirement, post-employment and health care benefits. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. Actuarial assumptions are reviewed on an annual basis and modifications to these assumptions are made based on current rates and trends when it is deemed appropriate. As required by GAAP, the effect of our modifications are generally recorded and amortized over future periods. |
Income Taxes | Income Taxes Deferred tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred tax assets to an amount that is more likely than not to be realized. Facts and circumstances may change and cause us to revise the conclusions on our ability to realize certain net operating losses and other deferred tax attributes. The amount of income taxes that we pay is subject to ongoing audits by federal, state and foreign tax authorities. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are revised or resolved. |
Revenue Recognition | Revenue Recognition We recognize revenue from product sales when earned, net of applicable provisions for discounts, returns and allowances. We consider revenue to be realized or realizable and earned when all of the following criteria are met: title and risk of loss have passed to the customer, persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. We also provide for our estimate of potential bad debt at the time of revenue recognition. |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes all manufacturing, product sourcing and distribution costs, including depreciation related to assets used in the manufacturing, procurement and distribution process, allocation of certain information technology costs supporting those processes, inbound and outbound freight, shipping and handling costs, purchasing costs associated with materials and packaging used in the production processes. |
Advertising, Selling, General and Administrative Expenses | Advertising, Selling, General and Administrative Expenses Advertising, selling, general and administrative expenses ("SG&A") include advertising, marketing, selling (including commissions), research and development, customer service, depreciation related to assets outside the manufacturing and distribution processes and all other general and administrative expenses outside the manufacturing and distribution functions (e.g., finance, human resources, information technology, corporate expenses, etc.). |
Advertising Costs | Advertising Costs Advertising costs amounted to $120.9 million , $130.8 million and $131.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " below, and are principally expensed as incurred. |
Customer Program Costs | Customer Program Costs Customer program costs include, but are not limited to, sales rebates, which are generally tied to achievement of certain sales volume levels, in-store promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements, and freight allowance programs. We generally recognize customer program costs as a deduction to gross sales at the time that the associated revenue is recognized. Certain customer incentives that do not directly relate to future revenues are expensed when initiated. In addition, accrued customer program liabilities principally include, but are not limited to, sales volume rebates, promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements and freight allowances as discussed above. |
Shipping and Handling | Shipping and Handling We reflect all amounts billed to customers for shipping and handling in net sales and the costs incurred from shipping and handling product (including costs to ship and move product from the seller’s place of business to the buyer’s place of business, as well as costs to store, move and prepare products for shipment) in cost of products sold. |
Warranty Reserves | Warranty Reserves We offer our customers various warranty terms based on the type of product that is sold. Estimated future obligations related to products sold under these warranty terms are provided by charges to cost of products sold in the period in which the related revenue is recognized. |
Research and Development | Research and Development Research and development expenses, which amounted to $20.0 million , $20.2 million and $22.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are classified as SG&A expenses and are charged to expense as incurred. |
Stock-Based Compensation | Stock-Based Compensation Our primary types of share-based compensation consist of stock options, restricted stock unit awards and performance stock unit awards. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Where awards are made with non-substantive vesting periods (for example, where a portion of the award vests upon retirement eligibility), we estimate and recognize expense based on the period from the grant date to the date on which the employee is retirement eligible. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period. The related translation adjustments are made directly to a separate component of accumulated other comprehensive income (loss) in stockholders’ equity. Some transactions are made in currencies different from an entity’s functional currency. Gains and losses on these foreign currency transactions are included in income as they occur. |
Derivatives Financial Instruments | Derivative Financial Instruments We recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Certain forecasted transactions, assets and liabilities are exposed to foreign currency risk. We continually monitor our foreign currency exposures in order to maximize the overall effectiveness of our foreign currency hedge positions. Principal currencies hedged include the U.S. dollar, Euro, Australian dollar, Canadian dollar, British pound and Japanese yen. |
Recent Accounting Pronouncements | Recent Accounting Standards Updates In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ("ASU 2015-14") deferring by one year the effective date of ASU 2014-09 until reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company is currently in the process of evaluating the impact of adoption of ASU 2014-09 on its consolidated financial statements and has not yet selected a transition method. In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption of ASU 2015-11 on its consolidated financial statements. Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015; early adoption is permitted. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ( "ASU 2015-15"). ASU 2015-15 provides guidance for debt issuance costs related to line-of-credit arrangements; the SEC staff stated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The company has adopted ASU 2015-03 and ASU 2015-15 in the fourth quarter of 2015 and has retrospectively adjusted its prior period balance sheet. For the year ended December 31, 2014 we have reclassified $11.3 million from " Other non-current assets " to " Long-term debt, net " related the debt issuance costs for our U.S. Dollar Senior Secured Term Loan A, due April 2020 and our Senior Unsecured Notes, due April 2020. See " Note 3. Long-term Debt and Short-term Borrowings ." In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"). The amendments in ASU 2015-17 require all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company has elected to prospectively adopt the accounting standard in the beginning of our fourth quarter of 2015. Prior periods in our Consolidated Financial Statements were not retrospectively adjusted. Other than the items mentioned above, there are no other recently issued accounting standards that are expected to have a material effect on the Company’s financial condition, results of operations or cash flow. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years The components of net property, plant and equipment were as follows: December 31, (in millions of dollars) 2015 2014 Land and improvements $ 17.6 $ 21.5 Buildings and improvements to leaseholds 120.0 129.0 Machinery and equipment 358.5 374.2 Construction in progress 30.0 23.0 526.1 547.7 Less: accumulated depreciation (317.0 ) (312.2 ) Property, plant and equipment, net (1) $ 209.1 $ 235.5 |
Long-term Debt and Short-term30
Long-term Debt and Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes payable and long-term debt, listed in order of their security interests, consisted of the following as of December 31, 2015 and 2014 : (in millions of dollars) 2015 2014 U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) $ 229.0 $ — U.S. Dollar Senior Secured Term Loan A, due May 2018 (floating interest rate of 2.24% at December 31, 2014) — 299.0 Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) 500.0 500.0 Other borrowings — 1.6 Total debt 729.0 800.6 Less: Current portion — 1.6 Debt issuance costs, unamortized (1) 8.5 11.3 Long-term debt, net $ 720.5 $ 787.7 (1) The company has adopted ASU 2015-03 in the fourth quarter of 2015, see " Note 2. Significant Accounting Policies " for details. |
Schedule of Credit Spread Based on Consolidated Leverage Ratio | The applicable rate applied to outstanding Eurodollar loans and Base Rate loans is based on the Company's Consolidated Leverage Ratio (as defined in the Restated Credit Agreement) as follows: Consolidated Leverage Ratio Eurodollar Credit Spread Base Rate Credit Spread > 4.00 to 1.00 2.50% 1.50% ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.25% 1.25% ≤ 3.50 to 1.00 and > 3.00 to 1.00 2.00% 1.00% ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50% 0.50% ≤ 2.00 to 1.00 1.25% 0.25% |
Schedule of Financial Covenant Ratio Levels | Under the Restated Credit Agreement, the Company is required to meet certain financial tests, including a maximum Consolidated Leverage Ratio as determined by reference to the following ratio: Period Maximum Consolidated Leverage Ratio (1) July 1, 2015 and thereafter 3.75:1.00 (1) The Consolidated Leverage Ratio is computed by dividing the Company's net funded indebtedness by the cumulative four-quarter-trailing EBITDA, which excludes transaction costs, restructuring and other charges up to certain limits as well as other adjustments defined in the Restated Credit Agreement. |
Pension and Other Retiree Ben31
Pension and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet Net Funded Status | The following table sets forth our defined benefit pension and post-retirement plans funded status and the amounts recognized in our Consolidated Balance Sheets: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 212.9 $ 177.4 $ 391.8 $ 371.4 $ 12.2 $ 13.3 Service cost 1.6 2.1 0.9 0.8 0.1 0.2 Interest cost 8.7 8.6 12.9 15.7 0.4 0.5 Actuarial (gain) loss (14.4 ) 34.2 (19.0 ) 48.3 (3.4 ) (0.3 ) Participants’ contributions — — 0.2 0.2 0.1 0.1 Benefits paid (10.1 ) (9.4 ) (15.9 ) (16.6 ) (0.5 ) (0.8 ) Plan amendments — — — (0.2 ) (0.2 ) (0.4 ) Foreign exchange rate changes — — (23.8 ) (27.8 ) (0.6 ) (0.4 ) Projected benefit obligation at end of year 198.7 212.9 347.1 391.8 8.1 12.2 Change in plan assets Fair value of plan assets at beginning of year 163.9 156.3 351.2 342.8 — — Actual return on plan assets (9.3 ) 10.8 (0.8 ) 43.8 — — Employer contributions 1.3 6.2 5.4 5.5 0.4 0.7 Participants’ contributions — — 0.2 0.2 0.1 0.1 Benefits paid (10.1 ) (9.4 ) (15.9 ) (16.6 ) (0.5 ) (0.8 ) Foreign exchange rate changes — — (21.2 ) (24.5 ) — — Fair value of plan assets at end of year 145.8 163.9 318.9 351.2 — — Funded status (Fair value of plan assets less PBO) $ (52.9 ) $ (49.0 ) $ (28.2 ) $ (40.6 ) $ (8.1 ) $ (12.2 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.9 $ — $ — $ — Other current liabilities — — 0.4 0.5 0.6 0.8 Pension and post-retirement benefit obligations (1) 52.9 49.0 28.7 40.1 7.5 11.4 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 55.1 51.9 75.0 78.1 (4.2 ) (1.1 ) Unrecognized prior service (credit) cost 2.0 2.4 (0.3 ) (0.4 ) (0.2 ) (1.5 ) (1) Pension and post-retirement obligations of $89.1 million as of December 31, 2015 , decreased from $100.5 million as of December 31, 2014 , primarily due to cash contributions. |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Of the amounts included within accumulated other comprehensive income (loss), we expect to recognize the following pre-tax amounts as components of net periodic benefit cost (income) for the year ended December 31, 2016 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 1.8 $ 2.4 $ (0.4 ) Prior service cost 0.4 — — $ 2.2 $ 2.4 $ (0.4 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets: U.S. International (in millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 198.7 $ 212.9 $ 334.1 $ 371.0 Accumulated benefit obligation 196.1 209.1 324.7 360.9 Fair value of plan assets 145.8 163.9 305.0 331.1 |
Components of Net Periodic Benefit Cost for Pension and Post-Retirement Plans | The components of net periodic benefit (income) cost for pension and post-retirement plans for the years ended December 31, 2015 , 2014 , and 2013 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 1.6 $ 2.1 $ 2.0 $ 0.9 $ 0.8 $ 1.6 $ 0.1 $ 0.2 $ 0.2 Interest cost 8.7 8.6 7.9 12.9 15.7 14.7 0.4 0.5 0.6 Expected return on plan assets (12.2 ) (12.0 ) (10.4 ) (21.9 ) (22.8 ) (20.6 ) — — — Amortization of net loss (gain) 2.1 5.1 9.6 2.4 1.9 2.4 (0.4 ) (1.1 ) (0.6 ) Amortization of prior service cost (credit) 0.4 0.4 0.1 — — — (0.3 ) — — Curtailment gain — — — — — (1.0 ) — — — Settlement gain — — — — — — (0.5 ) (0.1 ) — Net periodic benefit (income) cost $ 0.6 $ 4.2 $ 9.2 $ (5.7 ) $ (4.4 ) $ (2.9 ) $ (0.7 ) $ (0.5 ) $ 0.2 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations that were recognized in other comprehensive income (loss) during the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Current year actuarial loss (gain) $ 7.1 $ 35.4 $ (30.2 ) $ 3.8 $ 27.3 $ (10.0 ) $ (3.4 ) $ (0.3 ) $ (2.8 ) Amortization of actuarial (loss) gain (2.1 ) (5.1 ) (9.6 ) (2.4 ) (1.9 ) (2.4 ) 0.9 1.1 0.6 Current year prior service (credit) cost — — 3.7 — (0.2 ) — (0.2 ) (0.3 ) — Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.1 ) — — — 0.3 — — Foreign exchange rate changes — — — (5.6 ) (6.8 ) 2.1 0.1 0.1 — Total recognized in other comprehensive income (loss) $ 4.6 $ 29.9 $ (36.2 ) $ (4.2 ) $ 18.4 $ (10.3 ) $ (2.3 ) $ 0.6 $ (2.2 ) Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) $ 5.2 $ 34.1 $ (27.0 ) $ (9.9 ) $ 14.0 $ (13.2 ) $ (3.0 ) $ 0.1 $ (2.0 ) |
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.6 % 4.2 % 5.0 % 3.7 % 3.4 % 4.3 % 3.9 % 3.7 % 4.4 % Rate of compensation increase N/A N/A N/A 3.0 % 3.3 % 4.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Post-retirement U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.2 % 5.0 % 4.2 % 3.4 % 4.3 % 4.3 % 3.7 % 4.4 % 4.0 % Expected long-term rate of return 8.0 % 8.2 % 8.2 % 6.5 % 6.8 % 6.8 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 3.3 % 4.0 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit cost (income) as of December 31, 2015 , 2014 , and 2013 were as follows: Post-retirement 2015 2014 2013 Health care cost trend rate assumed for next year 7 % 8 % 8 % Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 5 % 5 % 5 % Year that the rate reaches the ultimate trend rate 2024 2023 2020 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-Percentage- 1-Percentage- (in millions of dollars) Point Increase Point Decrease Increase (decrease) on total of service and interest cost $ 0.1 $ (0.1 ) Increase (decrease) on post-retirement benefit obligation 0.7 (0.6 ) |
Schedule of Allocation of Plan Assets | Our pension plan weighted average asset allocations as of December 31, 2015 and 2014 were as follows: 2015 2014 U.S. International U.S. International Asset category Equity securities 61 % 45 % 62 % 45 % Fixed income 31 39 31 38 Real estate — 4 — 3 Other (1) 8 12 7 14 Total 100 % 100 % 100 % 100 % (1) Insurance contracts, multi-strategy hedge funds and cash and cash equivalents for certain of our plans. |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments to participants for the next ten fiscal years: Pension Post-retirement (in millions of dollars) Benefits Benefits 2016 $ 24.5 $ 0.6 2017 $ 25.1 $ 0.6 2018 $ 26.0 $ 0.6 2019 $ 26.4 $ 0.6 2020 $ 27.2 $ 0.6 Years 2021 — 2025 $ 146.3 $ 2.6 |
Schedule of Multi-employer Plans | Details regarding the plan are outlined in the table below. Pension Protection Act Zone Status FIP/RP Status Pending/Implemented Contributions Expiration Date of Collective-Bargaining Agreement Year Ended December 31, Pension Fund EIN/Pension Plan Number 2015 2014 2015 2014 2013 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.3 $ 0.4 $ 0.2 Yes 6/30/2017 |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | U.S. Pension Plan Assets The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2015 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Common stocks $ 6.9 $ — $ — $ 6.9 Mutual funds 82.6 — — 82.6 Common collective trust funds — 2.1 — 2.1 Government debt securities — 3.1 — 3.1 Corporate debt securities — 19.0 — 19.0 Asset-backed securities — 8.8 — 8.8 Multi-strategy hedge funds — 9.2 — 9.2 Government mortgage-backed securities — 7.3 — 7.3 Collateralized mortgage obligations, mortgage backed securities, and other — 6.8 — 6.8 Total $ 89.5 $ 56.3 $ — $ 145.8 The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2014 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Common stocks $ 8.3 $ — $ — $ 8.3 Mutual funds 93.2 — — 93.2 Common collective trust funds — 8.9 — 8.9 Government debt securities — 2.2 — 2.2 Corporate debt securities — 16.7 — 16.7 Asset-backed securities — 9.8 — 9.8 Multi-strategy hedge funds — 9.5 — 9.5 Government mortgage-backed securities — 8.0 — 8.0 Collateralized mortgage obligations, mortgage backed securities, and other — 7.3 — 7.3 Total $ 101.5 $ 62.4 $ — $ 163.9 |
International | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | International Pension Plans Assets The fair value measurements of our international pension plans assets by asset category as of December 31, 2015 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 1.2 $ — $ — $ 1.2 Equity securities 142.6 — — 142.6 Corporate debt securities — 121.6 — 121.6 Multi-strategy hedge funds — 23.7 — 23.7 Insurance contracts — 15.3 — 15.3 Real estate — 10.6 0.7 11.3 Government debt securities — 3.2 — 3.2 Total $ 143.8 $ 174.4 $ 0.7 $ 318.9 The fair value measurements of our international pension plans assets by asset category as of December 31, 2014 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 6.1 $ — $ — $ 6.1 Equity securities 156.7 — — 156.7 Corporate debt securities — 118.6 — 118.6 Multi-strategy hedge funds — 25.1 — 25.1 Insurance contracts — 18.4 — 18.4 Other debt securities — 12.1 — 12.1 Real estate — 9.7 0.9 10.6 Government debt securities — 3.6 — 3.6 Total $ 162.8 $ 187.5 $ 0.9 $ 351.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 . (in millions of dollars) 2015 2014 2013 Advertising, selling, general and administrative expense $ 16.0 $ 15.7 $ 16.4 Income (loss) from continuing operations before income tax (16.0 ) (15.7 ) (16.4 ) Income tax expense (benefit) (5.7 ) (5.7 ) (5.9 ) Net income (loss) $ (10.3 ) $ (10.0 ) $ (10.5 ) |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Stock-based compensation expense by award type for the years ended December 31, 2015 , 2014 and 2013 was as follows: (in millions of dollars) 2015 2014 2013 Stock option compensation expense $ 3.9 $ 3.7 $ 3.0 RSU compensation expense 4.7 6.6 5.5 PSU compensation expense 7.4 5.4 7.9 Total stock-based compensation expense $ 16.0 $ 15.7 $ 16.4 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model using the weighted average assumptions as outlined in the following table: Year Ended December 31, 2015 2014 2013 Weighted average expected lives 4.5 years 4.5 years 4.5 years Weighted average risk-free interest rate 1.47 % 1.33 % 0.75 % Weighted average expected volatility 46.5 % 52.2 % 55.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % Weighted average grant date fair value $ 3.00 $ 2.69 $ 3.43 |
Summary of Changes in Stock Options and SSARs | A summary of the changes in stock options/SSARs outstanding under our stock compensation plan during the year ended December 31, 2015 are presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2014 4,973,386 $ 7.02 Granted 1,419,510 $ 7.52 Exercised (456,341 ) $ 2.01 Lapsed (353,024 ) $ 12.60 Outstanding at December 31, 2015 5,583,531 $ 7.20 4.4 years $ 4.3 million Options/SSARs vested or expected to vest 5,464,418 $ 7.20 4.3 years $ 4.3 million Exercisable shares at December 31, 2015 2,794,497 $ 7.37 3.2 years $ 3.3 million |
Summary of Changes in RSUs Outstanding | A summary of the changes in the RSUs outstanding under our equity compensation plan during 2015 are presented below: Stock Weighted Outstanding at December 31, 2014 2,430,683 $ 8.02 Granted 668,619 $ 7.58 Vested and distributed (1,004,964 ) $ 9.62 Vested and distribution deferred (26,585 ) $ 8.14 Forfeited (60,636 ) $ 6.79 Outstanding at December 31, 2015 2,007,117 $ 7.11 Vested and deferred at December 31, 2015 (1) 228,883 $ 7.93 (1) Included in outstanding at December 31, 2015 . Vested and distribution deferred RSUs are primarily related to deferred compensation for non-employee directors. |
Summary of Changes in PSUs Outstanding | A summary of the changes in the PSUs outstanding under our equity compensation plan during 2015 are presented below: Stock Weighted Outstanding at December 31, 2014 2,837,162 $ 7.05 Granted 1,017,702 $ 7.52 Vested (697,172 ) $ 7.75 Forfeited and cancelled (45,143 ) $ 6.63 Other - increase due to performance of PSU's 85,186 $ 7.81 Outstanding at December 31, 2015 3,197,735 $ 7.07 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: December 31, (in millions of dollars) 2015 2014 Raw materials $ 33.3 $ 36.7 Work in process 2.6 2.0 Finished goods 167.7 191.2 Total inventories $ 203.6 $ 229.9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table shows estimated useful lives of property, plant and equipment: Property, plant and equipment Useful Life Buildings 40 to 50 years Leasehold improvements Lesser of lease term or the life of the asset Machinery, equipment and furniture 3 to 10 years Computer software 5 to 10 years The components of net property, plant and equipment were as follows: December 31, (in millions of dollars) 2015 2014 Land and improvements $ 17.6 $ 21.5 Buildings and improvements to leaseholds 120.0 129.0 Machinery and equipment 358.5 374.2 Construction in progress 30.0 23.0 526.1 547.7 Less: accumulated depreciation (317.0 ) (312.2 ) Property, plant and equipment, net (1) $ 209.1 $ 235.5 |
Goodwill and Identifiable Int35
Goodwill and Identifiable Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Net Carrying Amount of Goodwill by Segment | Changes in the net carrying amount of goodwill by segment were as follows: (in millions of dollars) ACCO Brands North America ACCO Brands International Computer Products Group Total Balance at December 31, 2013 $ 393.1 $ 168.4 $ 6.8 $ 568.3 Translation (5.5 ) (17.9 ) — (23.4 ) Balance at December 31, 2014 387.6 150.5 6.8 544.9 Translation (10.1 ) (37.9 ) — (48.0 ) Balance at December 31, 2015 $ 377.5 $ 112.6 $ 6.8 $ 496.9 Goodwill $ 508.4 $ 196.8 $ 6.8 $ 712.0 Accumulated impairment losses (130.9 ) (84.2 ) — (215.1 ) Balance at December 31, 2015 $ 377.5 $ 112.6 $ 6.8 $ 496.9 |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 471.8 $ (44.5 ) (1) $ 427.3 $ 499.4 $ (44.5 ) (1) $ 454.9 Amortizable intangible assets: Trade names 122.6 (61.7 ) 60.9 127.7 (55.5 ) 72.2 Customer and contractual relationships 94.9 (63.1 ) 31.8 100.4 (57.2 ) 43.2 Patents/proprietary technology 0.9 — 0.9 10.2 (9.1 ) 1.1 Subtotal 218.4 (124.8 ) 93.6 238.3 (121.8 ) 116.5 Total identifiable intangibles $ 690.2 $ (169.3 ) $ 520.9 $ 737.7 $ (166.3 ) $ 571.4 (1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. |
Estimated Amortization Expense for Future Periods | Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions of dollars) 2016 2017 2018 2019 2020 Estimated amortization expense $ 17.5 $ 14.3 $ 12.1 $ 9.9 $ 7.8 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2015 was as follows: (in millions of dollars) Balance at December 31, 2014 (Income)/ Provision Cash Non-cash Balance at December 31, 2015 Employee termination costs $ 7.8 $ (0.6 ) $ (6.1 ) $ (0.3 ) $ 0.8 Termination of lease agreements 0.6 0.2 (0.6 ) — 0.2 Total restructuring liability $ 8.4 $ (0.4 ) $ (6.7 ) $ (0.3 ) $ 1.0 Management expects the $0.8 million employee termination costs balance to be substantially paid within the next three months. Cash payments associated with lease termination costs of $0.2 million are also expected to be paid within the next three months. The Company's manufacturing facility located in the Czech Republic was sold during the second quarter of 2015 and generated net cash proceeds of $1.0 million . An immaterial gain was recognized on the sale and the cash proceeds are excluded from the table above. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2014 was as follows: (in millions of dollars) Balance at December 31, 2013 Provision Cash Non-cash Balance at December 31, 2014 Employee termination costs $ 19.1 4.3 (15.3 ) (0.3 ) $ 7.8 Termination of lease agreements 1.4 0.5 (1.5 ) 0.2 0.6 Asset impairments/net loss on disposal of assets resulting from restructuring activities — 0.6 — (0.6 ) — Other — 0.1 (0.1 ) — — Total restructuring liability $ 20.5 $ 5.5 $ (16.9 ) $ (0.7 ) $ 8.4 The Company's East Texas, Pennsylvania manufacturing and distribution facility was sold during 2014 and generated net cash proceeds of $3.2 million . An immaterial loss was recognized on the sale and the cash proceeds are excluded from the table above. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2013 was as follows: (in millions of dollars) Balance at December 31, 2012 Provision Cash Non-cash Balance at December 31, 2013 Employee termination costs 15.2 26.4 (22.5 ) — $ 19.1 Termination of lease agreements 0.2 1.9 (0.7 ) — 1.4 Asset impairments/net loss on disposal of assets resulting from restructuring activities — 1.2 0.5 (1.7 ) — Other — 0.6 (0.6 ) — — Total restructuring liability $ 15.4 $ 30.1 $ (23.3 ) $ (1.7 ) $ 20.5 Not included in the restructuring table above is a $2.5 million net gain on the sale of the Company's Ireland distribution facility. The sale generated net cash proceeds of $3.8 million . The gain on sale was recognized in the Consolidated Statements of Income in SG&A. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income from continuing operations before income tax were as follows: (in millions of dollars) 2015 2014 2013 Domestic operations $ 60.9 $ 43.5 $ 1.8 Foreign operations 70.5 93.5 89.9 Total $ 131.4 $ 137.0 $ 91.7 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 35% to our effective income tax rate for continuing operations was as follows: (in millions of dollars) 2015 2014 2013 Income tax at U.S. statutory rate of 35% $ 46.0 $ 47.9 $ 32.1 State, local and other tax, net of federal benefit 2.1 2.1 (1.4 ) U.S. effect of foreign dividends and earnings 3.9 7.4 7.5 Unrealized foreign currency benefit on intercompany debt (0.7 ) (3.0 ) (3.5 ) Foreign income taxed at a lower effective rate (5.6 ) (8.6 ) (6.4 ) Interest on Brazilian Tax Assessment 2.7 3.2 1.8 Expiration of tax credits 1.0 11.7 — Decrease in valuation allowance (1.3 ) (11.5 ) (11.6 ) Correction of deferred tax error — — (3.1 ) Other (2.6 ) (3.8 ) (1.0 ) Income taxes as reported $ 45.5 $ 45.4 $ 14.4 Effective tax rate 34.6 % 33.1 % 15.7 % |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense (benefit) from continuing operations were as follows: (in millions of dollars) 2015 2014 2013 Current expense Federal and other $ 2.1 $ 1.6 $ 0.8 Foreign 16.0 23.2 25.3 Total current income tax expense 18.1 24.8 26.1 Deferred expense (benefit) Federal and other 22.8 15.4 (2.8 ) Foreign 4.6 5.2 (8.9 ) Total deferred income tax expense (benefit) 27.4 20.6 (11.7 ) Total income tax expense $ 45.5 $ 45.4 $ 14.4 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2015 2014 Deferred tax assets Compensation and benefits $ 17.3 $ 20.4 Pension 27.9 32.0 Inventory 11.4 7.1 Other reserves 17.1 19.8 Accounts receivable 7.7 7.6 Foreign tax credit carryforwards 10.9 11.9 Net operating loss carryforwards 56.9 87.5 Unrealized foreign currency benefit on intercompany debt 3.0 3.2 Other 9.4 8.8 Gross deferred income tax assets 161.6 198.3 Valuation allowance (22.1 ) (23.9 ) Net deferred tax assets 139.5 174.4 Deferred tax liabilities Depreciation (16.0 ) (19.1 ) Identifiable intangibles (240.7 ) (256.6 ) Gross deferred tax liabilities (256.7 ) (275.7 ) Net deferred tax liabilities $ (117.2 ) $ (101.3 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows: (in millions of dollars) 2015 2014 2013 Balance at beginning of year $ 45.9 $ 52.1 $ 56.3 Additions for tax positions of prior years 3.0 3.5 2.4 Reductions for tax positions of prior years — (4.2 ) — Settlements — — (0.1 ) Foreign exchange changes (14.1 ) (5.5 ) (6.5 ) Balance at end of year $ 34.8 $ 45.9 $ 52.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Our calculation of diluted earnings per common share assumes that any common shares outstanding were increased by shares that would be issued upon exercise of those stock units for which the average market price for the period exceeds the exercise price less the shares that could have been purchased by the Company with the related proceeds, including compensation expense measured but not yet recognized, net of tax. (in millions) 2015 2014 2013 Weighted-average number of common shares outstanding — basic 108.8 113.7 113.5 Stock options 0.2 0.1 — Stock-settled stock appreciation rights 0.3 0.6 0.9 Restricted stock units 1.3 1.9 1.3 Adjusted weighted-average shares and assumed conversions — diluted 110.6 116.3 115.7 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our derivative financial instruments as of December 31, 2015 and 2014 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2015 December 31, 2014 Balance Sheet December 31, 2015 December 31, 2014 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 1.9 $ 4.6 Other current liabilities $ 0.3 $ 0.1 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.7 0.1 Other current liabilities 0.1 0.4 Total derivatives $ 2.6 $ 4.7 $ 0.4 $ 0.5 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarizes the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in OCI (Effective Portion) Location of (Gain) Loss Reclassified from OCI to Income Amount of (Gain) Loss (in millions of dollars) 2015 2014 2013 2015 2014 2013 Cash flow hedges: Foreign exchange contracts $ 8.2 $ 6.9 $ 3.7 Cost of products sold $ (10.9 ) $ (3.5 ) $ (3.4 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2015 2014 2013 Foreign exchange contracts Other expense, net $ (0.5 ) $ 1.3 $ (0.6 ) |
Fair Value Of Financial Instr40
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 : (in millions of dollars) December 31, 2015 December 31, 2014 Assets: Forward currency contracts $ 2.6 $ 4.7 Liabilities: Forward currency contracts $ 0.4 $ 0.5 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of, and changes in, accumulated other comprehensive income (loss) were as follows: (in millions of dollars) Derivative Unrecognized Accumulated Balance at December 31, 2013 $ 0.3 $ (89.6 ) $ (96.3 ) $ (185.6 ) Other comprehensive income (loss) before reclassifications, net of tax 4.9 (76.4 ) (37.1 ) (108.6 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (2.5 ) — 4.1 1.6 Balance at December 31, 2014 2.7 (166.0 ) (129.3 ) (292.6 ) Other comprehensive income (loss) before reclassifications, net of tax 5.8 (136.7 ) (0.5 ) (131.4 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (7.7 ) — 2.5 (5.2 ) Balance at December 31, 2015 $ 0.8 $ (302.7 ) $ (127.3 ) $ (429.2 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 , 2014 and 2013 were as follows: Year Ended December 31, (in millions of dollars) 2015 2014 2013 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Gain on cash flow hedges: Foreign exchange contracts $ 10.9 $ 3.5 $ 3.4 Cost of products sold Tax expense (3.2 ) (1.0 ) (1.0 ) Income tax expense Net of tax $ 7.7 $ 2.5 $ 2.4 Defined benefit plan items: Amortization of actuarial loss $ (3.6 ) $ (5.9 ) $ (11.4 ) (1) Amortization of prior service cost (0.1 ) (0.3 ) (0.1 ) (1) Total before tax (3.7 ) (6.2 ) (11.5 ) Tax benefit 1.2 $ 2.1 $ 4.0 Income tax expense Net of tax $ (2.5 ) $ (4.1 ) $ (7.5 ) Total reclassifications for the period, net of tax $ 5.2 $ (1.6 ) $ (5.1 ) (1) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See " Note 4. Pension and Other Retiree Benefits " for additional details). |
Information on Business Segme42
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by business segment for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 ACCO Brands North America $ 963.3 $ 1,006.0 $ 1,041.4 ACCO Brands International 426.9 546.9 566.6 Computer Products Group 120.2 136.3 157.1 Net sales $ 1,510.4 $ 1,689.2 $ 1,765.1 |
Schedule of Operating Income by Business Segment | Operating income by business segment for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 ACCO Brands North America $ 147.6 $ 140.7 $ 98.2 ACCO Brands International 40.8 62.9 66.5 Computer Products Group 10.3 8.2 13.7 Segment operating income 198.7 211.8 178.4 Corporate (35.2 ) (38.2 ) (32.6 ) Operating income (a) 163.5 173.6 145.8 Interest expense 44.5 49.5 59.0 Interest income (6.6 ) (5.6 ) (4.3 ) Equity in earnings of joint ventures (7.9 ) (8.1 ) (8.2 ) Other expense, net 2.1 0.8 7.6 Income from continuing operations before income tax $ 131.4 $ 137.0 $ 91.7 (a) Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Reconciliation of Assets from Segment to Consolidated | The following table presents the measure of segment assets used by the Company’s chief operating decision maker. December 31, (in millions of dollars) 2015 2014 ACCO Brands North America (b) $ 413.8 $ 433.7 ACCO Brands International (b) 335.0 429.7 Computer Products Group (b) 61.5 62.4 Total segment assets 810.3 925.8 Unallocated assets 1,142.0 1,287.9 Corporate (b) 1.1 1.4 Total assets $ 1,953.4 $ 2,215.1 (b) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. |
Schedule of Assets by Segment Including Allocation of Intangible Assets and Goodwill | As a supplement to the presentation of segment assets presented above, the table below presents segment assets, including the allocation of identifiable intangible assets and goodwill resulting from business combinations. December 31, (in millions of dollars) 2015 2014 ACCO Brands North America (c) $ 1,220.7 $ 1,272.4 ACCO Brands International (c) 531.5 692.7 Computer Products Group (c) 75.9 77.0 Total segment assets 1,828.1 2,042.1 Unallocated assets 124.2 171.6 Corporate (c) 1.1 1.4 Total assets $ 1,953.4 $ 2,215.1 (c) Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. |
Schedule of Property, Plant and Equipment, Net by Geographic Region | Property, plant and equipment, net by geographic region were as follows: December 31, (in millions of dollars) 2015 2014 U.S. $ 111.5 $ 122.0 U.K. 38.9 34.1 Brazil 31.9 49.3 Australia 10.6 12.0 Other countries 16.2 18.1 Property, plant and equipment, net $ 209.1 $ 235.5 |
Schedule of Net Sales by Geographic Region | Net sales by geographic region (d) for the years ended December 31, 2015 , 2014 and 2013 were as follows: (in millions of dollars) 2015 2014 2013 U.S. $ 904.3 $ 921.0 $ 955.5 Canada 121.4 150.6 159.7 Netherlands 108.7 130.2 130.2 Brazil 92.0 154.0 157.2 Australia 91.8 108.5 119.8 U.K. 76.4 89.1 101.3 Mexico 49.6 58.8 58.9 Other countries 66.2 77.0 82.5 Net sales $ 1,510.4 $ 1,689.2 $ 1,765.1 (d) Net sales are attributed to geographic areas based on the location of the selling subsidiaries. |
Joint Venture Investment (Table
Joint Venture Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Summarized below is financial information for the Company’s joint venture, which is accounted for under the equity method. Accordingly, we record our proportionate share of earnings or losses on the line entitled " Equity in earnings of joint ventures " in the Consolidated Statements of Income . Our share of the net assets of the joint venture is included within " Other non-current assets " in the Consolidated Balance Sheets. Year Ended December 31, (in millions of dollars) 2015 2014 2013 Net sales $ 111.2 $ 121.4 $ 105.4 Gross profit 45.5 48.2 44.8 Net income 15.8 16.4 16.4 December 31, (in millions of dollars) 2015 2014 Current assets $ 76.6 $ 83.4 Non-current assets 43.6 47.3 Current liabilities 37.5 40.7 Non-current liabilities 13.1 22.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for All Non-Cancelable Operating Leases | Future minimum rental payments for all non-cancelable operating leases (reduced by minor amounts from subleases) as of December 31, 2015 were as follows: (in millions of dollars) 2016 $ 20.5 2017 17.7 2018 15.2 2019 14.5 2020 13.3 Thereafter 22.8 Total minimum rental payments $ 104.0 Less minimum rentals to be received under non-cancelable subleases 3.8 Future minimum payments for operating leases, net of sublease rental income $ 100.2 |
Future Minimum Payments Under Unconditional Purchase Commitments | Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2015 were as follows: (in millions of dollars) 2016 $ 96.4 2017 7.5 2018 — 2019 — 2020 — Thereafter — Total unconditional purchase commitments $ 103.9 |
Quarterly Financial Informati45
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is an analysis of certain line items in the Consolidated Statements of Income by quarter for 2015 and 2014 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2015 Net sales (1) $ 290.0 $ 394.7 $ 413.6 $ 412.1 Gross profit 80.2 126.7 133.7 137.8 Operating income 2.6 49.2 54.8 56.9 Net income (loss) $ (5.8 ) $ 27.7 $ 32.6 $ 31.4 Basic income (loss) per share: Net income (loss) (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.30 Diluted income (loss) per share: Net income (loss) (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.29 2014 Net sales (1) $ 329.4 $ 427.7 $ 472.2 $ 459.9 Gross profit 88.5 131.2 153.3 156.9 Operating income (loss) (0.6 ) 43.9 61.8 68.5 Net income (loss) $ (7.8 ) $ 21.3 $ 34.2 $ 43.9 Basic income (loss) per share: Net income (loss) (2) $ (0.07 ) $ 0.19 $ 0.30 $ 0.39 Diluted income (loss) per share: Net income (loss) (2) $ (0.07 ) $ 0.18 $ 0.29 $ 0.38 (1) Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE ® and Day-Timer ® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. (2) The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing common shares and repurchasing of common shares during the year. |
Condensed Consolidating Finan46
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2015 (in millions of dollars) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.8 $ 0.3 $ 54.3 $ — $ 55.4 Accounts receivable, net — 163.8 205.5 — 369.3 Inventories — 125.8 77.8 — 203.6 Receivables from affiliates 4.4 474.6 64.5 (543.5 ) — Other current assets 1.1 10.8 13.4 — 25.3 Total current assets 6.3 775.3 415.5 (543.5 ) 653.6 Property, plant and equipment, net 3.7 107.8 97.6 — 209.1 Deferred income taxes — — 25.1 — 25.1 Goodwill — 330.8 166.1 — 496.9 Identifiable intangibles, net 57.4 382.0 81.5 — 520.9 Other non-current assets 3.1 0.8 43.9 — 47.8 Investment in, long term receivable from affiliates 1,545.7 903.8 441.0 (2,890.5 ) — Total assets $ 1,616.2 $ 2,500.5 $ 1,270.7 $ (3,434.0 ) $ 1,953.4 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ — $ 86.6 $ 61.0 $ — $ 147.6 Accrued compensation 3.8 17.9 12.3 — 34.0 Accrued customer programs liabilities — 63.9 44.8 — 108.7 Accrued interest 6.3 — — — 6.3 Other current liabilities 2.3 22.9 33.5 — 58.7 Payables to affiliates 5.6 210.0 239.5 (455.1 ) — Total current liabilities 18.0 401.3 391.1 (455.1 ) 355.3 Long-term debt, net 720.5 — — — 720.5 Long-term notes payable to affiliates 178.2 26.7 21.0 (225.9 ) — Deferred income taxes 113.5 — 28.8 — 142.3 Pension and post-retirement benefit obligations 1.5 55.2 32.4 — 89.1 Other non-current liabilities 3.3 20.8 40.9 — 65.0 Total liabilities 1,035.0 504.0 514.2 (681.0 ) 1,372.2 Stockholders’ equity: Common stock 1.1 448.0 227.5 (675.5 ) 1.1 Treasury stock (11.8 ) — — — (11.8 ) Paid-in capital 1,988.3 1,551.1 743.2 (2,294.3 ) 1,988.3 Accumulated other comprehensive loss (429.2 ) (68.8 ) (305.8 ) 374.6 (429.2 ) (Accumulated deficit) retained earnings (967.2 ) 66.2 91.6 (157.8 ) (967.2 ) Total stockholders’ equity 581.2 1,996.5 756.5 (2,753.0 ) 581.2 Total liabilities and stockholders’ equity $ 1,616.2 $ 2,500.5 $ 1,270.7 $ (3,434.0 ) $ 1,953.4 Condensed Consolidating Balance Sheets December 31, 2014 (in millions of dollars) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 9.7 $ 0.1 $ 43.4 $ — $ 53.2 Accounts receivable, net — 156.1 264.4 — 420.5 Inventories — 129.9 100.0 — 229.9 Receivables from affiliates 4.8 302.7 68.0 (375.5 ) — Deferred income taxes 27.2 — 12.2 — 39.4 Other current assets 1.4 15.1 19.3 — 35.8 Total current assets 43.1 603.9 507.3 (375.5 ) 778.8 Property, plant and equipment, net 4.2 117.8 113.5 — 235.5 Deferred income taxes 0.9 — 30.8 — 31.7 Goodwill — 330.9 214.0 — 544.9 Identifiable intangibles, net 57.5 397.9 116.0 — 571.4 Other non-current assets 3.9 1.0 47.9 — 52.8 Investment in, long term receivable from affiliates 1,680.0 890.8 441.0 (3,011.8 ) — Total assets $ 1,789.6 $ 2,342.3 $ 1,470.5 $ (3,387.3 ) $ 2,215.1 Liabilities and Stockholders’ Equity Current liabilities: Notes payable $ — $ — $ 0.8 $ — $ 0.8 Current portion of long-term debt 0.7 0.1 — — 0.8 Accounts payable — 84.8 74.3 — 159.1 Accrued compensation 3.3 20.1 13.2 — 36.6 Accrued customer programs liabilities — 60.1 51.7 — 111.8 Accrued interest 6.5 — — — 6.5 Other current liabilities 1.9 31.0 46.9 — 79.8 Payables to affiliates 5.6 214.1 240.5 (460.2 ) — Total current liabilities 18.0 410.2 427.4 (460.2 ) 395.4 Long-term debt, net 787.7 — — — 787.7 Long-term notes payable to affiliates 178.2 26.7 31.2 (236.1 ) — Deferred income taxes 120.0 — 52.2 — 172.2 Pension and post-retirement benefit obligations 1.5 52.3 46.7 — 100.5 Other non-current liabilities 3.2 19.9 55.2 — 78.3 Total liabilities 1,108.6 509.1 612.7 (696.3 ) 1,534.1 Stockholders’ equity: Common stock 1.1 448.0 247.0 (695.0 ) 1.1 Treasury stock (5.9 ) — — — (5.9 ) Paid-in capital 2,031.5 1,551.1 743.0 (2,294.1 ) 2,031.5 Accumulated other comprehensive loss (292.6 ) (65.2 ) (183.0 ) 248.2 (292.6 ) (Accumulated deficit) retained earnings (1,053.1 ) (100.7 ) 50.8 49.9 (1,053.1 ) Total stockholders’ equity 681.0 1,833.2 857.8 (2,691.0 ) 681.0 Total liabilities and stockholders’ equity $ 1,789.6 $ 2,342.3 $ 1,470.5 $ (3,387.3 ) $ 2,215.1 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 948.5 $ 610.3 $ (48.4 ) $ 1,510.4 Cost of products sold — 645.0 435.4 (48.4 ) 1,032.0 Gross profit — 303.5 174.9 — 478.4 Advertising, selling, general and administrative expenses 42.8 154.2 98.7 — 295.7 Amortization of intangibles 0.1 16.0 3.5 — 19.6 Restructuring credits — (0.3 ) (0.1 ) — (0.4 ) Operating income (loss) (42.9 ) 133.6 72.8 — 163.5 Expense (income) from affiliates (1.2 ) (17.1 ) 18.3 — — Interest expense 45.4 — (0.9 ) — 44.5 Interest income — — (6.6 ) — (6.6 ) Equity in earnings of joint ventures — — (7.9 ) — (7.9 ) Other expense (income), net 0.7 2.0 (0.6 ) — 2.1 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (87.8 ) 148.7 70.5 — 131.4 Income tax expense 25.2 — 20.3 — 45.5 Income (loss) from continuing operations (113.0 ) 148.7 50.2 — 85.9 Loss from discontinued operations, net of income taxes — — — — — Income (loss) before earnings of wholly owned subsidiaries (113.0 ) 148.7 50.2 — 85.9 Earnings of wholly owned subsidiaries 198.9 47.3 — (246.2 ) — Net income $ 85.9 $ 196.0 $ 50.2 $ (246.2 ) $ 85.9 Comprehensive (loss) income $ (50.7 ) $ 192.4 $ (72.6 ) $ (119.8 ) $ (50.7 ) Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 969.2 $ 772.0 $ (52.0 ) $ 1,689.2 Cost of products sold — 673.4 537.9 (52.0 ) 1,159.3 Gross profit — 295.8 234.1 — 529.9 Advertising, selling, general and administrative expenses 45.4 157.1 126.1 — 328.6 Amortization of intangibles 0.1 17.7 4.4 — 22.2 Restructuring charges — 4.6 0.9 — 5.5 Operating income (loss) (45.5 ) 116.4 102.7 — 173.6 Expense (income) from affiliates (1.5 ) (20.7 ) 22.2 — — Interest expense 49.9 — (0.4 ) — 49.5 Interest income — (0.1 ) (5.5 ) — (5.6 ) Equity in earnings of joint ventures — — (8.1 ) — (8.1 ) Other expense (income), net 0.4 (0.7 ) 1.1 — 0.8 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (94.3 ) 137.9 93.4 — 137.0 Income tax expense 18.2 — 27.2 — 45.4 Income (loss) from continuing operations (112.5 ) 137.9 66.2 — 91.6 Loss from discontinued operations, net of income taxes — — — — — Income (loss) before earnings of wholly owned subsidiaries (112.5 ) 137.9 66.2 — 91.6 Earnings of wholly owned subsidiaries 204.1 62.7 — (266.8 ) — Net income $ 91.6 $ 200.6 $ 66.2 $ (266.8 ) $ 91.6 Comprehensive (loss) income $ (15.4 ) $ 181.0 $ (17.1 ) $ (163.9 ) $ (15.4 ) Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2013 (in millions of dollars) Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 971.2 $ 814.0 $ (20.1 ) $ 1,765.1 Cost of products sold — 669.8 567.5 (20.1 ) 1,217.2 Gross profit — 301.4 246.5 — 547.9 Advertising, selling, general and administrative expenses 40.6 183.5 123.2 — 347.3 Amortization of intangibles 0.1 19.7 4.9 — 24.7 Restructuring charges 0.5 14.3 15.3 — 30.1 Operating income (loss) (41.2 ) 83.9 103.1 — 145.8 Expense (income) from affiliates (1.5 ) (21.7 ) 23.2 — — Interest expense 58.6 — 0.4 — 59.0 Interest income — (0.1 ) (4.2 ) — (4.3 ) Equity in earnings of joint ventures — — (8.2 ) — (8.2 ) Other expense, net 4.8 0.8 2.0 — 7.6 Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries (103.1 ) 104.9 89.9 — 91.7 Income tax expense (benefit) (1.5 ) — 15.9 — 14.4 Income (loss) from continuing operations (101.6 ) 104.9 74.0 — 77.3 Loss from discontinued operations, net of income taxes — (0.2 ) — — (0.2 ) Income (loss) before earnings of wholly owned subsidiaries (101.6 ) 104.7 74.0 — 77.1 Earnings of wholly owned subsidiaries 178.7 72.6 — (251.3 ) — Net income $ 77.1 $ 177.3 $ 74.0 $ (251.3 ) $ 77.1 Comprehensive income $ 47.6 $ 200.6 $ 26.5 $ (227.1 ) $ 47.6 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities $ (68.2 ) $ 182.5 $ 56.9 $ 171.2 Investing activities: Additions to property, plant and equipment — (12.0 ) (15.6 ) (27.6 ) Payments for (proceeds from) interest in affiliates — 19.5 (19.5 ) — Proceeds from the disposition of assets — — 2.8 2.8 Other — — 0.2 0.2 Net cash (used) provided by investing activities — 7.5 (32.1 ) (24.6 ) Financing activities: Intercompany financing 172.4 (175.3 ) 2.9 — Net dividends 23.8 (14.4 ) (9.4 ) — Proceeds from long-term borrowings 300.0 — — 300.0 Repayments of long-term debt (370.0 ) (0.1 ) — (370.1 ) Repayments of notes payable, net — — (0.8 ) (0.8 ) Payments for debt issuance costs (1.7 ) — — (1.7 ) Repurchases of common stock (60.0 ) — — (60.0 ) Payments related to tax withholding for share-based compensation (5.9 ) — — (5.9 ) Proceeds from the exercise of stock options 0.7 — — 0.7 Net cash (used) provided by financing activities 59.3 (189.8 ) (7.3 ) (137.8 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (6.6 ) (6.6 ) Net increase (decrease) in cash and cash equivalents (8.9 ) 0.2 10.9 2.2 Cash and cash equivalents: Beginning of the period 9.7 0.1 43.4 53.2 End of the period $ 0.8 $ 0.3 $ 54.3 $ 55.4 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities $ (77.9 ) $ 182.3 $ 67.3 $ 171.7 Investing activities: Additions to property, plant and equipment (0.2 ) (10.6 ) (18.8 ) (29.6 ) Payments for (proceeds from) interest in affiliates — 20.5 (20.5 ) — Proceeds from the disposition of assets — 3.6 0.2 3.8 Net cash (used) provided by investing activities (0.2 ) 13.5 (39.1 ) (25.8 ) Financing activities: Intercompany financing 188.3 (181.3 ) (7.0 ) — Net dividends 35.4 (15.3 ) (20.1 ) — Repayments of long-term debt (121.0 ) (0.1 ) — (121.1 ) Borrowings of notes payable, net — — 1.0 1.0 Payments for debt issuance costs (0.3 ) — — (0.3 ) Repurchase of common stock (19.4 ) — — (19.4 ) Payments related to tax withholding for share-based compensation (2.5 ) — — (2.5 ) Proceeds from the exercise of stock options 0.3 — — 0.3 Net cash (used) provided by financing activities 80.8 (196.7 ) (26.1 ) (142.0 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (4.2 ) (4.2 ) Net (decrease) increase in cash and cash equivalents 2.7 (0.9 ) (2.1 ) (0.3 ) Cash and cash equivalents: Beginning of the period 7.0 1.0 45.5 53.5 End of the period $ 9.7 $ 0.1 $ 43.4 $ 53.2 Condensed Consolidating Statement of Cash Flows Year Ended December 31,2013 (in millions of dollars) Parent Guarantors Non-Guarantors Consolidated Net cash provided (used) by operating activities: $ (81.7 ) $ 186.5 $ 89.7 $ 194.5 Investing activities: Additions to property, plant and equipment — (21.2 ) (15.4 ) (36.6 ) Payments for (proceeds from) interest in affiliates — 55.6 (55.6 ) — Payments related to the sale of discontinued operations — (1.5 ) — (1.5 ) Proceeds from the disposition of assets — — 6.1 6.1 Cost of acquisitions, net of cash acquired — (1.3 ) — (1.3 ) Net cash (used) provided by investing activities — 31.6 (64.9 ) (33.3 ) Financing activities: Intercompany financing 143.8 (168.2 ) 24.4 — Net dividends 65.7 (45.9 ) (19.8 ) — Proceeds from long-term borrowings 530.0 — — 530.0 Repayments of long-term debt (658.1 ) — (21.4 ) (679.5 ) (Repayments) borrowings of short-term debt, net 0.5 — (1.2 ) (0.7 ) Payments for debt issuance costs (4.3 ) — — (4.3 ) Payments related to tax withholding for share-based compensation (1.0 ) — — (1.0 ) Net cash (used) provided by financing activities 76.6 (214.1 ) (18.0 ) (155.5 ) Effect of foreign exchange rate changes on cash — — (2.2 ) (2.2 ) Net increase (decrease) in cash and cash equivalents (5.1 ) 4.0 4.6 3.5 Cash and cash equivalents: Beginning of the period 12.1 (3.0 ) 40.9 50.0 End of the period $ 7.0 $ 1.0 $ 45.5 $ 53.5 |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) | Dec. 31, 2015 |
Pelikan Artline Pty Ltd | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Significant Accounting Polici48
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accounting Policies [Line Items] | ||||
Interest Costs Capitalized | $ 1.3 | $ 0.9 | $ 0.4 | |
Advertising Expense | 120.9 | 130.8 | 131 | |
Research and Development Expense | 20 | 20.2 | $ 22.5 | |
Debt Issuance cost, unamortized | [1] | $ 8.5 | 11.3 | |
Accounting Standards Update 2015-03 [Member] | ||||
Accounting Policies [Line Items] | ||||
Debt Issuance cost, unamortized | $ 11.3 | |||
Buildings | Minimum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Buildings | Maximum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 50 years | |||
Machinery, equipment and furniture | Minimum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Machinery, equipment and furniture | Maximum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | |||
Software and Software Development Costs [Member] | Minimum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Software and Software Development Costs [Member] | Maximum | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | |||
Amortizable Period, Option 1 | ||||
Accounting Policies [Line Items] | ||||
Amortizable life | 10 years | |||
Amortizable Period, Option 2 | ||||
Accounting Policies [Line Items] | ||||
Amortizable life | 15 years | |||
Amortizable Period, Option 3 | ||||
Accounting Policies [Line Items] | ||||
Amortizable life | 23 years | |||
Amortizable Period, Option 4 | ||||
Accounting Policies [Line Items] | ||||
Amortizable life | 30 years | |||
[1] | (1) The company has adopted ASU 2015-03 in the fourth quarter of 2015, see "Note 2. Significant Accounting Policies" for details. |
Long-term Debt and Short-term49
Long-term Debt and Short-term Borrowings (Notes Payable and Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Apr. 27, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 729 | $ 800.6 | ||
Less: current portion | 0 | 1.6 | ||
Debt Issuance cost, unamortized | [1] | 8.5 | 11.3 | |
Long-term debt, net | 720.5 | 787.7 | ||
Other borrowings | ||||
Debt Instrument [Line Items] | ||||
Total debt | 0 | 1.6 | ||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 229 | 0 | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.88% | |||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due May 2018 (floating interest rate of 2.24% at December 31, 2014) | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 0 | $ 299 | $ 299 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.24% | |||
Senior Secured Notes | Senior Secured Revolving Credit Facility, due April 2020 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 0 | |||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 500 | $ 500 | ||
Stated percentage | 6.75% | 6.75% | ||
[1] | (1) The company has adopted ASU 2015-03 in the fourth quarter of 2015, see "Note 2. Significant Accounting Policies" for details. |
Long-term Debt and Short-term50
Long-term Debt and Short-term Borrowings Long-term Debt and Short-term Borrowings (Credit Spread) (Details) - Restated Credit Agreement | 8 Months Ended |
Dec. 31, 2015 | |
Eurodollar | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Eurodollar | Greater Than Four to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Eurodollar | Less Than Four to One and Greater Than Three Point Five to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Eurodollar | Less Than Three Point Five to One and Greater Than Three to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Eurodollar | Less Than Three to One and Greater Than Two to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Eurodollar | Less Than Two to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
Base Rate | Greater Than Four to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Base Rate | Less Than Four to One and Greater Than Three Point Five to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
Base Rate | Less Than Three Point Five to One and Greater Than Three to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Base Rate | Less Than Three to One and Greater Than Two to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Base Rate | Less Than Two to One | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.25% |
Long-term Debt and Short-term51
Long-term Debt and Short-term Borrowings (Financial Covenant Ratios) (Details) - Restated Credit Agreement | 8 Months Ended | |
Dec. 31, 2015 | ||
Maximum | July 1, 2015 and thereafter | ||
Debt Instrument [Line Items] | ||
Consolidated Leverage Ratio | 3.75 | [1] |
Minimum | ||
Debt Instrument [Line Items] | ||
Consolidated Fixed Charge Coverage Ratio | 1.25 | |
[1] | (1)The Consolidated Leverage Ratio is computed by dividing the Company's net funded indebtedness by the cumulative four-quarter-trailing EBITDA, which excludes transaction costs, restructuring and other charges up to certain limits as well as other adjustments defined in the Restated Credit Agreement. |
Long-term Debt and Short-term52
Long-term Debt and Short-term Borrowings (Narrative) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2015 | Sep. 30, 2015 | Apr. 28, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 729,000,000 | $ 729,000,000 | $ 800,600,000 | |||
FIve Year Senior Secured Credit Facility Maturing April 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, term | 5 years | |||||
Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Required prepayment, percent of proceeds from asset sales and dispositions | 100.00% | |||||
Required prepayment, proceeds from asset sales and disposition exceeding minimum amount | $ 10,000,000 | |||||
Required prepayment, percent of proceeds from property insurance or condemnation awards | 100.00% | |||||
Required prepayment, proceeds from property insurance or condemnation awards exceeding minimum amount | $ 10,000,000 | |||||
Required prepayment, percent of proceeds from other non-permitted debt agreements | 100.00% | |||||
Allowed Increase in Consolidated Leverage Ratio after a Material Acquisition | 0.50 | |||||
Permitted Increase in Size of Restated Credit Facility | $ 500,000,000 | |||||
Restated Credit Agreement | Federal Funds | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Restated Credit Agreement | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate, term | 1 month | |||||
Basis spread on variable rate | 1.00% | |||||
Restated Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Base Amount of Dividends and/or Repurchase Shares in an Aggregate Amount in Dollars | $ 25,000,000 | |||||
Base Amount of Dividends and/or Repurchase Shares in an Aggregate as a Percent of Consolidate Total Assets | 1.00% | |||||
Consolidated Fixed Charge Coverage Ratio | 1.25 | |||||
Restated Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Amount of Investments Allowed as a Percentage of Consolidated Total Assets | 15.00% | |||||
Aggregate Amount of Investments Allowed per the Restated Credit Agreement in Dollars | $ 500,000,000 | |||||
U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Senior Secured Revolving Credit Facility, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding, amount | $ 8,900,000 | 8,900,000 | ||||
Senior Secured Revolving Credit Facility, due April 2020 | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Senior Secured Revolving Credit Facility, due April 2020 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Secured Debt [Member] | FIve Year Senior Secured Credit Facility Maturing April 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Max borrowing capacity | $ 600,000,000 | |||||
Secured Debt [Member] | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, face amount | 300,000,000 | |||||
Debt, Long-term and Short-term, Combined Amount | $ 229,000,000 | 229,000,000 | $ 0 | |||
Secured Debt [Member] | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly principal payment, based on annual percentage | 5.00% | |||||
Secured Debt [Member] | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 1.88% at December 31, 2015) | Maximum | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly principal payment, based on annual percentage | 12.50% | |||||
Secured Debt [Member] | Senior Secured Revolving Credit Facility, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 | ||||
Less than or equal to 2.50 to 1.00 | Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated Leverage Ratio Required for any Additional Amount for Dividends and /or Repurchase Shares | 2.50 | |||||
Less than or equal to 3.50 to 1.00 and greater than 2.5 to 1.00 | Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Additional Aggregate Amount not to Exceed in any Fiscal Year for Dividends and /or Repurchase Shares | $ 60,000,000 | |||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Revolving Credit Facility, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Max borrowing capacity | 300,000,000 | |||||
Undrawn amounts, commitment fee (percent) | 0.30% | |||||
Amount available for borrowings under the Restated Revolver Facility | $ 291,100,000 | $ 291,100,000 | ||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Revolving Credit Facility, due April 2020 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Undrawn amounts, commitment fee (percent) | 0.25% | |||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Revolving Credit Facility, due April 2020 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Undrawn amounts, commitment fee (percent) | 0.40% | |||||
Revolving Credit Facility [Member] | Secured Debt [Member] | USD Senior Secured Revolving Credit Facility, due May 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Max borrowing capacity | $ 250,000,000 |
Pension and Other Retiree Ben53
Pension and Other Retiree Benefits (Pension Benefit Obligation and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change in plan assets | ||||
Employer contributions | $ 7.1 | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Pension and post-retirement benefit obligations | 89.1 | $ 100.5 | ||
U.S. | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 212.9 | 177.4 | ||
Service cost | 1.6 | 2.1 | $ 2 | |
Interest cost | 8.7 | 8.6 | 7.9 | |
Actuarial (gain) loss | (14.4) | 34.2 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (10.1) | (9.4) | ||
Plan amendments | 0 | 0 | ||
Foreign exchange rate changes | 0 | 0 | ||
Projected benefit obligation at end of year | 198.7 | 212.9 | 177.4 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 163.9 | 156.3 | ||
Actual return on plan assets | (9.3) | 10.8 | ||
Employer contributions | 1.3 | 6.2 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (10.1) | (9.4) | ||
Foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets at end of year | 145.8 | 163.9 | 156.3 | |
Funded status (Fair value of plan assets less PBO) | (52.9) | (49) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Pension and post-retirement benefit obligations | [1] | 52.9 | 49 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 55.1 | 51.9 | ||
Unrecognized prior service (credit) cost | 2 | 2.4 | ||
International | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 391.8 | 371.4 | ||
Service cost | 0.9 | 0.8 | 1.6 | |
Interest cost | 12.9 | 15.7 | 14.7 | |
Actuarial (gain) loss | (19) | 48.3 | ||
Participants’ contributions | 0.2 | 0.2 | ||
Benefits paid | (15.9) | (16.6) | ||
Plan amendments | 0 | (0.2) | ||
Foreign exchange rate changes | (23.8) | (27.8) | ||
Projected benefit obligation at end of year | 347.1 | 391.8 | 371.4 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 351.2 | 342.8 | ||
Actual return on plan assets | (0.8) | 43.8 | ||
Employer contributions | 5.4 | 5.5 | ||
Participants’ contributions | 0.2 | 0.2 | ||
Benefits paid | (15.9) | (16.6) | ||
Foreign exchange rate changes | (21.2) | (24.5) | ||
Fair value of plan assets at end of year | 318.9 | 351.2 | 342.8 | |
Funded status (Fair value of plan assets less PBO) | (28.2) | (40.6) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0.9 | 0 | ||
Other current liabilities | 0.4 | 0.5 | ||
Pension and post-retirement benefit obligations | [1] | 28.7 | 40.1 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 75 | 78.1 | ||
Unrecognized prior service (credit) cost | (0.3) | (0.4) | ||
Post-retirement | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 12.2 | 13.3 | ||
Service cost | 0.1 | 0.2 | 0.2 | |
Interest cost | 0.4 | 0.5 | 0.6 | |
Actuarial (gain) loss | (3.4) | (0.3) | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (0.5) | (0.8) | ||
Plan amendments | (0.2) | (0.4) | ||
Foreign exchange rate changes | (0.6) | (0.4) | ||
Projected benefit obligation at end of year | 8.1 | 12.2 | 13.3 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 0.4 | 0.7 | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (0.5) | (0.8) | ||
Foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | |
Funded status (Fair value of plan assets less PBO) | (8.1) | (12.2) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0 | 0 | ||
Other current liabilities | 0.6 | 0.8 | ||
Pension and post-retirement benefit obligations | [1] | 7.5 | 11.4 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | (4.2) | (1.1) | ||
Unrecognized prior service (credit) cost | $ (0.2) | $ (1.5) | ||
[1] | Pension and post-retirement obligations of $89.1 million as of December 31, 2015, decreased from $100.5 million as of December 31, 2014, primarily due to cash contributions. |
Pension and Other Retiree Ben54
Pension and Other Retiree Benefits (Amounts in Accumulated Other Comprehensive Income) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | $ 1.8 |
Prior service cost | 0.4 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 2.2 |
International | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | 2.4 |
Prior service cost | 0 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 2.4 |
Post-retirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | (0.4) |
Prior service cost | 0 |
Total amounts included in accumulated other comprehensive income expected to be recognized | $ (0.4) |
Pension and Other Retiree Ben55
Pension and Other Retiree Benefits (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 198.7 | $ 212.9 |
Accumulated benefit obligation | 196.1 | 209.1 |
Fair value of plan assets | 145.8 | 163.9 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 334.1 | 371 |
Accumulated benefit obligation | 324.7 | 360.9 |
Fair value of plan assets | $ 305 | $ 331.1 |
Pension and Other Retiree Ben56
Pension and Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.6 | $ 2.1 | $ 2 |
Interest cost | 8.7 | 8.6 | 7.9 |
Expected return on plan assets | (12.2) | (12) | (10.4) |
Amortization of net loss (gain) | 2.1 | 5.1 | 9.6 |
Amortization of prior service cost (credit) | 0.4 | 0.4 | 0.1 |
Curtailment gain | 0 | 0 | 0 |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit (income) cost | 0.6 | 4.2 | 9.2 |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.9 | 0.8 | 1.6 |
Interest cost | 12.9 | 15.7 | 14.7 |
Expected return on plan assets | (21.9) | (22.8) | (20.6) |
Amortization of net loss (gain) | 2.4 | 1.9 | 2.4 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | (1) |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit (income) cost | (5.7) | (4.4) | (2.9) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | 0.2 | 0.2 |
Interest cost | 0.4 | 0.5 | 0.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss (gain) | (0.4) | (1.1) | (0.6) |
Amortization of prior service cost (credit) | (0.3) | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Settlement gain | (0.5) | (0.1) | 0 |
Net periodic benefit (income) cost | $ (0.7) | $ (0.5) | 0.2 |
Canada | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | $ (1) |
Pension and Other Retiree Ben57
Pension and Other Retiree Benefits (Other Changes Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 7.1 | $ 60.2 | $ (39.3) |
Amortization of actuarial (loss) gain | (3.6) | (5.9) | (11.4) |
Amortization of prior service (cost) credit | (0.1) | (0.3) | (0.1) |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 7.1 | 35.4 | (30.2) |
Amortization of actuarial (loss) gain | (2.1) | (5.1) | (9.6) |
Current year prior service (credit) cost | 0 | 0 | 3.7 |
Amortization of prior service (cost) credit | (0.4) | (0.4) | (0.1) |
Foreign exchange rate changes | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 4.6 | 29.9 | (36.2) |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | 5.2 | 34.1 | (27) |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 3.8 | 27.3 | (10) |
Amortization of actuarial (loss) gain | (2.4) | (1.9) | (2.4) |
Current year prior service (credit) cost | 0 | (0.2) | 0 |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Foreign exchange rate changes | (5.6) | (6.8) | 2.1 |
Total recognized in other comprehensive income (loss) | (4.2) | 18.4 | (10.3) |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | (9.9) | 14 | (13.2) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | (3.4) | (0.3) | (2.8) |
Amortization of actuarial (loss) gain | 0.9 | 1.1 | 0.6 |
Current year prior service (credit) cost | (0.2) | (0.3) | 0 |
Amortization of prior service (cost) credit | 0.3 | 0 | 0 |
Foreign exchange rate changes | 0.1 | 0.1 | 0 |
Total recognized in other comprehensive income (loss) | (2.3) | 0.6 | (2.2) |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | $ (3) | $ 0.1 | $ (2) |
Pension and Other Retiree Ben58
Pension and Other Retiree Benefits (Weighted Average Assumptions Used in Calculating Benefit Obligation) (Details) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.60% | 4.20% | 5.00% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 3.40% | 4.30% |
Rate of compensation increase | 3.00% | 3.30% | 4.00% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.90% | 3.70% | 4.40% |
Pension and Other Retiree Ben59
Pension and Other Retiree Benefits (Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 5.00% | 4.20% |
Expected long-term rate of return | 8.00% | 8.20% | 8.20% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.40% | 4.30% | 4.30% |
Expected long-term rate of return | 6.50% | 6.80% | 6.80% |
Rate of compensation increase | 3.00% | 3.30% | 4.00% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 4.40% | 4.00% |
Pension and Other Retiree Ben60
Pension and Other Retiree Benefits (Assumed Health Care Cost Trend Rates) (Details) - Post-retirement | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 7.00% | 8.00% | 8.00% |
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,024 | 2,023 | 2,020 |
Pension and Other Retiree Ben61
Pension and Other Retiree Benefits (Effect of One Percent Change in Assumed Health Care Rate) (Details) - Post-retirement $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect of one percentage point increase on total of service and interest cost | $ 0.1 |
Effect of one percentage point decrease on total of service and interest cost | (0.1) |
Effect of one percentage point increase on post-retirement benefit obligation | 0.7 |
Effect of one percentage point decrease on post-retirement benefit obligation | $ (0.6) |
Pension and Other Retiree Ben62
Pension and Other Retiree Benefits (Weighted Average Asset Allocation) (Details) | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100.00% | 100.00% | |
U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 61.00% | 62.00% | |
U.S. | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 31.00% | 31.00% | |
U.S. | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 0.00% | 0.00% | |
U.S. | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 8.00% | 7.00% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100.00% | 100.00% | |
International | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 45.00% | 45.00% | |
International | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 39.00% | 38.00% | |
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 4.00% | 3.00% | |
International | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 12.00% | 14.00% |
[1] | Insurance contracts, multi-strategy hedge funds and cash and cash equivalents for certain of our plans. |
Pension and Other Retiree Ben63
Pension and Other Retiree Benefits (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 145.8 | $ 163.9 | $ 156.3 |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89.5 | 101.5 | |
U.S. | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56.3 | 62.4 | |
U.S. | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.9 | 8.3 | |
U.S. | Common stocks | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.9 | 8.3 | |
U.S. | Common stocks | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Common stocks | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 82.6 | 93.2 | |
U.S. | Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 82.6 | 93.2 | |
U.S. | Mutual funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Mutual funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Common collective trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.1 | 8.9 | |
U.S. | Common collective trust funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Common collective trust funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.1 | 8.9 | |
U.S. | Common collective trust funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Government debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.1 | 2.2 | |
U.S. | Government debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Government debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.1 | 2.2 | |
U.S. | Government debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 16.7 | |
U.S. | Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Corporate debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 16.7 | |
U.S. | Corporate debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.8 | 9.8 | |
U.S. | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Asset-backed securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.8 | 9.8 | |
U.S. | Asset-backed securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Multi-strategy hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.2 | 9.5 | |
U.S. | Multi-strategy hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Multi-strategy hedge funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.2 | 9.5 | |
U.S. | Multi-strategy hedge funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Government mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.3 | 8 | |
U.S. | Government mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Government mortgage-backed securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.3 | 8 | |
U.S. | Government mortgage-backed securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Collateralized mortgage obligations, mortgage backed securities, and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.8 | 7.3 | |
U.S. | Collateralized mortgage obligations, mortgage backed securities, and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Collateralized mortgage obligations, mortgage backed securities, and other | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.8 | 7.3 | |
U.S. | Collateralized mortgage obligations, mortgage backed securities, and other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 318.9 | 351.2 | $ 342.8 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 143.8 | 162.8 | |
International | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 174.4 | 187.5 | |
International | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0.9 | |
International | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | 6.1 | |
International | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | 6.1 | |
International | Cash and cash equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142.6 | 156.7 | |
International | Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142.6 | 156.7 | |
International | Mutual funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Mutual funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Foreign corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 121.6 | 118.6 | |
International | Foreign corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Foreign corporate debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 121.6 | 118.6 | |
International | Foreign corporate debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Multi-strategy hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.7 | 25.1 | |
International | Multi-strategy hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Multi-strategy hedge funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.7 | 25.1 | |
International | Multi-strategy hedge funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.3 | 18.4 | |
International | Insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Insurance contracts | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.3 | 18.4 | |
International | Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Other debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12.1 | ||
International | Other debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
International | Other debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12.1 | ||
International | Other debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11.3 | 10.6 | |
International | Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Real estate | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10.6 | 9.7 | |
International | Real estate | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0.9 | |
International | Foreign government debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.6 | |
International | Foreign government debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Foreign government debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.6 | |
International | Foreign government debt securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Retiree Ben64
Pension and Other Retiree Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions to defined benefit plans for 2016 | $ 6.5 |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 24.5 |
2,017 | 25.1 |
2,018 | 26 |
2,019 | 26.4 |
2,020 | 27.2 |
Years 2021 — 2025 | 146.3 |
Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 0.6 |
2,017 | 0.6 |
2,018 | 0.6 |
2,019 | 0.6 |
2,020 | 0.6 |
Years 2021 — 2025 | $ 2.6 |
Pension and Other Retiree Ben65
Pension and Other Retiree Benefits Pension and Other Retiree Benefits (Multi-Employer) (Details) (Details) - Multi-employer Plans, Pension - PACE Industry Union-Management Pension Fund - Multiemployer Plan, Plan Information, Available - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Minimum Period in Years for Withdrawal Liability | 20 years | ||
EIN | 116,166,763 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
Multiemployer Plans, Certified Zone Status, Date | Dec. 31, 2014 | Dec. 31, 2013 | |
FIP/RP Status | Implemented | ||
Contributions | $ 0.3 | $ 0.4 | $ 0.2 |
Surcharge Imposed | Yes | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Jun. 30, 2017 |
Pension and Other Retiree Ben66
Pension and Other Retiree Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)yr | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | $ 89.1 | $ 100.5 | ||
Accumulated benefit obligation | 590 | |||
Employer contributions | 7.1 | |||
Expected contributions to defined benefit plans for 2016 | 6.5 | |||
Costs related to defined contribution plans | 9.8 | 8.6 | $ 8.4 | |
Defined Contribution Plan, Effect of Significant Changes During Period Affecting Comparability | 1.2 | |||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | [1] | 52.9 | 49 | |
Employer contributions | $ 1.3 | 6.2 | ||
U.S. | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 65.00% | |||
U.S. | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 20.00% | |||
U.S. | Alternate assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 15.00% | |||
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | [1] | $ 28.7 | 40.1 | |
Employer contributions | 5.4 | $ 5.5 | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 533.6 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment of retirement benefits, commencement age for participants | yr | 60 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment of retirement benefits, commencement age for participants | yr | 65 | |||
[1] | Pension and post-retirement obligations of $89.1 million as of December 31, 2015, decreased from $100.5 million as of December 31, 2014, primarily due to cash contributions. |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-Based Compensation Expense by Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (16) | $ (15.7) | $ (16.4) |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | (5.7) | (5.7) | (5.9) |
Allocated Share-based Compensation Expense, Net of Tax | (10.3) | (10) | (10.5) |
Advertising, selling, general and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (16) | $ (15.7) | $ (16.4) |
Stock-Based Compensation (Sha68
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 16 | $ 15.7 | $ 16.4 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.9 | 3.7 | 3 |
RSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4.7 | 6.6 | 5.5 |
PSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 7.4 | $ 5.4 | $ 7.9 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4.6 |
Weighted average years expense to be recognized over | 1 year 6 months 18 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4.3 |
Weighted average years expense to be recognized over | 1 year 8 months 11 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 7 |
Weighted average years expense to be recognized over | 1 year 8 months 6 days |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions) (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected lives | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Weighted average risk-free interest rate | 1.47% | 1.33% | 0.75% |
Weighted average expected volatility | 46.50% | 52.20% | 55.30% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value | $ 3 | $ 2.69 | $ 3.43 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option and SSARs Activity) (Details) - Stock Options and SSARs $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number Outstanding [Roll Forward] | |
Outstanding at December 31, 2014 | shares | 4,973,386 |
Granted | shares | 1,419,510 |
Exercised | shares | (456,341) |
Lapsed | shares | (353,024) |
Outstanding at December 31, 2015 | shares | 5,583,531 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2014 | $ / shares | $ 7.02 |
Granted | $ / shares | 7.52 |
Exercised | $ / shares | 2.01 |
Lapsed | $ / shares | 12.60 |
Outstanding at December 31, 2015 | $ / shares | $ 7.20 |
Outstanding at December 31, 2015, Weighted Average Remaining Contractual Term | 4 years 4 months 9 days |
Outstanding at December 31, 2015, Aggregate Intrinsic Value | $ | $ 4.3 |
Options/SSARs vested or expected to vest, Number Outstanding | shares | 5,464,418 |
Options/SSARs vested or expected to vest, Weighted Average Exercise Price | $ / shares | $ 7.20 |
Options/SSARs vested or expected to vest, Weighted Average Remaining Contractual Term | 4 years 3 months 27 days |
Options/SSARs vested or expected to vest, Aggregate Intrinsic Value | $ | $ 4.3 |
Exercisable shares at December 31, 2015 | shares | 2,794,497 |
Exercisable shares at December 31, 2015, Weighted Average Exercise Price | $ / shares | $ 7.37 |
Exercisable shares at December 31, 2015, Weighted Average Contractual Term | 3 years 2 months |
Exercisable shares at December 31, 2015, Aggregate Intrinsic Value | $ | $ 3.3 |
Stock-Based Compensation (Sto72
Stock-Based Compensation (Stock Units Rollforward) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
RSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2014 | 2,430,683 | |||
Granted | 668,619 | 881,554 | 791,349 | |
Vested and distributed | (1,004,964) | |||
Vested and deferred distributed | (26,585) | |||
Forfeited | (60,636) | |||
Outstanding at December 31, 2015 | 2,007,117 | 2,430,683 | ||
Vested and deferred RSUs related to deferred compensation for non-employee directors | [1] | 228,883 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $ 8.02 | |||
Granted, Weighted Average Grant Date Fair Value | 7.58 | $ 6.12 | $ 7.14 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 9.62 | |||
Vested and deferred distributed | 8.14 | |||
Forfeited, Weighted Average Grant Date Fair Value | 6.79 | |||
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | 7.11 | $ 8.02 | ||
Weighted Average Grant Date Fair Value of Vested and Deferred RSUs | $ 7.93 | |||
PSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2014 | 2,837,162 | |||
Granted | 1,017,702 | 1,316,867 | 1,174,465 | |
Vested and distributed | (697,172) | (496,926) | (419,205) | |
Forfeited | (45,143) | |||
Other - decrease due to performance of PSU's | 85,186 | |||
Outstanding at December 31, 2015 | 3,197,735 | 2,837,162 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $ 7.05 | |||
Granted, Weighted Average Grant Date Fair Value | 7.52 | $ 6.14 | $ 7.59 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 7.75 | |||
Forfeited, Weighted Average Grant Date Fair Value | 6.63 | |||
Other decrease due to performance of PSU's, Weighted Average Grant Date Fair Value | 7.81 | |||
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | $ 7.07 | $ 7.05 | ||
[1] | Included in outstanding at December 31, 2015. Vested and distribution deferred RSUs are primarily related to deferred compensation for non-employee directors. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)plan$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share-based compensation plans | plan | 1 | ||
Number of shares authorized | shares | 13,118,430 | ||
Capitalization of stock based compensation expense | $ 0 | ||
Fair value of options vested during the period | 3.8 | $ 3.2 | $ 1.9 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Peer volatility rate | 25.00% | ||
Historic volatility | 100.00% | 75.00% | |
Proceeds from stock options exercised | 0.7 | $ 0.3 | |
Aggregate intrinsic value of options exercised | 0.7 | $ 0 | |
Unrecognized compensation expense | $ 4.6 | ||
Weighted average years expense to be recognized over | 1 year 6 months 18 days | ||
Stock-settled stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options exercised | $ 2 | $ 3.6 | $ 0.7 |
Stock Options and SSARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 4.3 | ||
Weighted average years expense to be recognized over | 1 year 8 months 11 days | ||
Shares outstanding | shares | 2,007,117 | 2,430,683 | |
Weighted average grant date fair value | $ / shares | $ 7.58 | $ 6.12 | $ 7.14 |
Fair value of stock awards vested | $ 10.3 | $ 3.2 | $ 1 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 7 | ||
Weighted average years expense to be recognized over | 1 year 8 months 6 days | ||
Shares outstanding | shares | 3,197,735 | 2,837,162 | |
Weighted average grant date fair value | $ / shares | $ 7.52 | $ 6.14 | $ 7.59 |
Fair value of stock awards vested | $ 5.4 | $ 4.4 | $ 3 |
Share-based Compensation, Equity Instruments Other than Options, Shares Called upon Vested | shares | 1 | ||
Minimum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Minimum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Percentage awarded | 0.00% | ||
Maximum | Stock Options and SSARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period | 7 years | ||
Maximum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Maximum | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage awarded | 150.00% | ||
Fully Vested On The Grant Date | RSUs | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, shares that vests on grant date | $ 0.8 | $ 0.8 | $ 0.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 33.3 | $ 36.7 |
Work in process | 2.6 | 2 |
Finished goods | 167.7 | 191.2 |
Total inventories | $ 203.6 | $ 229.9 |
Property, Plant and Equipment75
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 526.1 | $ 547.7 | ||
Less: accumulated depreciation | (317) | (312.2) | ||
Property, plant and equipment, net | [1] | 209.1 | 235.5 | |
Computer software included in net property, plant and equipment | 40.7 | 37 | ||
Amortization of software costs | 6.1 | 7.4 | $ 6.7 | |
Land and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 17.6 | 21.5 | ||
Building and improvements to leaseholds | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 120 | 129 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 358.5 | 374.2 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 30 | $ 23 | ||
[1] | Net property, plant and equipment as of December 31, 2015 and 2014 contained $40.7 million and $37.0 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $6.1 million, $7.4 million and $6.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Goodwill and Identifiable Int76
Goodwill and Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 544.9 | $ 568.3 | ||
Translation | (48) | (23.4) | ||
Ending Balance | 496.9 | 544.9 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | $ 712 | |||
Accumulated impairment losses | (215.1) | |||
Goodwill | 544.9 | 568.3 | 496.9 | |
Goodwill, Impairment Loss | $ 0 | |||
ACCO Brands North America | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 387.6 | 393.1 | ||
Translation | (10.1) | (5.5) | ||
Ending Balance | 377.5 | 387.6 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | 508.4 | |||
Accumulated impairment losses | (130.9) | |||
Goodwill | 387.6 | 393.1 | 377.5 | |
ACCO Brands International | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 150.5 | 168.4 | ||
Translation | (37.9) | (17.9) | ||
Ending Balance | 112.6 | 150.5 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | 196.8 | |||
Accumulated impairment losses | (84.2) | |||
Goodwill | 150.5 | 168.4 | 112.6 | |
Computer Products Group | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 6.8 | 6.8 | ||
Translation | 0 | 0 | ||
Ending Balance | 6.8 | 6.8 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | 6.8 | |||
Accumulated impairment losses | 0 | |||
Goodwill | $ 6.8 | $ 6.8 | $ 6.8 |
Goodwill and Identifiable Int77
Goodwill and Identifiable Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||
Amortizable intangible assets, Gross Carrying Amounts | $ 218.4 | $ 238.3 | |
Amortizable intangible assets, Accumulated Amortization | (124.8) | (121.8) | |
Amortizable intangible assets, Net Book Value | 93.6 | 116.5 | |
Total identifiable intangible Assets, Gross | 690.2 | 737.7 | |
Total identifiable intangibles, Accumulated Amortization | (169.3) | (166.3) | |
Total identifiable intangibles, Net Book Value | 520.9 | 571.4 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 122.6 | 127.7 | |
Amortizable intangible assets, Accumulated Amortization | (61.7) | (55.5) | |
Amortizable intangible assets, Net Book Value | 60.9 | 72.2 | |
Customer and contractual relationships | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 94.9 | 100.4 | |
Amortizable intangible assets, Accumulated Amortization | (63.1) | (57.2) | |
Amortizable intangible assets, Net Book Value | 31.8 | 43.2 | |
Patents/proprietary technology | |||
Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross Carrying Amounts | 0.9 | 10.2 | |
Amortizable intangible assets, Accumulated Amortization | 0 | (9.1) | |
Amortizable intangible assets, Net Book Value | 0.9 | 1.1 | |
Trade Names | |||
Intangible Assets [Line Items] | |||
Carry value of trade names not substantially above their fair values | 176.6 | ||
Indefinite Lived Trade Names Gross | 471.8 | 499.4 | |
Indefinite-lived intangible assets, Accumulated Amortization | (44.5) | (44.5) | |
Indefinite-Lived Intangible Assets (Trade names) | 427.3 | $ 454.9 | |
Brazil | Trade Names | |||
Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||
Long-term growth rate | 6.50% | ||
Discount rate | 14.50% |
Goodwill And Identifiable Int78
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 19.6 | $ 22.2 | $ 24.7 |
Estimated amortization expense, 2016 | 17.5 | ||
Estimated amortization expense, 2017 | 14.3 | ||
Estimated amortization expense, 2018 | 12.1 | ||
Estimated amortization expense, 2019 | 9.9 | ||
Estimated amortization expense, 2020 | $ 7.8 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net gain on sale of facility | $ (0.1) | $ (0.8) | $ 4.1 | |
Net cash proceeds from sale | 2.8 | 3.8 | 6.1 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 8.4 | 20.5 | 15.4 | |
Provision/(income) | (0.4) | 5.5 | 30.1 | |
(Cash expenditures)/Proceeds | (6.7) | (16.9) | (23.3) | |
Non-cash Items/ Currency Change | (0.3) | (0.7) | (1.7) | |
Balance at end of period | 1 | 8.4 | 20.5 | |
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 7.8 | 19.1 | 15.2 | |
Provision/(income) | (0.6) | 4.3 | 26.4 | |
(Cash expenditures)/Proceeds | (6.1) | (15.3) | (22.5) | |
Non-cash Items/ Currency Change | (0.3) | (0.3) | 0 | |
Balance at end of period | $ 0.8 | 7.8 | 19.1 | |
Period over which restructuring and related costs are to be paid | 3 months | |||
Termination of lease agreements | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0.6 | 1.4 | 0.2 | |
Provision/(income) | 0.2 | 0.5 | 1.9 | |
(Cash expenditures)/Proceeds | (0.6) | (1.5) | (0.7) | |
Non-cash Items/ Currency Change | 0 | 0.2 | 0 | |
Balance at end of period | $ 0.2 | 0.6 | 1.4 | |
Period over which restructuring and related costs are to be paid | 3 months | |||
Asset impairment/net loss on disposal of assets resulting from restructuring activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0 | 0 | 0 | |
Provision/(income) | 0.6 | 1.2 | ||
(Cash expenditures)/Proceeds | 0 | 0.5 | ||
Non-cash Items/ Currency Change | (0.6) | (1.7) | ||
Balance at end of period | 0 | 0 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0 | 0 | 0 | |
Provision/(income) | 0.1 | 0.6 | ||
(Cash expenditures)/Proceeds | (0.1) | (0.6) | ||
Non-cash Items/ Currency Change | 0 | 0 | ||
Balance at end of period | 0 | 0 | ||
Buildings | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net gain on sale of facility | 2.5 | |||
Net cash proceeds from sale | $ 1 | $ 3.2 | $ 3.8 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Domestic operations | $ 60.9 | $ 43.5 | $ 1.8 |
Foreign operations | 70.5 | 93.5 | 89.9 |
Income from continuing operations before income tax | $ 131.4 | $ 137 | $ 91.7 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at U.S. statutory rate of 35% | $ 46 | $ 47.9 | $ 32.1 |
State, local and other tax net of federal benefit | 2.1 | 2.1 | (1.4) |
U.S. effect of foreign dividends and earnings | 3.9 | 7.4 | 7.5 |
Unrealized foreign currency loss on intercompany debt | (0.7) | (3) | (3.5) |
Foreign income taxed at a lower effective rate | (5.6) | (8.6) | (6.4) |
Interest on Brazilian Tax Assessment | 2.7 | 3.2 | 1.8 |
Expiration of tax credits | 1 | 11.7 | 0 |
Decrease in valuation allowances | (1.3) | (11.5) | (11.6) |
Correction of deferred tax error | 0 | 0 | (3.1) |
Other | (2.6) | (3.8) | (1) |
Income tax expense | $ 45.5 | $ 45.4 | $ 14.4 |
Effective income tax rate | 34.60% | 33.10% | 15.70% |
U.S. statutory rate | 35.00% | ||
U.S. state and foreign jurisdictions | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Net tax (benefit) expense from release and generation of valuation allowances | $ (0.3) | $ 0.2 | |
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Open Tax Year | 2,012 | ||
Foreign Tax Authority | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (11.6) | ||
Foreign Tax Authority | Australian Taxation Office | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Open Tax Year | 2,011 | ||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Open Tax Year | 2,010 | ||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Open Tax Year | 2,007 | ||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Open Tax Year | 2,014 |
Income Taxes (Components of I82
Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current expense | |||
Federal and other | $ 2.1 | $ 1.6 | $ 0.8 |
Foreign | 16 | 23.2 | 25.3 |
Total current income tax expense | 18.1 | 24.8 | 26.1 |
Deferred expense (benefit) | |||
Federal and other | 22.8 | 15.4 | (2.8) |
Foreign | 4.6 | 5.2 | (8.9) |
Total deferred income tax expense (benefit) | 27.4 | 20.6 | (11.7) |
Income tax expense | $ 45.5 | $ 45.4 | $ 14.4 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Compensation and benefits | $ 17.3 | $ 20.4 |
Pension | 27.9 | 32 |
Inventory | 11.4 | 7.1 |
Other reserves | 17.1 | 19.8 |
Accounts receivable | 7.7 | 7.6 |
Foreign tax credit carryforwards | 10.9 | 11.9 |
Net operating loss carryforwards | 56.9 | 87.5 |
Unrealized foreign currency loss on intercompany debt | 3 | 3.2 |
Other | 9.4 | 8.8 |
Gross deferred income tax assets | 161.6 | 198.3 |
Valuation allowance | (22.1) | (23.9) |
Net deferred tax assets | 139.5 | 174.4 |
Deferred tax liabilities | ||
Depreciation | (16) | (19.1) |
Identifiable intangible | (240.7) | (256.6) |
Gross deferred tax liabilities | (256.7) | (275.7) |
Net deferred tax liabilities | $ (117.2) | $ (101.3) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 45.9 | $ 52.1 | $ 56.3 |
Additions for tax positions of prior years | 3 | 3.5 | 2.4 |
Reductions for tax positions of prior years | 0 | (4.2) | 0 |
Settlements | 0 | 0 | (0.1) |
Foreign exchange changes | (14.1) | (5.5) | (6.5) |
Balance at end of year | $ 34.8 | $ 45.9 | $ 52.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Allowance [Line Items] | ||||
Income tax expense | $ 45.5 | $ 45.4 | $ 14.4 | |
Income (loss) from continuing operations before income tax | 131.4 | 137 | 91.7 | |
Correction of deferred tax error | $ 0 | $ 0 | $ (3.1) | |
Effective tax rate | 34.60% | 33.10% | 15.70% | |
Expiration of tax credits | $ 1 | $ 11.7 | $ 0 | |
Decrease in valuation allowances | (1.3) | (11.5) | (11.6) | |
Operating loss carryforwards | 172.1 | |||
Undistributed earnings of foreign subsidiaries | 540 | 565 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 10 | |||
Unrecognized tax benefits | 34.8 | 45.9 | 52.1 | $ 56.3 |
Unrecognized tax benefits that would impact effective tax rate | 33.1 | |||
U.S. state and foreign jurisdictions | ||||
Valuation Allowance [Line Items] | ||||
Net tax (benefit) expense from release and generation of valuation allowances | $ (0.3) | 0.2 | ||
Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Change in deferred tax asset | (11.6) | |||
Minimum | Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Statutes of limitation, period | 2 years | |||
Minimum | State and Local Jurisdiction | ||||
Valuation Allowance [Line Items] | ||||
Statutes of limitation, period | 2 years | |||
Maximum | Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Statutes of limitation, period | 5 years | |||
Maximum | State and Local Jurisdiction | ||||
Valuation Allowance [Line Items] | ||||
Statutes of limitation, period | 5 years | |||
Secretariat of the Federal Revenue Bureau of Brazil | Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Penalty rate | 75.00% | |||
Potential Penalty Rate | 150.00% | |||
Income Tax Examination, Interest Expense | $ 2.7 | $ 3.2 | $ 1.8 | |
Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2007-2012 | Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Income Tax Contingency, Potential Brazilian Assessment | $ 28.2 | 44.5 | ||
Potential tax assessment, accrued reserve related to fair value of liabilities acquired | $ 43.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | |||
Common stock, shares, outstanding | 105,640,003 | 111,911,290 | |
Repurchased and retired common stock | 7,690,628 | 2,755,642 | |
Treasury Stock, Shares, Acquired | 700,000 | 400,000 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted-average number of common shares outstanding - basic | 108,800,000 | 113,700,000 | 113,500,000 |
Adjusted weighted average shares and assumed conversions - diluted | 110,600,000 | 116,300,000 | 115,700,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 5,500,000 | 4,300,000 | 4,900,000 |
Stock options | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 200,000 | 100,000 | 0 |
Stock-settled stock appreciation rights | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 300,000 | 600,000 | 900,000 |
Restricted stock units | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 1,300,000 | 1,900,000 | 1,300,000 |
Derivative Financial Instrume87
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 33.3 | $ 55.8 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 68.2 | $ 68.4 |
Derivative Financial Instrume88
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 2.6 | $ 4.7 |
Derivative Liabilities | 0.4 | 0.5 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.9 | 4.6 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.3 | 0.1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.7 | 0.1 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0.1 | $ 0.4 |
Derivative Financial Instrume89
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives not designated as hedging instruments | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (0.5) | $ 1.3 | $ (0.6) |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 8.2 | 6.9 | 3.7 |
Cash Flow Hedging | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Reclassified from OCI (Effective Portion) | $ (10.9) | $ (3.5) | $ (3.4) |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward currency contracts, assets | $ 2.6 | $ 4.7 |
Forward currency contracts, liabilities | 0.4 | 0.5 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value of total debt | $ 740.3 | $ 831.9 |
Fair Value Of Financial Instr91
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months | |
Total debt | $ 729 | $ 800.6 |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Income (Loss) (Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (292.6) | $ (185.6) |
Other comprehensive income (loss) before reclassifications, net of tax | (131.4) | (108.6) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 5.2 | (1.6) |
Ending Balance | (429.2) | (292.6) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 2.7 | 0.3 |
Other comprehensive income (loss) before reclassifications, net of tax | 5.8 | 4.9 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 7.7 | 2.5 |
Ending Balance | 0.8 | 2.7 |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (166) | (89.6) |
Other comprehensive income (loss) before reclassifications, net of tax | (136.7) | (76.4) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Ending Balance | (302.7) | (166) |
Unrecognized Pension and Other Post-retirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (129.3) | (96.3) |
Other comprehensive income (loss) before reclassifications, net of tax | (0.5) | (37.1) |
Amounts reclassified from accumulated other comprehensive income, net of tax | (2.5) | (4.1) |
Ending Balance | $ (127.3) | $ (129.3) |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income (Loss) (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Cost of products sold | $ (1,032) | $ (1,159.3) | $ (1,217.2) | |
Amortization of actuarial loss included in net income | 3.6 | 5.9 | 11.4 | |
Amortization of prior service cost included in net income | 0.1 | 0.3 | 0.1 | |
Income tax expense (benefit) | (45.5) | (45.4) | (14.4) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Net of tax | 5.2 | (1.6) | (5.1) | |
Derivative Financial Instruments | Foreign exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Cost of products sold | 10.9 | 3.5 | 3.4 | |
Income tax expense (benefit) | (3.2) | (1) | (1) | |
Net of tax | 7.7 | 2.5 | 2.4 | |
Unrecognized Pension and Other Post-retirement Benefit Costs | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Amortization of actuarial loss included in net income | [1] | (3.6) | (5.9) | (11.4) |
Amortization of prior service cost included in net income | [1] | (0.1) | (0.3) | (0.1) |
Total before tax | (3.7) | (6.2) | (11.5) | |
Income tax expense (benefit) | 1.2 | 2.1 | 4 | |
Net of tax | $ (2.5) | $ (4.1) | $ (7.5) | |
[1] | This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See "Note 4. Pension and Other Retiree Benefits" for additional details) |
Information on Business Segme94
Information on Business Segments (Net Sales by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 412.1 | $ 413.6 | $ 394.7 | $ 290 | $ 459.9 | $ 472.2 | $ 427.7 | $ 329.4 | $ 1,510.4 | $ 1,689.2 | $ 1,765.1 | ||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 963.3 | 1,006 | 1,041.4 | ||||||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 426.9 | 546.9 | 566.6 | ||||||||||||||||
Computer Products Group | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 120.2 | $ 136.3 | $ 157.1 | ||||||||||||||||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE® and Day-Timer® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. |
Information on Business Segme95
Information on Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 56.9 | $ 54.8 | $ 49.2 | $ 2.6 | $ 68.5 | $ 61.8 | $ 43.9 | $ (0.6) | $ 163.5 | [1] | $ 173.6 | [1] | $ 145.8 | [1] | |
Interest expense | 44.5 | 49.5 | 59 | ||||||||||||
Interest income | (6.6) | (5.6) | (4.3) | ||||||||||||
Equity in earnings of joint ventures | (7.9) | (8.1) | (8.2) | ||||||||||||
Other expense, net | 2.1 | 0.8 | 7.6 | ||||||||||||
Income (loss) from continuing operations before income tax | 131.4 | 137 | 91.7 | ||||||||||||
Corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | (35.2) | (38.2) | (32.6) | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | [1] | 198.7 | 211.8 | 178.4 | |||||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 147.6 | 140.7 | 98.2 | ||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 40.8 | 62.9 | 66.5 | ||||||||||||
Computer Products Group | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 10.3 | $ 8.2 | $ 13.7 | ||||||||||||
[1] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Information on Business Segme96
Information on Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 1,953.4 | $ 2,215.1 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 1.1 | 1.4 |
Total segment assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 810.3 | 925.8 | |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 413.8 | 433.7 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 335 | 429.7 |
Computer Products Group | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 61.5 | 62.4 |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 1,142 | $ 1,287.9 | |
[1] | Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. |
Information on Business Segme97
Information on Business Segments (Identifiable Intangibles and Goodwill by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 1,953.4 | $ 2,215.1 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1.1 | 1.4 |
Total segment assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 1,828.1 | 2,042.1 | |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1,220.7 | 1,272.4 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 531.5 | 692.7 |
Computer Products Group | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 75.9 | 77 |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 124.2 | $ 171.6 | |
[1] | Represents total assets, excluding: intercompany balances, cash, deferred taxes, prepaid pension assets, prepaid debt issuance costs and joint ventures accounted for on an equity basis. |
Information on Business Segme98
Information on Business Segments (Property, Plant and Equipment by Country) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | [1] | $ 209.1 | $ 235.5 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 111.5 | 122 | |
U.K. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 38.9 | 34.1 | |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 31.9 | 49.3 | |
Australia | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 10.6 | 12 | |
Other countries | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 16.2 | $ 18.1 | |
[1] | Net property, plant and equipment as of December 31, 2015 and 2014 contained $40.7 million and $37.0 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $6.1 million, $7.4 million and $6.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Information on Business Segme99
Information on Business Segments (Revenue by Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | $ 412.1 | $ 413.6 | $ 394.7 | $ 290 | $ 459.9 | $ 472.2 | $ 427.7 | $ 329.4 | $ 1,510.4 | $ 1,689.2 | $ 1,765.1 | |||||||||
U.S. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 904.3 | 921 | 955.5 | ||||||||||||||||
Canada | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 121.4 | 150.6 | 159.7 | ||||||||||||||||
Netherlands | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 108.7 | 130.2 | 130.2 | ||||||||||||||||
Brazil | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 92 | 154 | 157.2 | ||||||||||||||||
Australia | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 91.8 | 108.5 | 119.8 | ||||||||||||||||
U.K. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 76.4 | 89.1 | 101.3 | ||||||||||||||||
Mexico | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 49.6 | 58.8 | 58.9 | ||||||||||||||||
Other countries | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 66.2 | $ 77 | $ 82.5 | ||||||||||||||||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE® and Day-Timer® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. | |||||||||||||||||||
[2] | Net sales are attributed to geographic areas based on the location of the selling subsidiaries. |
Information on Business Segm100
Information on Business Segments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | 3 | ||
Concentration risk, number of customers | customer | 5 | ||
Sales Revenue, Net | Top five customers | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 637.7 | $ 706 | $ 680.5 |
Sales Revenue, Net | Staples | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 204.1 | $ 224.1 | $ 229.5 |
Concentration risk, percentage | 14.00% | 13.00% | 13.00% |
Sales Revenue, Net | Office Depot | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 152.5 | $ 190.9 | |
Concentration risk, percentage | 10.00% | 11.00% | |
Accounts Receivable | Top five customers | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, trade account receivable | $ 152.3 | $ 144.2 |
Joint Venture Investment (Detai
Joint Venture Investment (Details) - Pelikan Artline Pty Ltd - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Net sales | $ 111.2 | $ 121.4 | $ 105.4 |
Gross profit | 45.5 | 48.2 | 44.8 |
Net income | 15.8 | 16.4 | $ 16.4 |
Current assets | 76.6 | 83.4 | |
Non-current assets | 43.6 | 47.3 | |
Current liabilities | 37.5 | 40.7 | |
Non-current liabilities | $ 13.1 | $ 22 |
Commitments and Contingencie102
Commitments and Contingencies (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | $ 20.5 | ||
2,017 | 17.7 | ||
2,018 | 15.2 | ||
2,019 | 14.5 | ||
2,020 | 13.3 | ||
Thereafter | 22.8 | ||
Total minimum rental payments | 104 | ||
Less minimum rentals to be received under non-cancelable subleases | 3.8 | ||
Future minimum payments for operating leases, net of sublease rental income | 100.2 | ||
Total rental expense | $ 21.2 | $ 23.1 | $ 25.3 |
Commitments and Contingencie103
Commitments and Contingencies (Purchase Commitments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 96.4 |
2,017 | 7.5 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total unconditional purchase commitments | $ 103.9 |
Quarterly Financial Informat104
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 412.1 | [1] | $ 413.6 | [1] | $ 394.7 | [1] | $ 290 | [1] | $ 459.9 | [1] | $ 472.2 | [1] | $ 427.7 | [1] | $ 329.4 | [1] | $ 1,510.4 | $ 1,689.2 | $ 1,765.1 | |||
Gross profit | 137.8 | 133.7 | 126.7 | 80.2 | 156.9 | 153.3 | 131.2 | 88.5 | 478.4 | 529.9 | 547.9 | |||||||||||
Operating income (loss) | 56.9 | 54.8 | 49.2 | 2.6 | 68.5 | 61.8 | 43.9 | (0.6) | 163.5 | [2] | 173.6 | [2] | 145.8 | [2] | ||||||||
Net income (loss) | $ 31.4 | $ 32.6 | $ 27.7 | $ (5.8) | $ 43.9 | $ 34.2 | $ 21.3 | $ (7.8) | $ 85.9 | $ 91.6 | $ 77.1 | |||||||||||
Basic income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.30 | [3] | $ 0.30 | [3] | $ 0.25 | [3] | $ (0.05) | [3] | $ 0.39 | [3] | $ 0.30 | [3] | $ 0.19 | [3] | $ (0.07) | [3] | $ 0.79 | $ 0.81 | $ 0.68 | |||
Diluted income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.29 | [3] | $ 0.30 | [3] | $ 0.25 | [3] | $ (0.05) | [3] | $ 0.38 | [3] | $ 0.29 | [3] | $ 0.18 | [3] | $ (0.07) | [3] | $ 0.78 | $ 0.79 | $ 0.67 | |||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE® and Day-Timer® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. | |||||||||||||||||||||
[2] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. | |||||||||||||||||||||
[3] | The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding, dilution as a result of issuing common shares and repurchasing of common shares during the year. |
Condensed Consolidating Fina105
Condensed Consolidating Financial Information Narrative (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated percentage | 6.75% | 6.75% |
Condensed Consolidating Fina106
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current assets: | |||||
Cash and cash equivalents | $ 55.4 | $ 53.2 | $ 53.5 | $ 50 | |
Accounts receivable, net | 369.3 | 420.5 | |||
Inventories | 203.6 | 229.9 | |||
Receivables from affiliates | 0 | 0 | |||
Deferred income taxes | 0 | 39.4 | |||
Other current assets | 25.3 | 35.8 | |||
Total current assets | 653.6 | 778.8 | |||
Property, plant and equipment, net | [1] | 209.1 | 235.5 | ||
Deferred income taxes | 25.1 | 31.7 | |||
Goodwill | 496.9 | 544.9 | 568.3 | ||
Identifiable intangibles, net | 520.9 | 571.4 | |||
Other non-current assets | 47.8 | 52.8 | |||
Investment in, long term receivable from affiliates | 0 | 0 | |||
Total assets | 1,953.4 | 2,215.1 | |||
Current liabilities: | |||||
Notes payable | 0 | 0.8 | |||
Current portion of long-term debt | 0 | 0.8 | |||
Accounts payable | 147.6 | 159.1 | |||
Accrued compensation | 34 | 36.6 | |||
Accrued customer program liabilities | 108.7 | 111.8 | |||
Accrued interest | 6.3 | 6.5 | |||
Other current liabilities | 58.7 | 79.8 | |||
Payables to affiliates | 0 | 0 | |||
Total current liabilities | 355.3 | 395.4 | |||
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 720.5 | 787.7 | |||
Long-term notes payable to affiliates | 0 | 0 | |||
Deferred income taxes | 142.3 | 172.2 | |||
Pension and post-retirement benefit obligations | 89.1 | 100.5 | |||
Other non-current liabilities | 65 | 78.3 | |||
Total liabilities | 1,372.2 | 1,534.1 | |||
Stockholders' equity: | |||||
Common stock | 1.1 | 1.1 | |||
Treasury stock | (11.8) | (5.9) | |||
Paid-in capital | 1,988.3 | 2,031.5 | |||
Accumulated other comprehensive loss | (429.2) | (292.6) | (185.6) | ||
Accumulated deficit | (967.2) | (1,053.1) | |||
Total stockholders' equity | 581.2 | 681 | 702.3 | 639.2 | |
Total liabilities and stockholders' equity | 1,953.4 | 2,215.1 | |||
Reportable Legal Entities | Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 0.8 | 9.7 | 7 | 12.1 | |
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Receivables from affiliates | 4.4 | 4.8 | |||
Deferred income taxes | 27.2 | ||||
Other current assets | 1.1 | 1.4 | |||
Total current assets | 6.3 | 43.1 | |||
Property, plant and equipment, net | 3.7 | 4.2 | |||
Deferred income taxes | 0 | 0.9 | |||
Goodwill | 0 | 0 | |||
Identifiable intangibles, net | 57.4 | 57.5 | |||
Other non-current assets | 3.1 | 3.9 | |||
Investment in, long term receivable from affiliates | 1,545.7 | 1,680 | |||
Total assets | 1,616.2 | 1,789.6 | |||
Current liabilities: | |||||
Notes payable | 0 | ||||
Current portion of long-term debt | 0.7 | ||||
Accounts payable | 0 | 0 | |||
Accrued compensation | 3.8 | 3.3 | |||
Accrued customer program liabilities | 0 | 0 | |||
Accrued interest | 6.3 | 6.5 | |||
Other current liabilities | 2.3 | 1.9 | |||
Payables to affiliates | 5.6 | 5.6 | |||
Total current liabilities | 18 | 18 | |||
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 720.5 | 787.7 | |||
Long-term notes payable to affiliates | 178.2 | 178.2 | |||
Deferred income taxes | 113.5 | 120 | |||
Pension and post-retirement benefit obligations | 1.5 | 1.5 | |||
Other non-current liabilities | 3.3 | 3.2 | |||
Total liabilities | 1,035 | 1,108.6 | |||
Stockholders' equity: | |||||
Common stock | 1.1 | 1.1 | |||
Treasury stock | (11.8) | (5.9) | |||
Paid-in capital | 1,988.3 | 2,031.5 | |||
Accumulated other comprehensive loss | (429.2) | (292.6) | |||
Accumulated deficit | (967.2) | (1,053.1) | |||
Total stockholders' equity | 581.2 | 681 | |||
Total liabilities and stockholders' equity | 1,616.2 | 1,789.6 | |||
Reportable Legal Entities | Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 0.3 | 0.1 | 1 | (3) | |
Accounts receivable, net | 163.8 | 156.1 | |||
Inventories | 125.8 | 129.9 | |||
Receivables from affiliates | 474.6 | 302.7 | |||
Deferred income taxes | 0 | ||||
Other current assets | 10.8 | 15.1 | |||
Total current assets | 775.3 | 603.9 | |||
Property, plant and equipment, net | 107.8 | 117.8 | |||
Deferred income taxes | 0 | 0 | |||
Goodwill | 330.8 | 330.9 | |||
Identifiable intangibles, net | 382 | 397.9 | |||
Other non-current assets | 0.8 | 1 | |||
Investment in, long term receivable from affiliates | 903.8 | 890.8 | |||
Total assets | 2,500.5 | 2,342.3 | |||
Current liabilities: | |||||
Notes payable | 0 | ||||
Current portion of long-term debt | 0.1 | ||||
Accounts payable | 86.6 | 84.8 | |||
Accrued compensation | 17.9 | 20.1 | |||
Accrued customer program liabilities | 63.9 | 60.1 | |||
Accrued interest | 0 | 0 | |||
Other current liabilities | 22.9 | 31 | |||
Payables to affiliates | 210 | 214.1 | |||
Total current liabilities | 401.3 | 410.2 | |||
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 0 | 0 | |||
Long-term notes payable to affiliates | 26.7 | 26.7 | |||
Deferred income taxes | 0 | 0 | |||
Pension and post-retirement benefit obligations | 55.2 | 52.3 | |||
Other non-current liabilities | 20.8 | 19.9 | |||
Total liabilities | 504 | 509.1 | |||
Stockholders' equity: | |||||
Common stock | 448 | 448 | |||
Treasury stock | 0 | 0 | |||
Paid-in capital | 1,551.1 | 1,551.1 | |||
Accumulated other comprehensive loss | (68.8) | (65.2) | |||
Accumulated deficit | 66.2 | (100.7) | |||
Total stockholders' equity | 1,996.5 | 1,833.2 | |||
Total liabilities and stockholders' equity | 2,500.5 | 2,342.3 | |||
Reportable Legal Entities | Non-Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 54.3 | 43.4 | $ 45.5 | $ 40.9 | |
Accounts receivable, net | 205.5 | 264.4 | |||
Inventories | 77.8 | 100 | |||
Receivables from affiliates | 64.5 | 68 | |||
Deferred income taxes | 12.2 | ||||
Other current assets | 13.4 | 19.3 | |||
Total current assets | 415.5 | 507.3 | |||
Property, plant and equipment, net | 97.6 | 113.5 | |||
Deferred income taxes | 25.1 | 30.8 | |||
Goodwill | 166.1 | 214 | |||
Identifiable intangibles, net | 81.5 | 116 | |||
Other non-current assets | 43.9 | 47.9 | |||
Investment in, long term receivable from affiliates | 441 | 441 | |||
Total assets | 1,270.7 | 1,470.5 | |||
Current liabilities: | |||||
Notes payable | 0.8 | ||||
Current portion of long-term debt | 0 | ||||
Accounts payable | 61 | 74.3 | |||
Accrued compensation | 12.3 | 13.2 | |||
Accrued customer program liabilities | 44.8 | 51.7 | |||
Accrued interest | 0 | 0 | |||
Other current liabilities | 33.5 | 46.9 | |||
Payables to affiliates | 239.5 | 240.5 | |||
Total current liabilities | 391.1 | 427.4 | |||
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 0 | 0 | |||
Long-term notes payable to affiliates | 21 | 31.2 | |||
Deferred income taxes | 28.8 | 52.2 | |||
Pension and post-retirement benefit obligations | 32.4 | 46.7 | |||
Other non-current liabilities | 40.9 | 55.2 | |||
Total liabilities | 514.2 | 612.7 | |||
Stockholders' equity: | |||||
Common stock | 227.5 | 247 | |||
Treasury stock | 0 | 0 | |||
Paid-in capital | 743.2 | 743 | |||
Accumulated other comprehensive loss | (305.8) | (183) | |||
Accumulated deficit | 91.6 | 50.8 | |||
Total stockholders' equity | 756.5 | 857.8 | |||
Total liabilities and stockholders' equity | 1,270.7 | 1,470.5 | |||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Receivables from affiliates | (543.5) | (375.5) | |||
Deferred income taxes | 0 | ||||
Other current assets | 0 | 0 | |||
Total current assets | (543.5) | (375.5) | |||
Property, plant and equipment, net | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Identifiable intangibles, net | 0 | 0 | |||
Other non-current assets | 0 | 0 | |||
Investment in, long term receivable from affiliates | (2,890.5) | (3,011.8) | |||
Total assets | (3,434) | (3,387.3) | |||
Current liabilities: | |||||
Current portion of long-term debt | 0 | ||||
Accounts payable | 0 | 0 | |||
Accrued compensation | 0 | 0 | |||
Accrued customer program liabilities | 0 | 0 | |||
Accrued interest | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Payables to affiliates | (455.1) | (460.2) | |||
Total current liabilities | (455.1) | (460.2) | |||
Long-term debt, net of debt issuance costs of $8.5 and $11.3, respectively | 0 | 0 | |||
Long-term notes payable to affiliates | (225.9) | (236.1) | |||
Deferred income taxes | 0 | 0 | |||
Pension and post-retirement benefit obligations | 0 | 0 | |||
Other non-current liabilities | 0 | 0 | |||
Total liabilities | (681) | (696.3) | |||
Stockholders' equity: | |||||
Common stock | (675.5) | (695) | |||
Treasury stock | 0 | 0 | |||
Paid-in capital | (2,294.3) | (2,294.1) | |||
Accumulated other comprehensive loss | 374.6 | 248.2 | |||
Accumulated deficit | (157.8) | 49.9 | |||
Total stockholders' equity | (2,753) | (2,691) | |||
Total liabilities and stockholders' equity | $ (3,434) | $ (3,387.3) | |||
[1] | Net property, plant and equipment as of December 31, 2015 and 2014 contained $40.7 million and $37.0 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $6.1 million, $7.4 million and $6.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Condensed Consolidating Fina107
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | $ 412.1 | [1] | $ 413.6 | [1] | $ 394.7 | [1] | $ 290 | [1] | $ 459.9 | [1] | $ 472.2 | [1] | $ 427.7 | [1] | $ 329.4 | [1] | $ 1,510.4 | $ 1,689.2 | $ 1,765.1 | |||
Cost of products sold | 1,032 | 1,159.3 | 1,217.2 | |||||||||||||||||||
Gross profit | 137.8 | 133.7 | 126.7 | 80.2 | 156.9 | 153.3 | 131.2 | 88.5 | 478.4 | 529.9 | 547.9 | |||||||||||
Advertising, selling, general and administrative expenses | 295.7 | 328.6 | 347.3 | |||||||||||||||||||
Amortization of intangibles | 19.6 | 22.2 | 24.7 | |||||||||||||||||||
Restructuring (credits) charges | (0.4) | 5.5 | 30.1 | |||||||||||||||||||
Operating income | 56.9 | 54.8 | 49.2 | 2.6 | 68.5 | 61.8 | 43.9 | (0.6) | 163.5 | [2] | 173.6 | [2] | 145.8 | [2] | ||||||||
Expense (income) from affiliates | 0 | 0 | 0 | |||||||||||||||||||
Interest expense | 44.5 | 49.5 | 59 | |||||||||||||||||||
Interest income | (6.6) | (5.6) | (4.3) | |||||||||||||||||||
Equity in earnings of joint ventures | (7.9) | (8.1) | (8.2) | |||||||||||||||||||
Other expense (income), net | 2.1 | 0.8 | 7.6 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries | 131.4 | 137 | 91.7 | |||||||||||||||||||
Income tax expense (benefit) | 45.5 | 45.4 | 14.4 | |||||||||||||||||||
Income from continuing operations | 85.9 | 91.6 | 77.3 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | (0.2) | |||||||||||||||||||
Income (loss) before earnings of wholly owned subsidiaries | 85.9 | 91.6 | 77.1 | |||||||||||||||||||
Earnings of wholly owned subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
Net income | $ 31.4 | $ 32.6 | $ 27.7 | $ (5.8) | $ 43.9 | $ 34.2 | $ 21.3 | $ (7.8) | 85.9 | 91.6 | 77.1 | |||||||||||
Comprehensive income | (50.7) | (15.4) | 47.6 | |||||||||||||||||||
Reportable Legal Entities | Parent | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||||||
Cost of products sold | 0 | 0 | 0 | |||||||||||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||||||||||
Advertising, selling, general and administrative expenses | 42.8 | 45.4 | 40.6 | |||||||||||||||||||
Amortization of intangibles | 0.1 | 0.1 | 0.1 | |||||||||||||||||||
Restructuring (credits) charges | 0 | 0 | 0.5 | |||||||||||||||||||
Operating income | (42.9) | (45.5) | (41.2) | |||||||||||||||||||
Expense (income) from affiliates | (1.2) | (1.5) | (1.5) | |||||||||||||||||||
Interest expense | 45.4 | 49.9 | 58.6 | |||||||||||||||||||
Interest income | 0 | 0 | 0 | |||||||||||||||||||
Equity in earnings of joint ventures | 0 | 0 | 0 | |||||||||||||||||||
Other expense (income), net | 0.7 | 0.4 | 4.8 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries | (87.8) | (94.3) | (103.1) | |||||||||||||||||||
Income tax expense (benefit) | 25.2 | 18.2 | (1.5) | |||||||||||||||||||
Income from continuing operations | (113) | (112.5) | (101.6) | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||||||||||||
Income (loss) before earnings of wholly owned subsidiaries | (113) | (112.5) | (101.6) | |||||||||||||||||||
Earnings of wholly owned subsidiaries | 198.9 | 204.1 | 178.7 | |||||||||||||||||||
Net income | 85.9 | 91.6 | 77.1 | |||||||||||||||||||
Comprehensive income | (50.7) | (15.4) | 47.6 | |||||||||||||||||||
Reportable Legal Entities | Guarantors | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | 948.5 | 969.2 | 971.2 | |||||||||||||||||||
Cost of products sold | 645 | 673.4 | 669.8 | |||||||||||||||||||
Gross profit | 303.5 | 295.8 | 301.4 | |||||||||||||||||||
Advertising, selling, general and administrative expenses | 154.2 | 157.1 | 183.5 | |||||||||||||||||||
Amortization of intangibles | 16 | 17.7 | 19.7 | |||||||||||||||||||
Restructuring (credits) charges | (0.3) | 4.6 | 14.3 | |||||||||||||||||||
Operating income | 133.6 | 116.4 | 83.9 | |||||||||||||||||||
Expense (income) from affiliates | (17.1) | (20.7) | (21.7) | |||||||||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||||||||
Interest income | 0 | (0.1) | (0.1) | |||||||||||||||||||
Equity in earnings of joint ventures | 0 | 0 | 0 | |||||||||||||||||||
Other expense (income), net | 2 | (0.7) | 0.8 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries | 148.7 | 137.9 | 104.9 | |||||||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||||||
Income from continuing operations | 148.7 | 137.9 | 104.9 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | (0.2) | |||||||||||||||||||
Income (loss) before earnings of wholly owned subsidiaries | 148.7 | 137.9 | 104.7 | |||||||||||||||||||
Earnings of wholly owned subsidiaries | 47.3 | 62.7 | 72.6 | |||||||||||||||||||
Net income | 196 | 200.6 | 177.3 | |||||||||||||||||||
Comprehensive income | 192.4 | 181 | 200.6 | |||||||||||||||||||
Reportable Legal Entities | Non-Guarantors | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | 610.3 | 772 | 814 | |||||||||||||||||||
Cost of products sold | 435.4 | 537.9 | 567.5 | |||||||||||||||||||
Gross profit | 174.9 | 234.1 | 246.5 | |||||||||||||||||||
Advertising, selling, general and administrative expenses | 98.7 | 126.1 | 123.2 | |||||||||||||||||||
Amortization of intangibles | 3.5 | 4.4 | 4.9 | |||||||||||||||||||
Restructuring (credits) charges | (0.1) | 0.9 | 15.3 | |||||||||||||||||||
Operating income | 72.8 | 102.7 | 103.1 | |||||||||||||||||||
Expense (income) from affiliates | 18.3 | 22.2 | 23.2 | |||||||||||||||||||
Interest expense | (0.9) | (0.4) | 0.4 | |||||||||||||||||||
Interest income | (6.6) | (5.5) | (4.2) | |||||||||||||||||||
Equity in earnings of joint ventures | (7.9) | (8.1) | (8.2) | |||||||||||||||||||
Other expense (income), net | (0.6) | 1.1 | 2 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries | 70.5 | 93.4 | 89.9 | |||||||||||||||||||
Income tax expense (benefit) | 20.3 | 27.2 | 15.9 | |||||||||||||||||||
Income from continuing operations | 50.2 | 66.2 | 74 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||||||||||||
Income (loss) before earnings of wholly owned subsidiaries | 50.2 | 66.2 | 74 | |||||||||||||||||||
Earnings of wholly owned subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
Net income | 50.2 | 66.2 | 74 | |||||||||||||||||||
Comprehensive income | (72.6) | (17.1) | 26.5 | |||||||||||||||||||
Eliminations | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | (48.4) | (52) | (20.1) | |||||||||||||||||||
Cost of products sold | (48.4) | (52) | (20.1) | |||||||||||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||||||||||
Advertising, selling, general and administrative expenses | 0 | 0 | 0 | |||||||||||||||||||
Amortization of intangibles | 0 | 0 | 0 | |||||||||||||||||||
Restructuring (credits) charges | 0 | 0 | 0 | |||||||||||||||||||
Operating income | 0 | 0 | 0 | |||||||||||||||||||
Expense (income) from affiliates | 0 | 0 | 0 | |||||||||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||||||||
Interest income | 0 | 0 | 0 | |||||||||||||||||||
Equity in earnings of joint ventures | 0 | 0 | 0 | |||||||||||||||||||
Other expense (income), net | 0 | 0 | 0 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||||||
Income from continuing operations | 0 | 0 | 0 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||||||||||||
Income (loss) before earnings of wholly owned subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
Earnings of wholly owned subsidiaries | (246.2) | (266.8) | (251.3) | |||||||||||||||||||
Net income | (246.2) | (266.8) | (251.3) | |||||||||||||||||||
Comprehensive income | $ (119.8) | $ (163.9) | $ (227.1) | |||||||||||||||||||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year. Two principal factors contribute to this seasonality: (1) the office products industry, its customers and ACCO Brands specifically are major suppliers of products related to the "back-to-school" season, which occurs principally from June through September for our North American business and from November through February for our Australian and Brazilian businesses; and (2) several products we sell lend themselves to calendar year-end purchase timing, including AT-A-GLANCE® and Day-Timer® planners, paper organization and storage products (including bindery) and Kensington computer accessories, which have higher sales in the fourth quarter driven by traditionally strong fourth-quarter sales of personal computers and tablets. | |||||||||||||||||||||
[2] | Operating income as presented in the segment table above is defined as i) net sales; ii) less cost of products sold; iii) less advertising, selling, general and administrative expenses; iv) less amortization of intangibles; and v) less restructuring charges. |
Condensed Consolidating Fina108
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | $ 171.2 | $ 171.7 | $ 194.5 |
Investing activities | |||
Additions to property, plant and equipment | (27.6) | (29.6) | (36.6) |
Payments for (proceeds from) interest in affiliates | 0 | 0 | 0 |
Payments related to the sale of discontinued operations | 0 | 0 | (1.5) |
Proceeds from the disposition of assets | 2.8 | 3.8 | 6.1 |
Cost of acquisitions, net of cash acquired | 0 | 0 | (1.3) |
Other | 0.2 | 0 | 0 |
Net cash used by investing activities | (24.6) | (25.8) | (33.3) |
Financing activities | |||
Intercompany financing | 0 | 0 | 0 |
Net dividends | 0 | 0 | 0 |
Proceeds from long-term borrowings | (300) | 0 | (530) |
Repayments of long-term debt | (370.1) | (121.1) | (679.5) |
(Repayments) borrowings of notes payable, net | (0.8) | 1 | (0.7) |
Payments for debt issuance costs | (1.7) | (0.3) | (4.3) |
Repurchases of common stock | (60) | (19.4) | 0 |
Payments related to tax withholding for share-based compensation | (5.9) | (2.5) | (1) |
Proceeds from the exercise of stock options | 0.7 | 0.3 | 0 |
Net cash used by financing activities | (137.8) | (142) | (155.5) |
Effect of foreign exchange rate changes on cash and cash equivalents | (6.6) | (4.2) | (2.2) |
Net increase (decrease) in cash and cash equivalents | 2.2 | (0.3) | 3.5 |
Cash and cash equivalents: | |||
Beginning of the period | 53.2 | 53.5 | 50 |
End of the period | 55.4 | 53.2 | 53.5 |
Non-Guarantors | |||
Financing activities | |||
Proceeds from long-term borrowings | 0 | ||
Reportable Legal Entities | Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (68.2) | (77.9) | (81.7) |
Investing activities | |||
Additions to property, plant and equipment | 0 | (0.2) | 0 |
Payments for (proceeds from) interest in affiliates | 0 | 0 | 0 |
Payments related to the sale of discontinued operations | 0 | ||
Proceeds from the disposition of assets | 0 | 0 | 0 |
Cost of acquisitions, net of cash acquired | 0 | ||
Other | 0 | ||
Net cash used by investing activities | 0 | (0.2) | 0 |
Financing activities | |||
Intercompany financing | 172.4 | 188.3 | 143.8 |
Net dividends | 23.8 | 35.4 | 65.7 |
Proceeds from long-term borrowings | (300) | (530) | |
Repayments of long-term debt | (370) | (121) | (658.1) |
(Repayments) borrowings of notes payable, net | 0 | 0 | 0.5 |
Payments for debt issuance costs | (1.7) | (0.3) | (4.3) |
Repurchases of common stock | (60) | (19.4) | |
Payments related to tax withholding for share-based compensation | (5.9) | (2.5) | (1) |
Proceeds from the exercise of stock options | 0.7 | 0.3 | |
Net cash used by financing activities | 59.3 | 80.8 | 76.6 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (8.9) | 2.7 | (5.1) |
Cash and cash equivalents: | |||
Beginning of the period | 9.7 | 7 | 12.1 |
End of the period | 0.8 | 9.7 | 7 |
Reportable Legal Entities | Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 182.5 | 182.3 | 186.5 |
Investing activities | |||
Additions to property, plant and equipment | (12) | (10.6) | (21.2) |
Payments for (proceeds from) interest in affiliates | 19.5 | 20.5 | 55.6 |
Payments related to the sale of discontinued operations | (1.5) | ||
Proceeds from the disposition of assets | 0 | 3.6 | 0 |
Cost of acquisitions, net of cash acquired | (1.3) | ||
Other | 0 | ||
Net cash used by investing activities | 7.5 | 13.5 | 31.6 |
Financing activities | |||
Intercompany financing | (175.3) | (181.3) | (168.2) |
Net dividends | (14.4) | (15.3) | (45.9) |
Proceeds from long-term borrowings | 0 | 0 | |
Repayments of long-term debt | (0.1) | (0.1) | 0 |
(Repayments) borrowings of notes payable, net | 0 | 0 | 0 |
Payments for debt issuance costs | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | |
Payments related to tax withholding for share-based compensation | 0 | 0 | 0 |
Proceeds from the exercise of stock options | 0 | 0 | |
Net cash used by financing activities | (189.8) | (196.7) | (214.1) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0.2 | (0.9) | 4 |
Cash and cash equivalents: | |||
Beginning of the period | 0.1 | 1 | (3) |
End of the period | 0.3 | 0.1 | 1 |
Reportable Legal Entities | Non-Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 56.9 | 67.3 | 89.7 |
Investing activities | |||
Additions to property, plant and equipment | (15.6) | (18.8) | (15.4) |
Payments for (proceeds from) interest in affiliates | (19.5) | (20.5) | (55.6) |
Payments related to the sale of discontinued operations | 0 | ||
Proceeds from the disposition of assets | 2.8 | 0.2 | 6.1 |
Cost of acquisitions, net of cash acquired | 0 | ||
Other | 0.2 | ||
Net cash used by investing activities | (32.1) | (39.1) | (64.9) |
Financing activities | |||
Intercompany financing | 2.9 | (7) | 24.4 |
Net dividends | (9.4) | (20.1) | (19.8) |
Proceeds from long-term borrowings | 0 | ||
Repayments of long-term debt | 0 | 0 | (21.4) |
(Repayments) borrowings of notes payable, net | (0.8) | 1 | (1.2) |
Payments for debt issuance costs | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | |
Payments related to tax withholding for share-based compensation | 0 | 0 | 0 |
Proceeds from the exercise of stock options | 0 | 0 | |
Net cash used by financing activities | (7.3) | (26.1) | (18) |
Effect of foreign exchange rate changes on cash and cash equivalents | (6.6) | (4.2) | (2.2) |
Net increase (decrease) in cash and cash equivalents | 10.9 | (2.1) | 4.6 |
Cash and cash equivalents: | |||
Beginning of the period | 43.4 | 45.5 | 40.9 |
End of the period | $ 54.3 | $ 43.4 | $ 45.5 |
Valuation and Qualifying Acc109
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 5.5 | $ 6.1 | $ 6.5 |
Additions charged (credited) to expense | 3.2 | 1 | 1.5 |
Deductions | (3.5) | (1.3) | (1.6) |
Foreign exchange changes | (0.4) | (0.3) | (0.3) |
Balance at end of year | 4.8 | 5.5 | 6.1 |
Allowance for Sales Returns and Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 12 | 12.9 | 10.6 |
Additions charged (credited) to expense | 30.3 | 37.4 | 41.3 |
Deductions | (30.4) | (38.4) | (39.1) |
Foreign exchange changes | (0.2) | 0.1 | 0.1 |
Balance at end of year | 11.7 | 12 | 12.9 |
Allowance for Cash Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 2 | 2.2 | 2.2 |
Additions charged (credited) to expense | 14.2 | 15.5 | 16 |
Deductions | (13.9) | (15.6) | (16.2) |
Foreign exchange changes | (0.1) | (0.1) | 0.2 |
Balance at end of year | 2.2 | 2 | 2.2 |
Warranty Reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1.8 | 2.2 | 2.8 |
Additions charged (credited) to expense | 1.8 | 2 | 2 |
Deductions | (1.8) | (2.4) | (2.6) |
Foreign exchange changes | (0.1) | 0 | 0 |
Balance at end of year | 1.7 | 1.8 | 2.2 |
Income Tax Valuation Allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 23.9 | 33 | 55.4 |
Additions charged (credited) to expense | (0.3) | 0.2 | (11.6) |
Deductions | (1.1) | (8.7) | (10.5) |
Foreign exchange changes | (0.4) | (0.6) | (0.3) |
Balance at end of year | $ 22.1 | $ 23.9 | $ 33 |