Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 06, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 107,913,840 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 947.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 42.9 | $ 55.4 | |
Accounts receivable less allowances for discounts, doubtful accounts and sales returns of $15.7 and $18.7, respectively | 391 | 369.3 | |
Inventories | 210 | 203.6 | |
Other current assets | 26.8 | 25.3 | |
Total current assets | 670.7 | 653.6 | |
Total property, plant and equipment | 528 | 526.1 | |
Less: accumulated depreciation | (329.6) | (317) | |
Property, plant and equipment, net | [1] | 198.4 | 209.1 |
Deferred income taxes | 27.3 | 25.1 | |
Goodwill | 587.1 | 496.9 | |
Identifiable intangibles, net of accumulated amortization of $167.1 and $169.3, respectively | 565.7 | 520.9 | |
Other non-current assets | 15.3 | 47.8 | |
Total assets | 2,064.5 | 1,953.4 | |
Current liabilities: | |||
Notes payable | 63.7 | 0 | |
Current portion of long-term debt | 4.8 | 0 | |
Accounts payable | 135.1 | 147.6 | |
Accrued compensation | 42.8 | 34 | |
Accrued customer program liabilities | 94 | 108.7 | |
Accrued interest | 1.3 | 6.3 | |
Other current liabilities | 64.7 | 58.7 | |
Total current liabilities | 406.4 | 355.3 | |
Long-term debt, net of debt issuance costs of $7.3 and $8.5, respectively | 627.7 | 720.5 | |
Deferred income taxes | 146.7 | 142.3 | |
Pension and post-retirement benefit obligations | 98 | 89.1 | |
Other non-current liabilities | 77 | 65 | |
Total liabilities | 1,355.8 | 1,372.2 | |
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; 110,086,283 and 107,129,051 shares issued and 107,906,644 and 105,640,003 outstanding, respectively | 1.1 | 1.1 | |
Treasury stock, 2,179,639 and 1,489,048 shares, respectively | (17) | (11.8) | |
Paid-in capital | 2,015.7 | 1,988.3 | |
Accumulated other comprehensive loss | (419.4) | (429.2) | |
Accumulated deficit | (871.7) | (967.2) | |
Total stockholders' equity | 708.7 | 581.2 | |
Total liabilities and stockholders' equity | $ 2,064.5 | $ 1,953.4 | |
[1] | Net property, plant and equipment as of December 31, 2016 and 2015 contained $34.7 million and $40.7 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $7.0 million, $6.1 million and $7.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable and returns | $ 15.7 | $ 18.7 |
Amortizable intangible assets, accumulated amortization | 167.1 | 169.3 |
Debt Issuance cost, unamortized | $ 7.3 | $ 8.5 |
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 | 110,086,283 | 107,129,051 |
Common stock, shares outstanding | 107,906,644 | 105,640,003 |
Treasury stock, shares | 2,179,639 | 1,489,048 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net sales | $ 1,557.1 | $ 1,510.4 | $ 1,689.2 | |
Cost of products sold | 1,042 | 1,032 | 1,159.3 | |
Gross profit | 515.1 | 478.4 | 529.9 | |
Operating costs and expenses: | ||||
Advertising, selling, general and administrative expenses | 320.8 | 295.7 | 328.6 | |
Amortization of intangibles | 21.6 | 19.6 | 22.2 | |
Restructuring charges (credits) | 5.4 | (0.4) | 5.5 | |
Total operating costs and expenses | 347.8 | 314.9 | 356.3 | |
Operating income | [1] | 167.3 | 163.5 | 173.6 |
Non-operating expense (income): | ||||
Interest expense | 49.3 | 44.5 | 49.5 | |
Interest income | (6.4) | (6.6) | (5.6) | |
Equity in earnings of joint venture | (2.1) | (7.9) | (8.1) | |
Other expense, net | 1.4 | 2.1 | 0.8 | |
Income before income tax | 125.1 | 131.4 | 137 | |
Income tax expense | 29.6 | 45.5 | 45.4 | |
Net income | $ 95.5 | $ 85.9 | $ 91.6 | |
Basic income per share: | ||||
Basic income per share | $ 0.89 | $ 0.79 | $ 0.81 | |
Diluted income per share: | ||||
Diluted income per share | $ 0.87 | $ 0.78 | $ 0.79 | |
Weighted average number of shares outstanding: | ||||
Basic | 107 | 108.8 | 113.7 | |
Diluted | 109.2 | 110.6 | 116.3 | |
[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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 95.5 | $ 85.9 | $ 91.6 |
Other Comprehensive Income (loss), Derivatives Qualifying as Hedges, Net of Tax | |||
Unrealized gain (loss) on derivative instruments, net of tax (expense) benefit of $(0.7), $0.8, and $(1.0), respectively | 1.7 | (1.9) | 2.4 |
Foreign currency translation: | |||
Foreign currency translation adjustments | 16.8 | (136.7) | (76.4) |
Other Comprehensive Income (loss) Pension and Other Post-retirement Plans Adjustment Net Of Tax | |||
Recognition of deferred pension and other post-retirement items, net of tax benefit of $0.6, $0.1, and $15.9, respectively | (8.7) | 2 | (33) |
Other comprehensive income (loss), net of tax | 9.8 | (136.6) | (107) |
Comprehensive income (loss) | $ 105.3 | $ (50.7) | $ (15.4) |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Income (Loss) Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (0.7) | $ 0.8 | $ (1) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ 0.6 | $ 0.1 | $ 15.9 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 95.5 | $ 85.9 | $ 91.6 |
Gain on revaluation of previously held joint-venture equity interest | (28.9) | 0 | 0 |
Amortization of inventory step-up | 0.4 | 0 | 0 |
(Loss) gain on disposal of assets | (0.3) | 0.1 | 0.8 |
Deferred income tax expense | 6 | 27.4 | 20.6 |
Depreciation | 30.4 | 32.4 | 35.3 |
Amortization of debt issuance costs | 3.8 | 3.5 | 4.6 |
Amortization of intangibles | 21.6 | 19.6 | 22.2 |
Stock-based compensation | 19.4 | 16 | 15.7 |
Loss on debt extinguishment | 29.9 | 1.9 | 0 |
Other non-cash charges | 0.1 | 0 | 0.7 |
Equity in earnings of joint-venture, net of dividends received | (1.6) | (3.8) | (2.4) |
Changes in balance sheet items: | |||
Accounts receivable | 13.4 | (3.9) | 20.4 |
Inventories | 16.7 | 9.8 | 11.6 |
Other assets | 5.5 | 1.2 | (6.1) |
Accounts payable | (19.3) | (2.6) | (10.1) |
Accrued expenses and other liabilities | (31.2) | (19.2) | (28.9) |
Accrued income taxes | 4.5 | 2.9 | (4.3) |
Net cash provided by operating activities | 165.9 | 171.2 | 171.7 |
Investing activities | |||
Additions to property, plant and equipment | (18.5) | (27.6) | (29.6) |
Proceeds from the disposition of assets | 0.7 | 2.8 | 3.8 |
Cost of acquisitions, net of cash acquired | (88.8) | 0 | 0 |
Other | 0.2 | 0.2 | 0 |
Net cash used by investing activities | (106.4) | (24.6) | (25.8) |
Financing activities | |||
Proceeds from long-term borrowings | 587.4 | 300 | 0 |
Repayments of long-term debt | (685.1) | (370.1) | (121.1) |
Borrowings (repayments) of notes payable, net | 51.5 | (0.8) | 1 |
Payment for debt premium | (25) | 0 | 0 |
Payments for debt issuance costs | (6.9) | (1.7) | (0.3) |
Repurchases of common stock | 0 | (60) | (19.4) |
Payments related to tax withholding for share-based compensation | (5.1) | (5.9) | (2.5) |
Excess tax benefit from stock-based compensation | 1.2 | 0 | 0 |
Proceeds from the exercise of stock options | 6.8 | 0.7 | 0.3 |
Net cash used by financing activities | (75.2) | (137.8) | (142) |
Effect of foreign exchange rate changes on cash and cash equivalents | 3.2 | (6.6) | (4.2) |
Net (decrease) increase in cash and cash equivalents | (12.5) | 2.2 | (0.3) |
Cash and cash equivalents | |||
Beginning of the period | 55.4 | 53.2 | 53.5 |
End of the period | 42.9 | 55.4 | 53.2 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 50.1 | 41 | 45.1 |
Income taxes | $ 16.9 | $ 16.9 | $ 28.9 |
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, 2013 | $ 702.3 | $ 1.1 | $ 2,035 | $ (185.6) | $ (3.5) | $ (1,144.7) |
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) |
Balance at start of period (in shares) at Dec. 31, 2013 | 113,663,856 | 114,056,416 | 392,560 | |||
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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 95.5 | $ 0 | 0 | 0 | $ 0 | 95.5 |
Income (loss) on derivative financial instrument, net of tax | 1.7 | 0 | 0 | 1.7 | 0 | 0 |
Translation impact | 16.8 | 0 | 0 | 16.8 | 0 | 0 |
Pension and post-retirement adjustment, net of tax | (8.7) | 0 | 0 | (8.7) | 0 | 0 |
Stock-based compensation | 19.4 | 0 | 19.4 | 0 | 0 | 0 |
Common stock issued, net of shares withheld for employee taxes | 1.6 | 0 | 6.8 | 0 | (5.2) | 0 |
Excess tax benefit on stock-based compensation | 1.2 | 0 | 1.2 | 0 | 0 | 0 |
Balance at end of period at Dec. 31, 2016 | $ 708.7 | $ 1.1 | $ 2,015.7 | $ (419.4) | $ (17) | $ (871.7) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 2,266,641 | 2,957,232 | 690,591 | |||
Common stock repurchases | 0 | |||||
Balance at end of period (in shares) at Dec. 31, 2016 | 107,906,644 | 110,086,283 | 2,179,639 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 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 on Form 10-K. 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 had an equity investment in the following joint-venture: Pelikan Artline Pty Ltd - 50% ownership until May 2, 2016, at which time the company owned 100% . Our share of earnings from equity investments is included on the line entitled " Equity in earnings of joint-venture " in the Consolidated Statements of Income . On May 2, 2016, the Company completed the acquisition of Australia Stationery Industries, Inc. (the "PA Acquisition"), which indirectly owned the 50% of the Pelikan Artline joint-venture and the issued capital stock of Pelikan Artline Pty Limited (collectively, the "Pelikan Artline") that was not already owned by the Company. Prior to the PA Acquisition, the Pelikan Artline joint-venture was accounted for under the equity method. Accordingly, the results of the Pelikan Artline joint-venture are included in the Company's condensed consolidated financial statements and will be reported in the ACCO Brands International segment from the date of the PA Acquisition, May 2, 2016. See " Note 3. Acquisition " for details on the PA Acquisition and see " Note 17. Joint-Venture Investment " for details on the joint-venture. The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP") requires management to make certain estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 products, 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, Australia, Canada, Brazil 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 supply some of our products directly to large commercial and industrial end-users, and provide business machine maintenance and certain repair services. Additionally, we supply some similar private label products. Our academic products include notebooks, folders, decorative calendars and stationery products. We distribute our academic products primarily through mass merchandisers and other retailers, such as grocery, drug and office superstores, as well as on-line retailers. We also distribute to small independent retailers in emerging markets and supply some private label academic products. Our calendar products are sold through all the same channels where we sell business or academic 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 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 our 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 $0.1 million , $1.3 million and $0.9 million for the years ended December 31, 2016 , 2015 and 2014 , 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, on a qualitative basis, as allowed by GAAP, for the majority of indefinite-lived trade names in the second quarter of 2016 and concluded that no impairment existed. For two of our indefinite-lived trade names that are not substantially above their carrying values, Mead ® and Hilroy ® , we performed quantitative tests (Step 1) in the second quarter of 2016. The following long-term growth rates and discount rates were used, 1.5% and 10.0% for Mead ® , and 1.5% and 10.5% for Hilroy ® , respectively. We concluded that neither Mead ® nor Hilroy ® were impaired. In the fourth quarter of 2015, we performed a quantitative test, as we identified the recession in Brazil as a triggering event related to our trade name, Tilibra ® 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 Tilibra ® included a long-term growth rate of 6.5% and a 14.5% discount rate. In 2016, the Tilibra ® trade name slightly outperformed the forecast used in the fourth quarter of 2015 quantitative test; however, the economic conditions in Brazil could deteriorate further triggering additional future reviews. The fair values of Mead ® , Tilibra ® and Hilroy ® trade names are less than 30% above their carrying values. As of December 31, 2016 the carrying values of those trade names were as follows: Mead ® ( $113.3 million ), Tilibra ® ( $63.0 million ) and Hilroy ® ( $11.8 million ). Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition 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 2016 , on a qualitative basis, and concluded that it was not more likely than not that the fair value of any reporting unit is less than its 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. 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. 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. 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 $110.1 million , $120.9 million and $130.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " above, and are principally expensed as incurred. 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 $21.0 million , $20.0 million and $20.2 million for the years ended December 31, 2016 , 2015 and 2014 , 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 (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes substantially all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued the following amendments to ASU 2014-09, which have the same effective date and transition date of January 1, 2018: • In August 2015 the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. • In March 2016 the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. • In April 2016 the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. • In May 2016 the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. • In December 2016 the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples There are two methods of adoption allowed, either a "full" retrospective adoption or a "modified" retrospective adoption. The Company has not yet decided which implementation method it will adopt. The Company has hired outside consultants to help in the process of evaluating the potential impact of ASU 2014-09, but it does not expect the adoption of ASU 2014-09 will have a material impact on the Company’s consolidated financial statements in any one annual period. The Company will adopt ASU 2014-09 effective with its 2018 fiscal year. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This new standard simplifies the accounting for employee share-based payments and involves several aspects of the accounting for share-based transactions, including the potential timing of expenses, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has determined that ASU 2016-09 will have an immaterial effect on the Company's consolidated financial statements and the Company will adopt ASU 2016-09 effective with its 2017 fiscal year. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This new standard will require the recognition, on the balance sheet, of most leases as lease assets (right-of-use assets) and lease liabilities by lessees for those leases classified as operating leases under current GAAP. This new standard also includes increased disclosures to meet the objective of enabling users of financial statements to understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and adoption of ASU 2016-02 is to be done on a modified retrospective basis. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on the Company’s consolidated financial statements and it currently expects that most of its operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets upon the adoption of ASU 2016-02. It is expected that these changes will be material to the Company's consolidated financial statements. The Company will adopt ASU 2016-02 effective with its 2019 fiscal year. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This new standard 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 or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company has determined that ASU 2015-11 will have an immaterial effect on the Company's consolidated financial statements and the Company will adopt ASU 2015-11 effective with its 2017 fiscal year. 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. Recently Adopted Accounting Standards In August 2016 the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard clarifies certain aspects of the statement of cash flows, including the classification of debt prepayment or debt extinguishment costs or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. ASU 2016-15 also clarifies that an entity should determine each separately identifiable source of use within the cash receipts and payments based on the nature of the underlying cash flows. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company has elected to early adopt ASU 2016-15. The only material effect has been that " Net cash provided by operating activities " has been increased by $25.0 million and our " Net cash used by financing activities " has been increased by $25.0 million , due to a $25.0 million "make-whole" call premium in association with the early satisfaction and discharge of our $500 million principal amount of outstanding Senior Unsecured Notes due April 2020. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments in ASU 2015-07 remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 is effective for annual reporting periods beginning after December 15, 2015. The guidance is required to be applied retrospectively to all periods presented. The Company adopted this new guidance and it did not have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisition On May 2, 2016, the Company completed the PA Acquisition, which included the remaining 50% interest in the former Pelikan Artline joint-venture, which it did not already own. Prior to the PA Acquisition, the Company's investment in the Pelikan Artline joint-venture was accounted for under the equity method. Pelikan Artline's product categories include writing instruments, notebooks, binding and lamination, visual communication, cleaning and janitorial supplies, as well as general stationery. Its industry-leading brands include Artline ® , Quartet ®, GBC ® , Spirax ® and Texta ® , among others. In the PA Acquisition, ACCO Brands Australia Pty Limited and Bigadale Pty Limited (collectively, ''ACCO Australia"), two wholly-owned indirect subsidiaries of the Company, entered into a Share Sale Agreement (the "Agreement") with Andrew Kaldor, Cherington Investments Pty Ltd, Freiburg Nominees Proprietary Limited, Enora Pty Ltd and Bruce Haynes and certain Guarantors named therein (collectively, the "Seller Parties") to purchase directly or indirectly 100% of the capital stock of Australia Stationery Industries, Inc. which indirectly owned the 50% of the Pelikan Artline joint-venture and the issued capital stock of Pelikan Artline Pty Limited (collectively "Pelikan Artline") that was not already owned by ACCO Brands Australia Pty Limited. The purchase price was $103.7 million , net of working capital adjustments, and was $88.8 million , net of cash acquired. Following completion of the PA Acquisition, ACCO Australia owns, directly and indirectly, 100% of Pelikan Artline. In addition to representations, warranties and covenants, the Agreement contains indemnification obligations and certain non-competition and non-solicitation covenants made by the Seller Parties in favor of ACCO Australia. A portion of the purchase price was allocated to fund the redemption of a 19.83% minority interest from a shareholder of a subsidiary of Pelikan Artline (the "Minority Interest Redemption"), which occurred shortly following the closing of the PA Acquisition. Additionally, approximately 10% of the purchase price after deducting the Minority Interest Redemption is held in escrow as security with respect to post-closing warranty, tax claims and indemnification obligations. The Company financed the PA Acquisition through increased borrowings under its existing credit facility. See " Note 4. Long-term Debt and Short-term Borrowings " for details on these additional borrowings. For accounting purposes, the Company is the acquiring enterprise. The PA Acquisition is being accounted for as a purchase business combination and Pelikan Artline's results are included in the Company’s consolidated financial statements from the date of the PA Acquisition, May 2, 2016. The Company’s previously held equity interest in the Pelikan Artline joint-venture was remeasured to fair value at the date the controlling interest was acquired. The fair value of the previously held equity interest in Pelikan Artline joint-venture was determined by applying the income approach and using significant inputs that market participants would consider, including: revenue growth rates, operating margins, a discount rate and an adjustment for lack of control. The $28.9 million excess of the fair value of the previously held equity interest when compared to the carrying value was recognized as a gain in " Other expense, net ” in the income statement. The calculation of consideration given in the PA Acquisition is described in the following table. (in millions of dollars) At May 2, 2016 Purchase price, net of working capital adjustments $ 103.7 Fair value of previously held equity interest 69.3 Consideration for Pelikan Artline $ 173.0 The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of the PA Acquisition. (in millions of dollars) At May 2, 2016 Calculation of Goodwill: Purchase price, net of working capital adjustments $ 103.7 Fair value of previously held equity interest 69.3 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 21.7 Deferred tax liabilities 0.2 Debt 24.7 Other non-current liabilities 1.4 Fair value of liabilities assumed $ 48.0 Less fair value of assets acquired: Cash acquired 14.9 Accounts receivable 27.0 Inventory 24.1 Property and equipment 2.2 Identifiable intangibles 58.0 Deferred tax assets 5.7 Other assets 8.6 Fair value of assets acquired $ 140.5 Goodwill $ 80.5 We have finalized our fair value estimate of assets acquired and liabilities assumed as of the acquisition date. No additional adjustments to the goodwill related to the PA Acquisition will be recognized. The excess of the purchase price over the fair value of net assets acquired has been allocated to goodwill. The goodwill of $80.5 million is primarily attributable to synergies expected to be realized from facility integration, headcount reduction and other operational streamlining activities, and from the existence of an assembled workforce. Transaction costs related to the PA Acquisition of $1.3 million were incurred during the twelve months ended December 31, 2016 , and $0.6 million were incurred during 2015 and were reported as advertising, selling, general and administrative expenses. Unaudited Pro Forma Consolidated Results The accounting literature establishes guidelines regarding, and requires the presentation of, the following unaudited pro forma information. Therefore, the unaudited pro forma information presented below is not intended to represent, nor do we believe it is indicative of, the consolidated results of operations of the Company that would have been reported had the PA Acquisition been completed on January 1, 2015. Furthermore, the unaudited pro forma information does not give effect to the anticipated synergies or other anticipated benefits of the PA Acquisition. Had the PA Acquisition occurred on January 1, 2015, unaudited pro forma consolidated results for the twelve month period ending December 31, 2016 and 2015 would have been as follows: Unaudited Twelve Months Ended December 31, (in millions of dollar, except per share data) 2016 2015 Net sales $ 1,593.1 $ 1,627.6 Net income 65.3 119.4 Net income per common share (diluted) $ 0.60 $ 1.08 The pro forma amounts are based on the Company's historical results of operations and the historical results of operations for the acquired Pelikan Artline business, which have been translated at the average foreign exchange rates for the presented periods. The pro forma results of operations have been adjusted for amortization of finite-lived intangibles, and other charges related to acquisition accounting. The pro forma results of operations for the twelve months ended December 31, 2015 have also been adjusted to include transaction costs related to the PA Acquisition of $1.9 million , amortization of the purchase accounting step-up in inventory cost of $0.3 million and financing related costs. These 2015 adjustments include the $28.9 million gain ( $32.2 million based on 2015 exchange rates) associated with the PA Acquisition due to the revaluation of the Company's previously held equity interest in the Pelikan Artline joint-venture. All adjustments were made on a net of income tax basis, where applicable. In addition, the equity in earnings of the Pelikan Artline joint-venture that were previously included in the Company's results has been excluded. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , all of the amounts outstanding under the 2015 Term Loan A bore interest at a Eurodollar rate plus the applicable rate of 1.50% and the amounts drawn under the 2015 Revolving Facility bore interest at either a Eurodollar rate plus 1.50% or a Base Rate plus the applicable rate of 0.50% . Covenants The 2015 Credit Agreement contained 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 2015 Credit Agreement , the Company was 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 2015 Credit Agreement . The 2015 Credit Agreement also required the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2015 Credit Agreement ) 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, 2016 , we were in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2015 Credit Agreement were 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 New 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 New 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 New 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. Finance of PA Acquisition The PA Acquisition, which closed in the second quarter of 2016, was financed through a borrowing of A$100.0 million (US $76.6 million based on May 2, 2016 exchange rates) by ACCO Australia in the form of an incremental Australian Dollar Senior Secured Term A loan under the 2015 Credit Agreement along with additional borrowings of A$152.0 million (US $116.4 million based on May 2, 2016 exchange rates) under the 2015 Revolving Facility . The Company used some of the proceeds from the borrowings to reduce the U.S. Dollar Senior Secured Term Loan A by $78.0 million and to pay off the debt assumed in the PA Acquisition of A$32.1 million (US $24.5 million based on May 2, 2016 exchange rates)." id="sjs-B4">4. 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, 2016 and 2015 : (in millions of dollars) 2016 2015 U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015) (1) $ 81.0 $ 229.0 Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) (1) 70.3 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) (1) 63.7 — Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) 87.9 — Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 — Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) — 500.0 Other borrowings 0.6 — Total debt 703.5 729.0 Less: Current portion 68.5 — Debt issuance costs, unamortized 7.3 8.5 Long-term debt, net $ 627.7 $ 720.5 (1) In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement dated January 27, 2017. See also " Note 20. Subsequent Events " to the consolidated financial statements. Senior Unsecured Notes due December 2024 On December 22, 2016, the Company completed a private offering of $400.0 million in aggregate principal amount of 5.25% senior notes due December 2024 (the "New Notes"), which we issued under an indenture, dated December 22, 2016 (the "New Indenture"), among the Company, as issuer, the guarantors named therein (the "Guarantors") and Wells Fargo Bank, National Association, as trustee (the "Trustee"). Pursuant to the New Indenture, the Company will pay interest on the New Notes semiannually on June 15 and December 15 of each year, beginning on June 15, 2017. The New Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of the Company’s existing and future U.S. subsidiaries, other than certain excluded subsidiaries. The New Indenture contains covenants that limit the ability of the Company and its restricted subsidiaries’ to, among other things: (i) incur additional indebtedness or issue disqualified stock or, in the case of the Company’s restricted subsidiaries, preferred stock; (ii) create liens; (iii) pay dividends, make certain investments or make other restricted payments; (iv) sell certain assets or merge with or into other companies; (v) enter into transactions with affiliates; and (vi) allow limitations on any restricted subsidiary’s ability to pay dividends, loans, or assets to the Company or other restricted subsidiaries. These covenants are subject to a number of important limitations and exceptions. The New Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and accrued but unpaid interest on all the then outstanding Notes to be immediately due and payable. In addition, effective December 22, 2016, the Company irrevocably deposited with the trustee of its 6.75% Senior Notes due 2020 (the "Existing Notes") an amount necessary to pay the aggregate redemption price for the Existing Notes, and satisfied and discharged all its obligations related to the Existing Notes indenture. The Company borrowed $73.9 million under its revolving credit facility and applied the funds, together with the net proceeds from the issuance of the New Notes and cash on hand, toward the payment of the redemption price for all of the Existing Notes. The aggregate redemption price of $531.5 million consisted of principal due and payable on the Existing Notes, a "make-whole" call premium of $25.0 million (included in " Other expense, net "), and accrued and unpaid interest of $6.5 million (included in " Interest expense "). Also included in " Other expense, net " is a $4.9 million charge for the write-off of debt issuance costs associated with the Existing Notes. Additionally, we incurred and capitalized approximately $6.1 million in bank, legal and other fees associated with the issuance of the New Notes. During the third quarter of 2016 the Company paid down $70.0 million on the U.S. Dollar Senior Secured Term Loan A. Second Amended and Restated Credit Agreement During 2016, the Company was party to a Second Amended and Restated Credit Agreement, dated April 28, 2015 (as subsequently amended the " 2015 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 2015 Credit Agreement provided for a $600.0 million five -year senior secured credit facility, which consisted of a $300.0 million revolving credit facility (the " 2015 Revolving Facility ") and a $300.0 million term loan (the " 2015 Term Loan A "). As of December 31, 2016 , there were $151.6 million in borrowings under the 2015 Revolving Facility . The amount available for borrowings was $140.6 million (allowing for $7.8 million of letters of credit outstanding on that date). Effective January 27, 2017, the Company entered into a new credit agreement that replaced the facilities under the 2015 Credit Agreement . See " Note 20. Subsequent Events ." Amortization Amounts under the 2015 Revolving Facility were non-amortizing. Beginning September 30, 2015, the outstanding principal amount under the 2015 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 2015 Credit Agreement bore 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 applied 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 2015 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, 2016 , all of the amounts outstanding under the 2015 Term Loan A bore interest at a Eurodollar rate plus the applicable rate of 1.50% and the amounts drawn under the 2015 Revolving Facility bore interest at either a Eurodollar rate plus 1.50% or a Base Rate plus the applicable rate of 0.50% . Covenants The 2015 Credit Agreement contained 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 2015 Credit Agreement , the Company was 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 2015 Credit Agreement . The 2015 Credit Agreement also required the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2015 Credit Agreement ) 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, 2016 , we were in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2015 Credit Agreement were 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 New 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 New 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 New 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. Finance of PA Acquisition The PA Acquisition, which closed in the second quarter of 2016, was financed through a borrowing of A$100.0 million (US $76.6 million based on May 2, 2016 exchange rates) by ACCO Australia in the form of an incremental Australian Dollar Senior Secured Term A loan under the 2015 Credit Agreement along with additional borrowings of A$152.0 million (US $116.4 million based on May 2, 2016 exchange rates) under the 2015 Revolving Facility . The Company used some of the proceeds from the borrowings to reduce the U.S. Dollar Senior Secured Term Loan A by $78.0 million and to pay off the debt assumed in the PA Acquisition of A$32.1 million (US $24.5 million based on May 2, 2016 exchange rates). |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Retiree Benefits | 5. 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. The majority 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. As of December 31, 2016, all of our Canadian pension plans are now frozen. 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) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 198.7 $ 212.9 $ 347.1 $ 391.8 $ 8.1 $ 12.2 Service cost 1.3 1.6 0.8 0.9 0.1 0.1 Interest cost 7.3 8.7 10.3 12.9 0.2 0.4 Actuarial loss (gain) 3.1 (14.4 ) 55.6 (19.0 ) (0.2 ) (3.4 ) Participants’ contributions — — 0.1 0.2 0.1 0.1 Benefits paid (10.3 ) (10.1 ) (13.0 ) (15.9 ) (0.5 ) (0.5 ) Curtailment gain — — (0.6 ) — (0.8 ) — Plan amendments — — — — — (0.2 ) Foreign exchange rate changes — — (55.2 ) (23.8 ) (0.3 ) (0.6 ) Projected benefit obligation at end of year 200.1 198.7 345.1 347.1 6.7 8.1 Change in plan assets Fair value of plan assets at beginning of year 145.8 163.9 318.9 351.2 — — Actual return on plan assets 14.1 (9.3 ) 41.8 (0.8 ) — — Employer contributions 0.9 1.3 4.9 5.4 0.4 0.4 Participants’ contributions — — 0.1 0.2 0.1 0.1 Benefits paid (10.3 ) (10.1 ) (13.0 ) (15.9 ) (0.5 ) (0.5 ) Foreign exchange rate changes — — (50.0 ) (21.2 ) — — Fair value of plan assets at end of year 150.5 145.8 302.7 318.9 — — Funded status (Fair value of plan assets less PBO) $ (49.6 ) $ (52.9 ) $ (42.4 ) $ (28.2 ) $ (6.7 ) $ (8.1 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.3 $ 0.9 $ — $ — Other current liabilities — — 0.4 0.4 0.6 0.6 Pension and post-retirement benefit obligations (1) 49.6 52.9 42.3 28.7 6.1 7.5 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 54.2 55.1 83.7 75.0 (3.5 ) (4.2 ) Unrecognized prior service cost (credit) 2.0 2.0 (0.2 ) (0.3 ) (0.2 ) (0.2 ) (1) Pension and post-retirement obligations of $98.0 million as of December 31, 2016 , increased from $89.1 million as of December 31, 2015 , primarily due to lower discount rates compared to prior year assumptions for the U.K. plan. 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, 2017 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 2.0 $ 2.9 $ (0.4 ) Prior service cost 0.4 — — $ 2.4 $ 2.9 $ (0.4 ) All of our plans have projected benefit obligations in excess of plan assets, except for one of our Canadian plans. The accumulated benefit obligation for all pension plans was $536.8 million and $533.6 million at December 31, 2016 and 2015 , 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) 2016 2015 2016 2015 Projected benefit obligation $ 200.1 $ 198.7 $ 326.9 $ 334.1 Accumulated benefit obligation 198.3 196.1 320.4 324.7 Fair value of plan assets 150.5 145.8 284.2 305.0 The components of net periodic benefit (income) cost for pension and post-retirement plans for the years ended December 31, 2016 , 2015 , and 2014 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 1.3 $ 1.6 $ 2.1 $ 0.8 $ 0.9 $ 0.8 $ 0.1 $ 0.1 $ 0.2 Interest cost 7.3 8.7 8.6 10.3 12.9 15.7 0.2 0.4 0.5 Expected return on plan assets (11.9 ) (12.2 ) (12.0 ) (17.6 ) (21.9 ) (22.8 ) — — — Amortization of net loss (gain) 1.8 2.1 5.1 2.3 2.4 1.9 (0.4 ) (0.4 ) (1.1 ) Amortization of prior service cost (credit) 0.4 0.4 0.4 — — — — (0.3 ) — Curtailment gain — — — — — — (0.6 ) — — Settlement gain — — — — — — — (0.5 ) (0.1 ) Net periodic benefit (income) cost $ (1.1 ) $ 0.6 $ 4.2 $ (4.2 ) $ (5.7 ) $ (4.4 ) $ (0.7 ) $ (0.7 ) $ (0.5 ) 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. Other changes in plan assets and benefit obligations that were recognized in other comprehensive income (loss) during the years ended December 31, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Current year actuarial loss (gain) $ 0.9 $ 7.1 $ 35.4 $ 27.9 $ 3.8 $ 27.3 $ (1.0 ) $ (3.4 ) $ (0.3 ) Amortization of actuarial (loss) gain (1.8 ) (2.1 ) (5.1 ) (2.3 ) (2.4 ) (1.9 ) 1.0 0.9 1.1 Current year prior service (credit) cost — — — — — (0.2 ) — (0.2 ) (0.3 ) Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.4 ) — — — — 0.3 — Foreign exchange rate changes — — — (15.5 ) (5.6 ) (6.8 ) 0.5 0.1 0.1 Total recognized in other comprehensive income (loss) $ (1.3 ) $ 4.6 $ 29.9 $ 10.1 $ (4.2 ) $ 18.4 $ 0.5 $ (2.3 ) $ 0.6 Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) $ (2.4 ) $ 5.2 $ 34.1 $ 5.9 $ (9.9 ) $ 14.0 $ (0.2 ) $ (3.0 ) $ 0.1 Assumptions The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.3 % 4.6 % 4.2 % 2.7 % 3.7 % 3.4 % 3.4 % 3.9 % 3.7 % Rate of compensation increase N/A N/A N/A 3.1 % 3.0 % 3.3 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.6 % 4.2 % 5.0 % 3.7 % 3.4 % 4.3 % 3.9 % 3.7 % 4.4 % Expected long-term rate of return 7.8 % 8.0 % 8.2 % 6.0 % 6.5 % 6.8 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 3.0 % 3.3 % 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, 2016 , 2015 , and 2014 were as follows: Post-retirement 2016 2015 2014 Health care cost trend rate assumed for next year 8 % 7 % 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 2025 2024 2023 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 $ — $ — Increase (decrease) on post-retirement benefit obligation 0.5 (0.4 ) 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, 2016 and 2015 were as follows: 2016 2015 U.S. International U.S. International Asset category Equity securities 68 % 33 % 61 % 45 % Fixed income 25 51 31 39 Real estate — 3 — 4 Other (2) 7 13 8 12 Total 100 % 100 % 100 % 100 % (2) 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, 2016 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Mutual funds $ 89.3 $ — $ — $ 89.3 Exchange traded funds 13.5 — — 13.5 Common collective trust funds — 7.9 — 7.9 Corporate debt securities — 16.3 — 16.3 Asset-backed securities — 3.4 — 3.4 Government mortgage-backed securities — 5.4 — 5.4 Collateralized mortgage obligations, mortgage backed securities, and other — 5.2 — 5.2 Investments measured at net asset value (3) Multi-strategy hedge funds 9.5 Total $ 102.8 $ 38.2 $ — $ 150.5 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 Government mortgage-backed securities — 7.3 — 7.3 Collateralized mortgage obligations, mortgage backed securities, and other — 6.8 — 6.8 Investments measured at net asset value (3) Multi-strategy hedge funds 9.2 Total $ 89.5 $ 47.1 $ — $ 145.8 Mutual funds, common stocks and exchange traded funds: 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). International Pension Plans Assets The fair value measurements of our international pension plans assets by asset category as of December 31, 2016 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 0.5 $ — $ — $ 0.5 Equity securities 99.2 — — 99.2 Corporate debt securities — 145.3 — 145.3 Multi-strategy hedge funds — 20.2 — 20.2 Insurance contracts — 17.8 — 17.8 Government debt securities — 10.1 — 10.1 Investments measured at net asset value (3) Real estate 9.6 Total $ 99.7 $ 193.4 $ — $ 302.7 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 Government debt securities — 3.2 — 3.2 Investments measured at net asset value (3) Real estate 11.3 Total $ 143.8 $ 163.8 $ — $ 318.9 (3) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the table that presents our defined benefit pension and post-retirement plans funded status. 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). 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 $6.2 million to our pension and post-retirement plans in 2016 and expect to contribute $10.7 million in 2017 . 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 2017 $ 23.0 $ 0.6 2018 23.7 0.6 2019 24.0 0.6 2020 24.7 0.5 2021 25.1 0.5 Years 2022 - 2026 134.4 2.3 We also sponsor a number of defined contribution plans. Contributions are determined under various formulas. Costs related to such plans amounted to $11.3 million , $9.8 million and $8.6 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The increase of $1.5 million in defined contribution plan costs in 2016 compared to 2015 is due to the PA Acquisition and additional matching contributions in the U.S. The $1.2 million increase in defined contribution plan costs in 2015 compared to 2014 was due to additional contributions 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 and declining 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 2016 and 2015 is for the plan’s years ended December 31, 2015 and 2014 , 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 2016 2015 2016 2015 2014 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.3 $ 0.3 $ 0.4 Yes 6/30/2017 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. 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, 2016 , 2015 and 2014 . (in millions of dollars) 2016 2015 2014 Advertising, selling, general and administrative expense $ 19.4 $ 16.0 $ 15.7 Loss before income tax (19.4 ) (16.0 ) (15.7 ) Income tax benefit (7.0 ) (5.7 ) (5.7 ) Net (loss) $ (12.4 ) $ (10.3 ) $ (10.0 ) There was no capitalization of stock-based compensation expense. Stock-based compensation expense by award type for the years ended December 31, 2016 , 2015 and 2014 was as follows: (in millions of dollars) 2016 2015 2014 Stock option compensation expense $ 2.9 $ 3.9 $ 3.7 RSU compensation expense 4.5 4.7 6.6 PSU compensation expense 12.0 7.4 5.4 Total stock-based compensation expense $ 19.4 $ 16.0 $ 15.7 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, 2016 generally vest ratably over three years. During 2016 , we did not grant option or SSAR awards and in 2015 and 2014 , 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 and the weighted average assumptions as outlined in the following table: Year Ended December 31, 2015 2014 Weighted average expected lives 4.5 years 4.5 years Weighted average risk-free interest rate 1.47 % 1.33 % Weighted average expected volatility 46.5 % 52.2 % Expected dividend yield 0.0 % 0.0 % Weighted average grant date fair value $ 3.00 $ 2.69 Volatility was calculated using ACCO Brands' historic volatility. 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, 2016 are presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2015 5,583,531 $ 7.20 Exercised (1,359,515 ) $ 5.30 Lapsed (90,142 ) $ 7.35 Outstanding at December 31, 2016 4,133,874 $ 7.82 3.8 years $ 21.6 million Options vested or expected to vest 4,099,827 $ 7.83 3.8 years $ 21.4 million Exercisable shares at December 31, 2016 2,782,697 $ 8.20 3.2 years $ 13.5 million We received cash of $6.8 million , $0.7 million and $0.3 million from the exercise of stock options for the years ended December 31, 2016 , 2015 and 2014 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2016 and 2015 totaled $3.5 million and $0.7 million , respectively. For the year ended December 31, 2014 the aggregate intrinsic value of options exercised was not significant. The aggregate intrinsic value of SSARs exercised during the years ended December 31, 2016 , 2015 and 2014 totaled $2.9 million , $2.0 million and $3.6 million , respectively. As of December 31, 2016 there were no SSARs outstanding. The fair value of options vested during the years ended December 31, 2016 , 2015 and 2014 was $4.1 million , $3.8 million and $3.2 million , respectively. As of December 31, 2016 , we had unrecognized compensation expense related to stock options of $1.7 million , which will be recognized over a weighted-average period of 0.8 years. Stock Unit Awards RSUs vest over a pre-determined period of time, generally three years from the date of grant. Stock-based compensation expense for the years ended December 31, 2016 , 2015 and 2014 includes $0.9 million , $0.8 million and $0.8 million , respectively, of expense that consisted of shares of stock (included in RSU compensation expense) and 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 1,910,669 RSUs outstanding as of December 31, 2016 . All outstanding RSUs as of December 31, 2016 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 as of December 31, 2016 were 4,281,792 PSUs. All outstanding PSUs as of December 31, 2016 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 RSU and 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 2016 are presented below: Stock Weighted Outstanding at December 31, 2015 2,007,127 $ 7.11 Granted 516,739 $ 8.05 Vested and distributed (577,997 ) $ 7.56 Forfeited and cancelled (35,200 ) $ 6.88 Outstanding at December 31, 2016 1,910,669 $ 7.23 Vested and deferred at December 31, 2016 (1) 295,453 $ 8.51 (1) Included in outstanding at December 31, 2016 . Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. For the years ended December 31, 2015 and 2014 we granted 668,619 and 881,554 shares of RSUs, respectively. The weighted-average grant date fair value of our RSUs was $8.05 , $7.58 , and $6.12 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The fair value of RSUs that vested during the years ended December 31, 2016 , 2015 and 2014 was $5.2 million , $10.3 million and $3.2 million , respectively. As of December 31, 2016 , we have unrecognized compensation expense related to RSUs of $3.6 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 2016 are presented below: Stock Weighted Outstanding at December 31, 2015 3,197,735 $ 7.07 Granted 1,013,242 $ 7.65 Vested (1,072,692 ) $ 7.58 Forfeited and cancelled (58,959 ) $ 7.21 Other - increase due to performance of PSU's 1,202,466 $ 7.08 Outstanding at December 31, 2016 4,281,792 $ 7.09 For the years ended December 31, 2015 and 2014 we granted 1,017,702 and 1,316,867 shares of PSUs, respectively. For the years ended December 31, 2016 , 2015 and 2014 , 1,072,692 , 697,172 and 496,926 shares of PSUs vested, respectively. The weighted-average grant date fair value of our PSUs was $7.65 , $7.52 , and $6.14 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The fair value of PSUs that vested during the years ended December 31, 2016 , 2015 and 2014 was $8.1 million , $5.4 million and $4.4 million respectively. As of December 31, 2016 , we have unrecognized compensation expense related to PSUs of $10.1 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, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. 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) 2016 2015 Raw materials $ 30.3 $ 33.3 Work in process 3.0 2.6 Finished goods 176.7 167.7 Total inventories $ 210.0 $ 203.6 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, Plant and Equipment, Net The components of net property, plant and equipment were as follows: December 31, (in millions of dollars) 2016 2015 Land and improvements $ 18.9 $ 17.6 Buildings and improvements to leaseholds 119.1 120.0 Machinery and equipment 382.0 358.5 Construction in progress 8.0 30.0 528.0 526.1 Less: accumulated depreciation (329.6 ) (317.0 ) Property, plant and equipment, net (1) $ 198.4 $ 209.1 (1) Net property, plant and equipment as of December 31, 2016 and 2015 contained $34.7 million and $40.7 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $7.0 million , $6.1 million and $7.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangibles | 9. 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, 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 PA Acquisition — 80.5 — 80.5 Translation 1.5 8.2 — 9.7 Balance at December 31, 2016 $ 379.0 $ 201.3 $ 6.8 $ 587.1 Goodwill $ 509.9 $ 285.5 $ 6.8 $ 802.2 Accumulated impairment losses (130.9 ) (84.2 ) — (215.1 ) Balance at December 31, 2016 $ 379.0 $ 201.3 $ 6.8 $ 587.1 Goodwill has been recorded on our balance sheet related to the PA Acquisition and represents the excess of the cost of the PA Acquisition when compared to the fair value estimate of the net assets acquired on May 2, 2016 (the date of the PA Acquisition). See Note 3. Acquisition , for details on the calculation of the goodwill acquired in the PA Acquisition. 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 2016 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, on a qualitative basis, as allowed by GAAP, for the majority of indefinite-lived trade names in the second quarter of 2016 and concluded that no impairment exists. For two of our indefinite-lived trade names that are not substantially above their carrying values, Mead ® and Hilroy ® , we performed quantitative tests (Step 1) in the second quarter of 2016. The following long-term growth rates and discount rates were used, 1.5% and 10.0% for Mead ® , and 1.5% and 10.5% for Hilroy ® , respectively. We concluded that neither Mead ® nor Hilroy ® were impaired. In the fourth quarter of 2015, we performed a quantitative test, as we identified the recession in Brazil as a triggering event related to our trade name, Tilibra ® , 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 the Tilibra ® trade name included a long-term growth rate of 6.5% and a 14.5% discount rate. In 2016, the Tilibra ® trade name has over performed the forecast used in the fourth quarter of 2015 quantitative test; however, the economic conditions in Brazil could deteriorate further triggering additional future reviews. The fair values of the Mead ® , Tilibra ® and Hilroy ® trade names are less than 30% above their carrying values. As of December 31, 2016 , the carrying values of those trade names were as follows: Mead ® ( $113.3 million ), Tilibra ® ( $63.0 million ) and Hilroy ® ( $11.8 million ). The identifiable intangible assets of $58.0 million acquired in the PA Acquisition include amortizable customer relationships and trade names and were recorded at their estimated fair values. The values assigned were based on the estimated future discounted cash flows attributable to the assets. These future cash flows were estimated based on the historical cash flows and then adjusted for anticipated future changes, primarily expected changes in sales volume or price. Amortizable customer relationships and trade names are being amortized over lives ranging from 12 to 30 years from the PA Acquisition date of May 2, 2016. The customer relationships are being amortized on an accelerated basis. The allocations of the identifiable intangibles acquired in the PA Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Customer relationships $ 36.0 12 Years Trade names - amortizable 22.0 12-30 Years Total identifiable intangibles acquired $ 58.0 The gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 483.3 $ (44.5 ) (1) $ 438.8 $ 471.8 $ (44.5 ) (1) $ 427.3 Amortizable intangible assets: Trade names 121.2 (48.8 ) 72.4 122.6 (61.7 ) 60.9 Customer and contractual relationships 128.3 (73.8 ) 54.5 95.8 (63.1 ) 32.7 Subtotal 249.5 (122.6 ) 126.9 218.4 (124.8 ) 93.6 Total identifiable intangibles $ 732.8 $ (167.1 ) $ 565.7 $ 690.2 $ (169.3 ) $ 520.9 (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 $ 21.6 million , $ 19.6 million and $ 22.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions of dollars) 2017 2018 2019 2020 2021 Estimated amortization expense (2) $ 20.1 $ 17.5 $ 15.0 $ 12.4 $ 9.9 (2) 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, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 10. Restructuring During 2016, the Company initiated cost savings plans related to the consolidation and integration of the recently acquired Pelikan Artline business into the Company's already existing Australia and New Zealand business. Included in these plans are exit costs and liabilities associated with facility lease exits of $1.0 million and an IT contract termination of $0.7 million that were not recorded yet pursuant to GAAP rules. In addition, the Company initiated additional cost savings plans to further enhance its North America operations. During 2014, we initiated restructuring actions that 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. The remaining balance reported at December 31, 2015 has been substantially paid in 2016. For the years ended December 31, 2016 , 2015 and 2014 , we recorded restructuring charges (credits) of $5.4 million , $(0.4) million and $5.5 million , respectively. A summary of the activity in the restructuring accounts and a reconciliation of the liability for the year ended December 31, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 Provision Cash Balance at December 31, 2016 Employee termination costs $ 0.9 $ 5.2 $ (4.7 ) $ 1.4 Termination of lease agreements 0.1 0.2 (0.2 ) 0.1 Total restructuring liability $ 1.0 $ 5.4 $ (4.9 ) $ 1.5 Management expects the $1.4 million employee termination costs balance to be substantially paid within the next twelve months. 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 Provision/(Credits) Cash Non-cash Balance at December 31, 2015 Employee termination costs $ 7.8 $ (0.6 ) $ (6.0 ) $ (0.3 ) $ 0.9 Termination of lease agreements 0.6 0.2 (0.7 ) — 0.1 Total restructuring liability $ 8.4 $ (0.4 ) $ (6.7 ) $ (0.3 ) $ 1.0 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The components of income from continuing operations before income tax were as follows: (in millions of dollars) 2016 2015 2014 Domestic operations $ 33.9 $ 60.9 $ 43.5 Foreign operations 91.2 70.5 93.5 Total $ 125.1 $ 131.4 $ 137.0 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) 2016 2015 2014 Income tax at U.S. statutory rate of 35% $ 43.8 $ 46.0 $ 47.9 State, local and other tax, net of federal benefit 2.4 2.1 2.1 U.S. effect of foreign dividends and withholding taxes 4.6 3.9 7.4 Unrealized foreign currency expense (benefit) on intercompany debt 0.7 (0.7 ) (3.0 ) Realized foreign exchange net loss on intercompany loans (9.6 ) — — Revaluation of previously held equity interest (12.0 ) — — Foreign income taxed at a lower effective rate (4.6 ) (5.6 ) (8.6 ) Interest on Brazilian Tax Assessment 2.8 2.7 3.2 Expiration of tax credits 10.9 1.0 11.7 Decrease in valuation allowance (9.9 ) (1.3 ) (11.5 ) Other 0.5 (2.6 ) (3.8 ) Income taxes as reported $ 29.6 $ 45.5 $ 45.4 Effective tax rate 23.7 % 34.6 % 33.1 % For 2016 , we recorded income tax expense of $29.6 million on income before taxes of $125.1 million . The lower effective rate for 2016 of 23.7% is due to the following: 1) a tax benefit of $12.0 million on the previously held equity interest; due to no tax expense, under Australian tax law, on the $28.9 million gain arising from the PA Acquisition due to the revaluation of the Company's ownership interest to fair value and due to the release of a deferred tax liability related to a tax basis difference in the Pelikan Artline joint-venture assets, 2) a tax benefit of $9.6 million on a net foreign exchange loss on the repayment of intercompany loans, for which the pre-tax effect is recorded in equity and 3) earnings from foreign jurisdictions which are taxed at a lower rate. In addition, in 2016 , the Foreign Tax Credit Carryover from 2007 of $10.9 million expired, and the associated valuation allowance on the carryover was removed; the combination of these two items does not affect income tax expense. For 2015 , we recorded income tax expense 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 income tax expense of $45.4 million on income before taxes of $137.0 million . The 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 of $11.7 million expired; the valuation allowance was also removed; the combination of these items does not affect income tax expense. We continually review the need for establishing or releasing valuation allowances on our deferred tax attributes. In 2016 , the Company had a net tax benefit from the release and generation of valuation allowances in U.S. state and certain foreign jurisdictions of $0.7 million . In 2015 , the company had a net tax expense from the release and generation of valuation allowances in U.S. state and certain foreign jurisdictions 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 of $0.2 million . The U.S. federal statute of limitations remains open for the year 2013 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 ( 2012 forward), Brazil ( 2011 forward), Canada ( 2008 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) 2016 2015 2014 Current expense Federal and other $ 0.7 $ 2.1 $ 1.6 Foreign 22.9 16.0 23.2 Total current income tax expense 23.6 18.1 24.8 Deferred expense Federal and other 3.5 22.8 15.4 Foreign 2.5 4.6 5.2 Total deferred income tax expense 6.0 27.4 20.6 Total income tax expense $ 29.6 $ 45.5 $ 45.4 The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2016 2015 Deferred tax assets Compensation and benefits $ 20.7 $ 17.3 Pension 28.6 27.9 Inventory 12.4 11.4 Other reserves 19.1 17.1 Accounts receivable 7.0 7.7 Foreign tax credit carryforwards — 10.9 Net operating loss carryforwards 47.2 56.9 Unrealized foreign currency benefit on intercompany debt — 3.0 Other 10.3 9.4 Gross deferred income tax assets 145.3 161.6 Valuation allowance (11.7 ) (22.1 ) Net deferred tax assets 133.6 139.5 Deferred tax liabilities Depreciation (12.6 ) (16.0 ) Identifiable intangibles (240.4 ) (240.7 ) Gross deferred tax liabilities (253.0 ) (256.7 ) Net deferred tax liabilities $ (119.4 ) $ (117.2 ) 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 $555 million and $540 million as of December 31, 2016 and at 2015 , 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, 2016 , $135.0 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 2017 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, 2016 , we have accrued a cumulative amount of $12.5 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) 2016 2015 2014 Balance at beginning of year $ 34.8 $ 45.9 $ 52.1 Additions for tax positions of prior years 3.0 3.0 3.5 Reductions for tax positions of prior years (0.5 ) — (4.2 ) Increase resulting from foreign currency translation 6.4 — — Decrease resulting from foreign currency translation — (14.1 ) (5.5 ) Balance at end of year $ 43.7 $ 34.8 $ 45.9 As of December 31, 2016 , the amount of unrecognized tax benefits increased to $43.7 million , of which $42.0 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 Consumer and Office Products business, 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 January 2018. 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, 2016. In the meantime, we 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 2016 , 2015 and 2014 , we accrued additional interest as a charge to current tax expense of $2.8 million , $2.7 million and $3.2 million , respectively. At current exchange rates, our accrual through December 31, 2016 , including tax, penalties and interest is $37.3 million . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings per Share Total outstanding shares as of December 31, 2016 and 2015 were 107.9 million and 105.6 million , respectively. Under our stock repurchase program, for the year ended December 31, 2015 , we repurchased and retired 7.7 million shares of common stock. No shares were repurchased during the year ended December 31, 2016 . In addition, for the years ended December 31, 2016 and 2015 we acquired 0.7 million and 0.7 million of treasury shares respectively, 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) 2016 2015 2014 Weighted-average number of common shares outstanding — basic 107.0 108.8 113.7 Stock options 0.8 0.2 0.1 Stock-settled stock appreciation rights — 0.3 0.6 Restricted stock units 1.4 1.3 1.9 Adjusted weighted-average shares and assumed conversions — diluted 109.2 110.6 116.3 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, 2016 , 2015 and 2014 , these shares were approximately 3.6 million , 5.5 million and 4.3 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 13. 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), Australia, Canada, Brazil, 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, 2016 and 2015 , the Company had cash flow designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $76.5 million and $68.2 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 (income), 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 2017 . As of December 31, 2016 and 2015 , we have undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $52.1 million and $33.3 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2016 and 2015 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2016 December 31, 2015 Balance Sheet December 31, 2016 December 31, 2015 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 4.0 $ 1.9 Other current liabilities $ — $ 0.3 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.7 Other current liabilities 0.3 0.1 Total derivatives $ 4.4 $ 2.6 $ 0.3 $ 0.4 The following tables summarize the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2016 , 2015 and 2014 : 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) 2016 2015 2014 2016 2015 2014 Cash flow hedges: Foreign exchange contracts $ (0.1 ) $ 8.2 $ 6.9 Cost of products sold $ 2.5 $ (10.9 ) $ (3.5 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2016 2015 2014 Foreign exchange contracts Other expense (income), net $ (2.0 ) $ (0.5 ) $ 1.3 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | 14. 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 13. 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, 2016 and 2015 : (in millions of dollars) December 31, 2016 December 31, 2015 Assets: Forward currency contracts $ 4.4 $ 2.6 Liabilities: Forward currency contracts 0.3 0.4 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 $703.5 million and $729.0 million and the estimated fair value of total debt was $708.4 million and $740.3 million as of December 31, 2016 and 2015 , 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, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 15. 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, 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 ) Other comprehensive income (loss) before reclassifications, net of tax — 16.8 (11.5 ) 5.3 Amounts reclassified from accumulated other comprehensive income, net of tax 1.7 — 2.8 4.5 Balance at December 31, 2016 $ 2.5 $ (285.9 ) $ (136.0 ) $ (419.4 ) The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2016 , 2015 and 2014 were as follows: Year Ended December 31, (in millions of dollars) 2016 2015 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement (Loss) gain on cash flow hedges: Foreign exchange contracts $ (2.4 ) $ 10.9 $ 3.5 Cost of products sold Tax expense 0.7 (3.2 ) (1.0 ) Income tax expense Net of tax $ (1.7 ) $ 7.7 $ 2.5 Defined benefit plan items: Amortization of actuarial loss $ (3.1 ) $ (3.6 ) $ (5.9 ) (1) Amortization of prior service cost (0.4 ) (0.1 ) (0.3 ) (1) Total before tax (3.5 ) (3.7 ) (6.2 ) Tax benefit 0.7 $ 1.2 $ 2.1 Income tax expense Net of tax $ (2.8 ) $ (2.5 ) $ (4.1 ) Total reclassifications for the period, net of tax $ (4.5 ) $ 5.2 $ (1.6 ) (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 5. Pension and Other Retiree Benefits " for additional details). |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 16. 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 design, market, source, manufacture and sell traditional office products, academic 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, Australia, Brazil and Mexico. Our business, academic and calendar product lines use name brands such as Artline ® , AT-A-GLANCE ® , Derwent ® , Esselte ® , Five Star ® , GBC ® , Hilroy ® , Leitz ® , Marbig ® , Mead ® , NOBO ® , Quartet ® , Rapid ® , 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 supply some of our products directly to large commercial and industrial end-users, and provide business machine maintenance and certain repair services. Additionally, we supply some similar private label products. Our academic products include notebooks, folders, decorative calendars and stationery products. We distribute our academic products primarily through mass merchandisers and other retailers, such as grocery, drug and office superstores, as well as on-line retailers. We also distribute to small independent retailers in emerging markets and supply some private label academic products. Our calendar products are sold through all the same channels where we sell business or academic 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, on-line retailers and other retailers. Mass merchandisers and retail channels primarily sell to individual consumers but also to small businesses. We also sell to office supply retailers, commercial contract dealers, wholesalers, distributors and independent dealers who primarily serve commercial end-users. Over half of our product sales by our customers are to commercial 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 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, 2016 , 2015 and 2014 were as follows: (in millions of dollars) 2016 2015 2014 ACCO Brands North America $ 955.5 $ 963.3 $ 1,006.0 ACCO Brands International 485.0 426.9 546.9 Computer Products Group 116.6 120.2 136.3 Net sales $ 1,557.1 $ 1,510.4 $ 1,689.2 Operating income by business segment for the years ended December 31, 2016 , 2015 and 2014 was as follows: (in millions of dollars) 2016 2015 2014 ACCO Brands North America $ 150.6 $ 147.6 $ 140.7 ACCO Brands International 53.1 40.8 62.9 Computer Products Group 11.6 10.3 8.2 Segment operating income 215.3 198.7 211.8 Corporate (1) (48.0 ) (35.2 ) (38.2 ) Operating income (2) 167.3 163.5 173.6 Interest expense 49.3 44.5 49.5 Interest income (6.4 ) (6.6 ) (5.6 ) Equity in earnings of joint-venture (2.1 ) (7.9 ) (8.1 ) Other expense, net 1.4 2.1 0.8 Income before income tax $ 125.1 $ 131.4 $ 137.0 (1) Corporate operating income in 2016 includes transaction costs of $10.5 million , primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. In 2015 this was $0.6 million . (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. The following table presents the measure of segment assets used by the Company’s chief operating decision maker. December 31, (in millions of dollars) 2016 2015 ACCO Brands North America (3) $ 378.1 $ 413.8 ACCO Brands International (3) 397.2 335.0 Computer Products Group (3) 56.4 61.5 Total segment assets 831.7 810.3 Unallocated assets 1,232.0 1,142.0 Corporate (3) 0.8 1.1 Total assets $ 2,064.5 $ 1,953.4 (3) 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) 2016 2015 ACCO Brands North America (4) $ 1,171.3 $ 1,220.7 ACCO Brands International (4) 742.6 531.5 Computer Products Group (4) 70.6 75.9 Total segment assets 1,984.5 1,828.1 Unallocated assets 79.2 124.2 Corporate (4) 0.8 1.1 Total assets $ 2,064.5 $ 1,953.4 (4) 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 was as follows: December 31, (in millions of dollars) 2016 2015 U.S. $ 103.0 $ 111.5 Brazil 36.8 31.9 U.K. 30.3 38.9 Australia 12.5 10.6 Other countries 15.8 16.2 Property, plant and equipment, net $ 198.4 $ 209.1 Net sales by geographic region (5) for the years ended December 31, 2016 , 2015 and 2014 were as follows: (in millions of dollars) 2016 2015 2014 U.S. $ 894.4 $ 904.3 $ 921.0 Australia 156.5 91.8 108.5 Canada 121.7 121.4 150.6 Brazil 102.6 92.0 154.0 Netherlands 101.4 108.7 130.2 U.K. 59.1 76.4 89.1 Mexico 47.3 49.6 58.8 Other countries 74.1 66.2 77.0 Net sales $ 1,557.1 $ 1,510.4 $ 1,689.2 (5) 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 $663.5 million , $637.7 million and $706.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Net sales to Staples, our largest customer, were $210.5 million ( 14% ), $204.1 million ( 14% ) and $224.1 million ( 13% ) for the years ended December 31, 2016 , 2015 and 2014 , respectively. Net sales to Wal-Mart were $161.7 million ( 10% ) for the year ended December 31, 2016 . Net sales to Office Depot 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, 2016 and 2015 , our top five trade account receivables totaled $162.2 million and $152.3 million , respectively. |
Joint Venture Investment
Joint Venture Investment | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Investments | 17. Joint-Venture Investment Summarized below is the financial information for the Pelikan Artline joint-venture, in which we owned a 50% non-controlling interest through May 1, 2016, which was accounted for under the equity method. Accordingly, we recorded our proportionate share of earnings or losses on the line entitled " Equity in earnings of joint-venture " in the " Consolidated Statements of Income ." On May 2, 2016, the Company completed the PA Acquisition and accordingly, the results of the Pelikan Artline joint-venture are included in the Company's condensed consolidated financial statements from the date of the PA Acquisition, May 2, 2016. See " Note 3. Acquisition " for details on the PA Acquisition. Year Ended December 31, (in millions of dollars) 2016 2015 2014 Net sales $ 34.9 $ 111.2 $ 121.4 Gross profit 14.1 45.5 48.2 Net income 4.1 15.8 16.4 December 31, (in millions of dollars) 2015 Current assets $ 76.6 Non-current assets 43.6 Current liabilities 37.5 Non-current liabilities 13.1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. 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 11. 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, 2016 were as follows: (in millions of dollars) 2017 $ 22.2 2018 18.5 2019 16.6 2020 15.1 2021 12.2 Thereafter 15.8 Total minimum rental payments 100.4 Less minimum rentals to be received under non-cancelable subleases 2.8 Future minimum payments for operating leases, net of sublease rental income $ 97.6 Total rental expense reported in our Consolidated Statements of Income for all non-cancelable operating leases (reduced by minor amounts for subleases) amounted to $24.2 million , $21.2 million and $23.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Unconditional Purchase Commitments Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2016 were as follows: (in millions of dollars) 2017 $ 84.8 2018 0.7 2019 — 2020 — 2021 — Thereafter — Total unconditional purchase commitments $ 85.5 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, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 19. Quarterly Financial Information (Unaudited) The following is an analysis of certain line items in the Consolidated Statements of Income by quarter for 2016 and 2015 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2016 Net sales (1) $ 278.1 $ 410.1 $ 431.3 $ 437.6 Gross profit 82.4 134.8 144.2 153.7 Operating income 6.5 45.4 55.7 59.7 Net income $ 4.8 $ 61.9 $ 22.7 $ 6.1 Per share: Basic income per share (2) $ 0.05 $ 0.58 $ 0.21 $ 0.06 Diluted income per share (2) $ 0.04 $ 0.57 $ 0.21 $ 0.06 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 Per share: Basic income (loss) per share (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.30 Diluted income (loss) per share (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.29 (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) we are a major supplier 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 ® 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20. Subsequent Events Acquisition of Esselte Group Holdings AB On January 31, 2017 , ACCO Europe, an indirect wholly-owned subsidiary of the Company, completed its previously announced acquisition of Esselte Group Holdings AB (the "Esselte Acquisition"). The Esselte Acquisition was made pursuant to the share purchase agreement, dated October 21, 2016 (the "Purchase Agreement") among ACCO Europe, the Company and an entity controlled by J. W. Childs (the "Seller"), as amended. The cash purchase price paid at closing was €296.9 million ( US$317.7 million ). A warranty and indemnity insurance policy held by the Company and ACCO Europe insures certain of Seller’s contractual obligations to ACCO Europe under the Purchase Agreement for up to €40.0 million ( US$42.8 million ) for a period of up to seven years, subject to certain deductibles and limitations set forth in the policy. Esselte Group Holdings AB ("Esselte") is a leading European manufacturer and marketer of branded business products. It takes products to market under the Leitz ® , Rapid ® and Esselte ® brands in the storage and organization, stapling and punch, business machines and do-it-yourself tools product categories. The combination improves ACCO Brands’ scale and enhances its position as an industry leader in Europe. The Esselte Acquisition and related expenses were funded through the Euro Term Loan A (see below) and cash on hand. Transaction costs related to the Esselte Acquisition of $9.2 million were incurred during the year ended December 31, 2016 and were reported as advertising, selling, general and administrative expenses. As part of the acquisition, the Company assumed an estimated $160 million of unfunded pension liabilities, net of associated deferred tax, predominantly in Germany. The Company is unable to make all the disclosures required by ASC 805-10-50-2 at this time as the initial accounting and pro forma analysis for this business combination is incomplete. Third Amended and Restated Credit Agreement In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement (the " 2017 Credit Agreement "), dated as of January 27, 2017 (the "Effective Date"), among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other agents and various lenders party thereto. The 2017 Credit Agreement amended and restated the Company’s Second Amended and Restated Credit Agreement, dated April 28, 2015, as amended, among the Company, certain subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto (the " 2015 Credit Agreement "). Borrowings under the 2017 Credit Agreement mature on January 27, 2022. The 2017 Credit Agreement provides for a five -year senior secured credit facility, which consists of a €300 million (US $320.8 million ) Euro denominated term loan facility (the "Euro Term Loan A"), an A$80 million (US $60.4 million ) Australian Dollar denominated term loan facility (the "AUD Term Loan A" and together with the Euro Term Loan A, (the "2017 Term A Loan Facility"), and a US$400 million multi-currency revolving credit facility (the "2017 Revolving Facility"). At closing, borrowings under the 2017 Revolving Facility of US$91.3 million were applied toward, among other things, (i) the repayment of all outstanding U.S. Dollar denominated term loans under the 2015 Credit Agreement , (ii) the repayment of a portion of the Australian Dollar denominated term loans under the 2015 Credit Agreement , of which A$80 million (US $60.4 million ) outstanding principal amount was continued under the AUD Term Loan A, and (iii) the payment of related financing fees and expenses. Immediately following the Effective Date, approximately US$156.7 million was available for borrowing under the 2017 Revolving Facility. The Company is still considering the appropriate accounting treatment related to the 2017 Credit Agreement . |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Balance at beginning of year $ 4.8 $ 5.5 $ 6.1 Additions charged to expense 0.2 3.2 1.0 Deductions - write offs (0.8 ) (3.5 ) (1.3 ) PA Acquisition 0.1 — — Foreign exchange changes 0.2 (0.4 ) (0.3 ) Balance at end of year $ 4.5 $ 4.8 $ 5.5 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) 2016 2015 2014 Balance at beginning of year $ 11.7 $ 12.0 $ 12.9 Additions charged to expense 22.5 30.3 37.4 Deductions - returns (24.9 ) (30.4 ) (38.4 ) Foreign exchange changes 0.1 (0.2 ) 0.1 Balance at end of year $ 9.4 $ 11.7 $ 12.0 Allowances for Cash Discounts Changes in the allowances for cash discounts were as follows: Year Ended December 31, (in millions of dollars) 2016 2015 2014 Balance at beginning of year $ 2.2 $ 2.0 $ 2.2 Additions charged to expense 13.6 14.2 15.5 Deductions - discounts taken (14.1 ) (13.9 ) (15.6 ) PA Acquisition 0.2 — — Foreign exchange changes (0.1 ) (0.1 ) (0.1 ) Balance at end of year $ 1.8 $ 2.2 $ 2.0 Warranty Reserves Changes in the reserve for warranty claims were as follows: Year Ended December 31, (in millions of dollars) 2016 2015 2014 Balance at beginning of year $ 1.7 $ 1.8 $ 2.2 Provision for warranties issued 2.2 1.8 2.0 Deductions - settlements made (in cash or in kind) (2.2 ) (1.8 ) (2.4 ) PA Acquisition 0.3 — — Foreign exchange changes (0.1 ) (0.1 ) — Balance at end of year $ 1.9 $ 1.7 $ 1.8 Income Tax Valuation Allowance Changes in the deferred tax valuation allowances were as follows: Year Ended December 31, (in millions of dollars) 2016 2015 2014 Balance at beginning of year $ 22.1 $ 23.9 $ 33.0 (Credits) charges to expense (0.7 ) (0.3 ) 0.2 Credited to other accounts (9.3 ) (1.1 ) (8.7 ) Foreign exchange changes (0.4 ) (0.4 ) (0.6 ) Balance at end of year $ 11.7 $ 22.1 $ 23.9 |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 our 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 $0.1 million , $1.3 million and $0.9 million for the years ended December 31, 2016 , 2015 and 2014 , 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, on a qualitative basis, as allowed by GAAP, for the majority of indefinite-lived trade names in the second quarter of 2016 and concluded that no impairment existed. For two of our indefinite-lived trade names that are not substantially above their carrying values, Mead ® and Hilroy ® , we performed quantitative tests (Step 1) in the second quarter of 2016. The following long-term growth rates and discount rates were used, 1.5% and 10.0% for Mead ® , and 1.5% and 10.5% for Hilroy ® , respectively. We concluded that neither Mead ® nor Hilroy ® were impaired. In the fourth quarter of 2015, we performed a quantitative test, as we identified the recession in Brazil as a triggering event related to our trade name, Tilibra ® 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 Tilibra ® included a long-term growth rate of 6.5% and a 14.5% discount rate. In 2016, the Tilibra ® trade name slightly outperformed the forecast used in the fourth quarter of 2015 quantitative test; however, the economic conditions in Brazil could deteriorate further triggering additional future reviews. The fair values of Mead ® , Tilibra ® and Hilroy ® trade names are less than 30% above their carrying values. As of December 31, 2016 the carrying values of those trade names were as follows: Mead ® ( $113.3 million ), Tilibra ® ( $63.0 million ) and Hilroy ® ( $11.8 million ). |
Goodwill | Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition 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 2016 , on a qualitative basis, and concluded that it was not more likely than not that the fair value of any reporting unit is less than its 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. |
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. |
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. |
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 $110.1 million , $120.9 million and $130.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These costs primarily include, but are not limited to, cooperative advertising and promotional allowances as described in " Customer Program Costs " above, and are principally expensed as incurred. |
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 $21.0 million , $20.0 million and $20.2 million for the years ended December 31, 2016 , 2015 and 2014 , 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 (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes substantially all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued the following amendments to ASU 2014-09, which have the same effective date and transition date of January 1, 2018: • In August 2015 the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. • In March 2016 the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. • In April 2016 the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. • In May 2016 the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. • In December 2016 the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples There are two methods of adoption allowed, either a "full" retrospective adoption or a "modified" retrospective adoption. The Company has not yet decided which implementation method it will adopt. The Company has hired outside consultants to help in the process of evaluating the potential impact of ASU 2014-09, but it does not expect the adoption of ASU 2014-09 will have a material impact on the Company’s consolidated financial statements in any one annual period. The Company will adopt ASU 2014-09 effective with its 2018 fiscal year. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This new standard simplifies the accounting for employee share-based payments and involves several aspects of the accounting for share-based transactions, including the potential timing of expenses, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has determined that ASU 2016-09 will have an immaterial effect on the Company's consolidated financial statements and the Company will adopt ASU 2016-09 effective with its 2017 fiscal year. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This new standard will require the recognition, on the balance sheet, of most leases as lease assets (right-of-use assets) and lease liabilities by lessees for those leases classified as operating leases under current GAAP. This new standard also includes increased disclosures to meet the objective of enabling users of financial statements to understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and adoption of ASU 2016-02 is to be done on a modified retrospective basis. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on the Company’s consolidated financial statements and it currently expects that most of its operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets upon the adoption of ASU 2016-02. It is expected that these changes will be material to the Company's consolidated financial statements. The Company will adopt ASU 2016-02 effective with its 2019 fiscal year. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This new standard 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 or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company has determined that ASU 2015-11 will have an immaterial effect on the Company's consolidated financial statements and the Company will adopt ASU 2015-11 effective with its 2017 fiscal year. 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. Recently Adopted Accounting Standards In August 2016 the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard clarifies certain aspects of the statement of cash flows, including the classification of debt prepayment or debt extinguishment costs or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. ASU 2016-15 also clarifies that an entity should determine each separately identifiable source of use within the cash receipts and payments based on the nature of the underlying cash flows. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company has elected to early adopt ASU 2016-15. The only material effect has been that " Net cash provided by operating activities " has been increased by $25.0 million and our " Net cash used by financing activities " has been increased by $25.0 million , due to a $25.0 million "make-whole" call premium in association with the early satisfaction and discharge of our $500 million principal amount of outstanding Senior Unsecured Notes due April 2020. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments in ASU 2015-07 remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 is effective for annual reporting periods beginning after December 15, 2015. The guidance is required to be applied retrospectively to all periods presented. The Company adopted this new guidance and it did not have a material impact on the Company’s consolidated financial statements. |
Significant Accounting Polici31
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Land and improvements $ 18.9 $ 17.6 Buildings and improvements to leaseholds 119.1 120.0 Machinery and equipment 382.0 358.5 Construction in progress 8.0 30.0 528.0 526.1 Less: accumulated depreciation (329.6 ) (317.0 ) Property, plant and equipment, net (1) $ 198.4 $ 209.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Calculation of Consideration Given for Pelikan Artline | The calculation of consideration given in the PA Acquisition is described in the following table. (in millions of dollars) At May 2, 2016 Purchase price, net of working capital adjustments $ 103.7 Fair value of previously held equity interest 69.3 Consideration for Pelikan Artline $ 173.0 |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of the PA Acquisition. (in millions of dollars) At May 2, 2016 Calculation of Goodwill: Purchase price, net of working capital adjustments $ 103.7 Fair value of previously held equity interest 69.3 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 21.7 Deferred tax liabilities 0.2 Debt 24.7 Other non-current liabilities 1.4 Fair value of liabilities assumed $ 48.0 Less fair value of assets acquired: Cash acquired 14.9 Accounts receivable 27.0 Inventory 24.1 Property and equipment 2.2 Identifiable intangibles 58.0 Deferred tax assets 5.7 Other assets 8.6 Fair value of assets acquired $ 140.5 Goodwill $ 80.5 |
Pro Forma Consolidated Results | Had the PA Acquisition occurred on January 1, 2015, unaudited pro forma consolidated results for the twelve month period ending December 31, 2016 and 2015 would have been as follows: Unaudited Twelve Months Ended December 31, (in millions of dollar, except per share data) 2016 2015 Net sales $ 1,593.1 $ 1,627.6 Net income 65.3 119.4 Net income per common share (diluted) $ 0.60 $ 1.08 |
Long-term Debt and Short-term33
Long-term Debt and Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : (in millions of dollars) 2016 2015 U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015) (1) $ 81.0 $ 229.0 Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) (1) 70.3 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) (1) 63.7 — Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) 87.9 — Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) 400.0 — Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) — 500.0 Other borrowings 0.6 — Total debt 703.5 729.0 Less: Current portion 68.5 — Debt issuance costs, unamortized 7.3 8.5 Long-term debt, net $ 627.7 $ 720.5 |
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 2015 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 2015 Credit Agreement , the Company was 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 2015 Credit Agreement . |
Pension and Other Retiree Ben34
Pension and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 198.7 $ 212.9 $ 347.1 $ 391.8 $ 8.1 $ 12.2 Service cost 1.3 1.6 0.8 0.9 0.1 0.1 Interest cost 7.3 8.7 10.3 12.9 0.2 0.4 Actuarial loss (gain) 3.1 (14.4 ) 55.6 (19.0 ) (0.2 ) (3.4 ) Participants’ contributions — — 0.1 0.2 0.1 0.1 Benefits paid (10.3 ) (10.1 ) (13.0 ) (15.9 ) (0.5 ) (0.5 ) Curtailment gain — — (0.6 ) — (0.8 ) — Plan amendments — — — — — (0.2 ) Foreign exchange rate changes — — (55.2 ) (23.8 ) (0.3 ) (0.6 ) Projected benefit obligation at end of year 200.1 198.7 345.1 347.1 6.7 8.1 Change in plan assets Fair value of plan assets at beginning of year 145.8 163.9 318.9 351.2 — — Actual return on plan assets 14.1 (9.3 ) 41.8 (0.8 ) — — Employer contributions 0.9 1.3 4.9 5.4 0.4 0.4 Participants’ contributions — — 0.1 0.2 0.1 0.1 Benefits paid (10.3 ) (10.1 ) (13.0 ) (15.9 ) (0.5 ) (0.5 ) Foreign exchange rate changes — — (50.0 ) (21.2 ) — — Fair value of plan assets at end of year 150.5 145.8 302.7 318.9 — — Funded status (Fair value of plan assets less PBO) $ (49.6 ) $ (52.9 ) $ (42.4 ) $ (28.2 ) $ (6.7 ) $ (8.1 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.3 $ 0.9 $ — $ — Other current liabilities — — 0.4 0.4 0.6 0.6 Pension and post-retirement benefit obligations (1) 49.6 52.9 42.3 28.7 6.1 7.5 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 54.2 55.1 83.7 75.0 (3.5 ) (4.2 ) Unrecognized prior service cost (credit) 2.0 2.0 (0.2 ) (0.3 ) (0.2 ) (0.2 ) (1) Pension and post-retirement obligations of $98.0 million as of December 31, 2016 , increased from $89.1 million as of December 31, 2015 , primarily due to lower discount rates compared to prior year assumptions for the U.K. plan. |
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, 2017 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 2.0 $ 2.9 $ (0.4 ) Prior service cost 0.4 — — $ 2.4 $ 2.9 $ (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) 2016 2015 2016 2015 Projected benefit obligation $ 200.1 $ 198.7 $ 326.9 $ 334.1 Accumulated benefit obligation 198.3 196.1 320.4 324.7 Fair value of plan assets 150.5 145.8 284.2 305.0 |
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, 2016 , 2015 , and 2014 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 1.3 $ 1.6 $ 2.1 $ 0.8 $ 0.9 $ 0.8 $ 0.1 $ 0.1 $ 0.2 Interest cost 7.3 8.7 8.6 10.3 12.9 15.7 0.2 0.4 0.5 Expected return on plan assets (11.9 ) (12.2 ) (12.0 ) (17.6 ) (21.9 ) (22.8 ) — — — Amortization of net loss (gain) 1.8 2.1 5.1 2.3 2.4 1.9 (0.4 ) (0.4 ) (1.1 ) Amortization of prior service cost (credit) 0.4 0.4 0.4 — — — — (0.3 ) — Curtailment gain — — — — — — (0.6 ) — — Settlement gain — — — — — — — (0.5 ) (0.1 ) Net periodic benefit (income) cost $ (1.1 ) $ 0.6 $ 4.2 $ (4.2 ) $ (5.7 ) $ (4.4 ) $ (0.7 ) $ (0.7 ) $ (0.5 ) |
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, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Current year actuarial loss (gain) $ 0.9 $ 7.1 $ 35.4 $ 27.9 $ 3.8 $ 27.3 $ (1.0 ) $ (3.4 ) $ (0.3 ) Amortization of actuarial (loss) gain (1.8 ) (2.1 ) (5.1 ) (2.3 ) (2.4 ) (1.9 ) 1.0 0.9 1.1 Current year prior service (credit) cost — — — — — (0.2 ) — (0.2 ) (0.3 ) Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.4 ) — — — — 0.3 — Foreign exchange rate changes — — — (15.5 ) (5.6 ) (6.8 ) 0.5 0.1 0.1 Total recognized in other comprehensive income (loss) $ (1.3 ) $ 4.6 $ 29.9 $ 10.1 $ (4.2 ) $ 18.4 $ 0.5 $ (2.3 ) $ 0.6 Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) $ (2.4 ) $ 5.2 $ 34.1 $ 5.9 $ (9.9 ) $ 14.0 $ (0.2 ) $ (3.0 ) $ 0.1 |
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.3 % 4.6 % 4.2 % 2.7 % 3.7 % 3.4 % 3.4 % 3.9 % 3.7 % Rate of compensation increase N/A N/A N/A 3.1 % 3.0 % 3.3 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Pension Post-retirement U.S. International 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.6 % 4.2 % 5.0 % 3.7 % 3.4 % 4.3 % 3.9 % 3.7 % 4.4 % Expected long-term rate of return 7.8 % 8.0 % 8.2 % 6.0 % 6.5 % 6.8 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 3.0 % 3.3 % 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, 2016 , 2015 , and 2014 were as follows: Post-retirement 2016 2015 2014 Health care cost trend rate assumed for next year 8 % 7 % 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 2025 2024 2023 |
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 $ — $ — Increase (decrease) on post-retirement benefit obligation 0.5 (0.4 ) |
Schedule of Allocation of Plan Assets | Our pension plan weighted average asset allocations as of December 31, 2016 and 2015 were as follows: 2016 2015 U.S. International U.S. International Asset category Equity securities 68 % 33 % 61 % 45 % Fixed income 25 51 31 39 Real estate — 3 — 4 Other (2) 7 13 8 12 Total 100 % 100 % 100 % 100 % (2) 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 2017 $ 23.0 $ 0.6 2018 23.7 0.6 2019 24.0 0.6 2020 24.7 0.5 2021 25.1 0.5 Years 2022 - 2026 134.4 2.3 |
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 2016 2015 2016 2015 2014 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.3 $ 0.3 $ 0.4 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, 2016 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Mutual funds $ 89.3 $ — $ — $ 89.3 Exchange traded funds 13.5 — — 13.5 Common collective trust funds — 7.9 — 7.9 Corporate debt securities — 16.3 — 16.3 Asset-backed securities — 3.4 — 3.4 Government mortgage-backed securities — 5.4 — 5.4 Collateralized mortgage obligations, mortgage backed securities, and other — 5.2 — 5.2 Investments measured at net asset value (3) Multi-strategy hedge funds 9.5 Total $ 102.8 $ 38.2 $ — $ 150.5 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 Government mortgage-backed securities — 7.3 — 7.3 Collateralized mortgage obligations, mortgage backed securities, and other — 6.8 — 6.8 Investments measured at net asset value (3) Multi-strategy hedge funds 9.2 Total $ 89.5 $ 47.1 $ — $ 145.8 |
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, 2016 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 0.5 $ — $ — $ 0.5 Equity securities 99.2 — — 99.2 Corporate debt securities — 145.3 — 145.3 Multi-strategy hedge funds — 20.2 — 20.2 Insurance contracts — 17.8 — 17.8 Government debt securities — 10.1 — 10.1 Investments measured at net asset value (3) Real estate 9.6 Total $ 99.7 $ 193.4 $ — $ 302.7 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 Government debt securities — 3.2 — 3.2 Investments measured at net asset value (3) Real estate 11.3 Total $ 143.8 $ 163.8 $ — $ 318.9 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 2015 and 2014 . (in millions of dollars) 2016 2015 2014 Advertising, selling, general and administrative expense $ 19.4 $ 16.0 $ 15.7 Loss before income tax (19.4 ) (16.0 ) (15.7 ) Income tax benefit (7.0 ) (5.7 ) (5.7 ) Net (loss) $ (12.4 ) $ (10.3 ) $ (10.0 ) |
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, 2016 , 2015 and 2014 was as follows: (in millions of dollars) 2016 2015 2014 Stock option compensation expense $ 2.9 $ 3.9 $ 3.7 RSU compensation expense 4.5 4.7 6.6 PSU compensation expense 12.0 7.4 5.4 Total stock-based compensation expense $ 19.4 $ 16.0 $ 15.7 |
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 and the weighted average assumptions as outlined in the following table: Year Ended December 31, 2015 2014 Weighted average expected lives 4.5 years 4.5 years Weighted average risk-free interest rate 1.47 % 1.33 % Weighted average expected volatility 46.5 % 52.2 % Expected dividend yield 0.0 % 0.0 % Weighted average grant date fair value $ 3.00 $ 2.69 |
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, 2016 are presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2015 5,583,531 $ 7.20 Exercised (1,359,515 ) $ 5.30 Lapsed (90,142 ) $ 7.35 Outstanding at December 31, 2016 4,133,874 $ 7.82 3.8 years $ 21.6 million Options vested or expected to vest 4,099,827 $ 7.83 3.8 years $ 21.4 million Exercisable shares at December 31, 2016 2,782,697 $ 8.20 3.2 years $ 13.5 million |
Summary of Changes in RSUs Outstanding | A summary of the changes in the RSUs outstanding under our equity compensation plan during 2016 are presented below: Stock Weighted Outstanding at December 31, 2015 2,007,127 $ 7.11 Granted 516,739 $ 8.05 Vested and distributed (577,997 ) $ 7.56 Forfeited and cancelled (35,200 ) $ 6.88 Outstanding at December 31, 2016 1,910,669 $ 7.23 Vested and deferred at December 31, 2016 (1) 295,453 $ 8.51 (1) Included in outstanding at December 31, 2016 . Vested and 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 2016 are presented below: Stock Weighted Outstanding at December 31, 2015 3,197,735 $ 7.07 Granted 1,013,242 $ 7.65 Vested (1,072,692 ) $ 7.58 Forfeited and cancelled (58,959 ) $ 7.21 Other - increase due to performance of PSU's 1,202,466 $ 7.08 Outstanding at December 31, 2016 4,281,792 $ 7.09 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: December 31, (in millions of dollars) 2016 2015 Raw materials $ 30.3 $ 33.3 Work in process 3.0 2.6 Finished goods 176.7 167.7 Total inventories $ 210.0 $ 203.6 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Land and improvements $ 18.9 $ 17.6 Buildings and improvements to leaseholds 119.1 120.0 Machinery and equipment 382.0 358.5 Construction in progress 8.0 30.0 528.0 526.1 Less: accumulated depreciation (329.6 ) (317.0 ) Property, plant and equipment, net (1) $ 198.4 $ 209.1 |
Goodwill and Identifiable Int38
Goodwill and Identifiable Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 PA Acquisition — 80.5 — 80.5 Translation 1.5 8.2 — 9.7 Balance at December 31, 2016 $ 379.0 $ 201.3 $ 6.8 $ 587.1 Goodwill $ 509.9 $ 285.5 $ 6.8 $ 802.2 Accumulated impairment losses (130.9 ) (84.2 ) — (215.1 ) Balance at December 31, 2016 $ 379.0 $ 201.3 $ 6.8 $ 587.1 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The allocations of the identifiable intangibles acquired in the PA Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Customer relationships $ 36.0 12 Years Trade names - amortizable 22.0 12-30 Years Total identifiable intangibles acquired $ 58.0 |
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, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 483.3 $ (44.5 ) (1) $ 438.8 $ 471.8 $ (44.5 ) (1) $ 427.3 Amortizable intangible assets: Trade names 121.2 (48.8 ) 72.4 122.6 (61.7 ) 60.9 Customer and contractual relationships 128.3 (73.8 ) 54.5 95.8 (63.1 ) 32.7 Subtotal 249.5 (122.6 ) 126.9 218.4 (124.8 ) 93.6 Total identifiable intangibles $ 732.8 $ (167.1 ) $ 565.7 $ 690.2 $ (169.3 ) $ 520.9 (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) 2017 2018 2019 2020 2021 Estimated amortization expense (2) $ 20.1 $ 17.5 $ 15.0 $ 12.4 $ 9.9 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 Provision Cash Balance at December 31, 2016 Employee termination costs $ 0.9 $ 5.2 $ (4.7 ) $ 1.4 Termination of lease agreements 0.1 0.2 (0.2 ) 0.1 Total restructuring liability $ 1.0 $ 5.4 $ (4.9 ) $ 1.5 Management expects the $1.4 million employee termination costs balance to be substantially paid within the next twelve months. 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 Provision/(Credits) Cash Non-cash Balance at December 31, 2015 Employee termination costs $ 7.8 $ (0.6 ) $ (6.0 ) $ (0.3 ) $ 0.9 Termination of lease agreements 0.6 0.2 (0.7 ) — 0.1 Total restructuring liability $ 8.4 $ (0.4 ) $ (6.7 ) $ (0.3 ) $ 1.0 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Domestic operations $ 33.9 $ 60.9 $ 43.5 Foreign operations 91.2 70.5 93.5 Total $ 125.1 $ 131.4 $ 137.0 |
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) 2016 2015 2014 Income tax at U.S. statutory rate of 35% $ 43.8 $ 46.0 $ 47.9 State, local and other tax, net of federal benefit 2.4 2.1 2.1 U.S. effect of foreign dividends and withholding taxes 4.6 3.9 7.4 Unrealized foreign currency expense (benefit) on intercompany debt 0.7 (0.7 ) (3.0 ) Realized foreign exchange net loss on intercompany loans (9.6 ) — — Revaluation of previously held equity interest (12.0 ) — — Foreign income taxed at a lower effective rate (4.6 ) (5.6 ) (8.6 ) Interest on Brazilian Tax Assessment 2.8 2.7 3.2 Expiration of tax credits 10.9 1.0 11.7 Decrease in valuation allowance (9.9 ) (1.3 ) (11.5 ) Other 0.5 (2.6 ) (3.8 ) Income taxes as reported $ 29.6 $ 45.5 $ 45.4 Effective tax rate 23.7 % 34.6 % 33.1 % |
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) 2016 2015 2014 Current expense Federal and other $ 0.7 $ 2.1 $ 1.6 Foreign 22.9 16.0 23.2 Total current income tax expense 23.6 18.1 24.8 Deferred expense Federal and other 3.5 22.8 15.4 Foreign 2.5 4.6 5.2 Total deferred income tax expense 6.0 27.4 20.6 Total income tax expense $ 29.6 $ 45.5 $ 45.4 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2016 2015 Deferred tax assets Compensation and benefits $ 20.7 $ 17.3 Pension 28.6 27.9 Inventory 12.4 11.4 Other reserves 19.1 17.1 Accounts receivable 7.0 7.7 Foreign tax credit carryforwards — 10.9 Net operating loss carryforwards 47.2 56.9 Unrealized foreign currency benefit on intercompany debt — 3.0 Other 10.3 9.4 Gross deferred income tax assets 145.3 161.6 Valuation allowance (11.7 ) (22.1 ) Net deferred tax assets 133.6 139.5 Deferred tax liabilities Depreciation (12.6 ) (16.0 ) Identifiable intangibles (240.4 ) (240.7 ) Gross deferred tax liabilities (253.0 ) (256.7 ) Net deferred tax liabilities $ (119.4 ) $ (117.2 ) |
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) 2016 2015 2014 Balance at beginning of year $ 34.8 $ 45.9 $ 52.1 Additions for tax positions of prior years 3.0 3.0 3.5 Reductions for tax positions of prior years (0.5 ) — (4.2 ) Increase resulting from foreign currency translation 6.4 — — Decrease resulting from foreign currency translation — (14.1 ) (5.5 ) Balance at end of year $ 43.7 $ 34.8 $ 45.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Weighted-average number of common shares outstanding — basic 107.0 108.8 113.7 Stock options 0.8 0.2 0.1 Stock-settled stock appreciation rights — 0.3 0.6 Restricted stock units 1.4 1.3 1.9 Adjusted weighted-average shares and assumed conversions — diluted 109.2 110.6 116.3 |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2016 December 31, 2015 Balance Sheet December 31, 2016 December 31, 2015 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 4.0 $ 1.9 Other current liabilities $ — $ 0.3 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.7 Other current liabilities 0.3 0.1 Total derivatives $ 4.4 $ 2.6 $ 0.3 $ 0.4 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the pre-tax effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2016 , 2015 and 2014 : 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) 2016 2015 2014 2016 2015 2014 Cash flow hedges: Foreign exchange contracts $ (0.1 ) $ 8.2 $ 6.9 Cost of products sold $ 2.5 $ (10.9 ) $ (3.5 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2016 2015 2014 Foreign exchange contracts Other expense (income), net $ (2.0 ) $ (0.5 ) $ 1.3 |
Fair Value Of Financial Instr43
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : (in millions of dollars) December 31, 2016 December 31, 2015 Assets: Forward currency contracts $ 4.4 $ 2.6 Liabilities: Forward currency contracts 0.3 0.4 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 ) Other comprehensive income (loss) before reclassifications, net of tax — 16.8 (11.5 ) 5.3 Amounts reclassified from accumulated other comprehensive income, net of tax 1.7 — 2.8 4.5 Balance at December 31, 2016 $ 2.5 $ (285.9 ) $ (136.0 ) $ (419.4 ) |
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, 2016 , 2015 and 2014 were as follows: Year Ended December 31, (in millions of dollars) 2016 2015 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement (Loss) gain on cash flow hedges: Foreign exchange contracts $ (2.4 ) $ 10.9 $ 3.5 Cost of products sold Tax expense 0.7 (3.2 ) (1.0 ) Income tax expense Net of tax $ (1.7 ) $ 7.7 $ 2.5 Defined benefit plan items: Amortization of actuarial loss $ (3.1 ) $ (3.6 ) $ (5.9 ) (1) Amortization of prior service cost (0.4 ) (0.1 ) (0.3 ) (1) Total before tax (3.5 ) (3.7 ) (6.2 ) Tax benefit 0.7 $ 1.2 $ 2.1 Income tax expense Net of tax $ (2.8 ) $ (2.5 ) $ (4.1 ) Total reclassifications for the period, net of tax $ (4.5 ) $ 5.2 $ (1.6 ) (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 5. Pension and Other Retiree Benefits " for additional details). |
Information on Business Segme45
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by business segment for the years ended December 31, 2016 , 2015 and 2014 were as follows: (in millions of dollars) 2016 2015 2014 ACCO Brands North America $ 955.5 $ 963.3 $ 1,006.0 ACCO Brands International 485.0 426.9 546.9 Computer Products Group 116.6 120.2 136.3 Net sales $ 1,557.1 $ 1,510.4 $ 1,689.2 |
Schedule of Operating Income by Business Segment | Operating income by business segment for the years ended December 31, 2016 , 2015 and 2014 was as follows: (in millions of dollars) 2016 2015 2014 ACCO Brands North America $ 150.6 $ 147.6 $ 140.7 ACCO Brands International 53.1 40.8 62.9 Computer Products Group 11.6 10.3 8.2 Segment operating income 215.3 198.7 211.8 Corporate (1) (48.0 ) (35.2 ) (38.2 ) Operating income (2) 167.3 163.5 173.6 Interest expense 49.3 44.5 49.5 Interest income (6.4 ) (6.6 ) (5.6 ) Equity in earnings of joint-venture (2.1 ) (7.9 ) (8.1 ) Other expense, net 1.4 2.1 0.8 Income before income tax $ 125.1 $ 131.4 $ 137.0 (1) Corporate operating income in 2016 includes transaction costs of $10.5 million , primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. In 2015 this was $0.6 million . (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. |
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) 2016 2015 ACCO Brands North America (3) $ 378.1 $ 413.8 ACCO Brands International (3) 397.2 335.0 Computer Products Group (3) 56.4 61.5 Total segment assets 831.7 810.3 Unallocated assets 1,232.0 1,142.0 Corporate (3) 0.8 1.1 Total assets $ 2,064.5 $ 1,953.4 (3) 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) 2016 2015 ACCO Brands North America (4) $ 1,171.3 $ 1,220.7 ACCO Brands International (4) 742.6 531.5 Computer Products Group (4) 70.6 75.9 Total segment assets 1,984.5 1,828.1 Unallocated assets 79.2 124.2 Corporate (4) 0.8 1.1 Total assets $ 2,064.5 $ 1,953.4 (4) 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 was as follows: December 31, (in millions of dollars) 2016 2015 U.S. $ 103.0 $ 111.5 Brazil 36.8 31.9 U.K. 30.3 38.9 Australia 12.5 10.6 Other countries 15.8 16.2 Property, plant and equipment, net $ 198.4 $ 209.1 |
Schedule of Net Sales by Geographic Region | Net sales by geographic region (5) for the years ended December 31, 2016 , 2015 and 2014 were as follows: (in millions of dollars) 2016 2015 2014 U.S. $ 894.4 $ 904.3 $ 921.0 Australia 156.5 91.8 108.5 Canada 121.7 121.4 150.6 Brazil 102.6 92.0 154.0 Netherlands 101.4 108.7 130.2 U.K. 59.1 76.4 89.1 Mexico 47.3 49.6 58.8 Other countries 74.1 66.2 77.0 Net sales $ 1,557.1 $ 1,510.4 $ 1,689.2 (5) 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, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Year Ended December 31, (in millions of dollars) 2016 2015 2014 Net sales $ 34.9 $ 111.2 $ 121.4 Gross profit 14.1 45.5 48.2 Net income 4.1 15.8 16.4 December 31, (in millions of dollars) 2015 Current assets $ 76.6 Non-current assets 43.6 Current liabilities 37.5 Non-current liabilities 13.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 were as follows: (in millions of dollars) 2017 $ 22.2 2018 18.5 2019 16.6 2020 15.1 2021 12.2 Thereafter 15.8 Total minimum rental payments 100.4 Less minimum rentals to be received under non-cancelable subleases 2.8 Future minimum payments for operating leases, net of sublease rental income $ 97.6 |
Future Minimum Payments Under Unconditional Purchase Commitments | Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2016 were as follows: (in millions of dollars) 2017 $ 84.8 2018 0.7 2019 — 2020 — 2021 — Thereafter — Total unconditional purchase commitments $ 85.5 |
Quarterly Financial Informati48
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 and 2015 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2016 Net sales (1) $ 278.1 $ 410.1 $ 431.3 $ 437.6 Gross profit 82.4 134.8 144.2 153.7 Operating income 6.5 45.4 55.7 59.7 Net income $ 4.8 $ 61.9 $ 22.7 $ 6.1 Per share: Basic income per share (2) $ 0.05 $ 0.58 $ 0.21 $ 0.06 Diluted income per share (2) $ 0.04 $ 0.57 $ 0.21 $ 0.06 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 Per share: Basic income (loss) per share (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.30 Diluted income (loss) per share (2) $ (0.05 ) $ 0.25 $ 0.30 $ 0.29 (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) we are a major supplier 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 ® 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. |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) | May 02, 2016 | May 01, 2016 |
Pelikan Artline Pty Ltd | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Percentage of voting interest acquired | 50.00% | |
Pelikan Artline Pty Ltd | ||
Schedule of Equity Method Investments [Line Items] | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% | |
Percentage of voting interest acquired | 100.00% |
Significant Accounting Polici50
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | |||||
Interest Costs Capitalized | $ 0.1 | $ 1.3 | $ 0.9 | ||
Advertising Expense | 110.1 | 120.9 | 130.8 | ||
Research and Development Expense | 21 | 20 | 20.2 | ||
Net Cash Provided by (Used in) Operating Activities | 165.9 | 171.2 | 171.7 | ||
Net Cash Provided by (Used in) Financing Activities | (75.2) | (137.8) | (142) | ||
Payments of Debt Extinguishment Costs | 25 | $ 0 | $ 0 | ||
Goodwill, Impairment Loss | $ 0 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||||
Accounting Standards Update 2016 15 | |||||
Accounting Policies [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | 25 | ||||
Net Cash Provided by (Used in) Financing Activities | $ 25 | ||||
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 | Minimum | |||||
Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Software and Software Development Costs | 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 | ||||
Mead Trade Name | |||||
Accounting Policies [Line Items] | |||||
Long-term growth rate | 1.50% | ||||
Discount rate | 10.00% | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 113.3 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||||
Maximum Percent Above Carrying Value | 30.00% | ||||
Hilroy Trade Name | |||||
Accounting Policies [Line Items] | |||||
Long-term growth rate | 1.50% | ||||
Discount rate | 10.50% | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 11.8 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||||
Maximum Percent Above Carrying Value | 30.00% | ||||
Brazil | Tilibra Trade name | |||||
Accounting Policies [Line Items] | |||||
Long-term growth rate | 6.50% | ||||
Discount rate | 14.50% | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 63 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||||
Maximum Percent Above Carrying Value | 30.00% | ||||
Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | Senior Notes | Accounting Standards Update 2016 15 | |||||
Accounting Policies [Line Items] | |||||
Payments of Debt Extinguishment Costs | $ 25 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | May 02, 2016 | Dec. 31, 2015 | Dec. 31, 2016 |
Pelikan Artline Pty Ltd | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 80.5 | ||
Payments to Acquire Businesses, Gross | 103.7 | ||
Consideration transferred | $ 88.8 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% | ||
Percentage of voting interest acquired | 100.00% | ||
Consideration held in escrow | 10.00% | ||
Revaluation gain/loss on previously held joint-venture equity interest | $ 28.9 | ||
Australia Stationary Industries | Pelikan Artline Pty Ltd | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest acquired | 50.00% | ||
Pelikan Artline Pty Ltd | Pelikan Artline Pty Ltd | |||
Business Acquisition [Line Items] | |||
Minority interest, ownership percentage | 19.83% | ||
Pelikan Artline Pty Ltd | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest acquired | 50.00% | ||
Advertising, selling, general and administrative expense | Pelikan Artline Pty Ltd | |||
Business Acquisition [Line Items] | |||
Transaction Related Costs | $ 0.6 | $ 1.3 |
Acquisitions (Calculation of Co
Acquisitions (Calculation of Consideration Given for Pelikan Artline) (Details) - Pelikan Artline Pty Ltd $ in Millions | May 02, 2016USD ($) |
Business Acquisition [Line Items] | |
Consideration for Pelikan Artline, net of working capital adjustments | $ 103.7 |
Fair value of previously held equity interest | 69.3 |
Consideration transferred | $ 173 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed) (Details) - Pelikan Artline Pty Ltd $ in Millions | May 02, 2016USD ($) |
Business Acquisition [Line Items] | |
Consideration for Pelikan Artline, net of working capital adjustments | $ 103.7 |
Fair value of previously held equity interest | 69.3 |
Net purchase price | 173 |
Accounts payable and accrued liabilities | 21.7 |
Deferred tax liabilities | 0.2 |
Debt | 24.7 |
Other non-current liabilities | 1.4 |
Fair value of liabilities assumed | 48 |
Cash acquired | 14.9 |
Accounts receivable | 27 |
Inventory | 24.1 |
Property and equipment | 2.2 |
Identifiable intangibles | 58 |
Deferred tax assets | 5.7 |
Other assets | 8.6 |
Fair value of assets acquired | 140.5 |
Goodwill | $ 80.5 |
Acquisitions (Pro Forma Consoli
Acquisitions (Pro Forma Consolidated Results) (Details) - Pelikan Artline Pty Ltd - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Revaluation gain/loss on previously held joint-venture equity interest | $ 28.9 | |
Net sales | 1,593.1 | $ 1,627.6 |
Net income | $ 65.3 | $ 119.4 |
Net income per common share (diluted) | $ 0.60 | $ 1.08 |
Transaction-related costs | ||
Business Acquisition [Line Items] | ||
Transaction Related Costs | $ 1.9 | |
Amortization of purchase accounting step-up | ||
Business Acquisition [Line Items] | ||
Amortization of inventory step-up | 0.3 | |
Gain on remeasurement of previously held equity interest | ||
Business Acquisition [Line Items] | ||
Revaluation gain/loss on previously held joint-venture equity interest | $ 32.2 |
Long-term Debt and Short-term55
Long-term Debt and Short-term Borrowings (Notes Payable and Long-term Debt) (Details) AUD in Millions, $ in Millions | Dec. 31, 2016USD ($) | May 02, 2016AUD | May 02, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 703.5 | $ 729 | |||
Less: current portion | 68.5 | 0 | |||
Debt Issuance cost, unamortized | 7.3 | 8.5 | |||
Long-term debt, net | 627.7 | 720.5 | |||
Other borrowings | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | 0.6 | 0 | |||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015)(1) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 81 | [1] | $ 229 | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.27% | 1.88% | |||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016)(1) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 70.3 | [1] | AUD 100 | $ 76.6 | $ 0 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.25% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016)(1) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 63.7 | [1] | 0 | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.59% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 87.9 | AUD 152 | $ 116.4 | 0 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.27% | ||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 400 | 0 | |||
Stated percentage | 5.25% | ||||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 500 | |||
Stated percentage | 6.75% | ||||
[1] | In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement dated January 27, 2017. See also "Note 20. Subsequent Events" to the consolidated financial statements. |
Long-term Debt and Short-term56
Long-term Debt and Short-term Borrowings Long-term Debt and Short-term Borrowings (Credit Spread) (Details) - Restated Credit Agreement | 12 Months Ended |
Dec. 31, 2016 | |
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-term57
Long-term Debt and Short-term Borrowings (Financial Covenant Ratios) (Details) - Restated Credit Agreement | 12 Months Ended | |
Dec. 31, 2016 | ||
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 2015 Credit Agreement. |
Long-term Debt and Short-term58
Long-term Debt and Short-term Borrowings (Narrative) (Details) AUD in Millions, $ in Millions | Sep. 30, 2018 | Dec. 31, 2016USD ($) | Dec. 22, 2016USD ($) | May 02, 2016AUD | May 02, 2016USD ($) | Sep. 30, 2015 | Apr. 28, 2015USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | May 02, 2016USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 703.5 | $ 703.5 | $ 729 | |||||||||||
Gain (Loss) on Extinguishment of Debt | (29.9) | (1.9) | $ 0 | |||||||||||
Payments of Debt Issuance Costs | $ 6.9 | 1.7 | $ 0.3 | |||||||||||
FIve Year Senior Secured Credit Facility Maturing April 2020 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit agreement, term | 5 years | |||||||||||||
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] | ||||||||||||||
Consolidated Fixed Charge Coverage Ratio | 1.25 | |||||||||||||
U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015)(1) | Eurodollar | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||
2015 Revolving Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | $ 7.8 | $ 7.8 | ||||||||||||
2015 Revolving Facility | Eurodollar | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||
2015 Revolving Facility | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
Australian Dollar Short Term Bank Debt and Notes Payable [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of Assumed Debt | AUD 32.1 | $ 24.5 | ||||||||||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 400 | $ 400 | 0 | |||||||||||
Stated percentage | 5.25% | 5.25% | ||||||||||||
Payments of Debt Issuance Costs | $ 6.1 | |||||||||||||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 | $ 500 | |||||||||||
Stated percentage | 6.75% | |||||||||||||
Payments for Extinguishment of Debt, including make whole call premium and accrued interest | 531.5 | |||||||||||||
Senior Secured Notes | FIve Year Senior Secured Credit Facility Maturing April 2020 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Max borrowing capacity | $ 600 | |||||||||||||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015)(1) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit agreement, face amount | 300 | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 81 | [1] | 81 | [1] | $ 229 | |||||||||
Early Repayment of Senior Debt | $ 78 | $ 70 | ||||||||||||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015)(1) | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Quarterly principal payment, based on annual percentage | 5.00% | |||||||||||||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016 and 1.88% at December 31, 2015)(1) | Maximum | Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Quarterly principal payment, based on annual percentage | 12.50% | |||||||||||||
Senior Secured Notes | 2015 Revolving Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 151.6 | 151.6 | ||||||||||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016)(1) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 70.3 | [1] | 100 | 70.3 | [1] | 0 | $ 76.6 | |||||||
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 87.9 | AUD 152 | 87.9 | $ 0 | $ 116.4 | |||||||||
Revolving Credit Facility | Senior Secured Notes | 2015 Revolving Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from Lines of Credit | 73.9 | |||||||||||||
Max borrowing capacity | $ 300 | |||||||||||||
Amount available for borrowings under the Restated Revolver Facility | $ 140.6 | $ 140.6 | ||||||||||||
Other expense, net | Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain (Loss) on Extinguishment of Debt | 25 | |||||||||||||
Write off of Deferred Debt Issuance Cost | 4.9 | |||||||||||||
Interest Expense | Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Accrued and unpaid interest | $ 6.5 | |||||||||||||
[1] | In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement dated January 27, 2017. See also "Note 20. Subsequent Events" to the consolidated financial statements. |
Pension and Other Retiree Ben59
Pension and Other Retiree Benefits (Pension Benefit Obligation and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Change in plan assets | ||||
Employer contributions | $ 6.2 | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Pension and post-retirement benefit obligations | 98 | $ 89.1 | ||
U.S. | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 198.7 | 212.9 | ||
Service cost | 1.3 | 1.6 | $ 2.1 | |
Interest cost | 7.3 | 8.7 | 8.6 | |
Actuarial loss (gain) | 3.1 | (14.4) | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (10.3) | (10.1) | ||
Curtailment gain | 0 | 0 | ||
Plan amendments | 0 | 0 | ||
Foreign exchange rate changes | 0 | 0 | ||
Projected benefit obligation at end of year | 200.1 | 198.7 | 212.9 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 145.8 | 163.9 | ||
Actual return on plan assets | 14.1 | (9.3) | ||
Employer contributions | 0.9 | 1.3 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (10.3) | (10.1) | ||
Foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets at end of year | 150.5 | 145.8 | 163.9 | |
Funded status (Fair value of plan assets less PBO) | (49.6) | (52.9) | ||
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] | 49.6 | 52.9 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 54.2 | 55.1 | ||
Unrecognized prior service cost (credit) | 2 | 2 | ||
International | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 347.1 | 391.8 | ||
Service cost | 0.8 | 0.9 | 0.8 | |
Interest cost | 10.3 | 12.9 | 15.7 | |
Actuarial loss (gain) | 55.6 | (19) | ||
Participants’ contributions | 0.1 | 0.2 | ||
Benefits paid | (13) | (15.9) | ||
Curtailment gain | (0.6) | 0 | ||
Plan amendments | 0 | 0 | ||
Foreign exchange rate changes | (55.2) | (23.8) | ||
Projected benefit obligation at end of year | 345.1 | 347.1 | 391.8 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 318.9 | 351.2 | ||
Actual return on plan assets | 41.8 | (0.8) | ||
Employer contributions | 4.9 | 5.4 | ||
Participants’ contributions | 0.1 | 0.2 | ||
Benefits paid | (13) | (15.9) | ||
Foreign exchange rate changes | (50) | (21.2) | ||
Fair value of plan assets at end of year | 302.7 | 318.9 | 351.2 | |
Funded status (Fair value of plan assets less PBO) | (42.4) | (28.2) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0.3 | 0.9 | ||
Other current liabilities | 0.4 | 0.4 | ||
Pension and post-retirement benefit obligations | [1] | 42.3 | 28.7 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 83.7 | 75 | ||
Unrecognized prior service cost (credit) | (0.2) | (0.3) | ||
Post-retirement | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 8.1 | 12.2 | ||
Service cost | 0.1 | 0.1 | 0.2 | |
Interest cost | 0.2 | 0.4 | 0.5 | |
Actuarial loss (gain) | (0.2) | (3.4) | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (0.5) | (0.5) | ||
Curtailment gain | (0.8) | 0 | ||
Plan amendments | 0 | (0.2) | ||
Foreign exchange rate changes | (0.3) | (0.6) | ||
Projected benefit obligation at end of year | 6.7 | 8.1 | 12.2 | |
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 | 0.4 | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (0.5) | (0.5) | ||
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) | (6.7) | (8.1) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0 | 0 | ||
Other current liabilities | 0.6 | 0.6 | ||
Pension and post-retirement benefit obligations | [1] | 6.1 | 7.5 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | (3.5) | (4.2) | ||
Unrecognized prior service cost (credit) | $ (0.2) | $ (0.2) | ||
[1] | Pension and post-retirement obligations of $98.0 million as of December 31, 2016, increased from $89.1 million as of December 31, 2015, primarily due to lower discount rates compared to prior year assumptions for the U.K. plan. |
Pension and Other Retiree Ben60
Pension and Other Retiree Benefits (Amounts in Accumulated Other Comprehensive Income) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | $ 2 |
Prior service cost | 0.4 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 2.4 |
International | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | 2.9 |
Prior service cost | 0 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 2.9 |
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 Ben61
Pension and Other Retiree Benefits (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 200.1 | $ 198.7 |
Accumulated benefit obligation | 198.3 | 196.1 |
Fair value of plan assets | 150.5 | 145.8 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 326.9 | 334.1 |
Accumulated benefit obligation | 320.4 | 324.7 |
Fair value of plan assets | $ 284.2 | $ 305 |
Canada | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of plans with plan assets in excess of projected benefit obligations | 1 |
Pension and Other Retiree Ben62
Pension and Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.3 | $ 1.6 | $ 2.1 |
Interest cost | 7.3 | 8.7 | 8.6 |
Expected return on plan assets | (11.9) | (12.2) | (12) |
Amortization of net loss (gain) | 1.8 | 2.1 | 5.1 |
Amortization of prior service cost (credit) | 0.4 | 0.4 | 0.4 |
Curtailment gain | 0 | 0 | 0 |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit (income) cost | (1.1) | 0.6 | 4.2 |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.8 | 0.9 | 0.8 |
Interest cost | 10.3 | 12.9 | 15.7 |
Expected return on plan assets | (17.6) | (21.9) | (22.8) |
Amortization of net loss (gain) | 2.3 | 2.4 | 1.9 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit (income) cost | (4.2) | (5.7) | (4.4) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 0.2 | 0.4 | 0.5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss (gain) | (0.4) | (0.4) | (1.1) |
Amortization of prior service cost (credit) | 0 | (0.3) | 0 |
Curtailment gain | (0.6) | 0 | 0 |
Settlement gain | 0 | (0.5) | (0.1) |
Net periodic benefit (income) cost | $ (0.7) | $ (0.7) | $ (0.5) |
Pension and Other Retiree Ben63
Pension and Other Retiree Benefits (Other Changes Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 0.9 | $ 7.1 | $ 35.4 |
Amortization of actuarial (loss) gain | (1.8) | (2.1) | (5.1) |
Current year prior service (credit) cost | 0 | 0 | 0 |
Amortization of prior service (cost) credit | (0.4) | (0.4) | (0.4) |
Foreign exchange rate changes | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (1.3) | 4.6 | 29.9 |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | (2.4) | 5.2 | 34.1 |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 27.9 | 3.8 | 27.3 |
Amortization of actuarial (loss) gain | (2.3) | (2.4) | (1.9) |
Current year prior service (credit) cost | 0 | 0 | (0.2) |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Foreign exchange rate changes | (15.5) | (5.6) | (6.8) |
Total recognized in other comprehensive income (loss) | 10.1 | (4.2) | 18.4 |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | 5.9 | (9.9) | 14 |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | (1) | (3.4) | (0.3) |
Amortization of actuarial (loss) gain | 1 | 0.9 | 1.1 |
Current year prior service (credit) cost | 0 | (0.2) | (0.3) |
Amortization of prior service (cost) credit | 0 | 0.3 | 0 |
Foreign exchange rate changes | 0.5 | 0.1 | 0.1 |
Total recognized in other comprehensive income (loss) | 0.5 | (2.3) | 0.6 |
Total recognized in net periodic benefit cost (credit) and other comprehensive income (loss) | $ (0.2) | $ (3) | $ 0.1 |
Pension and Other Retiree Ben64
Pension and Other Retiree Benefits (Weighted Average Assumptions Used in Calculating Benefit Obligation) (Details) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.30% | 4.60% | 4.20% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.70% | 3.70% | 3.40% |
Rate of compensation increase | 3.10% | 3.00% | 3.30% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.40% | 3.90% | 3.70% |
Pension and Other Retiree Ben65
Pension and Other Retiree Benefits (Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.60% | 4.20% | 5.00% |
Expected long-term rate of return | 7.80% | 8.00% | 8.20% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 3.40% | 4.30% |
Expected long-term rate of return | 6.00% | 6.50% | 6.80% |
Rate of compensation increase | 3.00% | 3.00% | 3.30% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.90% | 3.70% | 4.40% |
Pension and Other Retiree Ben66
Pension and Other Retiree Benefits (Assumed Health Care Cost Trend Rates) (Details) - Post-retirement | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 8.00% | 7.00% | 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 | 2,025 | 2,024 | 2,023 |
Pension and Other Retiree Ben67
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, 2016USD ($) | |
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 |
Effect of one percentage point decrease on total of service and interest cost | 0 |
Effect of one percentage point increase on post-retirement benefit obligation | 0.5 |
Effect of one percentage point decrease on post-retirement benefit obligation | $ (0.4) |
Pension and Other Retiree Ben68
Pension and Other Retiree Benefits (Weighted Average Asset Allocation) (Details) | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | 68.00% | 61.00% | |
U.S. | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 25.00% | 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] | 7.00% | 8.00% |
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 | 33.00% | 45.00% | |
International | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 51.00% | 39.00% | |
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 3.00% | 4.00% | |
International | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 13.00% | 12.00% |
[1] | Insurance contracts, multi-strategy hedge funds and cash and cash equivalents for certain of our plans. |
Pension and Other Retiree Ben69
Pension and Other Retiree Benefits (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 150.5 | $ 145.8 | $ 163.9 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 102.8 | 89.5 | ||
U.S. | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 38.2 | 47.1 | ||
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 | |||
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 | |||
U.S. | Common stocks | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Common stocks | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Mutual funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 89.3 | 82.6 | ||
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 | 89.3 | 82.6 | ||
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. | Exchange traded funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 13.5 | |||
U.S. | Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 13.5 | |||
U.S. | Exchange traded funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Exchange traded funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Common collective trust funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 7.9 | 2.1 | ||
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 | 7.9 | 2.1 | ||
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 | |||
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 | |||
U.S. | Government debt securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3.1 | |||
U.S. | Government debt securities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16.3 | 19 | ||
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 | 16.3 | 19 | ||
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 | 3.4 | 8.8 | ||
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 | 3.4 | 8.8 | ||
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 | [1] | 9.5 | 9.2 | |
U.S. | Government mortgage-backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.4 | 7.3 | ||
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 | 5.4 | 7.3 | ||
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 | 5.2 | 6.8 | ||
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 | 5.2 | 6.8 | ||
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 | 302.7 | 318.9 | $ 351.2 | |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 99.7 | 143.8 | ||
International | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 193.4 | 163.8 | ||
International | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0.5 | 1.2 | ||
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 | 0.5 | 1.2 | ||
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 | 99.2 | 142.6 | ||
International | Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 99.2 | 142.6 | ||
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 | 145.3 | 121.6 | ||
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 | 145.3 | 121.6 | ||
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 | 20.2 | 23.7 | ||
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 | 20.2 | 23.7 | ||
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 | 17.8 | 15.3 | ||
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 | 17.8 | 15.3 | ||
International | Insurance contracts | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International | Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 9.6 | 11.3 | |
International | Foreign government debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 10.1 | 3.2 | ||
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 | 10.1 | 3.2 | ||
International | Foreign government debt securities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
[1] | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the table that presents our defined benefit pension and post-retirement plans funded status. |
Pension and Other Retiree Ben70
Pension and Other Retiree Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 23 |
2,017 | 23.7 |
2,018 | 24 |
2,019 | 24.7 |
2,020 | 25.1 |
Years 2022 - 2026 | 134.4 |
Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 0.6 |
2,017 | 0.6 |
2,018 | 0.6 |
2,019 | 0.5 |
2,020 | 0.5 |
Years 2022 - 2026 | $ 2.3 |
Pension and Other Retiree Ben71
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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, 2015 | Dec. 31, 2014 | |
FIP/RP Status | Implemented | ||
Contributions | $ 0.3 | $ 0.3 | $ 0.4 |
Surcharge Imposed | Yes | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Jun. 30, 2017 |
Pension and Other Retiree Ben72
Pension and Other Retiree Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)yr | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | $ 98 | $ 89.1 | ||
Employer contributions | 6.2 | |||
Expected contributions to defined benefit plans for 2017 | 10.7 | |||
Costs related to defined contribution plans | 11.3 | 9.8 | $ 8.6 | |
Defined Contribution Plan, Effect of Significant Changes During Period Affecting Comparability | $ 1.5 | 1.2 | ||
Number of post-retirement plans not frozen to new participants | 1 | |||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | [1] | $ 49.6 | 52.9 | |
Employer contributions | $ 0.9 | 1.3 | ||
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] | $ 42.3 | 28.7 | |
Employer contributions | 4.9 | 5.4 | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 536.8 | $ 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 $98.0 million as of December 31, 2016, increased from $89.1 million as of December 31, 2015, primarily due to lower discount rates compared to prior year assumptions for the U.K. plan. |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-Based Compensation Expense by Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (19.4) | $ (16) | $ (15.7) |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | (7) | (5.7) | (5.7) |
Allocated Share-based Compensation Expense, Net of Tax | (12.4) | (10.3) | (10) |
Advertising, selling, general and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (19.4) | $ (16) | $ (15.7) |
Stock-Based Compensation (Sha74
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19.4 | $ 16 | $ 15.7 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.9 | 3.9 | 3.7 |
RSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4.5 | 4.7 | 6.6 |
PSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 12 | $ 7.4 | $ 5.4 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 1.7 |
Weighted average years expense to be recognized over | 9 months 30 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 3.6 |
Weighted average years expense to be recognized over | 1 year 7 months 26 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 10.1 |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected lives | 4 years 6 months | 4 years 6 months |
Weighted average risk-free interest rate | 1.47% | 1.33% |
Weighted average expected volatility | 46.50% | 52.20% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average grant date fair value | $ 3 | $ 2.69 |
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, 2016USD ($)$ / sharesshares | |
Number Outstanding [Roll Forward] | |
Outstanding at December 31, 2015 | shares | 5,583,531 |
Exercised | shares | (1,359,515) |
Lapsed | shares | (90,142) |
Outstanding at December 31, 2016 | shares | 4,133,874 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2015 | $ / shares | $ 7.20 |
Exercised | $ / shares | 5.30 |
Lapsed | $ / shares | 7.35 |
Outstanding at December 31, 2016 | $ / shares | $ 7.82 |
Outstanding at December 31, 2016, Weighted Average Remaining Contractual Term | 3 years 9 months 6 days |
Outstanding at December 31, 2016, Aggregate Intrinsic Value | $ | $ 21.6 |
Options/SSARs vested or expected to vest, Number Outstanding | shares | 4,099,827 |
Options/SSARs vested or expected to vest, Weighted Average Exercise Price | $ / shares | $ 7.83 |
Options/SSARs vested or expected to vest, Weighted Average Remaining Contractual Term | 3 years 9 months 3 days |
Options/SSARs vested or expected to vest, Aggregate Intrinsic Value | $ | $ 21.4 |
Exercisable shares at December 31, 2016 | shares | 2,782,697 |
Exercisable shares at December 31, 2016, Weighted Average Exercise Price | $ / shares | $ 8.20 |
Exercisable shares at December 31, 2016, Weighted Average Contractual Term | 3 years 2 months 27 days |
Exercisable shares at December 31, 2016, Aggregate Intrinsic Value | $ | $ 13.5 |
Stock-Based Compensation (Sto78
Stock-Based Compensation (Stock Units Rollforward) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
RSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2015 | 2,007,127 | |||
Granted | 516,739 | 668,619 | 881,554 | |
Vested and distributed | (577,997) | |||
Forfeited | (35,200) | |||
Outstanding at December 31, 2016 | 1,910,669 | 2,007,127 | ||
Vested and deferred RSUs related to deferred compensation for non-employee directors | [1] | 295,453 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $ 7.11 | |||
Granted, Weighted Average Grant Date Fair Value | 8.05 | $ 7.58 | $ 6.12 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 7.56 | |||
Forfeited, Weighted Average Grant Date Fair Value | 6.88 | |||
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | 7.23 | $ 7.11 | ||
Weighted Average Grant Date Fair Value of Vested and Deferred RSUs | $ 8.51 | |||
PSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2015 | 3,197,735 | |||
Granted | 1,013,242 | 1,017,702 | 1,316,867 | |
Vested and distributed | (1,072,692) | (697,172) | (496,926) | |
Forfeited | (58,959) | |||
Other - increase due to performance of PSU's | 1,202,466 | |||
Outstanding at December 31, 2016 | 4,281,792 | 3,197,735 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $ 7.07 | |||
Granted, Weighted Average Grant Date Fair Value | 7.65 | $ 7.52 | $ 6.14 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 7.58 | |||
Forfeited, Weighted Average Grant Date Fair Value | 7.21 | |||
Other decrease due to performance of PSU's, Weighted Average Grant Date Fair Value | 7.08 | |||
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | $ 7.09 | $ 7.07 | ||
[1] | Included in outstanding at December 31, 2016. Vested and 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, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / 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 | 4.1 | $ 3.8 | $ 3.2 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock options exercised | 6.8 | 0.7 | 0.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 3.5 | 0.7 | |
Unrecognized compensation expense | $ 1.7 | ||
Weighted average years expense to be recognized over | 9 months 30 days | ||
Stock-settled stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2.9 | $ 2 | $ 3.6 |
Stock Options and SSARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 4,133,874 | 5,583,531 | |
Award vesting period | 3 years | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 3.6 | ||
Weighted average years expense to be recognized over | 1 year 7 months 26 days | ||
Shares outstanding | shares | 1,910,669 | 2,007,127 | |
Weighted average grant date fair value | $ / shares | $ 8.05 | $ 7.58 | $ 6.12 |
Fair value of stock awards vested | $ 5.2 | $ 10.3 | $ 3.2 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 10.1 | ||
Weighted average years expense to be recognized over | 1 year 8 months 6 days | ||
Shares outstanding | shares | 4,281,792 | 3,197,735 | |
Weighted average grant date fair value | $ / shares | $ 7.65 | $ 7.52 | $ 6.14 |
Fair value of stock awards vested | $ 8.1 | $ 5.4 | $ 4.4 |
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 | 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 | $ 0.9 | $ 0.8 | $ 0.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 30.3 | $ 33.3 |
Work in process | 3 | 2.6 |
Finished goods | 176.7 | 167.7 |
Total inventories | $ 210 | $ 203.6 |
Property, Plant and Equipment81
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 528 | $ 526.1 | ||
Less: accumulated depreciation | (329.6) | (317) | ||
Property, plant and equipment, net | [1] | 198.4 | 209.1 | |
Computer software included in net property, plant and equipment | 34.7 | 40.7 | ||
Amortization of software costs | 7 | 6.1 | $ 7.4 | |
Land and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 18.9 | 17.6 | ||
Building and improvements to leaseholds | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 119.1 | 120 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 382 | 358.5 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 8 | $ 30 | ||
[1] | Net property, plant and equipment as of December 31, 2016 and 2015 contained $34.7 million and $40.7 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $7.0 million, $6.1 million and $7.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Goodwill and Identifiable Int82
Goodwill and Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 496.9 | $ 544.9 | ||
Goodwill, Purchase Accounting Adjustments | 80.5 | |||
Translation | 9.7 | (48) | ||
Ending Balance | 587.1 | 496.9 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | $ 802.2 | |||
Accumulated impairment losses | (215.1) | |||
Goodwill | 496.9 | 544.9 | 587.1 | |
Goodwill, Impairment Loss | $ 0 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
ACCO Brands North America | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 377.5 | 387.6 | ||
Goodwill, Purchase Accounting Adjustments | 0 | |||
Translation | 1.5 | (10.1) | ||
Ending Balance | 379 | 377.5 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | 509.9 | |||
Accumulated impairment losses | (130.9) | |||
Goodwill | 377.5 | 387.6 | 379 | |
ACCO Brands International | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 112.6 | 150.5 | ||
Goodwill, Purchase Accounting Adjustments | 80.5 | |||
Translation | 8.2 | (37.9) | ||
Ending Balance | 201.3 | 112.6 | ||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Goodwill | 285.5 | |||
Accumulated impairment losses | (84.2) | |||
Goodwill | 112.6 | 150.5 | 201.3 | |
Computer Products Group | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 6.8 | 6.8 | ||
Goodwill, Purchase Accounting Adjustments | 0 | |||
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 | |
Mead Trade Name | ||||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Hilroy Trade Name | ||||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Customer and contractual relationships | Pelikan Artline Pty Ltd | ||||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||
Minimum | Trade Names | Pelikan Artline Pty Ltd | ||||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||
Maximum | Trade Names | Pelikan Artline Pty Ltd | ||||
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Finite-Lived Intangible Asset, Useful Life | 30 years |
Goodwill and Identifiable Int83
Goodwill and Identifiable Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | ||
Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Amortizable intangible assets, Gross Carrying Amounts | $ 218.4 | $ 249.5 | ||
Amortizable intangible assets, Accumulated Amortization | (124.8) | (122.6) | ||
Amortizable intangible assets, Net Book Value | 93.6 | 126.9 | ||
Total identifiable intangible Assets, Gross | 690.2 | 732.8 | ||
Total identifiable intangibles, Accumulated Amortization | (169.3) | (167.1) | ||
Total identifiable intangibles, Net Book Value | 520.9 | 565.7 | ||
Trade Names | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 122.6 | 121.2 | ||
Amortizable intangible assets, Accumulated Amortization | (61.7) | (48.8) | ||
Amortizable intangible assets, Net Book Value | 60.9 | 72.4 | ||
Customer and contractual relationships | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 95.8 | 128.3 | ||
Amortizable intangible assets, Accumulated Amortization | (63.1) | (73.8) | ||
Amortizable intangible assets, Net Book Value | 32.7 | 54.5 | ||
Trade Names | ||||
Intangible Assets [Line Items] | ||||
Indefinite Lived Trade Names Gross | 471.8 | 483.3 | ||
Indefinite-lived intangible assets, Accumulated Amortization | [1] | (44.5) | (44.5) | |
Indefinite-Lived Intangible Assets (Trade names) | 427.3 | $ 438.8 | ||
Mead Trade Name | ||||
Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Long-term growth rate | 1.50% | |||
Discount rate | 10.00% | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Indefinite-Lived Intangible Assets (Trade names) | $ 113.3 | |||
Hilroy Trade Name | ||||
Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Long-term growth rate | 1.50% | |||
Discount rate | 10.50% | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Indefinite-Lived Intangible Assets (Trade names) | $ 11.8 | |||
Brazil | Tilibra Trade name | ||||
Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Long-term growth rate | 6.50% | |||
Discount rate | 14.50% | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Indefinite-Lived Intangible Assets (Trade names) | $ 63 | |||
[1] | Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. |
Goodwill And Identifiable Int84
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangibles | $ 21.6 | $ 19.6 | $ 22.2 | |
Estimated amortization expense, 2017 | [1] | 20.1 | ||
Estimated amortization expense, 2018 | [1] | 17.5 | ||
Estimated amortization expense, 2019 | [1] | 15 | ||
Estimated amortization expense, 2020 | [1] | 12.4 | ||
Estimated amortization expense, 2021 | [1] | $ 9.9 | ||
[1] | 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. |
Goodwill and Identifiable Int85
Goodwill and Identifiable Intangibles Acquired Finite-Lived Intangibles (Details) (Details) - Pelikan Artline Pty Ltd $ in Millions | May 02, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangibles | $ 58 |
Customer and contractual relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangibles | 36 |
Trade Names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangibles | $ 22 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net cash proceeds from sale | $ 0.7 | $ 2.8 | $ 3.8 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 1 | 8.4 | 20.5 | |
Provision/(credits) | 5.4 | (0.4) | 5.5 | |
Cash expenditures | (4.9) | (6.7) | (16.9) | |
Non-cash Items/ Currency Change | (0.3) | (0.7) | ||
Balance at end of period | 1.5 | 1 | 8.4 | |
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0.9 | 7.8 | 19.1 | |
Provision/(credits) | 5.2 | (0.6) | 4.3 | |
Cash expenditures | (4.7) | (6) | (15.3) | |
Non-cash Items/ Currency Change | (0.3) | (0.3) | ||
Balance at end of period | $ 1.4 | 0.9 | 7.8 | |
Period over which restructuring and related costs are to be paid | 12 months | |||
Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0.1 | 0.6 | 1.4 | |
Provision/(credits) | 0.2 | 0.2 | 0.5 | |
Cash expenditures | (0.2) | (0.7) | (1.5) | |
Non-cash Items/ Currency Change | 0 | 0.2 | ||
Balance at end of period | 0.1 | 0.1 | 0.6 | |
Termination of lease agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 1 | |||
IT Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | $ 0.7 | |||
Asset impairment/net loss on disposal of assets resulting from restructuring activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | 0 | ||
Provision/(credits) | 0.6 | |||
Cash expenditures | 0 | |||
Non-cash Items/ Currency Change | (0.6) | |||
Balance at end of period | 0 | |||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0 | 0 | ||
Provision/(credits) | 0.1 | |||
Cash expenditures | (0.1) | |||
Non-cash Items/ Currency Change | 0 | |||
Balance at end of period | 0 | |||
Buildings | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net cash proceeds from sale | $ 1 | $ 3.2 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 33.9 | $ 60.9 | $ 43.5 |
Foreign operations | 91.2 | 70.5 | 93.5 |
Income before income tax | $ 125.1 | $ 131.4 | $ 137 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at U.S. statutory rate of 35% | $ 43.8 | $ 46 | $ 47.9 |
State, local and other tax, net of federal benefit | 2.4 | 2.1 | 2.1 |
U.S. effect of foreign dividends and withholding taxes | 4.6 | 3.9 | 7.4 |
Unrealized foreign currency expense (benefit) on intercompany debt | 0.7 | (0.7) | (3) |
Realized foreign exchange net loss on intercompany loans | (9.6) | 0 | 0 |
Revaluation of previously held equity interest | (12) | 0 | 0 |
Foreign income taxed at a lower effective rate | (4.6) | (5.6) | (8.6) |
Interest on Brazilian Tax Assessment | 2.8 | 2.7 | 3.2 |
Expiration of tax credits | 10.9 | 1 | 11.7 |
Decrease in valuation allowance | (9.9) | (1.3) | (11.5) |
Other | 0.5 | (2.6) | (3.8) |
Income tax expense | $ 29.6 | $ 45.5 | $ 45.4 |
Effective income tax rate | 23.70% | 34.60% | 33.10% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | |||||
Income tax expense | $ 29.6 | $ 45.5 | $ 45.4 | ||
Income (loss) from continuing operations before income tax | $ 125.1 | $ 131.4 | $ 137 | ||
Effective tax rate | 23.70% | 34.60% | 33.10% | ||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | $ 12 | $ 0 | $ 0 | ||
U.S. statutory rate | 35.00% | 35.00% | 35.00% | ||
Realized Foreign Exchange Loss on Intercompany Loan | $ 9.6 | $ 0 | $ 0 | ||
Expiration of tax credits | 10.9 | 1 | 11.7 | ||
Undistributed earnings of foreign subsidiaries | 555 | 540 | |||
Operating loss carryforwards | 135 | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | 12.5 | ||||
Unrecognized tax benefits | 43.7 | 34.8 | 45.9 | $ 52.1 | |
Unrecognized tax benefits that would impact effective tax rate | $ 42 | ||||
Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards, expiration year | 2,017 | ||||
Latest tax year | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards, expiration year | 2,031 | ||||
State and Local Jurisdiction | Minimum | |||||
Income Tax Examination [Line Items] | |||||
Statutes of limitation, period | 2 years | ||||
State and Local Jurisdiction | Maximum | |||||
Income Tax Examination [Line Items] | |||||
Statutes of limitation, period | 5 years | ||||
Foreign Tax Authority | Minimum | |||||
Income Tax Examination [Line Items] | |||||
Statutes of limitation, period | 2 years | ||||
Foreign Tax Authority | Maximum | |||||
Income Tax Examination [Line Items] | |||||
Statutes of limitation, period | 5 years | ||||
Foreign Tax Authority | Australian Taxation Office | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Open tax year | 2,012 | ||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Income Tax Examination [Line Items] | |||||
Penalty rate | 75.00% | ||||
Potential penalty rate | 150.00% | ||||
Income tax examination, interest expense | $ 2.8 | 2.7 | 3.2 | ||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Open tax year | 2,011 | ||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2007-2012 | |||||
Income Tax Examination [Line Items] | |||||
Income tax contingency, potential Brazilian assessment | $ 37.3 | $ 44.5 | |||
Potential tax assessment, accrued reserve related to fair value of liabilities acquired | $ 43.3 | ||||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Open tax year | 2,008 | ||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Open tax year | 2,014 | ||||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Open tax year | 2,013 | ||||
U.S. state and foreign jurisdictions | |||||
Income Tax Examination [Line Items] | |||||
Net tax (benefit) expense from release and generation of valuation allowances | $ (0.7) | $ (0.3) | $ 0.2 | ||
Pelikan Artline Pty Ltd | |||||
Income Tax Examination [Line Items] | |||||
Revaluation gain/loss on previously held joint-venture equity interest | $ 28.9 |
Income Taxes (Components of I90
Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current expense | |||
Federal and other | $ 0.7 | $ 2.1 | $ 1.6 |
Foreign | 22.9 | 16 | 23.2 |
Total current income tax expense | 23.6 | 18.1 | 24.8 |
Deferred expense (benefit) | |||
Federal and other | 3.5 | 22.8 | 15.4 |
Foreign | 2.5 | 4.6 | 5.2 |
Total deferred income tax expense | 6 | 27.4 | 20.6 |
Income tax expense | $ 29.6 | $ 45.5 | $ 45.4 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Compensation and benefits | $ 20.7 | $ 17.3 |
Pension | 28.6 | 27.9 |
Inventory | 12.4 | 11.4 |
Other reserves | 19.1 | 17.1 |
Accounts receivable | 7 | 7.7 |
Foreign tax credit carryforwards | 0 | 10.9 |
Net operating loss carryforwards | 47.2 | 56.9 |
Unrealized foreign currency loss on intercompany debt | 0 | 3 |
Other | 10.3 | 9.4 |
Gross deferred income tax assets | 145.3 | 161.6 |
Valuation allowance | (11.7) | (22.1) |
Net deferred tax assets | 133.6 | 139.5 |
Deferred tax liabilities | ||
Depreciation | (12.6) | (16) |
Identifiable intangible | (240.4) | (240.7) |
Gross deferred tax liabilities | (253) | (256.7) |
Net deferred tax liabilities | $ (119.4) | $ (117.2) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 34.8 | $ 45.9 | $ 52.1 |
Additions for tax positions of prior years | 3 | 3 | 3.5 |
Reductions for tax positions of prior years | (0.5) | 0 | (4.2) |
Increase resulting from foreign currency translation | 6.4 | 0 | 0 |
Decrease resulting from foreign currency translation | 0 | (14.1) | (5.5) |
Balance at end of year | $ 43.7 | $ 34.8 | $ 45.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | |||
Common stock, shares, outstanding | 107,906,644 | 105,640,003 | |
Repurchased and retired common stock | 0 | 7,690,628 | 2,755,642 |
Treasury Stock, Shares, Acquired | 700,000 | 700,000 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted-average number of common shares outstanding - basic | 107,000,000 | 108,800,000 | 113,700,000 |
Adjusted weighted average shares and assumed conversions - diluted | 109,200,000 | 110,600,000 | 116,300,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 3,600,000 | 5,500,000 | 4,300,000 |
Stock options | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 800,000 | 200,000 | 100,000 |
Stock-settled stock appreciation rights | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 0 | 300,000 | 600,000 |
Restricted stock units | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 1,400,000 | 1,300,000 | 1,900,000 |
Derivative Financial Instrume94
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 52.1 | $ 33.3 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 76.5 | $ 68.2 |
Derivative Financial Instrume95
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 4.4 | $ 2.6 |
Derivative Liabilities | 0.3 | 0.4 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4 | 1.9 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0.3 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.4 | 0.7 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0.3 | $ 0.1 |
Derivative Financial Instrume96
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives not designated as hedging instruments | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (2) | $ (0.5) | $ 1.3 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (0.1) | 8.2 | 6.9 |
Cash Flow Hedging | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Reclassified from OCI (Effective Portion) | $ 2.5 | $ (10.9) | $ (3.5) |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value of total debt | $ 708.4 | $ 740.3 |
Forward currency contracts, assets | 4.4 | 2.6 |
Forward currency contracts, liabilities | $ 0.3 | $ 0.4 |
Fair Value Of Financial Instr98
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months | |
Total debt | $ 703.5 | $ 729 |
Accumulated Other Comprehensi99
Accumulated Other Comprehensive Income (Loss) (Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (429.2) | $ (292.6) |
Other comprehensive income (loss) before reclassifications, net of tax | 5.3 | (131.4) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 4.5 | (5.2) |
Ending Balance | (419.4) | (429.2) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 0.8 | 2.7 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 5.8 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1.7 | (7.7) |
Ending Balance | 2.5 | 0.8 |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (302.7) | (166) |
Other comprehensive income (loss) before reclassifications, net of tax | 16.8 | (136.7) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Ending Balance | (285.9) | (302.7) |
Unrecognized Pension and Other Post-retirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (127.3) | (129.3) |
Other comprehensive income (loss) before reclassifications, net of tax | (11.5) | (0.5) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 2.8 | 2.5 |
Ending Balance | $ (136) | $ (127.3) |
Accumulated Other Comprehens100
Accumulated Other Comprehensive Income (Loss) (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Cost of products sold | $ (1,042) | $ (1,032) | $ (1,159.3) | |
Income tax expense (benefit) | (29.6) | (45.5) | (45.4) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Net of tax | (4.5) | 5.2 | (1.6) | |
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 | (2.4) | 10.9 | 3.5 | |
Income tax expense (benefit) | 0.7 | (3.2) | (1) | |
Net of tax | (1.7) | 7.7 | 2.5 | |
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] | (3.1) | (3.6) | (5.9) |
Amortization of prior service cost included in net income | [1] | (0.4) | (0.1) | (0.3) |
Total before tax | (3.5) | (3.7) | (6.2) | |
Income tax expense (benefit) | 0.7 | 1.2 | 2.1 | |
Net of tax | $ (2.8) | $ (2.5) | $ (4.1) | |
[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 5. Pension and Other Retiree Benefits" for additional details) |
Information on Business Segm101
Information on Business Segments (Net Sales by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 437.6 | $ 431.3 | $ 410.1 | $ 278.1 | $ 412.1 | $ 413.6 | $ 394.7 | $ 290 | $ 1,557.1 | $ 1,510.4 | $ 1,689.2 | ||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 955.5 | 963.3 | 1,006 | ||||||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 485 | 426.9 | 546.9 | ||||||||||||||||
Computer Products Group | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 116.6 | $ 120.2 | $ 136.3 | ||||||||||||||||
[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) we are a major supplier 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® 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 Segm102
Information on Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 59.7 | $ 55.7 | $ 45.4 | $ 6.5 | $ 56.9 | $ 54.8 | $ 49.2 | $ 2.6 | $ 167.3 | [1] | $ 163.5 | [1] | $ 173.6 | [1] | |
Interest expense | 49.3 | 44.5 | 49.5 | ||||||||||||
Interest income | (6.4) | (6.6) | (5.6) | ||||||||||||
Equity in earnings of joint venture | (2.1) | (7.9) | (8.1) | ||||||||||||
Other expense, net | 1.4 | 2.1 | 0.8 | ||||||||||||
Income (loss) from continuing operations before income tax | 125.1 | 131.4 | 137 | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | [1] | 215.3 | 198.7 | 211.8 | |||||||||||
Corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | [2] | (48) | (35.2) | (38.2) | |||||||||||
Transaction Related Costs | 10.5 | 0.6 | |||||||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 150.6 | 147.6 | 140.7 | ||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 53.1 | 40.8 | 62.9 | ||||||||||||
Computer Products Group | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 11.6 | $ 10.3 | $ 8.2 | ||||||||||||
[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. | ||||||||||||||
[2] | Corporate operating income in 2016 includes transaction costs of $10.5 million, primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. In 2015 this was $0.6 million. |
Information on Business Segm103
Information on Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 2,064.5 | $ 1,953.4 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 831.7 | 810.3 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,232 | 1,142 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 0.8 | 1.1 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 378.1 | 413.8 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 397.2 | 335 |
Computer Products Group | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 56.4 | $ 61.5 |
[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 Segm104
Information on Business Segments (Identifiable Intangibles and Goodwill by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 2,064.5 | $ 1,953.4 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 1,984.5 | 1,828.1 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 79.2 | 124.2 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 0.8 | 1.1 |
ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1,171.3 | 1,220.7 |
ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 742.6 | 531.5 |
Computer Products Group | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | $ 70.6 | $ 75.9 |
[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 Segm105
Information on Business Segments (Property, Plant and Equipment by Country) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | [1] | $ 198.4 | $ 209.1 |
Reportable Geographical Components [Member] | U.S. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 103 | 111.5 | |
Reportable Geographical Components [Member] | Brazil | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 36.8 | 31.9 | |
Reportable Geographical Components [Member] | U.K. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 30.3 | 38.9 | |
Reportable Geographical Components [Member] | Australia | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 12.5 | 10.6 | |
Reportable Geographical Components [Member] | Other countries | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 15.8 | $ 16.2 | |
[1] | Net property, plant and equipment as of December 31, 2016 and 2015 contained $34.7 million and $40.7 million of computer software assets, which are classified within machinery and equipment and construction in progress. Amortization of software costs was $7.0 million, $6.1 million and $7.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Information on Business Segm106
Information on Business Segments (Revenue by Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | $ 437.6 | $ 431.3 | $ 410.1 | $ 278.1 | $ 412.1 | $ 413.6 | $ 394.7 | $ 290 | $ 1,557.1 | $ 1,510.4 | $ 1,689.2 | |||||||||
Reportable Geographical Components [Member] | U.S. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 894.4 | 904.3 | 921 | ||||||||||||||||
Reportable Geographical Components [Member] | Australia | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 156.5 | 91.8 | 108.5 | ||||||||||||||||
Reportable Geographical Components [Member] | Canada | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 121.7 | 121.4 | 150.6 | ||||||||||||||||
Reportable Geographical Components [Member] | Brazil | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 102.6 | 92 | 154 | ||||||||||||||||
Reportable Geographical Components [Member] | Netherlands | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 101.4 | 108.7 | 130.2 | ||||||||||||||||
Reportable Geographical Components [Member] | U.K. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 59.1 | 76.4 | 89.1 | ||||||||||||||||
Reportable Geographical Components [Member] | Mexico | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 47.3 | 49.6 | 58.8 | ||||||||||||||||
Reportable Geographical Components [Member] | Other countries | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 74.1 | $ 66.2 | $ 77 | ||||||||||||||||
[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) we are a major supplier 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® 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 Segm107
Information on Business Segments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
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 | $ 663.5 | $ 637.7 | $ 706 |
Sales Revenue, Net | Staples | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 210.5 | $ 204.1 | $ 224.1 |
Concentration risk, percentage | 14.00% | 14.00% | 13.00% |
Sales Revenue, Net | Wal-Mart | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 161.7 | ||
Concentration risk, percentage | 10.00% | ||
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 | $ 162.2 | $ 152.3 |
Joint Venture Investment (Detai
Joint Venture Investment (Details) - Pelikan Artline Pty Ltd - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Net sales | $ 34.9 | $ 111.2 | $ 121.4 |
Gross profit | 14.1 | 45.5 | 48.2 |
Net income | $ 4.1 | 15.8 | $ 16.4 |
Current assets | 76.6 | ||
Non-current assets | 43.6 | ||
Current liabilities | 37.5 | ||
Non-current liabilities | $ 13.1 |
Commitments and Contingencie109
Commitments and Contingencies (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 22.2 | ||
2,018 | 18.5 | ||
2,019 | 16.6 | ||
2,020 | 15.1 | ||
2,021 | 12.2 | ||
Thereafter | 15.8 | ||
Total minimum rental payments | 100.4 | ||
Less minimum rentals to be received under non-cancelable subleases | 2.8 | ||
Future minimum payments for operating leases, net of sublease rental income | 97.6 | ||
Total rental expense | $ 24.2 | $ 21.2 | $ 23.1 |
Commitments and Contingencie110
Commitments and Contingencies (Purchase Commitments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 84.8 |
2,018 | 0.7 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total unconditional purchase commitments | $ 85.5 |
Quarterly Financial Informat111
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 437.6 | [1] | $ 431.3 | [1] | $ 410.1 | [1] | $ 278.1 | [1] | $ 412.1 | [1] | $ 413.6 | [1] | $ 394.7 | [1] | $ 290 | [1] | $ 1,557.1 | $ 1,510.4 | $ 1,689.2 | |||
Gross profit | 153.7 | 144.2 | 134.8 | 82.4 | 137.8 | 133.7 | 126.7 | 80.2 | 515.1 | 478.4 | 529.9 | |||||||||||
Operating income | 59.7 | 55.7 | 45.4 | 6.5 | 56.9 | 54.8 | 49.2 | 2.6 | 167.3 | [2] | 163.5 | [2] | 173.6 | [2] | ||||||||
Net income (loss) | $ 6.1 | $ 22.7 | $ 61.9 | $ 4.8 | $ 31.4 | $ 32.6 | $ 27.7 | $ (5.8) | $ 95.5 | $ 85.9 | $ 91.6 | |||||||||||
Basic income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.06 | [3] | $ 0.21 | [3] | $ 0.58 | [3] | $ 0.05 | [3] | $ 0.30 | [3] | $ 0.30 | [3] | $ 0.25 | [3] | $ (0.05) | [3] | $ 0.89 | $ 0.79 | $ 0.81 | |||
Diluted income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.06 | [3] | $ 0.21 | [3] | $ 0.57 | [3] | $ 0.04 | [3] | $ 0.29 | [3] | $ 0.30 | [3] | $ 0.25 | [3] | $ (0.05) | [3] | $ 0.87 | $ 0.78 | $ 0.79 | |||
[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) we are a major supplier 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® 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. |
Subsequent Event (Details)
Subsequent Event (Details) € in Millions, AUD in Millions, $ in Millions | Jan. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Jan. 27, 2017AUD | Jan. 27, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2017EUR (€) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) | May 02, 2016AUD | May 02, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | ||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 703.5 | $ 729 | ||||||||||
Esselte Group Holdings AB | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 317.7 | € 296.9 | ||||||||||
Warranty and indemnity insurance policy | $ 42.8 | € 40 | ||||||||||
Warranty and indemnity insurance policy term | 7 years | 7 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Pensions, net of deferred taxes | $ 160 | |||||||||||
Senior Secured Facility, Third Amended and Restated Credit Agreement [Member] | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Credit agreement, term | 5 years | 5 years | ||||||||||
Secured Debt | Euro Term Loan A [Member] | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Max borrowing capacity | $ 320.8 | € 300 | ||||||||||
Secured Debt | AUD Term Loan A [Member] | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Max borrowing capacity | AUD 80 | 60.4 | ||||||||||
Secured Debt | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016)(1) | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt, Long-term and Short-term, Combined Amount | 70.3 | [1] | AUD 100 | $ 76.6 | 0 | |||||||
Secured Debt | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016)(1) | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Early Repayment of Senior Debt | AUD 80 | $ 60.4 | ||||||||||
Secured Debt | Australian Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 3.27% at December 31, 2016) | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt, Long-term and Short-term, Combined Amount | 87.9 | AUD 152 | $ 116.4 | $ 0 | ||||||||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Max borrowing capacity | 400 | |||||||||||
Proceeds from Lines of Credit | $ 91.3 | |||||||||||
Amount available for borrowings under the Restated Revolver Facility | $ 156.7 | |||||||||||
Advertising, selling, general and administrative expense | Esselte Group Holdings AB | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Business Combination, Acquisition Related Costs | $ 9.2 | |||||||||||
[1] | In connection with the consummation of the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement dated January 27, 2017. See also "Note 20. Subsequent Events" to the consolidated financial statements. |
Valuation and Qualifying Acc113
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Trade Receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 4.8 | $ 5.5 | $ 6.1 |
Additions charged (credited) to expense | 0.2 | 3.2 | 1 |
Deductions | (0.8) | (3.5) | (1.3) |
PA Acquisition | 0.1 | 0 | 0 |
Foreign exchange changes | 0.2 | (0.4) | (0.3) |
Balance at end of year | 4.5 | 4.8 | 5.5 |
Allowance for Sales Returns and Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 11.7 | 12 | 12.9 |
Additions charged (credited) to expense | 22.5 | 30.3 | 37.4 |
Deductions | (24.9) | (30.4) | (38.4) |
Foreign exchange changes | 0.1 | (0.2) | 0.1 |
Balance at end of year | 9.4 | 11.7 | 12 |
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 | 13.6 | 14.2 | 15.5 |
Deductions | (14.1) | (13.9) | (15.6) |
PA Acquisition | 0.2 | 0 | 0 |
Foreign exchange changes | (0.1) | (0.1) | (0.1) |
Balance at end of year | 1.8 | 2.2 | 2 |
Warranty Reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1.7 | 1.8 | 2.2 |
Additions charged (credited) to expense | 2.2 | 1.8 | 2 |
Deductions | (2.2) | (1.8) | (2.4) |
PA Acquisition | 0.3 | 0 | 0 |
Foreign exchange changes | (0.1) | (0.1) | 0 |
Balance at end of year | 1.9 | 1.7 | 1.8 |
Income Tax Valuation Allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 22.1 | 23.9 | 33 |
Additions charged (credited) to expense | (0.7) | (0.3) | 0.2 |
Deductions | (9.3) | (1.1) | (8.7) |
Foreign exchange changes | (0.4) | (0.4) | (0.6) |
Balance at end of year | $ 11.7 | $ 22.1 | $ 23.9 |