Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 07, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 106,406,478 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,226 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 76.9 | $ 42.9 | |
Accounts receivable less allowances for discounts, doubtful accounts and sales returns of $18.1 and $15.7, respectively | 469.3 | 391 | |
Inventories | 254.2 | 210 | |
Other current assets | 29.2 | 26.8 | |
Total current assets | 829.6 | 670.7 | |
Total property, plant and equipment | 645.2 | 528 | |
Less: accumulated depreciation | (366.7) | (329.6) | |
Property, plant and equipment, net | [1] | 278.5 | 198.4 |
Deferred income taxes | 137.9 | 27.3 | |
Goodwill | 670.3 | 587.1 | |
Identifiable intangibles, net of accumulated amortization of $203.7 and $167.1, respectively | 839.9 | 565.7 | |
Other non-current assets | 42.9 | 15.3 | |
Total assets | 2,799.1 | 2,064.5 | |
Current liabilities: | |||
Notes payable | 0 | 63.7 | |
Current portion of long-term debt | 43.2 | 4.8 | |
Accounts payable | 178.2 | 135.1 | |
Accrued compensation | 60.9 | 42.8 | |
Accrued customer program liabilities | 141.1 | 94 | |
Accrued interest | 1.2 | 1.3 | |
Other current liabilities | 113.8 | 64.7 | |
Total current liabilities | 538.4 | 406.4 | |
Long-term debt, net of debt issuance costs of $7.1 and $7.3, respectively | 889.2 | 627.7 | |
Deferred income taxes | 177.1 | 146.7 | |
Pension and post-retirement benefit obligations | 275.5 | 98 | |
Other non-current liabilities | 144.8 | 77 | |
Total liabilities | 2,025 | 1,355.8 | |
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; 109,597,197 and 110,086,283 shares issued and 106,684,084 and 107,906,644 outstanding, respectively | 1.1 | 1.1 | |
Treasury stock, 2,913,113 and 2,179,639 shares, respectively | (26.4) | (17) | |
Paid-in capital | 1,999.7 | 2,015.7 | |
Accumulated other comprehensive loss | (461.1) | (419.4) | |
Accumulated deficit | (739.2) | (871.7) | |
Total stockholders' equity | 774.1 | 708.7 | |
Total liabilities and stockholders' equity | $ 2,799.1 | $ 2,064.5 | |
[1] | Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million, $7.0 million and $6.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable and returns | $ 18.1 | $ 15.7 |
Amortizable intangible assets, accumulated amortization | 203.7 | 167.1 |
Debt Issuance cost, unamortized | $ 7.1 | $ 7.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 109,597,197 | 110,086,283 |
Common stock, shares outstanding | 106,684,084 | 107,906,644 |
Treasury stock, shares | 2,913,113 | 2,179,639 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net sales | $ 1,948.8 | $ 1,557.1 | $ 1,510.4 | |
Cost of products sold | 1,292.4 | 1,042 | 1,032 | |
Gross profit | 656.4 | 515.1 | 478.4 | |
Operating costs and expenses: | ||||
Selling, general and administrative expenses | 406.1 | 320.8 | 295.7 | |
Amortization of intangibles | 35.6 | 21.6 | 19.6 | |
Restructuring charges (credits) | 21.7 | 5.4 | (0.4) | |
Total operating costs and expenses | 463.4 | 347.8 | 314.9 | |
Operating income | [1] | 193 | 167.3 | 163.5 |
Non-operating expense (income): | ||||
Interest expense | 41.1 | 49.3 | 44.5 | |
Interest income | (5.8) | (6.4) | (6.6) | |
Equity in earnings of joint-venture | 0 | (2.1) | (7.9) | |
Other (income) expense, net | (0.4) | 1.4 | 2.1 | |
Income before income tax | 158.1 | 125.1 | 131.4 | |
Income tax expense | 26.4 | 29.6 | 45.5 | |
Net income | $ 131.7 | $ 95.5 | $ 85.9 | |
Basic income per share: | ||||
Basic income per share | $ 1.22 | $ 0.89 | $ 0.79 | |
Diluted income per share: | ||||
Diluted income per share | $ 1.19 | $ 0.87 | $ 0.78 | |
Weighted average number of shares outstanding: | ||||
Basic | 108.1 | 107 | 108.8 | |
Diluted | 110.9 | 109.2 | 110.6 | |
[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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 131.7 | $ 95.5 | $ 85.9 |
Other Comprehensive Income (loss), Derivatives Qualifying as Hedges, Net of Tax | |||
Unrealized (loss) income on derivative instruments, net of tax benefit (expense) of $1.0, $(0.7) and $0.8, respectively | (2.3) | 1.7 | (1.9) |
Foreign currency translation: | |||
Foreign currency translation adjustments, net of tax benefit of $5.0, $0.0 and $0.0, respectively | (19.5) | 16.8 | (136.7) |
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 $5.8, $0.6 and $0.1, respectively | (19.9) | (8.7) | 2 |
Other Comprehensive Income (Loss), Net of Tax | (41.7) | 9.8 | (136.6) |
Comprehensive income (loss) | $ 90 | $ 105.3 | $ (50.7) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 1 | $ (0.7) | $ 0.8 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 5 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 5.8 | $ 0.6 | $ 0.1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 131.7 | $ 95.5 | $ 85.9 |
Gain on revaluation of previously held joint-venture equity interest | 0 | (28.9) | 0 |
Amortization of inventory step-up | 0.9 | 0.4 | 0 |
(Gain) loss on disposal of assets | (1.3) | (0.3) | 0.1 |
Deferred income tax (benefit) expense | (45.2) | 6 | 27.4 |
Insurance claims, net of proceeds | (0.4) | 0 | 0 |
Depreciation | 35.6 | 30.4 | 32.4 |
Amortization of debt issuance costs | 2.9 | 3.8 | 3.5 |
Amortization of intangibles | 35.6 | 21.6 | 19.6 |
Stock-based compensation | 17 | 19.4 | 16 |
Loss on debt extinguishment | 0 | 29.9 | 1.9 |
Other non-cash items | 0 | 0.1 | 0 |
Equity in earnings of joint-venture, net of dividends received | 0 | (1.6) | (3.8) |
Changes in balance sheet items: | |||
Accounts receivable | 10.2 | 13.4 | (3.9) |
Inventories | 2.5 | 16.7 | 9.8 |
Other assets | 4.6 | 5.5 | 1.2 |
Accounts payable | (18.7) | (19.3) | (2.6) |
Accrued expenses and other liabilities | (8.3) | (31.2) | (19.2) |
Accrued income taxes | 37.8 | 5.7 | 2.9 |
Net cash provided by operating activities | 204.9 | 167.1 | 171.2 |
Investing activities | |||
Additions to property, plant and equipment | (31) | (18.5) | (27.6) |
Proceeds from the disposition of assets | 4.2 | 0.7 | 2.8 |
Cost of acquisitions, net of cash acquired | (292.3) | (88.8) | 0 |
Other | 0 | 0.2 | 0.2 |
Net cash used by investing activities | (319.1) | (106.4) | (24.6) |
Financing activities | |||
Proceeds from long-term borrowings | 484.1 | 587.4 | 300 |
Repayments of long-term debt | (296.5) | (685.1) | (370.1) |
Borrowings (repayments) of notes payable, net | 0 | 51.5 | (0.8) |
Payment for debt premium | 0 | (25) | 0 |
Payments for debt issuance costs | (3.6) | (6.9) | (1.7) |
Repurchases of common stock | (36.6) | 0 | (60) |
Payments related to tax withholding for stock-based compensation | (9.4) | (5.1) | (5.9) |
Proceeds from the exercise of stock options | 4.2 | 6.8 | 0.7 |
Net cash provided (used) by financing activities | 142.2 | (76.4) | (137.8) |
Effect of foreign exchange rate changes on cash and cash equivalents | 6 | 3.2 | (6.6) |
Net increase (decrease) in cash and cash equivalents | 34 | (12.5) | 2.2 |
Cash and cash equivalents | |||
Beginning of the period | 42.9 | 55.4 | 53.2 |
End of the period | 76.9 | 42.9 | 55.4 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 38 | 50.1 | 41 |
Income taxes | $ 34.8 | $ 16.9 | $ 16.9 |
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, 2014 | $ 681 | $ 1.1 | $ 2,031.5 | $ (292.6) | $ (5.9) | $ (1,053.1) |
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) |
Balance at start of period (in shares) at Dec. 31, 2014 | 111,911,290 | 112,670,514 | 759,224 | |||
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 |
Adjustment due to the adoption of ASU 2016-09 | 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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 131.7 | $ 0 | 0 | 0 | $ 0 | 131.7 |
Income (loss) on derivative financial instrument, net of tax | (2.3) | 0 | 0 | (2.3) | 0 | 0 |
Translation impact | (19.5) | 0 | 0 | (19.5) | 0 | 0 |
Pension and post-retirement adjustment, net of tax | (19.9) | 0 | 0 | (19.9) | 0 | 0 |
Common stock repurchases | (36.6) | 0 | (36.6) | 0 | 0 | 0 |
Stock-based compensation | 17 | 0 | 17 | 0 | 0 | 0 |
Common stock issued, net of shares withheld for employee taxes | (5.2) | 0 | 4.2 | 0 | (9.4) | 0 |
Adjustment due to the adoption of ASU 2016-09 | 0.2 | 0 | (0.6) | 0 | 0 | 0.8 |
Balance at end of period at Dec. 31, 2017 | $ 774.1 | $ 1.1 | $ 1,999.7 | $ (461.1) | $ (26.4) | $ (739.2) |
Increase (Decrease) In Capital Stock [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | 2,045,321 | 2,778,795 | 733,474 | |||
Common stock repurchases | (3,267,881) | (3,267,881) | 0 | |||
Balance at end of period (in shares) at Dec. 31, 2017 | 106,684,084 | 109,597,197 | 2,913,113 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 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. On January 31, 2017, the Company completed the acquisition (the "Esselte Acquisition") of Esselte Group Holdings AB ("Esselte"). Accordingly, the financial results of Esselte are included in the Company's condensed consolidated financial statements as of February 1, 2017, and are reflected in all three of the Company's reportable segments. See " Note 3. Acquisitions " for details on the Esselte Acquisition. Effective with the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which impacted its determination of its business segments for financial reporting purposes. As a result, the Company no longer reports the financial results of its Computer Products Group as a separate segment. Prior year amounts included herein have been restated to conform to the current year presentation. See " Note 16. Information on Business Segments " for details on the realigned segments. 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, "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. From the date of the PA Acquisition, the results of Pelikan Artline are included in the Company's consolidated financial statements and are reported in the ACCO Brands International segment. Accordingly, we no longer separately report equity in earnings from this joint venture. See " Note 3. Acquisitions " for details on the PA Acquisition. 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, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Nature of Business ACCO Brands is a designer, marketer and manufacturer of recognized consumer and end-user demanded brands used in businesses, schools, and homes. ACCO Brands has three operating business segments each of which is comprised of different geographic regions. Each of the Company's three operating segments designs, markets, sources, manufactures and sells recognized consumer and end-user demanded brands used in businesses, schools and homes. Product designs are tailored based on end-user preferences in each geographic region. Our product categories include storage and organization; stapling; punching; laminating, binding and shredding machines and related consumable supplies; whiteboards; notebooks; calendars; computer accessories; and do-it-yourself tools, among others. Our portfolio of consumer and end-user demanded brands includes both globally and regionally recognized brands. ACCO Brands markets and sells its strong multi-product offering broadly and is not dependent on any one channel. Our products are sold through all relevant channels, namely retailers, including: mass retailers; e-tailers; discount, drug/grocery and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; and contract stationers. We also sell directly to commercial and consumer end-users through our e-commerce platform and our direct sales organization. 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 a customer's 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 formulaic basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with a specific customer. 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 same 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 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 , $0.1 million and $1.3 million for the years ended December 31, 2017 , 2016 and 2015 , 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 test 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 ("Step-Zero") or quantitative ("Step-1") 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 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 our indefinite-lived trade names in the second quarter of 2017 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 Step-1 tests in the second quarter of 2017. The following long-term growth rates and discount rates were used, 1.5% and 10.5% for Mead ® , and 1.5% and 11.0% for Hilroy ® , respectively. We concluded that neither the Mead ® nor Hilroy ® trade names were impaired. The fair value of the Mead ® trade name was less than 30% above its carrying value as of the second quarter of 2017 Step-1 test. As of December 31, 2017 , the carrying value of the Mead ® trade name was $113.3 million . As of June 1, 2017, we changed the indefinite-lived Hilroy ® trade name to an amortizable intangible asset. The change was made as a result of decisions regarding the Company's future use of the trade name. The Company commenced amortizing the Hilroy trade name June 1, 2017 on a straight-line basis over a life of 30 years. 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 ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. 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 ("Step-Zero") 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 a quantitative goodwill impairment test ("Step-1") as required by GAAP. We performed our annual assessment in the second quarter of 2017 , 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 quantitative goodwill ("Step-1") 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, an impairment charge is recognized, however, the loss recognized is not to exceed the total amount of goodwill allocated to the reporting unit. 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 any assessments are received, revised or resolved. On December 22, 2017, the U.S. Tax Act was signed into law. The U.S. Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (i) reducing the future U.S. federal corporate tax rate from 35 percent to 21 percent; (ii) requiring companies to pay a one-time transition tax on certain undistributed earnings of foreign subsidiaries; and (iii) bonus depreciation that will allow for full expensing of qualified property. The undistributed earnings of all non-U.S. subsidiaries were approximately $500 million as of December 31, 2017 . All of the undistributed earnings have become subject to U.S. income taxes due to the enactment of the U.S. Tax Act in 2017. As a result of the U.S. Tax Act, we are analyzing the global working capital and cash requirements, and potential tax liabilities attributable to future repatriation of cash, but we have yet to determine whether we plan to change our prior indefinite investment assertion under ASC 740. We will record the effects of any change in prior assertions in the period in which the change occurs. Due to the complexity of the global intangible low-taxed income ("GILTI") tax rules recently enacted by the U.S. Tax Act, the Company continues to analyze this provision and its impact and the proper application of ASC 740. Under GAAP, the Company is allowed to make an accounting policy choice to either treat the taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the "period cost method") or factor in such amounts in to the Company’s measurement of deferred taxes (the "deferred method"). The Company’s selection of an accounting policy in connection with GILTI depends upon additional analysis and potential future modifications to the existing structure, which are yet to be known. Accordingly, the Company has not recorded any adjustments related to GILTI in our financial statements and has not made a policy choice regarding whether to record deferred taxes on GILTI. For further information on the U.S. Tax Act, see " Note 11. Income Taxes " to the consolidated financial statements contained in Item 8. of this report. 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 our estimate of potential bad debt concurrent with recognizing revenue. 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. 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. Selling, General and Administrative Expenses 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, and corporate expenses). Advertising Costs Advertising costs amounted to $114.8 million , $110.1 million and $120.9 million for the years ended December 31, 2017 , 2016 and 2015 , 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 same period in which the related revenue is recognized. Research and Development Research and development expenses, which amounted to $23.5 million , $21.0 million and $20.0 million for the years ended December 31, 2017 , 2016 and 2015 , 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 due to 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. Effective in 2017, the Company made the accounting policy election to account for forfeitures as they occur, which affects the timing of stock compensation expense. See " Recently Adopted Accounting Standards " below for details. 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) ("AOCI") 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 record 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 AOCI and are recognized in the Consolidated Statements of Income 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, Swedish krona, British pound and Japanese yen. Recent Accounting Standards Updates In May 2014 the Financial Accounting Standards Board (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. The Company analyzed the impact of ASU 2014-09 across all of its revenue streams. This included reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company also completed contract reviews and validated the results of applying the new revenue guidance. Upon the implementation of ASU 2014-09, the Company expects to accelerate the timing of some of its revenue recognition with respect to its customer contracts for private label and customized products. This acceleration of revenue would only be for contracts where a right to payment exists and there is no alternative use for the product, as prescribed by ASU 2014-09. The Company will adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance will be recognized as an adjustment to the opening balance of retained earnings in the first quarter of 2018. The Company expects to record an increase to its opening balance of retained earnings of approximately $1.6 million , net of tax effect, in the first quarter ending March 31, 2018. The Company is also in the process of updating its controls and systems, and is still finalizing its new disclosures required in 2018. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). In December 2017, the U.S. Tax Act was signed into law. Prior to ASU 2018-02, GAAP required deferred tax assets and deferred tax liabilities to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period including the enactment date. The U.S. Tax Act reduces the historical U.S corporate tax rate and the effect of that change is required to be included in income from continuing operations, even if the original tax effects were recorded in Accumulated Other Comprehensive Income ("AOCI"). This could cause some tax effects to become stranded in AOCI as they are not updated to reflect the new tax rate. This new standard allows a company to elect to reclass the stranded tax effects resulting from the U.S. Tax Act from AOCI to retained earnings. The adoption of the new standard may be applied in the period of adoption or retrospectively to each period(s) effected by the change in the corporate tax rate. The Company is currently in the process of evaluating the impact of adoption of ASU 2018-02 on the Company’s consolidated financial statements. ASU 2018-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the standard is permitted including adoption in any interim period for which financial statements have not been issued. In August 2017, the FASB issued ASU No. 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The new standard improves certain aspects of the hedge accounting model, including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. The Company is currently in the process of assessing the impact of adoption of ASU 2017-12 on the Company's consolidated financial statements. The Company will adopt ASU 2017-12 effective with its 2019 fiscal year. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new standard requires presentation of all components of net periodic pension and postretirement benefit costs, other than service costs, in an income statement line item outside of a subtotal of income from operations. The service cost component will continue to be presented in the same line item as other employee compensation costs. In addition, the guidance allows only service costs to be eligible for capitalization. The guidance is required to be adopted retrospectively with respect to the income statement requirement and prospectively for the capitalization requirement. We do not expect the change in the capitalization requirement to have a material effect on our financial statements, but it is expected to have a material effect on our operating income. The Company will use the practical expedient that permits an employer to use the amounts disclosed in " Note 5. Pension and Other Retiree Benefits " as the basis for applying the retrospective presentation requirements. On this basis, the Company's operating income for the years ended December 31, 2017 and 2016 would be reduced by approximately $8.4 million and $8.2 million , respectively. The new guidance is effective with the first quarter of the Company's 2018 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. Lease expense is recorded on the income statement in a manner similar to current accounting. 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. 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 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 adopted ASU 2016-09 effective with the first quarter of 2017. The Company made the allowed accounting policy election to account for forfeitures as they occur, which affects the timing of stock compensation expense . The change in accounting of forfeitures, along with the changes related to how excess tax benefits are recognized, has been done using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the first quarter of 2017, which was not material. An effect of the change was to require recognition of excess tax benefits in our Consolidated Statements of Income rather than as a component of equity under the previous standard; therefore, for the year ended December 31, 2017, a tax benefit of $5.6 million was recorded in the Company's Consolidated Statements of Income . 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 adopted ASU 2015-11 effective with the first quarter of 2017 and it had an immaterial effect on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Esselte Group Holdings AB (the "Esselte Acquisition") On January 31, 2017, ACCO Europe Limited ("ACCO Europe"), an indirect wholly-owned subsidiary of the Company, completed the Esselte Acquisition. The Esselte Acquisition was made pursuant to the share purchase agreement, dated October 21, 2016, as amended (the "Purchase Agreement"), among ACCO Europe, the Company and an entity controlled by J. W. Childs ("Seller"). With the acquisition of Esselte, ACCO Brands is a leading European manufacturer and marketer of branded business products. Esselte takes products to market under the Leitz ® , Rapid ® and Esselte ® brands in the storage and organization, stapling, punching, business machines and do-it-yourself tools product categories. The combination improved ACCO Brands’ scale and enhanced its position as an industry leader in Europe. The purchase price paid at closing was €302.9 million ( US$326.8 million based on January 31, 2017 exchange rates) and was subject to a working capital adjustment that reduced it by $0.3 million . The purchase price, net of cash acquired of $34.2 million , was $292.3 million . A portion of the purchase price ( €8.1 million ( US$8.7 million based on January 31, 2017 exchange rates)) is being held in an escrow account for a period of up to two years after closing as ACCO Europe’s sole recourse against Seller in the event of any claims against Seller under the Purchase Agreement. 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$43.2 million based on January 31, 2017 exchange rates) for a period of up to seven years, subject to certain deductibles and limitations set forth in the policy. The Esselte Acquisition and related expenses were funded through a term loan of €300.0 million ( US$320.8 million based on January 27, 2017 exchange rates) and cash on hand. See " Note 4. Long-term Debt and Short-term Borrowings " for details. For accounting purposes, the Company is the acquiring enterprise. The Esselte Acquisition is being accounted for as a purchase combination and Esselte's results are included in the Company’s condensed consolidated financial statements as of February 1, 2017. Esselte contributed $406.9 million of net sales for the year ended December 31, 2017 . The following table presents the allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of acquisition. (in millions of dollars) At January 31, 2017 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 326.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 121.9 Deferred tax liabilities 83.6 Pension obligations 174.1 Other non-current liabilities 5.8 Fair value of liabilities assumed $ 385.4 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.0 Inventory 41.9 Property, plant and equipment 75.6 Identifiable intangibles 277.0 Deferred tax assets 106.3 Other assets 10.4 Fair value of assets acquired $ 605.4 Goodwill $ 106.5 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 Esselte Acquisition will be recognized. The excess of the purchase price over the fair value of net assets acquired is allocated to goodwill. The goodwill of $106.5 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. During the fourth quarter of 2017, the previously estimated values for property, plant and equipment continued to be refined, which resulted in reductions in value of $2.4 million and we revised the depreciable life of certain assets. The impact to net income from this refinement in the first three quarters of 2017 would have been immaterial. For the years ended December 31, 2017 and 2016 , transaction costs were $5.0 million and $9.2 million , respectively. These costs were reported as SG&A 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 Esselte Acquisition been completed on January 1, 2016. Furthermore, the unaudited pro forma information does not give effect to the anticipated synergies or other anticipated benefits of the Esselte Acquisition. Had the Esselte Acquisition occurred on January 1, 2016, unaudited pro forma consolidated results for the years ended December 31, 2017 and 2016 would have been as follows: Year Ended December 31, (in millions of dollars, except per share data) 2017 2016 Net sales $ 1,992.3 $ 2,006.3 Net income 149.2 55.6 Net income per common share (diluted) $ 1.35 $ 0.51 The pro forma amounts are based on the Company's historical results and the historical results for the acquired Esselte business, which have been translated at the average foreign exchange rates for the periods presented. The pro forma results of operations have been adjusted for amortization of finite-lived intangibles, and other charges related to the Esselte Acquisition accounting. The pro forma results for the year ended December 31, 2016 have also been adjusted to include transaction costs related to the Esselte Acquisition of $14.2 million and amortization of the purchase accounting step-up in inventory cost of $0.9 million . Acquisition of Australia Stationery Industries, Inc. (the "PA Acquisition") On May 2, 2016, the Company completed the PA Acquisition, purchasing 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 was accounted for as a purchased 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 the 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 (income) expense, net ” in the Consolidated Statements of Income . 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 adjustment $ 103.7 Fair value of previously held equity interest 69.3 Consideration for Pelikan Artline $ 173.0 The following table presents the 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 adjustment $ 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 In the fourth quarter of 2016 we 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. For the years ended December 31, 2016 and 2015, transaction costs related to the PA Acquisition were $1.3 million and $0.6 million , respectively. These costs were reported as SG&A expenses. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , the applicable rate on Euro, Australian and Canadian dollar loans was 1.50% and the applicable rate on Base Rate loans was 0.50% . Undrawn amounts under the 2017 Revolving Facility are subject to a commitment fee rate of 0.25% to 0.40% per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2017 , the commitment fee rate was 0.30% . Prepayments Subject to certain conditions and specific exceptions, the 2017 Credit Agreement requires the Company to prepay outstanding amounts under the 2017 Credit Agreement under various circumstances, including (a) if sales or dispositions of certain property or assets in any fiscal year result in the receipt of net cash proceeds of $12.0 million , then an amount equal to 100% of the net cash proceeds received in excess of such $12.0 million , and (b) with respect to the AUD Term Loan A, in an amount equal to 100% of the net cash proceeds received from the disposition of any real property located in Australia. The Company also would be required to make prepayments in the event it receives proceeds related to certain property insurance or condemnation awards, from additional debt other than debt permitted under the 2017 Credit Agreement and from excess cash flow as determined under the 2017 Credit Agreement. The 2017 Credit Agreement also contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Dividends and Share Repurchases Under the 2017 Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1% of the Company’s Consolidated Total Assets (as defined in the 2017 Credit Agreement); plus (ii) an additional amount not to exceed $75.0 million in any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be greater than 2.50 :1.00 and less than or equal to 3.75 :1.00); plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be less than or equal to 2.50 :1.00; plus (iv) any Net Equity Proceeds (as defined in the 2017 Credit Agreement). Financial Covenants The Company’s Consolidated Leverage Ratio as of the end of any fiscal quarter may not exceed 3.75 :1.00; provided that following the consummation of a Material Acquisition (as defined in the 2017 Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurred and as of the end of the three fiscal quarters thereafter, the maximum Consolidated Leverage Ratio level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Esselte Acquisition qualified as a Material Acquisition under the 2017 Credit Agreement. The 2017 Credit Agreement requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2017 Credit Agreement) as of the end of any fiscal quarter at or above 1.25 to 1.00. As of December 31, 2017 , our Consolidated Leverage Ratio was approximately 2.6 to 1 and our Fixed Charge Coverage Ratio was approximately 5.3 to 1. Other Covenants and Restrictions The 2017 Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The 2017 Credit Agreement also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the 2017 Credit Agreement) that the Company and its subsidiaries may make during the term of the 2017 Credit Agreement. Guarantees and Security Generally, obligations under the 2017 Credit Agreement are guaranteed by certain of the Company’s existing and future subsidiaries, and are secured by substantially all of the Company’s and certain guarantor subsidiaries’ assets, subject to certain exclusions and limitations. Incremental Facilities The 2017 Credit Agreement permits the Company to seek increases in the size of the 2017 Revolving Facility and the 2017 Term A Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the 2017 Credit Agreement. As of December 31, 2017 , there were $133.9 million in borrowings outstanding under the 2017 Revolving Facility. The remaining amount available for borrowings was $255.0 million (allowing for $11.1 million of letters of credit outstanding on that date). 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. Pursuant to the New Indenture, the Company pays interest on the New Notes semiannually on June 15 and December 15 of each year, beginning on June 15, 2017. The New Indenture contains covenants that could 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 New Notes to be immediately due and payable. 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 6.75% Senior Notes due 2020 (the "Old Notes"). The aggregate redemption price of $531.5 million consisted of principal due and payable on the Old Notes, a "make-whole" call premium of $25.0 million (included in " Other (income) expense, net "), and accrued and unpaid interest of $6.5 million (included in " Interest expense "). Also included in " Other (income) expense, net " in 2016 was a $4.9 million charge for the write-off of debt issuance costs associated with the Old Notes. Additionally, we incurred and capitalized approximately $6.1 million in bank, legal and other fees associated with the issuance of the New Notes in 2016. Second Amended and Restated Credit Agreement During 2016, the Company’s credit facilities were governed by 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"). Borrowings under the 2015 Credit Agreement were due April 2020. In connection with the PA Acquisition, effective May 1, 2016, the Company entered into a Second Amendment and Additional Borrower Consent, among the Company, certain guarantor subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto, which amended the 2015 Credit Agreement. Among other things, the Second Amendment amended the 2015 Credit Agreement to include ACCO Brands Australia Holding Pty. Ltd. ("ACCO Australia Holdings") as a foreign borrower and, together with a related incremental joinder agreement, facilitated borrowings under the 2015 Credit Agreement by ACCO Australia Holdings. Financing of PA Acquisition The PA Acquisition, which closed in the second quarter of 2016, was financed through a borrowing under the 2015 Credit Agreement of A$100.0 million (US $76.6 million based on May 2, 2016 exchange rates) by ACCO Australia Holdings in the form of an incremental Australian Dollar Senior Secured Term A loan, 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 due April 2020 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). Compliance with Loan Covenants As of and for the periods ended December 31, 2017 and December 31, 2016 , the Company was in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2017 Credit Agreement and the 2015 Credit Agreement are and were guaranteed by certain of the Company's existing and future subsidiaries, and are and were 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." 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, 2017 and 2016 : (in millions of dollars) 2017 2016 Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2017) $ 345.0 $ — U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) — 81.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.29% at December 31, 2017) 60.0 — Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) — 70.3 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.53% at December 31, 2017) 48.9 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) — 63.7 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.28% at December 31, 2017) 85.0 — 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%) 400.0 400.0 Other borrowings 0.6 0.6 Total debt 939.5 703.5 Less: Current portion 43.2 68.5 Debt issuance costs, unamortized 7.1 7.3 Long-term debt, net $ 889.2 $ 627.7 Third Amended and Restated Credit Agreement In connection with the Esselte Acquisition, the Company entered into a Third Amended and Restated Credit Agreement (the "2017 Credit Agreement"), dated as of January 27, 2017 , 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"). The 2017 Credit Agreement provides for a five -year senior secured credit facility, which consists of a €300.0 million ( US$320.8 million based on January 27, 2017 exchange rates) term loan facility (the "Euro Term Loan A"), a A$80.0 million ( US$60.4 million based on January 27, 2017 exchange rates) 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$400.0 million multi-currency revolving credit facility (the "2017 Revolving Facility"). Maturity and Amortization Borrowings under the 2017 Revolving Facility and the 2017 Term A Loan Facility mature on January 27, 2022. Amounts under the 2017 Revolving Facility are non-amortizing. Beginning June 30, 2017, the outstanding principal amounts under the 2017 Term A Loan Facility are payable in quarterly installments in an amount representing, on an annual basis, 5.0% of the initial aggregate principal amount of such loan facility and increasing to 12.5% on an annual basis by June 30, 2020. Interest Rates Amounts outstanding under the 2017 Credit Agreement bear interest at a rate per annum equal to the Euro Rate with a 0% floor, the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the 2017 Credit Agreement, plus an "applicable rate." The applicable rate applied to outstanding Euro, Australian and Canadian dollar denominated loans and Base Rate loans is based on the Company’s Consolidated Leverage Ratio (as defined in the 2017 Credit Agreement) as follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans > 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, 2017 , the applicable rate on Euro, Australian and Canadian dollar loans was 1.50% and the applicable rate on Base Rate loans was 0.50% . Undrawn amounts under the 2017 Revolving Facility are subject to a commitment fee rate of 0.25% to 0.40% per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2017 , the commitment fee rate was 0.30% . Prepayments Subject to certain conditions and specific exceptions, the 2017 Credit Agreement requires the Company to prepay outstanding amounts under the 2017 Credit Agreement under various circumstances, including (a) if sales or dispositions of certain property or assets in any fiscal year result in the receipt of net cash proceeds of $12.0 million , then an amount equal to 100% of the net cash proceeds received in excess of such $12.0 million , and (b) with respect to the AUD Term Loan A, in an amount equal to 100% of the net cash proceeds received from the disposition of any real property located in Australia. The Company also would be required to make prepayments in the event it receives proceeds related to certain property insurance or condemnation awards, from additional debt other than debt permitted under the 2017 Credit Agreement and from excess cash flow as determined under the 2017 Credit Agreement. The 2017 Credit Agreement also contains other customary prepayment obligations and provides for voluntary commitment reductions and prepayment of loans, subject to certain conditions and exceptions. Dividends and Share Repurchases Under the 2017 Credit Agreement, the Company may pay dividends and/or repurchase shares in an aggregate amount not to exceed the sum of: (i) the greater of $30.0 million and 1% of the Company’s Consolidated Total Assets (as defined in the 2017 Credit Agreement); plus (ii) an additional amount not to exceed $75.0 million in any fiscal year (provided the Company’s Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be greater than 2.50 :1.00 and less than or equal to 3.75 :1.00); plus (iii) an additional amount so long as the Consolidated Leverage Ratio after giving pro forma effect to the restricted payment would be less than or equal to 2.50 :1.00; plus (iv) any Net Equity Proceeds (as defined in the 2017 Credit Agreement). Financial Covenants The Company’s Consolidated Leverage Ratio as of the end of any fiscal quarter may not exceed 3.75 :1.00; provided that following the consummation of a Material Acquisition (as defined in the 2017 Credit Agreement), and as of the end of the fiscal quarter in which such Material Acquisition occurred and as of the end of the three fiscal quarters thereafter, the maximum Consolidated Leverage Ratio level above will increase by 0.50 :1.00, provided that no more than one such increase can be in effect at any time. The Esselte Acquisition qualified as a Material Acquisition under the 2017 Credit Agreement. The 2017 Credit Agreement requires the Company to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the 2017 Credit Agreement) as of the end of any fiscal quarter at or above 1.25 to 1.00. As of December 31, 2017 , our Consolidated Leverage Ratio was approximately 2.6 to 1 and our Fixed Charge Coverage Ratio was approximately 5.3 to 1. Other Covenants and Restrictions The 2017 Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The 2017 Credit Agreement also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the 2017 Credit Agreement) that the Company and its subsidiaries may make during the term of the 2017 Credit Agreement. Guarantees and Security Generally, obligations under the 2017 Credit Agreement are guaranteed by certain of the Company’s existing and future subsidiaries, and are secured by substantially all of the Company’s and certain guarantor subsidiaries’ assets, subject to certain exclusions and limitations. Incremental Facilities The 2017 Credit Agreement permits the Company to seek increases in the size of the 2017 Revolving Facility and the 2017 Term A Facility prior to maturity by up to $500.0 million in the aggregate, subject to lender commitment and the conditions set forth in the 2017 Credit Agreement. As of December 31, 2017 , there were $133.9 million in borrowings outstanding under the 2017 Revolving Facility. The remaining amount available for borrowings was $255.0 million (allowing for $11.1 million of letters of credit outstanding on that date). 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. Pursuant to the New Indenture, the Company pays interest on the New Notes semiannually on June 15 and December 15 of each year, beginning on June 15, 2017. The New Indenture contains covenants that could 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 New Notes to be immediately due and payable. 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 6.75% Senior Notes due 2020 (the "Old Notes"). The aggregate redemption price of $531.5 million consisted of principal due and payable on the Old Notes, a "make-whole" call premium of $25.0 million (included in " Other (income) expense, net "), and accrued and unpaid interest of $6.5 million (included in " Interest expense "). Also included in " Other (income) expense, net " in 2016 was a $4.9 million charge for the write-off of debt issuance costs associated with the Old Notes. Additionally, we incurred and capitalized approximately $6.1 million in bank, legal and other fees associated with the issuance of the New Notes in 2016. Second Amended and Restated Credit Agreement During 2016, the Company’s credit facilities were governed by 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"). Borrowings under the 2015 Credit Agreement were due April 2020. In connection with the PA Acquisition, effective May 1, 2016, the Company entered into a Second Amendment and Additional Borrower Consent, among the Company, certain guarantor subsidiaries of the Company, Bank of America, N.A., as administrative agent, and the other lenders party thereto, which amended the 2015 Credit Agreement. Among other things, the Second Amendment amended the 2015 Credit Agreement to include ACCO Brands Australia Holding Pty. Ltd. ("ACCO Australia Holdings") as a foreign borrower and, together with a related incremental joinder agreement, facilitated borrowings under the 2015 Credit Agreement by ACCO Australia Holdings. Financing of PA Acquisition The PA Acquisition, which closed in the second quarter of 2016, was financed through a borrowing under the 2015 Credit Agreement of A$100.0 million (US $76.6 million based on May 2, 2016 exchange rates) by ACCO Australia Holdings in the form of an incremental Australian Dollar Senior Secured Term A loan, 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 due April 2020 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). Compliance with Loan Covenants As of and for the periods ended December 31, 2017 and December 31, 2016 , the Company was in compliance with all applicable loan covenants. Guarantees and Security Generally, obligations under the 2017 Credit Agreement and the 2015 Credit Agreement are and were guaranteed by certain of the Company's existing and future subsidiaries, and are and were 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. |
Pension and Other Retiree Benef
Pension and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Retiree Benefits | 5. Pension and Other Retiree Benefits We have a number of pension plans, principally in Germany, 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. In the Esselte Acquisition, we acquired numerous pension plans, primarily in Germany and the U.K. The German plan, which is unfunded, is the primarily driver of our increased pension liabilities compared to the prior-year period. The Esselte U.K. plan is frozen. 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 legacy U.K. pension plan was frozen. As of December 31, 2016, all of our Canadian pension plans were 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) 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 200.1 $ 198.7 $ 345.1 $ 347.1 $ 6.7 $ 8.1 Service cost 1.4 1.3 1.9 0.8 — 0.1 Interest cost 7.1 7.3 13.4 10.3 0.2 0.2 Actuarial loss (gain) 14.7 3.1 13.2 55.6 — (0.2 ) Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (16.8 ) (10.3 ) (26.5 ) (13.0 ) (0.5 ) (0.5 ) Curtailment gain — — — (0.6 ) — (0.8 ) Foreign exchange rate changes — — 59.8 (55.2 ) 0.3 (0.3 ) Esselte Acquisition — — 288.0 — — — Projected benefit obligation at end of year 206.5 200.1 695.0 345.1 6.8 6.7 Change in plan assets Fair value of plan assets at beginning of year 150.5 145.8 302.7 318.9 — — Actual return on plan assets 21.1 14.1 21.3 41.8 — — Employer contributions 7.3 0.9 14.0 4.9 0.4 0.4 Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (16.8 ) (10.3 ) (26.5 ) (13.0 ) (0.5 ) (0.5 ) Foreign exchange rate changes — — 38.2 (50.0 ) — — Esselte Acquisition — — 114.0 — — — Fair value of plan assets at end of year 162.1 150.5 463.8 302.7 — — Funded status (Fair value of plan assets less PBO) $ (44.4 ) $ (49.6 ) $ (231.2 ) $ (42.4 ) $ (6.8 ) $ (6.7 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.6 $ 0.3 $ — $ — Other current liabilities — — 6.9 0.4 0.6 0.6 Pension and post-retirement benefit obligations (1) 44.4 49.6 224.9 42.3 6.2 6.1 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 56.9 54.2 100.5 83.7 (3.6 ) (3.5 ) Unrecognized prior service cost (credit) 1.7 2.0 (0.2 ) (0.2 ) (0.2 ) (0.2 ) (1) Pension and post-retirement obligations of $275.5 million as of December 31, 2017 , increased from $98.0 million as of December 31, 2016 , primarily due to the Esselte Acquisition. 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 ending December 31, 2018 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 2.7 $ 3.4 $ (0.4 ) Prior service cost 0.4 — — $ 3.1 $ 3.4 $ (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 $887.9 million and $536.8 million at December 31, 2017 and 2016 , 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) 2017 2016 2017 2016 Projected benefit obligation $ 206.5 $ 200.1 $ 675.3 $ 326.9 Accumulated benefit obligation 205.4 198.3 662.8 320.4 Fair value of plan assets 162.1 150.5 443.5 284.2 The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2017 , 2016 , and 2015 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 1.4 $ 1.3 $ 1.6 $ 1.9 $ 0.8 $ 0.9 $ — $ 0.1 $ 0.1 Interest cost 7.1 7.3 8.7 13.4 10.3 12.9 0.2 0.2 0.4 Expected return on plan assets (12.3 ) (11.9 ) (12.2 ) (21.8 ) (17.6 ) (21.9 ) — — — Amortization of net loss (gain) 2.0 1.8 2.1 3.0 2.3 2.4 (0.4 ) (0.4 ) (0.4 ) Amortization of prior service cost (credit) 0.4 0.4 0.4 — — — — — (0.3 ) Curtailment gain — — — — — — — (0.6 ) — Settlement gain — — — — — — — — (0.5 ) Net periodic benefit (income) expense $ (1.4 ) $ (1.1 ) $ 0.6 $ (3.5 ) $ (4.2 ) $ (5.7 ) $ (0.2 ) $ (0.7 ) $ (0.7 ) Other changes in plan assets and benefit obligations that were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Current year actuarial loss (gain) $ 5.9 $ 0.9 $ 7.1 $ 14.3 $ 27.9 $ 3.8 $ — $ (1.0 ) $ (3.4 ) Amortization of actuarial (loss) gain (2.0 ) (1.8 ) (2.1 ) (3.0 ) (2.3 ) (2.4 ) 0.4 1.0 0.9 Current year prior service credit — — — — — — — — (0.2 ) Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.4 ) — — — — — 0.3 Foreign exchange rate changes — — — 10.7 (15.5 ) (5.6 ) (0.2 ) 0.5 0.1 Total recognized in other comprehensive income (loss) $ 3.5 $ (1.3 ) $ 4.6 $ 22.0 $ 10.1 $ (4.2 ) $ 0.2 $ 0.5 $ (2.3 ) Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ 2.1 $ (2.4 ) $ 5.2 $ 18.5 $ 5.9 $ (9.9 ) $ — $ (0.2 ) $ (3.0 ) Assumptions The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.7 % 4.3 % 4.6 % 2.3 % 2.7 % 3.7 % 3.2 % 3.4 % 3.9 % Rate of compensation increase N/A N/A N/A 2.8 % 3.1 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.8 % 4.6 % 4.2 % 2.3 % 3.7 % 3.4 % 3.4 % 3.9 % 3.7 % Expected long-term rate of return 7.8 % 7.8 % 8.0 % 5.5 % 6.0 % 6.5 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.1 % 3.0 % 3.0 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit (income) expense as of December 31, 2017 , 2016 , and 2015 were as follows: Post-retirement 2017 2016 2015 Health care cost trend rate assumed for next year 7 % 8 % 7 % 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 2025 2024 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 60% in equity securities, 28% in fixed income securities and 12% 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, 2017 and 2016 were as follows: 2017 2016 U.S. International U.S. International Asset category Equity securities 57 % 26 % 68 % 33 % Fixed income 30 29 25 51 Real estate 6 5 — 3 Other (2) 7 40 7 13 Total 100 % 100 % 100 % 100 % (2) Multi-strategy hedge funds, insurance contracts 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, 2017 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Mutual funds $ 94.8 $ — $ — $ 94.8 Exchange traded funds 56.6 — — 56.6 Common collective trust funds — 1.7 — 1.7 Investments measured at net asset value (3) Multi-strategy hedge funds 9.0 Total $ 151.4 $ 1.7 $ — $ 162.1 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 Mutual funds 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, 2017 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 2.2 $ — $ — $ 2.2 Equity securities 102.0 — — 102.0 Exchange traded funds 16.9 — — 16.9 Corporate debt securities — 72.2 — 72.2 Multi-strategy hedge funds — 133.4 — 133.4 Insurance contracts — 24.4 — 24.4 Government debt securities — 61.0 — 61.0 Investments measured at net asset value (3) Multi-strategy hedge funds 30.5 Real estate 21.2 Total $ 121.1 $ 291.0 $ — $ 463.8 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 (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 and exchange traded funds: 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 $21.7 million to our pension and post-retirement plans in 2017 and expect to contribute $20.0 million in 2018 . 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 2018 $ 40.1 $ 0.6 2019 39.2 0.6 2020 39.8 0.6 2021 40.7 0.5 2022 40.9 0.5 Years 2023 - 2027 212.4 2.4 We also sponsor a number of defined contribution plans. Contributions are determined under various formulas. Costs related to such plans amounted to $13.4 million , $11.3 million and $9.8 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. The increase of $2.1 million in defined contribution plan costs in 2017 compared to 2016 is due to the Esselte Acquisition and additional matching contributions in the U.S. The $1.5 million increase in defined contribution plan costs in 2016 compared to 2015 was due to the PA Acquisition and additional matching contributions in the U.S. 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 2017 and 2016 is for the plan’s years ended December 31, 2016 and 2015 , 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 2017 2016 2017 2016 2015 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.2 $ 0.3 $ 0.3 Yes 6/30/2018 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The ACCO Brands Corporation Incentive Plan (the "Plan") provides for stock based awards generally 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 up to 13,118,430 shares may be issued under awards to key employees and non-employee directors. Beginning in 2017, per ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, the Company made the allowed accounting policy election to account for forfeitures as they occur, which affects the timing of stock compensation expense . Prior to 2017, forfeitures were estimated at the time of grant in order to calculate the amount of share-based payment awards ultimately expected to vest and the forfeiture rate was based on historical experience. We will satisfy the requirement for delivering shares of our common stock for our Plan by issuing new shares. The following table summarizes the impact of all stock-based compensation expense on our Consolidated Statements of Income for the years ended December 31, 2017 , 2016 and 2015 . (in millions of dollars) 2017 2016 2015 Selling, general and administrative expense $ 17.0 $ 19.4 $ 16.0 Loss before income tax (17.0 ) (19.4 ) (16.0 ) Income tax benefit (6.1 ) (7.0 ) (5.7 ) Net loss $ (10.9 ) $ (12.4 ) $ (10.3 ) There was no capitalization of stock-based compensation expense. Stock-based compensation expense by award type for the years ended December 31, 2017 , 2016 and 2015 was as follows: (in millions of dollars) 2017 2016 2015 Stock option compensation expense $ 2.4 $ 2.9 $ 3.9 RSU compensation expense 4.3 4.5 4.7 PSU compensation expense 10.3 12.0 7.4 Total stock-based compensation expense $ 17.0 $ 19.4 $ 16.0 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, 2017 generally vest ratably over three years. In 2016, we did not grant any option awards. SSARs were last issued in 2009 and expired in 2016. 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, 2017 2015 Weighted average expected lives 4.8 years 4.5 years Weighted average risk-free interest rate 2.04 % 1.47 % Weighted average expected volatility 39.7 % 46.5 % Expected dividend yield 0.0 % 0.0 % Weighted average grant date fair value $ 4.70 $ 3.00 Volatility was calculated using ACCO Brands' historic volatility. The weighted average expected option term reflects ACCO Brands' historic life for all option tranches beginning in 2017. Prior to 2017, 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. A summary of the changes in stock options outstanding under the Plan during the year ended December 31, 2017 is presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2016 4,133,874 $ 7.82 Granted 745,772 $ 12.75 Exercised (547,107 ) $ 7.72 Forfeited (59,888 ) $ 9.57 Outstanding at December 31, 2017 4,272,651 $ 8.68 3.3 years $ 15.5 million Exercisable shares at December 31, 2017 3,157,606 $ 7.88 2.6 years $ 13.6 million We received cash of $4.2 million , $6.8 million and $0.7 million from the exercise of stock options during the years ended December 31, 2017 , 2016 and 2015 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2017 , 2016 and 2015 totaled $2.8 million , $3.5 million and $0.7 million , respectively. The aggregate intrinsic value of SSARs exercised during the years ended December 31, 2016 and 2015 totaled $2.9 million and $2.0 million , respectively. As of December 31, 2016 , there were no SSARs outstanding. The fair value of options vested during the years ended December 31, 2017 , 2016 and 2015 was $2.6 million , $4.1 million and $3.8 million , respectively. As of December 31, 2017 , we had unrecognized compensation expense related to stock options of $2.7 million , which will be recognized over a weighted-average period of 1.5 years. Stock Unit Awards RSUs vest over a pre-determined period of time, generally three years from the date of grant. Stock-based compensation expense for the years ended December 31, 2017 , 2016 and 2015 includes $0.8 million , $0.9 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 being met during the vesting period. 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 1,534,058 RSUs outstanding as of December 31, 2017 . All outstanding RSUs as of December 31, 2017 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, 2017 were 3,531,312 PSUs. All outstanding PSUs as of December 31, 2017 vest at the end of their respective performance periods subject to the level of achievement 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 the Plan during 2017 is presented below: Stock Weighted Outstanding at December 31, 2016 1,910,669 $ 7.23 Granted 438,521 $ 12.65 Vested and distributed (691,319 ) $ 6.21 Vested and deferred distributed (38,042 ) $ 9.46 Forfeited and cancelled (85,771 ) $ 8.66 Outstanding at December 31, 2017 1,534,058 $ 9.10 Vested and deferred at December 31, 2017 (1) 326,835 $ 9.16 (1) Included in outstanding at December 31, 2017 . Vested and deferred RSUs are primarily related to deferred compensation for non-employee directors. For the years ended December 31, 2016 and 2015 , we granted 516,739 and 668,619 shares of RSUs, respectively. The weighted-average grant date fair value of our RSUs was $12.65 , $8.05 , and $7.58 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The fair value of RSUs that vested during the years ended December 31, 2017 , 2016 and 2015 was $5.5 million , $5.2 million and $10.3 million , respectively. As of December 31, 2017 , we have unrecognized compensation expense related to RSUs of $4.6 million . The unrecognized compensation expense related to RSUs will be recognized over a weighted-average period of 1.8 years. A summary of the changes in the PSUs outstanding under the Plan during 2017 is presented below: Stock Weighted Outstanding at December 31, 2016 4,281,792 $ 7.09 Granted 706,732 $ 12.75 Vested (1,502,327 ) $ 6.16 Forfeited and cancelled (131,465 ) $ 8.24 Other - increase due to performance of PSU's 176,580 $ 11.72 Outstanding at December 31, 2017 3,531,312 $ 8.82 For the years ended December 31, 2016 and 2015 we granted 1,013,242 and 1,017,702 shares of PSUs, respectively. For the years ended December 31, 2017 , 2016 and 2015 , 1,502,327 , 1,072,692 and 697,172 shares of PSUs vested, respectively. The weighted-average grant date fair value of our PSUs was $12.75 , $7.65 , and $7.52 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The fair value of PSUs that vested during the years ended December 31, 2017 , 2016 and 2015 was $9.3 million , $8.1 million and $5.4 million respectively. As of December 31, 2017 , we have unrecognized compensation expense related to PSUs of $11.2 million . The unrecognized compensation expense related to PSUs will be recognized over a weighted-average period of 1.7 years. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories are stated at the lower of cost or net realizable value. The components of inventories were as follows: December 31, (in millions of dollars) 2017 2016 Raw materials $ 38.2 $ 30.3 Work in process 4.1 3.0 Finished goods 211.9 176.7 Total inventories $ 254.2 $ 210.0 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 Land and improvements $ 28.0 $ 18.9 Buildings and improvements to leaseholds 152.6 119.1 Machinery and equipment 453.5 382.0 Construction in progress 11.1 8.0 645.2 528.0 Less: accumulated depreciation (366.7 ) (329.6 ) Property, plant and equipment, net (1) $ 278.5 $ 198.4 (1) Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million , $7.0 million and $6.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The increase in net property, plant and equipment is primarily due to the Esselte Acquisition. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangibles | 9. Goodwill and Identifiable Intangible Assets Goodwill Effective in the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which impacted its determination of its business segments for financial reporting purposes. As a result, the Company no longer reports the results of its Computer Products Group as a separate segment. See " Note 16. Information on Business Segments " for further details on the realigned segments. The Company's three realigned segments are as follows: Operating Segment Geography ACCO Brands North America United States and Canada ACCO Brands EMEA Europe, Middle East and Africa ACCO Brands International Australia, Latin America and Asia-Pacific As part of the realignment, the Company performed a quantitative goodwill impairment test ("Step-1") to reallocate the goodwill among the realigned segments based on their relative fair values. There were no impairment charges recognized as a result of this change. We have restated our reportable segments for the period presented below to reflect this change. Changes in the net carrying amount of goodwill by segment were as follows: (in millions of dollars) ACCO ACCO ACCO Total Balance at December 31, 2016 380.7 39.5 166.9 587.1 Esselte Acquisition (5.1 ) 113.2 (1.6 ) 106.5 Translation — (23.3 ) — (23.3 ) Balance at December 31, 2017 $ 375.6 $ 129.4 $ 165.3 $ 670.3 The goodwill balance includes $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. Goodwill has been recorded on our Consolidated Balance Sheet related to the Esselte Acquisition and represents the excess of the cost of the Esselte Acquisition when compared to the fair value estimate of the net assets acquired on January 31, 2017 (the date of the Esselte Acquisition). See " Note 3. Acquisitions ", for details on the calculation of the goodwill acquired in the Esselte 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 ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. 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 2017 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 (Step-Zero) basis, as allowed by GAAP, for the majority of indefinite-lived trade names in the second quarter of 2017 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 2017. The following long-term growth rates and discount rates were used, 1.5% and 10.5% for Mead ® , and 1.5% and 11.0% for Hilroy ® , respectively. We concluded that neither the Mead ® nor Hilroy ® trade names were impaired. The fair value of the Mead ® trade name was less than 30% above its carrying value as of the second quarter of 2017 Step-1 test. As of December 31, 2017 , the carrying value of the Mead ® trade name was $113.3 million . As of June 1, 2017, we changed the indefinite-lived Hilroy trade name to an amortizable intangible asset. The change was made as a result of decisions regarding the Company's future use of the trade name. The Company commenced amortizing the Hilroy trade name June 1, 2017 on a straight-line basis over a life of 30 years. The identifiable intangible assets of $277.0 million acquired in the Esselte Acquisition include amortizable customer relationships, indefinite lived and amortizable trade names and patents, which have been recorded at their estimated fair values. The fair value of the trade names and patents was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The fair value of the customer relationships was determined using the multi-period excess earnings method, which is based on the present value of the projected after-tax cash flows. Amortizable customer relationships, trade names and patents are expected to be amortized over lives ranging from 10 to 30 years from the Esselte Acquisition date of January 31, 2017. The customer relationships will be amortized on an accelerated basis. The allocations of the acquired identifiable intangibles acquired in the Esselte Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Trade name - indefinite lived $ 116.8 Indefinite Trade names - amortizable 53.2 15-30 Years Customer relationships 102.4 15 Years Patents 4.6 10 Years Total identifiable intangibles acquired $ 277.0 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 Trade names - amortizable $ 22.0 12-30 Years Customer relationships 36.0 12 Years Total identifiable intangibles acquired $ 58.0 The gross carrying value and accumulated amortization by class of identifiable intangible assets as of December 31, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 599.5 $ (44.5 ) (1) $ 555.0 $ 483.3 $ (44.5 ) (1) $ 438.8 Amortizable intangible assets: Trade names 195.3 (59.4 ) 135.9 121.2 (48.8 ) 72.4 Customer and contractual relationships 243.0 (99.3 ) 143.7 127.5 (73.8 ) 53.7 Patents 5.8 (0.5 ) 5.3 0.8 — 0.8 Subtotal 444.1 (159.2 ) 284.9 249.5 (122.6 ) 126.9 Total identifiable intangibles $ 1,043.6 $ (203.7 ) $ 839.9 $ 732.8 $ (167.1 ) $ 565.7 (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 $ 35.6 million , $ 21.6 million and $ 19.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Estimated amortization expense for amortizable intangible assets for the next five years is as follows: (in millions of dollars) 2018 2019 2020 2021 2022 Estimated amortization expense (2) $ 34.3 $ 30.8 $ 27.3 $ 23.8 $ 20.3 (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, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 10. Restructuring During 2017, the Company initiated cost savings plans related to the consolidation and integration of Esselte affecting all three of the Company's segments, but primarily the ACCO Brands EMEA segment. The cost savings initiatives undertaken by the Company in 2016 to further enhance its operations in the ACCO Brands North America segment were expanded during 2017 to include the change in the operating structure in North America, including integration of our former Computer Products Group. During 2016, the Company initiated cost savings plans related to the consolidation and integration of the acquired Pelikan Artline business into the Company's already existing Australia and New Zealand businesses within the ACCO Brands International segment. During the first quarter of 2018, the Company approved additional restructuring projects aggregating to $3.5 million , primarily related to changes to the structure in the ACCO Brands North America segment and the continued integration of Esselte in the ACCO Brands EMEA segment. In accordance with GAAP, none of the aforementioned liabilities were recorded in the fourth quarter of 2017. Consistent with our previous communications about the Esselte Acquisition, the Company currently expects it will record approximately $4 million of incremental restructuring expenses during the remainder of 2018, which is in addition to the $3.5 million of restructuring projects approved during the first quarter of 2018. As integration plans are still being finalized, it is not possible to reasonably estimate the nature or timing of these restructuring and integration charges or the timing of their associated cash outflows. For the years ended December 31, 2017 , 2016 and 2015 , we recorded restructuring charges (credits) of $21.7 million , $5.4 million and $(0.4) million , respectively. The summary of the activity in the restructuring liability (which is included in " Other current liabilities ") for the year ended December 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Esselte Acquisition (4) Provision Cash Non-cash Balance at December 31, 2017 Employee termination costs (1) $ 1.4 $ 1.5 $ 18.2 $ (9.6 ) $ 0.5 $ 12.0 Termination of lease agreements (2) 0.1 1.2 2.4 (3.1 ) 0.2 0.8 Other (3) — 0.1 1.1 (0.7 ) — 0.5 Total restructuring liability $ 1.5 $ 2.8 $ 21.7 $ (13.4 ) $ 0.7 $ 13.3 (1) We expect the remaining $12.0 million employee termination costs to be substantially paid within the next eighteen months. (2) We expect the remaining $0.8 million termination of lease costs to be substantially paid within the next fifteen months. (3) We expect the remaining $0.5 million of other costs to be substantially paid with the next twelve months. (4) Restructuring liabilities assumed in the Esselte Acquisition. During the fourth quarter of 2017, in connection with the Pelikan Artline integration, the Company sold its building and related assets in New Zealand for net proceeds of $3.9 million and recorded a gain on sale of $1.5 million as a reduction of SG&A expense in its Consolidated Statements of Income within the ACCO Brands International segment. The sale was not included in the Company’s restructuring liability activity presented above. The summary of the activity in the restructuring accounts for the year ended December 31, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 PA Acquisition (5) Provision Cash Non-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 (5) Restructuring liabilities assumed in the PA Acquisition. The summary of the activity in the restructuring accounts for the year ended December 31, 2015 was as follows: (in millions of dollars) Balance at December 31, 2014 Acquisitions 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 Restructuring charges (credits) for the years ended December 31, 2017 , 2016 and 2015 by reporting segment were as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 5.5 $ 1.1 $ (0.4 ) ACCO Brands EMEA 11.2 — — ACCO Brands International 5.0 4.3 — Total restructuring charges (credits) $ 21.7 $ 5.4 $ (0.4 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 Domestic operations $ 68.7 $ 33.9 $ 60.9 Foreign operations 89.4 91.2 70.5 Total $ 158.1 $ 125.1 $ 131.4 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) 2017 2016 2015 Income tax at U.S. statutory rate of 35% $ 55.3 $ 43.8 $ 46.0 Effect of the U.S. Tax Act (25.7 ) — — State, local and other tax, net of federal benefit 3.6 2.4 2.1 U.S. effect of foreign dividends and withholding taxes 4.9 4.6 3.9 Unrealized foreign currency expense (benefit) on intercompany debt — 0.7 (0.7 ) 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 (6.9 ) (4.6 ) (5.6 ) Interest on Brazilian Tax Assessment 2.2 2.8 2.7 Expiration of tax credits — 10.9 1.0 Decrease in valuation allowance (0.6 ) (9.9 ) (1.3 ) Excess benefit from stock-based compensation (5.6 ) — — Other (0.8 ) 0.5 (2.6 ) Income taxes as reported $ 26.4 $ 29.6 $ 45.5 Effective tax rate 16.7 % 23.7 % 34.6 % 2017 For 2017 , we recorded income tax expense of $26.4 million on income before taxes of $158.1 million . The lower effective rate for 2017 of 16.7% was primarily driven by a $25.7 million benefit resulting from the U.S. Tax Act, and a $5.6 million benefit due to the impact of the Company's adoption of ASU No. 2016-9, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-9 in 2017. Tax Reform On December 22, 2017, the U.S. Tax Act was signed into law. The U.S. Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (i) reducing the future U.S. federal corporate tax rate from 35 percent to 21 percent; (ii) requiring companies to pay a one-time transition tax on certain undistributed earnings of foreign subsidiaries; and (iii) bonus depreciation that will allow for full expensing of qualified property. The U.S. Tax Act also established new tax laws that will affect 2018, including, but not limited to: (i) the reduction of the U.S. federal corporate tax rate discussed above; (ii) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (iii) a new provision designed to tax global intangible low-taxed income ("GILTI"); (iv) the repeal of the domestic production activity deductions; (v) limitations on the deductibility of certain executive compensation; (vi) limitations on the use of foreign tax credits to reduce the U.S. income tax liability; and (vii) a new provision that allows a domestic corporation an immediate deduction for a portion of its foreign derived intangible income ("FDII"). The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of the U.S. Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the related accounting under ASC 740, Accounting for Income Taxes . In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the U.S. Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for a certain income tax effect of the U.S. Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the U.S. Tax Act. Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, during the year ended December 31, 2017, we recorded a net tax benefit totaling $25.7 million related to our current provisional estimate of the provisions of the U.S. Tax Act. Transition Toll Tax The U.S. Tax Act eliminates the deferral of U.S. income tax on the historical undistributed earnings by imposing the Transition Toll Tax, which is a one-time mandatory deemed repatriation tax on undistributed foreign earnings. The Transition Toll Tax is assessed on the U.S. shareholder's share of the foreign corporation's accumulated foreign earnings that have not previously been taxed. Earnings in the form of cash and cash equivalents will be taxed at a rate of 15.5% and all other earnings will be taxed at a rate of 8.0% . As of December 31, 2017, we have accrued income tax liabilities of $38.0 million under the Transition Toll Tax, of which $3.0 million is expected to be paid within one year. The Transition Toll Tax will be paid over an eight -year period, starting in 2018, and will not accrue interest. The Transition Toll Tax expense, net of foreign tax credit carryforwards of $14.0 million , is $24.0 million . Effect on Deferred Tax Assets and Liabilities Our deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. As our deferred tax liabilities exceed the balance of our deferred tax assets as of the date of enactment, we have recorded a tax benefit of $49.7 million , reflecting the decrease in the U.S. corporate income tax rate. Status of our Assessment The Company’s accounting for certain components of the U.S. Tax Act is not complete. However, the Company was able to make reasonable estimates of the effects and recorded provisional estimates for these items. In connection with our initial analysis of the impact of the U.S. Tax Act, the Company recorded a provisional benefit of $25.7 million . The benefit consists of an expense of $24.0 million , net of foreign tax credit carryforwards of $14.0 million , for the one-time Transition Toll Tax and a net benefit of $49.7 million in connection with the revaluation of the deferred tax assets and liabilities resulting from the decrease in the U.S. corporate tax rate. To compute the Transition Toll Tax, the Company must determine the amount of post-1986 accumulated earnings and profits of the relevant subsidiaries as well as the total non-U.S. income taxes on the earnings and profits. While the Company made a reasonable estimate of the Transition Toll Tax, further information will be gathered and analyzed in order to compute a more precise final amount. Additionally, the Company was able to make a reasonable estimate of the impact of the reduction of the U.S. corporate tax rate, but it may be impacted by other components of the U.S. Tax Act, including, but not limited to, the state tax effects of adjustments to federal temporary differences, and the impact of changes to limits in connection with the deductibility of executive compensation. Due to the complexity of the GILTI tax rules, the Company continues to analyze this provision and its impact and the proper application of ASC 740. Under GAAP, the Company is allowed to make an accounting policy choice to either treat the taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the "period cost method") or factor in such amounts in to the Company’s measurement of deferred taxes (the "deferred method"). The Company’s selection of an accounting policy in connection with GILTI is dependent upon additional analysis and potential future modifications to the existing structure, which are yet to be known. Accordingly, the Company has not recorded any adjustments related to GILTI in our financial statements and has not made a policy choice regarding whether to record deferred taxes on GILTI. The Company will continue its analysis of the impact of the U.S. Tax Act on the financial statements. The actual impact of the U.S. Tax Act may differ from the current estimate, possibly materially, due to changes to interpretations and assumptions the Company has made, future guidance that may be issued and actions taken by the Company as a result of the law. 2016 and 2015 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% was 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 non-cash 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 was 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% . We continually review the need for establishing or releasing valuation allowances on our deferred tax assets. In 2017, 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 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 . As of December 31, 2017 , the U.S. federal statute of limitations remains open for the year 2014 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 2 to 5 years. As of December 31, 2017 , years still open to examination by foreign tax authorities in major jurisdictions include Australia ( 2013 forward), Brazil ( 2011 forward), Canada ( 2009 forward), Germany ( 2011 forward), Sweden ( 2011 forward) and the U.K. ( 2016 forward). We are currently under examination in various foreign jurisdictions. Deferred tax liabilities of $83.6 million and deferred tax assets of $106.3 million acquired in the Esselte Acquisition, as of January 31, 2017 , have been recorded at their estimated fair values. See " Note 3. Acquisitions " for additional details. The components of the income tax expense were as follows: (in millions of dollars) 2017 2016 2015 Current expense Federal and other $ 41.1 $ 0.7 $ 2.1 Foreign 30.5 22.9 16.0 Total current income tax expense 71.6 23.6 18.1 Deferred expense Federal and other (47.4 ) 3.5 22.8 Foreign 2.2 2.5 4.6 Total deferred income tax (benefit) expense (45.2 ) 6.0 27.4 Total income tax expense $ 26.4 $ 29.6 $ 45.5 The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2017 2016 Deferred tax assets Compensation and benefits $ 18.5 $ 20.7 Pension 49.6 28.6 Inventory 10.6 12.4 Other reserves 15.2 19.1 Accounts receivable 5.7 7.0 Foreign tax credit carryforwards 29.1 — Net operating loss carryforwards 126.6 47.2 Other 5.6 10.3 Gross deferred income tax assets 260.9 145.3 Valuation allowance (45.0 ) (11.7 ) Net deferred tax assets 215.9 133.6 Deferred tax liabilities Depreciation (17.2 ) (12.6 ) Identifiable intangibles (237.9 ) (240.4 ) Gross deferred tax liabilities (255.1 ) (253.0 ) Net deferred tax liabilities $ (39.2 ) $ (119.4 ) The undistributed earnings of all non-U.S. subsidiaries were approximately $500 million as of December 31, 2017 . All of the undistributed earnings have become subject to U.S. income taxes due to the enactment of the U.S. Tax Act in 2017. As a result of the U.S. Tax Act, we are analyzing the global working capital and cash requirements, and potential tax liabilities attributable to future repatriation of cash, but we have yet to determine whether we plan to change our prior indefinite investment assertion under ASC 740. We will record the effects of any change in prior assertions in the period in which the change occurs. As of December 31, 2017 , $529.6 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 2018 through 2031 or have an unlimited carryover period. Interest and penalties related to unrecognized tax benefits are recognized within " Income tax (benefit) expense " in the Consolidated Statements of Income . As of December 31, 2017 , we have accrued a cumulative $14.7 million for interest and penalties on the unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions of dollars) 2017 2016 2015 Balance at beginning of year $ 43.7 $ 34.8 $ 45.9 Additions for tax positions of prior years 2.9 3.0 3.0 Reductions for tax positions of prior years (0.7 ) (0.5 ) — Esselte Acquisition 1.6 — — Increase resulting from foreign currency translation — 6.4 — Decrease resulting from foreign currency translation (0.3 ) — (14.1 ) Balance at end of year $ 47.2 $ 43.7 $ 34.8 As of December 31, 2017 , the amount of unrecognized tax benefits increased to $47.2 million , of which $45.5 million would impact our effective tax rate, if recognized. We expect the amount of unrecognized tax benefits to change within the next twelve months, most notably for the Brazilian Tax Assessment (see below) for the 2011 year, which lapsed without being assessed effective January 1, 2018; and for which the Company expects to release $5.5 million of the reserve in the first quarter of 2018. 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 the Mead Consumer and Office Products business ("Mead C&OP"), we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). In December of 2012, the Federal Revenue Department of the Ministry of Finance of Brazil ("FRD") issued a tax assessment (the "Brazilian Tax Assessment") against Tilibra, which challenged the tax deduction of goodwill from Tilibra's taxable income for the year 2007 (the "First Assessment"). 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 (the "Second Assessment"). Tilibra is disputing both of the tax assessments. Recently, the final administrative appeal of the Second Assessment was decided against the Company. We intend to challenge this decision in court in early 2018. In connection with the judicial challenge, we may be required to post security to guarantee payment of the Second Assessment, which represents $24.6 million of the current reserve, should we not prevail. The First Assessment is still being challenged 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. 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 2012 tax year remains open and subject to audit, and there can be no assurances that we will not receive an additional tax assessment regarding the goodwill for 2012. The time limit for issuing an assessment for 2011 expired in January 2018 and we did not receive an assessment. The time limit for issuing an assessment for 2012 will expire in January 2019 . 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 in connection with the First Assessment, based on the facts in our case and existing precedent, we believe the likelihood of a 150% penalty is not more likely than not as of December 31, 2017. We will continue to actively monitor administrative and judicial court decisions and evaluate their impact, if any, on our legal assessment of the ultimate outcome of our case. In addition, we will continue to accrue interest related to this contingency until such time as the outcome is known or until evidence is presented that we are more likely than not to prevail. During the years ended December 31, 2017 , 2016 and 2015 , we accrued additional interest as a charge to current tax expense of $2.2 million , $2.8 million and $2.7 million , respectively. At current exchange rates, our accrual through December 31, 2017 , including tax, penalties and interest is $38.7 million . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings per Share Total outstanding shares as of December 31, 2017 , 2016 and 2015 were 106.7 million , 107.9 million and 105.6 million respectively. Under our stock repurchase program, for the years ended December 31, 2017 and 2015 , we repurchased and retired 3.3 million and 7.7 million shares of common stock, respectively. No shares were repurchased during the year ended December 31, 2016 . For each of the years ended December 31, 2017 , 2016 and 2015 , we acquired 0.7 million shares, 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. (in millions) 2017 2016 2015 Weighted-average number of common shares outstanding - basic 108.1 107.0 108.8 Stock options 1.3 0.8 0.2 Stock-settled stock appreciation rights — — 0.3 Restricted stock units 1.5 1.4 1.3 Adjusted weighted-average shares and assumed conversions - diluted 110.9 109.2 110.6 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, 2017 , 2016 and 2015 , these shares were approximately 3.1 million , 3.6 million and 5.5 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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. Principal currencies hedged include the U.S. dollar, Euro, Australian dollar, Canadian dollar, Swedish krona, 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 with third parties to reduce the effect of fluctuating foreign currencies, primarily on foreign denominated inventory purchases and intercompany loans. The majority of the Company’s exposure to local currency movements is in Europe (the Euro, the Swedish krona and the British pound), Australia, Canada, Brazil, and Mexico. Forward currency contracts are used to hedge foreign denominated inventory purchases for Europe, Australia, Canada and Japan and are designated as cash flow hedges. Unrealized gains and losses on these contracts for inventory purchases are deferred in accumulated other comprehensive income (loss) ("AOCI") 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, 2017 and 2016 , the Company had cash flow designated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $93.5 million and $76.5 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 (income) expense, net " in the Consolidated Statements of Income and are largely offset by the change in the current translated value of the hedged item. The periods of the forward foreign exchange contracts correspond to the periods of the hedged transactions, and do not extend beyond December 2018 , except for one which extends to December 2020. As of December 31, 2017 and 2016 , we have undesignated foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $95.0 million and $52.1 million , respectively. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2017 and 2016 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2017 December 31, 2016 Balance Sheet December 31, 2017 December 31, 2016 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.5 $ 4.0 Other current liabilities $ 0.5 $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.4 Other current liabilities 0.7 0.3 Foreign exchange contracts Other non-current assets 24.2 — Other non-current liabilities 24.2 — Total derivatives $ 25.1 $ 4.4 $ 25.4 $ 0.3 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, 2017 , 2016 and 2015 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss (in millions of dollars) 2017 2016 2015 2017 2016 2015 Cash flow hedges: Foreign exchange contracts $ (4.9 ) $ (0.1 ) $ 8.2 Cost of products sold $ 1.6 $ 2.5 $ (10.9 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2017 2016 2015 Foreign exchange contracts Other (income) expense, net $ (1.5 ) $ (2.0 ) $ (0.5 ) |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : (in millions of dollars) December 31, 2017 December 31, 2016 Assets: Forward currency contracts $ 25.1 $ 4.4 Liabilities: Forward currency contracts 25.4 0.3 Our forward currency contracts are included in " Other current assets ," " Other non-current assets ," " Other current liabilities ," or " Other non-current liabilities " and do not extend beyond December 2018, except for one which extends to December 2020. 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 $939.5 million and $703.5 million and the estimated fair value of total debt was $951.5 million and $708.4 million as of December 31, 2017 and 2016 , 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, 2017 | |
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, 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 (loss), net of tax 1.7 — 2.8 4.5 Balance at December 31, 2016 2.5 (285.9 ) (136.0 ) (419.4 ) Other comprehensive loss before reclassifications, net of tax (3.6 ) (19.5 ) (23.4 ) (46.5 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1.3 — 3.5 4.8 Balance at December 31, 2017 $ 0.2 $ (305.4 ) $ (155.9 ) $ (461.1 ) The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 were as follows: Year Ended December 31, (in millions of dollars) 2017 2016 2015 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 $ (1.6 ) $ (2.4 ) $ 10.9 Cost of products sold Tax benefit (expense) 0.3 0.7 (3.2 ) Income tax (benefit) expense Net of tax $ (1.3 ) $ (1.7 ) $ 7.7 Defined benefit plan items: Amortization of actuarial loss $ (4.6 ) $ (3.1 ) $ (3.6 ) (1) Amortization of prior service cost (0.4 ) (0.4 ) (0.1 ) (1) Total before tax (5.0 ) (3.5 ) (3.7 ) Tax benefit 1.5 $ 0.7 $ 1.2 Income tax (benefit) expense Net of tax $ (3.5 ) $ (2.8 ) $ (2.5 ) Total reclassifications for the period, net of tax $ (4.8 ) $ (4.5 ) $ 5.2 (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, 2017 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 16. Information on Business Segments Effective in the first quarter of 2017, as a result of the Esselte Acquisition, the Company realigned its operating structure, which affected the makeup of its business segments for financial reporting purposes. The Company has three operating business segments each of which is comprised of different geographic regions. The Company no longer reports the results of its Computer Products Group as a separate segment. Results of the former Computer Products Group are reflected in the appropriate geographic segment based on the region from which sales are made. The Company's three realigned business segments are as follows: Operating Segment Geographic Regions Primary Brands ACCO Brands North America United States and Canada AT-A-GLANCE ® , Five Star ® , GBC ® , Hilroy ® , Kensington ® , Mead ® , Quartet ® , and Swingline ® ACCO Brands EMEA Europe, Middle East and Africa Derwent ® , Esselte ® , GBC ® , Kensington ® , Leitz ® , NOBO ® , Rapid ® , and Rexel ® ACCO Brands International Australia, Latin America and Asia-Pacific Artline ® , GBC ® , Kensington ® , Marbig ® , Quartet ® , Rexel ® , Tilibra ® , and Wilson Jones ® We have restated our financial statements for each of the periods presented to reflect this change in reportable business segments. Each of the Company's three operating segments designs, markets, sources, manufactures and sells recognized consumer and end-user demanded brands used in businesses, schools and homes. Product designs are tailored based on end-user preferences in each geographic region. Our product categories include storage and organization; stapling; punching; laminating, binding and shredding machines and related consumable supplies; whiteboards; notebooks; calendars; computer accessories; and do-it-yourself tools, among others. Our portfolio of consumer and end-user demanded brands includes both globally and regionally recognized brands. ACCO Brands North America The ACCO Brands North America segment is comprised of the United States and Canada where the Company is a leading branded supplier of consumer and business products under brands such as AT-A-GLANCE ® , Five Star ® , GBC ® , Hilroy ® , Kensington ® , Mead ® , Quartet ® , and Swingline ® . The ACCO Brands North America segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, and computer accessories, among others, which are primarily used in schools, homes and businesses. The majority of revenue in this segment is related to consumer and home products and is associated with the "back-to-school" season and calendar year-end purchases; we expect sales of consumer products to become an increasingly greater percentage of our revenue as they are faster growing than most business-related products. ACCO Brands EMEA The ACCO Brands EMEA segment is comprised of Europe, the Middle East and Africa, where the Company is a leading branded supplier of consumer and business products under brands such as Derwent ® , Esselte ® , GBC ® , Kensington ® , Leitz ® , NOBO ® , Rapid ® , and Rexel ® . The ACCO Brands EMEA segment designs, manufactures or sources and distributes storage and organization products (such as lever-arch binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, do-it-yourself tools, and computer accessories, among others, which are primarily used in businesses, homes and schools. ACCO Brands International The ACCO Brands International segment is comprised of Australia, Latin America and Asia-Pacific where the Company is a leading branded supplier of consumer and business products under brands such as Artline ® , GBC ® , Kensington ® , Marbig ® , Quartet ® , Rexel ® , Tilibra ® , and Wilson Jones ® , among others. The ACCO Brands International segment designs, sources or manufactures and distributes school notebooks, calendars, whiteboards, storage and organization products (such as three-ring binders, sheet protectors and indexes), stapling, punching, laminating, binding and shredding products, writing instruments, and janitorial supplies, among others, which are primarily used in businesses, schools and homes. The majority of revenue in this segment is related to consumer products and is associated with the “back-to-school” season and calendar year-end purchases; we expect sales of consumer products to become an increasingly greater percentage of our revenue as they are faster growing than most business-related products. Customers ACCO Brands markets and sells its strong multi-product offering broadly and is not dependent on any one channel. Our products are sold through all relevant channels, namely retailers, including: mass retailers; e-tailers; discount, drug/grocery and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; and contract stationers. We also sell directly to commercial and consumer end-users through our e-commerce platform and our direct sales organization. Net sales by business segment for the years ended December 31, 2017 , 2016 and 2015 were as follows: (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 999.0 $ 1,016.1 $ 1,025.7 ACCO Brands EMEA 542.8 171.8 199.7 ACCO Brands International 407.0 369.2 285.0 Net sales $ 1,948.8 $ 1,557.1 $ 1,510.4 Operating income by business segment for the years ended December 31, 2017 , 2016 and 2015 was as follows: (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 155.6 $ 153.3 $ 151.6 ACCO Brands EMEA 37.1 12.6 18.0 ACCO Brands International 50.9 49.4 29.1 Segment operating income 243.6 215.3 198.7 Corporate (1) (50.6 ) (48.0 ) (35.2 ) Operating income (2) 193.0 167.3 163.5 Interest expense 41.1 49.3 44.5 Interest income (5.8 ) (6.4 ) (6.6 ) Equity in earnings of joint-venture — (2.1 ) (7.9 ) Other (income) expense, net (0.4 ) 1.4 2.1 Income before income tax $ 158.1 $ 125.1 $ 131.4 (1) Corporate operating loss in 2017 , 2016 and 2015 includes transaction costs of $5.0 million , $10.5 million and $0.6 million respectively, primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. (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) 2017 2016 ACCO Brands North America (3) $ 413.9 $ 404.3 ACCO Brands EMEA (3) 287.6 104.0 ACCO Brands International (3) 338.2 323.4 Total segment assets 1,039.7 831.7 Unallocated assets 1,758.6 1,232.0 Corporate (3) 0.8 0.8 Total assets $ 2,799.1 $ 2,064.5 (3) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. 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) 2017 2016 ACCO Brands North America (4) $ 1,204.3 $ 1,206.8 ACCO Brands EMEA (4) 711.7 155.2 ACCO Brands International (4) 634.0 622.5 Total segment assets 2,550.0 1,984.5 Unallocated assets 248.3 79.2 Corporate (4) 0.8 0.8 Total assets $ 2,799.1 $ 2,064.5 (4) Represents total assets, excluding: intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. Capital spend by segment was as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 16.3 $ 10.3 $ 12.5 ACCO Brands EMEA 5.1 2.9 10.3 ACCO Brands International 9.6 5.3 4.8 Total capital spend $ 31.0 $ 18.5 $ 27.6 Depreciation expense by segment was as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 17.7 $ 19.7 $ 23.3 ACCO Brands EMEA 11.9 5.0 3.4 ACCO Brands International 6.0 5.7 5.7 Total depreciation $ 35.6 $ 30.4 $ 32.4 Property, plant and equipment, net by geographic region was as follows: December 31, (in millions of dollars) 2017 2016 U.S. $ 102.3 $ 103.0 Brazil 35.6 36.8 U.K. 30.5 30.3 Poland 26.8 — Germany 21.2 — Australia 14.7 12.5 Other countries 47.4 15.8 Property, plant and equipment, net $ 278.5 $ 198.4 Net sales by geographic region (5) were as follows: December 31, (in millions of dollars) 2017 2016 2015 U.S. $ 880.4 $ 894.4 $ 904.3 Australia 173.5 156.5 91.8 Germany 141.4 — — Canada 118.6 121.7 121.4 Brazil 114.6 102.6 92.0 Netherlands 111.3 101.4 108.7 Sweden 61.3 — — U.K. 59.2 59.1 76.4 Mexico 50.6 47.3 49.6 Other countries 237.9 74.1 66.2 Net sales $ 1,948.8 $ 1,557.1 $ 1,510.4 (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 $615.1 million , $663.5 million and $637.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Net sales to no customer exceeded 10% of net sales for the year ended December 31, 2017 . Net sales to Staples, our largest customer, were $210.5 million ( 14% ) and $204.1 million ( 14% ) for the years ended December 31, 2016 and 2015 , respectively. Net sales to Walmart were $161.7 million ( 10% ) for the year ended December 31, 2016 . Net sales to Office Depot were $152.5 million ( 10% ) for the year ended December 31, 2015. Net sales to no other customers exceeded 10% of net sales for any of the last three years. 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, 2017 and 2016 , our top five trade account receivables totaled $148.4 million and $162.2 million , respectively. |
Joint Venture Investment
Joint Venture Investment | 12 Months Ended |
Dec. 31, 2017 | |
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 using 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 . Year Ended December 31, (in millions of dollars) 2016 2015 Net sales $ 34.9 $ 111.2 Gross profit 14.1 45.5 Net income 4.1 15.8 On May 2, 2016, the Company completed the PA Acquisition and accordingly, the results of Pelikan Artline are included in the Company's consolidated financial statements from the date of the PA Acquisition, May 2, 2016. For further information, see " Note 3. Acquisitions " for details on the PA Acquisition. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Pending Litigation In connection with our May 1, 2012 acquisition of the Mead C&OP business, we assumed all of the tax liabilities for the acquired foreign operations including Tilibra Produtos de Papelaria Ltda. ("Tilibra"). For further information 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. We are party to various lawsuits and regulatory proceedings, primarily related to alleged patent infringement and employee terminations as well as other claims incidental to our business. In addition, we may be unaware of third party claims of intellectual property infringement relating to our technology, brands or products and we may face other claims related to business operations. Any litigation regarding patents or other intellectual property could be costly and time-consuming and might require us to pay monetary damages or enter into costly license agreements. We also may be subject to injunctions against development and sale of certain of our products. It is the opinion of management that (other than the Brazilian Tax Assessment) the ultimate resolution of currently outstanding 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. Further, future claims, lawsuits and legal proceedings could materially and adversely affect our business, reputation, results of operations and financial condition. Lease Commitments Future minimum rental payments for all non-cancelable operating leases (reduced by minor amounts from subleases) as of December 31, 2017 were as follows: (in millions of dollars) 2018 $ 28.1 2019 25.0 2020 21.6 2021 16.2 2022 12.2 Thereafter 17.6 Total minimum rental payments 120.7 Less minimum rentals to be received under non-cancelable subleases 2.0 Future minimum payments for operating leases, net of sublease rental income $ 118.7 Total rental expense reported in our Consolidated Statements of Income for all non-cancelable operating leases (reduced by minor amounts for subleases) amounted to $30.9 million , $24.2 million and $21.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Unconditional Purchase Commitments Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2017 were as follows: (in millions of dollars) 2018 $ 96.8 2019 0.2 2020 0.1 2021 — 2022 — Thereafter — Total unconditional purchase commitments $ 97.1 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. This includes environmental laws and regulations that affect the design and composition of certain of our products. 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 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, 2017 | |
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 2017 and 2016 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2017 Net sales (1) $ 359.8 $ 490.0 $ 532.2 $ 566.8 Gross profit 110.8 168.5 177.9 199.2 Operating income 9.3 45.4 58.7 79.6 Net income $ 3.6 $ 23.5 $ 30.6 $ 74.0 Per share: Basic income per share (2) $ 0.03 $ 0.21 $ 0.28 $ 0.69 Diluted income per share (2) $ 0.03 $ 0.21 $ 0.28 $ 0.68 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 (1) Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year and we expect these trends to continue. 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 product categories we sell lend themselves to calendar year-end purchase timing, including 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 shares of common stock and repurchasing of shares of common stock during the year. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20. Subsequent Events On February 12, 2018, the Company's Board of Directors approved the initiation of a dividend program under which the Company will pay a regular quarterly cash dividend of $0.06 per share on its common stock. The first dividend is payable on March 21, 2018 to stockholders of record as of the close of business on March 1, 2018 . Also on February 14, 2018, the Company announced that its Board of Directors had approved an authorization to repurchase up to an additional $100 million in shares of its common stock. As of December 31, 2017, the Company had $84.0 million remaining of its prior authorizations. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 Balance at beginning of year $ 4.5 $ 4.8 $ 5.5 Additions charged to expense — 0.2 3.2 Deductions - write offs (1.1 ) (0.8 ) (3.5 ) Acquisitions 1.7 0.1 — Foreign exchange changes 0.3 0.2 (0.4 ) Balance at end of year $ 5.4 $ 4.5 $ 4.8 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) 2017 2016 2015 Balance at beginning of year $ 9.4 $ 11.7 $ 12.0 Additions charged to expense 23.7 22.5 30.3 Deductions - returns (24.5 ) (24.9 ) (30.4 ) Acquisitions 0.8 — — Foreign exchange changes 0.3 0.1 (0.2 ) Balance at end of year $ 9.7 $ 9.4 $ 11.7 Allowances for Cash Discounts Changes in the allowances for cash discounts were as follows: Year Ended December 31, (in millions of dollars) 2017 2016 2015 Balance at beginning of year $ 1.8 $ 2.2 $ 2.0 Additions charged to expense 22.9 13.6 14.2 Deductions - discounts taken (22.6 ) (14.1 ) (13.9 ) Acquisitions 0.8 0.2 — Foreign exchange changes 0.1 (0.1 ) (0.1 ) Balance at end of year $ 3.0 $ 1.8 $ 2.2 Warranty Reserves Changes in the reserve for warranty claims were as follows: Year Ended December 31, (in millions of dollars) 2017 2016 2015 Balance at beginning of year $ 1.9 $ 1.7 $ 1.8 Provision for warranties issued 2.8 2.2 1.8 Deductions - settlements made (in cash or in kind) (2.7 ) (2.2 ) (1.8 ) Acquisitions 1.8 0.3 — Foreign exchange changes 0.3 (0.1 ) (0.1 ) Balance at end of year $ 4.1 $ 1.9 $ 1.7 Income Tax Valuation Allowance Changes in the deferred tax valuation allowances were as follows: Year Ended December 31, (in millions of dollars) 2017 2016 2015 Balance at beginning of year $ 11.7 $ 22.1 $ 23.9 Charge for effect of U.S. Tax Act 15.1 — — Credits to expense (0.7 ) (0.7 ) (0.3 ) Charged (credited) to other accounts 1.2 (9.3 ) (1.1 ) Acquisitions 16.1 — — Foreign exchange changes 1.6 (0.4 ) (0.4 ) Balance at end of year $ 45.0 $ 11.7 $ 22.1 |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 a customer's 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 formulaic basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with a specific customer. 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 same 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 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 , $0.1 million and $1.3 million for the years ended December 31, 2017 , 2016 and 2015 , 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 test 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 ("Step-Zero") or quantitative ("Step-1") 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 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 our indefinite-lived trade names in the second quarter of 2017 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 Step-1 tests in the second quarter of 2017. The following long-term growth rates and discount rates were used, 1.5% and 10.5% for Mead ® , and 1.5% and 11.0% for Hilroy ® , respectively. We concluded that neither the Mead ® nor Hilroy ® trade names were impaired. The fair value of the Mead ® trade name was less than 30% above its carrying value as of the second quarter of 2017 Step-1 test. As of December 31, 2017 , the carrying value of the Mead ® trade name was $113.3 million . As of June 1, 2017, we changed the indefinite-lived Hilroy ® trade name to an amortizable intangible asset. The change was made as a result of decisions regarding the Company's future use of the trade name. The Company commenced amortizing the Hilroy trade name June 1, 2017 on a straight-line basis over a life of 30 years. |
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 ACCO Brands North America, ACCO Brands EMEA and ACCO Brands International. 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 ("Step-Zero") 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 a quantitative goodwill impairment test ("Step-1") as required by GAAP. We performed our annual assessment in the second quarter of 2017 , 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 quantitative goodwill ("Step-1") 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, an impairment charge is recognized, however, the loss recognized is not to exceed the total amount of goodwill allocated to the reporting unit. |
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 any assessments are received, 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 our estimate of potential bad debt concurrent with recognizing revenue. |
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. |
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. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses 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, and corporate expenses). |
Advertising Costs | Advertising Costs Advertising costs amounted to $114.8 million , $110.1 million and $120.9 million for the years ended December 31, 2017 , 2016 and 2015 , 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 same period in which the related revenue is recognized. |
Research and Development | Research and Development Research and development expenses, which amounted to $23.5 million , $21.0 million and $20.0 million for the years ended December 31, 2017 , 2016 and 2015 , 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 due to 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. Effective in 2017, the Company made the accounting policy election to account for forfeitures as they occur, which affects the timing of stock compensation expense. See " Recently Adopted Accounting Standards " below for details. |
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) ("AOCI") 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 record 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 AOCI and are recognized in the Consolidated Statements of Income 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, Swedish krona, British pound and Japanese yen. |
Recent Accounting Pronouncements | Recent Accounting Standards Updates In May 2014 the Financial Accounting Standards Board (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. The Company analyzed the impact of ASU 2014-09 across all of its revenue streams. This included reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company also completed contract reviews and validated the results of applying the new revenue guidance. Upon the implementation of ASU 2014-09, the Company expects to accelerate the timing of some of its revenue recognition with respect to its customer contracts for private label and customized products. This acceleration of revenue would only be for contracts where a right to payment exists and there is no alternative use for the product, as prescribed by ASU 2014-09. The Company will adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance will be recognized as an adjustment to the opening balance of retained earnings in the first quarter of 2018. The Company expects to record an increase to its opening balance of retained earnings of approximately $1.6 million , net of tax effect, in the first quarter ending March 31, 2018. The Company is also in the process of updating its controls and systems, and is still finalizing its new disclosures required in 2018. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). In December 2017, the U.S. Tax Act was signed into law. Prior to ASU 2018-02, GAAP required deferred tax assets and deferred tax liabilities to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period including the enactment date. The U.S. Tax Act reduces the historical U.S corporate tax rate and the effect of that change is required to be included in income from continuing operations, even if the original tax effects were recorded in Accumulated Other Comprehensive Income ("AOCI"). This could cause some tax effects to become stranded in AOCI as they are not updated to reflect the new tax rate. This new standard allows a company to elect to reclass the stranded tax effects resulting from the U.S. Tax Act from AOCI to retained earnings. The adoption of the new standard may be applied in the period of adoption or retrospectively to each period(s) effected by the change in the corporate tax rate. The Company is currently in the process of evaluating the impact of adoption of ASU 2018-02 on the Company’s consolidated financial statements. ASU 2018-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the standard is permitted including adoption in any interim period for which financial statements have not been issued. In August 2017, the FASB issued ASU No. 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The new standard improves certain aspects of the hedge accounting model, including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. The Company is currently in the process of assessing the impact of adoption of ASU 2017-12 on the Company's consolidated financial statements. The Company will adopt ASU 2017-12 effective with its 2019 fiscal year. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new standard requires presentation of all components of net periodic pension and postretirement benefit costs, other than service costs, in an income statement line item outside of a subtotal of income from operations. The service cost component will continue to be presented in the same line item as other employee compensation costs. In addition, the guidance allows only service costs to be eligible for capitalization. The guidance is required to be adopted retrospectively with respect to the income statement requirement and prospectively for the capitalization requirement. We do not expect the change in the capitalization requirement to have a material effect on our financial statements, but it is expected to have a material effect on our operating income. The Company will use the practical expedient that permits an employer to use the amounts disclosed in " Note 5. Pension and Other Retiree Benefits " as the basis for applying the retrospective presentation requirements. On this basis, the Company's operating income for the years ended December 31, 2017 and 2016 would be reduced by approximately $8.4 million and $8.2 million , respectively. The new guidance is effective with the first quarter of the Company's 2018 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. Lease expense is recorded on the income statement in a manner similar to current accounting. 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. 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 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 adopted ASU 2016-09 effective with the first quarter of 2017. The Company made the allowed accounting policy election to account for forfeitures as they occur, which affects the timing of stock compensation expense . The change in accounting of forfeitures, along with the changes related to how excess tax benefits are recognized, has been done using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the first quarter of 2017, which was not material. An effect of the change was to require recognition of excess tax benefits in our Consolidated Statements of Income rather than as a component of equity under the previous standard; therefore, for the year ended December 31, 2017, a tax benefit of $5.6 million was recorded in the Company's Consolidated Statements of Income . 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 adopted ASU 2015-11 effective with the first quarter of 2017 and it had an immaterial effect on the Company's consolidated financial statements. |
Significant Accounting Polici31
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 Land and improvements $ 28.0 $ 18.9 Buildings and improvements to leaseholds 152.6 119.1 Machinery and equipment 453.5 382.0 Construction in progress 11.1 8.0 645.2 528.0 Less: accumulated depreciation (366.7 ) (329.6 ) Property, plant and equipment, net (1) $ 278.5 $ 198.4 (1) Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million , $7.0 million and $6.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Pro Forma Consolidated Results | Had the Esselte Acquisition occurred on January 1, 2016, unaudited pro forma consolidated results for the years ended December 31, 2017 and 2016 would have been as follows: Year Ended December 31, (in millions of dollars, except per share data) 2017 2016 Net sales $ 1,992.3 $ 2,006.3 Net income 149.2 55.6 Net income per common share (diluted) $ 1.35 $ 0.51 |
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 adjustment $ 103.7 Fair value of previously held equity interest 69.3 Consideration for Pelikan Artline $ 173.0 |
Esselte Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the allocation of the consideration given to the fair values of the assets acquired and liabilities assumed at the date of acquisition. (in millions of dollars) At January 31, 2017 Calculation of Goodwill: Purchase price, net of working capital adjustment $ 326.5 Plus fair value of liabilities assumed: Accounts payable and accrued liabilities 121.9 Deferred tax liabilities 83.6 Pension obligations 174.1 Other non-current liabilities 5.8 Fair value of liabilities assumed $ 385.4 Less fair value of assets acquired: Cash acquired 34.2 Accounts receivable 60.0 Inventory 41.9 Property, plant and equipment 75.6 Identifiable intangibles 277.0 Deferred tax assets 106.3 Other assets 10.4 Fair value of assets acquired $ 605.4 Goodwill $ 106.5 |
PA Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed | The following table presents the 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 adjustment $ 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 |
Long-term Debt and Short-term33
Long-term Debt and Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : (in millions of dollars) 2017 2016 Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2017) $ 345.0 $ — U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) — 81.0 Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.29% at December 31, 2017) 60.0 — Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) — 70.3 U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.53% at December 31, 2017) 48.9 — U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) — 63.7 Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.28% at December 31, 2017) 85.0 — 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%) 400.0 400.0 Other borrowings 0.6 0.6 Total debt 939.5 703.5 Less: Current portion 43.2 68.5 Debt issuance costs, unamortized 7.1 7.3 Long-term debt, net $ 889.2 $ 627.7 |
Schedule of Credit Spread Based on Consolidated Leverage Ratio | 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%" id="sjs-B5">Amounts outstanding under the 2017 Credit Agreement bear interest at a rate per annum equal to the Euro Rate with a 0% floor, the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the 2017 Credit Agreement, plus an "applicable rate." The applicable rate applied to outstanding Euro, Australian and Canadian dollar denominated loans and Base Rate loans is based on the Company’s Consolidated Leverage Ratio (as defined in the 2017 Credit Agreement) as follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans > 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% |
Pension and Other Retiree Ben34
Pension and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation (PBO) Projected benefit obligation at beginning of year $ 200.1 $ 198.7 $ 345.1 $ 347.1 $ 6.7 $ 8.1 Service cost 1.4 1.3 1.9 0.8 — 0.1 Interest cost 7.1 7.3 13.4 10.3 0.2 0.2 Actuarial loss (gain) 14.7 3.1 13.2 55.6 — (0.2 ) Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (16.8 ) (10.3 ) (26.5 ) (13.0 ) (0.5 ) (0.5 ) Curtailment gain — — — (0.6 ) — (0.8 ) Foreign exchange rate changes — — 59.8 (55.2 ) 0.3 (0.3 ) Esselte Acquisition — — 288.0 — — — Projected benefit obligation at end of year 206.5 200.1 695.0 345.1 6.8 6.7 Change in plan assets Fair value of plan assets at beginning of year 150.5 145.8 302.7 318.9 — — Actual return on plan assets 21.1 14.1 21.3 41.8 — — Employer contributions 7.3 0.9 14.0 4.9 0.4 0.4 Participants’ contributions — — 0.1 0.1 0.1 0.1 Benefits paid (16.8 ) (10.3 ) (26.5 ) (13.0 ) (0.5 ) (0.5 ) Foreign exchange rate changes — — 38.2 (50.0 ) — — Esselte Acquisition — — 114.0 — — — Fair value of plan assets at end of year 162.1 150.5 463.8 302.7 — — Funded status (Fair value of plan assets less PBO) $ (44.4 ) $ (49.6 ) $ (231.2 ) $ (42.4 ) $ (6.8 ) $ (6.7 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other non-current assets $ — $ — $ 0.6 $ 0.3 $ — $ — Other current liabilities — — 6.9 0.4 0.6 0.6 Pension and post-retirement benefit obligations (1) 44.4 49.6 224.9 42.3 6.2 6.1 Components of accumulated other comprehensive income, net of tax: Unrecognized actuarial loss (gain) 56.9 54.2 100.5 83.7 (3.6 ) (3.5 ) Unrecognized prior service cost (credit) 1.7 2.0 (0.2 ) (0.2 ) (0.2 ) (0.2 ) (1) Pension and post-retirement obligations of $275.5 million as of December 31, 2017 , increased from $98.0 million as of December 31, 2016 , primarily due to the Esselte Acquisition. |
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 ending December 31, 2018 : Pension Post-retirement (in millions of dollars) U.S. International Actuarial loss (gain) $ 2.7 $ 3.4 $ (0.4 ) Prior service cost 0.4 — — $ 3.1 $ 3.4 $ (0.4 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets: U.S. International (in millions of dollars) 2017 2016 2017 2016 Projected benefit obligation $ 206.5 $ 200.1 $ 675.3 $ 326.9 Accumulated benefit obligation 205.4 198.3 662.8 320.4 Fair value of plan assets 162.1 150.5 443.5 284.2 |
Components of Net Periodic Benefit (Income) Expense for Pension and Post-Retirement Plans | The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2017 , 2016 , and 2015 , respectively, were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 1.4 $ 1.3 $ 1.6 $ 1.9 $ 0.8 $ 0.9 $ — $ 0.1 $ 0.1 Interest cost 7.1 7.3 8.7 13.4 10.3 12.9 0.2 0.2 0.4 Expected return on plan assets (12.3 ) (11.9 ) (12.2 ) (21.8 ) (17.6 ) (21.9 ) — — — Amortization of net loss (gain) 2.0 1.8 2.1 3.0 2.3 2.4 (0.4 ) (0.4 ) (0.4 ) Amortization of prior service cost (credit) 0.4 0.4 0.4 — — — — — (0.3 ) Curtailment gain — — — — — — — (0.6 ) — Settlement gain — — — — — — — — (0.5 ) Net periodic benefit (income) expense $ (1.4 ) $ (1.1 ) $ 0.6 $ (3.5 ) $ (4.2 ) $ (5.7 ) $ (0.2 ) $ (0.7 ) $ (0.7 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations that were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International (in millions of dollars) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Current year actuarial loss (gain) $ 5.9 $ 0.9 $ 7.1 $ 14.3 $ 27.9 $ 3.8 $ — $ (1.0 ) $ (3.4 ) Amortization of actuarial (loss) gain (2.0 ) (1.8 ) (2.1 ) (3.0 ) (2.3 ) (2.4 ) 0.4 1.0 0.9 Current year prior service credit — — — — — — — — (0.2 ) Amortization of prior service (cost) credit (0.4 ) (0.4 ) (0.4 ) — — — — — 0.3 Foreign exchange rate changes — — — 10.7 (15.5 ) (5.6 ) (0.2 ) 0.5 0.1 Total recognized in other comprehensive income (loss) $ 3.5 $ (1.3 ) $ 4.6 $ 22.0 $ 10.1 $ (4.2 ) $ 0.2 $ 0.5 $ (2.3 ) Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) $ 2.1 $ (2.4 ) $ 5.2 $ 18.5 $ 5.9 $ (9.9 ) $ — $ (0.2 ) $ (3.0 ) |
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.7 % 4.3 % 4.6 % 2.3 % 2.7 % 3.7 % 3.2 % 3.4 % 3.9 % Rate of compensation increase N/A N/A N/A 2.8 % 3.1 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Pension Post-retirement U.S. International 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.8 % 4.6 % 4.2 % 2.3 % 3.7 % 3.4 % 3.4 % 3.9 % 3.7 % Expected long-term rate of return 7.8 % 7.8 % 8.0 % 5.5 % 6.0 % 6.5 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.1 % 3.0 % 3.0 % N/A N/A N/A The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit (income) expense as of December 31, 2017 , 2016 , and 2015 were as follows: Post-retirement 2017 2016 2015 Health care cost trend rate assumed for next year 7 % 8 % 7 % 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 2025 2024 |
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, 2017 and 2016 were as follows: 2017 2016 U.S. International U.S. International Asset category Equity securities 57 % 26 % 68 % 33 % Fixed income 30 29 25 51 Real estate 6 5 — 3 Other (2) 7 40 7 13 Total 100 % 100 % 100 % 100 % (2) Multi-strategy hedge funds, insurance contracts 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 2018 $ 40.1 $ 0.6 2019 39.2 0.6 2020 39.8 0.6 2021 40.7 0.5 2022 40.9 0.5 Years 2023 - 2027 212.4 2.4 |
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 2017 2016 2017 2016 2015 Surcharge Imposed PACE Industry Union-Management Pension Fund 11-6166763 / 001 Red Red Implemented $ 0.2 $ 0.3 $ 0.3 Yes 6/30/2018 |
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, 2017 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Mutual funds $ 94.8 $ — $ — $ 94.8 Exchange traded funds 56.6 — — 56.6 Common collective trust funds — 1.7 — 1.7 Investments measured at net asset value (3) Multi-strategy hedge funds 9.0 Total $ 151.4 $ 1.7 $ — $ 162.1 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 |
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, 2017 were as follows: (in millions of dollars) Quoted Prices Significant Significant Fair Value Cash and cash equivalents $ 2.2 $ — $ — $ 2.2 Equity securities 102.0 — — 102.0 Exchange traded funds 16.9 — — 16.9 Corporate debt securities — 72.2 — 72.2 Multi-strategy hedge funds — 133.4 — 133.4 Insurance contracts — 24.4 — 24.4 Government debt securities — 61.0 — 61.0 Investments measured at net asset value (3) Multi-strategy hedge funds 30.5 Real estate 21.2 Total $ 121.1 $ 291.0 $ — $ 463.8 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 . (in millions of dollars) 2017 2016 2015 Selling, general and administrative expense $ 17.0 $ 19.4 $ 16.0 Loss before income tax (17.0 ) (19.4 ) (16.0 ) Income tax benefit (6.1 ) (7.0 ) (5.7 ) Net loss $ (10.9 ) $ (12.4 ) $ (10.3 ) |
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, 2017 , 2016 and 2015 was as follows: (in millions of dollars) 2017 2016 2015 Stock option compensation expense $ 2.4 $ 2.9 $ 3.9 RSU compensation expense 4.3 4.5 4.7 PSU compensation expense 10.3 12.0 7.4 Total stock-based compensation expense $ 17.0 $ 19.4 $ 16.0 |
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, 2017 2015 Weighted average expected lives 4.8 years 4.5 years Weighted average risk-free interest rate 2.04 % 1.47 % Weighted average expected volatility 39.7 % 46.5 % Expected dividend yield 0.0 % 0.0 % Weighted average grant date fair value $ 4.70 $ 3.00 |
Summary of Changes in Stock Options and SSARs | A summary of the changes in stock options outstanding under the Plan during the year ended December 31, 2017 is presented below: Number Weighted Weighted Average Aggregate Outstanding at December 31, 2016 4,133,874 $ 7.82 Granted 745,772 $ 12.75 Exercised (547,107 ) $ 7.72 Forfeited (59,888 ) $ 9.57 Outstanding at December 31, 2017 4,272,651 $ 8.68 3.3 years $ 15.5 million Exercisable shares at December 31, 2017 3,157,606 $ 7.88 2.6 years $ 13.6 million |
Summary of Changes in RSUs Outstanding | A summary of the changes in the RSUs outstanding under the Plan during 2017 is presented below: Stock Weighted Outstanding at December 31, 2016 1,910,669 $ 7.23 Granted 438,521 $ 12.65 Vested and distributed (691,319 ) $ 6.21 Vested and deferred distributed (38,042 ) $ 9.46 Forfeited and cancelled (85,771 ) $ 8.66 Outstanding at December 31, 2017 1,534,058 $ 9.10 Vested and deferred at December 31, 2017 (1) 326,835 $ 9.16 (1) Included in outstanding at December 31, 2017 . 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 the Plan during 2017 is presented below: Stock Weighted Outstanding at December 31, 2016 4,281,792 $ 7.09 Granted 706,732 $ 12.75 Vested (1,502,327 ) $ 6.16 Forfeited and cancelled (131,465 ) $ 8.24 Other - increase due to performance of PSU's 176,580 $ 11.72 Outstanding at December 31, 2017 3,531,312 $ 8.82 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories were as follows: December 31, (in millions of dollars) 2017 2016 Raw materials $ 38.2 $ 30.3 Work in process 4.1 3.0 Finished goods 211.9 176.7 Total inventories $ 254.2 $ 210.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 Land and improvements $ 28.0 $ 18.9 Buildings and improvements to leaseholds 152.6 119.1 Machinery and equipment 453.5 382.0 Construction in progress 11.1 8.0 645.2 528.0 Less: accumulated depreciation (366.7 ) (329.6 ) Property, plant and equipment, net (1) $ 278.5 $ 198.4 (1) Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million , $7.0 million and $6.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Goodwill and Identifiable Int38
Goodwill and Identifiable Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
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 ACCO ACCO Total Balance at December 31, 2016 380.7 39.5 166.9 587.1 Esselte Acquisition (5.1 ) 113.2 (1.6 ) 106.5 Translation — (23.3 ) — (23.3 ) Balance at December 31, 2017 $ 375.6 $ 129.4 $ 165.3 $ 670.3 |
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, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 (in millions of dollars) Gross Accumulated Net Gross Accumulated Net Indefinite-lived intangible assets: Trade names $ 599.5 $ (44.5 ) (1) $ 555.0 $ 483.3 $ (44.5 ) (1) $ 438.8 Amortizable intangible assets: Trade names 195.3 (59.4 ) 135.9 121.2 (48.8 ) 72.4 Customer and contractual relationships 243.0 (99.3 ) 143.7 127.5 (73.8 ) 53.7 Patents 5.8 (0.5 ) 5.3 0.8 — 0.8 Subtotal 444.1 (159.2 ) 284.9 249.5 (122.6 ) 126.9 Total identifiable intangibles $ 1,043.6 $ (203.7 ) $ 839.9 $ 732.8 $ (167.1 ) $ 565.7 (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) 2018 2019 2020 2021 2022 Estimated amortization expense (2) $ 34.3 $ 30.8 $ 27.3 $ 23.8 $ 20.3 (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. |
Esselte Acquisition | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The allocations of the acquired identifiable intangibles acquired in the Esselte Acquisition are as follows: (in millions of dollars) Fair Value Remaining Useful Life Ranges Trade name - indefinite lived $ 116.8 Indefinite Trade names - amortizable 53.2 15-30 Years Customer relationships 102.4 15 Years Patents 4.6 10 Years Total identifiable intangibles acquired $ 277.0 |
PA Acquisition | |
Finite-Lived Intangible Assets [Line Items] | |
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 Trade names - amortizable $ 22.0 12-30 Years Customer relationships 36.0 12 Years Total identifiable intangibles acquired $ 58.0 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in Restructuring Accounts | The summary of the activity in the restructuring liability (which is included in " Other current liabilities ") for the year ended December 31, 2017 was as follows: (in millions of dollars) Balance at December 31, 2016 Esselte Acquisition (4) Provision Cash Non-cash Balance at December 31, 2017 Employee termination costs (1) $ 1.4 $ 1.5 $ 18.2 $ (9.6 ) $ 0.5 $ 12.0 Termination of lease agreements (2) 0.1 1.2 2.4 (3.1 ) 0.2 0.8 Other (3) — 0.1 1.1 (0.7 ) — 0.5 Total restructuring liability $ 1.5 $ 2.8 $ 21.7 $ (13.4 ) $ 0.7 $ 13.3 (1) We expect the remaining $12.0 million employee termination costs to be substantially paid within the next eighteen months. (2) We expect the remaining $0.8 million termination of lease costs to be substantially paid within the next fifteen months. (3) We expect the remaining $0.5 million of other costs to be substantially paid with the next twelve months. (4) Restructuring liabilities assumed in the Esselte Acquisition. During the fourth quarter of 2017, in connection with the Pelikan Artline integration, the Company sold its building and related assets in New Zealand for net proceeds of $3.9 million and recorded a gain on sale of $1.5 million as a reduction of SG&A expense in its Consolidated Statements of Income within the ACCO Brands International segment. The sale was not included in the Company’s restructuring liability activity presented above. The summary of the activity in the restructuring accounts for the year ended December 31, 2016 was as follows: (in millions of dollars) Balance at December 31, 2015 PA Acquisition (5) Provision Cash Non-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 (5) Restructuring liabilities assumed in the PA Acquisition. The summary of the activity in the restructuring accounts for the year ended December 31, 2015 was as follows: (in millions of dollars) Balance at December 31, 2014 Acquisitions 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 Restructuring charges (credits) for the years ended December 31, 2017 , 2016 and 2015 by reporting segment were as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 5.5 $ 1.1 $ (0.4 ) ACCO Brands EMEA 11.2 — — ACCO Brands International 5.0 4.3 — Total restructuring charges (credits) $ 21.7 $ 5.4 $ (0.4 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 Domestic operations $ 68.7 $ 33.9 $ 60.9 Foreign operations 89.4 91.2 70.5 Total $ 158.1 $ 125.1 $ 131.4 |
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) 2017 2016 2015 Income tax at U.S. statutory rate of 35% $ 55.3 $ 43.8 $ 46.0 Effect of the U.S. Tax Act (25.7 ) — — State, local and other tax, net of federal benefit 3.6 2.4 2.1 U.S. effect of foreign dividends and withholding taxes 4.9 4.6 3.9 Unrealized foreign currency expense (benefit) on intercompany debt — 0.7 (0.7 ) 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 (6.9 ) (4.6 ) (5.6 ) Interest on Brazilian Tax Assessment 2.2 2.8 2.7 Expiration of tax credits — 10.9 1.0 Decrease in valuation allowance (0.6 ) (9.9 ) (1.3 ) Excess benefit from stock-based compensation (5.6 ) — — Other (0.8 ) 0.5 (2.6 ) Income taxes as reported $ 26.4 $ 29.6 $ 45.5 Effective tax rate 16.7 % 23.7 % 34.6 % |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense were as follows: (in millions of dollars) 2017 2016 2015 Current expense Federal and other $ 41.1 $ 0.7 $ 2.1 Foreign 30.5 22.9 16.0 Total current income tax expense 71.6 23.6 18.1 Deferred expense Federal and other (47.4 ) 3.5 22.8 Foreign 2.2 2.5 4.6 Total deferred income tax (benefit) expense (45.2 ) 6.0 27.4 Total income tax expense $ 26.4 $ 29.6 $ 45.5 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) were as follows: (in millions of dollars) 2017 2016 Deferred tax assets Compensation and benefits $ 18.5 $ 20.7 Pension 49.6 28.6 Inventory 10.6 12.4 Other reserves 15.2 19.1 Accounts receivable 5.7 7.0 Foreign tax credit carryforwards 29.1 — Net operating loss carryforwards 126.6 47.2 Other 5.6 10.3 Gross deferred income tax assets 260.9 145.3 Valuation allowance (45.0 ) (11.7 ) Net deferred tax assets 215.9 133.6 Deferred tax liabilities Depreciation (17.2 ) (12.6 ) Identifiable intangibles (237.9 ) (240.4 ) Gross deferred tax liabilities (255.1 ) (253.0 ) Net deferred tax liabilities $ (39.2 ) $ (119.4 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions of dollars) 2017 2016 2015 Balance at beginning of year $ 43.7 $ 34.8 $ 45.9 Additions for tax positions of prior years 2.9 3.0 3.0 Reductions for tax positions of prior years (0.7 ) (0.5 ) — Esselte Acquisition 1.6 — — Increase resulting from foreign currency translation — 6.4 — Decrease resulting from foreign currency translation (0.3 ) — (14.1 ) Balance at end of year $ 47.2 $ 43.7 $ 34.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. (in millions) 2017 2016 2015 Weighted-average number of common shares outstanding - basic 108.1 107.0 108.8 Stock options 1.3 0.8 0.2 Stock-settled stock appreciation rights — — 0.3 Restricted stock units 1.5 1.4 1.3 Adjusted weighted-average shares and assumed conversions - diluted 110.9 109.2 110.6 |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : Fair Value of Derivative Instruments Derivative Assets Derivative Liabilities (in millions of dollars) Balance Sheet December 31, 2017 December 31, 2016 Balance Sheet December 31, 2017 December 31, 2016 Derivatives designated as hedging instruments: Foreign exchange contracts Other current assets $ 0.5 $ 4.0 Other current liabilities $ 0.5 $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 0.4 0.4 Other current liabilities 0.7 0.3 Foreign exchange contracts Other non-current assets 24.2 — Other non-current liabilities 24.2 — Total derivatives $ 25.1 $ 4.4 $ 25.4 $ 0.3 |
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, 2017 , 2016 and 2015 : The Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Financial Statements Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Location of (Gain) Loss Reclassified from AOCI to Income Amount of (Gain) Loss (in millions of dollars) 2017 2016 2015 2017 2016 2015 Cash flow hedges: Foreign exchange contracts $ (4.9 ) $ (0.1 ) $ 8.2 Cost of products sold $ 1.6 $ 2.5 $ (10.9 ) The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations Location of (Gain) Loss Recognized in Amount of (Gain) Loss (in millions of dollars) 2017 2016 2015 Foreign exchange contracts Other (income) expense, net $ (1.5 ) $ (2.0 ) $ (0.5 ) |
Fair Value Of Financial Instr43
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : (in millions of dollars) December 31, 2017 December 31, 2016 Assets: Forward currency contracts $ 25.1 $ 4.4 Liabilities: Forward currency contracts 25.4 0.3 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 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 (loss), net of tax 1.7 — 2.8 4.5 Balance at December 31, 2016 2.5 (285.9 ) (136.0 ) (419.4 ) Other comprehensive loss before reclassifications, net of tax (3.6 ) (19.5 ) (23.4 ) (46.5 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1.3 — 3.5 4.8 Balance at December 31, 2017 $ 0.2 $ (305.4 ) $ (155.9 ) $ (461.1 ) |
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, 2017 , 2016 and 2015 were as follows: Year Ended December 31, (in millions of dollars) 2017 2016 2015 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 $ (1.6 ) $ (2.4 ) $ 10.9 Cost of products sold Tax benefit (expense) 0.3 0.7 (3.2 ) Income tax (benefit) expense Net of tax $ (1.3 ) $ (1.7 ) $ 7.7 Defined benefit plan items: Amortization of actuarial loss $ (4.6 ) $ (3.1 ) $ (3.6 ) (1) Amortization of prior service cost (0.4 ) (0.4 ) (0.1 ) (1) Total before tax (5.0 ) (3.5 ) (3.7 ) Tax benefit 1.5 $ 0.7 $ 1.2 Income tax (benefit) expense Net of tax $ (3.5 ) $ (2.8 ) $ (2.5 ) Total reclassifications for the period, net of tax $ (4.8 ) $ (4.5 ) $ 5.2 (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, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Business Segment | Net sales by business segment for the years ended December 31, 2017 , 2016 and 2015 were as follows: (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 999.0 $ 1,016.1 $ 1,025.7 ACCO Brands EMEA 542.8 171.8 199.7 ACCO Brands International 407.0 369.2 285.0 Net sales $ 1,948.8 $ 1,557.1 $ 1,510.4 |
Schedule of Operating Income by Business Segment | Operating income by business segment for the years ended December 31, 2017 , 2016 and 2015 was as follows: (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 155.6 $ 153.3 $ 151.6 ACCO Brands EMEA 37.1 12.6 18.0 ACCO Brands International 50.9 49.4 29.1 Segment operating income 243.6 215.3 198.7 Corporate (1) (50.6 ) (48.0 ) (35.2 ) Operating income (2) 193.0 167.3 163.5 Interest expense 41.1 49.3 44.5 Interest income (5.8 ) (6.4 ) (6.6 ) Equity in earnings of joint-venture — (2.1 ) (7.9 ) Other (income) expense, net (0.4 ) 1.4 2.1 Income before income tax $ 158.1 $ 125.1 $ 131.4 (1) Corporate operating loss in 2017 , 2016 and 2015 includes transaction costs of $5.0 million , $10.5 million and $0.6 million respectively, primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. (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) 2017 2016 ACCO Brands North America (3) $ 413.9 $ 404.3 ACCO Brands EMEA (3) 287.6 104.0 ACCO Brands International (3) 338.2 323.4 Total segment assets 1,039.7 831.7 Unallocated assets 1,758.6 1,232.0 Corporate (3) 0.8 0.8 Total assets $ 2,799.1 $ 2,064.5 (3) Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. |
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) 2017 2016 ACCO Brands North America (4) $ 1,204.3 $ 1,206.8 ACCO Brands EMEA (4) 711.7 155.2 ACCO Brands International (4) 634.0 622.5 Total segment assets 2,550.0 1,984.5 Unallocated assets 248.3 79.2 Corporate (4) 0.8 0.8 Total assets $ 2,799.1 $ 2,064.5 (4) Represents total assets, excluding: intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. |
Schedule of Capital Spend and Depreciation Expense by Segment | Capital spend by segment was as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 16.3 $ 10.3 $ 12.5 ACCO Brands EMEA 5.1 2.9 10.3 ACCO Brands International 9.6 5.3 4.8 Total capital spend $ 31.0 $ 18.5 $ 27.6 Depreciation expense by segment was as follows: December 31, (in millions of dollars) 2017 2016 2015 ACCO Brands North America $ 17.7 $ 19.7 $ 23.3 ACCO Brands EMEA 11.9 5.0 3.4 ACCO Brands International 6.0 5.7 5.7 Total depreciation $ 35.6 $ 30.4 $ 32.4 |
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) 2017 2016 U.S. $ 102.3 $ 103.0 Brazil 35.6 36.8 U.K. 30.5 30.3 Poland 26.8 — Germany 21.2 — Australia 14.7 12.5 Other countries 47.4 15.8 Property, plant and equipment, net $ 278.5 $ 198.4 |
Schedule of Net Sales by Geographic Region | Net sales by geographic region (5) were as follows: December 31, (in millions of dollars) 2017 2016 2015 U.S. $ 880.4 $ 894.4 $ 904.3 Australia 173.5 156.5 91.8 Germany 141.4 — — Canada 118.6 121.7 121.4 Brazil 114.6 102.6 92.0 Netherlands 111.3 101.4 108.7 Sweden 61.3 — — U.K. 59.2 59.1 76.4 Mexico 50.6 47.3 49.6 Other countries 237.9 74.1 66.2 Net sales $ 1,948.8 $ 1,557.1 $ 1,510.4 (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, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | 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 using 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 . Year Ended December 31, (in millions of dollars) 2016 2015 Net sales $ 34.9 $ 111.2 Gross profit 14.1 45.5 Net income 4.1 15.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 were as follows: (in millions of dollars) 2018 $ 28.1 2019 25.0 2020 21.6 2021 16.2 2022 12.2 Thereafter 17.6 Total minimum rental payments 120.7 Less minimum rentals to be received under non-cancelable subleases 2.0 Future minimum payments for operating leases, net of sublease rental income $ 118.7 |
Future Minimum Payments Under Unconditional Purchase Commitments | Future minimum payments under unconditional purchase commitments, primarily for inventory purchase commitments as of December 31, 2017 were as follows: (in millions of dollars) 2018 $ 96.8 2019 0.2 2020 0.1 2021 — 2022 — Thereafter — Total unconditional purchase commitments $ 97.1 |
Quarterly Financial Informati48
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 and 2016 : (in millions of dollars, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2017 Net sales (1) $ 359.8 $ 490.0 $ 532.2 $ 566.8 Gross profit 110.8 168.5 177.9 199.2 Operating income 9.3 45.4 58.7 79.6 Net income $ 3.6 $ 23.5 $ 30.6 $ 74.0 Per share: Basic income per share (2) $ 0.03 $ 0.21 $ 0.28 $ 0.69 Diluted income per share (2) $ 0.03 $ 0.21 $ 0.28 $ 0.68 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 (1) Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year and we expect these trends to continue. 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 product categories we sell lend themselves to calendar year-end purchase timing, including 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 shares of common stock and repurchasing of shares of common stock during the year. |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017 | May 02, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Number of Operating Segments | 3 | |
PA Acquisition | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of voting interest acquired | 50.00% |
Significant Accounting Polici50
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Accounting Policies [Line Items] | ||||||||||||||||
Undistributed earnings of foreign subsidiaries | $ 500 | $ 500 | $ 500 | |||||||||||||
Operating income | (79.6) | $ (58.7) | $ (45.4) | $ (9.3) | $ (59.7) | $ (55.7) | $ (45.4) | $ (6.5) | (193) | [1] | $ (167.3) | [1] | $ (163.5) | [1] | ||
Interest Costs Capitalized | 0.1 | 0.1 | 1.3 | |||||||||||||
Advertising Expense | 114.8 | 110.1 | 120.9 | |||||||||||||
Research and Development Expense | 23.5 | 21 | $ 20 | |||||||||||||
Goodwill, Impairment Loss | 0 | $ 0 | ||||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||||||||||||||
Accounting Standards Update 2016-09 | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 5.6 | |||||||||||||||
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 | Minimum | ||||||||||||||||
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 | Maximum | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Amortizable life | 30 years | |||||||||||||||
Hilroy Trade Name | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Amortizable life | 30 years | |||||||||||||||
Mead Trade Name | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Long-term growth rate | 1.50% | |||||||||||||||
Discount rate | 10.50% | |||||||||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 113.3 | $ 113.3 | $ 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] | ||||||||||||||||
Amortizable life | 30 years | |||||||||||||||
Long-term growth rate | 1.50% | |||||||||||||||
Discount rate | 11.00% | |||||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||||||||||||||
Maximum Percent Above Carrying Value | 30.00% | |||||||||||||||
Forecast | Accounting Standards Update 2017-07 | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 1.6 | |||||||||||||||
Pro Forma | Accounting Standards Update 2017-07 | ||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||
Operating income | $ 8.4 | $ 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. |
Acquisitions (Acquisition of Es
Acquisitions (Acquisition of Esselte Group Holdings AB) (Details) € in Millions, $ in Millions | Jan. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2017EUR (€) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) |
Business Acquisition [Line Items] | |||||||||
Cost of acquisitions, net of cash acquired | $ 292.3 | $ 88.8 | $ 0 | ||||||
Goodwill | $ 670.3 | 670.3 | 587.1 | ||||||
Esselte Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire business | $ 326.8 | € 302.9 | |||||||
Working capital adjustments to purchase price | 0.3 | ||||||||
Cash acquired from acquisition | 34.2 | ||||||||
Cost of acquisitions, net of cash acquired | 292.3 | ||||||||
Business acquisition, consideration held in escrow | $ 8.7 | € 8.1 | |||||||
Escrow period (up to) | 2 years | 2 years | |||||||
Warranty and indemnity insurance policy | $ 43.2 | € 40 | |||||||
Period of warranty and indemnity policy | 7 years | 7 years | |||||||
Net sales | 406.9 | ||||||||
Goodwill | $ 106.5 | ||||||||
Adjustment of property, plant and equipment acquired | $ (2.4) | ||||||||
Transaction costs | $ 5 | $ 9.2 | |||||||
Secured Debt | Euro Term Loan A | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 320.8 | € 300 |
Acquisitions (Assets Acquired A
Acquisitions (Assets Acquired And Liabilities Assumed, Esselte Acquisition) (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Less fair value of assets acquired: | |||
Goodwill | $ 670.3 | $ 587.1 | |
Esselte Acquisition | |||
Calculation of Goodwill: | |||
Purchase price, net of working capital adjustment | $ 326.5 | ||
Plus fair value of liabilities assumed: | |||
Accounts payable and accrued liabilities | 121.9 | ||
Deferred tax liabilities | 83.6 | ||
Pension obligations | 174.1 | ||
Other non-current liabilities | 5.8 | ||
Fair value of liabilities assumed | 385.4 | ||
Less fair value of assets acquired: | |||
Cash acquired | 34.2 | ||
Accounts receivable | 60 | ||
Inventory | 41.9 | ||
Property, plant and equipment | 75.6 | ||
Identifiable intangibles | 277 | ||
Deferred tax assets | 106.3 | ||
Other assets | 10.4 | ||
Fair value of assets acquired | 605.4 | ||
Goodwill | $ 106.5 |
Acquisitions (Pro Forma Consoli
Acquisitions (Pro Forma Consolidated Results) (Details) - Esselte Acquisition - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 1,992.3 | $ 2,006.3 |
Net income | $ 149.2 | $ 55.6 |
Net income per common share (diluted) | $ 1.35 | $ 0.51 |
Transaction costs | $ 5 | $ 9.2 |
Transaction-related costs | ||
Business Acquisition [Line Items] | ||
Transaction costs | 14.2 | |
Amortization of purchase accounting step-up | ||
Business Acquisition [Line Items] | ||
Amortization of inventory step-up | $ 0.9 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | May 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Business Combinations [Abstract] | ||||
Goodwill | $ 587.1 | $ 670.3 | ||
PA Acquisition | ||||
Business Combinations [Abstract] | ||||
Goodwill | $ 80.5 | |||
Business Acquisition [Line Items] | ||||
Percentage of voting interest acquired | 50.00% | |||
Purchase price, net of working capital adjustment | $ 103.7 | |||
Consideration transferred | $ 88.8 | |||
Percent acquired | 100.00% | |||
Consideration held in escrow | 10.00% | |||
Revaluation gain/loss on previously held joint-venture equity interest | 28.9 | |||
Transaction costs | $ 1.3 | $ 0.6 | ||
Australia Stationary Industries | PA Acquisition | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interest acquired | 50.00% | |||
PA Acquisition | PA Acquisition | ||||
Business Acquisition [Line Items] | ||||
Minority interest, ownership percentage | 19.83% |
Acquisitions (Calculation of Co
Acquisitions (Calculation of Consideration Given for Pelikan Artline) (Details) - PA Acquisition $ in Millions | May 02, 2016USD ($) |
Business Acquisition [Line Items] | |
Purchase price, net of working capital adjustment | $ 103.7 |
Fair value of previously held equity interest | 69.3 |
Consideration for Pelikan Artline | $ 173 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation to the Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | May 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Less fair value of assets acquired: | |||
Goodwill | $ 670.3 | $ 587.1 | |
PA Acquisition | |||
Calculation of Goodwill: | |||
Purchase price, net of working capital adjustment | $ 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 | ||
Less fair value of assets acquired: | |||
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 |
Long-term Debt and Short-term57
Long-term Debt and Short-term Borrowings (Notes Payable and Long-term Debt) (Details) AUD in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 22, 2016USD ($) | May 02, 2016USD ($) | May 02, 2016AUD |
Debt Instrument [Line Items] | |||||
Total debt | $ 939,500,000 | $ 703,500,000 | |||
Current portion | 43,200,000 | 68,500,000 | |||
Debt issuance costs, unamortized | 7,100,000 | 7,300,000 | |||
Long-term debt, net | 889,200,000 | 627,700,000 | |||
Other borrowings | |||||
Debt Instrument [Line Items] | |||||
Total debt | 600,000 | 600,000 | |||
Senior Secured Notes | Euro Senior Secured Term Loan A, due January 2022 (floating interest rate of 1.50% at December 31, 2017) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 345,000,000 | 0 | |||
Line of Credit Facility, Interest Rate at Period End | 1.50% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 81,000,000 | |||
Line of Credit Facility, Interest Rate at Period End | 2.27% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due January 2022 (floating interest rate of 3.29% at December 31, 2017) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 60,000,000 | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.29% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 70,300,000 | $ 76,600,000 | AUD 100 | |
Line of Credit Facility, Interest Rate at Period End | 3.25% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.53% at December 31, 2017) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 48,900,000 | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.53% | ||||
Senior Secured Notes | U.S. Dollar Senior Secured Revolving Credit Facility, due April 2020 (floating interest rate of 2.59% at December 31, 2016) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 63,700,000 | |||
Line of Credit Facility, Interest Rate at Period End | 2.59% | ||||
Senior Secured Notes | Australian Dollar Senior Secured Revolving Credit Facility, due January 2022 (floating interest rate of 3.28% at December 31, 2017) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 85,000,000 | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.28% | ||||
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] | |||||
Total debt | $ 0 | $ 87,900,000 | $ 116,400,000 | AUD 152 | |
Line of Credit Facility, Interest Rate at Period End | 3.27% | ||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||
Stated percentage | 5.25% | 5.25% |
Long-term Debt and Short-term58
Long-term Debt and Short-term Borrowings (Interest Rates) (Details) - Secured Debt - Senior Secured Credit Facility Due January 2022 | 12 Months Ended |
Dec. 31, 2017 | |
4.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
4.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
≤ 4.00 to 1.00 and 3.50 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
≤ 4.00 to 1.00 and 3.50 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
≤ 3.50 to 1.00 and 3.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
≤ 3.50 to 1.00 and 3.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
≤ 3.00 to 1.00 and 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
≤ 3.00 to 1.00 and 2.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
≤ 2.00 to 1.00 | Applicable Rate on Euro/AUD/CDN Dollar Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
≤ 2.00 to 1.00 | Applicable Rate on Base Rate Loans | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.25% |
Long-term Debt and Short-term59
Long-term Debt and Short-term Borrowings (Narrative) (Details) € in Millions, AUD in Millions | Jun. 30, 2020 | Dec. 31, 2017USD ($) | Jun. 30, 2017 | Dec. 22, 2016USD ($) | May 02, 2016USD ($) | May 02, 2016AUD | Dec. 31, 2015 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 27, 2017USD ($) | Jan. 27, 2017EUR (€) | Jan. 27, 2017AUD | May 02, 2016AUD | Apr. 28, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Total debt | $ 939,500,000 | $ 939,500,000 | $ 703,500,000 | ||||||||||||
Call premium | 0 | (29,900,000) | $ (1,900,000) | ||||||||||||
Debt issuance costs incurred | 3,600,000 | 6,900,000 | $ 1,700,000 | ||||||||||||
Five Year Senior Secured Credit Facility Maturing April 2020 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit agreement, term | 5 years | ||||||||||||||
Australian Dollar Short Term Bank Debt and Notes Payable [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt assumed at acquisition | $ 24,500,000 | AUD 32.1 | |||||||||||||
Senior Secured Notes | Euro Term Loan A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit agreement, face amount | $ 320,800,000 | € 300 | |||||||||||||
Senior Secured Notes | AUD Term Loan A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Max borrowing capacity | 60,400,000 | AUD 80 | |||||||||||||
Senior Secured Notes | U.S. Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 2.27% at December 31, 2016) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt | 0 | 0 | 81,000,000 | ||||||||||||
Credit agreement, face amount | $ 300,000,000 | ||||||||||||||
Debt payment amount | 78,000,000 | ||||||||||||||
Senior Secured Notes | Five Year Senior Secured Credit Facility Maturing April 2020 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Max borrowing capacity | 600,000,000 | ||||||||||||||
Senior Secured Notes | Australian Dollar Senior Secured Term Loan A, due April 2020 (floating interest rate of 3.25% at December 31, 2016) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt | 0 | 76,600,000 | 0 | 70,300,000 | AUD 100 | ||||||||||
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] | |||||||||||||||
Total debt | 0 | $ 116,400,000 | 0 | 87,900,000 | AUD 152 | ||||||||||
Senior Notes | Senior Unsecured Notes, due December 2024 (fixed interest rate of 5.25%) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||||||||
Stated percentage | 5.25% | 5.25% | 5.25% | ||||||||||||
Debt issuance costs incurred | $ 6,100,000 | ||||||||||||||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated percentage | 6.75% | ||||||||||||||
Redemption price | $ 531,500,000 | ||||||||||||||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | Other expense, net | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Call premium | 25,000,000 | ||||||||||||||
Write off amount | 4,900,000 | ||||||||||||||
Senior Notes | Senior Unsecured Notes, due April 2020 (fixed interest rate of 6.75%) | Interest Expense | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Accrued and unpaid interest | 6,500,000 | ||||||||||||||
Senior Secured Credit Facility Due January 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit agreement, term | 5 years | ||||||||||||||
Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from sales or dispositions of property or assets | $ 12,000,000 | ||||||||||||||
Proceeds from sales or dispositions of property or assets, percentage | 100.00% | ||||||||||||||
Dividends and/or purchase shares, threshold | $ 30,000,000 | ||||||||||||||
Dividends and/or purchase shares, threshold, percent of total assets | 1.00% | ||||||||||||||
Minimum leverage ratio for payment of dividends or repurchase of shares | 2.50 | 2.50 | |||||||||||||
Maximum leverage ratio for payment of dividends or repurchase of shares | 3.75 | 3.75 | |||||||||||||
Leverage ratio | 2.6 | 2.6 | |||||||||||||
Leverage ratio, potential increase | 0.50 | 0.50 | |||||||||||||
Fixed charge coverage ratio | 5.3 | ||||||||||||||
Maximum borrowing capacity, potential increase | $ 500,000,000 | $ 500,000,000 | |||||||||||||
Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | AUD Term Loan A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from sales or dispositions of property or assets, percentage | 100.00% | ||||||||||||||
2017 Revolving Facility | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Max borrowing capacity | $ 400,000,000 | ||||||||||||||
Commitment fee percent | 0.30% | ||||||||||||||
Total debt | 133,900,000 | $ 133,900,000 | |||||||||||||
Amount available for borrowings under the Restated Revolver Facility | 255,000,000 | 255,000,000 | |||||||||||||
Letters of credit outstanding, amount | $ 11,100,000 | $ 11,100,000 | |||||||||||||
2017 Revolving Facility | Senior Secured Notes | 2015 Revolving Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Max borrowing capacity | $ 300,000,000 | ||||||||||||||
Proceeds from lines of credit | $ 73,900,000 | ||||||||||||||
Minimum | Senior Secured Notes | Senior Secured Term Loan As, due January 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Quarterly principal payment, based on annual percentage | 5.00% | ||||||||||||||
Minimum | Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Fixed charge coverage ratio | 1.25 | ||||||||||||||
Minimum | 2017 Revolving Facility | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commitment fee percent | 0.25% | ||||||||||||||
Maximum | Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Dividends and/or purchase shares, threshold | $ 75,000,000 | ||||||||||||||
Leverage ratio | 3.75 | 3.75 | |||||||||||||
Maximum | 2017 Revolving Facility | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commitment fee percent | 0.40% | ||||||||||||||
Euro/AUD/CDN | Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||||
Euro/AUD/CDN | Minimum | Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Base rate percent | 0.00% | ||||||||||||||
Applicable Rate on Base Rate Loans | Senior Secured Credit Facility Due January 2022 | Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||||||
Forecast | Maximum | Senior Secured Notes | Senior Secured Term Loan As, due January 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Quarterly principal payment, based on annual percentage | 12.50% |
Pension and Other Retiree Ben60
Pension and Other Retiree Benefits (Pension Benefit Obligation and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Change in plan assets | ||||
Employer contributions | $ 21.7 | |||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Pension and post-retirement benefit obligations | 275.5 | $ 98 | ||
Pension | U.S. | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 200.1 | 198.7 | ||
Service cost | 1.4 | 1.3 | $ 1.6 | |
Interest cost | 7.1 | 7.3 | 8.7 | |
Actuarial loss (gain) | 14.7 | 3.1 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (16.8) | (10.3) | ||
Curtailment gain | 0 | 0 | ||
Foreign exchange rate changes | 0 | 0 | ||
Esselte Acquisition | 0 | 0 | ||
Projected benefit obligation at end of year | 206.5 | 200.1 | 198.7 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 150.5 | 145.8 | ||
Actual return on plan assets | 21.1 | 14.1 | ||
Employer contributions | 7.3 | 0.9 | ||
Participants’ contributions | 0 | 0 | ||
Benefits paid | (16.8) | (10.3) | ||
Foreign exchange rate changes | 0 | 0 | ||
Esselte Acquisition | 0 | 0 | ||
Fair value of plan assets at end of year | 162.1 | 150.5 | 145.8 | |
Funded status (Fair value of plan assets less PBO) | (44.4) | (49.6) | ||
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] | 44.4 | 49.6 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 56.9 | 54.2 | ||
Unrecognized prior service cost (credit) | 1.7 | 2 | ||
Pension | International | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 345.1 | 347.1 | ||
Service cost | 1.9 | 0.8 | 0.9 | |
Interest cost | 13.4 | 10.3 | 12.9 | |
Actuarial loss (gain) | 13.2 | 55.6 | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (26.5) | (13) | ||
Curtailment gain | 0 | (0.6) | ||
Foreign exchange rate changes | 59.8 | (55.2) | ||
Esselte Acquisition | 288 | 0 | ||
Projected benefit obligation at end of year | 695 | 345.1 | 347.1 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 302.7 | 318.9 | ||
Actual return on plan assets | 21.3 | 41.8 | ||
Employer contributions | 14 | 4.9 | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (26.5) | (13) | ||
Foreign exchange rate changes | 38.2 | (50) | ||
Esselte Acquisition | 114 | 0 | ||
Fair value of plan assets at end of year | 463.8 | 302.7 | 318.9 | |
Funded status (Fair value of plan assets less PBO) | (231.2) | (42.4) | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Other non-current assets | 0.6 | 0.3 | ||
Other current liabilities | 6.9 | 0.4 | ||
Pension and post-retirement benefit obligations | [1] | 224.9 | 42.3 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | 100.5 | 83.7 | ||
Unrecognized prior service cost (credit) | (0.2) | (0.2) | ||
Post-retirement | ||||
Change in projected benefit obligation (PBO) | ||||
Projected benefit obligation at beginning of year | 6.7 | 8.1 | ||
Service cost | 0 | 0.1 | 0.1 | |
Interest cost | 0.2 | 0.2 | 0.4 | |
Actuarial loss (gain) | 0 | (0.2) | ||
Participants’ contributions | 0.1 | 0.1 | ||
Benefits paid | (0.5) | (0.5) | ||
Curtailment gain | 0 | (0.8) | ||
Foreign exchange rate changes | 0.3 | (0.3) | ||
Esselte Acquisition | 0 | 0 | ||
Projected benefit obligation at end of year | 6.8 | 6.7 | 8.1 | |
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 | ||
Esselte Acquisition | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | |
Funded status (Fair value of plan assets less PBO) | (6.8) | (6.7) | ||
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] | 6.2 | 6.1 | |
Components of accumulated other comprehensive income, net of tax: | ||||
Unrecognized actuarial loss (gain) | (3.6) | (3.5) | ||
Unrecognized prior service cost (credit) | $ (0.2) | $ (0.2) | ||
[1] | Pension and post-retirement obligations of $275.5 million as of December 31, 2017, increased from $98.0 million as of December 31, 2016, primarily due to the Esselte Acquisition. |
Pension and Other Retiree Ben61
Pension and Other Retiree Benefits (Amounts in Accumulated Other Comprehensive Income) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension | U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | $ 2.7 |
Prior service cost | 0.4 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 3.1 |
Pension | International | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | 3.4 |
Prior service cost | 0 |
Total amounts included in accumulated other comprehensive income expected to be recognized | 3.4 |
Post-retirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss (gain) | (0.4) |
Prior service cost | 0 |
Total amounts included in accumulated other comprehensive income expected to be recognized | $ (0.4) |
Pension and Other Retiree Ben62
Pension and Other Retiree Benefits (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - Pension $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 206.5 | $ 200.1 |
Accumulated benefit obligation | 205.4 | 198.3 |
Fair value of plan assets | 162.1 | 150.5 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 675.3 | 326.9 |
Accumulated benefit obligation | 662.8 | 320.4 |
Fair value of plan assets | $ 443.5 | $ 284.2 |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of plans with plan assets in excess of projected benefit obligations | 1 |
Pension and Other Retiree Ben63
Pension and Other Retiree Benefits (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.4 | $ 1.3 | $ 1.6 |
Interest cost | 7.1 | 7.3 | 8.7 |
Expected return on plan assets | (12.3) | (11.9) | (12.2) |
Amortization of net loss (gain) | 2 | 1.8 | 2.1 |
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) expense | (1.4) | (1.1) | 0.6 |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.9 | 0.8 | 0.9 |
Interest cost | 13.4 | 10.3 | 12.9 |
Expected return on plan assets | (21.8) | (17.6) | (21.9) |
Amortization of net loss (gain) | 3 | 2.3 | 2.4 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit (income) expense | (3.5) | (4.2) | (5.7) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.2 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss (gain) | (0.4) | (0.4) | (0.4) |
Amortization of prior service cost (credit) | 0 | 0 | (0.3) |
Curtailment gain | 0 | (0.6) | 0 |
Settlement gain | 0 | 0 | (0.5) |
Net periodic benefit (income) expense | $ (0.2) | $ (0.7) | $ (0.7) |
Pension and Other Retiree Ben64
Pension and Other Retiree Benefits (Other Changes Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 5.9 | $ 0.9 | $ 7.1 |
Amortization of actuarial (loss) gain | (2) | (1.8) | (2.1) |
Current year prior service credit | 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) | 3.5 | (1.3) | 4.6 |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | 2.1 | (2.4) | 5.2 |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 14.3 | 27.9 | 3.8 |
Amortization of actuarial (loss) gain | (3) | (2.3) | (2.4) |
Current year prior service credit | 0 | 0 | 0 |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Foreign exchange rate changes | 10.7 | (15.5) | (5.6) |
Total recognized in other comprehensive income (loss) | 22 | 10.1 | (4.2) |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | 18.5 | 5.9 | (9.9) |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 0 | (1) | (3.4) |
Amortization of actuarial (loss) gain | 0.4 | 1 | 0.9 |
Current year prior service credit | 0 | 0 | (0.2) |
Amortization of prior service (cost) credit | 0 | 0 | 0.3 |
Foreign exchange rate changes | (0.2) | 0.5 | 0.1 |
Total recognized in other comprehensive income (loss) | 0.2 | 0.5 | (2.3) |
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | $ 0 | $ (0.2) | $ (3) |
Pension and Other Retiree Ben65
Pension and Other Retiree Benefits (Weighted Average Assumptions Used in Calculating Benefit Obligation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 4.30% | 4.60% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.30% | 2.70% | 3.70% |
Rate of compensation increase | 2.80% | 3.10% | 3.00% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.20% | 3.40% | 3.90% |
Pension and Other Retiree Ben66
Pension and Other Retiree Benefits (Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.80% | 4.60% | 4.20% |
Expected long-term rate of return | 7.80% | 7.80% | 8.00% |
Pension | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.30% | 3.70% | 3.40% |
Expected long-term rate of return | 5.50% | 6.00% | 6.50% |
Rate of compensation increase | 3.10% | 3.00% | 3.00% |
Post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.40% | 3.90% | 3.70% |
Pension and Other Retiree Ben67
Pension and Other Retiree Benefits (Assumed Health Care Cost Trend Rates) (Details) - Post-retirement | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 7.00% | 8.00% | 7.00% |
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 | 2,025 | 2,024 |
Pension and Other Retiree Ben68
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, 2017USD ($) | |
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 Ben69
Pension and Other Retiree Benefits (Weighted Average Asset Allocation) (Details) - Pension | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 57.00% | 68.00% | |
U.S. | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 30.00% | 25.00% | |
U.S. | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 6.00% | 0.00% | |
U.S. | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 7.00% | 7.00% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 100.00% | 100.00% | |
International | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 26.00% | 33.00% | |
International | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 29.00% | 51.00% | |
International | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | 5.00% | 3.00% | |
International | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocations | [1] | 40.00% | 13.00% |
[1] | Multi-strategy hedge funds, insurance contracts and cash and cash equivalents for certain of our plans. |
Pension and Other Retiree Ben70
Pension and Other Retiree Benefits (Fair Value of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 162.1 | $ 150.5 | $ 145.8 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 151.4 | 102.8 | ||
U.S. | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1.7 | 38.2 | ||
U.S. | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. | Mutual Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 89.3 | |||
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 | 94.8 | 89.3 | ||
U.S. | Mutual Funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Mutual Funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Equity Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 94.8 | |||
U.S. | Equity Funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Equity Funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Exchange traded funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 56.6 | 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 | 56.6 | 13.5 | ||
U.S. | Exchange traded funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. | Exchange traded funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. | Common collective trust funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1.7 | 7.9 | ||
U.S. | Common collective trust funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. | Common collective trust funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1.7 | 7.9 | ||
U.S. | Common collective trust funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. | Corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16.3 | |||
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 | |||
U.S. | Corporate debt securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16.3 | |||
U.S. | Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Asset-backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3.4 | |||
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 | |||
U.S. | Asset-backed securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3.4 | |||
U.S. | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Multi-strategy hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Investments Net Asset Value | [1] | 9 | 9.5 | |
U.S. | Government mortgage-backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.4 | |||
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 | |||
U.S. | Government mortgage-backed securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.4 | |||
U.S. | Government mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.S. | Collateralized mortgage obligations, mortgage backed securities, and other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.2 | |||
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 | |||
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 | |||
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 | |||
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 463.8 | 302.7 | $ 318.9 | |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 121.1 | 99.7 | ||
International | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 291 | 193.4 | ||
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 | 2.2 | 0.5 | ||
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 | 2.2 | 0.5 | ||
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 | Equity Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 102 | 99.2 | ||
International | Equity Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 102 | 99.2 | ||
International | Equity Funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International | Equity Funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International | Exchange traded funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16.9 | |||
International | Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16.9 | |||
International | Exchange traded funds | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
International | Exchange traded funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
International | Foreign corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 72.2 | 145.3 | ||
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 | 72.2 | 145.3 | ||
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 | 133.4 | 20.2 | ||
Investments Net Asset Value | [1] | 30.5 | ||
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 | 133.4 | 20.2 | ||
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 | 24.4 | 17.8 | ||
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 | 24.4 | 17.8 | ||
International | Insurance contracts | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International | Foreign government debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 61 | 10.1 | ||
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 | 61 | 10.1 | ||
International | Foreign government debt securities | 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] | ||||
Investments Net Asset Value | [1] | $ 21.2 | $ 9.6 | |
[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 Ben71
Pension and Other Retiree Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 40.1 |
2,019 | 39.2 |
2,020 | 39.8 |
2,021 | 40.7 |
2,022 | 40.9 |
Years 2023 - 2027 | 212.4 |
Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 0.6 |
2,019 | 0.6 |
2,020 | 0.6 |
2,021 | 0.5 |
2,022 | 0.5 |
Years 2023 - 2027 | $ 2.4 |
Pension and Other Retiree Ben72
Pension and Other Retiree Benefits Pension and Other Retiree Benefits (Multi-Employer) (Details) - Multi-employer Plans, Pension - PACE Industry Union-Management Pension Fund - Multiemployer Plan, Plan Information, Available - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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, 2016 | Dec. 31, 2015 | |
FIP/RP Status | Implemented | ||
Contributions | $ 0.2 | $ 0.3 | $ 0.3 |
Surcharge Imposed | Yes | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Jun. 30, 2018 |
Pension and Other Retiree Ben73
Pension and Other Retiree Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)yr | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of post-retirement plans not frozen to new participants | 1 | |||
Pension and post-retirement benefit obligations | $ 275.5 | $ 98 | ||
Employer contributions | 21.7 | |||
Expected contributions to defined benefit plans for 2018 | 20 | |||
Costs related to defined contribution plans | 13.4 | 11.3 | $ 9.8 | |
Defined Contribution Plan, Increase (Decrease), Cost | $ 2.1 | 1.5 | ||
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 | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 887.9 | 536.8 | ||
Pension Plan | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension and post-retirement benefit obligations | [1] | 44.4 | 49.6 | |
Employer contributions | $ 7.3 | $ 0.9 | ||
Pension Plan | U.S. | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 60.00% | |||
Pension Plan | U.S. | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 28.00% | |||
Pension Plan | U.S. | Alternate assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 12.00% | |||
[1] | Pension and post-retirement obligations of $275.5 million as of December 31, 2017, increased from $98.0 million as of December 31, 2016, primarily due to the Esselte Acquisition. |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-Based Compensation Expense by Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (17) | $ (19.4) | $ (16) |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | (6.1) | (7) | (5.7) |
Allocated Share-based Compensation Expense, Net of Tax | (10.9) | (12.4) | (10.3) |
Advertising, selling, general and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ (17) | $ (19.4) | $ (16) |
Stock-Based Compensation (Sha75
Stock-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 17 | $ 19.4 | $ 16 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.4 | 2.9 | 3.9 |
RSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4.3 | 4.5 | 4.7 |
PSU compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 10.3 | $ 12 | $ 7.4 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 2.7 |
Weighted average years expense to be recognized over | 1 year 5 months 24 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4.6 |
Weighted average years expense to be recognized over | 1 year 10 months 5 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 11.2 |
Weighted average years expense to be recognized over | 1 year 8 months 4 days |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions) (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected lives | 4 years 9 months | 4 years 6 months |
Weighted average risk-free interest rate | 2.04% | 1.47% |
Weighted average expected volatility | 39.70% | 46.50% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average grant date fair value | $ 4.70 | $ 3 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option and SSARs Activity) (Details) - Stock options $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number Outstanding [Roll Forward] | |
Outstanding at December 31, 2016 | shares | 4,133,874 |
Granted | shares | 745,772 |
Exercised | shares | (547,107) |
Forfeited | shares | (59,888) |
Outstanding at December 31, 2017 | shares | 4,272,651 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2016 | $ / shares | $ 7.82 |
Granted | $ / shares | 12.75 |
Exercised | $ / shares | 7.72 |
Forfeited | $ / shares | 9.57 |
Outstanding at December 31, 2017 | $ / shares | $ 8.68 |
Outstanding at December 31, 2017, Weighted Average Remaining Contractual Term | 3 years 4 months 3 days |
Outstanding at December 31, 2017, Aggregate Intrinsic Value | $ | $ 15.5 |
Exercisable shares at December 31, 2017 | shares | 3,157,606 |
Exercisable shares at December 31, 2017, Weighted Average Exercise Price | $ / shares | $ 7.88 |
Exercisable shares at December 31, 2017, Weighted Average Contractual Term | 2 years 7 months 3 days |
Exercisable shares at December 31, 2017, Aggregate Intrinsic Value | $ | $ 13.6 |
Stock-Based Compensation (Sto79
Stock-Based Compensation (Stock Units Rollforward) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
RSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2016 | 1,910,669 | |||
Granted | 438,521 | 516,739 | 668,619 | |
Vested and distributed | (691,319) | |||
Vested and deferred distributed | (38,042) | |||
Forfeited | (85,771) | |||
Outstanding at December 31, 2017 | 1,534,058 | 1,910,669 | ||
Vested and deferred RSUs related to deferred compensation for non-employee directors | [1] | 326,835 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2016, Weighted Average Grant Date Fair Value | $ 7.23 | |||
Granted, Weighted Average Grant Date Fair Value | 12.65 | $ 8.05 | $ 7.58 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 6.21 | |||
Vested and Deferred, Distributed In Period Weighted Average Grant Date Fair Value | 9.46 | |||
Forfeited, Weighted Average Grant Date Fair Value | 8.66 | |||
Outstanding at December 31, 2017, Weighted Average Grant Date Fair Value | 9.10 | $ 7.23 | ||
Weighted Average Grant Date Fair Value of Vested and Deferred RSUs | $ 9.16 | |||
PSUs | ||||
Stock Units [Roll Forward] | ||||
Outstanding at December 31, 2016 | 4,281,792 | |||
Granted | 706,732 | 1,013,242 | 1,017,702 | |
Vested and distributed | (1,502,327) | (1,072,692) | (697,172) | |
Forfeited | (131,465) | |||
Other - increase due to performance of PSU's | 176,580 | |||
Outstanding at December 31, 2017 | 3,531,312 | 4,281,792 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding at December 31, 2016, Weighted Average Grant Date Fair Value | $ 7.09 | |||
Granted, Weighted Average Grant Date Fair Value | 12.75 | $ 7.65 | $ 7.52 | |
Vested and Distributed, Weighted Average Grant Date Fair Value | 6.16 | |||
Forfeited, Weighted Average Grant Date Fair Value | 8.24 | |||
Other decrease due to performance of PSU's, Weighted Average Grant Date Fair Value | 11.72 | |||
Outstanding at December 31, 2017, Weighted Average Grant Date Fair Value | $ 8.82 | $ 7.09 | ||
[1] | Included in outstanding at December 31, 2017. 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, 2017USD ($)plan$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / 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 | ||
Proceeds from stock options exercised | $ 4.2 | $ 6.8 | $ 0.7 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 4,272,651 | 4,133,874 | |
Exercise period | 7 years | ||
Award vesting period | 3 years | ||
Proceeds from stock options exercised | $ 4.2 | $ 6.8 | 0.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 2.8 | 3.5 | 0.7 |
Fair value of options vested during the period | 2.6 | $ 4.1 | 3.8 |
Unrecognized compensation expense | $ 2.7 | ||
Weighted average years expense to be recognized over | 1 year 5 months 24 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 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 4.6 | ||
Weighted average years expense to be recognized over | 1 year 10 months 5 days | ||
Shares outstanding | shares | 1,534,058 | 1,910,669 | |
Weighted average grant date fair value | $ / shares | $ 12.65 | $ 8.05 | $ 7.58 |
Fair value of stock awards vested | $ 5.5 | $ 5.2 | $ 10.3 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 11.2 | ||
Weighted average years expense to be recognized over | 1 year 8 months 4 days | ||
Shares outstanding | shares | 3,531,312 | 4,281,792 | |
Weighted average grant date fair value | $ / shares | $ 12.75 | $ 7.65 | $ 7.52 |
Fair value of stock awards vested | $ 9.3 | $ 8.1 | $ 5.4 |
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 | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage awarded | 150.00% | ||
Fully Vested On The Grant Date | RSUs | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, shares that vests on grant date | $ 0.8 | $ 0.9 | $ 0.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 38.2 | $ 30.3 |
Work in process | 4.1 | 3 |
Finished goods | 211.9 | 176.7 |
Total inventories | $ 254.2 | $ 210 |
Property, Plant and Equipment82
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 645.2 | $ 528 | ||
Less: accumulated depreciation | (366.7) | (329.6) | ||
Property, plant and equipment, net | [1] | 278.5 | 198.4 | |
Computer software included in net property, plant and equipment | 42.1 | 34.7 | ||
Amortization of software costs | 7.1 | 7 | $ 6.1 | |
Land and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 28 | 18.9 | ||
Building and improvements to leaseholds | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 152.6 | 119.1 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 453.5 | 382 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 11.1 | $ 8 | ||
[1] | Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million, $7.0 million and $6.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Goodwill and Identifiable Int83
Goodwill and Identifiable Intangibles (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||||
Balance at December 31, 2016 | $ 587.1 | $ 587.1 | ||
Translation | (23.3) | |||
Balance at December 31, 2017 | 670.3 | |||
Goodwill, Impairment Loss | $ 0 | 0 | ||
Accumulated impairment losses | $ (215.1) | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Esselte Acquisition | ||||
Goodwill [Roll Forward] | ||||
Esselte Acquisition | 106.5 | |||
ACCO Brands North America | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2016 | 380.7 | 380.7 | ||
Translation | 0 | |||
Balance at December 31, 2017 | 375.6 | |||
ACCO Brands North America | Esselte Acquisition | ||||
Goodwill [Roll Forward] | ||||
Esselte Acquisition | (5.1) | |||
ACCO Brands EMEA | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2016 | 39.5 | 39.5 | ||
Translation | (23.3) | |||
Balance at December 31, 2017 | 129.4 | |||
ACCO Brands EMEA | Esselte Acquisition | ||||
Goodwill [Roll Forward] | ||||
Esselte Acquisition | 113.2 | |||
ACCO Brands International | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2016 | $ 166.9 | 166.9 | ||
Translation | 0 | |||
Balance at December 31, 2017 | 165.3 | |||
ACCO Brands International | Esselte Acquisition | ||||
Goodwill [Roll Forward] | ||||
Esselte Acquisition | $ (1.6) |
Goodwill and Identifiable Int84
Goodwill and Identifiable Intangibles Acquired Finite-Lived Intangibles Esselte (Details) - Esselte Acquisition - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | $ 277 | |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | 53.2 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | 102.4 | |
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | 4.6 | |
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible | $ 116.8 | |
Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum | Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Maximum | Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years |
Goodwill and Identifiable Int85
Goodwill and Identifiable Intangibles Acquired Finite-Lived Intangibles Pelikan (Details) - PA Acquisition - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | May 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | $ 58 | |
Identifiable intangibles | 58 | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangibles | 22 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 years | |
Identifiable intangibles | $ 36 | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Maximum | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 years | |
Minimum | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 years |
Goodwill and Identifiable Int86
Goodwill and Identifiable Intangibles (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Amortizable intangible assets, Gross Carrying Amounts | $ 444.1 | $ 444.1 | $ 249.5 | |
Amortizable intangible assets, Accumulated Amortization | (159.2) | (159.2) | (122.6) | |
Amortizable intangible assets, Net Book Value | 284.9 | 284.9 | 126.9 | |
Total identifiable intangible Assets, Gross | 1,043.6 | 1,043.6 | 732.8 | |
Total identifiable intangibles, Accumulated Amortization | (203.7) | (203.7) | (167.1) | |
Total identifiable intangibles, Net Book Value | 839.9 | 839.9 | 565.7 | |
Trade names | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 195.3 | 195.3 | 121.2 | |
Amortizable intangible assets, Accumulated Amortization | (59.4) | (59.4) | (48.8) | |
Amortizable intangible assets, Net Book Value | 135.9 | 135.9 | 72.4 | |
Customer relationships | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 243 | 243 | 127.5 | |
Amortizable intangible assets, Accumulated Amortization | (99.3) | (99.3) | (73.8) | |
Amortizable intangible assets, Net Book Value | 143.7 | 143.7 | 53.7 | |
Patents | ||||
Intangible Assets [Line Items] | ||||
Amortizable intangible assets, Gross Carrying Amounts | 5.8 | 5.8 | 0.8 | |
Amortizable intangible assets, Accumulated Amortization | (0.5) | (0.5) | 0 | |
Amortizable intangible assets, Net Book Value | 5.3 | 5.3 | 0.8 | |
Trade names | ||||
Intangible Assets [Line Items] | ||||
Indefinite Lived Trade Names Gross | 599.5 | 599.5 | 483.3 | |
Indefinite-lived intangible assets, Accumulated Amortization | (44.5) | (44.5) | (44.5) | |
Indefinite-Lived Intangible Assets (Trade names) | 555 | 555 | $ 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 | 10.50% | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Indefinite-Lived Intangible Assets (Trade names) | $ 113.3 | $ 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 | 11.00% | |||
Maximum Percent Above Carrying Value | 30.00% | |||
Finite-Lived Intangible Asset, Useful Life | 30 years | |||
Esselte Acquisition | Customer relationships | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Esselte Acquisition | Patents | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Esselte Acquisition | Minimum | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Esselte Acquisition | Minimum | Trade names | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Esselte Acquisition | Maximum | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 30 years | |||
Esselte Acquisition | Maximum | Trade names | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 30 years |
Goodwill And Identifiable Int87
Goodwill And Identifiable Intangibles (Estimated Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 35.6 | $ 21.6 | $ 19.6 |
Estimated amortization expense, 2018 | 34.3 | ||
Estimated amortization expense, 2019 | 30.8 | ||
Estimated amortization expense, 2020 | 27.3 | ||
Estimated amortization expense, 2021 | 23.8 | ||
Estimated amortization expense, 2022 | $ 20.3 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges and Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | $ 1.5 | $ 1 | $ 8.4 | |||
Restructuring Liabilities Assumed in Business Combination | 0 | |||||
Provision/(credits) | 21.7 | 5.4 | (0.4) | |||
Cash expenditures | (13.4) | (4.9) | (6.7) | |||
Non-cash Items/ Currency Change | 0.7 | 0 | (0.3) | |||
Balance at end of period | $ 13.3 | 13.3 | 1.5 | 1 | ||
Proceeds from Sale of Property, Plant, and Equipment | 4.2 | 0.7 | 2.8 | |||
Employee termination costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | 1.4 | 0.9 | 7.8 | |||
Restructuring Liabilities Assumed in Business Combination | 0 | |||||
Provision/(credits) | 18.2 | 5.2 | (0.6) | |||
Cash expenditures | (9.6) | (4.7) | (6) | |||
Non-cash Items/ Currency Change | (0.5) | 0 | (0.3) | |||
Balance at end of period | 12 | $ 12 | 1.4 | 0.9 | ||
Period over which restructuring and related costs are to be paid | 18 months | |||||
Termination of lease agreements | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | $ 0.1 | 0.1 | 0.6 | |||
Restructuring Liabilities Assumed in Business Combination | 0 | |||||
Provision/(credits) | 2.4 | 0.2 | 0.2 | |||
Cash expenditures | (3.1) | (0.2) | (0.7) | |||
Non-cash Items/ Currency Change | (0.2) | 0 | 0 | |||
Balance at end of period | 0.8 | $ 0.8 | 0.1 | $ 0.1 | ||
Period over which restructuring and related costs are to be paid | 15 months | |||||
Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | $ 0 | |||||
Provision/(credits) | 1.1 | |||||
Cash expenditures | (0.7) | |||||
Non-cash Items/ Currency Change | 0 | |||||
Balance at end of period | 0.5 | $ 0.5 | 0 | |||
Period over which restructuring and related costs are to be paid | 12 months | |||||
Esselte Acquisition | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | $ 2.8 | |||||
Esselte Acquisition | Employee termination costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | 1.5 | |||||
Esselte Acquisition | Termination of lease agreements | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | 1.2 | |||||
Esselte Acquisition | Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | $ 0.1 | |||||
PA Acquisition | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | 0 | |||||
PA Acquisition | Employee termination costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | 0 | |||||
PA Acquisition | Termination of lease agreements | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Liabilities Assumed in Business Combination | $ 0 | |||||
Buildings | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Proceeds from Sale of Property, Plant, and Equipment | 3.9 | |||||
Gain (Loss) on Disposition of Assets | $ 1.5 | |||||
Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost Remaining | $ 4 | $ 3.5 |
Restructuring (Restructuring 89
Restructuring (Restructuring Charges (Credits)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (credits) | $ 21.7 | $ 5.4 | $ (0.4) |
Operating Segments | ACCO Brands North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (credits) | 5.5 | 1.1 | (0.4) |
Operating Segments | ACCO Brands EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (credits) | 11.2 | 0 | 0 |
Operating Segments | ACCO Brands International | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (credits) | $ 5 | $ 4.3 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 68.7 | $ 33.9 | $ 60.9 |
Foreign operations | 89.4 | 91.2 | 70.5 |
Income before income tax | $ 158.1 | $ 125.1 | $ 131.4 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at U.S. statutory rate of 35% | $ 55.3 | $ 43.8 | $ 46 |
Effect of the U.S. Tax Act | (25.7) | 0 | 0 |
State, local and other tax, net of federal benefit | 3.6 | 2.4 | 2.1 |
U.S. effect of foreign dividends and withholding taxes | 4.9 | 4.6 | 3.9 |
Unrealized foreign currency expense (benefit) on intercompany debt | 0 | 0.7 | (0.7) |
Realized foreign exchange net loss on intercompany loans | 0 | (9.6) | 0 |
Revaluation of previously held equity interest | 0 | (12) | 0 |
Foreign income taxed at a lower effective rate | (6.9) | (4.6) | (5.6) |
Interest on Brazilian Tax Assessment | 2.2 | 2.8 | 2.7 |
Expiration of tax credits | 0 | 10.9 | 1 |
Decrease in valuation allowance | (0.6) | (9.9) | (1.3) |
Excess benefit from stock-based compensation | (5.6) | 0 | 0 |
Other | (0.8) | 0.5 | (2.6) |
Income tax expense | $ 26.4 | $ 29.6 | $ 45.5 |
Effective income tax rate | 16.70% | 23.70% | 34.60% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2017 | May 02, 2016 | Dec. 31, 2014 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | ||||||||
Income tax expense | $ 26.4 | $ 29.6 | $ 45.5 | |||||
Income before income tax | $ 158.1 | $ 125.1 | $ 131.4 | |||||
Effective tax rate | 16.70% | 23.70% | 34.60% | |||||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | $ 0 | $ 12 | $ 0 | |||||
Excess benefit from stock-based compensation | $ 5.6 | $ 0 | $ 0 | |||||
U.S. statutory rate | 35.00% | 35.00% | 35.00% | |||||
Realized Foreign Exchange Loss on Intercompany Loan | $ 0 | $ 9.6 | $ 0 | |||||
Expiration of tax credits | 0 | 10.9 | 1 | |||||
Undistributed earnings of foreign subsidiaries | 500 | |||||||
Operating loss carryforwards | 529.6 | |||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 14.7 | |||||||
Unrecognized tax benefits | 47.2 | 43.7 | 34.8 | $ 45.9 | ||||
Unrecognized tax benefits that would impact effective tax rate | 45.5 | |||||||
Effect of the U.S. Tax Act | (25.7) | 0 | 0 | |||||
Foreign tax credit carryforwards | $ 29.1 | 0 | ||||||
Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Operating loss carryforwards, expiration year | 2,018 | |||||||
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 | 2,013 | |||||||
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 | $ 2.2 | 2.8 | 2.7 | |||||
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 Year 2011 | ||||||||
Income Tax Examination [Line Items] | ||||||||
Unrecognized tax benefits | $ 5.5 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2007-2012 | ||||||||
Income Tax Examination [Line Items] | ||||||||
Unrecognized tax benefits | 38.7 | $ 44.5 | ||||||
Potential tax assessment, accrued reserve related to fair value of liabilities acquired | $ 43.3 | |||||||
Foreign Tax Authority | Secretariat of the Federal Revenue Bureau of Brazil | Tax Year 2008 to 2010 | ||||||||
Income Tax Examination [Line Items] | ||||||||
Unrecognized tax benefits | $ 24.6 | |||||||
Foreign Tax Authority | Canada Revenue Agency | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2,009 | |||||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2,011 | |||||||
Foreign Tax Authority | Swedish Tax Agency (Skatteverket) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2,011 | |||||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2,016 | |||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||||||
Income Tax Examination [Line Items] | ||||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ (25.7) | |||||||
Transition Toll Tax - Tax rate on cash | 15.50% | |||||||
Transition Toll Tax - Tax rate on all other earnings | 8.00% | |||||||
Transition Toll Tax | $ 38 | |||||||
Transition Toll Tax Payable Current | $ 3 | |||||||
Transition Toll Tax - years of which the transition toll tax is to be paid. | 8 years | |||||||
Foreign tax credit carryforwards | $ 14 | |||||||
Transition Toll Tax - net | 24 | |||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit | $ 49.7 | |||||||
Domestic Tax Authority | Internal Revenue Service (IRS) | Earliest Tax Year | ||||||||
Income Tax Examination [Line Items] | ||||||||
Open tax year | 2,014 | |||||||
U.S. state and foreign jurisdictions | ||||||||
Income Tax Examination [Line Items] | ||||||||
Net tax (benefit) expense from release and generation of valuation allowances | $ (0.7) | (0.7) | $ (0.3) | |||||
PA Acquisition | ||||||||
Income Tax Examination [Line Items] | ||||||||
Revaluation gain/loss on previously held joint-venture equity interest | $ 28.9 | |||||||
Deferred tax liabilities | $ 0.2 | |||||||
Deferred tax assets | $ 5.7 | |||||||
Esselte Acquisition | ||||||||
Income Tax Examination [Line Items] | ||||||||
Deferred tax liabilities | $ 83.6 | |||||||
Deferred tax assets | $ 106.3 | |||||||
Forecast | ||||||||
Income Tax Examination [Line Items] | ||||||||
U.S. statutory rate | 21.00% |
Income Taxes (Components of I93
Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current expense | |||
Federal and other | $ 41.1 | $ 0.7 | $ 2.1 |
Foreign | 30.5 | 22.9 | 16 |
Total current income tax expense | 71.6 | 23.6 | 18.1 |
Deferred expense (benefit) | |||
Federal and other | (47.4) | 3.5 | 22.8 |
Foreign | 2.2 | 2.5 | 4.6 |
Total deferred income tax (benefit) expense | (45.2) | 6 | 27.4 |
Income tax expense | $ 26.4 | $ 29.6 | $ 45.5 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Compensation and benefits | $ 18.5 | $ 20.7 |
Pension | 49.6 | 28.6 |
Inventory | 10.6 | 12.4 |
Other reserves | 15.2 | 19.1 |
Accounts receivable | 5.7 | 7 |
Foreign tax credit carryforwards | 29.1 | 0 |
Net operating loss carryforwards | 126.6 | 47.2 |
Other | 5.6 | 10.3 |
Gross deferred income tax assets | 260.9 | 145.3 |
Valuation allowance | (45) | (11.7) |
Net deferred tax assets | 215.9 | 133.6 |
Deferred tax liabilities | ||
Depreciation | (17.2) | (12.6) |
Identifiable intangible | (237.9) | (240.4) |
Gross deferred tax liabilities | (255.1) | (253) |
Net deferred tax liabilities | $ (39.2) | $ (119.4) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 43.7 | $ 34.8 | $ 45.9 |
Additions for tax positions of prior years | 2.9 | 3 | 3 |
Reductions for tax positions of prior years | (0.7) | (0.5) | 0 |
Esselte Acquisition | 1.6 | 0 | 0 |
Increase resulting from foreign currency translation | 0 | 6.4 | 0 |
Decrease resulting from foreign currency translation | (0.3) | 0 | (14.1) |
Balance at end of year | $ 47.2 | $ 43.7 | $ 34.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Number of Shares Outstanding Basic and Diluted [Line Items] | |||
Common stock, shares, outstanding | 106,684,084 | 107,906,644 | 105,640,003 |
Repurchased and retired common stock | 3,267,881 | 0 | 7,690,628 |
Treasury Stock, Shares, Acquired | 700,000 | 700,000 | 700,000 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted-average number of common shares outstanding - basic | 108,100,000 | 107,000,000 | 108,800,000 |
Adjusted weighted average shares and assumed conversions - diluted | 110,900,000 | 109,200,000 | 110,600,000 |
Potentially dilutive shares excluded from computation of dilutive earnings per share | 3,100,000 | 3,600,000 | 5,500,000 |
Stock options | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 1,300,000 | 800,000 | 200,000 |
Stock-settled stock appreciation rights | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 300,000 |
Restricted stock units | |||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Incremental common shares attributable to share-based payment arrangements | 1,500,000 | 1,400,000 | 1,300,000 |
Derivative Financial Instrume97
Derivative Financial Instruments (Narrative) (Details) - Foreign exchange contracts - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 95 | $ 52.1 |
Cash Flow Hedging | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 93.5 | $ 76.5 |
Derivative Financial Instrume98
Derivative Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 25.1 | $ 4.4 |
Derivative Liabilities | 25.4 | 0.3 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.5 | 4 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.5 | 0 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.4 | 0.4 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.7 | 0.3 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 24.2 | 0 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 24.2 | $ 0 |
Derivative Financial Instrume99
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives not designated as hedging instruments | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (1.5) | $ (2) | $ (0.5) |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (4.9) | (0.1) | 8.2 |
Cash Flow Hedging | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Reclassified from OCI (Effective Portion) | $ 1.6 | $ 2.5 | $ (10.9) |
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, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value of total debt | $ 951.5 | $ 708.4 |
Forward currency contracts, assets | 25.1 | 4.4 |
Forward currency contracts, liabilities | $ 25.4 | $ 0.3 |
Fair Value Of Financial Inst101
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Total debt | $ 939.5 | $ 703.5 |
Accumulated Other Comprehens102
Accumulated Other Comprehensive Income (Loss) (Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (419.4) | $ (429.2) |
Other comprehensive income (loss) before reclassifications, net of tax | (46.5) | 5.3 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 4.8 | 4.5 |
Ending Balance | (461.1) | (419.4) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 2.5 | 0.8 |
Other comprehensive income (loss) before reclassifications, net of tax | (3.6) | 0 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1.3 | 1.7 |
Ending Balance | 0.2 | 2.5 |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (285.9) | (302.7) |
Other comprehensive income (loss) before reclassifications, net of tax | (19.5) | 16.8 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Ending Balance | (305.4) | (285.9) |
Unrecognized Pension and Other Post-retirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (136) | (127.3) |
Other comprehensive income (loss) before reclassifications, net of tax | (23.4) | (11.5) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 3.5 | 2.8 |
Ending Balance | $ (155.9) | $ (136) |
Accumulated Other Comprehens103
Accumulated Other Comprehensive Income (Loss) (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Cost of products sold | $ (1,292.4) | $ (1,042) | $ (1,032) | |
Income tax (benefit) expense | (26.4) | (29.6) | (45.5) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Net of tax | (4.8) | (4.5) | 5.2 | |
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 | (1.6) | (2.4) | 10.9 | |
Income tax (benefit) expense | 0.3 | 0.7 | (3.2) | |
Net of tax | (1.3) | (1.7) | 7.7 | |
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 | (4.6) | (3.1) | (3.6) | [1] |
Amortization of prior service cost included in net income | (0.4) | (0.4) | (0.1) | [1] |
Total before tax | (5) | (3.5) | (3.7) | |
Income tax (benefit) expense | 1.5 | 0.7 | 1.2 | |
Net of tax | $ (3.5) | $ (2.8) | $ (2.5) | |
[1] | This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (income) for pension and post-retirement plans (See "Note 5. Pension and Other Retiree Benefits" for additional details) |
Information on Business Segm104
Information on Business Segments (Net Sales by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 566.8 | $ 532.2 | $ 490 | $ 359.8 | $ 437.6 | $ 431.3 | $ 410.1 | $ 278.1 | $ 1,948.8 | $ 1,557.1 | $ 1,510.4 | ||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 999 | 1,016.1 | 1,025.7 | ||||||||||||||||
ACCO Brands EMEA | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 542.8 | 171.8 | 199.7 | ||||||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 407 | $ 369.2 | $ 285 | ||||||||||||||||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year and we expect these trends to continue. 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 product categories we sell lend themselves to calendar year-end purchase timing, including 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 Segm105
Information on Business Segments (Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 79.6 | $ 58.7 | $ 45.4 | $ 9.3 | $ 59.7 | $ 55.7 | $ 45.4 | $ 6.5 | $ 193 | [1] | $ 167.3 | [1] | $ 163.5 | [1] | |
Interest expense | 41.1 | 49.3 | 44.5 | ||||||||||||
Interest income | (5.8) | (6.4) | (6.6) | ||||||||||||
Equity in earnings of joint-venture | 0 | (2.1) | (7.9) | ||||||||||||
Other (income) expense, net | (0.4) | 1.4 | 2.1 | ||||||||||||
Income before income tax | 158.1 | 125.1 | 131.4 | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | [1] | 243.6 | 215.3 | 198.7 | |||||||||||
Corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | (50.6) | (48) | (35.2) | [2] | |||||||||||
Transaction costs | 5 | 10.5 | 0.6 | ||||||||||||
ACCO Brands North America | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 155.6 | 153.3 | 151.6 | ||||||||||||
ACCO Brands EMEA | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | 37.1 | 12.6 | 18 | ||||||||||||
ACCO Brands International | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income | $ 50.9 | $ 49.4 | $ 29.1 | ||||||||||||
[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 loss in 2017, 2016 and 2015 includes transaction costs of $5.0 million, $10.5 million and $0.6 million respectively, primarily for legal and due diligence expenditures associated with the Esselte and PA acquisitions. |
Information on Business Segm106
Information on Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 2,799.1 | $ 2,064.5 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,039.7 | 831.7 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,758.6 | 1,232 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 0.8 | 0.8 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 413.9 | 404.3 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 287.6 | 104 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 338.2 | $ 323.4 |
[1] | Represents total assets, excluding: goodwill and identifiable intangibles resulting from business acquisitions, intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. |
Information on Business Segm107
Information on Business Segments (Identifiable Intangibles and Goodwill by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | $ 2,799.1 | $ 2,064.5 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 2,550 | 1,984.5 | |
Unallocated Assets | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | 248.3 | 79.2 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 0.8 | 0.8 |
ACCO Brands North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 1,204.3 | 1,206.8 |
ACCO Brands EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | 711.7 | 155.2 |
ACCO Brands International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets Including Allocation of Identifiable Intangible Assets and Goodwill | [1] | $ 634 | $ 622.5 |
[1] | Represents total assets, excluding: intercompany balances, cash, deferred taxes, derivatives, prepaid pension assets and prepaid debt issuance costs. |
Information on Business Segm108
Information on Business Segments (Capital Spend by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 31 | $ 18.5 | $ 27.6 |
Operating Segments | ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 16.3 | 10.3 | 12.5 |
Operating Segments | ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | 5.1 | 2.9 | 10.3 |
Operating Segments | ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total capital spend | $ 9.6 | $ 5.3 | $ 4.8 |
Information on Business Segm109
Information on Business Segments (Depreciation Expense by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 35.6 | $ 30.4 | $ 32.4 |
Operating Segments | ACCO Brands North America | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 17.7 | 19.7 | 23.3 |
Operating Segments | ACCO Brands EMEA | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | 11.9 | 5 | 3.4 |
Operating Segments | ACCO Brands International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation | $ 6 | $ 5.7 | $ 5.7 |
Information on Business Segm110
Information on Business Segments (Property, Plant and Equipment by Country) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | [1] | $ 278.5 | $ 198.4 |
Reportable Geographical Components [Member] | U.S. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 102.3 | 103 | |
Reportable Geographical Components [Member] | Brazil | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 35.6 | 36.8 | |
Reportable Geographical Components [Member] | U.K. | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 30.5 | 30.3 | |
Reportable Geographical Components [Member] | Poland | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 26.8 | 0 | |
Reportable Geographical Components [Member] | Germany | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 21.2 | 0 | |
Reportable Geographical Components [Member] | Australia | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 14.7 | 12.5 | |
Reportable Geographical Components [Member] | Other countries | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 47.4 | $ 15.8 | |
[1] | Net property, plant and equipment as of December 31, 2017 and 2016 contained $42.1 million and $34.7 million of computer software assets, respectively, which are classified within machinery and equipment and construction in progress. Amortization expense for software was $7.1 million, $7.0 million and $6.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Information on Business Segm111
Information on Business Segments (Revenue by Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | $ 566.8 | $ 532.2 | $ 490 | $ 359.8 | $ 437.6 | $ 431.3 | $ 410.1 | $ 278.1 | $ 1,948.8 | $ 1,557.1 | $ 1,510.4 | |||||||||
Reportable Geographical Components [Member] | U.S. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 880.4 | 894.4 | 904.3 | ||||||||||||||||
Reportable Geographical Components [Member] | Australia | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 173.5 | 156.5 | 91.8 | ||||||||||||||||
Reportable Geographical Components [Member] | Germany | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 141.4 | 0 | 0 | ||||||||||||||||
Reportable Geographical Components [Member] | Canada | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 118.6 | 121.7 | 121.4 | ||||||||||||||||
Reportable Geographical Components [Member] | Brazil | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 114.6 | 102.6 | 92 | ||||||||||||||||
Reportable Geographical Components [Member] | Netherlands | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 111.3 | 101.4 | 108.7 | ||||||||||||||||
Reportable Geographical Components [Member] | Sweden | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 61.3 | 0 | 0 | ||||||||||||||||
Reportable Geographical Components [Member] | U.K. | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 59.2 | 59.1 | 76.4 | ||||||||||||||||
Reportable Geographical Components [Member] | Mexico | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | 50.6 | 47.3 | 49.6 | ||||||||||||||||
Reportable Geographical Components [Member] | Other countries | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 237.9 | $ 74.1 | $ 66.2 | ||||||||||||||||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year and we expect these trends to continue. 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 product categories we sell lend themselves to calendar year-end purchase timing, including 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 Segm112
Information on Business Segments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 615.1 | $ 663.5 | $ 637.7 |
Sales Revenue, Net | Staples | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, sales | $ 210.5 | $ 204.1 | |
Concentration risk, percentage | 14.00% | 14.00% | |
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 | ||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Top five customers | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, trade account receivable | $ 148.4 | $ 162.2 |
Joint Venture Investment (Detai
Joint Venture Investment (Details) - PA Acquisition - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | May 01, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Net sales | $ 34.9 | $ 111.2 | |
Gross profit | 14.1 | 45.5 | |
Net income | $ 4.1 | $ 15.8 |
Commitments and Contingencie114
Commitments and Contingencies (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 28.1 | ||
2,019 | 25 | ||
2,020 | 21.6 | ||
2,021 | 16.2 | ||
2,022 | 12.2 | ||
Thereafter | 17.6 | ||
Total minimum rental payments | 120.7 | ||
Less minimum rentals to be received under non-cancelable subleases | 2 | ||
Future minimum payments for operating leases, net of sublease rental income | 118.7 | ||
Total rental expense | $ 30.9 | $ 24.2 | $ 21.2 |
Commitments and Contingencie115
Commitments and Contingencies (Purchase Commitments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 96.8 |
2,019 | 0.2 |
2,020 | 0.1 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total unconditional purchase commitments | $ 97.1 |
Quarterly Financial Informat116
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 566.8 | [1] | $ 532.2 | [1] | $ 490 | [1] | $ 359.8 | [1] | $ 437.6 | [1] | $ 431.3 | [1] | $ 410.1 | [1] | $ 278.1 | [1] | $ 1,948.8 | $ 1,557.1 | $ 1,510.4 | |||
Gross profit | 199.2 | 177.9 | 168.5 | 110.8 | 153.7 | 144.2 | 134.8 | 82.4 | 656.4 | 515.1 | 478.4 | |||||||||||
Operating income | 79.6 | 58.7 | 45.4 | 9.3 | 59.7 | 55.7 | 45.4 | 6.5 | 193 | [2] | 167.3 | [2] | 163.5 | [2] | ||||||||
Net income | $ 74 | $ 30.6 | $ 23.5 | $ 3.6 | $ 6.1 | $ 22.7 | $ 61.9 | $ 4.8 | $ 131.7 | $ 95.5 | $ 85.9 | |||||||||||
Basic income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.69 | [3] | $ 0.28 | [3] | $ 0.21 | [3] | $ 0.03 | [3] | $ 0.06 | [3] | $ 0.21 | [3] | $ 0.58 | [3] | $ 0.05 | [3] | $ 1.22 | $ 0.89 | $ 0.79 | |||
Diluted income (loss) per share: | ||||||||||||||||||||||
Net income (loss) | $ 0.68 | [3] | $ 0.28 | [3] | $ 0.21 | [3] | $ 0.03 | [3] | $ 0.06 | [3] | $ 0.21 | [3] | $ 0.57 | [3] | $ 0.04 | [3] | $ 1.19 | $ 0.87 | $ 0.78 | |||
[1] | Historically, our business has experienced higher sales and earnings in the third and fourth quarters of the calendar year and we expect these trends to continue. 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 product categories we sell lend themselves to calendar year-end purchase timing, including 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 shares of common stock and repurchasing of shares of common stock during the year. |
Subsequent Event (Details)
Subsequent Event (Details) - Common Stock - USD ($) $ / shares in Units, $ in Millions | Feb. 12, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 84 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.06 | |
Dividends Payable, Date to be Paid | Mar. 21, 2018 | |
Dividends Payable, Date of Record | Mar. 1, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 100 |
Valuation and Qualifying Acc118
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 4.5 | $ 4.8 | $ 5.5 |
Additions charged (credited) to expense | 0 | 0.2 | 3.2 |
Deductions | (1.1) | (0.8) | (3.5) |
Acquisitions | 1.7 | 0.1 | 0 |
Foreign exchange changes | 0.3 | 0.2 | (0.4) |
Balance at end of year | 5.4 | 4.5 | 4.8 |
Allowance for Sales Returns and Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 9.4 | 11.7 | 12 |
Additions charged (credited) to expense | 23.7 | 22.5 | 30.3 |
Deductions | (24.5) | (24.9) | (30.4) |
Acquisitions | 0.8 | 0 | 0 |
Foreign exchange changes | 0.3 | 0.1 | (0.2) |
Balance at end of year | 9.7 | 9.4 | 11.7 |
Allowance for Cash Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1.8 | 2.2 | 2 |
Additions charged (credited) to expense | 22.9 | 13.6 | 14.2 |
Deductions | (22.6) | (14.1) | (13.9) |
Acquisitions | 0.8 | 0.2 | 0 |
Foreign exchange changes | 0.1 | (0.1) | (0.1) |
Balance at end of year | 3 | 1.8 | 2.2 |
Warranty Reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1.9 | 1.7 | 1.8 |
Additions charged (credited) to expense | 2.8 | 2.2 | 1.8 |
Deductions | (2.7) | (2.2) | (1.8) |
Acquisitions | 1.8 | 0.3 | 0 |
Foreign exchange changes | 0.3 | (0.1) | (0.1) |
Balance at end of year | 4.1 | 1.9 | 1.7 |
Income Tax Valuation Allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 11.7 | 22.1 | 23.9 |
Charge for effect of U.S. Tax Act | 15.1 | 0 | 0 |
Additions charged (credited) to expense | (0.7) | (0.7) | (0.3) |
Deductions | 1.2 | (9.3) | (1.1) |
Acquisitions | 16.1 | 0 | 0 |
Foreign exchange changes | 1.6 | (0.4) | (0.4) |
Balance at end of year | $ 45 | $ 11.7 | $ 22.1 |