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What changed in ACCO BRANDS Corp's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of ACCO BRANDS Corp's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+266 added−284 removedSource: 10-K (2025-02-21) vs 10-K (2024-02-23)

Top changes in ACCO BRANDS Corp's 2024 10-K

266 paragraphs added · 284 removed · 206 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeCommunity Involvement We aim to give back to the communities where we live and work. Our corporate values include acting responsibly in our global communities through numerous employee volunteer and outreach initiatives. We encourage our employees to make a difference in our Company and in their communities by building on a fundamental commitment to integrity, teamwork, respect and inclusivity.
Biggest changeWe have been recognized as one of the safest companies in America and the U.K. on multiple occasions. 4 Community Involvement We aim to give back to the communities where we live and work. Our corporate values include acting responsibly in our global communities through numerous employee volunteer and outreach initiatives.
We also believe that our experience and skill in managing complex assortments and large seasonal demand is a competitive advantage, as is our strong relationships with technology and content providers in our technology accessories categories. Product Development We seek opportunities to invest in new products and adjacencies.
We also believe that our experience and skill in managing complex assortments and large seasonal demand is a competitive advantage, as are our strong relationships with technology and content providers in our technology accessories categories. Product Development We seek opportunities to invest in new products and adjacencies.
ITEM 1. BUSINESS As used in this Annual Report on Form 10-K for the fiscal year ended December 31, 2023, 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.
ITEM 1. BUSINESS As used in this Annual Report on Form 10-K for the fiscal year ended December 31, 2024, 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.
Buchenroth, age 56 • 2024 - present, Executive Vice President and President, Americas • 2017 - 2023, Executive Vice President and President, ACCO Brands International • 2013 - 2017, Senior Vice President and President, Emerging Markets • Joined the Company in 2002 Paul P.
Buchenroth, age 57 • 2024 - present, Executive Vice President and President, Americas • 2017 - 2023, Executive Vice President and President, ACCO Brands International • 2013 - 2017, Senior Vice President and President, Emerging Markets • Joined the Company in 2002 Paul P.
Monko , age 62 • 2024 - present, Executive Vice President and President, International • 2017 - 2023, Executive Vice President and President, ACCO Brands EMEA • 2014 - 2017, President and Chief Executive Officer, Esselte • Joined the Company in 1992 Deborah A.
Monko , age 63 • 2024 - present, Executive Vice President and President, International • 2017 - 2023, Executive Vice President and President, ACCO Brands EMEA • 2014 - 2017, President and Chief Executive Officer, Esselte • Joined the Company in 1992 Deborah A.
Overview of the Company ACCO Brands is a leading global consumer, technology and business branded products company, providing well-known brands and innovative product solutions used in schools, homes and at work. Approximately 77 percent of our 2023 net sales came from brands that are in the No. 1 or No. 2 position in the product categories in which we compete.
Overview of the Company ACCO Brands is a leading global consumer, technology and business branded products company, providing well-known brands and innovative product solutions used in schools, homes and at work. Approximately 75 percent of our 2024 net sales came from brands that are in the No. 1 or No. 2 position in the product categories in which we compete.
McCormack , age 60 • 2024 - present - Senior Vice President, Global Operations and Supply Chain • 2018 - 2023, Senior Vice President, Global Products and Operations • 2013 - 2018, Senior Vice President, Global Products • Joined the Company in 1996 Cezary L.
McCormack , age 61 • 2024 - present - Senior Vice President, Global Operations and Supply Chain • 2018 - 2023, Senior Vice President, Global Products and Operations • 2013 - 2018, Senior Vice President, Global Products • Joined the Company in 1996 Cezary L.
O'Connor , age 61 • 2022 - present, Executive Vice President and Chief Financial Officer • 2020 - 2021, President and Chief Financial Officer, True Value Company • 2015 - 2020, Senior Vice President and Chief Financial Officer, True Value Company • Joined the Company in 2022 Pamela R.
O'Connor , age 62 • 2022 - present, Executive Vice President and Chief Financial Officer • 2020 - 2021, President and Chief Financial Officer, True Value Company • 2015 - 2020, Senior Vice President and Chief Financial Officer, True Value Company • Joined the Company in 2022 Pamela R.
Tedford , age 53 • 2023 - present, President and Chief Executive Officer • 2021 - 2023, President and Chief Operating Officer • 2015 - 2021, Executive Vice President and President, ACCO Brands North America • Joined the Company in 2010 6
Tedford , age 54 • 2023 - present, President and Chief Executive Officer • 2021 - 2023, President and Chief Operating Officer • 2015 - 2021, Executive Vice President and President, ACCO Brands North America • Joined the Company in 2010 6
Schneider , age 64 • 2012 - present, Senior Vice President, General Counsel and Secretary • 2010 - 2012, General Counsel, Accertify, Inc. • Joined the Company in 2012 Thomas W.
Schneider , age 65 • 2012 - present, Senior Vice President, General Counsel and Secretary • 2010 - 2012, General Counsel, Accertify, Inc. • Joined the Company in 2012 Thomas W.
Throughout the year, we also deliver Company-required learning to ensure compliance with our Code of Conduct and other important policies. 4 Employee Health and Safety ("EHS") We are committed to Mission Zero— pursuing continuous improvement in health and safety within all our locations and to attain our goal of zero accidents and zero incidents.
We also deliver Company-required learning to ensure compliance with our Code of Conduct and other important policies. Employee Health and Safety ("EHS") We are committed to Mission Zero— pursuing continuous improvement in health and safety within all our locations and to attain our goal of zero accidents and zero incidents.
Our commitment to understanding our consumers and end-users and designing products that fulfill their needs drives our product development strategy, which we believe will continue to be a key contributor to our success. Our products are developed by our internal research and development teams or through partnership initiatives with inventors, vendors and technology providers.
Our commitment to understanding our consumers and end-users and designing products that fulfill their needs drives our product development strategy, which we believe will continue to be a key contributor to our success. Our products are developed by our internal research and development teams and with technology providers.
These channels include mass retailers, e-tailers, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, contract stationers, and specialist technology businesses. We also sell directly through e-commerce sites and our direct sales organization.
These channels include mass retailers, e-tailers, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, contract stationers, and specialist technology businesses. We also sell directly through e-commerce sites and our direct sales organization. Competition We operate in a highly competitive environment.
Management's Discussion and Analysis of Financial Condition and Results of Operations - Summary of Cash Flow by Quarter and Full-Year." Customers We distribute our products through a wide variety of channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop.
Management's Discussion and Analysis of Financial Condition and Results of Operations" 2 Customers We distribute our products through a wide variety of channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop.
Daniel , age 58 • August 2022 - present, Senior Vice President and Chief Information Officer • February 2020 - August 2022, Vice President, Infrastructure and Operations • April 2017 - February 2020 - Vice President, Global IT Operations, Tate & Lyle PLC • Joined the Company in 2020 James M.
Daniel , age 59 • 2022 - present, Senior Vice President and Chief Information Officer • 2020 - 2022, Vice President, Infrastructure and Operations • 2017 - 2020 - Vice President, Global IT Operations, Tate & Lyle PLC • Joined the Company in 2020 James M.
Registrations of trademarks can generally be renewed indefinitely as long as the trademarks are in use. We also own numerous patents worldwide. Additionally, our gaming accessories business depends on maintaining our licensing rights with key gaming console manufacturers and video game publishers.
Registrations of trademarks can generally be renewed indefinitely as long as the trademarks are in use. We also own numerous patents worldwide. Additionally, our gaming accessories business depends on maintaining our licensing rights with key gaming console manufacturers and video game publishers. Human Capital Resources The people behind the brands are our greatest assets and key enablers of our success.
Dudek, Jr. , age 52 • 2020 - present, Senior Vice President, Corporate Controller and Chief Accounting Officer • 2017 - 2020, Vice President and Corporate Controller • 2016 - 2017, Chief Accounting Officer, Innerworkings, Inc. • Joined the Company in 2017 Boris Elisman, age 61 • 2023 - present, Executive Chairman • 2021 - 2023, Chairman and Chief Executive Officer • 2016 - 2021, Chairman, President and Chief Executive Officer • Joined the Company in 2004 Angela Jones , age 60 • 2020 - present, Senior Vice President and Global Chief People Officer • 2018 - 2020, Senior Vice President and Chief People Officer, Compass Minerals • 2016 - 2018, Vice President, Human Resources Rembrandt Foods • Joined the Company in 2020 Gregory J.
Dudek, Jr. , age 53 • 2020 - present, Senior Vice President, Corporate Controller and Chief Accounting Officer • 2017 - 2020, Vice President and Corporate Controller • 2016 - 2017, Chief Accounting Officer, Innerworkings, Inc. • Joined the Company in 2017 Angela Jones , age 61 • 2020 - present, Senior Vice President and Global Chief People Officer • 2018 - 2020, Senior Vice President and Chief People Officer, Compass Minerals • 2016 - 2018, Vice President, Human Resources Rembrandt Foods • Joined the Company in 2020 Gregory J.
Historically we have made acquisitions that have meaningfully expanded our portfolio of well-known brands, enhanced our competitive position from both a product and channel perspective, added scale to our operations and increased our geographic presence.
Historically we have made acquisitions that have meaningfully expanded our portfolio of well-known brands, enhanced our competitive position from both a product and channel perspective, added scale to our operations and increased our geographic presence. Operating Segments ACCO Brands has two operating segments based in different geographic regions: Americas and International.
All our operating cash flow is generated in the second half of the year, as the cash inflows in the first and second quarters are consumed building working capital, and for making our annual performance-based compensation payments when earned.
Generally, our operating cash flow is generated in the second half of the year, as the cash inflows in the first and second quarters are consumed building working capital and making our annual performance-based compensation payments when earned. Our third and fourth quarter cash flows come from completing the working capital cycle.
We have implemented our Comprehensive Environmental and Safety Management Plan ("CESMP") as an overall management system for our manufacturing and distribution locations. CESMP audits are completed by our EHS teams to measure the proactive steps each location is taking to prevent injuries. We have been recognized as one of the safest companies in America and the U.K. on multiple occasions.
We have implemented our Comprehensive Environmental and Safety Management Plan as an overall management system for our manufacturing and distribution locations. Audits are completed by our teams to measure the proactive steps each location is taking to prevent injuries.
This change will simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply change optimization, global footprint rationalization, and better leverage of our sourcing capabilities. The Company will recast prior period comparable results in early 2024 to reflect this operating segment change.
This reorganization has and will continue to simplify and delayer the Company's operating structure and is continuing to reduce costs through headcount reductions, supply change optimization, global footprint rationalization, and better leverage of our sourcing capabilities. Prior period results have been reclassified to reflect this change in our operating segments.
Under our global footprint rationalization program, we will continue to rationalize our facilities as appropriate. We use third parties to source those products that require more direct labor to produce. We also look for opportunities to leverage our manufacturing facilities to improve operating efficiencies, as well as customer service. Intellectual Property Our products are marketed under a variety of trademarks.
Under our global footprint rationalization program, we will continue to rationalize our facilities as well as look for opportunities to leverage our manufacturing facilities to improve operating efficiencies. 3 Intellectual Property Our products are marketed under a variety of trademarks.
Sales Percentage by Operating Segment 2023 2022 2021 ACCO Brands North America 48% 51% 51% ACCO Brands EMEA 30% 30% 33% ACCO Brands International 22% 19% 16% 100% 100% 100% For more information on our operating business segments see "Note 17. Information on Business Segments" to the consolidated financial statements contained in Part II, Item 8. of this report.
Sales Percentage by Operating Segment 2024 2023 2022 ACCO Brands Americas 60% 62% 62% ACCO Brands International 40% 38% 38% 100% 100% 100% For more information on our operating segments see "Note 17. Information on Operating Segments" to the consolidated financial statements contained in Part II, Item 8. of this report.
The Company meets competitive challenges by creating and maintaining leading brands and differentiated products that deliver superior value, performance, and benefits to consumers and other end-users. Our products are sold through diverse distribution channels. We further meet consumer and end-user needs by developing, producing, and procuring products at a competitive cost, enabling them to be sold at attractive selling prices.
Our products are sold through diverse distribution channels. We further meet consumer and end-user needs by developing, producing, and procuring products at a competitive cost, enabling them to be sold at attractive selling prices.
Beginning on January 1, 2024, the Company will reorganize its previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. The Americas will include the U.S., Canada, Brazil, Mexico and Chile and the International reportable segment will include EMEA, Australia, New Zealand and Asia.
Effective January 1, 2024, the Company reorganized into two operating segments, the Americas and International. Americas includes the U.S., Canada, Brazil, Mexico and Chile and International includes EMEA, Australia, New Zealand and Asia.
Using a combination of our own manufacturing and third-party sourcing also enables us to reduce costs and effectively manage our production assets by lowering capital investment and working capital requirements. Our overall strategy is to manufacture locally those products that would incur a relatively high freight and/or duty expense or that have high 3 customer service needs.
Using a combination of our own manufacturing and third-party sourcing also enables us to reduce costs and effectively manage our production assets by lowering capital investment and working capital requirements.
Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing.
Each operating segment designs, markets, sources, manufactures and sells recognized consumer, technology and business branded products used in schools, homes and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design and sourcing.
There have been no strikes or material labor disputes at any of our facilities during the past five years. Diversity and Inclusion At ACCO Brands, our values include respecting the individual and embracing diversity.
There have been no strikes or material labor disputes at any of our facilities during the past five years. Culture Our core values include operating with integrity in all that we do, respecting the individual, embracing diverse perspectives and creativity to spark innovation, and acting responsibly in the communities where we live and work.
As of December 31, 2023, we had approximately 5,600 full-time and part-time employees worldwide, with approximately 4,100 employees based outside of the U.S. Approximately 500 manufacturing and distribution employees in our North America operating segment are covered by collective bargaining agreements. Outside the U.S., we have government-mandated collective bargaining arrangements in certain countries, particularly in Europe and Brazil.
We also rely on a contingent hourly workforce to supplement our full-time workforce to meet seasonal demand. Approximately 200 manufacturing and distribution employees in the U.S. are covered by collective bargaining agreements. We also have government-mandated collective bargaining arrangements in certain countries, particularly in Europe and Brazil.
Our third and fourth quarter cash flow comes from completing the working capital cycle. 2 For further information on the seasonality of our net sales, earnings and cash flow, see "Part II. Item 7.
The seasonality of our operating cash flow maybe impacted as we execute on our footprint rationalization program and increase our use of sourcing finished products. For further information on the seasonality of our net sales, earnings and cash flow, see "Part II, Item 7.
Competition ACCO Brands competes with numerous branded consumer products manufacturers, as well as many private label suppliers and importers, including various customers who import their own private label products directly from foreign sources. Examples of branded competitors include Bi-Silque, Blue Sky, Corsair, Dominion Blueline, Fellowes, Hamelin, Logitech, PDP, Razer, SteelSeries, and Targus, among others.
ACCO Brands competes with numerous branded consumer and business products manufacturers, as well as many private label suppliers and importers, including various customers who import their own private label products directly from foreign sources. The Company meets competitive challenges by creating and maintaining leading brands and differentiated products that deliver superior value, performance, and benefits to consumers and other end-users.
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Our top 12 brands represented approximately $1.3 billion of our 2023 net sales. Through our strategy, we have expanded into higher growth product categories, while increasing our sales mix to higher growth channels including retail and mass merchants, e-tailers, and technology specialists.
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Our top 12 brands represented approximately $1.3 billion of our 2024 net sales. Our products are sold primarily in the U.S., Europe, Australia, Canada, Brazil and Mexico.
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We have an experienced management team with a proven ability to grow brands, integrate acquisitions, manage seasonal businesses, run lean organizations and navigate challenging environments. Our products are sold primarily in the U.S., Europe, Australia, Canada, Brazil and Mexico.
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Note: Artline ® in Australia/N.Z. only Business Strategy Our key strategic priorities are to: • Focus on improving our innovation and new product development processes, expanding into new points of distribution and extending our product offering into adjacent categories. • Use our strong brand recognition and supply chain expertise to expand relationships with new and existing customers. • Manage mature product categories which remain important profit and cash generators. • Support profitability through margin expansion initiatives and our multi-year cost reduction and footprint rationalization programs. 1 • Maintain a balanced capital allocation strategy, which prioritizes debt reduction with our consistent cash flow to strengthen our balance sheet, while also supporting the quarterly dividend, potential share repurchases and opportunistic M&A. • Execute a disciplined acquisition approach focused on expanding brand presence, extending our geographic reach and complementing existing product lines, while maintaining a low leverage ratio and realizing synergies.
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Note: Artline ® in Australia/N.Z. only Business Strategy The Company is currently executing a strategy that will enable us to achieve long-term sustainable organic growth and profit improvement.
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The Company generates consistent operating cash flow, allowing for a balanced capital allocation strategy. Our capital allocation strategy includes investment to support internal capital projects to support our long-term growth, funding our quarterly dividend, share repurchases, debt reduction and potential acquisitions.
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Our key strategic priorities are to: • Drive sustainable organic sales growth by focusing on innovative new product development, strengthening our brand positioning, and increasing our presence in faster growing sales channels. • Use our strong brand recognition and supply chain expertise to expand relationships with new and existing customers. • Improve operating margins by introducing higher margin product offerings, rationalizing product assortments, improving operating productivity, and leveraging SG&A costs. • Manage declining product categories which remain important profit and cash generators. 1 Through this strategy we have diversified and expanded our product portfolio, focusing on innovative consumer and end-user products for use in schools, homes and businesses, with an emphasis on faster growing product categories.
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Seasonality Sales of the Company's products tend to be seasonal, with first quarter sales and operating income being lower than any other quarter. This is due to a combination of factors including lower volume and the mix of products sold in the first quarter.
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Our Technology Accessories product group, which consists of our gaming and computer accessories, is one such higher growth category where we seek opportunities to expand sales globally.
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In addition, in the Americas, the U.S. back-to-school season primarily falls in the second and third quarters, which impacts our seasonality. The seasonality of the Company's sales volume combined with our fixed costs, such as depreciation, amortization, rent, personnel costs and interest expense, impacts the Company's profits on a quarterly basis.
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More recently, we have prioritized the use of our operating cash flow to invest in internal capital projects to support our long-term growth, fund our quarterly dividend and reduce our debt. We will also consider opportunistic acquisitions that focus on growing product categories, including adjacencies.
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We are intentional about providing fulfilling work experiences and competitive total rewards packages that attract top talent, motivate employees to stay and actively engage in a winning team environment.
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Operating Segments ACCO Brands has three operating business segments based in different geographic regions: North America, EMEA, and International. Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and business branded products used in schools, homes and at work.
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At the end of 2024, we had approximately 5,000 full-time and part-time employees worldwide, with approximately 2,600 employees in our Americas operating segment (U.S., Canada, Brazil, Mexico and Chile), 2,300 in our International operating segment (EMEA, Australia and Asia) and 100 employees in Corporate.
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Seasonality Historically, each of our segments has demand that varies based on certain seasonal drivers. For North America, the important seasonal selling periods are related to back-to-school and the holiday season. The North America back-to-school season mainly occurs in the second and third quarters. The holiday season drives significant sales of technology accessories.
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Our culture helps to unlock each employee's sense of belonging and unique contributions, creating a culture where people bring their best ideas to the office and feel good about the work environment. Talent Management and Training Investing in people and growing talent, in the form of leadership development, supports business growth.
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The EMEA segment experiences much less seasonality than the other segments, but the first and fourth quarters are typically stronger, with the second and third impacted by lower demand due to summer vacations. The International segment historically has strong back-to-school sales in the fourth quarter and into January as Brazil and Australia are in the Southern hemisphere.
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As we adapt to changes in business needs and priorities, addressing skill gaps and building, and sustaining, strong talent is critical to our success. Our people strategy includes a mix of developmental roles and learning experiences for our current employees as well as acquiring external talent to address new capabilities to help the organization accelerate growth.
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In Mexico, back-to-school historically straddles the second and third quarters. As a result of the seasonal nature of the demand for our products, we expect to continue to generate a significant percentage of our sales and profit during the second, third, and fourth quarters, although the amounts generated in each of these quarters may vary due to changing customer behaviors.
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We encourage our employees to make a difference in our Company and in their communities by building on a fundamental commitment to responsibility. We support a wide range of charities worldwide, the most significant of which is the City of Hope, primarily based in the U.S. with far-reaching impacts of its medical and cancer-related research.
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Human Capital Resources As the Home of Great Brands Built by Great People, we believe our employees are our greatest assets and key enablers of our success. In alignment with our Vision, Values and Leadership Promise, we are intentional about providing a great work experience that attracts top talent and motivates them to stay and contribute to our winning team.
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The ACCO Brands and City of Hope partnership spans two decades. 5 Executive Leadership of the Company As of February 21, 2025, the executive leadership team of the Company consisted of the following executive officers. Ages are as of December 31, 2024. Patrick H.
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We believe that an equitable and inclusive environment with diverse teams produces more creative solutions, results in improved and more innovative products and services, and is crucial to our efforts to attract and retain key talent. We also believe that our leadership should closely reflect the diversity of our employees.
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ACCO Brands’ diversity goals are to increase the percentage of director-level-and-above female leaders to 33 percent by 2025. For the total Company, we made excellent progress in 2023, moving from our 2019 baseline of 26.6 percent to reach our goal ending the year at 33.0 percent.
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To continue to drive our diversity goals and build a culture of inclusion, we have established a multi-year roadmap and a governance model that engages leadership at all levels of the organization. We have also developed an enhanced diversity and inclusion dashboard to track our actions and outcomes.
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Our roadmap is focused on three key priorities: ensuring diverse candidate slates for all director-level-and-above job opportunities, integrating talent development and succession planning, and building manager capability to lead inclusively. Talent Management Building and sustaining strong talent is critical to our success.
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We know that offering the right mix of developmental roles and learning experiences will support our goal of building strong talent to lead the Company. At the same time, we recognize that building new capabilities may also require adding external talent in key roles to accelerate growth.
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This focus was key to our ability to fill 60 percent of our director-level and above open positions in 2023 with internal talent. Additionally, 18 percent of our director-level employees have mentors, while 54 percent have completed our "Raising the Bar" leadership development program.
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We support a wide range of charities worldwide, the most significant of which is the City of Hope in the U.S. which has been ongoing for many years. Sustainability/Environment We continued to make progress on our three Planet, People and Products global sustainability goals relating to energy efficiency, diversity and third-party certification that we announced in 2020.
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These commitments are 1) improving the energy efficiency of our facilities, 2) increasing the percentage of female leaders globally, and 3) raising the percentage of our revenue generated from certified or sustainable products. We published our fifth annual ESG Report for 2022.
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We strive for greater efficiencies in the procurement, use and disposal of resources and are committed to reducing our greenhouse gas emissions. We also report key metrics which we have determined are significant to our business according to the Sustainability Accounting Standards Board (SASB) Materiality Matrix.
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These metrics are focused in the areas of Energy Management, Data Security, Workforce Diversity and Inclusion, Product Sourcing, Packaging and Marketing, and Labor Conditions in the Supply Chain. 5 Executive Leadership of the Company As of February 23, 2024, the executive leadership team of the Company consisted of the following executive officers. Ages are as of December 31, 2023.
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Mark C. Anderson , age 61 • 2007 - present, Senior Vice President, Corporate Development • Joined the Company in 2007 Patrick H.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

70 edited+20 added−26 removed75 unchanged
Biggest changeWe are subject to national, state, provincial and/or local laws, rules and regulations, as well as self-regulatory requirements, in numerous countries due to the nature of our operations and the products we sell, including: • Laws and regulations applicable to U.S. public companies with securities listed on the New York Stock Exchange; • Laws relating to the discharge and emission of certain materials and waste, and laws establishing standards for their use, disposal, and management; • Laws governing the content of toxic chemicals and materials in the products we sell; • Laws relating to corporate governance, the environmental sustainability of our operations and products (including packaging) and the protection of human rights in our supply chain, including reporting obligations; • Product safety laws; • International trade laws, including tariffs, trade sanctions and embargoes; • Tax laws; • Privacy and data security laws and self-regulatory requirements regarding the acceptance, processing, storage, and transmission of credit card data; • Laws governing fair competition and marketing and advertising, including laws and regulations regarding "green" claims; and • Anti-bribery, anti-corruption and anti-money laundering laws.
Biggest changeWe are subject to national, state, provincial and/or local laws, rules and regulations, as well as self-regulatory requirements, in numerous countries due to the nature of our operations and the products we sell, including: • Laws and regulations applicable to U.S. public companies with securities listed on the New York Stock Exchange; • Delaware corporate law and laws relating to corporate governance; • International trade laws, including tariffs, trade sanctions and embargoes; • Tax laws; • Privacy and data security laws and self-regulatory requirements regarding the acceptance, processing, storage and transmission of credit card data; • Anti-bribery, anti-corruption and anti-money laundering laws; • Laws governing fair competition and marketing and advertising, including laws and regulations regarding "green" claims; and • Environmental laws, including laws relating to the use, discharge and emission of certain materials (including hazardous substances), waste disposal, GHG emissions and other discharges to air, soil and water; • Laws governing the toxic chemicals and materials in the products we sell, including PFAS; • Product safety laws; • Laws relating to the environmental sustainability of our operations and our products and packaging, the health and safety of our employees and the protection of human rights in our supply chain, including: o laws mandating reporting obligations, including deforestation disclosures, o extended producer responsibility laws and plastic or packaging taxes, and o laws establishing minimum recycled content requirements, governing labeling related to recyclability, and restricting or banning the use of certain materials in products or packaging, including single-use plastics (collectively “Sustainability Laws”); All of these legal frameworks are complex and change frequently.
We use hedging instruments to mitigate transactional exposure to changes in foreign currencies. The effectiveness of our hedges in part depends on our ability to accurately forecast future cash flows, which is particularly difficult during periods of uncertain demand for our products and highly volatile exchange rates. For additional information, see "Part II, Item 7A.
We use hedging instruments to mitigate transactional exposure to changes in foreign currencies. The effectiveness of our hedges depends in part on our ability to accurately forecast future cash flows, which is particularly difficult during periods of uncertain demand for our products and highly volatile exchange rates. For additional information, see "Part II, Item 7A.
An adverse change in the funded status of the plans could significantly increase our required future contributions and/or non-cash expenses and adversely impact our liquidity. We also participate in a multi-employer pension plan for our union employees at our Ogdensburg, New York facility. The plan has reported significant underfunded liabilities and declared itself in critical and declining status.
An adverse change in the funded status of our pension plans could significantly increase our required future contributions and/or non-cash expenses and adversely impact our liquidity. We also participate in a multi-employer pension plan for our union employees at our Ogdensburg, New York facility. The plan has reported significant underfunded liabilities and declared itself in critical and declining status.
Under certain circumstances, the terms of our debt agreements limit our ability to return 15 capital to stockholders through stock repurchases, dividends or otherwise. There is no assurance that we will continue to make dividend payments or repurchase stock.
Under certain circumstances, the terms of our debt agreements limit our ability to return capital 15 to stockholders through stock repurchases, dividends or otherwise. There is no assurance that we will continue to make dividend payments or repurchase stock.
When we are unable to accurately forecast and prepare for customer orders or our working capital needs, or if there is a downturn in business or economic conditions during these periods, our business, 9 results of operations, liquidity and financial condition have been, and in the future could be, adversely affected.
When we are unable to accurately forecast and prepare for customer orders or our working capital needs, or if there is a downturn in business or economic conditions during these periods, our business, results of operations, liquidity and financial condition have been, and in the future could be, adversely affected.
Additionally, because of these quarterly fluctuations, comparisons of our operating results across different fiscal quarters may not be meaningful. The level of investment returns on pension plan assets and the assumptions used for valuation purposes have affected the Company's earnings, and could affect the Company’s earnings and cash flows in future periods.
Additionally, because of these quarterly fluctuations, comparisons of our operating results across different fiscal quarters may not be meaningful. 9 The level of investment returns on pension plan assets and the assumptions used for valuation purposes have affected the Company's earnings and could affect the Company’s earnings and cash flows in future periods.
Further, these emerging markets are generally more remote from our headquarters' location and have different cultures that may make it be more difficult to impose corporate standards and procedures and the extraterritorial laws of the U.S. and other jurisdictions, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and other similar laws.
Further, these emerging markets are generally more remote from our headquarters' location and have different cultures that may make it more difficult to impose corporate standards and procedures and the extraterritorial laws of the U.S. and other jurisdictions, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and other similar laws.
As use of technology-based tools continues to rise worldwide and the nature of work and school evolves demand for many of our products, especially for our traditional paper-based and related products has declined. This trend was accelerated by the COVID-19 pandemic and we expect that demand for these products will continue to decline.
As use of technology-based tools continues to rise worldwide and the nature of hybrid work and school evolves demand for many of our products, especially for our traditional paper-based and related products has declined. This trend was accelerated by the COVID-19 pandemic and we expect that demand for these products will continue to decline.
Overall, adverse changes in economic conditions or sustained periods of economic uncertainty or weakness in one or more of the geographic markets in which we operate, whatever 18 the cause, have negatively affected our historical sales and profitability, and in the future could have an adverse effect on our sales, business, results of operations, cash flow and financial condition.
Overall, adverse changes in economic conditions or sustained periods of economic uncertainty or weakness in one or more of the geographic markets in which we operate, whatever the cause, have negatively affected our historical sales and profitability, and in the future could have an adverse effect on our sales, business, results of operations, cash flow and financial condition.
Additionally, there can be no assurance that the actions we and our outsourced providers take will prevent a breach of, or attack on the information technology systems which support the day-to-day operation of our business or house our confidential, proprietary and personally identifiable information.
Additionally, there can be no assurance that the actions we and our outsourced providers take will prevent a breach of, or attack on the information technology systems that support the day-to-day operation of our business or house our confidential, proprietary and personally identifiable information.
We have a history of paying quarterly dividends and engaging in stock repurchase programs; however, any determination to continue to pay cash dividends at recent rates or at all, or resume repurchasing our shares in the market, is contingent on a variety of factors, including our financial condition, results of operations, business requirements, and our board of directors' continuing determination that such dividends or share repurchases are in the best interests of our stockholders and in compliance with all applicable laws and agreements.
We have a history of paying quarterly dividends and engaging in stock repurchase programs; however, any determination to continue to pay cash dividends at recent rates or at all, or repurchase our shares in the market, is contingent on a variety of factors, including our financial condition, results of operations, business requirements, and our board of directors' continuing determination that such dividends or share repurchases are in the best interests of our stockholders and in compliance with all applicable laws and agreements.
Additionally, we rely on our suppliers to ensure that our products meet our design and product content specifications, and all applicable laws, including product safety, security, labor, sustainability and environmental laws.
Additionally, we rely on our suppliers to ensure that our products meet our design and product content specifications, and all applicable laws, including product safety, product compliance, security, labor, sustainability and environmental laws.
During periods of economic uncertainty or weakness, we have experienced and may continue to experience lower demand from our reseller customers who often reduce inventories, both to reduce their own working capital investments and because demand for our products decreases as consumers switch to private label and other branded and/or generic products that compete on price and quality, or forgo purchases altogether.
During periods of economic uncertainty or weakness, we have and continue to experience lower demand from our reseller customers who often reduce inventories, both to reduce their own working capital investments and because demand for our products decreases as consumers switch to private label and other branded and/or generic products that compete on price and quality, or forgo purchases altogether.
Continued declines in the use of certain of our products have and will continue to adversely affect our business. A number of our products and brands consist of paper-based and related products.
Continued declines in the use of certain of our products have and will continue to materially adversely affect our business. A number of our products and brands consist of paper-based and related products.
The program incorporates initiatives to simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging of the Company's sourcing capabilities. We may not be able to successfully execute these initiatives in a timely manner or realize the anticipated cost savings and operational synergies.
The program incorporates initiatives to simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging of the Company's sourcing capabilities. We may not be able to successfully execute these initiatives in a timely manner or realize the anticipated cost savings and operational efficiencies.
Outsourcing of information technology services creates risks to our business, which are similar to those created by our product production outsourcing. 12 In addition, we outsource certain administrative functions, such as payroll processing and benefit plan administration, to third-party service providers and may outsource other functions in the future to achieve cost savings and efficiencies.
Outsourcing of information technology services creates risks to our business, which are similar to those created by our product production outsourcing. In addition, we outsource certain administrative and financial functions, such as payroll processing and benefit plan administration to third-party service providers and may outsource other functions in the future to achieve cost savings and efficiencies.
Such a disruption could occur as a result of any number of events, including but not limited to, a major equipment failure, labor stoppages, transportation failures affecting the supply and shipment of materials and finished goods, unavailability of raw materials, severe weather conditions, natural disasters, civil and geopolitical unrest, fire, explosions, public health emergencies, including the occurrence of pandemics such as COVID-19, war or terrorism, and disruptions in utility and other services.
Such a disruption could occur as a result of any number of events, including but not limited to, a major equipment failure, labor stoppages, transportation failures affecting the supply and shipment of materials and finished goods, unavailability of raw materials, severe weather conditions, natural disasters, civil and geopolitical unrest, fire, explosions, public health emergencies, pandemics, war or terrorism, and disruptions in utility and other services.
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 Brazil Tax Assessments described below) the ultimate resolution of currently outstanding matters will not have a material adverse effect on our financial condition, results of operations or cash flow.
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 Brazil Tax Assessments described below) the ultimate resolution of currently outstanding litigation and claims will not have a material adverse effect on our financial condition, results of operations or cash flow.
We have also seen customers and consumers purchase lower priced products which generate lower margins due to our price increases and we expect this trend may continue. Outsourcing the development and production of certain of our products, our information technology systems and other administrative functions could materially adversely affect our business, results of operations and financial condition.
We have also seen customers and consumers purchase lower priced products which generate lower margins due to our price increases and we expect this trend to continue. 12 Outsourcing the development and production of certain of our products, our information technology systems and other administrative and finance functions could materially adversely affect our business, results of operations and financial condition.
Economic and Strategic Risks A limited number of large customers account for a significant percentage of our net sales, and the loss of, or a substantial reduction in sales to, or gross profit from, or significant decline in the financial condition of one or more of these customers has and may continue to adversely impact our business and results of operations.
Economic and Strategic Risks A limited number of large customers account for a significant percentage of our net sales, and the loss of, or a substantial reduction in sales to, or gross profit from, or significant decline in the financial condition of one or more of these customers has and is likely to continue to adversely impact our business and results of operations.
Any of these impacts could result in a disruption to our information technology infrastructure, interruption of our business operations, violation of applicable privacy and other laws or standards, significant legal and financial exposure beyond the scope or limits of any insurance coverage (including legal claims and proceedings and regulatory enforcement actions and penalties), increased operating costs associated with remediation activities, and a loss of confidence in our security measures, all of which could harm our reputation with our customers, end-users, employees and other stakeholders and materially adversely affect our business and results of operations.
Any of these impacts could result in a disruption to our information technology infrastructure, interruption of our business operations, violation of applicable privacy and other laws or standards, a deficiency in our internal control over financial reporting, significant legal and financial exposure beyond the scope or limits of any insurance coverage (including legal claims and proceedings and regulatory enforcement actions and penalties), increased operating costs associated with remediation activities and a loss of confidence in our security measures, all of which could harm our reputation with our customers, end-users, employees and other stakeholders and materially adversely affect our business and results of operations.
The loss of, or a significant reduction in sales to, or gross profit from, one or more of our top customers, or significant adverse changes to the terms on which we sell our products to one or more of our top customers, has and may continue to have a material adverse effect on our business, results of operations and financial condition.
The loss of, or a significant reduction in sales to, or gross profit from, one or more of our top customers, or significant adverse changes to the terms on which we sell our products to one or more of our top customers, has and is likely to continue to have a material adverse effect on our business, results of operations and financial condition.
The markets can be, and recently have been, very volatile, and therefore the Company’s estimate of future contribution requirements and/or non-cash expenses can change dramatically in relatively short periods of time. Similarly, changes in interest rates and legislation enacted by governmental authorities can impact the timing and amounts of contribution requirements and/or non-cash expenses.
The markets can be very volatile, and therefore the Company’s estimate of future contribution requirements and/or non-cash expenses can change dramatically in relatively short periods of time. Similarly, changes in interest rates and legislation enacted by governmental authorities can impact the timing and amounts of contribution requirements and/or non-cash expenses.
Additionally, government actions such as currency devaluations, foreign exchange controls, imposition of tariffs or other trade restrictions, and price or profit controls can further negatively impact, and increase the volatility of, foreign currency exchange rates. 7 The fluctuations in the foreign currency rates relative to the U.S. dollar can cause translation, transaction, and other gains and losses in our non-U.S.-based businesses, which impact our sales, profitability and cash flow.
Additionally, government actions such as currency devaluations, foreign exchange controls, and imposition of tariffs or other trade restrictions, among other things, can further negatively impact, and increase the volatility of, foreign currency exchange rates. 7 The fluctuations in the foreign currency rates relative to the U.S. dollar cause translation, transaction, and other gains and losses in our non-U.S.-based businesses, which impact our sales, profitability and cash flow.
Failure to implement these initiatives and realize the anticipated cost savings and operational synergies as planned could adversely affect our future results of operations and cash flow.
Failure to implement these initiatives and realize the anticipated cost savings and operational efficiencies as planned could adversely affect our future results of operations and cash flow.
Pension and Other Retiree Benefits" to the consolidated financial statements contained in Part II, Item 8. of this report. Impairment of goodwill and indefinite-lived intangible assets have had, and could in the future have, a material adverse effect on our financial results. We have approximately $1.4 billion of goodwill and other specifically identifiable intangible assets as of December 31, 2023.
Pension and Other Retiree Benefits" to the consolidated financial statements contained in Part II, Item 8. of this report. Impairment of goodwill and indefinite-lived intangible assets have had, and could in the future have, a material adverse effect on our financial results. We have approximately $1.2 billion of goodwill and other specifically identifiable intangible assets as of December 31, 2024.
The price and availability of raw materials, transportation, labor, and other necessary supplies and services used in our business, as well as the cost of finished goods, can be volatile due to numerous factors beyond our control, including general economic and competitive conditions, inflation, supply chain disruptions, supplier business strategies, and political instability, war and other geopolitical tensions.
The price and availability of raw materials, transportation, labor, and other necessary supplies and services used in our business, as well as the cost of finished goods, can be volatile due to numerous factors beyond our control, including general economic and competitive conditions, inflation, tariffs and changes in foreign trade policies, supply chain disruptions, supplier business strategies, and political instability, war and other geopolitical tensions.
Quantitative and Qualitative Disclosures About Market Risk - Foreign Exchange Risk Management" of this report. Challenges related to the highly competitive business environment in which we operate has, and may continue to have, a material adverse effect on our business, results of operations and financial condition.
Quantitative and Qualitative Disclosures About Market Risk - Foreign Exchange Risk Management " of this report. Challenges related to the highly competitive business environment in which we operate have, and are likely to continue to have, a material adverse effect on our business, results of operations and financial condition.
In addition, as we continue to expand our business into new markets and into new product categories, we increase the number of legal and self-regulatory requirements with which we are required to comply, which increases the complexity and costs of compliance, as well as the risks of noncompliance.
In addition, when we expand our business into new markets and into new product categories, we increase the number of legal and self-regulatory requirements with which we are required to comply, which increases the complexity and costs of compliance, as well as the risks of non-compliance.
Although we have implemented service level agreements and have established monitoring controls, if our third-party service providers fail to perform their obligations in a timely manner or at satisfactory levels, our business could suffer.
Although we have implemented service level agreements and require our third-party providers to validate their internal controls, if applicable, and have established monitoring controls, if our third-party service providers fail to perform their obligations in a timely manner or at satisfactory levels, our business could suffer.
Emerging markets generally involve more financial, operational, regulatory and compliance risks than more mature markets. As we expand and grow in these markets, we increase our exposure to these risks.
Emerging markets, such as Brazil and Mexico, generally involve more financial, operational, regulatory and compliance risks than more mature markets. As we expand and grow in these markets, we increase our exposure to these risks.
We source approximately 60 percent of our products from lower cost countries, primarily in Asia using U.S. dollars. This creates transactional exposure in our foreign markets. The strengthening of the U.S. dollar against local foreign currencies increases our cost of goods and reduces our margins on products sold in local currency.
We source a majority of our products from lower cost countries, primarily in Asia using U.S. dollars. This creates transactional exposure in our foreign markets. The strengthening of the U.S. dollar against local foreign currencies increases our cost of goods and reduces our margins on products sold in local currency.
Changes in government regulations, as well as the significant unfunded liabilities, including the unfunded liabilities of the U.S. multi-employer pension plan in which we are a participant, could also affect the Company’s pension plan expenses and funding requirements. As of December 31, 2023, the Company had $162.1 million recorded as pension liabilities in its Consolidated Balance Sheet.
Changes in government regulations, as well as the significant unfunded liabilities, including the unfunded liabilities of the U.S. multi-employer pension plan in which we are a participant, could also affect the Company’s pension plan expenses and funding requirements. As of December 31, 2024, the Company had $121.2 million recorded as pension liabilities in its Consolidated Balance Sheet.
Security breaches could compromise our confidential and proprietary information, as well as any personally identifiable information we hold, and expose us to operational and legal risks that could cause our business and reputation to suffer and materially adversely affect our results of operations and financial condition.
Security breaches could compromise our confidential and proprietary information, as well as any personally identifiable information for which we are responsible and expose us to operational and legal risks that could cause our business and reputation to suffer and materially adversely affect our results of operations and financial condition.
Overall, adverse economic conditions and sustained periods of economic uncertainty or weakness in one or more of the geographic markets in which we operate, whatever the cause, have negatively affected, and we expect will continue to negatively affect, our sales and profitability, results of operations, cash flow and financial condition.
Overall, adverse economic conditions, including high inflation, varying interest rates, and sustained periods of economic uncertainty or weakness in one or more of the geographic markets in which we operate, whatever the cause, have negatively affected, and we expect will continue to negatively affect, our sales and profitability, results of operations, cash flow and financial condition.
We also expect our suppliers to conform to our and our customers’ and licensors' codes of conduct and expectations with respect to product safety, product quality, social responsibility and environmental sustainability, and be responsive to our audits.
We also expect our suppliers to conform to our and our customers’ and licensors' codes of conduct and expectations with respect to product safety, product quality, social responsibility and environmental sustainability, and be responsive to our audits and requests for information needed to comply with laws and our customers' expectations.
If we are unable to successfully complete these tasks and accurately report our financial results in a timely manner and establish internal control over financial reporting and disclosure controls and procedures that are effective, our business, results of operations and financial condition, investor, supplier and customer confidence in our reported financial information, the market perception of our Company and/or the trading price of our common stock could be materially adversely affected.
If we are unable to successfully complete these tasks and accurately report our financial results in a timely manner and establish internal control over financial reporting and disclosure controls and procedures that are effective, our business, results of operations and financial condition, investor, supplier and customer confidence in our reported financial information, market perception of our Company and/or the trading price of our common stock could be materially adversely affected. 11 Operational Risks Failure to successfully implement our restructuring and cost savings initiatives could adversely affect our future results of operations and cash flow.
The present value of our withdrawal liability payments could be significant and 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. See also "Note 5.
Additionally, if we were to withdraw from the plan, the present value of our withdrawal liability payments could be significant and 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. See also "Note 5.
Sales of our products have been, and we expect they will continue to be, materially and adversely affected by general economic and business conditions globally and in the countries in which we operate, including high inflation, fear of recession and overall economic uncertainty or weakness.
Sales of our products have been, and we expect they will continue to be, materially and adversely affected by general economic and business conditions globally and in the countries in which we operate.
We have seen, and expect to continue to see, increased competition from private label brands, especially in periods of economic uncertainty and weakness when customers and consumers turn to alternative or lower cost products.
We have seen, and expect to continue to see, increased competition from private label brands as well as increased price competition from branded competitors, especially in periods of economic uncertainty and weakness when customers and consumers turn to alternative or lower cost products and overall demand for our products is lower.
Despite these efforts, there can be no assurance that we will successfully identify an incident of intrusion, tampering or theft in a timely manner or at all, and in advance of it impacting the Company, and any such impact could be material.
Despite these efforts, there can be no assurance that we will successfully identify an incident of intrusion, tampering or theft in a timely manner or at all, and in advance of it impacting the Company, and any such impact could be material. Further, our costs to maintain and upgrade our security systems could increase significantly as cybersecurity threats increase.
The Company has foreign currency translation and transaction exposure that has, and is likely to continue to, materially affect the Company’s sales, results of operations, financial condition and liquidity. Approximately 57 percent of our net sales for the year ended December 31, 2023, were transacted in a currency other than the U.S. dollar.
The Company has foreign currency translation and transaction exposure that has, and is likely to continue to, materially affect the Company’s sales, results of operations, financial condition and liquidity. A majority of our net sales are transacted in a currency other than the U.S. dollar.
In the event a significant cybersecurity event is detected, we maintain disclosure controls and procedures that are designed to enable us to promptly analyze the impact on our business, respond expediently, appropriately and effectively and repair any damage caused by such incident, as well as consider whether such incident should be disclosed publicly.
Contractual provisions with third parties, including cloud service providers, may limit our ability to recover these losses. 14 In the event a significant cybersecurity event is detected, we maintain disclosure controls and procedures that are designed to enable us to promptly analyze the impact on our business, respond expediently, appropriately and effectively and repair any damage caused by such incident, as well as consider whether such incident should be disclosed publicly.
Any significant increase in our costs to comply with applicable legal and self-regulatory requirements, or any liability arising from noncompliance, could have a material adverse effect on our business, results of operations, and financial condition. 17 Additionally, our future results of operations could be adversely impacted by changes in these laws.
Any significant increase in our costs to comply with applicable legal and self-regulatory requirements, or any liability arising from non-compliance, could have a material adverse effect on our business, results of operations, and financial condition.
We have from time to time experienced cybersecurity breaches, such as "phishing" attacks, business email compromises, employee or insider error, brute force attacks, unauthorized parties gaining access to our information technology systems, and similar incidents.
Despite our efforts to secure and monitor our information technology systems, the possibility of intrusion, tampering, and theft cannot be eliminated entirely. We have from time to time experienced cybersecurity breaches, such as "phishing" attacks, business email compromises, employee or insider error, brute force attacks, unauthorized parties gaining access to our information technology systems, and similar incidents.
During periods of inflation and rising costs, we manage this volatility through a variety of actions, including targeted advance or periodic purchases, future delivery purchases, long-term contracts, sales price increases and the use of certain derivative instruments.
During periods of inflation and rising costs, we manage this volatility through a variety of actions, including targeted advance or periodic purchases, future delivery purchases, long-term contracts, sales price increases and the use of certain derivative instruments. We have implemented, and may implement in the future, additional price increases if necessary to offset future inflationary and supply-chain related cost increases.
Additionally, part of our strategy is to develop new, exciting and differentiated products in our technology accessories and learning and creative categories which we believe offer significant long-term growth opportunities. There can be no assurance that we will make the right investment choice or be successful in developing innovative products in these and other categories.
Additionally, part of our strategy is to develop new, exciting and differentiated products which we believe help us to sustain category leading positions and drive significant long-term growth. There can be no assurance that we will make the right investment choices or be successful in developing innovative products.
If we are not able to effectively manage the integration process, or if any significant business activities are interrupted as a result thereof, our business and financial results could suffer. 14 The integration of any acquisition will involve changes to or implementation of critical information technology systems, modifications to our internal control systems, processes and accounting and financial systems, and the establishment of disclosure controls and procedures and internal control over financial reporting necessary to meet our obligations as a public company.
The integration of any acquisition will involve changes to or implementation of critical information technology systems, modifications to our internal control systems, processes and accounting and financial systems, and the establishment of disclosure controls and procedures and internal control over financial reporting necessary to meet our obligations as a public company.
These events as well as further supply chain disruptions could adversely affect our operations, sales, profitability and cash flow. 11 Our operating results have been, and continue to be, adversely affected by inflation and changes in the cost or availability of raw materials, transportation, labor and other necessary supplies and services, including the cost of finished goods.
Our operating results have been, and continue to be, adversely affected by inflation and changes in the cost or availability of raw materials, transportation, labor and other necessary supplies and services, including the cost of finished goods.
We manufacture approximately 40 percent of the products we sell where we operate and purchase the remaining 60 percent from suppliers in lower cost countries, primarily in Asia. We also purchase component parts and raw materials for our manufactured products from third parties many of which are also imported from Asia.
We purchase a majority of the products we sell from suppliers in lower cost countries, primarily in Asia, while manufacturing some products in our own facilities. We also purchase component parts and raw materials for our manufactured products from third parties many of which are also imported from Asia.
Political instability, civil unrest, war or terrorism, public health crises, including the occurrence of pandemics such as COVID-19, or other public health emergencies, and severe weather or natural disasters may also affect consumer and business confidence and the health of the economies in the countries in which we operate.
Any such future disruptions could materially and adversely impact our business, sales, results of operations, and financial condition. Political instability, civil unrest, war or terrorism, public health crises, pandemics, or other public health emergencies, and severe weather or natural disasters may also affect consumer and business confidence and the health of the economies in the countries in which we operate.
Additionally, our ability to expand our gaming accessories business into certain new geographies requires that we obtain additional licensing rights from the gaming console manufacturers and video game publishers. There can be no assurance that we will be able to obtain these additional licensing rights.
Our gaming accessories business licenses technology, trademarks and other intellectual property from the three major gaming console manufacturers and numerous video game publishers. Additionally, our ability to expand our gaming accessories business into certain new geographies requires that we obtain additional licensing rights from the gaming console manufacturers and video game publishers.
Their ability to manufacture products locally at a lower cost or source them from other countries with lower production costs can give them a competitive advantage in terms of price under certain circumstances.
Their ability to manufacture products locally at a lower cost or source them from other countries with lower production costs can give them a competitive advantage in terms of price under certain circumstances. Our business has been, and we expect it will continue to be, affected by actions taken by our customers and competitors to compete more effectively.
However, there can be no assurance that we will successfully identify such an incident in a timely manner or at all, and in advance of it impacting the Company, and any such impact could be material. Merger and Acquisition Risks Our strategy is partially based on growth through acquisitions.
However, there can be no assurance that we will successfully identify such an incident in a timely manner or at all, and in advance of it impacting the Company, and any such impact could be material. Liquidity, Capital Resources and Capital Allocation Risks Our existing borrowing arrangements limit our ability to engage in certain activities.
Further, our failure to properly maintain and successfully upgrade or replace any of these systems, especially our enterprise resource planning systems, could disrupt our business and our ability to service our customers or negatively impact our ability to report our financial results in a timely and accurate manner.
Additionally, if one or more of our information technology suppliers is unable or unwilling to continue to provide services at acceptable cost due to financial difficulties, insolvency or otherwise, our business could be adversely affected. 13 Further, our failure to properly maintain and successfully upgrade or replace any of these systems, especially our enterprise resource planning systems, could disrupt our business and our ability to service our customers or negatively impact our ability to report our financial results in a timely and accurate manner.
The decline in the overall demand for certain of the products we sell has adversely impacted our business and results of operations, and we expect it will continue to do so. Our school and technology accessories businesses are seasonal, which has impacted, and may in the future impact, our ability to accurately forecast our operating results and working capital requirements.
The decline in the overall demand for certain of the products we sell has materially adversely impacted our business and results of operations, and we expect it will continue to do so.
Litigation or regulatory enforcement actions and the associated costs and potential for monetary judgments and penalties could have an adverse effect on our results of operations and financial condition. Additionally, product liability claims or regulatory actions, regardless of merit, could result in negative publicity that could harm our reputation in the marketplace or the value of our brands.
Litigation or regulatory enforcement actions related to our products, and the associated costs and potential for monetary judgments and penalties could have an adverse effect on our results of operations and financial condition.
During the fourth quarter of 2023, we recorded a $89.5 million non-cash goodwill impairment charge related to our North America reporting unit. This follows a $98.7 million non-cash goodwill impairment charge related to our North America reporting unit recorded during the third quarter of 2022.
During the second quarter of 2024, we recorded a $165.2 million non-cash impairment charge related to goodwill and an indefinite-lived trade name within our Americas reporting unit. This follows a $89.5 million non-cash goodwill impairment charge related to our Americas reporting unit recorded during the fourth quarter of 2023.
Volatility in our stock price could adversely affect our business and financing opportunities, which could hurt our operating results and reduce the percentage ownership of our existing stockholders.
Volatility in our stock price could adversely affect our business and financing opportunities, which could hurt our operating results and negatively impact our cash flow and financial condition.
In addition, since our operations are global, we can face challenges in effectively gaining a tax benefit for costs incurred in one country that benefit our operations in other countries. 16 Changes in tax legislation or tax rates may occur in one or more jurisdictions in which we operate that may materially impact the cost of operating our business.
Changes in tax legislation or tax rates may occur in one or more jurisdictions in which we operate that may materially impact the cost of operating our business.
Risk Factors ," as well as the following: • quarterly fluctuations in our operating results compared with market expectations; • investors' perceptions; • changes in financial estimates by us or securities analysts and recommendations by securities analysts; and • the composition of our stockholders, particularly the presence of "short sellers" or high frequency traders trading in our stock.
Our stock price may be significantly affected by factors, including those described elsewhere in this "Part I, Item 1A. Risk Factors," as well as the following: • quarterly fluctuations in our operating results compared with market expectations; • investors' perceptions; and • changes in financial estimates by us or securities analysts and recommendations by securities analysts.
Additionally, we rely on international freight carriers and domestic trucking and rail lanes to import and distribute products to our customers throughout the world. We have experienced disruptions in our global supply chain due to insufficient freight carrier capacity, port delays and closures, the cost and availability of international and domestic freight carriers, labor shortages and geopolitical unrest.
We have experienced, and could experience, disruptions in our global supply chain due to insufficient freight carrier capacity, port delays and closures, the cost and availability of international and domestic freight carriers, labor shortages and geopolitical unrest. These events as well as further supply chain disruptions could adversely affect our operations, sales, profitability and cash flow.
In addition, our customers often change their order patterns for the peak season, making forecasting of production schedules and inventory purchases more challenging. These fluctuations have impacted our ability to accurately forecast our inventory and working capital needs as well as our operating results.
Business - Seasonality " of this report. As a result of this seasonality, our inventory and working capital needs fluctuate significantly throughout the year. In addition, our customers often change their order patterns for peak seasons, making forecasting of production schedules and inventory purchases more challenging.
Historically, each of our segments has demand that varies based on certain seasonal drivers related to the product categories it sells as discussed in "Part I. Item 1. Business - Seasonality " of this report. As a result of this seasonality, our inventory and working capital needs fluctuate significantly throughout the year.
Our school and technology accessories businesses are seasonal, which has impacted, and may in the future impact, our ability to accurately forecast our operating results and working capital requirements. Historically, each of our segments has demand that varies based on certain seasonal drivers related to the product categories it sells as discussed in "Part I, Item 1.
Our success depends on our ability to attract and retain qualified personnel at all levels and maintain a diverse, global workforce. The market for talent is currently extremely competitive and our current pay and benefits packages may not be sufficiently attractive.
Our success depends on our ability to attract and retain qualified personnel at all levels and maintain a diverse, global workforce. Our ability to provide competitive total rewards packages and an attractive culture remain key indicators for success in attracting and retaining talent.
Our success depends on our ability to develop and market innovative products that meet consumer and other end-user demands, including price expectations, and to expand into new and adjacent product categories that we believe will have higher long-term growth rates.
Such actions have, and in the future may, result in lost sales and lower margins, and adversely affect our business, results of operations, and financial condition. Our success depends on our ability to develop and market innovative products that meet consumer and other end-user demands, including price expectations, and to expand into new and adjacent product categories.
Growth in emerging geographies may be difficult to achieve and exposes us to financial, operational, regulatory, compliance, and other risks not present, or not as prevalent, in more established markets. The profitable growth of our business in emerging markets is a key element to our long-term growth strategy.
If we are unable to successfully increase sales and margins by expanding our product assortment, our business, results of operations and financial condition could be adversely affected. 8 Growth in emerging geographies may be difficult to achieve and exposes us to financial, operational, regulatory, compliance, and other risks not present, or not as prevalent, in more established markets.
Operational Risks Failure to successfully implement our multi-year restructuring and cost savings program could adversely affect our future results of operations and cash flow. In January 2024, the Company announced a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60 million when fully implemented in 2026.
In January 2024, the Company announced a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60 million when fully realized. In 2025, the Company increased its savings target by $40 million, and now anticipates the multi-year program to yield approximately $100 million in annualized pre-tax cost savings by the end of 2026.
Our top ten customers accounted for 41.6 percent of our net sales for the year ended December 31, 2023.
Our top ten customers accounted for a significant portion of our net sales.
Our gaming accessories business licenses trademarks and other intellectual property from the three major gaming console manufacturers and numerous video game publishers. The loss or non-renewal of one or more of these licenses would, in all likelihood, materially and adversely impact our sales, results of operations and financial condition.
There can be no assurance that we will be able to obtain these additional licensing rights. The loss, inability to obtain, or non-renewal of one or more of these licenses would, in all likelihood, materially and adversely impact our sales, results of operations and financial condition. Our strategy is partially based on growth through acquisitions.
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In addition, as economic and competitive pressures cause our customers to close or reduce the size of their retail locations, and diversify their product offerings, the available retail space devoted to our products is further limited.
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These fluctuations have impacted our ability to accurately forecast our inventory and working capital needs as well as our operating results.
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Our business has been, and we expect it will continue to be, affected by actions taken by our customers and competitors to compete more effectively. Such actions have, and in the future may, result in lost sales and lower margins, and adversely affect our business, results of operations, and financial condition.
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If we are not able to effectively manage the integration process, or if any significant business activities are interrupted as a result thereof, our business and financial results could suffer.
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If we are unable to successfully increase sales and margins by expanding our product assortment, our business, results of operations and financial condition could be adversely affected. 8 Our business and results of operations have been and may continue to be adversely affected by the long-term impacts of the COVID-19 global pandemic.
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Additionally, we rely on international freight carriers and domestic trucking and rail lanes to import and distribute products to our customers throughout the world.
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The long-term impacts of the COVID-19 pandemic, including the prevalence of hybrid work, and changes in the behavior of customers, consumers and end-users, has had, and will continue to have, a negative effect on our business and results of operations.
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Additionally, product liability claims or regulatory actions, regardless of merit, could result in negative publicity that could harm our reputation in the marketplace or the value of our brands.
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During 2023, office occupancy rates stabilized at levels well below pre-pandemic levels and the rate of decline in the demand for our traditional paper-based and related products continues to accelerate. The extent of the impact of these trends on our future business and financial results depends on future developments that are uncertain.
Added
Moving funds between countries can also produce adverse tax consequences. In addition, since our operations are global, we can face challenges in effectively gaining a tax benefit for costs incurred in one country that benefit our operations 16 in other countries.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe plan specifies the process for identifying, classifying, documenting and responding to cybersecurity incidents, including escalation protocols to ensure the involvement of our executive leadership, including our CEO, CFO, CIO and General Counsel so that decisions regarding the public disclosure and reporting of any incident can be made by executive management in a timely manner. 19 Third-Party Risk Management We use a risk-based approach to identifying and overseeing cybersecurity risks presented by third parties, including vendors and service providers, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems.
Biggest changeThe plan specifies the process for identifying, classifying, documenting and responding to cybersecurity incidents, including escalation protocols to ensure the involvement of our executive leadership, including our CEO, CFO, CIO and General Counsel so that decisions regarding the public disclosure and reporting of any incident can be made by executive management in a timely manner.
Annually, they also present information regarding management's annual cybersecurity risk and maturity assessments, including changes to our cybersecurity roadmap as a result of these assessments. This annual briefing is also posted to the full Board, which also receives quarterly updates through the Audit Committee.
They also present information to the Audit Committee regarding management's cybersecurity risk and maturity assessments, including changes to our cybersecurity roadmap as a result of these assessments. This briefing is also posted to the full Board, which also receives quarterly updates through the Audit Committee.
For further details regarding the cybersecurity risks and uncertainties we face see Item 1A. "Risk Factors-Technology and Cybersecurity Risks" of this report. 21
For further details regarding the cybersecurity risks and uncertainties we face see "Part I, Item 1A. Risk Factors -Technology and Cybersecurity Risks " of this report. 21
We evaluate the effectiveness of our information technology-related internal controls annually. Education and Awareness The Company also regularly conducts mandatory cybersecurity training for its employees and all new hires are required to take cybersecurity training when they receive their Company computer. Failure to complete the training in a timely fashion results in their system access being suspended until completion.
Education and Awareness The Company regularly conducts mandatory cybersecurity training for its employees, and all new hires are required to take cybersecurity training when they receive their Company computer. Failure to complete the training in a timely fashion results in their system access being suspended until completion.
Cybersecurity Roadmap and Risk Assessment We have a cybersecurity roadmap, which was first implemented in 2020, that provides a framework for prioritizing and managing our ongoing cybersecurity program.
Cybersecurity Roadmap and Risk Assessment We have a cybersecurity roadmap that provides a framework for prioritizing and managing our ongoing cybersecurity program.
Our Vice President, Global Cybersecurity also chairs our Cybersecurity Management Committee which consists of senior business and functional leaders, including our Chief Information Officer and General Counsel.
Our Vice President, Global Cybersecurity also chairs our Cybersecurity Management Committee which consists of senior business and functional leaders, including our Chief Information Officer and General Counsel. The Cybersecurity Management Committee is intended to provide cross-functional support for cybersecurity risk management.
The Audit Committee is notified and briefed regularly in the event of a cybersecurity incident, regardless of the ultimate severity of the situation. The Board and executive management participate in cybersecurity training and conduct tabletop exercises on a periodic basis.
In accordance with the Company's policies and incident response plans, based on the severity of the incident, the Audit Committee is notified and briefed. The Board and executive management participate in cybersecurity training and conduct tabletop exercises on a periodic basis.
The Cybersecurity Management Committee is intended to provide cross-functional support for cybersecurity risk management and facilitate the response to any cybersecurity incidents. 20 Cyber Risks, Threats and Incidents As a global company servicing customers in over 100 countries, we experience a variety of cybersecurity events and incidents.
Cyber Risks, Threats and Incidents As a global company servicing customers in over 100 countries, we experience a variety of cybersecurity events and incidents.
Monitoring Testing and Auditing We monitor the evolving cybersecurity landscape that could result in new or increased cybersecurity threats. We also engage in the periodic assessment and testing of our policies, standards, processes and practices. These efforts include audits, vulnerability and penetration testing, table-top exercises, social engineering campaigns and other internal and external assessments.
We also engage in the periodic assessment and testing of our policies, standards, processes and practices. These efforts include audits, vulnerability and penetration testing, tabletop exercises, social engineering campaigns and other internal and external assessments. We evaluate the effectiveness of our information technology-related internal controls annually.
Added
Third-Party Risk Management We use a risk-based approach to identify and oversee cybersecurity risks presented by third parties, including vendors and service providers, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems.
Added
We also obtain assurances from outsourced service providers regarding the sufficiency of their security procedures and, where appropriate, assess the protections employed by these third parties. 20 Monitoring, Testing and Auditing We monitor the evolving cybersecurity landscape that could result in new or increased cybersecurity threats.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table lists our other principal facilities by segment as of December 31, 2023: Location Functional Use Owned/Leased (number of properties) ACCO Brands North America: Burlingame, California Office Leased Booneville, Mississippi Distribution/Manufacturing Owned Sidney, New York (a) Distribution/Manufacturing Owned Kettering, Ohio Office Leased Alexandria, Pennsylvania Distribution/Manufacturing Owned Woodinville, Washington Office Leased Mississauga, Canada Distribution/Manufacturing/Office Leased Hong Kong Office Leased Taipei, Taiwan Office Leased ACCO Brands EMEA: Sint-Niklaas, Belgium Distribution/Manufacturing Leased Shanghai, China Manufacturing Leased Aylesbury, England Office Leased Halesowen, England Distribution Owned Lillyhall, England Manufacturing Leased Saint-Ame, France Distribution Owned Heilbronn, Germany Distribution Owned Stuttgart, Germany Office Leased Uelzen, Germany Manufacturing Owned Gorgonzola, Italy Distribution/Manufacturing Leased Kozienice, Poland Distribution/Manufacturing Owned Warsaw, Poland Office Leased Arcos de Valdevez, Portugal (a) Manufacturing Owned Hestra, Sweden Distribution/Manufacturing/Office Owned ACCO Brands International: Sydney, Australia Distribution/Manufacturing/Office Owned/Leased (2) Bauru, Brazil Distribution/Manufacturing/Office Owned (2) Sao Paulo, Brazil Manufacturing/Office Leased (2) Tokyo, Japan Office Leased Lerma, Mexico Manufacturing/Office Owned Mexico City, Mexico Office Leased Auckland, New Zealand Distribution/Office Leased Singapore Distribution/Office Leased (2) (a) Scheduled to be closed in 2024 We believe that the properties are suitable to the respective businesses and have production capacities adequate to meet the needs of our businesses. 22
Biggest changeThe following table lists our other principal facilities by segment as of December 31, 2024: Location Functional Use Owned/Leased (number of properties) ACCO Brands Americas: Bauru, Brazil Distribution/Manufacturing/Office Owned (2) Sao Paulo, Brazil Manufacturing/Office Leased (2) Burlingame, California Office Leased Lerma, Mexico Manufacturing/Office Owned Mexico City, Mexico Office Owned Booneville, Mississippi Distribution/Manufacturing Owned Kettering, Ohio Office Leased Alexandria, Pennsylvania Distribution/Manufacturing Owned Woodinville, Washington Office Leased Mississauga, Canada Distribution/Office Leased Hong Kong Office Leased Taipei, Taiwan Office Leased ACCO Brands International: Sydney, Australia Distribution/Manufacturing/Office Owned/Leased (2) Sint-Niklaas, Belgium Distribution/Manufacturing Leased Shanghai, China Manufacturing Leased Aylesbury, England Office Leased Halesowen, England Distribution Owned Lillyhall, England Manufacturing Leased Saint-Ame, France Distribution Owned Heilbronn, Germany Distribution Owned Stuttgart, Germany Office Leased Uelzen, Germany Manufacturing Owned Gorgonzola, Italy Distribution/Manufacturing Leased Tokyo, Japan Office Leased Auckland, New Zealand Distribution/Office Leased Kozienice, Poland Distribution/Manufacturing Owned Warsaw, Poland Office Leased Singapore Distribution/Office Leased (2) Hestra, Sweden Distribution/Manufacturing/Office Owned We believe that the properties are suitable to the respective businesses and have production capacities adequate to meet the needs of our businesses. 22
ITEM 2. PROPERTIES We have manufacturing facilities in North America, Europe, Brazil, Mexico and Australia, and maintain distribution centers in the regional markets we service. We lease our corporate and U.S. headquarters in Lake Zurich, Illinois.
ITEM 2. PROPERTIES We have manufacturing facilities in the U.S., Europe, Brazil, Mexico and Australia, and maintain distribution centers in the regional markets we service. We lease our corporate and U.S. headquarters in Lake Zurich, Illinois.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeCumulative Total Return 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 ACCO Brands Corporation $100.00 $138.05 $124.63 $121.83 $82.45 $89.68 Russell 2000 100.00 123.72 146.44 166.50 130.60 150.31 S&P Office Services and Supplies (SuperCap1500) 100.00 119.09 121.92 134.46 101.47 125.28 24 Common Stock Purchases The following table provides information about our purchases of equity securities during the quarter ended December 31, 2023: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1) October 1, 2023 to October 31, 2023 — $ — — $ 105,645,579.0 November 1, 2023 to November 30, 2023 — — — 105,645,579.0 December 1, 2023 to December 31, 2023 — — — 105,645,579.0 Total — $ — — $ 105,645,579.0 (1) On February 14, 2018, the Company announced that its Board of Directors authorized the repurchase of up to $100 million in shares of its common stock.
Biggest changeCumulative Total Return 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 ACCO Brands Corporation $100.00 $94.13 $94.86 $67.09 $77.31 $70.60 Russell 2000 100.00 119.96 137.74 109.59 128.14 142.93 S&P Office Services and Supplies (SuperCap1500) 100.00 104.39 117.00 90.20 113.85 126.82 24 Common Stock Purchases The following table provides information about our purchases of equity securities during the quarter ended December 31, 2024: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1) October 1, 2024 to October 31, 2024 478,836 $ 5.29 478,836 $ 90,645,698 November 1, 2024 to November 30, 2024 — — — 90,645,698 December 1, 2024 to December 31, 2024 — — — 90,645,698 Total 478,836 $ 5.29 478,836 $ 90,645,698 (1) Remaining value of shares available to be repurchased out of a $100 million share repurchase authorization made by the Board of Directors on August 7, 2019.
Dividend information for each quarter for the years ended December 31, 2023, 2022 and 2021 is summarized below: 2023 2022 2021 First quarter $ 0.075 $ 0.075 $ 0.065 Second quarter 0.075 0.075 0.065 Third quarter 0.075 0.075 0.065 Fourth quarter 0.075 0.075 0.075 Total $ 0.300 $ 0.300 $ 0.270 The continued declaration and payment of dividends is at the discretion of the Board of Directors and will be dependent upon, among other things, the Company's financial position, results of operations, cash flows and other factors.
Dividends Dividend information for each quarter for the years ended December 31, 2024, 2023 and 2022 is summarized below: 2024 2023 2022 First quarter $ 0.075 $ 0.075 $ 0.075 Second quarter 0.075 0.075 0.075 Third quarter 0.075 0.075 0.075 Fourth quarter 0.075 0.075 0.075 Total $ 0.300 $ 0.300 $ 0.300 The continued declaration and payment of dividends is at the discretion of the Board of Directors and will be dependent upon, among other things, the Company's financial position, results of operations, cash flows and other factors.
Stock Performance Graph The following graph compares the cumulative total stockholder return on our common stock to that of the S&P Office Services and Supplies (SuperCap1500) Index and the Russell 2000 Index assuming an investment of $100 in each from December 31, 2018 through December 31, 2023.
Stock Performance Graph The following graph compares the cumulative total stockholder return on our common stock to that of the S&P Office Services and Supplies (SuperCap1500) Index and the Russell 2000 Index assuming an investment of $100 in each from December 31, 2019 through December 31, 2024.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Information Our common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "ACCO." As of February 15, 2024 we had approximately 7,610 record holders of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Information Our common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "ACCO." As of February 13, 2025, we had approximately 7,221 record holders of our common stock.
On August 7, 2019, the Company announced that its Board of Directors had authorized the repurchase of up to an additional $100 million in shares of its common stock. During the year ended December 31, 2023, we did not repurchase any of our common stock in the open market.
During the year ended December 31, 2024, we repurchased 2.9 million of our common stock in the open market.
Removed
Dividend Policy In February 2018, the Company's Board of Directors approved the initiation of a dividend program under which the Company intends to pay a regular quarterly cash dividend.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

80 edited+26 added−29 removed29 unchanged
Biggest changeConsolidated Results of Operations for the Years Ended December 31, 2023 and 2022 Year Ended December 31, Amount of Change (in millions, except per share data) 2023 2022 $ %/pts Net sales $ 1,832.8 $ 1,947.6 $ (114.8 ) (5.9 )% Cost of products sold 1,234.5 1,395.3 (160.8 ) (11.5 )% Gross profit 598.3 552.3 46.0 8.3 % Gross profit margin 32.6 % 28.4 % 4.2 pts Selling, general and administrative expenses 393.5 376.7 16.8 4.5 % SG&A% to net sales 21.5 % 19.3 % 2.2 pts Amortization of intangibles 43.4 41.5 1.9 4.6 % Restructuring charges 27.2 9.6 17.6 NM Goodwill impairment 89.5 98.7 (9.2 ) (9.3 )% Change in fair value of contingent consideration — (9.0 ) 9.0 (100.0 )% Operating income 44.7 34.8 9.9 28.4 % Operating income margin 2.4 % 1.8 % 0.6 pts Interest expense 58.6 45.6 13.0 28.5 % Interest income (7.1 ) (8.3 ) 1.2 (14.5 )% Non-operating pension expense (income) 1.8 (4.5 ) 6.3 NM Other expense (income), net 4.5 (12.9 ) 17.4 NM (Loss) income before income tax (13.1 ) 14.9 (28.0 ) NM Income tax expense 8.7 28.1 (19.4 ) (69.0 )% Effective tax rate (66.4 )% 188.6 % NM Net (loss) income (21.8 ) (13.2 ) (8.6 ) 65.2 % Weighted average number of diluted shares outstanding: 95.3 95.3 - — % Diluted loss per share $ (0.23 ) $ (0.14 ) $ (0.09 ) 64.3 % Comparable sales (Non-GAAP) (1) $ 1,821.5 $ 1,947.6 $ (126.1 ) (6.5 )% Net Sales For the year ended December 31, 2023, net sales decreased $114.8 million, or 5.9 percent.
Biggest changeConsolidated Results of Operations for the Years Ended December 31, 2024 and 2023 Year Ended December 31, Amount of Change (in millions, except per share data) 2024 2023 $ %/pts Net sales $1,666.2 $1,832.8 $(166.6) (9.1)% Cost of products sold 1,110.8 1,234.5 (123.7) (10.0)% Gross profit 555.4 598.3 (42.9) (7.2)% Gross profit margin 33.3 % 32.6 % 0.7 pts Selling, general and administrative expenses 365.7 393.5 (27.8) (7.1)% SG&A% to net sales 21.9 % 21.5 % 0.4 pts Amortization of intangibles 44.7 43.4 1.3 3.0 % Restructuring 16.8 27.2 (10.4) (38.2)% Impairment of goodwill and intangible assets 165.2 89.5 75.7 84.6 % Operating (loss) income (37.0) 44.7 (81.7) NM Operating (loss) income margin (2.2)% 2.4 % (4.6) pts Interest expense 52.6 58.6 (6.0) (10.2)% Interest income (7.5) (7.1) (0.4) 5.6 % Non-operating pension expense 6.1 1.8 4.3 NM Other (income) expense, net (0.9) 4.5 (5.4) NM Loss before income tax (87.3) (13.1) (74.2) NM Income tax expense 14.3 8.7 5.6 64.4 % Effective tax rate (16.4)% (66.4)% 50.0 pts Net loss (101.6) (21.8) (79.8) NM Weighted average number of diluted shares outstanding: 95.6 95.3 0.3 0.3 % Diluted loss per share $(1.06) $(0.23) $(0.83) NM Comparable sales (Non-GAAP) (1) $1,685.5 $1,832.8 $(147.3) (8.0)% (1) See reconciliation to GAAP contained in Part II, Item 7.
We recognize Customer Program Costs, primarily as a deduction to gross sales, at the time that the associated revenue is recognized. Customer Program Costs are based on management's best estimates using the most likely amount method and is an amount that is probable of not being reversed.
We recognize Customer Program Costs, primarily as a deduction to gross sales, at the time that the associated revenue is recognized. Customer Program Costs are based on management's best estimates using the most likely amount method and are an amount that is probable of not being reversed.
Tax Cuts and Jobs Act requires companies to pay a one-time Transition Toll Tax, which is payable over eight years. (5) Other long-term liabilities consist of estimated expected employer contributions for 2024, along with estimated future payments for pension and post-retirement plans that are not paid from assets held in a plan trust.
Tax Cuts and Jobs Act requires companies to pay a one-time Transition Toll Tax, which is payable over eight years. (5) Other long-term liabilities consist of estimated expected employer contributions to pension and post-retirement plans for 2024, along with estimated future payments to these plans that are not paid from assets held in a plan trust.
In addition, we recognize revenue for private label products as the product is manufactured (or over time) when a contract has an enforceable right to payment. For consignment arrangements, revenue is not recognized until the products are sold to the end customer. Customer programs and incentives ("Customer Program Costs") are a common practice in our industry.
In addition, we recognize revenue for private label products as the product is manufactured (or over time) when a contract has an enforceable right to payment. For consignment arrangements, revenue is not recognized until the products are sold to the end customer. 34 Customer programs and incentives ("Customer Program Costs") are a common practice in our industry.
The actuarial assumptions used to record our plan obligations could differ materially from actual results due to changing economic and market conditions, higher or lower withdrawal rates or other factors which may impact the amount of retirement-related benefit expense recorded by us in future periods.
The actuarial assumptions used to record our plan obligations could differ materially from actual results due to changing economic and market 36 conditions, higher or lower withdrawal rates or other factors which may impact the amount of retirement-related benefit expense recorded by us in future periods.
Other Covenants and Restrictions The Credit Agreement, as amended, 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.
Other Covenants and Restrictions The 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.
Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and business branded products used in schools, homes and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing.
Each operating segment designs, markets, sources, manufactures and sells recognized consumer, technology and business branded products used in schools, homes and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design and sourcing.
Adequacy of Liquidity Sources Based on our 2024 business plan and current forecasts, we believe that cash flow from operations, our current cash balance and borrowings available under our Revolving Facility will be adequate to support our requirements for working capital, capital expenditures, dividend payments, share repurchases and debt service in both the short and long-term.
Adequacy of Liquidity Sources Based on our 2025 business plan and current forecasts, we believe that cash flow from operations, our current cash balance and borrowings available under our Revolving Facility will be adequate to support our requirements for working capital, capital expenditures, dividend payments, share repurchases and debt service in both the short and long-term.
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. 35 Intangible Assets Intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting.
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. Identifiable Intangible Assets Identifiable intangible assets are comprised primarily of indefinite-lived and amortizable intangible assets acquired and arising from the application of purchase accounting.
(2) For further information on leases, see "Note 4. Leases" to the consolidated financial statements contained in Item 8. of this report. (3) Purchase obligations primarily consist of contracts and non-cancelable purchase orders for raw materials and finished goods. (4) The U.S.
(2) For further information on leases, see "Note 4. Leases" to the consolidated financial statements contained in Part II, Item 8. of this report. (3) Purchase obligations primarily consist of contracts and non-cancelable purchase orders for raw materials and finished goods. (4) The U.S.
For further information, see "Note 11. Income Taxes" to the consolidated financial statements contained in Part II. Item 8. of this report. Critical Accounting Policies Our financial statements are prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP").
For further information, see "Note 11. Income Taxes" to the consolidated financial statements contained in Part II, Item 8. of this report. Critical Accounting Estimates Our financial statements are prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP").
International 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.0 % 5.1 % 2.9 % 4.2 % 4.5 % 1.8 % 4.8 % 3.8 % 2.4 % Rate of compensation increase N/A N/A N/A 2.9 % 3.0 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 were as follows: Pension Post-retirement U.S.
International 2024 2023 2022 2024 2023 2022 2024 2023 2022 Discount rate 5.7 % 5.0 % 5.1 % 4.8 % 4.2 % 4.5 % 5.2 % 4.8 % 3.8 % Rate of compensation increase N/A N/A N/A 3.0 % 2.9 % 3.0 % N/A N/A N/A The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2024, 2023 and 2022 were as follows: Pension Post-retirement U.S.
The Credit Agreement, as amended, also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the Credit Agreement, as amended) that the Company and its subsidiaries may make during the term of the Credit Agreement, as amended.
The Credit Agreement 31 also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the Credit Agreement) that the Company and its subsidiaries may make during the term of the Credit Agreement.
Guarantees and Security Generally, obligations under the Credit Agreement, as amended, 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. 32 For further information, see "Note 3.
Guarantees and Security Generally, obligations under the 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. For further information, see "Note 3.
For a discussion and analysis of the year ended December 31, 2022 compared with the same period in 2021, please refer to " Management’s Discussion and Analysis of Financial Condition and Results of Operations " included in Part II, Item 7. of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2023.
For a discussion and analysis of the year ended December 31, 2023, compared with the same period in 2022, please refer to " Management’s Discussion and Analysis of Financial Condition and Results of Operations " included in Part II, Item 7. of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 23, 2024.
However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future.
However, given the economic environment and other uncertainties that can negatively impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future.
Liquidity and Capital Resources Our primary liquidity needs are to support our working capital requirements, service indebtedness and fund capital expenditures, dividends, repurchase stock, and acquisitions. Our principal sources of liquidity are cash flows from operating activities, cash and cash equivalents held and seasonal borrowings under our $600 million multi-currency revolving credit facility (the "Revolving Facility").
Liquidity and Capital Resources Our primary liquidity needs are to support our working capital requirements, service indebtedness and fund capital expenditures, dividends, stock repurchases and acquisitions. Our principal sources of liquidity are cash flows from operating activities, cash and cash equivalents held and seasonal borrowings under our $467.5 million multi-currency revolving credit facility (the "Revolving Facility").
Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits at December 31, 2023, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $28.0 million of unrecognized tax benefits have been excluded from the contractual obligations 34 table above.
Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits at December 31, 2024, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $20.7 million of unrecognized tax benefits have been excluded from the contractual obligations table above.
If our assumptions regarding future performance are not achieved, we may be required to record additional goodwill impairment charges in future periods. 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.
If our assumptions regarding future performance are not achieved, or if future events occur that adversely affect our enterprise value, we may be required to record additional goodwill impairment charges in future periods. 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.
Income Tax Expense For the year ended December 31, 2023, we recorded income tax expense of $8.7 million on loss before taxes of $13.1 million. This compared with an income tax expense of $28.1 million on income before taxes of $14.9 million for the year ended December 31, 2022.
Income Tax Expense For the year ended December 31, 2024, we recorded income tax expense of $14.3 million on loss before taxes of $87.3 million. This compared with an income tax expense of $8.7 million on loss before taxes of $13.1 million for the year ended December 31, 2023.
We had $66.4 million in cash on hand as of December 31, 2023. Because of the seasonality of our business, all our operating cash flow is generated in the second half of the year, as the cash inflows in the first and second quarters are consumed building working capital and for making our annual performance-based compensation payments, when earned.
We had $74.1 million in cash on hand as of December 31, 2024. Because of the seasonality of our business, generally our operating cash flow is generated in the second half of the year, as the cash inflows in the first and second quarters are consumed building working capital and making our annual performance-based compensation payments when earned.
As of and for the periods ended December 31, 2023 and December 31, 2022, the Company was in compliance with all applicable loan covenants under its senior secured credit facilities and the Senior Unsecured Notes.
As of and for the periods ended December 31, 2024 and December 31, 2023, the Company was in compliance with all applicable loan covenants under the Credit Agreement and the Senior Unsecured Notes.
Pension expense was $2.8 million and pension income was $3.1 million and $5.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. Post-retirement income was $0.3 million for the year ended December 31, 2023, and $0.4 million for each of the years ended December 31, 2022 and 2021.
We recognized pension expense of $7.1 million and $2.8 million for the years ended December 31, 2024, and 2023,respectively and pension income of $3.1 million for the year ended December 31, 2022. Post-retirement income was $0.4 million, $0.3 million, and $0.4 million for the years ended December 31, 2024, 2023, and 2022, respectively.
The increase in pension expense was due to higher discount rates in our pension plans. 37 The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2023, 2022, and 2021 were as follows: Pension Post-retirement U.S.
The increase in pension expense was primarily due to settlement costs and changes in discount rates. The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2024, 2023, and 2022 were as follows: Pension Post-retirement U.S.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements of ACCO Brands Corporation and the accompanying notes contained in Item 8. of this report.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements of ACCO Brands Corporation and the accompanying notes contained in Part II, Item 8. and the relevant risks outlined in Part I, Item 1A.
Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. 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. Amortizable intangible assets are amortized over their useful lives.
Indefinite-lived intangible assets are not amortized but are evaluated at least annually to determine whether the indefinite useful life is appropriate. Our ACCO ® trade name has been assigned an indefinite life as we currently anticipate that this trade name will contribute cash flows to ACCO Brands indefinitely.
Goodwill and Identifiable Intangible Assets" to the consolidated financial statements contained in Part II, Item 8. of this report for more information. Operating Income For the year ended December 31, 2023, operating income increased $9.9 million to $44.7 million compared to $34.8 million in the prior year.
Goodwill and Identifiable Intangible Assets" to the consolidated financial statements contained in Part II, Item 8. of this report for more information. Operating (Loss) Income For the year ended December 31, 2024, we reported an operating loss of $37.0 million compared to income of $44.7 million in the prior year.
The following discussion and analysis are for the year ended December 31, 2023, compared with the same period in 2022 unless otherwise stated.
Risk Factors of this report. The following discussion and analysis are for the year ended December 31, 2024, compared with the same period in 2023 unless otherwise stated.
See "Note 17. Information on Business Segments" to the consolidated financial statements contained in Part II, Item 8. of this report for a reconciliation of total "Segment operating (loss) income" to "(Loss) income before income tax." (2) See reconciliation to GAAP, contained in Part II, Item 7. "Supplemental Non-GAAP Financial Measures" of this report.
See "Part II, Item 8. Note 17. Information on Operating Segments" for a reconciliation of total "Segment operating (loss) income" to "(Loss) income before income tax." (2) See reconciliation to GAAP contained in Part II, Item 7.
See "Note 17. Information on Business Segments" to the consolidated financial statements contained in Part II, Item 8. of this report for a reconciliation of total "Segment (loss) operating income" to "(Loss) income before income tax." (2) See reconciliation to GAAP, contained in Part II, Item 7. "Supplemental Non-GAAP Financial Measures" of this report.
See "Part II, Item 8. Note 17. Information on Operating Segments" for a reconciliation of total "Segment operating (loss) income" to "(Loss) income before income tax." (2) See reconciliation to GAAP contained in Part II, Item 7.
International 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.1 % 2.9 % 3.1 % 4.5 % 1.8 % 1.0 % 5.0 % 2.4 % 2.2 % Expected long-term rate of return 7.5 % 6.5 % 6.8 % 6.9 % 4.0 % 4.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 3.0 % 3.0 % 2.7 % N/A N/A N/A In 2024, we expect pension income of approximately $0.3 million and post-retirement expense of approximately $2.5 million.
International 2024 2023 2022 2024 2023 2022 2024 2023 2022 Discount rate 5.0 % 5.1 % 2.9 % 4.2 % 4.5 % 1.8 % 4.8 % 5.0 % 2.4 % Expected long-term rate of return 8.0 % 7.5 % 6.5 % 6.2 % 6.9 % 4.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 2.9 % 3.0 % 3.0 % N/A N/A N/A In 2025, we expect pension expense of approximately $3.0 million. and post-retirement income $0.2 million of approximately. 37 A 25-basis point decrease (0.25 percent) in our discount rate assumption would lead to a decrease in our pension and post-retirement expense of approximately $0.6 million for 2025.
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).
Adverse foreign exchange reduced gross profit by $6.2 million, or 1.0 percent. 27 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).
The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. 36 We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit.
The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate and other expectations about the anticipated short-term and long-term operating results for each of our reporting units.
Restructuring Charges For the year ended December 31, 2023, restructuring charges were $27.2 million compared with $9.6 million in 2022. The higher restructuring expense in the current year was primarily for severance costs and other costs associated with our continuing footprint rationalization and cost reduction programs.
Restructuring Charges For the year ended December 31, 2024, restructuring charges were $16.8 million compared with $27.2 million in 2023. Restructuring expense in both years primarily relates to severance and other costs associated with our continuing footprint rationalization and cost reduction programs.
As of December 31, 2023, there was $21.6 million in borrowings outstanding under the Revolving Facility ($7.3 million reported in "Current portion of long-term debt" and $14.3 million reported in "Long-term debt, net"), and the amount available for borrowings was $565.7 million (allowing for $12.7 million of letters of credit outstanding on that date).
As of December 31, 2024, there was $126.3 million in borrowings outstanding under the 30 Revolving Facility ($34.4 million reported in "Current portion of long-term debt" and $91.9 million reported in "Long-term debt, net"), and the amount available for borrowings was $329.6 million (allowing for $11.6 million of letters of credit outstanding on that date).
A 25-basis point decrease (0.25 percent) in our discount rate assumption would lead to a decrease in our pension and post-retirement expense of approximately $0.2 million for 2024. A 25-basis point change in our long-term rate of return assumption would lead to an increase or decrease in pension and post-retirement expense of approximately $1.2 million for 2024.
A 25-basis point change in our long-term rate of return assumption would lead to an increase or decrease in pension and post-retirement expense of approximately $1.1 million for 2025. Pension and post-retirement liabilities of $117.2 million as of December 31, 2024, decreased from $157.6 million at December 31, 2023.
We test goodwill for impairment annually, during the second quarter, or any interim period when market or business events indicate there may be a potential adverse impact on goodwill.
We have determined that our reporting units are ACCO Brands Americas and ACCO Brands International. We test goodwill for impairment at least annually, during the second quarter, or any interim period when market or business events indicate there may be a potential adverse impact on goodwill.
The increase was primarily due to the higher gross margin, and a lower non-cash goodwill impairment charge compared to the prior year, partially offset by higher restructuring charges and SG&A expenses, 26 We reported a net loss of $21.8 million, or $(0.23) per share, compared to a net loss of $13.2 million, or $(0.14) per share in the prior year.
The decrease was primarily due to higher non-cash goodwill and intangible asset impairment charges compared to the prior year, partly offset by lower restructuring charges. We reported a net loss of $101.6 million, or $(1.06) per share, compared to a net loss of $21.8 million, or $(0.23) per share in the prior year.
During the year ended December 31, 2023, the Company recorded $27.2 million in restructuring expenses: $16.7 million of restructuring expense for our North America segment; $8.9 million for our EMEA segment; $1.0 million for our International segment; and $0.6 million for Corporate. Restructuring charges in 2023 were primarily for severance costs related to cost reduction initiatives.
During the year ended December 31, 2024, the Company recorded $16.8 million in restructuring expenses: $6.5 million of restructuring expense for our Americas segment; $6.9 million for our International segment; and $3.4 million for Corporate. Restructuring charges in 2024 were primarily for severance costs related to cost reduction initiatives. For further information, see "Note 10.
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. Recently Adopted Accounting Standards For information on recently adopted accounting pronouncements, see "Note 2. Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards" to the consolidated financial statements contained in Part II.
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. Recently Adopted Accounting Standards For information on recently adopted accounting pronouncements, see "Note 2.
ACCO Brands EMEA Year Ended December 31, Amount of Change (in millions) 2023 2022 $ %/pts Net sales $ 547.2 $ 580.3 $ (33.1 ) (5.7 )% Segment operating income⁽¹⁾ 38.7 21.7 17.0 78.3 % Segment operating income margin 7.1 % 3.7 % 3.4 pts Comparable sales (Non-GAAP)⁽²⁾ $ 541.7 $ 580.3 $ (38.6 ) (6.7 )% (1) Segment operating income for EMEA excludes corporate costs.
ACCO Brands International Year Ended December 31, Amount of Change (in millions) 2024 2023 $ %/pts Net sales $ 666.3 $ 697.1 $ (30.8 ) (4.4 )% Segment operating income⁽¹⁾ 54.1 49.6 4.5 9.1 % Segment operating income margin 8.1 % 7.1 % 1.0 pts Comparable sales (Non-GAAP)⁽²⁾ $ 668.9 $ 697.1 $ (28.2 ) (4.0 )% (1) Segment operating income excludes corporate costs.
Cash Flow for the Years Ended December 31, 2023 and 2022 During the year ended December 31, 2023, our cash and cash equivalents increased $4.2 million compared to an increase of $21.0 million during the prior year.
Restructuring" to the consolidated financial statements contained in Part II, Item 8. of this report. Cash Flow for the Years Ended December 31, 2024 and 2023 During the year ended December 31, 2024, our cash and cash equivalents increased $7.7 million compared to an increase of $4.2 million during the prior year.
We test indefinite-lived intangibles for impairment annually, during the second quarter, and during any interim period when market or business events indicate there may be a potential adverse impact on a particular intangible. The test may be on a qualitative or quantitative basis as allowed by GAAP.
Amortizable intangible assets are amortized over their useful lives of 5, 7, 10, 15, 23 or 30 years. We test indefinite-lived intangibles for impairment annually, during the second quarter, and during any interim period when market or business events indicate there may be a potential adverse impact on a particular intangible.
The following tables provide a reconciliation of GAAP net sales as reported to non-GAAP comparable sales by segment: Comparable Sales - Year Ended December 31, 2023 Non-GAAP (in millions) GAAP Net Sales Currency Translation Comparable Sales ACCO Brands North America $887.2 $(3.9) $891.1 ACCO Brands EMEA 547.2 5.5 541.7 ACCO Brands International 398.4 9.7 388.7 Total $1,832.8 $11.3 $1,821.5 Amount of Change - Year Ended December 31, 2023 compared to the Year Ended December 31, 2022 $ Change - Net Sales Non-GAAP (in millions) GAAP Net Sales Change Currency Translation Comparable Sales ACCO Brands North America $(110.8) $(3.9) $(106.9) ACCO Brands EMEA (33.1) 5.5 (38.6) ACCO Brands International 29.1 9.7 19.4 Total $(114.8) $11.3 $(126.1) % Change - Net Sales Non-GAAP GAAP Net Sales Change Currency Translation Comparable Sales ACCO Brands North America (11.1)% (0.4)% (10.7)% ACCO Brands EMEA (5.7)% 1.0% (6.7)% ACCO Brands International 7.9% 2.6% 5.3% Total (5.9)% 0.6% (6.5)% 39
The following tables provide a reconciliation of GAAP net sales as reported to non-GAAP comparable sales by segment: Comparable Sales - Year Ended December 31, 2024 Non-GAAP (in millions) GAAP Net Sales Currency Translation Comparable Sales ACCO Brands Americas $999.9 $(16.7) $1,016.6 ACCO Brands International 666.3 (2.6) 668.9 Total $1,666.2 $(19.3) $1,685.5 38 Amount of Change - Year Ended December 31, 2024 compared to the Year Ended December 31, 2023 $ Change - Net Sales Non-GAAP (in millions) GAAP Net Sales Change Currency Translation Comparable Sales ACCO Brands Americas $(135.8) $(16.7) $(119.1) ACCO Brands International (30.8) (2.6) (28.2) Total $(166.6) $(19.3) $(147.3) % Change - Net Sales Non-GAAP GAAP Net Sales Change Currency Translation Comparable Sales ACCO Brands Americas (12.0)% (1.5)% (10.5)% ACCO Brands International (4.4)% (0.4)% (4.0)% Total (9.1)% (1.1)% (8.0)% 39
The result of our assessments for the International and EMEA reporting units was that the fair value of each exceeded its carrying values by approximately ten percent and greater than fifty percent, respectively, and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future.
The result of our assessment was that the fair value of the International reporting unit exceeded its carrying value and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of discounted cash flows and market approach.
The current maturity of the Credit Agreement, as amended, is March 31, 2026. Financial Covenants As of December 31, 2023, our Consolidated Leverage Ratio was approximately 3.42 to 1.00 versus our maximum covenant of 4.25 to 1.00. Our Interest Coverage Ratio was approximately 5.18 to 1.00 versus the minimum covenant of 3.00 to 1.00.
As of December 31, 2024, our Consolidated Leverage Ratio was approximately 3.38 to 1.00 versus our maximum covenant of 4.00 to 1.00. Our Interest Coverage Ratio was approximately 5.35 to 1.00 versus the minimum covenant of 3.00 to 1.00.
We sometimes refer to comparable sales as comparable net sales. We use comparable sales both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business.
Comparable sales represent net sales excluding the impact of material acquisitions, if any, and with current-period foreign operation sales translated at prior-year currency rates. We sometimes refer to comparable sales as comparable net sales. We use comparable sales both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business.
For the year ended December 31, 2023, net sales increased $29.1 million, or 7.9 percent. Favorable foreign exchange increased sales $9.7 million, or 2.6 percent. Comparable sales increased 5.3 percent, primarily due to price increases which added $27.6 million, or 7.5 percent, partly offset by lower volume of $8.1 million, or 2.2 percent.
"Supplemental Non-GAAP Financial Measure." For the year ended December 31, 2024, net sales decreased $30.8 million, or 4.4 percent, primarily due to lower volume of $39.7 million, or 5.7 percent, partly offset by price increases which added $11.5 million, or 1.6 percent.
The following table summarizes our cash flows for the periods presented: Year Ended December 31, (in millions) 2023 2022 Amount of Change Net cash flow (used in) provided by: Operating activities $ 128.7 $ 77.6 $ 51.1 Investing activities (11.2 ) (9.3 ) (1.9 ) Net (repayments) borrowings (87.5 ) 16.9 (104.4 ) Dividends paid (28.5 ) (28.6 ) 0.1 All other financing (1.7 ) (36.6 ) 34.9 Financing activities (117.7 ) (48.3 ) (69.4 ) Effect of foreign exchange rate changes on cash and cash equivalents 4.4 1.0 3.4 Net increase in cash and cash equivalents $ 4.2 $ 21.0 $ (16.8 ) Cash Flow from Operating Activities Cash provided by operating activities during the twelve months ended December 31, 2023, increased $51.1 million compared to the prior year.
The following table summarizes our cash flows for the periods presented: Year Ended December 31, (in millions) 2024 2023 Amount of Change Net cash flow provided by: Operating activities $ 148.2 $ 128.7 $ 19.5 Investing activities (12.3 ) (11.2 ) (1.1 ) Net (repayments) borrowings (74.7 ) (87.5 ) 12.8 Dividends paid (28.4 ) (28.5 ) 0.1 All other financing (19.5 ) (1.7 ) (17.8 ) Financing activities (122.6 ) (117.7 ) (4.9 ) Effect of foreign exchange rate changes on cash and cash equivalents (5.6 ) 4.4 (10.0 ) Net increase in cash and cash equivalents $ 7.7 $ 4.2 $ 3.5 32 Cash Flow from Operating Activities Cash provided by operating activities during the twelve months ended December 31, 2024, was driven by cash inflows of $143.8 million (excluding the non-cash impacts primarily of amortization of intangibles, depreciation, stock-based compensation expense, and non-cash goodwill and intangible asset impairment charges that are included in our net loss).
For the year ended December 31, 2023, SG&A increased $16.8 million, or 4.5 percent, primarily due to higher people costs, including higher incentive compensation expense, partially offset by the impact of cost reduction actions. Adverse foreign exchange, increased SG&A by $1.4 million, or 0.4 percent.
For the year ended December 31, 2024, SG&A decreased $27.8 million, or 7.1 percent, primarily due to the impact of global cost reduction actions and lower incentive compensation expense, partly offset by people cost inflation. Favorable foreign exchange reduced SG&A by $2.3 million, or 0.6 percent.
Our third and fourth quarter cash flow comes from completing the working capital cycle. Our 2023 operating cash flow followed our historical seasonal pattern.
Our third and fourth quarter cash flows come from completing the working capital cycle.
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.
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.
On January 30, 2024, the Company announced a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60.0 million. The program incorporates initiatives to simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging the Company's sourcing capabilities.
The program incorporates initiatives to simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging the Company's sourcing capabilities.
Gross margin increased 420 basis points, or $46.0 million, compared to the prior-year period, primarily due to the cumulative effect of global price increases and cost reduction actions. We reported operating income of $44.7 million in 2023 compared to $34.8 million in 2022.
Gross margin increased 70 basis points compared to the prior-year period, primarily due to the impact of cost reduction actions, partly offset by the impact of volume declines. 26 We reported an operating loss of $37.0 million in 2024 compared to operating income of $44.7 million in 2023.
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.
The decrease was primarily due to updated assumptions and foreign exchange, partly offset by cash contributions. 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.
Debt The $350.6 million of debt currently outstanding under our senior secured credit facilities has a weighted average interest rate of 6.75 percent as of December 31, 2023, and the $575.0 million outstanding principal amount of our senior unsecured notes due March 2029 ("Senior Unsecured Notes") has a fixed interest rate of 4.25 percent. 31 Effective November 7, 2022, the Company entered into a Sixth Amendment (the "Sixth Amendment") to its Third Amended and Restated Credit Agreement, 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 "Credit Agreement").
Debt The $264.7 million of debt currently outstanding under our senior secured credit facilities has a weighted average interest rate of 5.15 percent as of December 31, 2024 and the $575.0 million outstanding principal amount of our senior unsecured notes due March 2029 ("Senior Unsecured Notes") has a fixed interest rate of 4.25 percent.
The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $89.5 million.
Accordingly, as of May 31, 2024, we completed an impairment assessment, on a quantitative basis, of goodwill for both the Americas and International reporting units. The result of our assessment was that the fair value of the Americas reporting unit did not exceed its carrying value resulting in an impairment charge of $127.5 million.
Item 8. of this report. SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES To supplement our consolidated financial statements presented in accordance with GAAP, we provide investors with certain non-GAAP financial measures, including comparable sales. Comparable sales represent net sales excluding the impact of 38 material acquisitions and with current-period foreign operation sales translated at prior-year currency rates.
Significant Accounting Policies, Recent Accounting Pronouncements and Adopted Accounting Standards" to the consolidated financial statements contained in Part II, Item 8. of this report. SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES To supplement our consolidated financial statements presented in accordance with GAAP, we provide investors with certain non-GAAP financial measures, including comparable sales.
The change was made as a result of decisions regarding the Company's future use of the trade name. Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition when compared with the fair value of the net assets acquired.
Goodwill Goodwill has been recorded on our balance sheet and represents the excess of the cost of an acquisition when compared with 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.
Facts and circumstances may change and cause us to revise our conclusions regarding 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.
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 our conclusions regarding our ability to realize certain net operating losses and other deferred tax attributes.
Non-operating pension (expense) income For the year ended December 31, 2023, non-operating pension expense was $1.8 million compared to income of $4.5 million for the year ended December 31, 2022. The increase in expense of $6.3 million was due to changes in assumptions used in our annual pension valuation, including higher interest rates.
Non-operating pension expense For the year ended December 31, 2024, non-operating pension expense was $6.1 million compared to $1.8 million for the year ended December 31, 2023.
During the prior year we used cash to repurchase shares of $19.4 million and paid a contingent earnout of $17.8 million. Capitalization The Company had 94.9 million and 94.3 million shares of common stock outstanding as of December 31, 2023, and 2022, respectively.
Capitalization The Company had 92.9 million and 94.9 million shares of common stock outstanding as of December 31, 2024, and 2023, respectively.
Net Income (Loss)/Diluted Income (Loss) per Share For the year ended December 31, 2023, net loss was $21.8 million, or $(0.23) per share, compared to a net loss of $13.2 million, or $(0.14) per share, in the prior year. 29 Segment Net Sales and Operating Income for the Years Ended December 31, 2023 and 2022 ACCO Brands North America Year Ended December 31, Amount of Change (in millions) 2023 2022 $ %/pts Net sales $ 887.2 $ 998.0 $ (110.8 ) (11.1 )% Segment operating loss⁽¹⁾ (5.9 ) (4.9 ) (1.0 ) 20.4 % Segment operating loss margin (0.7 )% (0.5 )% (0.2 ) pts Comparable sales (Non-GAAP)⁽²⁾ $ 891.1 $ 998.0 $ (106.9 ) (10.7 )% (1) Segment operating loss for North America includes goodwill impairment charges but excludes corporate costs.
The increase in the net loss was primarily due to the higher non-cash impairment charges related to our intangible assets. 29 Segment Net Sales and Operating (Loss) Income for the Years Ended December 31, 2024 and 2023 ACCO Brands Americas Year Ended December 31, Amount of Change (in millions) 2024 2023 $ %/pts Net sales $ 999.9 $ 1,135.7 $ (135.8 ) (12.0 )% Segment operating (loss) income⁽¹⁾ (45.5 ) 43.9 (89.4 ) NM Segment operating (loss) income margin (4.6 )% 3.9 % (8.5 ) pts Comparable sales (Non-GAAP)⁽²⁾ $ 1,016.6 $ 1,135.7 $ (119.1 ) (10.5 )% (1) Segment operating (loss) income excludes corporate costs.
The reduction in income tax expense was due primarily to the reduction in pretax book income, tax law changes allowing Brazilian taxes paid to be creditable for U.S. tax purposes of $6.3 million, and release of unrecognized tax benefits related to the Brazil Tax Assessments of $13.3 million. See "Note 11.
The increase in tax expense was primarily due to an income tax benefit from the release of certain unrecognized tax benefits related to the Brazil Tax Assessments in 2023 of $13.3 million which did not repeat, partly offset by a reduction in pretax book income. See "Note 11.
For the year ended December 31, 2023, net sales decreased $33.1 million, or 5.7 percent. Favorable foreign exchange increased sales $5.5 million, or 1.0 percent. Comparable sales decreased 6.7 percent mainly due to lower volume, which was down $99.2 million, or 17.1 percent. The lower volume was partly offset by price increases of $60.6 million, or 10.4 percent.
For the year ended December 31, 2024, operating income increased $4.5 million, or 9.1 percent, primarily due to price increases and cost reduction actions, partly offset by the impact of lower volume. Adverse foreign exchange reduced operating income by $0.5 million, or 1.0 percent.
Income Taxes" to the Consolidated Financial Statements contained in Part II, Item 8. of this report for more information.
Income Taxes" to the Consolidated Financial Statements contained in Part II, Item 8. of this report for more information. Net Loss/Diluted Loss per Share For the year ended December 31, 2024, net loss was $101.6 million, or $(1.06) per share, compared to $21.8 million, or $(0.23) per share, in the prior year.
The weighted average interest rate on $350.6 million of outstanding variable rate debt as of December 31, 2023, increased to 6.38 percent from 4.90 percent in the prior year. We expect higher interest expense to continue given the current interest rate environment.
Interest Expense For the year ended December 31, 2024, interest expense decreased $6.0 million, primarily due to lower variable interest rates on lower variable debt balances versus the prior year. The weighted average interest rate on $264.7 million of outstanding variable rate debt as of December 31, 2024 decreased to 5.15 percent from 6.38 percent in the prior year.
Our contractual obligations and related payments by period as of December 31, 2023 were as follows: (in millions) 2024 2025 - 2026 2027 - 2028 Thereafter Total Debt $ 36.7 $ 313.9 $ — $ 575.0 $ 925.6 Interest on debt (1) 45.6 71.9 48.9 5.1 171.5 Operating lease obligations (2) 26.6 44.2 26.8 25.5 123.1 Purchase obligations (3) 102.1 10.0 0.3 0.1 112.5 Transition Toll Tax (4) 7.7 9.6 — — 17.3 Other long-term liabilities (5) 16.0 15.6 15.7 38.9 86.2 Total $ 234.7 $ 465.2 $ 91.7 $ 644.6 $ 1,436.2 (1) Interest calculated at December 31, 2023, rates for variable rate debt.
Off-Balance-Sheet Arrangements and Contractual Financial Obligations The Company does not have any material off-balance-sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. 33 Our contractual obligations and related payments by period as of December 31, 2024 were as follows: (in millions) 2025 2026 - 2027 2028 - 2029 Thereafter Total Debt $ 51.3 $ 16.0 $ 772.4 $ — $ 839.7 Interest on debt (1) 36.5 69.3 42.9 — 148.7 Operating lease obligations (2) 26.2 38.0 24.2 17.8 106.2 Purchase obligations (3) 113.3 5.5 — — 118.8 Transition Toll Tax (4) 9.6 — — — 9.6 Other long-term liabilities (5) 16.0 15.0 14.9 35.8 81.7 Total $ 252.9 $ 143.8 $ 854.4 $ 53.6 $ 1,304.7 (1) Interest calculated at December 31, 2024, rates for variable rate debt.
These channels include mass retailers, e-tailers, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, contract stationers, and specialist technology businesses. Overview of 2023 Financial Performance During 2023, the Company continued to be impacted by softening global demand, reflecting a weaker macroeconomic environment.
These channels include mass retailers, e-tailers, technology distributors, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, and contract stationers. We also sell directly through e-commerce sites and our direct sales organization.
Goodwill Impairment For the year ended December 31, 2023, we recorded a non-cash goodwill impairment charge of $89.5 million for our North America reporting unit compared to $98.7 million in the prior year. Our goodwill balance could be at risk of further impairment if operating performance is not as expected. See "Note 9.
Goodwill/Intangible Impairment For the year ended December 31, 2024, we recorded non-cash impairment charges of $165.2 million related to goodwill and an indefinite-lived trade name, compared to a non-cash goodwill impairment charge of $89.5 million in the prior year. Future events may occur that could further impair our goodwill or indefinite-lived intangible assets. See "Note 9.
Cash Flow from Investing Activities Cash used by investing activities during the twelve months ended December 31, 2023, increased $1.9 million compared to the prior year.
Cash used by investing activities during the twelve months ended December 31, 2023, was primarily due to capital expenditures partially offset by proceeds of $2.2 million from the sale of our facility in Japan.
Finite lived intangibles are amortized over 5, 7, 10, 15, 23 or 30 years. Effective January 1, 2023, we changed the indefinite-lived Leitz ® trade name to an amortizable intangible asset and began amortizing the trade name on a straight-line basis over a life of 30 years.
As of June 1, 2024, we changed our Five Star ® and Swingline ® indefinite-lived trade names to amortizable intangible assets as they no longer met the indefinite-lived criteria. We began amortizing both trade names on a straight-line basis over a life of 30 years as of June 1, 2024.
Overview of the Company ACCO Brands is a leading global consumer, technology and business branded products company, providing well-known brands and innovative product solutions used in schools, homes and at work. We have expanded into higher growth product categories, while increasing our sales mix to higher growth channels, including retail and mass merchants, e-tailers, and technology specialists.
Overview of the Company ACCO Brands is a leading global consumer, technology and business branded products company, providing well-known brands and innovative product solutions used in schools, homes and at work. These brands include At-A-Glance, Barrilito, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Mead, PowerA, Quartet, Rapid, Swingline, Tilibra and other.
The volume decline was due to a weaker macroeconomic environment, lower than anticipated return to office trends and retailers maintaining lower inventory levels, which resulted in lower demand for technology accessories and office products. Adverse foreign exchange reduced net sales $3.9 million, or 0.4 percent.
The lower volume reflects reduced business and consumer demand for our office products, partly offset by growth in technology accessories. Adverse foreign exchange reduced sales $2.6 million, or 0.4 percent.
Other Expense (Income), Net For the year ended December 31, 2023, we reported other expense of $4.5 million, compared to other income of $12.9 million for the year ended December 31, 2022.
The increase of $4.3 million was primarily due to a settlement charge of $4.5 million resulting from the wind-up of the ACCO Brands Canada Salaried and Hourly pension plans which was completed in the second quarter of 2024. 28 Other (Income) Expense, Net For the year ended December 31, 2024, we reported other income of $0.9 million, compared to other expense of $4.5 million for the year ended December 31, 2023.
The increase in operating income was primarily due to higher gross profit of $46.0 million and a lower non-cash goodwill impairment charge of $9.2 million, partially offset by a $17.6 million increase in restructuring expense and a $16.8 million increase in SG&A expense.
The decline was primarily due to higher non-cash impairment charges of $75.7 million and lower gross profit, partly offset by lower SG&A and lower restructuring expenses as noted above. Foreign exchange reduced operating loss $3.3 million, or 7.4 percent.
The reported net loss reflects higher interest and non-operating pension expenses. Our operating cash flow for the year was cash provided of $128.7 million, compared to $77.6 million of cash provided in the prior year.
The reported net loss reflects higher non-cash goodwill and intangible asset impairment charges and lower benefits from discrete tax items. Operating cash flows for the year provided cash of $148.2 million and $128.7 million in 2024 and 2023, respectively.
As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of December 31, 2023, we completed an impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units.
During the second quarter, we identified a triggering event for our indefinite-lived trade names within our Americas reporting unit indicating that it was more likely than not that an impairment loss had been incurred. The triggering event was a decline in forecasted cash flows within certain product categories.
Cash Flow from Financing Activities Cash used by financing activities during the twelve months ended December 31, 2023, increased $69.4 million compared to the prior year. During the current year we used $87.5 million of cash to pay down our net borrowings and during the prior year we had a cash inflow from an increase in debt of $16.9 million.
Cash Flow from Financing Activities Cash used by financing activities during the twelve months ended December 31, 2024, was primarily due to debt repayments exceeding borrowings, dividend payments, and cash used to repurchase common stock. Cash used by financing activities during the twelve months ended December 31, 2023, was primarily due to debt repayments exceeding borrowings and dividend payments.
For the year ended December 31, 2023, operating loss increased $1.0 million to $5.9 million from $4.9 million in the prior year.
For the year ended December 31, 2024, operating loss was $45.5 million compared to operating income of $43.9 million in the prior year. The operating loss in the current year included non-cash intangible asset impairment charges totaling $165.2 million versus $89.5 million in the prior year.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInterest Rate Risk Management Amounts outstanding under the Credit Agreement, as amended, bear interest at a rate per annum equal to the Euro Rate (with a zero percent floor for Euro borrowings), the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the Credit Agreement, as amended, 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 follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans Undrawn Fee > 4.50 to 1.00 2.50 % 1.50 % 0.500 % ≤ 4.50 to 1.00 and > 4.00 to 1.00 2.25 % 1.25 % 0.375 % ≤ 4.00 to 1.00 and > 3.50 to 1.00 2.00 % 1.00 % 0.350 % ≤ 3.50 to 1.00 and > 3.00 to 1.00 1.75 % 0.75 % 0.300 % ≤ 3.00 to 1.00 and > 2.00 to 1.00 1.50 % 0.50 % 0.250 % ≤ 2.00 to 1.00 1.25 % 0.25 % 0.200 % As of December 31, 2023, the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 percent.
Biggest changeInterest Rate Risk Management Amounts outstanding under the Credit Agreement bear interest at a rate per annum equal to the Euro Rate (with a zero percent floor for Euro borrowings), the Australian BBSR Rate, the Canadian BA Rate or the Base Rate, as applicable and as each such rate is defined in the 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 follows: Consolidated Leverage Ratio Applicable Rate on Euro/AUD/CDN Dollar Loans Applicable Rate on Base Rate Loans Undrawn Fee > 4.25 2.25 % 1.25 % 0.375 % > 3.5 2.00 % 1.00 % 0.350 % > 2.5 1.75 % 0.75 % 0.300 % ≤ 2.5 1.50 % 0.50 % 0.250 % As of December 31, 2024, the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 percent.
Increases and decreases in the fair market values of our forward contracts are expected to be offset by gains/losses in recognized net underlying foreign currency transactions or loans. Notional amounts of outstanding foreign currency forward exchange contracts were $182.5 million and $187.8 million at December 31, 2023, and 2022, respectively.
Increases and decreases in the fair market values of our forward contracts are expected to be offset by gains/losses in recognized net underlying foreign currency transactions or loans. Notional amounts of outstanding foreign currency forward exchange contracts were $150.5 million and $182.5 million at December 31, 2024, and 2023, respectively.
The net fair value of these foreign currency contracts was $(0.4) million and $1.7 million at December 31, 2023, and 2022, respectively. At December 31, 2023, a 10-percent unfavorable exchange rate movement in our portfolio of foreign currency forward contracts would have reduced our unrealized gains $16.4 million.
The net fair value of these foreign currency contracts was $4.0 million and $(0.4) million at December 31, 2024, and 2023, respectively. At December 31, 2024, a 10-percent unfavorable exchange rate movement in our portfolio of foreign currency forward contracts would have reduced our unrealized gains $15.0 million.
Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.20 percent to 0.50 percent per annum, depending on the Company’s Consolidated Leverage Ratio.
Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.25 percent to 0.375 percent per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2024, the commitment fee rate was 0.35 percent.
Debt Obligations Stated Maturity Date (in millions) 2024 2025 2026 2027 2028 Thereafter Total Fair Value Long term debt: Fixed rate Senior Unsecured Notes, due March 2029 $ — $ — $ — $ — $ — $ 575.0 $ 575.0 $ 520.4 Fixed interest rate 4.25 % Euro Senior Secured Term Loan A, due March 2026 $ 19.3 $ 24.3 $ 174.6 $ — $ — $ — $ 218.2 $ 218.2 USD Senior Secured Term Loan A, due March 2026 $ 6.9 $ 8.7 $ 62.4 $ — $ — $ — $ 78.0 $ 78.0 Australian Dollar Senior Secured Term Loan A, due March 2026 $ 2.9 $ 3.6 $ 26.0 $ — $ — $ — $ 32.5 $ 32.5 U.S.
Debt Obligations Stated Maturity Date (in millions) 2025 2026 2027 2028 2029 Thereafter Total Fair Value Long term debt: Fixed rate Senior Unsecured Notes, due March 2029 $ — $ — $ — $ — $ 575.0 $ — $ 575.0 $ 524.7 Fixed interest rate 4.25 % Euro Senior Secured Term Loan A, due October 2029 $ 6.4 $ 6.4 $ 9.6 $ 9.6 $ 95.9 $ — $ 127.9 $ 127.9 Euro Dollar Senior Secured Revolving Credit Facility, due October 2029 $ — $ — $ — $ — $ 59.1 $ — $ 59.1 $ 59.1 U.S.
These interest rate changes may affect the fair market value of our fixed interest rate debt and any decisions we may make to repurchase the Senior Unsecured Notes, but do not impact our earnings or cash flow. The following table summarizes information about our major debt components as of December 31, 2023, including the principal cash payments and interest rates.
In addition, fair market values will also reflect the credit markets' view of credit risk spreads and our risk profile. These interest rate changes may affect the fair market value of our fixed interest rate debt and any decisions we may make to repurchase the Senior Unsecured Notes, but do not impact our earnings or cash flow.
Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise. In addition, fair market values will also reflect the credit markets' view of credit risk spreads and our risk profile.
However, the fair market value of our long-term fixed interest rate debt is subject to interest rate risk. 40 Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.
Dollar Senior Secured Revolving Credit Facility, due March 2026 $ 7.3 $ — $ — $ — $ — $ — $ 7.3 $ 7.3 Australian Dollar Senior Secured Revolving Credit Facility, due March 2026 $ — $ — $ 14.3 $ — $ — $ — $ 14.3 $ 14.3 Average variable interest rate (1) 6.35 % 6.35 % 6.35 % (1) Rates presented are as of December 31, 2023. 41
Dollar Senior Secured Revolving Credit Facility, due October 2029 $ 34.4 $ — $ — $ — $ — $ — $ 34.4 $ 34.4 Australian Dollar Senior Secured Revolving Credit Facility, due October 2029 $ — $ — $ — $ — $ 32.8 $ — $ 32.8 $ 32.8 Average variable interest rate (1) 4.95 % 4.96 % 4.98 % 4.99 % 4.99 % (1) Rates presented are as of December 31, 2024. 41
As of December 31, 2023, the commitment fee rate was 0.35 percent. 40 The Senior Unsecured Notes have a fixed interest rate and, accordingly, are not exposed to market risk resulting from changes in interest rates. However, the fair market value of our long-term fixed interest rate debt is subject to interest rate risk.
The Senior Unsecured Notes have a fixed interest rate and, accordingly, are not exposed to market risk resulting from changes in interest rates.
Added
The following table summarizes information about our major debt components as of December 31, 2024, including the principal cash payments and interest rates.

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