18. Information on Operating Segments

 

The Company has two operating segments based in different geographic regions: Americas and International. Each operating segment designs, markets, sources, manufactures and sells recognized consumer, technology, and business branded products used in schools, homes, and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing.

 

Our Chief Operating Decision Maker ("CODM"), which is our President and Chief Executive Officer, analyzes and evaluates the Company's financial results at the operating segment level to assess performance and allocate resources. This includes net revenue, gross margins, operating income, restructuring expense, components of working capital investments, and other ratio performance metrics. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

The Company's two operating segments are as follows:

 

Operating Segment

 

Geography

 

Primary Brands

 

Primary Products

ACCO Brands Americas

 

United States, Canada and Latin America

 

AT-A-GLANCE®, Barrilito®, Five Star®, Foroni®, GBC®, Hilroy®, Kensington®, Mead®, PowerA®, Quartet®, Swingline® and Tilibra®

 

Note taking products, gaming and computer accessories; planners; workspace machines, tools and essentials and dry erase boards and accessories.

 

 

 

 

 

 

 

ACCO Brands International

 

EMEA, Australia/N.Z., and Asia

 

Artline®*, Buro®, Derwent®, Esselte®, Franken®, GBC®, Kensington®, Leitz®, Marbig®, NOBO®, PowerA®, Rapid®, Rexel® and Spirax®

*Australia/N.Z. only

 

Filing and organization products; workspace machines, tools and essentials; gaming and computer accessories; dry erase boards and accessories; ergonomic products; seating; and writing and art products.

 

Customers

 

We distribute our products through a wide variety of channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop. These channels include mass retailers, e-tailers, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, contract stationers, and specialist technology businesses. We also sell directly through e-commerce sites and our direct sales organization.

 

The operating results regularly provided to the CODM for our operating segments for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

For The Year Ended December 31, 2025

 

 

For The Year Ended December 31, 2024

 

 

ACCO Brands
Americas

 

ACCO Brands International

 

Total

 

 

ACCO Brands
Americas

 

ACCO Brands International

 

Total

 

Net Sales

$

894.4

 

$

630.3

 

$

1,524.7

 

 

$

999.9

 

$

666.3

 

$

1,666.2

 

Cost of products sold

 

598.3

 

 

426.4

 

 

1,024.7

 

 

 

666.0

 

 

444.8

 

 

1,110.8

 

Gross profit

 

296.1

 

 

203.9

 

 

500.0

 

 

 

333.9

 

 

221.5

 

 

555.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

108.8

 

 

92.0

 

 

200.8

 

 

 

115.2

 

 

91.5

 

 

206.7

 

Administrative expenses(2)

 

58.1

 

 

48.0

 

 

106.1

 

 

 

64.9

 

 

51.9

 

 

116.8

 

Restructuring

 

7.7

 

 

14.1

 

 

21.8

 

 

 

6.5

 

 

6.9

 

 

13.4

 

Gain on the disposal of assets

 

(5.7

)

 

(1.1

)

 

(6.8

)

 

 

 

 

 

 

 

Impairment of goodwill and intangible assets

 

 

 

 

 

 

 

 

165.2

 

 

 

 

165.2

 

All other(3)

 

29.5

 

 

16.7

 

 

46.2

 

 

 

27.6

 

 

17.1

 

 

44.7

 

Segment operating income (loss)

 

97.7

 

 

34.2

 

 

131.9

 

 

 

(45.5

)

 

54.1

 

 

8.6

 

Corporate expense

 

 

 

 

 

39.6

 

 

 

 

 

 

 

45.6

 

Total consolidated operating income (loss)

 

 

 

 

 

92.3

 

 

 

 

 

 

 

(37.0

)

Interest expense, net

 

 

 

 

 

36.4

 

 

 

 

 

 

 

45.1

 

Non-operating pension expense

 

 

 

 

 

2.5

 

 

 

 

 

 

 

6.1

 

Other expense (income)

 

 

 

 

 

4.3

 

 

 

 

 

 

 

(0.9

)

Income (loss) before income tax

 

 

 

 

$

49.1

 

 

 

 

 

 

$

(87.3

)

 

 

For The Year Ended December 31, 2023

 

 

ACCO Brands
Americas

 

ACCO Brands International

 

Total

 

Net Sales

$

1,135.7

 

$

697.1

 

$

1,832.8

 

Cost of products sold

 

761.7

 

 

472.8

 

 

1,234.5

 

Gross profit

 

374.0

 

 

224.3

 

 

598.3

 

 

 

 

 

 

 

 

Sales and marketing expenses(1)

 

123.7

 

 

94.2

 

 

217.9

 

Administrative expenses(2)

 

75.2

 

 

52.3

 

 

127.5

 

Restructuring

 

16.7

 

 

9.9

 

 

26.6

 

Impairment of goodwill and intangible assets

 

89.5

 

 

 

 

89.5

 

All other(3)

 

25.0

 

 

18.3

 

 

43.3

 

Segment operating income

 

43.9

 

 

49.6

 

 

93.5

 

Corporate expense

 

 

 

 

 

48.8

 

Total consolidated operating income

 

 

 

 

 

44.7

 

Interest expense, net

 

 

 

 

 

51.5

 

Non-operating pension expense

 

 

 

 

 

1.8

 

Other expense, net

 

 

 

 

 

4.5

 

Loss before income tax

 

 

 

 

$

(13.1

)

 

(1)
Sales and Marketing consists primarily of advertising, marketing, selling, customer service expenses, and research and development.
(2)
Admin expense consists primarily of executive, finance, information technology and human resources expenses.
(3)
All other expense primarily consists of amortization of intangibles.

 

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

 

(in millions)

 

2025

 

 

2024

 

ACCO Brands Americas

 

$

445.9

 

 

$

418.0

 

ACCO Brands International

 

 

202.9

 

 

 

201.3

 

Total segment assets(4)

 

 

648.8

 

 

 

619.3

 

Goodwill

 

 

478.5

 

 

 

446.4

 

Identifiable intangibles, net

 

 

696.9

 

 

 

709.6

 

Property, plant and equipment, net

 

 

138.8

 

 

 

137.5

 

Unallocated assets(5)

 

 

290.0

 

 

 

315.6

 

Total assets

 

$

2,253.0

 

 

$

2,228.4

 

 

(4)
Segment assets represent assets that are regularly provided to the CODM and consist of accounts receivable less allowances and inventory.
(5)
Unallocated assets consist primarily of cash, deferred taxes, derivatives, prepaid pension assets, prepaid debt issuance costs, and right of use asset, leases.

 

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

 

(in millions)

 

2025

 

 

2024

 

U.S.

 

$

48.5

 

 

$

51.1

 

Canada

 

 

0.8

 

 

 

0.9

 

Latin America

 

 

24.2

 

 

 

22.7

 

ACCO Brands Americas

 

 

73.5

 

 

 

74.7

 

 

 

 

 

 

 

 

ACCO Brands EMEA

 

 

55.8

 

 

 

53.5

 

Australia/N.Z.

 

 

8.9

 

 

 

8.7

 

Asia-Pacific

 

 

0.6

 

 

 

0.6

 

ACCO Brands International

 

 

65.3

 

 

 

62.8

 

Property, plant and equipment, net

 

$

138.8

 

 

$

137.5

 

 

Capital spend by operating segment for the years ended December 31, 2025, 2024 and 2023 was as follows:

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

ACCO Brands Americas

 

$

13.4

 

 

$

10.2

 

 

$

7.7

 

ACCO Brands International

 

 

6.1

 

 

 

6.8

 

 

 

7.6

 

Total capital spend

 

$

19.5

 

 

$

17.0

 

 

$

15.3

 

 

Depreciation expense by operating segment for the years ended December 31, 2025, 2024 and 2023 was as follows:

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

ACCO Brands Americas

 

$

17.4

 

 

$

19.2

 

 

$

20.4

 

ACCO Brands International

 

 

9.2

 

 

 

9.2

 

 

 

12.3

 

Total depreciation

 

$

26.6

 

 

$

28.4

 

 

$

32.7

 

 

Top Customers

 

Net sales to our five largest customers totaled $484.7 million, $532.9 million and $609.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025, net sales to Amazon, our largest customer, were $158.1 million (10 percent). Except as disclosed, no other customer represented more than 10 percent of net sales in any of the last three years.

 

As of December 31, 2025 and 2024, our top five trade accounts receivable totaled $117.0 million and $116.3 million, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 23, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Feb 27, 2017
2015Feb 24, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.