Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ACCO BRANDS Corp | acco-2017xq18xksegrealign.htm |
Exhibit 99.1
Supplemental Business Segment Information and Reconciliation of Non-GAAP Measures (Unaudited)
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") in this Supplemental Business Segment Information and Reconciliation of Non-GAAP Measures (Unaudited), we provide investors with adjusted operating income and adjusted operating income margin which are non-GAAP financial measures.
We believe these non-GAAP financial measures are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. Adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of our underlying operational results and trends. For example, the non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures, along with other non-GAAP financial measures, are among the primary indicators management uses as a basis for our planning and forecasting of future periods and senior management’s incentive compensation is determined, in part, using certain of these non-GAAP financial measures.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results such as unusual income tax items, restructuring and integration charges, acquisition-related expenses, goodwill or other asset impairment charges, foreign currency fluctuation, and other one-time or non-recurring items. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
1
ACCO Brands Corporation and Subsidiaries
Supplemental Business Segment Information and Reconciliation of Non-GAAP Measures (Unaudited)
(In millions of dollars)
2016 | 2015 | Changes | |||||||||||||||||||||||||||||||||||||||||||
Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||
GAAP | Adjusted | Operating | GAAP | Adjusted | Operating | Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||
Operating | Operating | Income | Operating | Operating | Income | Operating | Operating | ||||||||||||||||||||||||||||||||||||||
GAAP | Income | Adjusted | Income | (Loss) | GAAP | Income | Adjusted | Income | (Loss) | Net Sales | Net Sales | Income | Income | Margin | |||||||||||||||||||||||||||||||
Net Sales | (Loss) | Items | (Loss) (A) | Margin (A) | Net Sales | (Loss) | Items | (Loss) (A) | Margin (A) | $ | % | (Loss) $ | (Loss) % | Points | |||||||||||||||||||||||||||||||
Q1: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 179.3 | $ | 10.0 | $ | — | $ | 10.0 | 5.6% | ||||||||||||||||||||||||||||||||||||
ACCO Brands International | 59.9 | 5.6 | — | 5.6 | 9.3% | ||||||||||||||||||||||||||||||||||||||||
ACCO Brands EMEA | 38.9 | 0.2 | — | 0.2 | 0.5% | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (9.3 | ) | 0.6 | (8.7 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 278.1 | $ | 6.5 | $ | 0.6 | $ | 7.1 | 2.6% | ||||||||||||||||||||||||||||||||||||
Q2: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 295.4 | $ | 53.0 | $ | 1.1 | $ | 54.1 | 18.3% | ||||||||||||||||||||||||||||||||||||
ACCO Brands International | 73.4 | 3.1 | 3.8 | 6.9 | 9.4% | ||||||||||||||||||||||||||||||||||||||||
ACCO Brands EMEA | 41.3 | 1.6 | — | 1.6 | 3.9% | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (12.3 | ) | 2.8 | (9.5 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 410.1 | $ | 45.4 | $ | 7.7 | $ | 53.1 | 12.9% | ||||||||||||||||||||||||||||||||||||
Q3: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 289.1 | $ | 49.6 | $ | — | $ | 49.6 | 17.2% | ||||||||||||||||||||||||||||||||||||
ACCO Brands International | 101.5 | 15.9 | 0.8 | 16.7 | 16.5% | ||||||||||||||||||||||||||||||||||||||||
ACCO Brands EMEA | 40.7 | 2.9 | — | 2.9 | 7.1% | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (12.7 | ) | 4.4 | (8.3 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 431.3 | $ | 55.7 | $ | 5.2 | $ | 60.9 | 14.1% | ||||||||||||||||||||||||||||||||||||
Q4: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 252.3 | $ | 40.7 | $ | 0.1 | $ | 40.8 | 16.2% | ||||||||||||||||||||||||||||||||||||
ACCO Brands International | 134.4 | 24.8 | 2.2 | 27.0 | 20.1% | ||||||||||||||||||||||||||||||||||||||||
ACCO Brands EMEA | 50.9 | 7.9 | — | 7.9 | 15.5% | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (13.7 | ) | 2.8 | (10.9 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 437.6 | $ | 59.7 | $ | 5.1 | $ | 64.8 | 14.8% | ||||||||||||||||||||||||||||||||||||
Full Year: | |||||||||||||||||||||||||||||||||||||||||||||
ACCO Brands North America | $ | 1,016.1 | $ | 153.3 | $ | 1.2 | $ | 154.5 | 15.2% | $ | 1,025.7 | $ | 151.6 | $ | (0.3 | ) | $ | 151.3 | 14.8% | $ | (9.6 | ) | (1)% | $ | 3.2 | 2% | 40 | ||||||||||||||||||
ACCO Brands International | 369.2 | 49.4 | 6.8 | 56.2 | 15.2% | 285.0 | 29.1 | — | 29.1 | 10.2% | 84.2 | 30% | 27.1 | 93% | 500 | ||||||||||||||||||||||||||||||
ACCO Brands EMEA | 171.8 | 12.6 | — | 12.6 | 7.3% | 199.7 | 18.0 | (0.1 | ) | 17.9 | 9.0% | (27.9 | ) | (14)% | (5.3 | ) | (30)% | (170) | |||||||||||||||||||||||||||
Corporate | — | (48.0 | ) | 10.6 | (37.4 | ) | — | (35.2 | ) | — | (35.2 | ) | — | (2.2 | ) | ||||||||||||||||||||||||||||||
Total | $ | 1,557.1 | $ | 167.3 | $ | 18.6 | $ | 185.9 | 11.9% | $ | 1,510.4 | $ | 163.5 | $ | (0.4 | ) | $ | 163.1 | 10.8% | $ | 46.7 | 3% | $ | 22.8 | 14% | 110 | |||||||||||||||||||
(A) See "Notes for Supplemental Business Segment Information and Reconciliation of Non-GAAP Measures (Unaudited). | |||||||||||||||||||||||||||||||||||||||||||||
2
Notes for Supplemental Business Segment Information and Reconciliation of Non-GAAP Measures (Unaudited)
"Adjusted Operating Income" and "Adjusted Operating Income Margin", which are non-GAAP financial measures, exclude restructuring (credits) charges and, for 2016, amortization of the step-up in value of finished goods and transaction and integration expenses associated with the acquisitions of Pelikan Artline and of Esselte Group Holdings AB.
3