Company: ACCO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024931
Chunk: 146

Company: ACCO BRANDS Corp
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 146
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    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. 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. 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. 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.

The amount of income taxes that we pay is subject to ongoing audits by federal, state and foreign tax authorities. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. We