Company: ACCO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024931
Chunk: 155

Company: ACCO BRANDS Corp
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 155
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 and evaluate evidence obtained.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s goodwill and intangible asset impairment assessment process, including controls over the development of the assumptions described above. We evaluated the Company’s forecasted revenue for the Americas reporting unit, by comparing to the growth rates used in the Company’s prior quantitative impairment assessments, historical operating results, current year actual operating results, forecasted information in external industry reports, leadership communications, and external forecasted inflation rate data. We evaluated the Company's forecasted revenue for the Five Star trade name by comparing to historical growth rates, current year actual operating results, and forecasted growth rate data in external industry reports. We involved valuation professionals with specialized skills and knowledge, who assisted in:

•evaluating the Company's market multiples by developing a range of market multiples based on external data for guideline public companies

•assessing the royalty rate by comparing it to third party licensing agreements

•evaluating the Company's discount rates by comparing the Company's inputs to the discount rates to publicly available data for comparable entities and assessing the resulting discount rates

•testing the estimate of the Americas reporting unit fair value using the reporting unit's cash flow assumptions and discount rate, and comparing the result of the Company's fair value estimate 

•testing the estimate of the Five Star trade name fair value using the trade name's forecasted revenue assumptions, royalty rate, and discount rate, and comparing the result to the Company's fair value estimate.

/s/ KPMG LLP

We have served as the Company’s auditor since 2009. 

Chicago, Illinois

February 21, 2025

45

ACCO Brands Corporation and Subsidiaries

Consolidated Balance Sheets

    December 31,2024

    December 31,2023

    (in millions)

    Assets

    Current assets:

    Cash and cash equivalents
     
    $
    74.1

    $
    66.4

    Accounts receivable less allowances of $16.2 and $22.9, respectively

    348.9

    430.7

    Inventories

    270.4

    327.5

    Other current assets

    38.1

    30.8

    Total current assets

    731.5

    855.4

    Total property, plant and equipment

    505