Company: ACCO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024931
Chunk: 85

Company: ACCO BRANDS Corp
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 85
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Forward Currency Contracts We enter into forward foreign currency contracts with third parties to reduce the effect of fluctuating foreign currencies, primarily on foreign denominated inventory purchases and intercompany loans. Our primary exposure to currency movements is in the Euro, the Swedish krona, the British pound, the Brazilian real, the Australian dollar, the Canadian dollar, and the Mexican peso. Forward currency contracts are used to hedge foreign denominated inventory purchases for Europe, Australia, Canada, Japan and New Zealand, and are designated as cash flow hedges. Unrealized gains and losses on these contracts are deferred in AOCI until the contracts are settled and the underlying hedged transactions relating to inventory purchases are recognized, at which time the deferred gains or losses will be reported in the "Cost of products sold" line in the Consolidated Statements of Income. As of December 31, 2024 and 2023, we had cash flow foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $76.9 million and $80.2 million, respectively, which were designated as hedges. Forward currency contracts used to hedge foreign denominated intercompany loans are not designated as hedging instruments. Gains and losses on these derivative instruments are recognized within "Other expense (income), net" in the Consolidated Statements of Income and are largely offset by the change in the current translated value of the hedged item. The periods of the forward foreign exchange contracts correspond to the periods of the hedged transactions, with some relating to intercompany loans which extend beyond December 2025. As of December 31, 2024 and 2023, we had foreign exchange contracts outstanding with a U.S. dollar equivalent notional value of $73.6 million and $102.3 million, respectively, which were not designated as hedges. The following table summarizes the fair value of our derivative financial instruments as of December 31, 2024 and 2023: 

        Fair Value of Derivative Instruments

        Derivative Assets

        Derivative Liabilities

        (in millions)
         
        Balance Sheet Location
         
        December 31,2024

        December 31,2023

        Balance Sheet Location
         
        December 31,2024

        December 31,2023

        Derivatives designated as hedging instruments:

        Foreign exchange contracts
         
        Other current assets
         
        $
        4.0

        $