UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
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þ
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ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2010
OR
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¨
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TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
Commission File Number 001-08454
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A.
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Full title of the plan and the address of the plan, if different from that of the issuer named below:
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ACCO Brands Corporation 401(k) Plan
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B.
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Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
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ACCO Brands Corporation
300 Tower Parkway
Lincolnshire, IL 60069
Financial Statements and Exhibits:
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(a)
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Financial Statements:
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ACCO
Brands Corporation 401(k) Plan
Report of Independent Registered Public Accounting Firm.
Statement of Net Assets Available for Benefits as of December 31, 2010 and 2009.
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2010.
Notes to Financial Statements.
Form 5500, Schedule H, Part IV, Line 4i — Schedule
of Assets (Held at End of Year) as of December 31, 2010.
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23.1
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Consent of Independent Registered Public Accounting Firm — Crowe Horwath LLP
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ACCO BRANDS CORPORATION 401(k) PLAN
Lincolnshire, IL
FINANCIAL STATEMENTS
December 31, 2010 and 2009
CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Administrative Committee and Plan participants
of the ACCO Brands Corporation 401(k) Plan
ACCO Brands Corporation
Lincolnshire, Illinois
We have audited the
accompanying statements of net assets available for benefits of the ACCO Brands Corporation 401(k) Plan (“the Plan”) as of December 31, 2010 and 2009, and the related statement of changes in net assets available for benefits for the
year ended December 31, 2010. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available
for benefits of the Plan as of December 31, 2010 and 2009, and the changes in net assets available for benefits for the year ended December 31, 2010, in conformity with U.S. generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, line 4i
– Schedule of Assets (Held at End of Year), is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing
procedures applied in the audit of the basic 2010 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2010 financial statements taken as a whole.
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/s/ Crowe Horwath LLP
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Crowe Horwath LLP
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Oak Brook, Illinois
June 27, 2011
4
ACCO BRANDS CORPORATION 401(k) PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2010 and 2009
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December 31,
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2010
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2009
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ASSETS
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Investments, at fair value:
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Stable Value Fund
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$
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34,321,614
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$
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34,558,523
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Mutual funds
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150,074,488
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138,601,091
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Common stock
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3,578,057
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3,806,418
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187,974,159
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176,966,032
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Receivables:
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Employer contribution
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117,496
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—
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Employee contribution
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395
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—
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Notes receviable from participants
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5,138,116
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4,857,735
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Total receivables
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5,256,007
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4,857,735
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Net assets reflecting all assets at fair value
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193,230,166
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181,823,767
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Adjustment from fair value to contract value for fully benefit-responsive investment contracts
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(1,736,883
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)
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(1,119,701
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)
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NET ASSETS AVAILABLE FOR BENEFITS
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$
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191,493,283
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$
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180,704,066
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See accompanying notes to financial statements
5
ACCO BRANDS CORPORATION 401(k) PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 2010
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Additions to net assets attributed to:
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Dividend and interest income
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$
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4,695,443
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Net appreciation in fair value of investments
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16,782,477
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Contributions:
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Participant
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7,049,776
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Employer
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3,920,931
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Rollovers
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490,659
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Total contributions
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11,461,366
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Total additions
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32,939,286
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Deductions from net assets attributed to:
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Benefits paid to participants
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22,019,250
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Administrative fees and other
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130,819
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Total deductions
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22,150,069
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Net increase
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10,789,217
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Net assets available for benefits
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Beginning of year
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180,704,066
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End of year
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$
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191,493,283
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See accompanying notes to financial statements
6
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 1 - DESCRIPTION OF THE PLAN
The following description of the ACCO Brands Corporation 401(k) Plan (“the Plan”) is provided for general information purposes only. For a
complete description of the Plan, participants should refer to the specific provisions of the Plan document or to the Prospectus/Summary Plan Description, each of which is available from the plan administrator at 300 Tower Parkway, Lincolnshire,
Illinois 60069.
General:
ACCO Brands Corporation (“the Company” or “ACCO”) established the Plan as of
August 16, 2005, in order to provide for participation by certain employees of ACCO who are paid on a salaried, hourly or commission basis. Employees scheduled to work twenty hours or more per week are immediately eligible to participate.
Employees scheduled to work less than twenty hours per week are eligible after one year of service as defined by the Plan.
The Plan is a
defined contribution plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Fidelity Management Trust Company serves as trustee of the Plan and performs certain recordkeeping and
administrative functions for the Plan.
Significant features of the Plan are as follows:
Contributions
: Each participant may elect to contribute on a pre-tax basis up to 50% of eligible compensation. A participant’s pre-tax
contributions may not exceed the dollar amount provided by the Internal Revenue Code (“the Code”), which was $16,500 for 2010. In addition, participants over 50 years of age may elect up to 25% of eligible compensation as an additional
unmatched, pre-tax catch-up contribution which was limited by the Code to $5,500 in 2010.
The Plan also permits each participant to make
after-tax contributions to the Plan. However, total pre-tax and after-tax contributions may not exceed 50% of the participant’s total eligible compensation.
In addition to the ability to make simultaneous tax deferred and after-tax contributions, the Plan also allows for a participant’s contributions to automatically continue on an after-tax basis once
the pre-tax contribution limit has been reached for that year. Participants, who elect to continue contributing to the Plan on an after-tax basis, will contribute at the same pre-tax contribution percentage that was in effect when the limit was
reached for that year. In determining the amount of pre-tax and after-tax contributions allowed under the Plan, annual compensation limits are imposed by the Code.
New hires who do not decline enrollment in the Plan within 60 days after first becoming eligible to join the plan, will be automatically enrolled in the Plan and a pre-tax contribution of 3% will be
deducted from the participant’s pay and invested in the T. Rowe Price Retirement fund designed for the participant’s age group.
The
Company contributes on behalf of each eligible participant, an amount equal to 100% of the first 3% and 50% of the next 3% of the participant’s contribution up to 6% of eligible compensation. The amount of any Company matching contributions is
subject to certain limitations of the Code. In 2007, the Plan became a safe harbor 401(k) plan. Both Company safe harbor and non-safe harbor matching contributions made to participant accounts are 100% vested and non-forfeitable. Company matching
contributions made in years before 2007 remain subject to the vesting requirements under the Plan.
Effective February 21, 2009, ACCO
Brands Corporation and all other participating employers suspended employer safe harbor matching contributions for all participants in the Plan. Matching contributions were reinstated as of October 16, 2009.
Due to the temporary suspension of employer matching contributions in 2009, the Plan lost its safe harbor status. Effective January 1, 2010, the
Plan once again became a safe harbor 401(k) plan.
(Continued)
7.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 1 - DESCRIPTION OF THE PLAN
(Continued)
The Plan permits the acceptance of an account balance from another tax-qualified plan or certain
individual retirement accounts by means of a direct rollover.
Participant Accounts
: Each participant’s account is credited with
the participant’s contributions and allocations of the Company’s contributions, is adjusted for allocations of the Plan’s investment income (expense) and administrative expenses, and is reduced by the amount of participant
withdrawals. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested balance.
Investment Elections
: Participants direct the investment of their account balance into various investment options offered by the Plan. Except as
may be limited by policies concerning excessive short-term trading, each participant can change the investment percentages or transfer all or part of his/her account from one fund to another on a daily basis. The Plan currently offers, in addition
to the ACCO Brands Stock Fund, which consists of ACCO Brands Corporation common stock and interest-bearing deposit account, the Prudential Stable Value Fund, and various mutual funds as investment options for participants.
Vesting
: Participants are always 100% vested in their own contributions as well as any investment earnings on those contributions. Company safe
harbor and non-safe harbor matching contributions, as well as any investment earnings on those contributions, are 100% vested immediately.
Participant Loans
: Participants may borrow from their fund accounts up to a maximum of the lesser of 50% of their vested account balance or
$50,000. The current minimum loan amount is $1,000 for principal residence loans and $500 for general purpose loans.
Any loans applied for
are also reduced by any other loan outstanding under the Plan within the previous twelve months. The term of any loan shall not exceed five years, unless the loan is related to the purchase of the participant’s principal residence. Principal
residence loans must be repaid within ten years. Participants can have up to three loans outstanding at any one time, one of which may be a principal residence loan.
Each loan bears a rate of interest equal to the prime rate as reported by Reuters, as of the last business day of the month prior to the month in which the loan is made. Each loan must be collateralized
by a portion of the participant’s account balance and documented by a promissory note payable to the trustee which is invested in the loan fund. Repayment is made by payroll deduction for so long as the participant is employed by the Company
and thereafter by regular installment payments. Loan repayments are invested in accordance with the participant’s investment election in effect at the time of repayment. A one-time loan setup fee of $50 is paid by the participant and is
deducted from the participant’s account at the time the loan is processed.
Forfeitures
: Company contributions forfeited by
non-vested terminated participants are retained by the Plan and used to reduce subsequent Company contributions. If a terminated participant returns to the Plan within a specified period of time (generally 5 years), the participant’s previously
forfeited amount will be reinstated to the participant’s account. Forfeitures during the years 2009 and 2010 or as of their year ends were immaterial to the Plan’s financial statements.
Distributions and Withdrawals
: Benefits are payable from a participant’s account under the Plan’s provisions, upon a participant’s
death, retirement or other termination of employment in a lump sum or in installment payments. The Plan also permits withdrawals to be made by participants who have incurred a “hardship” as defined in the Plan or after the attainment of
age 59-1/2. Distributions and withdrawals are recorded when paid.
(Continued)
8.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 1 - DESCRIPTION OF THE PLAN
(Continued)
Plan Termination
: The Company has the right under the Plan to discontinue its contributions at
any time and the Board of Directors of the Company may terminate the Plan at any time subject to the provisions of ERISA and its related regulations. In the event of the Plan’s termination, participants would become 100% vested in their
accounts.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
: The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles.
Investment Valuation and Income Recognition
: The Plan’s investments are stated at fair value (see Note 3).
While Plan investments are presented at fair value in the Statement of Net Assets Available for Benefits, the difference between the fair value of the
Plan’s direct interest in fully benefit-responsive investment contracts and their contract value is presented as an adjustment line in the Statement of Net Assets Available for Benefits. Contract value represents contributions made to the
contract, plus earnings, less participant withdrawals and administrative expenses. Participants in fully benefit-responsive contracts may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. The
Plan holds a direct interest in such contracts through its investment in a stable value fund.
Dividend income is recorded on the ex-dividend
date. Interest income is recorded on an accrual basis. Purchases and sales of securities are recorded on a trade-date basis.
Administrative Expenses
: Investment management expenses incurred by the Plan are netted against earnings prior to allocation to participant
accounts. Transaction charges (for loan and certain benefit payment transactions), short-term trading fees, and certain recordkeeper fees are paid by the Plan by reducing the balances of those participants initiating the transactions. Legal fees
incurred in the administration of the plan have been paid by the Company. Certain other fees incurred in the administration of the Plan, such as audit fees and investment advisory fees, have been paid by the plan.
Use of Estimates
: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires the
Plan’s management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures, and actual results could differ from those estimates.
Risks and Uncertainties
: The Plan invests in registered investment companies, a collective trust fund, a wrapper contract and Company common
stock. These investment securities are exposed to various risks, such as interest rate, liquidity, market, and credit risks. Due to the level of risk associated with certain investment securities and the sensitivity of certain fair value estimates
to changes in valuation assumptions, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statement of net assets
available for benefits and participants’ individual account balances.
Payments of Benefits
: Benefits are recorded when paid.
Adoption of New Accounting Standard
: In September 2010, the FASB amended existing guidance with respect to the reporting of
participant loans for defined contribution pension plans. The guidance requires that loans issued to participants be reported as notes receivable, segregated from plan investments, and be measured at their unpaid principal balances plus accrued
but unpaid interest. This guidance is effective for reporting periods ending after December 15, 2010, and is to be applied retrospectively to all periods presented comparatively. Early application is permitted. The adoption of this guidance by
the Plan resulted in a reclassification from
investments
to
notes
receivable from participant
s of $4,857,735 on the statement of net assets available for benefits as of December 31, 2009. Adoption had no effect on the
Plan’s net assets available for benefits.
(Continued)
9.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
Notes Receivable from Participants
: Notes receivable from participants are reported at their
unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are generally received through payroll deductions and the notes are collateralized by the participants’
account balances.
NOTE 3 - FAIR VALUE MEASUREMENTS
The authoritative guidance for fair value measurements defines fair value as the price that would be received by the Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an
orderly transaction between market participants on the measurement date in the Plan’s principal or most advantageous market for the asset or liability. The authoritative guidance for fair value measurements establishes a fair value hierarchy
which requires the Plan to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical
assets or liabilities (level 1 measurements) and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows:
Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of
the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
In some cases, a valuation technique used to measure fair value may include inputs from multiple levels of the fair value hierarchy. The lowest level of
significant input determines the placement of the entire fair value measurement in the hierarchy.
The following descriptions of the valuation
methods and assumptions used by the Plan to estimate the fair values of investments apply to investments held directly by the Plan.
Mutual
funds and common stock
: The fair values of mutual funds and common stock investments are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs).
Stable value fund:
The Plan’s investments include a synthetic investment contract referenced as the Stable Value Fund which consists of an
investment in a collective trust fund and a wrapper contract with an insurance company. The fair value of the interest in the collective fund is based upon the applicable per unit net asset value reported in the audited financial statements of the
fund (level 2 inputs). The investment objective of the collective trust is to outperform the Barclays Capital U.S. Aggregate Bond Index by 25 basis points over a full market cycle. The fund invests in U.S. Government mortgage backed securities, U.S.
Treasury and Agency obligations, long-term corporate bonds in a variety of industry sectors and a money market account. The collective trust provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice
requirement. The fair value of the associated wrapper contract is based upon a comparison of the cost of the wrapper and current re-bid prices for a similar wrapper contract as of the financial statement date (level 3 inputs). The value of the
wrapper was determined to be zero at December 31, 2010 and 2009.
(Continued)
10.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 3 - FAIR VALUE MEASUREMENTS
(Continued)
The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair
value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following tables set
forth by level, within the fair value hierarchy, the Plan’s assets as of December 31, 2010 and 2009 that are measured at fair value on a recurring basis:
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Fair Value Measurements
at December 31, 2010
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Description
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Level 1
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Level 2
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Level 3
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Total
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Mutual funds
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Lifecycle balanced
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$
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5,781,381
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$
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—
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$
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—
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$
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5,781,381
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Lifecycle equities
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|
$
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19,324,770
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|
|
$
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—
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|
|
$
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—
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|
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$
|
19,324,770
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International equities
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|
$
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14,807,369
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|
|
$
|
—
|
|
|
$
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—
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|
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$
|
14,807,369
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|
|
Domestic equities
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|
$
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94,500,502
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|
|
$
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—
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|
|
$
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—
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$
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94,500,502
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Fixed income
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|
$
|
15,660,466
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|
|
$
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—
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|
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$
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—
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$
|
15,660,466
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Stable Value Fund
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|
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|
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|
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Collective Trust
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$
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—
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$
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34,321,614
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|
|
$
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—
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|
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$
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34,321,614
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Wrapper contract
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|
$
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—
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|
|
$
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—
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|
|
$
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—
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|
|
$
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—
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|
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Company Stock
|
|
$
|
3,578,057
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|
|
$
|
—
|
|
|
$
|
—
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|
|
$
|
3,578,057
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total assets at fair value
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$
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153,652,545
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|
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$
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34,321,614
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|
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$
|
—
|
|
|
$
|
187,974,159
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Fair Value Measurements
at December 31, 2009
|
|
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Description
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|
Level 1
|
|
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Level 2
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|
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Level 3
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Total
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|
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Mutual funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Lifecycle balanced
|
|
$
|
5,232,081
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|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,232,081
|
|
|
Lifecycle equities
|
|
$
|
15,784,785
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,784,785
|
|
|
International equities
|
|
$
|
14,052,988
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,052,988
|
|
|
Domestic equities
|
|
$
|
90,026,271
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
90,026,271
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|
|
Fixed income
|
|
$
|
13,504,966
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,504,966
|
|
|
Stable Value Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collective Trust
|
|
$
|
—
|
|
|
$
|
34,558,523
|
|
|
$
|
—
|
|
|
$
|
34,558,523
|
|
|
Wrapper contract
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Company Stock
|
|
$
|
3,806,418
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,806,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$
|
142,407,509
|
|
|
$
|
34,558,523
|
|
|
$
|
—
|
|
|
$
|
176,966,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
11.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 4 - TAX STATUS
The Internal Revenue Service has determined and informed the Company by letter dated March 6, 2009 that the Plan is designed in accordance with applicable sections of the Code. The plan administrator
believes that the Plan continues to be designed and is currently being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
NOTE 5 - PARTY-IN-INTEREST TRANSACTIONS
Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others. The Company pays certain fees
for the administration of the Plan.
Certain Plan investments are shares of registered investment companies (mutual funds) managed by Fidelity
Investments, an affiliate of Fidelity Management Trust Company. Fidelity Management Trust Company is the trustee as defined by the Plan. Accordingly, these investments qualify as party-in-interest investments. Professional fees and administrative
fees paid by the Plan in 2010 also qualify as party-in-interest transactions. The investment in ACCO Brands Corporation common stock (“ACCO stock”) is also a party-in-interest investment. At December 31, 2010 and 2009, the value of
the ACCO stock held by the Plan within the ACCO Brands Stock Fund was $3,578,057 and $3,806,418, respectively, and the number of shares held was 407,829 and 505,044, respectively.
Participants in the Plan are permitted to borrow funds from their vested balance as described in Note 1. These transactions qualify as party-in-interest transactions.
NOTE 6 - INVESTMENTS
The fair value of
the Plan’s investments that represent 5% or more of the Plan’s net assets available for benefits as of December 31, 2010 and 2009 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
PIMCO Total Return Institutional Index Fund
|
|
$
|
14,397,465
|
|
|
$
|
12,458,072
|
|
|
Vanguard Institutional Index Fund
|
|
|
13,053,347
|
|
|
|
12,018,206
|
|
|
T. Rowe Price Capital Appreciation Fund
|
|
|
22,877,919
|
|
|
|
22,902,386
|
|
|
Royce Value Plus Fund – Service Class
|
|
|
13,832,151
|
|
|
|
13,577,450
|
|
|
Fidelity Contrafund
|
|
|
20,054,046
|
|
|
|
18,676,761
|
|
|
Fidelity Diversified International Fund
|
|
|
10,564,847
|
|
|
|
11,126,024
|
|
|
Prudential Core Conservative Bond Fund
|
|
|
|
|
|
|
|
|
|
(Contract value after consideration of applicable wrapper contract: 2010 - $32,584,731, 2009 - $33,438,822)
|
|
|
34,321,614
|
|
|
|
34,558,523
|
|
(Continued)
12.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 6 - INVESTMENTS
(Continued)
During 2010, the Plan’s investments (including gains and losses on investments bought and sold, as
well as held during the year) appreciated in value by $16,782,477 as follows:
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2010
|
|
|
Mutual funds
|
|
$
|
16,194,930
|
|
|
Company common stock
|
|
|
587,547
|
|
|
|
|
|
|
|
|
Net appreciation
|
|
$
|
16,782,477
|
|
|
|
|
|
|
|
NOTE 7 - INVESTMENT CONTRACT WITH INSURANCE COMPANY
The Plan holds a fully-benefit responsive synthetic investment contract, referenced as the Stable Value Fund, which consists of units of participation in the Core Conservative Bond Fund (a collective
trust fund) managed by Prudential Trust Company and a wrapper contract issued by Prudential Insurance Company of America. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investments from the Stable Value
Fund at contract value due to the contract value guarantee provided to the Plan under the wrapper contract. There are no reserves against the contract value for credit risk of the issuer or otherwise.
There are no events that limit the ability of the plan to transact at contract value as long as the contract remains in force. The investment contract
does specify events which may result in a termination. Such events include plan termination or merger, early retirement incentive, layoffs, etc. Termination of the contract would cause distributions to be payable at fair value. Currently, management
believes that the occurrence of an event that would cause the plan to transact contract distributions at less than contract value is not probable.
The crediting interest rate of the contract is based upon an agreed-upon formula with the issuer, as defined in the contract agreement, but cannot be less than zero. The interest rates are reviewed on a
semi-annual basis for resetting per the contract. The gain or loss in the fair value of the investment contract relative to its contract value is reflected in the Statement of Net Assets Available for Benefits as Adjustment for fair value to
contract value for fully benefit-responsive investment contracts. The key factors that influence future interest crediting rates could include the following: the level of market interest rates; the amount and timing of participant contributions;
transfers and withdrawals into/out of the contracts; and the duration of the underlying investments backing the contracts.
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Average contract yield:
|
|
|
|
|
|
|
|
|
|
Based on annualized earnings
(1)
|
|
|
2.76
|
%
|
|
|
3.44
|
%
|
|
Based on interest rate credited to participants
(2)
|
|
|
4.26
|
%
|
|
|
4.56
|
%
|
|
(1)
|
Computed by dividing the annualized one-day actual earnings of the contracts on the last day of the Plan year by the fair value of the contracts’
investments on the same date.
|
|
(2)
|
Computed by dividing the annualized one-day earnings credited to participants on the last day of the Plan year by the fair value of the contracts’
investments on the same date.
|
(Continued)
13.
ACCO BRANDS CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
NOTE 8 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits and changes in net assets available for benefits per the financial statements to
the Form 5500:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Net assets available for benefits per financial statements
|
|
$
|
191,493,283
|
|
|
$
|
180,704,066
|
|
|
Deemed distributions for participant loans
|
|
|
(73,312
|
)
|
|
|
(112,326
|
)
|
|
Adjustment from fair value to contract value for investment in stable value fund
|
|
|
1,736,883
|
|
|
|
1,119,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits per the Form 5500
|
|
$
|
193,156,854
|
|
|
$
|
181,711,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2010
|
|
|
Increase in net assets available for benefits per the financial statements
|
|
$
|
10,789,217
|
|
|
Change in difference between contract value and estimated fair value of investments in stable value fund
|
|
|
617,182
|
|
|
Deemed distribution of participant loans at end of year
|
|
|
(73,312
|
)
|
|
Deemed distribution of participant loans at beginning of year
|
|
|
112,326
|
|
|
|
|
|
|
|
|
Increase in net assets available for benefits per the Form 5500
|
|
$
|
11,445,413
|
|
|
|
|
|
|
|
14.
SUPPLEMENTAL SCHEDULE
ACCO BRANDS CORPORATION 401(k) PLAN
SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2010
Name of plan sponsor: ACCO Brands Corporation
Employer identification number: 36-2704017
Three-digit plan number: 002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
(b)
Identity of Issue,
Borrower, Lessor
or Similar Party
|
|
(c)
Description of Investment
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value
|
|
(d)
Cost
|
|
|
(e)
Current
Value
|
|
|
|
|
|
|
Mutual Funds
|
|
|
|
|
|
|
|
|
|
|
|
PIMCO
|
|
Total Return Institutional Index Fund
|
|
|
*
|
*
|
|
$
|
14,397,465
|
|
|
|
|
Davis NY
|
|
Davis NY Venture Fund, Inc. Class A
|
|
|
*
|
*
|
|
|
7,549,998
|
|
|
|
|
Vanguard
|
|
Vanguard Institutional Index Fund
|
|
|
*
|
*
|
|
|
13,053,347
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Capital Appreciation Fund
|
|
|
*
|
*
|
|
|
22,877,919
|
|
|
|
|
Lazard
|
|
Lazard Emerging Markets Instl Shares
|
|
|
*
|
*
|
|
|
4,242,522
|
|
|
|
|
Allianz
|
|
Allianz NFJ Dividend Value Fund
|
|
|
*
|
*
|
|
|
3,814,752
|
|
|
|
|
Wells Fargo
|
|
Wells Fargo Adv. Small Cap Value Fund
|
|
|
*
|
*
|
|
|
5,920,723
|
|
|
|
|
Royce
|
|
Royce Value Plus Fund – Service Class
|
|
|
*
|
*
|
|
|
13,832,151
|
|
|
*
|
|
Fidelity Investments
|
|
Fidelity Contrafund
®
|
|
|
*
|
*
|
|
|
20,054,046
|
|
|
|
|
Perkins
|
|
Perkins Mid-Cap Value Fund
|
|
|
*
|
*
|
|
|
5,027,529
|
|
|
|
|
Hartford
|
|
Hartford Midcap Fund Class Y
|
|
|
*
|
*
|
|
|
2,370,037
|
|
|
*
|
|
Fidelity Investments
|
|
Fidelity Diversified International Fund
|
|
|
*
|
*
|
|
|
10,564,847
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2005 Fund
|
|
|
*
|
*
|
|
|
471,983
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2010 Fund
|
|
|
*
|
*
|
|
|
1,588,039
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2015 Fund
|
|
|
*
|
*
|
|
|
3,721,359
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2020 Fund
|
|
|
*
|
*
|
|
|
3,981,148
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2025 Fund
|
|
|
*
|
*
|
|
|
4,046,669
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2030 Fund
|
|
|
*
|
*
|
|
|
4,477,273
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2035 Fund
|
|
|
*
|
*
|
|
|
2,844,860
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2040 Fund
|
|
|
*
|
*
|
|
|
2,828,860
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2045 Fund
|
|
|
*
|
*
|
|
|
1,011,564
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2050 Fund
|
|
|
*
|
*
|
|
|
107,015
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement 2055 Fund
|
|
|
*
|
*
|
|
|
27,381
|
|
|
|
|
T. Rowe Price
|
|
T. Rowe Price Retirement Income Fund
|
|
|
*
|
*
|
|
|
1,263,001
|
|
|
|
|
|
|
Stable Value Fund
|
|
|
|
|
|
|
|
|
|
|
|
Prudential Ins. Co. of America
|
|
Wrapper contract #GA-62068
|
|
|
*
|
*
|
|
|
—
|
|
|
|
|
Prudential Trust Company
|
|
Core Conservative Bond Fund
|
|
|
*
|
*
|
|
|
34,321,614
|
|
|
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
*
|
|
ACCO Brands Corp
|
|
ACCO Brands common stock
|
|
|
*
|
*
|
|
|
3,578,057
|
|
|
|
|
|
|
Participant Loans
|
|
|
|
|
|
|
|
|
|
*
|
|
Participant loans
|
|
3.25% - 10.50%, various maturity dates
|
|
|
*
|
*
|
|
|
5,064,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
193,038,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Denotes party-in-interest.
|
|
**
|
Participant-directed investment. Cost basis disclosure not required.
|
16.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee which administers the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCO Brands Corporation
|
|
|
|
|
|
|
Date: June 27, 2011
|
|
|
|
By:
|
|
/s/ Steven Rubin
|
|
|
|
|
|
|
|
|
|
Steven Rubin, Senior Vice President,
|
|
|
|
|
|
|
|
|
|
Secretary and General Counsel
|
|
|
|
|
|
|
|
|
|
On behalf of the ACCO Brands 401(k) Plan
|
|
|
|
|
|
|
|
|
|
Administrative Committee
|
INDEX TO EXHIBITS
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm — Crowe Horwath LLP*
|
17.
Acco (NYSE:ABD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Acco (NYSE:ABD)
Historical Stock Chart
From Jul 2023 to Jul 2024
