Armstrong Flooring (AFIIQ) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Armstrong Flooring, Inc.
Entity Central Index Key	1,655,075
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		25,827,609

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 309.7	$ 308.5	$ 873.6	$ 871
Cost of goods sold	249.1	276.2	710.9	732.9
Gross profit	60.6	32.3	162.7	138.1
Selling, general and administrative expenses	49.5	49	146.5	152.1
Intangible asset impairment	0	12.5	0	12.5
Operating income (loss)	11.1	(29.2)	16.2	(26.5)
Interest expense	0.9	0.8	2.8	2
Other expense, net	0.9	1	2.2	3.4
Income (loss) before income taxes	9.3	(31)	11.2	(31.9)
Income tax expense (benefit)	1.4	(12.3)	3.2	(10.8)
Net income (loss)	$ 7.9	$ (18.7)	$ 8	$ (21.1)
Basic earnings (loss) per share of common stock
Basic earnings (loss) per share of common stock from continuing operations (in dollars per share)	$ 0.31	$ (0.70)	$ 0.31	$ (0.76)
Diluted earnings (loss) per share of common stock
Diluted earnings (loss) per share of common stock from continuing operations (in dollars per share)	$ 0.30	$ (0.70)	$ 0.31	$ (0.76)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7.9	$ (18.7)	$ 8	$ (21.1)
Changes in other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(4.7)	2.3	(6.2)	5.7
Derivative (loss) gain	(0.6)	(0.6)	1.1	(1.5)
Pension and postretirement adjustments	0.7	(2.6)	5.3	(0.2)
Total other comprehensive (loss) income	(4.6)	(0.9)	0.2	4
Total comprehensive income (loss)	$ 3.3	$ (19.6)	$ 8.2	$ (17.1)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 39.4	$ 39
Accounts and notes receivable, net	115.9	79.7
Inventories, net	266.6	236
Income tax receivable	0.9	3.8
Total	22.5	31.8
Total current assets	445.3	390.3
Property, plant, and equipment, less accumulated depreciation and amortization of $425.4 and $399.3, respectively	398.9	418.1
Intangible assets, less accumulated amortization of $11.8 and $6.4, respectively	55.4	60.4
Deferred income taxes	3.3	3.4
Other noncurrent assets	7.8	7.3
Total assets	910.7	879.5
Current liabilities:
Current installments of long-term debt	0.2	0
Accounts payable and accrued expenses	169.8	150.2
Income tax payable	1	0.8
Total current liabilities	171	151
Long-term debt	94.6	86
Postretirement benefit liabilities	68.7	72.7
Pension benefit liabilities	2.6	5.7
Noncurrent income taxes payable	0.3	0.3
Deferred income taxes	7.2	4.4
Other long-term liabilities	9.5	9.4
Total liabilities	353.9	329.5
Stockholders’ equity:
Common stock with par value $.0001 per share: 100,000,000 shares authorized; 28,279,187 issued and 25,827,022 outstanding shares as of September 30, 2018 and 28,183,218 issued and 25,734,222 outstanding shares as of December 31, 2017	0	0
Preferred stock with par value $.0001 per share: 15,000,000 shares authorized; none issued	0	0
Treasury stock, at cost, 2,452,165 shares as of September 30, 2018 and 2,448,996 shares as of December 31, 2017	(39.7)	(39.9)
Additional paid-in capital	676.7	674.2
Accumulated deficit	(15.3)	(31.8)
Accumulated other comprehensive loss	(64.9)	(52.5)
Total stockholders’ equity	556.8	550
Total liabilities and stockholders’ equity	$ 910.7	$ 879.5

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Property, plant, and equipment, accumulated depreciation and amortization	$ 425.4	$ 399.3
Finite-lived intangibles, accumulated amortization	$ 11.8	$ 6.4
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	28,279,187	28,183,218
Common stock, outstanding (in shares)	25,827,022	25,734,222
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	0	0
Treasury stock (in shares)	2,452,165	2,448,996

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Net AWI Investment	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss)	(Accumulated Deficit)
Beginning balance at Dec. 31, 2016	$ 623.5	$ 0	$ 0	$ 0	$ 673.3	$ (59.8)	$ 10
Beginning balance (in shares) at Dec. 31, 2016		27,895,671	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7.8)						(7.8)
Repurchase of common stock	(4.9)		$ (4.9)
Repurchase of common stock (in shares)		(267,212)	267,212
Stock-based employee compensation, net	1.1		$ 0		1.1
Stock-based employee compensation, net (in shares)		201,750	0
Net transfers to AWI	(1.3)			(1.3)
Reclassification of net parent investment to additional paid-in capital	0			1.3	(1.3)
Other comprehensive income (loss)	2.3					2.3
Ending balance at Mar. 31, 2017	612.9	$ 0	$ (4.9)	0	673.1	(57.5)	2.2
Ending balance (in shares) at Mar. 31, 2017		27,830,209	267,212
Beginning balance at Dec. 31, 2016	623.5	$ 0	$ 0	0	673.3	(59.8)	10
Beginning balance (in shares) at Dec. 31, 2016		27,895,671	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(21.1)
Other comprehensive income (loss)	4					4
Ending balance at Sep. 30, 2017	569	$ 0	$ (39.9)	0	675.8	(55.8)	(11.1)
Ending balance (in shares) at Sep. 30, 2017		25,724,685	2,448,996
Beginning balance at Mar. 31, 2017	612.9	$ 0	$ (4.9)	0	673.1	(57.5)	2.2
Beginning balance (in shares) at Mar. 31, 2017		27,830,209	267,212
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5.4						5.4
Repurchase of common stock	(9.5)		$ (9.5)
Repurchase of common stock (in shares)		(516,406)	516,406
Stock-based employee compensation, net	0.8		$ 0.1		0.7
Stock-based employee compensation, net (in shares)		67,843	(6,608)
Net transfers to AWI	(0.2)			(0.2)
Reclassification of net parent investment to additional paid-in capital	0			0.2	(0.2)
Other comprehensive income (loss)	2.6					2.6
Ending balance at Jun. 30, 2017	612	$ 0	$ (14.3)	0	673.6	(54.9)	7.6
Ending balance (in shares) at Jun. 30, 2017		27,381,646	777,010
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(18.7)						(18.7)
Repurchase of common stock	(25.6)		$ (25.6)
Repurchase of common stock (in shares)		(1,671,986)	1,671,986
Stock-based employee compensation, net	1.5		$ 0		1.5
Stock-based employee compensation, net (in shares)		15,025	0
Net transfers to AWI	0.7			0.7
Reclassification of net parent investment to additional paid-in capital	0			(0.7)	0.7
Other comprehensive income (loss)	(0.9)					(0.9)
Ending balance at Sep. 30, 2017	569	$ 0	$ (39.9)	$ 0	675.8	(55.8)	(11.1)
Ending balance (in shares) at Sep. 30, 2017		25,724,685	2,448,996
Beginning balance at Dec. 31, 2017	550	$ 0	$ (39.9)		674.2	(52.5)	(31.8)
Beginning balance (in shares) at Dec. 31, 2017		25,734,222	2,448,996
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption of ASU 2018-02 related to tax reform as of January 1						(12.6)
Cumulative effect of adoption of ASU 2018-02 related to tax reform as of January 1 | Accounting Standards Update 2018-02	0					(12.6)	12.6
Beginning balance at Dec. 31, 2017	550	$ 0	$ (39.9)		674.2	(52.5)	(31.8)
Beginning balance (in shares) at Dec. 31, 2017		25,734,222	2,448,996
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(10.4)						(10.4)
Repurchase of common stock	(1)		$ (1)
Repurchase of common stock (in shares)		(69,353)	69,353
Stock-based employee compensation, net	0.9	$ 0	$ 1		(0.1)
Stock-based employee compensation, net (in shares)		77,258	(52,486)
Other comprehensive income (loss)	7.6					7.6
Ending balance at Mar. 31, 2018	543	$ 0	$ (39.9)		674.1	(57.5)	(33.7)
Ending balance (in shares) at Mar. 31, 2018		25,742,127	2,465,863
Beginning balance at Dec. 31, 2017	550	$ 0	$ (39.9)		674.2	(52.5)	(31.8)
Beginning balance (in shares) at Dec. 31, 2017		25,734,222	2,448,996
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	8
Other comprehensive income (loss)	0.2					0.2
Ending balance at Sep. 30, 2018	556.8	$ 0	$ (39.7)		676.7	(64.9)	(15.3)
Ending balance (in shares) at Sep. 30, 2018		25,827,022	2,452,165
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption of ASC 606 new revenue recognition standard as of January 1 | Accounting Standards Update 2014-09	(4.1)						(4.1)
Beginning balance at Mar. 31, 2018	543	$ 0	$ (39.9)		674.1	(57.5)	(33.7)
Beginning balance (in shares) at Mar. 31, 2018		25,742,127	2,465,863
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	10.5						10.5
Stock-based employee compensation, net	1.1	$ 0	$ 0.2		0.9
Stock-based employee compensation, net (in shares)		29,313	(13,698)
Other comprehensive income (loss)	(2.8)					(2.8)
Ending balance at Jun. 30, 2018	551.8	$ 0	$ (39.7)		675	(60.3)	(23.2)
Ending balance (in shares) at Jun. 30, 2018		25,771,440	2,452,165
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7.9						7.9
Stock-based employee compensation, net	1.7	$ 0	$ 0		1.7
Stock-based employee compensation, net (in shares)		55,582	0
Other comprehensive income (loss)	(4.6)					(4.6)
Ending balance at Sep. 30, 2018	$ 556.8	$ 0	$ (39.7)		$ 676.7	$ (64.9)	$ (15.3)
Ending balance (in shares) at Sep. 30, 2018		25,827,022	2,452,165

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 8	$ (21.1)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	42.3	59.9
Intangible asset impairment	0	12.5
Deferred income taxes	1.5	(5.2)
Stock-based compensation	3.6	3.8
U.S. pension expense	5.1	6.7
Other non-cash adjustments, net	0.6	(1)
Changes in operating assets and liabilities:
Receivables	(41.3)	(7.8)
Inventories	(31.7)	9.9
Accounts payable and accrued expenses	24.5	(2.8)
Income taxes payable	3.4	(3.1)
Other assets and liabilities	1.8	(5.6)
Net cash provided by operating activities	17.8	46.2
Cash flows from investing activities:
Purchases of property, plant and equipment	(24.3)	(33.5)
Cash paid for acquisition	0	(36.1)
Other investing activities	0.1	0.3
Net cash used for investing activities	(24.2)	(69.3)
Cash flows from financing activities:
Proceeds from revolving credit facility	57	90
Payments on revolving credit facility	(48)	(15)
Payments on capital lease	(0.2)	(0.1)
Purchases of treasury stock	(1)	(40)
Proceeds from exercised stock options	0.7	1.4
Value of shares withheld related to employee tax withholding	(0.6)	(1.8)
Net cash provided by financing activities	7.9	34.5
Effect of exchange rate changes on cash and cash equivalents	(1.1)	1.6
Net increase in cash and cash equivalents	0.4	13
Cash and cash equivalents at beginning of year	39	30.6
Cash and cash equivalents at end of period	39.4	43.6
Supplemental Cash Flow Disclosure:
Amounts in accounts payable for capital expenditures	5.2	6.2
Interest paid	2.3	1.9
Income taxes (refunded) paid, net	$ (1.6)	$ (3.1)

Business and Basis of Presentat

Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Basis of Presentation	BUSINESS AND BASIS OF PRESENTATION Background Armstrong Flooring, Inc. (“AFI”) is a leading global producer of flooring products for use primarily in the construction and renovation of residential, commercial and institutional buildings. AFI designs, manufactures, sources and sells resilient and wood flooring products in North America and the Pacific Rim. When we refer to "AFI," "the Company," "we," "our," and "us" in this report, we are referring to Armstrong Flooring, Inc., a Delaware corporation, and its consolidated subsidiaries. On April 1, 2016, we became an independent company as a result of the separation by Armstrong World Industries, Inc. ("AWI"), a Pennsylvania corporation, of its Resilient Flooring and Wood Flooring segments from its Building Products segment (the "Separation"). The Separation was effected by allocating the assets and liabilities related primarily to the Resilient Flooring and Wood Flooring segments to AFI and then distributing the common stock of AFI to AWI’s shareholders (the "Distribution"). The Separation and Distribution (together, the "Spin-off") resulted in AFI and AWI becoming two independent, publicly traded companies, with AFI owning and operating the Resilient Flooring and Wood Flooring segments and AWI continuing to own and operate a ceilings business. Basis of Presentation These Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including certain asset values, allowances for bad debts, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, workers compensation, general liability and environmental claims and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information. Management may confer with outside parties, including outside counsel. Actual results may differ from these estimates. In the opinion of management, all adjustments of a normal, recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the three and nine months ended September 30, 2018 and 2017 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in economic conditions between periods. Certain amounts in the prior year’s Condensed Consolidated Financial Statements and related notes thereto have been recast to conform to the 2018 presentation. Otherwise, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2017 . These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . All significant intercompany transactions within AFI have been eliminated from the Condensed Consolidated Financial Statements. Recently Adopted Accounting Standards On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, " Revenue from Contracts with Customers," and all the related amendments. The impact of the standard is limited to our accounting for warranties and returns. We adopted the standard using the modified retrospective transition method and we recorded a cumulative catch up adjustment to increase accumulated deficit in the amount of $4.1 million , increased prepaid expenses and other current assets by $0.4 million and decreased accounts receivable, net by $4.5 million . The adoption of the standard did not have a material impact on our results of operations or cash flows, but did result in new disclosures. On January 1, 2018, we adopted Accounting Standards Update ("ASU") 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably, this new guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Adoption did not have a material impact on our financial condition, results of operations or statement of cash flows. On January 1, 2018, we adopted ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The guidance requires entities to recognize income tax consequences of many intercompany asset transfers other than inventory at the transaction date. Adoption of this standard did not have a material impact on our financial condition, results of operations, or statement of cash flows. On January 1, 2018, we adopted ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The guidance requires the service cost component of net periodic benefit cost to be presented in the income statement line items with compensation cost and all other components of net periodic benefit cost to be presented outside of operating income. Previously, all components of net periodic benefit cost were recorded within cost of goods sold and selling, general and administrative ("SG&A") expense. We applied this standard retrospectively in the period of adoption. The tables below present the impact of adoption on our results of operations: Three Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 276.8 $ (0.6 ) $ 276.2 Selling, general and administrative expenses 49.3 (0.3 ) 49.0 Operating (loss) (30.1 ) 0.9 (29.2 ) Other expense, net 0.1 0.9 1.0 Nine Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 735.1 $ (2.2 ) $ 732.9 Selling, general and administrative expenses 153.2 (1.1 ) 152.1 Operating (loss) (29.8 ) 3.3 (26.5 ) Other expense, net 0.1 3.3 3.4 ASU 2017-07 does not impact our financial condition or statement of cash flows. On January 1, 2018, we early adopted ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and it requires the presentation of all items that affect earnings in the same income statement line as the hedged item. This standard did not have a material impact on our financial condition, results of operations or statement of cash flows. On January 1, 2018, we early adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The guidance permits entities to reclassify tax effects stranded in accumulated other comprehensive income (loss) as a result of tax reform to retained earnings. We applied this standard in the period of adoption and we reclassified $12.6 million from accumulated other comprehensive (loss) into accumulated deficit. There will be no impact on results of operations or statement of cash flows. In March 2018, the FASB issued ASU 2018-05, "Income Taxes." This guidance addresses the recognition of taxes payable or refundable for the current year and the recognition of deferred tax liabilities and deferred tax assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. This guidance was effective immediately upon issuance. The adoption did not have a material impact on our financial condition, results of operations or statement of cash flows. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." The guidance, and subsequent amendments issued, requires a lessee to recognize the assets and liabilities that arise from a lease agreement. Specifically, this new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term, with limited exceptions. This new guidance is effective for annual reporting periods beginning after December 15, 2018 and must be adopted under a modified retrospective basis. The FASB allows companies transition and practical expedient elections to simplify the transition of the new standard. We have elected the following: • We have elected to not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. • We have elected to use the hindsight practical expedient with respect to determining the lease term allowing us to consider the actual outcome of lease renewals, termination options, and purchase options and in assessing impairment of right-of-use assets for existing leases. • We have elected to combine lease and non-lease components as a single component and account for it as a lease for all asset classes excluding real estate. • We have elected to use a portfolio approach to determine the discount rate. Upon adoption, we will record the right-of-use assets and the lease liabilities related to our operating leases with a lease term in excess of one year. Based on our assessment to date, we expect adoption of the standard will have a material increase in our lease related assets and liabilities on our Consolidated Balance Sheet. We do not believe there will be a material impact on results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-13, " Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. " The guidance eliminates, adds and modifies certain disclosure requirements. This new guidance is effective for fiscal year beginning after December 15, 2019 for public companies. Early adoption is permitted for either the entire standard or provisions that eliminate or modify requirements. Adoption of the standard will not impact our financial condition, results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-14, " Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The guidance changes the disclosure requirements by eliminating certain disclosures that are no longer considered cost beneficial and added new ones that are considered pertinent. The guidance is effective for fiscal years ending December 15, 2020 for public companies. Early adoption is permitted. Adoption of the standard will not impact our financial condition, results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-15, " Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal use software license. Capitalized implementation costs should be amortized over the term of the service agreement on a straight line basis and should be assessed for impairment in a manner similar to long-lived assets. This new guidance is effective for fiscal years beginning after December 15, 2019 for public companies. Early adoption is permitted. We are continuing to evaluate the impact the adoption of this standard will have on our financial condition, results of operations and statement of cash flows.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION Resilient Flooring — Our Resilient Flooring segment designs, manufactures, sources and sells a broad range of floor coverings primarily for homes and commercial buildings under various brands, including the Armstrong brand. Manufactured products in this segment include luxury vinyl tile ("LVT"), vinyl sheet, and vinyl tile flooring. In addition, our Resilient Flooring segment sources and sells LVT products, vinyl sheet products, and laminate products, as well as installation and maintenance materials and accessories. Resilient Flooring products are offered in a wide variety of designs, colors and installation options. We sell these products to independent wholesale flooring distributors, large home centers, retailers, flooring contractors and to the manufactured homes industry, and through secured specifications for these products through architects, designers and end-users. When market conditions and available capacity warrant, we also provide products on an original equipment manufacturer (“OEM”) basis to other flooring companies. Late in 2017, we began migrating a portion of our laminate business to a licensing model in place of the current sourcing model. Wood Flooring — Our Wood Flooring segment designs, manufactures, sources and sells branded hardwood flooring products, including the Armstrong and Bruce brands, for use in residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices. The product offering includes pre-finished solid and engineered wood floors in various wood species and dimensions, as well as related accessories. Our Wood Flooring products are generally sold to independent wholesale flooring distributors, large home centers, retailers and flooring contractors, and through secured specifications with regional and national builders. When market conditions and available capacity warrant, we may also provide products on an OEM basis to other flooring companies. The following tables summarize segment performance: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net sales to external customers Resilient Flooring $ 208.1 $ 194.4 $ 571.5 $ 542.7 Wood Flooring 101.6 114.1 302.1 328.3 Total net sales to external customers $ 309.7 $ 308.5 $ 873.6 $ 871.0 Operating income (loss) Resilient Flooring $ 10.7 $ 9.3 $ 16.3 $ 18.8 Wood Flooring 0.4 (38.5 ) (0.1 ) (45.3 ) Total operating income (loss) $ 11.1 $ (29.2 ) $ 16.2 $ (26.5 ) The following table summarizes segment assets: September 30, 2018 December 31, 2017 Assets Resilient Flooring $ 577.9 $ 547.6 Wood Flooring 289.8 286.3 Unallocated 43.0 45.6 Total assets $ 910.7 $ 879.5 Unallocated assets primarily consist of cash and deferred income taxes. Segment operating income is the measure of segment profit reviewed by our Chief Executive Officer who is our Chief Operating Decision Maker. The sum of the segments’ operating income (loss) equals the total combined operating income (loss) as reported on our Condensed Consolidated Statements of Operations. The following reconciles our total operating income (loss) to income before income taxes, which are only measured and managed on a combined basis: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating income (loss) $ 11.1 $ (29.2 ) $ 16.2 $ (26.5 ) Interest expense 0.9 0.8 2.8 2.0 Other expense, net 0.9 1.0 2.2 3.4 Income (loss) before income taxes $ 9.3 $ (31.0 ) $ 11.2 $ (31.9 ) Our indefinite-lived intangible assets are primarily trademarks and brand names, with Bruce representing the largest asset, all of which are integral to our corporate identity and expected to contribute indefinitely to our corporate cash flows, which is why they have been assigned an indefinite life. We conduct our annual impairment test for indefinite-lived intangible assets during the fourth quarter. However, during the third quarter of 2017, we conducted an interim impairment test for indefinite-lived intangible assets within our Wood Flooring segment due to our decision to cease operations at two Wood Flooring manufacturing plants in response to a decline in sales. As a result of this testing, we recorded an impairment charge of $12.5 million for our Bruce trademark during the third quarter of 2017.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE We recognize revenue when control of the promised goods is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Our primary performance obligation to our customers is the delivery of flooring products pursuant to purchase orders. Control of the products we sell transfers to our customers at the point in time when the goods are shipped. Our standard sales terms are primarily Free On Board (“FOB”) shipping point. Our typical payment terms are 30 days and our sales arrangements do not contain any significant financing component for our customers. Our customer arrangements do not generate contract assets or liabilities that are material to the condensed consolidated financial statements. Each purchase order sets forth the transaction price for the products purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, some of which depend upon our customers meeting specified performance criteria, such as a purchasing level over a period of time. We use judgment to estimate the most likely amount of variable consideration at each reporting date. We provide our customers with a product warranty that provides assurance that the products we sell meet standard specifications and are free of defects. We maintain a reserve for claims incurred under our standard product warranty programs. We allocate a portion of the transaction price for each sale to our performance obligation to provide service type warranties to our customers. We generally do not incur any incremental costs to obtain or fulfill our customer contracts that require capitalization and expense such costs as incurred when the amortization period is less than one year. We treat shipping and handling that occurs after our customer obtains control of the products as a fulfillment activity and not as a promised service. Shipping and handling costs are reflected as a component of cost of goods sold. We disaggregate revenue based on customer geography and segment as these categories represent the most appropriate depiction of how the nature, timing and uncertainty of revenues and cash flows are impacted by economic factors. See Note 2 to the Condensed Consolidated Financial Statements for our revenues disaggregated by operating segment. The following table presents our revenues disaggregated by geographic area based upon the location of the customer. Three Months Ended Nine Months Ended 2018 2018 Net sales United States $ 261.2 $ 737.0 Canada 15.9 51.7 China 21.5 49.9 Other 11.1 35.0 Total net sales $ 309.7 $ 873.6

Plant Closure Expenses

Plant Closure Expenses	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
Plant Closure Expenses	PLANT CLOSURE EXPENSES In the third quarter of 2017, our board of directors approved the closure of two Wood Flooring segment manufacturing facilities, including a solid wood plant in Jackson, Tennessee and an engineered wood plant in Vicksburg, Mississippi (the "Wood Plant Closures"), in response to a decline in sales. The Wood Plant Closures were completed in the fourth quarter of 2017 and resulted in the separation of approximately 300 employees. As part of these activities, we incurred expenses consisting of employee separation and other direct exit costs, accelerated depreciation and other incremental costs. We expect to incur approximately $0.4 million of additional pre-tax cash expenses in the remainder of 2018. The following table details expenses related to the Wood Plant Closures: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash expenses Severance and employee benefit costs $ — $ 1.1 $ — $ 1.1 Decommissioning costs 0.2 1.0 1.2 1.0 Contract termination costs 0.2 0.6 0.7 0.6 Total cash expenses 0.4 2.7 1.9 2.7 Non-cash expenses Accelerated depreciation — 18.7 — 18.7 Asset write-downs & other non-cash exit costs — 2.3 — 2.3 Total non-cash expenses — 21.0 — 21.0 Total $ 0.4 $ 23.7 $ 1.9 $ 23.7 OTHER SEVERANCE EXPENSE In the first quarter of 2018, we announced that we were changing our residential go-to-market strategy and empowering our distributors with the responsibilities of marketing, merchandising and direct sales representation. The new structure was designed to provide enhanced support and responsiveness to retailers. As a result of the reorganization, approximately 70 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $3.1 million primarily in SG&A expenses, of which $1.9 million and $1.2 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively. In the first quarter of 2017, we announced the combination of our commercial and residential go-to-market structures and related organization. The new structure was designed to provide enhanced support and responsiveness to retailers and contractors and to foster greater alignment with distributors, which cover both commercial and residential markets. As a result of this reorganization, approximately 40 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $4.6 million in SG&A expenses as a result of this reorganization, of which $2.7 million and $1.9 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively

Other Severance Expense

Other Severance Expense	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
Other Severance Expense	PLANT CLOSURE EXPENSES In the third quarter of 2017, our board of directors approved the closure of two Wood Flooring segment manufacturing facilities, including a solid wood plant in Jackson, Tennessee and an engineered wood plant in Vicksburg, Mississippi (the "Wood Plant Closures"), in response to a decline in sales. The Wood Plant Closures were completed in the fourth quarter of 2017 and resulted in the separation of approximately 300 employees. As part of these activities, we incurred expenses consisting of employee separation and other direct exit costs, accelerated depreciation and other incremental costs. We expect to incur approximately $0.4 million of additional pre-tax cash expenses in the remainder of 2018. The following table details expenses related to the Wood Plant Closures: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash expenses Severance and employee benefit costs $ — $ 1.1 $ — $ 1.1 Decommissioning costs 0.2 1.0 1.2 1.0 Contract termination costs 0.2 0.6 0.7 0.6 Total cash expenses 0.4 2.7 1.9 2.7 Non-cash expenses Accelerated depreciation — 18.7 — 18.7 Asset write-downs & other non-cash exit costs — 2.3 — 2.3 Total non-cash expenses — 21.0 — 21.0 Total $ 0.4 $ 23.7 $ 1.9 $ 23.7 OTHER SEVERANCE EXPENSE In the first quarter of 2018, we announced that we were changing our residential go-to-market strategy and empowering our distributors with the responsibilities of marketing, merchandising and direct sales representation. The new structure was designed to provide enhanced support and responsiveness to retailers. As a result of the reorganization, approximately 70 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $3.1 million primarily in SG&A expenses, of which $1.9 million and $1.2 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively. In the first quarter of 2017, we announced the combination of our commercial and residential go-to-market structures and related organization. The new structure was designed to provide enhanced support and responsiveness to retailers and contractors and to foster greater alignment with distributors, which cover both commercial and residential markets. As a result of this reorganization, approximately 40 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $4.6 million in SG&A expenses as a result of this reorganization, of which $2.7 million and $1.9 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The following table presents details related to our income taxes: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Income (loss) before income taxes $ 9.3 $ (31.0 ) $ 11.2 $ (31.9 ) Income tax expense (benefit) 1.4 (12.3 ) 3.2 (10.8 ) Effective tax rate 15.1 % 39.7 % 28.6 % 33.9 % The effective tax rate for the third quarter of 2018 was lower versus the comparable 2017 period primarily due to geographic distribution of earnings as well as the reduction in the U.S. federal corporate tax rate. The effective tax rate for the first nine months of 2018 was lower than the comparable period in 2017 primarily due to geographic distribution of earnings as well as the reduction in the U.S. federal corporate tax rate. Upon audit, taxing authorities may challenge all or part of an uncertain income tax position. While AFI has no history of tax audits on a stand-alone basis, AWI was routinely audited by U.S. federal, state and local, and non-U.S. taxing authorities. Accordingly, AFI regularly assesses the outcome of potential examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded. We do not expect to record any material changes during 2018 to AFI's unrecognized tax benefits as of December 31, 2017 . As of September 30, 2018 , we consider foreign unremitted earnings to be permanently reinvested. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Reform Act"). The Tax Reform Act made broad and complex changes to the U.S. tax code that will affect our fiscal year ending December 31, 2018, including, but not limited to, reducing the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, limiting the carryover of net operating losses to 80% of taxable income, and modifying the deductibility of certain expenses. We recognized the income tax effects of the Tax Reform Act in our 2017 consolidated financial statements in accordance with SAB No. 118, which provides SEC staff guidance for the application of ASC Topic 740, " Income Taxes ," in the reporting period in which the Tax Reform Act was signed into law. We continue to analyze the different aspects of the Tax Reform Act which could potentially affect the provisional estimates that were recorded at December 31, 2017. Adjustments may be made as a result of future changes in interpretation, information available, assumptions made by us, issuance of additional guidance and the completion of our 2017 tax return filings. As of September 30, 2018 , we have booked an additional $0.1 million of tax expense due to the impact of filing our 2017 U.S. Federal Tax Return. We currently anticipate finalizing and recording any additional resulting adjustments by the end of fiscal year 2018.

Earnings (Loss) Per Share of Co

Earnings (Loss) Per Share of Common Stock	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings (Loss) Per Share of Common Stock	EARNINGS (LOSS) PER SHARE OF COMMON STOCK The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings (loss) per share calculations for the periods indicated. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Numerator Net income (loss) $ 7.9 $ (18.7 ) $ 8.0 $ (21.1 ) Denominator Weighted average number of common shares outstanding 25,793,019 26,648,693 25,763,550 27,398,673 Weighted average number of vested shares not yet issued 202,761 162,153 182,091 128,778 Weighted average number of common shares outstanding - Basic 25,995,780 26,810,846 25,945,641 27,527,451 Dilutive stock-based compensation awards outstanding 187,067 — 128,635 — Weighted average number of common shares outstanding - Diluted 26,182,847 26,810,846 26,074,276 27,527,451 For the three and nine months ended September 30, 2018 , the diluted earnings per share was calculated using net income available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period, determined using the treasury stock method. For the three and nine months ended September 30, 2017 , diluted loss per share was calculated using basic common shares outstanding, as inclusion of potentially dilutive common shares would be anti-dilutive. Performance-based employee compensation awards are considered potentially dilutive in the initial period in which the performance conditions are met. The following awards were excluded from the computation of diluted earnings (loss) per share: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive 111,556 624,305 514,910 665,842 Performance awards excluded from diluted computation, as performance conditions not met 1,003,486 853,974 1,021,883 842,428

Accounts and Notes Receivable

Accounts and Notes Receivable	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Accounts and Notes Receivable	ACCOUNTS AND NOTES RECEIVABLE The following table presents accounts and note receivables, net of allowances: September 30, 2018 December 31, 2017 Customer receivables $ 130.2 $ 90.8 Miscellaneous receivables 4.7 4.0 Less: allowance for product claims, discounts, returns and losses (19.0 ) (15.1 ) Total $ 115.9 $ 79.7 Generally, we sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions. We consider these factors and the financial condition of each customer when establishing our allowance for losses from doubtful accounts. Allowance for product claims represents expected reimbursements for cost associated with warranty repairs and customer accommodation claims, the majority of which is provided to our independent distributors through a credit against accounts receivable from the distributor to AFI. The following table summarizes the activity for the allowance for product claims: Nine Months Ended September 30, 2018 2017 Balance as of January 1, $ (7.7 ) $ (7.5 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 (2.8 ) — Reductions for payments 8.7 9.2 Current year claim accruals (6.4 ) (9.9 ) Balance as of September 30, $ (8.2 ) $ (8.2 )

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	INVENTORIES The following table presents details related to our inventories, net: September 30, 2018 December 31, 2017 Finished goods $ 161.6 $ 145.3 Goods in process 11.9 14.2 Raw materials and supplies 93.1 76.5 Total $ 266.6 $ 236.0

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	PREPAID EXPENSES AND OTHER CURRENT ASSETS The following table presents details related to our prepaid expenses and other current assets: September 30, 2018 December 31, 2017 Prepaid expenses $ 6.5 $ 15.4 Merchandising materials 13.0 14.4 Other 3.0 2.0 Total $ 22.5 $ 31.8

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following table details amounts related to our accounts payable and accrued expenses: September 30, 2018 December 31, 2017 Payables, trade and other $ 127.8 $ 115.8 Employment costs 23.3 16.5 Other accrued expenses 18.7 17.9 Total $ 169.8 $ 150.2

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Programs	9 Months Ended
	Sep. 30, 2018
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefit Programs	PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS The following table summarizes our pension and postretirement expense: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Defined-benefit pension, U.S. Service cost $ 1.0 $ 1.4 $ 2.9 $ 4.1 Interest cost 3.7 3.8 11.0 11.6 Expected return on plan assets (5.6 ) (5.7 ) (16.7 ) (16.9 ) Amortization of prior service cost — 0.1 — 0.3 Amortization of net actuarial loss 2.6 2.6 8.0 7.7 Total, defined-benefit pension, U.S. $ 1.7 $ 2.2 $ 5.2 $ 6.8 Defined-benefit pension, Canada Interest cost $ 0.1 $ 0.2 $ 0.4 $ 0.5 Expected return on plan assets (0.2 ) (0.3 ) (0.6 ) (0.7 ) Amortization of net actuarial loss 0.1 — 0.2 0.1 Total, defined-benefit pension, Canada $ — $ (0.1 ) $ — $ (0.1 ) Defined-benefit postretirement, U.S. Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 0.7 0.8 2.0 2.5 Amortization of net actuarial gains (0.6 ) (0.6 ) (1.9 ) (1.8 ) Total, defined-benefit postretirement, U.S. $ 0.2 $ 0.3 $ 0.4 $ 1.0

Common Stock Repurchase Plan

Common Stock Repurchase Plan	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Common Stock Repurchase Plan	COMMON STOCK REPURCHASE PLAN On March 6, 2017, we announced that our board of directors had approved a share repurchase program pursuant to which we are authorized to repurchase up to $50.0 million of our outstanding shares of common stock (the “Program”). Repurchases under the Program may be made through open market and block transactions, including Rule 10b5-1 plans, at such times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. The Program does not obligate us to repurchase any particular amount of common stock and may be suspended or discontinued at any time without notice. During the nine months ended September 30, 2018 , we repurchased approximately 69,000 shares under the Program for a total cost of $1.0 million , or an average price of $14.20 per share. From inception of the Program through September 30, 2018 , we have repurchased 2.5 million shares under the Program for a total cost of $41.0 million , or an average price of $16.23 per share.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the activity, by component, related to the change in AOCI. Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2017 $ 7.7 $ (1.0 ) $ (59.2 ) $ (52.5 ) Cumulative effect of adoption of ASU 2018-02 as of January 1 — 0.1 (12.7 ) (12.6 ) Other comprehensive (loss) income before reclassifications, net of tax impact of $- , ($0.3), $0.3, and $- (6.2 ) 0.7 0.3 (5.2 ) Amounts reclassified from accumulated other comprehensive income — 0.4 5.0 5.4 Net current period other comprehensive (loss) income (6.2 ) 1.1 5.3 0.2 Balance, September 30, 2018 $ 1.5 $ 0.2 $ (66.6 ) $ (64.9 ) Balance, December 31, 2016 $ 0.5 $ 0.5 $ (60.8 ) $ (59.8 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , $1.1, ($0.4), and $0.7 5.7 (1.7 ) (4.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income — 0.2 4.1 4.3 Net current period other comprehensive income (loss) 5.7 (1.5 ) (0.2 ) 4.0 Balance, September 30, 2017 $ 6.2 $ (1.0 ) $ (61.0 ) $ (55.8 ) The amounts reclassified from AOCI and the affected line item of the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the table below. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ — $ — $ — Cost of goods sold Foreign exchange contracts - sales — 0.3 0.5 0.3 Net sales Total (income) expense before tax (0.1 ) 0.3 0.5 0.3 Tax impact — (0.1 ) (0.1 ) (0.1 ) Income tax expense (benefit) Total (income) expense, net of tax (0.1 ) 0.2 0.4 0.2 Pension and postretirement adjustments Prior service cost amortization — 0.1 — 0.3 Other expense, net Amortization of net actuarial loss 2.1 2.0 6.3 6.0 Other expense, net Total expense before tax 2.1 2.1 6.3 6.3 Tax impact (1.7 ) (0.7 ) (1.3 ) (2.2 ) Income tax expense (benefit) Total expense, net of tax 0.4 1.4 5.0 4.1 Total reclassifications for the period $ 0.3 $ 1.6 $ 5.4 $ 4.3

Litigation and Related Matters

Litigation and Related Matters	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Litigation and Related Matters	LITIGATION AND RELATED MATTERS Environmental Matters Environmental Compliance Our manufacturing and research facilities are affected by various federal, state and local requirements relating to the discharge of materials and the protection of the environment. We make expenditures necessary for compliance with applicable environmental requirements at each of our operating facilities. These regulatory requirements continually change, therefore we cannot predict with certainty future expenditures associated with compliance with environmental requirements. Environmental Sites In connection with our current or legacy manufacturing operations, or those of former owners, we may from time to time become involved in the investigation, closure and/or remediation of existing or potential environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act, and state or international Superfund and similar type environmental laws. For those matters, we may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies; however, we cannot predict with certainty the future identification of or expenditure for any investigation, closure or remediation of any environmental site. Summary of Financial Position There were no material liabilities recorded as of September 30, 2018 and December 31, 2017 for potential environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made. Antidumping and Countervailing Duty Cases In October 2010, a coalition of U.S. producers of multilayered wood flooring (not including AWI and its subsidiaries) filed petitions seeking antidumping duties (“AD”) and countervailing duties (“CVD”) with the United States Department of Commerce (“DOC”) and the United States International Trade Commission against imports of multilayered wood flooring from China. The AD and CVD petitions ultimately resulted in DOC issuing AD and CVD orders (the “Orders”) against multilayered wood flooring imported into the U.S. from China. These Orders and the associated additional duties they have imposed have been the subject of extensive litigation, both at DOC and in the U.S. courts. We produce multilayered wood flooring domestically and import multilayered wood flooring from third party suppliers in China. Until October 2014, AWI also operated a plant in Kunshan, China (“Armstrong Kunshan”) that manufactured multilayered wood flooring for export to the U.S. As a result, we have been directly involved in the multilayered wood flooring-related litigation at DOC and in the U.S. courts. Our consistent view through the course of this matter has been, and remains, that our imports are neither dumped nor subsidized. In 2013, in the sole DOC investigation of AWI and its subsidiaries (as a mandatory respondent in connection with the first annual administrative review), Armstrong Kunshan received a final CVD rate of 0.98% and a final AD rate of 0.00% . Litigation regarding this matter has continued in the U.S. courts. Armstrong Kunshan, as well as other respondents, have appealed DOC’s original decision to apply an AD rate to AWI and its subsidiaries and other “separate rate” respondents in the original investigation (for which we received a final initial AD rate of 3.31% ) to the Court of Appeals for the Federal Circuit ("CAFC"). The CAFC, on February 15, 2017, found that DOC did not make the requisite factual findings necessary to support its original investigation determination. The CAFC vacated and remanded the Court of International Trade ("CIT") decision for further proceedings. On July 3, 2018, CIT issued a ruling ordering DOC to revoke the AD order with respect to Armstrong Kunshan and two other respondents. Petitioners have filed notice of appeal. At this time, therefore, the ultimate outcome of the litigation is uncertain, as well as the status of the revocation of the AD order with respect to Armstrong Kunshan. We will continue to pursue the case. We believe success on appeal could result in a final revocation of the AD order with respect to Armstrong Kunshan and its prior entries under the order. DOC also continues to conduct annual administrative reviews of the AD and CVD final duty rates under the Orders. Armstrong Kunshan was not selected as a mandatory respondent for the second, third and fourth reviews and, therefore, was not subject to individual review, but we are subject to the rates applicable to importers that were not individually reviewed (the “separate rate” or “all other” respondents). The second administrative review period covered imports of multilayered wood flooring made between December 1, 2012 and November 30, 2013 (AD) and between January 1, 2012 and December 31, 2012 (CVD). In July 2015, the DOC issued a final “all others” CVD rate of 0.99% and a 13.74% AD rate. The AD rate was determined solely on the basis of the AD duty rate assigned to the only mandatory respondent that did not receive a de minimis rate. DOC assigned these rates to all separate rate respondents that were not individually investigated, including Armstrong Kunshan. We, along with other respondents, have filed complaints against DOC challenging the rate in the U.S. Court of International Trade. If such rates are ultimately upheld after any court appeals are exhausted, the estimated additional liability to us for the relevant period is approximately $4.8 million , which is recorded in accounts payable and accrued expenses. The court granted the preliminary injunction requested by plaintiffs on August 13, 2015, and enjoined the U.S. Government agencies from causing or permitting liquidation of unliquidated entries of multilayered wood flooring from China, pending final decision on the case. The third administrative review period covered all multilayered wood flooring imports made between December 1, 2013 and November 30, 2014 (AD) and between January 1, 2013 and December 31, 2013 (CVD). On May 16, 2016, the DOC issued a final “all others” CVD rate of 1.38% and on July 13, 2016, DOC imposed a 17.37% “all others” AD rate. The AD rate was determined again solely on the basis of the AD duty rate assigned to the only mandatory respondent that did not receive a de minimis rate. DOC assigned these rates to all separate rate respondents that were not individually investigated, including Armstrong Kunshan. We continue to defend our import practices by pursuing our available legal rights and remedies, including litigation at DOC and in the U.S. courts. If such rates are ultimately upheld after any potential court appeals are exhausted, the estimated additional liability to us for the relevant period is approximately $6.0 million , which is recorded in accounts payable and accrued expenses. We successfully filed an injunction request. The court granted the preliminary injunction on January 4, 2017 and enjoined the U.S. Government agencies from causing or permitting liquidation of unliquidated entries of multilayered wood flooring from China, pending final decision on the case. The preliminary injunction also ensures that our entries made during the 2013-14 review period will ultimately be liquidated in accordance with the final decision by the courts. AWI and Armstrong Kushan were not subject to review during the fourth administrative review period, however, we are liable for other manufacturers' applicable rates to the extent we were importer of record of products covered by the AD/CVD orders during this period. The fourth administrative review period covered all multilayered wood flooring imports made between December 1, 2014 and November 30, 2015 (AD) and between January 1, 2014 and December 31, 2014 (CVD). On May 15, 2017, DOC published a final “all others” CVD rate of 1.06% and on June 5, 2017, DOC imposed a de minimis “all others” AD rate which will apply to our multilayered wood flooring imports during this period. We have begun receiving refunds for our multilayered wood flooring imports during this time period as our deposit rate exceeded this de minimis rate. The petitioners initially appealed this decision, but withdrew their appeal on October 17, 2017. We will accrue and make cash deposits for duties when we are the importer of record at the rates established by DOC based on the fourth administrative review process. Administrative reviews for the fifth review period (December 1, 2015-November 30, 2016 for AD and January 1, 2015-December 31, 2015 for CVD) have been initiated. We were not subject to review for this period; however, we are liable for other manufacturers’ applicable rates to the extent we were importer of record of products covered by the AD/CVD orders during this period. On June 14, 2018, DOC published a final "all others" CVD rate of 0.85% and on July 18, 2018, DOC published a final "all others" AD rate of 0.00% for our multilayered wood flooring imports during this time period. The U.S. International Trade Commission completed a sunset review of the original Orders in the fourth quarter of 2017 and determined to continue the Orders for an additional five year period. Other Claims We are involved in various lawsuits, claims, investigations and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. For example, we are currently a party to various litigation matters that involve product liability, tort liability and other claims under a wide range of allegations, including illness due to exposure to certain chemicals used in the workplace, or medical conditions arising from exposure to product ingredients or the presence of trace contaminants. In some cases, these allegations involve multiple defendants and relate to legacy products that we and other defendants purportedly manufactured or sold. We believe these claims and allegations to be without merit and intend to defend them vigorously. For these matters, we also may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. While complete assurance cannot be given to the outcome of these proceedings, we do not believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations, or cash flows.

Business and Basis of Present_2

Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including certain asset values, allowances for bad debts, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, workers compensation, general liability and environmental claims and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information. Management may confer with outside parties, including outside counsel. Actual results may differ from these estimates. In the opinion of management, all adjustments of a normal, recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the three and nine months ended September 30, 2018 and 2017 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in economic conditions between periods. Certain amounts in the prior year’s Condensed Consolidated Financial Statements and related notes thereto have been recast to conform to the 2018 presentation. Otherwise, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2017 . These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . All significant intercompany transactions within AFI have been eliminated from the Condensed Consolidated Financial Statements.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, " Revenue from Contracts with Customers," and all the related amendments. The impact of the standard is limited to our accounting for warranties and returns. We adopted the standard using the modified retrospective transition method and we recorded a cumulative catch up adjustment to increase accumulated deficit in the amount of $4.1 million , increased prepaid expenses and other current assets by $0.4 million and decreased accounts receivable, net by $4.5 million . The adoption of the standard did not have a material impact on our results of operations or cash flows, but did result in new disclosures. On January 1, 2018, we adopted Accounting Standards Update ("ASU") 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably, this new guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Adoption did not have a material impact on our financial condition, results of operations or statement of cash flows. On January 1, 2018, we adopted ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The guidance requires entities to recognize income tax consequences of many intercompany asset transfers other than inventory at the transaction date. Adoption of this standard did not have a material impact on our financial condition, results of operations, or statement of cash flows. On January 1, 2018, we adopted ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The guidance requires the service cost component of net periodic benefit cost to be presented in the income statement line items with compensation cost and all other components of net periodic benefit cost to be presented outside of operating income. Previously, all components of net periodic benefit cost were recorded within cost of goods sold and selling, general and administrative ("SG&A") expense. We applied this standard retrospectively in the period of adoption. The tables below present the impact of adoption on our results of operations: Three Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 276.8 $ (0.6 ) $ 276.2 Selling, general and administrative expenses 49.3 (0.3 ) 49.0 Operating (loss) (30.1 ) 0.9 (29.2 ) Other expense, net 0.1 0.9 1.0 Nine Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 735.1 $ (2.2 ) $ 732.9 Selling, general and administrative expenses 153.2 (1.1 ) 152.1 Operating (loss) (29.8 ) 3.3 (26.5 ) Other expense, net 0.1 3.3 3.4 ASU 2017-07 does not impact our financial condition or statement of cash flows. On January 1, 2018, we early adopted ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and it requires the presentation of all items that affect earnings in the same income statement line as the hedged item. This standard did not have a material impact on our financial condition, results of operations or statement of cash flows. On January 1, 2018, we early adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The guidance permits entities to reclassify tax effects stranded in accumulated other comprehensive income (loss) as a result of tax reform to retained earnings. We applied this standard in the period of adoption and we reclassified $12.6 million from accumulated other comprehensive (loss) into accumulated deficit. There will be no impact on results of operations or statement of cash flows. In March 2018, the FASB issued ASU 2018-05, "Income Taxes." This guidance addresses the recognition of taxes payable or refundable for the current year and the recognition of deferred tax liabilities and deferred tax assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. This guidance was effective immediately upon issuance. The adoption did not have a material impact on our financial condition, results of operations or statement of cash flows. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." The guidance, and subsequent amendments issued, requires a lessee to recognize the assets and liabilities that arise from a lease agreement. Specifically, this new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term, with limited exceptions. This new guidance is effective for annual reporting periods beginning after December 15, 2018 and must be adopted under a modified retrospective basis. The FASB allows companies transition and practical expedient elections to simplify the transition of the new standard. We have elected the following: • We have elected to not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. • We have elected to use the hindsight practical expedient with respect to determining the lease term allowing us to consider the actual outcome of lease renewals, termination options, and purchase options and in assessing impairment of right-of-use assets for existing leases. • We have elected to combine lease and non-lease components as a single component and account for it as a lease for all asset classes excluding real estate. • We have elected to use a portfolio approach to determine the discount rate. Upon adoption, we will record the right-of-use assets and the lease liabilities related to our operating leases with a lease term in excess of one year. Based on our assessment to date, we expect adoption of the standard will have a material increase in our lease related assets and liabilities on our Consolidated Balance Sheet. We do not believe there will be a material impact on results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-13, " Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. " The guidance eliminates, adds and modifies certain disclosure requirements. This new guidance is effective for fiscal year beginning after December 15, 2019 for public companies. Early adoption is permitted for either the entire standard or provisions that eliminate or modify requirements. Adoption of the standard will not impact our financial condition, results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-14, " Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The guidance changes the disclosure requirements by eliminating certain disclosures that are no longer considered cost beneficial and added new ones that are considered pertinent. The guidance is effective for fiscal years ending December 15, 2020 for public companies. Early adoption is permitted. Adoption of the standard will not impact our financial condition, results of operations or statement of cash flows. In August 2018, the FASB issued ASU 2018-15, " Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal use software license. Capitalized implementation costs should be amortized over the term of the service agreement on a straight line basis and should be assessed for impairment in a manner similar to long-lived assets. This new guidance is effective for fiscal years beginning after December 15, 2019 for public companies. Early adoption is permitted. We are continuing to evaluate the impact the adoption of this standard will have on our financial condition, results of operations and statement of cash flows.

Business and Basis of Present_3

Business and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounting Changes	The tables below present the impact of adoption on our results of operations: Three Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 276.8 $ (0.6 ) $ 276.2 Selling, general and administrative expenses 49.3 (0.3 ) 49.0 Operating (loss) (30.1 ) 0.9 (29.2 ) Other expense, net 0.1 0.9 1.0 Nine Months Ended September 30, 2017 As Reported Impact of Adoption Upon Adoption Cost of goods sold $ 735.1 $ (2.2 ) $ 732.9 Selling, general and administrative expenses 153.2 (1.1 ) 152.1 Operating (loss) (29.8 ) 3.3 (26.5 ) Other expense, net 0.1 3.3 3.4

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables summarize segment performance: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net sales to external customers Resilient Flooring $ 208.1 $ 194.4 $ 571.5 $ 542.7 Wood Flooring 101.6 114.1 302.1 328.3 Total net sales to external customers $ 309.7 $ 308.5 $ 873.6 $ 871.0 Operating income (loss) Resilient Flooring $ 10.7 $ 9.3 $ 16.3 $ 18.8 Wood Flooring 0.4 (38.5 ) (0.1 ) (45.3 ) Total operating income (loss) $ 11.1 $ (29.2 ) $ 16.2 $ (26.5 ) The following table summarizes segment assets: September 30, 2018 December 31, 2017 Assets Resilient Flooring $ 577.9 $ 547.6 Wood Flooring 289.8 286.3 Unallocated 43.0 45.6 Total assets $ 910.7 $ 879.5
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following reconciles our total operating income (loss) to income before income taxes, which are only measured and managed on a combined basis: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating income (loss) $ 11.1 $ (29.2 ) $ 16.2 $ (26.5 ) Interest expense 0.9 0.8 2.8 2.0 Other expense, net 0.9 1.0 2.2 3.4 Income (loss) before income taxes $ 9.3 $ (31.0 ) $ 11.2 $ (31.9 )

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents our revenues disaggregated by geographic area based upon the location of the customer. Three Months Ended Nine Months Ended 2018 2018 Net sales United States $ 261.2 $ 737.0 Canada 15.9 51.7 China 21.5 49.9 Other 11.1 35.0 Total net sales $ 309.7 $ 873.6

Plant Closure Expenses (Tables)

Plant Closure Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
Schedule of Closure-Related Expenses	The following table details expenses related to the Wood Plant Closures: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash expenses Severance and employee benefit costs $ — $ 1.1 $ — $ 1.1 Decommissioning costs 0.2 1.0 1.2 1.0 Contract termination costs 0.2 0.6 0.7 0.6 Total cash expenses 0.4 2.7 1.9 2.7 Non-cash expenses Accelerated depreciation — 18.7 — 18.7 Asset write-downs & other non-cash exit costs — 2.3 — 2.3 Total non-cash expenses — 21.0 — 21.0 Total $ 0.4 $ 23.7 $ 1.9 $ 23.7

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The following table presents details related to our income taxes: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Income (loss) before income taxes $ 9.3 $ (31.0 ) $ 11.2 $ (31.9 ) Income tax expense (benefit) 1.4 (12.3 ) 3.2 (10.8 ) Effective tax rate 15.1 % 39.7 % 28.6 % 33.9 %

Earnings (Loss) Per Share of _2

Earnings (Loss) Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings (loss) per share calculations for the periods indicated. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Numerator Net income (loss) $ 7.9 $ (18.7 ) $ 8.0 $ (21.1 ) Denominator Weighted average number of common shares outstanding 25,793,019 26,648,693 25,763,550 27,398,673 Weighted average number of vested shares not yet issued 202,761 162,153 182,091 128,778 Weighted average number of common shares outstanding - Basic 25,995,780 26,810,846 25,945,641 27,527,451 Dilutive stock-based compensation awards outstanding 187,067 — 128,635 — Weighted average number of common shares outstanding - Diluted 26,182,847 26,810,846 26,074,276 27,527,451
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following awards were excluded from the computation of diluted earnings (loss) per share: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive 111,556 624,305 514,910 665,842 Performance awards excluded from diluted computation, as performance conditions not met 1,003,486 853,974 1,021,883 842,428

Accounts and Notes Receivable (

Accounts and Notes Receivable (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of Accounts and Notes Receivable	The following table presents accounts and note receivables, net of allowances: September 30, 2018 December 31, 2017 Customer receivables $ 130.2 $ 90.8 Miscellaneous receivables 4.7 4.0 Less: allowance for product claims, discounts, returns and losses (19.0 ) (15.1 ) Total $ 115.9 $ 79.7
Summary of Product Claim Accrual	The following table summarizes the activity for the allowance for product claims: Nine Months Ended September 30, 2018 2017 Balance as of January 1, $ (7.7 ) $ (7.5 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 (2.8 ) — Reductions for payments 8.7 9.2 Current year claim accruals (6.4 ) (9.9 ) Balance as of September 30, $ (8.2 ) $ (8.2 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	The following table presents details related to our inventories, net: September 30, 2018 December 31, 2017 Finished goods $ 161.6 $ 145.3 Goods in process 11.9 14.2 Raw materials and supplies 93.1 76.5 Total $ 266.6 $ 236.0

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	The following table presents details related to our prepaid expenses and other current assets: September 30, 2018 December 31, 2017 Prepaid expenses $ 6.5 $ 15.4 Merchandising materials 13.0 14.4 Other 3.0 2.0 Total $ 22.5 $ 31.8

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	The following table details amounts related to our accounts payable and accrued expenses: September 30, 2018 December 31, 2017 Payables, trade and other $ 127.8 $ 115.8 Employment costs 23.3 16.5 Other accrued expenses 18.7 17.9 Total $ 169.8 $ 150.2

Pension and Other Postretirem_2

Pension and Other Postretirement Benefit Programs (Tables)	9 Months Ended
	Sep. 30, 2018
Retirement Benefits [Abstract]
Summary of Pension and Postretirement Expenses	The following table summarizes our pension and postretirement expense: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Defined-benefit pension, U.S. Service cost $ 1.0 $ 1.4 $ 2.9 $ 4.1 Interest cost 3.7 3.8 11.0 11.6 Expected return on plan assets (5.6 ) (5.7 ) (16.7 ) (16.9 ) Amortization of prior service cost — 0.1 — 0.3 Amortization of net actuarial loss 2.6 2.6 8.0 7.7 Total, defined-benefit pension, U.S. $ 1.7 $ 2.2 $ 5.2 $ 6.8 Defined-benefit pension, Canada Interest cost $ 0.1 $ 0.2 $ 0.4 $ 0.5 Expected return on plan assets (0.2 ) (0.3 ) (0.6 ) (0.7 ) Amortization of net actuarial loss 0.1 — 0.2 0.1 Total, defined-benefit pension, Canada $ — $ (0.1 ) $ — $ (0.1 ) Defined-benefit postretirement, U.S. Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 0.7 0.8 2.0 2.5 Amortization of net actuarial gains (0.6 ) (0.6 ) (1.9 ) (1.8 ) Total, defined-benefit postretirement, U.S. $ 0.2 $ 0.3 $ 0.4 $ 1.0

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table summarizes the activity, by component, related to the change in AOCI. Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2017 $ 7.7 $ (1.0 ) $ (59.2 ) $ (52.5 ) Cumulative effect of adoption of ASU 2018-02 as of January 1 — 0.1 (12.7 ) (12.6 ) Other comprehensive (loss) income before reclassifications, net of tax impact of $- , ($0.3), $0.3, and $- (6.2 ) 0.7 0.3 (5.2 ) Amounts reclassified from accumulated other comprehensive income — 0.4 5.0 5.4 Net current period other comprehensive (loss) income (6.2 ) 1.1 5.3 0.2 Balance, September 30, 2018 $ 1.5 $ 0.2 $ (66.6 ) $ (64.9 ) Balance, December 31, 2016 $ 0.5 $ 0.5 $ (60.8 ) $ (59.8 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , $1.1, ($0.4), and $0.7 5.7 (1.7 ) (4.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income — 0.2 4.1 4.3 Net current period other comprehensive income (loss) 5.7 (1.5 ) (0.2 ) 4.0 Balance, September 30, 2017 $ 6.2 $ (1.0 ) $ (61.0 ) $ (55.8 )
Reclassification out of Accumulated Other Comprehensive Income	The amounts reclassified from AOCI and the affected line item of the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the table below. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ — $ — $ — Cost of goods sold Foreign exchange contracts - sales — 0.3 0.5 0.3 Net sales Total (income) expense before tax (0.1 ) 0.3 0.5 0.3 Tax impact — (0.1 ) (0.1 ) (0.1 ) Income tax expense (benefit) Total (income) expense, net of tax (0.1 ) 0.2 0.4 0.2 Pension and postretirement adjustments Prior service cost amortization — 0.1 — 0.3 Other expense, net Amortization of net actuarial loss 2.1 2.0 6.3 6.0 Other expense, net Total expense before tax 2.1 2.1 6.3 6.3 Tax impact (1.7 ) (0.7 ) (1.3 ) (2.2 ) Income tax expense (benefit) Total expense, net of tax 0.4 1.4 5.0 4.1 Total reclassifications for the period $ 0.3 $ 1.6 $ 5.4 $ 4.3

Business and Basis of Present_4

Business and Basis of Presentation - Narrative (Details) $ in Millions	Jan. 01, 2018USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Apr. 01, 2016Company
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of companies following business separation | Company				2
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit		$ 15.3	$ 31.8
Prepaid expenses and other current assets		22.5	31.8
Accounts and notes receivable, net		$ (115.9)	$ (79.7)
Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption of ASU 2018-02 as of January 1	$ 12.6
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Impact of Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	4.1
Prepaid expenses and other current assets	0.4
Accounts and notes receivable, net	$ 4.5

Business and Basis of Present_5

Business and Basis of Presentation Business and Basis of Presentation - Effect of Change in Accounting Principle (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of goods sold	$ 249.1	$ 276.2	$ 710.9	$ 732.9
Selling, general and administrative expenses	49.5	49	146.5	152.1
Operating income (loss)	11.1	(29.2)	16.2	(26.5)
Other expense, net	$ 0.9	1	$ 2.2	3.4
As Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of goods sold		276.8		735.1
Selling, general and administrative expenses		49.3		153.2
Operating income (loss)		(30.1)		(29.8)
Other expense, net		0.1		0.1
Accounting Standards Update 2017-07 | Impact of Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of goods sold		(0.6)		(2.2)
Selling, general and administrative expenses		(0.3)		(1.1)
Operating income (loss)		0.9		3.3
Other expense, net		$ 0.9		$ 3.3

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017	Sep. 30, 2017manufacturing_facility	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Net sales	$ 309.7			$ 308.5	$ 873.6	$ 871
Operating income (loss)	11.1			(29.2)	16.2	(26.5)
Assets	910.7				910.7		$ 879.5
Interest expense	0.9			0.8	2.8	2
Other expense, net	0.9			1	2.2	3.4
Income (loss) before income taxes	9.3			(31)	11.2	(31.9)
Trademarks and Trade Names [Member]
Segment Reporting Information [Line Items]
Intangible asset impairment				12.5
Unallocated
Segment Reporting Information [Line Items]
Assets	43				43		45.6
Resilient Flooring
Segment Reporting Information [Line Items]
Net sales	208.1			194.4	571.5	542.7
Operating income (loss)	10.7			9.3	16.3	18.8
Resilient Flooring | Operating segments
Segment Reporting Information [Line Items]
Assets	577.9				577.9		547.6
Wood Flooring
Segment Reporting Information [Line Items]
Net sales	101.6			114.1	302.1	328.3
Operating income (loss)	0.4			$ (38.5)	(0.1)	$ (45.3)
Number of manufacturing facilities ceasing operations		2	2
Wood Flooring | Operating segments
Segment Reporting Information [Line Items]
Assets	$ 289.8				$ 289.8		$ 286.3

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue, performance obligation, payment terms			30
Net sales	$ 309.7	$ 308.5	$ 873.6	$ 871
United States
Disaggregation of Revenue [Line Items]
Net sales	261.2		737
Canada
Disaggregation of Revenue [Line Items]
Net sales	15.9		51.7
CHINA
Disaggregation of Revenue [Line Items]
Net sales	21.5		49.9
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 11.1		$ 35

Plant Closure Expenses (Details

Plant Closure Expenses (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018position	Dec. 31, 2017employee	Sep. 30, 2017	Sep. 30, 2017manufacturing_facility	Mar. 31, 2017position	Sep. 30, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of positions eliminated | position	70				40
Estimated pre-tax charges closure-related expenses | $						$ 0.4
Wood Flooring
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of manufacturing facilities ceasing operations			2	2
Number of positions eliminated | employee		300

Plant Closure Expenses - Schedu

Plant Closure Expenses - Schedule of Closure-Related Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Cash expenses	$ 0.4	$ 2.7	$ 1.9	$ 2.7
Restructuring Costs	0	21	0	21
Restructuring Charges	0.4	23.7	1.9	23.7
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Cash expenses	0	1.1	0	1.1
Decommissioning costs
Restructuring Cost and Reserve [Line Items]
Cash expenses	0.2	1	1.2	1
Contract termination costs
Restructuring Cost and Reserve [Line Items]
Cash expenses	0.2	0.6	0.7	0.6
Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Restructuring Costs	0	18.7	0	18.7
Other Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring Costs	$ 0	$ 2.3	$ 0	$ 2.3

Other Severance Expense (Detail

Other Severance Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)position	Dec. 31, 2017employee	Mar. 31, 2017USD ($)position
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position	70		40
Wood Flooring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | employee		300
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Severance expenses	$ 3.1		$ 4.6
Selling, general and administrative expenses | Resilient Flooring
Restructuring Cost and Reserve [Line Items]
Severance expenses	1.9		2.7
Selling, general and administrative expenses | Wood Flooring
Restructuring Cost and Reserve [Line Items]
Severance expenses	$ 1.2		$ 1.9

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ 9.3	$ (31)	$ 11.2	$ (31.9)
Income tax expense (benefit)	$ 1.4	$ (12.3)	$ 3.2	$ (10.8)
Effective tax rate	15.10%	39.70%	28.60%	33.90%
U.S. federal corporate tax rate			21.00%		35.00%
Percentage of net operating losses limited upon Tax Reform enactment	80.00%		80.00%
Tax Cuts And Jobs Act Of 2017, provisional tax expense			$ 0.1

Earnings (Loss) Per Share of _3

Earnings (Loss) Per Share of Common Stock (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator
Net income (loss)	$ 7.9	$ (18.7)	$ 8	$ (21.1)
Denominator
Weighted average number of common shares outstanding (in shares)	25,793,019	26,648,693	25,763,550	27,398,673
Weighted average number of vested shares not yet issued (in shares)	202,761	162,153	182,091	128,778
Weighted average number of common shares outstanding - Basic (in shares)	25,995,780	26,810,846	25,945,641	27,527,451
Dilutive stock-based compensation awards outstanding (in shares)	187,067	0	128,635	0
Weighted average number of common shares outstanding - Diluted (in shares)	26,182,847	26,810,846	26,074,276	27,527,451
Stock compensation performance awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	111,556	624,305	514,910	665,842
Performance awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	1,003,486	853,974	1,021,883	842,428

Accounts and Notes Receivable -

Accounts and Notes Receivable - Receivables Net of Allowances (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Customer receivables	$ 130.2	$ 90.8
Miscellaneous receivables	4.7	4
Less: allowance for product claims, discounts, returns and losses	(19)	(15.1)
Accounts and notes receivable, net	$ 115.9	$ 79.7

Accounts and Notes Receivable_2

Accounts and Notes Receivable - Product Warranties (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance as of January 1,	$ (7.7)	$ (7.5)
Cumulative effect of adoption of new revenue recognition standard as of January 1	(2.8)	0
Reductions for payments	8.7	9.2
Current year claim accruals	(6.4)	(9.9)
Balance as of September 30,	$ (8.2)	$ (8.2)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 161.6	$ 145.3
Goods in process	11.9	14.2
Raw materials and supplies	93.1	76.5
Total	$ 266.6	$ 236

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 6.5	$ 15.4
Merchandising materials	13	14.4
Other	3	2
Total	$ 22.5	$ 31.8

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities, Current [Abstract]
Payables, trade and other	$ 127.8	$ 115.8
Employment costs	23.3	16.5
Other accrued expenses	18.7	17.9
Total	$ 169.8	$ 150.2

Pension and Other Postretirem_3

Pension and Other Postretirement Benefit Programs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Domestic Plan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 1	$ 1.4	$ 2.9	$ 4.1
Interest cost	3.7	3.8	11	11.6
Expected return on plan assets	(5.6)	(5.7)	(16.7)	(16.9)
Amortization of prior service cost	0	0.1	0	0.3
Amortization of net actuarial loss (gains)	2.6	2.6	8	7.7
Net benefit cost	1.7	2.2	5.2	6.8
Domestic Plan | Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	0.1	0.1	0.3	0.3
Interest cost	0.7	0.8	2	2.5
Amortization of net actuarial loss (gains)	(0.6)	(0.6)	(1.9)	(1.8)
Net benefit cost	0.2	0.3	0.4	1
Foreign Plan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	0.1	0.2	0.4	0.5
Expected return on plan assets	(0.2)	(0.3)	(0.6)	(0.7)
Amortization of net actuarial loss (gains)	0.1	0	0.2	0.1
Net benefit cost	$ 0	$ (0.1)	$ 0	$ (0.1)

Common Stock Repurchase Plan (D

Common Stock Repurchase Plan (Details) - The Program - Common Stock - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	19 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Mar. 06, 2017
Class of Stock [Line Items]
Stock repurchase program, authorized amount			$ 50
Common stock repurchased (in shares)	69,000	2,500,000
Common stock repurchased, value	$ 1	$ 41
Common stock repurchased (in dollars per share)	$ 14.20	$ 16.23

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Millions	Jan. 01, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 550	$ 551.8	$ 543	$ 550	$ 612	$ 612.9	$ 623.5	$ 550	$ 623.5
Total other comprehensive (loss) income		(4.6)	(2.8)	7.6	(0.9)	2.6	2.3	0.2	4
Ending balance		556.8	551.8	543	569	612	612.9	556.8	569
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	7.7			7.7			0.5	7.7	0.5
Cumulative effect of adoption of ASU 2018-02 as of January 1	0
Other comprehensive (loss) income before reclassifications, net of tax impact								(6.2)	5.7
Amounts reclassified from accumulated other comprehensive income								0	0
Total other comprehensive (loss) income								(6.2)	5.7
Ending balance		1.5			6.2			1.5	6.2
AOCI, tax		0			0			0	0
Derivative Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1)			(1)			0.5	(1)	0.5
Cumulative effect of adoption of ASU 2018-02 as of January 1	0.1
Other comprehensive (loss) income before reclassifications, net of tax impact								0.7	(1.7)
Amounts reclassified from accumulated other comprehensive income								0.4	0.2
Total other comprehensive (loss) income								1.1	(1.5)
Ending balance		0.2			(1)			0.2	(1)
AOCI, tax		(0.3)			1.1			(0.3)	1.1
Pension and Postretirement Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(59.2)			(59.2)			(60.8)	(59.2)	(60.8)
Cumulative effect of adoption of ASU 2018-02 as of January 1	(12.7)
Other comprehensive (loss) income before reclassifications, net of tax impact								0.3	(4.3)
Amounts reclassified from accumulated other comprehensive income								5	4.1
Total other comprehensive (loss) income								5.3	(0.2)
Ending balance		(66.6)			(61)			(66.6)	(61)
AOCI, tax		0.3			(0.4)			0.3	(0.4)
Total Accumulated Other Comprehensive (Loss) Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(52.5)	(60.3)	(57.5)	(52.5)	(54.9)	(57.5)	(59.8)	(52.5)	(59.8)
Cumulative effect of adoption of ASU 2018-02 as of January 1	$ (12.6)
Other comprehensive (loss) income before reclassifications, net of tax impact								(5.2)	(0.3)
Amounts reclassified from accumulated other comprehensive income								5.4	4.3
Total other comprehensive (loss) income		(4.6)	(2.8)	7.6	(0.9)	2.6	2.3	0.2	4
Ending balance		(64.9)	$ (60.3)	$ (57.5)	(55.8)	$ (54.9)	$ (57.5)	(64.9)	(55.8)
AOCI, tax		$ 0			$ 0.7			$ 0	$ 0.7

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	$ 249.1			$ 276.2			$ 710.9	$ 732.9
Net sales	309.7			308.5			873.6	871
Total (income) expense before tax	9.3			(31)			11.2	(31.9)
Tax impact	1.4			(12.3)			3.2	(10.8)
Total (income) expense, net of tax	7.9	$ 10.5	$ (10.4)	(18.7)	$ 5.4	$ (7.8)	8	(21.1)
Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period	0.3			1.6			5.4	4.3
Derivative Adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period							0.4	0.2
Derivative Adjustments | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total (income) expense before tax	(0.1)			0.3			0.5	0.3
Tax impact	0			(0.1)			(0.1)	(0.1)
Total (income) expense, net of tax	(0.1)			0.2			0.4	0.2
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Purchases | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	(0.1)			0			0	0
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Sales | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net sales	0			0.3			0.5	0.3
Prior service cost amortization | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense, net	0			0.1			0	0.3
Amortization of net actuarial loss | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense, net	2.1			2			6.3	6
Pension and Postretirement Adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period							5	4.1
Pension and Postretirement Adjustments | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total (income) expense before tax	2.1			2.1			6.3	6.3
Tax impact	(1.7)			(0.7)			(1.3)	(2.2)
Total (income) expense, net of tax	$ 0.4			$ 1.4			$ 5	$ 4.1

Litigation and Related Matters

Litigation and Related Matters (Details) - USD ($)	Jul. 18, 2018	Jun. 14, 2018	May 15, 2017	Jul. 13, 2016	May 16, 2016	Jul. 06, 2015	Jul. 31, 2015	Dec. 31, 2013	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Environmental liabilities									$ 0	$ 0
Armstrong Kushan, multilayered wood flooring imports from China
Loss Contingencies [Line Items]
Countervailing duties rate								0.98%
Antidumping duties rate						3.31%		0.00%
Armstrong Kushan, multi-layered wood flooring imports from China, second administrative review
Loss Contingencies [Line Items]
Countervailing duties rate							0.99%
Antidumping duties rate							13.74%
Armstrong Kushan, multi-layered wood flooring imports from China, second administrative review | Accounts payable and accrued expenses
Loss Contingencies [Line Items]
Estimated litigation liability									4,800,000
Armstrong Kushan, multi-layered wood flooring imports from China, third administrative review
Loss Contingencies [Line Items]
Countervailing duties rate					1.38%
Antidumping duties rate				17.37%
Armstrong Kushan, multi-layered wood flooring imports from China, third administrative review | Accounts payable and accrued expenses
Loss Contingencies [Line Items]
Estimated litigation liability									$ 6,000,000
Armstrong Kushan, multi-layered wood flooring imports from China, fourth administrative review
Loss Contingencies [Line Items]
Countervailing duties rate		0.85%	1.06%
Antidumping duties rate	0.00%