Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 25,835,850 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 292.3 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 728.2 | $ 704.1 | $ 710.1 |
Cost of goods sold | 585 | 553 | 554.5 |
Gross profit | 143.2 | 151.1 | 155.6 |
Selling, general and administrative expenses | 160.6 | 163.8 | 168.1 |
Operating (loss) | (17.4) | (12.7) | (12.5) |
Interest expense | 4.8 | 2.7 | 1.5 |
Other expense, net | 2.9 | 3.7 | 6.9 |
(Loss) from continuing operations before income taxes | (25.1) | (19.1) | (20.9) |
Income tax (benefit) | (6) | (2) | (4.7) |
(Loss) from continuing operations | (19.1) | (17.1) | (16.2) |
Earnings (loss) from discontinued operations, net of tax | 9.9 | (24.7) | 25.4 |
Loss on disposal of discontinued operations, net of tax | (153.8) | 0 | 0 |
Net (loss) earnings from discontinued operations | (143.9) | (24.7) | 25.4 |
Net (loss) income | $ (163) | $ (41.8) | $ 9.2 |
Basic (loss) earnings per share of common stock: | |||
Basic (loss) per share of common stock from continuing operations (in dollars per share) | $ (0.73) | $ (0.63) | $ (0.58) |
Basic (loss) earnings per share of common stock from discontinued operations (in dollars per share) | (5.54) | (0.91) | 0.91 |
Basic (loss) earnings per share of common stock (in dollars per share) | (6.27) | (1.54) | 0.33 |
Diluted (loss) earnings per share of common stock: | |||
Diluted (loss) per share of common stock from continuing operations (in dollars per share) | (0.73) | (0.63) | (0.58) |
Diluted (loss) earnings per share of common stock from discontinued operations (in dollars per share) | (5.54) | (0.91) | 0.90 |
Diluted (loss) earnings per share of common stock (in dollars per share) | $ (6.27) | $ (1.54) | $ 0.32 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 173.8 | $ 40.1 |
Accounts and notes receivable, net | 39 | 52.6 |
Inventories, net | 139.5 | 117 |
Current assets of discontinued operations | 0 | 149.5 |
Income tax receivable | 0.6 | 3.6 |
Prepaid expenses and other current assets | 18 | 27.5 |
Total current assets | 370.9 | 390.3 |
Property, plant and equipment, less accumulated depreciation and amortization of $318.8 and $296.1, respectively | 296.1 | 310.6 |
Intangible assets, less accumulated amortization of $12.0 and $5.2, respectively | 32 | 38.6 |
Noncurrent assets of discontinued operations | 0 | 130.3 |
Deferred income taxes | 5.6 | 14 |
Other noncurrent assets | 3.6 | 6.3 |
Total assets | 708.2 | 890.1 |
Current liabilities: | ||
Short-term debt | 25 | 0 |
Current installments of long-term debt | 3.7 | 0 |
Accounts payable and accrued expenses | 141.4 | 124.1 |
Current liabilities of discontinued operations | 0 | 26.1 |
Income tax payable | 0.5 | 0.8 |
Total current liabilities | 170.6 | 151 |
Long-term debt | 70.6 | 85 |
Postretirement benefit liabilities | 55.7 | 69.9 |
Pension benefit liabilities | 11.3 | 2.3 |
Other long-term liabilities | 6.7 | 7.2 |
Noncurrent liabilities of discontinued operations | 0 | 22.7 |
Noncurrent income taxes payable | 0.2 | 0.1 |
Deferred income taxes | 2.1 | 1.9 |
Total liabilities | 317.2 | 340.1 |
Stockholders' equity: | ||
Common stock with par value $.0001 per share: 100,000,000 shares authorized; 28,284,358 issued and 25,832,193 outstanding shares as of December 31, 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 December 31, 2018 and 2,448,996 shares as of December 31, 2017 | (39.7) | (39.9) |
Additional paid-in capital | 678.6 | 674.2 |
(Accumulated deficit) | (186.3) | (31.8) |
Accumulated other comprehensive (loss) | (61.6) | (52.5) |
Total stockholders' equity | 391 | 550 |
Total liabilities and stockholders' equity | $ 708.2 | $ 890.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Property Plant and equipment, accumulated depreciation and amortization | $ 318.8 | $ 296.1 |
Intangible assets, accumulated amortization | $ 12 | $ 5.2 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 28,284,358 | 28,183,218 |
Common stock, shares outstanding (in shares) | 25,832,193 | 25,734,222 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 15,000,000 | |
Preferred stock, shares issued (in shares) | 0 | |
Treasury stock (in shares) | 2,452,165 | 2,448,996 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Net AWI Investment | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2015 | $ 624 | $ 0 | $ 0 | $ 622 | $ 0 | $ 2 | $ 0 |
Beginning balance (in shares) at Dec. 31, 2015 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 9.2 | (0.8) | 10 | ||||
Net transfers from (to) AWI | 42.4 | 96.6 | (54.2) | ||||
Cash distribution paid to AWI | (50) | (50) | |||||
Reclassification of net parent investment to additional paid-in capital | $ 0 | (667.8) | 667.8 | ||||
Issuance of common stock at separation (in shares) | 0 | 27,738,779 | |||||
Stock-based employee compensation, net | $ 5.5 | 5.5 | |||||
Stock-based employee compensation, net (in shares) | 156,892 | ||||||
Other comprehensive income | (7.6) | (7.6) | |||||
Ending balance at Dec. 31, 2016 | 623.5 | $ 0 | $ 0 | 0 | 673.3 | (59.8) | 10 |
Ending balance (in shares) at Dec. 31, 2016 | 27,895,671 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (41.8) | (41.8) | |||||
Net transfers from (to) AWI | (0.8) | (0.8) | |||||
Reclassification of net parent investment to additional paid-in capital | 0 | 0.8 | (0.8) | ||||
Repurchase of common stock | (40) | $ (40) | |||||
Repurchase of common stock (in shares) | (2,455,604) | 2,455,604 | |||||
Stock-based employee compensation, net | 1.8 | $ 0.1 | 1.7 | ||||
Stock-based employee compensation, net (in shares) | 294,155 | (6,608) | |||||
Other comprehensive income | 7.3 | 7.3 | |||||
Ending balance at Dec. 31, 2017 | 550 | $ 0 | $ (39.9) | 0 | 674.2 | (52.5) | (31.8) |
Ending balance (in shares) at Dec. 31, 2017 | 25,734,222 | 2,448,996 | |||||
Beginning balance at Dec. 31, 2017 | 550 | $ 0 | $ (39.9) | 0 | 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 on ASU 2018-02 related to tax reform as of January 1 | (12.6) | ||||||
Net (loss) income | (163) | (163) | |||||
Repurchase of common stock | $ (1) | $ (1) | |||||
Repurchase of common stock (in shares) | (69,000) | (69,353) | 69,353 | ||||
Stock-based employee compensation, net | $ 5.6 | $ 1.2 | 4.4 | ||||
Stock-based employee compensation, net (in shares) | 167,324 | (66,184) | |||||
Other comprehensive income | 3.5 | 3.5 | |||||
Ending balance at Dec. 31, 2018 | 391 | $ 0 | $ (39.7) | $ 0 | $ 678.6 | (61.6) | (186.3) |
Ending balance (in shares) at Dec. 31, 2018 | 25,832,193 | 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 | (4.1) | (4.1) | |||||
Cumulative effect of adoption of ASC 606 new revenue recognition standard as of January 1 | ASU 2018-02 | $ 0 | $ (12.6) | $ 12.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (163) | $ (41.8) | $ 9.2 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 55.1 | 78.7 | 46.6 |
Loss on disposal of discontinued operations | 153.8 | 0 | 0 |
Intangible asset impairment | 0 | 12.5 | 0 |
Deferred income taxes | 2.4 | (3) | (5.2) |
Stock-based compensation | 5.4 | 2.2 | 5.7 |
U.S. pension expense | 6.8 | 8.9 | 6.5 |
Write off of debt financing costs | 0.6 | 0 | 0 |
Other non-cash adjustments, net | (0.8) | (0.6) | 6 |
Changes in operating assets and liabilities: | |||
Receivables | 16.3 | (2.5) | (3.2) |
Inventories | (39.4) | 30.4 | (19.8) |
Accounts payable and accrued expenses | 16.8 | (10.5) | 9.9 |
Income taxes payable and receivable | 2.8 | (3) | (0.6) |
Other assets and liabilities | 5.7 | (8.4) | (1.1) |
Net cash provided by operating activities | 62.5 | 62.9 | 54 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (35.3) | (44.8) | (37.6) |
Net proceeds from sale of discontinued operations | 90.2 | 0 | 0 |
Proceeds from the sale of assets | 5.7 | 0.4 | 0.5 |
Cash paid for acquisition | 0 | (36.1) | 0 |
Other investing activities | 0 | 0 | 0.2 |
Net cash provided by (used for) investing activities | 60.6 | (80.5) | (36.9) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 82 | 90 | 110 |
Payments on revolving credit facility | (142) | (25) | (90) |
Issuance of long-term debt | 75 | 0 | 0 |
Financing costs | (0.7) | 0 | (1.4) |
Payments of long-term debt | 0 | 0 | (10) |
Payments on capital lease | (0.2) | (0.2) | 0 |
Purchases of treasury stock | (1) | (40) | 0 |
Cash distribution paid to AWI | 0 | 0 | (50) |
Proceeds from exercised stock options | 0.8 | 1.4 | 0.3 |
Value of shares withheld related to employee tax withholding | (0.6) | (1.8) | 0 |
Net transfers from AWI | 0 | 0 | 55.6 |
Net cash provided by financing activities | 13.3 | 24.4 | 14.5 |
Effect of exchange rate changes on cash and cash equivalents | (1.6) | 1.6 | (1) |
Net increase in cash and cash equivalents | 134.8 | 8.4 | 30.6 |
Cash and cash equivalents at beginning of year | 39 | 30.6 | 0 |
Cash and cash equivalents at end of year | 173.8 | 39 | 30.6 |
Cash and cash equivalents at end of year from discontinued operations | 0 | (1.1) | (1.6) |
Cash and cash equivalents at end of year of continuing operations | 173.8 | 40.1 | 32.2 |
Supplemental Cash Flow Disclosure: | |||
Amounts in accounts payable for capital expenditures | 8.5 | 7.8 | 12.9 |
Interest paid | 3.4 | 2.8 | 1.5 |
Income taxes (refunded) paid, net | (1.4) | (2.8) | 8.1 |
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||
Capital expenditures funded by capital lease borrowings | $ 0 | $ 0 | $ 1.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (163) | $ (41.8) | $ 9.2 |
Changes in other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (6) | 7.2 | (8.2) |
Derivatives gain (loss) | 1.7 | (1.5) | (1.6) |
Pension and postretirement adjustments | 7.8 | 1.6 | 2.2 |
Other comprehensive income (loss) | 3.5 | 7.3 | (7.6) |
Total comprehensive (loss) income | $ (159.5) | $ (34.5) | $ 1.6 |
Business And Basis of Presentat
Business And Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Business Armstrong Flooring, Inc. ("AFI") is a leading global producer of resilient flooring products for use primarily in the construction and renovation of residential, commercial and institutional buildings. AFI designs, manufactures, sources and sells resilient 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. Former Parent Separation 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. Discontinued Operations On November 14, 2018, AFI entered into a Stock Purchase Agreement with Tarzan Holdco, Inc. ("TZI"), a Delaware corporation and an affiliate of American Industrial Partners ("AIP"), to sell its North American wood flooring business. On December 31, 2018, AIP completed the purchase of all of the issued and outstanding shares of Armstrong Wood Products, Inc. ("AWP"), a Delaware corporation, including its direct and indirect wholly owned subsidiaries. Basis of Presentation The historical results of operations and financial position of the North American wood flooring business are reported as discontinued operations in the Consolidated Statements of Operations and the Consolidated Balance Sheets. The historical information in the accompanying Notes to the Consolidated Financial Statements have been restated to reflect the effects of the sale of the North American wood flooring business. For further information on discontinued operations, see Note 9. Prior to April 1, 2016, AFI operated as a part of AWI. The financial information for periods prior to April 1, 2016 was prepared on a combined basis from AWI’s historical accounting records and is presented herein on a stand-alone basis as if the operations had been conducted independently of AWI. Beginning April 1, 2016, the financial information was prepared on a consolidated basis. The Consolidated Financial Statements of AFI presented are not indicative of our future performance, and, for periods prior to April 1, 2016, do not necessarily reflect what our historical financial condition, results of operations and cash flows would have been if we had operated as a separate, stand-alone entity during those periods. For periods prior to April 1, 2016, AFI was comprised of certain stand-alone legal entities for which discrete financial information was available, as well as portions of legal entities for which discrete financial information was not available (the "Shared Entities"). For the Shared Entities for which discrete financial information was not available, such as shared utilities, taxes, and other shared costs, allocation methodologies were applied to allocate amounts to AFI. The Consolidated Statements of Operations and Comprehensive Income (Loss) for these periods include all revenues and costs attributable to AFI, including costs for facilities, functions and services used by AFI. The results of operations for those periods also include allocations of costs for administrative functions and services performed on behalf of AFI by centralized staff groups within AWI, AWI’s general corporate expenses and certain pension and other retirement benefit costs for those periods. All of the allocations and estimates in the Consolidated Financial Statements are based on assumptions that AFI management believes are reasonable. All charges and allocations of cost for facilities, functions and services performed by AWI prior to the Spin-off were deemed paid by AFI to AWI in cash, in the period in which the cost was recorded in the Consolidated Statements of Operations. Prior to the Spin-off, transactions between AWI and AFI were accounted for through net AWI investment. Prior to the Spin-off, AFI’s portion of current income taxes payable was deemed to have been remitted to AWI in the period the related tax expense was recorded. AFI’s portion of current income taxes receivable was deemed to have been remitted to AFI by AWI in the period to which the receivable applies only to the extent that a refund of such taxes could have been recognized by AFI on a stand-alone basis under the law of the relevant taxing jurisdiction. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation Policy The Consolidated Financial Statements and accompanying data in this report include the accounts of AFI and its subsidiaries. All significant intercompany transactions have been eliminated from the Consolidated Financial Statements. Use of Estimates We prepare our financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. When preparing an estimate, management determines the amount based upon the consideration of relevant internal and external information. Actual results may differ from these estimates. Reclassifications Certain amounts in the prior year’s Consolidated Financial Statements and related notes and schedule thereto have been recast to conform to the 2018 presentation. Revenue Recognition 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 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 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 disaggregate revenue based on customer geography as this category represents the most appropriate depiction of how the nature, timing and uncertainty of revenues and cash flows are impacted by economic factors. See Note 3 to the Consolidated Financial Statements for our revenues disaggregated by geography. Warranties 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. Sales Incentives Sales incentives to customers are reflected as a reduction of net sales. Shipping and Handling Costs 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. Advertising Costs We recognize advertising expenses as they are incurred. Pension and Postretirement Benefits We have benefit plans that provide for pension, medical and life insurance benefits to certain eligible employees when they retire from active service. The cost of plan amendments that provide for benefits already earned by plan participants is amortized over the expected future working lifetime or the life expectancy of plan participants. A market-related value of plan assets methodology is utilized in the calculation of expected return on assets. The methodology recognizes gains and losses on long duration bonds immediately, while gains and losses on other assets are recognized in the calculation over a five-year period. We use a December 31 measurement date for our pension and postretirement benefit plans. Taxes For the periods prior to April 1, 2016, operations of certain businesses included in our Consolidated Financial Statements are divisions of legal entities included in AWI’s consolidated U.S. federal and state income tax returns, or tax returns of non-U.S. subsidiaries of AWI. The provision for income taxes and related balance sheet accounts of such entities have been prepared and presented in the Consolidated Financial Statements based on a separate return basis. Differences between our separate return income tax provision and cash flows attributable to income taxes for businesses that were divisions of legal entities have been recognized as capital contributions from, or dividends to, AWI within net AWI investment. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes to reflect the expected future tax consequences of events recognized in the financial statements. Deferred income tax assets and liabilities are recognized by applying enacted tax rates to temporary differences that exist as of the balance sheet date which result from differences in the timing of reported taxable income between tax and financial reporting. We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard for all periods, we give appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and foreign source income, the duration of statutory carryforward periods, and our experience with operating loss and tax credit carryforward expirations. A history of cumulative losses is a significant piece of negative evidence used in our assessment. If a history of cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in the assessment. We recognize the tax benefits of an uncertain tax position only if those benefits are more likely than not to be sustained based on existing tax law. Additionally, we establish a reserve for tax positions that are more likely than not to be sustained based on existing tax law, but uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities. Unrecognized tax benefits are subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter is effectively settled or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired, whichever is earlier. We account for all interest and penalties on uncertain income tax positions as income tax expense. Taxes collected from customers and remitted to governmental authorities are reported on a net basis. Earnings per Share Basic earnings per share is computed by dividing the earnings attributable to common shares by the sum of the weighted average number of shares of common stock outstanding during the period and the weighted average number of stock-based awards that have vested but not yet been issued during the period. Diluted earnings per share reflects the potential dilution of securities that could share in the earnings. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and short-term investments that have maturities of three months or less when purchased. Receivables We sell the vast majority of our products to select, pre-approved customers using customary trade terms that allow for payment in the future. Customer trade receivables and miscellaneous receivables, net of allowances for doubtful accounts, customer credits and warranties are reported in accounts and notes receivable on a net basis. Cash flows from the collection of receivables are classified as operating cash flows on the Consolidated Statements of Cash Flows. We establish credit-worthiness prior to extending credit. We estimate the recoverability of receivables each period. This estimate is based upon new information in the period, which can include the review of available financial statements and forecasts, as well as discussions with legal counsel and the management of the debtor company. We provide allowances as events occur which impact the collectibility of the receivable. Account balances are charged off against the allowance when the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. Inventories U.S. inventories are valued at the lower of cost or market, and cost is determined using the last-in, first-out ("LIFO") method of accounting. Non-U.S. inventories are valued at the lower of cost or net realizable value, and cost is determined using the first-in, first-out ("FIFO") method of accounting. Property Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized on a straight-line basis over assets’ estimated useful lives. Machinery and equipment includes manufacturing equipment (depreciated over 3 to 15 years ), computer equipment (depreciated over 3 to 5 years ) and office furniture and equipment (depreciated over 5 to 7 years ). Within manufacturing equipment, assets that are subject to accelerated obsolescence or wear, such as tooling and engraving equipment, are depreciated over shorter periods ( 3 to 7 years ). Heavy production equipment, such as conveyors, kilns and mixers, are depreciated over longer periods ( 10 to 15 years ). Buildings are depreciated over 15 to 30 years , depending on factors such as type of construction and use. Computer software is amortized over 3 to 7 years . Property, plant and equipment is tested for impairment when indicators of impairment exist, such as operating losses and/or negative cash flows. If an evaluation of the undiscounted future cash flows generated by an asset group indicates impairment, the asset group is written down to its estimated fair value, which is based on its discounted future cash flows. The principal assumption used in these impairment tests is future cash flows, which are derived from those used in our operating plan and strategic planning processes. Intangible Assets Our indefinite-lived intangible assets are primarily trademarks which are integral to our corporate identity and expected to contribute indefinitely to our corporate cash flows. We conduct our annual impairment test for indefinite-lived intangible assets during the fourth quarter and we conduct interim impairment tests if indicators of potential impairment exist. An impairment is recognized if the carrying amount of the asset exceeds its fair value. We first perform a qualitative assessment to determine if it is necessary to perform a quantitative impairment test. If a quantitative impairment test is deemed necessary, the method used to determine the fair value of our indefinite-lived intangible assets is the relief-from-royalty method. The principal assumptions used in our application of this method are revenue growth rate, discount rate and royalty rate. Revenue growth rates are derived from those used in our operating plan and strategic planning processes. The discount rate assumption is calculated based upon an estimated weighted average cost of capital, which we believe reflects the overall level of inherent risk and the rate of return a market participant would expect to achieve. The royalty rate assumption represents the estimated contribution of the intangible asset to overall profits. The method used for valuing our indefinite-lived intangible assets did not change from prior periods. Our long-lived intangible assets are primarily contractual arrangements (amortized over 5 years), wh ich includes non-compete agreements, and intellectual property (amortized over 2 to 15 years), which includes developed technology and patents. We review long-lived intangible assets for impairment if indicators of potential impairment exist, such as operating losses and/or negative cash flows. If an evaluation of the undiscounted future cash flows generated by the asset indicates impairment, the asset group is written down to its estimated fair value, which is based on its discounted future cash flows. The principal assumption used in these impairment tests is future cash flows, which are derived from those used in our operating plan and strategic planning processes. Foreign Currency Transactions For our subsidiaries with non-U.S. dollar functional currency, assets and liabilities are translated at period-end exchange rates. Revenues and expenses are translated at exchange rates effective during each month. Foreign currency translation gains or losses are included as a component of accumulated other comprehensive income ("AOCI") within equity. Gains or losses on foreign currency transactions are recognized through net income (loss). Stock-Based Employee Compensation We issue stock-based compensation to certain employees and non-employee directors in different forms, including performance stock awards ("PSAs"), performance stock units ("PSUs"), and restricted stock units ("RSUs"). We record stock-based compensation expense based on an estimated grant-date fair value. The expense is reflected as a component of selling, general and administrative (“SG&A”) expenses on our Consolidated Statements of Operations. Stock-based compensation expense includes an estimate for forfeitures and anticipated achievement levels and is generally recognized on a straight-line basis over the vesting period for the entire award. Net AWI Investment The Consolidated Statements of Stockholders' Equity include net cash transfers and other property transfers between AWI and AFI. The net AWI investment balance included assets and liabilities incurred by AWI on behalf of AFI such as accrued liabilities related to corporate allocations including administrative expenses for legal, accounting, treasury, information technology, human resources and other services. Other assets and liabilities recorded by AWI, whose related income and expense had been allocated to AFI, were also included in net AWI investment. All intercompany transactions effected through net AWI investment were considered cash receipts and payments and are reflected in financing activities in the accompanying Consolidated Statements of Cash Flows. The impact of the Spin-off on equity is reflected in net transfers from AWI and distribution paid to AWI on the Consolidated Statements of Stockholders' Equity and the Consolidated Statements of Cash Flows. The components on the Consolidated Statements of Stockholders' Equity and the Consolidated Statements of Cash Flows were as follows: Year Ended December 31, 2016 Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows - Financing Activities Net transfers from AWI for the three months prior to Spin-off $ 53.6 $ 53.6 Net transfers (to) from AWI upon Spin-off (11.2 ) 9.0 Other activity concurrent with Spin-off — (7.0 ) 42.4 55.6 Cash distribution paid to AWI upon Spin-off (50.0 ) (50.0 ) Net transfers (to) from AWI $ (7.6 ) $ 5.6 Additionally, during 2017, we recorded adjustments primarily related to the tax attributes assumed upon the Spin-off in the amount of $0.7 million . 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 , increase prepaid expenses and other current assets by $0.4 million and decrease 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 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 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 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 table below presents the impact of adoption on our results of operations: Year Ended December 31, 2017 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 555.1 $ (2.1 ) $ 553.0 Selling, general and administrative expenses 164.6 (0.8 ) 163.8 Operating (loss) (15.6 ) 2.9 (12.7 ) Other expense, net 0.8 2.9 3.7 Year Ended December 31, 2016 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 556.1 $ (1.6 ) $ 554.5 Selling, general and administrative expenses 168.7 (0.6 ) 168.1 Operating (loss) (14.7 ) 2.2 (12.5 ) Other expense, net 4.7 2.2 6.9 ASU 2017-07 does not impact our financial condition or 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 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 AOCI 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 cash flows. In March 2018, the Financial Accounting Standards Board ("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 cash flows. Recently Issued Accounting Standards In February 2016, the 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 result in recognizing an increase in our lease related assets and liabilities of less than $10 million on our Consolidated Balance Sheet. We do not believe there will be a material impact on results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The guidance requires immediate recognition of estimated credit losses that are expected to occur over the remaining life of many financial assets. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2019, but early adoption is permitted for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and 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 years 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 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 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 cash flows. Subsequent Events We have evaluated subsequent events for potential recognition and disclosure through the date the Consolidated Financial Statements included in the Form 10-K were issued. |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Nature of Operations | NATURE OF OPERATIONS Geographic Areas The sales in the table below are allocated to geographic areas based upon the location of the customer. Year Ended December 31, 2018 2017 2016 Net trade sales United States $ 563.4 $ 549.9 $ 565.3 China 68.7 59.3 51.2 Canada 49.2 48.6 51.5 Other 46.9 46.3 42.1 Total $ 728.2 $ 704.1 $ 710.1 The long-lived assets in the table below include property, plant and equipment, net. Long-lived assets by geographic area are reported by location of the operations to which the asset is attributed. December 31, 2018 December 31, 2017 United States $ 205.9 $ 212.5 China 78.0 85.0 Other 12.2 13.1 Total $ 296.1 $ 310.6 Information about Major Customers In 2018 , net sales to one customer exceeded 10% of our total net sales. Total revenue from this customer was $122.6 million in 2018 . We monitor the creditworthiness of our customers and generally do not require collateral. |
Severance Expense
Severance Expense | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Other Severance Expense | SEVERANCE EXPENSE In connection with the divestiture of our North American wood flooring business we announced a cost optimization plan to improve our existing cost structure by eliminating essentially all shared costs that will not be covered by transition service agreements with AIP. The new structure is expected to better reflect the simplification of our operations as a purely resilient flooring company. We eliminated approximately 45 positions, and the impacted employees received severance benefits. We recognized charges of $2.4 million in SG&A expenses in the fourth quarter of 2018. 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. 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 expense as a result of this reorganization. In 2016, we reorganized certain administrative functions, resulting in the elimination of six positions, including the Chief Operating Officer position. We recognized charges of $ 1.7 million in SG&A expense as a result of this reorganization. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Prior to the Spin-off, AWI issued stock-based compensation awards to employees and directors that became employees or directors of AFI. These awards included employee stock options, employee and director RSUs, and employee PSUs. Stock-based compensation expense until the Spin-off in 2016 was allocated to AFI based on direct expenses for AFI employees and a proportional allocation for employees that were providing services to both companies prior to the Spin-off. In April 2016, AFI adopted the Armstrong Flooring, Inc. 2016 Long-Term Incentive Plan (the "2016 LTIP") and the Armstrong Flooring, Inc. 2016 Directors' Stock Unit Plan (the "2016 Directors' Plan"), which collectively comprised a new compensation program that allows for the grant to certain employees and non-employee directors of AFI different forms of benefits, including PSAs, PSUs, and RSUs. On June 2, 2017, our stockholders approved an amendment and restatement of the 2016 LTIP. Under the 2016 LTIP, our board of directors initially authorized up to 5,500,000 shares of common stock for issuance and the amendment authorized an additional 2,100,000 shares of common stock of issuance, for a total of 7,600,000 shares, which includes all shares that have been issued under the 2016 LTIP. Our board of directors authorized up to 600,000 shares of common stock that may be issued pursuant to the 2016 Directors' Plan. As of December 31, 2018 , 2,566,814 shares and 245,363 shares were available for future grants under the 2016 LTIP and the 2016 Directors' Plan, respectively. New Awards The Management Development and Compensation Committee of the Board of Directors granted the following awards under the 2016 LTIP Plan and the 2016 Directors' Plan: PSAs and PSUs — PSAs and PSUs were granted to key executive employees and certain management employees of AFI. The PSAs and PSUs are units of restricted Company common stock that vest based on the achievement of certain performance conditions. The performance condition for 75.0% of the awards is based on earnings before interest, taxes, depreciation and amortization ("EBITDA"). The performance condition for the remaining 25.0% of the awards is based on cumulative free cash flow, defined as cash flow from operations, less cash used in investing activities. Performance awards issued to key executive employees in 2016 and 2017 are also indexed to the achievement of specified levels of absolute total shareholder return, and the fair value was measured using a Monte-Carlo simulation on the date of grant. For performance awards that are not indexed to the achievement of specified levels of absolute total shareholder return, the fair value was measured using our stock price on the date of grant. If the performance conditions are met, the awards vest at the conclusion of the performance period, which is generally at the end of the third fiscal year following the date of grant. The following table summarizes the assumptions used to measure the fair value of the annual grant of performance awards that are also indexed to the achievement of specified levels of absolute total shareholder return. 2017 2016 Weighted-average grant-date fair value $ 15.41 $ 12.44 Assumptions Risk-free rate of return 1.6 % 0.8 % Expected volatility 31.4 % 36.2 % Expected term (in years) 3.0 2.8 Expected dividend yield — — We did not issue any such awards in 2018. The risk free rate of return was determined based on the implied yield available on zero-coupon U.S. Treasury bills at the time of grant with a remaining term equal to the expected term of the award. The expected volatility was based on peer volatility since, as of the valuation date, we did not have a sufficient number of trading days to rely on our own trading history. The expected term represented the performance period on the underlying award. The expected dividend yield was assumed to be zero because, at the time of each grant, we had no plans to declare a dividend. RSUs — RSUs were granted to certain management employees of AFI. The RSUs are units representing shares of Company common stock which are converted to shares of Company common stock at the end of the service period. There are no performance conditions associated with these awards. Vesting occurs with one third of the awards vesting at the end of one, two and three years from the date of grant. The fair value of RSUs was measured using our stock price on the date of grant. Director Awards — RSUs were granted to our non-employee directors under the 2016 Directors' Plan. These awards generally have a vesting period of one year , and any dividends paid prior to vesting are forfeitable if the award does not vest. The awards are generally payable six months following the director’s separation from service on the board. The fair value of non-employee director RSUs was measured using our stock price on the date of grant. The following table summarizes activity related to the non-employee director RSUs. 2018 2017 Vested and not yet delivered as of December 31, 174,442 140,146 Granted 67,288 48,722 Outstanding as of December 31, 241,730 188,868 Modified Awards In connection with the Spin-off, in accordance with the Employee Matters Agreement between AFI and AWI, certain executives, employees and non-employee directors were entitled to receive equity compensation awards of AFI in replacement of previously outstanding awards granted prior to the Spin-off under various AWI stock incentive plans. These awards included stock options, RSUs, and PSUs. In connection with the Spin-off, these awards were converted into new AFI equity awards using a formula designed to preserve the intrinsic value of the awards immediately prior to the Spin-off on April 1, 2016. The modification did not result in a change to the value of the awards. Therefore, no additional compensation expense related to the award modification was recorded. The terms and conditions of the AWI awards were replicated and, as necessary, adjusted to ensure that the vesting schedule and economic value of the awards was unchanged by the conversion. The modified PSUs were initially issued with performance conditions based on AWI's results. At modification, two of the three years of performance had occurred. For the third year, which occurred after the Spin-off, award payout was at the target level. The following table summarizes information about AFI's modified stock options: Number of Shares (in thousands) Weighted-Average Exercise Price (per share) Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2017 533.6 $ 12.77 4.7 $ 2.2 Exercised (66.1 ) 11.65 Cancelled (14.0 ) 14.15 Outstanding as of December 31, 2018 453.5 12.89 3.6 0.2 Options exercisable 453.5 12.89 3.6 0.2 The options expire between 2019 and 2024 . When options are exercised, we may issue new shares, use treasury shares (if available), acquire shares held by investors, or a combination of these alternatives in order to satisfy the option exercises. The following table presents information related to stock option exercises: Year Ended December 31, 2018 2017 Total intrinsic value of stock options exercised $ 0.3 $ 0.5 Cash proceeds received from stock options exercised 0.8 1.4 Total Awards The table below summarizes activity related to the PSAs, PSUs, and RSUs. The non-employee director activity is not reflected in the RSU activity below. PSAs and PSUs RSUs Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Non-vested as of December 31, 2017 892.7 $ 13.93 231.6 $ 15.77 Granted 354.7 13.94 308.3 16.12 Vested — — (137.0 ) 15.32 Forfeited (144.9 ) 14.27 (78.3 ) 16.79 Non-vested as of December 31, 2018 1,102.5 13.88 324.6 16.13 The table above contains 6,895 and 5,228 PSUs as of December 31, 2018 and 2017 , respectively, which are accounted for as liability awards as they may be settled in cash. The table above contains 6,825 and 5,676 RSUs as of December 31, 2018 and 2017 , respectively, which are accounted for as liability awards as they may be settled in cash. In 2018, the weighted-average grant-date fair value of performance-based awards and RSUs granted was $13.94 and $16.12 , respectively. No PSAs and PSUs vested in 2018. The fair value of RSUs that vested in 2018 was $2.1 million . In 2017 , the weighted-average grant-date fair value of performance-based awards and RSUs granted was $16.54 and $17.21 , respectively. The fair value of PSAs and PSUs that vested in 2017 was $0.7 million and RSU's that vested in the same year was $3.1 million . Stock-based compensation expense is generally recognized on a straight-line basis over the vesting period and is recorded as a component of SG&A. Total stock-based compensation expense included in the Consolidated Statements of Operations and the related tax effects are presented in the table below: Year Ended December 31, 2018 2017 2016 Stock-based compensation expense $ 4.7 $ 1.5 $ 5.4 Income tax benefit 1.1 0.8 2.5 To the extent the vesting-date fair value is greater than the grant-date fair value, the excess tax benefit is recorded as an income tax benefit in the Consolidated Statements of Operations. For the years ended December 31, 2018 and 2017 , the income tax expense was $0.1 million and income tax benefit $0.5 million , respectively related to grant-date fair value from the exercise of stock options and vesting of stock-based awards. As of December 31, 2018 , $6.5 million of total unrecognized compensation expense related to non-vested stock-based compensation arrangements is expected to be recognized over a weighted-average period of 1.9 years . |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES We rent certain real estate and equipment. Several leases include options for renewal or purchase, and contain clauses for payment of real estate taxes and insurance. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Total rent expense was $11.0 million , $10.1 million and $8.5 million in 2018 , 2017 , and 2016 , respectively. Future minimum payments at December 31, 2018 by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows: Total Minimum Lease Payments 2019 $ 10.0 2020 7.1 2021 2.0 2022 0.3 2023 0.2 Thereafter 0.8 Total $ 20.4 The table above includes AFI lease obligations to AWI. The AFI sublease to TZI is cancellable within less than one year and is therefore excluded from the table above. The termination fee to cancel the sublease before the end of the sublease term is $2.5 million . |
Relationship with AWI
Relationship with AWI | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Relationship with AWI | RELATIONSHIP WITH AWI On April 1, 2016, in connection with the completion of the Spin-off, we entered into several agreements with AWI that provided for the separation and allocation between AFI and AWI of the assets, employees, liabilities and obligations of AWI and its subsidiaries attributable to periods prior to, at and after the Spin-off. These agreements also govern the relationship between AFI and AWI subsequent to the completion of the Spin-off. These agreements included a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a Trademark License Agreement, a Transition Trademark Agreement and a Campus Lease Agreement. Under the Transition Services Agreement, AFI and AWI provided various services to each other, including information technology, accounts payable, payroll, and other financial functions and administrative services through December 31, 2017 . The Tax Matters Agreement generally governs AFI’s and AWI’s respective rights, responsibilities and obligations after the Spin-off with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and other matters regarding taxes for any tax period ending on or before the distribution date, as well as tax periods beginning after the distribution date. In addition, the Tax Matters Agreement provides that AFI is liable for taxes incurred by AWI that may arise if AFI takes, or fails to take, certain actions that may result in the separation, the distribution or certain related transactions failing to qualify as tax-free for U.S. federal income tax purposes. AWI received an opinion from its tax counsel that the Spin-off qualified as a tax-free transaction for AWI and its shareholders. The Employee Matters Agreement governs certain compensation and employee benefit obligations with respect to the current and former employees and non-employee directors of AFI and AWI. Pursuant to this agreement and in connection with the Distribution, AWI transferred assets and liabilities from the Shared Plans sponsored by AWI to AFI that relate to active AFI employees and certain former AFI employees to mirror plans established by AFI. Pursuant to the Trademark License Agreement, AWI provided AFI with a perpetual, royalty-free license to use the “Armstrong” trade name and logo. Pursuant to the Transition Trademark License agreement, AFI provided AWI with a five-year, royalty-free license to use the “Inspiring Great Spaces” tagline, logo and related color scheme. Under the Campus Lease Agreement, AFI leased certain portions of AWI's campus for use as AFI's corporate headquarters. The Campus Lease Agreement provides for an initial term of five years from April 1, 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Historically, AFI was included with the AWI and affiliated entities in filing a consolidated U.S. federal income tax return, and as part of a unitary or combined group in some states. Income taxes are computed and reported herein under the separate return method as if AFI were a separate taxpayer for periods prior to and on March 31, 2016. Use of the separate return method requires significant judgment and may result in differences when the sum of the amounts allocated to stand-alone tax provisions are compared with amounts presented in Consolidated Financial Statements. In that event, the related deferred tax assets and liabilities could be significantly different from those presented herein. 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 has impacted our fiscal year ending December 31, 2018, including, but not limited, 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 completed our analysis of the Tax Reform Act during 2018 and recorded an additional income tax expense of $0.1 million in 2018, due to the impact of filing our 2017 U.S. Federal Tax Return. The following table presents loss from continuing operations before income taxes for U.S. and international operations based on the location of the entity to which such earnings are attributable: Year Ended December 31, 2018 2017 2016 Domestic $ (28.1 ) $ (18.0 ) $ (15.1 ) Foreign 3.0 (1.1 ) (5.8 ) Total $ (25.1 ) $ (19.1 ) $ (20.9 ) The following table presents the components of the income tax benefit: Year Ended December 31, 2018 2017 2016 Current Federal $ 0.3 $ (4.7 ) $ (0.9 ) Foreign 0.6 (0.4 ) (0.4 ) State and local 0.2 — 0.3 Subtotal 1.1 (5.1 ) (1.0 ) Deferred Federal (4.6 ) (0.3 ) (3.8 ) Foreign (2.5 ) 0.1 0.5 State and local — 3.3 (0.4 ) Subtotal (7.1 ) 3.1 (3.7 ) Total $ (6.0 ) $ (2.0 ) $ (4.7 ) As of December 31, 2018 , we reviewed our position with regard to foreign unremitted earnings and determined that unremitted earnings would continue to be permanently reinvested. Accordingly, we have not recorded foreign withholding taxes on approximately $11.3 million of undistributed earnings of foreign subsidiaries that could be subject to taxation if remitted to the U.S. because we currently plan to keep these amounts permanently invested overseas. It is not practicable to calculate the residual income tax that would result if these basis differences reversed due to the complexities of the tax law and the hypothetical nature of the calculations. The following table presents the differences between our income tax benefit at the U.S. federal statutory income tax rate and our effective income tax rate: Year Ended December 31, 2018 2017 2016 Continuing operations tax at statutory rate $ (5.3 ) $ (6.7 ) $ (7.3 ) (Decrease)/increase in valuation allowances on deferred foreign income tax assets (3.4 ) 2.0 2.4 Permanent book/tax differences 1.7 0.6 3.6 Tax on foreign and foreign-source income 1.1 (1.4 ) (1.5 ) Increase in valuation allowances on deferred state income tax assets 0.7 5.2 — State income tax benefit, not of federal benefit (0.6 ) (0.8 ) (0.6 ) Research and development credits (0.6 ) (0.7 ) (0.8 ) Increase in valuation allowances on deferred federal income tax assets 0.2 — — Impact of Tax Reform Act 0.1 0.8 — State law changes, net of federal benefit — (1.1 ) — Domestic production activities — — (0.4 ) Other 0.1 0.1 (0.1 ) Total $ (6.0 ) $ (2.0 ) $ (4.7 ) The tax effects of principal temporary differences between the carrying amounts of assets and liabilities and their tax bases are summarized in the following table. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income in the appropriate jurisdiction and foreign source income to realize deferred tax assets, net of valuation allowances. In arriving at this conclusion, we considered the profit before tax generated for the years 2016 through 2018 , as well as future reversals of existing taxable temporary differences and projections of future profit before tax and foreign source income. December 31, 2018 December 31, 2017 Deferred income tax assets (liabilities) Postretirement and postemployment benefits $ 16.7 $ 20.2 Net operating losses 19.3 30.4 Accrued expenses 9.1 8.3 Deferred compensation 5.5 2.4 Customer claims reserves 2.9 2.9 Goodwill 2.2 2.6 Pension benefit liabilities 2.3 0.4 Tax credit carryforwards 2.6 2.5 Intangibles 1.7 0.6 Other 0.8 1.3 Total deferred income tax assets 63.1 71.6 Valuation allowances (29.7 ) (29.7 ) Net deferred income tax assets 33.4 41.9 Accumulated depreciation (20.2 ) (21.2 ) Inventories (8.7 ) (8.1 ) Other (1.0 ) (0.5 ) Total deferred income tax liabilities (29.9 ) (29.8 ) Net deferred income tax assets $ 3.5 $ 12.1 Deferred income taxes have been classified in the Consolidated Balance Sheet as: Deferred income tax assets—noncurrent $ 5.6 $ 14.0 Deferred income tax liabilities—noncurrent (2.1 ) (1.9 ) Net deferred income tax assets $ 3.5 $ 12.1 We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard for all periods, we give appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and foreign source income, the duration of statutory carryforward periods, and our experience with operating loss and tax credit carryforward expirations. A history of cumulative losses is a significant piece of negative evidence used in our assessment. If a history of cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in the assessment. The following table presents the components of our valuation allowance against deferred income tax assets: Year Ended December 31, 2018 2017 Federal $ 9.4 $ 0.1 State 2.8 6.1 Foreign 17.5 23.5 Total $ 29.7 $ 29.7 The valuation allowances offset federal, state and foreign deferred tax assets, credits, and operating loss carryforwards. The following is a summary of our net operating loss (“NOL”) carryforwards: Year Ended December 31, 2018 2017 State $ 17.6 $ 17.8 Foreign 65.3 83.2 Federal 14.0 30.5 As of December 31, 2018 , federal NOL carryforwards expire between 2019 and 2038 , state NOL carryforwards expire between 2019 and 2038 , and foreign NOL carryforwards expire between 2019 and 2023 . We estimate we will need to generate future taxable income of approximately $69.6 million for state income tax purposes during the respective realization periods (ranging from 2019 to 2038 ) in order to fully realize the net deferred income tax assets discussed above. We have $1.6 million of unrecognized tax benefits ("UTBs") as of December 31, 2018 . Of this amount, $0.1 million , net of federal benefit, if recognized in future periods, would impact the reported effective tax rate. It is reasonably possible that certain UTBs may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities. Over the next twelve months, we estimate no changes to UTBs. The following table presents a reconciliation of the total amounts of UTBs, excluding interest and penalties: 2018 2017 2016 Unrecognized tax benefits as of January 1, $ 4.8 $ 5.0 $ 81.9 Gross change for current year positions 0.2 0.4 1.3 (Decreases) for prior period positions (3.4 ) (0.6 ) (78.2 ) Unrecognized tax benefits balance as of December 31, $ 1.6 $ 4.8 $ 5.0 The 2018 decrease related to prior period positions includes $3.1 million related to discontinued operations. The 2017 decrease related to prior period positions includes $0.5 million that resulted from the reduction of the U.S. income tax rate from 35% to 21% since these positions represent a reduction of U.S. net operating losses. The $78.2 million decrease for prior period positions in 2017 were UTBs allocated to AFI as a result of the separate return method, which remained with AWI upon Spin-off. We conduct business globally, and as a result, we file income tax returns in the U.S., various states and international jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world in such major jurisdictions as Australia, Canada, China and the U.S. Generally, we have open tax years subject to tax audit on average of between three years and six years. With few exceptions, the statute of limitations is no longer open for state or non-U.S. income tax examinations for the years before 2012. We have not significantly extended any open statutes of limitation for any major jurisdiction and have reviewed and accrued for, where necessary, tax liabilities for open periods. The tax years 2012 through 2018 are subject to future potential tax adjustments. The following table details amounts related to certain other taxes: Year Ended December 31, 2018 2017 2016 Payroll taxes $ 11.7 $ 10.9 $ 11.5 Property and franchise taxes 2.5 2.5 2.6 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In November 2018, we entered into a definitive agreement to sell our wood business to TZI, an affiliate of AIP. The sale was completed in December 2018. The proceeds from the sale were $90.2 million , net of closing costs, transaction fees and taxes. The transaction is subject to a customary post-closing working capital adjustment process, which is expected to be completed in the first quarter of 2019. On December 31, 2018, in connection with the sale of our wood business, TZI and AFI entered into agreements related to transition services, intellectual property, and subleases. Pursuant to the transition service agreement AFI will provide transitional services in areas including human resources, customer service, operations, finance and IT. In consideration for the services, TZI will pay AFI monthly fees that vary based on the scope of services provided, plus a $3.0 million administrative fee. TZI will reimburse AFI for AFI’s out-of-pocket costs and expenses in connection with providing the services. Pursuant to the intellectual property agreement, AFI provided TZI a non-exclusive, royalty-free, non-sublicensable, non-assignable license in and to certain trademarks. Under the subleases agreement TZI will lease certain premises located at the AFI campus through March 30, 2021 with the option to terminate the sublease any time after six months from the effective date of the sublease with 30-days’ prior notice. Upon such termination, TZI will pay a termination fee of $2.5 million . As a part of the transition service agreement, we are facilitating sales into Canada through our Canadian subsidiary. The financial results of the wood business have been reclassified as discontinued operations for all periods presented. The Consolidated Statements of Cash Flows does not separately report the cash flows of the discontinued operation. The following is a summary of the operating results of the wood business, which are included in discontinued operations. Year Ended December 31, 2018 2017 2016 Net Sales $ 387.0 $ 429.6 $ 483.1 Cost of goods sold 330.7 407.5 407.6 Gross profit 56.3 22.1 75.5 Selling, general and administrative expenses 36.6 39.4 42.3 Intangible asset impairment — 12.5 — Operating earnings (loss) 19.7 (29.8 ) 33.2 Interest expense — 0.1 — Other expense, net — 1.0 0.7 Earnings (loss) before income tax 19.7 (30.9 ) 32.5 Income tax expense (benefit) 9.8 (6.2 ) 8.8 Net earnings (loss) from discontinued operations $ 9.9 $ (24.7 ) $ 23.7 Year Ended December 31, 2018 2017 2016 Depreciation and Amortization $ 10.3 $ 40.0 $ 14.1 Capital Expenditures (8.0 ) (12.3 ) (11.9 ) The following is a summary of the results related to the net loss on disposal of wood business which is included in discontinued operations: Year Ended December 31, 2018 (Loss) on disposal of discontinued operations before income tax $ (153.8 ) Income tax (benefit) — Net (loss) on disposal of discontinued operations $ (153.8 ) The following is a summary of the assets and liabilities of the discontinued operations as of December 31, 2017. Year Ended December 31, 2017 Cash $ (1.1 ) Accounts and notes receivable, net 27.1 Inventories, net 119.0 Other assets 4.5 Current assets of discontinued operations $ 149.5 Year Ended December 31, 2017 Property plant and equipment, net $ 107.5 Intangible assets, net 21.8 Other noncurrent assets 1.0 Noncurrent assets of discontinued operations $ 130.3 Year Ended December 31, 2017 Accounts payable and accrued expenses $ 26.1 Current liabilities of discontinued operations $ 26.1 Year Ended December 31, 2017 Long-term debt $ 1.0 Postretirement benefit liabilities 2.9 Pension benefit liabilities 3.4 Deferred income taxes 13.1 Other liabilities 2.3 Noncurrent liabilities of discontinued operations $ 22.7 European Resilient Flooring On December 4, 2014, AWI's Board of Directors approved the cessation of funding to its DLW subsidiary, which at the time was our European flooring business. As a result, DLW management filed for insolvency in Germany on December 11, 2014. The DLW insolvency filing in 2014 resulted in presenting DLW for all historical periods prior to the Spin-off as a discontinued operation. The insolvency filing did not meet the U.S. tax criteria to be considered disposed of until the first quarter of 2015. In determining the U.S. tax impact of the disposition, the liabilities, including an unfunded pension liability of approximately $115.0 million , were considered proceeds. Accordingly, a non-cash income tax benefit of $43.4 million was recorded in 2015 within discontinued operations for the tax benefit of the future pension deductions. As AWI is solely responsible for any shortfall, and the beneficiary of any excess, at the closure of the DLW insolvency proceedings, DLW is excluded from our financial position, results of operations and cash flows after the Spin-off. The following is a summary of the operating results of DLW, which are reflected in these Consolidated Financial Statements for periods prior to the Spin-off. Year Ended December 31, 2016 (Loss) on disposal of discontinued operations before income tax $ (0.1 ) Income tax benefit 1.8 Gain on disposal of discontinued operations, net of tax $ 1.7 |
Accounts And Notes Receivable
Accounts And Notes Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables and Warranty Accruals [Abstract] | |
Accounts And Notes Receivable | ACCOUNTS AND NOTES RECEIVABLE The following table presents accounts and notes receivables, net of allowances: December 31, 2018 December 31, 2017 Customer receivables $ 45.4 $ 59.8 Miscellaneous receivables 6.2 4.8 Less: allowance for product warranties, discounts and losses (12.6 ) (12.0 ) Total $ 39.0 $ 52.6 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: Year Ended December 31, 2018 2017 Balance as of January 1, $ (5.6 ) $ (5.1 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 (1.7 ) — Reductions for payments 7.5 8.9 Current year claim accruals (6.6 ) (9.4 ) Balance as of December 31, $ (6.4 ) $ (5.6 ) |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Of Common Stock | EARNINGS PER SHARE OF COMMON STOCK The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated. Year Ended December 31, 2018 2017 2016 Numerator (Loss) from continuing operations $ (19.1 ) $ (17.1 ) $ (16.2 ) (Loss) earnings from discontinued operations, net of tax (143.9 ) (24.7 ) 25.4 Net (loss) income $ (163.0 ) $ (41.8 ) $ 9.2 Denominator Weighted average number of common shares outstanding 25,780,214 26,977,475 27,773,434 Weighted average number of vested shares not yet issued 188,195 136,504 91,903 Weighted average number of common shares outstanding - Basic 25,968,409 27,113,979 27,865,337 Dilutive stock-based compensation awards outstanding — — 212,147 Weighted average number of common shares outstanding - Diluted 25,968,409 27,113,979 28,077,484 On April 1, 2016, AWI distributed 27,738,779 shares of AFI's common stock to AWI’s shareholders. For the years ended December 31, 2018 and December 31, 2017 , the diluted loss per share was calculated using basic common shares outstanding, as inclusion of potentially dilutive common shares would be anti-dilutive. For the year ended December 31, 2016 , the diluted earnings per share was calculated using the diluted weighted average number of common shares outstanding during the period, determined using the treasury stock method. 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 (loss) earnings per share: Year Ended December 31, 2018 2017 2016 Potentially dilutive common shares excluded from diluted computation as inclusion would be anti-dilutive 474,910 743,678 201,994 Performance awards excluded from diluted computation, as performance conditions not met 862,256 849,483 646,698 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The following table presents details related to our inventories, net: December 31, 2018 December 31, 2017 Finished goods $ 110.5 $ 91.5 Goods in process 5.7 5.4 Raw materials and supplies 23.3 20.1 Total $ 139.5 $ 117.0 Inventories valued on a LIFO basis $ 113.3 $ 91.2 Inventories valued on FIFO or other basis $ 26.2 $ 25.8 The distinction between the use of different methods of inventory valuation is primarily based on the geographic location of the manufacturing facility. Inventory values were lower than would have been reported on a total FIFO basis by $3.0 million and $0.3 million as of December 31, 2018 and 2017 , respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 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: December 31, 2018 December 31, 2017 Prepaid expenses $ 6.8 $ 14.4 Merchandising materials 9.4 11.1 Other 1.8 2.0 Total $ 18.0 $ 27.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The following table presents details related to our property, plant and equipment, net: December 31, 2018 December 31, 2017 Land $ 29.6 $ 30.2 Buildings 91.8 91.5 Machinery and equipment 452.8 441.8 Computer software 19.2 17.2 Construction in progress 21.5 26.0 Less accumulated depreciation and amortization (318.8 ) (296.1 ) Total $ 296.1 $ 310.6 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table details amounts related to our intangible assets: December 31, 2018 December 31, 2017 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Long-lived intangible assets Contractual arrangements 5 years $ 36.4 $ 10.7 $ 36.6 $ 4.1 Intellectual property 2-15 years 5.0 1.3 4.9 1.1 Subtotal 41.4 $ 12.0 41.5 $ 5.2 Indefinite-lived intangible assets Trademarks and brand names Indefinite 2.6 2.3 Total $ 44.0 $ 43.8 Year Ended December 31, 2018 2017 2016 Amortization expense $ 7.2 $ 4.2 $ 0.4 During the second quarter of 2017, we acquired vinyl composition tile ("VCT") assets for $36.1 million , consisting of equipment and trademarks of Mannington Mills, Inc. ("Mannington Mills") under an agreement that included non-compete provisions. We allocated $33.6 million of the purchase price to intangible assets and the remainder to inventories and equipment. The assigned intangible asset classes were contractual arrangements, $33.3 million , with an estimated useful life of five years , and intellectual property, $0.3 million , with an estimated useful life of two years . In addition, Mannington Mills is eligible for contingent consideration of up to $9.0 million based on sales of our VCT flooring products for the twelve month periods ending June 30, 2019 and June 30, 2020 (“measurement periods”) compared to a base period of combined AFI and Mannington Mills sales for the 12 month period ended June 30, 2017. The contingent consideration is tiered for each of the separate twelve month measurement periods ranging from consideration of zero to a maximum of $4.5 million in each measurement period. No contingent liability has been recognized as we concluded that such liability is not probable. Any contingent liability recognized will be recorded as an adjustment to the value of the acquired assets. 2019 2020 2021 2022 2023 Expected annual amortization expense $ 7.1 $ 7.0 $ 7.0 $ 3.7 $ 0.4 |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 12 Months Ended |
Dec. 31, 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: December 31, 2018 December 31, 2017 Payables, trade and other $ 99.5 $ 93.6 Employment costs 25.0 13.6 Other accrued expenses 16.9 16.9 Total $ 141.4 $ 124.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | DEBT The following table presents details related to our debt: December 31, 2018 December 31, 2017 Revolver $ 25.0 $ — Current portion of Term Loan A 3.7 — Noncurrent portion of Term Loan A 70.6 — ABL Facility — 85.0 Total $ 99.3 $ 85.0 In connection with the sale of the wood business, on December 31, 2018 , the Company entered into a credit agreement (the "Credit Agreement"). The Credit Agreement provides the Company with a $150.0 million secured Credit Facility (the "Credit Facility"), consisting of a $75.0 million revolving facility and a $75.0 million term loan facility. The revolving facility includes a $25.0 million sublimit for the issuance of letters of credit and a $15.0 million sublimit for swing line loans. The Credit Facility is scheduled to mature on December 31, 2023. The Credit Agreement provides for a uncommitted accordion feature that allows the Company to request an increase in the revolving facility or the term loan facility in an aggregate amount not to exceed $25.0 million . As of December 31, 2018 , total borrowings outstanding under our Credit Facility were $75.0 million under Term Loan A and $25.0 million under the revolving Credit Facility, while outstanding letters of credit were $3.9 million . Proceeds from the new Credit Facility were utilized to repay borrowings of $94.0 million under the $225.0 million ABL facility dated April 1, 2016. The $225.0 million ABL Facility was closed as of December 31, 2018 , without penalty. Capitalized fees related to the ABL Facility of $0.6 million were expensed as of December 31, 2018 . Borrowings under the new Credit Facility bear interest at a rate equal to an adjusted base rate or the London Interbank Offered Rate ("LIBOR") plus an applicable margin, which varies according to the net leverage ratio and was 0.75% as of December 31, 2018 . As of December 31, 2018 , the interest rate of 6.25% was determined using the base rate plus applicable margin. On January 4, 2019, the interest rate of 4.26% was determined as borrowings were converted to use LIBOR plus the applicable margin. We are required to pay a commitment fee, payable quarterly in arrears, on the average daily unused amount of the revolving Credit Facility, which varies according to the net leverage ratio and was 0.20% as of December 31, 2018 . Outstanding letters of credit issued under the Credit Facility are subject to fees which will be due quarterly in arrears based on the applicable margin described above plus a fronting fee. The total rate for letters of credit was 1.875% as of December 31, 2018 . All obligations under the Credit Agreement are guaranteed by each of the Company's wholly owned domestic subsidiaries that individually, or together with its subsidiaries, has assets of more than $1.0 million . All obligations under the Credit Agreement, and guarantees of those obligations, are secured by all of the present and future assets of the Company and the guarantors, subject to certain exceptions and exclusions as set forth in the Credit Agreement and other security and collateral documents. Borrowings under the revolving portion of the Credit Facility are presented on our Consolidated Balance Sheet as a short-term obligation. Borrowings under the Term Loan A portion of the Credit Facility are segregated on our Consolidated Balance Sheet with $70.6 million net of fees shown as a long-term obligation and $3.7 million presented as a short-term obligation due to quarterly principal repayment installments. In addition, the Credit Agreement requires the Company to comply with certain financial covenants calculated for the Company and its subsidiaries on a consolidated basis. Specifically, the Credit Agreement requires that the Company and its subsidiaries not: • Permit the Consolidated Net Leverage Ratio (as defined in the Credit Agreement) at any time to be greater than 3.00 to 1.00 ; and • Permit the Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Agreement) at any time to be less than 1.25 to 1.00 . The Credit Agreement also contains customary affirmative covenants and events of default, including a cross-default provision in respect of any other indebtedness that has an aggregate principal amount exceeding $15.0 million . Our foreign subsidiaries had available lines of credit totaling $8.7 million ; there were no borrowing under these lines of credit as of December 31, 2018 . |
Pension And Other Postretiremen
Pension And Other Postretirement Benefit Programs | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Programs | PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS For periods prior to April 1, 2016, certain of our North American employees participated in defined-benefit pension and postretirement plans (the “Shared Plans”) sponsored by AWI. The related net benefit plan obligations of the Shared Plans were not included in our Consolidated Balance Sheets as we did not sponsor the Shared Plans and had no rights or obligations related to the Shared Plans’ assets or liabilities. Our Consolidated Statements of Operations include Shared Plan expenses for our active and retired employees as well as an allocation of Shared Plan expenses. The Shared Plan expenses presented in our Consolidated Financial Statements represent the allocation of plan costs to AFI and do not represent cash payments to AWI or to the Shared Plans. Effective April 1, 2016, upon separation from AWI, AFI created defined-benefit pension and postretirement plans, which provide North American employees and retirees who previously participated in the Shared Plans the same defined-benefit pension and postretirement benefits that had been previously provided by AWI. As a result of the Separation, and based on an analysis provided by our actuaries, AFI assumed defined-benefit pension plan assets of $381.4 million , defined-benefit pension benefit obligations of $385.4 million , defined-benefit postretirement benefit obligations of $82.9 million and accumulated other comprehensive loss of $101.8 million . Our U.S. defined-benefit pension plans were amended to freeze accruals for remaining salaried non-production employees, effective December 31, 2017. On November 14, 2018, AFI entered into a Stock Purchase Agreement with TZI, an affiliate of American Industrial Partners ("AIP"), to sell our North American wood flooring business. On December 31, 2018, AIP completed the purchase of all of the issued and outstanding shares of Armstrong Wood Products, Inc. As a result of the sale, all plan participants in the Hartco Retiree Welfare Plan, one of AFI's three postretirement plans, were transferred to AHF, LLC, an affiliate of AIP. The transfer of all liabilities for the Hartco Retiree Welfare Plan were effective as of December 31, 2018. Also, as a result of the North American wood flooring business sale, AFI transferred a portion of the Retirement Income Plan ("RIP"), as of December 31, 2018 to AHF, LLC. The U.S. pension plan disclosures show the spun off liability and asset amounts and include the allocated actuarial loss for the affected participants. Benefits from defined-benefit pension plans are based primarily on an employee’s compensation and years of service. We fund our pension plans when appropriate. We fund postretirement benefits on a pay-as-you-go basis, with the retiree paying a portion of the cost for health care benefits by means of deductibles and contributions. We also have defined-contribution pension plans for eligible employees. Defined-Benefit Pension Plans The following tables summarize the balance sheet impact of the pension benefit plans, as well as the related benefit obligations, assets, funded status and rate assumptions. The pension benefits disclosures include both the qualified, funded Retirement Income Plan (“RIP”) and the Retirement Benefit Equity Plan, which is a nonqualified, unfunded plan designed to provide pension benefits in excess of the limits defined under Sections 415 and 401(a)(17) of the Internal Revenue Code. The disclosures also include our two Canadian pension plans. U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Change in benefit obligation: Projected benefit obligations as of January 1, $ 395.8 $ 364.4 $ 17.8 $ 16.7 Liabilities transferred to AHF, LLC (11.5 ) — — — Service cost 3.8 5.4 — — Interest cost 14.6 15.4 0.6 0.6 Foreign currency translation adjustment — — (1.2 ) 1.2 Actuarial (gain)/loss (33.4 ) 28.4 0.5 1.1 Benefits paid (22.9 ) (17.8 ) (2.1 ) (1.8 ) Projected benefit obligations as of December 31, 346.4 395.8 15.6 17.8 Change in plan assets: Fair value of plan assets as of January 1, 390.8 363.2 17.1 16.5 Assets to be transferred to AHF, LLC (8.1 ) — — — Actual return on plan assets (22.8 ) 45.3 (0.4 ) 1.2 Employer contribution 0.1 0.1 0.1 — Foreign currency translation adjustment — — (1.1 ) 1.2 Benefits paid (22.9 ) (17.8 ) (2.1 ) (1.8 ) Fair value of plan assets as of December 31, 337.1 390.8 13.6 17.1 Funded status of the plans $ (9.3 ) $ (5.0 ) $ (2.0 ) $ (0.7 ) Accumulated benefit obligation as of December 31, $ 345.1 $ 394.5 $ 15.6 $ 17.8 The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the defined-benefit pension plans: U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Weighted average assumptions used to determine benefit obligations as of December 31, Discount rate 4.40 % 3.75 % 3.80 % 3.30 % Rate of compensation increase 3.25 % 3.25 % n/a n/a Weighted average assumptions used to determine net periodic benefit cost for the period: Discount rate 3.75 % 4.30 % 3.30 % 3.80 % Expected return on plan assets 5.85 % 6.10 % 4.90 % 5.40 % Rate of compensation increase 3.25 % 3.10 % n/a n/a Basis of Rate-of-Return Assumption Long-term asset class return assumptions are determined based on the expected performance of the asset classes over 20 years. For the U.S. plans, these forecasted gross returns were reduced by estimated management fees and expenses, yielding a long-term return forecast of 5.85% and 6.10% for the years ended December 31, 2018 and 2017 , respectively. For our Canadian plans, these forecasted gross returns were reduced by estimated management fees and expenses, yielding a long-term return forecast of 4.90% and 5.40% for the years ended December 31, 2018 and 2017 . Defined-benefit pension plans with benefit obligations in excess of plan assets were as follows: U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Projected benefit obligation, December 31 $ 346.4 $ 395.8 $ 15.2 $ 17.3 Accumulated benefit obligation, December 31 345.1 394.5 15.2 17.3 Fair value of plan assets, December 31 337.1 390.8 13.1 16.5 The components of net periodic pension cost for the U.S. defined-benefit pension plans were as follows: Year Ended December 31, 2018 2017 2016 Service cost of benefits earned during the period $ 3.8 $ 5.4 $ 4.3 Interest cost on projected benefit obligation 14.6 15.4 11.7 Expected return on plan assets (22.2 ) (22.7 ) (17.4 ) Amortization of prior service cost — 0.4 0.3 Recognized net actuarial loss 10.7 10.5 7.7 Allocated benefit cost from Shared Plans — — 2.2 Net periodic pension cost $ 6.9 $ 9.0 $ 8.8 The components of net periodic pension (credit) cost for the Canadian defined-benefit pension plans were as follows: Year Ended December 31, 2018 2017 2016 Interest cost on projected benefit obligation $ 0.6 $ 0.6 $ 0.5 Expected return on plan assets (0.8 ) (0.9 ) (0.8 ) Amortization of net actuarial loss 0.2 0.2 0.2 Allocated benefit cost from Shared Plans — — 0.1 Net periodic pension (credit) cost $ — $ (0.1 ) $ — Investment Policies Our primary investment objective is to maintain the funded status of the plans such that the likelihood that we will be required to make significant contributions to the plan is limited. This objective is expected to be achieved by: • Investing a substantial portion of the plan assets in high quality corporate and treasury bonds whose duration is at least equal to that of the plan’s liabilities such that there is a relatively high correlation between the movements of the plan’s liability and asset values. • Investing in publicly traded equities in order to increase the ratio of plan assets to liabilities over time. • Limiting investment return volatility by diversifying among additional asset classes with differing expected rates of return and return correlations. Each asset class used has a defined asset allocation target and allowable range. The tables below show the asset allocation targets and the December 31, 2018 and 2017 positions for each asset class: Target Weight at Position at December 31, December 31, 2018 2018 2017 U.S. Asset Class Fixed income securities 60 % 59 % 56 % Equities 40 % 41 % 44 % Target Weight at Position at December 31, December 31, 2018 2018 2017 Canadian Asset Class Fixed income securities 50 % 50 % 49 % Equities 48 % 48 % 49 % Other 2 % 2 % 2 % Pension plan assets are required to be reported and disclosed at fair value in the financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following tables set forth by level within the fair value hierarchy a summary of the U.S. and Canadian defined-benefit pension plan assets, net of payables for administrative expenses, measured at fair value on a recurring basis: Value at December 31, 2018 Level 1 Level 2 Level 3 Total U.S. Plans Fixed income securities $ — $ 202.4 $ — $ 202.4 Equities — 143.2 — 143.2 Other (0.4 ) — — (0.4 ) Net assets measured at fair value $ (0.4 ) $ 345.6 $ — $ 345.2 Assets to be transferred to AHF, LLC (8.1 ) Fair value of plan assets $ 337.1 Value at December 31, 2017 Level 1 Level 2 Level 3 Total U.S. Plans Fixed income securities $ — $ 219.2 $ — $ 219.2 Equities — 172.1 — 172.1 Other (0.5 ) — — (0.5 ) Net assets measured at fair value $ (0.5 ) $ 391.3 $ — $ 390.8 Value at December 31, 2018 Level 1 Level 2 Level 3 Total Canadian Plans Fixed income securities $ — $ 6.9 $ — $ 6.9 Equities — 6.5 — 6.5 Other 0.2 — — 0.2 Net assets measured at fair value $ 0.2 $ 13.4 $ — $ 13.6 Value at December 31, 2017 Level 1 Level 2 Level 3 Total Canadian Plans Fixed income securities $ — $ 8.4 $ — $ 8.4 Equities — 8.3 — 8.3 Other 0.4 — — 0.4 Net assets measured at fair value $ 0.4 $ 16.7 $ — $ 17.1 Following is a description of the valuation methodologies used for assets. Fixed income securities — Consists of registered investment funds, common and collective trust funds, and segregated funds investing in fixed income securities tailored to institutional investors. The fair values of the investments in this class are based on the underlying securities in each fund’s portfolio, which is the amount the fund would receive for the security upon a current sale. Equities — Consists of investments in funds investing in equities tailored to institutional investors. The fair value of each fund is based on the underlying securities in each fund’s portfolio, which is the amount the fund would receive for the security upon a current sale. Other — Consists of cash and cash equivalents and other payables and receivables (net). The carrying amounts of cash and cash equivalents approximate fair value due to the short-term maturity of these instruments. The carrying amounts of payables and receivables approximate fair value due to the short-term nature of these instruments. Defined-Benefit Postretirement Benefit Plans The following tables summarize the balance sheet impact of the postretirement benefit plans, as well as the related benefit obligations, assets, funded status and rate assumptions. 2018 2017 Change in benefit obligation: Projected benefit obligations as January 1, $ 76.4 $ 80.3 Service cost 0.4 0.4 Interest cost 2.6 3.2 Plan participants' contributions 1.6 1.7 Effect of curtailment (0.2 ) — Actuarial (gain)/loss (9.0 ) 0.5 Benefits paid (9.6 ) (9.7 ) Projected benefit obligation as of December 31, 62.2 76.4 Change in plan assets: Fair value of plan assets as January 1, — — Employer contribution 8.0 8.0 Plan participants' contribution 1.6 1.7 Benefits paid (9.6 ) (9.7 ) Fair value of plan assets as of December 31, — — Funded status of the plans $ (62.2 ) $ (76.4 ) The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. defined-benefit postretirement benefit plans: 2018 2017 Weighted average discount rate used to determine benefit obligations as of December 31, 4.30 % 3.60 % Weighted average discount rate used to determine net periodic benefit cost 3.60 % 4.05 % The components of net periodic postretirement benefit cost (credit) were as follows: Year Ended December 31, 2018 2017 2016 Service cost of benefits earned during the period $ 0.4 $ 0.4 $ 0.1 Interest cost on accumulated postretirement benefit obligations 2.6 3.2 2.6 Amortization of prior service (credit) — — (0.2 ) Amortization of net actuarial (gain) (2.5 ) (2.4 ) (3.3 ) Allocated benefit (credit) from Shared Plans — — (0.3 ) Net periodic postretirement benefit cost (credit) $ 0.5 $ 1.2 $ (1.1 ) For measurement purposes, an average rate of annual increase in the per capita cost of covered health care benefits of 7.5% for pre-65 retirees and 8.6% to 11.1% for post-65 retirees (depending on plan type) was assumed for 2019 , decreasing ratably to an ultimate rate of 4.5% by 2027. Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects on the defined-benefit postretirement benefit plans for 2019 : One percentage point Increase Decrease (Decrease) increase on total service and interest cost components $ — $ — (Decrease) increase on postretirement benefit obligation (0.8 ) 1.0 Financial Statement Impacts Amounts recognized in assets and (liabilities) on the Consolidated Balance Sheets at year end consist of: U.S. Pension Benefits Canadian Pension Benefits 2018 2017 2018 2017 Pension benefit liabilities $ (9.3 ) $ (1.6 ) $ (2.0 ) $ (0.7 ) Net amount recognized $ (9.3 ) $ (1.6 ) $ (2.0 ) $ (0.7 ) Postretirement Benefits 2018 2017 Accounts payable and accrued expenses $ (6.5 ) $ (6.5 ) Postretirement benefit liabilities (55.7 ) (69.9 ) Net amount recognized $ (62.2 ) $ (76.4 ) Pre-tax amounts recognized in AOCI at year end for our pension and postretirement benefit plans consist of: U.S. Pension Benefits Canadian Pension Benefits 2018 2017 2018 2017 Net actuarial (loss) $ (124.2 ) $ (127.4 ) $ (4.7 ) $ (3.8 ) Postretirement Benefits 2018 2017 Net actuarial gain $ 41.0 $ 34.8 We expect to amortize $8.9 million and $0.3 million of previously unrecognized net actuarial losses into U.S. and Canadian plan pension cost, respectively, in 2019 . We expect to amortize $3.3 million of previously unrecognized net actuarial gains into postretirement benefit cost in 2019 . We expect to contribute $0.1 million each to our U.S. and Canadian defined-benefit pension plans and $6.5 million to our U.S. postretirement benefit plans in 2019 . The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years for our U.S. and Canadian plans: U.S. Pension Benefits Canadian Pension Benefits Postretirement Benefits 2019 $ 16.8 $ 1.3 $ 6.5 2020 18.4 1.3 6.2 2021 18.7 1.2 6.0 2022 19.9 1.1 5.8 2023 20.6 1.1 5.4 2024-2028 113.6 5.0 21.4 These estimated benefit payments are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates. Costs for defined-contribution pension plans were $6.2 million in 2018 and $6.5 million in 2017 . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We are exposed to market risk from changes in foreign exchange rates that could impact our financial condition, results of operations and cash flows. We enter into derivative contracts, including contracts to hedge our foreign currency exchange rate exposures. Exposure to individual counterparties is controlled and derivative financial instruments are entered into with a diversified group of major financial institutions. Forward swap contracts are entered into for periods consistent with underlying exposure and do not constitute positions independent of those exposures. At inception, hedges designated as hedging instruments are formally documented as either (1) a hedge of a forecasted transaction or “cash flow” hedge, or (2) a hedge of the fair value of a recognized liability or asset or “fair value” hedge. Derivatives are formally assessed both at inception and at least quarterly thereafter, to ensure that derivatives used in hedging transactions are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, hedge accounting is discontinued, and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as risk management tools and not for speculative trading purposes. Counterparty Risk We only enter into derivative transactions with established counterparties having a credit rating of BBB or better. Counterparty credit default swap levels and credit ratings are monitored on a regular basis in an effort to reduce the risk of counterparty default. All of our derivative transactions with counterparties are governed by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can limit exposure in situations where gain and loss positions are outstanding with a single counterparty. We neither post nor receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have credit contingent features; however, a default under our Credit Facility would trigger a default under these agreements. Currency Rate Risk – Sales and Purchases We manufacture and sell our products in a number of countries and, as a result, we are exposed to movements in foreign currency exchange rates. To a large extent, our global manufacturing and sales provide a natural hedge of foreign currency exchange rate movement, as foreign currency expenses generally offset foreign currency revenues. We manage our cash flow exposures on a net basis and use derivatives to hedge the majority of our unmatched foreign currency cash inflows and outflows. Before considering the impacts of any hedging, our major foreign currency exposures as of December 31, 2018 , based on operating profits by currency, are from the Canadian Dollar, the Chinese Renminbi, and the Australian Dollar. We use foreign currency forward exchange contracts to reduce our exposure to the risk that the eventual net cash inflows and outflows resulting from the sale of products to foreign customers and purchases from foreign suppliers will be adversely affected by changes in exchange rates. These derivative instruments are used for forecasted transactions and are classified as cash flow hedges. These cash flow hedges are executed quarterly, generally up to 18 months forward. The notional amount of these hedges was $24.9 million and $26.2 million as of December 31, 2018 and 2017 , respectively. Gains and losses on these instruments are recorded in other comprehensive income (loss), to the extent effective, until the underlying transaction is recognized in earnings. The mark-to-market gains or losses on ineffective portions of hedges are recognized in SG&A expense. Currency Rate Risk - Intercompany Loans and Dividends We may use foreign currency forward exchange contracts to hedge exposures created by cross-currency intercompany loans and dividends. The translation adjustments related to these loans are recorded in other expense, net . The offsetting gains and losses on the related derivative contracts are also recorded in other expense, net . These contracts are decreased or increased as repayments are made or additional intercompany loans are extended or adjusted for intercompany dividend activity as necessary. The notional amount of these hedges was $17.7 million and $20.0 million as of December 31, 2018 and 2017 , respectively. Financial Statement Impacts The following table presents the classification of derivative assets and liabilities within the Consolidated Balance Sheets. The foreign exchange contracts outstanding are presented gross as we have not netted derivative assets with derivative liabilities: December 31, 2018 December 31, 2017 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Derivatives designated as cash flow hedging instruments Foreign exchange contracts $ 1.1 $ — $ — $ 0.8 Derivatives not designated as hedging instruments Foreign exchange contracts — — — 0.3 Total $ 1.1 $ — $ — $ 1.1 _____________ (1) Derivative assets are classified within prepaid expenses and other current assets as well as other non-current assets. (2) Derivative liabilities are classified within accounts payable and accrued expenses as well as other long-term liabilities. The following tables summarize the impact of the effective portion of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (Loss): Gains (losses) recognized in other comprehensive income ("OCI") (3) (Losses) gains reclassified from AOCI (3) Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Cash flow hedges Foreign exchange contracts $ 2.0 $ (1.9 ) $ (1.7 ) $ (0.3 ) $ (0.4 ) $ 0.7 Gains (losses) recognized in income (3) Year Ended December 31, 2018 2017 2016 Non-designated hedges Foreign exchange contracts $ 1.5 $ (2.0 ) $ 0.8 _____________ (3) Gains (losses) were included in net sales and cost of goods sold. As of December 31, 2018 , the amount of existing gains in AOCI expected to be recognized in earnings over the next twelve months is $0.9 million . |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Financial instruments are required to be disclosed at fair value in the financial statements. The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturities of these assets and liabilities. Fair Value at December 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets Foreign exchange contracts $ 1.1 $ 1.1 $ — $ — $ 1.1 Total financial assets $ 1.1 $ 1.1 $ — $ — $ 1.1 Financial liabilities Total debt $ (99.3 ) $ — $ (99.3 ) $ — $ (99.3 ) Total financial liabilities $ (99.3 ) $ — $ (99.3 ) $ — $ (99.3 ) Fair Value at December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial liabilities Derivatives designated as hedging instruments: Foreign exchange contracts $ (0.8 ) $ (0.8 ) $ — $ — $ (0.8 ) Derivatives not designated as hedging instruments: Foreign exchange contracts (0.3 ) (0.3 ) — — (0.3 ) Total debt (85.0 ) — (85.0 ) — (85.0 ) Total financial liabilities $ (86.1 ) $ (1.1 ) $ (85.0 ) $ — $ (86.1 ) Total debt as of December 31, 2018 , consisted of the outstanding borrowings under the Credit Facility dated December 31, 2018. Borrowings under the Credit Facility are quoted in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the liability (Level 2 inputs) and accordingly, the carrying amount approximates fair value. Total debt as of December 31, 2017 consisted primarily of the outstanding borrowings under the ABL Facility. Borrowings under the ABL Facility were quoted in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the liability (Level 2 inputs) and accordingly, the carrying amount approximates fair value. The fair values of our net foreign currency contracts were estimated from market quotes, which are considered to be Level 1 inputs. We do not have any assets or liabilities that are valued using Level 3 unobservable inputs. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | STOCKHOLDERS' EQUITY 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. For the year ended December 31, 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 December 31, 2018 , we repurchased approximately 2.5 million shares under the Program for a total cost of $41.0 million , with an average price of $16.23 per share. Accumulated Other Comprehensive (Loss) Income The amounts and related tax effects allocated to each component of OCI in 2018 , 2017 and 2016 are presented in the table below. Pre-tax Amount Tax Impact After-tax Amount 2018 Foreign currency translation adjustments $ (6.0 ) $ — $ (6.0 ) Derivative adjustments 2.3 (0.6 ) 1.7 Pension and postretirement adjustments 8.5 (0.7 ) 7.8 Total other comprehensive income $ 4.8 $ (1.3 ) $ 3.5 2017 Foreign currency translation adjustments $ 7.2 $ — $ 7.2 Derivative adjustments (2.0 ) 0.5 (1.5 ) Pension and postretirement adjustments 2.2 (0.6 ) 1.6 Total other comprehensive (loss) $ 7.4 $ (0.1 ) $ 7.3 2016 Foreign currency translation adjustments $ (8.2 ) $ — $ (8.2 ) Derivative adjustments (2.0 ) 0.4 (1.6 ) Postretirement adjustments 3.3 (1.1 ) 2.2 Total other comprehensive (loss) $ (6.9 ) $ (0.7 ) $ (7.6 ) The following table summarizes the activity, by component, related to the change in AOCI for December 31, 2018 and 2017 : Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2016 $ 0.5 $ 0.5 $ (60.8 ) $ (59.8 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $ — , $0.7, $1.2 and $1.9 7.2 (1.9 ) (5.4 ) (0.1 ) Amounts reclassified from accumulated other comprehensive income — 0.4 7.0 7.4 Net current period other comprehensive income (loss) 7.2 (1.5 ) 1.6 7.3 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 income (loss) before reclassifications, net of tax impact of $ — , ($0.5), $1.0 and $0.5 (6.0 ) 1.4 1.2 (3.4 ) Amounts reclassified from accumulated other comprehensive income — 0.3 6.6 6.9 Net current period other comprehensive income (loss) (6.0 ) 1.7 7.8 3.5 Balance, December 31, 2018 $ 1.7 $ 0.8 $ (64.1 ) $ (61.6 ) The amounts reclassified from AOCI and the affected line item of the Consolidated Statements of Operations are presented in the table below. Year Ended December 31, 2018 2017 2016 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ 0.1 $ 0.3 Cost of goods sold Foreign exchange contracts - purchases — (0.1 ) — Earnings (loss) from discontinued operations Foreign exchange contracts - sales 0.4 0.3 (1.0 ) Net sales Foreign exchange contracts - sales 0.1 0.3 (0.8 ) Earnings (loss) from discontinued operations Total expense/(income) before tax 0.4 0.6 (1.5 ) Tax impact (0.1 ) (0.2 ) 0.2 Income tax (benefit) Tax impact — — 0.3 Earnings (loss) from discontinued operations Total expense (income), net of tax 0.3 0.4 (1.0 ) Pension and postretirement adjustments Prior service cost amortization — 0.4 0.1 Other expense, net Amortization of net actuarial loss 8.4 8.4 4.6 Other expense, net Amortization of net actuarial loss (0.1 ) — 0.1 Earnings (loss) from discontinued operations Total expense before tax 8.3 8.8 4.8 Tax impact (1.8 ) (1.8 ) (1.6 ) Income tax (benefit) Tax impact 0.1 — (0.1 ) Earnings (loss) from discontinued operations Total expense, net of tax 6.6 7.0 3.1 Total reclassifications for the period $ 6.9 $ 7.4 $ 2.1 |
Litigation And Related Matters
Litigation And Related Matters | 12 Months Ended |
Dec. 31, 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 December 31, 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. Prior to the sale of our North American wood flooring business on December 31, 2018, we produced multilayered wood flooring domestically and imported 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 were 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 the 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 U.S. Court of International Trade ("CIT") decision for further proceedings. On July 3, 2018, the 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. The 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 AD rate in the CIT. If such rates are ultimately upheld after any court appeals are exhausted, the estimated additional liability to us for the relevant period is approximately $5.0 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. On June 8, 2018, the CIT issued a decision and order remanding the review determination to DOC to reconsider certain valuation methodologies. A revised decision by DOC is pending and must be approved by the Court. 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 $6.2 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. On November 26, 2018, the CIT issued a decision and order upholding DOC's determination Armstrong and other affected "separate rate" parties have filed appeals to the Court of Appeals for the Federal Circuit and those appeals remain pending. AWI and Armstrong Kunshan 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, the DOC published a final "all others" CVD rate of 1.06% and on June 5, 2017, DOC imposed a de minimus "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 minimus 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 the 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 will be 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. Armstrong Kunshan was not sold as part of the North American wood sale but was sold to a separate buyer in December 2018. We retained the right to elect to defend and control the defense of the above matters, as well as the right to any related refunds or payments, and agreed to indemnify and hold the buyer from and against any and all duties, penalties, fines or other charges. We have consistently pursued our legal rights and possible remedies to recover certain antidumping duty deposits and we are currently seeking to resolve this matter, if possible, outside of continued litigation. 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, distributors and 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. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 2018 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 164.3 $ 201.2 $ 208.9 $ 153.8 Gross profit 29.3 43.7 45.2 25.0 (Loss) earnings from continuing operations (10.4 ) 0.2 6.0 (14.9 ) Per share of common stock: Basic $ (0.40 ) $ 0.01 $ 0.24 $ (0.57 ) Diluted (0.40 ) 0.01 0.23 (0.57 ) 2017 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 160.8 $ 188.4 $ 195.5 $ 159.4 Gross profit 32.8 45.0 43.9 29.4 (Loss) earnings from continuing operations (12.2 ) 2.5 15.2 (22.6 ) Per share of common stock: Basic $ (0.44 ) $ 0.09 $ 0.57 $ (0.87 ) Diluted (0.44 ) 0.09 0.57 (0.87 ) The net sales and gross profit amounts above are reported on a continuing operations basis. The sum of the quarterly earnings per share data may not equal the total year amounts due to changes in the average shares outstanding and, for diluted data, the exclusion of the anti-dilutive effect in certain quarters. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Reserves | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Reserves | SCHEDULE II Armstrong Flooring, Inc. Valuation and Qualifying Reserves ( Dollars in millions ) Balance at beginning of year Additions charged to earnings Deductions ASC 606 Cumulative Catchup Adjustment Balance at end of year 2016 Provision for bad losses $ 0.4 $ — $ (0.1 ) $ — $ 0.3 Provision for discounts 7.7 61.8 (64.7 ) — 4.8 Provision for warranties 5.2 6.9 (7.0 ) — 5.1 Reserve for inventories 0.4 0.7 (0.4 ) — 0.7 2017 Provision for bad losses $ 0.3 $ 0.1 $ — $ — $ 0.4 Provision for discounts 4.8 55.3 (54.1 ) — 6.0 Provision for warranties 5.1 9.4 (8.9 ) — 5.6 Reserve for inventories 0.7 0.4 (0.2 ) — 0.9 2018 Provision for bad losses $ 0.4 $ 0.2 $ — $ — $ 0.6 Provision for discounts 6.0 61.0 (59.7 ) (1.7 ) 5.6 Provision for warranties 5.6 6.6 (7.5 ) 1.7 6.4 Reserve for inventories 0.9 0.3 (0.6 ) — 0.6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The historical results of operations and financial position of the North American wood flooring business are reported as discontinued operations in the Consolidated Statements of Operations and the Consolidated Balance Sheets. The historical information in the accompanying Notes to the Consolidated Financial Statements have been restated to reflect the effects of the sale of the North American wood flooring business. For further information on discontinued operations, see Note 9. Prior to April 1, 2016, AFI operated as a part of AWI. The financial information for periods prior to April 1, 2016 was prepared on a combined basis from AWI’s historical accounting records and is presented herein on a stand-alone basis as if the operations had been conducted independently of AWI. Beginning April 1, 2016, the financial information was prepared on a consolidated basis. The Consolidated Financial Statements of AFI presented are not indicative of our future performance, and, for periods prior to April 1, 2016, do not necessarily reflect what our historical financial condition, results of operations and cash flows would have been if we had operated as a separate, stand-alone entity during those periods. For periods prior to April 1, 2016, AFI was comprised of certain stand-alone legal entities for which discrete financial information was available, as well as portions of legal entities for which discrete financial information was not available (the "Shared Entities"). For the Shared Entities for which discrete financial information was not available, such as shared utilities, taxes, and other shared costs, allocation methodologies were applied to allocate amounts to AFI. The Consolidated Statements of Operations and Comprehensive Income (Loss) for these periods include all revenues and costs attributable to AFI, including costs for facilities, functions and services used by AFI. The results of operations for those periods also include allocations of costs for administrative functions and services performed on behalf of AFI by centralized staff groups within AWI, AWI’s general corporate expenses and certain pension and other retirement benefit costs for those periods. All of the allocations and estimates in the Consolidated Financial Statements are based on assumptions that AFI management believes are reasonable. All charges and allocations of cost for facilities, functions and services performed by AWI prior to the Spin-off were deemed paid by AFI to AWI in cash, in the period in which the cost was recorded in the Consolidated Statements of Operations. Prior to the Spin-off, transactions between AWI and AFI were accounted for through net AWI investment. Prior to the Spin-off, AFI’s portion of current income taxes payable was deemed to have been remitted to AWI in the period the related tax expense was recorded. AFI’s portion of current income taxes receivable was deemed to have been remitted to AFI by AWI in the period to which the receivable applies only to the extent that a refund of such taxes could have been recognized by AFI on a stand-alone basis under the law of the relevant taxing jurisdiction. |
Consolidation Policy | Consolidation Policy The Consolidated Financial Statements and accompanying data in this report include the accounts of AFI and its subsidiaries. All significant intercompany transactions have been eliminated from the Consolidated Financial Statements. |
Use of Estimates | Use of Estimates We prepare our financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. When preparing an estimate, management determines the amount based upon the consideration of relevant internal and external information. Actual results may differ from these estimates. |
Reclassifications | Reclassifications Certain amounts in the prior year’s Consolidated Financial Statements and related notes and schedule thereto have been recast to conform to the 2018 presentation. |
Revenue Recognition | Revenue Recognition 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 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 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 disaggregate revenue based on customer geography as this category represents the most appropriate depiction of how the nature, timing and uncertainty of revenues and cash flows are impacted by economic factors. See Note 3 to the Consolidated Financial Statements for our revenues disaggregated by geography. |
Warranties | Warranties 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. |
Sales Incentives | Sales Incentives Sales incentives to customers are reflected as a reduction of net sales. |
Shipping and Handling Costs | Shipping and Handling Costs 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. |
Advertising Costs | Advertising Costs We recognize advertising expenses as they are incurred. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We have benefit plans that provide for pension, medical and life insurance benefits to certain eligible employees when they retire from active service. The cost of plan amendments that provide for benefits already earned by plan participants is amortized over the expected future working lifetime or the life expectancy of plan participants. A market-related value of plan assets methodology is utilized in the calculation of expected return on assets. The methodology recognizes gains and losses on long duration bonds immediately, while gains and losses on other assets are recognized in the calculation over a five-year period. We use a December 31 measurement date for our pension and postretirement benefit plans. |
Taxes | Taxes For the periods prior to April 1, 2016, operations of certain businesses included in our Consolidated Financial Statements are divisions of legal entities included in AWI’s consolidated U.S. federal and state income tax returns, or tax returns of non-U.S. subsidiaries of AWI. The provision for income taxes and related balance sheet accounts of such entities have been prepared and presented in the Consolidated Financial Statements based on a separate return basis. Differences between our separate return income tax provision and cash flows attributable to income taxes for businesses that were divisions of legal entities have been recognized as capital contributions from, or dividends to, AWI within net AWI investment. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes to reflect the expected future tax consequences of events recognized in the financial statements. Deferred income tax assets and liabilities are recognized by applying enacted tax rates to temporary differences that exist as of the balance sheet date which result from differences in the timing of reported taxable income between tax and financial reporting. We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard for all periods, we give appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and foreign source income, the duration of statutory carryforward periods, and our experience with operating loss and tax credit carryforward expirations. A history of cumulative losses is a significant piece of negative evidence used in our assessment. If a history of cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in the assessment. We recognize the tax benefits of an uncertain tax position only if those benefits are more likely than not to be sustained based on existing tax law. Additionally, we establish a reserve for tax positions that are more likely than not to be sustained based on existing tax law, but uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities. Unrecognized tax benefits are subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter is effectively settled or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired, whichever is earlier. We account for all interest and penalties on uncertain income tax positions as income tax expense. Taxes collected from customers and remitted to governmental authorities are reported on a net basis. |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing the earnings attributable to common shares by the sum of the weighted average number of shares of common stock outstanding during the period and the weighted average number of stock-based awards that have vested but not yet been issued during the period. Diluted earnings per share reflects the potential dilution of securities that could share in the earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and short-term investments that have maturities of three months or less when purchased. |
Receivables | Receivables We sell the vast majority of our products to select, pre-approved customers using customary trade terms that allow for payment in the future. Customer trade receivables and miscellaneous receivables, net of allowances for doubtful accounts, customer credits and warranties are reported in accounts and notes receivable on a net basis. Cash flows from the collection of receivables are classified as operating cash flows on the Consolidated Statements of Cash Flows. We establish credit-worthiness prior to extending credit. We estimate the recoverability of receivables each period. This estimate is based upon new information in the period, which can include the review of available financial statements and forecasts, as well as discussions with legal counsel and the management of the debtor company. We provide allowances as events occur which impact the collectibility of the receivable. Account balances are charged off against the allowance when the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. |
Inventories | Inventories U.S. inventories are valued at the lower of cost or market, and cost is determined using the last-in, first-out ("LIFO") method of accounting. Non-U.S. inventories are valued at the lower of cost or net realizable value, and cost is determined using the first-in, first-out ("FIFO") method of accounting. |
Property Plant and Equipment | Property Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized on a straight-line basis over assets’ estimated useful lives. Machinery and equipment includes manufacturing equipment (depreciated over 3 to 15 years ), computer equipment (depreciated over 3 to 5 years ) and office furniture and equipment (depreciated over 5 to 7 years ). Within manufacturing equipment, assets that are subject to accelerated obsolescence or wear, such as tooling and engraving equipment, are depreciated over shorter periods ( 3 to 7 years ). Heavy production equipment, such as conveyors, kilns and mixers, are depreciated over longer periods ( 10 to 15 years ). Buildings are depreciated over 15 to 30 years , depending on factors such as type of construction and use. Computer software is amortized over 3 to 7 years . Property, plant and equipment is tested for impairment when indicators of impairment exist, such as operating losses and/or negative cash flows. If an evaluation of the undiscounted future cash flows generated by an asset group indicates impairment, the asset group is written down to its estimated fair value, which is based on its discounted future cash flows. The principal assumption used in these impairment tests is future cash flows, which are derived from those used in our operating plan and strategic planning processes. |
Intangible Assets | Intangible Assets Our indefinite-lived intangible assets are primarily trademarks which are integral to our corporate identity and expected to contribute indefinitely to our corporate cash flows. We conduct our annual impairment test for indefinite-lived intangible assets during the fourth quarter and we conduct interim impairment tests if indicators of potential impairment exist. An impairment is recognized if the carrying amount of the asset exceeds its fair value. We first perform a qualitative assessment to determine if it is necessary to perform a quantitative impairment test. If a quantitative impairment test is deemed necessary, the method used to determine the fair value of our indefinite-lived intangible assets is the relief-from-royalty method. The principal assumptions used in our application of this method are revenue growth rate, discount rate and royalty rate. Revenue growth rates are derived from those used in our operating plan and strategic planning processes. The discount rate assumption is calculated based upon an estimated weighted average cost of capital, which we believe reflects the overall level of inherent risk and the rate of return a market participant would expect to achieve. The royalty rate assumption represents the estimated contribution of the intangible asset to overall profits. The method used for valuing our indefinite-lived intangible assets did not change from prior periods. Our long-lived intangible assets are primarily contractual arrangements (amortized over 5 years), wh ich includes non-compete agreements, and intellectual property (amortized over 2 to 15 years), which includes developed technology and patents. We review long-lived intangible assets for impairment if indicators of potential impairment exist, such as operating losses and/or negative cash flows. If an evaluation of the undiscounted future cash flows generated by the asset indicates impairment, the asset group is written down to its estimated fair value, which is based on its discounted future cash flows. The principal assumption used in these impairment tests is future cash flows, which are derived from those used in our operating plan and strategic planning processes. |
Foreign Currency Transactions | Foreign Currency Transactions For our subsidiaries with non-U.S. dollar functional currency, assets and liabilities are translated at period-end exchange rates. Revenues and expenses are translated at exchange rates effective during each month. Foreign currency translation gains or losses are included as a component of accumulated other comprehensive income ("AOCI") within equity. Gains or losses on foreign currency transactions are recognized through net income (loss). |
Stock-Based Employee Compensation | Stock-Based Employee Compensation We issue stock-based compensation to certain employees and non-employee directors in different forms, including performance stock awards ("PSAs"), performance stock units ("PSUs"), and restricted stock units ("RSUs"). We record stock-based compensation expense based on an estimated grant-date fair value. The expense is reflected as a component of selling, general and administrative (“SG&A”) expenses on our Consolidated Statements of Operations. Stock-based compensation expense includes an estimate for forfeitures and anticipated achievement levels and is generally recognized on a straight-line basis over the vesting period for the entire award. |
Net AWI Investment | Net AWI Investment The Consolidated Statements of Stockholders' Equity include net cash transfers and other property transfers between AWI and AFI. The net AWI investment balance included assets and liabilities incurred by AWI on behalf of AFI such as accrued liabilities related to corporate allocations including administrative expenses for legal, accounting, treasury, information technology, human resources and other services. Other assets and liabilities recorded by AWI, whose related income and expense had been allocated to AFI, were also included in net AWI investment. All intercompany transactions effected through net AWI investment were considered cash receipts and payments and are reflected in financing activities in the accompanying Consolidated Statements of Cash Flows. |
Recently Adopted Accounting Standards and Recently Issued 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 , increase prepaid expenses and other current assets by $0.4 million and decrease 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 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 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 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 table below presents the impact of adoption on our results of operations: Year Ended December 31, 2017 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 555.1 $ (2.1 ) $ 553.0 Selling, general and administrative expenses 164.6 (0.8 ) 163.8 Operating (loss) (15.6 ) 2.9 (12.7 ) Other expense, net 0.8 2.9 3.7 Year Ended December 31, 2016 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 556.1 $ (1.6 ) $ 554.5 Selling, general and administrative expenses 168.7 (0.6 ) 168.1 Operating (loss) (14.7 ) 2.2 (12.5 ) Other expense, net 4.7 2.2 6.9 ASU 2017-07 does not impact our financial condition or 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 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 AOCI 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 cash flows. In March 2018, the Financial Accounting Standards Board ("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 cash flows. Recently Issued Accounting Standards In February 2016, the 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 result in recognizing an increase in our lease related assets and liabilities of less than $10 million on our Consolidated Balance Sheet. We do not believe there will be a material impact on results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The guidance requires immediate recognition of estimated credit losses that are expected to occur over the remaining life of many financial assets. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2019, but early adoption is permitted for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and 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 years 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 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 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 cash flows. |
Subsequent Events | Subsequent Events We have evaluated subsequent events for potential recognition and disclosure through the date the Consolidated Financial Statements included in the Form 10-K were issued. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Equity and Cash Flow Impact of Separation Activities | The components on the Consolidated Statements of Stockholders' Equity and the Consolidated Statements of Cash Flows were as follows: Year Ended December 31, 2016 Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows - Financing Activities Net transfers from AWI for the three months prior to Spin-off $ 53.6 $ 53.6 Net transfers (to) from AWI upon Spin-off (11.2 ) 9.0 Other activity concurrent with Spin-off — (7.0 ) 42.4 55.6 Cash distribution paid to AWI upon Spin-off (50.0 ) (50.0 ) Net transfers (to) from AWI $ (7.6 ) $ 5.6 |
Schedule of Impact of Adoption on Results of Operations | The table below presents the impact of adoption on our results of operations: Year Ended December 31, 2017 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 555.1 $ (2.1 ) $ 553.0 Selling, general and administrative expenses 164.6 (0.8 ) 163.8 Operating (loss) (15.6 ) 2.9 (12.7 ) Other expense, net 0.8 2.9 3.7 Year Ended December 31, 2016 Prior to Adoption Impact of Adoption Upon Adoption Cost of goods sold $ 556.1 $ (1.6 ) $ 554.5 Selling, general and administrative expenses 168.7 (0.6 ) 168.1 Operating (loss) (14.7 ) 2.2 (12.5 ) Other expense, net 4.7 2.2 6.9 |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Areas | The sales in the table below are allocated to geographic areas based upon the location of the customer. Year Ended December 31, 2018 2017 2016 Net trade sales United States $ 563.4 $ 549.9 $ 565.3 China 68.7 59.3 51.2 Canada 49.2 48.6 51.5 Other 46.9 46.3 42.1 Total $ 728.2 $ 704.1 $ 710.1 |
Schedule of Property, Plant and Equipment by Geographic Area | The long-lived assets in the table below include property, plant and equipment, net. Long-lived assets by geographic area are reported by location of the operations to which the asset is attributed. December 31, 2018 December 31, 2017 United States $ 205.9 $ 212.5 China 78.0 85.0 Other 12.2 13.1 Total $ 296.1 $ 310.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Valuation Assumptions | The following table summarizes the assumptions used to measure the fair value of the annual grant of performance awards that are also indexed to the achievement of specified levels of absolute total shareholder return. 2017 2016 Weighted-average grant-date fair value $ 15.41 $ 12.44 Assumptions Risk-free rate of return 1.6 % 0.8 % Expected volatility 31.4 % 36.2 % Expected term (in years) 3.0 2.8 Expected dividend yield — — |
Summary of Non-Employee RSU Activity | The fair value of non-employee director RSUs was measured using our stock price on the date of grant. The following table summarizes activity related to the non-employee director RSUs. 2018 2017 Vested and not yet delivered as of December 31, 174,442 140,146 Granted 67,288 48,722 Outstanding as of December 31, 241,730 188,868 |
Summary of Stock Option Exercises | The following table presents information related to stock option exercises: Year Ended December 31, 2018 2017 Total intrinsic value of stock options exercised $ 0.3 $ 0.5 Cash proceeds received from stock options exercised 0.8 1.4 The modified PSUs were initially issued with performance conditions based on AWI's results. At modification, two of the three years of performance had occurred. For the third year, which occurred after the Spin-off, award payout was at the target level. The following table summarizes information about AFI's modified stock options: Number of Shares (in thousands) Weighted-Average Exercise Price (per share) Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2017 533.6 $ 12.77 4.7 $ 2.2 Exercised (66.1 ) 11.65 Cancelled (14.0 ) 14.15 Outstanding as of December 31, 2018 453.5 12.89 3.6 0.2 Options exercisable 453.5 12.89 3.6 0.2 |
Summary of Performance Share Activity | The table below summarizes activity related to the PSAs, PSUs, and RSUs. The non-employee director activity is not reflected in the RSU activity below. PSAs and PSUs RSUs Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Non-vested as of December 31, 2017 892.7 $ 13.93 231.6 $ 15.77 Granted 354.7 13.94 308.3 16.12 Vested — — (137.0 ) 15.32 Forfeited (144.9 ) 14.27 (78.3 ) 16.79 Non-vested as of December 31, 2018 1,102.5 13.88 324.6 16.13 |
Schedule of Restricted Stock Unit Award Activity | The table below summarizes activity related to the PSAs, PSUs, and RSUs. The non-employee director activity is not reflected in the RSU activity below. PSAs and PSUs RSUs Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value (per share) Non-vested as of December 31, 2017 892.7 $ 13.93 231.6 $ 15.77 Granted 354.7 13.94 308.3 16.12 Vested — — (137.0 ) 15.32 Forfeited (144.9 ) 14.27 (78.3 ) 16.79 Non-vested as of December 31, 2018 1,102.5 13.88 324.6 16.13 |
Summary of Stock-based Compensation and Related Tax Effects | Total stock-based compensation expense included in the Consolidated Statements of Operations and the related tax effects are presented in the table below: Year Ended December 31, 2018 2017 2016 Stock-based compensation expense $ 4.7 $ 1.5 $ 5.4 Income tax benefit 1.1 0.8 2.5 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments at December 31, 2018 by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows: Total Minimum Lease Payments 2019 $ 10.0 2020 7.1 2021 2.0 2022 0.3 2023 0.2 Thereafter 0.8 Total $ 20.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table presents loss from continuing operations before income taxes for U.S. and international operations based on the location of the entity to which such earnings are attributable: Year Ended December 31, 2018 2017 2016 Domestic $ (28.1 ) $ (18.0 ) $ (15.1 ) Foreign 3.0 (1.1 ) (5.8 ) Total $ (25.1 ) $ (19.1 ) $ (20.9 ) |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of the income tax benefit: Year Ended December 31, 2018 2017 2016 Current Federal $ 0.3 $ (4.7 ) $ (0.9 ) Foreign 0.6 (0.4 ) (0.4 ) State and local 0.2 — 0.3 Subtotal 1.1 (5.1 ) (1.0 ) Deferred Federal (4.6 ) (0.3 ) (3.8 ) Foreign (2.5 ) 0.1 0.5 State and local — 3.3 (0.4 ) Subtotal (7.1 ) 3.1 (3.7 ) Total $ (6.0 ) $ (2.0 ) $ (4.7 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the differences between our income tax benefit at the U.S. federal statutory income tax rate and our effective income tax rate: Year Ended December 31, 2018 2017 2016 Continuing operations tax at statutory rate $ (5.3 ) $ (6.7 ) $ (7.3 ) (Decrease)/increase in valuation allowances on deferred foreign income tax assets (3.4 ) 2.0 2.4 Permanent book/tax differences 1.7 0.6 3.6 Tax on foreign and foreign-source income 1.1 (1.4 ) (1.5 ) Increase in valuation allowances on deferred state income tax assets 0.7 5.2 — State income tax benefit, not of federal benefit (0.6 ) (0.8 ) (0.6 ) Research and development credits (0.6 ) (0.7 ) (0.8 ) Increase in valuation allowances on deferred federal income tax assets 0.2 — — Impact of Tax Reform Act 0.1 0.8 — State law changes, net of federal benefit — (1.1 ) — Domestic production activities — — (0.4 ) Other 0.1 0.1 (0.1 ) Total $ (6.0 ) $ (2.0 ) $ (4.7 ) |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2018 December 31, 2017 Deferred income tax assets (liabilities) Postretirement and postemployment benefits $ 16.7 $ 20.2 Net operating losses 19.3 30.4 Accrued expenses 9.1 8.3 Deferred compensation 5.5 2.4 Customer claims reserves 2.9 2.9 Goodwill 2.2 2.6 Pension benefit liabilities 2.3 0.4 Tax credit carryforwards 2.6 2.5 Intangibles 1.7 0.6 Other 0.8 1.3 Total deferred income tax assets 63.1 71.6 Valuation allowances (29.7 ) (29.7 ) Net deferred income tax assets 33.4 41.9 Accumulated depreciation (20.2 ) (21.2 ) Inventories (8.7 ) (8.1 ) Other (1.0 ) (0.5 ) Total deferred income tax liabilities (29.9 ) (29.8 ) Net deferred income tax assets $ 3.5 $ 12.1 Deferred income taxes have been classified in the Consolidated Balance Sheet as: Deferred income tax assets—noncurrent $ 5.6 $ 14.0 Deferred income tax liabilities—noncurrent (2.1 ) (1.9 ) Net deferred income tax assets $ 3.5 $ 12.1 |
Summary of Valuation Allowance | The following table presents the components of our valuation allowance against deferred income tax assets: Year Ended December 31, 2018 2017 Federal $ 9.4 $ 0.1 State 2.8 6.1 Foreign 17.5 23.5 Total $ 29.7 $ 29.7 |
Summary of Operating Loss Carryforwards | The following is a summary of our net operating loss (“NOL”) carryforwards: Year Ended December 31, 2018 2017 State $ 17.6 $ 17.8 Foreign 65.3 83.2 Federal 14.0 30.5 |
Schedule of Unrecognized Tax Benefits | The following table presents a reconciliation of the total amounts of UTBs, excluding interest and penalties: 2018 2017 2016 Unrecognized tax benefits as of January 1, $ 4.8 $ 5.0 $ 81.9 Gross change for current year positions 0.2 0.4 1.3 (Decreases) for prior period positions (3.4 ) (0.6 ) (78.2 ) Unrecognized tax benefits balance as of December 31, $ 1.6 $ 4.8 $ 5.0 |
Schedule of Other Income Tax Amounts | The following table details amounts related to certain other taxes: Year Ended December 31, 2018 2017 2016 Payroll taxes $ 11.7 $ 10.9 $ 11.5 Property and franchise taxes 2.5 2.5 2.6 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations | The following is a summary of the operating results of DLW, which are reflected in these Consolidated Financial Statements for periods prior to the Spin-off. Year Ended December 31, 2016 (Loss) on disposal of discontinued operations before income tax $ (0.1 ) Income tax benefit 1.8 Gain on disposal of discontinued operations, net of tax $ 1.7 The following is a summary of the operating results of the wood business, which are included in discontinued operations. Year Ended December 31, 2018 2017 2016 Net Sales $ 387.0 $ 429.6 $ 483.1 Cost of goods sold 330.7 407.5 407.6 Gross profit 56.3 22.1 75.5 Selling, general and administrative expenses 36.6 39.4 42.3 Intangible asset impairment — 12.5 — Operating earnings (loss) 19.7 (29.8 ) 33.2 Interest expense — 0.1 — Other expense, net — 1.0 0.7 Earnings (loss) before income tax 19.7 (30.9 ) 32.5 Income tax expense (benefit) 9.8 (6.2 ) 8.8 Net earnings (loss) from discontinued operations $ 9.9 $ (24.7 ) $ 23.7 Year Ended December 31, 2018 2017 2016 Depreciation and Amortization $ 10.3 $ 40.0 $ 14.1 Capital Expenditures (8.0 ) (12.3 ) (11.9 ) The following is a summary of the assets and liabilities of the discontinued operations as of December 31, 2017. Year Ended December 31, 2017 Cash $ (1.1 ) Accounts and notes receivable, net 27.1 Inventories, net 119.0 Other assets 4.5 Current assets of discontinued operations $ 149.5 Year Ended December 31, 2017 Property plant and equipment, net $ 107.5 Intangible assets, net 21.8 Other noncurrent assets 1.0 Noncurrent assets of discontinued operations $ 130.3 Year Ended December 31, 2017 Accounts payable and accrued expenses $ 26.1 Current liabilities of discontinued operations $ 26.1 Year Ended December 31, 2017 Long-term debt $ 1.0 Postretirement benefit liabilities 2.9 Pension benefit liabilities 3.4 Deferred income taxes 13.1 Other liabilities 2.3 Noncurrent liabilities of discontinued operations $ 22.7 The following is a summary of the results related to the net loss on disposal of wood business which is included in discontinued operations: Year Ended December 31, 2018 (Loss) on disposal of discontinued operations before income tax $ (153.8 ) Income tax (benefit) — Net (loss) on disposal of discontinued operations $ (153.8 ) |
Accounts And Notes Receivable (
Accounts And Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables and Warranty Accruals [Abstract] | |
Schedule of Accounts and Notes Receivable, Net | The following table presents accounts and notes receivables, net of allowances: December 31, 2018 December 31, 2017 Customer receivables $ 45.4 $ 59.8 Miscellaneous receivables 6.2 4.8 Less: allowance for product warranties, discounts and losses (12.6 ) (12.0 ) Total $ 39.0 $ 52.6 |
Summary of Activity For the allowance for Product Claims | The following table summarizes the activity for the allowance for product claims: Year Ended December 31, 2018 2017 Balance as of January 1, $ (5.6 ) $ (5.1 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 (1.7 ) — Reductions for payments 7.5 8.9 Current year claim accruals (6.6 ) (9.4 ) Balance as of December 31, $ (6.4 ) $ (5.6 ) |
Earnings Per Share Of Common _2
Earnings Per Share Of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 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 per share calculations for the periods indicated. Year Ended December 31, 2018 2017 2016 Numerator (Loss) from continuing operations $ (19.1 ) $ (17.1 ) $ (16.2 ) (Loss) earnings from discontinued operations, net of tax (143.9 ) (24.7 ) 25.4 Net (loss) income $ (163.0 ) $ (41.8 ) $ 9.2 Denominator Weighted average number of common shares outstanding 25,780,214 26,977,475 27,773,434 Weighted average number of vested shares not yet issued 188,195 136,504 91,903 Weighted average number of common shares outstanding - Basic 25,968,409 27,113,979 27,865,337 Dilutive stock-based compensation awards outstanding — — 212,147 Weighted average number of common shares outstanding - Diluted 25,968,409 27,113,979 28,077,484 |
Schedule of Awards Excluded from Computation of Diluted (Loss) Earnings Per Share | The following awards were excluded from the computation of diluted (loss) earnings per share: Year Ended December 31, 2018 2017 2016 Potentially dilutive common shares excluded from diluted computation as inclusion would be anti-dilutive 474,910 743,678 201,994 Performance awards excluded from diluted computation, as performance conditions not met 862,256 849,483 646,698 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table presents details related to our inventories, net: December 31, 2018 December 31, 2017 Finished goods $ 110.5 $ 91.5 Goods in process 5.7 5.4 Raw materials and supplies 23.3 20.1 Total $ 139.5 $ 117.0 Inventories valued on a LIFO basis $ 113.3 $ 91.2 Inventories valued on FIFO or other basis $ 26.2 $ 25.8 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2018 December 31, 2017 Prepaid expenses $ 6.8 $ 14.4 Merchandising materials 9.4 11.1 Other 1.8 2.0 Total $ 18.0 $ 27.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table presents details related to our property, plant and equipment, net: December 31, 2018 December 31, 2017 Land $ 29.6 $ 30.2 Buildings 91.8 91.5 Machinery and equipment 452.8 441.8 Computer software 19.2 17.2 Construction in progress 21.5 26.0 Less accumulated depreciation and amortization (318.8 ) (296.1 ) Total $ 296.1 $ 310.6 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following table details amounts related to our intangible assets: December 31, 2018 December 31, 2017 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Long-lived intangible assets Contractual arrangements 5 years $ 36.4 $ 10.7 $ 36.6 $ 4.1 Intellectual property 2-15 years 5.0 1.3 4.9 1.1 Subtotal 41.4 $ 12.0 41.5 $ 5.2 Indefinite-lived intangible assets Trademarks and brand names Indefinite 2.6 2.3 Total $ 44.0 $ 43.8 |
Schedule of Finite-Lived Intangible Assets | The following table details amounts related to our intangible assets: December 31, 2018 December 31, 2017 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Long-lived intangible assets Contractual arrangements 5 years $ 36.4 $ 10.7 $ 36.6 $ 4.1 Intellectual property 2-15 years 5.0 1.3 4.9 1.1 Subtotal 41.4 $ 12.0 41.5 $ 5.2 Indefinite-lived intangible assets Trademarks and brand names Indefinite 2.6 2.3 Total $ 44.0 $ 43.8 |
Summary of Intangible Asset Amortization Expense | Year Ended December 31, 2018 2017 2016 Amortization expense $ 7.2 $ 4.2 $ 0.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | 2019 2020 2021 2022 2023 Expected annual amortization expense $ 7.1 $ 7.0 $ 7.0 $ 3.7 $ 0.4 |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2018 December 31, 2017 Payables, trade and other $ 99.5 $ 93.6 Employment costs 25.0 13.6 Other accrued expenses 16.9 16.9 Total $ 141.4 $ 124.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2018 December 31, 2017 Revolver $ 25.0 $ — Current portion of Term Loan A 3.7 — Noncurrent portion of Term Loan A 70.6 — ABL Facility — 85.0 Total $ 99.3 $ 85.0 |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefit Programs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations | The following tables summarize the balance sheet impact of the pension benefit plans, as well as the related benefit obligations, assets, funded status and rate assumptions. The pension benefits disclosures include both the qualified, funded Retirement Income Plan (“RIP”) and the Retirement Benefit Equity Plan, which is a nonqualified, unfunded plan designed to provide pension benefits in excess of the limits defined under Sections 415 and 401(a)(17) of the Internal Revenue Code. The disclosures also include our two Canadian pension plans. U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Change in benefit obligation: Projected benefit obligations as of January 1, $ 395.8 $ 364.4 $ 17.8 $ 16.7 Liabilities transferred to AHF, LLC (11.5 ) — — — Service cost 3.8 5.4 — — Interest cost 14.6 15.4 0.6 0.6 Foreign currency translation adjustment — — (1.2 ) 1.2 Actuarial (gain)/loss (33.4 ) 28.4 0.5 1.1 Benefits paid (22.9 ) (17.8 ) (2.1 ) (1.8 ) Projected benefit obligations as of December 31, 346.4 395.8 15.6 17.8 Change in plan assets: Fair value of plan assets as of January 1, 390.8 363.2 17.1 16.5 Assets to be transferred to AHF, LLC (8.1 ) — — — Actual return on plan assets (22.8 ) 45.3 (0.4 ) 1.2 Employer contribution 0.1 0.1 0.1 — Foreign currency translation adjustment — — (1.1 ) 1.2 Benefits paid (22.9 ) (17.8 ) (2.1 ) (1.8 ) Fair value of plan assets as of December 31, 337.1 390.8 13.6 17.1 Funded status of the plans $ (9.3 ) $ (5.0 ) $ (2.0 ) $ (0.7 ) Accumulated benefit obligation as of December 31, $ 345.1 $ 394.5 $ 15.6 $ 17.8 2018 2017 Change in benefit obligation: Projected benefit obligations as January 1, $ 76.4 $ 80.3 Service cost 0.4 0.4 Interest cost 2.6 3.2 Plan participants' contributions 1.6 1.7 Effect of curtailment (0.2 ) — Actuarial (gain)/loss (9.0 ) 0.5 Benefits paid (9.6 ) (9.7 ) Projected benefit obligation as of December 31, 62.2 76.4 Change in plan assets: Fair value of plan assets as January 1, — — Employer contribution 8.0 8.0 Plan participants' contribution 1.6 1.7 Benefits paid (9.6 ) (9.7 ) Fair value of plan assets as of December 31, — — Funded status of the plans $ (62.2 ) $ (76.4 ) |
Schedule of Assumptions Used | The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the defined-benefit pension plans: U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Weighted average assumptions used to determine benefit obligations as of December 31, Discount rate 4.40 % 3.75 % 3.80 % 3.30 % Rate of compensation increase 3.25 % 3.25 % n/a n/a Weighted average assumptions used to determine net periodic benefit cost for the period: Discount rate 3.75 % 4.30 % 3.30 % 3.80 % Expected return on plan assets 5.85 % 6.10 % 4.90 % 5.40 % Rate of compensation increase 3.25 % 3.10 % n/a n/a The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. defined-benefit postretirement benefit plans: 2018 2017 Weighted average discount rate used to determine benefit obligations as of December 31, 4.30 % 3.60 % Weighted average discount rate used to determine net periodic benefit cost 3.60 % 4.05 % |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | Defined-benefit pension plans with benefit obligations in excess of plan assets were as follows: U.S. Pension Plans Canadian Pension Plans 2018 2017 2018 2017 Projected benefit obligation, December 31 $ 346.4 $ 395.8 $ 15.2 $ 17.3 Accumulated benefit obligation, December 31 345.1 394.5 15.2 17.3 Fair value of plan assets, December 31 337.1 390.8 13.1 16.5 |
Schedule of Net Periodic Pension Cost | The components of net periodic postretirement benefit cost (credit) were as follows: Year Ended December 31, 2018 2017 2016 Service cost of benefits earned during the period $ 0.4 $ 0.4 $ 0.1 Interest cost on accumulated postretirement benefit obligations 2.6 3.2 2.6 Amortization of prior service (credit) — — (0.2 ) Amortization of net actuarial (gain) (2.5 ) (2.4 ) (3.3 ) Allocated benefit (credit) from Shared Plans — — (0.3 ) Net periodic postretirement benefit cost (credit) $ 0.5 $ 1.2 $ (1.1 ) The components of net periodic pension cost for the U.S. defined-benefit pension plans were as follows: Year Ended December 31, 2018 2017 2016 Service cost of benefits earned during the period $ 3.8 $ 5.4 $ 4.3 Interest cost on projected benefit obligation 14.6 15.4 11.7 Expected return on plan assets (22.2 ) (22.7 ) (17.4 ) Amortization of prior service cost — 0.4 0.3 Recognized net actuarial loss 10.7 10.5 7.7 Allocated benefit cost from Shared Plans — — 2.2 Net periodic pension cost $ 6.9 $ 9.0 $ 8.8 The components of net periodic pension (credit) cost for the Canadian defined-benefit pension plans were as follows: Year Ended December 31, 2018 2017 2016 Interest cost on projected benefit obligation $ 0.6 $ 0.6 $ 0.5 Expected return on plan assets (0.8 ) (0.9 ) (0.8 ) Amortization of net actuarial loss 0.2 0.2 0.2 Allocated benefit cost from Shared Plans — — 0.1 Net periodic pension (credit) cost $ — $ (0.1 ) $ — |
Schedule of Allocation of Plan Assets | The following tables set forth by level within the fair value hierarchy a summary of the U.S. and Canadian defined-benefit pension plan assets, net of payables for administrative expenses, measured at fair value on a recurring basis: Value at December 31, 2018 Level 1 Level 2 Level 3 Total U.S. Plans Fixed income securities $ — $ 202.4 $ — $ 202.4 Equities — 143.2 — 143.2 Other (0.4 ) — — (0.4 ) Net assets measured at fair value $ (0.4 ) $ 345.6 $ — $ 345.2 Assets to be transferred to AHF, LLC (8.1 ) Fair value of plan assets $ 337.1 Value at December 31, 2017 Level 1 Level 2 Level 3 Total U.S. Plans Fixed income securities $ — $ 219.2 $ — $ 219.2 Equities — 172.1 — 172.1 Other (0.5 ) — — (0.5 ) Net assets measured at fair value $ (0.5 ) $ 391.3 $ — $ 390.8 Value at December 31, 2018 Level 1 Level 2 Level 3 Total Canadian Plans Fixed income securities $ — $ 6.9 $ — $ 6.9 Equities — 6.5 — 6.5 Other 0.2 — — 0.2 Net assets measured at fair value $ 0.2 $ 13.4 $ — $ 13.6 Value at December 31, 2017 Level 1 Level 2 Level 3 Total Canadian Plans Fixed income securities $ — $ 8.4 $ — $ 8.4 Equities — 8.3 — 8.3 Other 0.4 — — 0.4 Net assets measured at fair value $ 0.4 $ 16.7 $ — $ 17.1 Each asset class used has a defined asset allocation target and allowable range. The tables below show the asset allocation targets and the December 31, 2018 and 2017 positions for each asset class: Target Weight at Position at December 31, December 31, 2018 2018 2017 U.S. Asset Class Fixed income securities 60 % 59 % 56 % Equities 40 % 41 % 44 % Target Weight at Position at December 31, December 31, 2018 2018 2017 Canadian Asset Class Fixed income securities 50 % 50 % 49 % Equities 48 % 48 % 49 % Other 2 % 2 % 2 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects on the defined-benefit postretirement benefit plans for 2019 : One percentage point Increase Decrease (Decrease) increase on total service and interest cost components $ — $ — (Decrease) increase on postretirement benefit obligation (0.8 ) 1.0 |
Schedule of Assets and (Liabilities) Recognized in Balance Sheet | Amounts recognized in assets and (liabilities) on the Consolidated Balance Sheets at year end consist of: U.S. Pension Benefits Canadian Pension Benefits 2018 2017 2018 2017 Pension benefit liabilities $ (9.3 ) $ (1.6 ) $ (2.0 ) $ (0.7 ) Net amount recognized $ (9.3 ) $ (1.6 ) $ (2.0 ) $ (0.7 ) Postretirement Benefits 2018 2017 Accounts payable and accrued expenses $ (6.5 ) $ (6.5 ) Postretirement benefit liabilities (55.7 ) (69.9 ) Net amount recognized $ (62.2 ) $ (76.4 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Pre-tax amounts recognized in AOCI at year end for our pension and postretirement benefit plans consist of: U.S. Pension Benefits Canadian Pension Benefits 2018 2017 2018 2017 Net actuarial (loss) $ (124.2 ) $ (127.4 ) $ (4.7 ) $ (3.8 ) Postretirement Benefits 2018 2017 Net actuarial gain $ 41.0 $ 34.8 |
Schedule of Expected Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years for our U.S. and Canadian plans: U.S. Pension Benefits Canadian Pension Benefits Postretirement Benefits 2019 $ 16.8 $ 1.3 $ 6.5 2020 18.4 1.3 6.2 2021 18.7 1.2 6.0 2022 19.9 1.1 5.8 2023 20.6 1.1 5.4 2024-2028 113.6 5.0 21.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Fair Value of Derivative Assets and Liabilities | The following table presents the classification of derivative assets and liabilities within the Consolidated Balance Sheets. The foreign exchange contracts outstanding are presented gross as we have not netted derivative assets with derivative liabilities: December 31, 2018 December 31, 2017 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Derivatives designated as cash flow hedging instruments Foreign exchange contracts $ 1.1 $ — $ — $ 0.8 Derivatives not designated as hedging instruments Foreign exchange contracts — — — 0.3 Total $ 1.1 $ — $ — $ 1.1 _____________ (1) Derivative assets are classified within prepaid expenses and other current assets as well as other non-current assets. (2) Derivative liabilities are classified within accounts payable and accrued expenses as well as other long-term liabilities. |
Summary of Derivative Gain (Loss) | The following tables summarize the impact of the effective portion of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (Loss): Gains (losses) recognized in other comprehensive income ("OCI") (3) (Losses) gains reclassified from AOCI (3) Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Cash flow hedges Foreign exchange contracts $ 2.0 $ (1.9 ) $ (1.7 ) $ (0.3 ) $ (0.4 ) $ 0.7 Gains (losses) recognized in income (3) Year Ended December 31, 2018 2017 2016 Non-designated hedges Foreign exchange contracts $ 1.5 $ (2.0 ) $ 0.8 _____________ (3) Gains (losses) were included in net sales and cost of goods sold. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturities of these assets and liabilities. Fair Value at December 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets Foreign exchange contracts $ 1.1 $ 1.1 $ — $ — $ 1.1 Total financial assets $ 1.1 $ 1.1 $ — $ — $ 1.1 Financial liabilities Total debt $ (99.3 ) $ — $ (99.3 ) $ — $ (99.3 ) Total financial liabilities $ (99.3 ) $ — $ (99.3 ) $ — $ (99.3 ) Fair Value at December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial liabilities Derivatives designated as hedging instruments: Foreign exchange contracts $ (0.8 ) $ (0.8 ) $ — $ — $ (0.8 ) Derivatives not designated as hedging instruments: Foreign exchange contracts (0.3 ) (0.3 ) — — (0.3 ) Total debt (85.0 ) — (85.0 ) — (85.0 ) Total financial liabilities $ (86.1 ) $ (1.1 ) $ (85.0 ) $ — $ (86.1 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the activity, by component, related to the change in AOCI for December 31, 2018 and 2017 : Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2016 $ 0.5 $ 0.5 $ (60.8 ) $ (59.8 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $ — , $0.7, $1.2 and $1.9 7.2 (1.9 ) (5.4 ) (0.1 ) Amounts reclassified from accumulated other comprehensive income — 0.4 7.0 7.4 Net current period other comprehensive income (loss) 7.2 (1.5 ) 1.6 7.3 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 income (loss) before reclassifications, net of tax impact of $ — , ($0.5), $1.0 and $0.5 (6.0 ) 1.4 1.2 (3.4 ) Amounts reclassified from accumulated other comprehensive income — 0.3 6.6 6.9 Net current period other comprehensive income (loss) (6.0 ) 1.7 7.8 3.5 Balance, December 31, 2018 $ 1.7 $ 0.8 $ (64.1 ) $ (61.6 ) The amounts and related tax effects allocated to each component of OCI in 2018 , 2017 and 2016 are presented in the table below. Pre-tax Amount Tax Impact After-tax Amount 2018 Foreign currency translation adjustments $ (6.0 ) $ — $ (6.0 ) Derivative adjustments 2.3 (0.6 ) 1.7 Pension and postretirement adjustments 8.5 (0.7 ) 7.8 Total other comprehensive income $ 4.8 $ (1.3 ) $ 3.5 2017 Foreign currency translation adjustments $ 7.2 $ — $ 7.2 Derivative adjustments (2.0 ) 0.5 (1.5 ) Pension and postretirement adjustments 2.2 (0.6 ) 1.6 Total other comprehensive (loss) $ 7.4 $ (0.1 ) $ 7.3 2016 Foreign currency translation adjustments $ (8.2 ) $ — $ (8.2 ) Derivative adjustments (2.0 ) 0.4 (1.6 ) Postretirement adjustments 3.3 (1.1 ) 2.2 Total other comprehensive (loss) $ (6.9 ) $ (0.7 ) $ (7.6 ) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCI and the affected line item of the Consolidated Statements of Operations are presented in the table below. Year Ended December 31, 2018 2017 2016 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ 0.1 $ 0.3 Cost of goods sold Foreign exchange contracts - purchases — (0.1 ) — Earnings (loss) from discontinued operations Foreign exchange contracts - sales 0.4 0.3 (1.0 ) Net sales Foreign exchange contracts - sales 0.1 0.3 (0.8 ) Earnings (loss) from discontinued operations Total expense/(income) before tax 0.4 0.6 (1.5 ) Tax impact (0.1 ) (0.2 ) 0.2 Income tax (benefit) Tax impact — — 0.3 Earnings (loss) from discontinued operations Total expense (income), net of tax 0.3 0.4 (1.0 ) Pension and postretirement adjustments Prior service cost amortization — 0.4 0.1 Other expense, net Amortization of net actuarial loss 8.4 8.4 4.6 Other expense, net Amortization of net actuarial loss (0.1 ) — 0.1 Earnings (loss) from discontinued operations Total expense before tax 8.3 8.8 4.8 Tax impact (1.8 ) (1.8 ) (1.6 ) Income tax (benefit) Tax impact 0.1 — (0.1 ) Earnings (loss) from discontinued operations Total expense, net of tax 6.6 7.0 3.1 Total reclassifications for the period $ 6.9 $ 7.4 $ 2.1 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 164.3 $ 201.2 $ 208.9 $ 153.8 Gross profit 29.3 43.7 45.2 25.0 (Loss) earnings from continuing operations (10.4 ) 0.2 6.0 (14.9 ) Per share of common stock: Basic $ (0.40 ) $ 0.01 $ 0.24 $ (0.57 ) Diluted (0.40 ) 0.01 0.23 (0.57 ) 2017 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 160.8 $ 188.4 $ 195.5 $ 159.4 Gross profit 32.8 45.0 43.9 29.4 (Loss) earnings from continuing operations (12.2 ) 2.5 15.2 (22.6 ) Per share of common stock: Basic $ (0.44 ) $ 0.09 $ 0.57 $ (0.87 ) Diluted (0.44 ) 0.09 0.57 (0.87 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
(Accumulated deficit) | $ (186.3) | $ (31.8) | |
Prepaid expenses and other current assets | 18 | 27.5 | |
Accounts receivable, net | $ (39) | $ (52.6) | |
Minimum | Manufacturing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 3 years | ||
Minimum | Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 3 years | ||
Minimum | Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 5 years | ||
Minimum | Tooling and engraving equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 3 years | ||
Minimum | Heavy production equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 10 years | ||
Minimum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 15 years | ||
Minimum | Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 3 years | ||
Maximum | Manufacturing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 15 years | ||
Maximum | Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 5 years | ||
Maximum | Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 7 years | ||
Maximum | Tooling and engraving equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 7 years | ||
Maximum | Heavy production equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 15 years | ||
Maximum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 30 years | ||
Maximum | Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property, plant, and equipment | 7 years | ||
Contractual Rights | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 5 years | ||
Contractual Rights | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 5 years | ||
Intellectual Property | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 2 years | ||
Intellectual Property | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 15 years | ||
ASU 2016-02 | |||
Property, Plant and Equipment [Line Items] | |||
Impact of adoption of ASU 2016-02, quantification | $ 10 | ||
Impact of Adoption | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 | |||
Property, Plant and Equipment [Line Items] | |||
(Accumulated deficit) | $ (4.1) | ||
Prepaid expenses and other current assets | 0.4 | ||
Accounts receivable, net | 4.5 | ||
ASU 2018-02 | |||
Property, Plant and Equipment [Line Items] | |||
Tax Cuts And Jobs Act, reclassification from AOCI to Acumulated deficit | $ (12.6) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Net AWI Investments (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Statements of Stockholders' Equity | |||||
Net transfers (to) from AWI during period | $ (11.2) | $ 53.6 | $ (0.8) | $ 42.4 | |
Other activity concurrent with Spin-off | 0 | ||||
Cash distribution paid to AWI upon Spin-off | (50) | (50) | |||
Net transfers (to) from AWI | (7.6) | ||||
Consolidated Statements of Cash Flows - Financing Activities | |||||
Net transfers (to) from AWI | 9 | $ 53.6 | $ 0 | 0 | 55.6 |
Other activity concurrent with Spin-off | (7) | ||||
Cash distribution paid to AWI upon Spin-off | $ (50) | $ 0 | 0 | (50) | |
Net transfers (to) from AWI | $ 5.6 | ||||
Adjustments related to tax attributes assumed upon spin-off | $ 0.7 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Impact of Adoption of ASU 2017-07 on Results of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of goods sold | $ 585 | $ 553 | $ 554.5 |
Selling, general and administrative expenses | 160.6 | 163.8 | 168.1 |
Operating (loss) | $ (17.4) | (12.7) | (12.5) |
Other expense, net | (3.7) | (6.9) | |
Prior to Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of goods sold | 555.1 | 556.1 | |
Selling, general and administrative expenses | 164.6 | 168.7 | |
Operating (loss) | (15.6) | (14.7) | |
Other expense, net | (0.8) | (4.7) | |
ASU 2017-07 | Impact of Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of goods sold | (2.1) | (1.6) | |
Selling, general and administrative expenses | (0.8) | (0.6) | |
Operating (loss) | 2.9 | 2.2 | |
Other expense, net | $ (2.9) | $ (2.2) |
Nature of Operations - Sales by
Nature of Operations - Sales by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 153.8 | $ 208.9 | $ 201.2 | $ 164.3 | $ 159.4 | $ 195.5 | $ 188.4 | $ 160.8 | $ 728.2 | $ 704.1 | $ 710.1 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 563.4 | 549.9 | 565.3 | ||||||||
CHINA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 68.7 | 59.3 | 51.2 | ||||||||
CANADA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 49.2 | 48.6 | 51.5 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 46.9 | $ 46.3 | $ 42.1 |
Nature of Operations - Property
Nature of Operations - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 296.1 | $ 310.6 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 205.9 | 212.5 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 78 | 85 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 12.2 | $ 13.1 |
Nature of Operations - Narrativ
Nature of Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Major Customer [Line Items] | |||||||||||
Net sales | $ 153.8 | $ 208.9 | $ 201.2 | $ 164.3 | $ 159.4 | $ 195.5 | $ 188.4 | $ 160.8 | $ 728.2 | $ 704.1 | $ 710.1 |
Customer A | |||||||||||
Revenue from Major Customer [Line Items] | |||||||||||
Net sales | $ 122.6 |
Severance Expense - Narrative (
Severance Expense - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($)employee | Mar. 31, 2018USD ($)employee | Mar. 31, 2017USD ($)employee | Dec. 31, 2016USD ($)position |
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated | 45 | 70 | 40 | 6 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance expenses | $ 2.4 | $ 3.1 | $ 4.6 | $ 1.7 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of RSUs | $ 0.7 | |||
Excess tax benefit | $ 0.1 | $ 0.5 | ||
Performance Share Awards (PSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance condition based on earnings before interest, taxes, depreciation and amortization | 75.00% | |||
Performance condition based on cumulative free cash flow | 25.00% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of shares accounted for as liability awards (in shares) | 324,600 | 231,600 | ||
Weighted-average grant date fair value of PSUs and RSUs (in dollars per share) | $ 16.12 | $ 17.21 | ||
Restricted Stock Units (RSUs) | Year One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Restricted Stock Units (RSUs) | Year Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Restricted Stock Units (RSUs) | Year Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Modified Performance Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period completed at modification | 2 years | |||
Award requisite service period | 3 years | |||
Performance Share Units that may be settled in cash | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares accounted for as liability awards (in shares) | 6,895 | 5,228 | ||
Restricted Stock Units that may be settled in cash | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares accounted for as liability awards (in shares) | 6,825 | 5,676 | ||
Grant date fair value of RSUs | $ 2.1 | $ 3.1 | ||
PSAs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares accounted for as liability awards (in shares) | 1,102,500 | 892,700 | ||
Weighted-average grant date fair value of PSUs and RSUs (in dollars per share) | $ 13.94 | $ 16.54 | ||
Performance Shares, Performance Share Units and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation expense | $ 6.5 | |||
Weighted average period | 1 year 10 months 7 days | |||
2016 LTIP Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 2,566,814 | |||
2016 Directors' Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 245,363 | |||
2016 Directors' Plan | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Number of shares accounted for as liability awards (in shares) | 241,730 | 188,868 | ||
Common Stock | 2016 LTIP Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 7,600,000 | 5,500,000 | ||
Number of additional shares authorized (in shares) | 2,100,000 | |||
Common Stock | 2016 Directors' Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 600,000 |
Stock-Based Compensation - PSA
Stock-Based Compensation - PSA Valuation Assumptions (Details) - 2016 LTIP Plan - Performance Share Awards (PSAs) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date stock price (in dollars per share) | $ 15.41 | $ 12.44 |
Risk-free rate of return | 1.60% | 0.80% |
Expected volatility | 31.40% | 36.20% |
Expected term (in years) | 3 years | 2 years 9 months 18 days |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation - Summary of Non-Employee RSU Activity (Details) - Restricted Stock Units (RSUs) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested as of December 31 (in shares) | 137,000 | |
Outstanding as of December 31 (in shares) | 324,600 | 231,600 |
2016 Directors' Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested as of December 31 (in shares) | 174,442 | 140,146 |
Granted (in shares) | 67,288 | 48,722 |
Outstanding as of December 31 (in shares) | 241,730 | 188,868 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Modified Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares (in thousands) | ||
Number of Shares, Outstanding, Beginning of Period (in shares) | 533,600 | |
Number of Shares, Exercised (in shares) | (66,100) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (14,000) | |
Number of Shares, Outstanding, Ending of Period (in shares) | 453,500 | 533,600 |
Number of Shares, Exercisable (in shares) | 453,500 | |
Weighted Average Exercise Price (per share) | ||
Outstanding, beginning of period (in dollars per share) | $ 12.77 | |
Exercised (in dollars per share) | 11.65 | |
Canceled (in dollars per share) | (14.15) | |
Outstanding, end of period (in dollars per share) | 12.89 | $ 12.77 |
Exercisable (in dollars per share) | $ 12.89 | |
Additional Stock Option Activity Disclosures | ||
Weighted Average Remaining Contractual Term (years), Outstanding | 3 years 7 months 1 day | 4 years 8 months 10 days |
Weighted Average Remaining Contractual Term (years), Exercisable | 3 years 7 months 1 day | |
Aggregate Intrinsic Value, Outstanding | $ 0.2 | $ 2.2 |
Aggregate Intrinsic Value, Exercisable | $ 0.2 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total intrinsic value of stock options exercised | $ 0.3 | $ 0.5 | |
Cash proceeds received from options exercised | $ 0.8 | $ 1.4 | $ 0.3 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Activity Related to PSAs, PSUs, and RSUs (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
PSAs and PSUs | |
Number of Shares (in thousands) | |
Outstanding at beginning of period (in shares) | shares | 892,700 |
Granted (in shares) | shares | 354,700 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (144,900) |
Outstanding at end of period (in shares) | shares | 1,102,500 |
Weighted-Average Grant-Date Fair Value (per share) | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 13.93 |
Granted (in dollars per share) | $ / shares | 13.94 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 14.27 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 13.88 |
RSUs | |
Number of Shares (in thousands) | |
Outstanding at beginning of period (in shares) | shares | 231,600 |
Granted (in shares) | shares | 308,300 |
Vested (in shares) | shares | (137,000) |
Forfeited (in shares) | shares | (78,300) |
Outstanding at end of period (in shares) | shares | 324,600 |
Weighted-Average Grant-Date Fair Value (per share) | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 15.77 |
Granted (in dollars per share) | $ / shares | 16.12 |
Vested (in dollars per share) | $ / shares | 15.32 |
Forfeited (in dollars per share) | $ / shares | 16.79 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 16.13 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense and Related Tax Effects (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $ 4.7 | $ 1.5 | $ 5.4 |
Income tax benefit | $ 1.1 | $ 0.8 | $ 2.5 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 11 | $ 10.1 | $ 8.5 |
Termination fee to cancel sublease before end of term | $ 2.5 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 10 |
2,020 | 7.1 |
2,021 | 2 |
2,022 | 0.3 |
2,023 | 0.2 |
Thereafter | 0.8 |
Total | $ 20.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Percentage of Net Operating Losses Limited upon Tax Reform Enactment | 80.00% | |||
Tax Cuts And Jobs Act Of 2017, provisional income tax expense | $ 0.1 | |||
Undistributed earnings of foreign subsidiaries | 11.3 | |||
Future annual required taxable income for state tax purposes | 69.6 | |||
Unrecognized tax benefits | 1.6 | $ 4.8 | $ 5 | $ 81.9 |
Unrecognized tax benefit that would impact effective tax rate, net of federal tax benefits | 0.1 | |||
Decrease resulting from prior period tax positions | 3.4 | 0.6 | $ 78.2 | |
Decrease to prior period tax positions related to Tax Cuts and Jobs Act of 2017 | $ 0.5 | |||
Discontinued Operations, Disposed of by Sale | ||||
Operating Loss Carryforwards [Line Items] | ||||
Decrease resulting from prior period tax positions | $ 3.1 |
Income Taxes - Schedule of Dome
Income Taxes - Schedule of Domestic and Foreign Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (28.1) | $ (18) | $ (15.1) |
Foreign | 3 | (1.1) | (5.8) |
(Loss) from continuing operations before income taxes | $ (25.1) | $ (19.1) | $ (20.9) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 0.3 | $ (4.7) | $ (0.9) |
Foreign | 0.6 | (0.4) | (0.4) |
State and local | 0.2 | 0 | 0.3 |
Subtotal | 1.1 | (5.1) | (1) |
Deferred | |||
Federal | (4.6) | (0.3) | (3.8) |
Foreign | (2.5) | 0.1 | 0.5 |
State and local | 0 | 3.3 | (0.4) |
Subtotal | (7.1) | 3.1 | (3.7) |
Total income tax expense (benefit) | $ (6) | $ (2) | $ (4.7) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | |||
Continuing operations tax at statutory rate | $ (5.3) | $ (6.7) | $ (7.3) |
Permanent book/tax differences | 1.7 | 0.6 | 3.6 |
Tax on foreign and foreign-source income | 1.1 | (1.4) | (1.5) |
State income tax expense (benefit), net of federal benefit | (0.6) | (0.8) | (0.6) |
Research and development credits | (0.6) | (0.7) | (0.8) |
Domestic production activities | 0 | 0 | (0.4) |
Other | 0.1 | 0.1 | (0.1) |
Total income tax expense (benefit) | (6) | (2) | (4.7) |
State | |||
Valuation Allowance [Line Items] | |||
(Decrease)/increase in valuation allowances on deferred foreign income tax assets | 0.7 | 5.2 | 0 |
Law changes | 0 | (1.1) | 0 |
Federal | |||
Valuation Allowance [Line Items] | |||
(Decrease)/increase in valuation allowances on deferred foreign income tax assets | 0.2 | 0 | 0 |
Law changes | 0.1 | 0.8 | 0 |
Foreign | |||
Valuation Allowance [Line Items] | |||
(Decrease)/increase in valuation allowances on deferred foreign income tax assets | $ (3.4) | $ 2 | $ 2.4 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets (liabilities) | ||
Postretirement and postemployment benefits | $ 16.7 | $ 20.2 |
Net operating losses | 19.3 | 30.4 |
Accrued expenses | 9.1 | 8.3 |
Deferred compensation | 5.5 | 2.4 |
Customer claims reserves | 2.9 | 2.9 |
Goodwill | 2.2 | 2.6 |
Pension benefit liabilities | 2.3 | 0.4 |
Tax credit carryforwards | 2.6 | 2.5 |
Intangibles | 1.7 | 0.6 |
Other | 0.8 | 1.3 |
Total deferred income tax assets | 63.1 | 71.6 |
Valuation allowances | (29.7) | (29.7) |
Net deferred income tax assets | 33.4 | 41.9 |
Accumulated depreciation | (20.2) | (21.2) |
Inventories | (8.7) | (8.1) |
Other | (1) | (0.5) |
Total deferred income tax liabilities | (29.9) | (29.8) |
Net deferred income tax assets | 3.5 | 12.1 |
Deferred income taxes have been classified in the Consolidated Balance Sheet as: | ||
Deferred income tax assets—noncurrent | 5.6 | 14 |
Deferred income tax liabilities—noncurrent | $ (2.1) | $ (1.9) |
Income Taxes Income Taxes - Sch
Income Taxes Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||
Valuation allowance | $ 29.7 | $ 29.7 |
Federal | ||
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||
Valuation allowance | 9.4 | 0.1 |
State | ||
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||
Valuation allowance | 2.8 | 6.1 |
Foreign | ||
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||
Valuation allowance | $ 17.5 | $ 23.5 |
Income Taxes Income Taxes - S_2
Income Taxes Income Taxes - Schedule of Net Operating Loss Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 17.6 | $ 17.8 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 65.3 | 83.2 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 14 | $ 30.5 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 4.8 | $ 5 | $ 81.9 |
Gross change for current year positions | 0.2 | 0.4 | 1.3 |
Decreases for prior period positions | (3.4) | (0.6) | (78.2) |
Unrecognized tax benefits, ending balance | $ 1.6 | $ 4.8 | $ 5 |
Income Taxes - Schedule of Othe
Income Taxes - Schedule of Other Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Payroll taxes | $ 11.7 | $ 10.9 | $ 11.5 |
Property and franchise taxes | $ 2.5 | $ 2.5 | $ 2.6 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of discontinued operations | $ 90.2 | $ 0 | $ 0 | |
Other Income | 3 | |||
Termination fee to cancel sublease before end of term | 2.5 | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ (153.8) | $ 0 | 0 | |
DLW Subsidiary | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 1.7 | |||
DLW Subsidiary | Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pension benefit liability | $ 115 | |||
Deferred tax asset and tax benefit | $ 43.4 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Results of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating earnings (loss) | $ (17.4) | $ (12.7) | $ (12.5) |
Other expense, net | 2.9 | 3.7 | 6.9 |
Net earnings (loss) from discontinued operations | 9.9 | (24.7) | 25.4 |
Depreciation and Amortization | 10.3 | 40 | 14.1 |
Capital Expenditures | (8) | (12.3) | (11.9) |
Gain (loss) on disposal of discontinued operations before income tax | (153.8) | ||
Income tax (benefit) | 0 | ||
Gain (loss) on disposal of discontinued operations, net of tax | (153.8) | 0 | 0 |
DLW Subsidiary | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income tax expense (benefit) | 1.8 | ||
Gain (loss) on disposal of discontinued operations before income tax | (0.1) | ||
Gain (loss) on disposal of discontinued operations, net of tax | 1.7 | ||
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | 387 | 429.6 | 483.1 |
Cost of goods sold | 330.7 | 407.5 | 407.6 |
Gross profit | 56.3 | 22.1 | 75.5 |
Selling, general and administrative expenses | 36.6 | 39.4 | 42.3 |
Intangible asset impairment | 0 | 12.5 | 0 |
Operating earnings (loss) | 19.7 | (29.8) | 33.2 |
Interest expense | 0 | 0.1 | 0 |
Other expense, net | 0 | 1 | 0.7 |
Earnings (loss) before income tax | 19.7 | (30.9) | 32.5 |
Income tax expense (benefit) | 9.8 | (6.2) | 8.8 |
Net earnings (loss) from discontinued operations | $ 9.9 | $ (24.7) | $ 23.7 |
Discontinued Operations Summary
Discontinued Operations Summary of Carrying Amount of Major Classes of Assets and Liabilities Related to Wood Operations (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | $ 0 | $ (1.1) | $ (1.6) |
Accounts and notes receivable, net | 27.1 | ||
Inventories, net | 119 | ||
Other assets | 4.5 | ||
Current assets of discontinued operations | 0 | 149.5 | |
Intangible assets, net | 21.8 | ||
Other noncurrent assets | 1 | ||
Noncurrent assets of discontinued operations | 0 | 130.3 | |
Accounts payable and accrued expenses | 26.1 | ||
Current liabilities of discontinued operations | 0 | 26.1 | |
Postretirement benefit liabilities | 2.9 | ||
Pension benefit liabilities | 3.4 | ||
Deferred income taxes | 13.1 | ||
Other liabilities | 2.3 | ||
Noncurrent liabilities of discontinued operations | $ 0 | 22.7 | |
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property plant and equipment, net | 107.5 | ||
Long-term debt | $ 1 |
Accounts And Notes Receivable -
Accounts And Notes Receivable - Receivables Net of Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables and Warranty Accruals [Abstract] | ||
Customer receivables | $ 45.4 | $ 59.8 |
Miscellaneous receivables | 6.2 | 4.8 |
Less: allowance for product warranties, discounts and losses | (12.6) | (12) |
Total | $ 39 | $ 52.6 |
Earnings Per Share Of Common _3
Earnings Per Share Of Common Stock (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Numerator | ||||||||||||
Income from continuing operations | $ (14.9) | $ 6 | $ 0.2 | $ (10.4) | $ (22.6) | $ 15.2 | $ 2.5 | $ (12.2) | $ (19.1) | $ (17.1) | $ (16.2) | |
(Loss) earnings from discontinued operations, net of tax | (143.9) | (24.7) | 25.4 | |||||||||
Net (loss) income | $ (163) | $ (41.8) | $ 9.2 | |||||||||
Denominator | ||||||||||||
Weighted average number of common shares outstanding (in shares) | 25,780,214 | 26,977,475 | 27,773,434 | |||||||||
Weighted average number of vested shares not yet issued (in shares) | 188,195 | 136,504 | 91,903 | |||||||||
Weighted average number of common shares outstanding - Basic (in shares) | 25,968,409 | 27,113,979 | 27,865,337 | |||||||||
Dilutive stock-based compensation awards outstanding (in shares) | 0 | 0 | 212,147 | |||||||||
Weighted average number of common shares outstanding - Diluted (in shares) | 25,968,409 | 27,113,979 | 28,077,484 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Issuance of common stock at separation (in shares) | 0 | |||||||||||
Stock Compensation Plan | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Securities excluded from computation of earnings per share (in shares) | 474,910 | 743,678 | 201,994 | |||||||||
Performance Share Awards (PSAs) | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Securities excluded from computation of earnings per share (in shares) | 862,256 | 849,483 | 646,698 | |||||||||
Common Stock | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Issuance of common stock at separation (in shares) | 27,738,779 | 27,738,779 |
Accounts And Notes Receivable_2
Accounts And Notes Receivable - Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning Balance | $ (5.6) | $ (5.1) |
Cumulative effect of adoption of new revenue recognition standard as of January 1 | (1.7) | 0 |
Reductions for payments | 7.5 | 8.9 |
Current year claim accruals | (6.6) | (9.4) |
Ending Balance | $ (6.4) | $ (5.6) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 110.5 | $ 91.5 |
Goods in process | 5.7 | 5.4 |
Raw materials and supplies | 23.3 | 20.1 |
Total | 139.5 | 117 |
Inventories valued on FIFO or other basis | 113.3 | 91.2 |
Inventories valued on a LIFO basis | $ 26.2 | $ 25.8 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Change in accounting principle effect on inventory | $ 3 | $ 0.3 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 6.8 | $ 14.4 |
Merchandising materials | 9.4 | 11.1 |
Other | 1.8 | 2 |
Total | $ 18 | $ 27.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (318.8) | $ (296.1) |
Total | 296.1 | 310.6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 29.6 | 30.2 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 91.8 | 91.5 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 452.8 | 441.8 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19.2 | 17.2 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 21.5 | $ 26 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Payments to acquire businesses | $ 0 | $ 36.1 | $ 0 | |
Intangible assets assigned | 41.4 | 41.5 | ||
Vinyl Composition Tile Assets Of Mannington Mills, Inc. [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Payments to acquire businesses | $ 36.1 | |||
Purchase price allocated to indefinite-lived Intangible assets | 33.6 | |||
Contingent consideration, liability | 9 | |||
Contingent consideration, range of outcomes in each measurement period, low | 0 | |||
Contingent consideration, range of outcomes In each measurement Period, high | 4.5 | |||
Contractual Rights | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets assigned | $ 36.4 | 36.6 | ||
Estimated useful lives of finite-lived intangible assets | 5 years | |||
Contractual Rights | Vinyl Composition Tile Assets Of Mannington Mills, Inc. [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets assigned | $ 33.3 | |||
Estimated useful lives of finite-lived intangible assets | 5 years | |||
Intellectual Property | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets assigned | $ 5 | $ 4.9 | ||
Intellectual Property | Vinyl Composition Tile Assets Of Mannington Mills, Inc. [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets assigned | $ 0.3 | |||
Estimated useful lives of finite-lived intangible assets | 2 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 41.4 | $ 41.5 |
Accumulated Amortization | 12 | 5.2 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 44 | 43.8 |
Contractual Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Gross Carrying Amount | $ 36.4 | 36.6 |
Accumulated Amortization | 10.7 | 4.1 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5 | 4.9 |
Accumulated Amortization | $ 1.3 | 1.1 |
Minimum | Contractual Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Minimum | Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 2 years | |
Maximum | Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 15 years | |
Trademarks and brand names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2.6 | $ 2.3 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 7.2 | $ 4.2 | $ 0.4 |
Intangible Assets - Schedule _3
Intangible Assets - Schedule of Expected Future Annual Amortization Expense (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 7.1 |
2,020 | 7 |
2,021 | 7 |
2,022 | 3.7 |
2,023 | $ 0.4 |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payables, trade and other | $ 99.5 | $ 93.6 |
Employment costs | 25 | 13.6 |
Other accrued expenses | 16.9 | 16.9 |
Total | $ 141.4 | $ 124.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 25 | $ 0 |
Long-term Debt, Current Maturities | 3.7 | 0 |
Long-term debt excluding current maturities | 70.6 | 85 |
Total debt | 99.3 | 85 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt excluding current maturities | 70.6 | 0 |
ABL Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt excluding current maturities | $ 0 | $ 85 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Dec. 31, 2018USD ($) | Jan. 04, 2019 | Dec. 31, 2017USD ($) | Apr. 01, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Long term debt | $ 99,300,000 | $ 85,000,000 | ||
Assets of wholly owned domestic subsidiaries individually or together (more than) | 1,000,000 | |||
Long-term obligations, net of fees | 70,600,000 | 85,000,000 | ||
Short-term obligation | 3,700,000 | 0 | ||
Lines of credit available to Foreign Subsidiaries | 8,700,000 | |||
Amount triggering cross-default provision | $ 15,000,000 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit arrangement covenant net leverage ratio multiple | 3 | |||
Covenant terms, minimum fixed charge coverage ratio | 1.25 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Credit arrangement covenant net leverage ratio multiple | 1 | |||
Covenant terms, minimum fixed charge coverage ratio | 1 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit sublimit | $ 25,000,000 | |||
Swing line loans | 15,000,000 | |||
Outstanding under revolving credit facility | 25,000,000 | |||
Letters of credit outstanding | $ 3,900,000 | |||
Unused capacity commitment fee (percent) | 0.20% | |||
Fees for outstanding letters of credit, percentage | 1.875% | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term obligations, net of fees | $ 70,600,000 | $ 0 | ||
Line of Credit | Revolving Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Credit Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Long term debt | 75,000,000 | |||
Credit facility, increase that can be requested | 25,000,000 | |||
Credit Agreement | Term Loan | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 75,000,000 | |||
Long-term obligations, net of fees | 70,600,000 | |||
ABL Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 225,000,000 | $ 225,000,000 | ||
Cash distribution to former parent | 94,000,000 | |||
Fees related to facility | $ 600,000 | |||
Interest rate | 6.25% | |||
Subsequent Event | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.26% |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefit Programs - Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan costs | $ 6.2 | $ 6.5 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset class performance period | 20 years | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed defined-benefit pension plan assets | $ 381.4 | ||
Defined benefit pension obligations | 385.4 | ||
AOCL related to pension and other postretirement benefit plans | 101.8 | ||
Retiree Health and Life Insurance Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension obligations | $ 82.9 | ||
Health care cost trend rate assumed for next fiscal year, pre-65 retiree | 7.50% | ||
Health care cost rate assumed by 2026 | 4.50% | ||
Expected amortization of unrecognized net actuarial losses in 2019 | $ 3.3 | ||
Retiree Health and Life Insurance Plans | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next fiscal year, post-65 retiree | 8.60% | ||
Retiree Health and Life Insurance Plans | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next fiscal year, post-65 retiree | 11.10% | ||
U.S. Pension Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets (in percentage) | 5.85% | 6.10% | |
Expected unrecognized prior service cost and net actuarial losses to be recognized in 2019 | $ 8.9 | ||
Expected employer contributions in 2019 | 0.1 | ||
U.S. Pension Plan | Retiree Health and Life Insurance Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contributions in 2019 | $ 6.5 | ||
Canadian Pension Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets (in percentage) | 4.90% | 5.40% | |
Expected unrecognized prior service cost and net actuarial losses to be recognized in 2019 | $ 0.3 | ||
Expected employer contributions in 2019 | $ 0.1 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefit Programs - Schedule of Change in Benefit Obligation and Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | |||
Fair value of plan assets as of end of period | $ 337.1 | ||
Canadian Pension Plan | |||
Change in plan assets: | |||
Accumulated benefit obligation | 15.6 | $ 17.8 | |
Retiree Health and Life Insurance Plans | |||
Change in benefit obligation: | |||
Benefit obligations as of beginning of period | 76.4 | 80.3 | |
Service cost | 0.4 | 0.4 | $ 0.1 |
Interest cost | 2.6 | 3.2 | 2.6 |
Actuarial (gain) loss | (9) | 0.5 | |
Benefits paid | (9.6) | (9.7) | |
Benefit obligation as of end of period | 62.2 | 76.4 | 80.3 |
Change in plan assets: | |||
Fair value of plan assets as of beginning of period | 0 | 0 | |
Employer contribution | 8 | 8 | |
Plan participants' contribution | 1.6 | 1.7 | |
Benefits paid | (9.6) | (9.7) | |
Fair value of plan assets as of end of period | 0 | 0 | 0 |
Funded status of the plans | (62.2) | (76.4) | |
U.S. Pension Plan | |||
Change in plan assets: | |||
Accumulated benefit obligation | 345.1 | 394.5 | |
U.S. Pension Plan | |||
Change in plan assets: | |||
Employer contribution | 0.1 | 0.1 | |
U.S. Pension Plan | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligations as of beginning of period | 395.8 | 364.4 | |
Liabilities transferred to AHF, LLC | (11.5) | 0 | |
Service cost | 3.8 | 5.4 | 4.3 |
Interest cost | 14.6 | 15.4 | 11.7 |
Foreign currency translation adjustment | 0 | 0 | |
Actuarial (gain) loss | (33.4) | 28.4 | |
Benefits paid | (22.9) | (17.8) | |
Benefit obligation as of end of period | 346.4 | 395.8 | 364.4 |
Change in plan assets: | |||
Fair value of plan assets as of beginning of period | 390.8 | 363.2 | |
Assets received from separation | (8.1) | 0 | |
Actual return on plan assets | (22.8) | 45.3 | |
Foreign currency translation adjustment | 0 | 0 | |
Benefits paid | (22.9) | (17.8) | |
Fair value of plan assets as of end of period | 337.1 | 390.8 | 363.2 |
Funded status of the plans | (9.3) | (5) | |
Canadian Pension Plan | |||
Change in plan assets: | |||
Employer contribution | 0.1 | 0 | |
Canadian Pension Plan | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligations as of beginning of period | 17.8 | 16.7 | |
Liabilities transferred to AHF, LLC | 0 | 0 | |
Service cost | 0 | 0 | |
Interest cost | 0.6 | 0.6 | 0.5 |
Foreign currency translation adjustment | (1.2) | 1.2 | |
Actuarial (gain) loss | 0.5 | 1.1 | |
Benefits paid | (2.1) | (1.8) | |
Benefit obligation as of end of period | 15.6 | 17.8 | 16.7 |
Change in plan assets: | |||
Fair value of plan assets as of beginning of period | 17.1 | 16.5 | |
Assets received from separation | 0 | 0 | |
Actual return on plan assets | (0.4) | 1.2 | |
Foreign currency translation adjustment | (1.1) | 1.2 | |
Benefits paid | (2.1) | (1.8) | |
Fair value of plan assets as of end of period | 13.6 | 17.1 | $ 16.5 |
Funded status of the plans | $ (2) | $ (0.7) |
Pension And Other Postretirem_5
Pension And Other Postretirement Benefit Programs - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retiree Health and Life Insurance Plans | ||
Weighted average assumptions used to determine benefit obligations as of December 31, | ||
Discount rate (in percentage) | 4.30% | 3.60% |
Weighted average assumptions used to determine net periodic benefit cost for the period: | ||
Discount rate (in percentage) | 3.60% | 4.05% |
U.S. Pension Plan | Pension Plan | ||
Weighted average assumptions used to determine benefit obligations as of December 31, | ||
Discount rate (in percentage) | 4.40% | 3.75% |
Rate of compensation increase (in percentage) | 3.25% | 3.25% |
Weighted average assumptions used to determine net periodic benefit cost for the period: | ||
Discount rate (in percentage) | 3.75% | 4.30% |
Expected return on plan assets (in percentage) | 5.85% | 6.10% |
Rate of compensation increase (in percentage) | 3.25% | 3.10% |
Canadian Pension Plan | Pension Plan | ||
Weighted average assumptions used to determine benefit obligations as of December 31, | ||
Discount rate (in percentage) | 3.80% | 3.30% |
Weighted average assumptions used to determine net periodic benefit cost for the period: | ||
Discount rate (in percentage) | 3.30% | 3.80% |
Expected return on plan assets (in percentage) | 4.90% | 5.40% |
Pension And Other Postretirem_6
Pension And Other Postretirement Benefit Programs - Benefit Obligations in Excess of Assets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Pension Plan | ||
Defined-benefit pension plans with benefit obligations in excess of assets | ||
Projected benefit obligation, December 31 | $ 346.4 | $ 395.8 |
Accumulated benefit obligation, December 31 | 345.1 | 394.5 |
Fair value of plan assets, December 31 | 337.1 | 390.8 |
Canadian Pension Plan | ||
Defined-benefit pension plans with benefit obligations in excess of assets | ||
Projected benefit obligation, December 31 | 15.2 | 17.3 |
Accumulated benefit obligation, December 31 | 15.2 | 17.3 |
Fair value of plan assets, December 31 | $ 13.1 | $ 16.5 |
Pension And Other Postretirem_7
Pension And Other Postretirement Benefit Programs - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retiree Health and Life Insurance Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.4 | $ 0.4 | $ 0.1 |
Interest cost | 2.6 | 3.2 | 2.6 |
Amortization of prior service cost (credit) | 0 | 0 | (0.2) |
Recognized net actuarial loss | 2.5 | 2.4 | 3.3 |
Allocated benefit cost (credit) from Shared Plans | 0 | 0 | (0.3) |
Net periodic pension cost | 0.5 | 1.2 | (1.1) |
U.S. Pension Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3.8 | 5.4 | 4.3 |
Interest cost | 14.6 | 15.4 | 11.7 |
Expected return on plan assets | (22.2) | (22.7) | (17.4) |
Amortization of prior service cost (credit) | 0 | 0.4 | 0.3 |
Recognized net actuarial loss | (10.7) | (10.5) | (7.7) |
Allocated benefit cost (credit) from Shared Plans | 0 | 0 | 2.2 |
Net periodic pension cost | 6.9 | 9 | 8.8 |
Canadian Pension Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | |
Interest cost | 0.6 | 0.6 | 0.5 |
Expected return on plan assets | (0.8) | (0.9) | (0.8) |
Recognized net actuarial loss | (0.2) | (0.2) | (0.2) |
Allocated benefit cost (credit) from Shared Plans | 0 | 0 | 0.1 |
Net periodic pension cost | $ 0 | $ (0.1) | $ 0 |
Pension And Other Postretirem_8
Pension And Other Postretirement Benefit Programs - Asset Allocation (Details) - Pension Plan | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Pension Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Weight End of Period | 60.00% | |
Position at End of Period | 59.00% | 56.00% |
U.S. Pension Plan | Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Weight End of Period | 40.00% | |
Position at End of Period | 41.00% | 44.00% |
Canadian Pension Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Weight End of Period | 50.00% | |
Position at End of Period | 50.00% | 49.00% |
Canadian Pension Plan | Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Weight End of Period | 48.00% | |
Position at End of Period | 48.00% | 49.00% |
Canadian Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Weight End of Period | 2.00% | |
Position at End of Period | 2.00% | 2.00% |
Pension And Other Postretirem_9
Pension And Other Postretirement Benefit Programs - Fair Value Measurement (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 337.1 | ||
Pension Plan | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 337.1 | $ 390.8 | $ 363.2 |
Pension Plan | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | (0.5) | ||
Pension Plan | U.S. Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 391.3 | ||
Pension Plan | U.S. Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension Plan | U.S. Pension Plan | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 202.4 | 219.2 | |
Pension Plan | U.S. Pension Plan | Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 202.4 | 219.2 | |
Pension Plan | U.S. Pension Plan | Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 143.2 | 172.1 | |
Pension Plan | U.S. Pension Plan | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 143.2 | 172.1 | |
Pension Plan | U.S. Pension Plan | Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | (0.4) | (0.5) | |
Pension Plan | U.S. Pension Plan | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | (0.4) | (0.5) | |
Pension Plan | U.S. Pension Plan | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | U.S. Pension Plan | Plan Assets Before Transfer to AHF, LLC | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 345.2 | ||
Pension Plan | U.S. Pension Plan | Plan Assets Before Transfer to AHF, LLC | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | (0.4) | ||
Pension Plan | U.S. Pension Plan | Plan Assets Before Transfer to AHF, LLC | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 345.6 | ||
Pension Plan | U.S. Pension Plan | Plan Assets Before Transfer to AHF, LLC | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension Plan | U.S. Pension Plan | Assets to be Transferred to AHF | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | (8.1) | ||
Pension Plan | Canadian Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13.6 | 17.1 | $ 16.5 |
Pension Plan | Canadian Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.2 | 0.4 | |
Pension Plan | Canadian Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13.4 | 16.7 | |
Pension Plan | Canadian Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6.9 | 8.4 | |
Pension Plan | Canadian Pension Plan | Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6.9 | 8.4 | |
Pension Plan | Canadian Pension Plan | Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6.5 | 8.3 | |
Pension Plan | Canadian Pension Plan | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6.5 | 8.3 | |
Pension Plan | Canadian Pension Plan | Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.2 | 0.4 | |
Pension Plan | Canadian Pension Plan | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0.2 | 0.4 | |
Pension Plan | Canadian Pension Plan | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension Plan | Canadian Pension Plan | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 0 | $ 0 |
Pension And Other Postretire_10
Pension And Other Postretirement Benefit Programs - Healthcare Trend Rates (Details) - Retiree Health and Life Insurance Plans $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect on total service and interest cost components, one percentage point increase | $ 0 |
Effect on total service and interest cost components, one percentage point decrease | 0 |
Effect on postretirement benefit obligation, one percentage point increase | (0.8) |
Effect on postretirement benefit obligation, one percentage point decrease | $ 1 |
Pension And Other Postretire_11
Pension And Other Postretirement Benefit Programs Summary of Balance Sheet Impact of Postretirement Benefit Plans, Related Benefit Obligations, Assets, Funded Status Rate Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Effect of curtailment | $ (0.2) | $ 0 | |
Fair value of plan assets as of end of period | 337.1 | ||
Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations as of beginning of period | 76.4 | 80.3 | |
Service cost | 0.4 | 0.4 | $ 0.1 |
Interest cost | 2.6 | 3.2 | 2.6 |
Plan participants' contributions | 1.6 | 1.7 | |
Actuarial (gain)/loss | 9 | (0.5) | |
Benefits paid | 9.6 | 9.7 | |
Benefit obligation as of end of period | 62.2 | 76.4 | 80.3 |
Fair value of plan assets as of beginning of period | 0 | 0 | |
Employer contribution | 8 | 8 | |
Plan participants' contribution | 1.6 | 1.7 | |
Benefits paid | 9.6 | 9.7 | |
Fair value of plan assets as of end of period | 0 | 0 | $ 0 |
Funded status of the plans | $ (62.2) | $ (76.4) |
Pension And Other Postretire_12
Pension And Other Postretirement Benefit Programs - Amounts Recognized on the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit liabilities | $ (11.3) | $ (2.3) |
Postretirement benefit liabilities | (55.7) | (69.9) |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts payable and accrued expenses | (6.5) | (6.5) |
Postretirement benefit liabilities | (55.7) | (69.9) |
Net amount recognized | (62.2) | (76.4) |
U.S. Pension Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit liabilities | (9.3) | (1.6) |
Net amount recognized | (9.3) | (1.6) |
Canadian Pension Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit liabilities | (2) | (0.7) |
Net amount recognized | $ (2) | $ (0.7) |
Pension And Other Postretire_13
Pension And Other Postretirement Benefit Programs - Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Retiree Health and Life Insurance Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain | $ 41 | $ 34.8 |
U.S. Pension Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain | (124.2) | (127.4) |
Canadian Pension Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain | $ (4.7) | $ (3.8) |
Pension And Other Postretire_14
Pension And Other Postretirement Benefit Programs - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Retiree Health and Life Insurance Plans | |
U.S. Pension Benefits, Canadian Pension Benefits, and Retiree Health and Life Insurance Benefits, Gross | |
2,019 | $ 6.5 |
2,020 | 6.2 |
2,021 | 6 |
2,022 | 5.8 |
2,023 | 5.4 |
2024-2028 | 21.4 |
U.S. Pension Plan | Retiree Health and Life Insurance Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions, next fiscal year | 6.5 |
U.S. Pension Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions, next fiscal year | 0.1 |
U.S. Pension Benefits, Canadian Pension Benefits, and Retiree Health and Life Insurance Benefits, Gross | |
2,019 | 16.8 |
2,020 | 18.4 |
2,021 | 18.7 |
2,022 | 19.9 |
2,023 | 20.6 |
2024-2028 | 113.6 |
Canadian Pension Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions, next fiscal year | 0.1 |
U.S. Pension Benefits, Canadian Pension Benefits, and Retiree Health and Life Insurance Benefits, Gross | |
2,019 | 1.3 |
2,020 | 1.3 |
2,021 | 1.2 |
2,022 | 1.1 |
2,023 | 1.1 |
2024-2028 | $ 5 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Gains expected to be reclassified to earnings within the next twelve months | $ 0.9 | |
Cash flow hedging | Foreign currency forward | ||
Derivative [Line Items] | ||
Length of derivative hedge (up to) | 18 months | |
Notional amount | $ 24.9 | $ 26.2 |
Fair value hedging | Foreign currency forward | ||
Derivative [Line Items] | ||
Notional amount | $ 17.7 | $ 20 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1.1 | $ 0 |
Derivative liability | 0 | 1.1 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0.3 |
Cash flow hedging | Foreign exchange contracts | Designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1.1 | 0 |
Derivative liability | $ 0 | $ 0.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Gain (Loss) on Derivative Instruments (Details) - Foreign exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow hedges | Cash flow hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in other comprehensive income (OCI) | $ 2 | $ (1.9) | $ (1.7) |
(Losses) gains reclassified from AOCI | (0.3) | (0.4) | 0.7 |
Non-designated hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses) gains recognized in income | $ 1.5 | $ (2) | $ 0.8 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | $ 1.1 | |
Financial Liabilities | 0 | $ (1.1) |
Level 1 | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 1.1 | |
Level 1 | Foreign exchange contracts | Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.8) | |
Level 1 | Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.3) | |
Level 1 | Total Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 1 | Total Debt | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 0 | |
Financial Liabilities | (99.3) | (85) |
Level 2 | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 0 | |
Level 2 | Foreign exchange contracts | Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 2 | Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 2 | Total Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (99.3) | |
Level 2 | Total Debt | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (85) | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 0 | |
Financial Liabilities | 0 | 0 |
Level 3 | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 0 | |
Level 3 | Foreign exchange contracts | Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 3 | Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 3 | Total Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Level 3 | Total Debt | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | 0 | |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 1.1 | |
Financial Liabilities | (99.3) | (86.1) |
Carrying amount | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 1.1 | |
Carrying amount | Foreign exchange contracts | Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.8) | |
Carrying amount | Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.3) | |
Carrying amount | Total Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (99.3) | |
Carrying amount | Total Debt | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (85) | |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 1.1 | |
Financial Liabilities | (99.3) | (86.1) |
Estimated fair value | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Assets | 1.1 | |
Estimated fair value | Foreign exchange contracts | Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.8) | |
Estimated fair value | Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | (0.3) | |
Estimated fair value | Total Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | $ (99.3) | |
Estimated fair value | Total Debt | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities | $ (85) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | 22 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Mar. 06, 2017 | |
Equity [Abstract] | ||||
Shares authorized to repurchase | $ 50 | |||
Repurchase of common stock (in shares) | 69 | 2,500 | ||
Repurchase of common stock | $ 1 | $ 40 | $ 41 | |
Repurchase of common stock (in dollars per share) | $ 14.20 | $ 16.23 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of AOCI and Related Tax Effect (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ 3.5 | $ 7.3 | $ (7.6) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax Amount | (6) | 7.2 | (8.2) |
Tax Impact | 0 | 0 | 0 |
Other comprehensive income (loss) | (6) | 7.2 | (8.2) |
Derivative gain (loss), net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax Amount | 2.3 | (2) | (2) |
Tax Impact | (0.6) | 0.5 | 0.4 |
Other comprehensive income (loss) | 1.7 | (1.5) | (1.6) |
Pension and postretirement adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax Amount | 8.5 | 2.2 | 3.3 |
Tax Impact | (0.7) | (0.6) | (1.1) |
Other comprehensive income (loss) | 7.8 | 1.6 | 2.2 |
Accumulated other comprehensive (loss) income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax Amount | 4.8 | 7.4 | (6.9) |
Tax Impact | (1.3) | (0.1) | (0.7) |
Other comprehensive income (loss) | $ 3.5 | $ 7.3 | $ (7.6) |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of AOCI Activity (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 550 | $ 550 | $ 623.5 | $ 624 |
Other comprehensive income (loss) | 3.5 | 7.3 | (7.6) | |
Ending balance | 391 | 550 | 623.5 | |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts And Jobs Act, reclassification from AOCI to Acumulated deficit | 0 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 7.7 | 7.7 | 0.5 | |
Other comprehensive (loss) before reclassifications, net of tax impact | (6) | 7.2 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Other comprehensive income (loss) | (6) | 7.2 | (8.2) | |
Ending balance | 1.7 | 7.7 | 0.5 | |
AOCI tax (expense) benefit | 0 | 0 | ||
Derivative Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts And Jobs Act, reclassification from AOCI to Acumulated deficit | 0.1 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1) | (1) | 0.5 | |
Other comprehensive (loss) before reclassifications, net of tax impact | 1.4 | (1.9) | ||
Amounts reclassified from accumulated other comprehensive income | (0.3) | 0.4 | ||
Other comprehensive income (loss) | 1.7 | (1.5) | (1.6) | |
Ending balance | 0.8 | (1) | 0.5 | |
AOCI tax (expense) benefit | (0.5) | 0.7 | ||
Pension and postretirement adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts And Jobs Act, reclassification from AOCI to Acumulated deficit | (12.7) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (59.2) | (59.2) | (60.8) | |
Other comprehensive (loss) before reclassifications, net of tax impact | 1.2 | (5.4) | ||
Amounts reclassified from accumulated other comprehensive income | 6.6 | 7 | ||
Other comprehensive income (loss) | 7.8 | 1.6 | 2.2 | |
Ending balance | (64.1) | (59.2) | (60.8) | |
AOCI tax (expense) benefit | 1 | 1.2 | ||
Accumulated other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts And Jobs Act, reclassification from AOCI to Acumulated deficit | (12.6) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (52.5) | (52.5) | (59.8) | 2 |
Other comprehensive (loss) before reclassifications, net of tax impact | (3.4) | (0.1) | ||
Amounts reclassified from accumulated other comprehensive income | 6.9 | 7.4 | ||
Other comprehensive income (loss) | 3.5 | 7.3 | (7.6) | |
Ending balance | (61.6) | (52.5) | $ (59.8) | |
AOCI tax (expense) benefit | $ 0.5 | $ 1.9 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Amounts Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of goods sold | $ 585 | $ 553 | $ 554.5 | ||||||||
Net (loss) earnings from discontinued operations | (143.9) | (24.7) | 25.4 | ||||||||
Net sales | $ 153.8 | $ 208.9 | $ 201.2 | $ 164.3 | $ 159.4 | $ 195.5 | $ 188.4 | $ 160.8 | 728.2 | 704.1 | 710.1 |
(Loss) income from continuing operations before income taxes | 25.1 | 19.1 | 20.9 | ||||||||
Income tax (benefit) | (6) | (2) | (4.7) | ||||||||
Other expense, net | (3.7) | (6.9) | |||||||||
Net (loss) income | 163 | 41.8 | (9.2) | ||||||||
Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | 6.9 | 7.4 | 2.1 | ||||||||
Derivative Adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | 0.3 | (0.4) | |||||||||
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
(Loss) income from continuing operations before income taxes | 0.4 | 0.6 | (1.5) | ||||||||
Income tax (benefit) | (0.1) | (0.2) | 0.2 | ||||||||
Net (loss) income | 0.3 | 0.4 | (1) | ||||||||
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) | 0.1 | 0.3 | ||||||||
Net (loss) earnings from discontinued operations | 0 | (0.1) | 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 | 0.4 | 0.3 | (1) | ||||||||
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 | 0.4 | 0.1 | ||||||||
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 | 8.4 | 8.4 | 4.6 | ||||||||
Pension and Postretirement Adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | (6.6) | (7) | |||||||||
Pension and Postretirement Adjustments | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total expense before tax | 8.3 | 8.8 | 4.8 | ||||||||
Tax impact | (1.8) | (1.8) | (1.6) | ||||||||
Total reclassifications for the period | 6.6 | 7 | 3.1 | ||||||||
Discontinued Operations, Disposed of by Sale | Derivative Adjustments | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net (loss) earnings from discontinued operations | 0 | 0 | 0.3 | ||||||||
Discontinued Operations, Disposed of by Sale | Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Sales | Foreign exchange contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net (loss) earnings from discontinued operations | 0.1 | 0.3 | (0.8) | ||||||||
Discontinued Operations, Disposed of by Sale | Amortization of net actuarial loss | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net (loss) earnings from discontinued operations | (0.1) | 0 | 0.1 | ||||||||
Discontinued Operations, Disposed of by Sale | Pension and Postretirement Adjustments | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net (loss) earnings from discontinued operations | $ 0.1 | $ 0 | $ (0.1) |
Litigation and Related Matters
Litigation and Related Matters (Details) - USD ($) $ in Millions | Jul. 18, 2018 | Jun. 14, 2018 | May 15, 2017 | Jul. 13, 2016 | May 16, 2016 | Jul. 06, 2015 | Jul. 31, 2015 | Dec. 31, 2013 | Dec. 31, 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 | 5 | |||||||||
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 | $ 6.2 | |||||||||
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% |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 153.8 | $ 208.9 | $ 201.2 | $ 164.3 | $ 159.4 | $ 195.5 | $ 188.4 | $ 160.8 | $ 728.2 | $ 704.1 | $ 710.1 |
Gross profit | 25 | 45.2 | 43.7 | 29.3 | 29.4 | 43.9 | 45 | 32.8 | 143.2 | 151.1 | 155.6 |
Net earnings (loss) from continuing operations | $ (14.9) | $ 6 | $ 0.2 | $ (10.4) | $ (22.6) | $ 15.2 | $ 2.5 | $ (12.2) | $ (19.1) | $ (17.1) | $ (16.2) |
Per share of common stock: | |||||||||||
Basic (in dollars per share) | $ (0.57) | $ 0.24 | $ 0.01 | $ (0.40) | $ (0.87) | $ 0.57 | $ 0.09 | $ (0.44) | $ (6.27) | $ (1.54) | $ 0.33 |
Diluted (in dollars per share) | $ (0.57) | $ 0.23 | $ 0.01 | $ (0.40) | $ (0.87) | $ 0.57 | $ 0.09 | $ (0.44) | $ (6.27) | $ (1.54) | $ 0.32 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
ASC 606 Cumulative Catchup Adjustment | $ (4.1) | |||
Provision for bad losses | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | $ 0.4 | $ 0.3 | $ 0.4 | |
Additions charged to earnings | 0.2 | 0.1 | 0 | |
Deductions | 0 | 0 | (0.1) | |
Balance at end of year | 0.6 | 0.4 | 0.3 | |
Provision for discounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 6 | 4.8 | 7.7 | |
Additions charged to earnings | 61 | 55.3 | 61.8 | |
Deductions | (59.7) | (54.1) | (64.7) | |
ASC 606 Cumulative Catchup Adjustment | (1.7) | |||
Balance at end of year | 5.6 | 6 | 4.8 | |
Provision for warranties | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 5.6 | 5.1 | 5.2 | |
Additions charged to earnings | 6.6 | 9.4 | 6.9 | |
Deductions | (7.5) | (8.9) | (7) | |
ASC 606 Cumulative Catchup Adjustment | $ 1.7 | |||
Balance at end of year | 6.4 | 5.6 | 5.1 | |
Reserve for inventories | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 0.9 | 0.7 | 0.4 | |
Additions charged to earnings | 0.3 | 0.4 | 0.7 | |
Deductions | (0.6) | (0.2) | (0.4) | |
Balance at end of year | $ 0.6 | $ 0.9 | $ 0.7 |