Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ARMSTRONG WORLD INDUSTRIES INC | |
Trading Symbol | awi | |
Entity Central Index Key | 7,431 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,355,842 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Earnings And Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Condensed Consolidated Statements Of Earnings And Comprehensive Income [Abstract] | ||||||
Net sales | $ 658.5 | $ 678.9 | $ 1,842.6 | $ 1,928 | ||
Cost of goods sold | 480.6 | 510.9 | 1,377.3 | 1,470.9 | ||
Gross profit | 177.9 | 168 | 465.3 | 457.1 | ||
Selling, general and administrative expenses | 110.4 | 101 | 319.5 | 304.3 | ||
Separation costs | 7.4 | 16.8 | ||||
Goodwill impairment | 0.8 | |||||
Equity earnings from joint venture | (19.6) | (18.8) | (49.6) | (51.2) | ||
Operating income | 79.7 | 85.8 | 178.6 | 203.2 | ||
Interest expense | 11.3 | 10.9 | 33.9 | 34.3 | ||
Other non-operating expense | 14 | 2.6 | 15.5 | 9.2 | ||
Other non-operating (income) | (0.8) | (0.7) | (5) | (1.9) | ||
Earnings from continuing operations before income taxes | 55.2 | 73 | 134.2 | 161.6 | ||
Income tax expense | 24.9 | 26.3 | 70.2 | 70.2 | ||
Earnings from continuing operations | 30.3 | 46.7 | 64 | 91.4 | ||
Net loss from discontinued operations, net of tax benefit of ($-), ($-), ($-) and ($-) | (14.9) | (21.7) | ||||
Gain (loss) from disposal of discontinued business, net of tax benefit of ($0.7), ($-), ($44.1) and ($1.2) | 1.5 | (0.2) | 44 | (2.3) | ||
Net earnings (loss) from discontinued operations | 1.5 | (15.1) | 44 | (24) | ||
Net earnings | 31.8 | 31.6 | 108 | 67.4 | ||
Other comprehensive (loss) income, net of tax: | ||||||
Foreign currency translation adjustments | (13.4) | (14.1) | (21.3) | (10) | ||
Derivative gain (loss) | 0.9 | 4.9 | (0.2) | (1.3) | ||
Pension and postretirement adjustments | 11.1 | 8.5 | 32.2 | 21.3 | ||
Total other comprehensive (loss) income | (1.4) | (0.7) | 10.7 | [1] | 10 | [1] |
Total comprehensive income | $ 30.4 | $ 30.9 | $ 118.7 | $ 77.4 | ||
Earnings per share of common stock, continuing operations: | ||||||
Basic | $ 0.54 | $ 0.84 | $ 1.14 | $ 1.66 | ||
Diluted | 0.54 | 0.84 | 1.14 | 1.64 | ||
Earnings (loss) per share of common stock, discontinued operations: | ||||||
Basic | 0.03 | (0.27) | 0.79 | (0.44) | ||
Diluted | 0.03 | (0.27) | 0.78 | (0.43) | ||
Net earnings per share of common stock: | ||||||
Basic | 0.57 | 0.57 | 1.93 | 1.22 | ||
Diluted | $ 0.57 | $ 0.57 | $ 1.92 | $ 1.21 | ||
Average number of common shares outstanding: | ||||||
Basic | 55.5 | 55 | 55.4 | 54.9 | ||
Diluted | 55.9 | 55.5 | 55.8 | 55.4 | ||
[1] | Amounts are net of tax |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Earnings And Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements Of Earnings And Comprehensive Income [Abstract] | ||||
Loss from discontinued operations, tax benefit | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings from sale of discontinued business, tax benefit | $ (0.7) | $ 0 | $ (44.1) | $ (1.2) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 250 | $ 185.3 | |
Accounts and notes receivable, net | 207.2 | 195.2 | |
Inventories, net | 340.1 | 335.5 | |
Deferred income taxes | 15.6 | 31.4 | |
Income tax receivable | 5.8 | 5.3 | |
Other current assets | 69 | 58.8 | |
Total current assets | 887.7 | 811.5 | |
Property, plant, and equipment, less accumulated depreciation and amortization of $709.5 and $644.3, respectively | 1,067.1 | 1,062.4 | |
Prepaid pension costs | 21.9 | 7.4 | |
Investment in joint venture | 130.9 | 129 | |
Intangible assets, net | 493.2 | 501.4 | |
Deferred income taxes | 23.8 | 26.6 | |
Income taxes receivable | 1.7 | ||
Other non-current assets | 68.1 | 67.9 | |
Total assets | 2,694.4 | 2,606.2 | |
Current liabilities: | |||
Current installments of long-term debt | 49 | 39.6 | |
Accounts payable and accrued expenses | 367.3 | 345.5 | |
Income tax payable | 4.8 | 2.5 | |
Deferred income taxes | 0.5 | 0.5 | |
Total current liabilities | 421.6 | 388.1 | |
Long-term debt, less current installments | 964.8 | 1,003 | |
Postretirement benefit liabilities | 194.7 | 201.5 | |
Pension benefit liabilities | 93.6 | 115.5 | |
Other long-term liabilities | 51.9 | 53.2 | |
Income tax payable | 78.1 | 51.1 | |
Deferred income taxes | 106.5 | 144.7 | |
Total noncurrent liabilities | 1,489.6 | 1,569 | |
Shareholders' equity: | |||
Common stock, $0.01 par value per share, 200 million shares authorized, 60,412,394 shares issued, and 55,355,012 shares outstanding at September 30, 2015 and 60,183,535 shares issued and 55,126,153 shares outstanding at December 31, 2014 | 0.6 | 0.6 | |
Capital in excess of par value | 1,149.8 | 1,134.4 | |
Retained earnings | 379 | 271 | |
Treasury stock, at cost, 5,057,382 shares | (261.4) | (261.4) | |
Accumulated other comprehensive loss | [1] | (484.8) | (495.5) |
Total shareholders' equity | 783.2 | 649.1 | |
Total liabilities and shareholders' equity | $ 2,694.4 | $ 2,606.2 | |
[1] | Amounts are net of tax |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 709.5 | $ 644.3 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 60,412,394 | 60,183,535 |
Common stock, shares outstanding | 55,355,012 | 55,126,153 |
Treasury stock, shares | 5,057,382 | 5,057,382 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2013 | $ 0.6 | $ 1,098.4 | $ 207.2 | $ (261.4) | $ (371.6) | $ 673.2 | |
Common stock shares, balance at Dec. 31, 2013 | 54,406,927 | ||||||
Treasury stock shares, balance at Dec. 31, 2013 | 5,057,382 | ||||||
Stock issuance | 480,540 | ||||||
Share-based employee compensation | 26.3 | 26.3 | |||||
Net earnings | 67.4 | 67.4 | |||||
Other comprehensive income | 10 | 10 | [1] | ||||
Balance at Sep. 30, 2014 | $ 0.6 | 1,124.7 | 274.6 | $ (261.4) | (361.6) | 776.9 | |
Common stock shares, balance at Sep. 30, 2014 | 54,887,467 | ||||||
Treasury stock shares, balance at Sep. 30, 2014 | 5,057,382 | ||||||
Balance at Dec. 31, 2014 | $ 0.6 | 1,134.4 | 271 | $ (261.4) | (495.5) | $ 649.1 | |
Common stock shares, balance at Dec. 31, 2014 | 55,126,153 | 55,126,153 | |||||
Treasury stock shares, balance at Dec. 31, 2014 | 5,057,382 | 5,057,382 | |||||
Stock issuance | 228,859 | ||||||
Share-based employee compensation | 15.4 | $ 15.4 | |||||
Net earnings | 108 | 108 | |||||
Other comprehensive income | 10.7 | 10.7 | [1] | ||||
Balance at Sep. 30, 2015 | $ 0.6 | $ 1,149.8 | $ 379 | $ (261.4) | $ (484.8) | $ 783.2 | |
Common stock shares, balance at Sep. 30, 2015 | 55,355,012 | 55,355,012 | |||||
Treasury stock shares, balance at Sep. 30, 2015 | 5,057,382 | 5,057,382 | |||||
[1] | Amounts are net of tax |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 108 | $ 67.4 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 86.9 | 98.1 |
Loss on disposal of discontinued operations | 0.1 | 3.5 |
Fixed asset impairment | 16.7 | |
Deferred income taxes | (38.9) | 34.2 |
Share-based compensation | 11.2 | 10.2 |
Equity earnings from joint venture | (49.6) | (51.2) |
U.S. pension expense | 18.9 | 0.5 |
Non-cash foreign currency translation on intercompany loans | 12.5 | 12.1 |
Other, non-cash adjustments, net | (1.6) | (1) |
Changes in operating assets and liabilities: | ||
Receivables | (19) | (36.9) |
Inventories | (10.4) | (43.4) |
Other current assets | (12) | (6.1) |
Other non-current assets | (4.2) | (7.5) |
Accounts payable and accrued expenses | 23.9 | 16.8 |
Income taxes payable | 26.9 | 14.2 |
Other long-term liabilities | (12) | (17.4) |
Other, net | 3.3 | 0.9 |
Net cash provided by operating activities | 144 | 111.1 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (96.7) | (151.1) |
Return of investment from joint venture | 47.6 | 50.8 |
Proceeds from (payment of) company owned life insurance, net | 1 | (0.3) |
Proceeds from settlement of note receivable | 1.9 | |
Proceeds from the sale of assets | 2.8 | 1.8 |
Net cash (used for) investing activities | (45.3) | (96.9) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility and other short-term debt | 82.8 | |
Payments of revolving credit facility and other short-term debt | (82.8) | |
Payments of long-term debt | (28.8) | (16.3) |
Special dividends paid | (1.2) | (1.2) |
Proceeds from exercised stock options | 6.3 | 11.3 |
Excess tax benefits from share-based awards | 0.2 | $ 7.5 |
Payment of company owned life insurance loans, net | (0.1) | |
Net cash (used for) provided by financing activities | (23.6) | $ 1.3 |
Effect of exchange rate changes on cash and cash equivalents | (10.4) | (2.3) |
Net increase in cash and cash equivalents | 64.7 | 13.2 |
Cash and cash equivalents at beginning of year | 185.3 | 135.2 |
Cash and cash equivalents at end of period | $ 250 | 148.4 |
Cash and cash equivalents at end of period of discontinued operations | (2.4) | |
Cash and cash equivalents at end of period of continuing operations | $ 250 | 150.8 |
Supplemental Cash Flow Disclosures: | ||
Interest paid | 29.8 | 30.1 |
Income taxes paid, net | 37.9 | 13.1 |
Amounts in accounts payable for capital expenditures | $ 21.2 | $ 17.5 |
Business And Basis Of Presentat
Business And Basis Of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Business And Basis Of Presentation [Abstract] | |
Business And Basis Of Presentation | NOTE 1. BUSINESS AND BASIS OF PRESENTATION Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891. When we refer to "we," "our" and "us" in these notes, we are referring to AWI and its subsidiaries. We use the term “AWI” when we are referring solely to Armstrong World Industries, Inc. On February 23 , 2015, we announced that our b oard of d irectors unanimously approved a plan to separate our Resilient F looring and Wood Flooring segments from our B uilding P roducts (C eilings) segment . The separation will be effected by allocating the assets and liabilities related primarily to the Resilient Flooring and Wood Flooring segments to Armstrong Flooring, Inc. (“AFI”) and then distributing the common stock of AFI to AWI’s shareholders. The separation and distribution will result in AWI and AFI 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 the Building Products (Ceilings) segment. Separation costs of $7.4 million and $16.8 million for the third quarter and first nine months of 2015, respectively, primarily relate to outside professional services and employee retention accruals which were recorded in conjunction with this initiative. The effective date of the separation is expected to be near the end of the first quarter of 2016. In December 2000 , AWI filed a voluntary petition for relief (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) in order to use the court-supervised reorganization process to achieve a resolution of AWI’s asbestos-related liability. In October 2006 , AWI’s court-approved plan of reorganization became effective and AWI emerged from Chapter 11 . All claims in AWI’s Chapter 11 case have been resolved and closed. In October 2006 , the Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust (the “Asbestos PI Trust”) was created to address AWI’s personal injury (including wrongful death) asbestos-related liability. All present and future asbestos-related personal injury claims against AWI, including contribution claims of co-defendants but excluding certain foreign claims against subsidiaries, arising directly or indirectly out of AWI’s pre-Filing use of, or other activities involving, asbestos are channeled to the Asbestos PI Trust. From the fourth quarter of 2012 through the fourth quarter of 2014, the Asbestos PI Trust sold 20,448,362 shares of our common stock. In the first nine months of 2015, the Asbestos Trust sold 4,281,884 shares of our common stock. We did not sell any shares and did not receive any proceeds from these transactions. As a result of these transactions the Asbestos PI Trust held approximately 9% of our outstanding shares as of September 30, 2015. The accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2014 . These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Form 10-K for the fiscal year ended December 31, 2014 . In the opinion of management, all adjustments of a normal recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in general economic conditions. These Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include management estimates and judgments, where appropriate. Management utilizes estimates to record many items including certain asset values, allowances for bad debts, inventory obsolescence and lower of cost or market charges, warranty reserves, workers’ compensation, general liability and environmental claims and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information. Management may confer with outside parties, including outside counsel. Actual results may differ from these estimates. Operating results for the third quarter and first nine months of 2015 and 2014 included in this report are unaudited. However, these Condensed Consolidated Financial Statements have been reviewed by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States) for a limited review of interim financial information. Certain amounts in the prior year’s Condensed Consolidated Financial Statements have been recast to conform to the 2015 presentation. Recently Adopted Accounting Standards In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” which is part of Accounting Standards Codification (“ASC”) 205: Presentation of Financial Statements and ASC 360: Property, Plant and Equipment. The amendments in this guidance change the requirements for reporting discontinued operations. Under the new guidance a disposal of a component of an entity or a group of components is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The guidance is effective prospectively for disposals that occur within annual periods beginning on or after December 15, 2014. There was no impact on our financial condition, results of operations or cash flows as a result of the adoption of this guidance. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers.” The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” which defers the effective date for ASU 2014-09 by one year to January 1, 2018, however, public business entities would be permitted to adopt the standard as of the original effective date. We have not selected a transition method and are currently evaluating the impact this guidance will have on our financial condition, results of operations and cash flows. In June 2014, the FASB issued ASU 2014-12 “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” which is part of ASC 718: Compensation-Stock Compensation. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. The guidance is effective for annual periods beginning after December 15, 2015. The guidance can be applied prospectively for all awards granted or modified after the effective date or retrospectively to all awards with performance targets outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We do not expect a material impact on our financial condition, results of operations or cash flows from the adoption of this guidance. In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs .” This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. The new guidance is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. In August 2015, the FASB issued ASU 2015- 15 , “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, ” which was issued to address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements . We are currently evaluating the impact the adoption of th e s e standard s w ill have on our financial condition, results of operations and cash flows. In April 2015, the FASB issued ASU 2015-0 5 , “ Customer's Accounting for Fees Paid in a Cloud Computing Arrangement” which provides guidance to determine when a customer's fees paid in a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for a cloud computing arrangement as a service contract. The new guidance is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. In May 2015, the FASB issued ASU 2015-07, “ Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” This standard removes the requirement to categorize investments within the fair value hierarchy when fair value is measured using the net asset value per share practical expedient. We do not hold any such investments on our Consolidated Balance Sheets, however, the assets held in trust for our defined benefit pension plan include such investments. The new guidance is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard would have on our defined benefit pension plan disclosures. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” which requires inventory that is measured on a first-in, first-out or average cost basis to be measured at lower of cost and net realizable value, as opposed to the lower of cost or market. For inventory that is measured under the last-in, first-out (“LIFO”) basis or the retail recovery method, there is no change to current measurement requirements. This new guidance is effective for annual reporting periods beginning after December 15, 2016, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. |
Segment Results
Segment Results | 9 Months Ended |
Sep. 30, 2015 | |
Segment Results [Abstract] | |
Segment Results | NOTE 2. SEGMENT RESULTS Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net sales to external customers Building Products $ $ $ $ Resilient Flooring Wood Flooring Total net sales to external customers $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Segment operating income (loss) Building Products $ $ $ $ Resilient Flooring Wood Flooring Unallocated Corporate Total consolidated operating income $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Total consolidated operating income $ $ $ $ Interest expense Other non-operating expense Other non-operating (income) Earnings from continuing operations before income taxes $ $ $ $ September 30, 2015 December 31, 2014 Segment assets Building Products $ $ Resilient Flooring Wood Flooring Unallocated Corporate Total consolidated assets $ $ Impairment testing of our tangible assets occurs whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In June 2014, we made the decision to dispose of certain idle equipment at five of our wood flooring manufacturing facilities and, as a result , we recorded a $4.4 million impairment charge in cost of goods sold. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | N OTE 3. DISCONTINUED OPERATIONS European Resilient Flooring On December 4, 2014, our Board of Directors approved the cessation of funding to our DLW subsidiary, which at that time was our European flooring business. As a result, DLW management filed for insolvency in Germany on December 11, 2014. The German insolvency court subsequently appointed an insolvency administrator (the “Administrator”) to oversee DLW operations through the preliminary insolvency period. As a result of the insolvency filing, the appointment of the Administrator and our resulting loss of control of DLW’s operations to the German insolvency court and its Administrator, effective December 11, 2014, we deconsolidated DLW from our financial statements and presented DLW for all historical periods as a discontinued operation. The financial results of the DLW business have been reclassified as discontinued operations for all periods presented. The following is a summary of the results related to the DLW business, (previously shown within the Resilient Flooring reporting segment), which are included in discontinued operations. Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Gain (loss) on disposal of discontinued business before income tax $ ($0.7) Income tax benefit Net gain on disposal of discontinued business $ $ Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Net sales $ $ Loss from discontinued operations before income tax ($14.9) ($21.7) Income tax benefit - - Net loss from discontinued operations ($14.9) ($21.7) Based on the progress of DLW’s insolvency proceedings in Germany, we recorded a non-cash income tax benefit of $43.4 million during the first quarter of 2015. The tax benefit resulted from DLW’s excess of liabilities over assets, combined with AWI’s foreign and U.S. federal income tax basis in DLW at the time of disposition. Based on the U.S. federal income tax planning strategies employed by AWI related to DLW and the applicable U.S. federal income tax regulations, the tax benefit associated with the disposition of DLW was not available until certain procedural elements surrounding DLW’s bankruptcy process were complete. Such procedural activities occurred during the first quarter of 2015. In June 2015, the Administrator announced that the business operations of DLW, including its two German manufacturing plants, were sold to a third party investment firm. We do not believe this transaction will have a material adverse impact on our financial condition, results of operations or cash flows. The insolvency proceedings continue as the Administrator works to sell remaining assets and resolve creditor claims. At deconsolidation, DLW had a net liability of $12.9 million, representing assets of $151.9 million and liabilities of $164.8 million, which were removed from our balance sheet. This net liability was recognized as a contingent liability on our consolidated balance sheet pending the closure and results of the insolvency proceedings. Any shortfall will be recognized immediately when identified and any excess will be reflected when insolvency proceedings are finalized, all through discontinued operations. The amount of the net liability was $12.1 million at September 30, 2015. We have agreed to continue to purchase linoleum and homogenous flooring products for sale in the Americas and the Pacific Rim, and to provide administrative support services to DLW for information technology and accounts receivables and payables for a limited transition period. These agreements are not material. Cabinets In September 2012, we entered into a definitive agreement to sell our cabinets business to American Industrial Partners (“AIP”). The sale was completed in October 2012. In February 2013, we received a demand notice from the Carpenters Labor-Management Pension Fund (the “Fund”) of a deemed withdrawal relating to the sale of our cabinets business to AIP in 2012. During the third quarter of 2013, we recorded an estimated liability of $7.5 million for a potential withdrawal liability related to a multi-employer pension plan. During the second quarter of 2014, we recorded an additional $3.3 million expense to increase the total estimated remaining liability to $10.0 million. In August 2014, we entered into a settlement agreement with the Fund to resolve this matter for $10.3 million, and as a result, we recorded an additional charge of $0.3 million during the third quarter of 2014. Payment was made to the Fund in the third quarter of 2014. The following is a summary of the results related to the cabinets business, which are included in discontinued operations. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Gain (loss) on disposal of discontinued business before income tax $ ($0.2) $ ($3.5) Income tax benefit - - - Net gain (loss) on disposal of discontinued business $ ($0.2) $ ($2.3) The Condensed Consolidated Statement of Cash Flows does not separately report the cash flows of the discontinued operations. |
Accounts And Notes Receivable
Accounts And Notes Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Accounts And Notes Receivable [Abstract] | |
Accounts And Notes Receivable | NOTE 4. ACCOUNTS AND NOTES RECEIVABLE September 30, 2015 December 31, 2014 Customer receivables $ $ Customer notes Miscellaneous receivables Less allowance for warranties, discounts and losses Accounts and notes receivable, net $ $ 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. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | NOTE 5. INVENTORIES September 30, 2015 December 31, 2014 Finished goods $ $ Goods in process Raw materials and supplies Less LIFO and other reserves Total inventories, net $ $ Inventories as of September 30, 2015 were lower in comparison to December 31, 2014, primarily due to declines in lumber costs. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2015 | |
Other Current Assets [Abstract] | |
Other Current Assets | NOTE 6. OTHER CURRENT ASSETS September 30, 2015 December 31, 2014 Prepaid expenses $ $ Short-term investments - Fair value of derivative assets Other Total other current assets $ $ |
Equity Investment
Equity Investment | 9 Months Ended |
Sep. 30, 2015 | |
Equity Investment [Abstract] | |
Equity Investment | NOTE 7. EQUITY INVESTMENT Investment in joint venture at September 30, 2015 reflected our 50 % equity interest in our Worthington Armstrong Venture (“WAVE”) joint venture with Worthington Industries, Inc. Condensed income statement data for WAVE is summarized below: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net sales $ $ $ $ Gross profit Net earnings |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE 8. INTANGIBLE ASSETS The following table details amounts related to our intangible assets as of September 30, 2015 and December 31, 2014 . September 30, 2015 December 31, 2014 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Customer relationships 20 years $ $ $ $ Developed technology 15 years Other Various Total $ $ $ $ Non-amortizing intangible assets Trademarks and brand names Indefinite Total intangible assets $ $ Nine Months Ended September 30, 2015 2014 Amortization expense $ $ |
Severances And Related Costs
Severances And Related Costs | 9 Months Ended |
Sep. 30, 2015 | |
Severances And Related Costs [Abstract] | |
Severances And Related Costs | NOTE 9. SEVERANCE AND RELATED COSTS In the second and third quarters of 2014, we recorded $1.7 million and $0.2 million, respectively, in cost of goods sold for severance and related costs due to the closure of a resilient flooring plant in Australia. We also recorded $1.4 million and $ 0.7 million in the second and third quarters of 2014, respectively, in cost of goods sold for severance and related costs due to the closure of a wood flooring plant in China. Both plants were closed due to excess capacity and ceased operations in 2014. |
Income Tax Expense
Income Tax Expense | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Expense [Abstract] | |
Income Tax Expense | NOTE 10. INCOME TAX EXPENSE Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations before income taxes $ $ $ $ Income tax expense Effective tax rate The effective tax rate for the third quarter of 2015 was higher than the comparable period of 2014 primarily due to a decrease in research and development tax credits as 2014 included the benefit of multiple years of such credits . The effective tax rate for the first nine months of 2015 was higher than the comparable period in 2014 primarily due to a decre ase in research and development tax credits as 2014 included the benefit of multiple years of such credits and state net operating loss write-offs as a result of a change in ownership under Section 382 of the Internal Revenue Code in the first quarter of 2015. We do not expect to record any material changes during 2015 to unrecognized tax benefits that were claimed on tax returns covering tax years ending on or before December 31, 2014. As of September 30, 2015, we consider foreign unremitted earnings to be permanently reinvested. |
Pensions And Other Benefit Prog
Pensions And Other Benefit Programs | 9 Months Ended |
Sep. 30, 2015 | |
Pensions And Other Benefit Programs [Abstract] | |
Pensions And Other Benefit Programs | NOTE 11. PENSIONS AND OTHER BENEFIT PROGRAMS Following are the components of net periodic benefit costs: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 U.S. defined-benefit plans: Pension benefits Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Expected return on plan assets Amortization of prior service cost Amortization of net actuarial loss Net periodic pension cost $ $ $ $ Retiree health and life insurance benefits Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Amortization of prior service credit Amortization of net actuarial gain Net periodic postretirement benefit cost $ $ $ $ Non-U.S. defined-benefit pension plans Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Expected return on plan assets Amortization of prior service cost - - - Amortization of net actuarial loss Net periodic pension cost $ $ $ $ |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments [Abstract] | |
Financial Instruments | NOTE 12. FINANCIAL INSTRUMENTS We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments are as follows: September 30, 2015 December 31, 2014 Carrying amount Estimated fair value Carrying amount Estimated fair value Assets (Liabilities), net: Total long-term debt, including current portion ($1,013.8) ($1,007.0) ($1,042.6) ($1,028.2) Foreign currency contracts Natural gas contracts Interest rate swap contracts The carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses, and short-term debt approximate fair value because of the short-term maturity of these instruments. The fair value estimates of long-term debt were based upon quotes from a major financial institution of recently observed trading levels of our Term Loan B debt. The fair value estimates of foreign currency contract obligations are estimated from market quotes provided by a well-recognized national market data provider. The fair value estimates of natural gas contracts are estimated using internal valuation models with verification by obtaining quotes from major financial institutions. For natural gas swap transactions, fair value is calculated using NYMEX market quotes provided by a well-recognized national market data provider. For natural gas option based strategies, fair value is calculated using an industry standard Black-Scholes model with market based inputs, including but not limited to, underlying asset price, strike price, implied volatility, discounted risk free rate and time to expiration, provided by a well-recognized national market data provider. The fair value estimates for interest rate swap contracts are estimated by obtaining quotes from major financial institutions with verification by internal valuation models. 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 at 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 fair value measurement of assets and liabilities is summarized below: September 30, 2015 December 31, 2014 Fair value based on Fair value based on Quoted, active markets Other observable inputs Quoted, active markets Other observable inputs Level 1 Level 2 Level 1 Level 2 Assets (Liabilities), net: Total long-term debt, including current portion ($459.8) ($547.2) ($459.8) ($568.4) Foreign currency contracts - - Natural gas contracts - - Interest rate swap contracts - - We do not have any financial assets or liabilities that are valued using Level 3 (unobservable) inputs. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our results of operations, cash flows and financial condition. We use forward swaps and option contracts to hedge these exposures. Exposure to individual counterparties is controlled and derivative financial instruments are entered into with a diversified group of major financial institutions. Forward swaps and option contracts are entered into for periods consistent with underlying exposure and do not constitute positions independent of those exposures. At inception, hedges that we designate 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. We also formally assess both at inception and at least quarterly thereafter, whether the derivatives that are 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, we discontinue hedge accounting, 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. We monitor counterparty credit default swap levels and credit ratings on a regular basis. 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 our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit contingent features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual counterparties is controlled, and thus we consider the risk of counterparty default to be negligible. Commodity Price Risk We purchase natural gas for use in the manufacturing process and to heat many of our facilities. As a result, we are exposed to fluctuations in the price of natural gas. We have a policy to reduce cost volatility for North American natural gas purchases by purchasing natural gas forward contracts and swaps, purchased call options, and zero-cost collars up to 24 months forward. The contracts are based on forecasted usage of natural gas measured in mmBtu’s. There is a high correlation between the hedged item and the hedge instrument. The gains and losses on these instruments offset gains and losses on the transactions being hedged. These instruments are designated as cash flow hedges. At September 30, 2015 and December 31, 2014 , the notional amount of these hedges was $ 9.2 million and $ 14.6 million, respectively. The mark-to-market gain or loss on qualifying hedges is included in other comprehensive income to the extent effective, and reclassified into cost of goods sold in the period during which the underlying gas is consumed. The mark-to-market gains or losses on ineffective portions of hedges are recognized in cost of goods sold immediately. The earnings impact of the ineffective portion of these hedges was not material for the third quarter and first nine months of 2015 and 2014. Currency Rate Risk – Sales and Purchases We manufacture and sell our products in a number of countries throughout the world 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. As of September 30, 2015 , our major foreign currency exposures are to the Canadian dollar, the Euro and the Chinese Renminbi. 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. Cash flow hedges are executed quarterly, generally up to 15 months forward, and allow us to further reduce our overall exposure to exchange rate movements, since gains and losses on these contracts offset gains and losses on the transactions being hedged. The notional amount of these hedges was $ 88.7 million and $ 102.4 million at September 30, 2015 and December 31, 2014 , respectively. Gains and losses on these instruments are recorded in other comprehensive income, to the extent effective, until the underlying transaction is recognized in earnings. The earnings impact of the ineffective portion of these hedges was not material for the third quarter and first nine months of 2015 and 2014. Currency Rate Risk - Intercompany Loans and Dividends Where efficient, reliable and liquid markets exist we may utilize foreign currency forward exchange contracts to hedge exposures created by cross-currency intercompany loans and dividends. The translation adjustments related to these loans and any offsetting gains or losses on the related derivative contracts are recorded in other non-operating income or expense. The notional amount of these hedges was $21.2 million at December 31, 2014. We did not have any open hedges related to intercompany loans and dividends as of September 30, 2015. Interest Rate Risk We utilize interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. Interest expense on variable-rate liabilities increases or decreases as a result of interest rate fluctuations. The following table summarizes our interest rate swaps: Trade Date Notional Amount Interest Rate Paid Coverage Period Risk Coverage March 31, 2011 $100.0 March 2011 to November 2015 Term Loan A March 31, 2011 $200.0 March 2011 to November 2015 Term Loan B March 27, 2012 $250.0 March 2012 to March 2018 Term Loan B March 27, 2012 $200.0 November 2015 to March 2018 Term Loan B April 16, 2013 $250.0 November 2015 to March 2018 Term Loan A Under the terms of the Term Loan A swaps we receive 3-month LIBOR and pay a fixed rate over the hedged period. Under the terms of the Term Loan B swaps, we receive the greater of 3-month LIBOR or the 1% LIBOR Floor and pay a fixed rate over the hedged period. These swaps are designated as cash flow hedges against changes in LIBOR for a portion of our variable rate debt. In connection with the planned separation of AFI, we may refinance a portion or all of our existing credit facilities, and settle any related interest rate swaps. Financial Statement Impacts The following tables detail amounts related to our derivatives as of September 30, 2015 and December 31, 2014 . Our derivative liabilities not designated as hedging instruments were $0.5 million at December 31, 2014. We had no derivative assets not designated as hedging instruments at September 30, 2015 and December 31, 2014 and no derivative liabilities not designated as hedging instruments at September 30, 2015. The derivative asset and liability amounts below are shown in gross amounts; we have not netted assets with liabilities. Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location September 30, 2015 December 31, 2014 Balance Sheet Location September 30, 2015 December 31, 2014 Derivatives designated as hedging instruments Natural gas commodity contracts Other current assets - - Accounts payable and accrued expenses $ $ Foreign exchange contracts Other current assets $ $ Accounts payable and accrued expenses Interest rate swap contracts Other current assets - - Accounts payable and accrued expenses - Foreign exchange contracts Other non-current assets Other long-term liabilities - Interest rate swap contracts Other non-current assets - Other long-term liabilities Total derivatives designated as hedging instruments $ $ $ $ Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion)(a) Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 Derivatives in cash flow hedging relationships Natural gas commodity contracts ($1.2) ($0.3) Cost of goods sold ($0.9) ($0.2) ($3.5) $ Foreign exchange contracts – purchases Cost of goods sold Foreign exchange contracts – sales Net sales Interest rate swap contracts Interest expense - - - - Total ($7.3) ($3.3) $ $ $ $ (a) As of September 30, 2015 the amount of existing gains in AOCI expected to be recognized in earnings over the next twelve months is $ 5.0 million. There was no pre-tax gain (loss) recognized in income for derivative instruments not designated as hedging instruments for the third quarter of 2015. The amount of pre-tax gain recognized was $0.1 million for the first nine months of 2015. The amount of pre-tax gain was $8.9 million and $6.5 million for the third quarter and first nine months of 2014, respectively. |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties [Abstract] | |
Product Warranties | NOTE 14. PRODUCT WARRANTIES On certain products, we provide the original retail purchaser limited warranties which may cover structural integrity, wear, fade and certain other pre-installation manufacturing related defects. Our product warranties place certain requirements on the retail purchaser, including evidence of original purchase and require installation in accordance with our instructions. All of our warranties are non-transferrable. Warranty claims are most commonly experienced in the periods immediately following retail purchase and decline with the passage of time. In addition to our warranty program, under certain limited circumstances , we will occasionally and at our sole discretion, provide a customer accommodation repair or replacement. Warranty repairs and replacements are most commonly made by professional installers employed by or affiliated with our independent distributors. Reimbursement for cost associated with warranty repairs are provided to our independent distributors through a credit against accounts receivable from the distributor to us. The following table summarizes the activity for the accrual of product warranties for the first nine months of 2015 and 2014 : 2015 2014 Balance at January 1, $ $ Reductions for payments Current year warranty accruals Balance at September 30, $ $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign Currency Translation Adjustments (1) Derivative (Loss) Gain (1) Pension and Postretirement Adjustments (1) Total Accumulated Other Comprehensive Loss (1) Balance, December 31, 2014 ($8.3) ($4.0) ($483.2) ($495.5) Other comprehensive (loss) income before reclassifications, net of tax expense of $ - , ($0.7) , ($1.0) , and ($1.7) Amounts reclassified from accumulated other comprehensive loss - Net current period other comprehensive (loss) income Balance at September 30, 2015 ($29.6) ($4.2) ($451.0) ($484.8) Foreign Currency Translation Adjustments (1) Derivative (Loss) Gain (1) Pension and Postretirement Adjustments (1) Total Accumulated Other Comprehensive Loss (1) Balance, December 31, 2013 $ ($0.7) ($392.2) ($371.6) Other comprehensive (loss) income before reclassifications, net of tax expense of $ - , ($1.5) , ($0.3) , and ($1.8) Amounts reclassified from accumulated other comprehensive loss - Net current period other comprehensive (loss) income Balance at September 30, 2014 $ ($2.0) ($370.9) ($361.6) (1) Amounts are net of tax Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statement of Earnings and Comprehensive Income Nine Months Ended September 30, 2015 2014 Derivative Adjustments: Natural gas commodity contracts $ ($0.9) Cost of goods sold Foreign exchange contracts - purchases Cost of goods sold Foreign exchange contracts - sales Net sales Total income before tax Tax impact Income tax expense Total income, net of tax Pension and Postretirement Adjustments: Prior service cost amortization Cost of goods sold Prior service cost amortization SG&A expense Amortization of net actuarial loss Cost of goods sold Amortization of net actuarial loss SG&A expense Total expense before tax Tax impact Income tax expense Total expense, net of tax Total reclassifications for the period $ $ |
Litigation And Related Matters
Litigation And Related Matters | 9 Months Ended |
Sep. 30, 2015 | |
Litigation And Related Matters [Abstract] | |
Litigation And Related Matters | NOTE 16. 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 Summary We are actively involved in the investigation, closure and/or remediation of existing or potential environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) , and state or international Superfund and similar type environmental laws at several domestically- and internationally-owned, formerly owned and non-owned locations allegedly resulting from past industrial activity. In a few cases, we are one of several potentially responsible parties and have agreed to jointly fund the required investigation and remediation, while preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. We are currently pursuing coverage and recoveries under those policies with respect to certain of the sites, but we are unable to predict the outcome or costs of these proceedings. Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding each individual site. We consider factors such as our activities associated with the site, existing technology, presently enacted laws and regulations and prior company experience in remediating contaminated sites. Although current law imposes joint and several liability on all parties at Superfund sites, our contribution to the remediation of these sites is expected to be limited by the number of other companies potentially liable for site remediation. As a result, our estimated liability reflects only our expected share. In determining the probability of contribution, we consider the solvency of other parties, the site activities of other parties, whether liability is being disputed, the terms of any existing agreements and experience with similar matters, and the effect of our Chapter 11 reorganization upon the validity of the claim. Specific Material Events St Helens, OR In August 2010, we entered into a Consent Order (the “Consent Order”) with the Oregon Department of Environmental Quality (“ODEQ”), along with Kaiser Gypsum Company, Inc. (“Kaiser”), and Owens Corning Sales LLC (“OC”), with respect to our St. Helens, OR Building Products facility, which was previously owned by Kaiser and then OC. The Consent Order, which replaces a previous order of the ODEQ requiring us to investigate and remediate hazardous substances present at the facility, requires that we and Kaiser complete a remedial investigation and feasibility study (“RI/FS”) on the portion of the site owned by us (“Owned Property”), which is comprised of Upland and Lowland areas. The Consent Order further requires us, Kaiser and OC to conduct an RI/FS in the In-Water area of the adjacent Scappoose Bay. We are currently in an investigation phase for both the Owned Property and the Scappoose Bay and are working with ODEQ, Kaiser and OC to finalize the reports to move to the Feasibility Study phase. We have determined that it is probable that remedial action for certain portions of both the Upland and Lowland areas of the Owned Property will be required. The current estimate of our future liability at the site includes any remaining known investigation work required by the Consent Order and the current projected cost of possible remedies for limited portions of the Owned Property. At this time, we are unable to reasonably estimate any remediation costs that we may ultimately incur with respect to other portions of the Owned Property or the Scappoose Bay or whether the projected costs for the areas we have included in our current estimate will increase . A dditional investigative or remedial action may be required by ODEQ and could result in additional costs greater than the amounts currently estimated . We are unable to reasonably estimate any such costs at this time, however, those costs may be material. We believe that our ongoing work with ODEQ and Kaiser may enable us to reasonably estimate such costs in 2016. Costs and responsibilities for investigation, including the current RI/FS for the Owned Property continue to be shared with Kaiser pursuant to a cost sharing agreement with Kaiser. Contemporaneously with the execution of the Consent Order, we, Kaiser and OC also entered into a separate cost sharing agreement for both the investigation and possible remediation of the Scappoose Bay. Kaiser’s shares under the cost sharing agreements are being funded by certain insurance policies, which comprise substantially all of Kaiser’s assets. If Kaiser and OC are unwilling or unable to fulfill their obligations under the cost sharing agreements, or seek to contest or challenge the allocations, or if Kaiser’s insurance policies are unable to fund Kaiser’s shares, it could result in additional cost to us greater than the amounts currently estimated and those costs may be material. The principal contaminants at the St. Helens site are arsenic and dioxin compounds from historic operations by prior owners of the plant. As part of the investigation on the site pursuant to the Consent Order, we conducted an analysis of the raw materials used in our manufacturing processes at the St. Helens facility to identify possible sources of these same contaminants. Our testing found low levels of naturally occurring dioxin in sourced clay, known as ball clay, used in the production of some of our fire-retardant products at our St. Helens manufacturing facility. Based on the data from the soil and sediment samples from our St. Helens property and the data from the ball clay, we do not believe that the presence of dioxin in our raw material will have a material impact on our ultimate liability at the site. In addition, consistent with our health and safety policies, we tested employee exposure levels at two facilities representative of our handling procedures at all plants that use this ball clay and, as a result of such testing, do not believe that the ball clay poses a hazard to our employees based on applicable regulatory standards. Based on the manufacturing process and the amount of raw material utilized, we also believe that the dioxin levels in our finished products do not pose a hazard to installers or consumers. While we have not received any claims related to this raw material or our fire-retardant products, there can be no assurance that the raw material or the finished products will not become the subject of legal claims or regulatory actions or that such claims or actions will not have a material adverse effect on our financial condition or results of operations. Macon, GA The U.S. Environmental Protection Agency (“EPA”) has listed two landfills located on a portion of our Building Products facility in Macon, GA, along with the former Macon Naval Ordnance Plant landfill adjacent to our property, and portions of Rocky Creek (collectively, the “Macon Site”) as a Superfund site on the National Priorities List due to the presence of contaminants, most notably PCBs. In September 2010, we entered into an Administrative Order on Consent for a Removal Action with the EPA to investigate PCB contamination in one of the landfills on our property, the Wastewater Treatment Plant Landfill (the “WWTP Landfill”). We concluded the investigative phase of the Removal Action for the WWTP Landfill and submitted our final Engineering Evaluation/Cost Analysis (“EE/CA”) to the EPA in 2013. The EPA subsequently approved the EE/CA and issued an Action Memorandum in July 2013 selecting our recommended remedy for the Removal Action. In July 2014, we entered into an Administrative Order on Consent for Removal Action with the EPA for the WWTP Landfill. The EPA approved the Removal Action Work Plan on March 30, 2015 and the removal work commence d in the third quarter of 2015. We expect this work to be completed by the end of the year. Our estimate of future liability includes estimated costs for the Removal Action for the WWTP Landfill. It is probable that we will incur field investigation, engineering and oversight costs associated with a RI/FS with respect to the remainder of the Superfund site, which includes the other landfill on our property, as well as areas on and adjacent to AWI ’s property and Rocky Creek (the “Remaining Site”). On September 25, 2015, AWI and six other Potentially Responsible Parties (“PRPs”) received a Special Notice Letter from the EPA under CERCLA inviting AWI and the PRPs to enter into the negotiation of a Settlement Agreement (formerly known as an Administrative Order on Consent) to conduct an RI/FS of Operable Unit 2, which is the Remaining Site. W e have not yet entered into an Order with the EPA for the Remaining Site and have not yet commenced an investigation of this portion of the site. Accordingly, we are able to estimate only a small portion of the costs that may be associated with the RI/FS for the Remaining Site. We anticipate that the EPA may require significant investigative work for the Remaining Site and that we may ultimately incur costs in remediating any contamination discovered during the RI/FS. At this time, w e are unable to reasonably estimate the total costs or AWI’s share of the costs associated with the investigation work or any resulting remediation therefrom, although such amounts may be material. We believe that our ongoing work with the EPA and the PRPs may enable us to reasonably estimate our share of initial investigation costs later this year or early in 2016. Elizabeth City, NC This site is a former cabinet manufacturing facility that was operated by Triangle Pacific Corporation, now known as Armstrong Wood Products, Inc. (“Triangle Pacific”) , from 1977 until 1996. The site was formerly owned by the U.S. Navy (“Navy”) and Westinghouse, now CBS Corporation (“CBS”). We assumed ownership of the site when we acquired the stock of Triangle Pacific in 1998. Prior to our acquisition, the NC Department of Environment and Natural Resources listed the site as a hazardous waste site. In 1997, Triangle Pacific entered into a cost sharing agreement with Westinghouse whereby the parties agreed to share equally in costs associated with investigation and potential remediation. In 2000, we and CBS entered into an RI/FS with the EPA for the site. In 2007, we and CBS entered into an agreement with the Navy whereby the Navy agreed to pay one third of defined past and future investigative costs up to a certain amount, which has now been exhausted. Although the parties initially submitted the RI/FS work plan to the EPA in 2004, the EPA did not approve the RI/FS work plan until August 2011. We submitted the draft Remedial Investigative and Risk Assessments in the first quarter of 2014, conducted supplemental investigative work based upon EPA comments to those reports and are awaiting further EPA comment. We are unable to reasonably estimate any additional investigative costs or determine whether remediation will be required. If remediation is required, the related costs may be material, although we expect these costs to be shared with CBS and the Navy. Summary of Financial Position Liabilities of $ 3.5 million at September 30, 2015 and $ 4.4 million at December 31, 2014 were recorded for potential environmental liabilities, on a global basis, that we consider probable and for which a reasonable estimate of the probable liability could be made. Where existing data is sufficient to estimate the liability, that estimate has been used; where only a range of probable liabilities is available and no amount within that range is more likely than any other, the lower end of the range has been used. As assessments and remediation activities progress at each site, these liabilities are reviewed to reflect new information as it becomes available. These liabilities are undiscounted. The estimated liabilities above do not take into account any claims for recoveries from insurance or third parties. It is our policy to record probable recoveries that are either available through settlement or anticipated to be recovered through negotiation or litigation as assets in the Condensed Consolidated Balance Sheets. No material amounts were recorded for probable recoveries at September 30, 2015 or December 31, 2014 . Actual costs to be incurred at identified sites may vary significantly from our estimates. Based on our knowledge of the identified sites, it is not possible to reasonably estimate future costs in excess of amounts already recognized. 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 (“AD”) and countervailing duties (“CVD”) with the United States Department of Commerce (“DOC”) and the United States International Trade Commission (“ITC”) against imports of multilayered hardwood flooring from China. The AD and CVD petitions ultimately resulted in DOC issuing AD and CVD Orders against multilayered wood flooring imported into the U.S. from China. These Orders and the associated additional duties they have imposed have been the subject of extensive litigation, both at DOC and in the U.S. courts. We produce multilayered wood flooring domestically and import multilayered wood flooring from third party suppliers in China. Until October 2014, we also operated a plant in Kunshan , China (“Armstrong Kunshan”) that manufactured multilayered wood flooring for export to the U.S. As a result, we have been directly involved in the multilayered wood flooring-related litigation at DOC and in the U.S. courts. Our consistent view through the course of this matter has been, and remains, that our imports are neither dumped nor subsidized. In 2013, in the sole DOC investigation of AWI and its subsidiaries (as a mandatory respondent in connection with the first annual administrative review), Armstrong Kunshan received a final AD rate of 0.00% and a final CVD rate of 0.98% . Litigation regarding this matter has continued in the U.S. courts. The most recent court decision, on July 6, 2015, upheld certain DOC calculations on remand. Armstrong Kunshan as well as other respondents have appealed the DOC’s original decision to apply an AD rate to us 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. DOC also continues to conduct annual administrative reviews of the CVD and AD final duty rates under the Orders. In July 2015, DOC issued its final AD and CVD rates for the second administrative review, which applies to 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). Armstrong Kunshan was not selected as a mandatory respondent for the second AD review 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 others” respondents). On July 7, 2015, the DOC issued a final “All Others” CVD rate of 0.99% that also applies to Armstrong Kunshan as part of the second CVD administrative review. On July 9, 2015, DOC issued a final AD determination for the second administrative review. DOC imposed a 13.74% AD rate 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 this rate to all separate rate respondents that were not individually investigated, including Armstrong Kunshan. AWI and its subsidiaries , Armstrong Kunshan, and other respondents have filed complaints against DOC challenging the rate in the U.S. Court of International Trade with a decision expected in 2016. If such rates are ultimately upheld after any court appeals are exhausted, the estimated additional liability to us for the relevant period is approximately $4 million. This estimated additional liability wa s reflected in our second quarter 2015 results. DOC is currently conducting its third annual administrative review. Armstrong Kunshan was not selected as a mandatory respondent for the third AD review and therefore, is not subject to individual mandatory review. As part of these reviews, Armstrong Kunshan’s individual CVD and AD assessment rates may be changed and the revised rates applicable to participants that were not individually reviewed will apply to all multilayer wood flooring imports between December 1, 2013 and November 30, 2014 (AD) and between January 1, 2013 and December 31, 2013 (CVD). We expect that DOC will issue preliminary AD and CVD rates for the third administrative review in December 2015 and final AD and CVD rates for the third administrative reviews in mid-2016. We are unable to predict the final AD and CVD rates for the pending reviews at this time, but plan to continue to defend our import practices and pursue our available legal rights and remedies, including litigation at DOC and in the U.S courts. OTHER CLAIMS We are involved in various lawsuits, claims, investigations and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. For example, we are currently a party to various litigation matters that involve product liability, tort liability and other claims under a wide range of allegations, including illness due to exposure to certain chemicals used in the workplace; or medical conditions arising from exposure to product ingredients or the presence of trace contaminants. In some cases, these allegations involve multiple defendants and relate to legacy products that we and other defendants purportedly manufactured or sold. We believe these claims and allegations to be without merit and intend to defend them vigorously. For these matters, we also may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. We are currently pursuing coverage and recoveries under those policies, but are unable to predict the outcome or those demands. 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, liquidity or results of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 17. EARNINGS PER SHARE Earnings per share (“EPS”) components may not add due to rounding. The following table is a reconciliation of earnings to earnings attributable to common shares used in our basic and diluted EPS calculations for the three and nine month periods ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations $ $ $ $ Earnings allocated to participating non-vested share awards Earnings from continuing operations attributable to common shares $ $ $ $ The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the three and nine month periods ended September 30, 2015 and 2014 (shares in millions): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Basic shares outstanding Dilutive effect of stock option awards Diluted shares outstanding Anti-dilutive stock options excluded from the computation of diluted EPS for the three and nine months ended September 30, 2015 were 8,175 and 73 , 169 , respectively. Anti-dilutive stock options excluded from the computation of diluted EPS for the three and nine months ended September 30, 2014 were 8,175 and 4 , 927 , respectively. |
Segment Results (Tables)
Segment Results (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Results [Abstract] | |
Schedule Of Net Sales To External Customers | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net sales to external customers Building Products $ $ $ $ Resilient Flooring Wood Flooring Total net sales to external customers $ $ $ $ |
Schedule Of Segment Operating Income (Loss) | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Segment operating income (loss) Building Products $ $ $ $ Resilient Flooring Wood Flooring Unallocated Corporate Total consolidated operating income $ $ $ $ |
Reconciliation Of Total Consolidated Operating Income To Earnings Before Income Taxes | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Total consolidated operating income $ $ $ $ Interest expense Other non-operating expense Other non-operating (income) Earnings from continuing operations before income taxes $ $ $ $ |
Reconciliation Of Total Segment Assets To Total Consolidated Assets | September 30, 2015 December 31, 2014 Segment assets Building Products $ $ Resilient Flooring Wood Flooring Unallocated Corporate Total consolidated assets $ $ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
DLW [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary Of Results Of Discontinued Operations | Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Gain (loss) on disposal of discontinued business before income tax $ ($0.7) Income tax benefit Net gain on disposal of discontinued business $ $ Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Net sales $ $ Loss from discontinued operations before income tax ($14.9) ($21.7) Income tax benefit - - Net loss from discontinued operations ($14.9) ($21.7) |
AIP [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary Of Results Of Discontinued Operations | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Gain (loss) on disposal of discontinued business before income tax $ ($0.2) $ ($3.5) Income tax benefit - - - Net gain (loss) on disposal of discontinued business $ ($0.2) $ ($2.3) |
Accounts And Notes Receivable (
Accounts And Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts And Notes Receivable [Abstract] | |
Schedule Of Accounts And Notes Receivable | September 30, 2015 December 31, 2014 Customer receivables $ $ Customer notes Miscellaneous receivables Less allowance for warranties, discounts and losses Accounts and notes receivable, net $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Schedule Of Inventories | September 30, 2015 December 31, 2014 Finished goods $ $ Goods in process Raw materials and supplies Less LIFO and other reserves Total inventories, net $ $ |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Current Assets [Abstract] | |
Schedule Of Other Current Assets | September 30, 2015 December 31, 2014 Prepaid expenses $ $ Short-term investments - Fair value of derivative assets Other Total other current assets $ $ |
Equity Investment (Tables)
Equity Investment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Investment [Abstract] | |
Summary Of Investment In Joint Venture, Income Statement Data | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net sales $ $ $ $ Gross profit Net earnings |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Schedule Of Intangible Assets | September 30, 2015 December 31, 2014 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Customer relationships 20 years $ $ $ $ Developed technology 15 years Other Various Total $ $ $ $ Non-amortizing intangible assets Trademarks and brand names Indefinite Total intangible assets $ $ |
Schedule Of Amortization Expense | Nine Months Ended September 30, 2015 2014 Amortization expense $ $ |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Expense [Abstract] | |
Schedule Of Income Tax Expense (Benefit) | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations before income taxes $ $ $ $ Income tax expense Effective tax rate |
Pensions And Other Benefit Pr33
Pensions And Other Benefit Programs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pensions And Other Benefit Programs [Abstract] | |
Schedule Of Periodic Benefit Costs (Credits) | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 U.S. defined-benefit plans: Pension benefits Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Expected return on plan assets Amortization of prior service cost Amortization of net actuarial loss Net periodic pension cost $ $ $ $ Retiree health and life insurance benefits Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Amortization of prior service credit Amortization of net actuarial gain Net periodic postretirement benefit cost $ $ $ $ Non-U.S. defined-benefit pension plans Service cost of benefits earned during the period $ $ $ $ Interest cost on projected benefit obligation Expected return on plan assets Amortization of prior service cost - - - Amortization of net actuarial loss Net periodic pension cost $ $ $ $ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments [Abstract] | |
Estimated Fair Value Of Financial Instruments | September 30, 2015 December 31, 2014 Carrying amount Estimated fair value Carrying amount Estimated fair value Assets (Liabilities), net: Total long-term debt, including current portion ($1,013.8) ($1,007.0) ($1,042.6) ($1,028.2) Foreign currency contracts Natural gas contracts Interest rate swap contracts |
Summary Of Assets And Liabilities | September 30, 2015 December 31, 2014 Fair value based on Fair value based on Quoted, active markets Other observable inputs Quoted, active markets Other observable inputs Level 1 Level 2 Level 1 Level 2 Assets (Liabilities), net: Total long-term debt, including current portion ($459.8) ($547.2) ($459.8) ($568.4) Foreign currency contracts - - Natural gas contracts - - Interest rate swap contracts - - |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Summary Of Interest Rate Swaps | Trade Date Notional Amount Interest Rate Paid Coverage Period Risk Coverage March 31, 2011 $100.0 March 2011 to November 2015 Term Loan A March 31, 2011 $200.0 March 2011 to November 2015 Term Loan B March 27, 2012 $250.0 March 2012 to March 2018 Term Loan B March 27, 2012 $200.0 November 2015 to March 2018 Term Loan B April 16, 2013 $250.0 November 2015 to March 2018 Term Loan A |
Summary Of The Fair Value Of Derivative Instruments On The Consolidated Balance Sheet | Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location September 30, 2015 December 31, 2014 Balance Sheet Location September 30, 2015 December 31, 2014 Derivatives designated as hedging instruments Natural gas commodity contracts Other current assets - - Accounts payable and accrued expenses $ $ Foreign exchange contracts Other current assets $ $ Accounts payable and accrued expenses Interest rate swap contracts Other current assets - - Accounts payable and accrued expenses - Foreign exchange contracts Other non-current assets Other long-term liabilities - Interest rate swap contracts Other non-current assets - Other long-term liabilities Total derivatives designated as hedging instruments $ $ $ $ |
Summary Of The Amount Of (Loss) Recognized In Accumulated Other Comprehensive Income | Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion)(a) Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 Derivatives in cash flow hedging relationships Natural gas commodity contracts ($1.2) ($0.3) Cost of goods sold ($0.9) ($0.2) ($3.5) $ Foreign exchange contracts – purchases Cost of goods sold Foreign exchange contracts – sales Net sales Interest rate swap contracts Interest expense - - - - Total ($7.3) ($3.3) $ $ $ $ (a) As of September 30, 2015 the amount of existing gains in AOCI expected to be recognized in earnings over the next twelve months is $ 5.0 million. |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties [Abstract] | |
Summary Of Activity For The Accrual Of Product Warranties | 2015 2014 Balance at January 1, $ $ Reductions for payments Current year warranty accruals Balance at September 30, $ $ |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Components Of Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Adjustments (1) Derivative (Loss) Gain (1) Pension and Postretirement Adjustments (1) Total Accumulated Other Comprehensive Loss (1) Balance, December 31, 2014 ($8.3) ($4.0) ($483.2) ($495.5) Other comprehensive (loss) income before reclassifications, net of tax expense of $ - , ($0.7) , ($1.0) , and ($1.7) Amounts reclassified from accumulated other comprehensive loss - Net current period other comprehensive (loss) income Balance at September 30, 2015 ($29.6) ($4.2) ($451.0) ($484.8) Foreign Currency Translation Adjustments (1) Derivative (Loss) Gain (1) Pension and Postretirement Adjustments (1) Total Accumulated Other Comprehensive Loss (1) Balance, December 31, 2013 $ ($0.7) ($392.2) ($371.6) Other comprehensive (loss) income before reclassifications, net of tax expense of $ - , ($1.5) , ($0.3) , and ($1.8) Amounts reclassified from accumulated other comprehensive loss - Net current period other comprehensive (loss) income Balance at September 30, 2014 $ ($2.0) ($370.9) ($361.6) (1) Amounts are net of tax |
Reclassification Out Of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statement of Earnings and Comprehensive Income Nine Months Ended September 30, 2015 2014 Derivative Adjustments: Natural gas commodity contracts $ ($0.9) Cost of goods sold Foreign exchange contracts - purchases Cost of goods sold Foreign exchange contracts - sales Net sales Total income before tax Tax impact Income tax expense Total income, net of tax Pension and Postretirement Adjustments: Prior service cost amortization Cost of goods sold Prior service cost amortization SG&A expense Amortization of net actuarial loss Cost of goods sold Amortization of net actuarial loss SG&A expense Total expense before tax Tax impact Income tax expense Total expense, net of tax Total reclassifications for the period $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Net Earnings To Net Earnings Attributable To Common Shares Used In Basic And Diluted Calculation | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations $ $ $ $ Earnings allocated to participating non-vested share awards Earnings from continuing operations attributable to common shares $ $ $ $ |
Reconciliation Of Basic Shares Outstanding To Diluted Shares Outstanding | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Basic shares outstanding Dilutive effect of stock option awards Diluted shares outstanding |
Business And Basis Of Present39
Business And Basis Of Presentation (Details) $ in Millions | Feb. 23, 2015entity | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)shares | Dec. 31, 2014shares |
Business And Basis Of Presentation [Line Items] | ||||
Number of independent publicly-traded companies from separation | entity | 2 | |||
Separation costs | $ 7.4 | $ 16.8 | ||
Bankruptcy voluntary petition filed for relief date | Dec. 1, 2000 | |||
Bankruptcy court where petition filed | United States Bankruptcy Court for the District of Delaware | |||
Plan of reorganization approved date | Oct. 1, 2006 | |||
Entity arising from bankruptcy proceeding | AWI emerged from Chapter 11 | |||
Creation of settlement trust date | October 2,006 | |||
Name of the settlement trust | Asbestos Personal Injury Settlement Trust (the "Asbestos PI Trust") | |||
Asbestos PI Trust [Member] | ||||
Business And Basis Of Presentation [Line Items] | ||||
Sale of stock by investee | shares | 4,281,884 | 20,448,362 | ||
Holding percentage in Armstrong World Industries, Inc. | 9.00% | 9.00% |
Segment Results (Narrative) (De
Segment Results (Narrative) (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2014USD ($)site | |
Segment Results [Abstract] | |
Number of wood flooring manufacturing facilities | site | 5 |
Asset impairment charge in COGS | $ 4.4 |
Segment Results (Schedule Of Ne
Segment Results (Schedule Of Net Sales To External Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales to external customers | $ 658.5 | $ 678.9 | $ 1,842.6 | $ 1,928 |
Building Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales to external customers | 335.9 | 351.7 | 934 | 983.4 |
Resilient Flooring [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales to external customers | 192.1 | 190.2 | 548.8 | 550.1 |
Wood Flooring [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales to external customers | $ 130.5 | $ 137 | $ 359.8 | $ 394.5 |
Segment Results (Schedule Of Se
Segment Results (Schedule Of Segment Operating Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ 79.7 | $ 85.8 | $ 178.6 | $ 203.2 |
Building Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 89.8 | 86.6 | 213.8 | 209.3 |
Resilient Flooring [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 14.3 | 14.9 | 43.4 | 46 |
Wood Flooring [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 10.4 | 2 | 11.7 | 4.5 |
Unallocated Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ (34.8) | $ (17.7) | $ (90.3) | $ (56.6) |
Segment Results (Reconciliation
Segment Results (Reconciliation Of Total Consolidated Operating Income To Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Results [Abstract] | ||||
Total consolidated operating income | $ 79.7 | $ 85.8 | $ 178.6 | $ 203.2 |
Interest expense | 11.3 | 10.9 | 33.9 | 34.3 |
Other non-operating expense | 14 | 2.6 | 15.5 | 9.2 |
Other non-operating (income) | (0.8) | (0.7) | (5) | (1.9) |
Earnings from continuing operations before income taxes | $ 55.2 | $ 73 | $ 134.2 | $ 161.6 |
Segment Results (Reconciliati44
Segment Results (Reconciliation Of Total Segment Assets To Total Consolidated Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 2,694.4 | $ 2,606.2 |
Building Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 1,065.9 | 1,079.7 |
Resilient Flooring [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 509.9 | 492.7 |
Wood Flooring [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 341.5 | 329.8 |
Unallocated Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 777.1 | $ 704 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015item | Dec. 11, 2014USD ($) | Aug. 31, 2014USD ($) | Sep. 30, 2013USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income tax benefit | $ 0.7 | $ 43.4 | $ 0 | $ 44.1 | $ 1.2 | |||||
DLW [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income tax benefit | 0.7 | 44.1 | ||||||||
Number of manufacturing plants sold to third party | item | 2 | |||||||||
Deconsolidation net liability | $ 12.1 | $ 12.1 | $ 12.9 | |||||||
Assets removed from balance sheet | 151.9 | |||||||||
Liabilities removed from balance sheet | $ 164.8 | |||||||||
AIP [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income tax benefit | $ 1.2 | |||||||||
Multi-employer pension plan withdrawal liability | $ 10 | $ 10.3 | $ 7.5 | |||||||
Multi-employer pension plan, additional withdrawal liability | $ 0.3 | $ 3.3 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income tax benefit | $ 0.7 | $ 43.4 | $ 0 | $ 44.1 | $ 1.2 |
Net gain (loss) on disposal of discontinued business | 1.5 | (0.2) | 44 | (2.3) | |
Net earnings (loss) from discontinued operations | 1.5 | (15.1) | 44 | (24) | |
DLW [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on disposal of discontinued business before income tax | 0.2 | (0.7) | |||
Income tax benefit | 0.7 | 44.1 | |||
Net gain (loss) on disposal of discontinued business | 0.9 | 43.4 | |||
Net sales | 49.4 | 144.7 | |||
Loss from discontinued operations before income tax | $ (14.9) | $ (21.7) | |||
Income tax benefit | |||||
Net earnings (loss) from discontinued operations | $ (14.9) | $ (21.7) | |||
AIP [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on disposal of discontinued business before income tax | 0.6 | (0.2) | 0.6 | (3.5) | |
Income tax benefit | 1.2 | ||||
Net gain (loss) on disposal of discontinued business | $ 0.6 | $ (0.2) | $ 0.6 | $ (2.3) |
Accounts And Notes Receivable47
Accounts And Notes Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts And Notes Receivable [Abstract] | ||
Customer receivables | $ 222.5 | $ 209.7 |
Customer notes | 2.2 | 1.3 |
Miscellaneous receivables | 6.9 | 9.3 |
Less allowance for warranties, discounts and losses | (24.4) | (25.1) |
Accounts and notes receivable, net | $ 207.2 | $ 195.2 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Finished goods | $ 211.8 | $ 243.2 |
Goods in process | 26.1 | 23 |
Raw materials and supplies | 139.3 | 133.9 |
Less LIFO and other reserves | (37.1) | (64.6) |
Total inventories, net | $ 340.1 | $ 335.5 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Other Current Assets [Abstract] | ||
Prepaid expenses | $ 42.5 | $ 47.6 |
Short-term investments | 8.9 | |
Fair value of derivative assets | 7.5 | 5.7 |
Other | 10.1 | 5.5 |
Total other current assets | $ 69 | $ 58.8 |
Equity Investments (Narrative)
Equity Investments (Narrative) (Details) | Sep. 30, 2015 |
WAVE [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest percentage | 50.00% |
Equity Investment (Summary Of I
Equity Investment (Summary Of Investment In Joint Venture, Income Statement Data) (Details) - WAVE [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | $ 103.5 | $ 105.8 | $ 284.2 | $ 298.6 |
Gross profit | 53.4 | 51.6 | 140.9 | 142.3 |
Net earnings | $ 42.3 | $ 40.6 | $ 108.4 | $ 109.8 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | $ 273 | $ 271.6 |
Amortizing intangible assets, Accumulated Amortization | 126.9 | 115.9 |
Total intangible assets | $ 620.1 | 617.3 |
Trademarks And Brand Names [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Non-amortizing intangible assets, Estimated Useful Life | Indefinite | |
Non-amortizing intangible assets, Gross Carrying Amount | $ 347.1 | 345.7 |
Customer Relationships [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Estimated Useful Life | 20 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 165.4 | 165.4 |
Amortizing intangible assets, Accumulated Amortization | $ 74.6 | 68.4 |
Developed Technology [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Estimated Useful Life | 15 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 86.8 | 84.9 |
Amortizing intangible assets, Accumulated Amortization | $ 49.6 | 45.1 |
Other [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Estimated Useful Life | Various | |
Amortizing intangible assets, Gross Carrying Amount | $ 20.8 | 21.3 |
Amortizing intangible assets, Accumulated Amortization | $ 2.7 | $ 2.4 |
Intangible Assets (Schedule O53
Intangible Assets (Schedule Of Amortization Expense) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 11 | $ 10.9 |
Severances And Related Costs (D
Severances And Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2014 | |
Australia [Member] | Resilient Flooring [Member] | ||
Severances and Related Costs [Line Items] | ||
Severance and related costs | $ 0.2 | $ 1.7 |
China [Member] | Wood Flooring [Member] | ||
Severances and Related Costs [Line Items] | ||
Severance and related costs | $ 0.7 | $ 1.4 |
Income Tax Expenses (Details)
Income Tax Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Expense [Abstract] | ||||
Earnings from continuing operations before income taxes | $ 55.2 | $ 73 | $ 134.2 | $ 161.6 |
Income tax expense | $ 24.9 | $ 26.3 | $ 70.2 | $ 70.2 |
Effective tax rate | 45.10% | 36.00% | 52.30% | 43.40% |
Pensions And Other Benefit Pr56
Pensions And Other Benefit Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Defined-Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | $ 4 | $ 3.6 | $ 12.2 | $ 10.8 |
Interest cost on projected benefit obligation | 20.3 | 21.4 | 60.7 | 64.2 |
Expected return on plan assets | (35.1) | (34.8) | (105.2) | (104.4) |
Amortization of prior service cost (credit) | 0.5 | 0.5 | 1.4 | 1.4 |
Amortization of net actuarial loss (gain) | 18.2 | 10.6 | 54.6 | 31.8 |
Net periodic benefit cost | 7.9 | 1.3 | 23.7 | 3.8 |
U.S. Retiree Health And Life Insurance Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | 0.2 | 0.2 | 0.7 | 0.7 |
Interest cost on projected benefit obligation | 2.1 | 2.8 | 6.1 | 8.2 |
Amortization of prior service cost (credit) | (0.2) | (0.2) | (0.5) | (0.5) |
Amortization of net actuarial loss (gain) | (1.9) | (1) | (5.8) | (3.1) |
Net periodic benefit cost | 0.2 | 1.8 | 0.5 | 5.3 |
Non-U.S. Defined-Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | 0.7 | 0.6 | 1.8 | 1.7 |
Interest cost on projected benefit obligation | 2.1 | 2.6 | 6.3 | 7.9 |
Expected return on plan assets | (2.3) | (2.9) | (6.8) | (8.7) |
Amortization of prior service cost (credit) | 0.1 | |||
Amortization of net actuarial loss (gain) | 0.7 | 0.6 | 2 | 1.6 |
Net periodic benefit cost | $ 1.2 | $ 0.9 | $ 3.4 | $ 2.5 |
Financial Instruments (Estimate
Financial Instruments (Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 9.4 | $ 8.4 |
Derivative liabilities | (16.6) | (15) |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (1,013.8) | (1,042.6) |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (1,007) | (1,028.2) |
Commodity Price Risk [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (1.2) | (3) |
Commodity Price Risk [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (1.2) | (3) |
Interest Rate Swap Contracts [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (15) | (9.3) |
Interest Rate Swap Contracts [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (15) | (9.3) |
Foreign Exchange Contracts [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 9 | 5.4 |
Foreign Exchange Contracts [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 9 | $ 5.4 |
Financial Instruments (Summary
Financial Instruments (Summary Of Assets And Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 9.4 | $ 8.4 |
Derivative liabilities | (16.6) | (15) |
Quoted, Active Markets Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (459.8) | (459.8) |
Quoted, Active Markets Level 1 [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 9 | 5.4 |
Other Observable Inputs Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (547.2) | (568.4) |
Other Observable Inputs Level 2 [Member] | Commodity Price Risk [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (1.2) | (3) |
Other Observable Inputs Level 2 [Member] | Interest Rate Swap Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ (15) | $ (9.3) |
Derivative Financial Instrume59
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||||
Derivative Liabilities | $ 16.6 | $ 16.6 | $ 15 | ||
Derivative Assets | 9.4 | $ 9.4 | 8.4 | ||
Commodity Price Risk [Member] | |||||
Derivative [Line Items] | |||||
Maximum length of time hedged in cash flow hedge | 24 months | ||||
Notional amount | $ 9.2 | $ 9.2 | 14.6 | ||
Interest Rate Swap Contracts [Member] | |||||
Derivative [Line Items] | |||||
LIBOR floor | 1.00% | 1.00% | |||
Foreign Exchange Contracts [Member] | Sales And Purchases [Member] | |||||
Derivative [Line Items] | |||||
Maximum length of time hedged in cash flow hedge | 15 months | ||||
Notional amount | $ 88.7 | $ 88.7 | 102.4 | ||
Foreign Exchange Contracts [Member] | Intercompany Loans And Dividends [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | 0 | 0 | 21.2 | ||
Not Designated As Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in income for derivative instruments | 0 | $ 8.9 | 0.1 | $ 6.5 | |
Derivative Liabilities | 0 | 0 | 0.5 | ||
Derivative Assets | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume60
Derivative Financial Instruments (Summary Of Interest Rate Swaps) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
2.303% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Mar. 31, 2011 |
Notional amount | $ 100 |
Fixed interest rate | 2.303% |
Coverage Period | March 2011 to November 2015 |
Risk Coverage | Term Loan A |
2.523% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Mar. 31, 2011 |
Notional amount | $ 200 |
Fixed interest rate | 2.523% |
Coverage Period | March 2011 to November 2015 |
Risk Coverage | Term Loan B |
1.928% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Mar. 27, 2012 |
Notional amount | $ 250 |
Fixed interest rate | 1.928% |
Coverage Period | March 2012 to March 2018 |
Risk Coverage | Term Loan B |
2.810% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Mar. 27, 2012 |
Notional amount | $ 200 |
Fixed interest rate | 2.81% |
Coverage Period | November 2015 to March 2018 |
Risk Coverage | Term Loan B |
1.398% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Apr. 16, 2013 |
Notional amount | $ 250 |
Fixed interest rate | 1.398% |
Coverage Period | November 2015 to March 2018 |
Risk Coverage | Term Loan A |
Derivative Financial Instrume61
Derivative Financial Instruments (Summary Of The Fair Value Of Derivative Instruments On The Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 9.4 | $ 8.4 |
Derivative Liabilities, Fair Value | $ 16.6 | $ 15 |
Other Current Assets [Member] | Commodity Price Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | ||
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 7.5 | $ 5.6 |
Other Current Assets [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | ||
Other Non-Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 1.9 | $ 0.9 |
Other Non-Current Assets [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 1.9 | |
Accounts Payable And Accrued Expenses [Member] | Commodity Price Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 1.2 | 3 |
Accounts Payable And Accrued Expenses [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 0.4 | $ 0.7 |
Accounts Payable And Accrued Expenses [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0.7 | |
Other Long-Term Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0.1 | |
Other Long-Term Liabilities [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 14.3 | $ 11.2 |
Derivative Financial Instrume62
Derivative Financial Instruments (Summary Of The Amount Of (Loss) Recognized In Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income ("AOCI") (Effective Portion) | [1] | $ (7.3) | $ (3.3) | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 2 | $ 0.9 | 3.6 | 5.2 | ||
Forecast [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
(Loss) in Accumulated OCI expected to be recognized in earnings | $ (5) | |||||
Commodity Price Risk [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income ("AOCI") (Effective Portion) | [1] | (1.2) | (0.3) | |||
Foreign Exchange Contracts - Purchases [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income ("AOCI") (Effective Portion) | [1] | 2.6 | 0.6 | |||
Foreign Exchange Contracts - Sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income ("AOCI") (Effective Portion) | [1] | 6.3 | 3 | |||
Interest Rate Swap Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income ("AOCI") (Effective Portion) | [1] | (15) | (6.6) | |||
Cost Of Goods Sold [Member] | Commodity Price Risk [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (0.9) | (0.2) | (3.5) | 0.9 | ||
Cost Of Goods Sold [Member] | Foreign Exchange Contracts - Purchases [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0.4 | 0.3 | 0.6 | 0.8 | ||
Net Sales [Member] | Foreign Exchange Contracts - Sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 2.5 | $ 0.8 | $ 6.5 | $ 3.5 | ||
[1] | As of September 30, 2015 the amount of existing gains in AOCI expected to be recognized in earnings over the next twelve months is $5.0 million. |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Product Warranties [Abstract] | ||
Balance at beginning of period | $ 7.9 | $ 7.4 |
Reductions for payments | (9) | (10.6) |
Current year warranty accruals | 8.8 | 10.9 |
Balance at end of period | $ 7.7 | $ 7.7 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | $ (495.5) | $ (371.6) | ||||
Other comprehensive (loss) income before reclassifications, net of tax (expense) benefit | [1] | (20.7) | (6.9) | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | [1] | 31.4 | 16.9 | ||||
Net current period other comprehensive (loss) income | $ (1.4) | $ (0.7) | 10.7 | [1] | 10 | [1] | |
Ending Balance | [1] | (484.8) | (361.6) | (484.8) | (361.6) | ||
Other comprehensive income before reclassifications, tax (expense) benefit | (1.7) | (1.8) | |||||
Foreign Currency Translation Adjustments [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (8.3) | 21.3 | ||||
Other comprehensive (loss) income before reclassifications, net of tax (expense) benefit | [1] | (21.3) | (10) | ||||
Net current period other comprehensive (loss) income | [1] | (21.3) | (10) | ||||
Ending Balance | [1] | (29.6) | 11.3 | (29.6) | 11.3 | ||
Other comprehensive income before reclassifications, tax (expense) benefit | 0 | 0 | |||||
Derivative Adjustments [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (4) | (0.7) | ||||
Other comprehensive (loss) income before reclassifications, net of tax (expense) benefit | [1] | 2.1 | 2.1 | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | [1] | (2.3) | (3.4) | ||||
Net current period other comprehensive (loss) income | [1] | (0.2) | (1.3) | ||||
Ending Balance | [1] | (4.2) | (2) | (4.2) | (2) | ||
Other comprehensive income before reclassifications, tax (expense) benefit | (0.7) | (1.5) | |||||
Pension And Postretirement Adjustments [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (483.2) | (392.2) | ||||
Other comprehensive (loss) income before reclassifications, net of tax (expense) benefit | [1] | (1.5) | 1 | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | [1] | 33.7 | 20.3 | ||||
Net current period other comprehensive (loss) income | [1] | 32.2 | 21.3 | ||||
Ending Balance | [1] | $ (451) | $ (370.9) | (451) | (370.9) | ||
Other comprehensive income before reclassifications, tax (expense) benefit | $ (1) | $ (0.3) | |||||
[1] | Amounts are net of tax |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Reclassification Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | $ 480.6 | $ 510.9 | $ 1,377.3 | $ 1,470.9 | |
Selling, general and administrative expenses | 110.4 | 101 | 319.5 | 304.3 | |
Net sales | 658.5 | 678.9 | 1,842.6 | 1,928 | |
Earnings from continuing operations before income taxes | 55.2 | 73 | 134.2 | 161.6 | |
Income tax expense | (24.9) | (26.3) | (70.2) | (70.2) | |
Earnings from continuing operations | $ 30.3 | $ 46.7 | 64 | 91.4 | |
Total reclassifications for the period | [1] | 31.4 | 16.9 | ||
Derivative Adjustments [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total reclassifications for the period | [1] | (2.3) | (3.4) | ||
Pension And Postretirement Adjustments [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total reclassifications for the period | [1] | 33.7 | 20.3 | ||
Reclassification From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total reclassifications for the period | 31.4 | 16.9 | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Derivative Adjustments [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings from continuing operations before income taxes | (3.6) | (5.2) | |||
Income tax expense | 1.3 | 1.8 | |||
Earnings from continuing operations | (2.3) | (3.4) | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Derivative Adjustments [Member] | Commodity Price Risk [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | 3.5 | (0.9) | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Derivative Adjustments [Member] | Foreign Exchange Contracts - Purchases [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | (0.6) | (0.8) | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Derivative Adjustments [Member] | Foreign Exchange Contracts - Sales [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net sales | (6.5) | (3.5) | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Pension And Postretirement Adjustments [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings from continuing operations before income taxes | 51.8 | 31.2 | |||
Income tax expense | (18.1) | (10.9) | |||
Earnings from continuing operations | 33.7 | 20.3 | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Pension And Postretirement Adjustments [Member] | Prior Service Cost Amortization | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | 0.4 | 0.4 | |||
Selling, general and administrative expenses | 0.6 | 0.5 | |||
Reclassification From Accumulated Other Comprehensive Income [Member] | Pension And Postretirement Adjustments [Member] | Amoritzation Of Net Actuarial Loss [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | 26.6 | 16.3 | |||
Selling, general and administrative expenses | $ 24.2 | $ 14 | |||
[1] | Amounts are net of tax |
Litigation And Related Matters
Litigation And Related Matters (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2010site | Aug. 31, 2010site | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)site | Dec. 31, 2007 | Jul. 09, 2015 | Jul. 07, 2015 | Dec. 31, 2014USD ($) | Aug. 04, 2014 | May. 09, 2014 | Dec. 31, 2011 | |
Loss Contingencies [Line Items] | |||||||||||
Number of facilities tested for contamination | site | 2 | ||||||||||
Number of landfills listed as superfund site | site | 1 | 2 | |||||||||
Percentage of site costs Navy agreed to pay | 33.33% | ||||||||||
Potential environmental liabilities | $ 3,500,000 | $ 4,400,000 | |||||||||
Recorded amount for probable recoveries | $ 0 | $ 0 | |||||||||
Antidumping Duties | 13.74% | 0.00% | 3.31% | ||||||||
Countervailing Duties | 0.99% | 0.98% | |||||||||
Minimum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated additional liability | $ 4,000,000 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Options to purchase common stock not included in the computation of diluted EPS | 8,175 | 8,175 | 73,169 | 4,927 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Net Earnings To Net Earnings Attributable To Common Shares Used In Basic And Diluted Calculation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Earnings from continuing operations | $ 30.3 | $ 46.7 | $ 64 | $ 91.4 |
Earnings allocated to participating non-vested share awards | (0.3) | (0.3) | (0.6) | (0.5) |
Earnings from continuing operations attributable to common shares | $ 30 | $ 46.4 | $ 63.4 | $ 90.9 |
Earnings Per Share (Reconcili69
Earnings Per Share (Reconciliation Of Basic Shares Outstanding To Diluted Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Basic shares outstanding | 55.5 | 55 | 55.4 | 54.9 |
Dilutive effect of stock option awards | 0.4 | 0.5 | 0.4 | 0.5 |
Diluted shares outstanding | 55.9 | 55.5 | 55.8 | 55.4 |