Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 55,497,188 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 99.4 | $ 209.3 |
Accounts and notes receivable, net | 126.9 | 114.3 |
Inventories, net | 104.2 | 101.4 |
Current assets of discontinued operations | 381.3 | |
Deferred income taxes | 34.6 | 29.7 |
Income tax receivable | 4.6 | 11.1 |
Other current assets | 20.3 | 33.7 |
Total current assets | 390 | 880.8 |
Property, plant, and equipment, less accumulated depreciation and amortization of $430.0 and $403.8, respectively | 661.1 | 648.1 |
Prepaid pension costs | 8.2 | 8.3 |
Investment in joint venture | 119.6 | 130.8 |
Intangible assets, net | 440.7 | 447.2 |
Non-current assets of discontinued operations | 499.3 | |
Deferred income taxes | 10 | 19.7 |
Income taxes receivable | 4.1 | 2.4 |
Other non-current assets | 63.3 | 57 |
Total assets | 1,697 | 2,693.6 |
Current liabilities: | ||
Current installments of long-term debt | 10 | 52.1 |
Accounts payable and accrued expenses | 202.2 | 231.1 |
Current liabilities of discontinued operations | 149.6 | |
Income tax payable | 9.6 | 3.2 |
Deferred income taxes | 0.6 | 0.3 |
Total current liabilities | 222.4 | 436.3 |
Long-term debt, less current installments | 863.8 | 936.2 |
Postretirement benefit liabilities | 88.8 | 87.2 |
Pension benefit liabilities | 61.5 | 62.1 |
Other long-term liabilities | 36.6 | 43.3 |
Non-current liabilities of discontinued operations | 149.1 | |
Income taxes payable | 99.3 | 92.3 |
Deferred income taxes | 122.2 | 118.3 |
Total non-current liabilities | 1,272.2 | 1,488.5 |
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 200 million shares authorized, 60,542,365 shares issued, and 55,484,983 shares outstanding as of June 30, 2016 and 60,416,446 shares issued and 55,359,064 shares outstanding as of December 31, 2015 | 0.6 | 0.6 |
Additional paid-in capital | 516.9 | 1,151.8 |
Retained earnings | 372.2 | 365.2 |
Treasury stock, at cost, 5,057,382 shares | (261.4) | (261.4) |
Accumulated other comprehensive (loss) | (425.9) | (487.4) |
Total shareholders' equity | 202.4 | 768.8 |
Total liabilities and shareholders' equity | $ 1,697 | $ 2,693.6 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 314.3 | $ 306.1 | $ 601.7 | $ 598.1 |
Cost of goods sold | 222.8 | 214.6 | 425.9 | 417.5 |
Gross profit | 91.5 | 91.5 | 175.8 | 180.6 |
Selling, general and administrative expenses | 55.8 | 61.6 | 109.5 | 125.9 |
Separation costs | 3.9 | 5.1 | 31 | 9.4 |
Equity earnings from joint venture | (19.9) | (16.4) | (38) | (30) |
Operating income | 51.7 | 41.2 | 73.3 | 75.3 |
Interest expense | 12.5 | 11.4 | 34.4 | 22.6 |
Other non-operating expense | 0.2 | 2.7 | ||
Other non-operating (income) | (2.1) | (3.4) | (7.3) | (5.4) |
Earnings from continuing operations before income taxes | 41.3 | 33 | 46.2 | 55.4 |
Income tax expense | 24.7 | 17.9 | 36.7 | 34.6 |
Earnings from continuing operations | 16.6 | 15.1 | 9.5 | 20.8 |
Net earnings (loss) from discontinued operations, net of tax expense of $-, $7.3, $0.1 and $10.7 | 14.8 | (4.5) | 12.9 | |
Gain (loss) from disposal of discontinued business, net of tax (benefit) of ($0.1), $-, ($1.9) and ($43.4) | 0.3 | (0.3) | 2 | 42.5 |
Net earnings (loss) from discontinued operations | 0.3 | 14.5 | (2.5) | 55.4 |
Net earnings | 16.9 | 29.6 | 7 | 76.2 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (13.2) | 7.4 | (11.8) | (7.9) |
Derivative (loss) | (2.1) | (0.6) | (0.5) | (1.1) |
Pension and postretirement adjustments | 9.2 | 9.2 | 17 | 21.1 |
Total other comprehensive (loss) income | (6.1) | 16 | 4.7 | 12.1 |
Total comprehensive income | $ 10.8 | $ 45.6 | $ 11.7 | $ 88.3 |
Earnings per share of common stock, continuing operations: | ||||
Basic | $ 0.30 | $ 0.27 | $ 0.17 | $ 0.37 |
Diluted | 0.29 | 0.27 | 0.17 | 0.37 |
Earnings (loss) per share of common stock, discontinued operations: | ||||
Basic | 0.01 | 0.26 | (0.04) | 0.99 |
Diluted | 0.01 | 0.26 | (0.04) | 0.98 |
Net earnings per share of common stock: | ||||
Basic | 0.30 | 0.53 | 0.13 | 1.36 |
Diluted | $ 0.30 | $ 0.53 | $ 0.13 | $ 1.36 |
Average number of common shares outstanding: | ||||
Basic | 55.6 | 55.5 | 55.6 | 55.4 |
Diluted | 56 | 55.8 | 55.9 | 55.8 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Net Earnings (Loss) from discontinued operations, tax (benefit) expense | $ 7.3 | $ 0.1 | $ 10.7 |
(Loss) Gain from disposal of discontinued business, tax expense (benefit) | $ (1.9) | $ (43.4) |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 430 | $ 403.8 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 60,542,365 | 60,416,446 |
Common stock, shares outstanding | 55,484,983 | 55,359,064 |
Treasury stock, shares | 5,057,382 | 5,057,382 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) [Member] |
Balance at Dec. 31, 2014 | $ 649.1 | $ 0.6 | $ 1,134.4 | $ 271 | $ (261.4) | $ (495.5) |
Balance at Dec. 31, 2014 | 55,126,153 | |||||
Balance at Dec. 31, 2014 | 5,057,382 | |||||
Stock issuance | 176,819 | |||||
Share-based employee compensation | 9.9 | 9.9 | ||||
Net earnings | 76.2 | 76.2 | ||||
Other comprehensive income | 12.1 | 12.1 | ||||
Balance at Jun. 30, 2015 | 747.3 | $ 0.6 | 1,144.3 | 347.2 | $ (261.4) | (483.4) |
Balance at Jun. 30, 2015 | 55,302,972 | |||||
Balance at Jun. 30, 2015 | 5,057,382 | |||||
Balance at Dec. 31, 2015 | $ 768.8 | $ 0.6 | 1,151.8 | 365.2 | $ (261.4) | (487.4) |
Balance at Dec. 31, 2015 | 55,359,064 | 55,359,064 | ||||
Balance at Dec. 31, 2015 | 5,057,382 | 5,057,382 | ||||
Stock issuance | 125,919 | |||||
Share-based employee compensation | $ 7 | 7 | ||||
Net earnings | 7 | 7 | ||||
Other comprehensive income | 4.7 | 4.7 | ||||
Separation of Armstrong Flooring, Inc. | (585.1) | (641.9) | 56.8 | |||
Balance at Jun. 30, 2016 | $ 202.4 | $ 0.6 | $ 516.9 | $ 372.2 | $ (261.4) | $ (425.9) |
Balance at Jun. 30, 2016 | 55,484,983 | 55,484,983 | ||||
Balance at Jun. 30, 2016 | 5,057,382 | 5,057,382 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 7 | $ 76.2 |
Adjustments to reconcile net earnings to net cash (used for) provided by operating activities: | ||
Depreciation and amortization | 50.2 | 57.4 |
Write off of debt financing costs | 1.1 | |
Deferred income taxes | 3.5 | (29.9) |
Share-based compensation | 6.7 | 7.6 |
Equity earnings from joint venture | (38) | (30) |
Separation costs | 31 | 9.4 |
Loss on interest rate swap | 10.7 | |
U.S. pension expense | 8.6 | 12.6 |
Non-cash foreign currency translation on intercompany loans | (5) | (4.1) |
Other non-cash adjustments, net | 1.1 | 0.2 |
Changes in operating assets and liabilities: | ||
Receivables | (39.7) | (28.5) |
Inventories | 0.6 | (16) |
Other current assets | 9.6 | (3.3) |
Other non-current assets | (8.9) | (3) |
Accounts payable and accrued expenses | (90) | 4.4 |
Income taxes payable | 18.9 | 8.5 |
Other long-term liabilities | (18.7) | (5.4) |
Other, net | (4.1) | 2.8 |
Net cash (used for) provided by operating activities | (55.4) | 58.9 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (53.4) | (56.2) |
Return of investment from joint venture | 49.2 | 28.1 |
Other investing activities | 0.3 | 3.8 |
Net cash (used for) investing activities | (3.9) | (24.3) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility and other short-term debt | 90 | |
Payments of revolving credit facility and other short-term debt | (90) | |
Proceeds from long-term debt | 363.5 | |
Payments of long-term debt | (432.1) | (18.1) |
Financing costs | (8.1) | |
Special dividends paid | (1.2) | |
Proceeds from exercised stock options | 0.1 | 4.3 |
Cash transferred to Armstrong Flooring, Inc. | (9.1) | |
Excess tax benefit from share-based awards | 2.8 | 0.1 |
Payment of company owned life insurance loans, net | (0.1) | |
Net cash (used for) financing activities | (82.9) | (15) |
Effect of exchange rate changes on cash and cash equivalents | (3.2) | (3.3) |
Net (decrease) increase in cash and cash equivalents | (145.4) | 16.3 |
Cash and cash equivalents at beginning of year | 244.8 | 185.3 |
Cash and cash equivalents at end of period | 99.4 | 201.6 |
Cash and cash equivalents at end of period of discontinued operations | 32.8 | |
Cash and cash equivalents at end of period of continuing operations | 99.4 | 168.8 |
Supplemental Cash Flow Disclosures: | ||
Interest paid | 17.6 | 19.9 |
Income taxes paid, net | 9.7 | 23.3 |
Amounts in accounts payable for capital expenditures | $ 7.4 | $ 20.9 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [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 "AWI," the "Company," "we," "our" and "us" in these notes, we are referring to AWI and its subsidiaries. On April 1, 2016, we completed our previously announced separation of Armstrong Flooring, Inc. (“AFI”) by allocating the assets and liabilities related primarily to the Resilient Flooring and Wood Flooring segments to AFI and then distributing the common stock of AFI to our shareholders at a ratio of one share of AFI common stock for every two shares of AWI common stock. Subsequent to the separation and distribution, AWI and AFI operate as 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. AFI’s historical financial results have been reflected in AWI’s Consolidated Financial Statements as a discontinued operation for all periods presented. Separation costs for the three and six months ended June 30, 2016 were $3.9 million and $31.0 million, respectively. Separation costs for the three and six months ended June 30, 2015 were $5.1 million and $9.4 million, respectively. Separation costs for all periods primarily related to outside professional services and employee compensation and retention and severance accruals which were recorded within the Unallocated Corporate segment in conjunction with this initiative. Beginning in the second quarter of 2016, AFI’s historical financial results for periods prior to April 1, 2016 are reflected in our Condensed Consolidated Financial Statements as a discontinued operation. See Note 3 for additional information. 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, 2015. 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, 2015. In the opinion of management, all adjustments of a normal recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the second quarter and first six months of 2016 and 2015 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in 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. Certain amounts in the prior year’s Condensed Consolidated Financial Statements have been recast to conform to the 2016 presentation. Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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,” In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” In April 2015, the FASB issued ASU 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement,” Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” “Revenue from Contracts with Customers: Deferral of the Effective Date” “Principal versus Agent Considerations (Reporting Gross versus Net),” “Identifying Performance Obligations and Licensing” In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” In February 2016, the FASB issued ASU 2016-02, “Leases,” In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” |
Segment Results
Segment Results | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Results | NOTE 2. SEGMENT RESULTS Effective April 1, 2016 and in connection with our separation of AFI, our former Resilient Flooring and Wood Flooring segments have been excluded from our results of continuing operations. In addition, effective April 1, 2016, we disaggregated our former Building Products operating segment into the following three distinct geographical segments: Americas, Europe, Middle East and Africa (“EMEA”) and Pacific Rim. Each of our geographical segments produces suspended fiber and metal ceilings for use in commercial and institutional settings in addition to sourcing complimentary ceiling products. Residential ceiling products are sold in the Americas primarily to wholesalers and retailers (including large home centers). Each segment also includes the results of our Worthington Armstrong Venture (“WAVE”) joint venture with Worthington Industries, Inc., which manufactures suspension system (grid) products that are invoiced by both us and WAVE. Effective April 1, 2016, we reclassified the majority of the assets and liabilities formally reported in our Unallocated Corporate segment to our Americas segment. The assets and liabilities reclassified to our Americas segment most notably included the Armstrong trade name intangible asset, property, plant and equipment comprised primarily of Corporate campus facilities, the cash surrender value of life insurance supporting deferred compensation liabilities, income tax asset and liabilities, and pension and postretirement assets and liabilities. Balance sheet items classified as Unallocated Corporate for all periods presented primarily include cash and cash equivalents and outstanding borrowings under our senior credit facilities. Segment results below have been restated for all periods presented as a result of the disaggregation of our former Building Products segment and the reclassification of Unallocated Corporate assets. These revisions did not impact any previously reported consolidated revenues, gross profit, results of continuing operations, asset or liability balances. Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales to external customers Americas $ 214.8 $ 202.7 $ 414.9 $ 394.0 EMEA 65.6 68.6 125.2 139.1 Pacific Rim 33.9 34.8 61.6 65.0 Total net sales to external customers $ 314.3 $ 306.1 $ 601.7 $ 598.1 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Segment operating income (loss) Americas $ 64.3 $ 71.9 $ 120.4 $ 136.3 EMEA (5.3 ) (6.2 ) (9.3 ) (8.3 ) Pacific Rim (2.1 ) (1.5 ) (3.4 ) (4.0 ) Unallocated Corporate (5.2 ) (23.0 ) (34.4 ) (48.7 ) Total consolidated operating income $ 51.7 $ 41.2 $ 73.3 $ 75.3 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Total consolidated operating income $ 51.7 $ 41.2 $ 73.3 $ 75.3 Interest expense 12.5 11.4 34.4 22.6 Other non-operating expense - 0.2 - 2.7 Other non-operating (income) (2.1 ) (3.4 ) (7.3 ) (5.4 ) Earnings from continuing operations before income taxes $ 41.3 $ 33.0 $ 46.2 $ 55.4 June 30, 2016 December 31, 2015 Segment assets Americas $ 1,155.2 $ 1,137.4 EMEA 294.7 283.3 Pacific Rim 144.6 154.5 Unallocated Corporate 102.5 237.8 Total consolidated assets $ 1,697.0 $ 1,813.0 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. Effective January 1, 2016, in anticipation of the April 1, 2016 AFI separation, the majority of our historical corporate support functions, representing costs of approximately $16.0 million and $36.0 million for the three and six months ended June 30, 2016, respectively, were incorporated into our Americas segment. As a result, unallocated corporate support expenses have decreased significantly during the three and six months ended June 30, 2016 in comparison to the same periods in 2015. For the three and six months ended June 30, 2016 and 2015, Unallocated Corporate segment operating (loss) was comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Corporate expenses $ (1.3 ) $ (17.9 ) $ (3.4 ) $ (39.3 ) Separation costs (3.9 ) (5.1 ) (31.0 ) (9.4 ) Total Unallocated Corporate segment operating (loss) $ (5.2 ) $ (23.0 ) $ (34.4 ) $ (48.7 ) |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS Separation and Distribution of AFI On April 1, 2016, in connection with the separation and distribution of AFI, we entered into several agreements with AFI that, together with a plan of division, provide for the separation and allocation between AWI and AFI of the flooring assets, employees, liabilities and obligations of AWI and its subsidiaries attributable to periods prior to, at and after AFI’s separation from AWI, and govern the relationship between AWI and AFI subsequent to the completion of the separation and distribution. These agreements include a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a Trademark License Agreement, a Transition Trademark Agreement and a Campus Lease Agreement. Under the Transition Services Agreement, AWI and AFI will provide various services to each other during a transition period expiring no later than December 31, 2017, including information technology, accounts payable, payroll, and other financial functions and administrative services. We do not anticipate the Transition Service Agreement will need to be extended beyond December 31, 2017. The Tax Matters Agreement generally governs AWI’s and AFI’s respective rights, responsibilities and obligations after the separation and distribution with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and other matters regarding taxes for any tax period ending on or before the distribution date, as well as tax periods beginning after the distribution date. In addition, the Tax Matters Agreement provides that AFI is liable for taxes incurred by AWI that may arise if AFI takes, or fails to take, certain actions that may result in the separation, the distribution or certain related transactions failing to qualify as tax-free for U.S. federal income tax purposes. Upon distribution, AWI received an opinion from its tax counsel that the separation and distribution qualified as a tax-free transaction for AWI and its shareholders. The Employee Matters Agreement governs certain compensation and employee benefit obligations with respect to the current and former employees and non-employee directors of AWI and AFI. Pursuant to this agreement and in connection with the distribution, AWI transferred assets and liabilities from the AWI defined benefit pension and postretirement plans to AFI that relate to active AFI employees and certain former AFI employees to mirror plans established by AFI. Based on the analyses provided by our actuaries, approximately $30.0 million and approximately $90.0 million of defined benefit pension and postretirement benefit plan net liabilities under AWI’s plans as of April 1, 2016, respectively, transferred to mirror plans established by AFI. Pursuant to the Trademark License Agreement, AWI provided AFI with a perpetual, royalty-free license to utilize the “Armstrong” trade name and logo. Pursuant to the Transition Trademark License Agreement, AFI provided us with a five year royalty-free license to utilize the “Inspiring Great Spaces” tagline, logo and related color scheme. Under the Campus Lease Agreement, certain portions of the AWI headquarters are being leased to AFI to use as its corporate headquarters for an initial term of five years, subject to certain renewal rights. The following is a summary of the results of operations related to AFI, our former Resilient Flooring and Wood Flooring segments, which are presented as discontinued operations. Three Months Ended Six Months Ended June 30, June 30, 2015 2016 2015 Net sales $ 326.6 $ 284.4 $ 586.0 Cost of goods sold 260.2 237.2 479.2 Gross profit 66.4 47.2 106.8 Selling, general and administrative expenses 44.5 50.5 83.2 Operating income (loss) 21.9 (3.3 ) 23.6 Other non-operating (income) expense (0.2 ) 1.1 - Earnings (loss) from discontinued operations before income taxes 22.1 (4.4 ) 23.6 Income tax expense 7.3 0.1 10.7 Earnings (loss) from discontinued operations $ 14.8 $ (4.5 ) $ 12.9 The following is a summary of the carrying amount of the major classes of assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2015 related to AFI. December 31, 2015 Assets Current assets: Cash and cash equivalents $ 35.5 Accounts and notes receivable, net 70.0 Inventories, net 242.8 Deferred income taxes 5.8 Other current assets 27.2 Total current assets discontinued operations 381.3 Property, plant, and equipment, less accumulated depreciation and amortization 448.2 Intangible assets, net 42.5 Deferred income taxes 1.3 Other non-current assets 7.3 Total non-current assets of discontinued operations 499.3 Total assets of discontinued operations $ 880.6 Liabilities Current liabilities: Accounts payable and accrued expenses $ 149.3 Deferred income taxes 0.3 Total current liabilities 149.6 Long-term debt, less current installments 14.7 Postretirement benefit liabilities 85.2 Pension benefit liabilities 45.5 Other long-term liabilities 3.7 Total non-current liabilities of discontinued operations 149.1 Total liabilities of discontinued operations $ 298.7 In connection with the separation and distribution of AFI, on April 1, 2016 we received a $50.0 million dividend from AFI. In addition, $56.8 million of accumulated other comprehensive losses, net of tax, were transferred to AFI, consisting of amounts related to transferred pension and postretirement liabilities, derivatives liabilities and a cumulative translation adjustment. The impact of these items, in addition to the net effect of all assets and liabilities transferred to AFI upon separation resulted in a $641.9 million reduction to additional paid-in capital as of June 30, 2016. The following is a summary of total depreciation and amortization and capital expenditures related to AFI which are presented as discontinued operations and included as components of operating and investing cash flows on our consolidated statements of cash flows: Six Months Ended June 30, 2016 2015 Depreciation and amortization $ 11.4 $ 19.1 Purchases of property, plant and equipment (8.4 ) (26.0 ) 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 DLW insolvency filing in December 2014 resulted in our disposal and presentation of DLW for all historical periods as a discontinued operation. However, the insolvency filing did not meet the U.S. tax criteria to be considered disposed of until the first quarter of 2015. In determining the U.S. tax impact of the disposition, the liabilities, including an unfunded pension liability of approximately $115.0 million, were considered proceeds. However, pension deductions for tax purposes result only when the benefit payments are made. Accordingly, a deferred tax asset and non-cash income tax benefit of $43.4 million were recorded in the first quarter of 2015 within discontinued operations for the tax benefit of the future pension deductions. 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 $12.0 million as of June 30, 2016. 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gain (loss) on disposal of discontinued business before income tax $ 0.2 $ (0.3 ) $ 0.1 $ (0.9 ) Income tax (benefit) (0.1 ) - (1.9 ) (43.4 ) Net gain (loss) on disposal of discontinued business $ 0.3 $ (0.3 ) $ 2.0 $ 42.5 |
Accounts and Notes Receivable
Accounts and Notes Receivable | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | NOTE 4. ACCOUNTS AND NOTES RECEIVABLE June 30, 2016 December 31, 2015 Customer receivables $ 130.9 $ 114.0 Customer notes 0.6 0.7 Miscellaneous receivables 5.0 6.4 Less allowance for warranties, discounts and losses (9.6 ) (6.8 ) Accounts and notes receivable, net $ 126.9 $ 114.3 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 | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 5. INVENTORIES June 30, 2016 December 31, 2015 Finished goods $ 75.3 $ 74.2 Goods in process 3.5 4.2 Raw materials and supplies 33.8 32.0 Less LIFO and other reserves (8.4 ) (9.0 ) Total inventories, net $ 104.2 $ 101.4 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | NOTE 6. OTHER CURRENT ASSETS June 30, 2016 December 31, 2015 Prepaid expenses $ 15.8 $ 18.2 Fair value of derivative assets 1.1 3.4 Other 3.4 12.1 Total other current assets $ 20.3 $ 33.7 |
Equity Investment
Equity Investment | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Investment | NOTE 7. EQUITY INVESTMENT Investment in joint venture as of June 30, 2016 reflected our 50% equity interest in WAVE. Condensed income statement data for WAVE is summarized below: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales $ 104.0 $ 94.1 $ 197.9 $ 180.7 Gross profit 56.6 46.7 106.9 87.5 Net earnings 43.0 35.6 82.2 66.1 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 8. INTANGIBLE ASSETS The following table details amounts related to our intangible assets as of June 30, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Customer relationships 20 years $ 165.4 $ 80.8 $ 165.4 $ 76.7 Developed technology 15 years 82.6 52.6 82.2 49.9 Other Various 14.0 2.0 14.8 1.9 Total $ 262.0 $ 135.4 $ 262.4 $ 128.5 Non-amortizing intangible assets Trademarks and brand names Indefinite 314.1 313.3 Total intangible assets $ 576.1 $ 575.7 Six Months Ended June 30, 2016 2015 Amortization expense $ 7.0 $ 7.1 |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | NOTE 9. OTHER NON-CURRENT ASSETS June 30, 2016 December 31, 2015 Cash surrender value of Company owned life insurance policies $ 54.1 $ 51.6 Investment in deferred compensation plans 2.5 1.6 Other 6.7 3.8 Total other non-current assets $ 63.3 $ 57.0 |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable And Accrued Expenses | NOTE 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES June 30, 2016 December 31, 2015 Payables, trade and other $ 118.6 $ 127.5 Employment costs 20.8 41.8 Current portion of pension and postretirement liabilities 14.2 14.3 Contingent liability related to discontinued operations 12.0 12.1 Other 36.6 35.4 Total accounts payable and accrued expenses $ 202.2 $ 231.1 |
Severance and Related Costs
Severance and Related Costs | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Severance and Related Costs | NOTE 11. SEVERANCE AND RELATED COSTS During the first quarter of 2016, we recorded $2.4 million in Unallocated Corporate for severance and related costs as a result of our initiative to separate our flooring business from our ceiling business. These costs, along with costs incurred in the fourth quarter of 2015, reflect approximately 30 position eliminations (including our former Chief Executive Officer) and are reflected within Separation costs on the statement of earnings. In response to China market conditions, during the fourth quarter of 2015 we recorded $2.0 million in cost of goods sold and $0.9 million in SG&A for severance and related costs related to the idling one of our plants in China effective during the fourth quarter of 2016. During the second quarter of 2016, we recorded an additional $3.0 million in cost of goods sold for severance and related costs related to the plant idling. |
Income Tax Expense
Income Tax Expense | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | NOTE 12. INCOME TAX EXPENSE Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Earnings from continuing operations before income taxes $ 41.3 $ 33.0 $ 46.2 $ 55.4 Income tax expense 24.7 17.9 36.7 34.6 Effective tax rate 59.8 % 54.2 % 79.4 % 62.5 % The effective tax rate for the second quarter of 2016 and the first six months of 2016 was higher than the comparable periods of 2015 primarily due to negative tax impacts resulting from the separation of AFI, most notably the revaluation of state deferred tax assets and liabilities and, for the first six months of 2016, an increase in non-deductible costs resulting from the separation. We do not expect to record any material changes during 2016 to unrecognized tax benefits that were claimed on tax returns covering tax years ending on or before December 31, 2015. As of June 30, 2015, we consider foreign unremitted earnings to be permanently reinvested. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 13. DEBT On April 1, 2016, we refinanced our $1,275.0 million senior credit facility, utilizing a $50.0 million cash dividend from AFI and cash on hand to pay down a portion of the debt outstanding. The $1,050.0 million new credit facility is composed of a $200.0 million revolving credit facility (with a $150.0 million sublimit for letters of credit), a $600.0 million Term Loan A and a $250.0 million Term Loan B. The terms of the credit facility resulted in a lower interest rate spread for both the revolving credit facility and Term Loan A (2.00% vs. 2.50%) and a higher spread for Term Loan B (3.25% vs. 2.50%). In addition, we lowered the interest rate floor on the Term Loan B from 1.00% to 0.75%. We also extended the maturity of both the revolving credit facility and Term Loan A from March 2018 to April 2021 and of Term Loan B from November 2020 to April 2023. In connection with the refinancing, we paid $9.3 million of bank, legal and other fees, of which $8.1 million were capitalized and recorded as a component of long-term debt and are being amortized into interest expense over the lives of the underlying loans. Additionally, we wrote off $1.1 million of unamortized debt financing costs, included as a component of interest expense, during the three months ended June 30, 2016 related to our previous credit facility. Finally, in connection with the refinancing, we executed new interest rate swaps. See Note 16 for additional details. In March 2016, we amended and decreased our $100.0 million Accounts Receivable Securitization Facility with the Bank of Nova Scotia to $40.0 million to reflect a lower anticipated receivables balance in connection with the separation of AFI, and we extended the maturity date to March 2019. As of June 30, 2016, there were no outstanding borrowings on the accounts receivable securitization facility. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 6 Months Ended |
Jun. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pensions and Other Benefit Programs | NOTE 14. PENSIONS AND OTHER BENEFIT PROGRAMS Following are the components of net periodic benefit costs: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 U.S. defined-benefit plans: Pension benefits Service cost of benefits earned during the period $ 2.2 $ 2.5 $ 4.4 $ 5.0 Interest cost on projected benefit obligation 16.5 12.6 33.0 25.2 Expected return on plan assets (26.2 ) (21.6 ) (52.4 ) (43.3 ) Amortization of prior service cost 0.4 0.3 0.8 0.5 Amortization of net actuarial loss 11.4 11.4 22.8 22.8 Net periodic pension cost $ 4.3 $ 5.2 $ 8.6 $ 10.2 Retiree health and life insurance benefits Service cost of benefits earned during the period $ 0.1 $ (0.2 ) $ 0.2 $ (0.4 ) Interest cost on projected benefit obligation 1.0 (1.4 ) 2.0 (2.8 ) Amortization of prior service credit (0.1 ) 0.1 (0.2 ) 0.2 Amortization of net actuarial gain (1.3 ) 1.4 (2.6 ) 3.0 Net periodic postretirement benefit (credit) $ (0.3 ) $ (0.1 ) $ (0.6 ) $ - Non-U.S. defined-benefit pension plans Service cost of benefits earned during the period $ 0.6 $ 0.6 $ 1.1 $ 1.1 Interest cost on projected benefit obligation 1.8 1.9 3.5 3.7 Expected return on plan assets (2.0 ) (1.9 ) (4.0 ) (3.8 ) Amortization of prior service cost - - - 0.1 Amortization of net actuarial loss 0.3 0.6 0.6 1.2 Net periodic pension cost $ 0.7 $ 1.2 $ 1.2 $ 2.3 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | NOTE 15. FINANCIAL INSTRUMENTS We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments are as follows: June 30, 2016 December 31, 2015 Carrying amount Estimated fair value Carrying amount Estimated fair value Assets (Liabilities), net: Total long-term debt, including current portion $ (873.8 ) $ (870.6 ) $ (988.3 ) $ (989.4 ) Foreign currency contracts 0.8 0.8 3.3 3.3 Natural gas contracts 0.3 0.3 (0.8 ) (0.8 ) Interest rate swap contracts (7.6 ) (7.6 ) (10.6 ) (10.6 ) 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 measured at fair value on a recurring basis and reported on the consolidated balance sheets is summarized below: June 30, 2016 December 31, 2015 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: Foreign currency contracts $ 0.8 - $ 3.3 - Natural gas contracts - $ 0.3 - $ (0.8 ) Interest rate swap contracts - (7.6 ) - (10.6 ) We do not have any financial assets or liabilities that are valued using Level 3 (unobservable) inputs. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 16. 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. As of June 30, 2016 and December 31, 2015, the notional amount of these hedges was $2.9 million and $9.2 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 three and six months ended June 30, 2016 and 2015. 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. Our major foreign currency exposures as of June 30, 2016, based on operating profits by currency, are to the Russian ruble, Canadian dollar and the British pound. 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 $44.0 million and $38.4 million as of June 30, 2016 and December 31, 2015, 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 three and six months ended June 30, 2016 and 2015. 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 $6.1 million at December 31, 2015. We did not have any open hedges related to intercompany loans and dividends as of June 30, 2016. 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 swap as of June 30, 2016: Trade Date Notional Amount Interest Rate Paid Coverage Period Risk Coverage April 16, 2013 $ 250.0 1.398 % November 2015 to March 2018 Term Loan A April 1, 2016 $ 200.0 1.231 % April 2016 to March 2021 Term Loan A April 1, 2016 $ 100.0 1.756 % April 2016 to March 2023 Term Loan B In connection with the refinancing of our credit facilities, $450.0 million of notional amount Term Loan B swaps with a trade date of March 27, 2012 were settled and $10.7 million of losses recorded as a component of accumulated other comprehensive income were reclassified to interest expense during the three months ended March 31, 2016, with the cash payment for the settlement of this swap occurring during the second quarter of 2016. Under the terms of the Term Loan A swap with trade dates of April 16, 2013 and April 1, 2016 we receive 3-month LIBOR and pay a fixed rate over the hedged period. Under the terms of our Term Loan B swap with a trade date of April 1, 2016, we receive the greater of 3-month LIBOR or a 0.75% LIBOR Floor and pay a fixed rate over the hedged period. These swaps are designated as a cash flow hedges against changes in LIBOR for a portion of our variable rate debt. 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 mark-to-market gains or losses on ineffective portion of hedges are recognized in interest expense. There was no earnings impact of the ineffective portion of these hedges for the three and six months ended June 30, 2016 and 2015. See Note 13 for additional details related to our April 1, 2016 credit facility refinancing. Financial Statement Impacts The following tables detail amounts related to our derivatives as of June 30, 2016 and December 31, 2015. We had no derivative liabilities not designated as hedging instruments as of June 30, 2016 or December 31, 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 June 30, 2016 December 31, 2015 Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives designated as hedging instruments Natural gas commodity contracts Other current assets $ 0.3 $ - Accounts payable and accrued expenses $ - $ 0.8 Foreign exchange contracts Other current assets 0.8 3.4 Accounts payable and accrued expenses 0.2 0.1 Foreign exchange contracts Other non-current assets 0.2 - Other long-term liabilities - - Interest rate swap contracts Other non-current assets - - Other long-term liabilities 7.6 10.6 Total derivatives designated as hedging instruments $ 1.3 $ 3.4 $ 7.8 $ 11.5 Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) Location of (Loss) Gain AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, 2016 2015 2016 2015 2016 2015 Derivatives in cash flow hedging relationships Natural gas commodity contracts $ 0.3 $ (1.6 ) Cost of goods sold $ 0.5 $ (1.1 ) $ 1.3 $ (2.6 ) Foreign exchange contracts – purchases (0.2 ) 0.9 Cost of goods sold (0.1 ) 0.1 (0.5 ) 0.2 Foreign exchange contracts – sales 0.6 4.0 Net sales (0.3 ) 1.7 (2.1 ) 4.0 Interest rate swap contracts (7.6 ) (11.9 ) Interest expense - - 10.7 - Total $ (6.9 ) $ (8.6 ) $ 0.1 $ 0.7 $ 9.4 $ 1.6 As of June 30, 2016 the amount of existing gains in AOCI expected to be recognized in earnings over the next twelve months is $0.9 million. There was no pre-tax gain or loss recognized in income for derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2016 or 2015. |
Product Warranties
Product Warranties | 6 Months Ended |
Jun. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | NOTE 17. 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 six months ended June 30, 2016 and 2015: 2016 2015 Balance at January 1, $ 0.4 $ 0.2 Reductions for payments (3.5 ) (0.7 ) Current year warranty accruals 5.8 0.7 Balance at June 30, $ 2.7 $ 0.2 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | NOTE 18. OTHER LONG-TERM LIABILITIES June 30, 2016 December 31, 2015 Long-term deferred compensation arrangements $ 17.7 $ 18.7 Long-term portion of derivative liabilities 7.6 10.6 U.S. workers' compensation 1.6 1.1 Postemployment benefit liabilities 2.3 2.0 Environmental liabilities 3.5 6.0 Other 3.9 4.9 Total other long-term liabilities $ 36.6 $ 43.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) | NOTE 19. ACCUMULATED OTHER COMPREHENSIVE (LOSS) Foreign Currency Translation Adjustments (1) Derivative (Loss) Gain (1) Pension and Postretirement Adjustments (1) Total Accumulated Other Comprehensive (Loss) (1) Balance, December 31, 2015 $ (33.8 ) $ (3.3 ) $ (450.3 ) $ (487.4 ) Separation of AFI, net of tax (benefit) of $-, $-, ($37.8), and ($37.8) (4.6 ) (0.4 ) 61.8 56.8 Other comprehensive (loss) income before reclassifications, net of tax expense of $ -, $3.9, $0.2, and $4.1 (11.8 ) (6.6 ) 3.1 (15.3 ) Amounts reclassified from accumulated other comprehensive (loss) - 6.1 13.9 20.0 Net current period other comprehensive (loss) income (11.8 ) (0.5 ) 17.0 4.7 Balance at June 30, 2016 $ (50.2 ) $ (4.2 ) $ (371.5 ) $ (425.9 ) 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 (benefit) of $ -, $0.4, ($3.0), and ($2.6) (7.9 ) (0.1 ) 3.0 (5.0 ) Amounts reclassified from accumulated other comprehensive (loss) - (1.0 ) 18.1 17.1 Net current period other comprehensive (loss) income (7.9 ) (1.1 ) 21.1 12.1 Balance at June 30, 2015 $ (16.2 ) $ (5.1 ) $ (462.1 ) $ (483.4 ) (1) Amounts are net of tax Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Condensed Consolidated Statement of Earnings and Comprehensive Income Six Months Ended June 30, 2016 2015 Derivative Adjustments: Natural gas commodity contracts $ 1.3 $ 2.6 Cost of goods sold Foreign exchange contracts - purchases (0.5 ) (0.2 ) Cost of goods sold Foreign exchange contracts - sales (2.1 ) (4.0 ) Net sales Interest rate swap contracts 10.7 - Interest expense Total (loss) income before tax 9.4 (1.6 ) Tax impact (3.3 ) 0.6 Income tax expense Total income (loss), net of tax 6.1 (1.0 ) Pension and Postretirement Adjustments: Prior service cost amortization 0.3 0.4 Cost of goods sold Prior service cost amortization 0.3 0.4 SG&A expense Amortization of net actuarial loss 11.0 14.2 Cost of goods sold Amortization of net actuarial loss 9.8 12.8 SG&A expense Total expense before tax 21.4 27.8 Tax impact (7.5 ) (9.7 ) Income tax expense Total expense, net of tax 13.9 18.1 Total reclassifications for the period $ 20.0 $ 17.1 |
Litigation and Related Matters
Litigation and Related Matters | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Related Matters | NOTE 20. 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, including in respect of the St. Helens, OR site, the Macon, GA site and the Elizabeth City, NC site, each of which is summarized below. These efforts include two active and independent litigation matters against legacy primary and excess policy insurance carriers for recovery of fees and costs incurred by us in connection with our investigation and remediation activities for such sites. These proceedings are currently in early stages and we are unable to predict the outcome of these matters or the timing of any recoveries, whether through settlement or otherwise. 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 October 2006 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 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 certain 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. Additional investigative or remedial action required by ODEQ could result in additional costs greater than the amounts currently estimated. We believe that our ongoing work with ODEQ and Kaiser may enable us to reasonably estimate costs in 2017, and those costs may be material. As discussed above, we are currently unable to predict the outcome or the timing of our insurance recovery proceedings. Accordingly, additional estimated costs for this matter may be incurred without regard for, and prior to, the resolution of our insurance recovery proceedings. 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, portions of Rocky Creek, and certain tributaries leading to 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 commenced in the third quarter of 2015. This work was completed early in the second quarter of 2016. Our estimate of future liability includes costs for final report preparation and monitoring 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 Armstrong’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. We 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. We anticipate that the EPA will require significant investigative work for the Remaining Site and that we may ultimately incur costs in remediating any contamination discovered during the RI/FS. The current estimate of future liability at this site includes our estimated share of the costs of the investigative work that, at this time, we anticipate the EPA will require the PRP team to perform. We are unable to reasonably estimate AWI’s final share of the costs or the total costs associated with the investigation work or any resulting remediation therefrom, although such amounts may be material. 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, Triangle Pacific and CBS entered into an Administrative Order on Consent to conduct 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. In January 2014, we submitted the draft Remedial Investigation and Risk Assessment reports and conducted supplemental investigative work based upon agency comments to those reports. The supplemental reports were submitted to the agency in January 2015; in July 2015, the agency issued comments on those reports. We responded to the comments in August 2015 and have heard nothing from the agency since. 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 as of June 30, 2016 and $6.0 million as of December 31, 2015 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 as of June 30, 2016 or December 31, 2015. Actual costs to be incurred at identified sites may vary 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. 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 business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. From time to time, for example, we may be a party to litigation matters that involve product liability, tort liability and other claims under various 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. Such allegations may involve multiple defendants and relate to legacy products that we and other defendants purportedly manufactured or sold. We believe that any current claims are 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. When applicable and appropriate, we will pursue coverage and recoveries under those policies, but are unable to predict the outcome of those demands. While complete assurance cannot be given to the outcome of these proceedings, we do not believe that any current claims, 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 | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 21. 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 month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Earnings from continuing operations $ 16.6 $ 15.1 $ 9.5 $ 20.8 Earnings allocated to participating non-vested share awards (0.1 ) (0.2 ) - (0.2 ) Earnings from continuing operations attributable to common shares $ 16.5 $ 14.9 $ 9.5 $ 20.6 The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the three and six months ended June 30, 2016 and 2015 (shares in millions): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic shares outstanding 55.6 55.5 55.6 55.4 Dilutive effect of common stock equivalents 0.4 0.3 0.3 0.4 Diluted shares outstanding 56.0 55.8 55.9 55.8 Anti-dilutive stock options excluded from the computation of diluted EPS for the three and six months ended June 30, 2016 were 478,428 and 708,010, respectively. Anti-dilutive stock options excluded from the computation of diluted EPS for the three and six months ended June 30, 2015 were 8,175 and 142,250, respectively. |
Business and Basis of Present29
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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,” In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” In April 2015, the FASB issued ASU 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement,” Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” “Revenue from Contracts with Customers: Deferral of the Effective Date” “Principal versus Agent Considerations (Reporting Gross versus Net),” “Identifying Performance Obligations and Licensing” In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” In February 2016, the FASB issued ASU 2016-02, “Leases,” In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” |
Segment Results (Tables)
Segment Results (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales to External Customers | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales to external customers Americas $ 214.8 $ 202.7 $ 414.9 $ 394.0 EMEA 65.6 68.6 125.2 139.1 Pacific Rim 33.9 34.8 61.6 65.0 Total net sales to external customers $ 314.3 $ 306.1 $ 601.7 $ 598.1 |
Schedule of Segment Operating Income (Loss) | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Segment operating income (loss) Americas $ 64.3 $ 71.9 $ 120.4 $ 136.3 EMEA (5.3 ) (6.2 ) (9.3 ) (8.3 ) Pacific Rim (2.1 ) (1.5 ) (3.4 ) (4.0 ) Unallocated Corporate (5.2 ) (23.0 ) (34.4 ) (48.7 ) Total consolidated operating income $ 51.7 $ 41.2 $ 73.3 $ 75.3 |
Reconciliation of Total Consolidated Operating Income to Earnings Before Income Taxes | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Total consolidated operating income $ 51.7 $ 41.2 $ 73.3 $ 75.3 Interest expense 12.5 11.4 34.4 22.6 Other non-operating expense - 0.2 - 2.7 Other non-operating (income) (2.1 ) (3.4 ) (7.3 ) (5.4 ) Earnings from continuing operations before income taxes $ 41.3 $ 33.0 $ 46.2 $ 55.4 |
Reconciliation of Total Segment Assets to Total Consolidated Assets | June 30, 2016 December 31, 2015 Segment assets Americas $ 1,155.2 $ 1,137.4 EMEA 294.7 283.3 Pacific Rim 144.6 154.5 Unallocated Corporate 102.5 237.8 Total consolidated assets $ 1,697.0 $ 1,813.0 |
Reconciliation of Unallocated Corporate Segment Operating Loss | For the three and six months ended June 30, 2016 and 2015, Unallocated Corporate segment operating (loss) was comprised of the following Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Corporate expenses $ (1.3 ) $ (17.9 ) $ (3.4 ) $ (39.3 ) Separation costs (3.9 ) (5.1 ) (31.0 ) (9.4 ) Total Unallocated Corporate segment operating (loss) $ (5.2 ) $ (23.0 ) $ (34.4 ) $ (48.7 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Abstract] | |
Summary of Results of Operations Related to AFI | Three Months Ended Six Months Ended June 30, June 30, 2015 2016 2015 Net sales $ 326.6 $ 284.4 $ 586.0 Cost of goods sold 260.2 237.2 479.2 Gross profit 66.4 47.2 106.8 Selling, general and administrative expenses 44.5 50.5 83.2 Operating income (loss) 21.9 (3.3 ) 23.6 Other non-operating (income) expense (0.2 ) 1.1 - Earnings (loss) from discontinued operations before income taxes 22.1 (4.4 ) 23.6 Income tax expense 7.3 0.1 10.7 Earnings (loss) from discontinued operations $ 14.8 $ (4.5 ) $ 12.9 |
Summary of Carrying Amount of Major Classes of Assets and Liabilities Related to AFI | December 31, 2015 Assets Current assets: Cash and cash equivalents $ 35.5 Accounts and notes receivable, net 70.0 Inventories, net 242.8 Deferred income taxes 5.8 Other current assets 27.2 Total current assets discontinued operations 381.3 Property, plant, and equipment, less accumulated depreciation and amortization 448.2 Intangible assets, net 42.5 Deferred income taxes 1.3 Other non-current assets 7.3 Total non-current assets of discontinued operations 499.3 Total assets of discontinued operations $ 880.6 Liabilities Current liabilities: Accounts payable and accrued expenses $ 149.3 Deferred income taxes 0.3 Total current liabilities 149.6 Long-term debt, less current installments 14.7 Postretirement benefit liabilities 85.2 Pension benefit liabilities 45.5 Other long-term liabilities 3.7 Total non-current liabilities of discontinued operations 149.1 Total liabilities of discontinued operations $ 298.7 |
Summary of Total Depreciation and Amortization and Capital Expenditures Related to AFI | Six Months Ended June 30, 2016 2015 Depreciation and amortization $ 11.4 $ 19.1 Purchases of property, plant and equipment (8.4 ) (26.0 ) |
Summary of Results of Discontinued Operations | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gain (loss) on disposal of discontinued business before income tax $ 0.2 $ (0.3 ) $ 0.1 $ (0.9 ) Income tax (benefit) (0.1 ) - (1.9 ) (43.4 ) Net gain (loss) on disposal of discontinued business $ 0.3 $ (0.3 ) $ 2.0 $ 42.5 |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts and Notes Receivable | June 30, 2016 December 31, 2015 Customer receivables $ 130.9 $ 114.0 Customer notes 0.6 0.7 Miscellaneous receivables 5.0 6.4 Less allowance for warranties, discounts and losses (9.6 ) (6.8 ) Accounts and notes receivable, net $ 126.9 $ 114.3 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, 2016 December 31, 2015 Finished goods $ 75.3 $ 74.2 Goods in process 3.5 4.2 Raw materials and supplies 33.8 32.0 Less LIFO and other reserves (8.4 ) (9.0 ) Total inventories, net $ 104.2 $ 101.4 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | June 30, 2016 December 31, 2015 Prepaid expenses $ 15.8 $ 18.2 Fair value of derivative assets 1.1 3.4 Other 3.4 12.1 Total other current assets $ 20.3 $ 33.7 |
Equity Investment (Tables)
Equity Investment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Investment in Joint Venture, Income Statement Data | Investment in joint venture as of June 30, 2016 reflected our 50% equity interest in WAVE. Condensed income statement data for WAVE is summarized below: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales $ 104.0 $ 94.1 $ 197.9 $ 180.7 Gross profit 56.6 46.7 106.9 87.5 Net earnings 43.0 35.6 82.2 66.1 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table details amounts related to our intangible assets as of June 30, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Customer relationships 20 years $ 165.4 $ 80.8 $ 165.4 $ 76.7 Developed technology 15 years 82.6 52.6 82.2 49.9 Other Various 14.0 2.0 14.8 1.9 Total $ 262.0 $ 135.4 $ 262.4 $ 128.5 Non-amortizing intangible assets Trademarks and brand names Indefinite 314.1 313.3 Total intangible assets $ 576.1 $ 575.7 |
Schedule of Amortization Expense | Six Months Ended June 30, 2016 2015 Amortization expense $ 7.0 $ 7.1 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule Of Other Non-Current Assets | June 30, 2016 December 31, 2015 Cash surrender value of Company owned life insurance policies $ 54.1 $ 51.6 Investment in deferred compensation plans 2.5 1.6 Other 6.7 3.8 Total other non-current assets $ 63.3 $ 57.0 |
Accounts Payable And Accrued 38
Accounts Payable And Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule Of Accounts Payable And Accrued Expenses | June 30, 2016 December 31, 2015 Payables, trade and other $ 118.6 $ 127.5 Employment costs 20.8 41.8 Current portion of pension and postretirement liabilities 14.2 14.3 Contingent liability related to discontinued operations 12.0 12.1 Other 36.6 35.4 Total accounts payable and accrued expenses $ 202.2 $ 231.1 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Earnings from continuing operations before income taxes $ 41.3 $ 33.0 $ 46.2 $ 55.4 Income tax expense 24.7 17.9 36.7 34.6 Effective tax rate 59.8 % 54.2 % 79.4 % 62.5 % |
Pension and Other Benefit Pro40
Pension and Other Benefit Programs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Periodic Benefit Costs | Following are the components of net periodic benefit costs: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 U.S. defined-benefit plans: Pension benefits Service cost of benefits earned during the period $ 2.2 $ 2.5 $ 4.4 $ 5.0 Interest cost on projected benefit obligation 16.5 12.6 33.0 25.2 Expected return on plan assets (26.2 ) (21.6 ) (52.4 ) (43.3 ) Amortization of prior service cost 0.4 0.3 0.8 0.5 Amortization of net actuarial loss 11.4 11.4 22.8 22.8 Net periodic pension cost $ 4.3 $ 5.2 $ 8.6 $ 10.2 Retiree health and life insurance benefits Service cost of benefits earned during the period $ 0.1 $ (0.2 ) $ 0.2 $ (0.4 ) Interest cost on projected benefit obligation 1.0 (1.4 ) 2.0 (2.8 ) Amortization of prior service credit (0.1 ) 0.1 (0.2 ) 0.2 Amortization of net actuarial gain (1.3 ) 1.4 (2.6 ) 3.0 Net periodic postretirement benefit (credit) $ (0.3 ) $ (0.1 ) $ (0.6 ) $ - Non-U.S. defined-benefit pension plans Service cost of benefits earned during the period $ 0.6 $ 0.6 $ 1.1 $ 1.1 Interest cost on projected benefit obligation 1.8 1.9 3.5 3.7 Expected return on plan assets (2.0 ) (1.9 ) (4.0 ) (3.8 ) Amortization of prior service cost - - - 0.1 Amortization of net actuarial loss 0.3 0.6 0.6 1.2 Net periodic pension cost $ 0.7 $ 1.2 $ 1.2 $ 2.3 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Financial Instruments | The estimated fair values of our financial instruments are as follows: June 30, 2016 December 31, 2015 Carrying amount Estimated fair value Carrying amount Estimated fair value Assets (Liabilities), net: Total long-term debt, including current portion $ (873.8 ) $ (870.6 ) $ (988.3 ) $ (989.4 ) Foreign currency contracts 0.8 0.8 3.3 3.3 Natural gas contracts 0.3 0.3 (0.8 ) (0.8 ) Interest rate swap contracts (7.6 ) (7.6 ) (10.6 ) (10.6 ) |
Fair Value Measurement of Assets and Liabilities | The fair value measurement of assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets is summarized below: June 30, 2016 December 31, 2015 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: Foreign currency contracts $ 0.8 - $ 3.3 - Natural gas contracts - $ 0.3 - $ (0.8 ) Interest rate swap contracts - (7.6 ) - (10.6 ) |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swaps | Trade Date Notional Amount Interest Rate Paid Coverage Period Risk Coverage April 16, 2013 $ 250.0 1.398 % November 2015 to March 2018 Term Loan A April 1, 2016 $ 200.0 1.231 % April 2016 to March 2021 Term Loan A April 1, 2016 $ 100.0 1.756 % April 2016 to March 2023 Term Loan B |
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet | Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location June 30, 2016 December 31, 2015 Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives designated as hedging instruments Natural gas commodity contracts Other current assets $ 0.3 $ - Accounts payable and accrued expenses $ - $ 0.8 Foreign exchange contracts Other current assets 0.8 3.4 Accounts payable and accrued expenses 0.2 0.1 Foreign exchange contracts Other non-current assets 0.2 - Other long-term liabilities - - Interest rate swap contracts Other non-current assets - - Other long-term liabilities 7.6 10.6 Total derivatives designated as hedging instruments $ 1.3 $ 3.4 $ 7.8 $ 11.5 |
Summary of Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income | Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) Location of (Loss) Gain AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, 2016 2015 2016 2015 2016 2015 Derivatives in cash flow hedging relationships Natural gas commodity contracts $ 0.3 $ (1.6 ) Cost of goods sold $ 0.5 $ (1.1 ) $ 1.3 $ (2.6 ) Foreign exchange contracts – purchases (0.2 ) 0.9 Cost of goods sold (0.1 ) 0.1 (0.5 ) 0.2 Foreign exchange contracts – sales 0.6 4.0 Net sales (0.3 ) 1.7 (2.1 ) 4.0 Interest rate swap contracts (7.6 ) (11.9 ) Interest expense - - 10.7 - Total $ (6.9 ) $ (8.6 ) $ 0.1 $ 0.7 $ 9.4 $ 1.6 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Summary of Activity for the Accrual of Product Warranties | The following table summarizes the activity for the accrual of product warranties for the six months ended June 30, 2016 and 2015: 2016 2015 Balance at January 1, $ 0.4 $ 0.2 Reductions for payments (3.5 ) (0.7 ) Current year warranty accruals 5.8 0.7 Balance at June 30, $ 2.7 $ 0.2 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | June 30, 2016 December 31, 2015 Long-term deferred compensation arrangements $ 17.7 $ 18.7 Long-term portion of derivative liabilities 7.6 10.6 U.S. workers' compensation 1.6 1.1 Postemployment benefit liabilities 2.3 2.0 Environmental liabilities 3.5 6.0 Other 3.9 4.9 Total other long-term liabilities $ 36.6 $ 43.3 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [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, 2015 $ (33.8 ) $ (3.3 ) $ (450.3 ) $ (487.4 ) Separation of AFI, net of tax (benefit) of $-, $-, ($37.8), and ($37.8) (4.6 ) (0.4 ) 61.8 56.8 Other comprehensive (loss) income before reclassifications, net of tax expense of $ -, $3.9, $0.2, and $4.1 (11.8 ) (6.6 ) 3.1 (15.3 ) Amounts reclassified from accumulated other comprehensive (loss) - 6.1 13.9 20.0 Net current period other comprehensive (loss) income (11.8 ) (0.5 ) 17.0 4.7 Balance at June 30, 2016 $ (50.2 ) $ (4.2 ) $ (371.5 ) $ (425.9 ) 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 (benefit) of $ -, $0.4, ($3.0), and ($2.6) (7.9 ) (0.1 ) 3.0 (5.0 ) Amounts reclassified from accumulated other comprehensive (loss) - (1.0 ) 18.1 17.1 Net current period other comprehensive (loss) income (7.9 ) (1.1 ) 21.1 12.1 Balance at June 30, 2015 $ (16.2 ) $ (5.1 ) $ (462.1 ) $ (483.4 ) (1) Amounts are net of tax |
Reclassification out of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Condensed Consolidated Statement of Earnings and Comprehensive Income Six Months Ended June 30, 2016 2015 Derivative Adjustments: Natural gas commodity contracts $ 1.3 $ 2.6 Cost of goods sold Foreign exchange contracts - purchases (0.5 ) (0.2 ) Cost of goods sold Foreign exchange contracts - sales (2.1 ) (4.0 ) Net sales Interest rate swap contracts 10.7 - Interest expense Total (loss) income before tax 9.4 (1.6 ) Tax impact (3.3 ) 0.6 Income tax expense Total income (loss), net of tax 6.1 (1.0 ) Pension and Postretirement Adjustments: Prior service cost amortization 0.3 0.4 Cost of goods sold Prior service cost amortization 0.3 0.4 SG&A expense Amortization of net actuarial loss 11.0 14.2 Cost of goods sold Amortization of net actuarial loss 9.8 12.8 SG&A expense Total expense before tax 21.4 27.8 Tax impact (7.5 ) (9.7 ) Income tax expense Total expense, net of tax 13.9 18.1 Total reclassifications for the period $ 20.0 $ 17.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Earnings to Net Earnings Attributable to Common Shares Used in Basic and Diluted Calculation | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Earnings from continuing operations $ 16.6 $ 15.1 $ 9.5 $ 20.8 Earnings allocated to participating non-vested share awards (0.1 ) (0.2 ) - (0.2 ) Earnings from continuing operations attributable to common shares $ 16.5 $ 14.9 $ 9.5 $ 20.6 |
Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic shares outstanding 55.6 55.5 55.6 55.4 Dilutive effect of common stock equivalents 0.4 0.3 0.3 0.4 Diluted shares outstanding 56.0 55.8 55.9 55.8 |
Business and Basis of Present47
Business and Basis of Presentation (Narrative) (Details) $ in Millions | Apr. 02, 2016entity | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business And Basis Of Presentation [Line Items] | |||||||
Separation costs | $ 3.9 | $ 5.1 | $ 31 | $ 9.4 | |||
Common stock split ratio of AFI share to two AWI shares | 0.5 | ||||||
Number of independent publicly-traded companies from separation | entity | 2 | ||||||
ASU 2015-03 And 2015-15 [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Reduction to other non-current assets and decrease to long-term debt | $ 4.1 | $ 4.7 |
Segment Results (Narrative) (De
Segment Results (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ 55.8 | $ 61.6 | $ 109.5 | $ 125.9 |
Corporate Unallocated Expenses Recorded Within Other Americas Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ 16 | $ 36 | ||
Geographical Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 |
Segment Results (Schedule of Ne
Segment Results (Schedule of Net Sales to External Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | $ 314.3 | $ 306.1 | $ 601.7 | $ 598.1 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | 214.8 | 202.7 | 414.9 | 394 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | 65.6 | 68.6 | 125.2 | 139.1 |
Pacific Rim [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | $ 33.9 | $ 34.8 | $ 61.6 | $ 65 |
Segment Results (Schedule of Se
Segment Results (Schedule of Segment Operating Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated operating income | $ 51.7 | $ 41.2 | $ 73.3 | $ 75.3 |
Unallocated Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating income | (5.2) | (23) | (34.4) | (48.7) |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating income | 64.3 | 71.9 | 120.4 | 136.3 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating income | (5.3) | (6.2) | (9.3) | (8.3) |
Pacific Rim [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated operating income | $ (2.1) | $ (1.5) | $ (3.4) | $ (4) |
Segment Results (Reconciliation
Segment Results (Reconciliation of Total Consolidated Operating Income to Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Total consolidated operating income | $ 51.7 | $ 41.2 | $ 73.3 | $ 75.3 |
Interest expense | 12.5 | 11.4 | 34.4 | 22.6 |
Other non-operating expense | 0.2 | 2.7 | ||
Other non-operating (income) | (2.1) | (3.4) | (7.3) | (5.4) |
Earnings from continuing operations before income taxes | $ 41.3 | $ 33 | $ 46.2 | $ 55.4 |
Segment Results (Reconciliati52
Segment Results (Reconciliation of Total Segment Assets to Total Consolidated Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 1,697 | $ 1,813 |
Unallocated Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 102.5 | 237.8 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 1,155.2 | 1,137.4 |
EMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 294.7 | 283.3 |
Pacific Rim [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 144.6 | $ 154.5 |
Segment Results (Reconciliati53
Segment Results (Reconciliation of Unallocated Corporate Segment Operating Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ (55.8) | $ (61.6) | $ (109.5) | $ (125.9) |
Separation costs | (3.9) | (5.1) | (31) | (9.4) |
Operating income | 51.7 | 41.2 | 73.3 | 75.3 |
Unallocated Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expenses | (1.3) | (17.9) | (3.4) | (39.3) |
Separation costs | (3.9) | (5.1) | (31) | (9.4) |
Operating income | $ (5.2) | $ (23) | $ (34.4) | $ (48.7) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 11, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Initial term of campus lease agreement period | 5 years | ||||||
Accumulated other comprehensive losses, net of tax | $ 425.9 | $ 425.9 | $ 483.4 | $ 487.4 | $ 495.5 | ||
Pension liabilities, including an unfunded pension liability | 61.5 | 61.5 | $ 62.1 | ||||
Income tax (expense) benefit | 0.1 | 1.9 | 43.4 | ||||
DLW [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Pension liabilities, including an unfunded pension liability | $ 115 | ||||||
Income tax (expense) benefit | 0.1 | $ 43.4 | 1.9 | $ 43.4 | |||
Deconsolidation net liability | 12 | 12 | $ 12.9 | ||||
Assets removed from balance sheet | 151.9 | ||||||
Liabilities removed from balance sheet | $ 164.8 | ||||||
Transferring To AFI [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Pension benefit liabilities | 30 | 30 | |||||
Postretirement benefit liabilities | 90 | 90 | |||||
Dividends received | 50 | 50 | |||||
Accumulated other comprehensive losses, net of tax | 56.8 | 56.8 | |||||
Reduction in additional paid-in capital | $ 641.9 | $ 641.9 |
Discontinued Operations (Summar
Discontinued Operations (Summary of Results of Operations Related to AFI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ (0.1) | $ (1.9) | $ (43.4) | |
Earnings (loss) from discontinued operations | $ 0.3 | $ (0.3) | 2 | 42.5 |
AFI [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 326.6 | 284.4 | 586 | |
Cost of goods sold | 260.2 | 237.2 | 479.2 | |
Gross profit | 66.4 | 47.2 | 106.8 | |
Selling, general and administrative expenses | 44.5 | 50.5 | 83.2 | |
Operating income (loss) | 21.9 | (3.3) | 23.6 | |
Other non-operating (income) expense | (0.2) | 1.1 | ||
Earnings (loss) from discontinued operations before income taxes | 22.1 | (4.4) | 23.6 | |
Income tax expense | 7.3 | 0.1 | 10.7 | |
Earnings (loss) from discontinued operations | $ 14.8 | $ (4.5) | $ 12.9 |
Discontinued Operations (Summ56
Discontinued Operations (Summary of Carrying Amount of Major Classes of Assets and Liabilities Related to AFI) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Total current assets discontinued operations | $ 381.3 | |
Total non-current assets of discontinued operations | 499.3 | |
Total assets | $ 1,697 | 2,693.6 |
Current liabilities: | ||
Total current liabilities | 149.6 | |
Total non-current liabilities of discontinued operations | 149.1 | |
AFI [Member] | ||
Current assets: | ||
Cash and cash equivalents | 35.5 | |
Accounts and notes receivable, net | 70 | |
Inventories, net | 242.8 | |
Deferred income taxes | 5.8 | |
Other current assets | 27.2 | |
Total current assets discontinued operations | 381.3 | |
Property, plant, and equipment, less accumulated depreciation and amortization | 448.2 | |
Intangible assets, net | 42.5 | |
Deferred income taxes | 1.3 | |
Other non-current assets | 7.3 | |
Total non-current assets of discontinued operations | 499.3 | |
Total assets | 880.6 | |
Current liabilities: | ||
Accounts payable and accrued expenses | 149.3 | |
Deferred income taxes | 0.3 | |
Total current liabilities | 149.6 | |
Long-term debt, less current installments | 14.7 | |
Postretirement benefit liabilities | 85.2 | |
Pension benefit liabilities | 45.5 | |
Other long-term liabilities | 3.7 | |
Total non-current liabilities of discontinued operations | 149.1 | |
Total liabilities of discontinued operations | $ 298.7 |
Discontinued Operations (Summ57
Discontinued Operations (Summary of Total Depreciation and Amortization and Capital Expenditures Related to AFI) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Discontinued Operations [Abstract] | ||
Depreciation and amortization | $ 11.4 | $ 19.1 |
Purchases of property, plant and equipment | $ (8.4) | $ (26) |
Discontinued Operations (Summ58
Discontinued Operations (Summary of Results of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income tax expense | $ (0.1) | $ (1.9) | $ (43.4) | ||
Earnings (loss) from discontinued operations | 0.3 | $ (0.3) | 2 | 42.5 | |
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 | (0.3) | 0.1 | (0.9) | |
Income tax expense | (0.1) | $ (43.4) | (1.9) | (43.4) | |
Earnings (loss) from discontinued operations | $ 0.3 | $ (0.3) | $ 2 | $ 42.5 |
Accounts and Notes Receivable59
Accounts and Notes Receivable (Schedule of Accounts and Notes Receivable) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Customer receivables | $ 130.9 | $ 114 |
Customer notes | 0.6 | 0.7 |
Miscellaneous receivables | 5 | 6.4 |
Less allowance for warranties, discounts and losses | (9.6) | (6.8) |
Accounts and notes receivable, net | $ 126.9 | $ 114.3 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 75.3 | $ 74.2 |
Goods in process | 3.5 | 4.2 |
Raw materials and supplies | 33.8 | 32 |
Less LIFO and other reserves | (8.4) | (9) |
Total inventories, net | $ 104.2 | $ 101.4 |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 15.8 | $ 18.2 |
Fair value of derivative assets | 1.1 | 3.4 |
Other | 3.4 | 12.1 |
Total other current assets | $ 20.3 | $ 33.7 |
Equity Investment (Narrative) (
Equity Investment (Narrative) (Details) | Jun. 30, 2016 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | $ 104 | $ 94.1 | $ 197.9 | $ 180.7 |
Gross profit | 56.6 | 46.7 | 106.9 | 87.5 |
Net earnings | $ 43 | $ 35.6 | $ 82.2 | $ 66.1 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | $ 262 | $ 262.4 |
Amortizing intangible assets, Accumulated Amortization | 135.4 | 128.5 |
Total intangible assets | $ 576.1 | 575.7 |
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 | $ 314.1 | 313.3 |
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 | $ 80.8 | 76.7 |
Developed Technology [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Estimated Useful Life | 15 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 82.6 | 82.2 |
Amortizing intangible assets, Accumulated Amortization | $ 52.6 | 49.9 |
Other [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Estimated Useful Life | Various | |
Amortizing intangible assets, Gross Carrying Amount | $ 14 | 14.8 |
Amortizing intangible assets, Accumulated Amortization | $ 2 | $ 1.9 |
Intangible Assets (Schedule o65
Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 7 | $ 7.1 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Cash surrender value of Company owned life insurance policies | $ 54.1 | $ 51.6 |
Investment in deferred compensation plans | 2.5 | 1.6 |
Other | 6.7 | 3.8 |
Total other non-current assets | $ 63.3 | $ 57 |
Accounts Payable And Accrued 67
Accounts Payable And Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Payables, trade and other | $ 118.6 | $ 127.5 |
Employment costs | 20.8 | 41.8 |
Current portion of pension and postretirement liabilities | 14.2 | 14.3 |
Contingent liability related to discontinued operations | 12 | 12.1 |
Other | 36.6 | 35.4 |
Total accounts payable and accrued expenses | $ 202.2 | $ 231.1 |
Severance and Related Costs (Na
Severance and Related Costs (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016employee | |
Unallocated Corporate Segment [Member] | ||||
Severance and Related Costs [Line Items] | ||||
Severance and related costs | $ 2.4 | |||
Positions eliminated | employee | 30 | |||
China [Member] | Cost Of Goods Sold [Member] | ||||
Severance and Related Costs [Line Items] | ||||
Severance and related costs | $ 3 | $ 2 | ||
China [Member] | SG&A Expense [Member] | ||||
Severance and Related Costs [Line Items] | ||||
Severance and related costs | $ 0.9 |
Income Tax Expenses (Details)
Income Tax Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Earnings from continuing operations before income taxes | $ 41.3 | $ 33 | $ 46.2 | $ 55.4 |
Income tax expense | $ 24.7 | $ 17.9 | $ 36.7 | $ 34.6 |
Effective tax rate | 59.80% | 54.20% | 79.40% | 62.50% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Bank, legal and other fees | $ 9,300,000 | $ 9,300,000 | ||
Unamortized debt financing costs written off | 1,100,000 | |||
Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 600,000,000 | $ 600,000,000 | ||
Interest rate spread | 2.50% | 2.00% | ||
Maturity date | Mar. 1, 2018 | |||
Term Loan A [Member] | Extended Maturity [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Apr. 1, 2021 | |||
Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 250,000,000 | $ 250,000,000 | ||
Interest rate spread | 2.50% | 3.25% | ||
Floor interest rate | 1.00% | 0.75% | ||
Maturity date | Nov. 1, 2020 | |||
Term Loan B [Member] | Extended Maturity [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Apr. 1, 2023 | |||
Senior Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 1,275,000,000 | $ 1,275,000,000 | ||
New credit facility amount | 1,050,000,000 | $ 1,050,000,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 200,000,000 | 200,000,000 | ||
Cash dividend from AFI planned to reduce total debt outstanding | $ 50,000,000 | |||
Interest rate spread | 2.50% | 2.00% | ||
Maturity date | Mar. 1, 2018 | |||
Revolving Credit Facility [Member] | Extended Maturity [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Apr. 1, 2021 | |||
Revolving Credit Facility [Member] | Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity sublimit | 150,000,000 | $ 150,000,000 | ||
Amended Securitization Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 100,000,000 | $ 100,000,000 | ||
New credit facility amount | $ 40,000,000 | $ 40,000,000 | ||
Amended Securitization Facility [Member] | Extended Maturity [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Mar. 1, 2019 | |||
Securitization Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | 0 | 0 | ||
Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Fees capitalized and amortized into interest expense | $ 8,100,000 | $ 8,100,000 |
Pension and Other Benefit Pro71
Pension and Other Benefit Programs (Schedule of Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
U.S. Defined-Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | $ 2.2 | $ 2.5 | $ 4.4 | $ 5 |
Interest cost on projected benefit obligation | 16.5 | 12.6 | 33 | 25.2 |
Expected return on plan assets | (26.2) | (21.6) | (52.4) | (43.3) |
Amortization of prior service (credit) cost | 0.4 | 0.3 | 0.8 | 0.5 |
Amortization of net actuarial (gain) loss | 11.4 | 11.4 | 22.8 | 22.8 |
Net periodic pension\postretirement benefit (credit) cost | 4.3 | 5.2 | 8.6 | 10.2 |
Retiree Health And Life Insurance Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | 0.1 | (0.2) | 0.2 | (0.4) |
Interest cost on projected benefit obligation | 1 | (1.4) | 2 | (2.8) |
Amortization of prior service (credit) cost | (0.1) | 0.1 | (0.2) | 0.2 |
Amortization of net actuarial (gain) loss | (1.3) | 1.4 | (2.6) | 3 |
Net periodic pension\postretirement benefit (credit) cost | (0.3) | (0.1) | (0.6) | |
Non-U.S. Defined-Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost of benefits earned during the period | 0.6 | 0.6 | 1.1 | 1.1 |
Interest cost on projected benefit obligation | 1.8 | 1.9 | 3.5 | 3.7 |
Expected return on plan assets | (2) | (1.9) | (4) | (3.8) |
Amortization of prior service (credit) cost | 0.1 | |||
Amortization of net actuarial (gain) loss | 0.3 | 0.6 | 0.6 | 1.2 |
Net periodic pension\postretirement benefit (credit) cost | $ 0.7 | $ 1.2 | $ 1.2 | $ 2.3 |
Pension And Other Benefit Pro72
Pension And Other Benefit Programs (Narrative) (Details) - Retiree Health And Life Insurance Benefits [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated other postretirement benefit plans in 2016 | $ 6.9 | |
Additional estimated future employer contributions in 2016 | $ 5.8 | |
AFI [Member] | Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions in 2016 | $ 17.9 |
Financial Instruments (Estimate
Financial Instruments (Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ (7.8) | $ (11.5) |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (873.8) | (988.3) |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, including current portion | (870.6) | (989.4) |
Foreign Currency Contracts [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets (liabilities), net | 0.8 | 3.3 |
Foreign Currency Contracts [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets (liabilities), net | 0.8 | 3.3 |
Natural Gas Contracts [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0.3 | (0.8) |
Natural Gas Contracts [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets (liabilities), net | 0.3 | (0.8) |
Interest Rate Swap Contracts [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | (7.6) | (10.6) |
Interest Rate Swap Contracts [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ (7.6) | $ (10.6) |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Measurement of Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ (7.8) | $ (11.5) |
Foreign Currency Contracts [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets (liabilities), net | 0.8 | 3.3 |
Natural Gas Contracts [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0.3 | (0.8) |
Interest Rate Swap Contracts [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ (7.6) | $ (10.6) |
Derivative Financial Instrume75
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | ||||||
Interest expense | $ 12,500,000 | $ 11,400,000 | $ 34,400,000 | $ 22,600,000 | ||
Derivative Liabilities | 7,800,000 | 7,800,000 | $ 11,500,000 | |||
Gain in AOCI expected to be recognized in earnings over the next twelve months | 900,000 | |||||
Not Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liabilities | 0 | 0 | 0 | |||
Pre-tax (loss) gain recognized in income for derivative instruments | 0 | 0 | $ 0 | 0 | ||
Commodity Price Risk [Member] | ||||||
Derivative [Line Items] | ||||||
Maximum length of time hedged in cash flow hedge | 24 months | |||||
Notional amount | 2,900,000 | $ 2,900,000 | 9,200,000 | |||
Gain (loss) recognized on hedge ineffective portion | 0 | 0 | $ 0 | 0 | ||
Sales And Purchases [Member] | Foreign Exchange Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Maximum length of time hedged in cash flow hedge | 15 months | |||||
Notional amount | 44,000,000 | $ 44,000,000 | 38,400,000 | |||
Intercompany Loans And Dividends [Member] | Foreign Exchange Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 0 | 0 | $ 6,100,000 | |||
Interest Rate Swap Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized on hedge ineffective portion | $ 0 | $ 0 | $ 0 | $ 0 | ||
Interest Rate Swap Contracts [Member] | Term Loan B [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 450,000,000 | |||||
Interest Rate Swap Contracts [Member] | Term Loan B [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||||
Derivative [Line Items] | ||||||
Interest expense | $ 10,700,000 | |||||
Interest Rate Swap Contracts [Member] | Term Loan B [Member] | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
LIBOR floor | 0.75% | 0.75% |
Derivative Financial Instrume76
Derivative Financial Instruments (Summary of Interest Rate Swaps) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
1.398% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Apr. 16, 2013 |
Notional Amount | $ 250,000,000 |
Interest Rate Paid | 1.398% |
Coverage Period | November 2015 to March 2018 |
Risk Coverage | Term Loan A |
1.231% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Apr. 1, 2016 |
Notional Amount | $ 200,000,000 |
Interest Rate Paid | 1.231% |
Coverage Period | April 2016 to March 2021 |
Risk Coverage | Term Loan A |
1.756% Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Trade Date | Apr. 1, 2016 |
Notional Amount | $ 100,000,000 |
Interest Rate Paid | 1.756% |
Coverage Period | April 2016 to March 2023 |
Risk Coverage | Term Loan B |
Derivative Financial Instrume77
Derivative Financial Instruments (Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 1.3 | $ 3.4 |
Derivative Liabilities, Fair Value | 7.8 | 11.5 |
Other Current Assets [Member] | Natural Gas Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 0.3 | |
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 0.8 | 3.4 |
Other Non-Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 0.2 | |
Other Non-Current Assets [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | ||
Accounts Payable And Accrued Expenses [Member] | Natural Gas Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 0.8 | |
Accounts Payable And Accrued Expenses [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 0.2 | 0.1 |
Other Long-Term Liabilities [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 7.6 | $ 10.6 |
Derivative Financial Instrume78
Derivative Financial Instruments (Summary of Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) | $ (6.9) | $ (8.6) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 0.1 | $ 0.7 | 9.4 | 1.6 |
Natural Gas Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) | 0.3 | (1.6) | ||
Natural Gas Commodity Contracts [Member] | Cost Of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0.5 | (1.1) | 1.3 | (2.6) |
Foreign Exchange Contracts - Purchases [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) | (0.2) | 0.9 | ||
Foreign Exchange Contracts - Purchases [Member] | Cost Of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (0.1) | 0.1 | (0.5) | 0.2 |
Foreign Exchange Contracts - Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) | 0.6 | 4 | ||
Foreign Exchange Contracts - Sales [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ (0.3) | $ 1.7 | (2.1) | 4 |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Income (“AOCI”) (Effective Portion) | (7.6) | $ (11.9) | ||
Interest Rate Swap Contracts [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 10.7 |
Product Warranties (Summary of
Product Warranties (Summary of Activity for the Accrual of Product Warranties) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Balance at January 1, | $ 0.4 | $ 0.2 |
Reductions for payments | (3.5) | (0.7) |
Current year warranty accruals | 5.8 | 0.7 |
Balance at June 30, | $ 2.7 | $ 0.2 |
Other Long-Term Liabilities (Sc
Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Long-term deferred compensation arrangements | $ 17.7 | $ 18.7 |
Long-term portion of derivative liabilities | 7.6 | 10.6 |
U.S. workers' compensation | 1.6 | 1.1 |
Postemployment benefit liabilities | 2.3 | 2 |
Environmental liabilities | 3.5 | 6 |
Other | 3.9 | 4.9 |
Total other long-term liabilities | $ 36.6 | $ 43.3 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (487.4) | $ (495.5) | ||
Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) | (15.3) | (5) | ||
Amounts reclassified from accumulated other comprehensive (loss) | 20 | 17.1 | ||
Total other comprehensive (loss) income | $ (6.1) | $ 16 | 4.7 | 12.1 |
Ending Balance | (425.9) | (483.4) | (425.9) | (483.4) |
Other comprehensive (loss) income before reclassifications, tax expense (benefit) | 4.1 | (2.6) | ||
AFI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Separation of AFI, net of tax (benefit) | 56.8 | |||
Separation of AFI, tax (benefit) | (37.8) | |||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (33.8) | (8.3) | ||
Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) | (11.8) | (7.9) | ||
Total other comprehensive (loss) income | (11.8) | (7.9) | ||
Ending Balance | (50.2) | (16.2) | (50.2) | (16.2) |
Foreign Currency Translation Adjustments [Member] | AFI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Separation of AFI, net of tax (benefit) | (4.6) | |||
Derivative Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3.3) | (4) | ||
Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) | (6.6) | (0.1) | ||
Amounts reclassified from accumulated other comprehensive (loss) | 6.1 | (1) | ||
Total other comprehensive (loss) income | (0.5) | (1.1) | ||
Ending Balance | (4.2) | (5.1) | (4.2) | (5.1) |
Other comprehensive (loss) income before reclassifications, tax expense (benefit) | 3.9 | 0.4 | ||
Derivative Adjustments [Member] | AFI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Separation of AFI, net of tax (benefit) | (0.4) | |||
Pension And Postretirement Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (450.3) | (483.2) | ||
Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) | 3.1 | 3 | ||
Amounts reclassified from accumulated other comprehensive (loss) | 13.9 | 18.1 | ||
Total other comprehensive (loss) income | 17 | 21.1 | ||
Ending Balance | $ (371.5) | $ (462.1) | (371.5) | (462.1) |
Other comprehensive (loss) income before reclassifications, tax expense (benefit) | 0.2 | $ (3) | ||
Pension And Postretirement Adjustments [Member] | AFI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Separation of AFI, net of tax (benefit) | 61.8 | |||
Separation of AFI, tax (benefit) | $ (37.8) |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive (Loss) (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | $ 222.8 | $ 214.6 | $ 425.9 | $ 417.5 |
Net sales | 314.3 | 306.1 | 601.7 | 598.1 |
Interest expense | 12.5 | 11.4 | 34.4 | 22.6 |
Total (loss) income before tax | 41.3 | 33 | 46.2 | 55.4 |
Tax impact | (24.7) | (17.9) | (36.7) | (34.6) |
Selling, general and administrative expenses | $ 55.8 | $ 61.6 | 109.5 | 125.9 |
Total reclassifications for the period | 20 | 17.1 | ||
Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period | 20 | 17.1 | ||
Derivative Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period | 6.1 | (1) | ||
Derivative Adjustments [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total (loss) income before tax | 9.4 | (1.6) | ||
Tax impact | (3.3) | 0.6 | ||
Total income (loss), net of tax | 6.1 | (1) | ||
Derivative Adjustments [Member] | Natural Gas Commodity Contracts [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | 1.3 | 2.6 | ||
Derivative Adjustments [Member] | Foreign Exchange Contracts - Purchases [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | (0.5) | (0.2) | ||
Derivative Adjustments [Member] | Foreign Exchange Contracts - Sales [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (2.1) | (4) | ||
Derivative Adjustments [Member] | Interest Rate Swap Contracts [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 10.7 | |||
Pension And Postretirement Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period | 13.9 | 18.1 | ||
Pension And Postretirement Adjustments [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total expense before tax | 21.4 | 27.8 | ||
Tax impact | (7.5) | (9.7) | ||
Total expense, net of tax | 13.9 | 18.1 | ||
Pension And Postretirement Adjustments [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | Prior Service Cost Amortization | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | 0.3 | 0.4 | ||
Selling, general and administrative expenses | 0.3 | 0.4 | ||
Pension And Postretirement Adjustments [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | Amortization Of Net Actuarial Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | 11 | 14.2 | ||
Selling, general and administrative expenses | $ 9.8 | $ 12.8 |
Litigation and Related Matters
Litigation and Related Matters (Narrative) (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2010site | Aug. 31, 2010site | Jun. 30, 2016USD ($)Litigationsite | Dec. 31, 2007 | Dec. 31, 2015USD ($) | |
Litigation And Related Matters [Line Items] | |||||
Number of active and independent litigation matters for which pursuing coverage and recoveries | Litigation | 2 | ||||
Potential environmental liabilities | $ | $ 3.5 | $ 6 | |||
Recorded amount for probable recoveries | $ | $ 0 | $ 0 | |||
St Helens Site [Member] | |||||
Litigation And Related Matters [Line Items] | |||||
Number of facilities tested for contamination | 2 | ||||
Macon Site [Member] | |||||
Litigation And Related Matters [Line Items] | |||||
Number of landfills listed as Superfund site | 2 | ||||
WWTP Landfill [Member] | |||||
Litigation And Related Matters [Line Items] | |||||
Number of landfills AWI entered into an Administrative Order on Consent for a Removal Action | 1 | ||||
Elizabeth City [Member] | |||||
Litigation And Related Matters [Line Items] | |||||
Percentage of site costs Navy agreed to pay | 33.33% |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Earnings from continuing operations | $ 16.6 | $ 15.1 | $ 9.5 | $ 20.8 |
Earnings allocated to participating non-vested share awards | (0.1) | (0.2) | (0.2) | |
Earnings from continuing operations attributable to common shares | $ 16.5 | $ 14.9 | $ 9.5 | $ 20.6 |
Earnings Per Share (Reconcili85
Earnings Per Share (Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Basic shares outstanding | 55.6 | 55.5 | 55.6 | 55.4 |
Dilutive effect of common stock equivalents | 0.4 | 0.3 | 0.3 | 0.4 |
Diluted shares outstanding | 56 | 55.8 | 55.9 | 55.8 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Options to purchase common stock not included in the computation of diluted EPS | 478,428 | 8,175 | 708,010 | 142,250 |