SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
February 2, 2000
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Date of Report (Date of earliest event reported)
ARMSTRONG WORLD INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
PENNSYLVANIA 1-2116 23-0366390
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(State of Organization) (Commission File Number) (IRS Employer
Identification No.)
P.O. BOX 3001
LANCASTER, PENNSYLVANIA 17604
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(Address of Registrant's Principal Executive Office) (Zip Code)
(717) 397-0611
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(Registrant's telephone number, including area code)
Item 5. Other Events
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Attached and incorporated herein by reference as Exhibit 99 is a copy of a press
release of the Company dated February 2, 2000, plus supplemental information,
reporting its sales and profits for the fourth quarter and full year of 1999.
Among other things, the materials included in the release report the Company is
taking an additional pre-tax net charge of $335.4 million (after expected
insurance recoveries) to increase its reserves for estimated liability related
to pending and future claims. The total estimable and probable liability as of
December 31, 1999 is $681.4 million, which is the low end of the Company's range
of potential liability for such claims. The range of such liability through the
year 2005 extends from $681.4 million to $1,337.9 million. As of the end of
1999, Armstrong had 176,000 pending claims filed against the company.
The Company settled approximately 41-percent of its current asbestos claims in
1999, as a result of its participation in the Strategic Settlement Program of
the Center for Claims Resolution (CCR). The CCR, formed in 1988 to provide an
efficient, economical alternative to traditional tort defense, represents 16
corporations in asbestos litigation. The settlements provide for the resolution
of those claims and establish a mechanism for resolving future claims.
The settlements typically resolve claims as of a certain date, at a
pre-determined cost per claim and medical condition. Payment of these
settlements is usually for a period of up to five years. Another key element of
the settlements is that any future claims brought through a law firm already in
the settlement plan will be subject to the claimant meeting medical criteria.
The number of future claims from each firm that has agreed to this settlement
program will also be subject to annual limits. Future settlements also have pay
out periods of up to four years.
Item 7(c). Exhibits
99. Press release of the Company dated February 2, 2000, plus supplemental
information, reporting its sales and profits for the fourth quarter and full
year of 1999.
Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits.
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Financial Statements.
None
Pro Forma Financial Information.
None
Exhibits.
99 Press Release, dated February 2, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARMSTRONG WORLD INDUSTRIES, INC.
By: /s/ Deborah K. Owen
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Senior Vice President,
Secretary and General Counsel
Date: February 4, 2000
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EXHIBIT INDEX
Exhibit No. Exhibit
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99 Press Release, dated February 2, 2000