Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Armstrong Flooring, Inc. | |
Entity Central Index Key | 0001655075 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 25,940,937 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 141.7 | $ 164.3 |
Cost of goods sold | 119.6 | 135 |
Gross profit | 22.1 | 29.3 |
Selling, general and administrative expenses | 37.7 | 38.2 |
Operating (loss) | (15.6) | (8.9) |
Interest expense | 1 | 1 |
Other expense, net | 0.3 | 0.6 |
(Loss) from continuing operations before income taxes | (16.9) | (10.5) |
Income tax (benefit) | (0.3) | (0.1) |
Net (loss) from continuing operations | (16.6) | (10.4) |
Net earnings (loss) from discontinued operations | 0 | 0 |
(Loss) on disposal of discontinued operation, net of tax | (0.1) | 0 |
Net (loss) from discontinued operations | (0.1) | 0 |
Net (loss) | $ (16.7) | $ (10.4) |
Basic (loss) per share of common stock: | ||
Basic (loss) per share of common stock from continuing operations (in dollars per share) | $ (0.63) | $ (0.40) |
Basic (loss) per share of common stock from discontinued operations (in dollars per share) | 0 | 0 |
Earnings Per Share, Basic | (0.63) | |
Diluted (loss) per share of common stock: | ||
Diluted (loss) per share of common stock from continuing operations (in dollars per share) | (0.63) | (0.40) |
Diluted (loss) per share of common stock from discontinued operations (in dollars per share) | 0 | 0 |
Earnings Per Share, Diluted | $ (0.63) | $ (0.40) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) | $ (16.7) | $ (10.4) |
Changes in other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 2.2 | 4.7 |
Derivative (loss) gain | (0.5) | 0.8 |
Pension and postretirement adjustments | 1.2 | 2.1 |
Total other comprehensive income | 2.9 | 7.6 |
Total comprehensive (loss) | $ (13.8) | $ (2.8) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 74.9 | $ 173.8 |
Restricted cash | 0.8 | 0 |
Accounts and notes receivable, net | 61 | 39 |
Inventories, net | 144.7 | 139.5 |
Income tax receivable | 0.6 | 0.6 |
Prepaid expenses and other current assets | 16.1 | 18 |
Total current assets | 298.1 | 370.9 |
Property, plant, and equipment, less accumulated depreciation and amortization of $327.5 and $318.8, respectively | 294.3 | 296.1 |
Operating lease assets | 8 | 0 |
Intangible assets, less accumulated amortization of $14.4 and $12.0, respectively | 30.4 | 32 |
Deferred income taxes | 5.6 | 5.6 |
Other noncurrent assets | 3 | 3.6 |
Total assets | 639.4 | 708.2 |
Current liabilities: | ||
Short-term debt | 0 | 25 |
Current installments of long-term debt | 3.7 | 3.7 |
Accounts payable and accrued expenses | 108.9 | 141.4 |
Income tax payable | 0.2 | 0.5 |
Total current liabilities | 112.8 | 170.6 |
Long-term debt | 70.3 | 70.6 |
Noncurrent operating lease liabilities | 4.5 | 0 |
Postretirement benefit liabilities | 54.7 | 55.7 |
Pension benefit liabilities | 10.3 | 11.3 |
Other long-term liabilities | 7 | 6.7 |
Noncurrent income taxes payable | 0.2 | 0.2 |
Deferred income taxes | 2 | 2.1 |
Total liabilities | 261.8 | 317.2 |
Stockholders’ equity: | ||
Common stock with par value $.0001 per share: 100,000,000 shares authorized; 28,288,015 issued and 25,886,101 outstanding shares as of March 31, 2019 and 28,284,358 issued and 25,832,193 outstanding shares as of December 31, 2018 | 0 | 0 |
Preferred stock with par value $.0001 per share: 15,000,000 shares authorized; none issued | 0 | 0 |
Treasury stock, at cost, 2,401,914 shares as of March 31, 2019 and 2,452,165 shares as of December 31, 2018 | (38.8) | (39.7) |
Additional paid-in capital | 678.1 | 678.6 |
Accumulated deficit | (203) | (186.3) |
Accumulated other comprehensive (loss) | (58.7) | (61.6) |
Total stockholders’ equity | 377.6 | 391 |
Total liabilities and stockholders’ equity | $ 639.4 | $ 708.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Property, plant, and equipment, accumulated depreciation and amortization | $ 327.5 | $ 318.8 |
Finite-lived intangibles, accumulated amortization | $ 14.4 | $ 12 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 28,288,015 | 28,284,358 |
Common stock, outstanding (in shares) | 25,886,101 | 25,832,193 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Treasury stock (in shares) | 2,401,914 | 2,452,165 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) | (Accumulated Deficit) |
Beginning balance at Dec. 31, 2017 | $ 550 | $ 0 | $ (39.9) | $ 674.2 | $ (52.5) | $ (31.8) |
Beginning balance (in shares) at Dec. 31, 2017 | 25,734,222 | 2,448,996 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) | (10.4) | (10.4) | ||||
Repurchase of common stock | (1) | $ (1) | ||||
Repurchase of common stock (in shares) | (69,353) | 69,353 | ||||
Stock-based employee compensation, net | 0.9 | $ 1 | (0.1) | |||
Stock-based employee compensation, net (in shares) | 77,258 | (52,486) | ||||
Other comprehensive income | 7.6 | 7.6 | ||||
Ending balance at Mar. 31, 2018 | 543 | $ 0 | $ (39.9) | 674.1 | (57.5) | (33.7) |
Ending balance (in shares) at Mar. 31, 2018 | 25,742,127 | 2,465,863 | ||||
Beginning balance at Dec. 31, 2018 | 391 | $ 0 | $ (39.7) | 678.6 | (61.6) | (186.3) |
Beginning balance (in shares) at Dec. 31, 2018 | 25,832,193 | 2,452,165 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) | (16.7) | (16.7) | ||||
Stock-based employee compensation, net | 0.4 | $ 0 | $ 0.9 | (0.5) | ||
Stock-based employee compensation, net (in shares) | 53,908 | (50,251) | ||||
Other comprehensive income | 2.9 | 2.9 | ||||
Ending balance at Mar. 31, 2019 | $ 377.6 | $ 0 | $ (38.8) | $ 678.1 | $ (58.7) | $ (203) |
Ending balance (in shares) at Mar. 31, 2019 | 25,886,101 | 2,401,914 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) | $ (16.7) | $ (10.4) |
Adjustments to reconcile net (loss) to net cash used for operating activities: | ||
Depreciation and amortization | 11.3 | 13.8 |
Deferred income taxes | (0.2) | 0 |
Stock-based compensation | 0.4 | 1.1 |
U.S. pension expense | 1.4 | 1.7 |
Other non-cash adjustments, net | (0.2) | 0.2 |
Changes in operating assets and liabilities: | ||
Receivables | (21.8) | (11.7) |
Inventories | (4.9) | 0.7 |
Accounts payable and accrued expenses | (33) | 2.5 |
Income taxes payable and receivable | (0.4) | 2.5 |
Other assets and liabilities | 0.9 | (4.8) |
Net cash used for operating activities | (63.2) | (4.4) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (8.6) | (10.2) |
Other investing activities | 0 | 0.1 |
Net cash used for investing activities | (8.6) | (10.1) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 0 | 27 |
Payments on revolving credit facility | (25) | (22) |
Payments on long-term debt | (1) | 0 |
Payments on capital lease | 0 | (0.1) |
Purchases of treasury stock | 0 | (1) |
Proceeds from exercised stock options | 0 | 0.2 |
Value of shares withheld related to employee tax withholding | (0.7) | (0.4) |
Net cash (used for) provided by financing activities | (26.7) | 3.7 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.4 | 0.7 |
Net decrease in cash, cash equivalents and restricted cash | (98.1) | (10.1) |
Cash, cash equivalents and restricted cash at beginning of year | 173.8 | 39 |
Cash, cash equivalents and restricted cash at end of period | 75.7 | 28.9 |
Cash, cash equivalents and restricted cash at end of period from discontinued operations | 0 | (1.2) |
Cash, cash equivalents and restricted cash at end of period from continuing operations | 75.7 | 30.1 |
Supplemental Cash Flow Disclosure: | ||
Amounts in accounts payable for capital expenditures | 3.7 | 3.8 |
Interest paid | 0.9 | 0.8 |
Income taxes paid (refunded), net | $ 0.3 | $ (2.5) |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Background Armstrong Flooring, Inc. (“AFI”) is a leading global producer of resilient flooring products for use primarily in the construction and renovation of residential, commercial and institutional buildings. AFI designs, manufactures, sources and sells resilient flooring products in North America and the Pacific Rim. When we refer to "AFI," "the Company," "we," "our," and "us" in this report, we are referring to Armstrong Flooring, Inc., a Delaware corporation, and its consolidated subsidiaries. Discontinued Operations On November 14, 2018, AFI entered into a Stock Purchase Agreement with Tarzan Holdco, Inc. ("TZI"), a Delaware corporation and an affiliate of American Industrial Partners ("AIP"), to sell its North American wood flooring business. On December 31, 2018, AIP completed the purchase of all of the issued and outstanding shares of Armstrong Wood Products, Inc. ("AWP"), a Delaware corporation, including its direct and indirect wholly owned subsidiaries. Basis of Presentation The historical results of operations and financial position of the North American wood flooring business are reported as discontinued operations in the Condensed Consolidated Statements of Operations. The historical information in the accompanying Notes to the Condensed Consolidated Financial Statements have been restated to reflect the effects of the sale of the North American wood flooring business. For further information on discontinued operations, see Note 5. These Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including certain asset values, allowances for bad debts, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, workers compensation, general liability and environmental claims and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information. Management may confer with outside parties, including outside counsel. Actual results may differ from these estimates. In the opinion of management, all adjustments of a normal, recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the three months ended March 31, 2019 and 2018 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in economic conditions between periods. Certain amounts in the prior year’s Condensed Consolidated Financial Statements and related notes thereto have been recast to conform to the 2019 presentation. Otherwise, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2018 except as noted below. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . All significant intercompany transactions within AFI have been eliminated from the Condensed Consolidated Financial Statements. Recently Adopted Accounting Standards On January 1, 2019 we adopted ASU 2016-02, "Leases." The guidance, and subsequent amendments issued, requires a lessee to recognize the assets and liabilities that arise from a lease agreement. Specifically, this new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term, with limited exceptions. Adoption of the new standard resulted in the recording of lease assets and lease liabilities of $9.2 million as of January 1, 2019. December 31, 2018 Impact from Adoption January 1, 2019 Assets Operating lease assets $ — $ 8.6 $ 8.6 Finance lease assets — 0.6 0.6 Total lease assets $ — $ 9.2 $ 9.2 Liabilities Current Operating $ — $ 3.5 $ 3.5 Noncurrent Operating — 5.1 5.1 Finance — 0.6 0.6 Total lease liabilities $ — $ 9.2 $ 9.2 See Note 9 to the Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The guidance requires immediate recognition of estimated credit losses that are expected to occur over the remaining life of many financial assets. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2019, but early adoption is permitted for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. In August 2018, the FASB issued ASU 2018-15, " Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal use software license. Capitalized implementation costs should be amortized over the term of the service agreement on a straight line basis and should be assessed for impairment in a manner similar to long-lived assets. This new guidance is effective for fiscal years beginning after December 15, 2019 for public companies. Early adoption is permitted. We are continuing to evaluate the impact the adoption of this standard will have on our financial condition, results of operations and cash flows. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE We disaggregate revenue based on customer geography as geography represents the most appropriate depiction of how the nature, timing and uncertainty of revenues and cash flows are impacted by economic factors. The following table presents our revenues disaggregated by geographic area based upon the location of the customer. Three Months Ended 2019 2018 Net sales United States $ 109.3 $ 128.6 China 11.4 10.3 Canada 10.0 16.3 Other 11.0 9.1 Total net sales $ 141.7 $ 164.3 |
Severance Expense
Severance Expense | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Other Severance Expense | SEVERANCE EXPENSE In the first quarter of 2018, we announced that we were changing our residential go-to-market strategy and empowering our distributors with the responsibilities of marketing, merchandising and direct sales representation. The new structure was designed to provide enhanced support and responsiveness to retailers. As a result of the reorganization, approximately 70 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $3.1 million primarily in SG&A expenses. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following table presents details related to our income taxes: Three Months Ended 2019 2018 Income (loss) from continuing operations before income taxes $ (16.9 ) $ (10.5 ) Income tax expense (benefit) (0.3 ) (0.1 ) Effective tax rate 1.8 % 1.0 % The effective tax rate for the first quarter of 2019 was flat versus the comparable 2018 period. Upon audit, taxing authorities may challenge all or part of an uncertain income tax position. While AFI has no history of tax audits on a stand-alone basis, AWI was routinely audited by U.S. federal, state and local, and non-U.S. taxing authorities. Accordingly, AFI regularly assesses the outcome of potential examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded. We do not expect to record any material changes during 2019 to our unrecognized tax benefits as of December 31, 2018 . As of March 31, 2019 , we consider foreign unremitted earnings to be permanently reinvested. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In December 2018, we completed the sale of our wood business to TZI. The proceeds from the sale were $90.2 million , net of closing costs, transaction fees and taxes. The transaction is subject to a customary post-closing working capital adjustment process, which is expected to be completed in 2019. The financial results of the wood business have been reclassified as discontinued operations for all periods presented. The Condensed Consolidated Statements of Cash Flows do not separately report the cash flows of the discontinued operation. The following is a summary of the operating results of the wood business, which are included in discontinued operations. Three Months Ended 2018 Net Sales $ 93.6 Cost of goods sold 83.6 Gross profit 10.0 Selling, general and administrative expenses 10.0 Operating earnings (loss) — Interest expense — Other expense, net — Earnings (loss) before income tax — Income tax expense (benefit) — Net earnings (loss) from discontinued operations $ — Three Months Ended 2018 Depreciation and Amortization $ 3.0 Capital Expenditures (2.1 ) The following is a summary of the results related to the net loss on disposal of the wood business which is included in discontinued operations: Three Months Ended 2019 (Loss) on disposal of discontinued operations before income tax $ (0.1 ) Income tax (benefit) — Net (loss) on disposal of discontinued operations $ (0.1 ) |
Earnings (Loss) Per Share of Co
Earnings (Loss) Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share of Common Stock | EARNINGS (LOSS) PER SHARE OF COMMON STOCK Earnings per share components may not add due to rounding. The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings (loss) per share calculations for the periods indicated. Three Months Ended 2019 2018 Numerator Net (loss) from continuing operations $ (16.6 ) $ (10.4 ) Net (loss) from discontinued operations (0.1 ) — Net (loss) $ (16.7 ) $ (10.4 ) Denominator Weighted average number of common shares outstanding 25,851,432 25,737,801 Weighted average number of vested shares not yet issued 804,356 162,818 Weighted average number of common shares outstanding - Basic 26,655,788 25,900,619 Dilutive impact of stock-based compensation plans — — Weighted average number of common shares outstanding - Diluted 26,655,788 25,900,619 For the three months ended March 31, 2019 and March 31, 2018 , the diluted loss per share was calculated using basic common shares outstanding, as inclusion of potentially dilutive common shares would be anti-dilutive. Performance-based employee compensation awards are considered potentially dilutive in the initial period in which the performance conditions are met. The following awards were excluded from the computation of diluted earnings (loss) per share: Three Months Ended 2019 2018 Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive 440,075 926,918 Performance awards excluded from diluted computation, as performance conditions not met 509,065 942,863 |
Accounts and Notes Receivable
Accounts and Notes Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | ACCOUNTS AND NOTES RECEIVABLE The following table presents accounts and note receivables, net of allowances: March 31, 2019 December 31, 2018 Customer receivables $ 70.8 $ 45.4 Miscellaneous receivables 3.9 6.2 Less: allowance for product claims, discounts, returns and losses (13.7 ) (12.6 ) Total $ 61.0 $ 39.0 Generally, we sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions. We consider these factors and the financial condition of each customer when establishing our allowance for losses from doubtful accounts. Allowance for product claims represents expected reimbursements for cost associated with warranty repairs and customer accommodation claims, the majority of which is provided to our independent distributors through a credit against accounts receivable from the distributor to AFI. The following table summarizes the activity for the allowance for product claims: Three Months Ended March 31, 2019 2018 Balance as of January 1, $ (6.4 ) $ (5.6 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 — (1.7 ) Reductions for payments 1.5 2.0 Current year claim accruals (1.8 ) (1.1 ) Balance as of March 31, $ (6.7 ) $ (6.4 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The following table presents details related to our inventories, net: March 31, 2019 December 31, 2018 Finished goods $ 115.8 $ 110.5 Goods in process 6.3 5.7 Raw materials and supplies 22.6 23.3 Total $ 144.7 $ 139.5 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases, Operating | LEASES We lease certain real estate (warehouse and office space), vehicles and equipment. For leases with an initial term of less than 13 months we recognize lease expense for these leases on a straight-line basis over the lease term. Leases with an initial term of thirteen months or more are recorded on the balance sheet. We consider all payments fixed unless there is a material impact to the balance sheet at any given time during the lease period. Our leases have remaining lease terms of one month to ten years. Many leases include one or more options to renew, with renewal terms that can extend the lease term from one month to ten years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The FASB allows companies transition and practical expedient elections to simplify the transition of the new standard. We have elected the following: • We have elected to not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, if a difference existed between the initial lease liability and related right of use asset. • We have elected to use the hindsight practical expedient with respect to determining the lease term allowing us to consider the actual outcome of lease renewals, termination options and purchase options, and in assessing impairment of right-of-use assets for existing leases. • We have elected to combine lease and non-lease components as a single component and account for it as a lease for all asset classes with the exception of land and non-operating buildings. Lease and non-lease components of land and non-operating buildings are generally accounted for separately. • We have elected to use a portfolio approach to determine the discount rate and defined portfolio based on the geographic location of the asset by country and duration of the lease. The following table summarizes the components of the lease expense: Three Months Ended 2019 Lease Cost Finance lease cost Amortization of right-of-use asset $ 0.1 Operating lease cost 1.0 Short-term lease cost 0.5 Sublease income (0.3 ) Total lease cost $ 1.3 The following table summarizes supplemental balance sheet information related to leases: Balance Sheet Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 8.0 Finance lease assets Property, plant and equipment, less accumulated depreciation 0.6 Total lease assets $ 8.6 Liabilities Current Operating Accounts payable and accrued expenses $ 3.5 Noncurrent Operating Noncurrent operating lease liabilities 4.5 Finance Long-term debt 0.6 Total lease liabilities $ 8.6 The following table summarizes supplemental cash flow information related to leases: Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.0 Financing cash flows from finance leases 0.1 The following table summarizes weighted average remaining lease term and weighted average discount rate: Three Months Ended March 31, 2019 Weighted Average Remaining Lease Term (Years) Discount Rate Operating leases 3.2 5.7 % Finance leases 3.3 5.4 % The following table provides future minimum payments at March 31, 2019 by year and in the aggregate, having non-cancelable lease terms in excess of one year. Operating Leases Finance Leases 2019 (Remaining) $ 2.8 $ 0.2 2020 3.4 0.2 2021 1.0 0.1 2022 0.3 0.1 2023 0.3 — Thereafter 1.3 — Total $ 9.1 $ 0.6 In our 2018 Form 10-K we disclosed expected future minimum lease payments at December 31, 2018 of $20.4 million . The adoption of ASC 842 reduced the expected future minimum lease payments by removing costs related to non-lease components of existing contracts and agreements no longer defined as operating leases by $8.2 million and $2.3 million , respectively. The following table provides reconciliation of future minimum lease payment and lease liability: Three Months Ended Operating Leases Finance Leases Future minimum lease payment $ 9.1 $ 0.6 Less: Unamortized interest 1.1 — Total lease liability $ 8.0 $ 0.6 |
Leases, Finance | LEASES We lease certain real estate (warehouse and office space), vehicles and equipment. For leases with an initial term of less than 13 months we recognize lease expense for these leases on a straight-line basis over the lease term. Leases with an initial term of thirteen months or more are recorded on the balance sheet. We consider all payments fixed unless there is a material impact to the balance sheet at any given time during the lease period. Our leases have remaining lease terms of one month to ten years. Many leases include one or more options to renew, with renewal terms that can extend the lease term from one month to ten years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The FASB allows companies transition and practical expedient elections to simplify the transition of the new standard. We have elected the following: • We have elected to not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, if a difference existed between the initial lease liability and related right of use asset. • We have elected to use the hindsight practical expedient with respect to determining the lease term allowing us to consider the actual outcome of lease renewals, termination options and purchase options, and in assessing impairment of right-of-use assets for existing leases. • We have elected to combine lease and non-lease components as a single component and account for it as a lease for all asset classes with the exception of land and non-operating buildings. Lease and non-lease components of land and non-operating buildings are generally accounted for separately. • We have elected to use a portfolio approach to determine the discount rate and defined portfolio based on the geographic location of the asset by country and duration of the lease. The following table summarizes the components of the lease expense: Three Months Ended 2019 Lease Cost Finance lease cost Amortization of right-of-use asset $ 0.1 Operating lease cost 1.0 Short-term lease cost 0.5 Sublease income (0.3 ) Total lease cost $ 1.3 The following table summarizes supplemental balance sheet information related to leases: Balance Sheet Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 8.0 Finance lease assets Property, plant and equipment, less accumulated depreciation 0.6 Total lease assets $ 8.6 Liabilities Current Operating Accounts payable and accrued expenses $ 3.5 Noncurrent Operating Noncurrent operating lease liabilities 4.5 Finance Long-term debt 0.6 Total lease liabilities $ 8.6 The following table summarizes supplemental cash flow information related to leases: Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.0 Financing cash flows from finance leases 0.1 The following table summarizes weighted average remaining lease term and weighted average discount rate: Three Months Ended March 31, 2019 Weighted Average Remaining Lease Term (Years) Discount Rate Operating leases 3.2 5.7 % Finance leases 3.3 5.4 % The following table provides future minimum payments at March 31, 2019 by year and in the aggregate, having non-cancelable lease terms in excess of one year. Operating Leases Finance Leases 2019 (Remaining) $ 2.8 $ 0.2 2020 3.4 0.2 2021 1.0 0.1 2022 0.3 0.1 2023 0.3 — Thereafter 1.3 — Total $ 9.1 $ 0.6 In our 2018 Form 10-K we disclosed expected future minimum lease payments at December 31, 2018 of $20.4 million . The adoption of ASC 842 reduced the expected future minimum lease payments by removing costs related to non-lease components of existing contracts and agreements no longer defined as operating leases by $8.2 million and $2.3 million , respectively. The following table provides reconciliation of future minimum lease payment and lease liability: Three Months Ended Operating Leases Finance Leases Future minimum lease payment $ 9.1 $ 0.6 Less: Unamortized interest 1.1 — Total lease liability $ 8.0 $ 0.6 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following table details amounts related to our accounts payable and accrued expenses: March 31, 2019 December 31, 2018 Payables, trade and other $ 78.6 $ 99.5 Employment costs 15.1 25.0 Other accrued expenses 11.7 16.9 Current operating lease liabilities 3.5 — Total $ 108.9 $ 141.4 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Programs | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Programs | PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS The following table summarizes our pension and postretirement expense: Three Months Ended 2019 2018 Defined-benefit pension, U.S. Service cost $ 0.6 $ 0.9 Interest cost 3.8 3.7 Expected return on plan assets (5.4 ) (5.6 ) Amortization of net actuarial loss 2.4 2.7 Total, defined-benefit pension, U.S. $ 1.4 $ 1.7 Defined-benefit pension, Canada Interest cost $ 0.1 $ 0.1 Expected return on plan assets (0.1 ) (0.2 ) Amortization of net actuarial loss 0.1 0.1 Total, defined-benefit pension, Canada $ 0.1 $ — Defined-benefit postretirement, U.S. Service cost $ 0.1 $ 0.1 Interest cost 0.6 0.6 Amortization of net actuarial gains (0.8 ) (0.6 ) Total, defined-benefit postretirement, U.S. $ (0.1 ) $ 0.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE (LOSS) The following table summarizes the activity, by component, related to the change in AOCI. Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2018 $ 1.7 $ 0.8 $ (64.1 ) $ (61.6 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , $0.2, $-, and $0.2 2.2 (0.3 ) (0.1 ) 1.8 Amounts reclassified from accumulated other comprehensive income — (0.2 ) 1.3 1.1 Net current period other comprehensive income (loss) 2.2 (0.5 ) 1.2 2.9 Balance, March 31, 2019 $ 3.9 $ 0.3 $ (62.9 ) $ (58.7 ) Balance, December 31, 2017 $ 7.7 $ (1.0 ) $ (59.2 ) $ (52.5 ) Cumulative effect of adoption of ASU 2018-02 as of January 1 — 0.1 (12.7 ) (12.6 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , ($0.1), $ -, and ($0.1) 4.7 0.4 (0.1 ) 5.0 Amounts reclassified from accumulated other comprehensive income — 0.4 2.2 2.6 Net current period other comprehensive income (loss) 4.7 0.8 2.1 7.6 Balance, March 31, 2018 $ 12.4 $ (0.1 ) $ (69.8 ) $ (57.5 ) The amounts reclassified from AOCI and the affected line item of the Condensed Consolidated Statements of Operations are presented in the table below. Three Months Ended 2019 2018 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ 0.1 Cost of goods sold Foreign exchange contracts - purchases — 0.1 Earnings (loss) from discontinued operations Foreign exchange contracts - sales (0.1 ) 0.2 Net sales Foreign exchange contracts - sales — 0.1 Earnings (loss) from discontinued operations Total (income) expense before tax (0.2 ) 0.5 Tax impact — (0.1 ) Income tax (benefit) Total (income) expense, net of tax (0.2 ) 0.4 Pension and postretirement adjustments Amortization of net actuarial loss 1.7 2.2 Other expense, net Total expense before tax 1.7 2.2 Tax impact (0.4 ) — Income tax (benefit) Total expense, net of tax 1.3 2.2 Total reclassifications for the period $ 1.1 $ 2.6 |
Litigation and Related Matters
Litigation and Related Matters | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Related Matters | LITIGATION AND RELATED MATTERS Environmental Matters Environmental Compliance Our manufacturing and research facilities are affected by various federal, state and local requirements relating to the discharge of materials and the protection of the environment. We make expenditures necessary for compliance with applicable environmental requirements at each of our operating facilities. These regulatory requirements continually change, therefore we cannot predict with certainty future expenditures associated with compliance with environmental requirements. Environmental Sites In connection with our current or legacy manufacturing operations, or those of former owners, we may from time to time become involved in the investigation, closure and/or remediation of existing or potential environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act, and state or international Superfund and similar type environmental laws. For those matters, we may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies; however, we cannot predict with certainty the future identification of or expenditure for any investigation, closure or remediation of any environmental site. Summary of Financial Position There were no material liabilities recorded as of March 31, 2019 and December 31, 2018 for potential environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made. Antidumping and Countervailing Duty Cases In October 2010, a coalition of U.S. producers of multilayered wood flooring (not including AWI and its subsidiaries) filed petitions seeking antidumping duties (“AD”) and countervailing duties (“CVD”) with the United States Department of Commerce (“DOC”) and the United States International Trade Commission against imports of multilayered wood flooring from China. The AD and CVD petitions ultimately resulted in DOC issuing AD and CVD orders (the “Orders”) against multilayered wood flooring imported into the U.S. from China. These Orders and the associated additional duties they have imposed have been the subject of extensive litigation, both at DOC and in the U.S. courts. Prior to the sale of our North American wood flooring business on December 31, 2018, we produced multilayered wood flooring domestically and imported multilayered wood flooring from third party suppliers in China. Until October 2014, AWI also operated a plant in Kunshan, China (“Armstrong Kunshan”) that manufactured multilayered wood flooring for export to the U.S. As a result, we have been directly involved in the multilayered wood flooring-related litigation at DOC and in the U.S. courts. Our consistent view through the course of this matter has been, and remains, that our imports were neither dumped nor subsidized. In 2013, in the sole DOC investigation of AWI and its subsidiaries (as a mandatory respondent in connection with the first annual administrative review), Armstrong Kunshan received a final CVD rate of 0.98% and a final AD rate of 0.00% . Litigation regarding this matter has continued in the U.S. courts. Armstrong Kunshan, as well as other respondents, have appealed DOC’s original decision to apply an AD rate to AWI and its subsidiaries and other “separate rate” respondents in the original investigation (for which we received a final initial AD rate of 3.31% ) to the Court of Appeals for the Federal Circuit ("CAFC"). The CAFC, on February 15, 2017, found that DOC did not make the requisite factual findings necessary to support its original investigation determination. The CAFC vacated and remanded the Court of International Trade ("CIT") decision for further proceedings. On July 3, 2018, CIT issued a ruling ordering DOC to revoke the AD order with respect to Armstrong Kunshan and two other respondents. Petitioners have filed notice of appeal. At this time, therefore, the ultimate outcome of the litigation is uncertain, as well as the status of the revocation of the AD order with respect to Armstrong Kunshan. We will continue to pursue the case. We believe success on appeal could result in a final revocation of the AD order with respect to Armstrong Kunshan and its prior entries under the order. The DOC also continues to conduct annual administrative reviews of the AD and CVD final duty rates under the Orders. Armstrong Kunshan was not selected as a mandatory respondent for the second, third and fourth reviews and, therefore, was not subject to individual review, but we are subject to the rates applicable to importers that were not individually reviewed (the “separate rate” or “all other” respondents). The second administrative review period covered imports of multilayered wood flooring made between December 1, 2012 and November 30, 2013 (AD) and between January 1, 2012 and December 31, 2012 (CVD). In July 2015, the DOC issued a final “all others” CVD rate of 0.99% and a 13.74% AD rate. The AD rate was determined solely on the basis of the AD duty rate assigned to the only mandatory respondent that did not receive a de minimis rate. DOC assigned these rates to all separate rate respondents that were not individually investigated, including Armstrong Kunshan. We, along with other respondents, have filed complaints against DOC challenging the rate in the CIT. If such rates are ultimately upheld after any court appeals are exhausted, the estimated additional liability to us for the relevant period is $5.1 million , which is recorded in accounts payable and accrued expenses. The court granted the preliminary injunction requested by plaintiffs on August 13, 2015, and enjoined the U.S. Government agencies from causing or permitting liquidation of unliquidated entries of multilayered wood flooring from China, pending final decision on the case. On June 8, 2018, the CIT issued a decision and order remanding the review determination to DOC to reconsider certain valuation methodologies. A revised decision by DOC is pending and must be approved by the Court. The third administrative review period covered all multilayered wood flooring imports made between December 1, 2013 and November 30, 2014 (AD) and between January 1, 2013 and December 31, 2013 (CVD). On May 16, 2016, the DOC issued a final “all others” CVD rate of 1.38% and on July 13, 2016, DOC imposed a 17.37% “all others” AD rate. The AD rate was determined again solely on the basis of the AD duty rate assigned to the only mandatory respondent that did not receive a de minimis rate. DOC assigned these rates to all separate rate respondents that were not individually investigated, including Armstrong Kunshan. We continue to defend our import practices by pursuing our available legal rights and remedies, including litigation at DOC and in the U.S. courts. If such rates are ultimately upheld after any potential court appeals are exhausted, the estimated additional liability to us for the relevant period is $6.3 million , which is recorded in accounts payable and accrued expenses. We successfully filed an injunction request. The court granted the preliminary injunction on January 4, 2017 and enjoined the U.S. Government agencies from causing or permitting liquidation of unliquidated entries of multilayered wood flooring from China, pending final decision on the case. The preliminary injunction also ensures that our entries made during the 2013-14 review period will ultimately be liquidated in accordance with the final decision by the courts. On November 26, 2018, the CIT issued a decision and order upholding DOC's determination Armstrong and other affected "separate rate" parties have filed appeals to the Court of Appeals for the Federal Circuit and those appeals remain pending. AWI and Armstrong Kunshan were not subject to review during the fourth administrative review period, however, we are liable for other manufacturers' applicable rates to the extent we were importer of record of products covered by the AD/CVD orders during this period. The fourth administrative review period covered all multilayered wood flooring imports made between December 1, 2014 and November 30, 2015 (AD) and between January 1, 2014 and December 31, 2014 (CVD). On May 15, 2017, DOC published a final “all others” CVD rate of 1.06% and on June 5, 2017, DOC imposed a de minimis “all others” AD rate which will apply to our multilayered wood flooring imports during this period. We have begun receiving refunds for our multilayered wood flooring imports during this time period as our deposit rate exceeded this de minimis rate. The petitioners initially appealed this decision, but withdrew their appeal on October 17, 2017. We will accrue and make cash deposits for duties when we are the importer of record at the rates established by DOC based on the fourth administrative review process. Administrative reviews for the fifth review period (December 1, 2015-November 30, 2016 for AD and January 1, 2015-December 31, 2015 for CVD) have been initiated. We were not subject to review for this period; however, we are liable for other manufacturers’ applicable rates to the extent we were importer of record of products covered by the AD/CVD orders during this period. On June 14, 2018, DOC published a final "all others" CVD rate of 0.85% and on July 18, 2018, DOC published a final "all others" AD rate of 0.00% for our multilayered wood flooring imports during this time period. The U.S. International Trade Commission completed a sunset review of the original Orders in the fourth quarter of 2017 and determined to continue the Orders for an additional five year period. Armstrong Kunshan was not sold as part of the North American wood sale but was sold to a separate buyer in December 2018. We retained the right to elect to defend and control the defense of the above matters, as well as the right to any related refunds or payments, and agreed to indemnify and hold the buyer from and against any and all duties, penalties, fines or other charges. We have consistently pursued our legal rights and possible remedies to recover certain antidumping duty deposits and we are currently seeking to resolve this matter, if possible, outside of continued litigation. Other Claims We are involved in various lawsuits, claims, investigations and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. For example, we are currently a party to various litigation matters that involve product liability, tort liability and other claims under a wide range of allegations, including illness due to exposure to certain chemicals used in the workplace, or medical conditions arising from exposure to product ingredients or the presence of trace contaminants. In some cases, these allegations involve multiple defendants and relate to legacy products that we and other defendants purportedly manufactured or sold. We believe these claims and allegations to be without merit and intend to defend them vigorously. For these matters, we also may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. While complete assurance cannot be given to the outcome of these proceedings, we do not believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations, or cash flows. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On March 6, 2017, we announced that our board of directors had approved a share repurchase program pursuant to which we were authorized to repurchase up to $50.0 million of our outstanding shares of common stock. From inception of the share repurchase program through March 31, 2019, we repurchased approximately 2.5 million shares for a total cost of $41.0 million , with an average price of $16.23 per share. On May 3, 2019 we announced that our board of directors has authorized an increased share repurchase program for an additional $50.0 million beyond the $41.0 million already repurchased under the prior share repurchase program, effective immediately. Repurchases under the new program may be made through open market, block, and privately negotiated transactions, including Rule 10b5-1 plans, at times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The historical results of operations and financial position of the North American wood flooring business are reported as discontinued operations in the Condensed Consolidated Statements of Operations. The historical information in the accompanying Notes to the Condensed Consolidated Financial Statements have been restated to reflect the effects of the sale of the North American wood flooring business. For further information on discontinued operations, see Note 5. These Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including certain asset values, allowances for bad debts, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, workers compensation, general liability and environmental claims and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information. Management may confer with outside parties, including outside counsel. Actual results may differ from these estimates. In the opinion of management, all adjustments of a normal, recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the three months ended March 31, 2019 and 2018 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in economic conditions between periods. Certain amounts in the prior year’s Condensed Consolidated Financial Statements and related notes thereto have been recast to conform to the 2019 presentation. Otherwise, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2018 except as noted below. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . All significant intercompany transactions within AFI have been eliminated from the Condensed Consolidated Financial Statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On January 1, 2019 we adopted ASU 2016-02, "Leases." The guidance, and subsequent amendments issued, requires a lessee to recognize the assets and liabilities that arise from a lease agreement. Specifically, this new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term, with limited exceptions. Adoption of the new standard resulted in the recording of lease assets and lease liabilities of $9.2 million as of January 1, 2019. December 31, 2018 Impact from Adoption January 1, 2019 Assets Operating lease assets $ — $ 8.6 $ 8.6 Finance lease assets — 0.6 0.6 Total lease assets $ — $ 9.2 $ 9.2 Liabilities Current Operating $ — $ 3.5 $ 3.5 Noncurrent Operating — 5.1 5.1 Finance — 0.6 0.6 Total lease liabilities $ — $ 9.2 $ 9.2 See Note 9 to the Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The guidance requires immediate recognition of estimated credit losses that are expected to occur over the remaining life of many financial assets. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2019, but early adoption is permitted for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. In August 2018, the FASB issued ASU 2018-15, " Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal use software license. Capitalized implementation costs should be amortized over the term of the service agreement on a straight line basis and should be assessed for impairment in a manner similar to long-lived assets. This new guidance is effective for fiscal years beginning after December 15, 2019 for public companies. Early adoption is permitted. We are continuing to evaluate the impact the adoption of this standard will have on our financial condition, results of operations and cash flows. |
Business and Basis of Present_3
Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Changes | December 31, 2018 Impact from Adoption January 1, 2019 Assets Operating lease assets $ — $ 8.6 $ 8.6 Finance lease assets — 0.6 0.6 Total lease assets $ — $ 9.2 $ 9.2 Liabilities Current Operating $ — $ 3.5 $ 3.5 Noncurrent Operating — 5.1 5.1 Finance — 0.6 0.6 Total lease liabilities $ — $ 9.2 $ 9.2 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by geographic area based upon the location of the customer. Three Months Ended 2019 2018 Net sales United States $ 109.3 $ 128.6 China 11.4 10.3 Canada 10.0 16.3 Other 11.0 9.1 Total net sales $ 141.7 $ 164.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents details related to our income taxes: Three Months Ended 2019 2018 Income (loss) from continuing operations before income taxes $ (16.9 ) $ (10.5 ) Income tax expense (benefit) (0.3 ) (0.1 ) Effective tax rate 1.8 % 1.0 % |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Summary of Operating Results of Discontinued Operations | The following is a summary of the results related to the net loss on disposal of the wood business which is included in discontinued operations: Three Months Ended 2019 (Loss) on disposal of discontinued operations before income tax $ (0.1 ) Income tax (benefit) — Net (loss) on disposal of discontinued operations $ (0.1 ) | Three Months Ended 2018 Net Sales $ 93.6 Cost of goods sold 83.6 Gross profit 10.0 Selling, general and administrative expenses 10.0 Operating earnings (loss) — Interest expense — Other expense, net — Earnings (loss) before income tax — Income tax expense (benefit) — Net earnings (loss) from discontinued operations $ — Three Months Ended 2018 Depreciation and Amortization $ 3.0 Capital Expenditures (2.1 ) |
Earnings (Loss) Per Share of _2
Earnings (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings (loss) per share calculations for the periods indicated. Three Months Ended 2019 2018 Numerator Net (loss) from continuing operations $ (16.6 ) $ (10.4 ) Net (loss) from discontinued operations (0.1 ) — Net (loss) $ (16.7 ) $ (10.4 ) Denominator Weighted average number of common shares outstanding 25,851,432 25,737,801 Weighted average number of vested shares not yet issued 804,356 162,818 Weighted average number of common shares outstanding - Basic 26,655,788 25,900,619 Dilutive impact of stock-based compensation plans — — Weighted average number of common shares outstanding - Diluted 26,655,788 25,900,619 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following awards were excluded from the computation of diluted earnings (loss) per share: Three Months Ended 2019 2018 Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive 440,075 926,918 Performance awards excluded from diluted computation, as performance conditions not met 509,065 942,863 |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts and Notes Receivable | The following table presents accounts and note receivables, net of allowances: March 31, 2019 December 31, 2018 Customer receivables $ 70.8 $ 45.4 Miscellaneous receivables 3.9 6.2 Less: allowance for product claims, discounts, returns and losses (13.7 ) (12.6 ) Total $ 61.0 $ 39.0 |
Summary of Product Claim Accrual | The following table summarizes the activity for the allowance for product claims: Three Months Ended March 31, 2019 2018 Balance as of January 1, $ (6.4 ) $ (5.6 ) Cumulative effect of adoption of new revenue recognition standard as of January 1 — (1.7 ) Reductions for payments 1.5 2.0 Current year claim accruals (1.8 ) (1.1 ) Balance as of March 31, $ (6.7 ) $ (6.4 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table presents details related to our inventories, net: March 31, 2019 December 31, 2018 Finished goods $ 115.8 $ 110.5 Goods in process 6.3 5.7 Raw materials and supplies 22.6 23.3 Total $ 144.7 $ 139.5 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table summarizes the components of the lease expense: Three Months Ended 2019 Lease Cost Finance lease cost Amortization of right-of-use asset $ 0.1 Operating lease cost 1.0 Short-term lease cost 0.5 Sublease income (0.3 ) Total lease cost $ 1.3 |
Lease Supplemental Balance Sheet Information | The following table summarizes supplemental balance sheet information related to leases: Balance Sheet Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 8.0 Finance lease assets Property, plant and equipment, less accumulated depreciation 0.6 Total lease assets $ 8.6 Liabilities Current Operating Accounts payable and accrued expenses $ 3.5 Noncurrent Operating Noncurrent operating lease liabilities 4.5 Finance Long-term debt 0.6 Total lease liabilities $ 8.6 |
Lease Supplements Cash Flow Information | The following table summarizes supplemental cash flow information related to leases: Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.0 Financing cash flows from finance leases 0.1 |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate | The following table summarizes weighted average remaining lease term and weighted average discount rate: Three Months Ended March 31, 2019 Weighted Average Remaining Lease Term (Years) Discount Rate Operating leases 3.2 5.7 % Finance leases 3.3 5.4 % |
Schedule of Future Minimum Payments for Operating Leases | The following table provides future minimum payments at March 31, 2019 by year and in the aggregate, having non-cancelable lease terms in excess of one year. Operating Leases Finance Leases 2019 (Remaining) $ 2.8 $ 0.2 2020 3.4 0.2 2021 1.0 0.1 2022 0.3 0.1 2023 0.3 — Thereafter 1.3 — Total $ 9.1 $ 0.6 |
Schedule of Future Minimum Payments for Finance Leases | The following table provides future minimum payments at March 31, 2019 by year and in the aggregate, having non-cancelable lease terms in excess of one year. Operating Leases Finance Leases 2019 (Remaining) $ 2.8 $ 0.2 2020 3.4 0.2 2021 1.0 0.1 2022 0.3 0.1 2023 0.3 — Thereafter 1.3 — Total $ 9.1 $ 0.6 |
Reconciliation of future minimum lease payments and lease liabilities [Table Text Block] | The following table provides reconciliation of future minimum lease payment and lease liability: Three Months Ended Operating Leases Finance Leases Future minimum lease payment $ 9.1 $ 0.6 Less: Unamortized interest 1.1 — Total lease liability $ 8.0 $ 0.6 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | The following table details amounts related to our accounts payable and accrued expenses: March 31, 2019 December 31, 2018 Payables, trade and other $ 78.6 $ 99.5 Employment costs 15.1 25.0 Other accrued expenses 11.7 16.9 Current operating lease liabilities 3.5 — Total $ 108.9 $ 141.4 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Programs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Pension and Postretirement Expenses | The following table summarizes our pension and postretirement expense: Three Months Ended 2019 2018 Defined-benefit pension, U.S. Service cost $ 0.6 $ 0.9 Interest cost 3.8 3.7 Expected return on plan assets (5.4 ) (5.6 ) Amortization of net actuarial loss 2.4 2.7 Total, defined-benefit pension, U.S. $ 1.4 $ 1.7 Defined-benefit pension, Canada Interest cost $ 0.1 $ 0.1 Expected return on plan assets (0.1 ) (0.2 ) Amortization of net actuarial loss 0.1 0.1 Total, defined-benefit pension, Canada $ 0.1 $ — Defined-benefit postretirement, U.S. Service cost $ 0.1 $ 0.1 Interest cost 0.6 0.6 Amortization of net actuarial gains (0.8 ) (0.6 ) Total, defined-benefit postretirement, U.S. $ (0.1 ) $ 0.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the activity, by component, related to the change in AOCI. Foreign Currency Translation Adjustments Derivative Adjustments Pension and Postretirement Adjustments Total Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2018 $ 1.7 $ 0.8 $ (64.1 ) $ (61.6 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , $0.2, $-, and $0.2 2.2 (0.3 ) (0.1 ) 1.8 Amounts reclassified from accumulated other comprehensive income — (0.2 ) 1.3 1.1 Net current period other comprehensive income (loss) 2.2 (0.5 ) 1.2 2.9 Balance, March 31, 2019 $ 3.9 $ 0.3 $ (62.9 ) $ (58.7 ) Balance, December 31, 2017 $ 7.7 $ (1.0 ) $ (59.2 ) $ (52.5 ) Cumulative effect of adoption of ASU 2018-02 as of January 1 — 0.1 (12.7 ) (12.6 ) Other comprehensive income (loss) before reclassifications, net of tax impact of $- , ($0.1), $ -, and ($0.1) 4.7 0.4 (0.1 ) 5.0 Amounts reclassified from accumulated other comprehensive income — 0.4 2.2 2.6 Net current period other comprehensive income (loss) 4.7 0.8 2.1 7.6 Balance, March 31, 2018 $ 12.4 $ (0.1 ) $ (69.8 ) $ (57.5 ) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCI and the affected line item of the Condensed Consolidated Statements of Operations are presented in the table below. Three Months Ended 2019 2018 Affected Line Item Derivative adjustments Foreign exchange contracts - purchases $ (0.1 ) $ 0.1 Cost of goods sold Foreign exchange contracts - purchases — 0.1 Earnings (loss) from discontinued operations Foreign exchange contracts - sales (0.1 ) 0.2 Net sales Foreign exchange contracts - sales — 0.1 Earnings (loss) from discontinued operations Total (income) expense before tax (0.2 ) 0.5 Tax impact — (0.1 ) Income tax (benefit) Total (income) expense, net of tax (0.2 ) 0.4 Pension and postretirement adjustments Amortization of net actuarial loss 1.7 2.2 Other expense, net Total expense before tax 1.7 2.2 Tax impact (0.4 ) — Income tax (benefit) Total expense, net of tax 1.3 2.2 Total reclassifications for the period $ 1.1 $ 2.6 |
Business and Basis of Present_4
Business and Basis of Presentation - Adoption of New Accounting Standard (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | ||||
Operating lease assets | $ 8 | $ 8.6 | $ 0 | |
Finance lease assets | 0.6 | 0.6 | 0 | |
Total lease assets | 8.6 | 9.2 | 0 | |
Current | ||||
Operating | 3.5 | 3.5 | 0 | $ 0 |
Noncurrent | ||||
Operating | 4.5 | 5.1 | 0 | |
Finance | 0.6 | 0.6 | 0 | |
Total lease liabilities | $ 8.6 | 9.2 | $ 0 | |
ASU 2016-02 | ||||
Assets | ||||
Operating lease assets | 8.6 | |||
Finance lease assets | 0.6 | |||
Total lease assets | 9.2 | |||
Current | ||||
Operating | 3.5 | |||
Noncurrent | ||||
Operating | 5.1 | |||
Finance | 0.6 | |||
Total lease liabilities | $ 9.2 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 141.7 | $ 164.3 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 109.3 | 128.6 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11.4 | 10.3 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10 | 16.3 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 11 | $ 9.1 |
Severance Expense (Details)
Severance Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)position | |
Restructuring Cost and Reserve [Line Items] | |
Number of positions eliminated | position | 70 |
Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Severance expenses | $ | $ 3.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) from continuing operations before income taxes | $ (16.9) | $ (10.5) |
Income tax (benefit) | $ (0.3) | $ (0.1) |
Effective tax rate | 1.80% | 1.00% |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of business | $ 90.2 | ||
Net earnings (loss) from discontinued operations | $ 0 | $ 0 | |
Gain on disposal of discontinued operations, net of tax | (0.1) | 0 | |
DLW Subsidiary | Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | 93.6 | ||
Cost of goods sold | 83.6 | ||
Gross profit | 10 | ||
Selling, general and administrative expenses | 10 | ||
Operating earnings (loss) | 0 | ||
Interest expense | 0 | ||
Other expense, net | 0 | ||
Earnings (loss) before income tax | 0 | ||
Income tax expense (benefit) | 0 | ||
Net earnings (loss) from discontinued operations | 0 | ||
Depreciation and Amortization | 3 | ||
Capital Expenditures | $ (2.1) | ||
Loss on disposal of discontinued operations before income tax | (0.1) | ||
Income tax benefit | 0 | ||
Gain on disposal of discontinued operations, net of tax | $ (0.1) |
Earnings (Loss) Per Share of _3
Earnings (Loss) Per Share of Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator | ||
Net (loss) from continuing operations | $ (16.6) | $ (10.4) |
Net (loss) from discontinued operations | (0.1) | 0 |
Net (loss) | $ (16.7) | $ (10.4) |
Denominator | ||
Weighted average number of common shares outstanding (in shares) | 25,851,432 | 25,737,801 |
Weighted average number of vested shares not yet issued (in shares) | 804,356 | 162,818 |
Weighted average number of common shares outstanding - Basic (in shares) | 26,655,788 | 25,900,619 |
Dilutive stock-based compensation awards outstanding (in shares) | 0 | 0 |
Weighted average number of common shares outstanding - Diluted (in shares) | 26,655,788 | 25,900,619 |
Stock compensation performance awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 440,075 | 926,918 |
Performance awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 509,065 | 942,863 |
Accounts and Notes Receivable -
Accounts and Notes Receivable - Receivables Net of Allowances (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Customer receivables | $ 70.8 | $ 45.4 |
Miscellaneous receivables | 3.9 | 6.2 |
Less: allowance for product claims, discounts, returns and losses | (13.7) | (12.6) |
Accounts and notes receivable, net | $ 61 | $ 39 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable - Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance as of January 1, | $ (6.4) | $ (5.6) |
Cumulative effect of adoption of new revenue recognition standard as of January 1 | 0 | (1.7) |
Reductions for payments | 1.5 | 2 |
Current year claim accruals | (1.8) | (1.1) |
Balance as of March 31, | $ (6.7) | $ (6.4) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 115.8 | $ 110.5 |
Goods in process | 6.3 | 5.7 |
Raw materials and supplies | 22.6 | 23.3 |
Total | $ 144.7 | $ 139.5 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Finance Lease, Right-of-Use Asset, Amortization | $ 0.1 |
Operating Lease, Cost | 1 |
Short-term Lease, Cost | 0.5 |
Sublease Income | (0.3) |
Lease, Cost | $ 1.3 |
Leases Lease Supplemental Balan
Leases Lease Supplemental Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | ||||
Operating lease assets | $ 8 | $ 8.6 | $ 0 | |
Finance Lease, Right-of-Use Asset | 0.6 | 0.6 | 0 | |
Total lease assets | 8.6 | 9.2 | 0 | |
Current | ||||
Operating | 3.5 | 3.5 | 0 | $ 0 |
Noncurrent | ||||
Noncurrent operating lease liabilities | 4.5 | 5.1 | 0 | |
Finance | 0.6 | 0.6 | 0 | |
Total lease liabilities | $ 8.6 | $ 9.2 | $ 0 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 1 |
Financing cash flows from finance leases | $ 0.1 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Lease Term and Weighted Average Discount Rate (Details) | Mar. 31, 2019 |
Remaining Lease Term (Years) | |
Operating leases | 3 years 2 months |
Finance leases | 3 years 3 months |
Discount Rate | |
Operating leases | 5.70% |
Finance leases | 5.40% |
Leases Maturity of Lease Liabil
Leases Maturity of Lease Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (Remaining) | $ 2.8 |
2020 | 3.4 |
2021 | 1 |
2022 | 0.3 |
2023 | 0.3 |
Thereafter | 1.3 |
Total | 9.1 |
Finance Leases | |
2019 (Remaining) | 0.2 |
2020 | 0.2 |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0 |
Thereafter | 0 |
Total | $ 0.6 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Future minimum lease payments | $ 20.4 | |
ASU 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Nonlease component | $ 8.2 | |
New accounting pronouncement or change inaccounting principle, effect of adoption, quantification | $ 2.3 |
Leases - Reconciliation of Futu
Leases - Reconciliation of Future Lease Payment and Lease Liability (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
Future minimum lease payment | $ 9.1 |
Less: Unamortized interest | 1.1 |
Total lease liability | 8 |
Finance Leases | |
Future minimum lease payment | 0.6 |
Less: Unamortized interest | 0 |
Total lease liability | $ 0.6 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||
Payables, trade and other | $ 78.6 | $ 99.5 | ||
Employment costs | 15.1 | 25 | ||
Other accrued expenses | 11.7 | 16.9 | ||
Operating lease liability | 3.5 | $ 3.5 | 0 | $ 0 |
Total | $ 108.9 | $ 141.4 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Domestic Plan | Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0.6 | $ 0.9 |
Interest cost | 3.8 | 3.7 |
Expected return on plan assets | (5.4) | (5.6) |
Amortization of net actuarial loss (gains) | 2.4 | 2.7 |
Net benefit cost | 1.4 | 1.7 |
Domestic Plan | Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.6 | 0.6 |
Amortization of net actuarial loss (gains) | (0.8) | (0.6) |
Net benefit cost | (0.1) | 0.1 |
Foreign Plan | Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | 0.1 | 0.1 |
Expected return on plan assets | (0.1) | (0.2) |
Amortization of net actuarial loss (gains) | 0.1 | 0.1 |
Net benefit cost | $ 0.1 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 550 | $ 391 | $ 550 |
Total other comprehensive income | 2.9 | 7.6 | |
Ending balance | 377.6 | 543 | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 7.7 | 1.7 | 7.7 |
Cumulative effect of adoption of ASU 2018-02 as of January 1 | 0 | ||
Other comprehensive (loss) income before reclassifications, net of tax impact | 2.2 | 4.7 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Total other comprehensive income | 2.2 | 4.7 | |
Ending balance | 3.9 | 12.4 | |
AOCI, tax | 0 | 0 | |
Derivative Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1) | 0.8 | (1) |
Cumulative effect of adoption of ASU 2018-02 as of January 1 | 0.1 | ||
Other comprehensive (loss) income before reclassifications, net of tax impact | (0.3) | 0.4 | |
Amounts reclassified from accumulated other comprehensive income | (0.2) | 0.4 | |
Total other comprehensive income | (0.5) | 0.8 | |
Ending balance | 0.3 | (0.1) | |
AOCI, tax | 0.2 | (0.1) | |
Pension and Postretirement Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (59.2) | (64.1) | (59.2) |
Cumulative effect of adoption of ASU 2018-02 as of January 1 | (12.7) | ||
Other comprehensive (loss) income before reclassifications, net of tax impact | (0.1) | (0.1) | |
Amounts reclassified from accumulated other comprehensive income | 1.3 | 2.2 | |
Total other comprehensive income | 1.2 | 2.1 | |
Ending balance | (62.9) | (69.8) | |
AOCI, tax | 0 | 0 | |
Total Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (52.5) | (61.6) | (52.5) |
Cumulative effect of adoption of ASU 2018-02 as of January 1 | (12.6) | ||
Other comprehensive (loss) income before reclassifications, net of tax impact | 1.8 | 5 | |
Amounts reclassified from accumulated other comprehensive income | 1.1 | 2.6 | |
Total other comprehensive income | 2.9 | 7.6 | |
Ending balance | (58.7) | (57.5) | |
AOCI, tax | $ 0.2 | $ (0.1) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold | $ 119.6 | $ 135 |
Net sales | 141.7 | 164.3 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (0.1) | 0 |
Total (income) expense before tax | (16.9) | (10.5) |
Tax impact | (0.3) | (0.1) |
Total (income) expense, net of tax | (16.7) | (10.4) |
Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | 1.1 | 2.6 |
Derivative Adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | (0.2) | 0.4 |
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total (income) expense before tax | (0.2) | 0.5 |
Tax impact | 0 | (0.1) |
Total (income) expense, net of tax | (0.2) | 0.4 |
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Purchases | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold | (0.1) | 0.1 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0.1 |
Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Sales | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | (0.1) | 0.2 |
Amortization of net actuarial loss | Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense, net | 1.7 | 2.2 |
Pension and Postretirement Adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | 1.3 | 2.2 |
Pension and Postretirement Adjustments | Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total (income) expense before tax | 1.7 | 2.2 |
Tax impact | (0.4) | 0 |
Total (income) expense, net of tax | 1.3 | 2.2 |
Discontinued Operations, Disposed of by Sale [Member] | Derivative Adjustments | Reclassification out of accumulated other comprehensive income | Sales | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | $ 0.1 |
Litigation and Related Matters
Litigation and Related Matters (Details) - USD ($) | Jul. 18, 2018 | Jun. 14, 2018 | May 15, 2017 | Jul. 13, 2016 | May 16, 2016 | Jul. 06, 2015 | Jul. 31, 2015 | Dec. 31, 2013 | Mar. 31, 2019 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Environmental liabilities | $ 0 | $ 0 | ||||||||
Armstrong Kushan, multilayered wood flooring imports from China | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Countervailing duties rate | 0.98% | |||||||||
Antidumping duties rate | 3.31% | 0.00% | ||||||||
Armstrong Kushan, multi-layered wood flooring imports from China, second administrative review | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Countervailing duties rate | 0.99% | |||||||||
Antidumping duties rate | 13.74% | |||||||||
Armstrong Kushan, multi-layered wood flooring imports from China, second administrative review | Accounts payable and accrued expenses | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated litigation liability | 5,100,000 | |||||||||
Armstrong Kushan, multi-layered wood flooring imports from China, third administrative review | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Countervailing duties rate | 1.38% | |||||||||
Antidumping duties rate | 17.37% | |||||||||
Armstrong Kushan, multi-layered wood flooring imports from China, third administrative review | Accounts payable and accrued expenses | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated litigation liability | $ 6,300,000 | |||||||||
Armstrong Kushan, multi-layered wood flooring imports from China, fourth administrative review | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Countervailing duties rate | 0.85% | 1.06% | ||||||||
Antidumping duties rate | 0.00% |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 25 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | May 07, 2019 | Mar. 06, 2017 | |
Subsequent Event [Line Items] | ||||
Stock repurchase program, authorized amount | $ 50 | |||
Common stock repurchased (in shares) | 2.5 | |||
Common stock repurchased, value | $ 41 | |||
Common stock repurchased (in dollars per share) | $ 16.23 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Share repurchase program, additional shares authorized | $ 50 |
Uncategorized Items - afi-20190
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,100,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,100,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 12,600,000 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (12,600,000) |