|
☑
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
47-4303305
|
||||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. employer Identification number)
|
||||
|
|
|
|
|
|
|
2500 Columbia Avenue,
|
Lancaster,
|
PA
|
|
|
17603
|
|
(Address of principal executive offices)
|
|
(Zipcode)
|
|
(717)
|
672-9611
|
|
(Registrant’s telephone number, including area code)
|
Securities registered pursuant to Section 12(b) of the Act:
|
|||
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Common Stock, $0.0001 par value
|
AFI
|
New York Stock Exchange
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☑
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☑
|
|
|
Emerging growth company
|
☐
|
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Page Number
|
|
||
PART I
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
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|
PART II
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
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|
|
PART III
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
PART IV
|
|
|
Item 15.
|
||
Item 16.
|
||
|
|
|
|
|
|
•
|
global economic conditions;
|
•
|
competition;
|
•
|
availability and costs of raw materials and energy;
|
•
|
key customers;
|
•
|
construction activity;
|
•
|
execution of strategy;
|
•
|
international operations;
|
•
|
debt covenants;
|
•
|
liquidity;
|
•
|
debt;
|
•
|
information systems and transition services;
|
•
|
personnel;
|
•
|
intellectual property rights;
|
•
|
claims and litigation;
|
•
|
labor;
|
•
|
internal controls
|
•
|
environmental and regulatory matters;
|
•
|
outsourcing; and
|
•
|
other risks detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"), press releases and other communications, including those set forth under “Risk Factors” included elsewhere in this Form 10-K and in the documents incorporated by reference.
|
North American Commercial
|
|
North American Residential
|
|
Outside of North America
|
|
|
||||||
New
|
|
Renovation
|
|
New
|
|
Renovation
|
|
New
|
|
Renovation
|
|
Total
|
10%
|
|
35%
|
|
5%
|
|
30%
|
|
15%
|
|
5%
|
|
100%
|
•
|
the financial stability of our customers or suppliers may be compromised, which could result in additional bad debts for us or non-performance by suppliers;
|
•
|
commercial and residential consumers of our products may postpone spending in response to tighter credit, negative financial news and/or stagnation or further declines in income or asset values, which could have a material adverse impact on the demand for our product;
|
•
|
the fair value of the investment funds underlying our defined-benefit pension plans may decline, which could result in negative plan investment performance and additional charges, and may involve significant cash contributions to such plans to meet obligations or regulatory requirements; and
|
•
|
our asset impairment assessments and underlying valuation assumptions may change, which could result from changes to estimates of future sales and cash flows that may lead to substantial impairment charges.
|
•
|
make it more difficult for us to satisfy our obligations with respect to our indebtedness;
|
•
|
make us more vulnerable to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
|
•
|
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
|
•
|
place us at a competitive disadvantage compared to our competitors that are less leveraged and, therefore, more able to take advantage of opportunities that our leverage prevents us from pursuing;
|
•
|
limit our ability to refinance existing indebtedness or borrow additional amounts for working capital, capital expenditures, acquisitions, debt service requirements, execution of our business strategy or other purposes;
|
•
|
restrict our ability to pay dividends on our capital stock; and
|
•
|
adversely affect our credit ratings.
|
•
|
the inability of our stockholders to call a special meeting;
|
•
|
rules regarding how stockholders may present proposals or nominate directors for election at stockholder meetings;
|
•
|
the right of our board of directors to issue preferred stock without stockholder approval;
|
•
|
a provision that directors serving on a classified board may be removed by stockholders only for cause; and
|
•
|
the ability of our directors, and not stockholders, to fill vacancies on our board of directors.
|
Period
|
Total Number of Shares Purchased 1
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Programs
|
|||||
October 1 - 31, 2019
|
164
|
|
|
$6.09
|
|
—
|
|
|
—
|
|
||
November 1 - 30, 2019
|
14,861
|
|
|
$6.60
|
|
—
|
|
|
—
|
|
||
December 1 - 31, 2019
|
62
|
|
|
|
$4.26
|
|
|
—
|
|
|
—
|
|
Total
|
15,087
|
|
|
|
|
—
|
|
|
—
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(Dollars in millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Income statement data
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
626.3
|
|
|
$
|
728.2
|
|
|
$
|
704.1
|
|
|
$
|
710.1
|
|
|
$
|
716.9
|
|
Operating (loss)
|
(61.1
|
)
|
|
(17.4
|
)
|
|
(12.7
|
)
|
|
(12.5
|
)
|
|
(11.7
|
)
|
|||||
(Loss) from continuing operations
|
(68.9
|
)
|
|
(19.1
|
)
|
|
(17.1
|
)
|
|
(16.2
|
)
|
|
(6.4
|
)
|
|||||
Per common share - basic (1)
|
$
|
(2.85
|
)
|
|
$
|
(0.73
|
)
|
|
$
|
(0.63
|
)
|
|
$
|
(0.58
|
)
|
|
$
|
(0.23
|
)
|
Per common share - diluted (1)
|
(2.85
|
)
|
|
(0.73
|
)
|
|
(0.63
|
)
|
|
(0.58
|
)
|
|
(0.23
|
)
|
|||||
Dividends declared per share of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance sheet data (end of period)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
502.2
|
|
|
$
|
708.2
|
|
|
$
|
890.1
|
|
|
$
|
904.4
|
|
|
$
|
870.6
|
|
Long-term debt
|
42.5
|
|
|
70.6
|
|
|
85.0
|
|
|
20.0
|
|
|
10.2
|
|
|
Year Ended December 31,
|
|||||||||||||
|
|
|
|
|
Change
|
|||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net sales
|
$
|
626.3
|
|
|
$
|
728.2
|
|
|
$
|
(101.9
|
)
|
|
(14.0
|
)%
|
Cost of goods sold
|
541.0
|
|
|
585.0
|
|
|
(44.0
|
)
|
|
(7.5
|
)%
|
|||
Gross profit
|
85.3
|
|
|
143.2
|
|
|
(57.9
|
)
|
|
(40.4
|
)%
|
|||
Selling, general and administrative expenses
|
146.4
|
|
|
160.6
|
|
|
(14.2
|
)
|
|
(8.8
|
)%
|
|||
Operating (loss)
|
(61.1
|
)
|
|
(17.4
|
)
|
|
(43.7
|
)
|
|
NM
|
|
|||
Interest expense
|
4.4
|
|
|
4.8
|
|
|
(0.4
|
)
|
|
|
||||
Other expense, net
|
1.8
|
|
|
2.9
|
|
|
(1.1
|
)
|
|
|
||||
(Loss) from continuing operations before income taxes
|
(67.3
|
)
|
|
(25.1
|
)
|
|
(42.2
|
)
|
|
|
||||
Income tax expense (benefit)
|
1.6
|
|
|
(6.0
|
)
|
|
7.6
|
|
|
|
||||
(Loss) from continuing operations
|
(68.9
|
)
|
|
(19.1
|
)
|
|
(49.8
|
)
|
|
|
||||
Earnings (loss) from discontinued operations, net of tax
|
—
|
|
|
9.9
|
|
|
(9.9
|
)
|
|
|
||||
Gain (loss) on disposal of discontinued operations, net of tax
|
10.4
|
|
|
(153.8
|
)
|
|
164.2
|
|
|
|
||||
Net earnings (loss) from discontinued operations
|
$
|
10.4
|
|
|
$
|
(143.9
|
)
|
|
$
|
154.3
|
|
|
|
|
Net (loss)
|
$
|
(58.5
|
)
|
|
$
|
(163.0
|
)
|
|
$
|
104.5
|
|
|
|
|
Year Ended December 31,
|
|
Change
|
|
Percentage Point Change Due to
|
|||||||||||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
Price
|
|
Volume
|
|
Mix
|
|
Currency
|
|||||||||||
|
$
|
626.3
|
|
|
$
|
728.2
|
|
|
$
|
(101.9
|
)
|
|
(14.0
|
)%
|
|
(0.1
|
)
|
|
(9.8
|
)
|
|
(3.2
|
)
|
|
(0.9
|
)
|
|
Year Ended December 31,
|
|||||||||||||
|
|
|
|
|
Change
|
|||||||||
(Dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales
|
$
|
728.2
|
|
|
$
|
704.1
|
|
|
$
|
24.1
|
|
|
3.4
|
%
|
Cost of goods sold
|
585.0
|
|
|
553.0
|
|
|
32.0
|
|
|
5.8
|
%
|
|||
Gross profit
|
143.2
|
|
|
151.1
|
|
|
(7.9
|
)
|
|
(5.2
|
)%
|
|||
Selling, general and administrative expenses
|
160.6
|
|
|
163.8
|
|
|
(3.2
|
)
|
|
(2.0
|
)%
|
|||
Operating (loss)
|
(17.4
|
)
|
|
(12.7
|
)
|
|
(4.7
|
)
|
|
NM
|
|
|||
Interest expense
|
4.8
|
|
|
2.7
|
|
|
2.1
|
|
|
|
||||
Other expense, net
|
2.9
|
|
|
3.7
|
|
|
(0.8
|
)
|
|
|
||||
(Loss) from continuing operations before income taxes
|
(25.1
|
)
|
|
(19.1
|
)
|
|
(6.0
|
)
|
|
|
||||
Income tax (benefit)
|
(6.0
|
)
|
|
(2.0
|
)
|
|
(4.0
|
)
|
|
|
||||
(Loss) from continuing operations
|
(19.1
|
)
|
|
(17.1
|
)
|
|
(2.0
|
)
|
|
|
||||
Earnings (loss) earnings from discontinued operations, net of tax
|
9.9
|
|
|
(24.7
|
)
|
|
34.6
|
|
|
|
||||
(Loss) on disposal of discontinued operations, net of tax
|
(153.8
|
)
|
|
—
|
|
|
(153.8
|
)
|
|
|
||||
Net (loss) from discontinued operations
|
$
|
(143.9
|
)
|
|
$
|
(24.7
|
)
|
|
$
|
(119.2
|
)
|
|
|
|
Net (loss)
|
$
|
(163.0
|
)
|
|
$
|
(41.8
|
)
|
|
$
|
(121.2
|
)
|
|
|
|
Year Ended December 31,
|
|
Change
|
|
Percentage Point Change Due to
|
|||||||||||||||||||||
(Dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
Price
|
|
Volume
|
|
Mix
|
|
Currency
|
|||||||||||
|
$
|
728.2
|
|
|
$
|
704.1
|
|
|
$
|
24.1
|
|
|
3.4
|
%
|
|
1.0
|
|
|
(2.2
|
)
|
|
4.5
|
|
|
0.1
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash (used for) provided by operating activities
|
$
|
(6.0
|
)
|
|
$
|
62.5
|
|
|
$
|
62.9
|
|
Cash (used for) provided by investing activities
|
(29.4
|
)
|
|
60.6
|
|
|
(80.5
|
)
|
|||
Cash (used for) provided by financing activities
|
(111.1
|
)
|
|
13.3
|
|
|
24.4
|
|
(Dollars in millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42.2
|
|
Operating lease obligations (1)
|
3.6
|
|
|
1.3
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
1.1
|
|
|
6.7
|
|
|||||||
Finance lease obligation
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|||||||
Scheduled interest and fee payments (2)
|
2.0
|
|
|
2.0
|
|
|
2.8
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|||||||
Unconditional purchase obligations (3)
|
14.6
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.0
|
|
|||||||
Pension contributions (4)
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||||
Other obligations(5)
|
10.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.1
|
|
|||||||
Total contractual obligations
|
$
|
30.8
|
|
|
$
|
4.9
|
|
|
$
|
3.2
|
|
|
$
|
45.8
|
|
|
$
|
0.2
|
|
|
$
|
1.1
|
|
|
$
|
86.0
|
|
(Dollars in millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|||||||||
Other Commercial Commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Letters of credit
|
$
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
3.9
|
|
(Dollars in millions)
|
Maturing in 2020
|
|
Maturing in 2021
|
|
Total
|
||||||
On Balance Sheet Foreign Exchange Related Derivatives
|
|
|
|
|
|
||||||
Notional amounts
|
$
|
36.0
|
|
|
$
|
3.7
|
|
|
$
|
39.7
|
|
Liabilities at fair value, net
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|
Page Number
|
Financial Statements:
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales
|
$
|
626.3
|
|
|
$
|
728.2
|
|
|
$
|
704.1
|
|
Cost of goods sold
|
541.0
|
|
|
585.0
|
|
|
553.0
|
|
|||
Gross profit
|
85.3
|
|
|
143.2
|
|
|
151.1
|
|
|||
Selling, general and administrative expenses
|
146.4
|
|
|
160.6
|
|
|
163.8
|
|
|||
Operating (loss)
|
(61.1
|
)
|
|
(17.4
|
)
|
|
(12.7
|
)
|
|||
Interest expense
|
4.4
|
|
|
4.8
|
|
|
2.7
|
|
|||
Other expense, net
|
1.8
|
|
|
2.9
|
|
|
3.7
|
|
|||
(Loss) from continuing operations before income taxes
|
(67.3
|
)
|
|
(25.1
|
)
|
|
(19.1
|
)
|
|||
Income tax expense (benefit)
|
1.6
|
|
|
(6.0
|
)
|
|
(2.0
|
)
|
|||
(Loss) from continuing operations
|
(68.9
|
)
|
|
(19.1
|
)
|
|
(17.1
|
)
|
|||
Earnings (loss) from discontinued operations, net of tax
|
—
|
|
|
9.9
|
|
|
(24.7
|
)
|
|||
Gain (loss) on disposal of discontinued operations, net of tax
|
10.4
|
|
|
(153.8
|
)
|
|
—
|
|
|||
Net earnings (loss) from discontinued operations
|
10.4
|
|
|
(143.9
|
)
|
|
(24.7
|
)
|
|||
Net (loss)
|
$
|
(58.5
|
)
|
|
$
|
(163.0
|
)
|
|
$
|
(41.8
|
)
|
|
|
|
|
|
|
||||||
Basic (loss) per share of common stock:
|
|
|
|
|
|||||||
Basic (loss) per share of common stock from continuing operations
|
$
|
(2.85
|
)
|
|
$
|
(0.73
|
)
|
|
$
|
(0.63
|
)
|
Basic earnings (loss) per share of common stock from discontinued operations
|
0.43
|
|
|
(5.54
|
)
|
|
(0.91
|
)
|
|||
Basic (loss) per share of common stock
|
$
|
(2.42
|
)
|
|
$
|
(6.27
|
)
|
|
$
|
(1.54
|
)
|
Diluted (loss) per share of common stock:
|
|
|
|
|
|||||||
Diluted (loss) per share of common stock from continuing operations
|
$
|
(2.85
|
)
|
|
$
|
(0.73
|
)
|
|
$
|
(0.63
|
)
|
Diluted earnings (loss) per share of common stock from discontinued operations
|
0.43
|
|
|
(5.54
|
)
|
|
(0.91
|
)
|
|||
Diluted (loss) per share of common stock
|
$
|
(2.42
|
)
|
|
$
|
(6.27
|
)
|
|
$
|
(1.54
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net (loss)
|
$
|
(58.5
|
)
|
|
$
|
(163.0
|
)
|
|
$
|
(41.8
|
)
|
Changes in other comprehensive (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(2.2
|
)
|
|
(6.0
|
)
|
|
7.2
|
|
|||
Derivatives (loss) gain
|
(1.4
|
)
|
|
1.7
|
|
|
(1.5
|
)
|
|||
Pension and postretirement adjustments
|
(9.5
|
)
|
|
7.8
|
|
|
1.6
|
|
|||
Total other comprehensive (loss) income
|
(13.1
|
)
|
|
3.5
|
|
|
7.3
|
|
|||
Total comprehensive (loss)
|
$
|
(71.6
|
)
|
|
$
|
(159.5
|
)
|
|
$
|
(34.5
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash
|
$
|
27.1
|
|
|
$
|
173.8
|
|
Accounts and notes receivable, net
|
36.1
|
|
|
39.0
|
|
||
Inventories, net
|
111.6
|
|
|
139.5
|
|
||
Income tax receivable
|
0.7
|
|
|
0.6
|
|
||
Prepaid expenses and other current assets
|
10.0
|
|
|
18.0
|
|
||
Total current assets
|
185.5
|
|
|
370.9
|
|
||
Property, plant and equipment, less accumulated depreciation and amortization of $318.4 and $318.8, respectively
|
277.2
|
|
|
296.1
|
|
||
Operating lease assets
|
6.0
|
|
|
—
|
|
||
Intangible assets, less accumulated amortization of $19.0 and $12.0, respectively
|
25.4
|
|
|
32.0
|
|
||
Deferred income taxes
|
5.3
|
|
|
5.6
|
|
||
Other noncurrent assets
|
2.8
|
|
|
3.6
|
|
||
Total assets
|
$
|
502.2
|
|
|
$
|
708.2
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
—
|
|
|
$
|
25.0
|
|
Current installments of long-term debt
|
0.2
|
|
|
3.7
|
|
||
Accounts payable and accrued expenses
|
104.4
|
|
|
141.4
|
|
||
Income tax payable
|
—
|
|
|
0.5
|
|
||
Total current liabilities
|
104.6
|
|
|
170.6
|
|
||
Long-term debt
|
42.5
|
|
|
70.6
|
|
||
Noncurrent operating lease liabilities
|
2.7
|
|
|
—
|
|
||
Postretirement benefit liabilities
|
59.7
|
|
|
55.7
|
|
||
Pension benefit liabilities
|
16.0
|
|
|
11.3
|
|
||
Other long-term liabilities
|
5.8
|
|
|
6.7
|
|
||
Noncurrent income taxes payable
|
0.2
|
|
|
0.2
|
|
||
Deferred income taxes
|
2.4
|
|
|
2.1
|
|
||
Total liabilities
|
233.9
|
|
|
317.2
|
|
||
Stockholders' equity:
|
|
|
|
||||
Common stock with par value $.0001 per share: 100,000,000 shares authorized; 28,357,658 issued and 21,519,761 outstanding shares as of December 31, 2019 and 28,284,358 issued and 25,832,193 outstanding shares as of December 31, 2018
|
—
|
|
|
—
|
|
||
Preferred stock with par value $.0001 per share: 15,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Treasury stock, at cost, 6,837,897 shares as of December 31, 2019 and 2,452,165 shares as of December 31, 2018
|
(88.9
|
)
|
|
(39.7
|
)
|
||
Additional paid-in capital
|
676.7
|
|
|
678.6
|
|
||
Accumulated deficit
|
(244.8
|
)
|
|
(186.3
|
)
|
||
Accumulated other comprehensive (loss)
|
(74.7
|
)
|
|
(61.6
|
)
|
||
Total stockholders' equity
|
268.3
|
|
|
391.0
|
|
||
Total liabilities and stockholders' equity
|
$
|
502.2
|
|
|
$
|
708.2
|
|
|
|
|
|
|
|
|
|
|
Net AWI Investment
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings (Accumulated Deficit)
|
|
Total Equity
|
||||||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|||||||||||||||||||||
December 31, 2016
|
27,895,671
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
673.3
|
|
|
$
|
(59.8
|
)
|
|
$
|
10.0
|
|
|
$
|
623.5
|
|
Net (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41.8
|
)
|
|
(41.8
|
)
|
|||||||
Net transfers (to) AWI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||||
Repurchase of common stock
|
(2,455,604
|
)
|
|
—
|
|
|
2,455,604
|
|
|
(40.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40.0
|
)
|
|||||||
Reclassification of net parent investment to additional paid-in capital
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock-based employee compensation, net
|
294,155
|
|
|
—
|
|
|
(6,608
|
)
|
|
0.1
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
7.3
|
|
|||||||
December 31, 2017
|
25,734,222
|
|
|
$
|
—
|
|
|
2,448,996
|
|
|
$
|
(39.9
|
)
|
|
$
|
—
|
|
|
$
|
674.2
|
|
|
$
|
(52.5
|
)
|
|
$
|
(31.8
|
)
|
|
$
|
550.0
|
|
Cumulative effect of adoption of ASC 606 new revenue recognition standard as of January 1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
(4.1
|
)
|
|||||||
Cumulative effect of adoption on ASU 2018-02 related to tax reform as of January 1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.6
|
)
|
|
12.6
|
|
|
—
|
|
|||||||
Net (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(163.0
|
)
|
|
(163.0
|
)
|
|||||||
Repurchase of common stock
|
(69,353
|
)
|
|
—
|
|
|
69,353
|
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|||||||
Stock-based employee compensation, net
|
167,324
|
|
|
—
|
|
|
(66,184
|
)
|
|
1.2
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|||||||
December 31, 2018
|
25,832,193
|
|
|
$
|
—
|
|
|
2,452,165
|
|
|
$
|
(39.7
|
)
|
|
$
|
—
|
|
|
$
|
678.6
|
|
|
$
|
(61.6
|
)
|
|
$
|
(186.3
|
)
|
|
$
|
391.0
|
|
Net (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(58.5
|
)
|
|
(58.5
|
)
|
||||||||||||||
Repurchase of common stock
|
(4,504,504
|
)
|
|
—
|
|
|
4,504,504
|
|
|
(51.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51.4
|
)
|
|||||||
Stock-based employee compensation, net
|
192,072
|
|
|
—
|
|
|
(118,772
|
)
|
|
2.2
|
|
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||||
Other comprehensive (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.1
|
)
|
|
—
|
|
|
(13.1
|
)
|
|||||||
December 31, 2019
|
21,519,761
|
|
|
$
|
—
|
|
|
6,837,897
|
|
|
$
|
(88.9
|
)
|
|
$
|
—
|
|
|
$
|
676.7
|
|
|
$
|
(74.7
|
)
|
|
$
|
(244.8
|
)
|
|
$
|
268.3
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net (loss)
|
$
|
(58.5
|
)
|
|
$
|
(163.0
|
)
|
|
$
|
(41.8
|
)
|
Adjustments to reconcile net (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
50.7
|
|
|
55.1
|
|
|
78.7
|
|
|||
(Gain) loss on disposal of discontinued operations
|
(10.4
|
)
|
|
153.8
|
|
|
—
|
|
|||
Intangible asset impairment
|
—
|
|
|
—
|
|
|
12.5
|
|
|||
Inventory write down
|
13.6
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
1.1
|
|
|
2.4
|
|
|
(3.0
|
)
|
|||
Stock-based compensation
|
1.2
|
|
|
5.4
|
|
|
2.2
|
|
|||
U.S. pension expense
|
5.6
|
|
|
6.8
|
|
|
8.9
|
|
|||
Write off of debt financing costs
|
0.8
|
|
|
0.6
|
|
|
—
|
|
|||
Other non-cash adjustments, net
|
0.2
|
|
|
(0.8
|
)
|
|
(0.6
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
2.9
|
|
|
16.3
|
|
|
(2.5
|
)
|
|||
Inventories
|
14.1
|
|
|
(39.4
|
)
|
|
30.4
|
|
|||
Accounts payable and accrued expenses
|
(26.0
|
)
|
|
16.8
|
|
|
(10.5
|
)
|
|||
Income taxes payable and receivable
|
(0.5
|
)
|
|
2.8
|
|
|
(3.0
|
)
|
|||
Other assets and liabilities
|
(0.8
|
)
|
|
5.7
|
|
|
(8.4
|
)
|
|||
Net cash (used for) provided by operating activities
|
(6.0
|
)
|
|
62.5
|
|
|
62.9
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
(28.9
|
)
|
|
(35.3
|
)
|
|
(44.8
|
)
|
|||
Net (payments) proceeds related to sale of discontinued operations
|
(1.9
|
)
|
|
90.2
|
|
|
—
|
|
|||
Proceeds from the sale of assets
|
1.4
|
|
|
5.7
|
|
|
0.4
|
|
|||
Cash paid for acquisition
|
—
|
|
|
—
|
|
|
(36.1
|
)
|
|||
Net cash (used for) provided by investing activities
|
(29.4
|
)
|
|
60.6
|
|
|
(80.5
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from revolving credit facility
|
47.2
|
|
|
82.0
|
|
|
90.0
|
|
|||
Payments on revolving credit facility
|
(30.0
|
)
|
|
(142.0
|
)
|
|
(25.0
|
)
|
|||
Issuance of long-term debt
|
—
|
|
|
75.0
|
|
|
—
|
|
|||
Payments of long-term debt
|
(75.3
|
)
|
|
—
|
|
|
—
|
|
|||
Financing costs
|
(0.8
|
)
|
|
(0.7
|
)
|
|
—
|
|
|||
Payments on capital lease
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
Purchases of treasury stock
|
(51.4
|
)
|
|
(1.0
|
)
|
|
(40.0
|
)
|
|||
Proceeds from exercised stock options
|
0.1
|
|
|
0.8
|
|
|
1.4
|
|
|||
Value of shares withheld related to employee tax withholding
|
(0.9
|
)
|
|
(0.6
|
)
|
|
(1.8
|
)
|
|||
Net cash (used for) provided by financing activities
|
(111.1
|
)
|
|
13.3
|
|
|
24.4
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(0.2
|
)
|
|
(1.6
|
)
|
|
1.6
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
(146.7
|
)
|
|
134.8
|
|
|
8.4
|
|
|||
Cash and cash equivalents at beginning of year
|
173.8
|
|
|
39.0
|
|
|
30.6
|
|
|||
Cash and cash equivalents at end of year
|
$
|
27.1
|
|
|
$
|
173.8
|
|
|
$
|
39.0
|
|
Cash and cash equivalents at end of year from discontinued operations
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||
Cash and cash equivalents at end of year of continuing operations
|
$
|
27.1
|
|
|
$
|
173.8
|
|
|
$
|
40.1
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Supplemental Cash Flow Disclosure:
|
|
|
|
|
|
||||||
Amounts in accounts payable for capital expenditures
|
$
|
5.6
|
|
|
$
|
8.5
|
|
|
$
|
7.8
|
|
Interest paid
|
3.1
|
|
|
3.4
|
|
|
2.8
|
|
|||
Income taxes (refunded) paid, net
|
1.0
|
|
|
(1.4
|
)
|
|
(2.8
|
)
|
|
December 31, 2018
|
|
Impact of 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
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net trade sales
|
|
|
|
|
|
||||||
United States
|
$
|
474.4
|
|
|
$
|
563.4
|
|
|
$
|
549.9
|
|
China
|
68.4
|
|
|
68.7
|
|
|
59.3
|
|
|||
Canada
|
37.9
|
|
|
49.2
|
|
|
48.6
|
|
|||
Other
|
45.6
|
|
|
46.9
|
|
|
46.3
|
|
|||
Total
|
$
|
626.3
|
|
|
$
|
728.2
|
|
|
$
|
704.1
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
United States
|
$
|
192.3
|
|
|
$
|
205.9
|
|
China
|
72.7
|
|
|
78.0
|
|
||
Other
|
12.2
|
|
|
12.2
|
|
||
Total
|
$
|
277.2
|
|
|
$
|
296.1
|
|
|
2017
|
||
Weighted-average grant-date fair value
|
$
|
15.41
|
|
|
|
||
Assumptions
|
|
||
Risk-free rate of return
|
1.6
|
%
|
|
Expected volatility
|
31.4
|
%
|
|
Expected term (in years)
|
3.0
|
|
|
Expected dividend yield
|
—
|
|
|
2019
|
||
Grant-date stock price (AFI closing stock price on September 11, 2019)
|
$
|
7.43
|
|
|
|
||
Assumptions
|
|
||
Risk-free rate of return
|
1.59
|
%
|
|
Expected volatility
|
41.45
|
%
|
|
Expected dividend yield
|
—
|
|
|
2019
|
|
2018
|
|
Vested and not yet delivered as of December 31
|
203,261
|
|
|
174,442
|
Granted
|
57,012
|
|
|
67,288
|
Outstanding as of December 31
|
260,273
|
|
|
241,730
|
|
|
Number of Shares (in thousands)
|
|
Weighted-Average Exercise Price (per share)
|
|
Weighted-Average Remaining Contractual Term (years)
|
|
Aggregate Intrinsic Value (in millions)
|
|||||
Outstanding as of December 31, 2018
|
|
453.5
|
|
|
$
|
12.89
|
|
|
3.6
|
|
$
|
0.2
|
|
Exercised
|
|
(5.7
|
)
|
|
13.98
|
|
|
|
|
|
|||
Cancelled
|
|
(5.7
|
)
|
|
14.55
|
|
|
|
|
|
|||
Outstanding as of December 31, 2019
|
|
442.1
|
|
|
12.85
|
|
|
2.7
|
|
—
|
|
||
Options exercisable
|
|
442.1
|
|
|
12.85
|
|
|
2.7
|
|
—
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Total intrinsic value of stock options exercised
|
$
|
—
|
|
|
$
|
0.3
|
|
Cash proceeds received from stock options exercised
|
0.1
|
|
|
0.8
|
|
|
|
PSAs, PSUs and PBRSUs
|
|
RSUs
|
||||||||||
|
|
Number of Shares (in thousands)
|
|
Weighted-Average Grant-Date Fair Value (per share)
|
|
Number of Shares (in thousands)
|
|
Weighted-Average Grant-Date Fair Value (per share)
|
||||||
Non-vested as of December 31, 2018
|
|
1,102.5
|
|
|
$
|
13.88
|
|
|
324.6
|
|
|
$
|
16.13
|
|
Granted
|
|
572.3
|
|
|
7.75
|
|
|
622.8
|
|
|
7.39
|
|
||
Vested
|
|
(108.8
|
)
|
|
19.90
|
|
|
(116.9
|
)
|
|
15.82
|
|
||
Cancelled
|
|
(437.5
|
)
|
|
12.73
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
|
(260.2
|
)
|
|
13.76
|
|
|
(159.7
|
)
|
|
15.18
|
|
||
Non-vested as of December 31, 2019
|
|
868.3
|
|
|
10.53
|
|
|
670.8
|
|
|
8.28
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Stock-based compensation expense
|
$
|
1.2
|
|
|
$
|
4.7
|
|
|
$
|
1.5
|
|
Income tax benefit
|
—
|
|
|
1.1
|
|
|
0.8
|
|
•
|
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 the lease renewals, termination options and purchase options, and in assessing impairment of the right-of-use asset 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.
|
|
|
Year Ended
|
||
|
|
December 31, 2019
|
||
Finance lease cost
|
|
|
||
Amortization of right-of-use asset
|
|
$
|
0.3
|
|
Operating lease cost
|
|
4.1
|
|
|
Short-term lease cost
|
|
1.4
|
|
|
Sublease income
|
|
(1.4
|
)
|
|
Total lease cost
|
|
$
|
4.4
|
|
|
Balance Sheet Classification
|
December 31, 2019
|
||
Assets
|
|
|
||
Operating lease assets
|
Operating lease assets
|
$
|
6.0
|
|
Finance lease assets
|
Property, plant and equipment, less accumulated depreciation
|
0.6
|
|
|
Total lease assets
|
|
$
|
6.6
|
|
|
|
|
||
Liabilities
|
|
|
||
Current
|
|
|
||
Operating
|
Accounts payable and accrued expenses
|
$
|
3.3
|
|
Finance
|
Current installments of long-term debt
|
0.2
|
|
|
Noncurrent
|
|
|
||
Operating
|
Noncurrent operating lease liabilities
|
2.7
|
|
|
Finance
|
Long-term debt
|
0.3
|
|
|
Total lease liabilities
|
|
$
|
6.5
|
|
|
|
Year Ended
|
||
|
|
December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
4.1
|
|
Financing cash flows from finance leases
|
|
$
|
0.3
|
|
|
|
December 31, 2019
|
|||
|
|
Weighted Average
|
|||
|
|
Remaining Lease Term (Years)
|
|
Discount Rate
|
|
|
|
|
|
|
|
Operating leases
|
|
3.5
|
|
6.0
|
%
|
Finance leases
|
|
3.2
|
|
5.4
|
%
|
|
|
Operating Leases
|
Finance Leases
|
||||
2020
|
|
$
|
3.6
|
|
$
|
0.3
|
|
2021
|
|
1.3
|
|
0.2
|
|
||
2022
|
|
0.3
|
|
0.1
|
|
||
2023
|
|
0.2
|
|
—
|
|
||
2024
|
|
0.2
|
|
—
|
|
||
Thereafter
|
|
1.1
|
|
—
|
|
||
Total
|
|
$
|
6.7
|
|
$
|
0.6
|
|
|
|
Total Minimum Lease Payments
|
||
Scheduled minimum lease payments
|
|
|
||
2019
|
|
$
|
10.0
|
|
2020
|
|
7.1
|
|
|
2021
|
|
2.0
|
|
|
2022
|
|
0.3
|
|
|
2023
|
|
0.2
|
|
|
Thereafter
|
|
0.8
|
|
|
Total
|
|
$
|
20.4
|
|
|
|
December 31, 2019
|
|||||
|
|
Operating Leases
|
Finance Leases
|
||||
Future minimum lease payments
|
|
$
|
6.7
|
|
$
|
0.6
|
|
Less: Unamortized interest
|
|
0.7
|
|
0.1
|
|
||
Total lease liability
|
|
$
|
6.0
|
|
$
|
0.5
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
$
|
(65.6
|
)
|
|
$
|
(28.1
|
)
|
|
$
|
(18.0
|
)
|
Foreign
|
(1.7
|
)
|
|
3.0
|
|
|
(1.1
|
)
|
|||
Total
|
$
|
(67.3
|
)
|
|
$
|
(25.1
|
)
|
|
$
|
(19.1
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Continuing operations tax at statutory rate
|
$
|
(14.1
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(6.7
|
)
|
Increase in valuation allowances on deferred federal income tax assets
|
14.3
|
|
|
0.2
|
|
|
—
|
|
|||
Increase in valuation allowances on deferred state income tax assets
|
2.1
|
|
|
0.7
|
|
|
5.2
|
|
|||
State income tax benefit, net of federal benefit
|
(1.8
|
)
|
|
(0.6
|
)
|
|
(0.8
|
)
|
|||
Tax on foreign and foreign-source income
|
1.2
|
|
|
1.1
|
|
|
(1.4
|
)
|
|||
Permanent book/tax differences
|
1.1
|
|
|
1.7
|
|
|
0.6
|
|
|||
Research and development credits
|
(0.9
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|||
Increase/(decrease) in valuation allowances on deferred foreign income tax assets
|
0.1
|
|
|
(3.4
|
)
|
|
2.0
|
|
|||
State law changes, net of federal benefit
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||
Impact of Tax Reform Act
|
—
|
|
|
0.1
|
|
|
0.8
|
|
|||
Other
|
(0.4
|
)
|
|
0.1
|
|
|
0.1
|
|
|||
Total
|
$
|
1.6
|
|
|
$
|
(6.0
|
)
|
|
$
|
(2.0
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Deferred income tax assets (liabilities)
|
|
|
|
||||
Postretirement and postemployment benefits
|
$
|
17.5
|
|
|
$
|
16.7
|
|
Net operating losses
|
25.1
|
|
|
19.3
|
|
||
Accrued expenses
|
4.2
|
|
|
9.1
|
|
||
Deferred compensation
|
2.6
|
|
|
5.5
|
|
||
Customer claims reserves
|
4.2
|
|
|
2.9
|
|
||
Goodwill
|
2.2
|
|
|
2.2
|
|
||
Pension benefit liabilities
|
3.5
|
|
|
2.3
|
|
||
Tax credit carryforwards
|
3.4
|
|
|
2.6
|
|
||
Intangibles
|
2.8
|
|
|
1.7
|
|
||
Other
|
2.6
|
|
|
0.8
|
|
||
Total deferred income tax assets
|
68.1
|
|
|
63.1
|
|
||
Valuation allowances
|
(35.8
|
)
|
|
(29.7
|
)
|
||
Net deferred income tax assets
|
32.3
|
|
|
33.4
|
|
||
Accumulated depreciation
|
(20.6
|
)
|
|
(20.2
|
)
|
||
Inventories
|
(6.7
|
)
|
|
(8.7
|
)
|
||
Other
|
(2.1
|
)
|
|
(1.0
|
)
|
||
Total deferred income tax liabilities
|
(29.4
|
)
|
|
(29.9
|
)
|
||
Net deferred income tax assets
|
$
|
2.9
|
|
|
$
|
3.5
|
|
Deferred income taxes have been classified in the Consolidated Balance Sheet as:
|
|
|
|
||||
Deferred income tax assets—noncurrent
|
$
|
5.3
|
|
|
$
|
5.6
|
|
Deferred income tax liabilities—noncurrent
|
(2.4
|
)
|
|
(2.1
|
)
|
||
Net deferred income tax assets
|
$
|
2.9
|
|
|
$
|
3.5
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Federal
|
$
|
20.3
|
|
|
$
|
9.4
|
|
State
|
5.4
|
|
|
2.8
|
|
||
Foreign
|
10.1
|
|
|
17.5
|
|
||
Total
|
$
|
35.8
|
|
|
$
|
29.7
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Unrecognized tax benefits as of January 1
|
$
|
1.6
|
|
|
$
|
4.8
|
|
|
$
|
5.0
|
|
Gross change for current year positions
|
—
|
|
|
0.2
|
|
|
0.4
|
|
|||
(Decreases) for prior period positions
|
(0.9
|
)
|
|
(3.4
|
)
|
|
(0.6
|
)
|
|||
Unrecognized tax benefits balance as of December 31
|
$
|
0.7
|
|
|
$
|
1.6
|
|
|
$
|
4.8
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Payroll taxes
|
$
|
10.0
|
|
|
$
|
11.7
|
|
|
$
|
10.9
|
|
Property and franchise taxes
|
3.2
|
|
|
2.5
|
|
|
2.5
|
|
|
|
||||||
|
2018
|
|
2017
|
||||
Net Sales
|
$
|
387.0
|
|
|
$
|
429.6
|
|
Cost of goods sold
|
330.7
|
|
|
407.5
|
|
||
Gross profit
|
56.3
|
|
|
22.1
|
|
||
Selling, general and administrative expenses
|
36.6
|
|
|
39.4
|
|
||
Intangible asset impairment
|
—
|
|
|
12.5
|
|
||
Operating earnings (loss)
|
19.7
|
|
|
(29.8
|
)
|
||
Interest expense
|
—
|
|
|
0.1
|
|
||
Other expense, net
|
—
|
|
|
1.0
|
|
||
Earnings (loss) before income tax
|
19.7
|
|
|
(30.9
|
)
|
||
Income tax expense (benefit)
|
9.8
|
|
|
(6.2
|
)
|
||
Net earnings (loss) from discontinued operations
|
$
|
9.9
|
|
|
$
|
(24.7
|
)
|
|
2018
|
|
2017
|
||||
Depreciation and Amortization
|
$
|
10.3
|
|
|
$
|
40.0
|
|
Capital Expenditures
|
(8.0
|
)
|
|
(12.3
|
)
|
|
2019
|
2018
|
||||
Gain (loss) on disposal of discontinued operations before income tax
|
$
|
10.4
|
|
$
|
(153.8
|
)
|
Income tax expense
|
—
|
|
—
|
|
||
Net gain (loss) on disposal of discontinued operations
|
$
|
10.4
|
|
$
|
(153.8
|
)
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator
|
|
|
|
|
|
|
||||||
(Loss) from continuing operations
|
|
$
|
(68.9
|
)
|
|
$
|
(19.1
|
)
|
|
$
|
(17.1
|
)
|
Earnings (loss) from discontinued operations, net of tax
|
|
10.4
|
|
|
(143.9
|
)
|
|
(24.7
|
)
|
|||
Net (loss)
|
|
$
|
(58.5
|
)
|
|
$
|
(163.0
|
)
|
|
$
|
(41.8
|
)
|
|
|
|
|
|
|
|
||||||
Denominator
|
|
|
|
|
|
|
||||||
Weighted average number of common shares outstanding
|
|
23,597,877
|
|
|
25,780,214
|
|
|
26,977,475
|
|
|||
Weighted average number of vested shares not yet issued
|
|
518,460
|
|
|
188,195
|
|
|
136,504
|
|
|||
Weighted average number of common shares outstanding - Basic
|
|
24,116,337
|
|
|
25,968,409
|
|
|
27,113,979
|
|
|||
Dilutive stock-based compensation awards outstanding
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average number of common shares outstanding - Diluted
|
|
24,116,337
|
|
|
25,968,409
|
|
|
27,113,979
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
|
2017
|
||
Potentially dilutive common shares excluded from diluted computation as inclusion would be anti-dilutive
|
611,399
|
|
|
474,910
|
|
743,678
|
|
Performance awards excluded from diluted computation, as performance conditions not met
|
343,505
|
|
|
862,256
|
|
849,483
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Customer receivables
|
$
|
47.1
|
|
|
$
|
45.4
|
|
Miscellaneous receivables
|
7.2
|
|
|
6.2
|
|
||
Less: allowance for product warranties, discounts and losses
|
(18.2
|
)
|
|
(12.6
|
)
|
||
Total
|
$
|
36.1
|
|
|
$
|
39.0
|
|
|
Year Ended December 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
|
6.8
|
|
|
7.5
|
|
||
Current year claim accruals
|
(9.4
|
)
|
|
(6.6
|
)
|
||
Balance as of December 31
|
$
|
(9.0
|
)
|
|
$
|
(6.4
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Finished goods
|
$
|
87.1
|
|
|
$
|
110.5
|
|
Goods in process
|
4.5
|
|
|
5.7
|
|
||
Raw materials and supplies
|
20.0
|
|
|
23.3
|
|
||
Total
|
$
|
111.6
|
|
|
$
|
139.5
|
|
|
|
|
|
||||
Inventories valued on a LIFO basis
|
$
|
84.6
|
|
|
$
|
113.3
|
|
Inventories valued on FIFO or other basis
|
$
|
27.0
|
|
|
$
|
26.2
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Prepaid expenses
|
$
|
5.7
|
|
|
$
|
6.8
|
|
Merchandising materials
|
3.1
|
|
|
9.4
|
|
||
Other
|
1.2
|
|
|
1.8
|
|
||
Total
|
$
|
10.0
|
|
|
$
|
18.0
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
28.2
|
|
|
$
|
29.6
|
|
Buildings
|
88.3
|
|
|
91.8
|
|
||
Machinery and equipment
|
444.6
|
|
|
452.8
|
|
||
Computer software
|
15.3
|
|
|
19.2
|
|
||
Construction in progress
|
19.2
|
|
|
21.5
|
|
||
Less accumulated depreciation and amortization
|
(318.4
|
)
|
|
(318.8
|
)
|
||
Total
|
$
|
277.2
|
|
|
$
|
296.1
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Estimated Useful Life
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Long-lived intangible assets
|
|
|
|
|
|
|
|
|
|||||||||
Contractual arrangements
|
5 years
|
|
$
|
36.4
|
|
|
$
|
17.3
|
|
|
$
|
36.4
|
|
|
$
|
10.7
|
|
Intellectual property
|
2-15 years
|
|
5.3
|
|
|
1.7
|
|
|
5.0
|
|
|
1.3
|
|
||||
Subtotal
|
|
|
41.7
|
|
|
$
|
19.0
|
|
|
41.4
|
|
|
$
|
12.0
|
|
||
Indefinite-lived intangible assets
|
|
|
|
|
|
|
|
|
|||||||||
Trademarks and brand names
|
Indefinite
|
|
2.7
|
|
|
|
|
2.6
|
|
|
|
||||||
Total
|
|
|
$
|
44.4
|
|
|
|
|
$
|
44.0
|
|
|
|
|
|
Year Ended December 31,
|
|||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||
Amortization expense
|
|
$
|
7.0
|
|
|
$
|
7.2
|
|
|
$
|
4.2
|
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
2024
|
||||||||||
Expected annual amortization expense
|
$
|
7.0
|
|
|
$
|
7.0
|
|
|
$
|
3.7
|
|
|
$
|
0.4
|
|
$
|
0.4
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Payables, trade and other
|
$
|
70.5
|
|
|
$
|
99.5
|
|
Employment costs
|
13.8
|
|
|
25.0
|
|||
Other accrued expenses
|
16.8
|
|
|
16.9
|
|||
Current operating lease liabilities
|
3.3
|
|
|
—
|
|
||
Total
|
$
|
104.4
|
|
|
$
|
141.4
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Revolver
|
$
|
42.2
|
|
|
$
|
25.0
|
|
Current portion of Term Loan A
|
—
|
|
|
3.7
|
|
||
Noncurrent portion of Term Loan A
|
—
|
|
|
70.6
|
|
||
Noncurrent portion of finance lease liabilities
|
0.3
|
|
|
—
|
|
||
Total
|
$
|
42.5
|
|
|
$
|
99.3
|
|
|
U.S. Pension Plans
|
|
Canadian Pension Plans
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligations as of January 1
|
$
|
346.4
|
|
|
$
|
395.8
|
|
|
$
|
15.6
|
|
|
$
|
17.8
|
|
Liabilities transferred to AHF, LLC
|
—
|
|
|
(11.5
|
)
|
|
—
|
|
|
—
|
|
||||
Service cost
|
2.7
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
15.0
|
|
|
14.6
|
|
|
0.6
|
|
|
0.6
|
|
||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
0.6
|
|
|
(1.2
|
)
|
||||
Actuarial loss/(gain)
|
49.2
|
|
|
(33.4
|
)
|
|
1.3
|
|
|
0.5
|
|
||||
Benefits paid
|
(18.7
|
)
|
|
(22.9
|
)
|
|
(1.8
|
)
|
|
(2.1
|
)
|
||||
Projected benefit obligations as of December 31
|
394.6
|
|
|
346.4
|
|
|
16.3
|
|
|
15.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets as of January 1
|
337.1
|
|
|
390.8
|
|
|
13.6
|
|
|
17.1
|
|
||||
Assets to be transferred to AHF, LLC
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
—
|
|
||||
Actual return on plan assets
|
62.2
|
|
|
(22.8
|
)
|
|
1.7
|
|
|
(0.4
|
)
|
||||
Employer contribution
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
0.6
|
|
|
(1.1
|
)
|
||||
Benefits paid
|
(18.7
|
)
|
|
(22.9
|
)
|
|
(1.8
|
)
|
|
(2.1
|
)
|
||||
Fair value of plan assets as of December 31
|
380.7
|
|
|
337.1
|
|
|
14.2
|
|
|
13.6
|
|
||||
Funded status of the plans
|
$
|
(13.9
|
)
|
|
$
|
(9.3
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation as of December 31
|
$
|
393.2
|
|
|
$
|
345.1
|
|
|
$
|
16.3
|
|
|
$
|
15.6
|
|
|
U.S. Pension Plans
|
|
Canadian Pension Plans
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Weighted average assumptions used to determine benefit obligations as of December 31
|
|
|
|
|
|
|
|
||||
Discount rate
|
3.25
|
%
|
|
4.40
|
%
|
|
3.00
|
%
|
|
3.80
|
%
|
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
n/a
|
|
|
n/a
|
|
Weighted average assumptions used to determine net periodic benefit cost for the period:
|
|
|
|
|
|
|
|
||||
Discount rate
|
4.40
|
%
|
|
3.75
|
%
|
|
3.80
|
%
|
|
3.30
|
%
|
Expected return on plan assets
|
6.30
|
%
|
|
5.85
|
%
|
|
4.90
|
%
|
|
4.90
|
%
|
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
n/a
|
|
|
n/a
|
|
|
U.S. Pension Plans
|
|
Canadian Pension Plans
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Projected benefit obligation, December 31
|
$
|
394.6
|
|
|
$
|
346.4
|
|
|
$
|
15.8
|
|
|
$
|
15.2
|
|
Accumulated benefit obligation, December 31
|
393.2
|
|
|
345.1
|
|
|
15.8
|
|
|
15.2
|
|
||||
Fair value of plan assets, December 31
|
380.7
|
|
|
337.1
|
|
|
13.7
|
|
|
13.1
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost of benefits earned during the period
|
$
|
2.7
|
|
|
$
|
3.8
|
|
|
$
|
5.4
|
|
Interest cost on projected benefit obligation
|
15.0
|
|
|
14.6
|
|
|
15.4
|
|
|||
Expected return on plan assets
|
(21.7
|
)
|
|
(22.2
|
)
|
|
(22.7
|
)
|
|||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
0.4
|
|
|||
Recognized net actuarial loss
|
9.7
|
|
|
10.7
|
|
|
10.5
|
|
|||
Net periodic pension cost
|
$
|
5.7
|
|
|
$
|
6.9
|
|
|
$
|
9.0
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Interest cost on projected benefit obligation
|
$
|
0.6
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
Expected return on plan assets
|
(0.7
|
)
|
|
(0.8
|
)
|
|
(0.9
|
)
|
|||
Amortization of net actuarial loss
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|||
Net periodic pension cost (credit)
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
•
|
Investing a substantial portion of the plan assets in high quality corporate and treasury bonds whose duration is at least equal to that of the plan’s liabilities such that there is a relatively high correlation between the movements of the plan’s liability and asset values.
|
•
|
Investing in publicly traded equities in order to increase the ratio of plan assets to liabilities over time.
|
•
|
Limiting investment return volatility by diversifying among additional asset classes with differing expected rates of return and return correlations.
|
|
Target Weight at
|
|
Position at December 31,
|
|||||
|
December 31, 2019
|
|
2019
|
|
2018
|
|||
U.S. Asset Class
|
|
|
|
|
|
|||
Fixed income securities
|
56
|
%
|
|
55
|
%
|
|
59
|
%
|
Equities
|
44
|
%
|
|
45
|
%
|
|
41
|
%
|
|
Target Weight at
|
|
Position at December 31,
|
|||||
|
December 31, 2019
|
|
2019
|
|
2018
|
|||
Canadian Asset Class
|
|
|
|
|
|
|||
Fixed income securities
|
50
|
%
|
|
50
|
%
|
|
50
|
%
|
Equities
|
48
|
%
|
|
48
|
%
|
|
48
|
%
|
Other
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Value at December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
U.S. Plans
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
207.9
|
|
|
$
|
—
|
|
|
$
|
207.9
|
|
Equities
|
—
|
|
|
173.2
|
|
|
—
|
|
|
173.2
|
|
||||
Other
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
||||
Net assets measured at fair value
|
$
|
(0.4
|
)
|
|
$
|
381.1
|
|
|
$
|
—
|
|
|
$
|
380.7
|
|
|
|
|
|
|
|
|
|
|
Value at December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
U.S. Plans
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
202.4
|
|
|
$
|
—
|
|
|
$
|
202.4
|
|
Equities
|
—
|
|
|
143.2
|
|
|
—
|
|
|
143.2
|
|
||||
Other
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
||||
Net assets measured at fair value
|
$
|
(0.4
|
)
|
|
$
|
345.6
|
|
|
$
|
—
|
|
|
345.2
|
|
|
Assets to be transferred to AHF, LLC
|
|
|
|
|
|
|
(8.1
|
)
|
|||||||
Net assets
|
|
|
|
|
|
|
$
|
337.1
|
|
|
Value at December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Canadian Plans
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
7.0
|
|
|
$
|
—
|
|
|
$
|
7.0
|
|
Equities
|
—
|
|
|
6.9
|
|
|
—
|
|
|
6.9
|
|
||||
Other
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
Net assets measured at fair value
|
$
|
0.3
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
|
$
|
14.2
|
|
|
Value at December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Canadian Plans
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
6.9
|
|
|
$
|
—
|
|
|
$
|
6.9
|
|
Equities
|
—
|
|
|
6.5
|
|
|
—
|
|
|
6.5
|
|
||||
Other
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Net assets measured at fair value
|
$
|
0.2
|
|
|
$
|
13.4
|
|
|
$
|
—
|
|
|
$
|
13.6
|
|
|
2019
|
|
2018
|
||||
Change in benefit obligation:
|
|
|
|
||||
Projected benefit obligations as January 1
|
$
|
62.2
|
|
|
$
|
76.4
|
|
Service cost
|
0.2
|
|
|
0.4
|
|
||
Interest cost
|
2.5
|
|
|
2.6
|
|
||
Plan participants' contributions
|
2.2
|
|
|
1.6
|
|
||
Plan amendments
|
(2.6
|
)
|
|
—
|
|
||
Effect of curtailment
|
—
|
|
|
(0.2
|
)
|
||
Actuarial loss/(gain)
|
10.0
|
|
|
(9.0
|
)
|
||
Benefits paid
|
(9.2
|
)
|
|
(9.6
|
)
|
||
Projected benefit obligation as of December 31
|
65.3
|
|
|
62.2
|
|
||
|
|
|
|
||||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets as January 1
|
—
|
|
|
—
|
|
||
Employer contribution
|
7.0
|
|
|
8.0
|
|
||
Plan participants' contribution
|
2.2
|
|
|
1.6
|
|
||
Benefits paid
|
(9.2
|
)
|
|
(9.6
|
)
|
||
Fair value of plan assets as of December 31
|
—
|
|
|
—
|
|
||
Funded status of the plans
|
$
|
(65.3
|
)
|
|
$
|
(62.2
|
)
|
|
2019
|
|
2018
|
||
Weighted average discount rate used to determine benefit obligations as of December 31
|
3.20
|
%
|
|
4.30
|
%
|
Weighted average discount rate used to determine net periodic benefit cost
|
4.30
|
%
|
|
3.60
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost of benefits earned during the period
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Interest cost on accumulated postretirement benefit obligations
|
2.5
|
|
|
2.6
|
|
|
3.2
|
|
|||
Amortization of net actuarial (gain)
|
(3.1
|
)
|
|
(2.5
|
)
|
|
(2.4
|
)
|
|||
Net periodic postretirement (benefit) cost
|
$
|
(0.4
|
)
|
|
$
|
0.5
|
|
|
$
|
1.2
|
|
|
One percentage point
|
||||||
|
Increase
|
|
Decrease
|
||||
(Decrease) increase on total service and interest cost components
|
$
|
—
|
|
|
$
|
—
|
|
(Decrease) increase on postretirement benefit obligation
|
(0.9
|
)
|
|
1.2
|
|
|
U.S. Pension Benefits
|
|
Canadian Pension Benefits
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Pension benefit liabilities
|
$
|
(13.9
|
)
|
|
$
|
(9.3
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(2.0
|
)
|
Net amount recognized
|
$
|
(13.9
|
)
|
|
$
|
(9.3
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(2.0
|
)
|
|
Postretirement Benefits
|
||||||
|
2019
|
|
2018
|
||||
Accounts payable and accrued expenses
|
$
|
(5.6
|
)
|
|
$
|
(6.5
|
)
|
Postretirement benefit liabilities
|
(59.7
|
)
|
|
(55.7
|
)
|
||
Net amount recognized
|
$
|
(65.3
|
)
|
|
$
|
(62.2
|
)
|
|
U.S. Pension Benefits
|
|
Canadian Pension Benefits
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net actuarial (loss)
|
$
|
(123.1
|
)
|
|
$
|
(124.2
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
(4.7
|
)
|
|
Postretirement Benefits
|
||||||
|
2019
|
|
2018
|
||||
Net actuarial gain
|
$
|
30.5
|
|
|
$
|
41.0
|
|
|
U.S. Pension Benefits
|
|
Canadian Pension Benefits
|
|
Postretirement Benefits
|
||||||
2020
|
$
|
19.1
|
|
|
$
|
1.4
|
|
|
$
|
5.6
|
|
2021
|
19.1
|
|
|
1.3
|
|
|
5.3
|
|
|||
2022
|
20.1
|
|
|
1.2
|
|
|
5.0
|
|
|||
2023
|
21.0
|
|
|
1.2
|
|
|
4.6
|
|
|||
2024
|
21.6
|
|
|
1.1
|
|
|
4.3
|
|
|||
2025-2029
|
114.4
|
|
|
5.3
|
|
|
17.5
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Assets (1)
|
|
Liabilities (2)
|
|
Assets (1)
|
|
Liabilities (2)
|
||||||||
Derivatives designated as cash flow hedging instruments
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
(Losses) gains recognized in other comprehensive income ("OCI") (3)
|
|
Gains (losses) reclassified from
AOCI (3)
|
||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
$
|
(0.8
|
)
|
|
$
|
2.0
|
|
|
$
|
(1.9
|
)
|
|
$
|
0.7
|
|
|
$
|
(0.3
|
)
|
|
$
|
(0.4
|
)
|
|
Gains (losses) recognized in income (3)
|
||||||||||
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Non-designated hedges
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
0.1
|
|
|
$
|
1.5
|
|
|
$
|
(2.0
|
)
|
|
Fair Value at December 31, 2019
|
||||||||||||||||||
|
Carrying amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total financial assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
(0.7
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
Total revolver
|
(42.2
|
)
|
|
—
|
|
|
(42.2
|
)
|
|
—
|
|
|
(42.2
|
)
|
|||||
Total financial liabilities
|
$
|
(42.9
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
(42.2
|
)
|
|
$
|
—
|
|
|
$
|
(42.9
|
)
|
|
Fair Value at December 31, 2018
|
||||||||||||||||||
|
Carrying amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
1.1
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
Total financial assets
|
$
|
1.1
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revolver
|
$
|
(99.3
|
)
|
|
$
|
—
|
|
|
$
|
(99.3
|
)
|
|
$
|
—
|
|
|
$
|
(99.3
|
)
|
Total financial liabilities
|
$
|
(99.3
|
)
|
|
$
|
—
|
|
|
$
|
(99.3
|
)
|
|
$
|
—
|
|
|
$
|
(99.3
|
)
|
|
Pre-tax Amount
|
|
Tax Impact
|
|
After-tax Amount
|
||||||
2019
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
$
|
(2.2
|
)
|
|
$
|
—
|
|
|
$
|
(2.2
|
)
|
Derivative adjustments
|
(1.5
|
)
|
|
0.1
|
|
|
(1.4
|
)
|
|||
Pension and postretirement adjustments
|
(9.5
|
)
|
|
—
|
|
|
(9.5
|
)
|
|||
Total other comprehensive (loss)
|
$
|
(13.2
|
)
|
|
$
|
0.1
|
|
|
$
|
(13.1
|
)
|
|
|
|
|
|
|
||||||
2018
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
$
|
(6.0
|
)
|
|
$
|
—
|
|
|
$
|
(6.0
|
)
|
Derivative adjustments
|
2.3
|
|
|
(0.6
|
)
|
|
1.7
|
|
|||
Pension and postretirement adjustments
|
8.5
|
|
|
(0.7
|
)
|
|
7.8
|
|
|||
Total other comprehensive income
|
$
|
4.8
|
|
|
$
|
(1.3
|
)
|
|
$
|
3.5
|
|
|
|
|
|
|
|
||||||
2017
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
$
|
7.2
|
|
|
$
|
—
|
|
|
$
|
7.2
|
|
Derivative adjustments
|
(2.0
|
)
|
|
0.5
|
|
|
(1.5
|
)
|
|||
Pension and postretirement adjustments
|
2.2
|
|
|
(0.6
|
)
|
|
1.6
|
|
|||
Total other comprehensive income
|
$
|
7.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
7.3
|
|
|
Foreign Currency Translation Adjustments
|
|
Derivative Adjustments
|
|
Pension and Postretirement Adjustments
|
|
Total Accumulated Other Comprehensive Income (Loss)
|
||||||||
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 (loss) income before reclassifications, net of tax impact of $ — , ($0.5), $1.0 and $0.5
|
(6.0
|
)
|
|
1.4
|
|
|
1.2
|
|
|
(3.4
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
0.3
|
|
|
6.6
|
|
|
6.9
|
|
||||
Net current period other comprehensive (loss) income
|
(6.0
|
)
|
|
1.7
|
|
|
7.8
|
|
|
3.5
|
|
||||
Balance, December 31, 2018
|
$
|
1.7
|
|
|
$
|
0.8
|
|
|
$
|
(64.1
|
)
|
|
$
|
(61.6
|
)
|
Other comprehensive (loss) before reclassifications, net of tax impact of $ —, $0.1, $ — and $0.1
|
(2.2
|
)
|
|
(0.7
|
)
|
|
(16.5
|
)
|
|
(19.4
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
—
|
|
|
(0.7
|
)
|
|
7.0
|
|
|
6.3
|
|
||||
Net current period other comprehensive (loss)
|
(2.2
|
)
|
|
(1.4
|
)
|
|
(9.5
|
)
|
|
(13.1
|
)
|
||||
Balance, December 31, 2019
|
$
|
(0.5
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(73.6
|
)
|
|
$
|
(74.7
|
)
|
|
Year Ended December 31,
|
|
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|
Affected Line Item
|
||||||
Derivative adjustments
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts - purchases
|
$
|
(0.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
0.1
|
|
|
Cost of goods sold
|
Foreign exchange contracts - purchases
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
Earnings (loss) from discontinued operations
|
|||
Foreign exchange contracts - sales
|
(0.3
|
)
|
|
0.4
|
|
|
0.3
|
|
|
Net sales
|
|||
Foreign exchange contracts - sales
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
Earnings (loss) from discontinued operations
|
|||
Total (income)/expense before tax
|
(0.7
|
)
|
|
0.4
|
|
|
0.6
|
|
|
|
|||
Tax impact
|
—
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
Income tax expense (benefit)
|
|||
Tax impact
|
—
|
|
|
—
|
|
|
—
|
|
|
Earnings (loss) from discontinued operations
|
|||
Total (income)/expense, net of tax
|
(0.7
|
)
|
|
0.3
|
|
|
0.4
|
|
|
|
|||
Pension and postretirement adjustments
|
|
|
|
|
|
|
|
||||||
Prior service cost amortization
|
—
|
|
|
—
|
|
|
0.4
|
|
|
Other expense, net
|
|||
Amortization of net actuarial loss
|
7.0
|
|
|
8.4
|
|
|
8.4
|
|
|
Other expense, net
|
|||
Amortization of net actuarial loss
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
Earnings (loss) from discontinued operations
|
|||
Total expense before tax
|
7.0
|
|
|
8.3
|
|
|
8.8
|
|
|
|
|||
Tax impact
|
—
|
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|
Income tax expense (benefit)
|
|||
Tax impact
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Earnings (loss) from discontinued operations
|
|||
Total expense, net of tax
|
7.0
|
|
|
6.6
|
|
|
7.0
|
|
|
|
|||
Total reclassifications for the period
|
$
|
6.3
|
|
|
$
|
6.9
|
|
|
$
|
7.4
|
|
|
|
|
2019 Quarter Ended
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net sales
|
$
|
141.7
|
|
|
$
|
177.7
|
|
|
$
|
165.6
|
|
|
$
|
141.3
|
|
Gross profit
|
22.1
|
|
|
36.2
|
|
|
11.8
|
|
|
15.2
|
|
||||
(Loss) earnings from continuing operations
|
(16.6
|
)
|
|
5.3
|
|
|
(29.7
|
)
|
|
(27.9
|
)
|
||||
Per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.63
|
)
|
|
$
|
0.20
|
|
|
$
|
(1.36
|
)
|
|
$
|
(1.27
|
)
|
Diluted
|
(0.63
|
)
|
|
0.20
|
|
|
(1.36
|
)
|
|
(1.27
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
|
2018 Quarter Ended
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net sales
|
$
|
164.3
|
|
|
$
|
201.2
|
|
|
$
|
208.9
|
|
|
$
|
153.8
|
|
Gross profit
|
29.3
|
|
|
43.7
|
|
|
45.2
|
|
|
25.0
|
|
||||
(Loss) earnings from continuing operations
|
(10.4
|
)
|
|
2.9
|
|
|
3.3
|
|
|
(14.9
|
)
|
||||
Per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.40
|
)
|
|
$
|
0.11
|
|
|
$
|
0.13
|
|
|
$
|
(0.57
|
)
|
Diluted
|
(0.40
|
)
|
|
0.11
|
|
|
0.13
|
|
|
(0.57
|
)
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP;
|
•
|
provide reasonable assurance that receipts and expenditures are being made only in accordance with management and director authorization;
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the consolidated financial statements; and
|
•
|
provide reasonable assurance as to the detection of fraud.
|
Name; Company Position
|
|
Age
|
|
Other Business Experience During the Last Five Years*
|
Michel S. Vermette President and CEO
(since September 2019) |
|
52
|
|
Mohawk Industries, Inc.
President Residential Carpeting (February 2019 - September 2019)
President of Mohawk Group (2011 - February 2019)
|
Douglas B. Bingham
SVP, Chief Financial Officer & Treasurer
(since January 2019)
|
|
44
|
|
Armstrong Flooring, Inc.
VP, Treasury and Investor Relations (April 2016 - January 2019) Armstrong World Industries, Inc. Director, Treasury & Risk Management (2014 to 2016) |
John C. Bassett
SVP, Chief Human Resources Officer (since March 2016) |
|
57
|
|
Armstrong World Industries, Inc.
VP, Flooring Products, Human Resources (2014 to 2016) |
Brent A. Flaharty
SVP & Chief Customer Experience Officer
(since March 2017)
|
|
47
|
|
Armstrong Flooring, Inc.
VP, Residential Sales (December 2016 - March 2017) Mag Instrument, Inc.
Chief Revenue Officer (2016)
Exemplis Corporation
Chief Marketing Officer (2015 - 2016)
Masonite International Corporation
Vice President and Business Leader, North America (2012 - 2015)
|
Christopher S. Parisi
SVP, General Counsel, Secretary & Chief Compliance Officer
(since March 2016)
|
|
49
|
|
Armstrong World Industries, Inc.
VP, Associate General Counsel and Secretary (2014 to 2016) |
Tracy L. Marines
VP, Controller (since January 2019) |
|
48
|
|
Armstrong Flooring, Inc.
Director, Controller (2018)
Director, Financial Reporting & Consolidation (2018)
Senior Manager, Financial Reporting & Consolidation (2017-2018)
Senior Manager, Financial Reporting (2016-2017)
Manager, Financial Reporting (2016)
Armstrong World Industries, Inc.
Manager, Financial Reporting (2008-2016) |
•
|
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
•
|
full, fair, accurate, timely and understandable public disclosures;
|
•
|
compliance with applicable governmental laws, rules and regulations;
|
•
|
the prompt internal reporting of violations of the Codes of Ethics; and,
|
•
|
accountability for compliance with the Codes of Ethics.
|
Exhibit
Number
|
|
Description
|
|
|
|
2.1
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
|
10.15
|
|
|
|
|
|
10.16
|
|
|
|
|
|
10.17
|
|
|
|
|
|
10.18
|
|
|
|
|
|
10.19
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
10.22
|
|
|
|
|
|
10.23
|
|
|
|
|
|
10.24
|
|
|
|
|
|
10.25
|
|
|
|
|
|
10.26
|
|
|
|
|
|
10.27
|
|
|
|
|
|
10.28
|
|
|
|
|
|
10.29
|
|
|
|
|
|
10.30
|
|
|
|
|
|
10.31
|
|
|
|
|
|
10.32
|
|
|
|
|
|
10.33
|
|
|
|
|
|
10.34
|
|
|
|
|
|
10.35
|
|
|
|
|
|
10.36
|
|
|
|
|
|
10.37
|
|
|
|
|
|
10.38
|
|
|
|
|
|
10.39
|
|
|
|
|
|
10.40
|
|
|
|
|
|
|
Balance at beginning of year
|
|
Additions charged to earnings
|
|
Deductions
|
|
ASC 606 Cumulative Catchup Adjustment
|
|
Balance at end of year
|
||||||||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for bad losses
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
Provision for discounts
|
4.8
|
|
|
55.3
|
|
|
(54.1
|
)
|
|
—
|
|
|
6.0
|
|
|||||
Provision for warranties
|
5.1
|
|
|
9.4
|
|
|
(8.9
|
)
|
|
—
|
|
|
5.6
|
|
|||||
Reserve for inventories
|
0.7
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
—
|
|
|
0.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for bad losses
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.6
|
|
Provision for discounts
|
6.0
|
|
|
61.0
|
|
|
(59.7
|
)
|
|
(1.7
|
)
|
|
5.6
|
|
|||||
Provision for warranties
|
5.6
|
|
|
6.6
|
|
|
(7.5
|
)
|
|
1.7
|
|
|
6.4
|
|
|||||
Reserve for inventories
|
0.9
|
|
|
0.3
|
|
|
(0.6
|
)
|
|
—
|
|
|
0.6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for bad losses
|
$
|
0.6
|
|
|
$
|
0.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
0.8
|
|
Provision for discounts
|
5.6
|
|
|
72.1
|
|
|
(69.3
|
)
|
|
—
|
|
|
8.4
|
|
|||||
Provision for warranties
|
6.4
|
|
|
9.4
|
|
|
(6.8
|
)
|
|
—
|
|
|
9.0
|
|
|||||
Reserve for inventories
|
0.6
|
|
|
3.9
|
|
|
(3.1
|
)
|
|
—
|
|
|
1.4
|
|
Armstrong Flooring, Inc.
|
|
(Registrant)
|
|
|
|
Date:
|
March 10, 2020
|
|
|
By:
|
/s/ Michel S. Vermette
|
|
|
|
Michel S. Vermette
|
|
Director, President and Chief Executive Officer
|
|
(As Duly Authorized Officer and Principal Executive Officer)
|
/s/ Michel S. Vermette
|
|
Director, President and Chief Executive Officer (Principal Executive Officer)
|
|
March 10, 2020
|
Michel S. Vermette
|
|
|
|
|
/s/ Douglas B. Bingham
|
|
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)
|
|
March 10, 2020
|
Douglas B. Bingham
|
|
|
|
|
/s/ Tracy L. Marines
|
|
Vice President and Controller (Principal Accounting Officer)
|
|
March 10, 2020
|
Tracy L. Marines
|
|
|
|
|
/s/ Michael F. Johnston
|
|
Director
|
|
March 10, 2020
|
Michael F. Johnston
|
|
|
|
|
/s/ Kathleen S. Lane
|
|
Director
|
|
March 10, 2020
|
Kathleen S. Lane
|
|
|
|
|
/s/ Jeffrey Liaw
|
|
Director
|
|
March 10, 2020
|
Jeffrey Liaw
|
|
|
|
|
/s/ Michael W. Malone
|
|
Director
|
|
March 10, 2020
|
Michael W. Malone
|
|
|
|
|
/s/ Larry S. McWilliams
|
|
Director
|
|
March 10, 2020
|
Larry S. McWilliams
|
|
|
|
|
/s/ James C. Melville
|
|
Director
|
|
March 10, 2020
|
James C. Melville
|
|
|
|
|
/s/ Jacob H. Welch
|
|
Director
|
|
March 10, 2020
|
Jacob H. Welch
|
|
|
|
|
U.S. Subsidiaries
|
|
Jurisdiction of Incorporation
|
Armstrong Licensing LLC
|
|
Delaware
|
|
|
|
Non-U.S. Subsidiaries
|
|
Jurisdiction of Incorporation
|
Armstrong Flooring Pty Ltd
|
|
Australia
|
AFI Canada Ltd.
|
|
Canada
|
Armstrong (China) Investment Co. Ltd.
|
|
China
|
Armstrong Advanced Flooring (China) Co. Ltd
|
|
China
|
Armstrong Flooring Hong Kong Limited
|
|
Hong Kong
|
Date:
|
March 10, 2020
|
|
|
By:
|
/s/ Michel S. Vermette
|
|
|
|
Michel S. Vermette
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
Date:
|
March 10, 2020
|
|
|
By:
|
/s/ Douglas B. Bingham
|
|
|
|
Douglas B. Bingham
|
|
Senior Vice President, Chief Financial Officer and Treasurer
|
|
(Principal Financial Officer)
|
/s/ Michel S. Vermette
|
|
Michel S. Vermette
|
Chief Executive Officer
|
(Principal Executive Officer)
|
March 10, 2020
|
/s/ Douglas B. Bingham
|
|
Douglas B. Bingham
|
Senior Vice President, Chief Financial Officer and Treasurer
|
(Principal Financial Officer)
|
March 10, 2020
|