10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-37589

ARMSTRONG FLOORING, INC.

(Exact name of Registrant as specified in its charter) 

Delaware		47-4303305
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer Identification number)
1770 Hempstead Road		17605
Lancaster	Pennsylvania
(Address of principal executive offices)		(Zip Code)

	(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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   þ No   ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files.)  Yes   þ No   ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☑	Smaller reporting company	☑
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).  Yes  ☐    No   þ

The Registrant had 21,709,428 shares of common stock, $0.0001 par value, outstanding at October 15, 2021.

Armstrong Flooring, Inc.

Table of Contents

		Page Number
	Cautionary Statement Concerning Forward-Looking Statements	1
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	2
	Condensed Consolidated Statements of Operations (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5	Other Information	29
Item 6.	Exhibits	30
SIGNATURES		31

Glossary of Defined Terms

Unless the context requires otherwise, "AFI," the "Company," "we," "our," or "us" refers to Armstrong Flooring Inc., a Delaware corporation and its consolidated subsidiaries. The Company also uses several other terms in this Quarterly Report on Form 10-Q, which are further defined below:

Term	Description
Amended ABL Credit Facility	ABL credit facility, as amended through the fourth amendment thereto
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
CEO	Chief Executive Officer
CFO	Chief Financial Officer
COVID-19	COVID-19 coronavirus
Form 10-Q	Quarterly Report on Form 10-Q
ROU	Right-of-use asset
SEC	Securities and Exchange Commission
South Gate Facility	Facility formerly owned by the Company, located in South Gate, California sold March 10, 2021.
Amended Term Loan Agreement	Pathlight Capital L.P. term loan agreement, as amended through the first amendment thereto
Term Loan Facility	Pathlight Capital L.P. term loan facility
U.S. GAAP	Generally accepted accounting principles in the United States of America

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q and the documents incorporated by reference may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, our expectations concerning our commercial and residential markets and their effect on our operating results, and our ability to increase revenues, income and earnings before interest, taxes, depreciation and amortization. Words such as “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “predict,” “believe,” “may,” “will,” “would,” “could,” “should,” “seek,” “estimate” and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors that could have a material adverse effect on our financial condition, liquidity, results of operations or future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to:

•execution of strategy;

•competition;

•availability and costs of raw materials and energy;

•key customers;

•construction activity;

•liquidity;

•debt covenants;

•debt;

•pandemics, epidemics or other public health emergencies such as the outbreak of COVID-19;

•global economic conditions;

•international operations;

•environmental and regulatory matters;

•information systems and transition services;

•personnel;

•intellectual property rights;

•claims and litigation;

•labor;

•outsourcing; and

•other risks detailed from time to time in our filings with the SEC, press releases and other communications, including those set forth under “Risk Factors” included in our Annual Report on Form 10-K and in the documents incorporated by reference.

Such forward-looking statements speak only as of the date they are made. We expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

1

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

Armstrong Flooring, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in millions)

	September 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	14.9	$	13.7
Accounts and notes receivable, net	47.8		43.0
Inventories, net	128.6		122.9
Prepaid expenses and other current assets	20.1		12.9
Assets held-for-sale	—		17.8
Total current assets	211.4		210.3
Property, plant, and equipment, net	233.7		246.9
Operating lease assets	18.9		8.5
Intangible assets, net	14.0		19.0
Deferred income tax assets	4.4		4.4
Other noncurrent assets	11.5		4.4
Total assets	$	493.9	$	493.5
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term debt	$	5.9	$	5.5
Current installments of long-term debt (a)	67.3		2.9
Trade accounts payable	89.2		78.5
Accrued payroll and employee costs	18.3		14.8
Current operating lease liabilities	2.7		2.7
Other accrued expenses	21.1		17.7
Total current liabilities	204.5		122.1
Long-term debt (a)	0.9		71.4
Noncurrent operating lease liabilities	17.2		5.8
Postretirement benefit liabilities	54.2		55.6
Pension benefit liabilities	4.5		4.6
Deferred income tax liabilities	1.5		2.4
Other long-term liabilities	7.7		9.0
Total liabilities	290.5		270.9
Commitments and contingencies
Stockholders’ equity:
Common stock	—		—
Preferred stock	—		—
Treasury stock, at cost	(85.8)		(87.1)
Additional paid-in capital	678.0		677.4
Accumulated deficit	(330.4)		(308.4)
Accumulated other comprehensive income (loss)	(58.4)		(59.3)
Total stockholders' equity	203.4		222.6
Total liabilities and stockholders’ equity	$	493.9	$	493.5

(a) Net of unamortized debt issuance costs. See Note 1 - Business and Basis of Presentation, for additional details..

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

2

Armstrong Flooring, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in millions, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales	$	168.5	$	156.6	$	485.5	$	440.9
Cost of goods sold	155.6		129.0		431.5		365.3
Gross profit	12.9		27.6		54.0		75.6
Selling, general and administrative expenses	41.7		37.7		119.3		104.6
Gain on sale of property	—		—		(46.0)		—
Operating income (loss)	(28.8)		(10.1)		(19.3)		(29.0)
Interest expense	2.6		2.8		8.9		4.6
Other expense (income), net	(2.3)		(1.5)		(6.7)		(2.4)
Income (loss) before income taxes	(29.1)		(11.4)		(21.5)		(31.2)
Income tax expense (benefit)	0.6		0.3		0.5		—
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock	$	(1.34)	$	(0.53)	$	(1.00)	$	(1.42)
Diluted earnings (loss) earnings per share of common stock:
Diluted earnings (loss) per share of common stock	$	(1.34)	$	(0.53)	$	(1.00)	$	(1.42)

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

3

Armstrong Flooring, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(Dollars in millions)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)
Changes in other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(0.7)		3.6		(0.4)		2.7
Derivative adjustments	0.4		(0.3)		0.7		0.1
Pension and postretirement adjustments	0.2		0.9		0.6		3.1
Total other comprehensive income (loss)	(0.1)		4.2		0.9		5.9
Total comprehensive income (loss)	$	(29.8)	$	(7.5)	$	(21.1)	$	(25.3)

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

4

Armstrong Flooring, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions)

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities:
Net income (loss)	$	(22.0)	$	(31.2)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	33.3		32.0
Inventory write down	1.2		—
Deferred income taxes	(0.5)		(0.9)
Stock-based compensation expense	2.0		2.0
Gain on sale of property	(46.0)		—
Gain from long-term disability plan change	—		(1.1)
U.S. pension expense (income)	(5.3)		2.8
Other non-cash adjustments, net	0.8		0.6
Changes in operating assets and liabilities:
Receivables	(10.3)		(7.7)
Insurance receivable	3.8		—
Inventories	(7.4)		(18.0)
Accounts payable and accrued expenses	24.4		11.2
Insurance liability	(3.8)		—
Other assets and liabilities	(10.8)		(6.0)
Net cash provided by (used for) operating activities	(40.6)		(16.3)
Cash flows from investing activities:
Purchases of property, plant and equipment	(16.1)		(15.2)
Proceeds from sale of assets	65.4		0.1
Net cash provided by (used for) investing activities	49.3		(15.1)
Cash flows from financing activities:
Proceeds from revolving credit facility	70.1		43.1
Payments on revolving credit facility	(55.4)		(79.2)
Issuance of long-term debt	0.2		70.0
Financing costs	—		(7.4)
Payments on long-term debt	(22.1)		(0.2)
Value of shares withheld related to employee tax withholding	(0.2)		—
Net cash provided by (used for) financing activities	(7.4)		26.3
Effect of exchange rate changes on cash and cash equivalents	(0.1)		0.2
Net increase (decrease) in cash and cash equivalents	1.2		(4.9)
Cash and cash equivalents at beginning of year	13.7		27.1
Cash and cash equivalents at end of period	$	14.9	$	22.2
Supplemental Cash Flow Disclosure:
Cash paid for:
Interest paid	$	7.8	$	3.6
Income taxes paid, net	0.5		0.4
Non-cash transaction:
Amounts in accounts payable for capital expenditures	2.4		2.9

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

5

Armstrong Flooring, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(Dollars in millions)

	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Equity
	Shares	Amount		Shares	Amount
December 31, 2020	21,638,141	$	—	6,738,521	$	(87.1)	$	677.4	$	(59.3)	$	(308.4)	$	222.6
Net income (loss)	—	—		—	—		—		—		27.2		27.2
Stock-based employee compensation, net	47,721	—		(47,721)	0.9		(0.4)		—		—		0.5
Other comprehensive income (loss)	—	—		—	—		—		(0.6)		—		(0.6)
March 31, 2021	21,685,862	—		6,690,800	(86.2)		677.0		(59.9)		(281.2)		249.7
Net income (loss)	—	—		—	—		—		—		(19.5)		(19.5)
Stock-based employee compensation, net	—	—		—	—		0.8		—		—		0.8
Other comprehensive income (loss)	—	—		—	—		—		1.6		—		1.6
June 30, 2021	21,685,862	—		6,690,800	(86.2)		677.8		(58.3)		(300.7)		232.6
Net income (loss)	—	—		—	—		—		—		(29.7)		(29.7)
Stock-based employee compensation, net	23,566	—		(23,566)	0.4		0.2		—		—		0.6
Other comprehensive income (loss)	—	—		—	—		—		(0.1)		—		(0.1)
September 30, 2021	21,709,428	$	—	6,667,234	$	(85.8)	$	678.0	$	(58.4)	$	(330.4)	$	203.4

	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Equity
	Shares	Amount		Shares	Amount
December 31, 2019	21,519,761	$	—	6,837,897	$	(88.9)	$	676.7	$	(74.7)	$	(244.8)	$	268.3
Net income (loss)	—	—		—	—		—		—		(13.2)		(13.2)
Stock-based employee compensation, net	36,072	—		(36,072)	0.7		—		—		—		0.7
Other comprehensive income (loss)	—	—		—	—		—		0.1		—		0.1
March 31, 2020	21,555,833	—		6,801,825	(88.2)		676.7		(74.6)		(258.0)		255.9
Net income (loss)	—	—		—	—		—		—		(6.3)		(6.3)
Stock-based employee compensation, net	37,689	—		(18,685)	0.3		0.3		—		—		0.6
Other comprehensive income (loss)	—	—		—	—		—		1.6		—		1.6
June 30, 2020	21,593,522	—		6,783,140	(87.9)		677.0		(73.0)		(264.3)		251.8
Net income (loss)	—	—		—	—		—		—		(11.7)		(11.7)
Stock-based employee compensation, net	32,700	—		(32,700)	0.6		—		—		—		0.6
Other comprehensive income (loss)	—	—		—	—		—		4.2		—		4.2
September 30, 2020	21,626,222	$	—	6,750,440	$	(87.3)	$	677.0	$	(68.8)	$	(276.0)	$	244.9

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

6

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 1. BUSINESS AND BASIS OF PRESENTATION

Background

Armstrong Flooring, Inc. 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.

Basis of Presentation

These condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including allowances for expected credit losses, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, sales-related accruals, pension and post-retirement liabilities, 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 and nine months ended September 30, 2021 and 2020 included in this Quarterly Report on Form 10-Q are unaudited. Quarterly results are not necessarily indicative of annual results, primarily due to the seasonality of the business and the possibility of changes in economic conditions between periods.

The accounting policies used in preparing the condensed consolidated financial statements in this Quarterly Report on Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2020. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

All significant intercompany transactions within AFI have been eliminated from the consolidated financial statements.

Reclassifications

Certain reclassifications have been made to prior year amounts to conform with current year classifications.

Recently Adopted and Recently Issued Accounting Standards

On January 1, 2021 we adopted ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This new standard eliminates certain exceptions in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, guidance on accounting for franchise taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

There are no additional accounting standards that have been issued and become effective for the Company at a future date which are expected to have a material impact on our financial condition, results of operations or cash flows.

7

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

Going Concern

These financial statements have been prepared assuming that the Company will continue as a going concern. For the nine months ended September 30, 2021, the Company had a net loss of $22.0 million. As of September 30, 2021, the Company had an accumulated deficit of $330.4 million.

The ability of the Company to continue as a going concern is dependent on the Company maintaining adequate capital and liquidity to fund operating losses until it returns to profitability. On November 1, 2021, the Company entered into the Fourth Amendment to its Credit Agreement, which amended its existing asset-backed revolving credit facility and the First Amendment to its Term Loan Agreement, which amended its existing Term Loan Agreement, both of which modify financial covenant requirements for the period ending September 30, 2021. The Company was in compliance with these covenants at September 30, 2021.

Based on current projections, as a result of worsening supply chain disruptions during the third quarter of 2021 and continued inflationary pressures related to transportation, labor and raw materials, which are expected to continue through 2022, the Company does not currently expect to remain in compliance with certain financial covenants under the asset-backed revolving Credit Agreement or the Term Loan Agreement, each, as amended, for the entirety of the twelve-month period from filing of this Form 10-Q. While the Company has implemented substantial pricing actions, continues to work with its lenders to secure longer-term relief and evaluates other initiatives that could enhance its liquidity, there can be no assurances that these actions will be successful. These factors raise substantial doubt about the Company’s ability to continue as a going concern. As a result, the Company has reclassified amounts outstanding under the Amended ABL Credit Facility and the Amended Term Loan Agreement from Long-term debt to Current installments of long-term debt at September 30, 2021 on the Condensed Consolidated Balance Sheets. See Note 7, Debt, for additional details.

Asset Impairment Review

The Company’s business transformation has been delayed by supply chain disruptions and inflationary pressures related to transportation, labor and raw materials. As a result, the Company has experienced continued losses and negative cash flows, which were higher than anticipated. These events constitute a triggering event that required impairment testing of our North America asset group as of the last day of the third quarter of 2021. The results of this impairment testing indicated that, as of September 30, 2021, our North America asset group is not impaired. While no long-lived asset impairment existed as of September 30, 2021, such charges are possible in the future, which could have a material adverse effect on future results.

NOTE 2. ACCOUNTS AND NOTES RECEIVABLE

The following table presents accounts and note receivables, net:

	September 30, 2021		December 31, 2020
Customer trade accounts receivables	$	65.8	$	52.4
Miscellaneous receivables (a)	4.4		9.0
Less: allowance for product claims, discounts, returns and losses	(22.4)		(18.4)
Total accounts and notes receivable, net	$	47.8	$	43.0

(a) Miscellaneous receivables primarily relate to the current portion of a distributor note receivable, tax claim receivables and medical insurance rebate receivables not included in Customer trade account receivables. The decrease in Miscellaneous receivables is primarily due to receipt of an insurance receivable associated with a shareholder lawsuit that was included in the balance at December 31, 2020. See Note 10, Litigation and Related Matters, for additional details.

Allowance for product claims, which is a portion of the allowance for product claims, discounts, returns and losses, represents expected reimbursements for cost associated with warranty repairs and customer accommodation claims, the majority of which is provided to our independent distributors through credits against customer trade accounts receivable from the independent distributor to AFI.

8

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

The following table summarizes the activity for the allowance for product claims:

	Nine Months Ended September 30,
	2021		2020
Balance as of January 1	$	(10.3)	$	(9.0)
Reductions for payments	7.4		4.9
Current year claim accruals	(8.7)		(5.9)
Balance as of September 30	$	(11.6)	$	(10.0)

NOTE 3. INVENTORIES

The following table presents details related to our inventories, net:

	September 30, 2021		December 31, 2020
Finished goods	$	88.0	$	94.0
Goods in process	5.6		5.7
Raw materials and supplies	35.0		23.2
Total inventories, net	$	128.6	$	122.9

NOTE 4. PROPERTY, PLANT AND EQUIPMENT

The following table presents details related to our property, plant and equipment, net:

	September 30, 2021		December 31, 2020
Land	$	10.3	$	10.6
Buildings	83.0		81.8
Machinery and equipment	445.5		458.9
Computer software	18.4		15.9
Construction in progress	10.7		16.4
Less: accumulated depreciation and amortization	(334.2)		(336.7)
Total property, plant and equipment, net	$	233.7	$	246.9

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Depreciation expense	$	8.5	$	9.3	$	28.0	$	26.8

9

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

On March 10, 2021 the Company sold its South Gate Facility, previously classified as assets held-for-sale, for a purchase price of $76.7 million. The Company received proceeds of $65.3 million, net of fees, expenses and certain amounts held in an environmental-related escrow account. The Company realized a gain of $46.0 million during the three months ended March 31, 2021 on the sale. At December 31, 2020, the Company had classified as Assets held-for-sale, $17.8 million of primarily land and buildings related to the South Gate Facility that met all related criteria under U.S. GAAP.

During the second quarter of 2021, the Company accelerated $3.3 million of depreciation expense for property, plant and equipment for which no future alternative use was identified as part of the Company's business transformation initiatives.

NOTE 5. LEASES

The Company's leases, excluding short-term leases, have remaining terms of less than one year to ten years, some of which include options to extend for up 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 following table summarizes components of lease expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost	$	0.1	$	0.1	$	0.3	$	0.3
Operating lease cost	1.5		0.5		3.7		3.3
Short-term lease cost	0.5		—		1.8		0.7
Total lease cost	$	2.1	$	0.6	$	5.8	$	4.3

The following table summarizes supplemental balance sheet information related to leases:

Lease Category	Balance Sheet Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease assets	$	18.9	$	8.5
Finance lease assets	Property, plant and equipment, net	1.2		1.0
Total lease assets		$	20.1	$	9.5
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	2.7	$	2.7
Finance lease liabilities	Current installments of long-term debt	0.5		0.3
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	17.2		5.8
Finance lease liabilities	Long-term debt, net of unamortized debt issuance costs	0.7		0.7
Total lease liabilities		$	21.1	$	9.5

10

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

The following table summarizes supplemental cash flow information related to leases:

	Nine Months Ended
	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3.0	$	3.2
Financing cash flows from finance leases	0.3		0.2
ROU assets obtained in exchange for lease obligations:
Operating leases	12.4		2.8
Finance leases	0.4		0.7

During the nine months ended September 30, 2021, the Company added $11.6 million of additional ROU assets related to the commencement of the Technical Center and Headquarters leases.

The following table summarizes weighted average remaining lease term and weighted average discount rate:

	September 30, 2021		December 31, 2020
Weighted average remaining lease term - Operating leases (in years)	7.7		4.1
Weighted average remaining lease term - Finance leases (in years)	2.7		3.0
Weighted average discount rate - Operating leases (%)	11.5	%	9.5	%
Weighted average discount rate - Finances leases (%)	8.3	%	7.1	%

Maturities of lease liabilities at September 30, 2021 were as follows:

	Operating Leases		Finance Leases
2021 (excluding the nine months ended September 30, 2021)	$	1.2	$	0.1
2022	4.5		0.5
2023	4.2		0.4
2024	3.9		0.2
2025	3.3		0.1
Thereafter	13.5		—
Total lease payments	30.6		1.3
Less: Unamortized interest	10.7		0.1
Total	$	19.9	$	1.2

11

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 6. INTANGIBLE ASSETS

Intangible assets, net consist of the following:

		September 30, 2021				December 31, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Contractual arrangements	5 years	$	33.4	$	28.4	$	33.4	$	23.6
Land use rights	50 years	3.2		0.6		3.2		0.5
Intellectual property	2-15 years	5.7		2.3		5.6		2.0
Subtotal		42.3		31.3		42.2		26.1
Indefinite-lived intangible assets:
Trademarks and brand names	Indefinite	3.0				2.9
Total intangible assets, net		$	45.3	$	31.3	$	45.1	26.1

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amortization expense	$	1.8	$	1.7	$	5.3	$	5.2

	2021 (a)		2022		2023		2024		2025		Thereafter
Estimated amortization expense	$	1.8	$	3.7	$	0.4	$	0.4	$	0.4	$	2.0

(a) Amortization remaining in current year.

12

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 7. DEBT

	September 30, 2021		December 31, 2020
Credit lines (international)	$	4.5	$	4.5
Insurance premiums financing	1.4		1.0
Short-term debt	5.9		5.5
Current installment of Term Loan Facility	48.3		2.6
Amended ABL Credit Facility	24.1		—
Current installment of finance leases	0.5		0.3
Less: Deferred financing costs	(5.6)		—
Current installments of long-term debt	67.3		2.9
Noncurrent portion of Term Loan Facility	—		67.4
Amended ABL Credit Facility	—		10.0
Other financing payable (including finance leases)	0.9		0.7
Total principal balance outstanding, long-term debt	0.9		78.1
Less: Deferred financing costs	—		(6.7)
Long-term debt, net of unamortized debt issuance costs:	0.9		71.4
Total	$	74.1	$	79.8

Upon the sale of our South Gate Facility, we made a mandatory payment of $20.0 million to Pathlight Capital L.P. towards the principal balance on our Term Loan Facility as required by the Term Loan Agreement. As part of the mandatory payment, we paid an additional $0.4 million in prepayment premium fees. Additional proceeds from the South Gate Facility sale were applied to outstanding borrowings under our Amended ABL Credit Facility. Upon completion of the sale, the temporary $30.0 million restriction on available liquidity under the Amended ABL Credit Facility was removed.

During March 2021, we entered a new line of credit in China. The new credit limit is $9.3 million with a one-year maturity date and a variable interest rate of 3.85% to 4.35%. The loan is secured by the land and building of our Chinese facility.

13

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 8. PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS

The following table summarizes our pension and postretirement expense (benefit):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Defined-benefit pension, U.S.
Service cost	$	0.2	$	0.6	$	0.7	$	1.9
Interest cost	2.6		3.2		7.7		9.4
Expected return on plan assets	(5.3)		(5.3)		(15.9)		(16.0)
Amortization of net actuarial (gain) loss	0.7		2.5		2.2		7.6
Total, defined-benefit pension, U.S.	$	(1.8)	$	1.0	$	(5.3)	$	2.9
Defined-benefit pension, Canada
Interest cost	$	0.1	$	0.1	$	0.3	$	0.3
Expected return on plan assets	(0.1)		(0.1)		(0.4)		(0.4)
Amortization of net actuarial (gain) loss	0.1		0.1		0.2		0.3
Settlement/curtailment losses	—		—		0.2		—
Total, defined-benefit pension, Canada	$	0.1	$	0.1	$	0.3	$	0.2
Defined-benefit postretirement, U.S.
Interest cost	$	0.3	$	0.5	$	1.0	$	1.5
Amortization of prior service credits	(0.3)		—		(0.8)		(0.2)
Amortization of net actuarial (gain) loss	(0.3)		(1.2)		(1.0)		(3.6)
Total, defined-benefit postretirement, U.S.	$	(0.3)	$	(0.7)	$	(0.8)	$	(2.3)

The caption Other assets on the Company's Condensed Consolidated Balance Sheets include prepaid pension assets of $8.6 million and $1.1 million at September 30, 2021 and December 31, 2020, respectively.

We expect to contribute an additional $1.3 million to our U.S. postretirement benefit plans for the remainder of 2021.

NOTE 9. FINANCIAL INSTRUMENTS

The fair value of cash, accounts and notes receivable, trade accounts payable and accrued expenses approximate their carrying amounts due to the short-term maturities of these assets and liabilities.

Fair value of all other financial instruments are as follows:

			Fair Value at September 30, 2021
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	0.2	$	0.2	$	—	$	—	$	0.2
Total Amended ABL Credit Facility	24.1		—		24.1		—		24.1
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	48.3		—		48.5		—		48.5
Total financial liabilities	$	77.1	$	0.2	$	77.1	$	—	$	77.3

14

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

			Fair Value at December 31, 2020
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	1.1	$	1.1	$	—	$	—	$	1.1
Total Amended ABL Credit Facility	10.0		—		10.0		—		10.0
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	70.0		—		73.8		—		73.8
Total financial liabilities	$	85.6	$	1.1	$	88.3	$	—	$	89.4

The fair values of our net foreign currency contracts were estimated from market quotes, which are considered to be Level 1 inputs.

Borrowings under the Amended ABL Credit Facility, foreign line of credit and the Term Loan Facility are quoted in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the liability (Level 2 inputs).

We do not have any assets or liabilities that are valued using Level 3 unobservable inputs.

NOTE 10. 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 September 30, 2021 and December 31, 2020 for potential environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made.

15

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

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.

On November 15, 2019, a shareholder filed a putative class action complaint in the United States District Court for the Central District of California alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder, based on alleged false and/or misleading statements or omissions made between March 6, 2018 and November 4, 2019. On March 2, 2020, the court issued an order appointing a lead plaintiff and lead counsel. On July 2, 2020, the lead plaintiff filed an amended complaint asserting similar violations and expanding the alleged class period to cover alleged false and/or misleading statements or omissions made between March 6, 2018 and March 3, 2020. On August 17, 2020, the Company moved to dismiss the amended complaint, and the lead plaintiff filed an opposition on October 1, 2020. On November 30, 2020, the Company reached a settlement in principle to fully resolve this matter. The settlement agreement, which is subject to final court approval, provides in part for a settlement payment of $3.75 million in exchange for the dismissal and a release of all claims against the defendants. Neither the Company nor any individual defendant admits any wrongdoing through the settlement agreement. On January 15, 2021, the lead plaintiff filed a motion for preliminary approval of the settlement. On February 23, 2021, the court granted preliminary approval of the settlement, preliminary certification of the settlement class and approval to provide notice to the class. The final settlement approval hearing was held July 19, 2021. In September 2021, the $3.75 million settlement payment was paid by our insurance provider under our relevant insurance policy and placed into escrow for distribution. The Company had previously recorded the settlement in the captions Accounts and notes receivable, net and Other accrued expenses in the Condensed Consolidated Balance Sheets.

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.

16

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 11. 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales
United States	$	121.9	$	116.3	$	359.1	$	345.4
China	26.5		22.3		65.4		46.3
Canada	8.4		7.8		26.4		21.3
Australia	8.0		6.9		24.3		19.4
Other	3.7		3.3		10.3		8.5
Total net sales	$	168.5	$	156.6	$	485.5	$	440.9

NOTE 12. INCOME TAXES

The following table presents details related to our income taxes:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(29.1)		$	(11.4)		$	(21.5)		$	(31.2)
Income tax expense (benefit)	0.6			0.3			0.5			—
Effective tax rate	(2.1)		%	(2.7)		%	(2.3)		%	—		%

For the three months ended September 30, 2021 we recognized an income tax expense related to various foreign jurisdictions.

For the nine months ended September 30, 2021 we recognized income tax expense related to various foreign jurisdictions partially offset by a U.S. income tax benefit related to a reduction in the Company's deferred tax liabilities due to the sale of the South Gate Facility.

For the three months and nine months ended September 30, 2020 we recognized an income tax expense related to various foreign jurisdictions offset by a U.S. income tax benefit. The U.S. income tax benefit relates to a reduction in the Company's valuation allowance due to the tax impact of the gains in other comprehensive income.

As of September 30, 2021, we consider foreign unremitted income to be permanently reinvested.

17

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 13. RECONCILIATION OF BASIC AND DILUTED EARNINGS PER SHARE

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)
Weighted average shares outstanding:
Weighted average common shares outstanding	21,689,928		21,600,477		21,681,655		21,567,629
Weighted average common shares, vested not yet issued	412,519		357,635		255,697		340,599
Weighted average common shares outstanding - Basic	22,102,447		21,958,112		21,937,352		21,908,228
Dilutive impact of stock-based compensation plans	—		—		—		—
Weighted average common shares outstanding - Diluted	22,102,447		21,958,112		21,937,352		21,908,228
Income (loss) per share of common stock:
Basic income (loss) per share of common stock	$	(1.34)	$	(0.53)	$	(1.00)	$	(1.42)
Diluted income (loss) per share of common stock	(1.34)		(0.53)		(1.00)		(1.42)

In periods when there is a net loss, diluted loss per share is calculated using weighted average common shares outstanding, as inclusion of potentially dilutive common shares would be anti-dilutive.

Performance-based employee compensation awards are considered potentially dilutive in periods in which the performance conditions are met.

The following stock-based compensation awards were excluded from the computation of diluted income (loss) per share of common stock:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive or because performance conditions were not met	1,799,523	1,136,418	1,657,099	1,189,835

18

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

NOTE 14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the activity, by component, related to the change in accumulated other comprehensive income:

	Foreign Currency Translation Adjustments		Derivative Adjustments		Pension and Postretirement Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2020	$	6.7	$	(1.0)	$	(65.0)	$	(59.3)
Other comprehensive income (loss) before reclassifications, net of tax impact of $—, $—, $— and $—, respectively	(0.4)		—		—		(0.4)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		0.6		0.7		1.3
Net current period other comprehensive income (loss)	(0.4)		0.6		0.7		0.9
Balance, September 30, 2021	$	6.3	$	(0.4)	$	(64.3)	$	(58.4)
Balance, December 31, 2019	$	(0.5)	$	(0.6)	$	(73.6)	$	(74.7)
Other comprehensive income (loss) before reclassifications, net of tax impact of $— , $0.1, $— and $0.1, respectively	2.7		0.4		—		3.1
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(0.3)		3.1		2.8
Net current period other comprehensive income (loss)	2.7		0.1		3.1		5.9
Balance, September 30, 2020	$	2.2	$	(0.5)	$	(70.5)	$	(68.8)

19

Armstrong Flooring, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars in millions, except per share data)

The amounts reclassified from Accumulated other comprehensive income (loss) and the affected line item of the Condensed Consolidated Statements of Operations are presented in the table below.

	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item
	2021		2020		2021		2020
Derivative adjustments:
Foreign exchange contracts - purchases	$	—	$	—	$	0.4	$	(0.2)	Cost of goods sold
Foreign exchange contracts - sales	0.1		—		0.3		(0.1)		Net sales
Total before tax	0.1		—		0.7		(0.3)
Tax impact	—		—		(0.1)		—		Income tax expense (benefit)
Total reclassifications of derivative adjustments, net of tax	0.1		—		0.6		(0.3)
Pension and postretirement adjustments:
Prior service cost (credit) amortization	(0.3)		—		(0.8)		(0.2)		Other expense (income), net
Amortization of net actuarial loss (gain)	0.5		1.4		1.6		4.3		Other expense (income), net
Total before tax	0.2		1.4		0.8		4.1
Tax impact	—		(0.3)		(0.1)		(1.0)		Income tax expense (benefit)
Total reclassifications of pension and postretirement adjustments, net of tax	0.2		1.1		0.7		3.1
Total reclassifications for the period, net of tax	$	0.3	$	1.1	$	1.3	$	2.8

20

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion supplements and should be read in conjunction with the accompanying unaudited condensed consolidated financial statements as well as the audited consolidated financial statements of the Company, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended  December 31, 2020, which includes additional information about the Company's critical accounting policies, contractual obligations, and transactions that support the financial results and provides a more comprehensive summary of the Company's outlooks, trends and strategies for 2021 and beyond.

Executive Overview

We are a leading global producer of flooring products for use primarily in the construction and renovation of commercial, residential and institutional buildings. We design, manufacture, source and sell resilient flooring products primarily in North America and the Pacific Rim. As of September 30, 2021, we operated seven manufacturing plants in three countries, including five manufacturing plants located throughout the U.S. (Illinois, Mississippi, Oklahoma and two in Pennsylvania) and one plant each in China and Australia.

During early 2020, we established a multi-year strategic roadmap to transform and modernize our operations to become a leaner, faster-growing and more profitable business. The transformation encompasses three critical objectives: (i) expanding customer reach; (ii) simplifying product offerings and operations; and (iii) strengthening core capabilities. In addition, we have implemented a new operating model to more effectively accomplish these objectives by: (i) placing customers first by aligning services and products through a more seamless value chain; (ii) leading the industry in product innovation; (iii) simplifying processes and operating complexity to become more competitive and efficient; (iv) realigning the go-to-market model to reach all relevant channels and customers; (v) implementing system changes to improve operations, reduce costs and reignite organic growth; and (vi) investing thoughtfully with a return-focused mindset. The goal of this focused strategy is to transform and modernize AFI, resulting in a company that is more agile, faster-growing and more profitable.

Building on the positive momentum and achievements from the prior year, during 2021 we have (i) completed the phased relocation of our new corporate headquarters and Technical Center including a first-of-its-kind design center to showcase our full capabilities, with expected cost savings of approximately 60% when fully annualized; (ii) launched several new key products including additions to the American Charm collection and the introduction of NexProTM, NexproTM XMB, and Rest & RefugeTM; (iii) commenced shipments from the Company's new fully operational west coast distribution center; (iv) continued to execute on our multichannel go-to-market strategy including expanded rebranding initiatives and the launch of the new distributor-driven Armstrong® Flooring SignatureTM brand and the Armstrong® Flooring ProTM brand that is focused on the builder and multi-family channels; (v) continued initiatives aimed at improving manufacturing efficiency and customer experiences; (vi) continued to make investments in both talent and process improvements; (vii) we made our initial sales to the hospitality channel; and (viii) received numerous product and project awards which recognize our commitment to quality and innovation.

Despite this positive momentum, the Company’s transformation has been delayed and impacted by supply chain issues and inflationary pressures related to transportation, labor and raw materials. We have instituted multiple prices increases during 2021, the realization of which have lagged the increased input costs and have not been adequate to cover inflationary pressures. Accordingly, effective November 1, 2021, the Company instituted an additional price increase, resulting in a complete price re-positioning on installation materials, commercial tile and select residential sheet and commercial/residential manufactured and sourced products, representing some of the most comprehensive pricing actions that the Company has taken to date. In addition, the Company is implementing an ocean freight surcharge. The Company expects these and other actions to begin to mitigate the impact of the inflationary pressures that have impacted current year operating results and to generate more positive momentum in margins heading into 2022. The Company will continue to monitor the larger macro-economic environment and will further adjust its pricing strategy as necessary.

On March 10, 2021 we completed the sale of our South Gate Facility for a total purchase price of $76.7 million. The Company received proceeds of $65.3 million, net of fees, expenses and certain amounts held in an environmental-related escrow account. The Company recognized a gain of $46.0 million on the sale. Concurrent with the sale, the Company paid $20.4 million to Pathlight Capital L.P., including a $20.0 million mandatory repayment of our Term Loan Facility and $0.4 million of prepayment premium fees. Additionally, upon completion of the sale, the temporary $30.0 million restriction on available liquidity under the Amended ABL Credit Facility was removed.

21

COVID-19

As the COVID-19 pandemic continues, we have seen the overall impact on our business decline. However, we remain committed to safeguarding our employees and the communities in which we operate, while continuing to deliver our products to customers. We have experienced the impact of the imbalance of global shipping capacity and demand which has led to delays in the receipt of goods from China and Vietnam at U.S. ports. Additionally, while overall economic activity has improved, some of our customers' commercial projects in the retail, office, medical and educational sectors continue to be postponed. These factors have led to a softer demand environment in certain states and channels. The ultimate duration and impact of the pandemic on our future results is unknown.

Outlook

Looking forward, we remain committed to profitable growth over the medium and long-term; however, results will continue to be negatively impacted by inflation, supply chain disruptions and the timing of pricing increases as well as COVID-19 in 2021, primarily in the commercial markets served by the Company as well as costs associated with Company's on-going business transformation initiatives. The Company's view for the remainder of 2021 is supported by the below factors, which should be considered in the context of other risks, trends and strategies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020:

•The Company expects sales to improve during the full year 2021 compared to 2020 as a result of decreased COVID-19 pressures, the impact of recently announced price increases, continued expansion into additional market segments, and positive trends in residential end markets and new product introductions.

•Operating results in the short-term continue to be negatively impacted by incremental expenses necessary to execute the Company's business transformation initiatives. This includes anticipated higher Selling, general and administrative expenses, primarily during the remainder of 2021, to support the Company's go-to-market changes. Funding for these initiatives will be aided by the deployment of capital associated with the sale of the Company's South Gate Facility.

•As the Company navigates 2021, it is focused on several uncertainties, which may impact operating results, including navigating the continued impact of COVID-19, inflationary and labor pressures continued global logistics and shipping challenges as well as recently announced energy policy restrictions in China. The global logistics and shipping challenges delayed a substantial number of anticipated order deliveries from the second and third quarter of 2021 until the fourth quarter of 2021 and the first quarter of 2022 and the Company continues to maintain a strong backlog.

•During the third quarter of 2021, the Company continued to experience higher product and transportation costs, which offset a favorable product mix for the quarter. The higher product and transportation costs were driven by the unusual inflationary impacts of the transitory macro-economic recovery which have been higher than historic norms. As a result, the Company currently estimates that total product and transportation costs for the full-year 2021 will be approximately $85 million to $90 million higher than prior year on a comparable basis. The Company is committed to cost containment efforts to offset the impact of inflation (including price increases) and the Company's ability to manage these costs will continue to impact the Company's gross margins, results of operations and cash flows for the remainder of 2021.

•The Company has instituted multiple price increases during the nine months ended September 30, 2021 with additional pricing actions to take affect later this year. The Company expects these increases and actions to begin to mitigate the impact of the recent inflationary pressures that have impacted current year operating results and to generate more positive momentum in margins heading into 2022 and beyond. It is possible that increased selling prices could result in decreased demand for certain product or channels.

•As the Company continues to execute against its multi-year strategic roadmap, the primary areas of focus for the remainder of 2021 continue to include: (i) continued focus on improving the customer experience while also improving overall profitability; (ii) continued introduction of compelling products into the markets the Company serves; and (iii) expansion of existing and entry into new market segments.

•Based on current projections, as a result of worsening supply chain disruptions during the third quarter of 2021 and continued inflationary pressures related to transportation, labor and raw materials, which are expected to continue through 2022, the Company does not currently expect to remain in compliance with certain financial covenants under the asset-backed revolving Credit Agreement or the Term Loan Agreement, each, as amended, for the entirety of the twelve-month period from filing of this Form 10-Q. While the Company has implemented substantial pricing actions, continues to work with its lenders to secure longer-term relief and evaluates other initiatives that could enhance its liquidity, there can be no assurances that these actions will be successful.

22

Geographic Areas

See Note 11, Revenue, in Part I "Financial Statements" to the condensed consolidated financial statements for additional financial information by geographic areas.

Results of Operations

Condensed Consolidated Results from Continuing Operations

Below is a summary of comparative results of operations for the three and nine months ended September 30, 2021 and 2020: 

	Three months ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2021		2020		2021		2020
Net sales	$	168.5	$	156.6	$	485.5	$	440.9
Cost of goods sold	155.6		129.0		431.5		365.3
Gross profit	12.9		27.6		54.0		75.6
Selling, general and administrative expenses	41.7		37.7		119.3		104.6
Gain on sale of property	—		—		(46.0)		—
Operating income (loss)	(28.8)		(10.1)		(19.3)		(29.0)
Interest expense	2.6		2.8		8.9		4.6
Other expense (income), net	(2.3)		(1.5)		(6.7)		(2.4)
Income (loss) before income taxes	(29.1)		(11.4)		(21.5)		(31.2)
Income tax expense (benefit)	0.6		0.3		0.5		—
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)

Net sales

Net sales by percentage point change are shown in the table below:

	Three Months Ended September 30,				Change				Percentage Point Change Due to
(Dollars in millions)	2021		2020		$		%		Price		Volume / Mix		Currency
	$	168.5	$	156.6	$	11.9	7.6	%	5.6	%	0.3	%	1.7	%

	Nine Months Ended September 30,				Change				Percentage Point Change Due to
(Dollars in millions)	2021		2020		$		%		Price		Volume / Mix		Currency
	$	485.5	$	440.9	$	44.6	10.1	%	4.5	%	3.6	%	2.0	%

Net sales for the three months ended September 30, 2021 increased $11.9 million and 7.6% compared to the three months ended September 30, 2020. For the nine months ended September 30, 2021, Net sales increased $44.6 million and 10.1% compared to the nine months ended September 30, 2020.

These increases reflect growth in each region in which the Company operates. Demand improvements, favorable product mix and impacts from previously announced pricing initiatives drove sales increases in both Commercial and Residential channels, offset by supply chain disruptions, including the impact of winter storms during the first quarter of 2021 and ocean shipping delays related to sourced products which have delayed receipt of certain products from the second and third quarter of 2021 until the fourth quarter of 2021 and first quarter of 2022, despite strong demand.

23

Cost of goods sold

Cost of goods sold for the three months ended September 30, 2021 was 92.3% of net sales compared to 82.4% of net sales in the three months ended September 30, 2020. For the three months ended September 30, 2021, costs of goods sold increased $26.6 million and 20.6% compared to the three months ended September 30, 2020.

For the nine months ended September 30, 2021, cost of goods sold was 88.9% of net sales compared to 82.9% of net sales in the nine months ended September 30, 2020. For the nine months ended September 30, 2021, costs of goods sold increased $66.2 million and 18.1% compared to the nine months ended September 30, 2020.

These increases were primarily attributable to increased volume, inflation related to the critical input costs and supply interruptions which have caused manufacturing inefficiencies. In addition, the first quarter of 2021 was impacted by manufacturing inefficiencies caused by winter storms which affected multiple manufacturing plants and the second quarter of 2021 was impacted by a $4.5 million charge, which included $3.3 million of accelerated depreciation expense for property, plant and equipment for which no alternative use was identified and a $1.2 million inventory rationalization charge related to the Company's business transformation initiatives.

Selling, general & administrative expenses

Selling, general and administrative expenses for the three months ended September 30, 2021 increased $4.0 million and 10.6% compared to the three months ended September 30, 2020 and increased $14.7 million and 14.1% for the nine months ended September 30, 2021.

The increases in both periods were due primarily to increased headcount in our sales organization to support changes in our go-to-market strategy, higher incentive compensation accruals compared to the same periods in prior year, increased advertising and promotion costs compared to the same periods in prior year and cost reduction measures implemented during 2020, in response to the impact of COVID-19, which did not repeat during the current year. In addition, there were incremental expenses of $0.2 million and $1.0 million related to the relocation of the Company's headquarters during the three months and nine months ended September 30, 2021, respectively. We expect current year costs to be more indicative of our future cost structure.

Business transformation costs

Beginning in 2018, the Company commenced a multi-year business transformation which resulted in a strategic roadmap formally announced during 2020. The multi-year roadmap encompasses three critical objectives: (i) expanding customer reach; (ii) simplifying product offerings and operations; and (iii) strengthening core capabilities. Such costs (or gains) are included in the captions Costs of goods sold; Selling, general and administrative expenses; or Gain (loss) on sale of property on the Company's Consolidated Statements of Operations as required by U.S. GAAP. A summary of business transformation costs (or gains) included in these captions for the periods presented include:

	For the Three Months Ended September 30,
	2021						2020
(Dollars in millions)	Cost of Goods Sold		Selling, General & Administrative Expenses		(Gain) Loss on Sale of Property		Selling, General & Administrative Expenses
Site exit and relocation costs	$	—	$	0.2	$	—	$	0.3
Strategic initiative costs	—		—		—		0.7
Employee termination costs	—		—		—		—
Product and asset rationalization	—		—		—		—
Net gains	—		—		—		—
Total	$	—	$	0.2	$	—	$	1.0

24

	For the Nine Months Ended September 30,
	2021						2020
(Dollars in millions)	Cost of Goods Sold		Selling, General & Administrative Expenses		(Gain) Loss on Sale of Property		Selling, General & Administrative Expenses
Site exit and relocation costs	$	—	$	1.0	$	—	$	0.3
Strategic initiative costs	—		—		—		0.7
Employee termination costs	—		—		—		0.7
Product and asset rationalization	4.5		—		—		—
Net gains	—		—		(46.0)		—
Total	$	4.5	$	1.0	$	(46.0)	$	1.7

Site exit and relocation costs - Site exit and relocation costs include costs associated with exit or disposal activities, including asset write-downs, and non-recurring costs associated with relocation of Company operations. Costs incurred during the both the three and nine months ended September 30, 2021 and 2020 related to the Company's corporate headquarters relocation.

Strategic initiative costs - Costs of non-recurring strategic projects, including executive leadership transitions, that are not considered part of normal operations. Costs incurred during the three and nine months ended September 30, 2020 related to non-severance costs related to the Company's CFO transition.

Employee termination costs - Costs of involuntary termination benefits associated with one-time benefit arrangements provided as part of an exit or disposal activity are recognized by the Company when a formal plan for reorganization is approved at the appropriate level of management and communicated to the affected employees. The employee termination benefit costs during the nine months ended September 30, 2020 relate to our former CFO.

Product and asset rationalization - As part the Company's on-going business transformation efforts, it may from time-to-time determine to stop producing certain products. As a result, the Company may incur accelerated depreciation charges for certain assets and inventory reserve charges to reflect inventory at estimated market value. Costs incurred during the nine months ended September 30, 2021 related to such determinations included accelerated depreciation expense for idled assets with no future alternative use and certain inventory related charges related to product rationalization decisions.

Net gains - Net gains result from the sale of redundant properties (primarily land and buildings) and non-core assets. During the nine months ended September 30, 2021 net gains related to the sale of our South Gate Facility which was classified as Assets held-for-sale during 2020. See Note 4, Property, Plant and Equipment, in Part I “Financial Statements” for additional discussion related to this transaction.

Interest expense

Interest expense decreased $0.2 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020, primarily due to a first quarter 2021 $20 million repayment on our Term Loan Facility.

Interest increased $4.3 million for the nine months ended September 30, 2021 compared to the and nine months ended September 30, 2020 due to higher interest rates on debt outstanding resulting from our June 2020 refinancing.

Other (income) expense, net

Other income increased $0.8 million and $4.3 million, respectively, for the three and nine months ended September 30, 2021, respectively, compared to the three and nine months ended September 30, 2020 primarily reflecting the positive impact from changes in actuarial assumptions related to defined-benefit pension and postretirement plans.

Income tax expense (benefit)

We recorded income tax expense of $0.6 million for the three months ended September 30, 2021 compared to $0.3 income tax expense for the three months ended September 30, 2020. The 2021 expense relates to foreign income tax expense from various jurisdictions.

We recorded an income tax expense of $0.5 million for the nine months ended September 30, 2021 compared to no income tax expense for the nine months ended September 30, 2020 related to various foreign jurisdictions partially offset by a U.S. income tax benefit related to a reduction in the Company's deferred tax liabilities due to the sale of the South Gate Facility.

25

Liquidity and Capital Resources

In November 2021, the Company entered into the Fourth Amendment to its Amended ABL Credit Facility and the First Amendment to its Term Loan Agreement, both of which modify covenant requirements as of September 30, 2021. The Fourth Amendment to the Amended ABL Credit Facility includes a new financial covenant which requires minimum availability of $32.5 million through November 30, 2021; and $25.0 million thereafter.

The March 2021 sale of our South Gate Facility had a significant positive effect on the Company's overall liquidity and capital resources.

Upon the sale of our South Gate Facility we made a mandatory payment of $20.0 million to Pathlight Capital L.P. towards the principal balance on our Term Loan Facility as required by the Term Loan Agreement. As part of this mandatory payment, we paid an additional $0.4 million in prepayment premium fees.

Additional proceeds from the South Gate Facility sale were applied to outstanding borrowings under our Amended ABL Credit Facility. Additionally, upon completion of the sale, the temporary $30.0 million restriction on available liquidity under the Amended ABL Credit Facility was removed.

During March 2021, we entered into a new line of credit in China. The new credit limit is $9.3 million with a one-year maturity date and a variable interest rate of 3.85% to 4.35%. The loan is secured by the land and building of our Chinese facility. There was $4.5 million outstanding under the new line of credit at September 30, 2021. Subsequent to entering into the new line of credit in China, in April 2021, we repaid $3.5 million of borrowings outstanding under an existing local borrowing arrangement in China which matured in February 2021.

Cash Flow Summary

The table below shows our cash (used for) provided by operating, investing and financing activities:

(Dollars in millions)	Nine Months Ended September 30,
	2021		2020
Net cash provided by (used for) operating activities	$	(40.6)	$	(16.3)
Net cash provided by (used for) investing activities	49.3		(15.1)
Net cash provided by (used for) financing activities	(7.4)		26.3

Operating Activities - Net cash used for operating activities for the nine months ended September 30, 2021 was $40.6 million, an increase in use of $24.3 million from the nine months ended September 30, 2020. The increase was due to lower net cash income partially offset by working capital improvements driven by imporved accounts payable and accrued expense management.

Investing Activities - Net cash provided by investing activities for the nine months ended September 30, 2021 was $49.3 million, an increase of $64.4 million from the cash used for investing activities during the nine months ended September 30, 2020. The increase is due to proceeds from the sale of our South Gate Facility, partially offset by slightly higher capital spending.

Financing Activities - Net cash used for financing activities for the nine months ended September 30, 2021 was $7.4 million, a decrease of $33.7 million from net cash provided by financing activities for the nine months ended September 30, 2020. The decrease was due to new Term Loan Facility of $70.0 million in prior year which did not repeat and mandatory prepayments on the Term Loan Facility during 2021 after the sale of our South Gate Facility, partially offset by higher net borrowings on Amended ABL Credit Facility in the current year and payment of deferred financing costs in prior year which did not repeat during the current year.

Sources and Uses of Cash

As discussed in Note 1, Basis of Presentation, in Part 1, Item 1, “Financial Statements,” in November 2021, the Company entered into the Fourth Amendment to its Amended ABL Credit Facility and the First Amendment to its Term Loan Agreement, both of which modify covenant requirements as of September 30, 2021. The Company was in compliance with these covenants at September 30, 2021.

26

Based on current projections, as a result of worsening supply chain disruptions during the third quarter of 2021 and continued inflationary pressures related to transportation, labor and raw materials, which are expected to continue through 2022, the Company does not currently expect to remain in compliance with certain financial covenants under the asset-backed revolving Credit Agreement or the Term Loan Agreement, each, as amended, for the entirety of the twelve-month period from filing of this Form 10-Q. While the Company has implemented substantial pricing actions, continues to work with its lenders to secure longer-term relief and evaluates other initiatives that could enhance its liquidity, there can be no assurances that these actions will be successful. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

As of September 30, 2021 there were borrowings of $24.1 million outstanding under our Amended ABL Credit Facility, while outstanding letters of credit were $6.6 million. Total net availability under the Amended ABL Credit Facility and Term Loan Facility as of September 30, 2021 was $57.2 million.

We are required to pay a commitment fee, payable quarterly in arrears, on the average daily unused amount of the revolving Amended ABL Credit Facility, which varies according to the net leverage ratio and was 0.50% as of September 30, 2021. Outstanding letters of credit issued under the Amended ABL Credit Facility are subject to fees which will be due quarterly in arrears based on the applicable margin described above plus a fronting fee. The total rate for letters of credit was 4.125% as of September 30, 2021.

Our foreign subsidiaries had available lines of credit totaling $9.3 million and there were $4.6 million borrowings under these lines of credit as of September 30, 2021. Total availability under these foreign lines of credit as of September 30, 2021 was $4.7 million.

In addition, the Company had $14.9 million of Cash and cash equivalents at September 30, 2021.

Based on the foregoing, the Company had total liquidity (including Cash and cash equivalents) of $76.8 million at September 30, 2021.

Debt Covenants

The Amended ABL Credit Facility requires, among other things, that we maintain a minimum Consolidated Cash Flow (as defined in the Amendment) for the three-fiscal quarter period ending September 30, 2020 and for any four-fiscal quarter period ending thereafter and during a Financial Covenant Trigger Period (as defined in the Amendment) and maintain a minimum Consolidated Fixed Charge Coverage Ratio (as defined in the Amendment) of at least 1.00 to 1.00.

The Amended Term Loan Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict our ability to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of our businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements.

The Company was in compliance with these covenants at September 30, 2021. However, based on current projections, as a result of worsening supply chain disruptions during the third quarter of 2021 and continued inflationary pressures related to transportation, labor and raw materials, which are expected to continue through 2022, the Company does not currently expect to remain in compliance with certain financial covenants under the asset-backed revolving Credit Agreement or the Term Loan Agreement, each, as amended, for the entirety of the twelve-month period from filing of this Form 10-Q. While the Company has implemented substantial pricing actions, continues to work with its lenders to secure longer-term relief and evaluates other initiatives that could enhance its liquidity, there can be no assurances that these actions will be successful. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Cash Management

The Company has various cash management systems throughout the world that centralize cash in various bank accounts where it is economically justifiable and legally permissible to do so. These centralized cash balances are then redeployed to other operations to reduce short-term borrowings and to finance working capital needs or capital expenditures. Due to the transitory nature of cash balances, they are normally invested in bank deposits that can be withdrawn at will or in very liquid short-term bank time deposits. The Company's policy is to primarily use the banks that participate in our Amended ABL credit facility located in the various countries in which the Company operates. The Company monitors the creditworthiness of banks and when appropriate will adjust banking operations to reduce or eliminate exposure to less creditworthy banks.

27

At September 30, 2021, our Cash and cash equivalents totaled $14.9 million, of which $3.8 million was held in the U.S. and $11.1 million held by non-U.S. subsidiaries. At September 30, 2021 none of our consolidated cash and cash equivalents had regulatory restrictions that would preclude the transfer of funds with and among subsidiaries. While our remaining non-U.S. cash and cash equivalents can be transferred with and among subsidiaries, the majority of these non-U.S. cash balances will be used to support the ongoing working capital needs and continued growth of our non-U.S. operations.

Recent Accounting Pronouncements

See Note 1, Business and Basis of Presentation, in Part I “Financial Statements” for a discussion of recent accounting pronouncements, including accounting pronouncements that are effective in future periods.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risks have not changed significantly from those disclosed in “Quantitative and Qualitative Disclosures About Market Risk” and included in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk," of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains a system of disclosure controls and procedures to give reasonable assurance that information required to be disclosed in the Company's reports filed or submitted under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. These controls and procedures also give reasonable assurance that information required to be disclosed in such reports is accumulated and communicated to management to allow timely decisions regarding required disclosures.

As of September 30, 2021, the Company's CEO and CFO, together with management, conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. Based on that evaluation, the CEO and CFO concluded that these disclosure controls and procedures are effective at the reasonable assurance level described above.

Change in Internal Controls over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company's most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

28

PART II: OTHER INFORMATION

Item 1. Legal Proceedings

See Note 10, Litigation and Related Matters, in Part I, Item 1, “Financial Statements.”

Item 1A. Risk Factors

There have been no material changes in the Company's risk factors discussed in Part I, Item 1A, Risk Factors in our 2020 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Issuer Purchases of Equity Securities

The following table includes information about the Company's stock repurchases from July 1, 2021 to September 30, 2021:

Period	Total Number of Shares Purchased (a)	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
July 1-31, 2021	—	$	—	—	—
August 1-31, 2021	—	$	—	—	—
September 1-30, 2021	9,474	$	3.14	—	—
Total	9,474			—	—

(a) Shares reacquired through the withholding of shares to pay employee tax obligations upon the exercise of options or vesting of restricted units granted under the Company's long-term incentive plans and those previously granted under Armstrong World Industries' long-term incentive plans, which were converted to Armstrong Flooring, Inc. units on April 1, 2016.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

29

Item 6. Exhibits

Exhibit Number		Description
3.1		Amended and Restated Certificate of Incorporation of Armstrong Flooring, Inc. dated March 30, 2016 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, as filed with the U.S. Securities and Exchange Commission on April 4, 2016).
3.2		Amendment to Amended and Restated Certification of Incorporation of Armstrong Flooring Inc., dated June 4, 2021 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, as filed with the U.S. Securities and Exchange Commission on June 4, 2021.)
3.3		Amended and Restated Bylaws of Armstrong Flooring, Inc. dated March 30, 2016 (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K, as filed with the U.S. Securities and Exchange Commission on April 4, 2016).
10.1		Fourth Amendment to Credit Agreement, dated as of November 1, 2021, by and among Armstrong Flooring, Inc., as borrower, the guarantors named therein, the lender parties thereto and Bank of America, N.A., as administrative agent, collateral agent, swingline lender and letter of credit issuer (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, as filed with U.S. Securities and Exchange Commission on November 4, 2021).
10.2		First Amendment to Term Loan Agreement, dated as of November 1, 2021, by and among Armstrong Flooring, Inc., as borrower, the guarantors named therein, the lender parties thereto and Pathlight Capital LP, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K, as filed with U.S. Securities and Exchange Commission on November 4, 2021).
31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.†
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.†
32.1		Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2		Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.†
101.SCH		XBRL Taxonomy Extension Schema Document†
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document†
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document†
101.LAB		XBRL Taxonomy Extension Label Linkbase Document†
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document†
†	Filed herewith.
*	Furnished herewith.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Armstrong Flooring, Inc.
(Registrant)
Date:	November 5, 2021
By:	/s/ Amy P. Trojanowski
	Amy P. Trojanowski
	Senior Vice President and Chief Financial Officer
	(As Duly Authorized Officer and Principal Financial Officer)
Date:	November 5, 2021
By:	/s/ Phillip J. Gaudreau
	Phillip J. Gaudreau
	Vice President and Controller
	(As Duly Authorized Officer and Principal Accounting Officer)

31

EX-31.1

Exhibit 31.1

CERTIFICATIONS

Pursuant to Rule 13a-14(a) Under the Securities Exchange Act of 1934, As Amended

I, Michel S. Vermette, certify that:

1. I have reviewed this report on Form 10-Q of Armstrong Flooring, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 5, 2021
By:	/s/ Michel S. Vermette
	Michel S. Vermette
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

Pursuant to Rule 13a-14(a) Under the Securities Exchange Act of 1934, As Amended

I, Amy P. Trojanowski, certify that:

1. I have reviewed this report on Form 10-Q of Armstrong Flooring, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 5, 2021
By:	/s/ Amy P. Trojanowski
	Amy P. Trojanowski
	Senior Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 of Armstrong Flooring, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Michel S. Vermette, President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the

Company.

/s/ Michel S. Vermette

Michel S. Vermette

President and Chief Executive Officer

(Principal Executive Officer)

November 5, 2021

EX-32.2

Exhibit 32.2

Certification of CFO Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 of Armstrong Flooring, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Amy P. Trojanowski, as Senior Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the

Company.

/s/ Amy P. Trojanowski

Amy P. Trojanowski

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

November 5, 2021

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Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 15, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-37589
Entity Registrant Name	ARMSTRONG FLOORING, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-4303305
Entity Address, Address Line One	1770 Hempstead Road
Entity Address, City or Town	Lancaster
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17605
City Area Code	(717)
Local Phone Number	672-9611
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	AFI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,709,428
Entity Central Index Key	0001655075
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents		$ 14.9	$ 13.7
Accounts and notes receivable, net		47.8	43.0
Inventories, net		128.6	122.9
Prepaid expenses and other current assets		20.1	12.9
Assets held-for-sale		0.0	17.8
Total current assets		211.4	210.3
Property, plant, and equipment, net		233.7	246.9
Operating lease assets		18.9	8.5
Intangible assets, net		14.0	19.0
Deferred income tax assets		4.4	4.4
Other noncurrent assets		11.5	4.4
Total assets		493.9	493.5
Current liabilities:
Short-term debt		5.9	5.5
Current installments of long-term debt	[1]	67.3	2.9
Trade accounts payable		89.2	78.5
Accrued payroll and employee costs		18.3	14.8
Operating lease liabilities		2.7	2.7
Other accrued expenses		21.1	17.7
Total current liabilities		204.5	122.1
Long-term debt (a)		0.9	71.4
Noncurrent operating lease liabilities		17.2	5.8
Postretirement benefit liabilities		54.2	55.6
Pension benefit liabilities		4.5	4.6
Deferred income tax liabilities		1.5	2.4
Other long-term liabilities		7.7	9.0
Total liabilities		290.5	270.9
Stockholders’ equity:
Common stock		0.0	0.0
Preferred stock		0.0	0.0
Treasury stock, at cost		(85.8)	(87.1)
Additional paid-in capital		678.0	677.4
Accumulated deficit		(330.4)	(308.4)
Accumulated other comprehensive income (loss)		(58.4)	(59.3)
Total stockholders' equity		203.4	222.6
Total liabilities and stockholders’ equity		$ 493.9	$ 493.5

[1] (a) Net of unamortized debt issuance costs. See Note 1 - Business and Basis of Presentation, for additional details..

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Less: accumulated depreciation and amortization	$ 334.2	$ 336.7
Finite-lived intangibles, accumulated amortization	$ 31.3	$ 26.1

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net sales	$ 168.5	$ 156.6	$ 485.5	$ 440.9
Cost of goods sold	155.6	129.0	431.5	365.3
Gross profit	12.9	27.6	54.0	75.6
Selling, general and administrative expenses	41.7	37.7	119.3	104.6
Gain on sale of property	0.0	0.0	(46.0)	0.0
Operating income (loss)	(28.8)	(10.1)	(19.3)	(29.0)
Interest expense	2.6	2.8	8.9	4.6
Other expense (income), net	(2.3)	(1.5)	(6.7)	(2.4)
Income (loss) before income taxes	(29.1)	(11.4)	(21.5)	(31.2)
Income tax expense (benefit)	0.6	0.3	0.5	0.0
Net income (loss)	$ (29.7)	$ (11.7)	$ (22.0)	$ (31.2)
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share (in dollars per share)	$ (1.34)	$ (0.53)	$ (1.00)	$ (1.42)
Diluted earnings (loss) earnings per share of common stock:
Diluted earnings (loss) per share (in dollars per share)	$ (1.34)	$ (0.53)	$ (1.00)	$ (1.42)

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (29.7)	$ (11.7)	$ (22.0)	$ (31.2)
Changes in other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(0.7)	3.6	(0.4)	2.7
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent	0.4	(0.3)	0.7	0.1
Pension and postretirement adjustments	0.2	0.9	0.6	3.1
Total other comprehensive income (loss)	(0.1)	4.2	0.9	5.9
Total comprehensive income (loss)	$ (29.8)	$ (7.5)	$ (21.1)	$ (25.3)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ (22.0)	$ (31.2)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	33.3	32.0
Inventory write down	1.2	0.0
Deferred income taxes	(0.5)	(0.9)
Stock-based compensation expense	2.0	2.0
Gain on sale of property	(46.0)	0.0
Gain from long-term disability plan change	0.0	(1.1)
U.S. pension expense (income)	(5.3)	2.8
Other non-cash adjustments, net	0.8	0.6
Changes in operating assets and liabilities:
Receivables	(10.3)	(7.7)
Increase (Decrease) in Insurance Settlements Receivable	3.8	0.0
Inventories	(7.4)	(18.0)
Accounts payable and accrued expenses	24.4	11.2
Other assets and liabilities	(10.8)	(6.0)
Net cash provided by (used for) operating activities	(40.6)	(16.3)
Cash flows from investing activities:
Purchases of property, plant and equipment	(16.1)	(15.2)
Proceeds from sale of assets	65.4	0.1
Net cash provided by (used for) investing activities	49.3	(15.1)
Cash flows from financing activities:
Proceeds from revolving credit facility	70.1	43.1
Payments on revolving credit facility	(55.4)	(79.2)
Issuance of long-term debt	0.2	70.0
Financing costs	0.0	7.4
Payments on long-term debt	(22.1)	(0.2)
Value of shares withheld related to employee tax withholding	(0.2)	0.0
Net cash provided by (used for) financing activities	(7.4)	26.3
Effect of exchange rate changes on cash and cash equivalents	(0.1)	0.2
Net increase (decrease) in cash and cash equivalents	1.2	(4.9)
Cash and cash equivalents at beginning of year	13.7	27.1
Cash and cash equivalents at end of period	14.9	22.2
Supplemental Cash Flow Disclosure:
Interest paid	7.8	3.6
Income taxes paid, net	0.5	0.4
Amounts in accounts payable for capital expenditures	2.4	2.9
Increase (Decrease) in Insurance Liabilities	$ (3.8)	$ 0.0

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, outstanding (in shares)		21,519,761
Beginning balance at Dec. 31, 2019	$ 268.3	$ 0.0	$ (88.9)	$ 676.7	$ (74.7)	$ (244.8)
Beginning balance (in shares) at Dec. 31, 2019			6,837,897
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(13.2)					(13.2)
Stock-based employee compensation, net	0.7		$ 0.7	0.0
Stock-based employee compensation, net (in shares)		36,072	(36,072)
Other comprehensive income (loss)	0.1				0.1
Ending balance at Mar. 31, 2020	255.9	$ 0.0	$ (88.2)	676.7	(74.6)	(258.0)
Ending balance (in shares) at Mar. 31, 2020		21,555,833	6,801,825
Beginning balance at Dec. 31, 2019	268.3	$ 0.0	$ (88.9)	676.7	(74.7)	(244.8)
Beginning balance (in shares) at Dec. 31, 2019			6,837,897
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(31.2)
Other comprehensive income (loss)	5.9				5.9
Ending balance at Sep. 30, 2020	244.9	0.0	$ (87.3)	677.0	(68.8)	(276.0)
Ending balance (in shares) at Sep. 30, 2020			6,750,440
Beginning balance at Mar. 31, 2020	255.9	$ 0.0	$ (88.2)	676.7	(74.6)	(258.0)
Beginning balance (in shares) at Mar. 31, 2020		21,555,833	6,801,825
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(6.3)					(6.3)
Stock-based employee compensation, net	0.6		$ 0.3	0.3
Stock-based employee compensation, net (in shares)		37,689	(18,685)
Other comprehensive income (loss)	1.6				1.6
Ending balance at Jun. 30, 2020	251.8	$ 0.0	$ (87.9)	677.0	(73.0)	(264.3)
Ending balance (in shares) at Jun. 30, 2020			6,783,140
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, outstanding (in shares)		21,593,522
Net income (loss)	(11.7)					(11.7)
Stock-based employee compensation, net	0.6		$ 0.6	0.0
Stock-based employee compensation, net (in shares)		32,700	(32,700)
Other comprehensive income (loss)	4.2				4.2
Ending balance at Sep. 30, 2020	244.9	$ 0.0	$ (87.3)	677.0	(68.8)	(276.0)
Ending balance (in shares) at Sep. 30, 2020			6,750,440
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, outstanding (in shares)		21,626,222
Common stock, outstanding (in shares)		21,638,141
Beginning balance at Dec. 31, 2020	222.6	$ 0.0	$ (87.1)	677.4	(59.3)	(308.4)
Beginning balance (in shares) at Dec. 31, 2020			6,738,521
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	27.2					27.2
Stock-based employee compensation, net	0.5	$ 0.0	$ 0.9	(0.4)
Stock-based employee compensation, net (in shares)		47,721	(47,721)
Other comprehensive income (loss)	(0.6)				(0.6)
Ending balance at Mar. 31, 2021	249.7	$ 0.0	$ (86.2)	677.0	(59.9)	(281.2)
Ending balance (in shares) at Mar. 31, 2021		21,685,862	6,690,800
Beginning balance at Dec. 31, 2020	222.6	$ 0.0	$ (87.1)	677.4	(59.3)	(308.4)
Beginning balance (in shares) at Dec. 31, 2020			6,738,521
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(22.0)
Other comprehensive income (loss)	0.9				0.9
Ending balance at Sep. 30, 2021	203.4	0.0	$ (85.8)	678.0	(58.4)	(330.4)
Ending balance (in shares) at Sep. 30, 2021			6,667,234
Beginning balance at Mar. 31, 2021	249.7	$ 0.0	$ (86.2)	677.0	(59.9)	(281.2)
Beginning balance (in shares) at Mar. 31, 2021		21,685,862	6,690,800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(19.5)					(19.5)
Stock-based employee compensation, net	0.8	$ 0.0	$ 0.0	0.8
Stock-based employee compensation, net (in shares)		0	0
Other comprehensive income (loss)	1.6				1.6
Ending balance at Jun. 30, 2021	232.6	$ 0.0	$ (86.2)	677.8	(58.3)	(300.7)
Ending balance (in shares) at Jun. 30, 2021			6,690,800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, outstanding (in shares)		21,685,862
Net income (loss)	(29.7)					(29.7)
Stock-based employee compensation, net	0.6	$ 0.0	$ 0.4	0.2
Stock-based employee compensation, net (in shares)		23,566	(23,566)
Other comprehensive income (loss)	(0.1)				(0.1)
Ending balance at Sep. 30, 2021	$ 203.4	$ 0.0	$ (85.8)	$ 678.0	$ (58.4)	$ (330.4)
Ending balance (in shares) at Sep. 30, 2021			6,667,234
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, outstanding (in shares)		21,709,428

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Business and Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

BUSINESS AND BASIS OF PRESENTATION

Background

Armstrong Flooring, Inc. 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.

Basis of Presentation

These condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including allowances for expected credit losses, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, sales-related accruals, pension and post-retirement liabilities, 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 and nine months ended September 30, 2021 and 2020 included in this Quarterly Report on Form 10-Q are unaudited. Quarterly results are not necessarily indicative of annual results, primarily due to the seasonality of the business and the possibility of changes in economic conditions between periods.

The accounting policies used in preparing the condensed consolidated financial statements in this Quarterly Report on Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2020. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

All significant intercompany transactions within AFI have been eliminated from the consolidated financial statements.

Reclassifications

Certain reclassifications have been made to prior year amounts to conform with current year classifications.

Recently Adopted and Recently Issued Accounting Standards

On January 1, 2021 we adopted ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This new standard eliminates certain exceptions in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, guidance on accounting for franchise taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

There are no additional accounting standards that have been issued and become effective for the Company at a future date which are expected to have a material impact on our financial condition, results of operations or cash flows.

Going Concern

These financial statements have been prepared assuming that the Company will continue as a going concern. For the nine months ended September 30, 2021, the Company had a net loss of $22.0 million. As of September 30, 2021, the Company had an accumulated deficit of $330.4 million.

The ability of the Company to continue as a going concern is dependent on the Company maintaining adequate capital and liquidity to fund operating losses until it returns to profitability. On November 1, 2021, the Company entered into the Fourth Amendment to its Credit Agreement, which amended its existing asset-backed revolving credit facility and the First Amendment to its Term Loan Agreement, which amended its existing Term Loan Agreement, both of which modify financial covenant requirements for the period ending September 30, 2021. The Company was in compliance with these covenants at September 30, 2021.

Based on current projections, as a result of worsening supply chain disruptions during the third quarter of 2021 and continued inflationary pressures related to transportation, labor and raw materials, which are expected to continue through 2022, the Company does not currently expect to remain in compliance with certain financial covenants under the asset-backed revolving Credit Agreement or the Term Loan Agreement, each, as amended, for the entirety of the twelve-month period from filing of this Form 10-Q. While the Company has implemented substantial pricing actions, continues to work with its lenders to secure longer-term relief and evaluates other initiatives that could enhance its liquidity, there can be no assurances that these actions will be successful. These factors raise substantial doubt about the Company’s ability to continue as a going concern. As a result, the Company has reclassified amounts outstanding under the Amended ABL Credit Facility and the Amended Term Loan Agreement from Long-term debt to Current installments of long-term debt at September 30, 2021 on the Condensed Consolidated Balance Sheets. See Note 7, Debt, for additional details.

Asset Impairment Review

The Company’s business transformation has been delayed by supply chain disruptions and inflationary pressures related to transportation, labor and raw materials. As a result, the Company has experienced continued losses and negative cash flows, which were higher than anticipated. These events constitute a triggering event that required impairment testing of our North America asset group as of the last day of the third quarter of 2021. The results of this impairment testing indicated that, as of September 30, 2021, our North America asset group is not impaired. While no long-lived asset impairment existed as of September 30, 2021, such charges are possible in the future, which could have a material adverse effect on future results.

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Accounts and Notes Receivable

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Accounts and Notes Receivable

ACCOUNTS AND NOTES RECEIVABLE

The following table presents accounts and note receivables, net:

	September 30, 2021		December 31, 2020
Customer trade accounts receivables	$	65.8	$	52.4
Miscellaneous receivables (a)	4.4		9.0
Less: allowance for product claims, discounts, returns and losses	(22.4)		(18.4)
Total accounts and notes receivable, net	$	47.8	$	43.0

(a) Miscellaneous receivables primarily relate to the current portion of a distributor note receivable, tax claim receivables and medical insurance rebate receivables not included in Customer trade account receivables. The decrease in Miscellaneous receivables is primarily due to receipt of an insurance receivable associated with a shareholder lawsuit that was included in the balance at December 31, 2020. See Note 10, Litigation and Related Matters, for additional details.

Allowance for product claims, which is a portion of the allowance for product claims, discounts, returns and losses, represents expected reimbursements for cost associated with warranty repairs and customer accommodation claims, the majority of which is provided to our independent distributors through credits against customer trade accounts receivable from the independent distributor to AFI.

The following table summarizes the activity for the allowance for product claims:

	Nine Months Ended September 30,
	2021		2020
Balance as of January 1	$	(10.3)	$	(9.0)
Reductions for payments	7.4		4.9
Current year claim accruals	(8.7)		(5.9)
Balance as of September 30	$	(11.6)	$	(10.0)

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

The following table presents details related to our inventories, net:

	September 30, 2021		December 31, 2020
Finished goods	$	88.0	$	94.0
Goods in process	5.6		5.7
Raw materials and supplies	35.0		23.2
Total inventories, net	$	128.6	$	122.9

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Property, Plant, and Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

The following table presents details related to our property, plant and equipment, net:

	September 30, 2021		December 31, 2020
Land	$	10.3	$	10.6
Buildings	83.0		81.8
Machinery and equipment	445.5		458.9
Computer software	18.4		15.9
Construction in progress	10.7		16.4
Less: accumulated depreciation and amortization	(334.2)		(336.7)
Total property, plant and equipment, net	$	233.7	$	246.9

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Depreciation expense	$	8.5	$	9.3	$	28.0	$	26.8

On March 10, 2021 the Company sold its South Gate Facility, previously classified as assets held-for-sale, for a purchase price of $76.7 million. The Company received proceeds of $65.3 million, net of fees, expenses and certain amounts held in an environmental-related escrow account. The Company realized a gain of $46.0 million during the three months ended March 31, 2021 on the sale. At December 31, 2020, the Company had classified as Assets held-for-sale, $17.8 million of primarily land and buildings related to the South Gate Facility that met all related criteria under U.S. GAAP.

During the second quarter of 2021, the Company accelerated $3.3 million of depreciation expense for property, plant and equipment for which no future alternative use was identified as part of the Company's business transformation initiatives.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LEASES

The Company's leases, excluding short-term leases, have remaining terms of less than one year to ten years, some of which include options to extend for up 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 following table summarizes components of lease expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost	$	0.1	$	0.1	$	0.3	$	0.3
Operating lease cost	1.5		0.5		3.7		3.3
Short-term lease cost	0.5		—		1.8		0.7
Total lease cost	$	2.1	$	0.6	$	5.8	$	4.3

The following table summarizes supplemental balance sheet information related to leases:

Lease Category	Balance Sheet Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease assets	$	18.9	$	8.5
Finance lease assets	Property, plant and equipment, net	1.2		1.0
Total lease assets		$	20.1	$	9.5
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	2.7	$	2.7
Finance lease liabilities	Current installments of long-term debt	0.5		0.3
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	17.2		5.8
Finance lease liabilities	Long-term debt, net of unamortized debt issuance costs	0.7		0.7
Total lease liabilities		$	21.1	$	9.5

The following table summarizes supplemental cash flow information related to leases:

	Nine Months Ended
	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3.0	$	3.2
Financing cash flows from finance leases	0.3		0.2
ROU assets obtained in exchange for lease obligations:
Operating leases	12.4		2.8
Finance leases	0.4		0.7

During the nine months ended September 30, 2021, the Company added $11.6 million of additional ROU assets related to the commencement of the Technical Center and Headquarters leases.

The following table summarizes weighted average remaining lease term and weighted average discount rate:

	September 30, 2021		December 31, 2020
Weighted average remaining lease term - Operating leases (in years)	7.7		4.1
Weighted average remaining lease term - Finance leases (in years)	2.7		3.0
Weighted average discount rate - Operating leases (%)	11.5	%	9.5	%
Weighted average discount rate - Finances leases (%)	8.3	%	7.1	%

Maturities of lease liabilities at September 30, 2021 were as follows:

	Operating Leases		Finance Leases
2021 (excluding the nine months ended September 30, 2021)	$	1.2	$	0.1
2022	4.5		0.5
2023	4.2		0.4
2024	3.9		0.2
2025	3.3		0.1
Thereafter	13.5		—
Total lease payments	30.6		1.3
Less: Unamortized interest	10.7		0.1
Total	$	19.9	$	1.2

Leases

LEASES

The Company's leases, excluding short-term leases, have remaining terms of less than one year to ten years, some of which include options to extend for up 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 following table summarizes components of lease expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost	$	0.1	$	0.1	$	0.3	$	0.3
Operating lease cost	1.5		0.5		3.7		3.3
Short-term lease cost	0.5		—		1.8		0.7
Total lease cost	$	2.1	$	0.6	$	5.8	$	4.3

The following table summarizes supplemental balance sheet information related to leases:

Lease Category	Balance Sheet Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease assets	$	18.9	$	8.5
Finance lease assets	Property, plant and equipment, net	1.2		1.0
Total lease assets		$	20.1	$	9.5
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	2.7	$	2.7
Finance lease liabilities	Current installments of long-term debt	0.5		0.3
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	17.2		5.8
Finance lease liabilities	Long-term debt, net of unamortized debt issuance costs	0.7		0.7
Total lease liabilities		$	21.1	$	9.5

The following table summarizes supplemental cash flow information related to leases:

	Nine Months Ended
	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3.0	$	3.2
Financing cash flows from finance leases	0.3		0.2
ROU assets obtained in exchange for lease obligations:
Operating leases	12.4		2.8
Finance leases	0.4		0.7

During the nine months ended September 30, 2021, the Company added $11.6 million of additional ROU assets related to the commencement of the Technical Center and Headquarters leases.

The following table summarizes weighted average remaining lease term and weighted average discount rate:

	September 30, 2021		December 31, 2020
Weighted average remaining lease term - Operating leases (in years)	7.7		4.1
Weighted average remaining lease term - Finance leases (in years)	2.7		3.0
Weighted average discount rate - Operating leases (%)	11.5	%	9.5	%
Weighted average discount rate - Finances leases (%)	8.3	%	7.1	%

Maturities of lease liabilities at September 30, 2021 were as follows:

	Operating Leases		Finance Leases
2021 (excluding the nine months ended September 30, 2021)	$	1.2	$	0.1
2022	4.5		0.5
2023	4.2		0.4
2024	3.9		0.2
2025	3.3		0.1
Thereafter	13.5		—
Total lease payments	30.6		1.3
Less: Unamortized interest	10.7		0.1
Total	$	19.9	$	1.2

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Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

INTANGIBLE ASSETS

Intangible assets, net consist of the following:

		September 30, 2021				December 31, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Contractual arrangements	5 years	$	33.4	$	28.4	$	33.4	$	23.6
Land use rights	50 years	3.2		0.6		3.2		0.5
Intellectual property	2-15 years	5.7		2.3		5.6		2.0
Subtotal		42.3		31.3		42.2		26.1
Indefinite-lived intangible assets:
Trademarks and brand names	Indefinite	3.0				2.9
Total intangible assets, net		$	45.3	$	31.3	$	45.1	26.1

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amortization expense	$	1.8	$	1.7	$	5.3	$	5.2

	2021 (a)		2022		2023		2024		2025		Thereafter
Estimated amortization expense	$	1.8	$	3.7	$	0.4	$	0.4	$	0.4	$	2.0

(a) Amortization remaining in current year.

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

DEBT

	September 30, 2021		December 31, 2020
Credit lines (international)	$	4.5	$	4.5
Insurance premiums financing	1.4		1.0
Short-term debt	5.9		5.5
Current installment of Term Loan Facility	48.3		2.6
Amended ABL Credit Facility	24.1		—
Current installment of finance leases	0.5		0.3
Less: Deferred financing costs	(5.6)		—
Current installments of long-term debt	67.3		2.9
Noncurrent portion of Term Loan Facility	—		67.4
Amended ABL Credit Facility	—		10.0
Other financing payable (including finance leases)	0.9		0.7
Total principal balance outstanding, long-term debt	0.9		78.1
Less: Deferred financing costs	—		(6.7)
Long-term debt, net of unamortized debt issuance costs:	0.9		71.4
Total	$	74.1	$	79.8

Upon the sale of our South Gate Facility, we made a mandatory payment of $20.0 million to Pathlight Capital L.P. towards the principal balance on our Term Loan Facility as required by the Term Loan Agreement. As part of the mandatory payment, we paid an additional $0.4 million in prepayment premium fees. Additional proceeds from the South Gate Facility sale were applied to outstanding borrowings under our Amended ABL Credit Facility. Upon completion of the sale, the temporary $30.0 million restriction on available liquidity under the Amended ABL Credit Facility was removed.

During March 2021, we entered a new line of credit in China. The new credit limit is $9.3 million with a one-year maturity date and a variable interest rate of 3.85% to 4.35%. The loan is secured by the land and building of our Chinese facility.

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Pension and Other Postretirement Benefit Programs

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefit Programs

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS

The following table summarizes our pension and postretirement expense (benefit):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Defined-benefit pension, U.S.
Service cost	$	0.2	$	0.6	$	0.7	$	1.9
Interest cost	2.6		3.2		7.7		9.4
Expected return on plan assets	(5.3)		(5.3)		(15.9)		(16.0)
Amortization of net actuarial (gain) loss	0.7		2.5		2.2		7.6
Total, defined-benefit pension, U.S.	$	(1.8)	$	1.0	$	(5.3)	$	2.9
Defined-benefit pension, Canada
Interest cost	$	0.1	$	0.1	$	0.3	$	0.3
Expected return on plan assets	(0.1)		(0.1)		(0.4)		(0.4)
Amortization of net actuarial (gain) loss	0.1		0.1		0.2		0.3
Settlement/curtailment losses	—		—		0.2		—
Total, defined-benefit pension, Canada	$	0.1	$	0.1	$	0.3	$	0.2
Defined-benefit postretirement, U.S.
Interest cost	$	0.3	$	0.5	$	1.0	$	1.5
Amortization of prior service credits	(0.3)		—		(0.8)		(0.2)
Amortization of net actuarial (gain) loss	(0.3)		(1.2)		(1.0)		(3.6)
Total, defined-benefit postretirement, U.S.	$	(0.3)	$	(0.7)	$	(0.8)	$	(2.3)

The caption Other assets on the Company's Condensed Consolidated Balance Sheets include prepaid pension assets of $8.6 million and $1.1 million at September 30, 2021 and December 31, 2020, respectively.

We expect to contribute an additional $1.3 million to our U.S. postretirement benefit plans for the remainder of 2021.

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Financial Instruments

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

The fair value of cash, accounts and notes receivable, trade accounts payable and accrued expenses approximate their carrying amounts due to the short-term maturities of these assets and liabilities.

Fair value of all other financial instruments are as follows:

			Fair Value at September 30, 2021
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	0.2	$	0.2	$	—	$	—	$	0.2
Total Amended ABL Credit Facility	24.1		—		24.1		—		24.1
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	48.3		—		48.5		—		48.5
Total financial liabilities	$	77.1	$	0.2	$	77.1	$	—	$	77.3

			Fair Value at December 31, 2020
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	1.1	$	1.1	$	—	$	—	$	1.1
Total Amended ABL Credit Facility	10.0		—		10.0		—		10.0
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	70.0		—		73.8		—		73.8
Total financial liabilities	$	85.6	$	1.1	$	88.3	$	—	$	89.4

The fair values of our net foreign currency contracts were estimated from market quotes, which are considered to be Level 1 inputs.

Borrowings under the Amended ABL Credit Facility, foreign line of credit and the Term Loan Facility are quoted in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the liability (Level 2 inputs).

We do not have any assets or liabilities that are valued using Level 3 unobservable inputs.

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Litigation and Related Matters

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and December 31, 2020 for potential environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made.

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.

On November 15, 2019, a shareholder filed a putative class action complaint in the United States District Court for the Central District of California alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder, based on alleged false and/or misleading statements or omissions made between March 6, 2018 and November 4, 2019. On March 2, 2020, the court issued an order appointing a lead plaintiff and lead counsel. On July 2, 2020, the lead plaintiff filed an amended complaint asserting similar violations and expanding the alleged class period to cover alleged false and/or misleading statements or omissions made between March 6, 2018 and March 3, 2020. On August 17, 2020, the Company moved to dismiss the amended complaint, and the lead plaintiff filed an opposition on October 1, 2020. On November 30, 2020, the Company reached a settlement in principle to fully resolve this matter. The settlement agreement, which is subject to final court approval, provides in part for a settlement payment of $3.75 million in exchange for the dismissal and a release of all claims against the defendants. Neither the Company nor any individual defendant admits any wrongdoing through the settlement agreement. On January 15, 2021, the lead plaintiff filed a motion for preliminary approval of the settlement. On February 23, 2021, the court granted preliminary approval of the settlement, preliminary certification of the settlement class and approval to provide notice to the class. The final settlement approval hearing was held July 19, 2021. In September 2021, the $3.75 million settlement payment was paid by our insurance provider under our relevant insurance policy and placed into escrow for distribution. The Company had previously recorded the settlement in the captions Accounts and notes receivable, net and Other accrued expenses in the Condensed Consolidated Balance Sheets.

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.

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Revenue

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales
United States	$	121.9	$	116.3	$	359.1	$	345.4
China	26.5		22.3		65.4		46.3
Canada	8.4		7.8		26.4		21.3
Australia	8.0		6.9		24.3		19.4
Other	3.7		3.3		10.3		8.5
Total net sales	$	168.5	$	156.6	$	485.5	$	440.9

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The following table presents details related to our income taxes:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(29.1)		$	(11.4)		$	(21.5)		$	(31.2)
Income tax expense (benefit)	0.6			0.3			0.5			—
Effective tax rate	(2.1)		%	(2.7)		%	(2.3)		%	—		%

For the three months ended September 30, 2021 we recognized an income tax expense related to various foreign jurisdictions.

For the nine months ended September 30, 2021 we recognized income tax expense related to various foreign jurisdictions partially offset by a U.S. income tax benefit related to a reduction in the Company's deferred tax liabilities due to the sale of the South Gate Facility.

For the three months and nine months ended September 30, 2020 we recognized an income tax expense related to various foreign jurisdictions offset by a U.S. income tax benefit. The U.S. income tax benefit relates to a reduction in the Company's valuation allowance due to the tax impact of the gains in other comprehensive income.

As of September 30, 2021, we consider foreign unremitted income to be permanently reinvested.

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Reconciliation of Basic and Diluted Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Earnings Per Share

RECONCILIATION OF BASIC AND DILUTED EARNINGS PER SHARE

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)
Weighted average shares outstanding:
Weighted average common shares outstanding	21,689,928		21,600,477		21,681,655		21,567,629
Weighted average common shares, vested not yet issued	412,519		357,635		255,697		340,599
Weighted average common shares outstanding - Basic	22,102,447		21,958,112		21,937,352		21,908,228
Dilutive impact of stock-based compensation plans	—		—		—		—
Weighted average common shares outstanding - Diluted	22,102,447		21,958,112		21,937,352		21,908,228
Income (loss) per share of common stock:
Basic income (loss) per share of common stock	$	(1.34)	$	(0.53)	$	(1.00)	$	(1.42)
Diluted income (loss) per share of common stock	(1.34)		(0.53)		(1.00)		(1.42)

In periods when there is a net loss, diluted loss per share is calculated using weighted average common shares outstanding, as inclusion of potentially dilutive common shares would be anti-dilutive.

Performance-based employee compensation awards are considered potentially dilutive in periods in which the performance conditions are met.

The following stock-based compensation awards were excluded from the computation of diluted income (loss) per share of common stock:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive or because performance conditions were not met	1,799,523	1,136,418	1,657,099	1,189,835

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the activity, by component, related to the change in accumulated other comprehensive income:

	Foreign Currency Translation Adjustments		Derivative Adjustments		Pension and Postretirement Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2020	$	6.7	$	(1.0)	$	(65.0)	$	(59.3)
Other comprehensive income (loss) before reclassifications, net of tax impact of $—, $—, $— and $—, respectively	(0.4)		—		—		(0.4)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		0.6		0.7		1.3
Net current period other comprehensive income (loss)	(0.4)		0.6		0.7		0.9
Balance, September 30, 2021	$	6.3	$	(0.4)	$	(64.3)	$	(58.4)
Balance, December 31, 2019	$	(0.5)	$	(0.6)	$	(73.6)	$	(74.7)
Other comprehensive income (loss) before reclassifications, net of tax impact of $— , $0.1, $— and $0.1, respectively	2.7		0.4		—		3.1
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(0.3)		3.1		2.8
Net current period other comprehensive income (loss)	2.7		0.1		3.1		5.9
Balance, September 30, 2020	$	2.2	$	(0.5)	$	(70.5)	$	(68.8)

The amounts reclassified from Accumulated other comprehensive income (loss) and the affected line item of the Condensed Consolidated Statements of Operations are presented in the table below.

	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item
	2021		2020		2021		2020
Derivative adjustments:
Foreign exchange contracts - purchases	$	—	$	—	$	0.4	$	(0.2)	Cost of goods sold
Foreign exchange contracts - sales	0.1		—		0.3		(0.1)		Net sales
Total before tax	0.1		—		0.7		(0.3)
Tax impact	—		—		(0.1)		—		Income tax expense (benefit)
Total reclassifications of derivative adjustments, net of tax	0.1		—		0.6		(0.3)
Pension and postretirement adjustments:
Prior service cost (credit) amortization	(0.3)		—		(0.8)		(0.2)		Other expense (income), net
Amortization of net actuarial loss (gain)	0.5		1.4		1.6		4.3		Other expense (income), net
Total before tax	0.2		1.4		0.8		4.1
Tax impact	—		(0.3)		(0.1)		(1.0)		Income tax expense (benefit)
Total reclassifications of pension and postretirement adjustments, net of tax	0.2		1.1		0.7		3.1
Total reclassifications for the period, net of tax	$	0.3	$	1.1	$	1.3	$	2.8

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Business and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

These condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include management estimates and judgments, where appropriate. Management uses estimates to record many items including allowances for expected credit losses, inventory obsolescence, lower of cost or market or net realizable value charges, warranty reserves, sales-related accruals, pension and post-retirement liabilities, 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 and nine months ended September 30, 2021 and 2020 included in this Quarterly Report on Form 10-Q are unaudited. Quarterly results are not necessarily indicative of annual results, primarily due to the seasonality of the business and the possibility of changes in economic conditions between periods.

The accounting policies used in preparing the condensed consolidated financial statements in this Quarterly Report on Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2020. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

All significant intercompany transactions within AFI have been eliminated from the consolidated financial statements.

Recently Adopted Accounting Standards

Recently Adopted and Recently Issued Accounting Standards

On January 1, 2021 we adopted ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This new standard eliminates certain exceptions in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, guidance on accounting for franchise taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

There are no additional accounting standards that have been issued and become effective for the Company at a future date which are expected to have a material impact on our financial condition, results of operations or cash flows.

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Accounts and Notes Receivable (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Accounts and Notes Receivable

The following table presents accounts and note receivables, net:

	September 30, 2021		December 31, 2020
Customer trade accounts receivables	$	65.8	$	52.4
Miscellaneous receivables (a)	4.4		9.0
Less: allowance for product claims, discounts, returns and losses	(22.4)		(18.4)
Total accounts and notes receivable, net	$	47.8	$	43.0

(a) Miscellaneous receivables primarily relate to the current portion of a distributor note receivable, tax claim receivables and medical insurance rebate receivables not included in Customer trade account receivables. The decrease in Miscellaneous receivables is primarily due to receipt of an insurance receivable associated with a shareholder lawsuit that was included in the balance at December 31, 2020. See Note 10, Litigation and Related Matters, for additional details.

Summary of Product Claim Accrual

The following table summarizes the activity for the allowance for product claims:

	Nine Months Ended September 30,
	2021		2020
Balance as of January 1	$	(10.3)	$	(9.0)
Reductions for payments	7.4		4.9
Current year claim accruals	(8.7)		(5.9)
Balance as of September 30	$	(11.6)	$	(10.0)

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

The following table presents details related to our inventories, net:

	September 30, 2021		December 31, 2020
Finished goods	$	88.0	$	94.0
Goods in process	5.6		5.7
Raw materials and supplies	35.0		23.2
Total inventories, net	$	128.6	$	122.9

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Property, Plant, and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The following table presents details related to our property, plant and equipment, net:

	September 30, 2021		December 31, 2020
Land	$	10.3	$	10.6
Buildings	83.0		81.8
Machinery and equipment	445.5		458.9
Computer software	18.4		15.9
Construction in progress	10.7		16.4
Less: accumulated depreciation and amortization	(334.2)		(336.7)
Total property, plant and equipment, net	$	233.7	$	246.9

Schedule of Depreciation Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Depreciation expense	$	8.5	$	9.3	$	28.0	$	26.8

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Components of Lease Expense

The following table summarizes components of lease expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost	$	0.1	$	0.1	$	0.3	$	0.3
Operating lease cost	1.5		0.5		3.7		3.3
Short-term lease cost	0.5		—		1.8		0.7
Total lease cost	$	2.1	$	0.6	$	5.8	$	4.3

Lease Supplemental Balance Sheet Information

The following table summarizes supplemental balance sheet information related to leases:

Lease Category	Balance Sheet Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease assets	$	18.9	$	8.5
Finance lease assets	Property, plant and equipment, net	1.2		1.0
Total lease assets		$	20.1	$	9.5
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	2.7	$	2.7
Finance lease liabilities	Current installments of long-term debt	0.5		0.3
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	17.2		5.8
Finance lease liabilities	Long-term debt, net of unamortized debt issuance costs	0.7		0.7
Total lease liabilities		$	21.1	$	9.5

Lease Supplements Cash Flow Information

The following table summarizes supplemental cash flow information related to leases:

	Nine Months Ended
	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3.0	$	3.2
Financing cash flows from finance leases	0.3		0.2
ROU assets obtained in exchange for lease obligations:
Operating leases	12.4		2.8
Finance leases	0.4		0.7

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:

	September 30, 2021		December 31, 2020
Weighted average remaining lease term - Operating leases (in years)	7.7		4.1
Weighted average remaining lease term - Finance leases (in years)	2.7		3.0
Weighted average discount rate - Operating leases (%)	11.5	%	9.5	%
Weighted average discount rate - Finances leases (%)	8.3	%	7.1	%

Schedule of Future Minimum Payments for Operating Leases

Maturities of lease liabilities at September 30, 2021 were as follows:

	Operating Leases		Finance Leases
2021 (excluding the nine months ended September 30, 2021)	$	1.2	$	0.1
2022	4.5		0.5
2023	4.2		0.4
2024	3.9		0.2
2025	3.3		0.1
Thereafter	13.5		—
Total lease payments	30.6		1.3
Less: Unamortized interest	10.7		0.1
Total	$	19.9	$	1.2

Schedule of Future Minimum Payments for Finance Leases

Maturities of lease liabilities at September 30, 2021 were as follows:

	Operating Leases		Finance Leases
2021 (excluding the nine months ended September 30, 2021)	$	1.2	$	0.1
2022	4.5		0.5
2023	4.2		0.4
2024	3.9		0.2
2025	3.3		0.1
Thereafter	13.5		—
Total lease payments	30.6		1.3
Less: Unamortized interest	10.7		0.1
Total	$	19.9	$	1.2

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consist of the following:

		September 30, 2021				December 31, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Contractual arrangements	5 years	$	33.4	$	28.4	$	33.4	$	23.6
Land use rights	50 years	3.2		0.6		3.2		0.5
Intellectual property	2-15 years	5.7		2.3		5.6		2.0
Subtotal		42.3		31.3		42.2		26.1
Indefinite-lived intangible assets:
Trademarks and brand names	Indefinite	3.0				2.9
Total intangible assets, net		$	45.3	$	31.3	$	45.1	26.1

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net consist of the following:

		September 30, 2021				December 31, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Contractual arrangements	5 years	$	33.4	$	28.4	$	33.4	$	23.6
Land use rights	50 years	3.2		0.6		3.2		0.5
Intellectual property	2-15 years	5.7		2.3		5.6		2.0
Subtotal		42.3		31.3		42.2		26.1
Indefinite-lived intangible assets:
Trademarks and brand names	Indefinite	3.0				2.9
Total intangible assets, net		$	45.3	$	31.3	$	45.1	26.1

Finite-lived Intangible Assets Amortization Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amortization expense	$	1.8	$	1.7	$	5.3	$	5.2

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

	2021 (a)		2022		2023		2024		2025		Thereafter
Estimated amortization expense	$	1.8	$	3.7	$	0.4	$	0.4	$	0.4	$	2.0

(a) Amortization remaining in current year.

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Debt Table (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

	September 30, 2021		December 31, 2020
Credit lines (international)	$	4.5	$	4.5
Insurance premiums financing	1.4		1.0
Short-term debt	5.9		5.5
Current installment of Term Loan Facility	48.3		2.6
Amended ABL Credit Facility	24.1		—
Current installment of finance leases	0.5		0.3
Less: Deferred financing costs	(5.6)		—
Current installments of long-term debt	67.3		2.9
Noncurrent portion of Term Loan Facility	—		67.4
Amended ABL Credit Facility	—		10.0
Other financing payable (including finance leases)	0.9		0.7
Total principal balance outstanding, long-term debt	0.9		78.1
Less: Deferred financing costs	—		(6.7)
Long-term debt, net of unamortized debt issuance costs:	0.9		71.4
Total	$	74.1	$	79.8

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Pension and Other Postretirement Benefit Programs (Tables)

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Summary of Pension and Postretirement Expenses

The following table summarizes our pension and postretirement expense (benefit):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Defined-benefit pension, U.S.
Service cost	$	0.2	$	0.6	$	0.7	$	1.9
Interest cost	2.6		3.2		7.7		9.4
Expected return on plan assets	(5.3)		(5.3)		(15.9)		(16.0)
Amortization of net actuarial (gain) loss	0.7		2.5		2.2		7.6
Total, defined-benefit pension, U.S.	$	(1.8)	$	1.0	$	(5.3)	$	2.9
Defined-benefit pension, Canada
Interest cost	$	0.1	$	0.1	$	0.3	$	0.3
Expected return on plan assets	(0.1)		(0.1)		(0.4)		(0.4)
Amortization of net actuarial (gain) loss	0.1		0.1		0.2		0.3
Settlement/curtailment losses	—		—		0.2		—
Total, defined-benefit pension, Canada	$	0.1	$	0.1	$	0.3	$	0.2
Defined-benefit postretirement, U.S.
Interest cost	$	0.3	$	0.5	$	1.0	$	1.5
Amortization of prior service credits	(0.3)		—		(0.8)		(0.2)
Amortization of net actuarial (gain) loss	(0.3)		(1.2)		(1.0)		(3.6)
Total, defined-benefit postretirement, U.S.	$	(0.3)	$	(0.7)	$	(0.8)	$	(2.3)

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Estimated Fair Values of Financial Instruments

			Fair Value at September 30, 2021
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	0.2	$	0.2	$	—	$	—	$	0.2
Total Amended ABL Credit Facility	24.1		—		24.1		—		24.1
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	48.3		—		48.5		—		48.5
Total financial liabilities	$	77.1	$	0.2	$	77.1	$	—	$	77.3

			Fair Value at December 31, 2020
	Carrying amount		Level 1		Level 2		Level 3		Total
Financial liabilities
Foreign exchange contracts	$	1.1	$	1.1	$	—	$	—	$	1.1
Total Amended ABL Credit Facility	10.0		—		10.0		—		10.0
Total foreign credit facilities	4.5		—		4.5		—		4.5
Term Loan Facility	70.0		—		73.8		—		73.8
Total financial liabilities	$	85.6	$	1.1	$	88.3	$	—	$	89.4

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Revenue (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales
United States	$	121.9	$	116.3	$	359.1	$	345.4
China	26.5		22.3		65.4		46.3
Canada	8.4		7.8		26.4		21.3
Australia	8.0		6.9		24.3		19.4
Other	3.7		3.3		10.3		8.5
Total net sales	$	168.5	$	156.6	$	485.5	$	440.9

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(29.1)		$	(11.4)		$	(21.5)		$	(31.2)
Income tax expense (benefit)	0.6			0.3			0.5			—
Effective tax rate	(2.1)		%	(2.7)		%	(2.3)		%	—		%

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Reconciliation of Basic and Diluted Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income (loss)	$	(29.7)	$	(11.7)	$	(22.0)	$	(31.2)
Weighted average shares outstanding:
Weighted average common shares outstanding	21,689,928		21,600,477		21,681,655		21,567,629
Weighted average common shares, vested not yet issued	412,519		357,635		255,697		340,599
Weighted average common shares outstanding - Basic	22,102,447		21,958,112		21,937,352		21,908,228
Dilutive impact of stock-based compensation plans	—		—		—		—
Weighted average common shares outstanding - Diluted	22,102,447		21,958,112		21,937,352		21,908,228
Income (loss) per share of common stock:
Basic income (loss) per share of common stock	$	(1.34)	$	(0.53)	$	(1.00)	$	(1.42)
Diluted income (loss) per share of common stock	(1.34)		(0.53)		(1.00)		(1.42)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Potentially dilutive common shares excluded from diluted computation, as inclusion would be anti-dilutive or because performance conditions were not met	1,799,523	1,136,418	1,657,099	1,189,835

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the activity, by component, related to the change in accumulated other comprehensive income:

	Foreign Currency Translation Adjustments		Derivative Adjustments		Pension and Postretirement Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2020	$	6.7	$	(1.0)	$	(65.0)	$	(59.3)
Other comprehensive income (loss) before reclassifications, net of tax impact of $—, $—, $— and $—, respectively	(0.4)		—		—		(0.4)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		0.6		0.7		1.3
Net current period other comprehensive income (loss)	(0.4)		0.6		0.7		0.9
Balance, September 30, 2021	$	6.3	$	(0.4)	$	(64.3)	$	(58.4)
Balance, December 31, 2019	$	(0.5)	$	(0.6)	$	(73.6)	$	(74.7)
Other comprehensive income (loss) before reclassifications, net of tax impact of $— , $0.1, $— and $0.1, respectively	2.7		0.4		—		3.1
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(0.3)		3.1		2.8
Net current period other comprehensive income (loss)	2.7		0.1		3.1		5.9
Balance, September 30, 2020	$	2.2	$	(0.5)	$	(70.5)	$	(68.8)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified from Accumulated other comprehensive income (loss) and the affected line item of the Condensed Consolidated Statements of Operations are presented in the table below.

	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item
	2021		2020		2021		2020
Derivative adjustments:
Foreign exchange contracts - purchases	$	—	$	—	$	0.4	$	(0.2)	Cost of goods sold
Foreign exchange contracts - sales	0.1		—		0.3		(0.1)		Net sales
Total before tax	0.1		—		0.7		(0.3)
Tax impact	—		—		(0.1)		—		Income tax expense (benefit)
Total reclassifications of derivative adjustments, net of tax	0.1		—		0.6		(0.3)
Pension and postretirement adjustments:
Prior service cost (credit) amortization	(0.3)		—		(0.8)		(0.2)		Other expense (income), net
Amortization of net actuarial loss (gain)	0.5		1.4		1.6		4.3		Other expense (income), net
Total before tax	0.2		1.4		0.8		4.1
Tax impact	—		(0.3)		(0.1)		(1.0)		Income tax expense (benefit)
Total reclassifications of pension and postretirement adjustments, net of tax	0.2		1.1		0.7		3.1
Total reclassifications for the period, net of tax	$	0.3	$	1.1	$	1.3	$	2.8

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Business and Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ 29.7	$ 19.5	$ (27.2)	$ 11.7	$ 6.3	$ 13.2	$ 22.0	$ 31.2
Accumulated deficit	$ 330.4						$ 330.4		$ 308.4

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Accounts and Notes Receivable - Receivables Net of Allowances (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Customer trade accounts receivables	$ 65.8	$ 52.4
Miscellaneous receivables (a)	4.4	9.0
Less: allowance for product claims, discounts, returns and losses	(22.4)	(18.4)
Accounts and notes receivable, net	$ 47.8	$ 43.0

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Accounts and Notes Receivable - Product Warranties (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance as of January 1	$ (10.3)	$ (9.0)
Reductions for payments	7.4	4.9
Current year claim accruals	(8.7)	(5.9)
Balance as of September 30	$ (11.6)	$ (10.0)

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 88.0	$ 94.0
Goods in process	5.6	5.7
Raw materials and supplies	35.0	23.2
Total inventories, net	$ 128.6	$ 122.9

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Property, Plant, and Equipment (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 10, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 10.3				$ 10.3			$ 10.6
Buildings	83.0				83.0			81.8
Machinery and equipment	445.5				445.5			458.9
Computer software	18.4				18.4			15.9
Construction in progress	10.7				10.7			16.4
Less: accumulated depreciation and amortization	(334.2)				(334.2)			(336.7)
Total property, plant and equipment, net	233.7				233.7			$ 246.9
Depreciation expense	8.5			$ 9.3	28.0	$ 26.8
Purchase price received from assets sold							$ 76.7
Proceeds from Sale of Property Held-for-sale		$ 65.3
Gain on sale of properties	0.0	$ 46.0		$ 0.0	$ 46.0	$ 0.0
Disposal group assets classified as held -for- sale			$ 17.8
Write-down of merchandising materials	$ 3.3

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Leases - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Lease options to extend	10 years
ROU asset	$ 12.4	$ 2.8
Technical Center and Headquarters
Lessee, Lease, Description [Line Items]
ROU asset	$ 11.6
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	10 years

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Leases Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease, Cost [Abstract]
Finance Lease, Right-of-Use Asset, Amortization	$ 0.1	$ 0.1	$ 0.3	$ 0.3
Operating Lease, Cost	1.5	0.5	3.7	3.3
Short-term Lease, Cost	0.5	0.0	1.8	0.7
Lease, Cost	$ 2.1	$ 0.6	$ 5.8	$ 4.3

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Leases Lease Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Assets
Operating lease assets	$ 18.9	$ 8.5
Finance lease assets	1.2	1.0
Total lease assets	20.1	9.5
Current
Operating lease liabilities	2.7	2.7
Finance lease liabilities	0.5	0.3
Noncurrent
Noncurrent operating lease liabilities	17.2	5.8
Finance lease liabilities	0.7	0.7
Total lease liabilities	$ 21.1	$ 9.5

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Leases - Supplemental Cash Flow Leases (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 3.0	$ 3.2
Financing cash flows from finance leases	0.3	0.2
Right of Use Assets Obtained in Exchange for Lease Obligations [Abstract]
Operating leases	12.4	2.8
Finance leases	$ 0.4	$ 0.7

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Leases - Summary of Weighted Average Lease Term and Weighted Average Discount Rate (Details)	Sep. 30, 2021	Dec. 31, 2020
Remaining Lease Term (Years)
Operating leases	7 years 8 months 12 days	4 years 1 month 6 days
Finance leases	2 years 8 months 12 days	3 years
Discount Rate
Operating leases	11.50%	9.50%
Finance leases	8.30%	7.10%

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Leases Maturity of Lease Liabilities (Details) $ in Millions	Sep. 30, 2021 USD ($)
2021 (excluding the nine months ended September 30, 2021)
2021 (excluding the nine months ended September 30, 2021)	$ 1.2
2022	4.5
2023	4.2
2024	3.9
2025	3.3
Thereafter	13.5
Total lease payments	30.6
Less: Unamortized interest	10.7
Total	19.9
Finance Leases
2021 (excluding the nine months ended September 30, 2021)	0.1
2022	0.5
2023	0.4
2024	0.2
2025	0.1
Thereafter	0.0
Future minimum lease payments	1.3
Less: Unamortized interest	0.1
Total	$ 1.2

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Intangible Assets - Finite and Indefinite (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-lived intangible assets:
Gross Carrying Amount	$ 42.3	$ 42.2
Accumulated Amortization	31.3	26.1
Indefinite-lived intangible assets:
Total intangible assets, net	45.3	45.1
Trademarks
Indefinite-lived intangible assets:
Gross Carrying Amount	3.0	2.9
Contractual Rights
Finite-lived intangible assets:
Gross Carrying Amount	33.4	33.4
Accumulated Amortization	$ 28.4	23.6
Indefinite-lived intangible assets:
Estimated Useful Life	5 years
Use Rights
Finite-lived intangible assets:
Gross Carrying Amount	$ 3.2	3.2
Accumulated Amortization	$ 0.6	0.5
Indefinite-lived intangible assets:
Estimated Useful Life	50 years
Intellectual Property
Finite-lived intangible assets:
Gross Carrying Amount	$ 5.7	5.6
Accumulated Amortization	$ 2.3	$ 2.0
Intellectual Property | Minimum
Indefinite-lived intangible assets:
Estimated Useful Life	2 years
Intellectual Property | Maximum
Indefinite-lived intangible assets:
Estimated Useful Life	15 years

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Intangible Assets - Amortization Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,800,000	$ 1,700,000	$ 5,300,000	$ 5,200,000

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Intangible Assets - Expected Annual Amortization Expense (Details) $ in Millions	Sep. 30, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 1.8
2022	3.7
2023	0.4
2024	0.4
2025	0.4
Thereafter	$ 2.0

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Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Short-term debt	$ 5.9	$ 5.5
Current installment of finance leases	0.5	0.3
Current installments of long-term debt	67.3	2.9
Noncurrent debt	0.9	0.7
Total principal balance outstanding, long-term debt	0.9	78.1
Less: Deferred financing costs	(5.6)	(6.7)
Long-term Debt	0.9	71.4
Total	74.1	79.8
Term Loan Facility
Debt Instrument [Line Items]
Current debt	48.3	2.6
Noncurrent debt	0.0	67.4
ABL Facility
Debt Instrument [Line Items]
Current debt	24.1	0.0
Noncurrent debt	0.0	10.0
Line of Credit
Debt Instrument [Line Items]
Short-term debt	4.5	4.5
Insurance Premium Financing
Debt Instrument [Line Items]
Short-term debt	$ 1.4	$ 1.0

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Debt - Debt (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Sep. 30, 2020

Dec. 31, 2020

Debt Instrument [Line Items]

Repayments of Long-term Debt

$ 22.1

$ 0.2

Fees on prepayment of long term debt

$ 0.4

Debt instrument, restriction on available amount

30.0

Credit limit on line of credit

9.3

Noncurrent debt

0.9

$ 0.7

Less: Deferred financing costs

$ (5.6)

(6.7)

Debt

DEBT

	September 30, 2021		December 31, 2020
Credit lines (international)	$	4.5	$	4.5
Insurance premiums financing	1.4		1.0
Short-term debt	5.9		5.5
Current installment of Term Loan Facility	48.3		2.6
Amended ABL Credit Facility	24.1		—
Current installment of finance leases	0.5		0.3
Less: Deferred financing costs	(5.6)		—
Current installments of long-term debt	67.3		2.9
Noncurrent portion of Term Loan Facility	—		67.4
Amended ABL Credit Facility	—		10.0
Other financing payable (including finance leases)	0.9		0.7
Total principal balance outstanding, long-term debt	0.9		78.1
Less: Deferred financing costs	—		(6.7)
Long-term debt, net of unamortized debt issuance costs:	0.9		71.4
Total	$	74.1	$	79.8

Upon the sale of our South Gate Facility, we made a mandatory payment of $20.0 million to Pathlight Capital L.P. towards the principal balance on our Term Loan Facility as required by the Term Loan Agreement. As part of the mandatory payment, we paid an additional $0.4 million in prepayment premium fees. Additional proceeds from the South Gate Facility sale were applied to outstanding borrowings under our Amended ABL Credit Facility. Upon completion of the sale, the temporary $30.0 million restriction on available liquidity under the Amended ABL Credit Facility was removed.

During March 2021, we entered a new line of credit in China. The new credit limit is $9.3 million with a one-year maturity date and a variable interest rate of 3.85% to 4.35%. The loan is secured by the land and building of our Chinese facility.

Minimum

Debt Instrument [Line Items]

Credit facility, interest rate

3.85%

Maximum

Debt Instrument [Line Items]

Credit facility, interest rate

4.35%

Term Loan Facility

Debt Instrument [Line Items]

Repayments of Long-term Debt

$ 20.0

Current installment of Term Loan Facility

$ 48.3

2.6

Noncurrent debt

0.0

67.4

ABL Facility

Debt Instrument [Line Items]

Current installment of Term Loan Facility

24.1

0.0

Noncurrent debt

$ 0.0

$ 10.0

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Pension and Other Postretirement Benefit Programs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position	$ 8.6		$ 8.6		$ 1.1
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	1.3		1.3
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment	0.0	$ 0.0	0.2	$ 0.0
U.S. | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	0.2	0.6	0.7	1.9
Interest cost	2.6	3.2	7.7	9.4
Expected return on plan assets	(5.3)	(5.3)	(15.9)	(16.0)
Amortization of net actuarial loss (gains)	0.7	2.5	2.2	7.6
Net benefit cost	(1.8)	1.0	(5.3)	2.9
U.S. | Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	0.3	0.5	1.0	1.5
Amortization of prior service credits	0.3	0.0	0.8	(0.2)
Amortization of net actuarial loss (gains)	(0.3)	(1.2)	(1.0)	(3.6)
Net benefit cost	(0.3)	(0.7)	(0.8)	(2.3)
Foreign Plan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	0.1	0.1	0.3	0.3
Expected return on plan assets	(0.1)	(0.1)	(0.4)	(0.4)
Amortization of net actuarial loss (gains)	0.1	0.1	0.2	0.3
Net benefit cost	$ 0.1	$ 0.1	$ 0.3	$ 0.2

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Financial Instruments - Schedule of Estimated Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurement [Domain] | Long-term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	$ 48.5	$ 73.8
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.2	1.1
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	77.1	88.3
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Foreign exchange contracts | Not Designated as Hedging Instrument | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.2	1.1
Foreign exchange contracts | Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Foreign exchange contracts | Not Designated as Hedging Instrument | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Revolving Credit Facility | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Revolving Credit Facility | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	24.1	10.0
Revolving Credit Facility | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Foreign Line of Credit | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Foreign Line of Credit | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	4.5	4.5
Foreign Line of Credit | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Long-term Debt | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Long-term Debt | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	48.5	73.8
Long-term Debt | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.0	0.0
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	77.1	85.6
Carrying amount | Foreign exchange contracts | Not Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	0.2	1.1
Carrying amount | Revolving Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	24.1	10.0
Carrying amount | Foreign Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	4.5	4.5
Carrying amount | Long-term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	48.3	70.0
Estimated fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial liabilities	$ 77.3	$ 89.4

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Litigation and Related Matters (Details)	9 Months Ended
	Sep. 30, 2021 USD ($)
Loss Contingencies [Line Items]
Environmental liabilities	$ 0
Class action complaint filed in United States District Court for the Central District of California
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party	$ 3,750,000

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 168.5	$ 156.6	$ 485.5	$ 440.9
United States
Disaggregation of Revenue [Line Items]
Net sales	121.9	116.3	359.1	345.4
China
Disaggregation of Revenue [Line Items]
Net sales	26.5	22.3	65.4	46.3
CANADA
Disaggregation of Revenue [Line Items]
Net sales	8.4	7.8	26.4	21.3
AUSTRALIA
Disaggregation of Revenue [Line Items]
Net sales	8.0	6.9	24.3	19.4
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 3.7	$ 3.3	$ 10.3	$ 8.5

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
(Loss) from continuing operations before income taxes	$ (29.1)	$ (11.4)	$ (21.5)	$ (31.2)
Income tax (benefit)	$ (0.6)	$ (0.3)	$ (0.5)	$ 0.0
Effective tax rate	(2.10%)	(2.70%)	(2.30%)	0.00%

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Reconciliation of Basic and Diluted Earnings Per Share-Reconciliation and Calculation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net (loss) from continuing operations	$ (29.7)	$ (11.7)		$ (31.2)
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted Average Number of Shares Issued, Basic	21,689,928	21,600,477	21,681,655	21,567,629
Weighted average number of vested shares not yet issued (in shares)	412,519	357,635	255,697	340,599
Weighted average number of common shares outstanding - Basic (in shares)	22,102,447	21,958,112	21,937,352	21,908,228
Dilutive stock-based compensation awards outstanding (in shares)	0	0	0	0
Weighted average number of common shares outstanding - Diluted (in shares)	22,102,447	21,958,112	21,937,352	21,908,228
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share (in dollars per share)	$ (1.34)	$ (0.53)	$ (1.00)	$ (1.42)
Diluted earnings (loss) per share (in dollars per share)	$ (1.34)	$ (0.53)	$ (1.00)	$ (1.42)

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Reconciliation of Basic and Diluted Earnings Per Share - Excluded from Computation (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,799,523	1,136,418	1,657,099	1,189,835

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Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 232.6	$ 249.7	$ 222.6	$ 251.8	$ 255.9	$ 268.3	$ 222.6	$ 268.3
Total other comprehensive income (loss)	(0.1)	1.6	(0.6)	4.2	1.6	0.1	0.9	5.9
Ending balance	203.4	232.6	249.7	244.9	251.8	255.9	203.4	244.9
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			6.7			(0.5)	6.7	(0.5)
Other comprehensive (loss) income before reclassifications, net of tax impact							(0.4)	2.7
Amounts reclassified from accumulated other comprehensive income (loss), net of tax							0.0	0.0
Total other comprehensive income (loss)							(0.4)	2.7
Ending balance	6.3			2.2			6.3	2.2
AOCI, tax	0.0			0.0			0.0	0.0
Derivative Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1.0)			(0.6)	(1.0)	(0.6)
Other comprehensive (loss) income before reclassifications, net of tax impact							0.0	0.4
Amounts reclassified from accumulated other comprehensive income (loss), net of tax							0.6	(0.3)
Total other comprehensive income (loss)							0.6	0.1
Ending balance	(0.4)			(0.5)			(0.4)	(0.5)
AOCI, tax	0.0			0.1			0.0	0.1
Pension and Postretirement Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(65.0)			(73.6)	(65.0)	(73.6)
Other comprehensive (loss) income before reclassifications, net of tax impact							0.0	0.0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax							0.7	3.1
Total other comprehensive income (loss)							0.7	3.1
Ending balance	(64.3)			(70.5)			(64.3)	(70.5)
AOCI, tax	0.0			0.0			0.0	0.0
Total Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(58.3)	(59.9)	(59.3)	(73.0)	(74.6)	(74.7)	(59.3)	(74.7)
Other comprehensive (loss) income before reclassifications, net of tax impact							(0.4)	3.1
Amounts reclassified from accumulated other comprehensive income (loss), net of tax							1.3	2.8
Total other comprehensive income (loss)	(0.1)	1.6	(0.6)	4.2	1.6	0.1	0.9	5.9
Ending balance	(58.4)	$ (58.3)	$ (59.9)	(68.8)	$ (73.0)	$ (74.6)	(58.4)	(68.8)
AOCI, tax	$ 0.0			$ 0.1			$ 0.0	$ 0.1

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Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	$ 155.6			$ 129.0			$ 431.5	$ 365.3
Net sales	168.5			156.6			485.5	440.9
Total before tax	(29.1)			(11.4)			(21.5)	(31.2)
Tax impact	0.6			0.3			0.5	0.0
Net income (loss)	(29.7)	$ (19.5)	$ 27.2	(11.7)	$ (6.3)	$ (13.2)	(22.0)	(31.2)
Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	0.3			1.1			1.3	2.8
Derivative Adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax							0.6	(0.3)
Derivative Adjustments | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	0.1			0.0			0.7	(0.3)
Tax impact	0.0			0.0			(0.1)	0.0
Net income (loss)	0.1			0.0			0.6	(0.3)
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	0.0			0.0			0.4	(0.2)
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			0.0			0.3	(0.1)
Amortization of net actuarial loss (gain) | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	0.2			1.4			0.8	4.1
Other expense, net	0.5			1.4			1.6	4.3
Pension and Postretirement Adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax							0.7	3.1
Pension and Postretirement Adjustments | Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax impact	0.0			(0.3)			(0.1)	(1.0)
Net income (loss)	0.2			1.1			0.7	3.1
Prior service cost (credit) amortization	$ (0.3)			$ 0.0			$ (0.8)	$ (0.2)