NOTE 24. SHAREHOLDERS' EQUITY Common Stock Repurchase Plan Since July 29, 2016, our Board of Directors has approved our share repurchase program pursuant to which we are authorized to repurchase up to $1,200.0 million of our outstanding shares of common stock through December 31, 2023 (the “Program”). We had $513.8 million remaining under the Board’s repurchase authorization as of December 31, 2021. Repurchases under the Program may be made through open market, block and privately negotiated transactions, including Rule 10b5-1 plans, at such times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. The Program does not obligate AWI to repurchase any particular amount of common stock and may be suspended or discontinued at any time without notice. During 2021, we repurchased 0.8 million shares under the Program for a total cost of $80.0 million, excluding commissions, or an average price of $101.92 per share. Since inception, we have repurchased 10.5 million shares under the Program for a total cost of $686.2 million, excluding commissions, or an average price of $65.31 per share. Dividends In February, April and July 2021, our Board of Directors declared $0.21 per share quarterly dividends, which were paid to shareholders in March, May and August 2021. In October 2021, our Board of Directors declared a $0.231 per share quarterly dividend, which was paid to shareholders in November 2021. On February 16, 2022, our Board of Directors declared a $0.231 per share quarterly dividend to be paid in March 2022. Accumulated Other Comprehensive (Loss) The balance of each component of accumulated other comprehensive (loss), net of tax is presented in the table below.
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December 31, 2021 |
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December 31, 2020 |
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Foreign currency translation adjustments |
|
$ |
2.3 |
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$ |
2.3 |
|
Derivative (loss), net |
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(9.1 |
) |
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|
(19.0 |
) |
Pension and postretirement adjustments |
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|
(102.8 |
) |
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|
(92.6 |
) |
Accumulated other comprehensive (loss) |
|
$ |
(109.6 |
) |
|
$ |
(109.3 |
) |
The amounts and related tax effects allocated to each component of other comprehensive income (loss) for 2021, 2020, and 2019 are presented in the tables below.
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Pre-tax Amount |
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Tax (Expense) Benefit |
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After-tax Amount |
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2021 |
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Derivative gain, net |
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$ |
13.4 |
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|
$ |
(3.5 |
) |
|
$ |
9.9 |
|
Pension and postretirement adjustments |
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|
(13.4 |
) |
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3.2 |
|
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|
(10.2 |
) |
Total other comprehensive (loss) |
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$ |
- |
|
|
$ |
(0.3 |
) |
|
$ |
(0.3 |
) |
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Pre-tax Amount |
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Tax Benefit (Expense) |
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After-tax Amount |
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2020 |
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Foreign currency translation adjustments |
|
$ |
(7.1 |
) |
|
$ |
- |
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|
$ |
(7.1 |
) |
Derivative (loss), net |
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(14.2 |
) |
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3.7 |
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(10.5 |
) |
Pension and postretirement adjustments |
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|
382.9 |
|
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|
(98.5 |
) |
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|
284.4 |
|
Total other comprehensive income (loss) |
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$ |
361.6 |
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$ |
(94.8 |
) |
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$ |
266.8 |
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Pre-tax Amount |
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Tax Benefit (Expense) |
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After-tax Amount |
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2019 |
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Foreign currency translation adjustments |
|
$ |
84.1 |
|
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$ |
- |
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|
$ |
84.1 |
|
Derivative (loss), net |
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(18.8 |
) |
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4.9 |
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(13.9 |
) |
Pension and postretirement adjustments |
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16.8 |
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(3.6 |
) |
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13.2 |
|
Total other comprehensive income |
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$ |
82.1 |
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$ |
1.3 |
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$ |
83.4 |
|
The following table summarizes the activity, by component, related to the change in AOCI for December 31, 2021 and 2020:
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Foreign
Currency
Translation Adjustments |
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Derivative
Gain (Loss) (1) |
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Pension and Postretirement Adjustments (1) |
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Total
Accumulated
Other
Comprehensive
(Loss) (1) |
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Balance, December 31, 2019 |
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$ |
9.4 |
|
|
$ |
(8.5 |
) |
|
$ |
(377.0 |
) |
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$ |
(376.1 |
) |
Other comprehensive (loss) income before reclassifications,
net of tax benefit (expense) of $ -, $2.5, ($3.0) and ($0.5) |
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(0.2 |
) |
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(6.1 |
) |
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6.1 |
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(0.2 |
) |
Amounts reclassified from accumulated other
comprehensive (loss) |
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(6.9 |
) |
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(4.4 |
) |
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278.3 |
|
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267.0 |
|
Net current period other comprehensive (loss) income |
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(7.1 |
) |
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(10.5 |
) |
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284.4 |
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266.8 |
|
Balance, December 31, 2020 |
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2.3 |
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(19.0 |
) |
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(92.6 |
) |
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(109.3 |
) |
Other comprehensive income (loss) before reclassifications,
net of tax (expense) benefit of $-, ($5.4), $3.5 and ($1.9) |
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- |
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16.5 |
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(11.0 |
) |
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5.5 |
|
Amounts reclassified from accumulated other
comprehensive (loss) |
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- |
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(6.6 |
) |
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0.8 |
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(5.8 |
) |
Net current period other comprehensive income (loss) |
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- |
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9.9 |
|
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(10.2 |
) |
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(0.3 |
) |
Balance, December 31, 2021 |
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$ |
2.3 |
|
|
$ |
(9.1 |
) |
|
$ |
(102.8 |
) |
|
$ |
(109.6 |
) |
(1)Amounts are net of tax The amounts reclassified from AOCI and the affected line item of the Consolidated Statement of Operations and Comprehensive Income are presented in the table below.
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Amounts
Reclassified from
Accumulated Other
Comprehensive
(Loss) |
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Affected Line Item in the
Consolidated
Statement of Operations
and Comprehensive
Income |
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2021 |
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2020 |
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Derivative Adjustments: |
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Interest rate swap contracts, before tax |
|
$ |
(8.5 |
) |
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$ |
(5.6 |
) |
|
Interest expense |
Tax impact |
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1.9 |
|
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1.2 |
|
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Income tax expense |
Total (income), net of tax |
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(6.6 |
) |
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(4.4 |
) |
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Pension and Postretirement Adjustments: |
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Prior service credit amortization |
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(0.3 |
) |
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(0.3 |
) |
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Other non-operating (income) expense, net |
Amortization of net actuarial loss (gain) |
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1.4 |
|
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(0.3 |
) |
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Other non-operating (income) expense, net |
Settlement |
|
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- |
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374.4 |
|
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Other non-operating (income) expense, net |
Total loss, before tax |
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1.1 |
|
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|
373.8 |
|
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Tax impact |
|
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(0.3 |
) |
|
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(95.5 |
) |
|
Income tax expense |
Total loss, net of tax |
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0.8 |
|
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278.3 |
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Foreign Currency Translation Adjustments: |
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Sale of idled plant in China |
|
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- |
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(6.9 |
) |
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Total (income), net of tax |
|
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- |
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(6.9 |
) |
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Total reclassifications for the period |
|
$ |
(5.8 |
) |
|
$ |
267.0 |
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