10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2022

OR

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

For the transition period from to

Commission File Number: 1-2116

ARMSTRONG WORLD INDUSTRIES, INC.

(Exact Name of Registrant as Specified in its Charter)

Pennsylvania	23-0366390
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2500 Columbia Avenue, Lancaster, Pennsylvania	17603
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (717) 397-0611

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, $0.01 par value per share	AWI	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 ☒ 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 the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the 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 in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of Armstrong World Industries, Inc.’s common stock outstanding as of April 21, 2022 – 46,960,247.

TABLE OF CONTENTS

		PAGE
Cautionary Note Regarding Forward-Looking Statements		3
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
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

2

When we refer to “AWI,” the “Company,” “we,” “our” or “us,” we are referring to Armstrong World Industries, Inc. and its subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q and the documents incorporated by reference herein 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 markets and their effect on our operating results; the impacts of COVID-19 on our business; our expectations regarding the payment of dividends; and our ability to increase revenues, earnings and earnings before interest, taxes, depreciation and amortization (as discussed below). 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:

Risks Related to Our Operations

•key customers;

•availability and costs of manufacturing inputs or sourced products;

•Worthington Armstrong Venture (“WAVE”), our joint venture with Worthington Industries, Inc;

•labor;

•costs savings and productivity initiatives;

•sustainability;

Risks Related to Our Strategy

•digitalization initiatives and new technology;

•strategic transactions;

Risks Related to Financial Matters

•negative tax consequences;

•our indebtedness;

•our liquidity;

•covenants in our debt agreements;

•defined benefit plan obligations;

•the tax consequences of the separation of our flooring business from our ceilings business;

Risks Related to Legal and Regulatory Matters

•environmental matters;

•litigation;

•claims;

•intellectual property rights;

•international operations;

Risks Related to General Economic and Other Factors

•economic conditions;

•construction activity;

•competition;

•customer consolidation;

•information technology disruptions and cybersecurity breaches;

•geographic concentration;

•dividend payments;

3

•public health epidemics or pandemics (like COVID-19); and

•other risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), press releases and other communications, including those set forth under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021, and in the documents incorporated by reference herein and therein.

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.

4

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Earnings and Comprehensive Income

(amounts in millions, except per share data)

Unaudited

	Three Months Ended
	March 31,
	2022			2021
Net sales	$	282.6		$	251.9
Cost of goods sold		180.4			164.4
Gross profit		102.2			87.5
Selling, general and administrative expenses		57.1			54.2
Loss related to change in fair value of contingent consideration		0.1			0.2
Equity (earnings) from joint venture		(18.2	)		(21.0	)
Operating income		63.2			54.1
Interest expense		5.1			5.7
Other non-operating (income), net		(1.3	)		(1.3	)
Earnings from continuing operations before income taxes		59.4			49.7
Income tax expense		15.0			12.2
Earnings from continuing operations		44.4			37.5
Loss from disposal of discontinued businesses, net of tax expense of $- and $1.7		-			(2.1	)
Net loss from discontinued operations		-			(2.1	)
Net earnings	$	44.4		$	35.4
Other comprehensive income, net of tax:
Foreign currency translation adjustments		0.7			0.6
Derivative gain, net		10.6			3.8
Pension and postretirement adjustments		0.6			0.2
Total other comprehensive income		11.9			4.6
Total comprehensive income	$	56.3		$	40.0
Earnings per share of common stock, continuing operations:
Basic	$	0.94		$	0.78
Diluted	$	0.94		$	0.78
Loss per share of common stock, discontinued operations:
Basic	$	-		$	(0.04	)
Diluted	$	-		$	(0.04	)
Net earnings per share of common stock:
Basic	$	0.94		$	0.74
Diluted	$	0.94		$	0.74
Average number of common shares outstanding:
Basic		47.1			47.8
Diluted		47.2			48.0

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

5

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Balance Sheets

(amounts in millions, except share and per share data)

	Unaudited
	March 31, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	76.1		$	98.1
Accounts and notes receivable, net		114.1			109.1
Inventories, net		103.9			90.2
Income taxes receivable		0.4			1.4
Other current assets		23.6			23.1
Total current assets		318.1			321.9
Property, plant, and equipment, less accumulated depreciation and amortization of    $504.7 and $494.0, respectively		539.2			542.8
Operating lease assets		21.6			21.0
Finance lease assets		17.8			18.4
Prepaid pension costs		110.3			109.0
Investment in joint venture		57.5			50.0
Goodwill		167.1			167.0
Intangible assets, net		416.9			421.4
Income taxes receivable		-			0.6
Other non-current assets		59.6			57.9
Total assets	$	1,708.1		$	1,710.0
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt		25.0			25.0
Accounts payable and accrued expenses		145.4			174.9
Operating lease liabilities		6.1			5.6
Finance lease liabilities		2.3			2.2
Income taxes payable		14.0			1.9
Total current liabilities		192.8			209.6
Long-term debt, less current installments		615.3			606.4
Operating lease liabilities		15.7			15.6
Finance lease liabilities		16.2			16.8
Postretirement benefit liabilities		70.7			71.1
Pension benefit liabilities		36.4			36.9
Other long-term liabilities		32.0			46.7
Income taxes payable		19.6			20.3
Deferred income taxes		171.8			166.9
Total non-current liabilities		977.7			980.7
Shareholders' equity:
Common stock, $0.01 par value per share, 200 million shares authorized, 62,792,506    shares issued and 47,018,645 shares outstanding as of March 31, 2022 and    62,775,155 shares issued and 47,302,299 shares outstanding as of December 31, 2021		0.6			0.6
Capital in excess of par value		563.9			561.3
Retained earnings		1,044.8			1,011.4
Treasury stock, at cost, 15,773,861 shares as of March 31, 2022 and 15,472,856     shares as of December 31, 2021		(974.0	)		(944.0	)
Accumulated other comprehensive loss		(97.7	)		(109.6	)
Total shareholders' equity		537.6			519.7
Total liabilities and shareholders' equity	$	1,708.1		$	1,710.0

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

6

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(amounts in millions, except share data)

Unaudited

	Three Months Ended March 31, 2022
																Accumulated
						Additional										Other
	Common Stock					Paid-In		Retained			Treasury Stock					Comprehensive
	Shares			Amount		Capital		Earnings			Shares		Amount			(Loss)			Total
December 31, 2021		47,302,299		$	0.6	$	561.3	$	1,011.4			15,472,856	$	(944.0	)	$	(109.6	)	$	519.7
Stock issuance, net		17,351			-		-		-			-		-			-			-
Cash dividends - $0.231 per common share		-			-		-		(11.0	)		-		-			-			(11.0	)
Share-based employee compensation		-			-		2.6		-			-		-			-			2.6
Net earnings		-			-		-		44.4			-		-			-			44.4
Other comprehensive income		-			-		-		-			-		-			11.9			11.9
Acquisition of treasury stock		(301,005	)		-		-		-			301,005		(30.0	)		-			(30.0	)
March 31, 2022		47,018,645		$	0.6	$	563.9	$	1,044.8			15,773,861	$	(974.0	)	$	(97.7	)	$	537.6
	Three Months Ended March 31, 2021
																Accumulated
						Additional										Other
	Common Stock					Paid-In		Retained			Treasury Stock					Comprehensive
	Shares			Amount		Capital		Earnings			Shares		Amount			(Loss)			Total
December 31, 2020		47,913,821		$	0.6	$	553.7	$	869.8			14,685,510	$	(863.9	)	$	(109.3	)	$	450.9
Stock issuance, net		40,278			-		-		-			-		-			-			-
Cash dividends - $0.21 per common share		-			-		-		(10.2	)		-		-			-			(10.2	)
Share-based employee compensation		-			-		2.9		-			-		-			-			2.9
Net earnings		-			-		-		35.4			-		-			-			35.4
Other comprehensive income		-			-		-		-			-		-			4.6			4.6
Acquisition of treasury stock		(125,635	)		-		-		-			125,635		(10.0	)		-			(10.0	)
March 31, 2021		47,828,464		$	0.6	$	556.6	$	895.0			14,811,145	$	(873.9	)	$	(104.7	)	$	473.6

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

7

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(amounts in millions)

Unaudited

	Three Months Ended
	March 31,
	2022			2021
Cash flows from operating activities:
Net earnings	$	44.4		$	35.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		21.2			25.6
Deferred income taxes		1.1			1.2
Share-based compensation		2.9			2.3
Loss on disposal of discontinued operations		-			0.4
Equity earnings from joint venture		(18.2	)		(21.0	)
U.S. pension (credit)		(0.2	)		-
Loss from change in fair value of contingent consideration		0.1			0.2
Payments of contingent consideration in excess of acquisition-date fair value		(1.9	)		-
Other non-cash adjustments, net		0.2			0.2
Changes in operating assets and liabilities:
Receivables		(13.1	)		(12.9	)
Inventories		(13.6	)		(2.1	)
Accounts payable and accrued expenses		(17.5	)		(9.2	)
Income taxes receivable and payable, net		13.0			5.5
Other assets and liabilities		(1.7	)		(6.0	)
Net cash provided by operating activities		16.7			19.6
Cash flows from investing activities:
Purchases of property, plant and equipment		(12.0	)		(13.2	)
Return of investment from joint venture		12.2			16.5
Payments to Knauf upon disposal of discontinued operations		-			(11.8	)
Other investing activities		-			(0.3	)
Net cash provided by (used for) investing activities		0.2			(8.8	)
Cash flows from financing activities:
Proceeds from revolving credit facility		25.0			50.0
Payments of revolving credit facility		(10.0	)		(50.0	)
Payments of long-term debt		(6.2	)		(6.3	)
Dividends paid		(10.9	)		(10.1	)
Proceeds from share-based compensation plans, net of tax		0.2			0.7
Payments for finance leases		(0.6	)		(0.5	)
Payments of acquisition-related contingent consideration		(6.7	)		-
Payments for treasury stock acquired		(30.0	)		(10.0	)
Net cash (used for) financing activities		(39.2	)		(26.2	)
Effect of exchange rate changes on cash and cash equivalents		0.3			0.1
Net (decrease) in cash and cash equivalents		(22.0	)		(15.3	)
Cash and cash equivalents at beginning of year		98.1			136.9
Cash and cash equivalents at end of period	$	76.1		$	121.6
Supplemental Cash Flow Disclosures:
Interest paid	$	4.9		$	5.7
Income tax payments, net		0.9			7.2
Amounts in accounts payable for capital expenditures		0.3			0.7

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

8

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

NOTE 1. BUSINESS AND BASIS OF PRESENTATION

Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891. When we refer to “AWI,” the “Company,” “we,” “our” or “us” in these notes, we are referring to AWI and its subsidiaries.

Except as disclosed in this note, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2021. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. 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 first quarter of 2022 and 2021 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in general economic conditions.

These Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include management estimates and judgments, where appropriate. Management utilizes estimates to record many items, including certain asset values, contingent purchase price liabilities, allowances for bad debts, inventory obsolescence and lower of cost and net realizable value charges, warranty reserves, workers’ compensation, general liability and environmental claims, and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information and may confer with outside parties, including external counsel. Actual results may differ from these estimates.

Certain prior year amounts have been reclassified in the Condensed Consolidated Financial Statements to conform to the 2022 presentation.

COVID-19 Considerations

The COVID-19 pandemic has created significant volatility and economic disruption and the impact on our future consolidated results of operations is uncertain. The extent to which COVID-19 impacts our employees, operations, customers, suppliers and financial results depends on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic (and whether there is a resurgence or multiple resurgences in the future, including the impact of new variants); government actions taken in response to the pandemic, including required shutdowns, vaccine or testing mandates; the availability, acceptance, distribution and continued effectiveness of vaccines; the impact on construction activity; supply chain disruptions; rising inflation; labor shortages; the effect on our customers demand for our ceiling and wall systems; sustained remote or hybrid work models; our ability to manufacture and sell our products; and the ability of our customers to pay for our products. While many of our products support life sustaining activities and essential construction, we, and certain of our customers or suppliers, may be impacted by state actions, orders and policies regarding the COVID-19 pandemic, including temporary closures of non-life sustaining businesses, shelter-in-place orders, and travel, social distancing and quarantine policies, the implementation and enforcement of which vary by individual U.S. states and by individual countries in the Americas. We did not record any asset impairments, inventory charges or material bad debt reserves related to COVID-19 during the first quarter of 2022 and 2021 but future events may require such charges, which could have a material adverse effect on our financial condition, liquidity or results of operations.

NOTE 2. SEGMENT RESULTS

	Three Months Ended
	March 31,
	2022		2021
Net sales
Mineral Fiber	$	203.2	$	188.7
Architectural Specialties		79.4		63.2
Total net sales	$	282.6	$	251.9

9

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

	Three Months Ended
	March 31,
	2022			2021
Segment operating income (loss)
Mineral Fiber	$	57.6		$	60.6
Architectural Specialties		6.5			(4.9	)
Unallocated Corporate		(0.9	)		(1.6	)
Total consolidated operating income	$	63.2		$	54.1

The Architectural Specialties operating loss for the three months ended March 31, 2021 was driven by intangible asset amortization and other acquisition-related expenses related to our acquisitions of TURF Design, Inc. ("Turf") in July 2020, Moz Designs, Inc. ("Moz") in August 2020, and Arktura LLC ("Arktura") in December 2020.

	Three Months Ended
	March 31,
	2022			2021
Total consolidated operating income	$	63.2		$	54.1
Interest expense		5.1			5.7
Other non-operating (income), net		(1.3	)		(1.3	)
Earnings from continuing operations before income taxes	$	59.4		$	49.7

	March 31, 2022		December 31, 2021
Segment assets
Mineral Fiber	$	1,142.7	$	1,133.9
Architectural Specialties		378.1		366.3
Unallocated Corporate		187.3		209.8
Total consolidated assets	$	1,708.1	$	1,710.0

NOTE 3. REVENUE

Disaggregation of Revenues

Our Mineral Fiber and Architectural Specialties operating segments both manufacture and sell ceiling and wall systems (primarily mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum and felt) throughout the Americas. We disaggregate revenue based on our product-based segments and major customer channels, as they represent the most appropriate depiction of how the nature, amount and timing of revenues and cash flows are affected by economic factors. Net sales by major customer channel are as follows:

Distributors – represents net sales to building materials distributors who re-sell our products to contractors, subcontractors’ alliances, large architect and design firms, and major facility owners. Geographically, this category includes sales throughout the U.S., Canada, and Latin America.

Home centers – represents net sales to home centers, such as Lowe’s Companies, Inc. and The Home Depot, Inc. This category includes sales primarily to U.S. customers.

Direct customers – represents net sales to contractors, subcontractors, and large architect and design firms. This category includes sales primarily to U.S. customers.

Retailers and other – represents net sales to independent retailers and certain national account customers, including wholesalers who re-sell our products to dealers who service builders, contractors and consumers, online customers, major facility owners, group purchasing organizations and maintenance, repair and operating entities. Geographically, this category includes sales throughout the U.S. and Canada.

10

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

The following tables provide net sales by major customer channel within our Mineral Fiber and Architectural Specialties segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended
	March 31,
Mineral Fiber	2022		2021
Distributors	$	143.5	$	135.3
Home centers		28.1		26.8
Direct customers		14.3		12.8
Retailers and other		17.3		13.8
Total	$	203.2	$	188.7

	Three Months Ended
	March 31,
Architectural Specialties	2022		2021
Distributors	$	38.8	$	34.3
Direct customers		39.4		28.1
Retailers and other		1.2		0.8
Total	$	79.4	$	63.2

NOTE 4. DISCONTINUED OPERATIONS

EMEA and Pacific Rim Businesses

In 2019, we completed the sale of certain subsidiaries comprising our businesses and operations in Europe, the Middle East and Africa (including Russia) (“EMEA”) and the Pacific Rim, including the corresponding businesses and operations conducted by Worthington Armstrong Venture (“WAVE”), our joint venture with Worthington Industries, Inc. (“Worthington”) in which AWI holds a 50% interest (collectively, the “Sale”), to Knauf International GmbH (“Knauf”). During the three months ended March 31, 2021, we recorded a pre-tax loss on sale of $0.4 million for final purchase price adjustments related to certain pension liabilities included in the Sale and paid $11.8 million to Knauf related to this purchase price adjustment. We did not record a gain or loss during the three months ended March 31, 2022.

Summarized Financial Information of Discontinued Operations

The following table details the line items that comprise discontinued operations on the Condensed Consolidated Statements of Earnings and Comprehensive Income.

	Three Months Ended
	March 31,
	2021
Loss from disposal of discontinued businesses, before income tax	$	(0.4	)
Income tax expense		1.7
Loss from disposal of discontinued businesses, net of tax		(2.1	)
Net loss from discontinued operations	$	(2.1	)

NOTE 5. ACCOUNTS AND NOTES RECEIVABLE

	March 31, 2022			December 31, 2021
Customer receivables	$	109.9		$	104.7
Miscellaneous receivables		8.0			7.9
Less allowance for warranties, discounts and losses		(3.8	)		(3.5	)
Accounts and notes receivable, net	$	114.1		$	109.1

We sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions. We consider these factors and the financial condition of each customer when establishing our allowance for losses from doubtful accounts.

11

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

As of March 31, 2022 and December 31, 2021, miscellaneous receivables included a $6.0 million and a $5.9 million Employee Retention Credit, respectively, representing a refundable payroll tax credit for eligible wages paid to our employees in 2020 and 2021 under the Coronavirus Aid, Relief, and Economic Recovery Act.

NOTE 6. INVENTORIES

	March 31, 2022			December 31, 2021
Finished goods	$	56.6		$	49.9
Goods in process		7.5			6.4
Raw materials and supplies		56.0			48.4
Less LIFO reserves		(16.2	)		(14.5	)
Total inventories, net	$	103.9		$	90.2

NOTE 7. OTHER CURRENT ASSETS

	March 31, 2022		December 31, 2021
Prepaid expenses	$	18.1	$	17.2
Assets held for sale		4.6		4.6
Other		0.9		1.3
Total other current assets	$	23.6	$	23.1

As of March 31, 2022 and December 31, 2021, assets held for sale included the property, plant and equipment of our idled Mineral Fiber plant in St. Helens, Oregon.

NOTE 8. EQUITY INVESTMENT

Investment in joint venture reflects our 50% equity interest in WAVE. The WAVE joint venture is reflected within the Mineral Fiber segment in our condensed consolidated financial statements using the equity method of accounting. Condensed financial statement data for WAVE is summarized below.

	Three Months Ended
	March 31,
	2022		2021
Net sales	$	110.4	$	98.6
Gross profit		54.8		58.9
Net earnings		38.2		44.6

NOTE 9. GOODWILL AND INTANGIBLE ASSETS

The following table details amounts related to our goodwill and intangible assets as of March 31, 2022 and December 31, 2021.

		March 31, 2022				December 31, 2021
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Customer relationships	1-20 years	$	189.4	$	141.2	$	196.7	$	144.8
Developed technology	13-19 years		93.0		82.8		92.9		82.6
Software	7 years		9.1		1.6		9.1		1.3
Trademarks and brand names	5-10 years		4.0		2.2		4.0		2.0
Non-compete agreements	3-5 years		5.6		1.7		5.6		1.4
Other	Various		0.4		0.1		0.4		0.1
Total		$	301.5	$	229.6	$	308.7	$	232.2
Non-amortizing intangible assets
Trademarks and brand names	Indefinite		345.0				344.9
Total intangible assets		$	646.5			$	653.6
Goodwill	Indefinite	$	167.1			$	167.0

12

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

The increase in goodwill since December 31, 2021 resulted from foreign exchange movements.

	Three Months Ended
	March 31,
	2022		2021
Amortization expense	$	4.8	$	10.2

NOTE 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	March 31, 2022		December 31, 2021
Payables, trade and other	$	96.1	$	105.8
Employment costs		14.4		30.3
Current portion of pension and postretirement liabilities		9.9		9.9
Acquisition-related contingent consideration		4.3		8.6
Other		20.7		20.3
Total accounts payable and accrued expenses	$	145.4	$	174.9

NOTE 11. INCOME TAX EXPENSE

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations before income taxes	$	59.4		$	49.7
Income tax expense		15.0			12.2
Effective tax rate		25.3	%		24.6	%

The effective tax rate for the first quarter of 2022 was higher compared to the same period in 2021 due primarily to a reduced benefit from share-based compensation.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the completion of ongoing examinations, the expiration of statutes of limitations or other unforeseen circumstances.

NOTE 12. DEBT

Our long-term debt is comprised of borrowings outstanding under our $1,000.0 million variable rate senior credit facility, which is comprised of a $500.0 million revolving credit facility (with a $150.0 million sublimit for letters of credit) and a $500.0 million Term Loan A. As of March 31, 2022 and December 31, 2021, the principal balance of our Term Loan A was $462.5 million and $468.7 million, respectively. As of March 31, 2022 and December 31, 2021, borrowings outstanding under our revolving credit facility were $180.0 million and $165.0 million, respectively. Additionally, we have a $25.0 million letter of credit facility, also known as our bi-lateral facility.

We utilize lines of credit and other commercial commitments to ensure that adequate funds are available to meet operating requirements. Letters of credit are currently arranged through our revolving credit facility and our bi-lateral facility. Letters of credit may be issued to third party suppliers, insurance and financial institutions and typically can only be drawn upon in the event of AWI’s failure to pay its obligations to the beneficiary. The following table presents details related to our letters of credit facilities:

	March 31, 2022
Financing Arrangements	Limit		Used		Available
Bi-lateral facility	$	25.0	$	8.1	$	16.9
Revolving credit facility		150.0		-		150.0
Total	$	175.0	$	8.1	$	166.9

13

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

NOTE 13. PENSIONS AND OTHER BENEFIT PROGRAMS

Following are the components of net periodic benefit costs (credits):

	Three Months Ended
	March 31,
	2022			2021
U.S. defined benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	0.9		$	1.2
Interest cost on projected benefit obligation		2.7			2.2
Expected return on plan assets		(4.6	)		(4.1	)
Amortization of net actuarial loss		1.0			0.9
Net periodic pension cost	$	-		$	0.2
Retiree health and life insurance benefits
Interest cost on projected benefit obligation	$	0.4		$	0.3
Amortization of prior service credit		(0.1	)		(0.1	)
Amortization of net actuarial gain		(0.7	)		(0.5	)
Net periodic postretirement (credit)	$	(0.4	)	$	(0.3	)

We also have an unfunded defined benefit pension plan in Germany, which was not included as part of prior dispositions. This plan is reported as a component of our Unallocated Corporate segment. Net periodic pension cost for this plan was immaterial for the three months ended March 31, 2022 and 2021.

The service cost component of net benefit cost has been presented in the Condensed Consolidated Statements of Earnings and Comprehensive Income within cost of goods sold and selling, general and administrative ("SG&A") expenses for all periods presented, which are the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in the Condensed Consolidated Statements of Earnings and Comprehensive Income separately from the service cost component within other non-operating income (expense), net.

NOTE 14. FINANCIAL INSTRUMENTS AND CONTINGENT CONSIDERATION

We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments and contingent consideration are as follows:

	March 31, 2022						December 31, 2021
	Carrying amount			Estimated fair value			Carrying amount			Estimated fair value
(Liabilities), net:
Total long-term debt, including current portion	$	(640.3	)	$	(633.4	)	$	(631.4	)	$	(626.0	)
Interest rate swap contracts		(0.7	)		(0.7	)		(14.2	)		(14.2	)
Acquisition-related contingent consideration		(4.3	)		(4.3	)		(12.8	)		(12.8	)

The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value because of the short-term maturity of these instruments. The fair value estimates of long-term debt are based on quotes from a major financial institution of recently observed trading levels of our Term Loan A debt. The fair value estimates for interest rate swap contracts are estimated by obtaining quotes from major financial institutions with verification by internal valuation models. We engage independent, third-party valuation specialists to determine the fair value estimate for acquisition-related contingent consideration payable based on future performance, which is measured using a Monte Carlo simulation. As of December 31, 2021, $8.6 million of the carrying amount of contingent consideration liabilities payable, related to final achievement of certain financial and performance milestones through December 31, 2021 for the acquisitions of Moz and Turf, was equal to fair value as milestone achievements were known.

14

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; or

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The fair value measurement of liabilities measured at fair value on a recurring basis and reported on the Condensed Consolidated Balance Sheets is summarized below:

	March 31, 2022						December 31, 2021
	Fair value based on						Fair value based on
	Other observable inputs			Other unobservable inputs			Other observable inputs			Other unobservable inputs
	Level 2			Level 3			Level 2			Level 3
(Liabilities), net:
Interest rate swap contracts	$	(0.7	)	$	-		$	(14.2	)	$	-
Acquisition-related contingent consideration		-			(4.3	)		-			(4.2	)

As of March 31, 2022 and December 31, 2021, the acquisition-related contingent consideration liability represents the estimated fair value of additional cash consideration payable related to our acquisition of Turf upon the achievement of certain financial and performance milestones through December 31, 2022. The liability was measured based on a Monte Carlo simulation and was classified as a current liability as of March 31, 2022.

Acquisition-related contingent consideration of $4.3 million and $4.2 million as of March 31, 2022 and December 31, 2021, respectively, was measured with the use of significant unobservable inputs, which included financial projections over the earn-out period, the volatility of the underlying financial metrics and estimated discount rates. All changes in the contingent consideration liability subsequent to the initial acquisition-date measurements were recorded as a component of operating income on our Condensed Consolidated Statements of Earnings and Comprehensive Income.

The following table summarizes the weighted-average of the significant unobservable inputs used to measure Turf's acquisition-related contingent consideration as of March 31, 2022:

Unobservable input
Volatility	22.5	%
Discount rates	2.7	%

Unobservable inputs were weighted based on the relative fair value of the components of contingent consideration.

The changes in fair value of the acquisition-related contingent consideration liability for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended
	March 31,
	2022			2021
Fair value of contingent consideration as of beginning of period	$	12.8		$	16.9
Cash consideration paid		(8.6	)		-
Loss related to change in fair value of contingent consideration		0.1			0.2
Fair value of contingent consideration as of end of period	$	4.3		$	17.1

During the three months ended March 31, 2022, we paid $8.6 million of additional cash consideration, which represented the final achievement of certain financial and performance milestones through December 31, 2021 for the acquisitions of Moz and Turf. The

15

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

additional cash consideration paid was classified as cash flows from financing activities in our Condensed Consolidated Statements of Cash Flows, up to the acquisition-date fair value. The portion of additional cash consideration paid in excess of the acquisition-date fair value was classified as cash flows from operating activities in our Condensed Consolidated Statements of Cash Flows.

NOTE 15. DERIVATIVE FINANCIAL INSTRUMENTS

We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our results of operations, cash flows and financial condition. We use interest rate derivatives to manage our exposures to interest rates. At inception, interest rate swap derivatives that we designate as hedging instruments are formally documented as a hedge of a forecasted transaction or cash flow hedge. We also formally assess, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, we discontinue hedge accounting and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as risk management tools and not for speculative trading purposes.

Counterparty Risk

We only enter into derivative transactions with established financial institution counterparties having an investment-grade credit rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit contingent features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual counterparties is controlled and we consider the risk of counterparty default to be negligible.

Interest Rate Risk

We utilize interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. These swaps are designated as cash flow hedges against changes in the London Interbank Offered Rate (“LIBOR”) for a portion of our variable rate debt. The following table summarizes our interest rate swaps as of March 31, 2022:

Trade Date	Notional Amount		Coverage Period	Risk Coverage
November 28, 2018	$	200.0	November 2018 to November 2023	USD-LIBOR
November 28, 2018	$	100.0	March 2021 to March 2025	USD-LIBOR
March 10, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR
March 11, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR

Under the terms of our interest rate swaps above, we pay a fixed rate monthly and receive 1-month LIBOR, inclusive of a 0% floor.

Financial Statement Impacts

The following tables detail amounts related to our derivatives as of March 31, 2022 and December 31, 2021. We did not have any derivative assets or liabilities not designated as hedging instruments as of March 31, 2022 or December 31, 2021. The derivative asset and liability amounts below are shown gross and have not been netted.

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2022		December 31, 2021		Balance Sheet Location	March 31, 2022		December 31, 2021
Interest rate swap contracts	Other current assets	$	-	$	-	Accounts payable and accrued expenses	$	-	$	0.1
Interest rate swap contracts	Other non-current assets		3.2		0.4	Other long-term liabilities		3.9		14.5

16

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

	Amount of Gain Recognized in AOCI				Location of Gain Reclassified from AOCI into Net Earnings	Gain Reclassified from AOCI into Net Earnings
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2022		2021			2022		2021
Derivatives in cash flow hedging relationships
Interest rate swap contracts	$	16.3	$	7.0	Interest expense	$	2.1	$	1.9

As of March 31, 2022, the amount of existing losses in AOCI expected to be recognized in earnings over the next twelve months was $1.6 million.

NOTE 16. OTHER LONG-TERM LIABILITIES

	March 31, 2022		December 31, 2021
Long-term deferred compensation arrangements	$	17.6	$	17.6
Fair value of derivative liabilities		3.9		14.5
Environmental insurance recoveries received in excess of cumulative expenses incurred		4.0		4.8
Acquisition-related contingent consideration		-		4.2
Other		6.5		5.6
Total other long-term liabilities	$	32.0	$	46.7

NOTE 17. 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 $483.8 million remaining under the Board’s repurchase authorization as of March 31, 2022.

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 the three months ended March 31, 2022, we repurchased 0.3 million shares under the Program for a total cost of $30.0 million, excluding commissions, or an average price of $99.67 per share. Since inception, we have repurchased 10.8 million shares under the Program for a total cost of $716.2 million, excluding commissions, or an average price of $66.27 per share.

Dividends

In February 2022, our Board of Directors declared a $0.231 per share quarterly dividend, which was paid to shareholders in March 2022. On April 20, 2022, our Board of Directors declared a $0.231 per share quarterly dividend to be paid in May 2022.

Accumulated Other Comprehensive (Loss)

	Foreign Currency Translation Adjustments		Derivative (Loss) Gain (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2021	$	2.3	$	(9.1	)	$	(102.8	)	$	(109.6	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($4.0), ($0.1) and ($4.1)		0.7		12.3			0.5			13.5
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.7	)		0.1			(1.6	)
Net current period other comprehensive income		0.7		10.6			0.6			11.9
Balance, March 31, 2022	$	3.0	$	1.5		$	(102.2	)	$	(97.7	)

17

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

	Foreign Currency Translation Adjustments		Derivative (Loss) (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2020	$	2.3	$	(19.0	)	$	(92.6	)	$	(109.3	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($1.7), $- and ($1.7)		0.6		5.3			-			5.9
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.5	)		0.2			(1.3	)
Net current period other comprehensive income		0.6		3.8			0.2			4.6
Balance, March 31, 2021	$	2.9	$	(15.2	)	$	(92.4	)	$	(104.7	)

(1)Amounts are net of tax

	Amounts Reclassified from Accumulated Other Comprehensive (Loss)						Affected Line Item in the Condensed Consolidated Statements of Earnings and Comprehensive Income
	Three Months Ended March 31,
	2022			2021
Derivative Adjustments:
Interest rate swap contracts, before tax	$	(2.1	)	$	(1.9	)	Interest expense
Tax impact		0.4			0.4		Income tax expense
Total (income), net of tax		(1.7	)		(1.5	)
Pension and Postretirement Adjustments:
Prior service credit amortization		(0.1	)		(0.1	)	Other non-operating (income), net
Amortization of net actuarial loss		0.3			0.4		Other non-operating (income), net
Total loss, before tax		0.2			0.3
Tax impact		(0.1	)		(0.1	)	Income tax expense
Total loss, net of tax		0.1			0.2
Total reclassifications for the period	$	(1.6	)	$	(1.3	)

NOTE 18. 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. While these expenditures are not typically material, the applicable regulatory requirements continually change and, as a result, we cannot predict with certainty the amount, nature or timing of future expenditures associated with environmental compliance.

Environmental Sites

Summary

We are actively involved in the investigation and remediation of existing or potential environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and state Superfund and similar environmental laws at two domestically owned locations allegedly resulting from past industrial activity.

In each location, we are one of multiple potentially responsible parties and have agreed to jointly fund the required investigation and remediation, while preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. We are currently pursuing coverage and recoveries under those policies with respect to certain of the sites, including the Macon, GA site and the Elizabeth City, NC site, each of which is summarized below.

18

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

These efforts have included two active and independent litigation matters against legacy primary and excess policy insurance carriers for recovery of fees and costs incurred by us in connection with our investigation and remediation activities for such sites. Other than disclosed below, we are unable to predict the outcome of these matters or the timing of any recoveries, whether through settlement or otherwise. We are also unable to predict the extent to which any recoveries might cover our final share of investigation and remediation costs for these sites. Our final share of investigation and remediation costs may exceed any such recoveries, and such amounts net of insurance recoveries may be material.

Between 2017 and 2021, we entered settlement agreements totaling $53.0 million with certain legacy insurance carriers to resolve ongoing litigation and recover fees and costs previously incurred by us in connection with certain environmental sites. These settlements were initially recorded as reductions to cost of goods sold and SG&A expenses, reflecting the same income statement categories where environmental expenditures were historically recorded. Beginning in 2020, cumulative insurance recoveries exceeded cumulative expenses to date related to the respective environmental sites and the excess was recorded within long-term liabilities on our Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, insurance recoveries in excess of cumulative expenses were $4.0 million and $4.8 million, respectively. The excess recoveries will be released to offset any future expenses incurred on the respective environmental sites. We anticipate that we may enter into additional settlement agreements in the future, which may or may not be material, with other legacy insurers to obtain reimbursement or contribution for environmental site expenses.

Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding each individual site. We consider factors such as our activities associated with the site, existing technology, presently enacted laws and regulations and prior company experience in remediating contaminated sites. Although current law imposes joint and several liability on all parties at Superfund sites, our contribution to the remediation of these sites is expected to be limited by the number of other companies potentially liable for site remediation. As a result, our estimated liability reflects only our expected share. In determining the probability of contribution, we consider the solvency of other parties, the site activities of other parties, whether liability is being disputed, the terms of any existing agreements and experience with similar matters, and the effect of our October 2006 Chapter 11 reorganization upon the validity of the claim, if any.

Specific Material Events

Macon, GA

The U.S. Environmental Protection Agency (the “EPA”) has listed two landfills located on a portion of our facility in Macon, GA, along with the former Macon Naval Ordnance Plant landfill adjacent to our property, portions of Rocky Creek, and certain tributaries leading to Rocky Creek (collectively, the “Macon Site”) as a Superfund site on the National Priorities List due to the presence of contaminants, most notably polychlorinated biphenyls (“PCBs”).

In September 2010, we entered into an Administrative Order on Consent for a Removal Action (the “Removal Action”) with the EPA to investigate PCB contamination in one of the landfills on our property, the Wastewater Treatment Plant Landfill (the “WWTP Landfill,” also known as “Operable Unit 1”). After completing an investigation of the WWTP Landfill and submitting our final Engineering Evaluation/Cost Analysis, the EPA issued an Action Memorandum in July 2013 selecting our recommended remedy for the Removal Action. The Operable Unit 1 response action for the WWTP Landfill is complete and the final report was submitted to the EPA on October 11, 2016. The EPA approved the final report on November 28, 2016, and a Post-Removal Control Plan (the “Plan”) was submitted to the EPA on March 28, 2017.

It is probable that we will incur field investigation, engineering and oversight costs associated with a Remedial Investigation and Feasibility Study (“RI/FS”) with respect to the remainder of the Superfund site, which includes the other landfill on our property, as well as areas on and adjacent to our property and Rocky Creek (the “Remaining Site,” also known as “Operable Unit 2”). On September 25, 2015, AWI and other Potential Responsible Parties (“PRPs”) received a Special Notice Letter from the EPA under CERCLA inviting AWI and the PRPs to enter into the negotiation of an agreement to conduct an RI/FS of Operable Unit 2. We and the other PRPs entered into a settlement agreement with the EPA effective September 18, 2018, in response to the Special Notice Letter to conduct the RI/FS. The PRPs submitted a complete RI/FS work plan, which was approved by the EPA on September 11, 2019. Investigative work on this portion of the site commenced in December 2019. In June 2021, the PRPs submitted the Site Characterization Summary Report (SCSR) for Operable Unit 2 to the EPA. The purpose of the SCSR is to demonstrate that the available data for Operable Unit 2 is adequate for the risk assessment and for the development of remedial action objectives. Additional investigative work for Operable Unit 2 continues in preparation of a Baseline Ecological Risk Assessment to be submitted to the EPA in 2022. We may ultimately incur costs in remediating any contamination discovered during the RI/FS. The current estimate of future liability at this site includes only our estimated share of the costs of the investigative work that the EPA is requiring the PRPs to perform at this time. We are unable to reasonably estimate our final share of the total costs associated with the investigation work or any resulting remediation therefrom, although such amounts may be material to any one quarter's or year's

19

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

results of operations in the future. We do not expect the total future costs to have a material adverse effect on our liquidity or financial condition as the cash payments may be made over many years.

Elizabeth City, NC

This site is a former cabinet manufacturing facility that was operated by Triangle Pacific Corporation, now known as Armstrong Wood Products, Inc. (“Triangle Pacific” or “AWP”), from 1977 until 1996. The site was formerly owned by the U.S. Navy (“Navy”) and Westinghouse, now CBS Corporation (“CBS”). We assumed ownership of the site when we acquired the stock of Triangle Pacific in 1998. Prior to our acquisition, the North Carolina Department of Environment and Natural Resources listed the site as a hazardous waste site. In 1997, Triangle Pacific entered into a cost sharing agreement with Westinghouse whereby the parties agreed to share equally in costs associated with investigation and potential remediation. In 2000, Triangle Pacific and CBS entered into an Administrative Order on Consent to conduct an RI/FS with the EPA for the site. In 2007, we and CBS entered into an agreement with the Navy whereby the Navy agreed to pay one third of defined past and future investigative costs up to a certain amount, which has now been exhausted. The EPA approved the RI/FS work plan in August 2011. In January 2014, we submitted the draft Remedial Investigation and Risk Assessment reports and conducted supplemental investigative work based upon agency comments to those reports. In connection with the separation of Armstrong Flooring, Inc. in 2016, we agreed to retain any legacy environmental liabilities associated with the AWP site. The EPA published an Interim Action Proposed Plan for the site in April 2018 seeking public comment through June 7, 2018. The EPA evaluated comments, including ours, and has published its Interim Record Of Decision selecting an interim cleanup approach. On September 25, 2018, AWI and CBS received a Special Notice Letter from the EPA under CERCLA inviting AWI and CBS to enter into the negotiation of a settlement agreement to conduct or finance the response action at the site. During the third quarter of 2018, we increased our reserve for the cost of the interim cleanup, which we expect to be shared with CBS and the Navy. In response to the September 2018 Special Notice Letter, we and CBS submitted a good faith offer to the EPA on May 28, 2019. In June 2021, we entered into a negotiated Partial Consent Decree and Site Participation Agreement with the EPA and the PRPs for the remedial design and remedial action to be completed by the parties at the site. The Partial Consent Decree for Remedial Design and Remedial Action was entered by the U.S. District Court for the Eastern District of North Carolina in January 2022. The current estimate of future liability at this site includes only our estimated share of the costs of the interim remedial action that, at this time, we anticipate the EPA will require the PRPs to perform. We are unable to reasonably estimate our final share of the total costs associated with the final remediation or any resulting remediation therefrom, although such amounts may be material to any one quarter’s or year’s results of operations in the future. We do not expect the total future costs to have a material adverse effect on our liquidity or financial condition as the cash payments may be made over many years.

Summary of Financial Position

Total liabilities of $0.5 million and $0.7 million as of March 31, 2022 and December 31, 2021, respectively, were recorded for environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made. As of March 31, 2022 and December 31, 2021, $0.1 million and $0.2 million, respectively, were reflected within accounts payable and accrued expenses. During the three months ended March 31, 2022, we recorded $0.6 million of additional reserves for potential environmental liabilities. As noted above, the expense associated with the additional reserves was offset through the release of a portion of the balance of insurance recoveries in excess of cumulative expenses. During the three months ended March 31, 2021, we did not record any additional reserves for potential environmental liabilities. Where existing data is sufficient to estimate the liability, that estimate has been used; where only a range of probable liabilities is available and no amount within that range is more likely than any other, the lower end of the range has been used. As assessments and remediation activities progress at each site, these liabilities are reviewed to reflect new information as it becomes available and adjusted to reflect amounts actually incurred and paid. These liabilities are undiscounted.

The estimated environmental liabilities above do not take into account any claims for additional recoveries from insurance or third parties. It is our policy to record insurance recoveries as assets in the Condensed Consolidated Balance Sheets when realizable. We incur costs to pursue environmental insurance recoveries, which are expensed as incurred.

Actual costs to be incurred at identified sites may vary from our estimates. Based on our knowledge of the identified sites, it is not possible to reasonably estimate future costs in excess of amounts already recognized.

OTHER CLAIMS

From time to time, we are involved in other various lawsuits, claims, investigations and other legal matters that arise in the ordinary course of business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. In connection with those matters, we may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. When applicable and appropriate,

20

Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

we will pursue coverage and recoveries under those policies, but are unable to predict the outcome of those demands. While complete assurance cannot be given to the outcome of any proceedings relating to these matters, we do not believe that any current claims, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.

NOTE 19. EARNINGS PER SHARE

The following table is a reconciliation of earnings to earnings attributable to common shares used in our basic and diluted Earnings Per Share (“EPS”) calculations for the three months ended March 31, 2022 and 2021. EPS components may not add due to rounding.

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations	$	44.4		$	37.5
(Earnings) allocated to participating vested share awards		(0.1	)		(0.1	)
Earnings from continuing operations attributable to common shares	$	44.3		$	37.4

The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the three months ended March 31, 2022 and 2021 (shares in millions):

	Three Months Ended
	March 31,
	2022		2021
Basic shares outstanding		47.1		47.8
Dilutive effect of common stock equivalents		0.1		0.2
Diluted shares outstanding		47.2		48.0

Anti-dilutive stock awards excluded from the computation of dilutive EPS for the three months ended March 31, 2022 and 2021 were 7,676 and 33,643, respectively.

21

Management’s Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion should be read in conjunction with the financial statements, the accompanying notes, the cautionary note regarding forward-looking statements and risk factors included in this report and our Annual Report on Form 10-K for the year ended December 31, 2021.

OVERVIEW

AWI is a leader in the design, innovation and manufacture of ceiling and wall solutions in the Americas. Our products primarily include mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum and felt. We also manufacture ceiling suspension system (grid) products through a joint venture with Worthington Industries, Inc. ("Worthington") called Worthington Armstrong Venture ("WAVE").

COVID-19

The impact of the COVID-19 pandemic on our future consolidated results of operations remains uncertain. During 2020, we noted delays in construction driven by temporary closures of non-essential businesses, with the most significant impacts in certain major metropolitan areas impacted by COVID-19. Beginning in 2021, market conditions began to improve and continued to do so in the first quarter of 2022, although the improvement was tempered by an uneven market recovery. We continue to monitor and manage the impact of COVID-19 and its potential impacts to our business.
 

As of March 31, 2022, all of our manufacturing facilities were operational, excluding our St. Helens, Oregon facility which was idled in the second quarter of 2018. In an effort to operate safely and responsibly, we continue to follow guidelines from governmental health authorities across all our facilities.
 

We did not record any asset impairments, inventory charges or material bad debt reserves related to COVID-19 during the first quarter of 2022 or 2021, although future events may require such charges. We will continue to evaluate the nature and extent of the COVID-19 pandemic’s impact on our financial condition, results of operations and cash flows.

Manufacturing Plants

As of March 31, 2022, we operated 16 manufacturing plants in two countries, with 14 plants located within the U.S. and two plants in Canada. We closed our St. Helens, Oregon mineral fiber manufacturing plant in the second quarter of 2018, and the facility was classified as an asset held for sale as of March 31, 2022.

WAVE operates six additional plants in the U.S. to produce suspension system (grid) products, which we use and sell in our ceiling systems.

Reportable Segments

Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate.

Mineral Fiber – produces suspended mineral fiber and soft fiber ceiling systems. Our mineral fiber products offer various performance attributes such as acoustical control, rated fire protection, aesthetic appeal, and health and sustainability features. Ceiling products are sold to resale distributors, ceiling systems contractors and wholesalers and retailers (including large home centers). The Mineral Fiber segment also includes the results of WAVE, which manufactures and sells suspension system (grid) products and ceiling component products that are invoiced by both AWI and WAVE. Segment results relating to WAVE consist primarily of equity earnings and reflect our 50% equity interest in the joint venture. Ceiling component products consist of ceiling perimeters and trim, in addition to grid products that support drywall ceiling systems. For some customers, WAVE sells its suspension systems products to AWI for resale to customers. Mineral Fiber segment results reflect those sales transactions. The Mineral Fiber segment also includes all assets and liabilities not specifically allocated to our Architectural Specialties or Unallocated Corporate segment, including all property and related depreciation associated with our Lancaster, PA headquarters. Operating results for the Mineral Fiber segment include a significant majority of allocated Corporate administrative expenses that represent a reasonable allocation of general services to support its operations.

Architectural Specialties – produces, designs and sources ceilings and walls for use in commercial settings. Products are available in numerous materials, such as metal, felt and wood, in addition to various colors, shapes and designs. Products offer various performance attributes such as acoustical control, rated fire protection and aesthetic appeal. We sell standard, premium and customized products, a portion of which are derived from sourced products. Architectural Specialties products are sold primarily to

22

Management’s Discussion and Analysis of Financial Condition and Results of Operations

resale distributors and direct customers, primarily ceiling systems contractors. The majority of this segment's revenues are project driven, which can lead to more volatile sales patterns due to project scheduling uncertainty. Operating results for the Architectural Specialties segment include a portion of allocated Corporate administrative expenses that represent a reasonable allocation of general services to support its operations.

Unallocated Corporate – includes assets, liabilities, income and expenses that have not been allocated to our other business segments and consists of: cash and cash equivalents, the net funded status of our U.S. Retirement Income Plan (“RIP”), the estimated fair value of interest rate swap contracts, outstanding borrowings under our senior credit facility and income tax balances. Our Unallocated Corporate segment also includes all income and expenses formerly reported in our Europe, the Middle East and Africa (including Russia) ("EMEA") and Pacific Rim segments that were not included in the sale of certain subsidiaries comprising our businesses and operations in EMEA and the Pacific Rim to Knauf International GmbH ("Knauf"), including the corresponding businesses and operations conducted by WAVE, our joint venture with Worthington in which AWI holds a 50% interest (collectively, the “Sale”).

Factors Affecting Revenues

For information on our segments' 2022 net sales by segment, see Notes 2 and 3 to the Condensed Consolidated Financial Statements.

Markets. We compete in the building product construction markets of the Americas. We closely monitor publicly available macroeconomic trends that provide insight into construction market activity, including GDP, office vacancy rates, the Architecture Billings Index, new commercial construction starts, state and local government spending, corporate profits and retail sales. The company continues to monitor the impacts of global events, including the conflict in Ukraine, which due to our Americas-only geography, did not impact our results of operations during the first quarter of 2022.

We noted several factors and trends within our markets that directly affected our business performance during the first quarter of 2022 compared to the first quarter of 2021, most importantly the continuing recovery from the COVID-19 pandemic in terms of business and commercial construction activity, partially offset by continued challenges to global supply chains and labor availability, and improved performance within our Architectural Specialties segment, partially driven by our recent acquisitions. Demand continues to be tempered by delays in construction starts and extended project timelines, which, in addition to the inflationary environment, has impacted inventory levels within our distributor customer channel. In addition, the uneven market recovery has resulted in variability in demand increases across different geographies. For the three months ended March 31, 2022, increased sales volumes contributed $8 million to revenue compared to the same period in 2021.

Average Unit Value. We periodically modify sales prices of our products due to changes in costs for raw materials and energy, market conditions and the competitive environment. Typically, realized price increases are less than the announced price increases because of project pricing, competitive adjustments and changing market conditions. We also offer a wide assortment of products that are differentiated by style, design and performance attributes. Pricing and margins for products within the assortment vary. In addition, changes in the relative quantity of products purchased at different price points can impact year-to-year comparisons of net sales and operating income. Within our Mineral Fiber segment, we focus on improving sales dollars per unit sold, or average unit value (“AUV”), as a measure that accounts for the varying assortment of products and like-for-like pricing impacting our revenues. We estimate that favorable AUV increased our total consolidated net sales for the three months ended March 31, 2022 by approximately $23 million compared to the same period in 2021. Our Architectural Specialties segment generates revenues that are primarily earned based on individual contracts that include a mix of products, both manufactured by us and sourced from third parties, that vary by project. As such, we do not track AUV performance for this segment, but rather attribute most changes in sales to volume.

During the first quarter of 2022, we implemented price increases on Mineral Fiber ceiling, grid products and certain Architectural Specialties products. We may implement future pricing actions based on numerous factors, namely the rate and pace of inflation impact on our business.

Seasonality. Historically, our sales tend to be stronger in the second and the third quarters of our fiscal year due to more favorable weather conditions, customer business cycles and the timing of renovation and new construction.

Factors Affecting Operating Costs

Operating Expenses. Our operating expenses are comprised of direct production costs (principally raw materials, labor and energy), manufacturing overhead costs, freight, costs to purchase sourced products and selling, general, and administrative (“SG&A”) expenses.

Our largest raw material expenditures are primarily for fiberglass, perlite, recycled paper and starch. Other raw materials include aluminum, clays, felt, pigment, steel, wood and wood fiber. We manufacture most of our mineral wool needs at one of our

23

Management’s Discussion and Analysis of Financial Condition and Results of Operations

manufacturing facilities. Natural gas and packaging materials are also significant input costs. Fluctuations in the prices of these inputs are generally beyond our control and have a direct impact on our financial results. Global supply chain and labor disruptions have contributed to raw material and transportation cost inflation. In the first quarter of 2022, higher costs for raw materials and energy negatively impacted operating income by $7 million compared to the same period in 2021.

2020 Acquisition-Related Expenses and Losses

In connection with our acquisitions of TURF Design, Inc. ("Turf") in July 2020, Moz Designs, Inc. ("Moz") in August 2020, and Arktura LLC ("Arktura") in December 2020, we recorded certain acquisition-related expenses and losses to operating income in the three months ended March 31, 2022 and 2021, summarized as follows (dollar amounts in millions):
 

	Three Months Ended
	March 31,
	2022		2021		Affected Line Item in the Condensed Consolidated Statement of Earnings and Comprehensive Income
Deferred revenue	$	-	$	0.7	Net sales
Loss related to change in fair value of contingent consideration		0.1		0.2	Loss related to change in fair value of contingent consideration
Deferred cash and restricted stock expenses		2.0		2.8	SG&A expenses
Inventory		-		0.3	Cost of goods sold
Net negative impact to operating income	$	2.1	$	4.0

The deferred revenue and inventory amounts above reflect the post-acquisition expenses associated with recording these liabilities and assets at fair value as part of purchase accounting. The change in fair value of contingent consideration is related to our Moz and Turf acquisitions and is remeasured quarterly during each acquisition's respective earn-out period. See Note 14 to the Condensed Consolidated Financial Statements for further information. Expenses related to the deferred cash and restricted stock awards for Arktura’s former owners and employees are recorded over their respective service periods, as such payments are subject to the awardees’ continued employment with AWI. Depreciation of fixed assets acquired and amortization of intangible assets acquired have been excluded from the table above.

Employees

As of March 31, 2022 and December 31, 2021, we had approximately 2,900 and 2,800 full-time and part-time employees, respectively.

RESULTS OF CONTINUING OPERATIONS

Please refer to Notes 2 and 4 to the Condensed Consolidated Financial Statements for a reconciliation of operating income to consolidated earnings from continuing operations before income taxes and additional financial information related to discontinued operations.

CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS

(dollar amounts in millions)

	Three Months Ended
	March 31,
	2022		2021		Change is Favorable
Total consolidated net sales	$	282.6	$	251.9		12.2	%
Operating income	$	63.2	$	54.1		16.8	%

Consolidated net sales for the first quarter of 2022 increased 12.2% over the prior-year period as favorable AUV contributed $23 million and higher volumes contributed $8 million. Mineral Fiber net sales increased $15 million and Architectural Specialties net sales increased $16 million over the prior-year period. The increase in Mineral Fiber segment net sales was driven by improved AUV, partially offset by lower volumes resulting primarily from a reduction of inventory levels at certain distributor customers. Architectural Specialties segment net sales improved due to an increase in custom project sales, improved performance from our recent acquisitions compared to the same period in 2021 and positive impacts from price increases.

24

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cost of goods sold in the first quarter of 2022 was 63.8% of net sales, compared to 65.3% for the same period in 2021. The decrease in cost of goods sold as a percent of net sales for the first quarter of 2022 was driven by favorable AUV performance and improved manufacturing productivity, partially offset by higher inflation.

SG&A expenses in the first quarter of 2022 were $57.1 million, or 20.2% of net sales, compared to $54.2 million, or 21.5% of net sales, for the same period in 2021. The increase in SG&A expenses for the first quarter of 2022 compared to the same period in 2021 was driven primarily by a $7 million increase in selling expenses which was partially offset by a $4 million decrease in intangible asset amortization related to the Architectural Specialties segment.

Equity earnings from our WAVE joint venture were $18.2 million in the first quarter of 2022, compared to $21.0 million in the first quarter of 2021. The decrease in WAVE earnings was primarily related to lower volumes, also resulting primarily from a reduction of inventory levels at certain distributor customers, and increased SG&A expenses. See Note 8 to the Condensed Consolidated Financial Statements for further information.

Interest expense was $5.1 million in the first quarter of 2022 compared to $5.7 million in the first quarter of 2021. The decrease was primarily due to lower average borrowings and lower effective interest rates.

Other non-operating income, net, was $1.3 million in the first quarter of 2022 and 2021.

Income tax expense was $15.0 million in the first quarter of 2022 compared to $12.2 million in the first quarter of 2021. The effective tax rate for the first quarter of 2022 was 25.3% compared to 24.6% for the same period of 2021. The effective tax rate for the first quarter of 2022 was higher compared to the same period in 2021 due primarily to a reduced benefit from share-based compensation.

Total Other Comprehensive Income (“OCI”) was $11.9 million in the first quarter of 2022 compared to $4.6 million in the first quarter of 2021. The change in OCI in the first quarter of 2022 compared to the same period in 2021 was primarily driven by derivative gains/losses. Derivative gain/loss represents the mark-to-market value adjustments of our derivative assets and liabilities and the recognition of gains and losses previously deferred in OCI. Also impacting the change in OCI were pension and postretirement adjustments and foreign currency translation adjustments. Pension and postretirement adjustments represent the amortization of actuarial gains and losses related to our defined benefit pension and postretirement plans. Foreign currency translation adjustments represent the change in the U.S. dollar value of assets and liabilities denominated in foreign currencies. Amounts in the first quarter of 2022 and 2021 were driven primarily by changes in the Canadian dollar.

REPORTABLE SEGMENT RESULTS

Mineral Fiber

(dollar amounts in millions)

	Three Months Ended
	March 31,
	2022		2021		Change is Favorable/(Unfavorable)
Total segment net sales	$	203.2	$	188.7		7.7	%
Operating income	$	57.6	$	60.6		(5.0	)%

Net sales increased in the first quarter of 2022 due to $23 million of favorable AUV, partially offset by lower sales volumes of $8 million. The improvement in AUV was driven primarily by favorable price. The decrease in volumes was primarily driven by a reduction of inventory levels at certain distributor customers.

Operating income decreased in the first quarter of 2022 primarily due to a $7 million increase in manufacturing costs, primarily increased raw material and energy costs, a $6 million decrease resulting from lower sales volumes, a $5 million increase in selling expenses, primarily related to investments in growth initiatives and incentive compensation, and a $3 million decrease in equity earnings driven by lower volumes. These costs were partially offset by $18 million of favorable AUV.

25

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Architectural Specialties

(dollar amounts in millions)

	Three Months Ended
	March 31,
	2022		2021			Change is Favorable/(Unfavorable)
Total segment net sales	$	79.4	$	63.2			25.6	%
Operating income (loss)	$	6.5	$	(4.9	)		(232.7	)%

Net sales increased $16 million in the first quarter of 2022 primarily due to an increase in custom project sales, improved performance from our recent acquisitions compared to the same period in 2021 and positive impacts from price increases.

Operating income increased in the first quarter of 2022 primarily due to a $9 million benefit from net sales growth and a $4 million reduction in intangible asset amortization. These benefits were partially offset by a $2 million increase in selling expenses, primarily related to additional investments in selling capabilities and incentive compensation.

Unallocated Corporate

Unallocated Corporate operating loss was $1 million in the first quarter of 2022, compared to $2 million in the first quarter of 2021.

FINANCIAL CONDITION AND LIQUIDITY

Cash Flow

Operating activities for the first three months of 2022 provided $16.7 million of cash, compared to $19.6 million in the first three months of 2021. The decrease was primarily due to negative working capital changes in inventory and accounts payable and accrued expenses, partially offset by higher cash earnings and a decrease in income tax payments.

Net cash provided by investing activities was $0.2 million in the first three months of 2022, compared to $8.8 million of cash used in the first three months of 2021. The favorable change in cash in the first quarter of 2022 compared to the same period in 2021 was primarily due to the absence of the purchase price adjustments paid to Knauf, partially offset by a decrease in dividends from WAVE.

Net cash used for financing activities was $39.2 million in the first three months of 2022, compared to $26.2 million in the first three months of 2021. The unfavorable change in cash was primarily due to a decrease in proceeds from borrowings, higher repurchases of outstanding common stock, and payments of acquisition-related contingent consideration in 2022, partially offset by decreased payments on borrowings.

Liquidity

Our liquidity needs for operations vary throughout the year. We retain lines of credit to facilitate our seasonal cash flow needs, since cash flow is historically lower during the first and fourth quarters of our fiscal year. We have a $1,000.0 million variable rate senior credit facility, which is comprised of a $500.0 million revolving credit facility (with a $150.0 million sublimit for letters of credit) and a $500.0 million Term Loan A. The revolving credit facility and Term Loan A are currently priced at 1.25% over LIBOR. The senior credit facility also has a $25.0 million letter of credit facility, also known as our bi-lateral facility. The revolving credit facility and Term Loan A mature in September 2024. The $1,000.0 million senior credit facility is secured by the capital stock of material U.S. subsidiaries and a pledge of 65% of the stock of our material first-tier foreign subsidiary in Canada. The unpaid balances of the revolving credit facility and Term Loan A may be prepaid without penalty at the maturity of their respective interest reset periods. Any principal amounts paid on the Term Loan A may not be re-borrowed.

As of March 31, 2022, total borrowings outstanding under our senior credit facility were $462.5 million under Term Loan A and $180.0 million under the revolving credit facility.

The senior credit facility includes two financial covenants that require the ratio of consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated cash interest expense minus cash consolidated interest income to be greater than or equal to 3.0 to 1.0 and requires the ratio of consolidated funded indebtedness, minus AWI and domestic subsidiary unrestricted cash and cash equivalents up to $100 million, to EBITDA to be less than or equal to 3.75 to 1.0. As of March 31, 2022, we were in compliance with all covenants of the senior credit facility.

26

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Term Loan A is currently priced on a variable interest rate basis. The following table summarizes our interest rate swaps (dollar amounts in millions):

Trade Date	Notional Amount		Coverage Period	Risk Coverage
November 28, 2018	$	200.0	November 2018 to November 2023	USD-LIBOR
November 28, 2018	$	100.0	March 2021 to March 2025	USD-LIBOR
March 10, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR
March 11, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR

Under the terms of our interest rate swaps above, we pay a fixed rate monthly and receive 1-month LIBOR, inclusive of a 0% floor.

These swaps are designated as cash flow hedges against changes in LIBOR for a portion of our variable rate debt.
 

We utilize lines of credit and other commercial commitments to ensure that adequate funds are available to meet operating requirements. Letters of credit are currently arranged through our revolving credit facility and our bi-lateral facility. Letters of credit may be issued to third party suppliers, insurance and financial institutions and typically can only be drawn upon in the event of AWI’s failure to pay its obligations to the beneficiary. The following table presents details related to our letters of credit facilities (dollar amounts in millions):

	March 31, 2022
Financing Arrangements	Limit		Used		Available
Bi-lateral facility	$	25.0	$	8.1	$	16.9
Revolving credit facility		150.0		-		150.0
Total	$	175.0	$	8.1	$	166.9

As of March 31, 2022, we had $76.1 million of cash and cash equivalents, $63.8 million in the U.S. and $12.3 million in various foreign jurisdictions, primarily Canada. As of March 31, 2022, we also had $320.0 million available under our revolving credit facility. We believe cash on hand and cash generated from operations, together with borrowing capacity under our credit facility, will be adequate to address our near-term liquidity needs based on current expectations of our business operations, capital expenditures and scheduled payments of debt obligations.

CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to our critical accounting estimates disclosed in our 2021 Annual Report on Form 10-K.

27

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For information regarding our exposure to certain market risks, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, 2021.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures. The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Based on the evaluation of the effectiveness of our disclosure controls and procedures by our management, with the participation of our principal executive officer and our chief financial officer, as of March 31, 2022, our principal executive officer and our chief financial officer have concluded that our disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that we file or submit under the Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) Changes in Internal Control Over Financial Reporting. There have been no material changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Act) during the fiscal quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

28

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 18 to the Condensed Consolidated Financial Statements, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in our 2021 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c) Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Approximate Value of Shares that may yet be Purchased under the Plans or Programs
January 1 – 31, 2022		117,353	$	106.62		116,149	$	501,406,732
February 1 – 28, 2022		190,084	$	95.18		184,856	$	483,779,495
March 1 – 31, 2022		23	$	87.04		-	$	483,779,495
Total		307,460				301,005

(1)Includes shares reacquired through the withholding of shares to pay employee tax obligations upon the exercise of options or vesting of restricted shares previously granted under our long-term incentive plans.

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”).

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 the three months ended March 31, 2022, we repurchased 0.3 million shares under the Program for a total cost of $30.0 million, excluding commissions, or an average price of $99.67 per share. Since inception, through March 31, 2022, we have repurchased 10.8 million shares under the Program for a total cost of $716.2 million, excluding commissions, or an average price of $66.27 per share.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

29

ITEM 6. EXHIBITS

The following exhibits are filed as part of this Quarterly Report on Form 10-Q:

Exhibit No.	Description
3.1	Amended and Restated Articles of Incorporation of Armstrong World Industries, Inc. is incorporated by reference from the Current Report on Form 10-Q filed on May 1, 2017, wherein it appeared as Exhibit 3.1.
3.2	Amended and Restated Bylaws of Armstrong World Industries, Inc., are incorporated by reference from the Current Report on Form 8-K filed on April 17, 2020, wherein it appeared as Exhibit 3.1.
31.1	Certification of Chief Executive Officer required by Rule 13a-15(e) or 15d-15(e) of the Securities Exchange Act. †
31.2	Certification of Chief Financial Officer required by Rule 13a-15(e) or 15d-15(e) of the Securities Exchange Act. †
32.1	Certification of Chief Executive Officer required by Rule 13a and 18 U.S.C. Section 1350. ††
32.2	Certification of Chief Financial Officer required by Rule 13a and 18 U.S.C. Section 1350. ††
101.INS	Inline 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	Inline XBRL Taxonomy Extension Schema. †
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase. †
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase. †
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase. †
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase. †
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 has been formatted in Inline XBRL.

† 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 World Industries, Inc.
By:		/s/ Brian L. MacNeal
		Brian L. MacNeal, Senior Vice President and
		Chief Financial Officer (Principal Financial Officer)
By:		/s/ James T. Burge
		James T. Burge, Vice President and
		Controller (Principal Accounting Officer)

Date: April 26, 2022

31

EX-31.1

Exhibit No. 31.1

I, Victor D. Grizzle, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Armstrong World Industries, 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 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 internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 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 controls over financial reporting.

Date:	April 26, 2022
		/s/ Victor D. Grizzle
		Victor D. Grizzle
		Director, President and Chief Executive Officer

EX-31.2

Exhibit No. 31.2

I, Brian L. MacNeal, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Armstrong World Industries, 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 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 internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 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 controls over financial reporting.

Date:	April 26, 2022
		/s/ Brian L. MacNeal
		Brian L. MacNeal
		Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit No. 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I certify to the best of my knowledge and belief that the periodic report on Form 10-Q of Armstrong World Industries, Inc. (the “Company”) containing its financial statements for the fiscal quarter ended March 31, 2022 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, and that information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Company as of that date.

/s/ Victor D. Grizzle

Victor D. Grizzle

Director, President and Chief Executive Officer

Armstrong World Industries, Inc.

Dated: April 26, 2022

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit No. 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I certify to the best of my knowledge and belief that the periodic report on Form 10-Q of Armstrong World Industries, Inc. (the “Company”) containing its financial statements for the fiscal quarter ended March 31, 2022 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, and that information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Company as of that date.

/s/ Brian L. MacNeal

Brian L. MacNeal

Senior Vice President and Chief Financial Officer

Armstrong World Industries, Inc.

Dated: April 26, 2022

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 21, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	ARMSTRONG WORLD INDUSTRIES, INC.
Trading Symbol	AWI
Entity Central Index Key	0000007431
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		46,960,247
Entity Shell Company	false
Entity File Number	1-2116
Entity Tax Identification Number	23-0366390
Entity Address, Address Line One	2500 Columbia Avenue
Entity Address, City or Town	Lancaster
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17603
City Area Code	717
Local Phone Number	397-0611
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	PA
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, $0.01 par value per share

XML

Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales	$ 282.6	$ 251.9
Cost of goods sold	180.4	164.4
Gross profit	102.2	87.5
Selling, general and administrative expenses	57.1	54.2
Loss from change in fair value of contingent consideration	0.1	0.2
Equity (earnings) from joint venture	(18.2)	(21.0)
Operating income	63.2	54.1
Interest expense	5.1	5.7
Other non-operating (income), net	(1.3)	(1.3)
Earnings from continuing operations before income taxes	59.4	49.7
Income tax expense	15.0	12.2
Earnings from continuing operations	44.4	37.5
Loss from disposal of discontinued businesses, net of tax expense of $- and $1.7	0.0	(2.1)
Net loss from discontinued operations	0.0	(2.1)
Net earnings	44.4	35.4
Other comprehensive income, net of tax:
Foreign currency translation adjustments	0.7	0.6
Derivative gain, net	10.6	3.8
Pension and postretirement adjustments	(0.6)	0.2
Total other comprehensive income	11.9	4.6
Total comprehensive income	$ 56.3	$ 40.0
Earnings per share of common stock, continuing operations:
Basic	$ 0.94	$ 0.78
Diluted	0.94	0.78
Loss per share of common stock, discontinued operations:
Basic	0	(0.04)
Diluted	0	(0.04)
Net earnings per share of common stock:
Basic	0.94	0.74
Diluted	$ 0.94	$ 0.74
Average number of common shares outstanding:
Basic	47.1	47.8
Diluted	47.2	48.0

XML

Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Loss from disposal of discontinued businesses, net of tax expense	$ 0.0	$ 1.7

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 76.1	$ 98.1
Accounts and notes receivable, net	114.1	109.1
Inventories, net	103.9	90.2
Income taxes receivable	0.4	1.4
Other current assets	23.6	23.1
Total current assets	318.1	321.9
Property, plant, and equipment, less accumulated depreciation and amortization of $504.7 and $494.0, respectively	539.2	542.8
Operating lease assets	21.6	21.0
Finance lease assets	17.8	18.4
Prepaid pension costs	110.3	109.0
Investment in joint venture	57.5	50.0
Goodwill	167.1	167.0
Intangible assets, net	416.9	421.4
Income taxes receivable	0.0	0.6
Other non-current assets	59.6	57.9
Total assets	1,708.1	1,710.0
Current liabilities:
Current installments of long-term debt	25.0	25.0
Accounts payable and accrued expenses	145.4	174.9
Operating lease liabilities	6.1	5.6
Finance lease liabilities	2.3	2.2
Income taxes payable	14.0	1.9
Total current liabilities	192.8	209.6
Long-term debt, less current installments	615.3	606.4
Operating lease liabilities	15.7	15.6
Finance lease liabilities	16.2	16.8
Postretirement benefit liabilities	70.7	71.1
Pension benefit liabilities	36.4	36.9
Other long-term liabilities	32.0	46.7
Income taxes payable	19.6	20.3
Deferred income taxes	171.8	166.9
Total non-current liabilities	977.7	980.7
Shareholders' equity:
Common stock, $0.01 par value per share, 200 million shares authorized, 62,792,506 shares issued and 47,018,645 shares outstanding as of March 31, 2022 and 62,775,155 shares issued and 47,302,299 shares outstanding as of December 31, 2021	0.6	0.6
Capital in excess of par value	563.9	561.3
Retained earnings	1,044.8	1,011.4
Treasury stock, at cost, 15,773,861 shares as of March 31, 2022 and 15,472,856 shares as of December 31, 2021	974.0	944.0
Accumulated other comprehensive loss	(97.7)	(109.6)
Total shareholders' equity	537.6	519.7
Total liabilities and shareholders' equity	$ 1,708.1	$ 1,710.0

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Property, plant and equipment, accumulated depreciation and amortization	$ 504.7	$ 494.0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	62,792,506	62,775,155
Common stock, shares outstanding	47,018,645	47,302,299
Treasury stock, shares	15,773,861	15,472,856

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	AOCI Attributable to Parent
Beginning Balance at Dec. 31, 2020	$ 450.9	$ 0.6	$ 553.7	$ 869.8	$ (863.9)	$ (109.3)
Balance at Dec. 31, 2020		47,913,821
Balance at Dec. 31, 2020					14,685,510
Stock issuance, net, shares		40,278
Cash dividends - per common share	(10.2)			(10.2)
Share-based employee compensation	2.9		2.9
Net earnings	35.4			35.4
Other comprehensive income	4.6					4.6
Acquisition of treasury stock	(10.0)				$ (10.0)
Acquisition of treasury stock, shares		(125,635)			125,635
Ending Balance at Mar. 31, 2021	473.6	$ 0.6	556.6	895.0	$ (873.9)	(104.7)
Balance at Mar. 31, 2021		47,828,464
Balance at Mar. 31, 2021					14,811,145
Beginning Balance at Dec. 31, 2021	$ 519.7	$ 0.6	561.3	1,011.4	$ (944.0)	(109.6)
Balance at Dec. 31, 2021	47,302,299	47,302,299
Balance at Dec. 31, 2021					15,472,856
Stock issuance, net, shares		17,351
Cash dividends - per common share	$ (11.0)			(11.0)
Share-based employee compensation	2.6		2.6
Net earnings	44.4			44.4
Other comprehensive income	11.9					11.9
Acquisition of treasury stock	(30.0)				$ (30.0)
Acquisition of treasury stock, shares		(301,005)			301,005
Ending Balance at Mar. 31, 2022	$ 537.6	$ 0.6	$ 563.9	$ 1,044.8	$ (974.0)	$ (97.7)
Balance at Mar. 31, 2022	47,018,645	47,018,645
Balance at Mar. 31, 2022					15,773,861

XML

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared	$ 0.231	$ 0.21

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net earnings	$ 44.4	$ 35.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	21.2	25.6
Deferred income taxes	1.1	1.2
Share-based compensation	2.9	2.3
Loss on disposal of discontinued operations	0.0	0.4
Equity earnings from joint venture	(18.2)	(21.0)
U.S. pension (credit)	(0.2)	0.0
Loss from change in fair value of contingent consideration	0.1	0.2
Payments of contingent consideration in excess of acquisition-date fair value	(1.9)	0.0
Other non-cash adjustments, net	0.2	0.2
Changes in operating assets and liabilities:
Receivables	(13.1)	(12.9)
Inventories	(13.6)	(2.1)
Accounts payable and accrued expenses	(17.5)	(9.2)
Income taxes receivable and payable, net	13.0	5.5
Other assets and liabilities	(1.7)	(6.0)
Net cash provided by operating activities	16.7	19.6
Cash flows from investing activities:
Purchases of property, plant and equipment	(12.0)	(13.2)
Return of investment from joint venture	12.2	16.5
Payments to Knauf upon disposal of discontinued operations	0.0	(11.8)
Other investing activities	0.0	(0.3)
Net cash provided by (used for) investing activities	0.2	(8.8)
Cash flows from financing activities:
Proceeds from revolving credit facility	25.0	50.0
Payments of revolving credit facility	(10.0)	(50.0)
Payments of long-term debt	(6.2)	(6.3)
Dividends paid	(10.9)	(10.1)
Proceeds from share-based compensation plans, net of tax	0.2	0.7
Payments for finance leases	(0.6)	(0.5)
Payments of acquisition-related contingent consideration	(6.7)	0.0
Payments for treasury stock acquired	(30.0)	(10.0)
Net cash (used for) financing activities	(39.2)	(26.2)
Effect of exchange rate changes on cash and cash equivalents	0.3	0.1
Net (decrease) in cash and cash equivalents	(22.0)	(15.3)
Cash and cash equivalents at beginning of year	98.1	136.9
Cash and cash equivalents at end of period	76.1	121.6
Supplemental Cash Flow Disclosures:
Interest paid	4.9	5.7
Income tax payments, net	0.9	7.2
Amounts in accounts payable for capital expenditures	$ 0.3	$ 0.7

XML

Business and Basis of Presentation

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Business and Basis of Presentation

NOTE 1. BUSINESS AND BASIS OF PRESENTATION

Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891. When we refer to “AWI,” the “Company,” “we,” “our” or “us” in these notes, we are referring to AWI and its subsidiaries.

Except as disclosed in this note, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2021. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. 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 first quarter of 2022 and 2021 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in general economic conditions.

These Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include management estimates and judgments, where appropriate. Management utilizes estimates to record many items, including certain asset values, contingent purchase price liabilities, allowances for bad debts, inventory obsolescence and lower of cost and net realizable value charges, warranty reserves, workers’ compensation, general liability and environmental claims, and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information and may confer with outside parties, including external counsel. Actual results may differ from these estimates.

Certain prior year amounts have been reclassified in the Condensed Consolidated Financial Statements to conform to the 2022 presentation.

COVID-19 Considerations

The COVID-19 pandemic has created significant volatility and economic disruption and the impact on our future consolidated results of operations is uncertain. The extent to which COVID-19 impacts our employees, operations, customers, suppliers and financial results depends on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic (and whether there is a resurgence or multiple resurgences in the future, including the impact of new variants); government actions taken in response to the pandemic, including required shutdowns, vaccine or testing mandates; the availability, acceptance, distribution and continued effectiveness of vaccines; the impact on construction activity; supply chain disruptions; rising inflation; labor shortages; the effect on our customers demand for our ceiling and wall systems; sustained remote or hybrid work models; our ability to manufacture and sell our products; and the ability of our customers to pay for our products. While many of our products support life sustaining activities and essential construction, we, and certain of our customers or suppliers, may be impacted by state actions, orders and policies regarding the COVID-19 pandemic, including temporary closures of non-life sustaining businesses, shelter-in-place orders, and travel, social distancing and quarantine policies, the implementation and enforcement of which vary by individual U.S. states and by individual countries in the Americas. We did not record any asset impairments, inventory charges or material bad debt reserves related to COVID-19 during the first quarter of 2022 and 2021 but future events may require such charges, which could have a material adverse effect on our financial condition, liquidity or results of operations.

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Segment Results

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Results

NOTE 2. SEGMENT RESULTS

	Three Months Ended
	March 31,
	2022		2021
Net sales
Mineral Fiber	$	203.2	$	188.7
Architectural Specialties		79.4		63.2
Total net sales	$	282.6	$	251.9

	Three Months Ended
	March 31,
	2022			2021
Segment operating income (loss)
Mineral Fiber	$	57.6		$	60.6
Architectural Specialties		6.5			(4.9	)
Unallocated Corporate		(0.9	)		(1.6	)
Total consolidated operating income	$	63.2		$	54.1

The Architectural Specialties operating loss for the three months ended March 31, 2021 was driven by intangible asset amortization and other acquisition-related expenses related to our acquisitions of TURF Design, Inc. ("Turf") in July 2020, Moz Designs, Inc. ("Moz") in August 2020, and Arktura LLC ("Arktura") in December 2020.

	Three Months Ended
	March 31,
	2022			2021
Total consolidated operating income	$	63.2		$	54.1
Interest expense		5.1			5.7
Other non-operating (income), net		(1.3	)		(1.3	)
Earnings from continuing operations before income taxes	$	59.4		$	49.7

	March 31, 2022		December 31, 2021
Segment assets
Mineral Fiber	$	1,142.7	$	1,133.9
Architectural Specialties		378.1		366.3
Unallocated Corporate		187.3		209.8
Total consolidated assets	$	1,708.1	$	1,710.0

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Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

NOTE 3. REVENUE

Disaggregation of Revenues

Our Mineral Fiber and Architectural Specialties operating segments both manufacture and sell ceiling and wall systems (primarily mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum and felt) throughout the Americas. We disaggregate revenue based on our product-based segments and major customer channels, as they represent the most appropriate depiction of how the nature, amount and timing of revenues and cash flows are affected by economic factors. Net sales by major customer channel are as follows:

Distributors – represents net sales to building materials distributors who re-sell our products to contractors, subcontractors’ alliances, large architect and design firms, and major facility owners. Geographically, this category includes sales throughout the U.S., Canada, and Latin America.

Home centers – represents net sales to home centers, such as Lowe’s Companies, Inc. and The Home Depot, Inc. This category includes sales primarily to U.S. customers.

Direct customers – represents net sales to contractors, subcontractors, and large architect and design firms. This category includes sales primarily to U.S. customers.

Retailers and other – represents net sales to independent retailers and certain national account customers, including wholesalers who re-sell our products to dealers who service builders, contractors and consumers, online customers, major facility owners, group purchasing organizations and maintenance, repair and operating entities. Geographically, this category includes sales throughout the U.S. and Canada.

The following tables provide net sales by major customer channel within our Mineral Fiber and Architectural Specialties segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended
	March 31,
Mineral Fiber	2022		2021
Distributors	$	143.5	$	135.3
Home centers		28.1		26.8
Direct customers		14.3		12.8
Retailers and other		17.3		13.8
Total	$	203.2	$	188.7

	Three Months Ended
	March 31,
Architectural Specialties	2022		2021
Distributors	$	38.8	$	34.3
Direct customers		39.4		28.1
Retailers and other		1.2		0.8
Total	$	79.4	$	63.2

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Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations [Abstract]

Discontinued Operations

NOTE 4. DISCONTINUED OPERATIONS

EMEA and Pacific Rim Businesses

In 2019, we completed the sale of certain subsidiaries comprising our businesses and operations in Europe, the Middle East and Africa (including Russia) (“EMEA”) and the Pacific Rim, including the corresponding businesses and operations conducted by Worthington Armstrong Venture (“WAVE”), our joint venture with Worthington Industries, Inc. (“Worthington”) in which AWI holds a 50% interest (collectively, the “Sale”), to Knauf International GmbH (“Knauf”). During the three months ended March 31, 2021, we recorded a pre-tax loss on sale of $0.4 million for final purchase price adjustments related to certain pension liabilities included in the Sale and paid $11.8 million to Knauf related to this purchase price adjustment. We did not record a gain or loss during the three months ended March 31, 2022.

Summarized Financial Information of Discontinued Operations

The following table details the line items that comprise discontinued operations on the Condensed Consolidated Statements of Earnings and Comprehensive Income.

	Three Months Ended
	March 31,
	2021
Loss from disposal of discontinued businesses, before income tax	$	(0.4	)
Income tax expense		1.7
Loss from disposal of discontinued businesses, net of tax		(2.1	)
Net loss from discontinued operations	$	(2.1	)

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Accounts and Notes Receivable

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Accounts and Notes Receivable

NOTE 5. ACCOUNTS AND NOTES RECEIVABLE

	March 31, 2022			December 31, 2021
Customer receivables	$	109.9		$	104.7
Miscellaneous receivables		8.0			7.9
Less allowance for warranties, discounts and losses		(3.8	)		(3.5	)
Accounts and notes receivable, net	$	114.1		$	109.1

We sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions. We consider these factors and the financial condition of each customer when establishing our allowance for losses from doubtful accounts.

As of March 31, 2022 and December 31, 2021, miscellaneous receivables included a $6.0 million and a $5.9 million Employee Retention Credit, respectively, representing a refundable payroll tax credit for eligible wages paid to our employees in 2020 and 2021 under the Coronavirus Aid, Relief, and Economic Recovery Act.

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Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

NOTE 6. INVENTORIES

	March 31, 2022			December 31, 2021
Finished goods	$	56.6		$	49.9
Goods in process		7.5			6.4
Raw materials and supplies		56.0			48.4
Less LIFO reserves		(16.2	)		(14.5	)
Total inventories, net	$	103.9		$	90.2

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Other Current Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

NOTE 7. OTHER CURRENT ASSETS

	March 31, 2022		December 31, 2021
Prepaid expenses	$	18.1	$	17.2
Assets held for sale		4.6		4.6
Other		0.9		1.3
Total other current assets	$	23.6	$	23.1

As of March 31, 2022 and December 31, 2021, assets held for sale included the property, plant and equipment of our idled Mineral Fiber plant in St. Helens, Oregon.

XML

Equity Investment

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Investment

NOTE 8. EQUITY INVESTMENT

Investment in joint venture reflects our 50% equity interest in WAVE. The WAVE joint venture is reflected within the Mineral Fiber segment in our condensed consolidated financial statements using the equity method of accounting. Condensed financial statement data for WAVE is summarized below.

	Three Months Ended
	March 31,
	2022		2021
Net sales	$	110.4	$	98.6
Gross profit		54.8		58.9
Net earnings		38.2		44.6

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 9. GOODWILL AND INTANGIBLE ASSETS

The following table details amounts related to our goodwill and intangible assets as of March 31, 2022 and December 31, 2021.

		March 31, 2022				December 31, 2021
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Customer relationships	1-20 years	$	189.4	$	141.2	$	196.7	$	144.8
Developed technology	13-19 years		93.0		82.8		92.9		82.6
Software	7 years		9.1		1.6		9.1		1.3
Trademarks and brand names	5-10 years		4.0		2.2		4.0		2.0
Non-compete agreements	3-5 years		5.6		1.7		5.6		1.4
Other	Various		0.4		0.1		0.4		0.1
Total		$	301.5	$	229.6	$	308.7	$	232.2
Non-amortizing intangible assets
Trademarks and brand names	Indefinite		345.0				344.9
Total intangible assets		$	646.5			$	653.6
Goodwill	Indefinite	$	167.1			$	167.0

The increase in goodwill since December 31, 2021 resulted from foreign exchange movements.

	Three Months Ended
	March 31,
	2022		2021
Amortization expense	$	4.8	$	10.2

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Accounts Payable And Accrued Expenses

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable And Accrued Expenses

NOTE 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	March 31, 2022		December 31, 2021
Payables, trade and other	$	96.1	$	105.8
Employment costs		14.4		30.3
Current portion of pension and postretirement liabilities		9.9		9.9
Acquisition-related contingent consideration		4.3		8.6
Other		20.7		20.3
Total accounts payable and accrued expenses	$	145.4	$	174.9

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Income Tax Expense

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Tax Expense

NOTE 11. INCOME TAX EXPENSE

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations before income taxes	$	59.4		$	49.7
Income tax expense		15.0			12.2
Effective tax rate		25.3	%		24.6	%

The effective tax rate for the first quarter of 2022 was higher compared to the same period in 2021 due primarily to a reduced benefit from share-based compensation.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the completion of ongoing examinations, the expiration of statutes of limitations or other unforeseen circumstances.

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

NOTE 12. DEBT

Our long-term debt is comprised of borrowings outstanding under our $1,000.0 million variable rate senior credit facility, which is comprised of a $500.0 million revolving credit facility (with a $150.0 million sublimit for letters of credit) and a $500.0 million Term Loan A. As of March 31, 2022 and December 31, 2021, the principal balance of our Term Loan A was $462.5 million and $468.7 million, respectively. As of March 31, 2022 and December 31, 2021, borrowings outstanding under our revolving credit facility were $180.0 million and $165.0 million, respectively. Additionally, we have a $25.0 million letter of credit facility, also known as our bi-lateral facility.

We utilize lines of credit and other commercial commitments to ensure that adequate funds are available to meet operating requirements. Letters of credit are currently arranged through our revolving credit facility and our bi-lateral facility. Letters of credit may be issued to third party suppliers, insurance and financial institutions and typically can only be drawn upon in the event of AWI’s failure to pay its obligations to the beneficiary. The following table presents details related to our letters of credit facilities:

	March 31, 2022
Financing Arrangements	Limit		Used		Available
Bi-lateral facility	$	25.0	$	8.1	$	16.9
Revolving credit facility		150.0		-		150.0
Total	$	175.0	$	8.1	$	166.9

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Pensions and Other Benefit Programs

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Pensions and Other Benefit Programs

NOTE 13. PENSIONS AND OTHER BENEFIT PROGRAMS

Following are the components of net periodic benefit costs (credits):

	Three Months Ended
	March 31,
	2022			2021
U.S. defined benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	0.9		$	1.2
Interest cost on projected benefit obligation		2.7			2.2
Expected return on plan assets		(4.6	)		(4.1	)
Amortization of net actuarial loss		1.0			0.9
Net periodic pension cost	$	-		$	0.2
Retiree health and life insurance benefits
Interest cost on projected benefit obligation	$	0.4		$	0.3
Amortization of prior service credit		(0.1	)		(0.1	)
Amortization of net actuarial gain		(0.7	)		(0.5	)
Net periodic postretirement (credit)	$	(0.4	)	$	(0.3	)

We also have an unfunded defined benefit pension plan in Germany, which was not included as part of prior dispositions. This plan is reported as a component of our Unallocated Corporate segment. Net periodic pension cost for this plan was immaterial for the three months ended March 31, 2022 and 2021.

The service cost component of net benefit cost has been presented in the Condensed Consolidated Statements of Earnings and Comprehensive Income within cost of goods sold and selling, general and administrative ("SG&A") expenses for all periods presented, which are the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in the Condensed Consolidated Statements of Earnings and Comprehensive Income separately from the service cost component within other non-operating income (expense), net.

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Financial Instruments and Contingent Consideration

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Financial Instruments and Contingent Consideration

NOTE 14. FINANCIAL INSTRUMENTS AND CONTINGENT CONSIDERATION

We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments and contingent consideration are as follows:

	March 31, 2022						December 31, 2021
	Carrying amount			Estimated fair value			Carrying amount			Estimated fair value
(Liabilities), net:
Total long-term debt, including current portion	$	(640.3	)	$	(633.4	)	$	(631.4	)	$	(626.0	)
Interest rate swap contracts		(0.7	)		(0.7	)		(14.2	)		(14.2	)
Acquisition-related contingent consideration		(4.3	)		(4.3	)		(12.8	)		(12.8	)

The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value because of the short-term maturity of these instruments. The fair value estimates of long-term debt are based on quotes from a major financial institution of recently observed trading levels of our Term Loan A debt. The fair value estimates for interest rate swap contracts are estimated by obtaining quotes from major financial institutions with verification by internal valuation models. We engage independent, third-party valuation specialists to determine the fair value estimate for acquisition-related contingent consideration payable based on future performance, which is measured using a Monte Carlo simulation. As of December 31, 2021, $8.6 million of the carrying amount of contingent consideration liabilities payable, related to final achievement of certain financial and performance milestones through December 31, 2021 for the acquisitions of Moz and Turf, was equal to fair value as milestone achievements were known.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; or

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The fair value measurement of liabilities measured at fair value on a recurring basis and reported on the Condensed Consolidated Balance Sheets is summarized below:

	March 31, 2022						December 31, 2021
	Fair value based on						Fair value based on
	Other observable inputs			Other unobservable inputs			Other observable inputs			Other unobservable inputs
	Level 2			Level 3			Level 2			Level 3
(Liabilities), net:
Interest rate swap contracts	$	(0.7	)	$	-		$	(14.2	)	$	-
Acquisition-related contingent consideration		-			(4.3	)		-			(4.2	)

As of March 31, 2022 and December 31, 2021, the acquisition-related contingent consideration liability represents the estimated fair value of additional cash consideration payable related to our acquisition of Turf upon the achievement of certain financial and performance milestones through December 31, 2022. The liability was measured based on a Monte Carlo simulation and was classified as a current liability as of March 31, 2022.

Acquisition-related contingent consideration of $4.3 million and $4.2 million as of March 31, 2022 and December 31, 2021, respectively, was measured with the use of significant unobservable inputs, which included financial projections over the earn-out period, the volatility of the underlying financial metrics and estimated discount rates. All changes in the contingent consideration liability subsequent to the initial acquisition-date measurements were recorded as a component of operating income on our Condensed Consolidated Statements of Earnings and Comprehensive Income.

The following table summarizes the weighted-average of the significant unobservable inputs used to measure Turf's acquisition-related contingent consideration as of March 31, 2022:

Unobservable input
Volatility	22.5	%
Discount rates	2.7	%

Unobservable inputs were weighted based on the relative fair value of the components of contingent consideration.

The changes in fair value of the acquisition-related contingent consideration liability for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended
	March 31,
	2022			2021
Fair value of contingent consideration as of beginning of period	$	12.8		$	16.9
Cash consideration paid		(8.6	)		-
Loss related to change in fair value of contingent consideration		0.1			0.2
Fair value of contingent consideration as of end of period	$	4.3		$	17.1

During the three months ended March 31, 2022, we paid $8.6 million of additional cash consideration, which represented the final achievement of certain financial and performance milestones through December 31, 2021 for the acquisitions of Moz and Turf. The

additional cash consideration paid was classified as cash flows from financing activities in our Condensed Consolidated Statements of Cash Flows, up to the acquisition-date fair value. The portion of additional cash consideration paid in excess of the acquisition-date fair value was classified as cash flows from operating activities in our Condensed Consolidated Statements of Cash Flows.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

NOTE 15. DERIVATIVE FINANCIAL INSTRUMENTS

We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our results of operations, cash flows and financial condition. We use interest rate derivatives to manage our exposures to interest rates. At inception, interest rate swap derivatives that we designate as hedging instruments are formally documented as a hedge of a forecasted transaction or cash flow hedge. We also formally assess, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, we discontinue hedge accounting and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as risk management tools and not for speculative trading purposes.

Counterparty Risk

We only enter into derivative transactions with established financial institution counterparties having an investment-grade credit rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit contingent features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual counterparties is controlled and we consider the risk of counterparty default to be negligible.

Interest Rate Risk

We utilize interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. These swaps are designated as cash flow hedges against changes in the London Interbank Offered Rate (“LIBOR”) for a portion of our variable rate debt. The following table summarizes our interest rate swaps as of March 31, 2022:

Trade Date	Notional Amount		Coverage Period	Risk Coverage
November 28, 2018	$	200.0	November 2018 to November 2023	USD-LIBOR
November 28, 2018	$	100.0	March 2021 to March 2025	USD-LIBOR
March 10, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR
March 11, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR

Under the terms of our interest rate swaps above, we pay a fixed rate monthly and receive 1-month LIBOR, inclusive of a 0% floor.

Financial Statement Impacts

The following tables detail amounts related to our derivatives as of March 31, 2022 and December 31, 2021. We did not have any derivative assets or liabilities not designated as hedging instruments as of March 31, 2022 or December 31, 2021. The derivative asset and liability amounts below are shown gross and have not been netted.

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2022		December 31, 2021		Balance Sheet Location	March 31, 2022		December 31, 2021
Interest rate swap contracts	Other current assets	$	-	$	-	Accounts payable and accrued expenses	$	-	$	0.1
Interest rate swap contracts	Other non-current assets		3.2		0.4	Other long-term liabilities		3.9		14.5

	Amount of Gain Recognized in AOCI				Location of Gain Reclassified from AOCI into Net Earnings	Gain Reclassified from AOCI into Net Earnings
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2022		2021			2022		2021
Derivatives in cash flow hedging relationships
Interest rate swap contracts	$	16.3	$	7.0	Interest expense	$	2.1	$	1.9

As of March 31, 2022, the amount of existing losses in AOCI expected to be recognized in earnings over the next twelve months was $1.6 million.

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Other Long-Term Liabilities

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities

NOTE 16. OTHER LONG-TERM LIABILITIES

	March 31, 2022		December 31, 2021
Long-term deferred compensation arrangements	$	17.6	$	17.6
Fair value of derivative liabilities		3.9		14.5
Environmental insurance recoveries received in excess of cumulative expenses incurred		4.0		4.8
Acquisition-related contingent consideration		-		4.2
Other		6.5		5.6
Total other long-term liabilities	$	32.0	$	46.7

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Shareholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholders' Equity

NOTE 17. 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 $483.8 million remaining under the Board’s repurchase authorization as of March 31, 2022.

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 the three months ended March 31, 2022, we repurchased 0.3 million shares under the Program for a total cost of $30.0 million, excluding commissions, or an average price of $99.67 per share. Since inception, we have repurchased 10.8 million shares under the Program for a total cost of $716.2 million, excluding commissions, or an average price of $66.27 per share.

Dividends

In February 2022, our Board of Directors declared a $0.231 per share quarterly dividend, which was paid to shareholders in March 2022. On April 20, 2022, our Board of Directors declared a $0.231 per share quarterly dividend to be paid in May 2022.

Accumulated Other Comprehensive (Loss)

	Foreign Currency Translation Adjustments		Derivative (Loss) Gain (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2021	$	2.3	$	(9.1	)	$	(102.8	)	$	(109.6	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($4.0), ($0.1) and ($4.1)		0.7		12.3			0.5			13.5
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.7	)		0.1			(1.6	)
Net current period other comprehensive income		0.7		10.6			0.6			11.9
Balance, March 31, 2022	$	3.0	$	1.5		$	(102.2	)	$	(97.7	)

	Foreign Currency Translation Adjustments		Derivative (Loss) (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2020	$	2.3	$	(19.0	)	$	(92.6	)	$	(109.3	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($1.7), $- and ($1.7)		0.6		5.3			-			5.9
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.5	)		0.2			(1.3	)
Net current period other comprehensive income		0.6		3.8			0.2			4.6
Balance, March 31, 2021	$	2.9	$	(15.2	)	$	(92.4	)	$	(104.7	)

(1)Amounts are net of tax

	Amounts Reclassified from Accumulated Other Comprehensive (Loss)						Affected Line Item in the Condensed Consolidated Statements of Earnings and Comprehensive Income
	Three Months Ended March 31,
	2022			2021
Derivative Adjustments:
Interest rate swap contracts, before tax	$	(2.1	)	$	(1.9	)	Interest expense
Tax impact		0.4			0.4		Income tax expense
Total (income), net of tax		(1.7	)		(1.5	)
Pension and Postretirement Adjustments:
Prior service credit amortization		(0.1	)		(0.1	)	Other non-operating (income), net
Amortization of net actuarial loss		0.3			0.4		Other non-operating (income), net
Total loss, before tax		0.2			0.3
Tax impact		(0.1	)		(0.1	)	Income tax expense
Total loss, net of tax		0.1			0.2
Total reclassifications for the period	$	(1.6	)	$	(1.3	)

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Litigation and Related Matters

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Litigation and Related Matters

NOTE 18. 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. While these expenditures are not typically material, the applicable regulatory requirements continually change and, as a result, we cannot predict with certainty the amount, nature or timing of future expenditures associated with environmental compliance.

Environmental Sites

Summary

We are actively involved in the investigation and remediation of existing or potential environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and state Superfund and similar environmental laws at two domestically owned locations allegedly resulting from past industrial activity.

In each location, we are one of multiple potentially responsible parties and have agreed to jointly fund the required investigation and remediation, while preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. We are currently pursuing coverage and recoveries under those policies with respect to certain of the sites, including the Macon, GA site and the Elizabeth City, NC site, each of which is summarized below.

These efforts have included two active and independent litigation matters against legacy primary and excess policy insurance carriers for recovery of fees and costs incurred by us in connection with our investigation and remediation activities for such sites. Other than disclosed below, we are unable to predict the outcome of these matters or the timing of any recoveries, whether through settlement or otherwise. We are also unable to predict the extent to which any recoveries might cover our final share of investigation and remediation costs for these sites. Our final share of investigation and remediation costs may exceed any such recoveries, and such amounts net of insurance recoveries may be material.

Between 2017 and 2021, we entered settlement agreements totaling $53.0 million with certain legacy insurance carriers to resolve ongoing litigation and recover fees and costs previously incurred by us in connection with certain environmental sites. These settlements were initially recorded as reductions to cost of goods sold and SG&A expenses, reflecting the same income statement categories where environmental expenditures were historically recorded. Beginning in 2020, cumulative insurance recoveries exceeded cumulative expenses to date related to the respective environmental sites and the excess was recorded within long-term liabilities on our Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, insurance recoveries in excess of cumulative expenses were $4.0 million and $4.8 million, respectively. The excess recoveries will be released to offset any future expenses incurred on the respective environmental sites. We anticipate that we may enter into additional settlement agreements in the future, which may or may not be material, with other legacy insurers to obtain reimbursement or contribution for environmental site expenses.

Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding each individual site. We consider factors such as our activities associated with the site, existing technology, presently enacted laws and regulations and prior company experience in remediating contaminated sites. Although current law imposes joint and several liability on all parties at Superfund sites, our contribution to the remediation of these sites is expected to be limited by the number of other companies potentially liable for site remediation. As a result, our estimated liability reflects only our expected share. In determining the probability of contribution, we consider the solvency of other parties, the site activities of other parties, whether liability is being disputed, the terms of any existing agreements and experience with similar matters, and the effect of our October 2006 Chapter 11 reorganization upon the validity of the claim, if any.

Specific Material Events

Macon, GA

The U.S. Environmental Protection Agency (the “EPA”) has listed two landfills located on a portion of our facility in Macon, GA, along with the former Macon Naval Ordnance Plant landfill adjacent to our property, portions of Rocky Creek, and certain tributaries leading to Rocky Creek (collectively, the “Macon Site”) as a Superfund site on the National Priorities List due to the presence of contaminants, most notably polychlorinated biphenyls (“PCBs”).

In September 2010, we entered into an Administrative Order on Consent for a Removal Action (the “Removal Action”) with the EPA to investigate PCB contamination in one of the landfills on our property, the Wastewater Treatment Plant Landfill (the “WWTP Landfill,” also known as “Operable Unit 1”). After completing an investigation of the WWTP Landfill and submitting our final Engineering Evaluation/Cost Analysis, the EPA issued an Action Memorandum in July 2013 selecting our recommended remedy for the Removal Action. The Operable Unit 1 response action for the WWTP Landfill is complete and the final report was submitted to the EPA on October 11, 2016. The EPA approved the final report on November 28, 2016, and a Post-Removal Control Plan (the “Plan”) was submitted to the EPA on March 28, 2017.

It is probable that we will incur field investigation, engineering and oversight costs associated with a Remedial Investigation and Feasibility Study (“RI/FS”) with respect to the remainder of the Superfund site, which includes the other landfill on our property, as well as areas on and adjacent to our property and Rocky Creek (the “Remaining Site,” also known as “Operable Unit 2”). On September 25, 2015, AWI and other Potential Responsible Parties (“PRPs”) received a Special Notice Letter from the EPA under CERCLA inviting AWI and the PRPs to enter into the negotiation of an agreement to conduct an RI/FS of Operable Unit 2. We and the other PRPs entered into a settlement agreement with the EPA effective September 18, 2018, in response to the Special Notice Letter to conduct the RI/FS. The PRPs submitted a complete RI/FS work plan, which was approved by the EPA on September 11, 2019. Investigative work on this portion of the site commenced in December 2019. In June 2021, the PRPs submitted the Site Characterization Summary Report (SCSR) for Operable Unit 2 to the EPA. The purpose of the SCSR is to demonstrate that the available data for Operable Unit 2 is adequate for the risk assessment and for the development of remedial action objectives. Additional investigative work for Operable Unit 2 continues in preparation of a Baseline Ecological Risk Assessment to be submitted to the EPA in 2022. We may ultimately incur costs in remediating any contamination discovered during the RI/FS. The current estimate of future liability at this site includes only our estimated share of the costs of the investigative work that the EPA is requiring the PRPs to perform at this time. We are unable to reasonably estimate our final share of the total costs associated with the investigation work or any resulting remediation therefrom, although such amounts may be material to any one quarter's or year's

results of operations in the future. We do not expect the total future costs to have a material adverse effect on our liquidity or financial condition as the cash payments may be made over many years.

Elizabeth City, NC

This site is a former cabinet manufacturing facility that was operated by Triangle Pacific Corporation, now known as Armstrong Wood Products, Inc. (“Triangle Pacific” or “AWP”), from 1977 until 1996. The site was formerly owned by the U.S. Navy (“Navy”) and Westinghouse, now CBS Corporation (“CBS”). We assumed ownership of the site when we acquired the stock of Triangle Pacific in 1998. Prior to our acquisition, the North Carolina Department of Environment and Natural Resources listed the site as a hazardous waste site. In 1997, Triangle Pacific entered into a cost sharing agreement with Westinghouse whereby the parties agreed to share equally in costs associated with investigation and potential remediation. In 2000, Triangle Pacific and CBS entered into an Administrative Order on Consent to conduct an RI/FS with the EPA for the site. In 2007, we and CBS entered into an agreement with the Navy whereby the Navy agreed to pay one third of defined past and future investigative costs up to a certain amount, which has now been exhausted. The EPA approved the RI/FS work plan in August 2011. In January 2014, we submitted the draft Remedial Investigation and Risk Assessment reports and conducted supplemental investigative work based upon agency comments to those reports. In connection with the separation of Armstrong Flooring, Inc. in 2016, we agreed to retain any legacy environmental liabilities associated with the AWP site. The EPA published an Interim Action Proposed Plan for the site in April 2018 seeking public comment through June 7, 2018. The EPA evaluated comments, including ours, and has published its Interim Record Of Decision selecting an interim cleanup approach. On September 25, 2018, AWI and CBS received a Special Notice Letter from the EPA under CERCLA inviting AWI and CBS to enter into the negotiation of a settlement agreement to conduct or finance the response action at the site. During the third quarter of 2018, we increased our reserve for the cost of the interim cleanup, which we expect to be shared with CBS and the Navy. In response to the September 2018 Special Notice Letter, we and CBS submitted a good faith offer to the EPA on May 28, 2019. In June 2021, we entered into a negotiated Partial Consent Decree and Site Participation Agreement with the EPA and the PRPs for the remedial design and remedial action to be completed by the parties at the site. The Partial Consent Decree for Remedial Design and Remedial Action was entered by the U.S. District Court for the Eastern District of North Carolina in January 2022. The current estimate of future liability at this site includes only our estimated share of the costs of the interim remedial action that, at this time, we anticipate the EPA will require the PRPs to perform. We are unable to reasonably estimate our final share of the total costs associated with the final remediation or any resulting remediation therefrom, although such amounts may be material to any one quarter’s or year’s results of operations in the future. We do not expect the total future costs to have a material adverse effect on our liquidity or financial condition as the cash payments may be made over many years.

Summary of Financial Position

Total liabilities of $0.5 million and $0.7 million as of March 31, 2022 and December 31, 2021, respectively, were recorded for environmental liabilities that we consider probable and for which a reasonable estimate of the probable liability could be made. As of March 31, 2022 and December 31, 2021, $0.1 million and $0.2 million, respectively, were reflected within accounts payable and accrued expenses. During the three months ended March 31, 2022, we recorded $0.6 million of additional reserves for potential environmental liabilities. As noted above, the expense associated with the additional reserves was offset through the release of a portion of the balance of insurance recoveries in excess of cumulative expenses. During the three months ended March 31, 2021, we did not record any additional reserves for potential environmental liabilities. Where existing data is sufficient to estimate the liability, that estimate has been used; where only a range of probable liabilities is available and no amount within that range is more likely than any other, the lower end of the range has been used. As assessments and remediation activities progress at each site, these liabilities are reviewed to reflect new information as it becomes available and adjusted to reflect amounts actually incurred and paid. These liabilities are undiscounted.

The estimated environmental liabilities above do not take into account any claims for additional recoveries from insurance or third parties. It is our policy to record insurance recoveries as assets in the Condensed Consolidated Balance Sheets when realizable. We incur costs to pursue environmental insurance recoveries, which are expensed as incurred.

Actual costs to be incurred at identified sites may vary from our estimates. Based on our knowledge of the identified sites, it is not possible to reasonably estimate future costs in excess of amounts already recognized.

OTHER CLAIMS

From time to time, we are involved in other various lawsuits, claims, investigations and other legal matters that arise in the ordinary course of business, including matters involving our products, intellectual property, relationships with suppliers, relationships with distributors, relationships with competitors, employees and other matters. In connection with those matters, we may have rights of contribution or reimbursement from other parties or coverage under applicable insurance policies. When applicable and appropriate,

we will pursue coverage and recoveries under those policies, but are unable to predict the outcome of those demands. While complete assurance cannot be given to the outcome of any proceedings relating to these matters, we do not believe that any current claims, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.

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Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 19. EARNINGS PER SHARE

The following table is a reconciliation of earnings to earnings attributable to common shares used in our basic and diluted Earnings Per Share (“EPS”) calculations for the three months ended March 31, 2022 and 2021. EPS components may not add due to rounding.

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations	$	44.4		$	37.5
(Earnings) allocated to participating vested share awards		(0.1	)		(0.1	)
Earnings from continuing operations attributable to common shares	$	44.3		$	37.4

The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the three months ended March 31, 2022 and 2021 (shares in millions):

	Three Months Ended
	March 31,
	2022		2021
Basic shares outstanding		47.1		47.8
Dilutive effect of common stock equivalents		0.1		0.2
Diluted shares outstanding		47.2		48.0

Anti-dilutive stock awards excluded from the computation of dilutive EPS for the three months ended March 31, 2022 and 2021 were 7,676 and 33,643, respectively.

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Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Derivatives

We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our results of operations, cash flows and financial condition. We use interest rate derivatives to manage our exposures to interest rates. At inception, interest rate swap derivatives that we designate as hedging instruments are formally documented as a hedge of a forecasted transaction or cash flow hedge. We also formally assess, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, we discontinue hedge accounting and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as risk management tools and not for speculative trading purposes.

Counterparty Risk

We only enter into derivative transactions with established financial institution counterparties having an investment-grade credit rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit contingent features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual counterparties is controlled and we consider the risk of counterparty default to be negligible.

Interest Rate Risk

We utilize interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. These swaps are designated as cash flow hedges against changes in the London Interbank Offered Rate (“LIBOR”) for a portion of our variable rate debt.

Environmental Matters

Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding each individual site. We consider factors such as our activities associated with the site, existing technology, presently enacted laws and regulations and prior company experience in remediating contaminated sites. Although current law imposes joint and several liability on all parties at Superfund sites, our contribution to the remediation of these sites is expected to be limited by the number of other companies potentially liable for site remediation. As a result, our estimated liability reflects only our expected share. In determining the probability of contribution, we consider the solvency of other parties, the site activities of other parties, whether liability is being disputed, the terms of any existing agreements and experience with similar matters, and the effect of our October 2006 Chapter 11 reorganization upon the validity of the claim, if any.The estimated environmental liabilities above do not take into account any claims for additional recoveries from insurance or third parties. It is our policy to record insurance recoveries as assets in the Condensed Consolidated Balance Sheets when realizable. We incur costs to pursue environmental insurance recoveries, which are expensed as incurred.

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Segment Results (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Net Sales

	Three Months Ended
	March 31,
	2022		2021
Net sales
Mineral Fiber	$	203.2	$	188.7
Architectural Specialties		79.4		63.2
Total net sales	$	282.6	$	251.9

Schedule of Segment Operating Income (Loss)

	Three Months Ended
	March 31,
	2022			2021
Segment operating income (loss)
Mineral Fiber	$	57.6		$	60.6
Architectural Specialties		6.5			(4.9	)
Unallocated Corporate		(0.9	)		(1.6	)
Total consolidated operating income	$	63.2		$	54.1

The Architectural Specialties operating loss for the three months ended March 31, 2021 was driven by intangible asset amortization and other acquisition-related expenses related to our acquisitions of TURF Design, Inc. ("Turf") in July 2020, Moz Designs, Inc. ("Moz") in August 2020, and Arktura LLC ("Arktura") in December 2020.

Reconciliation of Total Consolidated Operating Income to Earnings Before Income Taxes

	Three Months Ended
	March 31,
	2022			2021
Total consolidated operating income	$	63.2		$	54.1
Interest expense		5.1			5.7
Other non-operating (income), net		(1.3	)		(1.3	)
Earnings from continuing operations before income taxes	$	59.4		$	49.7

Reconciliation of Total Segment Assets to Total Consolidated Assets

	March 31, 2022		December 31, 2021
Segment assets
Mineral Fiber	$	1,142.7	$	1,133.9
Architectural Specialties		378.1		366.3
Unallocated Corporate		187.3		209.8
Total consolidated assets	$	1,708.1	$	1,710.0

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Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Mineral Fiber [Member]

Disaggregation Of Revenue [Line Items]

Schedule of Net Sales by Major Customer Channel within Each Segment

The following tables provide net sales by major customer channel within our Mineral Fiber and Architectural Specialties segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended
	March 31,
Mineral Fiber	2022		2021
Distributors	$	143.5	$	135.3
Home centers		28.1		26.8
Direct customers		14.3		12.8
Retailers and other		17.3		13.8
Total	$	203.2	$	188.7

Architectural Specialties [Member]

Disaggregation Of Revenue [Line Items]

Schedule of Net Sales by Major Customer Channel within Each Segment

	Three Months Ended
	March 31,
Architectural Specialties	2022		2021
Distributors	$	38.8	$	34.3
Direct customers		39.4		28.1
Retailers and other		1.2		0.8
Total	$	79.4	$	63.2

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2022

Discontinued Operations [Abstract]

Summary of Results of Discontinued Operations

The following table details the line items that comprise discontinued operations on the Condensed Consolidated Statements of Earnings and Comprehensive Income.

	Three Months Ended
	March 31,
	2021
Loss from disposal of discontinued businesses, before income tax	$	(0.4	)
Income tax expense		1.7
Loss from disposal of discontinued businesses, net of tax		(2.1	)
Net loss from discontinued operations	$	(2.1	)

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Accounts and Notes Receivable (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Accounts and Notes Receivable

	March 31, 2022			December 31, 2021
Customer receivables	$	109.9		$	104.7
Miscellaneous receivables		8.0			7.9
Less allowance for warranties, discounts and losses		(3.8	)		(3.5	)
Accounts and notes receivable, net	$	114.1		$	109.1

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Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

	March 31, 2022			December 31, 2021
Finished goods	$	56.6		$	49.9
Goods in process		7.5			6.4
Raw materials and supplies		56.0			48.4
Less LIFO reserves		(16.2	)		(14.5	)
Total inventories, net	$	103.9		$	90.2

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Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

	March 31, 2022		December 31, 2021
Prepaid expenses	$	18.1	$	17.2
Assets held for sale		4.6		4.6
Other		0.9		1.3
Total other current assets	$	23.6	$	23.1

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Equity Investment (Tables)

3 Months Ended

Mar. 31, 2022

WAVE [Member]

Schedule of Equity Method Investments [Line Items]

Summary of Investment in Joint Venture, Income Statement Data

Condensed financial statement data for WAVE is summarized below.

	Three Months Ended
	March 31,
	2022		2021
Net sales	$	110.4	$	98.6
Gross profit		54.8		58.9
Net earnings		38.2		44.6

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets

The following table details amounts related to our goodwill and intangible assets as of March 31, 2022 and December 31, 2021.

		March 31, 2022				December 31, 2021
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Customer relationships	1-20 years	$	189.4	$	141.2	$	196.7	$	144.8
Developed technology	13-19 years		93.0		82.8		92.9		82.6
Software	7 years		9.1		1.6		9.1		1.3
Trademarks and brand names	5-10 years		4.0		2.2		4.0		2.0
Non-compete agreements	3-5 years		5.6		1.7		5.6		1.4
Other	Various		0.4		0.1		0.4		0.1
Total		$	301.5	$	229.6	$	308.7	$	232.2
Non-amortizing intangible assets
Trademarks and brand names	Indefinite		345.0				344.9
Total intangible assets		$	646.5			$	653.6
Goodwill	Indefinite	$	167.1			$	167.0

The increase in goodwill since December 31, 2021 resulted from foreign exchange movements.

	Three Months Ended
	March 31,
	2022		2021
Amortization expense	$	4.8	$	10.2

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Accounts Payable And Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

	March 31, 2022		December 31, 2021
Payables, trade and other	$	96.1	$	105.8
Employment costs		14.4		30.3
Current portion of pension and postretirement liabilities		9.9		9.9
Acquisition-related contingent consideration		4.3		8.6
Other		20.7		20.3
Total accounts payable and accrued expenses	$	145.4	$	174.9

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Income Tax Expense (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations before income taxes	$	59.4		$	49.7
Income tax expense		15.0			12.2
Effective tax rate		25.3	%		24.6	%

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

Letter of Credit [Member]

Debt Instrument [Line Items]

Schedule of Letters of Credit Facilities

The following table presents details related to our letters of credit facilities:

	March 31, 2022
Financing Arrangements	Limit		Used		Available
Bi-lateral facility	$	25.0	$	8.1	$	16.9
Revolving credit facility		150.0		-		150.0
Total	$	175.0	$	8.1	$	166.9

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Pensions and Other Benefit Programs (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Schedule of Periodic Benefit Costs (Credits)

Following are the components of net periodic benefit costs (credits):

	Three Months Ended
	March 31,
	2022			2021
U.S. defined benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	0.9		$	1.2
Interest cost on projected benefit obligation		2.7			2.2
Expected return on plan assets		(4.6	)		(4.1	)
Amortization of net actuarial loss		1.0			0.9
Net periodic pension cost	$	-		$	0.2
Retiree health and life insurance benefits
Interest cost on projected benefit obligation	$	0.4		$	0.3
Amortization of prior service credit		(0.1	)		(0.1	)
Amortization of net actuarial gain		(0.7	)		(0.5	)
Net periodic postretirement (credit)	$	(0.4	)	$	(0.3	)

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Financial Instruments and Contingent Consideration (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Estimated Fair Value of Financial Instruments

The estimated fair values of our financial instruments and contingent consideration are as follows:

	March 31, 2022						December 31, 2021
	Carrying amount			Estimated fair value			Carrying amount			Estimated fair value
(Liabilities), net:
Total long-term debt, including current portion	$	(640.3	)	$	(633.4	)	$	(631.4	)	$	(626.0	)
Interest rate swap contracts		(0.7	)		(0.7	)		(14.2	)		(14.2	)
Acquisition-related contingent consideration		(4.3	)		(4.3	)		(12.8	)		(12.8	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The fair value measurement of liabilities measured at fair value on a recurring basis and reported on the Condensed Consolidated Balance Sheets is summarized below:

	March 31, 2022						December 31, 2021
	Fair value based on						Fair value based on
	Other observable inputs			Other unobservable inputs			Other observable inputs			Other unobservable inputs
	Level 2			Level 3			Level 2			Level 3
(Liabilities), net:
Interest rate swap contracts	$	(0.7	)	$	-		$	(14.2	)	$	-
Acquisition-related contingent consideration		-			(4.3	)		-			(4.2	)

Schedule of Weighted-average Of Significant Unobservable Inputs

The following table summarizes the weighted-average of the significant unobservable inputs used to measure Turf's acquisition-related contingent consideration as of March 31, 2022:

Unobservable input
Volatility	22.5	%
Discount rates	2.7	%

Schedule of Changes in Fair Value of the Acquisition-related Contingent Consideration Liability

The changes in fair value of the acquisition-related contingent consideration liability for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended
	March 31,
	2022			2021
Fair value of contingent consideration as of beginning of period	$	12.8		$	16.9
Cash consideration paid		(8.6	)		-
Loss related to change in fair value of contingent consideration		0.1			0.2
Fair value of contingent consideration as of end of period	$	4.3		$	17.1

During the three months ended March 31, 2022, we paid $8.6 million of additional cash consideration, which represented the final achievement of certain financial and performance milestones through December 31, 2021 for the acquisitions of Moz and Turf. The

additional cash consideration paid was classified as cash flows from financing activities in our Condensed Consolidated Statements of Cash Flows, up to the acquisition-date fair value. The portion of additional cash consideration paid in excess of the acquisition-date fair value was classified as cash flows from operating activities in our Condensed Consolidated Statements of Cash Flows.

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swaps

The following table summarizes our interest rate swaps as of March 31, 2022:

Trade Date	Notional Amount		Coverage Period	Risk Coverage
November 28, 2018	$	200.0	November 2018 to November 2023	USD-LIBOR
November 28, 2018	$	100.0	March 2021 to March 2025	USD-LIBOR
March 10, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR
March 11, 2020	$	50.0	March 2021 to March 2024	USD-LIBOR

Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2022		December 31, 2021		Balance Sheet Location	March 31, 2022		December 31, 2021
Interest rate swap contracts	Other current assets	$	-	$	-	Accounts payable and accrued expenses	$	-	$	0.1
Interest rate swap contracts	Other non-current assets		3.2		0.4	Other long-term liabilities		3.9		14.5

Summary of Amount of Gain Recognized in Accumulated Other Comprehensive Income

	Amount of Gain Recognized in AOCI				Location of Gain Reclassified from AOCI into Net Earnings	Gain Reclassified from AOCI into Net Earnings
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2022		2021			2022		2021
Derivatives in cash flow hedging relationships
Interest rate swap contracts	$	16.3	$	7.0	Interest expense	$	2.1	$	1.9

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Other Long-Term Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Other Long-Term Liabilities

	March 31, 2022		December 31, 2021
Long-term deferred compensation arrangements	$	17.6	$	17.6
Fair value of derivative liabilities		3.9		14.5
Environmental insurance recoveries received in excess of cumulative expenses incurred		4.0		4.8
Acquisition-related contingent consideration		-		4.2
Other		6.5		5.6
Total other long-term liabilities	$	32.0	$	46.7

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive (Loss) Activity

Accumulated Other Comprehensive (Loss)

	Foreign Currency Translation Adjustments		Derivative (Loss) Gain (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2021	$	2.3	$	(9.1	)	$	(102.8	)	$	(109.6	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($4.0), ($0.1) and ($4.1)		0.7		12.3			0.5			13.5
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.7	)		0.1			(1.6	)
Net current period other comprehensive income		0.7		10.6			0.6			11.9
Balance, March 31, 2022	$	3.0	$	1.5		$	(102.2	)	$	(97.7	)

	Foreign Currency Translation Adjustments		Derivative (Loss) (1)			Pension and Postretirement Adjustments (1)			Total Accumulated Other Comprehensive (Loss) (1)
Balance, December 31, 2020	$	2.3	$	(19.0	)	$	(92.6	)	$	(109.3	)
Other comprehensive income before reclassifications,    net of tax (expense) of $-, ($1.7), $- and ($1.7)		0.6		5.3			-			5.9
Amounts reclassified from accumulated other    comprehensive (loss)		-		(1.5	)		0.2			(1.3	)
Net current period other comprehensive income		0.6		3.8			0.2			4.6
Balance, March 31, 2021	$	2.9	$	(15.2	)	$	(92.4	)	$	(104.7	)

(1)Amounts are net of tax

Reclassification out of Accumulated Other Comprehensive (Loss)

	Amounts Reclassified from Accumulated Other Comprehensive (Loss)						Affected Line Item in the Condensed Consolidated Statements of Earnings and Comprehensive Income
	Three Months Ended March 31,
	2022			2021
Derivative Adjustments:
Interest rate swap contracts, before tax	$	(2.1	)	$	(1.9	)	Interest expense
Tax impact		0.4			0.4		Income tax expense
Total (income), net of tax		(1.7	)		(1.5	)
Pension and Postretirement Adjustments:
Prior service credit amortization		(0.1	)		(0.1	)	Other non-operating (income), net
Amortization of net actuarial loss		0.3			0.4		Other non-operating (income), net
Total loss, before tax		0.2			0.3
Tax impact		(0.1	)		(0.1	)	Income tax expense
Total loss, net of tax		0.1			0.2
Total reclassifications for the period	$	(1.6	)	$	(1.3	)

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Reconciliation of Earnings to Earnings Attributable to Common Shares Used in Basic and Diluted Earnings Per Share Calculation

The following table is a reconciliation of earnings to earnings attributable to common shares used in our basic and diluted Earnings Per Share (“EPS”) calculations for the three months ended March 31, 2022 and 2021. EPS components may not add due to rounding.

	Three Months Ended
	March 31,
	2022			2021
Earnings from continuing operations	$	44.4		$	37.5
(Earnings) allocated to participating vested share awards		(0.1	)		(0.1	)
Earnings from continuing operations attributable to common shares	$	44.3		$	37.4

Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding

The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the three months ended March 31, 2022 and 2021 (shares in millions):

	Three Months Ended
	March 31,
	2022		2021
Basic shares outstanding		47.1		47.8
Dilutive effect of common stock equivalents		0.1		0.2
Diluted shares outstanding		47.2		48.0

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Segment Results (Schedule of Net Sales) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Total net sales	$ 282.6	$ 251.9
Mineral Fiber [Member]
Segment Reporting Information [Line Items]
Total net sales	203.2	188.7
Architectural Specialties [Member]
Segment Reporting Information [Line Items]
Total net sales	$ 79.4	$ 63.2

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Segment Results (Schedule of Segment Operating Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Total Consolidated Operating Income (Loss)	$ 63.2	$ 54.1
Mineral Fiber [Member]
Segment Reporting Information [Line Items]
Total Consolidated Operating Income (Loss)	57.6	60.6
Architectural Specialties [Member]
Segment Reporting Information [Line Items]
Total Consolidated Operating Income (Loss)	6.5	(4.9)
Unallocated Corporate [Member]
Segment Reporting Information [Line Items]
Total Consolidated Operating Income (Loss)	$ (0.9)	$ (1.6)

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Segment Results (Reconciliation of Total Consolidated Operating Income to Earnings Before Income Taxes) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting [Abstract]
Total consolidated operating income	$ 63.2	$ 54.1
Interest expense	5.1	5.7
Other non-operating (income), net	(1.3)	(1.3)
Earnings from continuing operations before income taxes	$ 59.4	$ 49.7

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Segment Results (Reconciliation of Total Segment Assets to Total Consolidated Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total consolidated assets	$ 1,708.1	$ 1,710.0
Mineral Fiber [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	1,142.7	1,133.9
Architectural Specialties [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	378.1	366.3
Unallocated Corporate [Member]
Segment Reporting Information [Line Items]
Total consolidated assets	$ 187.3	$ 209.8

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Revenue (Schedule of Net Sales by Major Customer Group within Each Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 282.6	$ 251.9
Mineral Fiber [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	203.2	188.7
Mineral Fiber [Member] | Distributors [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	143.5	135.3
Mineral Fiber [Member] | Home Centers [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	28.1	26.8
Mineral Fiber [Member] | Direct Customers [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	14.3	12.8
Mineral Fiber [Member] | Retailers And Other
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	17.3	13.8
Architectural Specialties [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	79.4	63.2
Architectural Specialties [Member] | Distributors [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	38.8	34.3
Architectural Specialties [Member] | Direct Customers [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	39.4	28.1
Architectural Specialties [Member] | Retailers And Other
Entity Wide Revenue Major Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1.2	$ 0.8

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Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Loss from disposal of discontinued business, before income tax	$ 0.0	$ (0.4)
Valuation Loss On Pension Liabilities		11.8
EMEA and Pacific Rim Business [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Loss from disposal of discontinued business, before income tax	$ 0.0	$ (0.4)

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Discontinued Operations (Schedule of Business Details and Line Items Comprising Discontinued Operations on Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Loss from disposal of discontinued business, before income tax	$ 0.0	$ (0.4)
Income tax expense	0.0	1.7
Loss from disposal of discontinued businesses, net of tax	0.0	(2.1)
Net loss from discontinued operations	0.0	(2.1)
EMEA and Pacific Rim Business [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Loss from disposal of discontinued business, before income tax	$ 0.0	(0.4)
Income tax expense		1.7
Loss from disposal of discontinued businesses, net of tax		(2.1)
Net loss from discontinued operations		$ (2.1)

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Accounts and Notes Receivable (Schedule of Accounts and Notes Receivable) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Customer receivables	$ 109.9	$ 104.7
Miscellaneous receivables	8.0	7.9
Less allowance for warranties, discounts and losses	(3.8)	(3.5)
Accounts and notes receivable, net	$ 114.1	$ 109.1

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Accounts and Notes Receivable (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Miscellaneous receivables	$ 8.0	$ 7.9
Employee Retention Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Miscellaneous receivables	$ 6.0	$ 5.9

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 56.6	$ 49.9
Goods in process	7.5	6.4
Raw materials and supplies	56.0	48.4
Less LIFO reserves	(16.2)	(14.5)
Total inventories, net	$ 103.9	$ 90.2

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Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 18.1	$ 17.2
Assets held for sale	4.6	4.6
Other	0.9	1.3
Total other current assets	$ 23.6	$ 23.1

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Equity Investment (Narrative) (Details)	Mar. 31, 2022
WAVE [Member]
Schedule of Equity Method Investments [Line Items]
Equity interest percentage	50.00%

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Equity Investment (Summary of Investment in Joint Venture, Income Statement Data) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of Equity Method Investments [Line Items]
Net sales	$ 282.6	$ 251.9
Gross profit	102.2	87.5
Net earnings	44.4	35.4
WAVE [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule of Equity Method Investments [Line Items]
Net sales	110.4	98.6
Gross profit	54.8	58.9
Net earnings	$ 38.2	$ 44.6

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Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Intangible Assets And Goodwill [Line Items]
Goodwill, Estimated Useful Life	Indefinite
Amortizing intangible assets, Gross Carrying Amount	$ 301.5	$ 308.7
Amortizing intangible assets, Accumulated Amortization	229.6	232.2
Non-amortizing intangible assets	345.0	344.9
Total intangible assets	646.5	653.6
Goodwill	$ 167.1	167.0
Trademarks And Brand Names [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Non-amortizing intangible assets, Estimated Useful Life	Indefinite
Customer Relationships [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Gross Carrying Amount	$ 189.4	196.7
Amortizing intangible assets, Accumulated Amortization	$ 141.2	144.8
Customer Relationships [Member] | Minimum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	1 year
Customer Relationships [Member] | Maximum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	20 years
Developed Technology [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Gross Carrying Amount	$ 93.0	92.9
Amortizing intangible assets, Accumulated Amortization	$ 82.8	82.6
Developed Technology [Member] | Minimum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	13 years
Developed Technology [Member] | Maximum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	19 years
Software [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	7 years
Amortizing intangible assets, Gross Carrying Amount	$ 9.1	9.1
Amortizing intangible assets, Accumulated Amortization	1.6	1.3
Trademarks And Brand Names [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Gross Carrying Amount	4.0	4.0
Amortizing intangible assets, Accumulated Amortization	$ 2.2	2.0
Trademarks And Brand Names [Member] | Minimum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	5 years
Trademarks And Brand Names [Member] | Maximum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	10 years
Non-compete Agreements [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Gross Carrying Amount	$ 5.6	5.6
Amortizing intangible assets, Accumulated Amortization	$ 1.7	1.4
Non-compete Agreements [Member] | Minimum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	3 years
Non-compete Agreements [Member] | Maximum [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	5 years
Other [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
Amortizing intangible assets, Estimated Useful Life	Various
Amortizing intangible assets, Gross Carrying Amount	$ 0.4	0.4
Amortizing intangible assets, Accumulated Amortization	$ 0.1	$ 0.1

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Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4.8	$ 10.2

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Accounts Payable And Accrued Expenses (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Accounts Payble And Accrued Expenses [Line Items]
Payables, trade and other	$ 96.1	$ 105.8
Employment costs	14.4	30.3
Current portion of pension and postretirement liabilities	9.9	9.9
Acquisition-related contingent consideration	4.3	8.6
Other	20.7	20.3
Total accounts payable and accrued expenses	$ 145.4	$ 174.9

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Income Tax Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Earnings from continuing operations before income taxes	$ 59.4	$ 49.7
Income tax expense	$ 15.0	$ 12.2
Effective tax rate	25.30%	24.60%

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Debt (Narrative) (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facility amount	$ 8,100,000
Line of credit availability	175,000,000.0
Term Loan A [Member]
Debt Instrument [Line Items]
Line of credit availability	500,000,000.0
Principal debt outstanding	462,500,000	$ 468,700,000
Bi-lateral Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facility amount	8,100,000
Line of credit availability	25,000,000.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit availability	500,000,000.0
Amount outstanding	180,000,000.0	$ 165,000,000.0
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Line of credit availability	150,000,000.0
Senior Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility amount	$ 1,000,000,000.0

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Debt (Schedule of Letters of Credit Facilities) (Details)	Mar. 31, 2022 USD ($)
Letter of Credit [Member]
Debt Instrument [Line Items]
Letters of credit, Limit	$ 175,000,000.0
Letters of credit, Available	166,900,000
Letter of Credit [Member] | Bi-lateral Facility [Member]
Debt Instrument [Line Items]
Letters of credit, Limit	25,000,000.0
Letters of credit, Available	16,900,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Letters of credit, Limit	500,000,000.0
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Letters of credit, Limit	150,000,000.0
Letters of credit, Available	$ 150,000,000.0

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Pensions and Other Benefit Programs (Schedule of Periodic Benefit Costs (Credits) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
U.S. Defined-Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost of benefits earned during the period	$ 0.9	$ 1.2
Interest cost on projected benefit obligation	2.7	2.2
Expected return on plan assets	(4.6)	(4.1)
Amortization of net actuarial (gain) loss	1.0	0.9
Net periodic postretirement (credit) cost		0.2
Retiree Health And Life Insurance Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost on projected benefit obligation	0.4	0.3
Amortization of prior service credit	(0.1)	(0.1)
Amortization of net actuarial (gain) loss	(0.7)	(0.5)
Net periodic postretirement (credit) cost	$ (0.4)	$ (0.3)

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Financial Instruments and Contingent Consideration (Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Acquisition-related contingent consideration	$ (4.3)	$ (8.6)
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt, including current portion	(640.3)	(631.4)
Interest rate swap contracts	0.7
Acquisition-related contingent consideration	(4.3)	(12.8)
Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt, including current portion	(633.4)	(626.0)
Interest rate swap contracts	0.7
Acquisition-related contingent consideration	$ (4.3)	(12.8)
Interest Rate Swap Contracts [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap contracts		(14.2)
Interest Rate Swap Contracts [Member] | Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap contracts		$ (14.2)

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Financial Instruments and Contingent Consideration (Summary of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Acquisition-related contingent consideration	$ (4.3)	$ (8.6)
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Acquisition-related contingent consideration	(4.3)	(4.2)
Interest Rate Swap Contracts [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap contracts	$ (0.7)	$ (14.2)

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Financial Instruments and Contingent Consideration (Schedule of Weighted-Average of Significant Unobservable Inputs) (Details) - Turf [Member]	3 Months Ended
	Mar. 31, 2022
Volatility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rates	22.50%
Discount Rates [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rates	2.70%

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Financial Instruments and Contingent Consideration (Schedule of Changes in Fair Value of the Acquisition Related Contingent Consideration Liability) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Combinations [Abstract]
Fair value of contingent consideration as of beginning of period	$ 12.8	$ 16.9
Cash consideration paid	(8.6)	0.0
Loss related to change in fair value of contingent consideration	0.1	0.2
Fair value of contingent consideration as of end of period	$ 4.3	$ 17.1

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Financial Instruments and Contingent Consideration (Additional Information) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Business combination, consideration transferred estimated fair value	$ 4.3	$ 8.6
Cash consideration paid	8.6
Fair Value, Inputs, Level 3 [Member]
Business Acquisition [Line Items]
Business combination, consideration transferred estimated fair value	$ 4.3	$ 4.2

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Derivative Financial Instruments (Summary of Interest Rate Swaps) (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
November 2018 to November 2023 [Member]
Derivative [Line Items]
Trade Date	Nov. 28, 2018
Notional Amount	$ 200,000,000.0
Coverage Period	November 2018 to November 2023
Risk Coverage	USD-LIBOR
March 2021 to March 2025 [Member]
Derivative [Line Items]
Trade Date	Nov. 28, 2018
Notional Amount	$ 100,000,000.0
Coverage Period	March 2021 to March 2025
Risk Coverage	USD-LIBOR
March 2021 to March 2024 [Member]
Derivative [Line Items]
Trade Date	Mar. 10, 2020
Notional Amount	$ 50,000,000.0
Coverage Period	March 2021 to March 2024
Risk Coverage	USD-LIBOR
March 2021 to March 2024 [Member]
Derivative [Line Items]
Trade Date	Mar. 11, 2020
Notional Amount	$ 50,000,000.0
Coverage Period	March 2021 to March 2024
Risk Coverage	USD-LIBOR

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Derivative Financial Instruments (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Derivative [Line Items]
Loss in AOCI expected to be recognized in earnings over the next twelve months	$ 1.6
Interest Rate Swap Contracts [Member]
Derivative [Line Items]
LIBOR floor	0.00%

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Derivative Financial Instruments (Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet) (Details) - Interest Rate Swap Contracts [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Other Non-Current Assets [Member]
Derivatives Fair Value [Line Items]
Derivative Assets, Fair Value	$ 3.2	$ 0.4
Accounts Payable and Accrued Expenses [Member]
Derivatives Fair Value [Line Items]
Derivative Liabilities, Fair Value	0.0	0.1
Other Long-Term Liabilities [Member]
Derivatives Fair Value [Line Items]
Derivative Liabilities, Fair Value	$ 3.9	$ 14.5

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Derivative Financial Instruments (Summary of Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income) (Details) - Derivatives in Cash Flow Hedging Relationships [Member] - Interest Rate Swap Contracts [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments Gain Loss [Line Items]
Amount of Gain Recognized in AOCI	$ 16.3	$ 7.0
Interest Expense [Member]
Derivative Instruments Gain Loss [Line Items]
Gain reclassified from AOCI into net earnings	$ 2.1	$ 1.9

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Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Long-term deferred compensation arrangements	$ 17.6	$ 17.6
Fair value of derivative liabilities	3.9	14.5
Environmental insurance recoveries received in excess of cumulative expenses incurred	4.0	4.8
Acquisition-related contingent consideration	0.0	4.2
Other	6.5	5.6
Total other long-term liabilities	$ 32.0	$ 46.7

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Shareholders' Equity (Narrative) (Details) - USD ($)			1 Months Ended	3 Months Ended
	Apr. 20, 2022	Jul. 29, 2016	Feb. 28, 2021	Mar. 31, 2022	Mar. 31, 2021	May 31, 2022
Equity Class Of Treasury Stock [Line Items]
Shares repurchase program, repurchased cost				$ 30,000,000.0	$ 10,000,000.0
Quarterly dividends declared	$ 0.231		$ 0.231
Dividends declared				$ 0.231	$ 0.21
Dividends payable, date to be paid, year and month				2022-03		2022-05
Common Stock
Equity Class Of Treasury Stock [Line Items]
Shares repurchase program, expiration date		Dec. 31, 2023
Stock repurchase program, remaining authorized repurchase amount				$ 483,800,000
Shares repurchase program, shares repurchased				(301,005)	(125,635)
Common Stock | Share Repurchase Program Excluding Accelerated Share Repurchase
Equity Class Of Treasury Stock [Line Items]
Shares repurchase program, shares repurchased				300,000
Shares repurchase program, repurchased cost				$ 30,000,000.0
Shares repurchase program, average price per share				$ 99.67
Common Stock | Share Repurchase Program Including Accelerated Share Repurchase
Equity Class Of Treasury Stock [Line Items]
Shares repurchase program, shares repurchased				10,800,000
Shares repurchase program, repurchased cost				$ 716,200,000
Shares repurchase program, average price per share				$ 66.27
Common Stock | Maximum [Member]
Equity Class Of Treasury Stock [Line Items]
Shares repurchase program, authorized amount		$ 1,200,000,000.0

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Shareholders' Equity (Schedule of Accumulated Other Comprehensive (Loss) Activity) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 519.7	$ 450.9
Ending Balance	537.6	473.6
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	2.3	2.3
Other comprehensive income before reclassifications, net of tax (expense)	0.7	0.6
Amounts reclassified from accumulated other comprehensive (loss)	0.0	0.0
Net current period other comprehensive income	0.7	0.6
Ending Balance	3.0	2.9
Derivative (Loss) Gain [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(9.1)	(19.0)
Other comprehensive income before reclassifications, net of tax (expense)	12.3	5.3
Amounts reclassified from accumulated other comprehensive (loss)	(1.7)	(1.5)
Net current period other comprehensive income	10.6	3.8
Ending Balance	1.5	(15.2)
Pension And Postretirement Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(102.8)	(92.6)
Other comprehensive income before reclassifications, net of tax (expense)	0.5	0.0
Amounts reclassified from accumulated other comprehensive (loss)	0.1	0.2
Net current period other comprehensive income	0.6	0.2
Ending Balance	(102.2)	(92.4)
Accumulated Other Comprehensive (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(109.6)	(109.3)
Other comprehensive income before reclassifications, net of tax (expense)	13.5	5.9
Amounts reclassified from accumulated other comprehensive (loss)	(1.6)	(1.3)
Net current period other comprehensive income	11.9	4.6
Ending Balance	$ (97.7)	$ (104.7)

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Shareholders' Equity (Schedule of Accumulated Other Comprehensive (Loss) Activity) (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, tax benefit (expense)	$ (4.1)	$ (1.7)
Derivative (Loss) Gain [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, tax benefit (expense)	(4.0)	$ (1.7)
Pension And Postretirement Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, tax benefit (expense)	$ (0.1)

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Shareholders' Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ (5.1)	$ (5.7)
Tax impact	(15.0)	(12.2)
Total (income), net of tax	(44.4)	(35.4)
Reclassification From Accumulated Other Comprehensive Loss [Member] | Derivative (Loss) Gain [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Tax impact	0.4	0.4
Total (income), net of tax	(1.7)	(1.5)
Reclassification From Accumulated Other Comprehensive Loss [Member] | Derivative (Loss) Gain [Member] | Interest Rate Swap Contracts, Before Tax [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Interest expense	(2.1)	(1.9)
Reclassification From Accumulated Other Comprehensive Loss [Member] | Prior Service Credit Amortization [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other non-operating (income), net	(0.1)	(0.1)
Reclassification From Accumulated Other Comprehensive Loss [Member] | Amortization of Net Actuarial Loss [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other non-operating (income), net	0.3	0.4
Reclassification From Accumulated Other Comprehensive Loss [Member] | Pension And Postretirement Adjustments [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Total loss, before tax	(0.2)	(0.3)
Tax impact	0.1	0.1
Total loss, net of tax	(0.1)	(0.2)
Total reclassifications for the period	$ (1.6)	$ (1.3)

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Litigation and Related Matters (Narrative) (Details) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended	60 Months Ended
	Sep. 30, 2010 Site	Mar. 31, 2022 USD ($) Litigation Site	Mar. 31, 2021 USD ($)	Dec. 31, 2007	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Number of active and independent litigation matters for which pursuing coverage and recoveries | Litigation		2
Settlement agreement amount of litigation agreement					$ 53.0
Environmental insurance recoveries received in excess of cumulative expenses incurred		$ 4.0			4.8
Environmental liabilities		0.5			0.7
Accrual for Environmental Loss Contingencies, Period Increase (Decrease)		0.6	$ 0.0
Accounts Payable and Accrued Expenses [Member]
Loss Contingencies [Line Items]
Environmental liabilities		$ 0.1			$ 0.2
Macon Site [Member]
Loss Contingencies [Line Items]
Number of landfills listed as Superfund site | Site		2
Number of landfills AWI entered into an Administrative Order on Consent for a Removal Action | Site	1
Submission date of final report to EPA	Oct. 11, 2016
Elizabeth City [Member]
Loss Contingencies [Line Items]
Percentage of site costs Navy agreed to pay				33.33%

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Earnings Per Share (Reconciliation of Earnings (loss) to Earnings (loss) Attributable to Common Shares Used in Basic and Diluted (Loss) Earnings Per Share Calculation) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings from continuing operations	$ 44.4	$ 37.5
(Earnings) allocated to participating vested share awards	(0.1)	(0.1)
Earnings from continuing operations attributable to common shares	$ 44.3	$ 37.4

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Earnings Per Share (Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding) (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Basic shares outstanding	47.1	47.8
Dilutive effect of common stock equivalents	0.1	0.2
Diluted shares outstanding	47.2	48.0

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Earnings Per Share (Narrative) (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Common stock equivalents not included in the computation of diluted EPS	7,676	33,643