Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations [Abstract]

Discontinued Operations

NOTE 4. DISCONTINUED OPERATIONS

Separation and Distribution of Armstrong Flooring Inc.

On April 1, 2016, we completed our separation of Armstrong Flooring, Inc. ("AFI") by transferring the assets and liabilities related primarily to our Resilient and Wood Flooring segments to AFI and then distributing the common stock of AFI to our shareholders at a ratio of one share of AFI common stock for every two shares of AWI common stock. During the three and nine months ended September 30, 2022, we recorded a $1.0 million tax benefit related to federal tax statute of limitation closures.

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”). We did not record a gain or loss during the three months ended September 30, 2021. During the nine months ended September 30, 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. During the three and nine months ended September 30, 2022, we recorded a $2.0 million tax benefit related to federal tax statute of limitation closures.

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.

	EMEA and Pacific Rim Businesses			AFI			Total
Three and Nine Months Ended September 30, 2022
Earnings from discontinued operations before income tax	$	-		$	-		$	-
Income tax benefit		(2.0	)		(1.0	)		(3.0	)
Net earnings from discontinued operations, net of tax	$	2.0		$	1.0		$	3.0
Net earnings from discontinued operations	$	2.0		$	1.0		$	3.0

	EMEA and Pacific Rim Businesses
Nine Months Ended September 30, 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	)