Nature Of Operations

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature Of Operations

NOTE 3. NATURE OF OPERATIONS

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, and energy efficiency, along with other health and sustainability features and aesthetic appeal. Ceiling products are primarily 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 system 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, walls and facades primarily for use in commercial settings. Products are available in numerous materials, such as metal, wood and felt, in addition to various colors, shapes and designs. These 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 sourced from third-party producers. Architectural Specialties products are sold primarily to resale distributors and direct customers, primarily ceiling systems contractors. The majority of this segment’s revenues are project driven, which can lead to more variability in sales patterns. 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 certain 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 secured credit facility and income tax balances.

For the year ended 2023	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	932.4		$	362.8	$	-		$	1,295.2
Equity (earnings) from joint venture		(89.3	)		-		-			(89.3	)
Segment operating income (loss)		285.7			40.9		(2.9	)		323.7
Segment assets		1,091.9			421.1		159.4			1,672.4
Depreciation and amortization		75.3			13.9		-			89.2
Investment in joint venture		17.4			-		-			17.4
Purchases of property, plant and equipment		67.2			16.6		-			83.8
For the year ended 2022	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	887.4		$	345.7	$	-		$	1,233.1
Equity (earnings) from joint venture		(77.6	)		-		-			(77.6	)
Segment operating income (loss)		260.9			21.7		(3.9	)		278.7
Segment assets		1,096.9			387.5		202.8			1,687.2
Depreciation and amortization		69.5			14.2		-			83.7
Investment in joint venture		23.9			-		-			23.9
Purchases of property, plant and equipment		63.8			11.0		-			74.8
For the year ended 2021	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	818.5		$	288.1	$	-		$	1,106.6
Equity (earnings) from joint venture		(87.7	)		-		-			(87.7	)
Segment operating income (loss)		261.2			4.2		(5.4	)		260.0
Segment assets		1,133.9			366.3		209.8			1,710.0
Depreciation and amortization		69.9			26.6		-			96.5
Investment in joint venture		50.0			-		-			50.0
Purchases of property, plant and equipment		64.8			15.0		-			79.8

Segment operating income (loss) is the measure of segment profit or loss reviewed by the CODM. The sum of the segments’ operating income (loss) equals the total consolidated operating income as reported on our Consolidated Statements of Earnings and Comprehensive Income. The following reconciles our total consolidated operating income to earnings (loss) from continuing operations before income taxes. These items are only measured and managed on a consolidated basis:

	2023			2022			2021
Total consolidated operating income	$	323.7		$	278.7		$	260.0
Interest expense		35.3			27.1			22.9
Other non-operating (income), net		(9.9	)		(6.0	)		(5.6	)
Earnings from continuing operations before income taxes	$	298.3		$	257.6		$	242.7

Accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The sales in the table below are allocated to geographic areas based on the location of our selling entities.

	2023		2022		2021
Geographic Areas
Net sales
Mineral Fiber:
United States	$	854.2	$	816.3	$	754.2
Canada		78.2		71.1		64.3
Total Mineral Fiber		932.4		887.4		818.5
Architectural Specialties:
United States		349.3		322.1		268.0
Canada		13.5		23.6		20.1
Total Architectural Specialties		362.8		345.7		288.1
Total net sales	$	1,295.2	$	1,233.1	$	1,106.6

Our product-based Mineral Fiber and Architectural Specialties segment net sales represent the product-based group offerings we sell to external customers.

	2023		2022
Property, plant and equipment, net at December 31,
Mineral Fiber:
United States	$	494.9	$	496.8
Total Mineral Fiber		494.9		496.8
Architectural Specialties:
United States		66.5		52.3
Canada		5.0		5.3
Total Architectural Specialties		71.5		57.6
Total property, plant and equipment, net	$	566.4	$	554.4