8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2017

ARMSTRONG WORLD INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	1-2116	23-0366390
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)
2500 Columbia Avenue P.O. Box 3001 Lancaster, Pennsylvania		17603
(Address of principal executive offices)		(Zip Code)

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

NA

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ◻

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Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On July 31, 2017, Armstrong World Industries, Inc. (the “Company”) issued a press release announcing its second quarter 2017 consolidated financial results. The full text of the press release is attached hereto as Exhibit 99.1.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

On July 31, 2017, the Company issued a press release announcing that it will report its second quarter 2017 consolidated financial results via a webcast and conference call on Monday, July 31, 2017 at 11:00 a.m. Eastern Time which can be accessed through the “Investors” section of the Company’s website, www.armstrongceilings.com. During this report, the Company will reference a slide presentation, a copy of which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

No. 99.1	Press Release of Armstrong World Industries, Inc. dated July 31, 2017
No. 99.2	Earnings Call Presentation Second Quarter 2017 dated July 31, 2017

3

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 hereunto duly authorized.

ARMSTRONG WORLD INDUSTRIES, INC.
By:	/s/ Mark A. Hershey
	Mark A. Hershey
	Senior Vice President, General Counsel, Secretary and Chief Compliance Officer

Date: July 31, 2017

4

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Armstrong World Industries, Inc. dated July 31, 2017
99.2	Earnings Call Presentation Second Quarter 2017 dated July 31, 2017

5

EX-99.1

Exhibit 99.1

Armstrong World Industries Reports

Second Quarter 2017 Results

Key Highlights

• Operating income from continuing operations of $78.4 million, up 51.6%versus the prior year.

• As reported global sales of $330.8 million grew 5.2% over the prior year, with all segments contributing to growth.

• Americas AUV increased 90 bps sequentially from the first quarter and grew mid-single digits versus the prior year quarter with a strong fall through rate to profit supported by like for like pricing.

• Increasing full year adjusted sales, adjusted diluted earnings per share and adjusted free cash flow guidance.

LANCASTER, Pa., July 31, 2017 -- Armstrong World Industries, Inc. (NYSE:AWI), a global leader in the design, innovation and manufacture of commercial and residential ceiling, wall and suspension system solutions, today reported financial results for the second quarter.     

Second Quarter Results from Continuing Operations

(Amounts in millions except per-share data)	For the Three Months Ended June 30,
	2017		2016		Change
Net sales	$	330.8	$	314.3		5.2	%
Operating income		78.4		51.7		51.6	%
Earnings from continuing operations		41.5		16.6	Favorable
Diluted earnings per share	$	0.77	$	0.29	Favorable

Excluding the unfavorable impact from foreign exchange of $3 million, consolidated adjusted net sales increased 6.1% compared to the prior year quarter, driven by higher volumes globally and higher average unit values (“AUV”) in which both positive mix and positive like for like pricing contributed.

As reported operating income improved over the prior year quarter, driven by a decrease in U.S. pension plan expense due to a longer amortization period for actuarial losses as a result of the separation of Armstrong Flooring, Inc. (“AFI”), the margin impact of higher volume, AUV improvement, lower separation costs and lower manufacturing and input costs. Earnings from continuing operations also benefited from lower interest expense compared to the prior year quarter.      

“We delivered a solid quarter with constant currency sales growth of over 6% and grew adjusted EBITDA by almost 14% expanding margins by 190 bps,” said Vic Grizzle, CEO. “I’m pleased with the execution around our growth initiatives and productivity in our plants, which combined with prudent cost management, enabled margin expansion over a strong prior yearquarter.”

Additional (non-GAAP*) Financial Metrics from Continuing Operations

(Amounts in millions except per-share data)	For the Three Months Ended June 30,
	2017		2016		Change
Adjusted net sales	$	330	$	310		6.1	%
Adjusted operating income	$	73	$	61		18.9	%
Adjusted net income	$	39	$	31		25.7	%
Adjusted diluted earnings per share	$	0.73	$	0.56		31.1	%
Adjusted free cash flow	$	28	$	24		19.2	%

(Amounts in millions)	For the Three Months Ended June 30,
	2017		2016			Change
Adjusted EBITDA
Americas	$	88	$	80			9.4	%
EMEA		2		(1	)	Favorable
Pacific Rim		2		3			(20.5	)%
Unallocated Corporate		-		(1	)		100.0	%
Consolidated Adjusted EBITDA	$	92	$	81			13.8	%

* The Company uses the above non-GAAP adjusted measures, as well as other non-GAAP measures mentioned below, in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. Adjusted operating income, adjusted EBITDA, adjusted net income, and adjusted EPS exclude the impact of foreign exchange, restructuring charges and related costs, impairments, U.S. pension plan expense (credit), AFI separation costs and certain other gains and losses. The Company excludes U.S. pension (credit) expense in the non-GAAP results as it represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income and for all periods presented, the Company was not required and did not make cash contributions to the U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor does the Company expect to make cash contributions to the plan in 2017. Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures. The Company believes adjusted free cash flow is useful because it provides insight into the amount of cash that the Company has available for discretionary uses, after expenditures for capital commitments and adjustments for acquisitions and divestitures. Adjusted figures are reported in comparable dollars using the budgeted exchange rate for 2017, and are reconciled to the most comparable GAAP measures in tables at the end of this release.    

Adjusted operating income improved 19% and adjusted EBITDA improved 14% in the second quarter, when compared to the prior year quarter. Higher volumes globally, improvements in AUV and lower manufacturing and input costs more than offset higher SG&A expenses. Adjusted earnings per share reflects a 39% adjusted tax rate in both the current and prior year periods. Adjusted free cash flow improved primarily as a result of higher cash earnings.

Second Quarter Segment Highlights

Effective April 1, 2016, the former Building Products operating segment was disaggregated into the following three distinct geographical segments: Americas; Europe (including Russia), Middle East and Africa (“EMEA”); and Pacific Rim. The Unallocated Corporate segment historically included assets, liabilities, income and expenses that had not been allocated to the geographical segments, including AFI separation costs.

Americas
(Amounts in millions)	For the Three Months Ended June 30,
	2017		2016		Change
Total segment net sales (as reported)	$	225.6	$	214.8		5.0	%
Operating income (as reported)	$	79.9	$	64.3		24.3	%
Adjusted net sales	$	226	$	215		5.4	%
Adjusted EBITDA	$	88	$	80		9.4	%

Excluding the unfavorable impact of foreign exchange of approximately $1 million, adjusted net sales in the Americas increased 5.4%, driven by mid-single digit AUV expansion with contributions from both positive mix and positive like for like pricing,along with higher volumes versus a strong mid-single digit volume quarter in the prior year.Positive volume growth was driven by the U.S. Commercial channel, which was partially offset by declines in Canada, Latin America and the Big Box channel. On an as reported basis,operating income increased driven by strong AUV fall through to profit, a decrease in U.S. pension plan expense as a result of the separation of AFI, the margin impact of higher volume and lower manufacturing and input costs. Equity earnings from our WAVE joint venture were down slightly versus an all-time record earnings quarter in the prior year quarter. Adjusted EBITDA margins expanded 140 bps primarily driven by strong AUV fall-through to profitaided by the margin impact of higher volumes and productivity.

EMEA
(Amounts in millions)	For the Three Months Ended June 30,
	2017			2016			Change
Total segment net sales (as reported)	$	68.7		$	65.6			4.7	%
Operating (loss) (as reported)	$	(1.8	)	$	(5.3	)		66.0	%
Adjusted net sales	$	68		$	63			7.7	%
Adjusted EBITDA	$	2		$	(1	)	Favorable

Excluding the unfavorable impact of foreign exchange of approximately $2 million, adjusted net sales in EMEA for the second quarter increased 7.7%, driven by sales growth in predominantly the Middle East and Russia along withAUV improvement. On an as reported basis, operating loss decreased driven by the margin impact of higher volume, lower manufacturing and input costs and favorable AUV which offset higher SG&A expenses.

Pacific Rim
(Amounts in millions)	For the Three Months Ended June 30,
	2017		2016			Change
Total segment net sales (as reported)	$	36.5	$	33.9			7.7	%
Operating income (loss) (as reported)	$	0.3	$	(2.1	)	Favorable
Adjusted net sales	$	35	$	33			8.0	%
Adjusted EBITDA	$	2	$	3			(20.5	)%

Adjusted net sales in the Pacific Rim for the second quarter increased 8.0%, excluding the impact of foreign exchange, driven by volume gains. On an as reported basis, operating income increased as the margin impact of higher volumes was partially offset by supply side sourcing changes.  

Unallocated Corporate

As a result of the AFI separation on April 1, 2016, the majority of corporate support functions were incorporated into the Americas segment, resulting in the discontinuation of the Unallocated Corporate reportable segment from a P&L perspective in 2017.  

On an as reported basis, Unallocated Corporate had zero expenses in the second quarter, representing a decrease of $5.2 million from the prior year quarter.

Year to Date Results from Continuing Operations

Year to Date
(Amounts in millions)	For the Six Months Ended June 30,
	2017		2016		Change
Net sales (as reported)	$	646.2	$	601.7		7.4	%
Operating income (as reported)	$	141.4	$	73.3		92.9	%
Adjusted net sales	$	647	$	598		8.2	%
Adjusted EBITDA	$	167	$	152		10.3	%

Excluding the unfavorable impact from foreign exchange of $5 million, consolidated adjusted net sales increased 8.2% compared to the prior year period, driven by higher volumes globally and higher AUVs in which both positive mix and positive like for like pricing contributed.

As reported operating income improved over the prior year period, driven by lower separation costs, a decrease in U.S. pension plan expense due to a longer amortization period for actuarial losses as a result of the separation of AFI, the margin impact of higher volume and AUV improvement which partially offset higher input costs and SG&A expenses.

Market Outlook and 2017 Guidance ⁽¹⁾

“Given our healthy sales growth in the first half of the year and our expectations for improving performance in our international markets for the balance of the year, we now expect constant currency sales to be in the range of $1.31 to $1.34 billion for 2017, representing 6% to 9% growth over the prior year,” said Brian MacNeal, CFO.

Adjusted earnings per share is now expected to be between $2.65 to $2.75 per diluted share, reflecting the benefit of share repurchase activity in the first half of the year. Adjusted free cash flow is expected to improve slightly and is now anticipated to be between $140 million and $155 million, with the midpoint of the range representing 26% growth over the prior year.

⁽¹⁾ Guidance metrics are presented using 2017 budgeted foreign exchange rates.  Adjusted EPS guidance for 2017 is calculated based on an adjusted effective tax rate of 39%.

Earnings Webcast

Management will host a live Internet broadcast beginning at 11:00 a.m. Eastern time today, to discuss second quarter results. This event will be broadcast live on the Company's website. To access the call and accompanying slide presentation, go to www.armstrongceilings.com and click Investors. The replay of this event will also be available on the Company's website for up to one year after the date of the call.

Uncertainties Affecting Forward-Looking Statements

Disclosures in this release, including without limitation, those relating to future financial results, market conditions and guidance, and in our other public documents and comments, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,” “could,” “should,” “seek,” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance.Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in the “Risk Factors” and “Management’s Discussion and Analysis” section of our report on Forms 10-K and 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law.

About Armstrong and Additional Information

More details on the Company’s performance can be found in its quarterly report on Form 10-Q for the quarter ended June 30, 2017 that the Company expects to file with the SEC today.

Armstrong World Industries, Inc. (AWI) is a global leader in the design, innovation and manufacture of commercial and residential ceiling, wall and suspension system solutions. With over 3,900 employees and fiscal 2016 revenues from continuing operations in excess of $1.2 billion,AWI has a global manufacturing network of 26 facilities, including 9 plants dedicated to its WAVE joint venture. On April 1, 2016, AWI completed the separation of its legacy flooring business that now operates as Armstrong Flooring, Inc., an independent, publicly-traded company. For more information, visit www.armstrongceilings.com.

Additional forward looking non-GAAP metrics are available on the Company’s website at www.armstrongceilings.com under the Investors tab. The website is not part of this release and references to our website address in this release are intended to be inactive textual references only.

As Reported Financial Highlights

FINANCIAL HIGHLIGHTS

Armstrong World Industries, Inc. and Subsidiaries

(amounts in millions, except for per-share amounts, quarterly data is unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Net sales	$	330.8		$	314.3		$	646.2		$	601.7
Cost of goods sold		219.7			222.8			435.8			425.9
Selling, general and administrative expenses		52.4			55.8			107.0			109.5
Separation costs		-			3.9			-			31.0
Equity earnings from joint venture		(19.7	)		(19.9	)		(38.0	)		(38.0	)
Operating income		78.4			51.7			141.4			73.3
Interest expense		9.2			12.5			18.4			34.4
Other non-operating expense		0.1			-			1.9			-
Other non-operating (income)		(1.0	)		(2.1	)		(4.4	)		(7.3	)
Earnings from continuing operations before income taxes		70.1			41.3			125.5			46.2
Income tax expense		28.6			24.7			53.2			36.7
Earnings from continuing operations	$	41.5		$	16.6		$	72.3		$	9.5
Net (loss) from discontinued operations, net of tax expense    of $ -, $-, $- and $ 0.1		-			-			-			(4.5	)
(Loss) gain from disposal of discontinued business, net of tax    expense (benefit) of $0.2, ($0.1), $0.5 and ($1.9)		(0.2	)		0.3			(0.6	)		2.0
Net (loss) gain from discontinued operations		(0.2	)		0.3			(0.6	)		(2.5	)
Net earnings	$	41.3		$	16.9		$	71.7		$	7.0
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		2.8			(13.2	)		13.9			(11.8	)
Derivative (loss)		(1.8	)		(2.1	)		(1.7	)		(0.5	)
Pension and postretirement adjustments		2.0			9.2			4.5			17.0
Total other comprehensive income (loss)		3.0			(6.1	)		16.7			4.7
Total comprehensive income	$	44.3		$	10.8		$	88.4		$	11.7
Earnings per share of common stock, continuing operations:
Basic	$	0.78		$	0.30		$	1.34		$	0.17
Diluted	$	0.77		$	0.29		$	1.33		$	0.17
Earnings (loss) per share of common stock, discontinued operations:
Basic	$	—		$	0.01		$	(0.01	)	$	(0.04	)
Diluted	$	—		$	0.01		$	(0.01	)	$	(0.04	)
Net earnings per share of common stock:
Basic	$	0.77		$	0.30		$	1.33		$	0.13
Diluted	$	0.77		$	0.30		$	1.32		$	0.13
Average number of common shares outstanding:
Basic		53.3			55.6			53.7			55.6
Diluted		53.7			56.0			54.1			55.9

SEGMENT RESULTS

Armstrong World Industries, Inc. and Subsidiaries

(amounts in millions)

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Net Sales
Americas	$	225.6		$	214.8		$	445.4		$	414.9
EMEA		68.7			65.6			135.3			125.2
Pacific Rim		36.5			33.9			65.5			61.6
Total net sales	$	330.8		$	314.3		$	646.2		$	601.7
Operating Income (Loss)
Americas	$	79.9		$	64.3		$	147.1		$	120.4
EMEA		(1.8	)		(5.3	)		(4.9	)		(9.3	)
Pacific Rim		0.3			(2.1	)		(0.8	)		(3.4	)
Unallocated Corporate (expense)		-			(5.2	)		-			(34.4	)
Total operating income	$	78.4		$	51.7		$	141.4		$	73.3

Selected Balance Sheet Information

(amounts in millions)

(Unaudited)

	June 30, 2017		December 31, 2016
Assets
Current assets	$	362.0	$	406.2
Property, plant and equipment, net		696.0		669.6
Other noncurrent assets		726.3		682.2
Total assets	$	1,784.3	$	1,758.0
Liabilities and shareholders’ equity
Current liabilities	$	215.9	$	224.1
Noncurrent liabilities		1,271.1		1,267.5
Equity		297.3		266.4
Total liabilities and shareholders’ equity	$	1,784.3	$	1,758.0

Selected Cash Flow Information

(amounts in millions)

(Unaudited)

	Six Months Ended June 30,
	2017			2016
Net earnings	$	71.7		$	7.0
Other adjustments to reconcile net earnings to net cash provided by operating activities		29.3			69.9
Changes in operating assets and liabilities, net		(58.6	)		(132.3	)
Net cash provided by (used for) operating activities		42.4			(55.4	)
Net cash (used for) investing activities		(40.7	)		(3.9	)
Net cash (used for) financing activities		(64.6	)		(82.9	)
Effect of exchange rate changes on cash and cash equivalents		0.7			(3.2	)
Net (decrease) in cash and cash equivalents		(62.2	)		(145.4	)
Cash and cash equivalents at beginning of year		141.9			244.8
Cash and cash equivalents at end of period	$	79.7		$	99.4

Supplemental Reconciliations of GAAP to non-GAAP Results (unaudited)

(Amounts in millions, except per share data)

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company provides additional measures of performance adjusted to exclude the impact of foreign exchange, restructuring charges and related costs, impairments, U.S. pension plan expense (credit), separation costs and certain other gains and losses.The Company excludes U.S. pension (credit) expense in the non-GAAP results as it represents the actuarial net periodic benefit cost recorded as a component of operating income and for all periods presented, the Company was not required and did not make cash contributions to the U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor does the Company expect to make cash contributions to the plan in 2017. Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures. The Company believes adjusted free cash flow is useful because it provides insight into the amount of cash that the Company has available for discretionary uses, after expenditures for capital commitments and adjustments for acquisitions and divestitures. Adjusted figures are reported in comparable dollars using the budgeted exchange rate for 2017. The Company uses these adjusted performance measures in managing the business, including communications with its Board of Directors and employees, and believes that they provide users of this financial information with meaningful comparisons of operating performance between current results and results in prior periods. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance, as well as prospects for its future performance. A reconciliation of these adjustments to the most directly comparable GAAP measures is included in this release and on the Company’s website. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Non-GAAP financial measures utilized by the Company may not be comparable to non-GAAP financial measures used by other companies.

Consolidated Net Sales

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017		2016
Reported net sales	$	331		$	314		$	646	$	602
Add: Foreign exchange impact		(1	)		(4	)		1		(4	)
Adjusted net sales	$	330		$	310		$	647	$	598

Consolidated Results from Continuing Operations

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Earnings from continuing operations, Reported	$	42		$	17		$	72		$	10
Less: Tax expense		(28	)		(24	)		(54	)		(36	)
Earnings before tax, Reported	$	70		$	41		$	126		$	46
Less: Interest/other expense(1)		(8	)		(11	)		(15	)		(27	)
Operating Income, Reported	$	78		$	52		$	141		$	73
Add: U.S. pension (credit) expense(2)		(6	)		3			(12	)		6
Add: Separation expenses		-			4			-			31
Add: China plant cost reduction initiatives		-			3			(1	)		3
Add: Foreign exchange impact		1			(1	)		1			-
Operating Income, Adjusted	$	73		$	61		$	129		$	113
Less: D&A		(19	)		(20	)		(38	)		(39	)
Adjusted EBITDA(3)	$	92		$	81		$	167		$	152

(1) Reported results include $10.7 million of interest expense recorded in the first quarter of 2016 related to the settlement of interest rate swaps incurred in connection with the Company’s refinancing of its credit facility.

(2) U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017.

(3) Includes $1 million and $3 million of Unallocated Corporate expense related to the separation of AFI in the second quarter and first half of 2016, respectively.

Americas

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Operating Income, Reported	$	80		$	64		$	147		$	120
Add: U.S. pension (credit) expense(1)		(6	)		3			(12	)		6
Add: Foreign exchange impact		1			-			1			1
Operating Income, Adjusted	$	75		$	67		$	136		$	127
Less: D&A		(13	)		(13	)		(26	)		(26	)
Adjusted EBITDA	$	88		$	80		$	162		$	153

(1) U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017.

EMEA

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Operating (Loss), Reported	$	(2	)	$	(5	)	$	(5	)	$	(9	)
Add: Foreign exchange impact		-			-			-			(1	)
Operating (Loss), Adjusted	$	(2	)	$	(5	)	$	(5	)	$	(10	)
Less: D&A		(4	)		(4	)		(8	)		(9	)
Adjusted EBITDA	$	2		$	(1	)	$	3		$	(1	)

Pacific Rim

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Operating Income (Loss), Reported	$	0		$	(2	)	$	(1	)	$	(3	)
Add: China plant cost reduction initiatives		-			3			(1	)		3
Add: Foreign exchange impact		-			(1	)		-			(1	)
Operating Income (Loss), Adjusted	$	0		$	0		$	(2	)	$	(1	)
Less: D&A		(2	)		(3	)		(4	)		(4	)
Adjusted EBITDA	$	2		$	3		$	2		$	3

Unallocated Corporate

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2017		2016			2017		2016
Operating (Loss), Reported	$	-	$	(5	)	$	-	$	(34	)
Add: Separation expenses		-		4			-		31
Operating (Loss), Adjusted	$	-	$	(1	)	$	-	$	(3	)
Less: D&A		-		-			-		-
Adjusted EBITDA	$	-	$	(1	)	$	-	$	(3	)

Adjusted Free Cash Flow

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Net cash provided by (used for) operations	$	32		$	10		$	42		$	(55	)
Less: net cash (used for) provided by investing		(3	)		6			(41	)		(4	)
Adjustments to reconcile free cash flow:
Add: Acquisitions		-			-			31			-
Add: Separation payments		-			32			-			47
Add: Cash flows attributable to AFI		-			(37	)		-			16
Add: Interest rate swap settlement		-			11			-			11
Add: Other		(1	)		2			1			2
Adjusted Free Cash Flow	$	28		$	24		$	33		$	17

Consolidated Results From Continuing Operations – Adjusted Diluted Earnings Per Share

	For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2017					2016					2017					2016
	Total			Per Diluted Share(3)		Total			Per Diluted Share(3)		Total			Per Diluted Share(3)		Total			Per Diluted Share(3)
Earnings from continuing operations, As Reported	$	42		$	0.77	$	17		$	0.29	$	72		$	1.33	$	10		$	0.17
Add: Income taxes, as reported		28					24					54					36
Earnings from continuing operations before income taxes, As Reported	$	70				$	41				$	126				$	46
Add: U.S. pension (credit) expense(1)		(6	)				3					(12	)				6
Add: Separation costs		-					4					-					31
Add: China plant cost reduction initiatives		-					3					(1	)				3
Add: Settlement of interest rate swap(2)		-					-					-					11
Adjusted earnings from continuing operations before income  taxes	$	64				$	51				$	113				$	97
Add: Adjusted tax (expense) @ 39% for 2017 and 2016		(25	)				(20	)				(44	)				(38	)
Adjusted net income	$	39		$	0.73	$	31		$	0.56	$	69		$	1.28	$	59		$	1.05

(1) U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017.

(2) Adjusted results exclude $10.7 million of interest expense recorded in the first quarter of 2016 related to the settlement of interest rate swaps incurred in connection with the Company’s refinancing of its credit facility. Cash payments for the settlement of this swap occurred in the second quarter of 2016.

(3) Based on ~54 million diluted shares outstanding for the three and six month periods ended June 30, 2017 and ~56 million diluted shares outstanding for the three and six month periods ended June 30, 2016.   

Updated Adjusted Net Sales Guidance

	For the Year Ending December 31, 2017
	Low			High
Reported net sales	$	1,292	to	$	1,327
Add: Foreign exchange impact		13			13
Adjusted net sales	$	1,305	to	$	1,340

Adjusted EBITDA Guidance

	For the Year Ending December 31, 2017
	Low				High
Net income	$	151		to	$	157
Add: Interest expense		35				35
Less: Other non-operating (income)		(3	)			(3	)
Add: Income tax expense		112				116
Operating income	$	295		to	$	305
Less: U.S. pension (credit)(1)		(25	)			(25	)
Add: D&A		80				80
Adjusted EBITDA	$	350		to	$	360

(1) U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017.

Updated Adjusted Diluted Earnings Per Share (EPS) Guidance

	For the Year Ending December 31, 2017
	Low			Per Diluted Share(1)			High			Per Diluted Share(1)
Net income	$	151		$	2.80	to	$	157		$	2.91
Add: Interest expense		35						35
Less: Other non-operating (income)		(3	)					(3	)
Add: Income tax expense		112						116
Operating income	$	295				to	$	305
Less: U.S. pension (credit)(2)		(25	)					(25	)
Less: Interest expense		(35	)					(35	)
Adjusted earnings before income taxes	$	235				to	$	245
Less: Income tax expense		(92	)					(96	)
Adjusted net income	$	143		$	2.65	to	$	149		$	2.76

(1) Adjusted EPS guidance for 2017 is calculated based on an adjusted effective tax rate of 39% and based on ~54 million of diluted shares outstanding.

(2) U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017.

Updated Adjusted Free Cash Flow Guidance

	For the Year Ending December 31, 2017
	Low				High
Net cash provided by operating activities	$	165		to	$	180
Add: Return of investment from joint venture		70				70
Adjusted net cash provided by operating activities	$	235		to	$	250
Less: Capital expenditures		(95	)			(95	)
Adjusted Free Cash Flow	$	140		to	$	155

Source: Armstrong World Industries

EX-99.2

Earnings Call Presentation 2nd Quarter 2017 July 31, 2017 Exhibit 99.2

Our disclosures in this presentation, including without limitation, those relating to future financial results market conditions and guidance, and in our other public documents and comments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Those statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,” “could,” “should,” “seek,” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that may affect our ability to achieve the projected performance is included in the “Risk Factors” and “Management’s Discussion and Analysis” sections of our reports on Forms 10-K and 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law. In addition, we will be referring to non-GAAP financial measures within the meaning of SEC Regulation G. A reconciliation of the differences between these measures with the most directly comparable financial measures calculated in accordance with GAAP are included within this presentation and available on the Investor Relations page of our website at www.armstrongceilings.com. The guidance in this presentation is only effective as of the date given, July 31, 2017, and will not be updated or affirmed unless and until we publicly announce updated or affirmed guidance. Safe Harbor Statement

All figures throughout the presentation are in $ millions unless otherwise noted. Figures may not add due to rounding. When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures below in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. As reported results will be footnoted throughout the presentation. Basis of Presentation Explanation We report in comparable dollars to remove the effects of currency translation on the P&L. The budgeted exchange rate for 2017 is used for all currency translations in 2017 and prior years. Guidance is presented using the 2017 budgeted exchange rate for the year. We remove the impact of discrete expenses and income. Examples include plant closures, restructuring actions, separation costs and other large unusual items. We also adjust for our U.S. pension plan (credit) expense(1). Taxes for adjusted net income and adjusted diluted EPS are calculated using a constant 39% for 2017 guidance, and 2017 and 2016 results, which are based on the expected long term tax rate. Results throughout this presentation are presented on a continuing operations basis. U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. What Items Are Adjusted Comparable Dollars Other Adjustments Net Sales Yes No Gross Profit Yes Yes SG&A Expense Yes Yes Equity Earnings Yes Yes Operating Income Yes Yes Net Income Yes Yes Cash Flow No Yes Return on Capital Yes Yes EBITDA Yes Yes

Consolidated Company Key Metrics - Second Quarter 2017 As reported Net Sales: $331 million in 2017 and $314 million in 2016 As reported Operating Income: $78 million in 2017 and $52 million in 2016 As reported EPS: $0.77 in 2017 and $0.29 in 2016 Excludes $1 million of Unallocated Corporate expenses related to the separation of Armstrong Flooring, Inc. (“AFI”) in the second quarter of 2016. 2017 2016 Variance Adj. Net Sales (1) $329.54939474456035 $310.48455249056917 6.1% Adj. Operating Income (2) $72.665809347377504 $61.129183481355895 0.18872533884801887 % of Sales 0.22050050919893838 0.19688317177458503 240 Adj. EBITDA 92.172286233037511 64 81.012817061035904 0.13774942752075819 % of Sales 0.27969186927040757 0.2609238250701591 190 Adj. Earnings Per Share (3) $0.73043098141341289 $0.55771428571428572 0.31068669823101697 Adj. Free Cash Flow 28 24 0.192 Net Debt 800.69999999999993 774.4 27

Adjusted EBITDA Bridge – Second Quarter 2017 vs. PY $5 $5 ($2) ($1) $5 ($1)

Adjusted Free Cash Flow Bridge – Second Quarter 2017 vs. PY(1) $44 Excludes payments made for the acquisition of Tectum in the first quarter of 2017. ($15) ($2)

Excluding the unfavorable impact of foreign exchange of $1 million, constant currency sales increased 5.4% due to strong average unit value (“AUV”) achievement from both solid mix performance and positive “like for like” pricing. Volumes modestly improved driven by the U.S. Commercial channel which was partially offset by declines in Canada, Latin America and the Big Box channel. Americas Second Quarter Results AUV accelerated 90 bps sequentially over the first quarter driving 140 bps of adjusted EBITDA margin expansion Key Highlights Dollar amounts on the page are shown in millions 2016 Q2 Adjusted EBITDA $80.407799643032902 AUV 6 Driven by positive "like for like" pricing and favorable mix as we sell a richer mix of products Volume 1 Positive volume in the U.S. Commercial channel partially offset by declines in Canada, Latin America and the Big Box channel Manufacturing & Input Costs 1 Productivity offsetting inflation WAVE -1 Equity earnings down slightly versus an all-time record quarter in the prior year D&A/Other 1 2017 Q2 Adjusted EBITDA $87.938120279260119

Excluding the unfavorable impact of foreign exchange of $2 million, constant currency sales increased 7.7%, driven by strong sales in the Middle East and Russia along with AUV improvement. EMEA Second Quarter Results Adjusted EBITDA margins improved 450 bps driven by higher volumes, good productivity and improved AUV achievement Key Highlights Dollar amounts on the page are shown in millions 2016 Q2 Adjusted EBITDA $-0.69728923185298686 Volume 2 Driven by higher sales in the Middle East and Russia AUV 1 Like for like pricing was positive Manufacturing & Input Costs 2 Productivity and favorable inventory valuations SG&A -2 Selling and marketing investments to drive topline growth 2017 Q2 Adjusted EBITDA $2.3182615031000235

Excluding the impact of foreign exchange, constant currency sales increased 8.0% driven by China and India partially offset by Australia. Pacific Rim Second Quarter Results Strength in India and China drove 8% sales growth Key Highlights Dollar amounts on the page are shown in millions 2016 Q2 Adjusted EBITDA $2.5917366182447941 AUV -1 Lower mix Volume 2 Sales growth driven by India and China Manufacturing & Input Costs -1 Sourcing strategy changes D&A/Other -1 2017 Q2 Adjusted EBITDA $1.9421702713349986 0.15 adjustment

Consolidated Company Key Metrics – 1st Half 2017 As reported Net Sales: $646 million in 2017 and $602 million in 2016 As reported Operating Income: $141 million in 2017 and $73 million in 2016 As reported EPS: $1.33 in 2017 and $0.17 in 2016 Excludes $3 million of Unallocated Corporate expenses related to the separation of Armstrong Flooring, Inc. (“AFI”) in the first half of 2016. 2017 2016 Variance Adj. Net Sales (1) $646.97880981789058 $597.94220750577927 8.2% Adj. Operating Income (2) 129.08078511586902 113.153567560135 0.14000000000000001 % of Sales 0.19951315739722952 0.189 110 Adj. EBITDA 167.4 151.69999999999999 0.10299999999999999 % of Sales 0.25900000000000001 0.25370344841986048 50 adjustment 10 Adj. Earnings Per Share (3) $1.2763982199981565 $1.05 0.219 Adj. Free Cash Flow 33 17 0.94117647058823528

Adjusted EBITDA Bridge – 1st Half 2017 vs. PY $17 $10 ($6) ($6) $1 ($1)

Adjusted Free Cash Flow Bridge – 1st Half 2017 vs. PY(1) $58 Excludes payments made for the acquisition of Tectum in the first quarter of 2017. ($14) $3 ($6)

2017 Guidance $2.65 – $2.75 14% – 19% YoY Growth $2.32 Adjusted EBITDA(2) Adjusted EPS(3) Adjusted Free Cash Flow(4) Adjusted Revenue(1) $1,230 $317 $1,305 – $1,340 6% – 9% YoY Growth $350 – $360 10% – 14% YoY Growth $140 – $155 20% – 32% YoY Growth $117 Note: Dollars in millions except per share values As-reported revenue of $1,235 million in 2016. 2017 As-reported sales expected to have (1%) FX headwind. 2016 base excludes $4M of pre-separation corporate expenses and pension expense; 2017 excludes pension credit. 2016 base excludes $4M of pre-separation corporate expenses and pension expense; 2017 excludes pension credit. As reported expected earnings per share in 2017 of $2.80- $2.90. No FX adjustment. 2016 excludes separation costs and other extraordinary expenses. Cash flow from operations includes dividends received from the WAVE JV. 3% – 7% Americas volume growth 1% – 5% International volume growth 2% – 4% average unit value increase 3% – 4% earnings contribution from AUV and cost savings over inflation Increased sales and marketing investments as a result of the Tectum acquisition and expansion of total solutions selling capabilities SG&A as a % of sales remains flat $35 million of interest expense Normalized 39% effective tax rate ~54 million average diluted shares outstanding $245 million cash flow from operations $95 million of total capital expenditures Excludes cash paid for Tectum Cash tax rate 30% – 35% 2016 Constant Currency Results 2017 Constant Currency Guidance

Appendix

Adjusted Net Sales & Adjusted EBITDA Reconciliation Reported results include $10.7 million of interest expense recorded in the first quarter of 2016 related to the settlement of interest rate swaps incurred in connection with the Company’s refinancing of its credit facility. U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. Includes $1 million and $3 million of Unallocated Corporate expense related to the separation of AFI in the second quarter and first half of 2016, respectively. Adjusted Net Sales Adjusted EBITDA CONSOLIDATED For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 V 2017 2016 V Reported Net Sales $330.8 $314.3 $16.5 $646.20000000000005 $601.70000000000005 $44 Add: Foreign Exchange Impact $-1 $-4 $3 $1 $-4 $5 Adjusted Net Sales $329.54939474456035 $310.48455249056917 $20 $646.97880981789058 $597.94220750577927 $49.036602312111313 CONSOLIDATED For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 V 2017 2016 V Earnings from continuing operations, Reported $41.500000000000021 $16.600000000000005 $24.900000000000016 $72.300000000000026 $9.5000000000000639 $62 Less: Tax expense $-28 $-24 $-4 $-54 $-36 $-18 Earnings before tax, Reported $70.100000000000023 $41.300000000000004 $28.800000000000018 $125.50000000000003 $46.200000000000067 $80 Less: Interest/other expense(1) $-8 $-11 $3 $-15 $-27 $12 Operating Income, Reported $78.40000000000002 $51.7 $26 $141.40000000000003 $73.300000000000068 $68.099999999999966 Add: U.S. pension (credit) expense(2) $-6 $3 $-9 $-12 $6 $-18 Add: Separation expenses $0 $4 $-4 $0 $31 $-31 Add: China plant cost reduction initiatives $0 $3 $-3 $-1 $3 $-4 Add: Foreign exchange impact $1 $-1 $2 $1 $0 $1 Operating Income, Adjusted $72.665809347377504 $61.129183481355895 $11.536625866021609 $129.08078511586902 $113.153567560135 $15.927217555734018 Less: Depreciation and Amortization $-19 $-19.883633579680009 $0.88363357968000855 $-38 $-39 $1 Adjusted EBITDA(3) $92.172286233037511 $81.012817061035904 $11.159469172001607 $167.4 $151.69999999999999 $15

Adjusted Diluted Earnings Per Share Reconciliation U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. Adjusted results exclude $10.7 million of interest expense recorded in the first quarter of 2016 related to the settlement of interest rate swaps incurred in connection with the Company’s refinancing of its credit facility. Based on ~54 million diluted shares outstanding for the three and six month periods ended June 30, 2017 and ~56 million diluted shares outstanding for the three and six month periods ended June 30, 2016. CONSOLIDATED For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 Per DilutedShare(3) 2016 Per DilutedShare(3) V 2017 Per DilutedShare(3) 2016 Per DilutedShare(3) V Earnings from continuing operations, As Reported $41.500000000000021 $0.77 $16.600000000000005 $0.28999999999999998 $24.900000000000016 $72.300000000000026 $1.33 $9.5000000000000639 $0.17 $62 Add: Income taxes, as reported $28 $24 $4 $54 $36 $18 Earnings from continuing operations before income taxes, As Reported $70.100000000000023 $41.300000000000004 $28.800000000000018 $125.50000000000003 $46.200000000000067 $80 Add: U.S. pension (credit) expense(1) $-6 $3 $-9 $-12 $6 $-18 Add: Separation costs $0 $4 $-4 $0 $31 $-31 Add: China plant cost reduction initiatives $0 $3 $-3 $-1 $3 $-4 Add: Settlement of interest rate swap(2) $0 $0 $0 $0 $11 $-11 Adjusted earnings from continuing operations before income taxes $64.465809347377501 $51.2 $13.265809347377498 $113.26580934737751 $96.6 $16.665809347377518 Add: Adjusted tax (expense) @ 39% for 2017 and 2016 $-25 $-20 $-5 $-44 $-38 $-6 Adjusted net income $39.224143701900275 $0.73043098141341289 $31.231999999999999 $0.55771428571428572 $7.9921437019002752 $69.053143701900268 $1.2763982199981565 $58.9 $1.05 $10.153143701900269

Adjusted Free Cash Flow Reconciliation Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures. The Company believes adjusted free cash flow is useful because it provides insight into the amount of cash that the Company has available for discretionary uses, after expenditures for capital commitments and adjustments for acquisitions and divestitures. Q2 2017 Q2 2016 1st Half 2017 1st Half 2016 As Reported Net cash provided by (used for) operating activities $32 $10 $42.400000000000006 $-55.400000000000013 As Reported Net cash (used for) provided by investing activities $-3 $6 $-40.699999999999996 $-3.8999999999999959 Subtotal $29 $16 $1 $-59.300000000000011 Add: Acquisitions - - $31 - Add: Separation payments - $32 - $47 Add: Cash flows attributable to AFI - $-37 - $16 Add: Settlement of interest rate swap - $11 - $11 Add: Other $-1 $2 $1 $2 Adjusted Free Cash Flow (1) $28 $24 $33 $16.699999999999989

Segment Reported Net Income to Adjusted EBITDA Q2 2017 vs. PY 1H 2017 vs. PY U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. AMERICAS EMEA PACIFIC RIM CORPORATE rounding factor 2016 V 2017 2016 V 2017 2016 V 2017 2016 V 2017 2016 V Operating Income (Loss) – As Reported $79.900000000000006 $64.3 $15.600000000000009 $-1.8 $-5.3 $3 $0.3 $-2.1 $2.4 $0 $-5.2 $5.2 Add: U.S. Pension (Credit) Expense(1) $-6 $3 $-9 - - - - - - - - - Add: Separation Expenses - - - - - - - - - $0 $4 $-4 Add: China Plant Cost Reduction Initiatives - - - - - - $0 $3 $-3 - - - Add: Foreign Exchange Movements $1 $0 $1 - - - $0 $-1 $1 - - - Operating Income (Loss) – Adjusted $74.510588926060109 $67.195206803032903 $8 $-1.7259206728599783 $-5.3648178340929897 $3 $0.10740691483499762 $0.43822448080479248 $-0.33081756596979484 $0 $-1.1341653261600035 $1.1341653261600035 0.2 Less: Depreciation and Amortization $-13 $-13.212592839999999 $0.21259283999999923 $-4.0441821759600014 $-4 $-4.4182175960001402E-2 $-1.834763356500001 $-3 $1.165236643499999 $0 $0 $0 EBITDA – Adjusted $87.938120279260119 $80.407799643032902 $8 $2.3182615031000235 $-0.69728923185298686 $3 $1.9421702713349986 $2.6417366182447943 $-0.69956634690979569 $0 $-1.1341653261600035 $1.1341653261600035 AMERICAS EMEA PACIFIC RIM CORPORATE 2016 V 2017 2016 V 2017 2016 V 2017 2016 V 2017 2016 V Operating Income (Loss) – As Reported $147.1 $120.4 $26.699999999999989 $-4.9000000000000004 $-9.3000000000000007 $4.4000000000000004 $-0.8 $-3.4 $2 $0 $-34.4 $34.4 Add: U.S. Pension (Credit) Expense(1) $-12 $6 $-18 - - - - - - - - - Add: Separation Expenses - - - - - - - - - $0 $31 $-31 Add: China Plant Cost Reduction Initiatives - - - - - - $-1 $3 $-4 - - - Add: Foreign Exchange Movements $1 $1 $0 $0 $-1 $1 $0 $-1 $1 - - - Operating Income (Loss) – Adjusted $136 $126.80482305943301 $9.195176940566995 $-4.7831476303599754 $-9.6999999999999993 $4.9168523696400239 $-1.5549112616746774 $-0.8 $-0.75491126167467737 $0 $-3.3132123580000203 $3.3132123580000203 Less: Depreciation and Amortization $-26 $-26.124177010000409 $0.12417701000040893 $-7.882976795940003 $-9 $1 $-3.6814550105900015 $-4 $0.31854498940999854 $0 $0 $0 EBITDA – Adjusted $162.18419280742 $152.92900006943341 $9.2551927379865901 $3.0998291655800276 $-1.1997349889868629 $4.299564154566891 $2.1265437489153243 $3.2664533864559933 $-1.139909637540669 $0 $-3.3132123580000203 $3.3132123580000203

Adjusted Net Sales & EBITDA – Guidance Reconciliation U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. Adjusted Net Sales Adjusted EBITDA CONSOLIDATED Low to High Reported Net Sales $1,292 to $1,327 Add: Foreign Exchange Impact $13 $13 Adjusted Net Sales $1,305 to $1,340 CONSOLIDATED Low to High Net Income $151 to $157 Add: Interest Expense 35 35 Less: Other Non-Operating (Income) -3 -3 Add: Income Tax Expense 112 116 Operating Income $295 to $305 Less: U.S. Pension (Credit)(1) -25 -25 Add: Depreciation and Amortization 80 80 Adjusted EBITDA $350 to $360

Adjusted EPS & Free Cash Flow – Guidance Reconciliation Based on ~54 million diluted shares outstanding U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income Plan based on guidelines established by the Pension Benefit Guaranty Corporation, nor do we expect to make cash contributions to the plan in 2017. Adjusted Diluted Earnings Per Share Adjusted Free Cash Flow CONSOLIDATED Low Per DilutedShare(1) to High Per DilutedShare(1) Net Income $151 $2.8 to $157 $2.91 Add: Interest Expense 35 35 Less: Other Non-Operating (Income) -3 -3 Add: Income Tax Expense 112 116 Operating Income $295 to $305 Less: U.S. Pension (Credit)(2) -25 -25 Less: Interest expense -35 -35 Adjusted Earnings before Income Taxes $235 to $245 Less: Income Tax Expense -92 -96 Adjusted Net Income $143 $2.65 to $149 $2.76 CONSOLIDATED Low to High Net cash provided by operating activities $165 to $180 Add: Return of investment from joint venture 70 70 Adjusted net cash provided by operating activities $235 to $250 Less: Capital Expenditures -95 -95 Adjusted Free Cash Flow $140 to $155