Acquisition and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2019

Discontinued Operations [Abstract]

Summary of Results of Discontinued Operations

The following tables detail the businesses and line items that comprise discontinued operations on the Condensed Consolidated Statements of Earnings and Comprehensive Income.

	EMEA and Pacific Rim Businesses
Three months ended March 31, 2019:
Net sales	$	96.9
Cost of goods sold		75.7
Gross profit		21.2
Selling, general and administrative expenses		20.8
Operating income		0.4
Earnings from discontinued operations before income tax		0.4
Income tax (benefit)		(0.1	)
Net earnings from discontinued operations, net of tax	$	0.5
Gain from disposal of discontinued businesses, before income tax	$	2.2
Income tax expense		-
Gain from disposal of discontinued businesses, net of tax	$	2.2
Net earnings from discontinued operations	$	2.7

	EMEA and Pacific Rim Businesses			Flooring Businesses			Total
Three months ended March 31, 2018:
Net sales	$	104.4		$	-		$	104.4
Cost of goods sold		77.8			-			77.8
Gross profit		26.6			-			26.6
Selling, general and administrative expenses		22.0			-			22.0
Operating income		4.6			-			4.6
Interest expense		0.4			-			0.4
Other non-operating (income), net		(1.2	)		-			(1.2	)
Earnings from discontinued operations before income tax		5.4			-			5.4
Income tax expense		1.5			-			1.5
Net earnings from discontinued operations, net of tax	$	3.9		$	-		$	3.9
Loss from disposal of discontinued businesses, before income tax	$	(17.7	)	$	-		$	(17.7	)
Income tax (benefit)		-			(0.4	)		(0.4	)
Loss from disposal of discontinued business, net of tax	$	(17.7	)	$	0.4		$	(17.3	)
Net loss from discontinued operations	$	(13.8	)	$	0.4		$	(13.4	)

The following is a summary of the carrying amount of major classes of assets and liabilities classified as assets and liabilities of discontinued operations as of March 31, 2019 and December 31, 2018 related to our EMEA and Pacific Rim businesses.

	March 31, 2019		December 31, 2018
Assets
Current assets:
Cash and cash equivalents	$	10.0	$	10.0
Accounts and notes receivable, net		47.3		56.2
Inventories, net		65.3		59.8
Income tax receivable		4.2		1.8
Other current assets		10.3		8.2
Total current assets discontinued operations		137.1		136.0
Property, plant, and equipment, less accumulated depreciation and amortization (1) (2)		109.3		103.8
Prepaid pension costs (1)		29.9		28.9
Goodwill and intangible assets, net (1)		7.0		6.8
Deferred income taxes (1)		3.1		3.0
Lease ROU assets (1)		21.8		-
Other non-current assets (1)		0.7		1.0
Total non-current assets of discontinued operations (1)		171.8		143.5
Total assets of discontinued operations (1)	$	308.9	$	279.5
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	73.2	$	67.1
Income tax payable		1.2		1.1
Total current liabilities		74.4		68.2
Pension benefit liabilities (3)		33.6		33.8
Lease non-current liabilities (3)		12.7		-
Other long-term liabilities (3)		1.8		1.8
Income taxes payable (3)		0.2		-
Deferred income taxes (3)		6.6		6.5
Total non-current liabilities of discontinued operations (3)		54.9		42.1
Total liabilities of discontinued operations (3)	$	129.3	$	110.3

(1) Presented as Assets of discontinued operations on the Condensed Consolidated Balance Sheets.

(2) Includes reversal of previous pre-tax estimated losses of $2.2 million recorded in the first three months of 2019. As of December 31, 2018, cumulative pre-tax estimated losses were $93.3 million.

(3) Presented as Liabilities of discontinued operations on the Condensed Consolidated Balance Sheets.

Summary of Total Estimated Gains and Losses, Capital Expenditures, and Operating Lease

The following is a summary of total estimated gains and losses, capital expenditures, and operating lease information related to our EMEA and Pacific Rim businesses which are presented as discontinued operations and included as components of operating and investing cash flows on our Condensed Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2019			2018
Reversal of previous estimated loss on sale to Knauf (1)		(2.2	)		-
Estimated loss on sale to Knauf (1)		-			17.7
Purchases of property, plant and equipment		(0.4	)		(1.2	)
Operating lease cost (2)		2.3			-
ROU assets obtained in exchange for lease obligations (2)		24.6			-

(1) Represents comparison of the EMEA and Pacific Rim net assets to the expected sales proceeds to be received upon closure of the transaction.

(2) Operating lease cost and non-cash activity relating to ASC Topic 842 – Leases. We do not believe the amount of cash paid for amounts included in the measurement of lease liabilities to be materially different from our operating lease cost for the three months ended March 31, 2019.