Acquisition and Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2018

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.

During the third quarter of 2018, a non-cash income tax benefit of $4.6 million was recorded within discontinued operations due to the reversal of reserves for uncertain tax provisions as a result of an expiration of the federal statute of limitations to review previously filed income tax returns.

	EMEA and Pacific Rim Businesses			Flooring Businesses			Total
Three months ended September 30, 2018:
Net sales	$	112.7		$	-		$	112.7
Cost of goods sold		87.1			-			87.1
Gross profit		25.6			-			25.6
Selling, general and administrative expenses		20.2			-			20.2
Operating income		5.4			-			5.4
Interest expense		0.4			-			0.4
Other non-operating expense, net		0.5			-			0.5
Earnings from discontinued operations before income tax		4.5			-			4.5
Income tax (benefit)		(0.5	)		-			(0.5	)
Net earnings from discontinued operations, net of tax	$	5.0		$	-		$	5.0
Gain on disposal of discontinued businesses, before income tax	$	2.4		$	-		$	2.4
Income tax (benefit)		-			(4.6	)		(4.6	)
Gain on disposal of discontinued businesses, net of tax	$	2.4		$	4.6		$	7.0
Net earnings from discontinued operations	$	7.4		$	4.6		$	12.0

	EMEA and Pacific Rim Businesses			Flooring Businesses			Total
Nine months ended September 30, 2018:
Net sales	$	331.7		$	-		$	331.7
Cost of goods sold		252.2			-			252.2
Gross profit		79.5			-			79.5
Selling, general and administrative expenses		61.9			-			61.9
Operating income		17.6			-			17.6
Interest expense		1.3			-			1.3
Other non-operating expense, net		0.7			-			0.7
Earnings from discontinued operations before income tax		15.6			-			15.6
Income tax expense		1.2			-			1.2
Net earnings from discontinued operations, net of tax	$	14.4		$	-		$	14.4
(Loss) on disposal of discontinued businesses, before income tax	$	(21.0	)	$	-		$	(21.0	)
Income tax (benefit)		-			(4.9	)		(4.9	)
(Loss) gain on disposal of discontinued businesses, net of tax	$	(21.0	)	$	4.9		$	(16.1	)
Net (loss) earnings from discontinued operations	$	(6.6	)	$	4.9		$	(1.7	)

	EMEA and Pacific Rim Businesses			Flooring Businesses			Total
Three months ended September 30, 2017:
Net sales	$	118.0		$	-		$	118.0
Cost of goods sold		90.8			-			90.8
Gross profit		27.2			-			27.2
Selling, general and administrative expenses		19.5			-			19.5
Operating income		7.7			-			7.7
Interest expense		0.3			-			0.3
Other non-operating (income), net		(1.0	)		-			(1.0	)
Earnings from discontinued operations before income tax		8.4			-			8.4
Income tax expense		2.2			-			2.2
Net earnings from discontinued operations, net of tax	$	6.2		$	-		$	6.2
Gain on disposal of discontinued businesses, before income tax	$	-		$	-		$	-
Income tax (benefit)		-			(5.9	)		(5.9	)
Gain on disposal of discontinued business, net of tax	$	-		$	5.9		$	5.9
Net earnings from discontinued operations	$	6.2		$	5.9		$	12.1

	EMEA and Pacific Rim Businesses			Flooring Businesses			Total
Nine months ended September 30, 2017:
Net sales	$	318.8		$	-		$	318.8
Cost of goods sold		254.9			-			254.9
Gross profit		63.9			-			63.9
Selling, general and administrative expenses		57.1			-			57.1
Operating income		6.8			-			6.8
Interest expense		0.9			-			0.9
Other non-operating (income), net		(2.1	)		-			(2.1	)
(Loss) from discontinued operations before income tax		8.0			-			8.0
Income tax expense		8.7			-			8.7
(Loss) from discontinued operations, net of tax	$	(0.7	)	$	-		$	(0.7	)
(Loss) on disposal of discontinued businesses, before income tax	$	-		$	(0.1	)	$	(0.1	)
Income tax (benefit)		-			(5.4	)		(5.4	)
Gain on disposal of discontinued business, net of tax	$	-		$	5.3		$	5.3
Net (loss) gain from discontinued operations	$	(0.7	)	$	5.3		$	4.6

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 September 30, 2018 and December 31, 2017 related to our EMEA and Pacific Rim businesses.

	September 30, 2018		December 31, 2017
Assets
Current assets:
Cash and cash equivalents	$	10.0	$	-
Accounts and notes receivable, net		60.6		61.4
Inventories, net		63.9		59.2
Income tax receivable		7.1		3.1
Other current assets		9.4		12.9
Total current assets discontinued operations		151.0		136.6
Property, plant, and equipment, less accumulated depreciation and amortization (1) (2)		102.0		131.3
Prepaid pension costs (1)		26.6		26.1
Goodwill and intangible assets, net (1)		7.0		7.2
Deferred income taxes (1)		2.8		4.0
Other non-current assets (1)		0.9		0.9
Total non-current assets of discontinued operations (1)		139.3		169.5
Total assets of discontinued operations (1)	$	290.3	$	306.1
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	68.5	$	78.6
Income tax payable		6.5		1.3
Total current liabilities		75.0		79.9
Pension benefit liabilities (3)		35.1		34.7
Other long-term liabilities (3)		1.8		1.8
Deferred income taxes (3)		5.3		12.1
Total non-current liabilities of discontinued operations (3)		42.2		48.6
Total liabilities of discontinued operations (3)	$	117.2	$	128.5

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

(2) Includes pre-tax estimated losses of $21.0 million recorded in the first nine months of 2018 and $74.0 million recorded in the fourth quarter of 2017.

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

Summary of Total Depreciation and Amortization, Capital Expenditures and Estimated Losses

The following is a summary of total depreciation and amortization, capital expenditures and estimated losses presented as discontinued operations and included as components of operating and investing cash flows on our Condensed Consolidated Statements of Cash Flows:

	EMEA and Pacific Rim Businesses
Three months ended September 30, 2018:
Reversal of previous estimated loss on sale to Knauf		(2.4	)
Purchases of property, plant and equipment		(1.3	)
Nine months ended September 30, 2018:
Estimated losses on sale to Knauf		21.0
Purchases of property, plant and equipment		(4.5	)
Three months ended September 30, 2017:
Depreciation and amortization		5.7
Purchases of property, plant and equipment		(1.6	)
Nine months ended September 30, 2017:
Depreciation and amortization		16.5
Purchases of property, plant and equipment		(8.4	)