|12 Months Ended|
Dec. 31, 2016
|Discontinued Operations and Disposal Groups [Abstract]|
European Resilient Flooring
On December 4, 2014, AWI's board of Directors approved the cessation of funding to its DLW subsidiary, which at the time was our European flooring business. As a result, DLW management filed for insolvency in Germany on December 11, 2014.
The DLW insolvency filing in 2014 resulted in presenting DLW for all historical periods prior to the Separation as a discontinued operation. However, the insolvency filing did not meet the U.S. tax criteria to be considered disposed of until the first quarter of 2015. In determining the U.S. tax impact of the disposition, the liabilities, including an unfunded pension liability of approximately $115.0 million, were considered proceeds. However, pension deductions for tax purposes result only when the benefit payments are made. Accordingly, a deferred tax asset and non-cash income tax benefit of $43.4 million was recorded in 2015 within discontinued operations for the tax benefit of the future pension deductions. AWI is solely responsible for any shortfall, and the beneficiary of any excess, at the closure of the DLW insolvency proceedings. Therefore, DLW is excluded from our balance sheets, results of operations and cash flows after the Spin-off.
The following is a summary of the operating results of DLW, which are reflected in these Consolidated Financial Statements for periods prior to the Separation.
In 2012, AWI sold its cabinets business, formerly managed as a component of our operations. The sale was completed in October 2012. In 2014, $3.5 million of loss on disposal before income tax was recognized related to the settlement of liabilities to a multi-employer pension plan. The settlement included complete release of all claims and the liability was paid in 2014.
NOTE 4. DISCONTINUED OPERATIONS (continued)
The following table summarizes the results related to the cabinets business, which are reflected in these Consolidated Financial Statements for periods prior to the Separation:
The Consolidated Statement of Cash Flows does not separately report the cash flows of the discontinued operations.
Pursuant to the separation agreements between us and AWI, future claims related to DLW and AWI’s former cabinets business will remain the financial responsibility of AWI.
The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.
Reference 1: http://www.xbrl.org/2003/role/presentationRef