Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.7.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Changes in Accounting Principle
The following financial statements for fiscal years 2016, 2015 and 2014 were affected by the change in accounting principle:

Income Statements
 
Year Ended December 31, 2016
 
As Computed under LIFO
 
As Reported
 
Effect of Change
Cost of goods sold
$
973.4

 
$
963.1

 
$
(10.3
)
Income tax expense
1.5

 
4.1

 
2.6

Income (loss) from continuing operations
(0.2
)
 
7.5

 
7.7

Net income
1.5

 
9.2

 
7.7


 
Year Ended December 31, 2015
 
As Computed under LIFO
 
As Adjusted
 
Effect of Change
Cost of goods sold
$
961.1

 
$
993.0

 
$
31.9

Income tax expense (benefit)
5.3

 
(7.3
)
 
(12.6
)
Income (loss) from continuing operations
9.0

 
(10.3
)
 
(19.3
)
Net income
48.9

 
29.6

 
(19.3
)
 
Year Ended December 31, 2014
 
As Computed under LIFO
 
As Adjusted
 
Effect of Change
Cost of goods sold
$
1,021.7

 
$
1,010.7

 
$
(11.0
)
Income tax expense
3.6

 
7.9

 
4.3

Income from continuing operations
2.8

 
9.5

 
6.7

Net (loss)
(37.2
)
 
(30.5
)
 
6.7

















NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Balance Sheets
 
December 31, 2016
 
As Computed under LIFO
 
As Reported
 
Effect of Change
Assets
 
 
 
 
 
Inventories, net
$
251.6

 
$
272.1

 
$
20.5

Income tax receivable
4.7

 
2.4

 
(2.3
)
Deferred income taxes, noncurrent
5.3

 
4.5

 
(0.8
)
Liabilities
 
 
 
 
 
Deferred income taxes, noncurrent
3.8

 
8.4

 
4.6

Stockholders' equity
 
 
 
 
 
Additional paid-in capital
666.4

 
673.3

 
6.9

Retained earnings
4.1

 
10.0

 
5.9


 
December 31, 2015
 
As Computed under LIFO
 
As Adjusted
 
Effect of Change
Assets
 
 
 
 
 
Inventories, net
$
242.8

 
$
253.0

 
$
10.2

Deferred income taxes, current
3.0

 

 
(3.0
)
Liabilities
 
 
 
 
 
Deferred income taxes, current
0.3

 
1.4

 
1.1

Stockholders' equity
 
 
 
 
 
Net AWI investment
615.9

 
622.0

 
6.1

Statements of Cash Flows
 
Year Ended December 31, 2016
 
As Computed under LIFO
 
As Reported
 
Effect of Change
Net income
$
1.5

 
$
9.2

 
$
7.7

Changes in operating assets and liabilities
(6.8
)
 
(14.8
)
 
(8.0
)
Deferred income taxes
(5.5
)
 
(5.2
)
 
0.3




NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
 
Year Ended December 31, 2015
 
As Computed under LIFO
 
As Adjusted
 
Effect of Change
Net income
$
48.9

 
$
29.6

 
$
(19.3
)
Changes in operating assets and liabilities
12.5

 
44.4

 
31.9

Deferred income taxes
(43.4
)
 
(56.0
)
 
(12.6
)

 
Year Ended December 31, 2014
 
As Computed under LIFO
 
As Adjusted
 
Effect of Change
Net (loss)
$
(37.2
)
 
$
(30.5
)
 
$
6.7

Changes in operating assets and liabilities
(56.3
)
 
(67.4
)
 
(11.1
)
Deferred income taxes
26.0

 
30.4

 
4.4

Summary of the Equity and Cash Flow Impact of Separation Activities
The components on the Consolidated Statements of Stockholders' Equity and the Consolidated Statements of Cash Flows were as follows:
 
 
Year Ended
December 31, 2016
 
 
Consolidated Statements of Stockholders' Equity
 
Consolidated Statements of Cash Flows - Financing Activities
 
 
Net transfers from AWI for the three months prior to separation
$
53.6

 
$
53.6

 
Net transfers (to) from AWI upon separation
(11.2
)
 
9.0

 
Other activity concurrent with separation

 
(7.0
)
 
 
42.4

 
55.6

 
Cash distribution paid to AWI upon separation
(50.0
)
 
(50.0
)
 
Net transfers (to) from AWI
$
(7.6
)
 
$
5.6