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Employee Retention of Armstrong World Industries

Discuss Employee Retention of Armstrong World Industries within the Human Resources Management (H.R) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Armstrong World Industries, Inc. (NYSE: AWI) is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, ...

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Pratik Kukreja
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Employee Retention of Armstrong World Industries - March 31st, 2011

Armstrong World Industries, Inc. (NYSE: AWI) is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 40 plants in 10 countries and has approximately 12,300 employees worldwide. In 2006, Armstrong’s net sales were $3.42 billion, with operating income of $210.8 million.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
On January 11, 2007, Armstrong World Industries, Inc. and NPM Capital N.V. announced they were negotiating the sale of Tapijtfabriek H. Desseaux N.V. and its subsidiaries, the principal operating companies in Armstrong’s European Textile and Sports Flooring business segment, to NPM Capital N.V. The sale was finalized in April 2007.
On February 15, 2007, Armstrong World Industries, Inc. announced that it was initiating a review of its strategic alternatives.

Careers at Armstrong

Bring your ideas. Build your future with us.
At Armstrong, you'll have the opportunity to make the most of your potential. We began nearly 150 years ago, starting with a small cork cutting shop that has evolved to our position today as a global leader in the design and manufacture of floors, ceilings, and cabinet products.

We offer you a proud heritage of innovation, commitment to environmental sustainability, and operations based on integrity, respect, diversity, continuous improvement, and a passion for safety.

Armstrong World Industries is committed to Equal Employment Opportunity and a barrier-free employment process. Individuals interested in Armstrong's employment opportunities who may need assistance

This Retirement Benefit Equity Plan has been authorized by the Board of Directors of Armstrong World Industries, Inc. to be applicable effective on and after January 1, 1976 to pay supplemental retirement benefits to certain employees of the Company who have qualified or may qualify for benefits under the Retirement Income Plan for Employees of Armstrong World Industries, Inc.


All benefits payable under this Plan shall be paid out of the general assets of the Company, or from a trust, if any, established by the Company for the purpose of paying benefits under the Plan, the assets of which shall remain subject to the claims of judgment creditors of the Company in accordance with the provisions of any such trust.


Article 1. Definitions


1.01 "Board of Directors" shall mean the Board of Directors of the Company.


1.02 "Committee" shall mean the Retirement Committee as provided for in
Article 4.


1.03 "Company" shall mean Armstrong World Industries, Inc. or any successor
by merger, purchase or otherwise, with respect to its employees. The
term Company shall also mean any other company participating in the
Retirement Income Plan with respect to its employees if such Company
adopts this Plan.


1.04 "Compensation" shall mean "compensation" as determined under the
Retirement Income Plan without regard to limitations under Section
401(a)(17) of the Internal Revenue Code plus amounts deferred under
the Armstrong Deferred Compensation Plan, if any and amounts
contributed by the Company to the Bonus Replacement Retirement Plan of
Armstrong World Industries, Inc. (the "Bonus Replacement Plan") on
behalf of a Member in the year in which such contribution is made.


1.05 Effective Date" shall mean January 1, 1976.


1.06 "Member" shall mean any person included in the membership of the Plan
as provided in Article 2.


1.07 "Plan" shall mean the Retirement Benefit Equity Plan of Armstrong
World Industries, Inc. as described herein or as hereafter amended.


1.08 "Retirement Income Plan" shall mean the Retirement Income Plan for
Employees of Armstrong World Industries, Inc.


Article 2. Membership


2.01 Every person who was a member of the Plan as in effect on December 31,
1982 shall remain a Member of the Plan on or after January 1, 1983.


2.02 Every other employee of the Company shall become a Member of the Plan
on the first day of the calendar year in which:


(a) his benefit calculated under the Retirement Income Plan exceeds
the allowed benefit under Section 415 of the Internal Revenue
Code,


(b) his compensation exceeds the maximum allowed under Section
401(a)(17) of the Internal Revenue Code,


(c) he has compensation deferred under the terms of the Armstrong
Deferred Compensation Plan,



Armstrong World Industries, Inc. (NYSE: AWI) today announced additional actions in the execution of its European flooring strategy.

The Company will focus on products and regions where it believes it can be a market leader, and will streamline its product range and sales organization accordingly.

Armstrong intends to concentrate its European flooring manufacturing operations in Germany and continue to make linoleum and homogenous vinyl flooring for the commercial market in its Delmenhorst and Bietigheim plants, respectively. During the fourth quarter of 2010, Armstrong plans to withdraw from the residential market (as previously announced in August of this year), and as a result, its Teesside, UK manufacturing facility will likely close. In addition, Armstrong no longer intends to make heterogeneous vinyl flooring in Europe at its Holmsund, Sweden, plant, and it is anticipated that the Holmsund facility will also close. Subject to consultations with employee representatives, the Company anticipates that these restructuring measures will affect approximately 520 jobs across Europe – or about 38 % of Armstrong's European flooring workforce.

In total, the Company expects to incur expenses of $30 million to $35 million for these actions through 2011.; The expenses will primarily include severance benefits and asset writedowns; the amount of severance benefits will be determined following employee consultation periods. Related cash expenditures are expected to be approximately $25 million. The Company expects to realize annual benefits of between $15 million and $20 million from these actions although the full benefit will not occur until 2012.

"We deeply regret that we cannot achieve a sustainable business structure without affecting our employees," said Frank J. Ready, executive vice president, Armstrong World Industries, Inc. "We are committed to our employees and we will do our best to act in the balanced interest of our staff, company, customers and shareholders. We have a clear goal in front of us: we want to be the market leader of specialized flooring in selected markets with a solid foundation for achieving sustainable profitable growth by 2013."
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