Armstrong World Industries Asbestos Trust Annual Reports, 2012–2025

Armstrong's net assets declined by $8.48 million in 2025 to $659.01 million. Investment income and gains totaled $81.31 million, including $12.88 million in gains on alternative investments. These additions nearly covered $67.83 million in claims expense, $9.51 million in operating and claims-processing expenses, and $12.46 million in federal income tax expense. Year-end assets totaled $662.05 million, including $43.33 million in cash.

The trust received 28,835 claims and paid approximately $69.40 million in cash to claimants, including prepetition claims. That cash total differs from recognized claims expense because expense is recorded when a claim is approved and its release accepted; settled but unpaid claims totaled $1.69 million at year-end. During 2025, the trustees, Trust Advisory Committee, and Future Claimants' Representative approved a reduction in the payment percentage from 13.5% to 10.8%.

Armstrong ended 2024 with $667.49 million in net assets, a decrease of $23.63 million. Investment income and gains, including $12.44 million in gains on alternative investments, contributed $52.85 million; insurance recoveries added $1.12 million. These additions were exceeded by $66.47 million in claims expense, $9.18 million in operating and claims-processing expenses, and $1.96 million in federal income tax expense.

The trust received 28,447 claims and paid 21,695 claims under its Trust Distribution Procedures, plus prepetition claims. Total cash claim payments were approximately $66.39 million, closely tracking recognized claims expense. Accrued claims increased slightly to $3.31 million, while year-end cash declined to $27.96 million. Investment gains helped fund distributions but were insufficient to prevent a further reduction in net assets.

Armstrong's net assets declined by $9.23 million in 2023 to $691.12 million. Interest and dividends of $15.96 million, realized gains of $3.09 million, unrealized gains of $52.20 million, and insurance recoveries of $2.25 million supplied $73.49 million in additions. These nearly covered $73.92 million in claims expense and $8.79 million in operating and claims-processing expenses, substantially limiting the year's reduction in net assets.

The trust received 19,888 claims and paid 17,501 claims under its Trust Distribution Procedures, in addition to a small number of prepetition claims. Total cash claim payments were approximately $74.15 million. Accrued claims ended the year at $3.11 million and cash at $32.08 million. During 2023, the Trust Advisory Committee and Future Claimants' Representative approved a reduction in the payment percentage from 19.7% to 13.5%.

Armstrong ended 2022 with $700.35 million in net assets, down $146.43 million. Realized and unrealized investment losses totaled $73.60 million, substantially exceeding $13.94 million in interest and dividends and producing a net investment loss of $59.65 million. Claims expense of $76.59 million, operating and claims-processing expenses of $9.10 million, and federal income tax expense of $1.08 million added to the decline.

The trust received 22,535 claims and paid approximately $77.19 million in cash to claimants, including prepetition claims. Accrued claims declined to $3.33 million, while cash increased to $46.37 million. The increase in cash occurred alongside a substantial decline in total net assets, reflecting the distinction between available cash and the value of the trust's broader investment holdings.

Armstrong's net assets decreased by $48.68 million in 2021 to $846.78 million. Interest and dividends of $13.05 million, realized investment gains of $26.26 million, and unrealized gains of $18.13 million produced $57.44 million in additions. Claims expense of $85.74 million, operating and claims-processing expenses of $9.44 million, and federal income tax expense of $10.95 million exceeded those investment results.

The trust received 14,762 claims and paid 16,037 claims under its Trust Distribution Procedures, in addition to prepetition claims. Total cash claim payments were approximately $84.12 million. Accrued claims increased to $3.98 million from $2.25 million, and year-end cash was $40.96 million. Positive investment results moderated the reduction in net assets but did not fully fund the year's claims and other expenses.

Armstrong ended 2020 with $895.46 million in net assets, a decrease of $52.76 million. Investment income and gains supplied $66.92 million, and insurance recoveries added $1.38 million. These additions were exceeded by $105.67 million in claims expense, $11.39 million in operating and claims-processing expenses, and $4.00 million in federal income tax expense.

Cash claim payments totaled approximately $125.65 million, including prepetition claims, exceeding recognized claims expense as accrued claims declined from $22.17 million to $2.25 million. The trust ended the year with $41.84 million in cash. It began paying claims at a reduced 19.7% payment percentage on October 9, 2020, down from 26%; the Trust Advisory Committee and Future Claimants' Representative consented to the reduction on November 6.

Armstrong's net assets declined by $41.07 million in 2019 to $948.23 million. Investment income and gains contributed $93.28 million, with insurance recoveries and a federal income tax benefit bringing total additions to $97.48 million. Those additions substantially offset, but did not cover, $125.58 million in claims expense and $12.97 million in operating and claims-processing expenses.

The trust paid $113.12 million on claims under its Trust Distribution Procedures. Accrued claims increased from $9.78 million to $22.17 million, while year-end cash was $60.06 million. On July 30, 2019, it began making payments at a proposed 26% payment percentage, reduced from 36%. The Trust Advisory Committee and Future Claimants' Representative had requested additional review time but did not object to implementation of the lower rate while consent remained pending.

Armstrong ended 2018 with $989.29 million in net assets, down $184.56 million. Realized and unrealized investment losses exceeded interest and dividends, producing a net investment loss of $10.71 million. Insurance recoveries of $4.16 million and a $1.71 million federal income tax benefit partially offset that loss. Claims expense of $167.94 million and operating and claims-processing expenses of $11.78 million accounted for the remaining decline.

The trust paid approximately $174.64 million in cash to claimants, including prepetition claims, and ended the year with $9.78 million in accrued claims and $71.17 million in cash. On June 29, 2018, it began making payments at a proposed 36% payment percentage, down from 43%, while the required consent process remained under review. The report connected the proposed reduction to claim filings and approval rates exceeding projections.

Armstrong's net assets decreased by $153.84 million in 2017 to $1.17 billion. Realized investment gains of $91.52 million, interest and dividends of $24.11 million, and insurance recoveries of $2.59 million supplied $118.21 million in additions. Deductions included $138.82 million in claims expense, $79.47 million in federal income tax expense, $39.62 million in unrealized investment losses, and $14.13 million in operating and claims-processing expenses.

Cash claim payments totaled approximately $173.29 million, including $46.41 million in supplemental payments, while accrued claims declined from $50.87 million to $16.57 million. The trust received 24,949 claims. It also sold all of its remaining Armstrong World Industries and Armstrong Flooring stock on March 13, 2017, ending those direct equity holdings. Year-end cash was $98.21 million.

Armstrong ended 2016 with $1.33 billion in net assets, a decrease of $444.45 million driven principally by $499.86 million in claims expense. Interest and dividends, insurance recoveries, unrealized investment gains, and a federal income tax benefit provided $79.20 million in additions. These were outweighed by claims expense, $8.35 million in realized investment losses, and $15.45 million in operating and claims-processing expenses.

The payment percentage increased from 35% to 43% effective November 1, 2016. Approximately $337.93 million in supplemental payments contributed to total cash claim payments of $452.92 million, making the increase for previously paid claimants a central feature of the year's results. The trust received 20,784 claims. Accrued claims rose to $50.87 million from $3.99 million, showing that a substantial portion of recognized obligations remained unpaid at year-end.

Armstrong's net assets declined by $32.72 million in 2015 to $1.77 billion. Insurance recoveries of $154.00 million provided a major offset to claims and investment losses, together with $80.39 million in realized gains and $28.58 million in interest and dividends. Deductions included $115.32 million in claims expense, $100.34 million in unrealized investment losses, $64.52 million in federal income tax expense, and $15.51 million in operating and claims-processing expenses.

The trust received 23,595 claims and paid approximately $114.09 million to claimants, including prepetition claims. Accrued claims ended the year at $3.99 million, while cash increased to $82.97 million. The large insurance recovery helped contain the decline in net assets despite substantial claim costs, taxes, and unrealized losses.

Armstrong ended 2014 with $1.80 billion in net assets, down $147.96 million. Interest and dividends, realized investment gains, and insurance recoveries supplied $72.12 million in additions, but $80.25 million in unrealized investment losses outweighed those additions before expenses. The trust also recognized $98.57 million in claims expense, $13.81 million in operating and claims-processing expenses, and $27.45 million in federal income tax expense.

The trust received 16,947 claims and paid approximately $144.16 million to claimants, including prepetition claims. Cash payments exceeded the year's recognized claims expense as accrued claims fell from $49.41 million to $3.06 million, reflecting the payment of previously recorded obligations. Year-end cash declined to $40.23 million, so both investment losses and claim distributions contributed to the year's reduction in financial resources.

Armstrong's net assets fell by $700.20 million in 2013 to $1.95 billion. Claims expense of $619.31 million dominated the year's deductions, alongside $177.98 million in federal income tax expense, $116.30 million in unrealized investment losses, and $16.44 million in operating and claims-processing expenses. Realized investment gains of $188.93 million, interest and dividends of $30.81 million, and insurance recoveries of $10.09 million provided substantial offsets.

The trust increased its payment percentage from 20% to 35% effective December 11, 2013. Approximately $523.97 million in supplemental payments to previously paid claimants formed most of the year's approximately $569.85 million in cash claim payments. An additional $44.49 million in supplemental payments remained accrued at year-end. This adjustment to earlier claims is essential context for the unusually large claims expense and reduction in net assets.

Armstrong ended 2012 with $2.65 billion in net assets, an increase of $373.84 million. A $247.45 million net special dividend was the largest addition, supplemented by $208.84 million in realized and unrealized investment gains and $27.70 million in interest and dividends. These additions comfortably exceeded $49.46 million in claims expense, $15.60 million in operating and claims-processing expenses, and $45.09 million in federal income tax expense.

The trust received 25,426 claims and paid approximately $49.68 million to claimants, including prepetition claims. Its payment percentage was 20%. Year-end cash totaled $194.61 million, while accrued claims were only $333,341. The substantial growth in net assets therefore reflected the special dividend and investment results alongside continued claim payments.