SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We have four operating segments that are generally focused on broad end-user markets for our diversified products.

• Residential Furnishings—components for bedding, furniture and other furnishings, as well as related consumer products

• Commercial Fixturing & Components—retail store fixtures, displays and components for office and institutional furnishings

• Industrial Materials—drawn steel wire, specialty wire products, titanium and nickel tubing for the aerospace industry and welded steel tubing sold to trade customers as well as other Leggett segments

• Specialized Products—automotive seating components, specialized machinery and equipment, and commercial vehicle interiors

Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Each reportable segment has a senior operating vice-president that reports to the chief operating decision maker. The operating results and financial information reported through the segment structure are regularly reviewed and used by the chief operating decision maker to evaluate segment performance, allocate overall resources and determine management incentive compensation.

Separately, we also utilize a role-based approach (Grow, Core, Fix or Divest) as a supplemental management tool to ensure capital (which is a subset of the overall resources referred to above) is efficiently allocated within the reportable segment structure.

The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements, except that the segment assets and income reflect the FIFO basis of accounting for inventory. Certain inventories are accounted for using the LIFO basis in the consolidated financial statements. We evaluate performance based on earnings from operations before interest and income taxes (EBIT). Intersegment sales are made primarily at prices that approximate market-based selling prices. Centrally incurred costs are allocated to the segments based on estimates of services used by the segment. Certain of our general and administrative costs and miscellaneous corporate income and expenses are allocated to the segments based on sales. These allocated corporate costs include depreciation and other costs and income related to assets that are not allocated or otherwise included in the segment assets.

A summary of segment results from continuing operations are shown in the following tables.

	External Sales		Inter- Segment Sales		Total Sales		EBIT
Three Months Ended June 30, 2013:
Residential Furnishings	$	484.8	$	4.0	$	488.8	$	42.4
Commercial Fixturing & Components	126.2		1.2		127.4		7.9
Industrial Materials	155.8		60.9		216.7		21.9
Specialized Products	192.0		16.4		208.4		28.4
Intersegment eliminations							(4.3		)
Change in LIFO reserve							2.2
	$	958.8	$	82.5	$	1,041.3	$	98.5
Three Months Ended June 30, 2012:
Residential Furnishings	$	472.4	$	2.3	$	474.7	$	40.0
Commercial Fixturing & Components	113.7		1.2		114.9		3.1
Industrial Materials	167.3		65.9		233.2		18.3
Specialized Products	181.2		13.8		195.0		26.0
Intersegment eliminations							(3.2		)
Change in LIFO reserve							2.6
	$	934.6	$	83.2	$	1,017.8	$	86.8

	External Sales		Inter- Segment Sales		Total Sales		EBIT
Six Months Ended June 30, 2013:
Residential Furnishings	$	969.7	$	5.9	$	975.6	$	84.7
Commercial Fixturing & Components	240.8		2.2		243.0		9.5
Industrial Materials	315.4		124.5		439.9		43.6
Specialized Products	365.6		29.1		394.7		44.1
Intersegment eliminations							(8.8		)
Change in LIFO reserve							4.8
	$	1,891.5	$	161.7	$	2,053.2	$	177.9
Six Months Ended June 30, 2012:
Residential Furnishings	$	963.0	$	4.3	$	967.3	$	80.2
Commercial Fixturing & Components	226.9		2.2		229.1		10.3
Industrial Materials	331.9		136.5		468.4		31.0
Specialized Products	356.1		23.6		379.7		44.3
Intersegment eliminations							(5.2		)
Change in LIFO reserve							2.1
	$	1,877.9	$	166.6	$	2,044.5	$	162.7

Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include working capital (all current assets and current liabilities) plus net property, plant and equipment. Segment assets for all years are reflected at their estimated average for the periods presented. Amounts for 2012 have been retrospectively adjusted to reflect discontinued operations as discussed in Note 5.

	June 30, 2013		December 31, 2012
Residential Furnishings	$	587.8	$	602.9
Commercial Fixturing & Components	149.9		159.1
Industrial Materials	242.8		237.1
Specialized Products	223.0		225.4
Average current liabilities included in segment numbers above	447.9		439.1
Unallocated assets (1)	1,578.2		1,685.5
Difference between average assets and period-end balance sheet	49.1		(94.2		)
Total assets	$	3,278.7	$	3,254.9

(1) Primarily goodwill, other intangibles, cash, LIFO reserves, deferred tax assets and businesses sold or classified as held for sale during the second quarter of 2013.