Segment Information |
Segment Information We have four operating segments that supply a wide range of products: | | • | Residential Furnishings—components for bedding, furniture and other furnishings, as well as related consumer products |
| | • | Commercial Fixturing & Components—components and products for the office seating market |
| | • | Industrial Materials—drawn steel wire, specialty wire products, titanium and nickel tubing for the aerospace industry and welded steel tubing |
| | • | 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 officer. The chief operating officer in turn reports directly 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 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 for the periods presented are as follows: | | | | | | | | | | | | | | | | | | Year Ended December 31 | | External Sales | | Inter- Segment Sales | | Total Sales | | EBIT | 2014 | | | | | | | | Residential Furnishings | $ | 2,183.4 |
| | $ | 39.8 |
| | $ | 2,223.2 |
| | $ | 161.3 |
| Commercial Fixturing & Components | 194.3 |
| | 4.6 |
| | 198.9 |
| | 13.0 |
| Industrial Materials | 605.3 |
| | 259.7 |
| | 865.0 |
| | 55.8 |
| Specialized Products | 799.3 |
| | 62.4 |
| | 861.7 |
| | 117.4 |
| Intersegment eliminations and other | | | | | | | (15.1 | ) | Adjustment to LIFO method | | | | | | | (.9 | ) | | $ | 3,782.3 |
| | $ | 366.5 |
| | $ | 4,148.8 |
| | $ | 331.5 |
| 2013 | | | | | | | | Residential Furnishings | $ | 1,944.0 |
| | $ | 23.0 |
| | $ | 1,967.0 |
| | $ | 169.4 |
| Commercial Fixturing & Components | 182.5 |
| | 4.0 |
| | 186.5 |
| | 10.7 |
| Industrial Materials | 612.8 |
| | 231.0 |
| | 843.8 |
| | 71.3 |
| Specialized Products | 737.9 |
| | 52.5 |
| | 790.4 |
| | 26.2 |
| Intersegment eliminations and other | | | | | | | .9 |
| Adjustment to LIFO method | | | | | | | (3.9 | ) | | $ | 3,477.2 |
| | $ | 310.5 |
| | $ | 3,787.7 |
| | $ | 274.6 |
| 2012 | | | | | | | | Residential Furnishings | $ | 1,895.0 |
| | $ | 8.8 |
| | $ | 1,903.8 |
| | $ | 152.2 |
| Commercial Fixturing & Components | 186.7 |
| | 3.8 |
| | 190.5 |
| | 15.0 |
| Industrial Materials | 621.7 |
| | 249.4 |
| | 871.1 |
| | 65.1 |
| Specialized Products | 711.1 |
| | 45.9 |
| | 757.0 |
| | 86.1 |
| Intersegment eliminations and other | | | | | | | (6.8 | ) | Adjustment to LIFO method | | | | | | | 12.8 |
| | $ | 3,414.5 |
| | $ | 307.9 |
| | $ | 3,722.4 |
| | $ | 324.4 |
|
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 year. Acquired companies’ long-lived assets as disclosed below include property, plant and equipment and other long-term assets. | | | | | | | | | | | | | | | | | | Year Ended December 31 | | Assets | | Additions to Property, Plant and Equipment | | Acquired Companies’ Long-Lived Assets | | Depreciation And Amortization | 2014 | | | | | | | | Residential Furnishings | $ | 595.2 |
| | $ | 47.8 |
| | $ | 60.5 |
| | $ | 48.1 |
| Commercial Fixturing & Components | 49.2 |
| | 2.1 |
| | — |
| | 3.5 |
| Industrial Materials | 256.2 |
| | 13.7 |
| | — |
| | 23.1 |
| Specialized Products | 245.1 |
| | 27.5 |
| | — |
| | 24.3 |
| Other (1) | 90.4 |
| | 1.4 |
| | — |
| | 2.9 |
| Average current liabilities included in segment numbers above | 520.2 |
| | — |
| | — |
| | — |
| Unallocated assets (2) | 1,451.4 |
| | 1.6 |
| | — |
| | 16.0 |
| Difference between average assets and year-end balance sheet | (67.1 | ) | | — |
| | — |
| | — |
| | $ | 3,140.6 |
| | $ | 94.1 |
| | $ | 60.5 |
| | $ | 117.9 |
| 2013 | | | | | | | | Residential Furnishings | $ | 586.5 |
| | $ | 36.5 |
| | $ | .6 |
| | $ | 47.2 |
| Commercial Fixturing & Components | 48.7 |
| | 1.5 |
| | — |
| | 3.7 |
| Industrial Materials | 248.0 |
| | 12.6 |
| | 31.0 |
| | 21.8 |
| Specialized Products | 225.0 |
| | 26.7 |
| | 3.3 |
| | 27.7 |
| Other (1) | 96.2 |
| | 1.1 |
| | — |
| | 6.1 |
| Average current liabilities included in segment numbers above | 460.6 |
| | — |
| | — |
| | — |
| Unallocated assets (2) | 1,492.4 |
| | 2.2 |
| | — |
| | 16.1 |
| Difference between average assets and year-end balance sheet | (49.3 | ) | | — |
| | — |
| | — |
| | $ | 3,108.1 |
| | $ | 80.6 |
| | $ | 34.9 |
| | $ | 122.6 |
| 2012 | | | | | | | | Residential Furnishings | $ | 602.9 |
| | $ | 22.5 |
| | $ | 12.9 |
| | $ | 46.4 |
| Commercial Fixturing & Components | 51.1 |
| | 2.0 |
| | — |
| | 4.3 |
| Industrial Materials | 237.1 |
| | 14.3 |
| | 182.4 |
| | 22.8 |
| Specialized Products | 225.4 |
| | 23.4 |
| | — |
| | 24.6 |
| Other (1) | 116.2 |
| | 3.2 |
| | — |
| | 7.6 |
| Average current liabilities included in segment numbers above | 440.7 |
| | — |
| | — |
| | — |
| Unallocated assets (2) | 1,678.2 |
| | 5.6 |
| | — |
| | 13.3 |
| Difference between average assets and year-end balance sheet | (96.7 | ) | | — |
| | — |
| | — |
| | $ | 3,254.9 |
| | $ | 71.0 |
| | $ | 195.3 |
| | $ | 119.0 |
|
______________________________
| | (1) | Businesses sold or classified as discontinued operations during the years presented. |
| | (2) | Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. Unallocated depreciation and amortization consists primarily of depreciation of non-operating assets and amortization of debt issue costs. |
Revenues from external customers, by product line, are as follows: | | | | | | | | | | | | | | Year Ended December 31 | | 2014 | | 2013 | | 2012 | Residential Furnishings | | | | | | Bedding group | $ | 802.2 |
| | $ | 660.9 |
| | $ | 657.6 |
| Furniture group | 708.9 |
| | 673.2 |
| | 676.9 |
| Fabric & Carpet Underlay group | 672.3 |
| | 609.9 |
| | 560.5 |
| | 2,183.4 |
| | 1,944.0 |
| | 1,895.0 |
| Commercial Fixturing & Components | | | | | | Work Furniture group | 194.3 |
| | 182.5 |
| | 186.7 |
| | 194.3 |
| | 182.5 |
| | 186.7 |
| Industrial Materials | | | | | | Wire group | 387.0 |
| | 428.0 |
| | 457.9 |
| Tubing group | 218.3 |
| | 184.8 |
| | 163.8 |
| | 605.3 |
| | 612.8 |
| | 621.7 |
| Specialized Products | | | | | | Automotive group | 589.4 |
| | 502.7 |
| | 463.5 |
| Commercial Vehicle Products group | 110.4 |
| | 109.0 |
| | 137.7 |
| Machinery group | 99.5 |
| | 126.2 |
| | 109.9 |
| | 799.3 |
| | 737.9 |
| | 711.1 |
| | $ | 3,782.3 |
| | $ | 3,477.2 |
| | $ | 3,414.5 |
|
Our principal operations outside of the United States are presented in the following geographic information, based on the area of manufacture. | | | | | | | | | | | | | | Year Ended December 31 | | 2014 | | 2013 | | 2012 | External sales | | | | | | United States | $ | 2,599.0 |
| | $ | 2,449.9 |
| | $ | 2,430.2 |
| Europe | 422.7 |
| | 351.7 |
| | 326.2 |
| China | 390.0 |
| | 335.5 |
| | 311.9 |
| Canada | 206.5 |
| | 201.6 |
| | 213.2 |
| Mexico | 90.1 |
| | 69.6 |
| | 64.5 |
| Other | 74.0 |
| | 68.9 |
| | 68.5 |
| | $ | 3,782.3 |
| | $ | 3,477.2 |
| | $ | 3,414.5 |
| Tangible long-lived assets | | | | | | United States | $ | 347.2 |
| | $ | 363.6 |
| | $ | 383.9 |
| Europe | 124.3 |
| | 124.5 |
| | 102.7 |
| China | 40.5 |
| | 35.7 |
| | 35.9 |
| Canada | 25.6 |
| | 25.0 |
| | 21.1 |
| Mexico | 9.8 |
| | 11.8 |
| | 12.9 |
| Other | 11.5 |
| | 14.0 |
| | 16.3 |
| | $ | 558.9 |
| | $ | 574.6 |
| | $ | 572.8 |
|
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