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Segment Information
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
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