SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Because of the recent divestiture of the majority of the Store Fixtures business unit (formerly in the Commercial Products segment) along with the retirement of the senior operating vice president of the Industrial Materials segment, our management organizational structure and all related internal reporting changed during the first quarter of 2015. As a result, the composition of our four reportable segments changed to reflect the new structure beginning in the first quarter of 2015. The segment changes include: (i) the Adjustable Bed and Fashion Bed (formerly named Consumer Products) business units moved from Residential Furnishings to Commercial Products; (ii) the Aerospace Products business unit moved from Industrial Materials to Specialized Products; and (iii) the Spuhl machinery division moved from Specialized Products to Residential Furnishings. These segment changes were retrospectively applied to all prior periods presented.

We have four operating segments that supply a wide range of products:

• Residential Furnishings—components for bedding and furniture, fabric and carpet cushion

• Commercial Products—components for office and institutional furnishings, adjustable beds and consumer products

• Industrial Materials—drawn steel wire, fabricated wire products, steel rod and welded steel tubing

• Specialized Products—automotive seating components; titanium, nickel alloy and stainless steel tubing for the aerospace industry; specialized machinery and equipment; and commercial vehicle interiors

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 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 March 31, 2015
Residential Furnishings	$	511.7	$	17.8	$	529.5	$	52.1
Commercial Products	123.5		17.5		141.0		8.0
Industrial Materials	112.0		80.4		192.4		8.0
Specialized Products	219.0		9.5		228.5		39.3
Intersegment eliminations and other							(.7		)
Change in LIFO reserve							5.0
	$	966.2	$	125.2	$	1,091.4	$	111.7
Three Months Ended March 31, 2014
Residential Furnishings	$	432.8	$	15.6	$	448.4	$	46.8
Commercial Products	111.4		5.2		116.6		5.7
Industrial Materials	123.2		57.5		180.7		7.7
Specialized Products	208.1		7.8		215.9		27.6
Intersegment eliminations and other							(1.8		)
Change in LIFO reserve							(.2		)
	$	875.5	$	86.1	$	961.6	$	85.8

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. 

	March 31, 2015		December 31, 2014
Residential Furnishings	$	626.3	$	588.1
Commercial Products	97.6		96.2
Industrial Materials	188.0		200.9
Specialized Products	258.5		260.5
Other (1)	44.8		90.4
Average current liabilities included in segment numbers above	522.8		520.2
Unallocated assets (2)	1,347.1		1,451.4
Difference between average assets and period-end balance sheet	18.1		(67.1		)
Total assets	$	3,103.2	$	3,140.6

(1) Businesses sold or classified as discontinued operations.

(2) Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets.