SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2016

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. During the fourth quarter of 2015, our logistics operations, which primarily include intercompany transportation activity, were moved from Residential Furnishings to Industrial Materials. This segment change was 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 and steel rod

• Specialized Products—automotive seating components, tubing and sub-assemblies 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 executive officer, who is 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 from continuing operations are shown in the following tables.

	External Sales		Inter- Segment Sales		Total Sales		EBIT
Three Months Ended June 30, 2016
Residential Furnishings	$	487.4	$	6.2	$	493.6	$	65.5
Commercial Products	136.8		16.3		153.1		10.9
Industrial Materials	79.9		70.2		150.1		16.6
Specialized Products	254.8		10.7		265.5		58.3
Intersegment eliminations and other							2.5
Change in LIFO reserve							(7.3		)
	$	958.9	$	103.4	$	1,062.3	$	146.5
Three Months Ended June 30, 2015
Residential Furnishings	$	516.8	$	7.5	$	524.3	$	50.7
Commercial Products	135.4		24.1		159.5		10.8
Industrial Materials	111.7		88.4		200.1		15.3
Specialized Products	233.4		9.8		243.2		37.7
Intersegment eliminations and other							(.3		)
Change in LIFO reserve							5.0
	$	997.3	$	129.8	$	1,127.1	$	119.2

	External Sales		Inter- Segment Sales		Total Sales		EBIT
Six Months Ended June 30, 2016
Residential Furnishings	$	968.8	$	13.7	$	982.5	$	113.2
Commercial Products	278.1		36.5		314.6		24.7
Industrial Materials	157.0		150.3		307.3		36.7
Specialized Products	493.4		21.1		514.5		104.6
Intersegment eliminations and other							1.7
Change in LIFO reserve							(7.3		)
	$	1,897.3	$	221.6	$	2,118.9	$	273.6
Six Months Ended June 30, 2015
Residential Furnishings	$	1,022.8	$	15.1	$	1,037.9	$	102.8
Commercial Products	258.9		41.6		300.5		18.8
Industrial Materials	229.4		189.9		419.3		23.3
Specialized Products	452.4		19.3		471.7		77.0
Intersegment eliminations and other							(1.0		)
Change in LIFO reserve							10.0
	$	1,963.5	$	265.9	$	2,229.4	$	230.9

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. 

	June 30, 2016		December 31, 2015
Residential Furnishings	$	602.2	$	623.7
Commercial Products	121.6		110.2
Industrial Materials	151.0		186.7
Specialized Products	266.9		256.4
Other (1)	.4		6.3
Average current liabilities included in segment numbers above	488.0		516.6
Unallocated assets (2)	1,381.7		1,387.0
Difference between average assets and period-end balance sheet	20.0		(123.2		)
Total assets	$	3,031.8	$	2,963.7

(1) Businesses sold or classified as discontinued operations.

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