SEGMENT INFORMATION

Our reportable segments are the same as our operating segments, which also correspond with our management structure. In conjunction with a change in executive officers, our management structure and all related internal reporting changed as of January 1, 2017. As a result, the composition of our four segments also changed to reflect the new structure.

The new structure is largely the same as prior years except the Home Furniture Group moved from Residential Products to Furniture Products (formerly Commercial Products) and the Machinery Group moved from Specialized Products to Residential Products. In addition, the changes in LIFO reserve will now be recognized within the segments to which they relate (primarily Industrial Products). Previously segment EBIT (Earnings Before Interest and Taxes) reflected the FIFO basis of accounting for certain inventories and an adjustment to the LIFO basis for these inventories was made at the consolidated financial statement level. These changes were retrospectively applied to all prior periods presented. The methods and assumptions that we use in estimating our LIFO reserve did not change (See Note 3 - Inventories).

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


•	Residential Products: This segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products. We also produce or distribute carpet cushion, fabric, and geo components.


•	Industrial Products: These operations primarily supply steel rod and drawn steel wire to our other operations and to external customers. Our customers use this wire to make bedding, mechanical springs, and many other end products.


•	Furniture Products: Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private-label finished furniture, adjustable bed bases, fashion beds, and bed frames.


•	Specialized Products: From this segment we supply mechanical and pneumatic lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute titanium and nickel tubing and tube assemblies for the aerospace industry.

Each reportable segment has an executive vice president that reports to the chief executive officer, who is the chief operating decision maker (CODM). The operating results and financial information reported through the segment structure are regularly reviewed and used by the CODM 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. 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 or other appropriate metrics. 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.



	Trade Sales		Inter- Segment Sales		Total Sales		EBIT
Three Months Ended June 30, 2017
Residential Products	$	407.8	$	4.2	$	412.0	$	50.2
Industrial Products	75.9		63.3		139.2		7.1
Furniture Products	267.2		4.4		271.6		20.3
Specialized Products	238.4		1.7		240.1		44.1
Intersegment eliminations and other							.6
	$	989.3	$	73.6	$	1,062.9	$	122.3
Three Months Ended June 30, 2016
Residential Products	$	408.0	$	4.2	$	412.2	$	52.2
Industrial Products	79.9		70.2		150.1		13.0
Furniture Products	235.6		17.3		252.9		24.6
Specialized Products	235.4		1.8		237.2		54.7
Intersegment eliminations and other							2.0
	$	958.9	$	93.5	$	1,052.4	$	146.5



	Trade Sales		Inter- Segment Sales		Total Sales		EBIT
Six Months Ended June 30, 2017
Residential Products	$	799.1	$	9.0	$	808.1	$	92.7
Industrial Products	145.7		128.9		274.6		15.9
Furniture Products	532.0		10.7		542.7		40.6
Specialized Products	472.8		3.6		476.4		87.1
Intersegment eliminations and other							1.9
	$	1,949.6	$	152.2	$	2,101.8	$	238.2
Six Months Ended June 30, 2016
Residential Products	$	798.2	$	9.1	$	807.3	$	85.3
Industrial Products	157.0		150.3		307.3		33.1
Furniture Products	486.9		38.3		525.2		56.1
Specialized Products	455.2		3.5		458.7		98.2
Intersegment eliminations and other							.9
	$	1,897.3	$	201.2	$	2,098.5	$	273.6

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, 2017		December 31, 2016
Residential Products	$	542.4	$	527.2
Industrial Products	144.2		147.4
Furniture Products	234.5		219.4
Specialized Products	269.7		248.7
Other (1)	—		.2
Average current liabilities included in segment numbers above	534.9		495.9
Unallocated assets (2)	1,461.2		1,378.3
Difference between average assets and period-end balance sheet	94.6		(33.0		)
Total assets	$	3,281.5	$	2,984.1


(1)	Businesses sold or classified as discontinued operations.


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