SEGMENT INFORMATION

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 flooring underlayment, 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 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 lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries.

Our reportable segments are the same as our operating segments, which also correspond with our management structure. 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.

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 Earnings Before Interest and 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 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 September 30, 2018
Residential Products	$	446.5	$	3.4	$	449.9	$	43.0
Industrial Products	97.4		76.0		173.4		25.2
Furniture Products	294.1		3.9		298.0		14.0
Specialized Products	253.5		.7		254.2		43.5
Intersegment eliminations and other							(1.3		)
	$	1,091.5	$	84.0	$	1,175.5	$	124.4
Three Months Ended September 30, 2017
Residential Products	$	426.7	$	4.5	$	431.2	$	50.5
Industrial Products	71.2		63.8		135.0		1.1
Furniture Products	284.0		3.7		287.7		24.5
Specialized Products	227.8		1.9		229.7		34.2
Intersegment eliminations and other							(1.1		)
	$	1,009.7	$	73.9	$	1,083.6	$	109.2



	Trade Sales		Inter- Segment Sales		Total Sales		EBIT
Nine Months Ended September 30, 2018
Residential Products	$	1,283.4	$	12.7	$	1,296.1	$	118.0
Industrial Products	275.8		220.5		496.3		47.6
Furniture Products	866.8		10.4		877.2		48.3
Specialized Products	796.8		2.0		798.8		141.5
Intersegment eliminations and other							(2.5		)
	$	3,222.8	$	245.6	$	3,468.4	$	352.9
Nine Months Ended September 30, 2017
Residential Products	$	1,225.8	$	13.5	$	1,239.3	$	143.2
Industrial Products	216.9		192.7		409.6		17.0
Furniture Products	816.0		14.4		830.4		65.1
Specialized Products	700.6		5.5		706.1		121.3
Intersegment eliminations and other							.8
	$	2,959.3	$	226.1	$	3,185.4	$	347.4

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 periods presented.



	September 30, 2018		December 31, 2017
Residential Products	$	605.2	$	554.6
Industrial Products	164.4		150.0
Furniture Products	281.4		245.7
Specialized Products	340.3		271.7
Average current liabilities included in segment numbers above	641.7		557.0
Unallocated assets ¹	1,391.3		1,693.1
Difference between average assets and period-end balance sheet	124.8		78.7
Total assets	$	3,549.1	$	3,550.8

¹Unallocated assets consist primarily of goodwill, other intangibles, cash, businesses sold and deferred tax assets.