XML 93 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information 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, as well as produces private-label finished mattresses for bedding brands. We also produce or distribute flooring underlayment, fabric, and geo components.
•
Industrial Products: This segment primarily supplies 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: This segment supplies a wide range of components for residential and work furniture manufacturers, as well as select lines of private-label finished furniture and adjustable bed bases.
•
Specialized Products: This segment supplies 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 who has accountability to and maintains regular contact with our 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 for the periods presented are as follows:
 
Year Ended December 31
 
   Trade 1
Sales
 
Inter-
Segment
Sales
 
Total Segment
Sales
 
EBIT
 
Depreciation and Amortization
2019
 
 
 
 
 
 
 
 
 
Residential Products
$
2,331.0

 
$
13.2

 
$
2,344.2

 
$
170.6

 
$
104.2

Industrial Products
295.6

 
299.6

 
595.2

 
97.5

 
11.0

Furniture Products
1,059.1

 
9.5

 
1,068.6

 
73.4

 
17.8

Specialized Products
1,066.8

 
3.2

 
1,070.0

 
170.5

 
41.8

Intersegment eliminations and other 3
 
 
 
 
 
 
1.4

 
17.1

 
$
4,752.5

 
$
325.5

 
$
5,078.0

 
$
513.4

 
$
191.9

2018
 
 
 
 
 
 
 
 
 
Residential Products
$
1,703.7

 
$
17.1

 
$
1,720.8

 
$
132.8

 
$
46.6

Industrial Products
367.4

 
295.0

 
662.4

 
68.4

 
10.3

Furniture Products
1,142.1

 
13.8

 
1,155.9

 
49.6

 
17.4

Specialized Products
1,056.3

 
2.7

 
1,059.0

 
189.0

 
39.0

Intersegment eliminations and other 3
 
 
 
 
 
 
(2.9
)
 
22.8

 
$
4,269.5

 
$
328.6

 
$
4,598.1

 
$
436.9

 
$
136.1

2017
 
 
 
 
 
 
 
 
 
Residential Products
$
1,620.2

 
$
18.6

 
$
1,638.8

 
$
184.0

 
$
45.8

Industrial Products
291.7

 
253.9

 
545.6

 
21.0

 
10.2

Furniture Products
1,096.4

 
16.8

 
1,113.2

 
81.5

 
16.2

Specialized Products
935.5

 
7.1

 
942.6

 
195.6

 
31.2

Intersegment eliminations and other 2,3
 
 
 
 
 
 
(14.2
)
 
22.5

 
$
3,943.8

 
$
296.4

 
$
4,240.2

 
$
467.9

 
$
125.9



1 See Note B for revenue by product line.
2 2017 EBIT: Included in other is a $15.3 pension settlement charge. (See Note N).
3 Depreciation and amortization: Other relates to non-operating assets (assets not included in segment assets) and is allocated to segment EBIT as discussed above.

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
2019
 
 
 
 
 
Residential Products
$
795.6

 
$
43.8

 
$
1,297.2

Industrial Products
168.8

 
27.3

 
—

Furniture Products
239.1

 
8.0

 
—

Specialized Products
346.4

 
29.3

 
.2

Average current liabilities included in segment numbers above
744.6

 
—

 
—

Unallocated assets and other
2,650.7

 
34.7

 
—

Difference between average assets and year-end balance sheet
(128.8
)
 
—

 
—

 
$
4,816.4

 
$
143.1

 
$
1,297.4

2018
 
 
 
 
 
Residential Products
$
609.4

 
$
48.0

 
$
6.0

Industrial Products
163.8

 
9.6

 
—

Furniture Products
279.8

 
19.7

 
—

Specialized Products
342.5

 
45.0

 
79.4

Average current liabilities included in segment numbers above
661.8

 
—

 
—

Unallocated assets and other
1,278.0

 
37.3

 
—

Difference between average assets and year-end balance sheet
46.7

 
—

 
—

 
$
3,382.0

 
$
159.6

 
$
85.4

2017
 
 
 
 
 
Residential Products
$
554.6

 
$
60.5

 
$
33.6

Industrial Products
150.0

 
14.3

 
—

Furniture Products
245.7

 
20.2

 
14.3

Specialized Products
271.7

 
51.7

 
—

Average current liabilities included in segment numbers above
557.0

 
—

 
—

Unallocated assets and other
1,693.1

 
12.7

 
—

Difference between average assets and year-end balance sheet
78.7

 
—

 
—

 
$
3,550.8

 
$
159.4

 
$
47.9


Trade sales and tangible long-lived assets are presented below, based on the geography of manufacture.
 
Year Ended December 31
 
2019
 
2018
 
2017
Trade sales
 
 
 
 
 
Foreign sales
 
 
 
 
 
Europe
$
508.5

 
$
525.6

 
$
475.3

China
449.9

 
494.7

 
481.6

Canada
312.8

 
286.8

 
265.1

Mexico
256.0

 
186.1

 
148.5

Other
92.6

 
94.8

 
85.5

Total foreign sales
1,619.8

 
1,588.0

 
1,456.0

    United States
3,132.7

 
2,681.5

 
2,487.8

Total trade sales
$
4,752.5

 
$
4,269.5

 
$
3,943.8

 
 
 
 
 
 
Tangible long-lived assets
 
 
 
 
 
Foreign tangible long-lived assets
 
 
 
 
 
Europe
$
160.2

 
$
167.6

 
$
157.4

China
51.6

 
55.5

 
54.7

Canada
36.4

 
38.0

 
39.9

Mexico
10.1

 
10.1

 
6.5

Other
14.7

 
16.0

 
13.0

Total foreign tangible long-lived assets
273.0

 
287.2

 
271.5

United States
557.8

 
441.3

 
392.4

Total tangible long-lived assets
$
830.8

 
$
728.5

 
$
663.9