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IMPAIRMENT CHARGES
 9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  
IMPAIRMENT CHARGES
Impairment charges (pretax) are reported in “Impairments” in the Consolidated Condensed Statements of Operations and are summarized in the following table:
Nine Months Ended September 30,Three Months Ended September 30,
2020201920202019
 Goodwill ImpairmentOther Long-Lived Assets ImpairmentsTotal ImpairmentsOther Long-Lived Assets ImpairmentsGoodwill ImpairmentOther Long-Lived Assets ImpairmentsTotal ImpairmentsOther Long-Lived Assets Impairments
Bedding Products$— $.3 $.3 $4.3 $— $— $— $.8 
Specialized Products25.4 — 25.4 — — — — — 
Furniture, Flooring & Textile Products— .2 .2 1.4 — — — .6 
Unallocated 1
— 3.5 3.5 — — — — — 
Total impairment charges$25.4 $4.0 $29.4 $5.7 $— $— $— $1.4 
1 This is a charge to write off stock associated with a prior year divestiture that filed bankruptcy in 2020.
Goodwill Impairment Testing
We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter. The 2019 goodwill impairment testing indicated no impairments.
The 2020 goodwill impairment testing resulted in a $25.4 non-cash goodwill impairment charge in the second quarter of 2020 with respect to our Hydraulic Cylinders reporting unit, which is a part of the Specialized Products segment. Demand for hydraulic cylinders is dependent upon capital spending for material handling equipment. We began seeing some market softness in the industries served by this reporting unit in 2019, and the fair value of this reporting unit exceeded its carrying value by 29% at December 31, 2019.
The impairment charge reflects the complete write-off of the goodwill associated with the Hydraulic Cylinders reporting unit and will not result in future cash expenditures. Although we do not believe that a triggering event related to the impairment of goodwill or other long-lived assets occurred in the first quarter of 2020, the anticipated longer-term economic impacts of COVID-19 lowered expectations of future revenue and profitability causing its fair value to fall below its carrying
value. We concluded on July 30, 2020, as part of our normal second quarter 2020 annual goodwill impairment testing and in connection with the preparation and review of the second quarter 2020 financial statements, that an impairment charge was required with respect to this reporting unit. We also evaluated other long-lived assets associated with this unit for impairment; no impairments were indicated other than goodwill.
The information below excludes Hydraulic Cylinders, as this unit had no goodwill remaining after the second quarter 2020 impairment.
The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. In general, fair values for our reporting units decreased versus last year due to COVID-19 impacts on future cash flows. If actual results differ materially from estimates used in these calculations, we could incur future impairment charges.
2020
Fair Value over Carrying Value divided by Carrying ValueSeptember 30, 2020 Goodwill Value10-year Compound Annual Growth Rate Range for SalesTerminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 1
$96.1 
  2.1%
3 %
  9.0%
50% - 100% 2
914.3 
2.0 - 3.6
3 
9.0 - 10.0
101% - 300%246.1 
1.6 - 1.7
3 
8.5 - 9.5
301% - 600%123.8 
6.7
3 
9.0
$1,380.3 
1.6% - 6.7%
3 %
8.5% - 10.0%

2019
Fair Value over Carrying Value divided by Carrying ValueDecember 31, 2019 Goodwill Value10-year Compound Annual Growth Rate Range for SalesTerminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 3
$26.0 
5.8%
3 %
   8.0%
50% - 100% 2
855.9 
3.8
3 
8.5 - 9.5
101% - 300%400.9 
1.3 - 5.5
3 
7.5 - 8.0
301% - 600%123.5 
   11.1
3 
   8.5
$1,406.3 
1.3% - 11.1%
3 %
7.5% - 9.5%
1 This category includes one reporting unit, Work Furniture, which had fair value exceeding its carrying value by 25% at September 30, 2020 as compared to 126% in 2019.
2 This category includes two reporting units for 2020 and the Bedding reporting unit for 2019.
•The fair value of our Bedding reporting unit exceeded its carrying value by 68% at September 30, 2020 as compared to 85% in 2019. This unit had $855.1 of goodwill at September 30, 2020.
•The fair value of our Aerospace reporting unit exceeded its carrying value by 51% at September 30, 2020 as compared to 139% in 2019. This unit had $59.2 of goodwill at September 30, 2020.
3 This category consisted of the Hydraulic Cylinders reporting unit which had fair value exceeding its carrying value by 29% at December 31, 2019.
Other long-lived assetsWe test other long-lived assets for recoverability at year end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.