Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

4. SEGMENT INFORMATION

We have four operating segments that are generally focused on broad end-user markets for our diversified products. Residential Furnishings derives its revenues from components for bedding, furniture and other furnishings, as well as related consumer products. Commercial Fixturing & Components derives its revenues from retail store fixtures, displays and components for office and institutional furnishings. Industrial Materials derives its revenues from drawn steel wire, specialty wire products and welded steel tubing sold to trade customers as well as our other segments. Specialized Products derives its revenues from automotive seating components, specialized machinery and equipment, and commercial vehicle interiors.

Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Each reportable segment has a senior operating vice-president that reports to 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 earnings from operations before interest and income 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 and EBIT. 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
Six Months ended June 30, 2011:
Residential Furnishings	$	922.8	$	4.6	$	927.4	$	83.3
Commercial Fixturing & Components		265.1		2.7		267.8		15.7
Industrial Materials		311.8		127.6		439.4		27.6
Specialized Products		341.3		20.1		361.4		39.5
Intersegment eliminations								(3.8	)
Change in LIFO reserve								(9.0	)
	$	1,841.0	$	155.0	$	1,996.0	$	153.3
Six Months ended June 30, 2010:
Residential Furnishings	$	887.7	$	4.1	$	891.8	$	94.0
Commercial Fixturing & Components		281.4		2.1		283.5		16.6
Industrial Materials		247.6		124.2		371.8		30.2
Specialized Products		274.0		18.4		292.4		27.2
Intersegment eliminations								(1.4	)
Change in LIFO reserve								(4.3	)
	$	1,690.7	$	148.8	$	1,839.5	$	162.3
Three Months ended June 30, 2011:
Residential Furnishings	$	465.4	$	2.3	$	467.7	$	41.2
Commercial Fixturing & Components		137.3		1.5		138.8		7.5
Industrial Materials		166.3		62.8		229.1		13.6
Specialized Products		176.2		10.3		186.5		21.4
Intersegment eliminations								(1.1	)
Change in LIFO reserve								(3.5	)
	$	945.2	$	76.9	$	1,022.1	$	79.1
Three Months ended June 30 , 2010:
Residential Furnishings	$	455.4	$	2.0	$	457.4	$	44.9
Commercial Fixturing & Components		140.7		1.1		141.8		8.7
Industrial Materials		132.3		62.4		194.7		16.8
Specialized Products		145.9		10.1		156.0		18.8
Intersegment eliminations								(1.9	)
Change in LIFO reserve								(2.2	)
	$	874.3	$	75.6	$	949.9	$	85.1

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, 2011		December 31, 2010
Residential Furnishings	$	629.7	$	645.3
Commercial Fixturing & Components		180.8		185.2
Industrial Materials		213.8		211.6
Specialized Products		224.7		207.9
Average current liabilities included in segment numbers above		413.4		381.1
Unallocated assets (1)		1,372.9		1,448.6
Difference between average assets and period-end balance sheet		59.4		(78.7	)
Total assets	$	3,094.7	$	3,001.0

(1) Primarily goodwill, other intangibles, cash and notes receivable