Segment Reporting

The Company has three reporting segments: the Global Ceramic segment, the Flooring NA segment and the Flooring ROW segment. The Global Ceramic segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, quartz, porcelain slab countertops and other products, which it distributes primarily in North America, Europe and Russia through its network of regional distribution centers and Company-operated service centers using company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. The Flooring NA segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, hardwood, laminate and vinyl products, including luxury vinyl tile ("LVT"), which it distributes through its network of regional distribution centers and satellite warehouses using company-operated trucks, common carrier or rail transportation. The segment’s product lines are sold through various selling channels, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. The Flooring ROW segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard ("MDF"), chipboards, other wood products, sheet vinyl and LVT, which it distributes primarily in Europe and Russia through various selling channels, which include retailers, independent distributors and home centers.

The accounting policies for each operating segment are consistent with the Company’s policies for the consolidated financial statements. Amounts disclosed for each segment are prior to any elimination or consolidation entries. Corporate general and administrative expenses attributable to each segment are estimated and allocated accordingly. Segment performance is evaluated based on operating income. No single customer accounted for more than 10% of net sales for the years ended December 31, 2017, 2016 or 2015.

Segment information is as follows:



	2017			2016		2015
Net sales:
Global Ceramic	$	3,405,100		3,174,706		3,012,859
Flooring NA	4,010,858			3,865,746		3,602,112
Flooring ROW	2,075,452			1,918,635		1,456,898
Intersegment sales	(120		)	—		(306	)
	$	9,491,290		8,959,087		8,071,563
Operating income (loss):
Global Ceramic	$	525,401		478,448		414,154
Flooring NA	540,337			505,115		264,271
Flooring ROW	329,054			333,091		203,370
Corporate and intersegment eliminations	(40,619		)	(36,711	)	(44,229	)
	$	1,354,173		1,279,943		837,566
Depreciation and amortization:
Global Ceramic	$	161,913		135,370		118,801
Flooring NA	159,980			148,067		137,064
Flooring ROW	114,794			116,048		97,239
Corporate	9,985			9,982		9,543
	$	446,672		409,467		362,647
Capital expenditures (excluding acquisitions):
Global Ceramic	$	310,650		263,401		247,829
Flooring NA	355,941			248,843		148,598
Flooring ROW	221,763			144,207		95,447
Corporate	17,644			15,674		11,783
	$	905,998		672,125		503,657
Assets:
Global Ceramic	$	4,838,310		4,024,859		3,846,133
Flooring NA	3,702,137			3,410,856		3,164,525
Flooring ROW	3,245,424			2,689,592		2,805,246
Corporate and intersegment eliminations	308,982			105,289		118,496
	$	12,094,853		10,230,596		9,934,400
Geographic net sales:
United States	$	6,009,165		5,842,683		5,399,561
All other countries	3,482,125			3,116,404		2,672,002
	$	9,491,290		8,959,087		8,071,563
Long-lived assets (1):
United States	$	3,339,363		3,092,902		2,945,783
Belgium	1,705,947			1,371,397		1,377,533
All other countries	1,696,939			1,180,475		1,117,167
	$	6,742,249		5,644,774		5,440,483
Net sales by product categories (2):
Soft surface	$	3,655,525		3,414,956		3,056,946
Tile	3,485,245			3,258,136		3,094,389
Laminate and wood	2,350,520			2,285,995		1,920,228
	$	9,491,290		8,959,087		8,071,563


(1)	Long-lived assets are composed of property, plant and equipment, net, and goodwill.


(2)	The soft surface product category includes carpets, rugs, carpet pad, LVT and sheet vinyl. The tile product category includes ceramic tile, porcelain tile and natural stone. The laminate and wood product category includes laminate, hardwood, roofing elements, insulation boards, MDF, chipboards, and licensing.