Segment reporting

6 Months Ended

Jun. 29, 2019

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 tile and other products including natural stone, quartz and porcelain slab countertops, which it distributes primarily in North America, Europe, Brazil and Russia through various selling channels, which include Company-owned stores, independent distributors, independent retailers, home centers, commercial contractors and commercial end users. The Flooring NA Segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet cushion, wood flooring, laminate and vinyl products, including luxury vinyl tile (LVT), which it distributes to its residential and commercial sales channels 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 independent floor covering retailers, independent distributors, home centers, mass merchandisers, department stores, shop at home, online retailers, buying groups, commercial contractors and commercial end users. The Flooring ROW Segment designs, manufactures, sources, licenses and markets laminate, wood flooring, carpets, roofing elements, insulation boards, medium-density fiberboard (“MDF”), chipboards, other wood products and vinyl products, including LVT, which it distributes primarily in Europe, Russia, Australia and New Zealand through various selling channels, which include independent floor covering retailers, independent distributors, company-owned distributors, home centers, commercial contractors and commercial end users.

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.

Segment information is as follows:



	Three Months Ended					Six Months Ended
	June 29, 2019			June 30, 2018		June 29, 2019		June 30, 2018
Net sales:
Global Ceramic segment	$	958,031		929,297		1,856,383		1,805,845
Flooring NA segment	983,439			1,057,570		1,905,419		2,007,928
Flooring ROW segment	643,015			590,147		1,265,173		1,175,443
Intersegment sales	—			—		—		—
Total	$	2,584,485		2,577,014		5,026,975		4,989,216

Operating income (loss):
Global Ceramic segment	$	118,141		134,760		202,476		248,177
Flooring NA segment	59,502			100,662		60,151		175,410
Flooring ROW segment	101,533			100,166		191,964		189,226
Corporate and intersegment eliminations	(12,316		)	(9,281	)	(22,401	)	(18,107	)
Total	$	266,860		326,307		432,190		594,706



	At June 29, 2019		At December 31, 2018
Assets:
Global Ceramic segment	$	5,661,364	5,194,030
Flooring NA segment	4,024,428		3,938,639
Flooring ROW segment	3,858,264		3,666,617
Corporate and intersegment eliminations	262,046		299,837
Total	$	13,806,102	13,099,123