Segment reporting

9 Months Ended

Sep. 28, 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					Nine Months Ended
	September 28, 2019			September 29, 2018		September 28, 2019		September 29, 2018
Net sales:
Global Ceramic segment	$	916,422		885,773		2,772,805		2,691,618
Flooring NA segment	1,001,908			1,047,540		2,907,327		3,055,468
Flooring ROW segment	600,855			612,487		1,866,028		1,787,930
Intersegment sales	—			—		—		—
Total	$	2,519,185		2,545,800		7,546,160		7,535,016

Operating income (loss):
Global Ceramic segment	$	84,410		118,716		286,886		366,893
Flooring NA segment	80,223			93,369		140,374		268,779
Flooring ROW segment	84,428			84,108		276,392		273,334
Corporate and intersegment eliminations	(8,841		)	(8,949	)	(31,242	)	(27,056	)
Total	$	240,220		287,244		672,410		881,950



	At September 28, 2019		At December 31, 2018
Assets:
Global Ceramic segment	$	5,385,279	5,194,030
Flooring NA segment	4,020,205		3,938,639
Flooring ROW segment	3,736,296		3,666,617
Corporate and intersegment eliminations	250,982		299,837
Total	$	13,392,762	13,099,123