Impairment Charges

Pretax impact of impairment charges is summarized in the following table:



	Year Ended
			2018						2017						2016
	Goodwill Impairment		Other Long-Lived Asset Impairments		Total Impairments		Goodwill Impairment		Other Long-Lived Asset Impairments		Total Impairments		Goodwill Impairment		Other Long-Lived Asset Impairments		Total Impairments
Residential Products	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	.4	$	.4
Industrial Products	—		.3		.3		1.3		3.6		4.9		—		—		—
Furniture Products	—		5.1		5.1		—		—		—		—		—		—
Specialized Products	—		—		—		—		—		—		3.7		—		3.7
Total impairment charges	$	—	$	5.4	$	5.4	$	1.3	$	3.6	$	4.9	$	3.7	$	.4	$	4.1

Other Long-Lived Assets

As discussed in Note A, we 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. Fair value and the resulting impairment charges noted above were based primarily upon offers from potential buyers or third party estimates of fair value less selling costs.

In 2018, management approved the 2018 Restructuring Plan, as discussed in Note F, which resulted in impairment charges of $5.1.

In 2017 and 2016, impairments were primarily associated with selected operations that reached held-for-sale status, as discussed below.

Goodwill

As discussed in Note A, goodwill is required to be tested for impairment at the reporting unit level (the business groups that are one level below the operating segments) as triggering events may occur, or at least annually. We perform our annual goodwill impairment review in the second quarter of each year. We concluded that the 2018 Restructuring Plan (as discussed in Note F) was not a triggering event, and believe that it is more likely than not that the fair values for the reporting units associated with this 2018 Restructuring Plan exceed their carrying values.

2018 Goodwill Impairment Review

The 2018 annual goodwill impairment review indicated no goodwill impairments.

For the 2018 testing, we elected to test goodwill for impairment in all reporting units using a quantitative approach. The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the table below:



Fair Value over Carrying Value divided by Carrying Value	December 31, 2018 Goodwill Value		10-year Compound Annual Growth Rate Range for Sales	Terminal Values Long- term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 100% ¹	$	180.7	4.7% - 5.2%	3.0	%	9.0% - 9.5%
101% - 300%	502.5		1.8% - 5.0%	3.0	%	8.5% - 10.0%
301% - 600%	150.6		5.7% - 12.4%	3.0	%	9.0% - 10.0%
	$	833.8	1.8% - 12.4%	3.0	%	8.5% - 10.0%

¹All reporting units in this category exceeded 90%, except for the Hydraulic Cylinders reporting unit (acquired in 2018), to which carrying value approximates fair value.

2017 Goodwill Impairment Review

The 2017 annual goodwill impairment review indicated no goodwill impairments.

We performed a Step Zero Analysis for our annual goodwill review for each of our reporting units and we considered i) the excess in fair value of the reporting unit over its carrying amount from the most recent quantitative analysis, ii) macroeconomic conditions, iii) industry and market trends, and iv) overall financial performance. We concluded that it was more likely than not that the fair value of all reporting units, except for two, exceeded their carrying values. Because sales and profits for two reporting units were less than expected, we performed a quantitative analysis for our Work Furniture and Aerospace reporting units under the two-step model. These reporting units were determined to have fair values in excess of their carrying amounts of at least 75%. Goodwill associated with these two reporting units was $157.4 at December 31, 2017.

During the third quarter of 2017, two Drawn Wire operations within the Industrial Products segment reached held-for-sale status. Because fair value less costs to sell had fallen below the carrying amount, we fully impaired $1.3 of goodwill and $3.3 of other long-lived assets. During 2018, one operation was closed. The other operation continues to operate and no longer meets the held-for-sale criteria.

2016 Goodwill Impairment Review

Because all reporting unit fair values exceeded their respective carrying values (fair value over carrying value divided by carrying value) by a range of 115% to 600% during the 2015 testing (performed on a quantitative basis for all reporting units), we performed a qualitative assessment (Step Zero Analysis) for our annual goodwill impairment review in the second quarter of 2016. Among other things, we considered i) the excess in fair value of the reporting unit over its carrying amount from the most recent quantitative analysis, ii) macroeconomic conditions, iii) industry and market trends, and iv) overall financial performance.

Based on the Step Zero Analysis we concluded that it was more likely than not that the fair value of the reporting units exceeded their carrying amount, except for our CVP reporting unit.

With regard to our CVP reporting unit, in the second quarter of 2016 we sold one of our two remaining businesses. Additionally, real estate associated with the remaining CVP business reached held-for-sale status during the second quarter of 2016. As a result of these two events, the fair value of the CVP reporting unit (consisting of one remaining business) had fallen below its carrying amount, and we fully impaired the remaining $3.7 of goodwill for this reporting unit. As discussed in Note C, we completed the sale of this remaining business in 2017.