Segment Information

We have four operating segments that supply a wide range of products:


•	Residential Products: This segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products. We also produce or distribute flooring underlayment, fabric, and geo components.


•	Industrial Products: This segment primarily supplies steel rod and drawn steel wire to our other operations and to external customers. Our customers use this wire to make mechanical springs and many other end products.


•	Furniture Products: This segment supplies a wide range of components for residential and work furniture manufacturers, as well as select lines of private-label finished furniture, adjustable bed bases, fashion beds, and bed frames.


•	Specialized Products: This segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries.

For the periods presented, our reportable segments were the same as our operating segments, which also corresponded with our management structure. Each reportable segment had an executive vice president that reported to the chief executive officer, who is the chief operating decision maker (CODM). The operating results and financial information reported through the segment structure are regularly reviewed and used by the CODM to evaluate segment performance, allocate overall resources and determine management incentive compensation.

The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. We evaluate performance based on Earnings Before Interest and 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 or other appropriate metrics. 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 for the periods presented are as follows:



	Year Ended December 31
	Trade ² Sales		Inter- Segment Sales		Total Segment Sales		EBIT
2018
Residential Products	$	1,703.7	$	17.1	$	1,720.8	$	132.8
Industrial Products	367.4		295.0		662.4		68.4
Furniture Products	1,142.1		13.8		1,155.9		49.6
Specialized Products	1,056.3		2.7		1,059.0		189.0
Intersegment eliminations and other							(2.9		)
	$	4,269.5	$	328.6	$	4,598.1	$	436.9
2017
Residential Products	$	1,620.2	$	18.6	$	1,638.8	$	184.0
Industrial Products	291.7		253.9		545.6		21.0
Furniture Products	1,096.4		16.8		1,113.2		81.5
Specialized Products	935.5		7.1		942.6		195.6
Intersegment eliminations and other ¹							(14.2		)
	$	3,943.8	$	296.4	$	4,240.2	$	467.9
2016
Residential Products	$	1,571.4	$	17.2	$	1,588.6	$	167.5
Industrial Products	289.4		293.1		582.5		65.3
Furniture Products	989.3		59.3		1,048.6		106.6
Specialized Products	899.8		6.5		906.3		181.4
Intersegment eliminations and other							1.2
	$	3,749.9	$	376.1	$	4,126.0	$	522.0

¹ Includes $15.3 of pension settlement charge in year ended December 31, 2017 (See Note N).

² See Note B for revenue by product line.

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 year. Acquired companies’ long-lived assets as disclosed below include property, plant and equipment and other long-term assets.



	Year Ended December 31
	Assets			Additions to Property, Plant and Equipment		Acquired Companies’ Long-Lived Assets		Depreciation And Amortization
2018
Residential Products	$	609.4		$	48.0	$	6.0	$	46.6
Industrial Products	163.8			9.6		—		10.3
Furniture Products	279.8			19.7		—		17.4
Specialized Products	342.5			45.0		79.4		39.0
Average current liabilities included in segment numbers above	661.8			—		—		—
Unallocated assets and other ¹	1,278.0			37.3		—		22.8
Difference between average assets and year-end balance sheet	46.7			—		—		—
	$	3,382.0		$	159.6	$	85.4	$	136.1
2017
Residential Products	$	554.6		$	60.5	$	33.6	$	45.8
Industrial Products	150.0			14.3		—		10.2
Furniture Products	245.7			20.2		14.3		16.2
Specialized Products	271.7			51.7		—		31.2
Average current liabilities included in segment numbers above	557.0			—		—		—
Unallocated assets and other ¹	1,693.1			12.7		—		22.5
Difference between average assets and year-end balance sheet	78.7			—		—		—
	$	3,550.8		$	159.4	$	47.9	$	125.9
2016
Residential Products	$	527.2		$	32.4	$	11.2	$	42.9
Industrial Products	147.4			10.1		—		11.8
Furniture Products	219.4			16.6		—		14.4
Specialized Products	248.7			42.2		13.7		29.7
Average current liabilities included in segment numbers above	495.9			—		—		—
Unallocated assets and other ¹	1,378.5			22.7		—		16.6
Difference between average assets and year-end balance sheet	(33.0		)	—		—		—
	$	2,984.1		$	124.0	$	24.9	$	115.4

¹ Unallocated assets consist primarily of goodwill, other intangibles, cash, businesses sold and deferred tax assets. Unallocated depreciation and amortization consists primarily of depreciation of non-operating assets and amortization of debt issuance costs.

Trade sales and tangible long-lived assets are presented below, based on the geography of manufacture.



	Year Ended December 31
	2018		2017		2016
Trade sales
Foreign sales
Europe	$	525.6	$	475.3	$	445.2
China	494.7		481.6		420.0
Canada	286.8		265.1		215.1
Mexico	186.1		148.5		132.8
Other	94.8		85.5		69.4
Total foreign sales	1,588.0		1,456.0		1,282.5
United States	2,681.5		2,487.8		2,467.4
Total trade sales	$	4,269.5	$	3,943.8	$	3,749.9

Tangible long-lived assets
Foreign tangible long-lived assets
Europe	$	167.6	$	157.4	$	128.6
China	55.5		54.7		45.5
Canada	38.0		39.9		29.6
Mexico	10.1		6.5		6.3
Other	16.0		13.0		12.7
Total foreign tangible long-lived assets	287.2		271.5		222.7
United States	441.3		392.4		342.8
Total tangible long-lived assets	$	728.5	$	663.9	$	565.5