RESTRUCTURING AND IMPAIRMENT CHARGES

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND IMPAIRMENT CHARGES

RESTRUCTURING AND IMPAIRMENT CHARGES

We implemented various cost reduction initiatives to improve our operating cost structures in the periods presented. These cost initiatives have, among other actions, included workforce reductions and the closure or consolidation of certain operations. Except for the 2018 Restructuring Plan (Plan) discussed below, none of these initiatives has individually resulted in a material charge to earnings.

In December 2018, we committed to the Plan primarily associated with our Furniture, Flooring & Textiles Products and Bedding Products segments, including the Home Furniture Group (which produces furniture components for the upholstered furniture industry) and a portion of the Adjustable Bed business (which supplied ornamental beds, bed frames and other sleep accessories sold to retailers). Both of these businesses had underperformed expectations primarily from weaker demand and higher raw material costs. These restructuring activities were substantially complete as of December 31, 2019.

In 2019, we modified the Plan to include four small facilities in the Bedding Products segment, most of which were substantially complete by the end of the year. All restructuring activities with this Plan are materially complete. The following table presents information associated with this Plan:

	Total Amount Incurred to Date		Three Months Ended   March 31, 2020		Total Incurred Full Year 2019 and 2018
2018 Restructuring Plan
Restructuring and restructuring-related	$	19.4	$	.7	$	18.7
Impairment costs associated with this plan	12.7		—		12.7
	$	32.1	$	.7	$	31.4
Amount of total that represents cash charges	$	15.5	$	.6	$	14.9

The table below presents all restructuring and restructuring-related activity for the periods presented; the majority of the 2020 costs are related to the Plan:

	Three Months Ended March 31,
	2020		2019
Charged to other (income) expense, net:
Severance and other restructuring costs	$	.6	$	1.2
Charged to cost of goods sold:
Inventory obsolescence and other	.1		2.4
Total restructuring and restructuring-related costs	$	.7	$	3.6
Amount of total that represents cash charges	$	.6	$	1.2

Restructuring and restructuring-related charges by segment were as follows:

	Three Months Ended March 31,
	2020		2019
Bedding Products	$	.6	$	2.9
Furniture, Flooring & Textile Products	.1		.7
Total	$	.7	$	3.6

The accrued liability associated with our total restructuring initiatives consisted of the following:

	Balance at December 31, 2019		Add: 2020 Charges		Less: 2020 Payments		Balance at March 31, 2020
Termination benefits	$	3.5	$	.2	$	1.2	$	2.5
Other restructuring costs	.7		.4		.5		.6
	$	4.2	$	.6	$	1.7	$	3.1

Impairment charges

Impairment charges (pretax) are reported in “Impairments” in the Consolidated Condensed Statements of Operations and are summarized in the following table:

	Three Months Ended March 31,
	2020		2019
	Other Long-Lived Assets Impairments		Other Long-Lived Assets Impairments
Bedding Products	$	—	$	2.9
Unallocated 1	3.5		—
Total impairment charges	$	3.5	$	2.9

¹ This is a charge to write off stock associated with a business divested in 2008.

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, third-party estimates of fair value less selling costs or estimated future cash flows.