Restructuring and Restructuring Related Charges

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Restructuring Related Charges

Restructuring and Restructuring-Related 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 as discussed below, none of these initiatives has individually resulted in a material charge to earnings.

As of January 1, 2021, we changed our method for valuing certain inventories (primarily domestic steel-related inventories) to the FIFO cost method from the LIFO cost method. The effects of this change have been retrospectively applied to all periods presented. See Note A for additional information.

In response to the effect the COVID-19 pandemic had on the nature and focus of our operations during 2020, we incurred $6.5 severance expense, primarily for permanent workforce reductions associated with changes in management and organizational structure.

We incurred $4.1 of restructuring and restructuring-related costs in 2019 through 2021 concluding the 2018 Restructuring Plan (Plan) which was substantially complete by the end of 2019. This Plan was primarily associated with our Furniture, Flooring & Textile Products and Bedding Products segments, the most significant of which was the exit of our Fashion Bed business. In 2021, we sold the remaining real estate associated with our exited Fashion Bed business and realized a $28.2 gain on sale this property that is not reflected in the tables below. We also incurred impairment costs of $8.1 in 2019 and 2020 associated with this Plan. See Note C for additional information.

The table below presents all restructuring and restructuring-related activity for the periods presented:

	Year Ended December 31
	2021		2020		2019
Charged to other (income) expense, net:
Severance and other restructuring costs	$	(.3)	$	7.6	$	8.1
Charged to cost of goods sold:
Inventory obsolescence and other	—		.3		(5.3)
Total restructuring and restructuring-related costs	$	(.3)	$	7.9	$	2.8
Amount of total that represents cash charges	$	(.3)	$	7.6	$	8.1

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

	Year Ended December 31
	2021		2020		2019
Bedding Products	$	.1	$	2.6	$	1.2
Specialized Products	(.9)		3.9		—
Furniture, Flooring & Textile Products	.5		1.4		1.6
Total	$	(.3)	$	7.9	$	2.8

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 December 31, 2020		Add: 2021 Charges		Less: 2021 Payments		Balance at December 31, 2021
Termination benefits	$	3.5	$	7.0	$	7.1	$	3.4	$	(.4)	$	2.2	$	.8
Contract termination costs	—		.2		—		.2		—		.2		—
Other restructuring costs	.7		.4		.6		.5		.1		.1		.5
	$	4.2	$	7.6	$	7.7	$	4.1	$	(.3)	$	2.5	$	1.3

Divestitures

During 2021, we divested a specialty wire operation in our Drawn Wire business within our Bedding Products segment.

•Annual external sales for this business were approximately $12.0, and EBIT was approximately $2.0.

•The aggregate selling price was approximately $7.0, and there was no material gain or loss recognized on the sale of this business.

During 2020, we divested two small businesses in our Bedding Products segment: the final operation in our exited Fashion Bed business and a specialty wire operation in our Drawn Wire business.

•Annual external sales for these businesses were approximately $45.0, and EBIT was approximately $2.0.

•The aggregate selling price was approximately $11.0, and there was no material gain or loss recognized on the sale of these businesses.