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GOODWILL IMPAIRMENT TESTING
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
GOODWILL IMPAIRMENT TESTING GOODWILL IMPAIRMENT TESTING
We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter. The 2023 and 2022 goodwill impairment testing indicated no impairments.
The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in these calculations, we could incur future impairment charges.
2023
Fair Value over Carrying Value divided by Carrying ValueJune 30, 2023 Goodwill ValueCompound Annual Growth Rate (CAGR)
Range for Sales		Terminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 1
$1,007.8 
1% - 17%
3 %
10% - 12%
50% - 100% 2
98.9 
< 1
3 
 8
101% - 300%370.4 
3 - 6
3 
8 - 10
$1,477.1 
< 1% - 17%
3 %
8% - 12%
2022
Fair Value over Carrying Value divided by Carrying ValueDecember 31, 2022 Goodwill ValueCAGR Range for SalesTerminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 1
$107.8 
4% - 9%
3 %
12%
50% - 100% 2
998.7 
3 - 5
3 
10
101% - 300%248.3 
1 - 3
3 
10
Greater than 300%119.6 
 8
3 
12
$1,474.4 
1% - 9%
3 %
10% - 12%
1     This category includes three reporting units (Bedding, Aerospace, and Hydraulic Cylinders) for 2023 and the Aerospace and Hydraulic Cylinders units for 2022.
•The fair value of our Bedding reporting unit exceeded its carrying value by 40% at our second quarter 2023 testing date as compared to 54% in 2022. Goodwill associated with this reporting unit was $904.0 at June 30, 2023 and $900.3 at December 31, 2022.
•The fair value of our Aerospace reporting unit exceeded its carrying value by 44% at our second quarter 2023 testing date as compared to 40% in 2022. Goodwill associated with this reporting unit was $67.0 at June 30, 2023 and $66.3 at December 31, 2022.
•The fair value of the Hydraulic Cylinders reporting unit exceeded its carrying value by 18% as of our second quarter 2023 testing date, compared to 32% in 2022. At the time of our annual goodwill impairment testing in 2022, there was no goodwill associated with this reporting unit, but an August 2022 acquisition added goodwill. Goodwill associated with this reporting unit was $36.8 at June 30, 2023 and $41.5 at December 31, 2022.
2     This category includes one reporting unit (Work Furniture) for 2023 and the Work Furniture and Bedding reporting units for 2022.
•The fair value of our Work Furniture reporting unit exceeded its carrying value by 74% at our second quarter 2023 testing date as compared to 78% in 2022. Goodwill associated with this reporting unit was $98.9 at June 30, 2023 and $98.4 at December 31, 2022.