Segment reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment reporting

Segment Reporting

The Company has three reporting segments: the Carpet segment, the Ceramic segment and the Laminate and Wood segment. The Carpet segment designs, manufactures, sources and markets its floor covering product lines, including carpets, ceramic tile, laminate, rugs, carpet pad, hardwood and resilient, which it distributes primarily in North America through its network of regional distribution centers and satellite warehouses using company-operated trucks, common carrier or rail transportation. The segment’s product lines are sold through various selling channels, which include independent floor covering retailers, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial dealers and commercial end users. The Ceramic segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone and other products, which it distributes primarily in North America, Europe and Russia through its network of regional distribution centers and Company-operated service centers using company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. The Laminate and Wood segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, MDF, chipboards and other wood products, which it distributes primarily in North America and Europe through various selling channels, which include retailers, independent distributors and home centers.

Amounts disclosed for each segment are prior to any elimination or consolidation entries. Corporate general and administrative expenses attributable to each segment are estimated and allocated accordingly. Segment performance is evaluated based on operating income. No single customer accounted for more than 10% of net sales for the years ended December 31, 2013, 2012 or 2011.

Segment information is as follows:

	2013			2012		2011
Net sales:
Carpet	$	2,986,096		2,912,055		2,927,674
Ceramic	2,677,058			1,616,383		1,454,316
Laminate and Wood	1,792,260			1,350,349		1,344,764
Intersegment sales	(106,660		)	(90,807	)	(84,496	)
	$	7,348,754		5,787,980		5,642,258
Operating income (loss):
Carpet	$	209,023		158,196		109,874
Ceramic	209,825			120,951		101,298
Laminate and Wood	159,365			126,409		127,147
Corporate and intersegment eliminations	(31,282		)	(26,048	)	(22,777	)
	$	546,931		379,508		315,542
Depreciation and amortization:
Carpet	$	94,314		95,648		90,463
Ceramic	97,126			41,176		42,723
Laminate and Wood	105,907			132,183		151,884
Corporate	11,524			11,286		12,664
	$	308,871		280,293		297,734
Capital expenditures (excluding acquisitions):
Carpet	$	158,690		97,972		125,630
Ceramic	110,750			49,426		66,419
Laminate and Wood	88,293			56,605		78,615
Corporate	8,817			4,291		4,909
	$	366,550		208,294		275,573
Assets:
Carpet	$	1,786,085		1,721,214		1,769,065
Ceramic	3,787,785			1,731,258		1,732,818
Laminate and Wood	2,716,759			2,672,389		2,533,070
Corporate and intersegment eliminations	203,548			178,823		171,275
	$	8,494,177		6,303,684		6,206,228
Geographic net sales:
North America	$	5,512,182		4,798,804		4,619,771
Rest of world	1,836,572			989,176		1,022,487
	$	7,348,754		5,787,980		5,642,258
Long-lived assets (1):
North America	$	2,332,296		1,968,561		1,996,517
Rest of world	2,105,539			1,110,062		1,090,812
	$	4,437,835		3,078,623		3,087,329
Net sales by product categories (2):
Soft surface	$	2,756,627		2,696,462		2,722,113
Tile	2,744,289			1,676,971		1,513,210
Laminate and wood	1,847,838			1,414,547		1,406,935
	$	7,348,754		5,787,980		5,642,258

(1) Long-lived assets are composed of property, plant and equipment, net, and goodwill.

(2) The Soft surface product category includes carpets, rugs, carpet pad and resilient. The Tile product category includes ceramic tile, porcelain tile and natural stone. The Wood product category includes laminate, hardwood, roofing elements, insulation boards, MDF, chipboards, other wood-based products and licensing.