Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has three reporting segments: the Global Ceramic segment, the Flooring NA segment and the Flooring ROW segment. The Global 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 Flooring NA segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, hardwood, laminate and vinyl products, including luxury vinyl tile ("LVT"), which it distributes 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, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. The Flooring ROW segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard ("MDF"), chipboards, other wood products, sheet vinyl and LVT, which it distributes primarily in Europe and Russia through various selling channels, which include retailers, independent distributors and home centers.

The accounting policies for each operating segment are consistent with the Company’s policies for the consolidated financial statements. 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. Previously reported segment results have been reclassified to conform to the current period presentation. No single customer accounted for more than 10% of net sales for the years ended December 31, 2016, 2015 or 2014.

Segment information is as follows:

	2016			2015		2014
Net sales:
Global Ceramic	$	3,174,706		3,012,859		3,015,279
Flooring NA	3,865,746			3,602,112		3,441,018
Flooring ROW	1,918,635			1,456,898		1,354,018
Intersegment sales	—			(306	)	(6,869	)
	$	8,959,087		8,071,563		7,803,446
Operating income (loss):
Global Ceramic	$	478,448		414,154		351,113
Flooring NA	505,115			264,271		299,992
Flooring ROW	333,091			203,370		151,528
Corporate and intersegment eliminations	(36,711		)	(44,229	)	(29,837	)
	$	1,279,943		837,566		772,796
Depreciation and amortization:
Global Ceramic	$	135,370		118,801		120,121
Flooring NA	148,067			137,064		122,677
Flooring ROW	116,048			97,239		92,090
Corporate	9,982			9,543		10,682
	$	409,467		362,647		345,570
Capital expenditures (excluding acquisitions):
Global Ceramic	$	263,401		247,829		192,642
Flooring NA	248,843			148,598		258,987
Flooring ROW	144,207			95,447		100,899
Corporate	15,674			11,783		9,276
	$	672,125		503,657		561,804
Assets:
Global Ceramic	$	4,024,859		3,846,133		3,542,594
Flooring NA	3,410,856			3,164,525		2,587,151
Flooring ROW	2,689,592			2,805,246		1,909,487
Corporate and intersegment eliminations	105,289			118,496		246,312
	$	10,230,596		9,934,400		8,285,544
Geographic net sales:
United States	$	5,842,683		5,399,561		5,233,796
All other countries	3,116,404			2,672,002		2,569,650
	$	8,959,087		8,071,563		7,803,446
Long-lived assets (1):
United States	$	3,092,902		2,945,783		2,381,843
Belgium	1,371,397			1,377,533		949,169
All other countries	1,180,475			1,117,167		976,550
	$	5,644,774		5,440,483		4,307,562
Net sales by product categories (2):
Soft surface	$	3,414,956		3,056,946		2,764,370
Tile	3,258,136			3,094,389		3,087,895
Laminate and wood	2,285,995			1,920,228		1,951,181
	$	8,959,087		8,071,563		7,803,446

(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, LVT and sheet vinyl. The tile product category includes ceramic tile, porcelain tile and natural stone. The laminate and wood product category includes laminate, hardwood, roofing elements, insulation boards, MDF, chipboards, and licensing, with most of the UNICLIC family of patents expiring in 2017.