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 tile and other products including natural stone, quartz and porcelain slab countertops, which it distributes primarily in North America, Europe and Russia through its network of regional distribution centers and Company-operated service centers. 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 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, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial dealers and commercial end users. The Flooring ROW segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard, chipboards, 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.

Segment information is as follows:



	Three Months Ended					Six Months Ended
	June 30, 2018			July 1, 2017		June 30, 2018		July 1, 2017
Net sales:
Global Ceramic segment	$	929,297		902,670		1,805,845		1,687,639
Flooring NA segment	1,057,570			1,040,299		2,007,928		1,979,795
Flooring ROW segment	590,147			510,069		1,175,443		1,006,249
Intersegment sales	—			—		—		—
	$	2,577,014		2,453,038		4,989,216		4,673,683
Operating income (loss):
Global Ceramic segment	$	134,760		152,557		248,177		268,593
Flooring NA segment	100,662			127,482		175,410		219,624
Flooring ROW segment	100,166			86,052		189,226		162,147
Corporate and intersegment eliminations	(9,281		)	(10,266	)	(18,107	)	(19,755	)
	$	326,307		355,825		594,706		630,609



	June 30, 2018		December 31, 2017
Assets:
Global Ceramic segment	$	4,974,791	4,838,310
Flooring NA segment	3,927,190		3,702,137
Flooring ROW segment	3,701,419		3,245,424
Corporate and intersegment eliminations	290,639		308,982
	$	12,894,039	12,094,853