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, quartz, porcelain slab countertops and other products, which it distributes primarily in North America, Europe, South America 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, Australia, New Zealand 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. No single customer accounted for more than 10% of net sales for the years ended December 31, 2018, 2017 or 2016.

Segment information is as follows:



	2018		2017		2016
Assets:
Global Ceramic	$	5,194,030	4,838,310		4,024,859
Flooring NA	3,938,639		3,702,137		3,410,856
Flooring ROW	3,666,617		3,245,424		2,689,592
Corporate and intersegment eliminations	299,837		308,982		105,289
Total	$	13,099,123	12,094,853		10,230,596

Geographic net sales:
United States	$	6,103,789	6,035,200		5,842,165
Europe	2,582,692		2,363,069		2,113,972
Russia	349,220		326,075		255,736
Other	947,933		766,946		747,214
Total	$	9,983,634	9,491,290		8,959,087

Long-lived assets: ⁽¹⁾
United States	$	3,485,046	3,339,363		3,092,902
Belgium	1,663,470		1,705,947		1,371,397
Other	2,072,353		1,696,939		1,180,475
Total	$	7,220,869	6,742,249		5,644,774

Net sales by product categories:
Ceramic & Stone	$	3,621,193	3,485,245		3,258,137
Carpet & Resilient	3,903,698		3,655,902		3,412,846
Laminate & Wood	1,553,032		1,519,417		1,493,995
Other ⁽²⁾	905,711		830,726		794,109
Total	$	9,983,634	9,491,290		8,959,087

Net sales:
Global Ceramic	$	3,552,856	3,405,100		3,174,706
Flooring NA	4,029,148		4,010,858		3,865,746
Flooring ROW	2,401,630		2,075,452		1,918,635
Intersegment sales	—		(120	)	—
Total	$	9,983,634	9,491,290		8,959,087


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


(2)	Other includes roofing elements, insulation boards, chipboards and IP contracts.



	2018			2017		2016
Operating income:
Global Ceramic	$	442,898		525,401		478,448
Flooring NA	347,937			540,337		505,115
Flooring ROW	345,801			329,054		333,091
Corporate and intersegment eliminations	(41,310		)	(40,619	)	(36,711	)
Total	$	1,095,326		1,354,173		1,279,943

Depreciation and amortization:
Global Ceramic	$	189,904		161,913		135,370
Flooring NA	184,455			159,980		148,067
Flooring ROW	135,350			114,794		116,048
Corporate	12,056			9,985		9,982
Total	$	521,765		446,672		409,467

Capital expenditures (excluding acquisitions):
Global Ceramic	$	281,125		310,650		263,401
Flooring NA	262,676			355,941		248,843
Flooring ROW	232,949			221,763		144,207
Corporate	17,360			17,644		15,674
Total	$	794,110		905,998		672,125