Segment Reporting

12 Months Ended

Dec. 31, 2019

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 resilient (includes sheet vinyl and 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, 2019, 2018 or 2017.

Segment information is as follows:



	2019		2018	2017
Assets:
Global Ceramic	$	5,419,896	5,194,030	4,838,310
Flooring NA	3,823,654		3,938,639	3,702,137
Flooring ROW	3,925,246		3,666,617	3,245,424
Corporate and intersegment eliminations	217,884		299,837	308,982
Total	$	13,386,680	13,099,123	12,094,853

Geographic net sales:
United States	$	5,822,593	6,103,789	6,035,200
Europe	2,532,239		2,582,692	2,363,069
Russia	385,395		349,220	326,075
Other	1,230,445		947,933	766,946
Total	$	9,970,672	9,983,634	9,491,290

Long-lived assets: ⁽¹⁾
United States	$	3,391,676	3,485,046	3,339,363
Belgium	1,645,104		1,663,470	1,705,947
Other	2,232,164		2,072,353	1,696,939
Total	$	7,268,944	7,220,869	6,742,249

Net sales by product categories:
Ceramic & Stone	$	3,686,645	3,621,193	3,485,245
Carpet & Resilient	3,921,769		3,903,698	3,655,902
Laminate & Wood	1,501,077		1,553,032	1,519,417
Other ⁽²⁾	861,181		905,711	830,726
Total	$	9,970,672	9,983,634	9,491,290

Net sales:
Global Ceramic	$	3,631,142	3,552,856	3,405,100
Flooring NA	3,843,714		4,029,148	4,010,858
Flooring ROW	2,495,816		2,401,630	2,075,452
Intersegment sales	—		—	(120	)
Total	$	9,970,672	9,983,634	9,491,290


⁽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.



	2019			2018		2017
Operating income:
Global Ceramic	$	340,058		442,898		525,401
Flooring NA	167,385			347,937		540,337
Flooring ROW	359,428			345,801		329,054
Corporate and intersegment eliminations	(39,647		)	(41,310	)	(40,619	)
Total	$	827,224		1,095,326		1,354,173

Depreciation and amortization:
Global Ceramic	$	211,679		189,904		161,913
Flooring NA	204,689			184,455		159,980
Flooring ROW	145,417			135,350		114,794
Corporate	14,667			12,056		9,985
Total	$	576,452		521,765		446,672

Capital expenditures (excluding acquisitions):
Global Ceramic	$	244,026		281,125		310,650
Flooring NA	148,820			262,676		355,941
Flooring ROW	147,118			232,949		221,763
Corporate	5,498			17,360		17,644
Total	$	545,462		794,110		905,998