Segment Reporting

12 Months Ended

Dec. 31, 2020

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, 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, laminate, resilient (includes sheet vinyl and LVT) and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses using company-operated trucks, common carriers 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, wood 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, company-operated distributors, 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, 2020, 2019 or 2018.

Segment information is as follows:

	2020		2019	2018
Assets:
Global Ceramic segment	$	5,250,069	5,419,896	5,194,030
Flooring NA segment	3,594,976		3,823,654	3,938,639
Flooring ROW segment	4,194,447		3,925,246	3,666,617
Corporate and intersegment eliminations	1,288,259		217,884	299,837
Total	$	14,327,751	13,386,680	13,099,123
Geographic net sales:
United States	$	5,530,407	5,822,593	6,103,789
Europe	2,486,770		2,532,239	2,582,692
Russia	385,830		385,395	349,220
Other	1,149,190		1,230,445	947,933
Total	$	9,552,197	9,970,672	9,983,634
Long-lived assets: (1)
United States	$	3,303,197	3,391,676	3,485,046
Belgium	1,808,571		1,645,104	1,663,470
Other	2,130,292		2,232,164	2,072,353
Total	$	7,242,060	7,268,944	7,220,869
Net sales by product categories:
Ceramic & Stone	$	3,457,203	3,686,645	3,621,193
Carpet & Resilient	3,735,888		3,921,769	3,903,698
Laminate & Wood	1,538,967		1,501,077	1,553,032
Other (2)	820,139		861,181	905,711
Total	$	9,552,197	9,970,672	9,983,634
Net sales:
Global Ceramic segment	$	3,432,756	3,631,142	3,552,856
Flooring NA segment	3,594,075		3,843,714	4,029,148
Flooring ROW segment	2,525,366		2,495,816	2,401,630
Total	$	9,552,197	9,970,672	9,983,634

(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.

	2020		2019	2018
Operating income (loss)(1):
Global Ceramic segment	$	167,731	335,639	439,152
Flooring NA segment	147,442		177,566	356,842
Flooring ROW segment	366,934		353,666	340,642
Corporate and intersegment eliminations	(46,105)		(39,647)	(41,310)
Total	$	636,002	827,224	1,095,326
Depreciation and amortization:
Global Ceramic segment	$	215,488	211,679	189,904
Flooring NA segment	214,599		204,689	184,455
Flooring ROW segment	164,701		145,417	135,350
Corporate	12,719		14,667	12,056
Total	$	607,507	576,452	521,765
Capital expenditures (excluding acquisitions):
Global Ceramic segment	$	121,418	244,026	281,125
Flooring NA segment	186,179		148,820	262,676
Flooring ROW segment	113,378		147,118	232,949
Corporate	4,582		5,498	17,360
Total	$	425,557	545,462	794,110

(1)During the second quarter of 2020, the Company revised the methodology it uses to estimate and allocate corporate general and administrative expenses to its operating segments to better align usage of corporate resources allocated to the Company segments. The updated allocation methodology had no impact on the Company’s consolidated statements of operations. This change was applied retrospectively, and segment operating income for all comparative periods has been updated to reflect this change.