Pretax impairment charges are reported in “Impairments” in the Consolidated Statements of Operations and summarized in the following table. We did not have any impairment charges in 2022 or 2021.



	Year ended December 31, 2020
	Goodwill Impairment		Other Long-Lived Asset Impairments		Total Impairments
Bedding Products	$	—	$	.3	$	.3
Specialized Products	25.4		—		25.4
Furniture, Flooring & Textile Products	—		.2		.2
Unallocated 1	—		3.5		3.5
Total impairment charges	$	25.4	$	4.0	$	29.4

1 This charge was incurred to write off stock associated with a prior year divestiture that filed bankruptcy in 2020.

As discussed in Note A, we test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter.

The annual goodwill impairment testing performed in the second quarter of 2020 resulted in a $25.4 non-cash goodwill impairment charge with respect to our Hydraulic Cylinders reporting unit (which is a part of the Specialized Products segment) and reflected the complete write-off of the goodwill associated with this reporting unit at that time.

The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in these calculations, we could incur future impairment charges.


2022
Fair Value over Carrying Value divided by Carrying Value	December 31, 2022 Goodwill Value		10-year Compound Annual Growth Rate Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% 1	$	107.8	3.7 - 8.5%	3.0	%	11.8%
50% - 100% 2	998.7		2.6 - 4.8	3.0		10.3
101% - 300%	248.3		1.4 - 2.6	3.0		9.8 - 10.3
Greater than 300%	119.6		8.2	3.0		11.8
	$	1,474.4	1.4% - 8.5%	3.0	%	9.8% - 11.8%


2021
Fair Value over Carrying Value divided by Carrying Value	December 31, 2021 Goodwill Value		10-year Compound Annual Growth Rate Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% 1	$	67.5	7.8%	3.0	%	10.0%
50% - 100% 2	101.0		5.5	3.0		9.0
101% - 300%	1,086.9		3.1 - 3.3	3.0		8.0 - 8.5
Greater than 300%	194.2		2.9 - 10.4	3.0		9.0
	$	1,449.6	2.9% - 10.4%	3.0	%	8.0% - 10.0%

1 This category includes two reporting units (Aerospace and Hydraulic Cylinders) for 2022 and the Aerospace unit for 2021.

•The fair value of our Aerospace reporting unit exceeded its carrying value by 40% at our second quarter 2022 testing date as compared to 28% in 2021. Goodwill associated with the Aerospace reporting unit was $66.3 at December 31, 2022 and $67.5 at December 31, 2021.

•The fair value of our Hydraulic Cylinders reporting unit exceeded its carrying value by 32% at our second quarter 2022 testing date as compared to 86% in 2021. At the time of our annual goodwill impairment testing in both 2022 and 2021, there was no goodwill associated with this reporting unit, but an August 2022 acquisition (see Note R) added goodwill. At December 31, 2022, the goodwill balance was $41.5.

2 This category includes two reporting units (Work Furniture and Bedding) for 2022 and the Work Furniture unit for 2021.

•The fair value of our Work Furniture reporting unit exceeded its carrying value by 78% at our second quarter 2022 testing date as compared to 85% in 2021. Goodwill associated with the Work Furniture reporting unit was $98.4 at December 31, 2022 and $101.0 at December 31, 2021.

•The fair value of our Bedding unit exceeded its carrying value by 54% at our second quarter 2022 testing date as compared to 171% in 2021. Goodwill associated with the Bedding reporting unit was $900.3 at December 31, 2022 and $908.3 at December 31, 2021.

As discussed in Note A, we test other long-lived assets for recoverability at year end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value, and the resulting impairment charges noted above, was based primarily upon offers from potential buyers or third party estimates of fair value less selling costs.