XML 41 R29.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Impairment Charges (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Pretax impairment charges are reported in “Impairments” in the Consolidated Statements of Operations and are summarized in the following table:
Six Months Ended 
 June 30, 2024		Three Months Ended 
 June 30, 2024
 Goodwill ImpairmentOther Long-Lived Assets ImpairmentsTotal ImpairmentsGoodwill ImpairmentOther Long-Lived Assets ImpairmentsTotal Impairments
Bedding Products$587.2 $2.6 $589.8 $587.2 $.3 $587.5 
Specialized Products43.6 — 43.6 43.6 — 43.6 
Furniture, Flooring & Textile Products44.5 — 44.5 44.5 — 44.5 
Total impairment charges$675.3 $2.6 $677.9 $675.3 $.3 $675.6 
Summary of Changes In The Carrying Amounts Of Goodwill
The 2024 annual goodwill impairment testing resulted in a $675.3 non-cash goodwill impairment charge related to the following reporting units:
Reporting UnitSegment
Three and Six Months Ended 
 June 30, 2024
BeddingBedding Products$587.2 
Work FurnitureFurniture, Flooring & Textile Products44.5 
Hydraulic CylindersSpecialized Products43.6 
$675.3 
The 2024 information excludes Hydraulic Cylinders, as this unit had no goodwill remaining after the second quarter 2024 impairment.
2024
Fair Value over Carrying Value divided by Carrying ValueJune 30, 2024 Goodwill ValueCompound Annual Growth Rate (CAGR)
Range for Sales		Terminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 1
$435.7 
(1)% - 12%
3 %
14% - 17%
101% - 300%
368.4 
3 - 7
3 
   14
$804.1 
(1)% - 12%
3 %
14% - 17%
2023
Fair Value over Carrying Value divided by Carrying ValueDecember 31, 2023 Goodwill ValueCAGR Range for SalesTerminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount Rate Ranges
Less than 50% 1
$1,018.1 
1% - 17%
3 %
10-12%
50% - 100%
99.6 
   <1
3 
8
101% - 300%
372.1 
3 - 6
3 
8-10
$1,489.8 
<1% - 17%
3 %
8% - 12%
1 This category includes three reporting units (Bedding, Aerospace, and Work Furniture) for 2024 and the Bedding, Aerospace, and Hydraulic Cylinders units for 2023.
•    The fair value of our Bedding reporting unit was less than its carrying value at our second quarter 2024 testing date, resulting in a partial goodwill impairment as discussed above. Fair value exceeded carrying value by 40% at our second quarter 2023 testing date. There was a triggering event in the fourth quarter of 2023 for this reporting unit due to certain customers' efforts to improve their financial position by moving their business to or exploring alternate suppliers. Accordingly, we performed a goodwill impairment test at that time, which indicated no goodwill impairments, but fair value in excess of carrying value had decreased to 19%. Goodwill associated with this reporting unit was $314.5 at June 30, 2024 and $906.5 at December 31, 2023.
•    The fair value of our Aerospace reporting unit exceeded its carrying value by 21% at our second quarter 2024 testing date as compared to 44% in 2023. Goodwill associated with this reporting unit was $66.9 at June 30, 2024 and $67.0 at December 31, 2023.
•    The fair value of our Work Furniture reporting unit was less than its carrying value at our second quarter 2024 testing date, resulting in a partial goodwill impairment, as discussed above. Fair value exceeded carrying value by 74% at our second quarter 2023 testing date. Goodwill associated with this reporting unit was $54.3 at June 30, 2024 and $99.6 at December 31, 2023.
•    The fair value of our Hydraulic Cylinders reporting unit was less than its carrying value at our second quarter 2024 testing date, resulting in a full goodwill impairment, as discussed above. Fair value exceeded carrying value by 18% at our second quarter 2023 testing date. Goodwill associated with this reporting unit was $44.6 at December 31, 2023.