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Impairment Charges | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Impairment Charges | Impairment Charges Pretax impairment charges are reported in “Impairments” in the Consolidated Statements of Operations and are summarized in the table below. There were no impairment charges in the three and nine months ended September 30, 2023.
| Nine Months Ended September 30, 2024 |  |  |  | Three Months Ended September 30, 2024 |  |
| Goodwill Impairment |  | Other Long-Lived Assets Impairments |  | Total Impairments |  |  |  |  |  |  |  | Goodwill Impairment |  | Other Long-Lived Assets Impairments |  | Total Impairments |  |  |  |  |  |
Bedding Products | $ | 587.2 |  |  | $ | 3.2 |  |  | $ | 590.4 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | .6 |  |  | $ | .6 |  |  |  |  |  |  |
Specialized Products | 43.6 |  |  | — |  |  | 43.6 |  |  |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Furniture, Flooring & Textile Products | 44.5 |  |  | — |  |  | 44.5 |  |  |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Total impairment charges | $ | 675.3 |  |  | $ | 3.2 |  |  | $ | 678.5 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | .6 |  |  | $ | .6 |  |  |  |  |  |  |
Goodwill Impairment Testing 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 2023 goodwill impairment testing indicated no impairments. The 2024 annual goodwill impairment testing performed in the second quarter resulted in a $675.3 non-cash goodwill impairment charge related to the reporting units noted below. There were no triggering events or impairments indicated in the three months ending September 30, 2024.
Reporting Unit |  | Segment |  | Nine Months Ended September 30, 2024
Bedding |  | Bedding Products |  | $ | 587.2 |
Work Furniture |  | Furniture, Flooring & Textile Products |  | 44.5 |
Hydraulic Cylinders |  | Specialized Products |  | 43.6 |
|  |  |  | $ | 675.3 |
In general, the fair values for our reporting units decreased versus prior year due to macroeconomic pressures, including low demand, particularly in residential end markets. The fair values of our reporting units were reconciled to our consolidated market capitalization, which decreased due to the significant decline in stock price during the second quarter of 2024. Our closing stock price per share was $26.17 on December 29, 2023, $19.15 on March 28, 2024, and $11.46 on June 28, 2024. The impairment was concluded in connection with the preparation of the second quarter financial statements. If actual results differ materially from estimates used in our calculations, we could incur future impairment charges. The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. 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 Value |  | September 30, 2024 Goodwill Value |  | Compound Annual Growth Rate (CAGR) Range for Sales |  | Terminal Values Long-term Growth Rate for Debt-Free Cash Flow |  | Discount Rate Ranges
Less than 50% 1 |  | $ | 442.9 |  |  | (1)% - 12% |  | 3 | % |  | 14% - 17%
101% - 300% |  | 371.8 |  |  | 3 - 7 |  | 3 |  |  | 14
|  | $ | 814.7 |  |  | (1)% - 12% |  | 3 | % |  | 14% - 17%
2023
Fair Value over Carrying Value divided by Carrying Value |  | December 31, 2023 Goodwill Value |  | CAGR Range for Sales |  | Terminal Values Long-term Growth Rate for Debt-Free Cash Flow |  | Discount 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 Bedding, Aerospace, and Work Furniture for 2024 and Bedding, Aerospace, and Hydraulic Cylinders 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 impairment, but fair value in excess of carrying value had decreased to 19%. Goodwill associated with this reporting unit was $319.8 at September 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 $67.7 at September 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 $55.4 at September 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.
Other long-lived assets We review material intangibles mid-year and 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. All long-lived asset impairment charges for the three and nine months ended September 30, 2024 were related to the Restructuring Plan. For details, please see Note E.

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- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
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