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Impairment Charges | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Impairment Charges | Impairment Charges Pretax impairment charges are reported in “Goodwill impairment” and “Long-lived asset impairment” in the Consolidated Statements of Operations and summarized in the table below. There were no impairment charges in 2022.
| Year Ended December 31, 2024 |  | Year Ended December 31, 2023
| Goodwill Impairment |  | Other Long-Lived Asset Impairment |  | Total Impairments 1 |  | Goodwill Impairment |  | Other Long-Lived Asset Impairment |  | Total Impairments
Bedding Products | $ | 587.9 |  |  | $ | 4.6 |  |  | $ | 592.5 |  |  | $ | — |  |  | $ | 443.7 |  |  | $ | 443.7 |
Specialized Products | 43.6 |  |  | .8 |  |  | 44.4 |  |  | — |  |  | — |  |  | — |
Furniture, Flooring & Textile Products | 44.5 |  |  | .9 |  |  | 45.4 |  |  | — |  |  | — |  |  | — |
Total impairment charges | $ | 676.0 |  |  | $ | 6.3 |  |  | $ | 682.3 |  |  | $ | — |  |  | $ | 443.7 |  |  | $ | 443.7 |
1 This includes $4.2 associated with the 2024 Plan as discussed in Note E ($.7 of goodwill and $3.5 of long-lived assets discussed below). Goodwill The following table represents 2024 total goodwill impairments. This includes non-cash pretax charges of $675.3 related to our second quarter annual goodwill impairment testing and $.7 related to a small operation in the Bedding Products segment that reached held-for-sale status in the fourth quarter of 2024 and was associated with the 2024 Plan.
|  |  |  | Year Ended
Reporting Unit |  | Segment |  | December 31, 2024
Bedding |  | Bedding Products |  | $ | 587.9 |
Work Furniture |  | Furniture, Flooring & Textile Products |  | 44.5 |
Hydraulic Cylinders |  | Specialized Products |  | 43.6 |
|  |  |  | $ | 676.0 |
In general, the fair values for these 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 |  | December 31, 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 |  | $ | 430.4 |  |  | (1) - 12% |  | 3 | % |  | 14 - 17%
101 - 300% |  | 364.0 |  |  | 3 - 7 |  | 3 |  |  | 14
|  | $ | 794.4 |  |  | (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 and had decreased to 19% after a triggering event occurred to test for goodwill impairment for the reporting unit late in the fourth quarter of 2023, as discussed in the "Other long-lived assets" section below. Goodwill associated with this reporting unit was $310.0 and $906.5 at December 31, 2024 and 2023, respectively. • 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% at our second quarter 2023 testing date. Goodwill associated with this reporting unit was $66.8 and $67.0 at December 31, 2024 and 2023, respectively. • 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 $53.6 and $99.6 at December 31, 2024 and 2023, respectively. • 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 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. Of the $6.3 long-lived asset impairment charges in 2024, $3.5 were associated with the 2024 Plan, as discussed in Note E. Late in the fourth quarter of 2023, we had a triggering event to review long-lived assets and test for impairment when certain of our Elite Comfort Solutions (ECS) and Kayfoam customers notified us of efforts to improve their financial position by moving their business to or exploring alternative suppliers, which adversely impacted our future cash flow forecast. While sales and earnings were lower as compared to acquisition-date estimates for the customer bases associated with ECS and Kayfoam (acquired in 2019 and 2021, respectively), estimated undiscounted cash flows for these asset groups exceeded their carrying amounts until the fourth quarter of 2023. In early January 2024, we conducted an evaluation and determined that our sales and earnings forecasts should be reduced, and, as a result, we performed a recoverability test for these asset groups. Because the forecasted undiscounted cash flows had fallen below the carrying value for these asset groups, we tested for impairment by comparing the estimated fair value of long-lived assets to their carrying values. This resulted in a non-cash pretax charge of $443.7 for long-lived asset impairments (primarily customer relationships, technology, and trademark intangibles) in the Bedding Products segment during the fourth quarter of 2023. This impairment was unrelated to the 2024 Restructuring Plan discussed in Note E. Fair value of the long-lived assets and the resulting impairment charges noted above were determined using the following methodologies. •Customer relationships were valued using an excess earnings method with various inputs, such as the estimated customer attrition rate, revenue growth rate, operating margins, the amount of contributory asset charges, and an appropriate discount rate. •Technology, trademarks, and trade names were valued using a relief-from-royalty method with various inputs, such as comparable market royalty rates for items of similar value, future earnings forecast, an appropriate discount rate, and a replacement rate for technology. This impairment represents substantially all of the intangibles associated with the asset groups noted above. We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other market participants. However, if actual results differ materially from estimates used in these calculations, we could incur future impairment charges.

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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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