Impairment Charges

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

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.


	Year Ended December 31, 2025		Year Ended December 31, 2024						Year Ended December 31, 2023
	Other Long-Lived Assets Impairment		Goodwill Impairment		Other Long-Lived Assets Impairment		Total Impairments		Other Long-Lived Assets Impairment
Bedding Products	$	17.8	$	587.9	$	4.6	$	592.5	$	443.7
Specialized Products	.6		43.6		.8		44.4		—
Furniture, Flooring & Textile Products	.6		44.5		.9		45.4		—

Total impairment charges	$	19.0	$	676.0	$	6.3	$	682.3	$	443.7

Goodwill

Our second quarter annual 2025 goodwill testing did not indicate any impairments. There have been no triggering events since our 2025 testing. 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 our calculations, we could incur future impairment charges. These tables exclude Hydraulic Cylinders, as this unit had no goodwill remaining after the second quarter 2024 impairment of $43.6.


2025
Fair Value over Carrying Value divided by Carrying Value	December 31, 2025 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	$	447.1	<1 - 4%	3	%	15% - 17%
51-100%	304.3		(2) - 4	3		15 -17


	$	751.4	(2%) - 4%	3	%	15% - 17%


2024
Fair Value over Carrying Value divided by Carrying Value	December 31, 2024 Goodwill Value		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%

1 This category includes Bedding, Home Furniture, and Work Furniture for 2025 and Bedding, Aerospace, and Work Furniture for 2024.

• The fair value of our Bedding reporting unit exceeded its carrying value by 20% at our second quarter 2025 testing date. 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 of $587.2. Goodwill associated with this reporting unit was $323.7 and $310.0 at December 31, 2025 and 2024, respectively.

• We sold our Aerospace reporting unit in the third quarter of 2025 as discussed in Note S. At our second quarter 2025 testing date, this unit was held for sale, and its fair value exceeded its carrying value by 48%. Goodwill associated with this reporting unit was $66.8 at December 31, 2024.

• The fair value of our Home Furniture reporting unit exceeded its carrying value by 34% at our second quarter 2025 testing date. Goodwill associated with this reporting unit was $68.4 and $67.7 at December 31, 2025 and 2024, respectively.

• The fair value of our Work Furniture reporting unit exceeded its carrying value by 29% at our second quarter 2025 testing date. 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 of $44.5. Goodwill associated with this reporting unit was $55.0 and $53.6 at December 31, 2025 and 2024, respectively.

The 2024 annual goodwill impairment testing resulted in a $675.3 non-cash goodwill impairment charge. In general, the fair values for our reporting units as discussed above decreased versus 2023 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. Also, we recorded a $.7 non-cash goodwill impairment charge related to a small U.S. machinery business within the Bedding Products segment that reached held-for-sale status in the fourth quarter of 2024 and was sold in the first quarter of 2025 as discussed in Note S. There were no goodwill impairments for 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.

As discussed in Note E, impairment charges of $19.0 in 2025 were related to the 2024 Plan and were primarily related to lease impairments. We had $6.3 of long-lived asset impairment charges in 2024, of which $3.5 were associated with the 2024 Plan.

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 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. Although estimated undiscounted cash flows had previously exceeded carrying values, updated sales and earnings forecasts completed in early January 2024 indicated reduced expected cash flows. As a result, we performed recoverability and impairment testing, which led to a non-cash pretax charge of $443.7 for long-lived asset impairments (primarily customer relationships, technology, and trademarks) in the Bedding Products segment for the fourth quarter of 2023. This impairment was unrelated to the 2024 Restructuring Plan discussed in Note E.

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.