v3.25.2
Impairment Charges
 6 Months Ended
Jun. 30, 2025
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.
Six Months Ended 
 June 30, 2025		Six Months Ended 
 June 30, 2024
 Other Long-Lived Assets ImpairmentGoodwill ImpairmentOther Long-Lived Assets ImpairmentTotal Impairments
Bedding Products$1.2 $587.2 $2.6 $589.8 
Specialized Products— 43.6 — 43.6 
Furniture, Flooring & Textile Products— 44.5 — 44.5 
Total impairment charges$1.2 $675.3 $2.6 $677.9 
Three Months Ended 
 June 30, 2025		Three Months Ended 
 June 30, 2024
 Other Long-Lived Assets ImpairmentGoodwill ImpairmentOther Long-Lived Assets ImpairmentTotal Impairments
Bedding Products$.9 $587.2 $.3 $587.5 
Specialized Products— 43.6 — 43.6 
Furniture, Flooring & Textile Products— 44.5 — 44.5 
Total impairment charges$.9 $675.3 $.3 $675.6 
Goodwill
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.
There were no triggering events or impairments indicated in the six months ending June 30, 2025.
The 2024 annual goodwill impairment testing performed in the second quarter resulted in a $675.3 non-cash goodwill impairment charge. In general, the fair values for our reporting units 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.
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 ValueJune 30, 2025 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
$446.5 
<1% - 8%
3 %
15% - 20%
50% - 100%
304.7 
(2) - 4
3 
15 - 17
$751.2 
(2)% - 8%
3 %
15% - 20%
2024
Fair Value over Carrying Value divided by Carrying ValueDecember 31, 2024 Goodwill ValueCAGR Range for SalesTerminal Values Long-term Growth Rate for Debt-Free Cash FlowDiscount 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, Aerospace, 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 $323.6 at June 30, 2025 and $310.0 at December 31, 2024.
•The fair value of our Aerospace reporting unit exceeded its carrying value by 48% at our second quarter 2025 testing date as compared to 21% in 2024. Goodwill associated with this reporting unit was $68.0 at June 30, 2025 and $66.8 at December 31, 2024. This unit was classified as held for sale during 2025, and the June 30, 2025 goodwill is presented in Non-current assets held for sale on our balance sheet (see Note N). We incorporated the estimated sales price of the pending sale of this reporting unit when performing our second quarter 2025 valuation analysis.
•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 $68.3 at June 30, 2025 and $67.7 at December 31, 2024.
•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 $54.6 at June 30, 2025 and $53.6 at December 31, 2024.
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 six months ended June 30, 2025 and June 30, 2024 were related to the 2024 Restructuring Plan.