Item 7.01 Regulation FD Disclosure.
Elimination of the LIFO Cost Method of Inventory Valuation
We are furnishing this Current Report on Form 8-K to retrospectively adjust previously issued financial statement and segment earnings data to reflect a change from the last-in, first-out (LIFO) to first-in, first-out (FIFO) inventory cost method. Beginning with the first quarter 2021 Form 10-Q, we changed our method for valuing certain inventories (primarily domestic steel-related inventories, largely in the Bedding Products and Furniture, Flooring & Textile Products segments) from LIFO to FIFO. We believe that this change in accounting is preferable as it more closely resembles the physical flow of inventory, is a more consistent method to value inventory across all our businesses, and results in improved comparability with industry peers. After this change, we no longer utilize the LIFO cost method; the majority of our inventories are now valued using the FIFO method, with the remainder valued using the average-cost method.
Prior to 2019, the LIFO inventories represented approximately 50% of our
inventories. With the acquisition of
With the change from LIFO to FIFO, we expect to make tax payments of
Attached, for information purposes only, as Exhibit 99.1 are certain retrospectively adjusted historical, unaudited Statement of Operations data, and certain segment earnings data, for each annual and quarterly period from 2015 through 2020. Also included is retrospectively adjusted historical, unaudited balance sheet data for each annual period from 2015 through 2020, and for each quarterly period in 2020. This financial data is being provided to facilitate the comparison of future results with prior financial periods. After the filing of our 2021 first quarter Form 10-Q, we expect to file retrospectively adjusted previously reported, audited financial statements and related notes to reflect the change from the LIFO cost method.
This information, including Exhibit 99.1 , is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section. This information shall not be incorporated by reference into any document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
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