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Business Segment Information | 6 Months Ended
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Jun. 30, 2014
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company operates in three business segments: Tempur North America, Tempur International and Sealy. The Tempur North America segment consists of two U.S. manufacturing facilities and the Tempur North America distribution subsidiaries. The Tempur International segment consists of a manufacturing facility in Denmark, whose customers include all of the distribution subsidiaries and third party distributors outside of the Tempur North America and Sealy segments. The Sealy segment consists of company-owned and operated bedding and component manufacturing facilities located around the world, along with distribution subsidiaries, joint ventures, and licensees. The Company evaluates segment performance based on net sales and operating income. Certain corporate operating expenses included in the Tempur North America segment for the three months ended June 30, 2014 and 2013 were $17.6 million and $21.0 million, respectively. Certain corporate operating expenses included in the Tempur North America segment for the six months ended June 30, 2014 and 2013 were $35.3 million and $50.3 million, respectively. There were no material allocations of corporate operating expenses to the Tempur International or Sealy segments for the six months ended June 30, 2014 and 2013. The Company’s Tempur North America, Tempur International and Sealy segment assets include investments in subsidiaries which are appropriately eliminated in the Company’s accompanying Condensed Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable. The effect of the elimination of the investments in subsidiaries is included in the inter-segment eliminations as shown below. The following table summarizes total assets by segment:
(in millions) | June 30, |  | December 31,
Total assets: | 2014 |  | 2013
Tempur North America | $ | 2,591.5 |  |  | $ | 2,110.7 |
Tempur International | 408.0 |  |  | 477.7 |
Sealy | 1,962.9 |  |  | 1,956.6 |
Inter-segment eliminations | (2,210.5 | ) |  | (1,815.1 | )
| $ | 2,751.9 |  |  | $ | 2,729.9 |
The following table summarizes long-lived assets by segment:
(in millions) | June 30, |  | December 31,
Long-lived assets: | 2014 |  | 2013
Tempur North America | $ | 391.7 |  |  | $ | 393.1 |
Tempur International | 67.2 |  |  | 68.7 |
Sealy | 1,392.5 |  |  | 1,459.5 |
| $ | 1,851.4 |  |  | $ | 1,921.3 |
The following table summarizes long-lived assets by geographic region:
(in millions) | June 30, |  | December 31,
| 2014 |  | 2013
United States | $ | 1,578.0 |  |  | $ | 1,647.0 |
Canada | 50.4 |  |  | 52.1 |
Other International | 223.0 |  |  | 222.2 |
| $ | 1,851.4 |  |  | $ | 1,921.3 |
Total International | 273.4 |  |  | 274.3 |
The following table summarizes net sales by geographic region:
(in millions) | Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2014 |  | 2013 |  | 2014 |  | 2013
United States | $ | 524.2 |  |  | $ | 474.1 |  |  | $ | 1,028.2 |  |  | $ | 727.4 |
Canada | 53.7 |  |  | 56.1 |  |  | 102.4 |  |  | 71.1 |
Other International | 137.1 |  |  | 130.4 |  |  | 286.3 |  |  | 252.2 |
| $ | 715.0 |  |  | $ | 660.6 |  |  | $ | 1,416.9 |  |  | $ | 1,050.7 |
Total International | $ | 190.8 |  |  | $ | 186.5 |  |  | $ | 388.7 |  |  | $ | 323.3 |
The following table summarizes segment information:
(in millions) | Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2014 |  | 2013 |  | 2014 |  | 2013
Net sales to external customers: |  |  |  |  |  |  |
Tempur North America |  |  |  |  |  |  |
Bedding | $ | 223.9 |  |  | $ | 199.5 |  |  | $ | 423.4 |  |  | $ | 404.1 |
Other products | 13.4 |  |  | 16.0 |  |  | 26.9 |  |  | 37.3 |
| $ | 237.3 |  |  | $ | 215.5 |  |  | $ | 450.3 |  |  | $ | 441.4 |
Tempur International |  |  |  |  |  |  |  |  |  |  |
Bedding | $ | 81.5 |  |  | $ | 73.9 |  |  | $ | 176.7 |  |  | $ | 163.2 |
Other products | 28.0 |  |  | 26.6 |  |  | 58.5 |  |  | 54.8 |
| $ | 109.5 |  |  | $ | 100.5 |  |  | $ | 235.2 |  |  | $ | 218.0 |
Sealy |  |  |  |  |  |  |  |  |  |  |
Bedding | $ | 352.0 |  |  | $ | 325.1 |  |  | $ | 693.3 |  |  | $ | 369.8 |
Other products | 16.2 |  |  | 19.5 |  |  | 38.1 |  |  | 21.5 |
| $ | 368.2 |  |  | $ | 344.6 |  |  | $ | 731.4 |  |  | $ | 391.3 |
| $ | 715.0 |  |  | $ | 660.6 |  |  | $ | 1,416.9 |  |  | $ | 1,050.7 |
Inter-segment sales: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 1.7 |  |  | $ | — |  |  | $ | 1.8 |  |  | $ | 0.1 |
Tempur International | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Sealy | 4.2 |  |  | — |  |  | 8.5 |  |  | — |
Intercompany eliminations | (6.0 | ) |  | (0.1 | ) |  | (10.5 | ) |  | (0.3 | )
| $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Gross profit: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 94.2 |  |  | $ | 88.5 |  |  | $ | 180.0 |  |  | $ | 191.9 |
Tempur International | 64.1 |  |  | 62.5 |  |  | 139.2 |  |  | 136.8 |
Sealy | 110.0 |  |  | 103.9 |  |  | 218.6 |  |  | 114.6 |
| $ | 268.3 |  |  | $ | 254.9 |  |  | $ | 537.8 |  |  | $ | 443.3 |
Operating income: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 8.3 |  |  | $ | 10.3 |  |  | $ | 19.4 |  |  | $ | 26.1 |
Tempur International | 19.2 |  |  | 23.9 |  |  | 47.2 |  |  | 55.2 |
Sealy | 22.8 |  |  | 9.8 |  |  | 46.1 |  |  | 7.2 |
| $ | 50.3 |  |  | $ | 44.0 |  |  | $ | 112.7 |  |  | $ | 88.5 |
(Loss) income before income taxes: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | (12.5 | ) |  | $ | (22.9 | ) |  | $ | (20.7 | ) |  | $ | (34.6 | )
Tempur International | 18.8 |  |  | 22.5 |  |  | 46.2 |  |  | 52.7 |
Sealy | 1.1 |  |  | 7.1 |  |  | 21.1 |  |  | 3.7 |
| $ | 7.4 |  |  | $ | 6.7 |  |  | $ | 46.6 |  |  | $ | 21.8 |
Depreciation and amortization (including stock-based compensation amortization): |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 5.7 |  |  | $ | 10.8 |  |  | $ | 14.1 |  |  | $ | 20.6 |
Tempur International | 3.4 |  |  | 3.1 |  |  | 6.6 |  |  | 6.2 |
Sealy | 12.3 |  |  | 11.0 |  |  | 24.8 |  |  | 12.8 |
| $ | 21.4 |  |  | $ | 24.9 |  |  | $ | 45.5 |  |  | $ | 39.6 |
Intercompany royalties: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 1.4 |  |  | $ | 1.4 |  |  | $ | 2.9 |  |  | $ | 2.7 |
Tempur International | (1.4 | ) |  | (1.4 | ) |  | (2.9 | ) |  | (2.7 | )
Sealy | — |  |  | — |  |  | — |  |  | — |
| $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |
Tempur North America | $ | 4.1 |  |  | $ | 7.0 |  |  | $ | 6.1 |  |  | $ | 10.9 |
Tempur International | 2.8 |  |  | 3.0 |  |  | 4.5 |  |  | 4.7 |
Sealy | 2.2 |  |  | 3.7 |  |  | 6.3 |  |  | 3.7 |
| $ | 9.1 |  |  | $ | 13.7 |  |  | $ | 16.9 |  |  | $ | 19.3 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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