XML 46 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Business Segment Information
 9 Months Ended
Sep. 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 September 30, 2014 and 2013 were $20.3 million and $16.7 million, respectively. Certain corporate operating expenses included in the Tempur North America segment for the nine months ended September 30, 2014 and 2013 were $55.6 million and $67.0 million, respectively. Following the Sealy Acquisition, the Company consolidated certain Sealy segment corporate functions within the Tempur North America segment. The operating expenses of those corporate functions are now included in the Tempur North America segment, which increases operating expenses in the Tempur North America segment and decreases operating expenses in the Sealy segment.

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)
September 30,
 
December 31,
Total assets:
2014
 
2013
Tempur North America
$
2,452.6

 
$
2,110.7

Tempur International
508.8

 
477.7

Sealy
2,010.0

 
1,956.6

Inter-segment eliminations
(2,271.7
)
 
(1,815.1
)
 
$
2,699.7

 
$
2,729.9


     The following table summarizes long-lived assets by segment:
(in millions)
September 30,
 
December 31,
Long-lived assets:
2014
 
2013
Tempur North America
$
297.0

 
$
393.1

Tempur International
163.9

 
68.7

Sealy
1,371.8

 
1,459.5

 
$
1,832.7

 
$
1,921.3



The following table summarizes long-lived assets by geographic region:
(in millions)
September 30,
 
December 31,
 
2014
 
2013
United States
$
1,474.6

 
$
1,647.0

Canada
46.9

 
52.1

Other International
311.2

 
222.2

 
$
1,832.7

 
$
1,921.3

Total International
358.1

 
274.3



The following table summarizes net sales by geographic region:
(in millions)
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
United States
$
624.8

 
$
537.5

 
$
1,653.0

 
$
1,264.9

Canada
60.6

 
64.1

 
163.0

 
135.2

Other International
142.0

 
133.9

 
428.3

 
386.1

 
$
827.4

 
$
735.5

 
$
2,244.3

 
$
1,786.2

Total International
$
202.6

 
$
198.0

 
$
591.3

 
$
521.3


 
The following table summarizes segment information:
(in millions)
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Net sales to external customers:
 
 
 
 
 
 
 
Tempur North America
 
 
 
 
 
 
 
Bedding
$
263.6

 
$
220.6

 
$
687.0

 
$
624.7

Other products
17.0

 
21.8

 
43.9

 
59.1

 
$
280.6

 
$
242.4

 
$
730.9

 
$
683.8

 
 
 
 
 
 
 
 
Tempur International
 

 
 

 
 

 
 

Bedding
$
84.7

 
$
76.5

 
$
261.4

 
$
239.7

Other products
29.8

 
26.7

 
88.3

 
81.5

 
$
114.5

 
$
103.2

 
$
349.7

 
$
321.2

 
 
 
 
 
 
 
 
Sealy
 

 
 

 
 

 
 

Bedding
$
407.0

 
$
365.2

 
$
1,100.3

 
$
735.0

Other products
25.3

 
24.7

 
63.4

 
46.2

 
$
432.3

 
$
389.9

 
$
1,163.7

 
$
781.2

 
$
827.4

 
$
735.5

 
$
2,244.3

 
$
1,786.2

 
 
 
 
 
 
 
 
Inter-segment sales:
 

 
 

 
 

 
 

Tempur North America
$
1.0

 
$
0.1

 
$
2.8

 
$
0.2

Tempur International
0.3

 
0.3

 
0.5

 
0.5

Sealy
7.8

 
1.5

 
16.3

 
1.5

Intercompany eliminations
(9.1
)
 
(1.9
)
 
(19.6
)
 
(2.2
)
 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
Gross profit:
 

 
 

 
 

 
 

Tempur North America
$
120.2

 
$
102.1

 
$
300.2

 
$
294.0

Tempur International
64.8

 
61.9

 
204.0

 
198.7

Sealy
133.5

 
134.7

 
352.1

 
249.3

 
$
318.5

 
$
298.7

 
$
856.3

 
$
742.0

 
 
 
 
 
 
 
 
Operating income:
 

 
 

 
 

 
 

Tempur North America
$
31.7

 
$
17.9

 
$
51.1

 
$
44.0

Tempur International
19.7

 
22.9

 
66.9

 
78.1

Sealy
35.7

 
40.4

 
81.8

 
47.6

 
$
87.1

 
$
81.2

 
$
199.8

 
$
169.7

 
 
 
 
 
 
 
 
Income (loss) before income taxes:
 

 
 

 
 

 
 

Tempur North America
$
9.2

 
$
(3.3
)
 
$
(11.5
)
 
$
(37.9
)
Tempur International
19.0

 
22.3

 
65.2

 
75.0

Sealy
31.7

 
36.7

 
52.8

 
40.4

 
$
59.9

 
$
55.7

 
$
106.5

 
$
77.5

 
 
 
 
 
 
 
 
Depreciation and amortization (including stock-based compensation amortization):
 

 
 

 
 

 
 

Tempur North America
$
8.3

 
$
11.8

 
$
22.5

 
$
32.4

Tempur International
3.4

 
3.2

 
10.0

 
9.4

Sealy
9.7

 
11.7

 
34.6

 
24.5

 
$
21.4

 
$
26.7

 
$
67.1

 
$
66.3

 
 
 
 
 
 
 
 
Intercompany royalties:
 

 
 

 
 

 
 

Tempur North America
$
1.7

 
$
1.6

 
$
4.6

 
$
4.3

Tempur International
(1.7
)
 
(1.6
)
 
(4.6
)
 
(4.3
)
Sealy
—

 
—

 
—

 
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
Capital expenditures:
 

 
 

 
 

 
 

Tempur North America
$
6.6

 
$
2.9

 
$
12.7

 
$
13.8

Tempur International
3.8

 
2.6

 
8.3

 
7.3

Sealy
3.0

 
3.6

 
9.3

 
7.3

 
$
13.4

 
$
9.1

 
$
30.3

 
$
28.4