XML 18 R39.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Stock-based Compensation (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Schedule of Stock-based Compensation Expense | The Company’s stock-based compensation expense for the year ended December 31, 2014 included PRSUs, stock options, RSUs and DSUs. A summary of the Company’s stock-based compensation expense is presented below:
| December 31,
(in millions) | 2014 |  | 2013 |  | 2012
PRSU expense (benefit) | $ | 3.5 |  |  | $ | 3.0 |  |  | $ | (0.9 | )
Stock option expense | 7.0 |  |  | 8.3 |  |  | 4.4 |
RSU/DSU expense | 2.9 |  |  | 5.6 |  |  | 2.2 |
Total stock-based compensation expense | $ | 13.4 |  |  | $ | 16.9 |  |  | $ | 5.7 |
Summary of PRSU Activity and Related Information | The following table shows the PRSUs granted under the 2013 Plan and LTIP during the year ended December 31, 2014:
(shares in millions) | Performance period |  | Target shares granted |  | Weighted-average fair value per share
Year ended 2015(1) | January 1, 2014 – December 31, 2015 |  | 0.15 |  | $ | 51.87 |
Year ended 2016(2) | January 1, 2014 - December 31, 2016 |  | 0.15 |  | $ | 51.87 |
(1) | At the end of the performance period, the actual number of shares issuable can range from zero to 200.0% of the target shares granted, which is assumed to be 100.0%.
(2) | At the end of the performance period, the actual number of shares issuable can range from zero to 300.0% of the target shares granted, which is assumed to be 100.0%.
A summary of the Company’s PRSU activity and related information for the years ended December 31, 2014 and 2013 is presented below:
(shares in millions) | Shares |  | Weighted Average Grant Date Fair Value
Awards unvested at December 31, 2012 | 0.3 |  |  | $ | 58.52 |
Granted | 0.3 |  |  | 39.34 |
Vested | — |  |  | — |
Forfeited | (0.3 | ) |  | 56.92 |
Awards unvested at December 31, 2013 | 0.3 |  |  | $ | 39.04 |
Granted | 0.3 |  |  | 51.87 |
Vested | 0.0 |  |  | 37.05 |
Forfeited | (0.3 | ) |  | 39.38 |
Awards unvested at December 31, 2014 | 0.3 |  |  | $ | 53.45 |
Stock Options Valuation Assumptions | The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. The assumptions used in the Black-Scholes pricing model for the years ended December 31, 2014, 2013 and 2012 are set forth in the following table. Expected volatility is based on the unbiased standard deviation of Tempur Sealy International’s common stock over the option term. The expected life of the options represents the period of time that the Company expects the options granted to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option for the expected term of the instrument. The dividend yield reflects an estimate of dividend payouts over the term of the award. The Company uses historical data to determine these assumptions.
| Year Ended
| December 31,
| 2014 |  | 2013 |  | 2012
Expected volatility range of stock | 56.7% - 66.5% |  | 63.0% - 72.8% |  | 49.0% - 73.0%
Expected life of option, range in years | 2 - 4 |  | 2 - 3 |  | 2 - 4
Risk-free interest range rate | 0.4% - 1.4% |  | 0.3% - 0.6% |  | 0.3% - 0.7%
Expected dividend yield on stock | 0.6% - 0.7% |  | 0.6% - 0.9% |  | 0.0% - 1.3%
Schedule of Stock Option Activity | A summary of the Company’s unvested shares relating to stock options as of December 31, 2014 and 2013, and changes during the years ended December 31, 2014 and 2013, are presented below:
(shares in millions) | Shares |  | Weighted Average Grant Date Fair Value
Options unvested at December 31, 2012 | 0.9 |  |  | $ | 23.49 |
Granted | 0.6 |  |  | 39.77 |
Vested | (0.8 | ) |  | 19.71 |
Forfeited | (0.1 | ) |  | 39.62 |
Options unvested at December 31, 2013 | 0.6 |  |  | $ | 42.16 |
Granted | 0.2 |  |  | 52.08 |
Vested | (0.3 | ) |  | 42.46 |
Forfeited | 0.0 |  |  | 50.53 |
Options unvested at December 31, 2014 | 0.5 |  |  | $ | 46.23 |
A summary of the Company’s stock option activity under the 2003 Plan and 2013 Plan for the years ended December 31, 2014 and 2013, is presented below:
(shares in millions) | Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Options outstanding at December 31, 2012 | 2.9 |  |  | $ | 17.00 |  |  |  |  |
Granted | 0.6 |  |  | 39.77 |  |  |  |  |
Exercised | (0.6 | ) |  | 14.54 |  |  |  |  |
Terminated | (0.1 | ) |  | 39.62 |  |  |  |  |
Options outstanding at December 31, 2013 | 2.8 |  |  | $ | 21.73 |  |  |  |  |
Granted | 0.2 |  |  | 52.08 |  |  |  |  |
Exercised | (0.2 | ) |  | 20.82 |  |  |  |  |
Terminated | 0.0 |  |  | 50.53 |  |  |  |  |
Options outstanding at December 31, 2014 | 2.8 |  |  | $ | 24.18 |  |  | 5.13 |  | $ | 84.3 |
Options exercisable at December 31, 2014 | 2.3 |  |  | $ | 19.20 |  |  | 4.35 |  | $ | 82.9 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company's RSU and DSU activity and related information for the years ended December 31, 2014 and 2013 is presented below:
(in millions, except release price and years) | Shares |  | Weighted Average Release Price |  | Aggregate Intrinsic Value
Awards outstanding at December 31, 2012 | 0.2 |  |  | $ | 32.03 |  |  |
Granted | 0.2 |  |  | 45.56 |  |  |
Vested | (0.2 | ) |  | 30.49 |  |  |
Terminated | — |  |  | — |  |  |
Awards outstanding at December 31, 2013 | 0.2 |  |  | $ | 47.00 |  |  |
Granted | 0.0 |  |  | 54.56 |  |  |
Vested | (0.1 | ) |  | 44.47 |  |  |
Terminated | 0.0 |  |  | 46.77 |  |  |
Awards outstanding at December 31, 2014 | 0.1 |  |  | $ | 50.41 |  |  | $ | 5.8 |
Schedule of Unrecognized Compensation Expense | A summary of total unrecognized stock-based compensation expense based on current performance estimates related to the options, DSUs, RSUs and PRSUs granted during the year ended December 31, 2014 is presented below:
(in millions, except years) | December 31, 2014 |  | Weighted Average Remaining Vesting Period (Years)
Unrecognized stock option expense | $ | 3.5 |  |  | 2.17
Unrecognized DSU/RSU expense | 0.8 |  |  | 2.11
Unrecognized PRSU expense | 9.2 |  |  | 1.56
Total unrecognized stock-based compensation expense | $ | 13.5 |  |  | 1.76

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of total share-based compensation cost, including the amounts attributable to each share-based compensation plan and any related tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested performance-based units. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedPerformanceBasedUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year. + References No definition available. + Details
Name: | us-gaap_ScheduleOfSharebasedCompensationRestrictedStockAndRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the number and weighted-average exercise prices (or conversion ratios) for share options (or share units) that were outstanding at the beginning and end of the year, vested and expected to vest, exercisable or convertible at the end of the year, and the number of share options or share units that were granted, exercised or converted, forfeited, and expired during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the total compensation cost related to nonvested awards not yet recognized and the weighted-average period over which it is expected to be recognized. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfUnrecognizedCompensationCostNonvestedAwardsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration