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Business Segment Information | 12 Months Ended
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Dec. 31, 2014
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company operates in three business segments: Tempur North America, Tempur International and Sealy. These reportable segments are strategic business units that are managed separately. The Tempur North America reportable segment consists of the two U.S. manufacturing facilities and the Tempur North America distribution subsidiaries. The Tempur International reportable segment consists of the manufacturing facility in Denmark, whose customers include all of the distribution subsidiaries and third party distributors outside the Tempur North America reportable segment. The Sealy reportable 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 Sealy reportable segment became a new reportable segment in 2013 as a result of the Sealy Acquisition. The Company evaluates segment performance based on net sales and operating income. The Company has historically included in its Tempur North America reportable segment certain corporate operating expenses. Immediately following the Sealy acquisition in March 2013, the Company began to transfer oversight of certain Sealy reportable segment corporate functions to personnel within the Tempur North America reportable segment. The transition has continued throughout 2014. As a result, the majority of corporate operating expenses are included in the Tempur North America reportable segment and a portion of corporate operating expenses are included in the Sealy segment. The transition of the Company's corporate functions has increased operating expenses in the Tempur North America reportable segment and decreased operating expenses in the Sealy reportable segment. Corporate operating expenses included in the Tempur North America reportable segment for the year ended December 31, 2014, 2013 and 2012 were $75.5 million, $83.0 million and $58.0 million, respectively. Corporate operating expenses included in the Sealy reportable segment for the year ended December 31, 2014 and 2013 were $22.0 million and $26.9 million, respectively. There were no material allocations of corporate operating expenses from the Tempur North America reportable segment to the Tempur International or Sealy reportable segments during the years ended December 31, 2014, 2013 and 2012. Effective January 1, 2015, the Company realigned its organizational structure. As a result of these changes, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed. Therefore, beginning in fiscal year 2015, the Company will report its financial reporting based on new reportable segments: North America and International. Corporate operating expenses will not be included in either of the reportable segments and will be presented separately as a reconciling item to consolidated results. The Company’s Tempur North America, Tempur International and Sealy reportable segment assets include investments in subsidiaries which are appropriately eliminated in the Company’s accompanying 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 reportable segment:
| December 31,
(in millions) | 2014 |  | 2013
Tempur North America | $ | 2,431.4 |  |  | $ | 2,110.7 |
Tempur International | 463.1 |  |  | 477.7 |
Sealy | 2,000.6 |  |  | 1,956.6 |
Inter-segment eliminations | (2,232.5 | ) |  | (1,815.1 | )
Total assets | $ | 2,662.6 |  |  | $ | 2,729.9 |
The following table summarizes long-lived assets by reportable segment:
| December 31,
(in millions) | 2014 |  | 2013
Tempur North America | $ | 137.1 |  |  | $ | 132.8 |
Tempur International | 49.2 |  |  | 53.2 |
Sealy | 169.3 |  |  | 225.6 |
Total long lived assets | $ | 355.6 |  |  | $ | 411.6 |
The following table summarizes long-lived assets by geographic region:
| Year Ended December 31,
(in millions) | 2014 |  | 2013
United States | $ | 287.3 |  |  | $ | 335.9 |
Canada | 8.0 |  |  | 9.3 |
Other International | 60.3 |  |  | 66.4 |
| $ | 355.6 |  |  | $ | 411.6 |
Total International | $ | 68.3 |  |  | $ | 75.7 |
The following table summarizes net sales by geographic region:
| Year Ended December 31,
(in millions) | 2014 |  | 2013 |  | 2012
United States | $ | 2,188.7 |  |  | $ | 1,736.8 |  |  | $ | 923.4 |
Canada | 216.4 |  |  | 190.2 |  |  | 40.8 |
Other International | 584.7 |  |  | 537.3 |  |  | 438.7 |
| $ | 2,989.8 |  |  | $ | 2,464.3 |  |  | $ | 1,402.9 |
Total International | $ | 801.1 |  |  | $ | 727.5 |  |  | $ | 479.5 |
The following table summarizes reportable segment information:
| Year Ended December 31,
(in millions) | 2014 |  | 2013 |  | 2012
Net sales to external customers: |  |  |  |  |
Tempur North America |  |  |  |  |
Bedding | $ | 930.5 |  |  | $ | 830.4 |  |  | $ | 882.3 |
Other products | 62.7 |  |  | 79.6 |  |  | 82.0 |
| $ | 993.2 |  |  | $ | 910.0 |  |  | $ | 964.3 |
Tempur International |  |  |  |  |
Bedding | $ | 354.7 |  |  | $ | 327.7 |  |  | $ | 332.4 |
Other products | 117.3 |  |  | 111.9 |  |  | 106.2 |
| $ | 472.0 |  |  | $ | 439.6 |  |  | $ | 438.6 |
Sealy |  |  |  |  |
Bedding | $ | 1,441.3 |  |  | $ | 1,040.3 |  |  | $ | — |
Other products | 83.3 |  |  | 74.4 |  |  | — |
| $ | 1,524.6 |  |  | $ | 1,114.7 |  |  | $ | — |
| $ | 2,989.8 |  |  | $ | 2,464.3 |  |  | $ | 1,402.9 |
Inter-segment sales: |  |  |  |  |
Tempur North America | $ | 3.8 |  |  | $ | 0.2 |  |  | $ | 0.9 |
Tempur International | 0.6 |  |  | 0.6 |  |  | 1.5 |
Sealy | 22.8 |  |  | 5.9 |  |  | — |
Intercompany eliminations | (27.2 | ) |  | (6.7 | ) |  | (2.4 | )
| $ | — |  |  | $ | — |  |  | $ | — |
Gross profit: |  |  |  |  |
Tempur North America | $ | 413.9 |  |  | $ | 392.7 |  |  | $ | 449.3 |
Tempur International | 274.9 |  |  | 269.8 |  |  | 265.3 |
Sealy | 461.6 |  |  | 352.4 |  |  | — |
| $ | 1,150.4 |  |  | $ | 1,014.9 |  |  | $ | 714.6 |
Operating income: |  |  |  |  |
Tempur North America | $ | 84.9 |  |  | $ | 67.6 |  |  | $ | 144.4 |
Tempur International | 91.6 |  |  | 107.5 |  |  | 103.9 |
Sealy | 99.8 |  |  | 68.7 |  |  | — |
| $ | 276.3 |  |  | $ | 243.8 |  |  | $ | 248.3 |
Income (loss) before income taxes: |  |  |  |  |
Tempur North America | $ | 19.8 |  |  | $ | (33.8 | ) |  | $ | 126.2 |
Tempur International | 88.5 |  |  | 102.6 |  |  | 103.0 |
Sealy | 66.6 |  |  | 59.2 |  |  | — |
| $ | 174.9 |  |  | $ | 128.0 |  |  | $ | 229.2 |
Depreciation and amortization (including stock-based compensation amortization): |  |  |  |  |
Tempur North America | $ | 31.7 |  |  | $ | 42.0 |  |  | $ | 30.6 |
Tempur International | 13.7 |  |  | 12.8 |  |  | 11.4 |
Sealy | 44.3 |  |  | 36.7 |  |  | — |
| $ | 89.7 |  |  | $ | 91.5 |  |  | $ | 42.0 |
Intercompany royalties: |  |  |  |  |
Tempur North America | $ | 6.1 |  |  | $ | 5.8 |  |  | $ | 12.7 |
Tempur International | (6.1 | ) |  | (5.8 | ) |  | (12.7 | )
Sealy | — |  |  | — |  |  | — |
| $ | — |  |  | $ | — |  |  | $ | — |
Capital expenditures: |  |  |  |  |
Tempur North America | $ | 20.2 |  |  | $ | 20.7 |  |  | $ | 36.8 |
Tempur International | 14.4 |  |  | 10.1 |  |  | 13.7 |
Sealy | 12.9 |  |  | 9.2 |  |  | — |
| $ | 47.5 |  |  | $ | 40.0 |  |  | $ | 50.5 |

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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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