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Business Segment Information
 12 Months Ended
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