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Segment Information
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
Effective January 1, 2015, the Company realigned its organizational structure in light of the progress made in 2013 and 2014 integrating Sealy into its business. As a result of these changes, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed such that it is based on geography.

As a result of this realignment, the Company updated its segment reporting. Effective January 1, 2015, the Company operates in two segments: North America and International. Corporate operating expenses are not included in either of the segments and are presented separately as a reconciling item to consolidated results. These segments are strategic business units that are managed separately based on geography. Our North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S. and Canada. Our International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. The Company evaluates segment performance based on net sales, gross profit and operating income.

The Company’s North America and International 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 and payables.
  
The historical information presented in the tables below has been restated for the change in the composition of the segments.

The following table summarizes total assets by segment:
(in millions)
March 31,
 
December 31,
 
2015
 
2014
North America
$
2,531.7

 
$
2,507.4

International
477.3

 
474.3

Corporate
673.8

 
858.5

Inter-segment eliminations
(1,027.7
)
 
(1,177.6
)
Total assets
$
2,655.1

 
$
2,662.6



     The following table summarizes long-lived assets by segment:
(in millions)
March 31,
 
December 31,
 
2015
 
2014
North America
$
240.7

 
$
240.5

International
53.7

 
60.3

Corporate
58.7

 
54.8

Total long-lived assets:
$
353.1

 
$
355.6


 
The following table summarizes segment information for the three months ended March 31, 2015:
(in millions)
North America
 
International
 
Corporate
 
Intercompany Eliminations
 
Consolidated
Bedding sales
$
558.6

 
$
117.1

 
$
—

 
$
—

 
$
675.7

Other sales
35.5

 
28.3

 
—

 
—

 
63.8

Net sales
594.1

 
145.4

 
—

 
—

 
739.5

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.7

 
$
0.1

 
$
—

 
$
(1.8
)
 
$
—

Gross profit
203.1

 
75.6

 
—

 
—

 
278.7

Intercompany royalty expense (income)
1.5

 
(1.5
)
 
—

 
—

 
—

Operating income (expense)
57.9

 
25.3

 
(28.8
)
 
—

 
54.4

Income (loss) before income taxes
56.5

 
25.3

 
(46.5
)
 
—

 
35.3

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
10.6

 
$
4.0

 
$
7.2

 
$
—

 
$
21.8

Capital expenditures
8.2

 
2.1

 
5.1

 
—

 
15.4

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the three months ended March 31, 2014:
(in millions)
North America
 
International
 
Corporate
 
Intercompany Eliminations
 
Consolidated
Bedding sales
$
517.1

 
$
118.9

 
$
—

 
$
—

 
$
636.0

Other sales
35.5

 
30.4

 
—

 
—

 
65.9

Net sales
552.6

 
149.3

 
—

 
—

 
701.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
0.1

 
$
—

 
$
—

 
$
(0.1
)
 
$
—

Gross profit
186.2

 
83.3

 
—

 
—

 
269.5

Intercompany royalty expense (income)
1.5

 
(1.5
)
 
—

 
—

 
—

Operating income (expense)
53.1

 
33.5

 
(24.2
)
 
—

 
62.4

Income (loss) before income taxes
51.5

 
31.9

 
(44.2
)
 
—

 
39.2

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
13.3

 
$
3.6

 
$
7.1

 
$
—

 
$
24.0

Capital expenditures
4.7

 
1.9

 
1.2

 
—

 
7.8

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes long-lived assets by geographic region:
(in millions)
March 31,
 
December 31,
 
2015
 
2014
United States
$
292.2

 
$
287.3

Canada
7.2

 
8.0

Other International
53.7

 
60.3

Total long-lived assets
$
353.1

 
$
355.6

Total International
$
60.9

 
$
68.3



The following table summarizes net sales by geographic region:
(in millions)
Three Months Ended
 
March 31,
 
2015
 
2014
United States
$
547.7

 
$
504.0

Canada
46.4

 
48.6

Other International
145.4

 
149.3

Total net sales
$
739.5

 
$
701.9

Total International
$
191.8

 
$
197.9