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Segment Information
 6 Months Ended
Jun. 30, 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 the Company's 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)
June 30,
 
December 31,
 
2015
 
2014
North America
$
2,577.5

 
$
2,507.4

International
481.8

 
474.3

Corporate
698.8

 
858.5

Inter-segment eliminations
(1,041.2
)
 
(1,177.6
)
Total assets
$
2,716.9

 
$
2,662.6



     The following table summarizes property, plant and equipment, net by segment:
(in millions)
June 30,
 
December 31,
 
2015
 
2014
North America
$
241.7

 
$
240.5

International
55.5

 
60.3

Corporate
61.4

 
54.8

Total property, plant and equipment, net
$
358.6

 
$
355.6


 
The following table summarizes segment information for the three months ended June 30, 2015:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
604.8

 
$
106.6

 
$
—

 
$
—

 
$
711.4

Other sales
25.5

 
27.5

 
—

 
—

 
53.0

Net sales
630.3

 
134.1

 
—

 
—

 
764.4

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.8

 
$
0.2

 
$
—

 
$
(2.0
)
 
$
—

Gross profit
227.4

 
70.1

 
—

 
—

 
297.5

Intersegment royalty expense (income)
1.8

 
(1.8
)
 
—

 
—

 
—

Operating income (loss)
64.6

 
23.7

 
(36.3
)
 
—

 
52.0

Income (loss) before income taxes
62.1

 
20.8

 
(53.6
)
 
—

 
29.3

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
11.6

 
$
4.1

 
$
10.8

 
$
—

 
$
26.5

Capital expenditures
9.9

 
3.3

 
5.4

 
—

 
18.6

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

The following table summarizes segment information for the three months ended June 30, 2014:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
547.9

 
$
109.5

 
$
—

 
$
—

 
$
657.4

Other sales
30.0

 
27.6

 
—

 
—

 
57.6

Net sales
577.9

 
137.1

 
—

 
—

 
715.0

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.7

 
$
0.1

 
$
—

 
$
(1.8
)
 
$
—

Gross profit
194.7

 
73.6

 
—

 
—

 
268.3

Intersegment royalty expense (income)
1.4

 
(1.4
)
 
—

 
—

 
—

Operating income (loss)
48.8

 
24.3

 
(22.8
)
 
—

 
50.3

Income (loss) before income taxes
28.4

 
23.3

 
(44.3
)
 
—

 
7.4

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
12.6

 
$
4.6

 
$
4.3

 
$
—

 
$
21.5

Capital expenditures
2.4

 
3.4

 
3.3

 
—

 
9.1

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

The following table summarizes segment information for the six months ended June 30, 2015:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
1,163.4

 
$
223.7

 
$
—

 
$
—

 
$
1,387.1

Other sales
61.0

 
55.8

 
—

 
—

 
116.8

Net sales
1,224.4

 
279.5

 
—

 
—

 
1,503.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
3.5

 
$
0.3

 
$
—

 
$
(3.8
)
 
$
—

Gross profit
430.5

 
145.7

 
—

 
—

 
576.2

Intersegment royalty expense (income)
3.3

 
(3.3
)
 
—

 
—

 
—

Operating income (loss)
122.5

 
49.0

 
(65.1
)
 
—

 
106.4

Income (loss) before income taxes
118.6

 
46.1

 
(100.1
)
 
—

 
64.6

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
22.2

 
$
8.1

 
$
18.0

 
$
—

 
$
48.3

Capital expenditures
18.1

 
5.4

 
10.5

 
—

 
34.0

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

The following table summarizes segment information for the six months ended June 30, 2014:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
1,065.0

 
$
228.4

 
$
—

 
$
—

 
$
1,293.4

Other sales
65.5

 
58.0

 
—

 
—

 
123.5

Net sales
1,130.5

 
286.4

 
—

 
—

 
1,416.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.8

 
$
0.1

 
$
—

 
$
(1.9
)
 
$
—

Gross profit
380.9

 
156.9

 
—

 
—

 
537.8

Intersegment royalty expense (income)
2.9

 
(2.9
)
 
—

 
—

 
—

Operating income (loss)
101.9

 
57.8

 
(47.0
)
 
—

 
112.7

Income (loss) before income taxes
79.9

 
55.2

 
(88.5
)
 
—

 
46.6

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
25.9

 
$
8.2

 
$
11.4

 
$
—

 
$
45.5

Capital expenditures
7.1

 
5.3

 
4.5

 
—

 
16.9

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

The following table summarizes property, plant and equipment, net by geographic region:
(in millions)
June 30,
 
December 31,
 
2015
 
2014
United States
$
295.6

 
$
287.3

Canada
7.5

 
8.0

Other International
55.5

 
60.3

Total property, plant and equipment, net
$
358.6

 
$
355.6

Total International
$
63.0

 
$
68.3



The following table summarizes net sales by geographic region:
(in millions)
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
United States
$
580.9

 
$
524.3

 
$
1,128.6

 
$
1,028.3

Canada
49.4

 
53.6

 
95.8

 
102.2

Other International
134.1

 
137.1

 
279.5

 
286.4

Total net sales
$
764.4

 
$
715.0

 
$
1,503.9

 
$
1,416.9

Total International
$
183.5

 
$
190.7

 
$
375.3

 
$
388.6