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Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
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. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S. and Canada. The 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 that 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:
 
September 30,
 
December 31,
(in millions)
2015
 
2014
North America
$
2,573.2

 
$
2,507.4

International
484.0

 
474.3

Corporate
709.2

 
858.5

Inter-segment eliminations
(1,027.0
)
 
(1,177.6
)
Total assets
$
2,739.4

 
$
2,662.6



     The following table summarizes property, plant and equipment, net by segment:
 
September 30,
 
December 31,
(in millions)
2015
 
2014
North America
$
239.0

 
$
240.5

International
55.3

 
60.3

Corporate
66.2

 
54.8

Total property, plant and equipment, net
$
360.5

 
$
355.6


 
The following table summarizes segment information for the three months ended September 30, 2015:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
690.8

 
$
110.2

 
$
—

 
$
—

 
$
801.0

Other sales
50.4

 
28.6

 
—

 
—

 
79.0

Net sales
741.2

 
138.8

 
—

 
—

 
880.0

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.0

 
$
0.2

 
$
—

 
$
(1.2
)
 
$
—

Gross profit
287.7

 
71.9

 
—

 
—

 
359.6

Inter-segment royalty expense (income)
2.0

 
(2.0
)
 
—

 
—

 
—

Operating income (loss)
118.4

 
23.0

 
(30.5
)
 
—

 
110.9

Income (loss) before income taxes
114.4

 
1.7

 
(50.2
)
 
—

 
65.9

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
11.3

 
$
4.0

 
$
7.7

 
$
—

 
$
23.0

Capital expenditures
5.6

 
4.4

 
7.1

 
—

 
17.1

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

The following table summarizes segment information for the three months ended September 30, 2014:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
645.8

 
$
109.5

 
$
—

 
$
—

 
$
755.3

Other sales
39.5

 
32.6

 
—

 
—

 
72.1

Net sales
685.3

 
142.1

 
—

 
—

 
827.4

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
2.0

 
$
0.1

 
$
—

 
$
(2.1
)
 
$
—

Gross profit
243.9

 
74.6

 
—

 
—

 
318.5

Inter-segment royalty expense (income)
1.7

 
(1.7
)
 
—

 
—

 
—

Operating income (loss)
86.4

 
26.1

 
(25.4
)
 
—

 
87.1

Income (loss) before income taxes
83.2

 
25.3

 
(48.6
)
 
—

 
59.9

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
10.8

 
$
3.8

 
$
7.0

 
$
—

 
$
21.6

Capital expenditures
5.1

 
3.9

 
4.4

 
—

 
13.4

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

The following table summarizes segment information for the nine months ended September 30, 2015:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
1,854.2

 
$
333.9

 
$
—

 
$
—

 
$
2,188.1

Other sales
111.4

 
84.4

 
—

 
—

 
195.8

Net sales
1,965.6

 
418.3

 
—

 
—

 
2,383.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
4.5

 
$
0.5

 
$
—

 
$
(5.0
)
 
$
—

Gross profit
718.2

 
217.6

 
—

 
—

 
935.8

Inter-segment royalty expense (income)
5.3

 
(5.3
)
 
—

 
—

 
—

Operating income (loss)
240.9

 
72.0

 
(95.6
)
 
—

 
217.3

Income (loss) before income taxes
233.0

 
47.8

 
(150.3
)
 
—

 
130.5

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
33.5

 
$
12.1

 
$
25.7

 
$
—

 
$
71.3

Capital expenditures
23.7

 
9.8

 
17.6

 
—

 
51.1

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

The following table summarizes segment information for the nine months ended September 30, 2014:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
1,710.8

 
$
337.9

 
$
—

 
$
—

 
$
2,048.7

Other sales
105.0

 
90.6

 
—

 
—

 
195.6

Net sales
1,815.8

 
428.5

 
—

 
—

 
2,244.3

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
3.8

 
$
0.2

 
$
—

 
$
(4.0
)
 
$
—

Gross profit
624.8

 
231.5

 
—

 
—

 
856.3

Inter-segment royalty expense (income)
4.6

 
(4.6
)
 
—

 
—

 
—

Operating income (loss)
188.3

 
83.9

 
(72.4
)
 
—

 
199.8

Income (loss) before income taxes
163.1

 
80.5

 
(137.1
)
 
—

 
106.5

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
36.7

 
$
12.0

 
$
18.4

 
$
—

 
$
67.1

Capital expenditures
12.2

 
9.2

 
8.9

 
—

 
30.3

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

The following table summarizes property, plant and equipment, net by geographic region:
 
September 30,
 
December 31,
(in millions)
2015
 
2014
United States
$
298.0

 
$
287.3

Canada
7.2

 
8.0

Other International
55.3

 
60.3

Total property, plant and equipment, net
$
360.5

 
$
355.6

Total International
$
62.5

 
$
68.3



The following table summarizes net sales by geographic region:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in millions)
2015
 
2014
 
2015
 
2014
United States
$
684.8

 
$
624.8

 
$
1,813.4

 
$
1,653.1

Canada
56.4

 
60.5

 
152.2

 
162.7

Other International
138.8

 
142.1

 
418.3

 
428.5

Total net sales
$
880.0

 
$
827.4

 
$
2,383.9

 
$
2,244.3

Total International
$
195.2

 
$
202.6

 
$
570.5

 
$
591.2