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Stock-based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Schedule of Stock-based Compensation Expense | The Company’s stock-based compensation expense for the year ended December 31, 2015 included PRSUs, stock options, restricted stock units ("RSUs") and deferred stock units ("DSUs"). A summary of the Company’s stock-based compensation expense is presented below:
| December 31,
(in millions) | 2015 |  | 2014 |  | 2013
PRSU expense | $ | 13.7 |  |  | $ | 3.5 |  |  | $ | 3.0 |
Stock option expense | 6.6 |  |  | 7.0 |  |  | 8.3 |
RSU/DSU expense | 2.2 |  |  | 2.9 |  |  | 5.6 |
Total stock-based compensation expense | $ | 22.5 |  |  | $ | 13.4 |  |  | $ | 16.9 |
Summary of PRSU Activity and Related Information | A summary of the Company’s PRSU activity and related information for the years ended December 31, 2015 and 2014 is presented below:
(shares in millions) | Shares |  | Weighted Average Grant Date Fair Value
Awards unvested at December 31, 2013 | 0.3 |  |  | $ | 39.04 |
Granted | 0.3 |  |  | 51.87 |
Vested | 0.0 |  |  | 37.05 |
Forfeited | (0.3 | ) |  | 39.38 |
Awards unvested at December 31, 2014 | 0.3 |  |  | $ | 53.45 |
Granted | 1.7 |  |  | 70.43 |
Vested | — |  |  | — |
Forfeited | (0.1 | ) |  | 56.74 |
Awards unvested at December 31, 2015 | 1.9 |  |  | $ | 68.17 |
The following table shows the PRSUs granted under the 2013 Plan and related Long-Term Incentive Plan, the maximum number of shares to be awarded under the PRSUs granted during the twelve months ended December 31, 2015 and the performance date and vesting schedule of the PRSUs granted.
(shares in millions) |  |  |  |
Number of Shares Granted |  | Maximum Number of Shares to be Awarded |  | Performance Date |  | Vesting Schedule
0.26 |  |  | 0.78 |  |  | December 31, 2017 |  | December 31, 2017
1.39 |  |  | 1.39 |  |  | December 31, 2017(1) |  | December 31, 2017(1)
0.07 |  |  | 0.07 |  |  | December 31, 2016 |  | Three annual installments beginning on September 4, 2016
(1) | These shares will vest in full if the Company achieves the performance metric per the award agreement in 2017. In addition, if this target is not met in 2017 but the Company achieves the performance metric in 2018, then one-third, or 0.46 million, of the PRSUs will vest, and the remaining PRSUs shall be forfeited.
Stock Options Valuation Assumptions | The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. The assumptions used in the Black-Scholes pricing model for the years ended December 31, 2015, 2014 and 2013 are set forth in the following table. Expected volatility is based on the unbiased standard deviation of Tempur Sealy International’s common stock over the option term. The expected life of the options represents the period of time that the Company expects the options granted to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option for the expected term of the instrument. The dividend yield reflects an estimate of dividend payouts over the term of the award. The Company uses historical data to determine these assumptions.
| Year Ended
| December 31,
| 2015 |  | 2014 |  | 2013
Expected volatility range of stock | 34.0% - 36.2% |  | 56.7% - 66.5% |  | 63.0% - 72.8%
Expected life of option, range in years | 3 - 5 |  | 2 - 4 |  | 2 - 3
Risk-free interest range rate | 0.9% - 1.5% |  | 0.4% - 1.4% |  | 0.3% - 0.6%
Expected dividend yield on stock | 0.0% - 0.0% |  | 0.6% - 0.7% |  | 0.6% - 0.9%
Schedule of Stock Option Activity | A summary of the Company’s unvested shares relating to stock options as of December 31, 2015 and 2014, and changes during the years ended December 31, 2015 and 2014, are presented below:
(shares in millions) | Shares |  | Weighted Average Grant Date Fair Value
Options unvested at December 31, 2013 | 0.6 |  |  | $ | 42.16 |
Granted | 0.2 |  |  | 52.08 |
Vested | (0.3 | ) |  | 42.46 |
Forfeited | 0.0 |  |  | 50.53 |
Options unvested at December 31, 2014 | 0.5 |  |  | $ | 46.23 |
Granted | 0.8 |  |  | 63.55 |
Vested | (0.4 | ) |  | 44.25 |
Forfeited | (0.1 | ) |  | 57.12 |
Options unvested at December 31, 2015 | 0.8 |  |  | $ | 62.34 |
A summary of the Company’s stock option activity under the 2003 Plan and 2013 Plan for the years ended December 31, 2015 and 2014 is presented below:
(shares in millions) | Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Options outstanding at December 31, 2013 | 2.8 |  |  | $ | 21.73 |  |  |  |  |
Granted | 0.2 |  |  | 52.08 |  |  |  |  |
Released | (0.2 | ) |  | 20.82 |  |  |  |  |
Forfeited | 0.0 |  |  | 50.53 |  |  |  |  |
Options outstanding at December 31, 2014 | 2.8 |  |  | $ | 24.18 |  |  |  |  |
Granted | 0.8 |  |  | 63.55 |  |  |  |  |
Released | (1.4 | ) |  | 14.70 |  |  |  |  |
Forfeited | (0.1 | ) |  | 57.12 |  |  |  |  |
Options outstanding at December 31, 2015 | 2.1 |  |  | $ | 42.75 |  |  | 6.47 |  | $ | 53.4 |
Options exercisable at December 31, 2015 | 1.3 |  |  | $ | 31.11 |  |  | 4.85 |  | $ | 52.0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company's RSU and DSU activity and related information for the years ended December 31, 2015 and 2014 is presented below:
(in millions, except release price and years) | Shares |  | Weighted Average Release Price |  | Aggregate Intrinsic Value
Awards outstanding at December 31, 2013 | 0.2 |  |  | $ | 47.00 |  |  |
Granted | 0.0 |  |  | 54.56 |  |  |
Vested | (0.1 | ) |  | 44.47 |  |  |
Terminated | 0.0 |  |  | 46.77 |  |  |
Awards outstanding at December 31, 2014 | 0.1 |  |  | $ | 50.41 |  |  |
Granted | 0.1 |  |  | 70.44 |  |  |
Vested | (0.1 | ) |  | 58.73 |  |  |
Terminated | 0.0 |  |  | 49.63 |  |  |
Awards outstanding at December 31, 2015 | 0.1 |  |  | $ | 66.41 |  |  | $ | 11.9 |
Schedule of Unrecognized Compensation Expense | summary of total unrecognized stock-based compensation expense based on current performance estimates related to the options, DSUs, RSUs and PRSUs granted during the year ended December 31, 2015 is presented below:
(in millions, except years) | December 31, 2015 |  | Weighted Average Remaining Vesting Period (Years)
Unrecognized stock option expense | $ | 9.2 |  |  | 2.49
Unrecognized DSU/RSU expense | 7.9 |  |  | 2.59
Unrecognized PRSU expense | 10.9 |  |  | 2.29
Total unrecognized stock-based compensation expense | $ | 28.0 |  |  | 2.44

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