XML 32 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
Stockholders' Equity
 12 Months Ended
Dec. 31, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Stockholders' Equity
 
(a) Common Stock. Tempur Sealy International has 300.0 million authorized shares of common stock with $0.01 per share par value and 0.01 million authorized shares of preferred stock with $0.01 per share par value. The holders of the common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared from time to time by the Board of Directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.
    
The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of preferred stock in one or more series. Each such series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as determined by the Board of Directors, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights.

(b) Treasury Stock. Tempur Sealy International sold 69,686 shares of Common Stock pursuant to a subscription agreement entered into with the Company's CEO in connection with his hiring by the Company. These shares were issued through treasury stock and the Company received $5.0 million as proceeds from the issuance of the treasury shares from the CEO. Please refer to "Recent Sales of Unregistered Securities" included in Part II, ITEM 5 for additional information.

(c) Accumulated Other Comprehensive Loss (“AOCL”). AOCL consisted of the following:
 
Year Ended December 31,
(in millions)
2015
 
2014
 
2013
Foreign Currency Translation
 
 
 
 
 
Balance at beginning of period
$
(54.0
)
 
$
(15.6
)
 
$
(5.0
)
Other comprehensive (loss) income:
 
 
 
 
 
Foreign currency translation adjustments (1)
(61.4
)
 
(38.4
)
 
(13.3
)
Tax benefit (1)
—

 
—

 
2.7

Balance at end of period
$
(115.4
)
 
$
(54.0
)
 
$
(15.6
)
 
 
 
 
 
 
Interest Rate Swap Agreement
 
 
 
 
 
Balance at beginning of period
$
(0.7
)
 
$
(1.4
)
 
$
(2.7
)
Other comprehensive income:
 
 
 
 
 
Net change from period revaluations:
3.1

 
3.0

 
5.2

Tax expense (2)
(1.2
)
 
(1.2
)
 
(1.5
)
Total other comprehensive income before reclassifications, net of tax
1.9

 
1.8

 
3.7

Net amount reclassified to earnings (3)
(1.9
)
 
(1.9
)
 
(3.2
)
Tax benefit (2)
0.7

 
0.8

 
0.8

Total amount reclassified from accumulated other comprehensive loss, net of tax
(1.2
)
 
(1.1
)
 
(2.4
)
Total other comprehensive income
0.7

 
0.7

 
1.3

Balance at end of period
$
—

 
$
(0.7
)
 
$
(1.4
)
 
 
 
 
 
 
Pension Benefits
 
 
 
 
 
Balance at beginning of period
$
(2.4
)
 
$
3.2

 
$
—

Other comprehensive income:
 
 
 
 
 
Net change from period revaluations:
0.2

 
(9.0
)
 
5.2

Tax (expense) benefit (2)
—

 
3.4

 
(2.0
)
Total other comprehensive income (loss) before reclassifications, net of tax
0.2

 
(5.6
)
 
3.2

Net amount reclassified to earnings
$
1.3

 
$
—

 
$
—

Tax benefit(2)
(0.5
)
 
—

 
0.0

Total amount reclassified from accumulated other comprehensive income, net of tax
0.8

 
—

 
—

Total other comprehensive income (loss)
1.0

 
(5.6
)
 
3.2

Balance at end of period
$
(1.4
)
 
$
(2.4
)
 
$
3.2

 
 
 
 
 
 
Foreign Exchange Forward Contracts
 
 
 
 
 
Balance at beginning of period
$
1.3

 
$
—

 
$
—

Other comprehensive income (loss):
 
 
 
 
 
Net change from period revaluations:
14.6

 
3.4

 
—

Tax expense (2)
(3.8
)
 
(0.9
)
 
—

Total other comprehensive income before reclassifications, net of tax
10.8

 
2.5

 
—

Net amount reclassified to earnings (4)
(7.4
)
 
(1.6
)
 
—

Tax benefit (2)
1.9

 
0.4

 
—

Total amount reclassified from accumulated other comprehensive income, net of tax
(5.5
)
 
(1.2
)
 
—

Total other comprehensive income
5.3

 
1.3

 
—

Balance at end of period
$
6.6

 
$
1.3

 
$
—

(1)
In 2015, 2014 and 2013, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. In 2012, a $2.7 million tax impact was recorded which reversed in 2013.
(2)
These amounts were included in the income tax provision on the accompanying Consolidated Statements of Income.
(3)
This amount was included in interest expense, net on the accompanying Consolidated Statements of Income.
(4)
This amount was included in cost of sales, net on the accompanying Consolidated Statements of Income.