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Business Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
 
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 following table summarizes total assets by segment:
 
March 31,
 
December 31,
(in millions)
2016
 
2015
North America
$
2,498.0

 
$
2,533.1

International
488.0

 
477.1

Corporate
657.3

 
775.0

Inter-segment eliminations
(1,066.5
)
 
(1,129.7
)
Total assets
$
2,576.8

 
$
2,655.5



     The following table summarizes property, plant and equipment, net by segment:
 
March 31,
 
December 31,
(in millions)
2016
 
2015
North America
$
238.7

 
$
239.2

International
56.2

 
54.8

Corporate
70.0

 
67.7

Total property, plant and equipment, net
$
364.9

 
$
361.7


 
The following table summarizes segment information for the three months ended March 31, 2016:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
554.4

 
$
113.1

 
$
—

 
$
—

 
$
667.5

Other sales
25.6

 
27.9

 
—

 
—

 
53.5

Net sales
580.0

 
141.0

 
—

 
—

 
721.0

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.2

 
$
0.1

 
$
—

 
$
(1.3
)
 
$
—

Inter-segment royalty expense (income)
1.7

 
(1.7
)
 
—

 
—

 
—

Gross profit
214.5

 
76.5

 
—

 
—

 
291.0

Operating income (loss)
77.3

 
27.3

 
(27.9
)
 
—

 
76.7

Income (loss) before income taxes
77.0

 
24.4

 
(45.1
)
 
—

 
56.3

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
10.4

 
$
3.8

 
$
9.5

 
$
—

 
$
23.7

Capital expenditures
5.6

 
2.3

 
4.7

 
—

 
12.6

(1)
Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the three months ended March 31, 2015:
(in millions)
North America
 
International
 
Corporate
 
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
)
 
$
—

Inter-segment royalty expense (income)
1.5

 
(1.5
)
 
—

 
—

 
—

Gross profit
203.1

 
75.6

 
—

 
—

 
278.7

Operating income (loss)
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 property, plant and equipment, net by geographic region:
 
March 31,
 
December 31,
(in millions)
2016
 
2015
United States
$
301.6

 
$
300.1

Canada
7.2

 
6.8

Other International
56.1

 
54.8

Total property, plant and equipment, net
$
364.9

 
$
361.7

Total International
$
63.3

 
$
61.6



The following table summarizes net sales by geographic region:
 
Three Months Ended
 
March 31,
(in millions)
2016
 
2015
United States
$
537.1

 
$
547.7

Canada
42.9

 
46.4

Other International
141.0

 
145.4

Total net sales
$
721.0

 
$
739.5

Total International
$
183.9

 
$
191.8