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Business Segment Information
 6 Months Ended
Jun. 30, 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:
 
June 30,
 
December 31,
(in millions)
2016
 
2015
North America
$
2,577.4

 
$
2,533.1

International
521.6

 
477.1

Corporate
700.7

 
775.0

Inter-segment eliminations
(1,080.3
)
 
(1,129.7
)
Total assets
$
2,719.4

 
$
2,655.5



     The following table summarizes property, plant and equipment, net by segment:
 
June 30,
 
December 31,
(in millions)
2016
 
2015
North America
$
237.8

 
$
239.2

International
54.3

 
54.8

Corporate
70.1

 
67.7

Total property, plant and equipment, net
$
362.2

 
$
361.7


 
The following table summarizes segment information for the three months ended June 30, 2016:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
636.2

 
$
108.6

 
$
—

 
$
—

 
$
744.8

Other sales
32.0

 
27.6

 
—

 
—

 
59.6

Net sales
668.2

 
136.2

 
—

 
—

 
804.4

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.3

 
$
0.1

 
$
—

 
$
(1.4
)
 
$
—

Inter-segment royalty expense (income)
2.1

 
(2.1
)
 
—

 
—

 
—

Gross profit
267.3

 
69.6

 
—

 
—

 
336.9

Operating income (loss)
103.3

 
23.2

 
(26.3
)
 
—

 
100.2

Income (loss) before income taxes
100.2

 
21.0

 
(92.0
)
 
—

 
29.2

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
10.9

 
$
3.9

 
$
8.1

 
$
—

 
$
22.9

Capital expenditures
5.7

 
2.4

 
3.6

 
—

 
11.7

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

Inter-segment royalty expense (income)
1.8

 
(1.8
)
 
—

 
—

 
—

Gross profit
227.4

 
70.1

 
—

 
—

 
297.5

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 six months ended June 30, 2016:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
1,190.6

 
$
221.7

 
$
—

 
$
—

 
$
1,412.3

Other sales
57.6

 
55.5

 
—

 
—

 
113.1

Net sales
1,248.2

 
277.2

 
—

 
—

 
1,525.4

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
2.5

 
$
0.1

 
$
—

 
$
(2.6
)
 
$
—

Inter-segment royalty expense (income)
3.8

 
(3.8
)
 
—

 
—

 
—

Gross profit
481.8

 
146.1

 
—

 
—

 
627.9

Operating income (loss)
180.6

 
50.5

 
(54.2
)
 
—

 
176.9

Income (loss) before income taxes
177.2

 
45.4

 
(137.1
)
 
—

 
85.5

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization(1)
$
21.2

 
$
7.8

 
$
17.6

 
$
—

 
$
46.6

Capital expenditures
11.3

 
4.7

 
8.3

 
—

 
24.3

(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
)
 
$
—

Inter-segment royalty expense (income)
3.3

 
(3.3
)
 
—

 
—

 
—

Gross profit
430.5

 
145.7

 
—

 
—

 
576.2

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





The following table summarizes property, plant and equipment, net by geographic region:
 
June 30,
 
December 31,
(in millions)
2016
 
2015
United States
$
300.8

 
$
300.1

Canada
7.1

 
6.8

Other International
54.3

 
54.8

Total property, plant and equipment, net
$
362.2

 
$
361.7

Total International
$
61.4

 
$
61.6



The following table summarizes net sales by geographic region:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in millions)
2016
 
2015
 
2016
 
2015
United States
$
614.1

 
$
580.9

 
$
1,151.3

 
$
1,128.6

Canada
54.1

 
49.4

 
96.9

 
95.8

Other International
136.2

 
134.1

 
277.2

 
279.5

Total net sales
$
804.4

 
$
764.4

 
$
1,525.4

 
$
1,503.9

Total International
$
190.3

 
$
183.5

 
$
374.1

 
$
375.3