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Business Segment Information | 9 Months Ended
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Sep. 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 payable. The following table summarizes total assets by segment:
| September 30, |  | December 31,
(in millions) | 2016 |  | 2015
North America | $ | 2,521.2 |  |  | $ | 2,533.1 |
International | 604.8 |  |  | 477.1 |
Corporate | 665.6 |  |  | 775.0 |
Inter-segment eliminations | (1,045.4 | ) |  | (1,129.7 | )
Total assets | $ | 2,746.2 |  |  | $ | 2,655.5 |
The following table summarizes property, plant and equipment, net by segment:
| September 30, |  | December 31,
(in millions) | 2016 |  | 2015
North America | $ | 240.0 |  |  | $ | 239.2 |
International | 54.9 |  |  | 54.8 |
Corporate | 70.2 |  |  | 67.7 |
Total property, plant and equipment, net | $ | 365.1 |  |  | $ | 361.7 |
The following table summarizes segment information for the three months ended September 30, 2016:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Bedding sales | $ | 667.6 |  |  | $ | 106.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 773.7 |
Other sales | 30.9 |  |  | 27.8 |  |  | — |  |  | — |  |  | 58.7 |
Net sales | 698.5 |  |  | 133.9 |  |  | — |  |  | — |  |  | 832.4 |
Inter-segment sales | $ | 1.0 |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | (1.2 | ) |  | $ | — |
Inter-segment royalty expense (income) | 1.8 |  |  | (1.8 | ) |  | — |  |  | — |  |  | — |
Gross profit | 290.1 |  |  | 72.0 |  |  | — |  |  | — |  |  | 362.1 |
Operating income (loss) | 128.3 |  |  | 25.6 |  |  | (22.8 | ) |  | — |  |  | 131.1 |
Income (loss) before income taxes | 127.1 |  |  | 23.6 |  |  | (40.4 | ) |  | — |  |  | 110.3 |
Depreciation and amortization (1) | $ | 10.8 |  |  | $ | 4.0 |  |  | $ | 8.2 |  |  | $ | — |  |  | $ | 23.0 |
Capital expenditures | 10.7 |  |  | 3.6 |  |  | 3.3 |  |  | — |  |  | 17.6 |
(1) | Depreciation and amortization includes stock-based compensation amortization expense.
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 | ) |  | $ | — |
Inter-segment royalty expense (income) | 2.0 |  |  | (2.0 | ) |  | — |  |  | — |  |  | — |
Gross profit | 287.7 |  |  | 71.9 |  |  | — |  |  | — |  |  | 359.6 |
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 nine months ended September 30, 2016:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Bedding sales | $ | 1,858.2 |  |  | $ | 327.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,186.0 |
Other sales | 88.5 |  |  | 83.3 |  |  | — |  |  | — |  |  | 171.8 |
Net sales | 1,946.7 |  |  | 411.1 |  |  | — |  |  | — |  |  | 2,357.8 |
Inter-segment sales | $ | 3.5 |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | (3.9 | ) |  | $ | — |
Inter-segment royalty expense (income) | 5.6 |  |  | (5.6 | ) |  | — |  |  | — |  |  | — |
Gross profit | 771.9 |  |  | 218.1 |  |  | — |  |  | — |  |  | 990.0 |
Operating income (loss) | 308.9 |  |  | 76.1 |  |  | (77.0 | ) |  | — |  |  | 308.0 |
Income (loss) before income taxes | 304.3 |  |  | 69.0 |  |  | (177.5 | ) |  | — |  |  | 195.8 |
Depreciation and amortization (1) | $ | 32.1 |  |  | $ | 11.7 |  |  | $ | 25.8 |  |  | $ | — |  |  | $ | 69.6 |
Capital expenditures | 22.0 |  |  | 8.3 |  |  | 11.6 |  |  | — |  |  | 41.9 |
(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 | ) |  | $ | — |
Inter-segment royalty expense (income) | 5.3 |  |  | (5.3 | ) |  | — |  |  | — |  |  | — |
Gross profit | 718.2 |  |  | 217.6 |  |  | — |  |  | — |  |  | 935.8 |
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 property, plant and equipment, net by geographic region:
| September 30, |  | December 31,
(in millions) | 2016 |  | 2015
United States | $ | 303.2 |  |  | $ | 300.1 |
Canada | 7.0 |  |  | 6.8 |
Other International | 54.9 |  |  | 54.8 |
Total property, plant and equipment, net | $ | 365.1 |  |  | $ | 361.7 |
Total International | $ | 61.9 |  |  | $ | 61.6 |
The following table summarizes net sales by geographic region:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
United States | $ | 641.4 |  |  | $ | 684.8 |  |  | $ | 1,792.7 |  |  | $ | 1,813.4 |
Canada | 57.1 |  |  | 56.4 |  |  | 154.0 |  |  | 152.2 |
Other International | 133.9 |  |  | 138.8 |  |  | 411.1 |  |  | 418.3 |
Total net sales | $ | 832.4 |  |  | $ | 880.0 |  |  | $ | 2,357.8 |  |  | $ | 2,383.9 |
Total International | $ | 191.0 |  |  | $ | 195.2 |  |  | $ | 565.1 |  |  | $ | 570.5 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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