XML 30 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Segment Information
 9 Months Ended
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