Guarantor/Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of supplemental condensed consolidated statements of income and comprehensive income

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended March 31, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	529.8		$	212.7		$	(20.4	)	$	722.1
Cost of sales	—			330.3			125.6			(20.4		)	435.5
Gross profit	—			199.5			87.1			—			286.6
Selling and marketing expenses	1.4			104.9			47.4			—			153.7
General, administrative and other expenses	4.0			44.3			18.2			—			66.5
Customer termination charges, net	(8.4		)	21.8			1.0			—			14.4
Equity income in earnings of unconsolidated affiliates	—			—			(2.7		)	—			(2.7		)
Royalty income, net of royalty expense	—			(4.8		)	—			—			(4.8		)
Operating income	3.0			33.3			23.2			—			59.5

Other expense, net:
Third party interest expense, net	14.9			6.5			0.7			—			22.1
Intercompany interest (income) expense, net	(1.2		)	(0.3		)	1.5			—			—
Interest expense, net	13.7			6.2			2.2			—			22.1
Other (income) expense, net	—			(9.3		)	0.1			—			(9.2		)
Total other expense (income), net	13.7			(3.1		)	2.3			—			12.9

Income from equity investees	40.6			15.6			—			(56.2		)	—

Income before income taxes	29.9			52.0			20.9			(56.2		)	46.6
Income tax benefit (provision)	2.1			(11.4		)	(5.3		)	—			(14.6		)
Net income before non-controlling interests	32.0			40.6			15.6			(56.2		)	32.0
Less: Net loss attributable to non-controlling interests	(1.9		)	—			(1.9		)	1.9			(1.9		)
Net income attributable to Tempur Sealy International, Inc.	$	33.9		$	40.6		$	17.5		$	(58.1	)	$	33.9

Comprehensive income attributable to Tempur Sealy International, Inc.	$	42.2		$	36.1		$	30.4		$	(66.5	)	$	42.2

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended March 31, 2016

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	550.7		$	184.1		$	(13.8	)	$	721.0
Cost of sales	—			348.4			95.4			(13.8		)	430.0
Gross profit	—			202.3			88.7			—			291.0
Selling and marketing expenses	1.8			102.1			46.2			—			150.1
General, administrative and other expenses	4.8			50.9			16.0			—			71.7
Equity income in earnings of unconsolidated affiliates	—			—			(2.8		)	—			(2.8		)
Royalty income, net of royalty expense	—			(4.7		)	—			—			(4.7		)
Operating (loss) income	(6.6		)	54.0			29.3			—			76.7

Other expense, net:
Third party interest expense, net	20.0			0.8			0.6			—			21.4
Intercompany interest (income) expense, net	(1.1		)	—			1.1			—			—
Interest expense, net	18.9			0.8			1.7			—			21.4
Other (income) expense, net	—			(1.7		)	0.7			—			(1.0		)
Total other expense (income), net	18.9			(0.9		)	2.4			—			20.4

Income from equity investees	56.5			22.0			—			(78.5		)	—

Income before income taxes	31.0			76.9			26.9			(78.5		)	56.3
Income tax benefit (provision)	8.0			(20.4		)	(4.9		)	—			(17.3		)
Net income before non-controlling interests	39.0			56.5			22.0			(78.5		)	39.0
Less: Net loss attributable to non-controlling interests	(0.6		)	(0.6		)	—			0.6			(0.6		)
Net income attributable to Tempur Sealy International, Inc.	$	39.6		$	57.1		$	22.0		$	(79.1	)	$	39.6

Comprehensive income attributable to Tempur Sealy International, Inc.	$	53.8		$	57.3		$	45.2		$	(102.5	)	$	53.8

Schedule of supplemental condensed consolidated balance sheets

Supplemental Condensed Consolidated Balance Sheets

March 31, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS

Current Assets:
Cash and cash equivalents	$	—		$	5.6	$	36.9		$	—		$	42.5
Accounts receivable, net	—			193.4		150.7			—			344.1
Inventories, net	—			107.6		84.6			—			192.2
Income taxes receivable	241.9			—		—			(241.9		)	—
Prepaid expenses and other current assets	0.7			43.0		18.3			—			62.0
Total Current Assets	242.6			349.6		290.5			(241.9		)	640.8
Property, plant and equipment, net	—			345.0		75.1			—			420.1
Goodwill	—			500.2		224.0			—			724.2
Other intangible assets, net	—			586.7		88.7			—			675.4
Deferred income taxes	14.9			—		24.0			(14.9		)	24.0
Other non-current assets	—			45.4		150.4			—			195.8
Net investment in subsidiaries	2,310.3			—		—			(2,310.3		)	—
Due from affiliates	129.3			2,071.4		11.8			(2,212.5		)	—
Total Assets	$	2,697.1		$	3,898.3	$	864.5		$	(4,779.6	)	$	2,680.3

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current Liabilities:
Accounts payable	$	—		$	163.8	$	64.9		$	—		$	228.7
Accrued expenses and other current liabilities	21.4			152.5		65.7			—			239.6
Income taxes payable	—			254.4		3.0			(241.9		)	15.5
Current portion of long-term debt	—			34.5		32.4			—			66.9
Total Current Liabilities	21.4			605.2		166.0			(241.9		)	550.7
Long-term debt, net	1,040.7			748.1		1.0			—			1,789.8
Deferred income taxes	—			164.4		20.7			(14.9		)	170.2
Other non-current liabilities	—			47.6		133.3			—			180.9
Due to affiliates	1,646.3			22.7		565.6			(2,234.6		)	—
Total Liabilities	2,708.4			1,588.0		886.6			(2,491.4		)	2,691.6

Redeemable non-controlling interest	6.5			—		6.5			(6.5		)	6.5

Total Stockholders' (Deficit) Equity	(17.8		)	2,310.3		(28.6		)	(2,281.7		)	(17.8		)
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ (Deficit) Equity	$	2,697.1		$	3,898.3	$	864.5		$	(4,779.6	)	$	2,680.3

Supplemental Condensed Consolidated Balance Sheets

December 31, 2016

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS

Current Assets:
Cash and cash equivalents	$	—		$	7.9	$	57.8	$	—		$	65.7
Accounts receivable, net	—			197.7		147.4		—			345.1
Inventories, net	—			117.1		79.7		—			196.8
Income taxes receivable	234.2			—		—		(234.2		)	—
Prepaid expenses and other current assets	—			48.9		15.0		—			63.9
Total Current Assets	234.2			371.6		299.9		(234.2		)	671.5
Property, plant and equipment, net	—			346.9		75.3		—			422.2
Goodwill	—			500.2		222.3		—			722.5
Other intangible assets, net	—			589.8		88.9		—			678.7
Deferred income taxes	20.6			—		22.5		(20.6		)	22.5
Other non-current assets	—			41.7		143.5		—			185.2
Net investment in subsidiaries	2,207.4			77.7		—		(2,285.1		)	—
Due from affiliates	168.4			1,874.7		14.3		(2,057.4		)	—
Total Assets	$	2,630.6		$	3,802.6	$	866.7	$	(4,597.3	)	$	2,702.6

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current Liabilities:
Accounts payable	$	0.1		$	157.0	$	62.2	$	—		$	219.3
Accrued expenses and other current liabilities	6.8			172.6		70.7		—			250.1
Income taxes payable	—			235.9		4.1		(234.2		)	5.8
Current portion of long-term debt	—			34.4		35.9		—			70.3
Total Current Liabilities	6.9			599.9		172.9		(234.2		)	545.5
Long-term debt, net	1,040.4			776.5		0.9		—			1,817.8
Deferred income taxes	—			174.9		20.3		(20.6		)	174.6
Other non-current liabilities	—			43.3		126.0		—			169.3
Due to affiliates	1,587.9			0.6		468.9		(2,057.4		)	—
Total Liabilities	2,635.2			1,595.2		789.0		(2,312.2		)	2,707.2

Redeemable non-controlling interest	7.6			—		7.6		(7.6		)	7.6

Total Stockholders' (Deficit) Equity	(12.2		)	2,207.4		70.1		(2,277.5		)	(12.2		)
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ (Deficit) Equity	$	2,630.6		$	3,802.6	$	866.7	$	(4,597.3	)	$	2,702.6

Schedule of supplemental condensed consolidated statements of cash flows

Supplemental Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	0.1		$	55.1		$	12.0		$	—	$	67.2

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(10.6		)	(2.3		)	—		(12.9		)
Other	—			0.8			0.1			—		0.9
Net cash used in investing activities	—			(9.8		)	(2.2		)	—		(12.0		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	—			251.4			51.5			—		302.9
Repayments of borrowings under long-term debt obligations	—			(278.9		)	(52.9		)	—		(331.8		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	43.6			(19.0		)	(24.6		)	—		—
Proceeds from exercise of stock options	0.1			—			—			—		0.1
Treasury stock repurchased	(43.8		)	—			—			—		(43.8		)
Other	—			(1.1		)	(2.3		)	—		(3.4		)
Net cash used in financing activities	(0.1		)	(47.6		)	(28.3		)	—		(76.0		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(2.4		)	—		(2.4		)
Decrease in cash and cash equivalents	—			(2.3		)	(20.9		)	—		(23.2		)
CASH AND CASH EQUIVALENTS, beginning of period	—			7.9			57.8			—		65.7
CASH AND CASH EQUIVALENTS, end of period	$	—		$	5.6		$	36.9		$	—	$	42.5

Supplemental Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31, 2016

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(1.3	)	$	(37.4	)	$	19.9		$	—	$	(18.8	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(10.2		)	(2.4		)	—		(12.6		)
Other	—			(0.2		)	—			—		(0.2		)
Net cash used in investing activities	—			(10.4		)	(2.4		)	—		(12.8		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	—			96.3			5.2			—		101.5
Repayments of borrowings under long-term debt obligations	—			(76.5		)	(10.5		)	—		(87.0		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	99.1			(86.9		)	(12.2		)	—		—
Proceeds from exercise of stock options	3.0			—			—			—		3.0
Excess tax benefit from stock-based compensation	1.2			—			—			—		1.2
Treasury stock repurchased	(102.0		)	—			—			—		(102.0		)
Other	—			(0.6		)	1.0			—		0.4
Net cash provided by (used in) financing activities	1.3			(67.7		)	(16.5		)	—		(82.9		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(2.3		)	—		(2.3		)
Decrease in cash and cash equivalents	—			(115.5		)	(1.3		)	—		(116.8		)
CASH AND CASH EQUIVALENTS, beginning of period	—			119.7			34.2			—		153.9
CASH AND CASH EQUIVALENTS, end of period	$	—		$	4.2		$	32.9		$	—	$	37.1