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Business Segment Information | 6 Months Ended
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Jun. 30, 2017
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:
(in millions) | June 30, 2017 |  | December 31, 2016
North America | $ | 2,689.1 |  |  | $ | 2,581.4 |
International | 612.4 |  |  | 572.6 |
Corporate | 649.9 |  |  | 658.7 |
Inter-segment eliminations | (1,240.2 | ) |  | (1,110.1 | )
Total assets | $ | 2,711.2 |  |  | $ | 2,702.6 |
The following table summarizes property, plant and equipment, net by segment:
(in millions) | June 30, 2017 |  | December 31, 2016
North America | $ | 295.8 |  |  | $ | 297.4 |
International | 54.0 |  |  | 54.9 |
Corporate | 75.0 |  |  | 69.9 |
Total property, plant and equipment, net | $ | 424.8 |  |  | $ | 422.2 |
The following table summarizes segment information for the three months ended June 30, 2017:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Net sales | $ | 525.4 |  |  | $ | 133.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 659.3 |
Inter-segment sales | $ | 1.3 |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | (1.5 | ) |  | $ | — |
Inter-segment royalty expense (income) | 1.2 |  |  | (1.2 | ) |  | — |  |  | — |  |  | — |
Gross profit | 198.9 |  |  | 69.7 |  |  | — |  |  | — |  |  | 268.6 |
Operating income (loss) | 55.8 |  |  | 26.3 |  |  | (25.5 | ) |  | — |  |  | 56.6 |
Income (loss) before income taxes | 54.3 |  |  | 24.9 |  |  | (44.4 | ) |  | — |  |  | 34.8 |
Depreciation and amortization (1) | $ | 12.9 |  |  | $ | 3.6 |  |  | $ | 9.6 |  |  | $ | — |  |  | $ | 26.1 |
Capital expenditures | 5.1 |  |  | 2.1 |  |  | 5.8 |  |  | — |  |  | 13.0 |
(1) | Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the three months ended June 30, 2016:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
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 six months ended June 30, 2017:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Net sales | $ | 1,107.7 |  |  | $ | 273.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,381.4 |
Inter-segment sales | $ | 2.2 |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | (2.5 | ) |  | $ | — |
Inter-segment royalty expense (income) | 2.9 |  |  | (2.9 | ) |  | — |  |  | — |  |  | — |
Gross profit | 413.4 |  |  | 141.8 |  |  | — |  |  | — |  |  | 555.2 |
Operating income (loss) | 107.1 |  |  | 52.2 |  |  | (43.2 | ) |  | — |  |  | 116.1 |
Income (loss) before income taxes | 113.7 |  |  | 48.6 |  |  | (80.9 | ) |  | — |  |  | 81.4 |
Depreciation and amortization (1) | $ | 25.2 |  |  | $ | 7.3 |  |  | $ | 9.8 |  |  | $ | — |  |  | $ | 42.3 |
Capital expenditures | 13.7 |  |  | 3.6 |  |  | 8.6 |  |  | — |  |  | 25.9 |
(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
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 property, plant and equipment, net by geographic region:
(in millions) | June 30, 2017 |  | December 31, 2016
United States | $ | 363.8 |  |  | $ | 360.7 |
Canada | 7.0 |  |  | 6.6 |
Other International | 54.0 |  |  | 54.9 |
Total property, plant and equipment, net | $ | 424.8 |  |  | $ | 422.2 |
Total International | $ | 61.0 |  |  | $ | 61.5 |
The following table summarizes net sales by geographic region:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(in millions) | 2017 |  | 2016 |  | 2017 |  | 2016
United States | $ | 471.2 |  |  | $ | 614.1 |  |  | $ | 1,004.7 |  |  | $ | 1,151.3 |
Canada | 54.2 |  |  | 54.1 |  |  | 103.0 |  |  | 96.9 |
Other International | 133.9 |  |  | 136.2 |  |  | 273.7 |  |  | 277.2 |
Total net sales | $ | 659.3 |  |  | $ | 804.4 |  |  | $ | 1,381.4 |  |  | $ | 1,525.4 |
Total International | $ | 188.1 |  |  | $ | 190.3 |  |  | $ | 376.7 |  |  | $ | 374.1 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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