Guarantor/Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	520.2		$	222.8		$	(18.2	)	$	724.8
Cost of sales	—			300.4			130.4			(18.2		)	412.6
Gross profit	—			219.8			92.4			—			312.2
Selling and marketing expenses	1.4			101.7			52.3			—			155.4
General, administrative and other expenses	4.9			42.4			23.7			—			71.0
Equity income in earnings of unconsolidated affiliates	—			—			(3.5		)	—			(3.5		)
Royalty income, net of royalty expense	—			(5.3		)	—			—			(5.3		)
Operating (loss) income	(6.3		)	81.0			19.9			—			94.6

Other expense, net:
Third party interest expense, net	14.8			6.7			10.5			—			32.0
Intercompany interest (income) expense, net	(1.1		)	2.8			(1.7		)	—			—
Interest expense, net	13.7			9.5			8.8			—			32.0
Other (income) expense, net	—			(4.5		)	5.6			—			1.1
Total other expense, net	13.7			5.0			14.4			—			33.1

Income from equity investees	53.8			1.7			—			(55.5		)	—

Income before income taxes	33.8			77.7			5.5			(55.5		)	61.5
Income tax benefit (provision)	7.4			(23.9		)	(3.8		)	—			(20.3		)
Net income before non-controlling interests	41.2			53.8			1.7			(55.5		)	41.2
Less: Net loss attributable to non-controlling interests	(3.4		)	—			(3.4		)	3.4			(3.4		)
Net income attributable to Tempur Sealy International, Inc.	$	44.6		$	53.8		$	5.1		$	(58.9	)	$	44.6

Comprehensive income attributable to Tempur Sealy International, Inc.	$	54.2		$	54.0		$	14.6		$	(68.6	)	$	54.2

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended September 30, 2016

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	656.0		$	191.5		$	(15.1	)	$	832.4
Cost of sales	—			381.1			104.3			(15.1		)	470.3
Gross profit	—			274.9			87.2			—			362.1
Selling and marketing expenses	1.0			129.6			44.6			—			175.2
General, administrative and other expenses	4.0			44.5			15.5			—			64.0
Equity income in earnings of unconsolidated affiliates	—			—			(2.4		)	—			(2.4		)
Royalty income, net of royalty expense	—			(5.6		)	(0.2		)	—			(5.8		)
Operating (loss) income	(5.0		)	106.4			29.7			—			131.1

Other expense, net:
Third party interest expense, net	15.0			4.7			0.8			—			20.5
Intercompany interest (income) expense, net	(1.0		)	—			1.0			—			—
Interest expense, net	14.0			4.7			1.8			—			20.5
Other expense, net	—			—			0.3			—			0.3
Total other expense, net	14.0			4.7			2.1			—			20.8

Income from equity investees	89.0			21.1			—			(110.1		)	—

Income before income taxes	70.0			122.8			27.6			(110.1		)	110.3
Income tax benefit (provision)	6.6			(33.8		)	(6.5		)	—			(33.7		)
Net income before non-controlling interests	76.6			89.0			21.1			(110.1		)	76.6
Less: Net loss attributable to non-controlling interests	(1.2		)	(1.2		)	—			1.2			(1.2		)
Net income attributable to Tempur Sealy International, Inc.	$	77.8		$	90.2		$	21.1		$	(111.3	)	$	77.8

Comprehensive income attributable to Tempur Sealy International, Inc.	$	72.6		$	90.5		$	15.8		$	(106.3	)	$	72.6

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Nine Months Ended September 30, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations				Consolidated
Net sales	$	—		$	1,522.4		$	641.2		$	(57.4	)		$	2,106.2
Cost of sales	—			920.9			375.3			(57.4		)		1,238.8
Gross profit	—			601.5			265.9			—				867.4
Selling and marketing expenses	4.2			308.9			148.3			—				461.4
General, administrative and other expenses	13.8			132.2			60.5			—				206.5
Customer termination charges, net	(8.4		)	21.8			1.0			—				14.4
Equity income in earnings of unconsolidated affiliates	—			—			(10.6		)	—				(10.6		)
Royalty income, net of royalty expense	—			(15.0		)	—			—				(15.0		)
Operating (loss) income	(9.6		)	153.6			66.7			—				210.7

Other expense, net:
Third party interest expense, net	44.7			19.4			12.1			—				76.2
Intercompany interest (income) expense, net	(3.6		)	5.6			(2.0		)	—				—
Interest expense, net	41.1			25.0			10.1			—				76.2
Other (income) expense, net	—			(13.6		)	5.2			—			—	(8.4		)
Total other expense, net	41.1			11.4			15.3			—				67.8

Income from equity investees	129.1			33.6			—			(162.7		)		—

Income before income taxes	78.4			175.8			51.4			(162.7		)		142.9
Income tax benefit (provision)	16.5			(46.7		)	(17.8		)	—				(48.0		)
Net income before non-controlling interests	94.9			129.1			33.6			(162.7		)		94.9
Less: Net loss attributable to non-controlling interests	(8.1		)	—			(8.1		)	8.1				(8.1		)
Net income attributable to Tempur Sealy International, Inc.	$	103.0		$	129.1		$	41.7		$	(170.8	)		$	103.0

Comprehensive income attributable to Tempur Sealy International, Inc.	$	130.1		$	124.6		$	73.4		$	(198.0	)		$	130.1

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Nine Months Ended September 30, 2016

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,835.0		$	566.4		$	(43.6	)	$	2,357.8
Cost of sales	—			1,106.3			305.1			(43.6		)	1,367.8
Gross profit	—			728.7			261.3			—			990.0
Selling and marketing expenses	3.7			358.0			136.4			—			498.1
General, administrative and other expenses	12.8			146.3			48.5			—			207.6
Equity income in earnings of unconsolidated affiliates	—			—			(8.6		)	—			(8.6		)
Royalty income, net of royalty expense	—			(15.1		)	—			—			(15.1		)
Operating (loss) income	(16.5		)	239.5			85.0			—			308.0

Other expense, net:
Third party interest expense, net	51.1			11.7			2.2			—			65.0
Intercompany interest (income) expense, net	(3.1		)	(0.1		)	3.2			—			—
Interest expense, net	48.0			11.6			5.4			—			65.0
Loss on extinguishment of debt	34.3			12.9			—			—			47.2
Other (income) expense, net	—			(1.4		)	1.4			—			—
Total other expense, net	82.3			23.1			6.8			—			112.2

Income from equity investees	200.8			62.3			—			(263.1		)	—

Income before income taxes	102.0			278.7			78.2			(263.1		)	195.8
Income tax benefit (provision)	33.6			(77.9		)	(15.9		)	—			(60.2		)
Net income before non-controlling interests	135.6			200.8			62.3			(263.1		)	135.6
Less: Net loss attributable to non-controlling interests	(3.1		)	(3.1		)	—			3.1			(3.1		)
Net income attributable to Tempur Sealy International, Inc.	$	138.7		$	203.9		$	62.3		$	(266.2	)	$	138.7

Comprehensive income attributable to Tempur Sealy International, Inc.	$	144.4		$	204.9		$	67.2		$	(272.1	)	$	144.4

Schedule of supplemental condensed consolidated balance sheets

Supplemental Condensed Consolidated Balance Sheets

September 30, 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	$	0.7	$	8.0	$	33.1	$	—		$	41.8
Accounts receivable, net	—		12.6		351.0		—			363.6
Inventories	—		101.8		87.0		—			188.8
Income taxes receivable	254.1		—		—		(254.1		)	—
Prepaid expenses and other current assets	0.2		48.0		14.9		—			63.1
Total Current Assets	255.0		170.4		486.0		(254.1		)	657.3
Property, plant and equipment, net	—		348.5		75.6		—			424.1
Goodwill	—		500.2		232.7		—			732.9
Other intangible assets, net	—		580.4		91.5		—			671.9
Deferred income taxes	17.2		—		27.3		(17.2		)	27.3
Other non-current assets	—		50.1		171.7		—			221.8
Net investment in subsidiaries	2,380.8		174.2		—		(2,555.0		)	—
Due from affiliates	107.0		1,994.1		15.7		(2,116.8		)	—
Total Assets	$	2,760.0	$	3,817.9	$	1,100.5	$	(4,943.1	)	$	2,735.3

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	—	$	169.1	$	75.6	$	—		$	244.7
Accrued expenses and other current liabilities	21.4		166.6		85.2		—			273.2
Income taxes payable	—		267.0		13.5		(254.1		)	26.4
Current portion of long-term debt	—		35.5		30.8		—			66.3
Total Current Liabilities	21.4		638.2		205.1		(254.1		)	610.6
Long-term debt, net	1,041.4		598.2		47.1		—			1,686.7
Deferred income taxes	—		159.7		17.9		(17.2		)	160.4
Other non-current liabilities	—		41.0		149.0		—			190.0
Due to affiliates	1,609.6		—		507.2		(2,116.8		)	—
Total Liabilities	2,672.4		1,437.1		926.3		(2,388.1		)	2,647.7

Redeemable non-controlling interest	3.4		—		3.4		(3.4		)	3.4

Total Stockholders' Equity	84.2		2,380.8		170.8		(2,551.6		)	84.2
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity	$	2,760.0	$	3,817.9	$	1,100.5	$	(4,943.1	)	$	2,735.3

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	—			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’ 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

Nine Months Ended September 30, 2017

(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	$	(27.0	)	$	352.8		$	(123.3	)	$	—	$	202.5

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(35.9		)	(7.5		)	—		(43.4		)
Contributions (paid to) received from subsidiaries and affiliates	—			(159.5		)	159.5			—		—
Other	—			0.9			4.0			—		4.9
Net cash (used in) provided by investing activities	—			(194.5		)	156.0			—		(38.5		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	—			523.8			462.1			—		985.9
Repayments of borrowings under long-term debt obligations	—			(703.2		)	(421.5		)	—		(1,124.7		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	66.1			21.4			(87.5		)	—		—
Proceeds from exercise of stock options	6.5			—			—			—		6.5
Treasury stock repurchased	(44.9		)	—			—			—		(44.9		)
Payments of deferred financing costs	—			—			(0.5		)	—		(0.5		)
Other	—			(0.2		)	(2.7		)	—		(2.9		)
Net cash provided by (used in) financing activities	27.7			(158.2		)	(50.1		)	—		(180.6		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(7.3		)	—		(7.3		)
Increase (decrease) in cash and cash equivalents	0.7			0.1			(24.7		)	—		(23.9		)
CASH AND CASH EQUIVALENTS, beginning of period	—			7.9			57.8			—		65.7
CASH AND CASH EQUIVALENTS, end of period	$	0.7		$	8.0		$	33.1		$	—	$	41.8

Supplemental Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30, 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	$	(30.4	)	$	38.2		$	102.0		$	—	$	109.8

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(33.2		)	(8.7		)	—		(41.9		)
Contributions (paid to) received from subsidiaries and affiliates	—			(76.8		)	76.8			—		—
Net cash (used in) provided by investing activities	—			(110.0		)	68.1			—		(41.9		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	600.0			1,214.6			56.9			—		1,871.5
Repayments of borrowings under long-term debt obligations	(375.0		)	(1,246.6		)	(37.7		)	—		(1,659.3		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	136.5			22.6			(159.1		)	—		—
Proceeds from exercise of stock options	15.2			—			—			—		15.2
Excess tax benefit from stock-based compensation	6.0			—			—			—		6.0
Treasury stock repurchased	(319.7		)	—			—			—		(319.7		)
Payments of deferred financing costs	(3.0		)	(3.6		)	—			—		(6.6		)
Fees paid to lenders	(6.0		)	(1.8		)	—			—		(7.8		)
Call premium on 2020 Senior Notes	(23.6		)	—			—			—		(23.6		)
Other	—			(1.6		)	1.7			—		0.1
Net cash provided by (used in) financing activities	30.4			(16.4		)	(138.2		)	—		(124.2		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(8.6		)	—		(8.6		)
(Decrease) increase in cash and cash equivalents	—			(88.2		)	23.3			—		(64.9		)
CASH AND CASH EQUIVALENTS, beginning of period	—			119.7			34.2			—		153.9
CASH AND CASH EQUIVALENTS, end of period	$	—		$	31.5		$	57.5		$	—	$	89.0