Guarantor/Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Financial Information 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 June 30, 2018

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	482.7		$	202.9		$	(15.9	)	$	669.7
Cost of sales	—			289.4			120.1			(15.9		)	393.6
Gross profit	—			193.3			82.8			—			276.1
Selling and marketing expenses	2.1			103.5			51.8			—			157.4
General, administrative and other expenses	5.0			45.6			16.4			—			67.0
Equity income in earnings of unconsolidated affiliates	—			—			(3.8		)	—			(3.8		)
Operating (loss) income	(7.1		)	44.2			18.4			—			55.5

Other expense, net:
Third party interest expense, net	14.9			7.5			2.1			—			24.5
Intercompany interest (income) expense, net	(1.7		)	2.1			(0.4		)	—			—
Interest expense, net	13.2			9.6			1.7			—			24.5
Other (income) expense, net	—			(3.5		)	4.7			—			1.2
Total other expense, net	13.2			6.1			6.4			—			25.7

Income from equity investees	37.2			7.8			—			(45.0		)	—

Income before income taxes	16.9			45.9			12.0			(45.0		)	29.8
Income tax benefit (provision)	4.3			(8.7		)	(4.2		)	—			(8.6		)
Net income before non-controlling interests	21.2			37.2			7.8			(45.0		)	21.2
Less: Net loss attributable to non-controlling interests	(1.6		)	—			(1.6		)	1.6			(1.6		)
Net income attributable to Tempur Sealy International, Inc.	$	22.8		$	37.2		$	9.4		$	(46.6	)	$	22.8

Comprehensive income (loss) attributable to Tempur Sealy International, Inc.	$	6.7		$	36.9		$	(6.7	)	$	(30.2	)	$	6.7

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended June 30, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	472.4		$	205.7		$	(18.8	)	$	659.3
Cost of sales	—			290.2			119.3			(18.8		)	390.7
Gross profit	—			182.2			86.4			—			268.6
Selling and marketing expenses	1.4			102.3			48.6			—			152.3
General, administrative and other expenses	4.9			45.5			18.6			—			69.0
Equity income in earnings of unconsolidated affiliates	—			—			(4.4		)	—			(4.4		)
Royalty income, net of royalty expense	—			(4.9		)	—			—			(4.9		)
Operating (loss) income	(6.3		)	39.3			23.6			—			56.6

Other expense (income), net:
Third party interest expense, net	14.9			6.4			0.8			—			22.1
Intercompany interest (income) expense, net	(1.2		)	3.0			(1.8		)	—			—
Interest expense (income), net	13.7			9.4			(1.0		)	—			22.1
Other expense (income), net	—			0.2			(0.5		)	—			(0.3		)
Total other expense (income), net	13.7			9.6			(1.5		)	—			21.8

Income from equity investees	34.7			16.3			—			(51.0		)	—

Income before income taxes	14.7			46.0			25.1			(51.0		)	34.8
Income tax benefit (provision)	7.0			(11.3		)	(8.8		)	—			(13.1		)
Net income before non-controlling interests	21.7			34.7			16.3			(51.0		)	21.7
Less: Net loss attributable to non-controlling interests	(2.8		)	—			(2.8		)	2.8			(2.8		)
Net income attributable to Tempur Sealy International, Inc.	$	24.5		$	34.7		$	19.1		$	(53.8	)	$	24.5

Comprehensive income attributable to Tempur Sealy International, Inc.	$	33.7		$	34.5		$	28.5		$	(63.0	)	$	33.7

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Six Months Ended June 30, 2018

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations				Consolidated
Net sales	$	—		$	923.3		$	427.7		$	(33.3	)		$	1,317.7
Cost of sales	—			555.8			251.2			(33.3		)		773.7
Gross profit	—			367.5			176.5			—				544.0
Selling and marketing expenses	4.0			196.6			105.7			—				306.3
General, administrative and other expenses	9.7			93.0			33.3			—				136.0
Equity income in earnings of unconsolidated affiliates	—			—			(7.7		)	—				(7.7		)
Operating (loss) income	(13.7		)	77.9			45.2			—				109.4
														—
Other expense, net:
Third party interest expense, net	29.9			14.5			3.0			—				47.4
Intercompany interest (income) expense, net	(3.6		)	3.9			(0.3		)	—				—
Interest expense, net	26.3			18.4			2.7			—				47.4
Other (income) expense, net	—			(5.8		)	5.2			—			—	(0.6		)
Total other expense, net	26.3			12.6			7.9			—				46.8

Income from equity investees	76.3			26.8			—			(103.1		)		—

Income before income taxes	36.3			92.1			37.3			(103.1		)		62.6
Income tax benefit (provision)	7.7			(15.8		)	(10.5		)	—				(18.6		)
Net income before non-controlling interests	44.0			76.3			26.8			(103.1		)		44.0
Less: Net loss attributable to non-controlling interests	$	(1.9	)	$	—		$	(1.9	)	$	1.9			$	(1.9	)
Net income attributable to Tempur Sealy International, Inc.	45.9			76.3			28.7			(105.0		)		45.9

Comprehensive income attributable to Tempur Sealy International, Inc.	$	34.2		$	75.4		$	17.6		$	(93.0	)		$	34.2

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Six Months Ended June 30, 2017

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,002.2		$	418.4		$	(39.2	)	$	1,381.4
Cost of sales	—			620.5			244.9			(39.2		)	826.2
Gross profit	—			381.7			173.5			—			555.2
Selling and marketing expenses	2.8			207.2			96.0			—			306.0
General, administrative and other expenses	8.9			89.8			36.8			—			135.5
Customer termination charges, net	(8.4		)	21.8			1.0			—			14.4
Equity income in earnings of unconsolidated affiliates	—			—			(7.1		)	—			(7.1		)
Royalty income, net of royalty expense	—			(9.7		)	—			—			(9.7		)
Operating (loss) income	(3.3		)	72.6			46.8			—			116.1

Other expense, net:
Third party interest expense, net	29.7			12.9			1.6			—			44.2
Intercompany interest (income) expense, net	(2.4		)	2.8			(0.4		)	—			—
Interest expense, net	27.3			15.7			1.2			—			44.2
Other income, net	—			(9.2		)	(0.3		)	—			(9.5		)
Total other expense, net	27.3			6.5			0.9			—			34.7

Income from equity investees	75.3			31.9			—			(107.2		)	—

Income before income taxes	44.7			98.0			45.9			(107.2		)	81.4
Income tax benefit (provision)	9.0			(22.7		)	(14.0		)	—			(27.7		)
Net income before non-controlling interests	53.7			75.3			31.9			(107.2		)	53.7
Less: Net loss attributable to non-controlling interests	(4.7		)	—			(4.7		)	4.7			(4.7		)
Net income attributable to Tempur Sealy International, Inc.	$	58.4		$	75.3		$	36.6		$	(111.9	)	$	58.4

Comprehensive income attributable to Tempur Sealy International, Inc.	$	75.9		$	70.6		$	58.8		$	(129.4	)	$	75.9

Schedule of supplemental condensed consolidated balance sheets

Supplemental Condensed Consolidated Balance Sheets

June 30, 2018

(in millions)



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

Current Assets:
Cash and cash equivalents	$	—	$	11.3	$	21.3	$	—		$	32.6
Accounts receivable, net	—		5.4		294.9		59.1			359.4
Inventories	—		140.8		83.6		—			224.4
Income taxes receivable	270.9		—		—		(270.9		)	—
Prepaid expenses and other current assets	0.4		49.8		19.6		—			69.8
Total Current Assets	271.3		207.3		419.4		(211.8		)	686.2
Property, plant and equipment, net	—		348.5		84.6		—			433.1
Goodwill	—		507.6		219.5		—			727.1
Other intangible assets, net	—		571.9		87.5		—			659.4
Deferred income taxes	12.2		—		23.6		(12.2		)	23.6
Other non-current assets	—		51.4		184.8		—			236.2
Net investment in subsidiaries	574.0		94.0		—		(668.0		)	—
Due from affiliates	416.9		153.5		17.7		(588.1		)	—
Total Assets	$	1,274.4	$	1,934.2	$	1,037.1	$	(1,480.1	)	$	2,765.6

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	—	$	125.2	$	63.0	$	59.1		$	247.3
Accrued expenses and other current liabilities	6.8		140.4		80.0		—			227.2
Income taxes payable	—		292.4		7.8		(270.9		)	29.3
Current portion of long-term debt	—		36.2		41.1		—			77.3
Total Current Liabilities	6.8		594.2		191.9		(211.8		)	581.1
Long-term debt, net	1,042.4		571.4		93.0		—			1,706.8
Deferred income taxes	—		105.7		16.9		(12.2		)	110.4
Other non-current liabilities	—		58.9		150.1		—			209.0
Due to affiliates	66.9		30.0		491.2		(588.1		)	—
Total Liabilities	1,116.1		1,360.2		943.1		(812.1		)	2,607.3

Redeemable non-controlling interest	0.3		—		0.3		(0.3		)	0.3

Total Stockholders' Equity	158.0		574.0		93.7		(667.7		)	158.0
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity	$	1,274.4	$	1,934.2	$	1,037.1	$	(1,480.1	)	$	2,765.6

Supplemental Condensed Consolidated Balance Sheets

December 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	$	0.1	$	12.3	$	29.5	$	—		$	41.9
Accounts receivable, net	—		5.1		322.2		(9.6		)	317.7
Inventories	—		103.4		79.6		—			183.0
Income taxes receivable	260.2		—		—		(260.2		)	—
Prepaid expenses and other current assets	0.8		50.6		13.4		—			64.8
Total Current Assets	261.1		171.4		444.7		(269.8		)	607.4
Property, plant and equipment, net	—		360.4		74.7		—			435.1
Goodwill	—		507.6		225.5		—			733.1
Other intangible assets, net	—		577.5		89.9		—			667.4
Deferred income taxes	11.8		—		23.6		(11.8		)	23.6
Other non-current assets	—		47.2		180.2		—			227.4
Net investment in subsidiaries	2,381.0		127.7		—		(2,508.7		)	—
Due from affiliates	87.2		1,975.9		15.6		(2,078.7		)	—
Total Assets	$	2,741.1	$	3,767.7	$	1,054.2	$	(4,869.0	)	$	2,694.0

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	—	$	174.6	$	76.2	$	(9.6	)	$	241.2
Accrued expenses and other current liabilities	7.6		144.2		82.4		—			234.2
Income taxes payable	—		279.3		10.0		(260.2		)	29.1
Current portion of long-term debt	—		35.7		36.7		—			72.4
Total Current Liabilities	7.6		633.8		205.3		(269.8		)	576.9
Long-term debt, net	1,041.6		589.4		49.7		—			1,680.7
Deferred income taxes	—		107.8		18.3		(11.8		)	114.3
Other non-current liabilities	—		55.2		152.2		—			207.4
Due to affiliates	1,577.2		0.5		501.0		(2,078.7		)	—
Total Liabilities	2,626.4		1,386.7		926.5		(2,360.3		)	2,579.3

Redeemable non-controlling interest	2.2		—		2.2		(2.2		)	2.2

Total Stockholders' Equity	112.5		2,381.0		125.5		(2,506.5		)	112.5
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity	$	2,741.1	$	3,767.7	$	1,054.2	$	(4,869.0	)	$	2,694.0

Schedule of supplemental condensed consolidated statements of cash flows

Supplemental Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30, 2018

(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	$	(30.0	)	$	4.1		$	27.5		$	—	$	1.6

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(34.1		)	(6.5		)	—		(40.6		)
Contributions received from (paid to) subsidiaries and affiliates	—			50.9			(50.9		)	—		—
Other	—			0.1			0.5			—		0.6
Net cash provided by (used in) by investing activities	—			16.9			(56.9		)	—		(40.0		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	—			335.6			396.6			—		732.2
Repayments of borrowings under long-term debt obligations	—			(350.6		)	(347.2		)	—		(697.8		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	30.3			(4.3		)	(26.0		)	—		—
Proceeds from exercise of stock options	2.6			—			—			—		2.6
Treasury stock repurchased	(3.0		)	—			—			—		(3.0		)
Other	—			(2.7		)	(0.7		)	—		(3.4		)
Net cash provided by (used in) financing activities	29.9			(22.0		)	22.7			—		30.6

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(1.5		)	—		(1.5		)
Decrease in cash and cash equivalents	(0.1		)	(1.0		)	(8.2		)	—		(9.3		)
CASH AND CASH EQUIVALENTS, beginning of period	0.1			12.3			29.5			—		41.9
CASH AND CASH EQUIVALENTS, end of period	$	—		$	11.3		$	21.3		$	—	$	32.6

Supplemental Condensed Consolidated Statements of Cash Flows

Six Months Ended June 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	$	(27.9	)	$	226.9		$	(123.8	)	$	—	$	75.2

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(20.8		)	(5.1		)	—		(25.9		)
Contributions (paid to) received from subsidiaries and affiliates	—			(107.0		)	107.0					—
Other	—			0.8			0.1			—		0.9
Net cash (used in) provided by investing activities	—			(127.0		)	102.0			—		(25.0		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under long-term debt obligations	—			453.7			265.2			—		718.9
Repayments of borrowings under long-term debt obligations	—			(538.6		)	(207.3		)	—		(745.9		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	70.3			(16.6		)	(53.7		)	—		—
Proceeds from exercise of stock options	1.9			—			—			—		1.9
Treasury stock repurchased	(44.1		)	—			—			—		(44.1		)
Payments of deferred financing costs	—			—			(0.4		)	—		(0.4		)
Other	—			0.2			(2.9		)	—		(2.7		)
Net cash provided by (used in) financing activities	28.1			(101.3		)	0.9			—		(72.3		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(5.1		)	—		(5.1		)
Increase (decrease) in cash and cash equivalents	0.2			(1.4		)	(26.0		)	—		(27.2		)
CASH AND CASH EQUIVALENTS, beginning of period	—			7.9			57.8			—		65.7
CASH AND CASH EQUIVALENTS, end of period	$	0.2		$	6.5		$	31.8		$	—	$	38.5