XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Business Segment Information
 9 Months Ended
Sep. 30, 2018
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)
September 30, 2018
 
December 31, 2017
North America
$
2,880.5

 
$
2,771.9

International
596.0

 
593.8

Corporate
665.1

 
614.9

Inter-segment eliminations
(1,342.0
)
 
(1,302.2
)
Discontinued operations
9.1

 
15.6

Total assets
$
2,808.7

 
$
2,694.0



     The following table summarizes property, plant and equipment, net by segment:
(in millions)
September 30, 2018
 
December 31, 2017
North America
$
317.0

 
$
320.0

International
51.0

 
53.1

Corporate
53.0

 
60.4

Total property, plant and equipment, net
$
421.0

 
$
433.5


 
The following table summarizes segment information for the three months ended September 30, 2018:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
595.8

 
$
133.7

 
$
—

 
$
—

 
$
729.5

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.1

 
$
0.2

 
$
—

 
$
(1.3
)
 
$
—

Inter-segment royalty expense (income)
0.9

 
(0.9
)
 
—

 
—

 
—

Gross profit
229.2

 
70.8

 
—

 
—

 
300.0

Operating income (loss)
81.9

 
25.8

 
(23.0
)
 
—

 
84.7

Income (loss) from continuing operations before income taxes
78.5

 
23.5

 
(42.3
)
 
—

 
59.7

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
16.6

 
$
3.3

 
$
10.0

 
$
—

 
$
29.9

Capital expenditures
11.2

 
2.9

 
1.2

 
—

 
15.3

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the three months ended September 30, 2017:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
580.6

 
$
130.9

 
$
—

 
$
—

 
$
711.5

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
0.9

 
$
0.4

 
$
—

 
$
(1.3
)
 
$
—

Inter-segment royalty expense (income)
1.5

 
(1.5
)
 
—

 
—

 
—

Gross profit
238.4

 
68.6

 
—

 
—

 
307.0

Operating income (loss)
99.7

 
23.5

 
(25.9
)
 
—

 
97.3

Income (loss) from continuing operations before income taxes
97.0

 
22.0

 
(44.8
)
 
—

 
74.2

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
13.1

 
$
3.6

 
$
10.0

 
$
—

 
$
26.7

Capital expenditures
9.3

 
1.7

 
6.4

 
—

 
17.4

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the nine months ended September 30, 2018:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
1,608.6

 
$
418.2

 
$
—

 
$
—

 
$
2,026.8

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
2.3

 
$
0.4

 
$
—

 
$
(2.7
)
 
$
—

Inter-segment royalty expense (income)
2.2

 
(2.2
)
 
—

 
—

 
—

Gross profit
616.7

 
220.8

 
—

 
—

 
837.5

Operating income (loss)
200.1

 
75.5

 
(77.2
)
 
—

 
198.4

Income (loss) from continuing operations before income taxes
193.7

 
71.0

 
(134.0
)
 
—

 
130.7

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
43.8

 
$
10.2

 
$
30.8

 
$
—

 
$
84.8

Capital expenditures
42.1

 
8.9

 
4.8

 
—

 
55.8

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the nine months ended September 30, 2017:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
1,688.3

 
$
380.9

 
$
—

 
$
—

 
$
2,069.2

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
3.1

 
$
0.7

 
$
—

 
$
(3.8
)
 
$
—

Inter-segment royalty expense (income)
4.4

 
(4.4
)
 
—

 
—

 
—

Gross profit
651.8

 
201.3

 
—

 
—

 
853.1

Operating income (loss)
206.9

 
75.4

 
(69.2
)
 
—

 
213.1

Income (loss) from continuing operations before income taxes
210.7

 
69.5

 
(125.8
)
 
—

 
154.4

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
38.3

 
$
10.5

 
$
19.8

 
$
—

 
$
68.6

Capital expenditures
23.1

 
5.0

 
15.0

 
—

 
43.1

(1)
Depreciation and amortization includes stock-based compensation amortization expense.



The following table summarizes property, plant and equipment, net by geographic region:
(in millions)
September 30, 2018
 
December 31, 2017
United States
$
349.6

 
$
373.2

Canada
20.4

 
7.2

Other International
51.0

 
53.1

Total property, plant and equipment, net
$
421.0

 
$
433.5

Total International
$
71.4

 
$
60.3



The following table summarizes net sales by geographic region:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in millions)
2018
 
2017
 
2018
 
2017
United States
$
536.8

 
$
517.8

 
$
1,454.6

 
$
1,522.5

Canada
59.0

 
62.8

 
154.0

 
165.8

Other International
133.7

 
130.9

 
418.2

 
380.9

Total net sales
$
729.5

 
$
711.5

 
$
2,026.8

 
$
2,069.2

Total International
$
192.7

 
$
193.7

 
$
572.2

 
$
546.7