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Business Segment Information
 6 Months Ended
Jun. 30, 2019
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 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, 2019
 
December 31, 2018
North America
$
3,129.5

 
$
2,788.1

International
631.2

 
604.8

Corporate
$
525.7

 
$
569.0

Inter-segment eliminations
(1,239.7
)
 
(1,246.5
)
Total assets
$
3,046.7

 
$
2,715.4



     The following table summarizes property, plant and equipment, net by segment:
(in millions)
June 30, 2019
 
December 31, 2018
North America
$
324.3

 
$
317.5

International
52.9

 
51.1

Corporate
52.8

 
52.2

Total property, plant and equipment, net
$
430.0

 
$
420.8


 
The following table summarizes segment information for the three months ended June 30, 2019:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
588.1

 
$
134.7

 
$
—

 
$
—

 
$
722.8

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
0.9

 
$
0.1

 
$
—

 
$
(1.0
)
 
$
—

Inter-segment royalty expense (income)
1.0

 
(1.0
)
 
—

 
—

 
—

Gross profit
240.0

 
73.4

 
—

 
—

 
313.4

Operating income (loss)
80.1

 
27.4

 
(26.5
)
 
—

 
81.0

Income (loss) from continuing operations before income taxes
78.6

 
23.2

 
(43.3
)
 
—

 
58.5

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
15.6

 
$
3.5

 
$
9.5

 
$
—

 
$
28.6

Capital expenditures
14.4

 
3.1

 
3.3

 
—

 
20.8

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

The following table summarizes segment information for the three months ended June 30, 2018:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
527.8

 
$
132.1

 
$
—

 
$
—

 
$
659.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
0.6

 
$
—

 
$
—

 
$
(0.6
)
 
$
—

Inter-segment royalty expense (income)
0.8

 
(0.8
)
 
—

 
—

 
—

Gross profit
203.4

 
69.4

 
—

 
—

 
272.8

Operating income (loss)
64.2

 
20.9

 
(27.1
)
 
—

 
58.0

Income (loss) from continuing operations before income taxes
63.4

 
18.3

 
(46.3
)
 
—

 
35.4

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
13.8

 
$
3.3

 
$
10.7

 
$
—

 
$
27.8

Capital expenditures
14.1

 
3.1

 
1.5

 
—

 
18.7

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

The following table summarizes segment information for the six months ended June 30, 2019:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
1,132.1

 
$
281.6

 
$
—

 
$
—

 
$
1,413.7

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.9

 
$
0.4

 
$
—

 
$
(2.3
)
 
$
—

Inter-segment royalty expense (income)
2.0

 
(2.0
)
 
—

 
—

 
—

Gross profit
444.4

 
150.8

 
—

 
—

 
595.2

Operating income (loss)
144.4

 
52.6

 
(55.5
)
 
—

 
141.5

Income (loss) from continuing operations before income taxes
141.0

 
53.0

 
(89.6
)
 
—

 
104.4

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
30.6

 
$
6.8

 
$
19.3

 
$
—

 
$
56.7

Capital expenditures
27.3

 
6.0

 
6.6

 
—

 
39.9

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

The following table summarizes segment information for the six months ended June 30, 2018:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Net sales
$
1,012.8

 
$
284.5

 
$
—

 
$
—

 
$
1,297.3

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
1.2

 
$
0.2

 
$
—

 
$
(1.4
)
 
$
—

Inter-segment royalty expense (income)
1.3

 
(1.3
)
 
—

 
—

 
—

Gross profit
387.4

 
150.1

 
—

 
—

 
537.5

Operating income (loss)
118.1

 
49.7

 
(54.1
)
 
—

 
113.7

Income (loss) from continuing operations before income taxes
115.2

 
47.6

 
(91.8
)
 
—

 
71.0

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
27.2

 
$
6.9

 
$
20.8

 
$
—

 
$
54.9

Capital expenditures
30.9

 
6.0

 
3.6

 
—

 
40.5

(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, 2019
 
December 31, 2018
United States
$
358.4

 
$
350.7

Canada
18.7

 
19.1

Other International
52.9

 
51.0

Total property, plant and equipment, net
$
430.0

 
$
420.8

Total International
$
71.6

 
$
70.1



The following table summarizes net sales by geographic region:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in millions)
2019
 
2018
 
2019
 
2018
United States
$
533.7

 
$
477.7

 
$
1,030.9

 
$
917.9

Canada
54.4

 
50.1

 
101.2

 
94.9

Other International
134.7

 
132.1

 
281.6

 
284.5

Total net sales
$
722.8

 
$
659.9

 
$
1,413.7

 
$
1,297.3

Total International
$
189.1

 
$
182.2

 
$
382.8

 
$
379.4