Guarantor/Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	550.3		$	187.9		$	(15.4	)	$	722.8
Cost of sales	—			318.0			106.8			(15.4		)	409.4
Gross profit	—			232.3			81.1			—			313.4
Selling and marketing expenses	2.7			114.8			45.8			—			163.3
General, administrative and other expenses	4.2			55.8			13.9			(1.2		)	72.7
Equity income in earnings of unconsolidated affiliates	—			—			(3.6		)	—			(3.6		)
Operating (loss) income	(6.9		)	61.7			25.0			1.2			81.0

Other expense, net:
Third party interest expense, net	14.1			6.9			1.5			—			22.5
Intercompany interest (income) expense, net	(2.5		)	3.2			(0.7		)	—			—
Interest expense, net	11.6			10.1			0.8			—			22.5
Other (income) expense, net	—			(3.7		)	3.7			—			—
Total other expense, net	11.6			6.4			4.5			—			22.5

Income from equity investees	56.3			14.3			—			(70.6		)	—

Income from continuing operations before income taxes	37.8			69.6			20.5			(69.4		)	58.5
Income tax benefit (provision)	3.7			(13.3		)	(6.2		)	—			(15.8		)
Income from continuing operations	41.5			56.3			14.3			(69.4		)	42.7
Loss from discontinued operations, net of tax	—			—			—			(1.2		)	(1.2		)
Net income before non-controlling interest	41.5			56.3			14.3			(70.6		)	41.5
Less: Net income attributable to non-controlling interest	(0.1		)	—			(0.1		)	0.1			(0.1		)
Net income attributable to Tempur Sealy International, Inc.	$	41.6		$	56.3		$	14.4		$	(70.7	)	$	41.6

Comprehensive income attributable to Tempur Sealy International, Inc.	$	44.6		$	55.5		$	18.2		$	(73.7	)	$	44.6

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			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	482.7		$	202.9		$	(25.7	)	$	659.9
Cost of sales	—			289.4			120.1			(22.4		)	387.1
Gross profit	—			193.3			82.8			(3.3		)	272.8
Selling and marketing expenses	2.1			103.5			51.8			(4.1		)	153.3
General, administrative and other expenses	5.0			45.6			16.4			(1.7		)	65.3
Equity income in earnings of unconsolidated affiliates	—			—			(3.8		)	—			(3.8		)
Operating (loss) income	(7.1		)	44.2			18.4			2.5			58.0

Other expense, net:
Third party interest expense, net	14.9			7.5			2.1			(1.3		)	23.2
Intercompany interest (income) expense, net	(1.7		)	2.1			(0.4		)	—			—
Interest expense, net	13.2			9.6			1.7			(1.3		)	23.2
Other (income) expense, net	—			(3.5		)	4.7			(1.8		)	(0.6		)
Total other expense, net	13.2			6.1			6.4			(3.1		)	22.6

Income from equity investees	37.2			7.8			—			(45.0		)	—

Income from continuing operations before income taxes	16.9			45.9			12.0			(39.4		)	35.4
Income tax benefit (provision)	4.3			(8.7		)	(4.2		)	(0.2		)	(8.8		)
Income from continuing operations	21.2			37.2			7.8			(39.6		)	26.6
Loss from discontinued operations, net of tax	—			—			—			(5.4		)	(5.4		)
Net income before non-controlling interest	21.2			37.2			7.8			(45.0		)	21.2
Less: Net loss attributable to non-controlling interest	(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 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

Six Months Ended June 30, 2019

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Reclassifications and Eliminations				Consolidated
Net sales	$	—		$	1,064.2		$	381.2		$	(31.7	)		$	1,413.7
Cost of sales	—			634.3			215.9			(31.7		)		818.5
Gross profit	—			429.9			165.3			—				595.2
Selling and marketing expenses	5.5			216.1			95.3			(0.1		)		316.8
General, administrative and other expenses	8.5			108.5			28.2			(1.8		)		143.4
Equity income in earnings of unconsolidated affiliates	—			—			(6.5		)	—				(6.5		)
Operating (loss) income	(14.0		)	105.3			48.3			1.9				141.5
														—
Other expense, net:
Third party interest expense, net	28.2			14.5			2.2			—				44.9
Intercompany interest (income) expense, net	(5.1		)	5.4			(0.3		)	—				—
Interest expense, net	23.1			19.9			1.9			—				44.9
Other income, net	—			(6.6		)	(1.5		)	0.3			—	(7.8		)
Total other expense, net	23.1			13.3			0.4			0.3				37.1

Income from equity investees	100.5			36.4			—			(136.9		)		—

Income from continuing operations before income taxes	63.4			128.4			47.9			(135.3		)		104.4
Income tax benefit (provision)	6.7			(27.9		)	(11.5		)	—				(32.7		)
Income from continuing operations	70.1			100.5			36.4			(135.3		)		71.7
Loss from discontinued operations, net of tax	—			—			—			(1.6		)		(1.6		)
Net income before non-controlling interest	70.1			100.5			36.4			(136.9		)		70.1
Less: Net income attributable to non-controlling interest	0.1			—			0.1			(0.1		)		0.1
Net income attributable to Tempur Sealy International, Inc.	$	70.0		$	100.5		$	36.3		$	(136.8	)		$	70.0

Comprehensive income attributable to Tempur Sealy International, Inc.	$	77.0		$	102.0		$	41.8		$	(143.8	)		$	77.0

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			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	923.3		$	427.7		$	(53.7	)	$	1,297.3
Cost of sales	—			555.8			251.2			(47.2		)	759.8
Gross profit	—			367.5			176.5			(6.5		)	537.5
Selling and marketing expenses	4.0			196.6			105.7			(7.6		)	298.7
General, administrative and other expenses	9.7			93.0			33.3			(3.2		)	132.8
Equity income in earnings of unconsolidated affiliates	—			—			(7.7		)	—			(7.7		)
Operating (loss) income	(13.7		)	77.9			45.2			4.3			113.7

Other expense, net:
Third party interest expense, net	29.9			14.5			3.0			(1.5		)	45.9
Intercompany interest (income) expense, net	(3.6		)	3.9			(0.3		)	—			—
Interest expense, net	26.3			18.4			2.7			(1.5		)	45.9
Other (income) expense, net	—			(5.8		)	5.2			(2.6		)	(3.2		)
Total other expense, net	26.3			12.6			7.9			(4.1		)	42.7

Income from equity investees	76.3			26.8			—			(103.1		)	—

Income from continuing operations before income taxes	36.3			92.1			37.3			(94.7		)	71.0
Income tax benefit (provision)	7.7			(15.8		)	(10.5		)	(0.2		)	(18.8		)
Income from continuing operations	44.0			76.3			26.8			(94.9		)	52.2
Loss from discontinued operations, net of tax	—			—			—			(8.2		)	(8.2		)
Net income before non-controlling interest	44.0			76.3			26.8			(103.1		)	44.0
Less: Net loss attributable to non-controlling interest	(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

Schedule of supplemental condensed consolidated balance sheets

Supplemental Condensed Consolidated Balance Sheets

June 30, 2019

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	13.5	$	24.8	$	—		$	38.3
Accounts receivable, net	0.1		17.0		310.2		59.0			386.3
Inventories	—		180.2		62.9		—			243.1
Prepaid expenses and other current assets	286.3		61.1		159.3		(282.7		)	224.0
Total Current Assets	286.4		271.8		557.2		(223.7		)	891.7
Property, plant and equipment, net	—		358.4		71.6		—			430.0
Goodwill	—		510.9		221.4		—			732.3
Other intangible assets, net	—		570.8		79.8		—			650.6
Operating lease right-of-use assets	—		179.7		48.4		—			228.1
Deferred income taxes	14.1		—		12.6		(14.2		)	12.5
Other non-current assets	—		53.9		47.6		—			101.5
Net investment in subsidiaries	752.7		184.2		—		(936.9		)	—
Due from affiliates	423.0		152.8		13.2		(589.0		)	—
Total Assets	$	1,476.2	$	2,282.5	$	1,051.8	$	(1,763.8	)	$	3,046.7

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	—	$	126.2	$	50.3	$	59.0		$	235.5
Accrued expenses and other current liabilities	6.8		217.2		212.4		—			436.4
Current portion of long-term debt	—		52.4		7.7		—			60.1
Income taxes payable	—		279.9		9.5		(282.7		)	6.7
Total Current Liabilities	6.8		675.7		279.9		(223.7		)	738.7
Long-term debt, net	1,043.7		447.7		94.1		—			1,585.5
Long-term operating lease obligations	—		153.3		33.4		—			186.7
Deferred income taxes	—		115.2		16.0		(14.2		)	117.0
Other non-current liabilities	1.3		56.5		55.1		—			112.9
Due to affiliates	118.5		81.4		389.1		(589.0		)	—
Total Liabilities	1,170.3		1,529.8		867.6		(826.9		)	2,740.8

Total Stockholders' Equity	305.9		752.7		184.2		(936.9		)	305.9
Total Liabilities and Stockholders’ Equity	$	1,476.2	$	2,282.5	$	1,051.8	$	(1,763.8	)	$	3,046.7

Supplemental Condensed Consolidated Balance Sheets

December 31, 2018

(in millions)



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

Current Assets:
Cash and cash equivalents	$	0.1	$	6.2	$	39.5	$	—		$	45.8
Accounts receivable, net	—		15.2		303.3		3.0			321.5
Inventories	—		159.4		62.9		—			222.3
Prepaid expenses and other current assets	276.9		65.4		148.1		(274.6		)	215.8
Total Current Assets	277.0		246.2		553.8		(271.6		)	805.4
Property, plant and equipment, net	—		350.7		70.1		—			420.8
Goodwill	—		508.8		214.2		—			723.0
Other intangible assets, net	—		572.7		76.6		—			649.3
Deferred income taxes	15.0		—		22.6		(15.0		)	22.6
Other non-current assets	—		49.2		45.1		—			94.3
Net investment in subsidiaries	661.7		210.0		—		(871.7		)	—
Due from affiliates	422.1		153.8		15.4		(591.3		)	—
Total Assets	$	1,375.8	$	2,091.4	$	997.8	$	(1,749.6	)	$	2,715.4

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	—	$	186.7	$	63.3	$	3.0		$	253.0
Accrued expenses and other current liabilities	6.7		143.9		208.6		—			359.2
Current portion of long-term debt	—		44.0		3.1		—			47.1
Income taxes payable	—		274.7		9.6		(274.6		)	9.7
Total Current Liabilities	6.7		649.3		284.6		(271.6		)	669.0
Long-term debt, net	1,043.0		547.1		9.0		—			1,599.1
Deferred income taxes	—		118.0		14.5		(15.0		)	117.5
Other non-current liabilities	1.9		58.2		52.2		—			112.3
Due from affiliates	106.7		57.1		427.5		(591.3		)	—
Total Liabilities	1,158.3		1,429.7		787.8		(877.9		)	2,497.9

Total Stockholders' Equity	217.5		661.7		210.0		(871.7		)	217.5
Total Liabilities and Stockholders’ Equity	$	1,375.8	$	2,091.4	$	997.8	$	(1,749.6	)	$	2,715.4

Schedule of supplemental condensed consolidated statements of cash flows

Supplemental Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30, 2019

(in millions)



	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net cash (used in) provided by operating activities from continuing operations	$	(24.3	)	$	63.6		$	4.6		$	2.0		$	45.9

CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS:
Purchases of property, plant and equipment	—			(33.5		)	(6.4		)	—			(39.9		)
Acquisition of business	—			(9.0		)	(8.1		)	—			(17.1		)
Other	—			0.1			10.2			—			10.3
Contributions received from (paid to) subsidiaries and affiliates	—			65.8			(65.8		)	—			—
Net cash provided by (used in) investing activities from continuing operations	—			23.4			(70.1		)	—			(46.7		)

CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS:
Proceeds from borrowings under long-term debt obligations	—			161.9			347.3			—			509.2
Repayments of borrowings under long-term debt obligations	—			(251.9		)	(257.9		)	—			(509.8		)
Net activity in investment in and advances from (to) subsidiaries and affiliates	24.2			13.6			(37.8		)	—			—
Proceeds from issuance of stock options	5.5			—			—			—			5.5
Treasury stock repurchased	(5.5		)	—			—			—			(5.5		)
Other	—			(3.3		)	(0.1		)	—			(3.4		)
Net cash provided by (used in) financing activities from continuing operations	24.2			(79.7		)	51.5			—			(4.0		)

Net cash (used in) provided by continuing operations	(0.1		)	7.3			(14.0		)	2.0			(4.8		)

CASH USED IN DISCONTINUED OPERATIONS
Operating cash flows, net	—			—			—			(2.0		)	(2.0		)
Investing cash flows, net	—			—			—			—			—
Financing cash flows, net	—			—			—			—			—
Net cash used in discontinued operations	—			—			—			(2.0		)	(2.0		)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(0.7		)	—			(0.7		)
(Decrease)/increase in cash and cash equivalents	(0.1		)	7.3			(14.7		)	—			(7.5		)
CASH AND CASH EQUIVALENTS, beginning of period	0.1			6.2			39.5			—			45.8
CASH AND CASH EQUIVALENTS, end of period	$	—		$	13.5		$	24.8		$	—		$	38.3

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			Reclassifications and Eliminations			Consolidated
Net cash (used in) provided by operating activities from continuing operations	$	(30.0	)	$	4.1		$	27.5		$	15.8		$	17.4

CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS:
Purchases of property, plant and equipment	—			(34.1		)	(6.5		)	0.1			(40.5		)
Other	—			0.1			0.5			—			0.6
Contributions received from (paid to) subsidiaries and affiliates	—			50.9			(50.9		)	—			—
Net cash provided by (used in) investing activities from continuing operations	—			16.9			(56.9		)	0.1			(39.9		)

CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS:
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 from continuing operations	29.9			(22.0		)	22.7			—			30.6

Net cash (used in) provided by continuing operations	(0.1		)	(1.0		)	(6.7		)	15.9			8.1

CASH USED IN DISCONTINUED OPERATIONS
Operating cash flows, net	—			—			—			(15.8		)	(15.8		)
Investing cash flows, net	—			—			—			(0.1		)	(0.1		)
Financing cash flows, net	—			—			—			—			—
Net cash used in discontinued operations	—			—			—			(15.9		)	(15.9		)

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
LESS: CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATIONS	—			—			1.6			—			1.6
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS	$	—		$	11.3		$	19.7		$	—		$	31.0