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Business Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company operates in two segments: North America and International. In the fourth quarter of 2020, the Company realigned its business segment reporting to include Mexico within the North America segment, which was previously included in the International segment. The change in segment reporting aligned with changes in how our global operations are managed. 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., Canada and Mexico. The International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). This segment change was retrospectively applied to all prior periods presented. Corporate operating expenses are not included in either of the segments and are presented separately as a reconciling item to consolidated results. The Company evaluates segment performance based on net sales, gross profit and operating income. The Company sells its products in over 100 countries to over 10,000 wholesale customers. The Company’s Direct channel represents 13.4% of the Company’s consolidated net sales. One customer contributed between 10% and 15% of the Company’s net sales in 2020. No customer contributed more than 10% of the Company's net sales in 2019. The Company’s North America and International segment assets include investments in subsidiaries that are appropriately eliminated in the Company’s accompanying Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable and payable. The following table summarizes total assets by segment:
| December 31, |  | December 31,
(in millions) | 2020 |  | 2019
North America | $ | 3,740.3 |  |  | $ | 3,187.7 |
International | 639.8 |  |  | 569.0 |
Corporate | 490.3 |  |  | 477.1 |
Inter-segment eliminations | (1,561.8) |  |  | (1,172.0) |
Total assets | $ | 3,308.6 |  |  | $ | 3,061.8 |
The following table summarizes property, plant and equipment, net, by segment:
| December 31, |  | December 31,
(in millions) | 2020 |  | 2019
North America | $ | 415.3 |  |  | $ | 334.8 |
International | 49.8 |  |  | 45.9 |
Corporate | 42.8 |  |  | 55.1 |
Total property, plant and equipment, net | $ | 507.9 |  |  | $ | 435.8 |
The following table summarizes operating lease right-of-use assets by segment:
| December 31, |  | December 31,
(in millions) | 2020 |  | 2019
North America | $ | 256.6 |  |  | $ | 202.0 |
International | 45.7 |  |  | 42.2 |
Corporate | 2.0 |  |  | 1.2 |
Total operating lease right-of-use assets | $ | 304.3 |  |  | $ | 245.4 |
The following table summarizes segment information for the year ended December 31, 2020:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Bedding sales | $ | 2,956.3 |  |  | $ | 397.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,353.8 |
Other sales | 202.9 |  |  | 120.2 |  |  | — |  |  | — |  |  | 323.1 |
Net sales | $ | 3,159.2 |  |  | $ | 517.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,676.9 |
Inter-segment sales | $ | 1.2 |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | (1.9) |  |  | $ | — |
Inter-segment royalty expense (income) | 9.4 |  |  | (9.4) |  |  | — |  |  | — |  |  | — |
Gross profit | 1,332.0 |  |  | 306.4 |  |  | — |  |  | — |  |  | 1,638.4 |
Operating income (loss) | 591.4 |  |  | 127.6 |  |  | (186.9) |  |  | — |  |  | 532.1 |
Income (loss) from continuing operations before income taxes | 590.1 |  |  | 120.2 |  |  | (257.9) |  |  | — |  |  | 452.4 |
Depreciation and amortization (1) | $ | 76.3 |  |  | $ | 13.6 |  |  | $ | 112.6 |  |  | $ | — |  |  | $ | 202.5 |
Capital expenditures | 92.6 |  |  | 11.0 |  |  | 7.7 |  |  | — |  |  | 111.3 |
(1)Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the year ended December 31, 2019:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Bedding sales | $ | 2,448.8 |  |  | $ | 388.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,837.0 |
Other sales | 154.7 |  |  | 114.3 |  |  | — |  |  | — |  |  | 269.0 |
Net sales | $ | 2,603.5 |  |  | $ | 502.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,106.0 |
Inter-segment sales | $ | 1.2 |  |  | $ | 1.1 |  |  | $ | — |  |  | $ | (2.3) |  |  | $ | — |
Inter-segment royalty expense (income) | 7.6 |  |  | (7.6) |  |  | — |  |  | — |  |  | — |
Gross profit | 1,055.2 |  |  | 287.0 |  |  | — |  |  | — |  |  | 1,342.2 |
Operating income (loss) | 349.9 |  |  | 110.3 |  |  | (113.5) |  |  | — |  |  | 346.7 |
Income (loss) from continuing operations before income taxes | 342.9 |  |  | 103.8 |  |  | (181.2) |  |  | — |  |  | 265.5 |
Depreciation and amortization (1) | $ | 65.1 |  |  | $ | 13.0 |  |  | $ | 38.4 |  |  | $ | — |  |  | $ | 116.5 |
Capital expenditures | 63.0 |  |  | 10.7 |  |  | 14.5 |  |  | — |  |  | 88.2 |
(1)Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the year ended December 31, 2018:
(in millions) | North America |  | International |  | Corporate |  | Eliminations |  | Consolidated
Bedding sales | 2,069.5 |  |  | $ | 385.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,455.3 |
Other sales | 137.5 |  |  | 110.1 |  |  | — |  |  | — |  |  | 247.6 |
Net sales | $ | 2,207.0 |  |  | $ | 495.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,702.9 |
Inter-segment sales | $ | 1.3 |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | (1.9) |  |  | $ | — |
Inter-segment royalty expense (income) | 6.2 |  |  | (6.2) |  |  | — |  |  | — |  |  | — |
Gross profit | 843.4 |  |  | 277.3 |  |  | — |  |  | — |  |  | 1,120.7 |
Operating income (loss) | 256.5 |  |  | 101.0 |  |  | (101.2) |  |  | — |  |  | 256.3 |
Income (loss) from continuing operations before income taxes | 248.4 |  |  | 93.7 |  |  | (177.1) |  |  | — |  |  | 165.0 |
Depreciation and amortization (1) | $ | 59.5 |  |  | $ | 13.0 |  |  | $ | 39.4 |  |  | $ | — |  |  | $ | 111.9 |
Capital expenditures | 53.6 |  |  | 13.1 |  |  | 6.9 |  |  | — |  |  | 73.6 |
(1)Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes property, plant and equipment, net, by geographic region:
| December 31, |  | December 31,
(in millions) | 2020 |  | 2019
United States | $ | 436.2 |  |  | $ | 366.4 |
All other | 71.7 |  |  | 69.4 |
Total property, plant and equipment, net | $ | 507.9 |  |  | $ | 435.8 |
The following table summarizes operating lease right-of-use assets by geographic region:
| December 31, |  | December 31,
(in millions) | 2020 |  | 2019
United States | $ | 255.0 |  |  | $ | 198.3 |
All Other | 49.3 |  |  | 47.1 |
Total operating lease right-of-use assets | $ | 304.3 |  |  | $ | 245.4 |
The following table summarizes net sales by geographic region:
| Year Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
United States | $ | 2,886.6 |  |  | $ | 2,312.1 |  |  | $ | 1,928.8 |
All other | 790.3 |  |  | 793.9 |  |  | 774.1 |
Total net sales | $ | 3,676.9 |  |  | $ | 3,106.0 |  |  | $ | 2,702.9 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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