Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-31922 | |
Entity Registrant Name | TEMPUR SEALY INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-1022198 | |
Entity Address, Address Line One | 1000 Tempur Way | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40511 | |
City Area Code | 800 | |
Local Phone Number | 878-8889 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Trading Symbol | TPX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,811,534 | |
Entity Central Index Key | 0001206264 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 722.8 | $ 659.9 | $ 1,413.7 | $ 1,297.3 |
Cost of sales | 409.4 | 387.1 | 818.5 | 759.8 |
Gross profit | 313.4 | 272.8 | 595.2 | 537.5 |
Selling and marketing expenses | 163.3 | 153.3 | 316.8 | 298.7 |
General, administrative and other expenses | 72.7 | 65.3 | 143.4 | 132.8 |
Equity income in earnings of unconsolidated affiliates | (3.6) | (3.8) | (6.5) | (7.7) |
Operating (loss) income | 81 | 58 | 141.5 | 113.7 |
Other expense, net: | ||||
Interest expense, net | 22.5 | 23.2 | 44.9 | 45.9 |
Other income, net | 0 | (0.6) | (7.8) | (3.2) |
Total other expense, net | 22.5 | 22.6 | 37.1 | 42.7 |
Income from continuing operations before income taxes | 58.5 | 35.4 | 104.4 | 71 |
Income tax provision | (15.8) | (8.8) | (32.7) | (18.8) |
Income from continuing operations | 42.7 | 26.6 | 71.7 | 52.2 |
Loss from discontinued operations, net of tax | (1.2) | (5.4) | (1.6) | (8.2) |
Net income before non-controlling interest | 41.5 | 21.2 | 70.1 | 44 |
Less: Net (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) |
Less: Comprehensive (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) |
Net income attributable to Tempur Sealy International, Inc. | $ 41.6 | $ 22.8 | $ 70 | $ 45.9 |
Basic | ||||
Earnings per share for continuing operations (in dollars per share) | $ 0.78 | $ 0.52 | $ 1.31 | $ 0.99 |
Loss per share for discontinued operations (in dollars per share) | (0.02) | (0.10) | (0.03) | (0.15) |
Earnings per share (in dollars per share) | 0.76 | 0.42 | 1.28 | 0.84 |
Diluted | ||||
Earnings per share for continuing operations (in dollars per share) | 0.76 | 0.52 | 1.29 | 0.98 |
Loss per share for discontinued operations (in dollars per share) | (0.02) | (0.10) | (0.03) | (0.15) |
Earnings per share (in dollars per share) | $ 0.74 | $ 0.42 | $ 1.26 | $ 0.83 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 54.7 | 54.4 | 54.7 | 54.4 |
Diluted (in shares) | 56 | 54.9 | 55.6 | 55 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before non-controlling interest | $ 41.5 | $ 21.2 | $ 70.1 | $ 44 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustments | 3 | (16.1) | 7 | (11.1) |
Pension benefits loss, net of tax | 0 | 0 | 0 | (0.6) |
Other comprehensive income, net of tax | 3 | (16.1) | 7 | (11.7) |
Comprehensive income | 44.5 | 5.1 | 77.1 | 32.3 |
Less: Comprehensive (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) |
Comprehensive income attributable to Tempur Sealy International, Inc. | $ 44.6 | $ 6.7 | $ 77 | $ 34.2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 38.3 | $ 45.8 |
Accounts receivable, net | 386.3 | 321.5 |
Inventories | 243.1 | 222.3 |
Prepaid expenses and other current assets | 224 | 215.8 |
Total Current Assets | 891.7 | 805.4 |
Property, plant and equipment, net | 430 | 420.8 |
Goodwill | 732.3 | 723 |
Other intangible assets, net | 650.6 | 649.3 |
Operating lease right-of-use assets | 228.1 | 0 |
Deferred income taxes | 12.5 | 22.6 |
Other non-current assets | 101.5 | 94.3 |
Total Assets | 3,046.7 | 2,715.4 |
Current Liabilities: | ||
Accounts payable | 235.5 | 253 |
Accrued expenses and other current liabilities | 436.4 | 359.2 |
Current portion of long-term debt | 60.1 | 47.1 |
Income taxes payable | 6.7 | 9.7 |
Total Current Liabilities | 738.7 | 669 |
Long-term debt, net | 1,585.5 | 1,599.1 |
Long-term operating lease obligations | 186.7 | 0 |
Deferred income taxes | 117 | 117.5 |
Other non-current liabilities | 112.9 | 112.3 |
Total Liabilities | 2,740.8 | 2,497.9 |
Commitments and contingencies | ||
Total Stockholders' Equity | 305.9 | 217.5 |
Total Liabilities and Stockholders' Equity | $ 3,046.7 | $ 2,715.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2017 | $ 2.2 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net loss attributable to non-controlling interest | (1.8) | ||||||
Balance at end of period at Jun. 30, 2018 | 0.4 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2017 | 99.2 | 45 | |||||
Balance at beginning of period at Dec. 31, 2017 | 112.5 | $ 1 | $ (1,737.2) | $ 508 | $ 1,416.2 | $ (75.5) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 45.9 | 45.9 | |||||
Net income (loss) attributable to non-controlling interest | (0.1) | (0.1) | |||||
Acquisition of non-controlling interest in subsidiary | 1.3 | 1.3 | |||||
Adjustment to pension liability, net of tax | (0.1) | (0.1) | |||||
Foreign currency adjustments | (11.1) | (11.1) | |||||
Exercise of stock options (in shares) | (0.1) | ||||||
Exercise of stock options | 2.6 | $ 1 | 1.6 | ||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (0.1) | ||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 2.3 | (2.3) | ||||
Treasury stock repurchased (in shares) | 0.1 | ||||||
Treasury stock repurchased | (3) | $ (3) | |||||
Amortization of unearned stock-based compensation | 13.1 | 13.1 | |||||
Balance at ending of period (in shares) at Jun. 30, 2018 | 99.2 | 44.9 | |||||
Balance at end of period at Jun. 30, 2018 | 157.7 | $ 1 | $ (1,736.9) | 520.4 | 1,459.2 | (87.2) | 1.2 |
Balance at beginning of period at Mar. 31, 2018 | 1.9 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net loss attributable to non-controlling interest | (1.5) | ||||||
Balance at end of period at Jun. 30, 2018 | 0.4 | ||||||
Balance at beginning of period (in shares) at Mar. 31, 2018 | 99.2 | 45 | |||||
Balance at beginning of period at Mar. 31, 2018 | 142.4 | $ 1 | $ (1,737.5) | 513.6 | 1,436.4 | (71.1) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 22.8 | 22.8 | |||||
Net income (loss) attributable to non-controlling interest | (0.1) | (0.1) | |||||
Acquisition of non-controlling interest in subsidiary | 1.3 | 1.3 | |||||
Foreign currency adjustments | (16.1) | (16.1) | |||||
Exercise of stock options (in shares) | (0.1) | ||||||
Exercise of stock options | 0.7 | $ 0.4 | 0.3 | ||||
Issuances of PRSUs, RSUs, and DSUs | 0 | 0.3 | (0.3) | ||||
Treasury stock repurchased | (0.1) | $ (0.1) | |||||
Amortization of unearned stock-based compensation | 6.8 | 6.8 | |||||
Balance at ending of period (in shares) at Jun. 30, 2018 | 99.2 | 44.9 | |||||
Balance at end of period at Jun. 30, 2018 | 157.7 | $ 1 | $ (1,736.9) | 520.4 | 1,459.2 | (87.2) | 1.2 |
Balance at beginning of period at Dec. 31, 2018 | 0 | ||||||
Balance at end of period at Jun. 30, 2019 | 0 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2018 | 99.2 | 44.7 | |||||
Balance at beginning of period at Dec. 31, 2018 | 217.5 | $ 1 | $ (1,737) | 532.1 | 1,513.8 | (95.3) | 2.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 70 | 70 | |||||
Net income (loss) attributable to non-controlling interest | 0.1 | 0.1 | |||||
Repurchase of interest in subsidiary | (1.9) | (1.9) | |||||
Foreign currency adjustments | 7 | 7 | |||||
Exercise of stock options (in shares) | (0.2) | ||||||
Exercise of stock options | 5.5 | $ 1.7 | 3.8 | ||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (0.2) | ||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 3.5 | (3.5) | ||||
Treasury stock repurchased (in shares) | 0.1 | ||||||
Treasury stock repurchased | (5.5) | $ (5.5) | |||||
Amortization of unearned stock-based compensation | 13.2 | 13.2 | |||||
Balance at ending of period (in shares) at Jun. 30, 2019 | 99.2 | 44.4 | |||||
Balance at end of period at Jun. 30, 2019 | 305.9 | $ 1 | $ (1,737.3) | 545.6 | 1,583.8 | (88.3) | 1.1 |
Balance at beginning of period at Mar. 31, 2019 | 0 | ||||||
Balance at end of period at Jun. 30, 2019 | 0 | ||||||
Balance at beginning of period (in shares) at Mar. 31, 2019 | 99.2 | 44.5 | |||||
Balance at beginning of period at Mar. 31, 2019 | 253.5 | $ 1 | $ (1,736.7) | 537.1 | 1,542.2 | (91.3) | 1.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 41.6 | 41.6 | |||||
Net income (loss) attributable to non-controlling interest | (0.1) | (0.1) | |||||
Foreign currency adjustments | 3 | 3 | |||||
Exercise of stock options (in shares) | (0.1) | ||||||
Exercise of stock options | 3.1 | $ 0.9 | 2.2 | ||||
Issuances of PRSUs, RSUs, and DSUs | 0 | 0.3 | (0.3) | ||||
Treasury stock repurchased | (1.8) | $ (1.8) | |||||
Amortization of unearned stock-based compensation | 6.6 | 6.6 | |||||
Balance at ending of period (in shares) at Jun. 30, 2019 | 99.2 | 44.4 | |||||
Balance at end of period at Jun. 30, 2019 | $ 305.9 | $ 1 | $ (1,737.3) | $ 545.6 | $ 1,583.8 | $ (88.3) | $ 1.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Net income before non-controlling interest | $ 70.1 | $ 44 |
Loss from discontinued operations, net of tax | 1.6 | 8.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43.5 | 41.8 |
Amortization of stock-based compensation | 13.2 | 13.1 |
Non-cash lease expense | 2.4 | 0 |
Amortization of deferred financing costs | 1.2 | 1.2 |
Bad debt expense | 4.6 | 1.7 |
Deferred income taxes | 8.8 | (2.4) |
Dividends received from unconsolidated affiliates | 2.3 | 3.7 |
Equity income in earnings of unconsolidated affiliates | (6.5) | (7.7) |
Foreign currency adjustments and other | (6.3) | (2.9) |
Changes in operating assets and liabilities | (89) | (83.3) |
Net cash provided by operating activities from continuing operations | 45.9 | 17.4 |
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Purchases of property, plant and equipment | (39.9) | (40.5) |
Acquisitions net of cash acquired | (17.1) | 0 |
Other | 10.3 | 0.6 |
Net cash used in investing activities from continuing operations | (46.7) | (39.9) |
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Proceeds from borrowings under long-term debt obligations | 509.2 | 732.2 |
Repayments of borrowings under long-term debt obligations | (509.8) | (697.8) |
Proceeds from exercise of stock options | 5.5 | 2.6 |
Treasury stock repurchased | (5.5) | (3) |
Other | (3.4) | (3.4) |
Net cash (used in) provided by financing activities from continuing operations | (4) | 30.6 |
Net cash (used in) provided by continuing operations | (4.8) | 8.1 |
CASH USED IN DISCONTINUED OPERATIONS | ||
Operating cash flows | (2) | (15.8) |
Investing cash flows | 0 | (0.1) |
Financing cash flows | 0 | 0 |
Net cash used in discontinued operations | (2) | (15.9) |
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.7) | (1.5) |
Decrease in cash and cash equivalents | (7.5) | (9.3) |
CASH AND CASH EQUIVALENTS, beginning of period | 45.8 | 41.9 |
CASH AND CASH EQUIVALENTS, end of period | 38.3 | 32.6 |
LESS: CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATIONS | 0 | (1.6) |
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | 38.3 | 31 |
Cash paid during the period for: | ||
Interest | 45.9 | 45.3 |
Income taxes, net of refunds | $ 35.2 | $ 17.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation and Description of Business. Tempur Sealy International, Inc., a Delaware corporation, together with its subsidiaries, is a U.S. based, multinational company. The term "Tempur Sealy International" refers to Tempur Sealy International, Inc. only, and the term "Company" refers to Tempur Sealy International, Inc. and its consolidated subsidiaries. The Company develops, manufactures, markets and sells bedding products, which include mattresses, foundations and adjustable bases, and other products, which include pillows and other accessories. The Company also derives income from royalties by licensing Sealy® and Stearns & Foster® brands, technology and trademarks to other manufacturers. The Company sells its products through two sales channels: Wholesale and Direct. The Company has ownership interests in a group of Asia-Pacific joint ventures to develop markets for Sealy® branded products in those regions. The Company’s ownership interest in these joint ventures is 50.0% . The equity method of accounting is used for these joint ventures, over which the Company has significant influence but does not have control, and consolidation is not otherwise required. The Company's carrying value in its equity method investments of $24.6 million and $22.5 million at June 30, 2019 and December 31, 2018 , respectively, is recorded in other non-current assets within the accompanying Condensed Consolidated Balance Sheets. The Company’s equity in the net income and losses of these investments is recorded as equity income in earnings of unconsolidated affiliates in the accompanying Condensed Consolidated Statements of Income. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States ("GAAP") for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2018 , included in the 2018 Annual Report filed with the Securities and Exchange Commission on February 25, 2019. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. It is the opinion of management that all necessary adjustments for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. (b) Adoption of New Accounting Standards. Leases. Effective January 1, 2019, the Company adopted Accounting Standards Codification 842, Leases ("ASC 842"). ASC 842 consists of a comprehensive lease accounting standard requiring most leases to be recognized on the Condensed Consolidated Balance Sheet and significant new disclosures. The Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded within the Condensed Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term within the Condensed Consolidated Statement of Income. The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most leases do not provide an implicit interest rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. When contracts contain lease and non-lease components, the Company generally accounts for both components as a single lease component. The adoption of ASC 842 resulted in the recognition of right-of-use assets of $ 197.2 million and operating lease liabilities of $203.3 million as of January 1, 2019. Results for reporting periods beginning prior to January 1, 2019 continue to be reported in accordance with our historical accounting treatment. The adoption of ASC 842 did not have a material impact on the Company's results of operations, cash flows or debt covenants. For additional information, see Note 8 , " Leases " of the Condensed Consolidated Financial Statements. (c) Inventories . Inventories are stated at the lower of cost and net realizable value, determined by the first-in, first-out method, and consist of the following: June 30, December 31, (in millions) 2019 2018 Finished goods $ 143.4 $ 148.9 Work-in-process 11.0 11.8 Raw materials and supplies 88.7 61.6 $ 243.1 $ 222.3 (d) Accrued Sales Returns . The Company allows product returns through certain sales channels and on certain products. Estimated sales returns are provided at the time of sale based on historical sales channel return rates. Estimated future obligations related to these products are provided by a reduction of sales in the period in which the revenue is recognized. Accrued sales returns are included in accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company had the following activity for sales returns from December 31, 2018 to June 30, 2019 : (in millions) Balance as of December 31, 2018 $ 34.3 Amounts accrued 52.0 Returns charged to accrual (49.4 ) Balance as of June 30, 2019 $ 36.9 As of June 30, 2019 and December 31, 2018 , $24.6 million and $22.0 million of accrued sales returns are included as a component of accrued expenses and other current liabilities and $12.3 million and $12.3 million , of accrued sales returns are included in other non-current liabilities on the Company’s accompanying Condensed Consolidated Balance Sheets, respectively. (e) Warranties . The Company provides warranties on certain products, which vary by segment, product and brand. Estimates of warranty expenses are based primarily on historical claims experience and product testing. Estimated future obligations related to these products are charged to cost of sales in the period in which the related revenue is recognized. The Company considers the impact of recoverable salvage value on warranty costs in determining its estimate of future warranty obligations. The Company provides warranties on mattresses with varying warranty terms. Tempur-Pedic mattresses sold in the North America segment and all Sealy mattresses have warranty terms ranging from 10 to 25 years, generally non-prorated for the first 10 to 15 years and then prorated for the balance of the warranty term. Tempur-Pedic mattresses sold in the International segment have warranty terms ranging from 5 to 15 years, non-prorated for the first 5 years and then prorated on a straight-line basis for the last 10 years of the warranty term. Tempur-Pedic pillows have a warranty term of 3 years, non-prorated. The Company had the following activity for its accrued warranty expense from December 31, 2018 to June 30, 2019 : (in millions) Balance as of December 31, 2018 $ 36.4 Amounts accrued 14.3 Warranties charged to accrual (13.1 ) Balance as of June 30, 2019 $ 37.6 As of June 30, 2019 and December 31, 2018 , $15.5 million and $14.9 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $22.1 million and $21.5 million of accrued warranty expense is included in other non-current liabilities in the Company’s accompanying Condensed Consolidated Balance Sheets, respectively. (f) Allowance for Doubtful Accounts . The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s accounts receivable. The Company regularly reviews the adequacy of its allowance for doubtful accounts. The Company determines the allowance based on historical write-off experience and current economic conditions and also considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a customer receivable is reasonably assured. Account balances are charged off against the allowance after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets was $50.9 million and $47.6 million as of June 30, 2019 and December 31, 2018 , respectively. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Credit Losses |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 528.5 $ 103.7 $ 632.2 $ 1,030.3 $ 217.8 $ 1,248.1 Direct 59.6 31.0 90.6 101.8 63.8 165.6 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 North America International Consolidated North America International Consolidated Product Bedding products $ 554.2 $ 108.4 $ 662.6 $ 1,068.6 $ 223.8 $ 1,292.4 Other products 33.9 26.3 60.2 63.5 57.8 121.3 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 North America International Consolidated North America International Consolidated Geographical region United States $ 533.7 $ — $ 533.7 $ 1,030.9 $ — $ 1,030.9 Canada 54.4 — 54.4 101.2 — 101.2 International — 134.7 134.7 — 281.6 281.6 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 494.3 $ 107.3 $ 601.6 $ 948.3 $ 236.4 $ 1,184.7 Direct 33.5 24.8 58.3 64.5 48.1 112.6 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 North America International Consolidated North America International Consolidated Product Bedding products $ 497.4 $ 103.9 $ 601.3 $ 949.7 $ 227.6 $ 1,177.3 Other products 30.4 28.2 58.6 63.1 56.9 120.0 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 North America International Consolidated North America International Consolidated Geographical region United States $ 477.7 $ — $ 477.7 $ 917.9 $ — $ 917.9 Canada 50.1 — 50.1 94.9 — 94.9 International — 132.1 132.1 — 284.5 284.5 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 The North America and International segments sell product through two channels: Wholesale and Direct. The Wholesale channel includes all product sales to third party retailers, including third party distribution, hospitality and healthcare. The Direct channel includes product sales through company-owned stores, e-commerce and call centers. The North America and International segments classify products into two major categories: Bedding and Other. Bedding products include mattresses, foundations and adjustable foundations. Other products include pillows, mattress covers, sheets, cushions and various other comfort products. The Wholesale channel also includes income from royalties derived by licensing Sealy® and Stearns & Foster® brands, technology and trademarks to other manufacturers. The licenses include rights for the licensees to use trademarks as well as current proprietary or patented technology that the Company utilizes. The Company also provides its licensees with product specifications, research and development, statistical services and marketing programs. The Company recognizes royalty income based on the occurrence of sales of Sealy® and Stearns & Foster® branded products by various licensees. For product sales in each of the Company's channels, the Company recognizes a sale when the obligations under the terms of the contract with the customer is satisfied, which is generally when control of the product has transferred to the customer. Transferring control of each product sold is considered a separate performance obligation. The Company transfers control and recognizes a sale when the customer receives the product. Each unit sold is considered an independent, unbundled performance obligation. The Company does not have any additional performance obligations other than product sales that are material in the context of the contract. The Company also offers assurance type warranties on certain of its products, which is not accounted for as separate performance obligations under the revenue model. The transaction price is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives, and correspondingly, the revenue that is recognized, varies due to sales incentives and returns the Company offers to its Wholesale and Direct channel customers. Specifically, the Company extends volume discounts, as well as promotional allowances, floor sample discounts, commissions paid to retail associates and slotting fees to its Wholesale channel customers and reflects these amounts as a reduction of sales at the time revenue is recognized based on historical experience. The Company allows returns following a sale, depending on the channel and promotion. The Company reduces revenue and cost of sales for its estimate of the expected returns, which is primarily based on the level of historical sales returns. The Company does not offer extended payment terms beyond one year to customers. As such, the Company does not adjust its consideration for financing arrangements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company presents the financial position and results of operations of certain businesses in the Latin American region as discontinued operations in the accompanying Condensed Consolidated Financial Statements. In December 2018, the Company divested of the net assets of certain subsidiaries in the Latin American region. Components of amounts reflected in the Condensed Consolidated Statements of Income related to discontinued operations are presented in the following table for each of the periods ended June 30 . Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net sales $ — $ 9.8 $ 0.2 $ 20.4 Cost of sales — 6.5 0.2 13.9 Gross profit — 3.3 — 6.5 Selling and marketing expenses — 4.1 0.1 7.6 General, administrative and other expenses 1.2 1.7 1.8 3.2 Operating loss (1.2 ) (2.5 ) (1.9 ) (4.3 ) Interest expense (income), net and other — 3.1 (0.3 ) 4.1 Loss from discontinued operations before income taxes (1.2 ) (5.6 ) (1.6 ) (8.4 ) Income tax provision — 0.2 — 0.2 Net loss from discontinued operations, net of tax $ (1.2 ) $ (5.4 ) $ (1.6 ) $ (8.2 ) |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Innovative Mattress Solutions, LLC ("iMS") On January 11, 2019, iMS filed for bankruptcy and the Company provided debtor-in-possession financing in connection with the iMS Chapter 11 proceedings. On April 1, 2019, the Company acquired substantially all of the net assets of iMS in a transaction valued at approximately $24 million , including assumed liabilities of approximately $11 million as of March 31, 2019 (referred to as the "Sleep Outfitters Acquisition"). The acquisition of this regional bedding retailer furthers the Company’s North American retail strategy, which is focused on meeting customer demand through geographic representation and sales expertise. The Company accounted for this transaction as a business combination. Total cash consideration was $13.2 million , less cash acquired of $5.1 million , resulting in a purchase price of $8.1 million . The preliminary allocation of the purchase price is based on estimates of the fair values of the assets acquired and liabilities assumed as of April 1, 2019, which primarily includes the following: (in millions) Working capital (accounts receivable and inventory, net of accounts payable and accrued liabilities) $ (2.3 ) Property and equipment 5.0 Goodwill 2.1 Other intangible assets 3.3 Operating lease right-of-use assets 28.5 Long-term operating lease liabilities (28.5 ) Net purchase price $ 8.1 Goodwill is calculated as the excess of the purchase price over the net assets acquired and primarily represents the growth opportunities and synergistic benefits to be realized from the acquisition. The goodwill is deductible for income tax purposes and will be included within the North American reporting unit for goodwill impairment assessments. As a result of the acquisition, the Company acquired trade names and customer database of $3.3 million . Acquisition in the International segment On April 1, 2019, the Company acquired the net assets of an entity in the International segment. The acquisition was valued at $7.1 million , and the purchase price allocation primarily included working capital, property, plant and equipment and inventory. Additionally, the Company recognized goodwill of $2.9 million and other intangible assets of $2.9 million |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following summarizes changes to the Company’s goodwill, by segment: (in millions) North America International Consolidated Balance as of December 31, 2018 $ 571.1 151.9 $ 723.0 Goodwill resulting from acquisitions 2.1 5.4 7.5 Foreign currency translation and other 2.5 (0.7 ) 1.8 Balance as of June 30, 2019 $ 575.7 $ 156.6 $ 732.3 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt for the Company consists of the following: June 30, 2019 December 31, 2018 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2016 Credit Agreement Term A Facility $ 435.0 (1) $ 525.0 (2) April 6, 2021 Revolver — (1) — (2) April 6, 2021 2026 Senior Notes 600.0 5.500% 600.0 5.500% June 15, 2026 2023 Senior Notes 450.0 5.625% 450.0 5.625% October 15, 2023 Securitized debt 93.9 (3) 9.1 (3) April 6, 2021 Finance/capital lease obligations (4) 65.9 66.7 Various Other 7.7 3.0 Various Total debt 1,652.5 1,653.8 Less: deferred financing costs 6.9 7.6 Total debt, net 1,645.6 1,646.2 Less: current portion 60.1 47.1 Total long-term debt, net $ 1,585.5 $ 1,599.1 (1) Interest at LIBOR plus applicable margin of 1.75% as of June 30, 2019. (2) Interest at LIBOR plus applicable margin of 2.00% as of December 31, 2018. (3) Interest at one month LIBOR index plus 80 basis points. (4) Finance/capital lease obligations are a non-cash financing activity. 2016 Credit Agreement On April 6, 2016, the Company entered into the 2016 Credit Agreement with a syndicate of banks. The 2016 Credit Agreement requires compliance with certain financial covenants providing for maintenance of a minimum consolidated interest coverage ratio, maintenance of a maximum consolidated total net leverage ratio, and maintenance of a maximum consolidated secured net leverage ratio. As of June 30, 2019 , domestic qualified cash was $20.7 million and foreign qualified cash was $9.4 million . During the six months ended June 30, 2019 , the Company prepaid $75.0 million on the Term A Facility. The Company was in compliance with all applicable covenants as of June 30, 2019 . Securitized Debt On April 12, 2017, the Company and certain of its subsidiaries entered into a securitization transaction with respect to certain accounts receivable due to the Company and certain of its subsidiaries (as amended, the "Accounts Receivable Securitization"). On April 5, 2019, the Company and its subsidiaries entered into a new amendment to the Accounts Receivable Securitization. The amendment, among other things, extended the maturity date of the Accounts Receivable Securitization to April 6, 2021. Fair Value of Financial Instruments Financial instruments, although not recorded at fair value on a recurring basis, include cash and cash equivalents, accounts receivable, accounts payable, and the Company's debt obligations. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate fair value using Level 1 inputs because of the short-term maturity of those instruments. Borrowings under the 2016 Credit Agreement and the securitized debt are at variable interest rates and accordingly their carrying amounts approximate fair value. The fair value of the following material financial instruments were based on Level 2 inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of debt instruments. The fair values of these material financial instruments are as follows: Fair Value (in millions) June 30, 2019 December 31, 2018 2023 Senior Notes $ 466.2 $ 435.6 2026 Senior Notes 623.4 549.3 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases ASC 842 Summary The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2043. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2019 : (in millions) June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 228.1 Finance lease assets Property, plant and equipment, net 57.3 Total leased assets $ 285.4 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 49.0 Finance lease obligations Current portion of long-term debt 7.5 Long-term: Operating lease obligations Long-term operating lease obligations 186.7 Finance lease obligations Long-term debt, net 58.4 Total lease obligations $ 301.6 The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended (in millions) June 30, 2019 June 30, 2019 Operating lease expense (1) $ 22.2 $ 41.2 Finance lease expense: Amortization of right-of-use assets 2.3 4.2 Interest on lease obligations 1.2 2.4 Total lease expense $ 25.7 $ 47.8 (1) Includes short-term leases and variable lease expenses, which are immaterial. The following table sets forth the scheduled maturities of lease obligations as of June 30, 2019 : (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 32.1 $ 5.8 $ 37.9 2020 56.0 11.7 67.7 2021 47.3 11.4 58.7 2022 39.9 9.5 49.4 2023 31.0 7.6 38.6 Thereafter 75.9 43.3 119.2 Total lease payments 282.2 89.3 371.5 Less: Interest 46.5 23.4 69.9 Present value of lease obligations $ 235.7 $ 65.9 $ 301.6 The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2019 : June 30, 2019 Weighted average remaining lease term (years): Operating leases 6.29 Finance leases 9.63 Weighted average discount rate: Operating leases 5.50 % Finance leases 6.32 % The following table provides supplemental information related to the Company's Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 : Six Months Ended (in millions) June 30, 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases $ 27.8 Financing cash flows paid for finance leases 3.3 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.0 |
Leases | Leases ASC 842 Summary The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2043. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2019 : (in millions) June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 228.1 Finance lease assets Property, plant and equipment, net 57.3 Total leased assets $ 285.4 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 49.0 Finance lease obligations Current portion of long-term debt 7.5 Long-term: Operating lease obligations Long-term operating lease obligations 186.7 Finance lease obligations Long-term debt, net 58.4 Total lease obligations $ 301.6 The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended (in millions) June 30, 2019 June 30, 2019 Operating lease expense (1) $ 22.2 $ 41.2 Finance lease expense: Amortization of right-of-use assets 2.3 4.2 Interest on lease obligations 1.2 2.4 Total lease expense $ 25.7 $ 47.8 (1) Includes short-term leases and variable lease expenses, which are immaterial. The following table sets forth the scheduled maturities of lease obligations as of June 30, 2019 : (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 32.1 $ 5.8 $ 37.9 2020 56.0 11.7 67.7 2021 47.3 11.4 58.7 2022 39.9 9.5 49.4 2023 31.0 7.6 38.6 Thereafter 75.9 43.3 119.2 Total lease payments 282.2 89.3 371.5 Less: Interest 46.5 23.4 69.9 Present value of lease obligations $ 235.7 $ 65.9 $ 301.6 The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2019 : June 30, 2019 Weighted average remaining lease term (years): Operating leases 6.29 Finance leases 9.63 Weighted average discount rate: Operating leases 5.50 % Finance leases 6.32 % The following table provides supplemental information related to the Company's Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 : Six Months Ended (in millions) June 30, 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases $ 27.8 Financing cash flows paid for finance leases 3.3 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.0 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Common and Preferred Stock. Tempur Sealy International has 300.0 million authorized shares of common stock with $0.01 per share par value and 10.0 million authorized shares of preferred stock with $0.01 per share par value. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared from time to time by the Company's Board of Directors (the "Board") out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. The Board is authorized, subject to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of preferred stock in one or more series. Each such series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as determined by the Board, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. (b) Treasury Stock. As of June 30, 2019 , the Company had approximately $224.6 million remaining under the existing share repurchase authorization for repurchases of Tempur Sealy International's common stock. The Company repurchased 24,170 shares for approximately $1.5 million and 39,901 shares for approximately $2.3 million during the three and six months ended June 30, 2019 , respectively. The Company did not repurchase any shares during the three and six months ended June 30, 2018 . In addition, the Company acquired an insignificant amount of shares upon the vesting of certain restricted stock units ("RSUs"), which were withheld to satisfy tax withholding obligations during each of the three and six months ended June 30, 2019 and 2018 . The shares withheld were valued at the closing price of the stock on the New York Stock Exchange on the vesting date or first business day thereafter, resulting in approximately $0.3 million and $0.1 million in treasury stock acquired during the three months ended June 30, 2019 and 2018 , respectively. The Company acquired approximately $3.2 million and $3.0 million in treasury stock during the six months ended June 30, 2019 and 2018 , respectively. (c) AOCL. AOCL consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2019 2018 2019 2018 Foreign Currency Translation Balance at beginning of period $ (87.7 ) $ (67.8 ) $ (91.7 ) $ (72.8 ) Other comprehensive loss: Foreign currency translation adjustments (1) 3.0 (16.1 ) 7.0 (11.1 ) Balance at end of period $ (84.7 ) $ (83.9 ) $ (84.7 ) $ (83.9 ) Pensions Balance at beginning of period $ (3.6 ) $ (3.3 ) $ (3.6 ) $ (2.7 ) Other comprehensive loss: Net change from period revaluations, net of tax — — — — Tax expense (2) — — — — Total other comprehensive income before reclassifications, net of tax $ — $ — $ — $ — Net amount reclassified to earnings (1) — — — — U.S. tax reform - reclassification to retained earnings upon adoption of ASU No. 2018-02 — — — (0.5 ) Tax benefit (2) — — — (0.1 ) Total amount reclassified from accumulated other comprehensive loss, net of tax $ — $ — $ — $ (0.6 ) Total other comprehensive loss — — — (0.6 ) Balance at end of period $ (3.6 ) $ (3.3 ) $ (3.6 ) $ (3.3 ) (1) In 2019 and 2018, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. (2) These amounts were included in the income tax provision in the accompanying Condensed Consolidated Statements of Income. |
Other Items
Other Items | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Other Items | Other Items Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in millions) June 30, 2019 December 31, 2018 Taxes $ 135.5 $ 136.8 Advertising 57.3 46.1 Wages and benefits 54.3 43.7 Operating lease obligations 49.0 — Sales returns 24.6 22.0 Warranty 15.5 14.9 Rebates 9.2 11.6 Other 91.0 84.1 $ 436.4 $ 359.2 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 included performance restricted stock units ("PRSUs"), non-qualified stock options, RSUs and deferred stock units ("DSUs"). A summary of the Company’s stock-based compensation expense is presented in the following table: Three Months Ended Six Months Ended (in millions) 2019 2018 2019 2018 PRSU expense $ 0.4 $ 0.7 $ 0.7 $ 1.5 Option expense 1.2 1.9 2.4 3.8 RSU/DSU expense 5.0 4.2 10.1 7.8 Total stock-based compensation expense $ 6.6 $ 6.8 $ 13.2 $ 13.1 The Company grants PRSUs to executive officers and certain members of management. Actual payout under the PRSUs is dependent upon the achievement of certain financial goals. In March 2019, the Compensation Committee of the Board formally determined that the Company did not meet the performance metric of $650.0 million of adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for payout under the PRSUs granted in 2017 (the "2017 Aspirational Plan PRSUs"). As a result, the remaining one-third of the 2017 Aspirational Plan PRSUs previously granted with a performance period for 2018 were forfeited as of this date. At June 30, 2019, the Company had 1.6 million PRSUs granted in 2018 outstanding that will vest if the Company achieves a certain level of Adjusted EBITDA during four consecutive fiscal quarters as described below (the "2019 Aspirational Plan PRSUs"). The 2019 Aspirational Plan PRSUs will vest based on the highest Adjusted EBITDA for any four consecutive fiscal quarter period ending between (and including) March 31, 2018 and December 31, 2019 (the "First Designated Period"). If the highest Adjusted EBITDA in the First Designated Period is $600.0 million , 66% will vest; if the highest Adjusted EBITDA equals or exceeds $650.0 million , then 100% will vest; if the highest Adjusted EBITDA is between $600.0 million and $650.0 million then a pro rata portion will vest; and if the highest Adjusted EBITDA is less than $600.0 million then one-half of the 2019 Aspirational Plan PRSUs will no longer be available for vesting based on performance and the remaining one-half will remain available for vesting based on the highest Adjusted EBITDA in any four consecutive fiscal quarter period ending between (and including) March 31, 2020 and December 31, 2020 (the "Second Designated Period"). If the highest Adjusted EBITDA in the Second Designated Period is $600.0 million then 66% of the remaining 2019 Aspirational Plan PRSUs will vest; if the Adjusted EBITDA is $650.0 million or more 100% will vest; if Adjusted EBITDA is between $600.0 million and $650.0 million then a pro rata portion will vest; and if Adjusted EBITDA is below $600.0 million then all of the remaining 2019 Aspirational Plan PRSUs will be forfeited. Adjusted EBITDA is defined for purposes of the 2019 Aspirational PRSUs as the Company’s "Consolidated EBITDA" as such term is defined in the 2016 Credit Agreement. The Company did not record any stock-based compensation expense related to the 2019 Aspirational Plan PRSUs during the three and six months ended June 30, 2019 , as it is not considered probable that the Company will achieve the specified performance target for either the First Designated Period or Second Designated Period. The Company will continue to evaluate the probability of achieving the performance condition in future periods and record the appropriate expense if necessary. Based on the price of the Company’s common stock on the grant date, the total unrecognized compensation expense related to this award if the performance target is met for the First Designated Period is $93.3 million , which would be a non-cash expense over the remaining service period if achievement of the performance condition becomes probable. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Myla Gardner v. Scott L. Thompson, Barry A. Hytinen, Evelyn S. Dilsaver, John A. Heil, Jon L. Luther, Usman Nabi, Richard W. Neu, Robert B. Trussell, Jr. and Tempur Sealy International, Inc., filed July 10, 2017; Joseph L. Doherty v. Scott L. Thompson, Barry A. Hytinen, Evelyn S. Dilsaver, John A. Heil, Jon L. Luther, Usman Nabi, Richard W. Neu, Robert B. Trussell, Jr. and Tempur Sealy International, Inc., filed July 20, 2017; and Paul Onesti v. Scott L. Thompson, Barry A. Hytinen, Evelyn S. Dilsaver, John A. Heil, Jon L. Luther, Usman Nabi, Richard W. Neu, Robert B. Trussell, Jr. and Tempur Sealy International, Inc., filed July 21, 2017. During July 2017, three putative shareholder derivative suits were filed against the Company, each member of its Board and two of its officers. Each complaint alleges that the Board and officers caused the Company to make materially false and misleading statements regarding its business and financial prospects, including those with one of its retailers, Mattress Firm, which was a violation of the fiduciary duties they owed to the Company. The Plaintiffs in each of the cases agreed to stay their respective actions until after a decision was rendered on the Motion to Dismiss in a suit filed on March 24, 2017 against Tempur Sealy International, Inc. and two of its officers on behalf of a proposed class of stockholders (the "Buehring Case"). Following the Company's Motion to Dismiss in the Buehring Case being granted in March 2019, the plaintiffs in each of these cases voluntarily dismissed their lawsuits. As such, the cases are now closed. (b) Other. The Company is involved in various other legal and administrative proceedings incidental to the operations of its business. The Company believes that the outcome of all such other pending proceedings in the aggregate will not have a material adverse effect on its business, financial condition, liquidity, or operating results. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended June 30, 2019 and 2018 was 27.0% and 24.9% , respectively. The Company’s income tax rate for the six months ended June 30, 2019 and 2018 was 31.3% and 26.5% , respectively. The Company's income tax rate for the three and six months ended June 30, 2019 and 2018 differed from the U.S. federal statutory rate of 21.0% principally due to subpart F income (i.e., GILTI earned by the Company’s foreign subsidiaries), certain foreign income tax rate differentials, state and local taxes, changes in the Company’s uncertain tax positions, the excess tax deficiency (or benefit) related to stock-based compensation and certain other permanent items. The Company has been involved in a dispute with the Danish Tax Authority ("SKAT") regarding the royalty paid by a U.S. subsidiary of Tempur Sealy International to a Danish subsidiary (the "Danish Tax Matter") for tax years 2001 through current. The royalty is paid by the U.S. subsidiary for the right to utilize certain intangible assets owned by the Danish subsidiary in the U.S. production process. During 2018, the Company reached agreements with both SKAT and the U.S. Internal Revenue Service ("IRS") (the "Settlement") with respect to the adjusted amount of royalties for tax years 2001 through 2011. The Company and SKAT are currently discussing the appropriate administrative process required to implement the Settlement as it relates to both tax and interest. During this process, the Company continues to maintain a liability on its balance sheet for tax and interest under the terms of the Settlement. At June 30, 2019 and December 31, 2018, the Danish liability related to the Settlement is DKK 847.3 million (approximately $129.0 million and $130.0 million using the applicable exchange rates at June 30, 2019 and December 31, 2018, respectively) and is included in accrued expenses and other current liabilities within the Company’s Condensed Consolidated Balance Sheet. At June 30, 2019 and December 31, 2018, respectively the Company had on deposit with SKAT DKK 970.1 million (approximately $147.8 million using the applicable exchange rate at June 30, 2019) and DKK 962.3 million (approximately $147.7 million using the applicable exchange rate at December 31, 2018) for the satisfaction of the anticipated liability for both tax and interest once the administrative process is concluded. The deposit held by SKAT is included in "Prepaid expenses and other current assets" within the Company's Condensed Consolidated Balance Sheet. SKAT has issued preliminary income tax assessments for the years 2012 through 2017, asserting an increase in the royalty earned by the Danish subsidiary. The Company expects to continue to receive preliminary income tax assessments from SKAT for the tax years 2018 and forward, asserting the royalties paid by the U.S. to the Danish subsidiary were too low, which the Company disputes. The Company entered into the Advance Pricing Agreement program (the "APA Program") for the tax years 2012 through 2022 (the "Post-2011 Years") in which the IRS, on the Company’s behalf, will negotiate directly with SKAT for a mutually agreeable royalty due from the U.S. subsidiary to the Danish Subsidiary (the "APA"). That APA is in the early stages of negotiations. Such negotiations are not expected to be concluded in the near term. The Company anticipates such negotiations will result in an increase in the amount of royalties due from the U.S subsidiary to the Danish subsidiary (the "Post-2011 Years Adjustment") for the years 2012 - 2018 as well as the six month period ended June 30, 2019 (the "2012 to Current Period"). It is expected that the Post-2011 Years Adjustment will result in additional income tax in Denmark and a reduction of tax in the United States for the 2012 to Current Period. Consequently, the Company maintains an uncertain income tax liability for its estimate of the potential Danish income tax liability and a deferred tax asset for the associated United States tax benefit for the Post-2011 Years Adjustment. As of June 30, 2019 and December 31, 2018, the Company had accrued Danish tax and interest for Post-2011 Years of approximately DKK 246.2 million and DKK 230.3 million ( $37.5 million and $35.3 million using the applicable exchange rates at June 30, 2019 and December 31, 2018, respectively) as an uncertain income tax liability, which is included in other non-current liabilities on the Company's Condensed Consolidated Balance Sheet as of June 30, 2019 and December 31, 2018. The deferred tax asset for the U.S. correlative benefit associated with the accrual of Danish tax for the Post-2011 Years as of June 30, 2019 and December 31, 2018 is approximately $5.5 million and $4.2 million , respectively. The Company’s uncertain income tax position associated with the Danish Tax Matter is derived using the cumulative probability analysis with possible outcomes based on the Company's updated evaluation of the facts and circumstances regarding this matter and applying the technical requirements applicable to U.S., Danish, and international transfer pricing standards as required by GAAP, taking into account both the U.S. and Danish income tax implications of such outcomes. Both the uncertain income tax position and the deferred tax asset discussed herein reflects the Company’s best judgment of the facts, circumstances and information available through June 30, 2019 . If the Company is not successful in resolving the Danish Tax Matter for the Post-2011 Years or there is a change in facts and circumstances, the Company may be required to further increase its uncertain income tax position associated with this matter, or decrease its deferred tax asset, also related to this matter, which could have a material impact on the Company's reported earnings. The amount of unrecognized tax benefits that would impact the effective tax rate if recognized at June 30, 2019 and December 31, 2018 would be $98.5 million and $91.4 million |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Tempur Sealy International. Three Months Ended Six Months Ended June 30, June 30, (in millions, except per common share amounts) 2019 2018 2019 2018 Numerator: Income from continuing operations, net of loss attributable to non-controlling interest $ 42.8 $ 28.2 $ 71.6 $ 54.1 Denominator: Denominator for basic earnings per common share-weighted average shares 54.7 54.4 54.7 54.4 Effect of dilutive securities: Employee stock-based compensation 1.3 0.5 0.9 0.6 Denominator for diluted earnings per common share-adjusted weighted average shares 56.0 54.9 55.6 55.0 Basic earnings per common share for continuing operations $ 0.78 $ 0.52 $ 1.31 $ 0.99 Diluted earnings per common share for continuing operations $ 0.76 $ 0.52 $ 1.29 $ 0.98 The Company excluded 1.1 million and 1.6 million shares issuable upon exercise of outstanding stock options for the three months ended June 30, 2019 and 2018 , respectively, from the diluted earnings per common share computation because their exercise price was greater than the average market price of Tempur Sealy International’s common stock or they were otherwise anti-dilutive. The Company excluded 1.1 million and 1.6 million shares issuable upon exercise of outstanding stock options for the six months ended June 30, 2019 and 2018 |
Business Segment Information
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 |
Guarantor_Non-Guarantor Financi
Guarantor/Non-Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantor/Non-Guarantor Financial Information | Guarantor/Non-Guarantor Financial Information The $450.0 million and $600.0 million aggregate principal amount of 2023 Senior Notes and 2026 Senior Notes (collectively the "Senior Notes"), respectively, are general unsecured senior obligations of Tempur Sealy International and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by all of Tempur Sealy International’s 100% directly or indirectly owned current and future domestic subsidiaries (the "Combined Guarantor Subsidiaries"), subject to certain exceptions. The foreign subsidiaries (the "Combined Non-Guarantor Subsidiaries") represent the foreign operations of the Company and do not guarantee the Senior Notes. A subsidiary guarantor will be released from its obligations under the applicable indenture governing the Senior Notes when: (a) the subsidiary guarantor is sold or sells all or substantially all of its assets; (b) the subsidiary is declared "unrestricted" under the applicable indenture governing the Senior Notes; (c) the subsidiary’s guarantee of indebtedness under the 2016 Credit Agreement (as it may be amended, refinanced or replaced) is released (other than a discharge through repayment); or (d) the requirements for legal or covenant defeasance or discharge of the applicable indenture have been satisfied. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with the Company’s wholly-owned subsidiary guarantors and non-guarantor subsidiaries. The Company has accounted for its investments in its subsidiaries under the equity method. The following supplemental financial information presents the Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 , the Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 , and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 for Tempur Sealy International, Combined Guarantor Subsidiaries and Combined Non-Guarantor Subsidiaries. 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 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 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business. Tempur Sealy International, Inc., a Delaware corporation, together with its subsidiaries, is a U.S. based, multinational company. The term "Tempur Sealy International" refers to Tempur Sealy International, Inc. only, and the term "Company" refers to Tempur Sealy International, Inc. and its consolidated subsidiaries. The Company develops, manufactures, markets and sells bedding products, which include mattresses, foundations and adjustable bases, and other products, which include pillows and other accessories. The Company also derives income from royalties by licensing Sealy® and Stearns & Foster® brands, technology and trademarks to other manufacturers. The Company sells its products through two sales channels: Wholesale and Direct. The Company has ownership interests in a group of Asia-Pacific joint ventures to develop markets for Sealy® branded products in those regions. The Company’s ownership interest in these joint ventures is 50.0% . The equity method of accounting is used for these joint ventures, over which the Company has significant influence but does not have control, and consolidation is not otherwise required. The Company's carrying value in its equity method investments of $24.6 million and $22.5 million at June 30, 2019 and December 31, 2018 , respectively, is recorded in other non-current assets within the accompanying Condensed Consolidated Balance Sheets. The Company’s equity in the net income and losses of these investments is recorded as equity income in earnings of unconsolidated affiliates in the accompanying Condensed Consolidated Statements of Income. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States ("GAAP") for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2018 , included in the 2018 Annual Report filed with the Securities and Exchange Commission on February 25, 2019. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. It is the opinion of management that all necessary adjustments for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards. Leases. Effective January 1, 2019, the Company adopted Accounting Standards Codification 842, Leases ("ASC 842"). ASC 842 consists of a comprehensive lease accounting standard requiring most leases to be recognized on the Condensed Consolidated Balance Sheet and significant new disclosures. The Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded within the Condensed Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term within the Condensed Consolidated Statement of Income. The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most leases do not provide an implicit interest rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. When contracts contain lease and non-lease components, the Company generally accounts for both components as a single lease component. The adoption of ASC 842 resulted in the recognition of right-of-use assets of $ 197.2 million and operating lease liabilities of $203.3 million as of January 1, 2019. Results for reporting periods beginning prior to January 1, 2019 continue to be reported in accordance with our historical accounting treatment. The adoption of ASC 842 did not have a material impact on the Company's results of operations, cash flows or debt covenants. For additional information, see Note 8 , " Leases " of the Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Credit Losses |
Inventories | Inventories |
Accrued Sales Returns | Accrued Sales Returns . The Company allows product returns through certain sales channels and on certain products. Estimated sales returns are provided at the time of sale based on historical sales channel return rates. Estimated future obligations related to these products are provided by a reduction of sales in the period in which the revenue is recognized. Accrued sales returns are included in accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
Warranties | Warranties . The Company provides warranties on certain products, which vary by segment, product and brand. Estimates of warranty expenses are based primarily on historical claims experience and product testing. Estimated future obligations related to these products are charged to cost of sales in the period in which the related revenue is recognized. The Company considers the impact of recoverable salvage value on warranty costs in determining its estimate of future warranty obligations. The Company provides warranties on mattresses with varying warranty terms. Tempur-Pedic mattresses sold in the North America segment and all Sealy mattresses have warranty terms ranging from 10 to 25 years, generally non-prorated for the first 10 to 15 years and then prorated for the balance of the warranty term. Tempur-Pedic mattresses sold in the International segment have warranty terms ranging from 5 to 15 years, non-prorated for the first 5 years and then prorated on a straight-line basis for the last 10 years of the warranty term. Tempur-Pedic pillows have a warranty term of 3 years, non-prorated. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Inventories are stated at the lower of cost and net realizable value, determined by the first-in, first-out method, and consist of the following: June 30, December 31, (in millions) 2019 2018 Finished goods $ 143.4 $ 148.9 Work-in-process 11.0 11.8 Raw materials and supplies 88.7 61.6 $ 243.1 $ 222.3 |
Changes in accrued sales returns | The Company had the following activity for sales returns from December 31, 2018 to June 30, 2019 : (in millions) Balance as of December 31, 2018 $ 34.3 Amounts accrued 52.0 Returns charged to accrual (49.4 ) Balance as of June 30, 2019 $ 36.9 |
Warranty activity | The Company had the following activity for its accrued warranty expense from December 31, 2018 to June 30, 2019 : (in millions) Balance as of December 31, 2018 $ 36.4 Amounts accrued 14.3 Warranties charged to accrual (13.1 ) Balance as of June 30, 2019 $ 37.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 528.5 $ 103.7 $ 632.2 $ 1,030.3 $ 217.8 $ 1,248.1 Direct 59.6 31.0 90.6 101.8 63.8 165.6 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 North America International Consolidated North America International Consolidated Product Bedding products $ 554.2 $ 108.4 $ 662.6 $ 1,068.6 $ 223.8 $ 1,292.4 Other products 33.9 26.3 60.2 63.5 57.8 121.3 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 North America International Consolidated North America International Consolidated Geographical region United States $ 533.7 $ — $ 533.7 $ 1,030.9 $ — $ 1,030.9 Canada 54.4 — 54.4 101.2 — 101.2 International — 134.7 134.7 — 281.6 281.6 Net sales $ 588.1 $ 134.7 $ 722.8 $ 1,132.1 $ 281.6 $ 1,413.7 The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 494.3 $ 107.3 $ 601.6 $ 948.3 $ 236.4 $ 1,184.7 Direct 33.5 24.8 58.3 64.5 48.1 112.6 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 North America International Consolidated North America International Consolidated Product Bedding products $ 497.4 $ 103.9 $ 601.3 $ 949.7 $ 227.6 $ 1,177.3 Other products 30.4 28.2 58.6 63.1 56.9 120.0 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 North America International Consolidated North America International Consolidated Geographical region United States $ 477.7 $ — $ 477.7 $ 917.9 $ — $ 917.9 Canada 50.1 — 50.1 94.9 — 94.9 International — 132.1 132.1 — 284.5 284.5 Net sales $ 527.8 $ 132.1 $ 659.9 $ 1,012.8 $ 284.5 $ 1,297.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Statements | Components of amounts reflected in the Condensed Consolidated Statements of Income related to discontinued operations are presented in the following table for each of the periods ended June 30 . Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net sales $ — $ 9.8 $ 0.2 $ 20.4 Cost of sales — 6.5 0.2 13.9 Gross profit — 3.3 — 6.5 Selling and marketing expenses — 4.1 0.1 7.6 General, administrative and other expenses 1.2 1.7 1.8 3.2 Operating loss (1.2 ) (2.5 ) (1.9 ) (4.3 ) Interest expense (income), net and other — 3.1 (0.3 ) 4.1 Loss from discontinued operations before income taxes (1.2 ) (5.6 ) (1.6 ) (8.4 ) Income tax provision — 0.2 — 0.2 Net loss from discontinued operations, net of tax $ (1.2 ) $ (5.4 ) $ (1.6 ) $ (8.2 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price is based on estimates of the fair values of the assets acquired and liabilities assumed as of April 1, 2019, which primarily includes the following: (in millions) Working capital (accounts receivable and inventory, net of accounts payable and accrued liabilities) $ (2.3 ) Property and equipment 5.0 Goodwill 2.1 Other intangible assets 3.3 Operating lease right-of-use assets 28.5 Long-term operating lease liabilities (28.5 ) Net purchase price $ 8.1 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by business segment | The following summarizes changes to the Company’s goodwill, by segment: (in millions) North America International Consolidated Balance as of December 31, 2018 $ 571.1 151.9 $ 723.0 Goodwill resulting from acquisitions 2.1 5.4 7.5 Foreign currency translation and other 2.5 (0.7 ) 1.8 Balance as of June 30, 2019 $ 575.7 $ 156.6 $ 732.3 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Debt for the Company consists of the following: June 30, 2019 December 31, 2018 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2016 Credit Agreement Term A Facility $ 435.0 (1) $ 525.0 (2) April 6, 2021 Revolver — (1) — (2) April 6, 2021 2026 Senior Notes 600.0 5.500% 600.0 5.500% June 15, 2026 2023 Senior Notes 450.0 5.625% 450.0 5.625% October 15, 2023 Securitized debt 93.9 (3) 9.1 (3) April 6, 2021 Finance/capital lease obligations (4) 65.9 66.7 Various Other 7.7 3.0 Various Total debt 1,652.5 1,653.8 Less: deferred financing costs 6.9 7.6 Total debt, net 1,645.6 1,646.2 Less: current portion 60.1 47.1 Total long-term debt, net $ 1,585.5 $ 1,599.1 (1) Interest at LIBOR plus applicable margin of 1.75% as of June 30, 2019. (2) Interest at LIBOR plus applicable margin of 2.00% as of December 31, 2018. (3) Interest at one month LIBOR index plus 80 basis points. (4) Finance/capital lease obligations are a non-cash financing activity. |
Fair value of financial instruments | The fair values of these material financial instruments are as follows: Fair Value (in millions) June 30, 2019 December 31, 2018 2023 Senior Notes $ 466.2 $ 435.6 2026 Senior Notes 623.4 549.3 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2019 : (in millions) June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 228.1 Finance lease assets Property, plant and equipment, net 57.3 Total leased assets $ 285.4 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 49.0 Finance lease obligations Current portion of long-term debt 7.5 Long-term: Operating lease obligations Long-term operating lease obligations 186.7 Finance lease obligations Long-term debt, net 58.4 Total lease obligations $ 301.6 |
Lease, Expense | The following table provides supplemental information related to the Company's Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 : Six Months Ended (in millions) June 30, 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases $ 27.8 Financing cash flows paid for finance leases 3.3 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.0 The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended (in millions) June 30, 2019 June 30, 2019 Operating lease expense (1) $ 22.2 $ 41.2 Finance lease expense: Amortization of right-of-use assets 2.3 4.2 Interest on lease obligations 1.2 2.4 Total lease expense $ 25.7 $ 47.8 (1) Includes short-term leases and variable lease expenses, which are immaterial. |
Lessee, Operating Lease, Liability, Maturity | The following table sets forth the scheduled maturities of lease obligations as of June 30, 2019 : (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 32.1 $ 5.8 $ 37.9 2020 56.0 11.7 67.7 2021 47.3 11.4 58.7 2022 39.9 9.5 49.4 2023 31.0 7.6 38.6 Thereafter 75.9 43.3 119.2 Total lease payments 282.2 89.3 371.5 Less: Interest 46.5 23.4 69.9 Present value of lease obligations $ 235.7 $ 65.9 $ 301.6 |
Finance Lease, Liability, Maturity | The following table sets forth the scheduled maturities of lease obligations as of June 30, 2019 : (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 32.1 $ 5.8 $ 37.9 2020 56.0 11.7 67.7 2021 47.3 11.4 58.7 2022 39.9 9.5 49.4 2023 31.0 7.6 38.6 Thereafter 75.9 43.3 119.2 Total lease payments 282.2 89.3 371.5 Less: Interest 46.5 23.4 69.9 Present value of lease obligations $ 235.7 $ 65.9 $ 301.6 |
Lease, Lease Term and Discount Rate | The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2019 : June 30, 2019 Weighted average remaining lease term (years): Operating leases 6.29 Finance leases 9.63 Weighted average discount rate: Operating leases 5.50 % Finance leases 6.32 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Changes in accumulated other comprehensive loss | AOCL consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2019 2018 2019 2018 Foreign Currency Translation Balance at beginning of period $ (87.7 ) $ (67.8 ) $ (91.7 ) $ (72.8 ) Other comprehensive loss: Foreign currency translation adjustments (1) 3.0 (16.1 ) 7.0 (11.1 ) Balance at end of period $ (84.7 ) $ (83.9 ) $ (84.7 ) $ (83.9 ) Pensions Balance at beginning of period $ (3.6 ) $ (3.3 ) $ (3.6 ) $ (2.7 ) Other comprehensive loss: Net change from period revaluations, net of tax — — — — Tax expense (2) — — — — Total other comprehensive income before reclassifications, net of tax $ — $ — $ — $ — Net amount reclassified to earnings (1) — — — — U.S. tax reform - reclassification to retained earnings upon adoption of ASU No. 2018-02 — — — (0.5 ) Tax benefit (2) — — — (0.1 ) Total amount reclassified from accumulated other comprehensive loss, net of tax $ — $ — $ — $ (0.6 ) Total other comprehensive loss — — — (0.6 ) Balance at end of period $ (3.6 ) $ (3.3 ) $ (3.6 ) $ (3.3 ) (1) In 2019 and 2018, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. (2) These amounts were included in the income tax provision in the accompanying Condensed Consolidated Statements of Income. |
Other Items (Tables)
Other Items (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in millions) June 30, 2019 December 31, 2018 Taxes $ 135.5 $ 136.8 Advertising 57.3 46.1 Wages and benefits 54.3 43.7 Operating lease obligations 49.0 — Sales returns 24.6 22.0 Warranty 15.5 14.9 Rebates 9.2 11.6 Other 91.0 84.1 $ 436.4 $ 359.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | A summary of the Company’s stock-based compensation expense is presented in the following table: Three Months Ended Six Months Ended (in millions) 2019 2018 2019 2018 PRSU expense $ 0.4 $ 0.7 $ 0.7 $ 1.5 Option expense 1.2 1.9 2.4 3.8 RSU/DSU expense 5.0 4.2 10.1 7.8 Total stock-based compensation expense $ 6.6 $ 6.8 $ 13.2 $ 13.1 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per common share | The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Tempur Sealy International. Three Months Ended Six Months Ended June 30, June 30, (in millions, except per common share amounts) 2019 2018 2019 2018 Numerator: Income from continuing operations, net of loss attributable to non-controlling interest $ 42.8 $ 28.2 $ 71.6 $ 54.1 Denominator: Denominator for basic earnings per common share-weighted average shares 54.7 54.4 54.7 54.4 Effect of dilutive securities: Employee stock-based compensation 1.3 0.5 0.9 0.6 Denominator for diluted earnings per common share-adjusted weighted average shares 56.0 54.9 55.6 55.0 Basic earnings per common share for continuing operations $ 0.78 $ 0.52 $ 1.31 $ 0.99 Diluted earnings per common share for continuing operations $ 0.76 $ 0.52 $ 1.29 $ 0.98 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Total assets and long-lived assets by segment | 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 |
Segment financial information | 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. |
Long-lived assets by geographic region | 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 |
Net sales by geographic region | 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 |
Guarantor_Non-Guarantor Finan_2
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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019USD ($)channel | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Number of products sales channels | channel | 2 | ||
Ownership percentage | 50.00% | ||
Net investment | $ 24.6 | $ 22.5 | |
Operating lease right-of-use assets | 228.1 | 0 | |
Present value of lease obligations | 235.7 | ||
Revenue Recognition [Abstract] | |||
Allowance for doubtful accounts included in accounts receivable, net | 50.9 | 47.6 | |
Accrued expenses and other current liabilities | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Accrued sales returns | 24.6 | 22 | |
Warranty Term [Abstract] | |||
Accrued warranty expense | 15.5 | 14.9 | |
Other noncurrent liabilities | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Accrued sales returns | 12.3 | 12.3 | |
Warranty Term [Abstract] | |||
Accrued warranty expense | $ 22.1 | $ 21.5 | |
Mattresses | Non-prorated | International | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 5 years | ||
Mattresses | Prorated | International | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 10 years | ||
Mattresses | Minimum | North America | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 10 years | ||
Mattresses | Minimum | International | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 5 years | ||
Mattresses | Minimum | Non-prorated | North America | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 10 years | ||
Mattresses | Maximum | North America | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 25 years | ||
Mattresses | Maximum | International | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 15 years | ||
Mattresses | Maximum | Non-prorated | North America | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 15 years | ||
Pillows | North America | |||
Warranty Term [Abstract] | |||
Warranty term (in years) | 3 years | ||
Accounting Standards Update 2016-02 | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Operating lease right-of-use assets | $ 197.2 | ||
Present value of lease obligations | $ 203.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule Of Inventory, Current (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Finished goods | $ 143.4 | $ 148.9 |
Work-in-process | 11 | 11.8 |
Raw materials and supplies | 88.7 | 61.6 |
Total | $ 243.1 | $ 222.3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes In Accured Sales Returns (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Changes in Accrued Sales Returns [Roll Forward] | |
Beginning balance | $ 22 |
Ending balance | 24.6 |
Sales Returns | |
Changes in Accrued Sales Returns [Roll Forward] | |
Beginning balance | 34.3 |
Amounts accrued | 52 |
Returns charged to accrual | (49.4) |
Ending balance | $ 36.9 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Warranty Activity (Details) - Warranty Reserves $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 36.4 |
Amounts accrued | 14.3 |
Warranties charged to accrual | (13.1) |
Ending balance | $ 37.6 |
Revenue Recognition - Sales (De
Revenue Recognition - Sales (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)product_categorychannel | Jun. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 722.8 | $ 659.9 | $ 1,413.7 | $ 1,297.3 |
Number of products sales channels | channel | 2 | |||
Number of product categories | product_category | 2 | |||
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 722.8 | 659.9 | $ 1,413.7 | 1,297.3 |
Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 533.7 | 477.7 | 1,030.9 | 917.9 |
Operating Segments | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 54.4 | 50.1 | 101.2 | 94.9 |
Operating Segments | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 134.7 | 132.1 | 281.6 | 284.5 |
Operating Segments | Bedding products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 662.6 | 601.3 | 1,292.4 | 1,177.3 |
Operating Segments | Other products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 60.2 | 58.6 | 121.3 | 120 |
Operating Segments | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 632.2 | 601.6 | 1,248.1 | 1,184.7 |
Operating Segments | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 90.6 | 58.3 | 165.6 | 112.6 |
Operating Segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 588.1 | 527.8 | 1,132.1 | 1,012.8 |
Operating Segments | North America | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 533.7 | 477.7 | 1,030.9 | 917.9 |
Operating Segments | North America | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 54.4 | 50.1 | 101.2 | 94.9 |
Operating Segments | North America | Bedding products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 554.2 | 497.4 | 1,068.6 | 949.7 |
Operating Segments | North America | Other products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 33.9 | 30.4 | 63.5 | 63.1 |
Operating Segments | North America | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 528.5 | 494.3 | 1,030.3 | 948.3 |
Operating Segments | North America | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 59.6 | 33.5 | 101.8 | 64.5 |
Operating Segments | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 134.7 | 132.1 | 281.6 | 284.5 |
Operating Segments | International | Bedding products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 108.4 | 103.9 | 223.8 | 227.6 |
Operating Segments | International | Other products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26.3 | 28.2 | 57.8 | 56.9 |
Operating Segments | International | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 103.7 | 107.3 | 217.8 | 236.4 |
Operating Segments | International | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 31 | $ 24.8 | $ 63.8 | $ 48.1 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Net sales | $ 0 | $ 9.8 | $ 0.2 | $ 20.4 |
Cost of sales | 0 | 6.5 | 0.2 | 13.9 |
Gross profit | 0 | 3.3 | 0 | 6.5 |
Selling and marketing expenses | 0 | 4.1 | 0.1 | 7.6 |
General, administrative and other expenses | 1.2 | 1.7 | 1.8 | 3.2 |
Operating income (loss) | (1.2) | (2.5) | (1.9) | (4.3) |
Interest expense (income), net and other | 0 | (3.1) | 0.3 | (4.1) |
Loss from discontinued operations before income taxes | (1.2) | (5.6) | (1.6) | (8.4) |
Income tax provision | 0 | 0.2 | 0 | 0.2 |
Net loss from discontinued operations, net of tax | $ (1.2) | $ (5.4) | $ (1.6) | $ (8.2) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill, acquired during period | $ 7.5 | ||
International | |||
Business Acquisition [Line Items] | |||
Transaction value | $ 7.1 | ||
Goodwill, acquired during period | 2.9 | $ 5.4 | |
Other intangible assets | 2.9 | ||
Innovative Mattress Solutions, LLC (IMS) | |||
Business Acquisition [Line Items] | |||
Transaction value | 24 | ||
Liabilities | $ 11 | ||
Consideration transferred | 13.2 | ||
Cash and equivalents | 5.1 | ||
Payments to acquire businesses | 8.1 | ||
Other intangible assets | 3.3 | ||
Innovative Mattress Solutions, LLC (IMS) | Trade Name and Customer Database | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 3.3 |
Acquisitions (Price Purchase Al
Acquisitions (Price Purchase Allocation) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 732.3 | $ 723 | |
Innovative Mattress Solutions, LLC (IMS) | |||
Business Acquisition [Line Items] | |||
Working capital (accounts receivable and inventory net of accounts payable and accrued liabilities) | $ (2.3) | ||
Property and equipment | 5 | ||
Goodwill | 2.1 | ||
Other intangible assets | 3.3 | ||
Operating lease right-of-use assets | 28.5 | ||
Long-term operating lease liabilities | (28.5) | ||
Net purchase price | $ 8.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Jun. 30, 2019 |
Goodwill [Roll Forward] | ||
Beginning balance | $ 723 | |
Goodwill resulting from acquisitions | 7.5 | |
Foreign currency translation and other | 1.8 | |
Ending balance | 732.3 | |
North America | ||
Goodwill [Roll Forward] | ||
Beginning balance | 571.1 | |
Goodwill resulting from acquisitions | 2.1 | |
Foreign currency translation and other | 2.5 | |
Ending balance | 575.7 | |
International | ||
Goodwill [Roll Forward] | ||
Beginning balance | 151.9 | |
Goodwill resulting from acquisitions | $ 2.9 | 5.4 |
Foreign currency translation and other | (0.7) | |
Ending balance | $ 156.6 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Finance/capital lease obligations | $ 65,900,000 | |
Other | 7,700,000 | $ 3,000,000 |
Total debt | 1,652,500,000 | 1,653,800,000 |
Less: deferred financing costs | 6,900,000 | 7,600,000 |
Total debt, net | 1,645,600,000 | 1,646,200,000 |
Less: current portion | 60,100,000 | 47,100,000 |
Total long-term debt, net | 1,585,500,000 | 1,599,100,000 |
2026 Senior Notes | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Senior notes | $ 600,000,000 | $ 600,000,000 |
Stated percentage | 5.50% | 5.50% |
2026 Senior Notes | Fair Value, Inputs, Level 2 | ||
Line of Credit Facility [Abstract] | ||
Notes, fair value | $ 623,400,000 | $ 549,300,000 |
2023 Senior Notes | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Senior notes | $ 450,000,000 | $ 450,000,000 |
Stated percentage | 5.625% | 5.625% |
2023 Senior Notes | Fair Value, Inputs, Level 2 | ||
Line of Credit Facility [Abstract] | ||
Notes, fair value | $ 466,200,000 | $ 435,600,000 |
Securitized debt | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Securitized debt | $ 93,900,000 | $ 9,100,000 |
Securitized debt | London Interbank Offered Rate (LIBOR) | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Index rate or LIBOR plus (as a percent) | 0.80% | 0.80% |
Financing and capital lease obligations | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Finance/capital lease obligations | $ 65,900,000 | $ 66,700,000 |
2016 Credit Agreement | Line of Credit | ||
Line of Credit Facility [Abstract] | ||
Domestic qualified cash | 20,700,000 | |
Foreign qualified cash | 9,400,000 | |
2016 Credit Agreement | Term A Facility | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Line of credit | 435,000,000 | $ 525,000,000 |
Line of Credit Facility [Abstract] | ||
Prepaid debt payment | $ 75,000,000 | |
2016 Credit Agreement | Term A Facility | London Interbank Offered Rate (LIBOR) | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Index rate or LIBOR plus (as a percent) | 1.75% | 1.75% |
2016 Credit Agreement | Revolver | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Line of credit | $ 0 | $ 0 |
2016 Credit Agreement | Revolver | London Interbank Offered Rate (LIBOR) | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Index rate or LIBOR plus (as a percent) | 2.00% | 2.00% |
Leases - Balance Sheet Effect (
Leases - Balance Sheet Effect (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 228.1 | $ 0 |
Finance lease assets | 57.3 | |
Total leased assets | 285.4 | |
Operating lease obligations | 49 | 0 |
Finance lease obligations | 7.5 | |
Long-term operating lease obligations | 186.7 | $ 0 |
Finance lease obligations | 58.4 | |
Present value of lease obligations | $ 301.6 |
Leases - Expense (Details)
Leases - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 22.2 | $ 41.2 |
Finance lease expense: | ||
Amortization of right-of-use assets | 2.3 | 4.2 |
Interest on lease obligations | 1.2 | 2.4 |
Total lease expense | $ 25.7 | $ 47.8 |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 (excluding the six months ended June 30, 2019) | $ 32.1 |
2020 | 56 |
2021 | 47.3 |
2022 | 39.9 |
2023 | 31 |
Thereafter | 75.9 |
Future minimum lease payments | 282.2 |
Less: Interest | 46.5 |
Present value of lease obligations | 235.7 |
Finance Leases | |
2019 (excluding the six months ended June 30, 2019) | 5.8 |
2020 | 11.7 |
2021 | 11.4 |
2022 | 9.5 |
2023 | 7.6 |
Thereafter | 43.3 |
Total lease payments | 89.3 |
Less: Interest | 23.4 |
Present value of lease obligations | 65.9 |
2019 (excluding the six months ended June 30, 2019) | 37.9 |
2020 | 67.7 |
2021 | 58.7 |
2022 | 49.4 |
2023 | 38.6 |
Thereafter | 119.2 |
Total lease payments | 371.5 |
Less: Interest | 69.9 |
Present value of lease obligations | $ 301.6 |
Leases - Long Term and Discount
Leases - Long Term and Discount Rate (Details) | Jun. 30, 2019 |
Weighted average remaining lease term (years): | |
Operating leases | 6 years 3 months 14 days |
Finance leases | 9 years 7 months 17 days |
Weighted average discount rate: | |
Operating leases | 5.50% |
Finance leases | 6.32% |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease obligations: | |
Operating cash flows paid for operating leases | $ 27.8 |
Financing cash flows paid for finance leases | 3.3 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 55 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)vote$ / sharesshares | Jun. 30, 2018USD ($)shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock shares authorized (in shares) | shares | 300,000,000 | 300,000,000 | ||
Common stock par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred stock authorized shares (in shares) | shares | 10,000,000 | 10,000,000 | ||
Preferred stock par or stated value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock, number of votes granted per common share held | vote | 1 | |||
Treasury stock, shares, acquired (in shares) | shares | 24,170 | 0 | 39,901 | 0 |
Payments for repurchase of common stock | $ 1.5 | $ 2.3 | ||
Value of treasury stock acquired | 1.8 | $ 0.1 | 5.5 | $ 3 |
February 2016 Program | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Remaining shares under share repurchase authorization | 224.6 | 224.6 | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Value of treasury stock acquired | $ 0.3 | $ 0.1 | $ 3.2 | $ 3 |
Stockholders' Equity - AOCL (De
Stockholders' Equity - AOCL (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 253,500,000 | $ 142,400,000 | $ 217,500,000 | $ 112,500,000 |
Other comprehensive income, net of tax | 3,000,000 | (16,100,000) | 7,000,000 | (11,700,000) |
Total other comprehensive loss | 0 | 0 | 0 | (600,000) |
Balance at end of period | 305,900,000 | 157,700,000 | 305,900,000 | 157,700,000 |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (87,700,000) | (67,800,000) | (91,700,000) | (72,800,000) |
Other comprehensive income, net of tax | 3,000,000 | (16,100,000) | 7,000,000 | (11,100,000) |
Tax (expense) benefits | 0 | 0 | ||
Net amount reclassified to earnings | 0 | 0 | ||
Balance at end of period | (84,700,000) | (83,900,000) | (84,700,000) | (83,900,000) |
Pensions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (3,600,000) | (3,300,000) | (3,600,000) | (2,700,000) |
Net change from period revaluations | 0 | 0 | 0 | 0 |
Tax (expense) benefits | 0 | 0 | 0 | 0 |
Total other comprehensive gain (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
U.S. tax reform - reclassification to retained earnings upon adoption of ASU No. 2018-02 | 0 | 0 | 0 | (500,000) |
Tax benefit | 0 | 0 | 0 | (100,000) |
Total amount reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | (600,000) |
Balance at end of period | $ (3,600,000) | $ (3,300,000) | $ (3,600,000) | $ (3,300,000) |
Other Items (Details)
Other Items (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Taxes | $ 135.5 | $ 136.8 |
Advertising | 57.3 | 46.1 |
Wages and benefits | 54.3 | 43.7 |
Operating lease obligations | 49 | 0 |
Sales returns | 24.6 | 22 |
Warranty | 15.5 | 14.9 |
Rebates | 9.2 | 11.6 |
Other | 91 | 84.1 |
Total accrued liabilities | $ 436.4 | $ 359.2 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 6,600,000 | $ 6,800,000 | $ 13,200,000 | $ 13,100,000 |
PRSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 400,000 | 700,000 | 700,000 | 1,500,000 |
PRSU expense | 2017 Aspirational Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 650,000,000 | $ 650,000,000 | ||
Percentage of target shares forfeited | 33.33% | |||
PRSU expense | 2019 Aspirational Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 0 | $ 0 | ||
Outstanding (in shares) | 1.6 | 1.6 | ||
PRSU expense | 2019 Aspirational Plan | 2018 Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 50.00% | |||
PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjust EBITDA is $600 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | $ 600,000,000 | $ 600,000,000 | ||
Award vesting percentage | 66.00% | |||
PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjusted EBITDA equals or exceeds $650 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 650,000,000 | $ 650,000,000 | ||
Award vesting percentage | 100.00% | |||
PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjusted EBITDA is between $600.0 million and $650.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 50.00% | |||
PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjusted EBITDA is less than $600.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 600,000,000 | $ 600,000,000 | ||
PRSU expense | 2019 Aspirational Plan | 2017 Target | Adjust EBITDA is $600 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 600,000,000 | $ 600,000,000 | ||
Award vesting percentage | 66.00% | |||
PRSU expense | 2019 Aspirational Plan | 2017 Target | Adjusted EBITDA equals or exceeds $650 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 650,000,000 | $ 650,000,000 | ||
Award vesting percentage | 100.00% | |||
PRSU expense | 2019 Aspirational Plan | 2017 Target | Adjusted EBITDA is less than $600.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 600,000,000 | $ 600,000,000 | ||
PRSU expense | 2019 Aspirational Plan | First Designated Period | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized stock-based compensation expense | 93,300,000 | 93,300,000 | ||
Option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,200,000 | 1,900,000 | 2,400,000 | 3,800,000 |
RSU/DSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 5,000,000 | $ 4,200,000 | 10,100,000 | $ 7,800,000 |
Minimum | PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjusted EBITDA is between $600.0 million and $650.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 600,000,000 | 600,000,000 | ||
Minimum | PRSU expense | 2019 Aspirational Plan | 2017 Target | Adjusted EBITDA is between $600.0 million and $650.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 600,000,000 | 600,000,000 | ||
Maximum | PRSU expense | 2019 Aspirational Plan | 2018 Target | Adjusted EBITDA is between $600.0 million and $650.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | 650,000,000 | 650,000,000 | ||
Maximum | PRSU expense | 2019 Aspirational Plan | 2017 Target | Adjusted EBITDA is between $600.0 million and $650.0 million | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum Adjusted EBITDA | $ 650,000,000 | $ 650,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 24, 2017officer | Jul. 31, 2017officersuit |
David Buehring Case | ||
Loss Contingencies [Line Items] | ||
Number of defendants | 2 | |
Gardner Case | ||
Loss Contingencies [Line Items] | ||
Number of defendants | 2 | |
New claims filed | suit | 3 |
Income Taxes (Details)
Income Taxes (Details) kr in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2018 | Jun. 30, 2019USD ($) | Jun. 30, 2018 | Jun. 30, 2019DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | |
Income Tax Examination [Line Items] | |||||||
Effective income tax provision (as a percent) | 27.00% | 24.90% | 31.30% | 26.50% | |||
Unrecognized tax benefits that would impact effective tax rate | $ 98.5 | $ 98.5 | $ 91.4 | ||||
Danish Tax Authority (SKAT) | Foreign Tax Authority | |||||||
Income Tax Examination [Line Items] | |||||||
Settlement | 129 | 129 | kr 847.3 | 130 | |||
Danish Tax Authority (SKAT) | Foreign Tax Authority | Tax Years 2001-2011 | |||||||
Income Tax Examination [Line Items] | |||||||
Accrued tax and interest | 147.8 | 147.8 | 970.1 | 147.7 | kr 962.3 | ||
Danish Tax Authority (SKAT) | Foreign Tax Authority | Tax Years Post 2011 | |||||||
Income Tax Examination [Line Items] | |||||||
Accrued tax and interest | 37.5 | 37.5 | kr 246.2 | 35.3 | kr 230.3 | ||
Deferred tax assets | $ 5.5 | $ 5.5 | $ 4.2 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Income from continuing operations, net of loss attributable to non-controlling interest | $ 42.8 | $ 28.2 | $ 71.6 | $ 54.1 |
Denominator: | ||||
Denominator for basic earnings per common share-weighted average shares (in shares) | 54.7 | 54.4 | 54.7 | 54.4 |
Effect of dilutive securities: | ||||
Employee stock-based compensation (in shares) | 1.3 | 0.5 | 0.9 | 0.6 |
Denominator for diluted earnings per common share-adjusted weighted average shares | 56 | 54.9 | 55.6 | 55 |
Basic earnings per share for continuing operations (in dollars per share) | $ 0.78 | $ 0.52 | $ 1.31 | $ 0.99 |
Diluted earnings per share for continuing operations (in dollars per share) | $ 0.76 | $ 0.52 | $ 1.29 | $ 0.98 |
Shares excluded from diluted earnings per common share computation as anti-dilutive (in shares) | 1.1 | 1.6 | 1.1 | 1.6 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||
Number of business segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 3,046.7 | $ 3,046.7 | $ 2,715.4 | ||
Total property, plant and equipment, net | 430 | 430 | 420.8 | ||
Net sales | 722.8 | $ 659.9 | 1,413.7 | $ 1,297.3 | |
Gross profit | 313.4 | 272.8 | 595.2 | 537.5 | |
Operating income (loss) | 81 | 58 | 141.5 | 113.7 | |
Income (loss) from continuing operations before income taxes | 58.5 | 35.4 | 104.4 | 71 | |
Depreciation and amortization (including stock-based compensation amortization) | 28.6 | 27.8 | 56.7 | 54.9 | |
Capital expenditures | 20.8 | 18.7 | 39.9 | 40.5 | |
Long-lived assets | 430 | 430 | 420.8 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 358.4 | 358.4 | 350.7 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 18.7 | 18.7 | 19.1 | ||
Other International | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 52.9 | 52.9 | 51 | ||
Total International | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 189.1 | 182.2 | 382.8 | 379.4 | |
Long-lived assets | 71.6 | 71.6 | 70.1 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total property, plant and equipment, net | 430 | 430 | 420.8 | ||
Net sales | 722.8 | 659.9 | 1,413.7 | 1,297.3 | |
Operating Segments | United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 533.7 | 477.7 | 1,030.9 | 917.9 | |
Operating Segments | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 54.4 | 50.1 | 101.2 | 94.9 | |
Operating Segments | International | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 134.7 | 132.1 | 281.6 | 284.5 | |
Operating Segments | Other International | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 134.7 | 132.1 | 281.6 | 284.5 | |
Operating Segments | North America | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 3,129.5 | 3,129.5 | 2,788.1 | ||
Total property, plant and equipment, net | 324.3 | 324.3 | 317.5 | ||
Net sales | 588.1 | 527.8 | 1,132.1 | 1,012.8 | |
Gross profit | 240 | 203.4 | 444.4 | 387.4 | |
Operating income (loss) | 80.1 | 64.2 | 144.4 | 118.1 | |
Income (loss) from continuing operations before income taxes | 78.6 | 63.4 | 141 | 115.2 | |
Depreciation and amortization (including stock-based compensation amortization) | 15.6 | 13.8 | 30.6 | 27.2 | |
Capital expenditures | 14.4 | 14.1 | 27.3 | 30.9 | |
Operating Segments | North America | United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 533.7 | 477.7 | 1,030.9 | 917.9 | |
Operating Segments | North America | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 54.4 | 50.1 | 101.2 | 94.9 | |
Operating Segments | International | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 631.2 | 631.2 | 604.8 | ||
Total property, plant and equipment, net | 52.9 | 52.9 | 51.1 | ||
Net sales | 134.7 | 132.1 | 281.6 | 284.5 | |
Gross profit | 73.4 | 69.4 | 150.8 | 150.1 | |
Operating income (loss) | 27.4 | 20.9 | 52.6 | 49.7 | |
Income (loss) from continuing operations before income taxes | 23.2 | 18.3 | 53 | 47.6 | |
Depreciation and amortization (including stock-based compensation amortization) | 3.5 | 3.3 | 6.8 | 6.9 | |
Capital expenditures | 3.1 | 3.1 | 6 | 6 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 525.7 | 525.7 | 569 | ||
Total property, plant and equipment, net | 52.8 | 52.8 | 52.2 | ||
Operating income (loss) | (26.5) | (27.1) | (55.5) | (54.1) | |
Income (loss) from continuing operations before income taxes | (43.3) | (46.3) | (89.6) | (91.8) | |
Depreciation and amortization (including stock-based compensation amortization) | 9.5 | 10.7 | 19.3 | 20.8 | |
Capital expenditures | 3.3 | 1.5 | 6.6 | 3.6 | |
Inter-segment eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | (1,239.7) | (1,239.7) | $ (1,246.5) | ||
Net sales | (1) | (0.6) | (2.3) | (1.4) | |
Inter-segment eliminations | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.9 | 0.6 | 1.9 | 1.2 | |
Inter-segment royalty expense (income) | 1 | 0.8 | 2 | 1.3 | |
Inter-segment eliminations | International | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.1 | 0 | 0.4 | 0.2 | |
Inter-segment royalty expense (income) | $ (1) | $ (0.8) | $ (2) | $ (1.3) |
Guarantor_Non-Guarantor Finan_3
Guarantor/Non-Guarantor Financial Information - Narrative (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
2023 Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 450,000,000 | $ 450,000,000 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 600,000,000 | $ 600,000,000 |
Tempur Sealy International, Inc. (Ultimate Parent) | Tempur Sealy International, Inc. (Ultimate Parent) | ||
Debt Instrument [Line Items] | ||
Ownership percentage by parent (in hundredths) | 100.00% |
Guarantor_Non-Guarantor Finan_4
Guarantor/Non-Guarantor Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Supplemental condensed consolidated statements of income and comprehensive income [Abstract] | ||||||||
Net sales | $ 722.8 | $ 659.9 | $ 1,413.7 | $ 1,297.3 | ||||
Cost of sales | 409.4 | 387.1 | 818.5 | 759.8 | ||||
Gross profit | 313.4 | 272.8 | 595.2 | 537.5 | ||||
Selling and marketing expenses | 163.3 | 153.3 | 316.8 | 298.7 | ||||
General, administrative and other expenses | 72.7 | 65.3 | 143.4 | 132.8 | ||||
Equity income in earnings of unconsolidated affiliates | (3.6) | (3.8) | (6.5) | (7.7) | ||||
Operating (loss) income | 81 | 58 | 141.5 | 113.7 | ||||
Other expense, net: | ||||||||
Third party interest expense, net | 22.5 | 23.2 | 44.9 | 45.9 | ||||
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 | ||||
Interest expense, net | 22.5 | 23.2 | 44.9 | 45.9 | ||||
Other (income) expense, net | 0 | (0.6) | (7.8) | (3.2) | ||||
Total other expense, net | 22.5 | 22.6 | 37.1 | 42.7 | ||||
Income from equity investees | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | 58.5 | 35.4 | 104.4 | 71 | ||||
Income tax benefit (provision) | (15.8) | (8.8) | (32.7) | (18.8) | ||||
Income from continuing operations | 42.7 | 26.6 | 71.7 | 52.2 | ||||
Loss from discontinued operations, net of tax | (1.2) | (5.4) | (1.6) | (8.2) | ||||
Net income before non-controlling interest | 41.5 | 21.2 | 70.1 | 44 | ||||
Less: Net (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) | ||||
Net income attributable to Tempur Sealy International, Inc. | 41.6 | 22.8 | 70 | 45.9 | ||||
Comprehensive income attributable to Tempur Sealy International, Inc. | 44.6 | 6.7 | 77 | 34.2 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 38.3 | 38.3 | $ 45.8 | |||||
Accounts receivable, net | 386.3 | 386.3 | 321.5 | |||||
Inventories | 243.1 | 243.1 | 222.3 | |||||
Prepaid expenses and other current assets | 224 | 224 | 215.8 | |||||
Total Current Assets | 891.7 | 891.7 | 805.4 | |||||
Property, plant and equipment, net | 430 | 430 | 420.8 | |||||
Goodwill | 732.3 | 732.3 | 723 | |||||
Other intangible assets, net | 650.6 | 650.6 | 649.3 | |||||
Operating lease right-of-use assets | 228.1 | 228.1 | 0 | |||||
Deferred income taxes | 12.5 | 12.5 | 22.6 | |||||
Other non-current assets | 101.5 | 101.5 | 94.3 | |||||
Net investment in subsidiaries | 0 | 0 | 0 | |||||
Due from affiliates | 0 | 0 | 0 | |||||
Total Assets | 3,046.7 | 3,046.7 | 2,715.4 | |||||
Current Liabilities: | ||||||||
Accounts payable | 235.5 | 235.5 | 253 | |||||
Accrued expenses and other current liabilities | 436.4 | 436.4 | 359.2 | |||||
Current portion of long-term debt | 60.1 | 60.1 | 47.1 | |||||
Income taxes payable | 6.7 | 6.7 | 9.7 | |||||
Total Current Liabilities | 738.7 | 738.7 | 669 | |||||
Long-term debt, net | 1,585.5 | 1,585.5 | 1,599.1 | |||||
Long-term operating lease obligations | 186.7 | 186.7 | 0 | |||||
Deferred income taxes | 117 | 117 | 117.5 | |||||
Other non-current liabilities | 112.9 | 112.9 | 112.3 | |||||
Due to affiliates | 0 | 0 | 0 | |||||
Total Liabilities | 2,740.8 | 2,740.8 | 2,497.9 | |||||
Total Stockholders' Equity | 305.9 | 157.7 | 305.9 | 157.7 | $ 253.5 | 217.5 | $ 142.4 | $ 112.5 |
Total Liabilities and Stockholders' Equity | 3,046.7 | 3,046.7 | 2,715.4 | |||||
Supplemental condensed consolidated statements of cash flows [Abstract] | ||||||||
Net cash (used in) provided by operating activities from continuing operations | 45.9 | 17.4 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Purchases of property, plant and equipment | (20.8) | (18.7) | (39.9) | (40.5) | ||||
Acquisition of business | (17.1) | |||||||
Other | 10.3 | 0.6 | ||||||
Contributions received from (paid to) subsidiaries and affiliates | 0 | 0 | ||||||
Net cash used in investing activities from continuing operations | (46.7) | (39.9) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Proceeds from borrowings under long-term debt obligations | 509.2 | 732.2 | ||||||
Repayments of borrowings under long-term debt obligations | (509.8) | (697.8) | ||||||
Net activity in investment in and advances from (to) subsidiaries and affiliates | 0 | 0 | ||||||
Proceeds from exercise of stock options | 5.5 | 2.6 | ||||||
Treasury stock repurchased | (5.5) | (3) | ||||||
Other | (3.4) | (3.4) | ||||||
Net cash (used in) provided by financing activities from continuing operations | (4) | 30.6 | ||||||
Net cash (used in) provided by continuing operations | (4.8) | 8.1 | ||||||
CASH USED IN DISCONTINUED OPERATIONS | ||||||||
Operating cash flows | (2) | (15.8) | ||||||
Investing cash flows | 0 | (0.1) | ||||||
Financing cash flows | 0 | 0 | ||||||
Net cash used in discontinued operations | (2) | (15.9) | ||||||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.7) | (1.5) | ||||||
Decrease in cash and cash equivalents | (7.5) | (9.3) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 45.8 | 41.9 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 38.3 | 32.6 | 38.3 | 32.6 | ||||
Cash and cash equivalents | 0 | 1.6 | 0 | 1.6 | ||||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | 38.3 | 31 | 38.3 | 31 | ||||
Reportable Legal Entities | Tempur Sealy International, Inc. (Ultimate Parent) | ||||||||
Supplemental condensed consolidated statements of income and comprehensive income [Abstract] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling and marketing expenses | 2.7 | 2.1 | 5.5 | 4 | ||||
General, administrative and other expenses | 4.2 | 5 | 8.5 | 9.7 | ||||
Equity income in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Operating (loss) income | (6.9) | (7.1) | (14) | (13.7) | ||||
Other expense, net: | ||||||||
Third party interest expense, net | 14.1 | 14.9 | 28.2 | 29.9 | ||||
Intercompany interest (income) expense, net | (2.5) | (1.7) | (5.1) | (3.6) | ||||
Interest expense, net | 11.6 | 13.2 | 23.1 | 26.3 | ||||
Other (income) expense, net | 0 | 0 | 0 | 0 | ||||
Total other expense, net | 11.6 | 13.2 | 23.1 | 26.3 | ||||
Income from equity investees | 56.3 | 37.2 | 100.5 | 76.3 | ||||
Income from continuing operations before income taxes | 37.8 | 16.9 | 63.4 | 36.3 | ||||
Income tax benefit (provision) | 3.7 | 4.3 | 6.7 | 7.7 | ||||
Income from continuing operations | 41.5 | 21.2 | 70.1 | 44 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income before non-controlling interest | 41.5 | 21.2 | 70.1 | 44 | ||||
Less: Net (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) | ||||
Net income attributable to Tempur Sealy International, Inc. | 41.6 | 22.8 | 70 | 45.9 | ||||
Comprehensive income attributable to Tempur Sealy International, Inc. | 44.6 | 6.7 | 77 | 34.2 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 0 | 0 | 0.1 | |||||
Accounts receivable, net | 0.1 | 0.1 | 0 | |||||
Inventories | 0 | 0 | 0 | |||||
Prepaid expenses and other current assets | 286.3 | 286.3 | 276.9 | |||||
Total Current Assets | 286.4 | 286.4 | 277 | |||||
Property, plant and equipment, net | 0 | 0 | 0 | |||||
Goodwill | 0 | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Deferred income taxes | 14.1 | 14.1 | 15 | |||||
Other non-current assets | 0 | 0 | 0 | |||||
Net investment in subsidiaries | 752.7 | 752.7 | 661.7 | |||||
Due from affiliates | 423 | 423 | 422.1 | |||||
Total Assets | 1,476.2 | 1,476.2 | 1,375.8 | |||||
Current Liabilities: | ||||||||
Accounts payable | 0 | 0 | 0 | |||||
Accrued expenses and other current liabilities | 6.8 | 6.8 | 6.7 | |||||
Current portion of long-term debt | 0 | 0 | 0 | |||||
Income taxes payable | 0 | 0 | 0 | |||||
Total Current Liabilities | 6.8 | 6.8 | 6.7 | |||||
Long-term debt, net | 1,043.7 | 1,043.7 | 1,043 | |||||
Long-term operating lease obligations | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | 0 | |||||
Other non-current liabilities | 1.3 | 1.3 | 1.9 | |||||
Due to affiliates | 118.5 | 118.5 | 106.7 | |||||
Total Liabilities | 1,170.3 | 1,170.3 | 1,158.3 | |||||
Total Stockholders' Equity | 305.9 | 305.9 | 217.5 | |||||
Total Liabilities and Stockholders' Equity | 1,476.2 | 1,476.2 | 1,375.8 | |||||
Supplemental condensed consolidated statements of cash flows [Abstract] | ||||||||
Net cash (used in) provided by operating activities from continuing operations | (24.3) | (30) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Purchases of property, plant and equipment | 0 | 0 | ||||||
Acquisition of business | 0 | |||||||
Other | 0 | 0 | ||||||
Contributions received from (paid to) subsidiaries and affiliates | 0 | 0 | ||||||
Net cash used in investing activities from continuing operations | 0 | 0 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Proceeds from borrowings under long-term debt obligations | 0 | 0 | ||||||
Repayments of borrowings under long-term debt obligations | 0 | 0 | ||||||
Net activity in investment in and advances from (to) subsidiaries and affiliates | 24.2 | 30.3 | ||||||
Proceeds from exercise of stock options | 5.5 | 2.6 | ||||||
Treasury stock repurchased | (5.5) | (3) | ||||||
Other | 0 | 0 | ||||||
Net cash (used in) provided by financing activities from continuing operations | 24.2 | 29.9 | ||||||
Net cash (used in) provided by continuing operations | (0.1) | (0.1) | ||||||
CASH USED IN DISCONTINUED OPERATIONS | ||||||||
Operating cash flows | 0 | 0 | ||||||
Investing cash flows | 0 | 0 | ||||||
Financing cash flows | 0 | 0 | ||||||
Net cash used in discontinued operations | 0 | 0 | ||||||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | ||||||
Decrease in cash and cash equivalents | (0.1) | (0.1) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0.1 | 0.1 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | 0 | 0 | ||||||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||||
Supplemental condensed consolidated statements of income and comprehensive income [Abstract] | ||||||||
Net sales | 550.3 | 482.7 | 1,064.2 | 923.3 | ||||
Cost of sales | 318 | 289.4 | 634.3 | 555.8 | ||||
Gross profit | 232.3 | 193.3 | 429.9 | 367.5 | ||||
Selling and marketing expenses | 114.8 | 103.5 | 216.1 | 196.6 | ||||
General, administrative and other expenses | 55.8 | 45.6 | 108.5 | 93 | ||||
Equity income in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Operating (loss) income | 61.7 | 44.2 | 105.3 | 77.9 | ||||
Other expense, net: | ||||||||
Third party interest expense, net | 6.9 | 7.5 | 14.5 | 14.5 | ||||
Intercompany interest (income) expense, net | 3.2 | 2.1 | 5.4 | 3.9 | ||||
Interest expense, net | 10.1 | 9.6 | 19.9 | 18.4 | ||||
Other (income) expense, net | (3.7) | (3.5) | (6.6) | (5.8) | ||||
Total other expense, net | 6.4 | 6.1 | 13.3 | 12.6 | ||||
Income from equity investees | 14.3 | 7.8 | 36.4 | 26.8 | ||||
Income from continuing operations before income taxes | 69.6 | 45.9 | 128.4 | 92.1 | ||||
Income tax benefit (provision) | (13.3) | (8.7) | (27.9) | (15.8) | ||||
Income from continuing operations | 56.3 | 37.2 | 100.5 | 76.3 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income before non-controlling interest | 56.3 | 37.2 | 100.5 | 76.3 | ||||
Less: Net (loss) income attributable to non-controlling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to Tempur Sealy International, Inc. | 56.3 | 37.2 | 100.5 | 76.3 | ||||
Comprehensive income attributable to Tempur Sealy International, Inc. | 55.5 | 36.9 | 102 | 75.4 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 13.5 | 13.5 | 6.2 | |||||
Accounts receivable, net | 17 | 17 | 15.2 | |||||
Inventories | 180.2 | 180.2 | 159.4 | |||||
Prepaid expenses and other current assets | 61.1 | 61.1 | 65.4 | |||||
Total Current Assets | 271.8 | 271.8 | 246.2 | |||||
Property, plant and equipment, net | 358.4 | 358.4 | 350.7 | |||||
Goodwill | 510.9 | 510.9 | 508.8 | |||||
Other intangible assets, net | 570.8 | 570.8 | 572.7 | |||||
Operating lease right-of-use assets | 179.7 | 179.7 | ||||||
Deferred income taxes | 0 | 0 | 0 | |||||
Other non-current assets | 53.9 | 53.9 | 49.2 | |||||
Net investment in subsidiaries | 184.2 | 184.2 | 210 | |||||
Due from affiliates | 152.8 | 152.8 | 153.8 | |||||
Total Assets | 2,282.5 | 2,282.5 | 2,091.4 | |||||
Current Liabilities: | ||||||||
Accounts payable | 126.2 | 126.2 | 186.7 | |||||
Accrued expenses and other current liabilities | 217.2 | 217.2 | 143.9 | |||||
Current portion of long-term debt | 52.4 | 52.4 | 44 | |||||
Income taxes payable | 279.9 | 279.9 | 274.7 | |||||
Total Current Liabilities | 675.7 | 675.7 | 649.3 | |||||
Long-term debt, net | 447.7 | 447.7 | 547.1 | |||||
Long-term operating lease obligations | 153.3 | 153.3 | ||||||
Deferred income taxes | 115.2 | 115.2 | 118 | |||||
Other non-current liabilities | 56.5 | 56.5 | 58.2 | |||||
Due to affiliates | 81.4 | 81.4 | 57.1 | |||||
Total Liabilities | 1,529.8 | 1,529.8 | 1,429.7 | |||||
Total Stockholders' Equity | 752.7 | 752.7 | 661.7 | |||||
Total Liabilities and Stockholders' Equity | 2,282.5 | 2,282.5 | 2,091.4 | |||||
Supplemental condensed consolidated statements of cash flows [Abstract] | ||||||||
Net cash (used in) provided by operating activities from continuing operations | 63.6 | 4.1 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Purchases of property, plant and equipment | (33.5) | (34.1) | ||||||
Acquisition of business | (9) | |||||||
Other | 0.1 | 0.1 | ||||||
Contributions received from (paid to) subsidiaries and affiliates | 65.8 | 50.9 | ||||||
Net cash used in investing activities from continuing operations | 23.4 | 16.9 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Proceeds from borrowings under long-term debt obligations | 161.9 | 335.6 | ||||||
Repayments of borrowings under long-term debt obligations | (251.9) | (350.6) | ||||||
Net activity in investment in and advances from (to) subsidiaries and affiliates | 13.6 | (4.3) | ||||||
Proceeds from exercise of stock options | 0 | 0 | ||||||
Treasury stock repurchased | 0 | 0 | ||||||
Other | (3.3) | (2.7) | ||||||
Net cash (used in) provided by financing activities from continuing operations | (79.7) | (22) | ||||||
Net cash (used in) provided by continuing operations | 7.3 | (1) | ||||||
CASH USED IN DISCONTINUED OPERATIONS | ||||||||
Operating cash flows | 0 | 0 | ||||||
Investing cash flows | 0 | 0 | ||||||
Financing cash flows | 0 | 0 | ||||||
Net cash used in discontinued operations | 0 | 0 | ||||||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | ||||||
Decrease in cash and cash equivalents | 7.3 | (1) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 6.2 | 12.3 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 13.5 | 11.3 | 13.5 | 11.3 | ||||
Cash and cash equivalents | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | 11.3 | 11.3 | ||||||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||||
Supplemental condensed consolidated statements of income and comprehensive income [Abstract] | ||||||||
Net sales | 187.9 | 202.9 | 381.2 | 427.7 | ||||
Cost of sales | 106.8 | 120.1 | 215.9 | 251.2 | ||||
Gross profit | 81.1 | 82.8 | 165.3 | 176.5 | ||||
Selling and marketing expenses | 45.8 | 51.8 | 95.3 | 105.7 | ||||
General, administrative and other expenses | 13.9 | 16.4 | 28.2 | 33.3 | ||||
Equity income in earnings of unconsolidated affiliates | (3.6) | (3.8) | (6.5) | (7.7) | ||||
Operating (loss) income | 25 | 18.4 | 48.3 | 45.2 | ||||
Other expense, net: | ||||||||
Third party interest expense, net | 1.5 | 2.1 | 2.2 | 3 | ||||
Intercompany interest (income) expense, net | (0.7) | (0.4) | (0.3) | (0.3) | ||||
Interest expense, net | 0.8 | 1.7 | 1.9 | 2.7 | ||||
Other (income) expense, net | 3.7 | 4.7 | (1.5) | 5.2 | ||||
Total other expense, net | 4.5 | 6.4 | 0.4 | 7.9 | ||||
Income from equity investees | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | 20.5 | 12 | 47.9 | 37.3 | ||||
Income tax benefit (provision) | (6.2) | (4.2) | (11.5) | (10.5) | ||||
Income from continuing operations | 14.3 | 7.8 | 36.4 | 26.8 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income before non-controlling interest | 14.3 | 7.8 | 36.4 | 26.8 | ||||
Less: Net (loss) income attributable to non-controlling interest | (0.1) | (1.6) | 0.1 | (1.9) | ||||
Net income attributable to Tempur Sealy International, Inc. | 14.4 | 9.4 | 36.3 | 28.7 | ||||
Comprehensive income attributable to Tempur Sealy International, Inc. | 18.2 | (6.7) | 41.8 | 17.6 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 24.8 | 24.8 | 39.5 | |||||
Accounts receivable, net | 310.2 | 310.2 | 303.3 | |||||
Inventories | 62.9 | 62.9 | 62.9 | |||||
Prepaid expenses and other current assets | 159.3 | 159.3 | 148.1 | |||||
Total Current Assets | 557.2 | 557.2 | 553.8 | |||||
Property, plant and equipment, net | 71.6 | 71.6 | 70.1 | |||||
Goodwill | 221.4 | 221.4 | 214.2 | |||||
Other intangible assets, net | 79.8 | 79.8 | 76.6 | |||||
Operating lease right-of-use assets | 48.4 | 48.4 | ||||||
Deferred income taxes | 12.6 | 12.6 | 22.6 | |||||
Other non-current assets | 47.6 | 47.6 | 45.1 | |||||
Net investment in subsidiaries | 0 | 0 | 0 | |||||
Due from affiliates | 13.2 | 13.2 | 15.4 | |||||
Total Assets | 1,051.8 | 1,051.8 | 997.8 | |||||
Current Liabilities: | ||||||||
Accounts payable | 50.3 | 50.3 | 63.3 | |||||
Accrued expenses and other current liabilities | 212.4 | 212.4 | 208.6 | |||||
Current portion of long-term debt | 7.7 | 7.7 | 3.1 | |||||
Income taxes payable | 9.5 | 9.5 | 9.6 | |||||
Total Current Liabilities | 279.9 | 279.9 | 284.6 | |||||
Long-term debt, net | 94.1 | 94.1 | 9 | |||||
Long-term operating lease obligations | 33.4 | 33.4 | ||||||
Deferred income taxes | 16 | 16 | 14.5 | |||||
Other non-current liabilities | 55.1 | 55.1 | 52.2 | |||||
Due to affiliates | 389.1 | 389.1 | 427.5 | |||||
Total Liabilities | 867.6 | 867.6 | 787.8 | |||||
Total Stockholders' Equity | 184.2 | 184.2 | 210 | |||||
Total Liabilities and Stockholders' Equity | 1,051.8 | 1,051.8 | 997.8 | |||||
Supplemental condensed consolidated statements of cash flows [Abstract] | ||||||||
Net cash (used in) provided by operating activities from continuing operations | 4.6 | 27.5 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Purchases of property, plant and equipment | (6.4) | (6.5) | ||||||
Acquisition of business | (8.1) | |||||||
Other | 10.2 | 0.5 | ||||||
Contributions received from (paid to) subsidiaries and affiliates | (65.8) | (50.9) | ||||||
Net cash used in investing activities from continuing operations | (70.1) | (56.9) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Proceeds from borrowings under long-term debt obligations | 347.3 | 396.6 | ||||||
Repayments of borrowings under long-term debt obligations | (257.9) | (347.2) | ||||||
Net activity in investment in and advances from (to) subsidiaries and affiliates | (37.8) | (26) | ||||||
Proceeds from exercise of stock options | 0 | 0 | ||||||
Treasury stock repurchased | 0 | 0 | ||||||
Other | (0.1) | (0.7) | ||||||
Net cash (used in) provided by financing activities from continuing operations | 51.5 | 22.7 | ||||||
Net cash (used in) provided by continuing operations | (14) | (6.7) | ||||||
CASH USED IN DISCONTINUED OPERATIONS | ||||||||
Operating cash flows | 0 | 0 | ||||||
Investing cash flows | 0 | 0 | ||||||
Financing cash flows | 0 | 0 | ||||||
Net cash used in discontinued operations | 0 | 0 | ||||||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.7) | (1.5) | ||||||
Decrease in cash and cash equivalents | (14.7) | (8.2) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 39.5 | 29.5 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 24.8 | 21.3 | 24.8 | 21.3 | ||||
Cash and cash equivalents | 1.6 | 1.6 | ||||||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | 19.7 | 19.7 | ||||||
Reclassifications and Eliminations | ||||||||
Supplemental condensed consolidated statements of income and comprehensive income [Abstract] | ||||||||
Net sales | (15.4) | (25.7) | (31.7) | (53.7) | ||||
Cost of sales | (15.4) | (22.4) | (31.7) | (47.2) | ||||
Gross profit | 0 | (3.3) | 0 | (6.5) | ||||
Selling and marketing expenses | 0 | (4.1) | (0.1) | (7.6) | ||||
General, administrative and other expenses | (1.2) | (1.7) | (1.8) | (3.2) | ||||
Equity income in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Operating (loss) income | 1.2 | 2.5 | 1.9 | 4.3 | ||||
Other expense, net: | ||||||||
Third party interest expense, net | 0 | (1.3) | 0 | (1.5) | ||||
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 | ||||
Interest expense, net | 0 | (1.3) | 0 | (1.5) | ||||
Other (income) expense, net | 0 | (1.8) | 0.3 | (2.6) | ||||
Total other expense, net | 0 | (3.1) | 0.3 | (4.1) | ||||
Income from equity investees | (70.6) | (45) | (136.9) | (103.1) | ||||
Income from continuing operations before income taxes | (69.4) | (39.4) | (135.3) | (94.7) | ||||
Income tax benefit (provision) | 0 | (0.2) | 0 | (0.2) | ||||
Income from continuing operations | (69.4) | (39.6) | (135.3) | (94.9) | ||||
Loss from discontinued operations, net of tax | (1.2) | (5.4) | (1.6) | (8.2) | ||||
Net income before non-controlling interest | (70.6) | (45) | (136.9) | (103.1) | ||||
Less: Net (loss) income attributable to non-controlling interest | 0.1 | 1.6 | (0.1) | 1.9 | ||||
Net income attributable to Tempur Sealy International, Inc. | (70.7) | (46.6) | (136.8) | (105) | ||||
Comprehensive income attributable to Tempur Sealy International, Inc. | (73.7) | (30.2) | (143.8) | (93) | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||
Accounts receivable, net | 59 | 59 | 3 | |||||
Inventories | 0 | 0 | 0 | |||||
Prepaid expenses and other current assets | (282.7) | (282.7) | (274.6) | |||||
Total Current Assets | (223.7) | (223.7) | (271.6) | |||||
Property, plant and equipment, net | 0 | 0 | 0 | |||||
Goodwill | 0 | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Deferred income taxes | (14.2) | (14.2) | (15) | |||||
Other non-current assets | 0 | 0 | 0 | |||||
Net investment in subsidiaries | (936.9) | (936.9) | (871.7) | |||||
Due from affiliates | (589) | (589) | (591.3) | |||||
Total Assets | (1,763.8) | (1,763.8) | (1,749.6) | |||||
Current Liabilities: | ||||||||
Accounts payable | 59 | 59 | 3 | |||||
Accrued expenses and other current liabilities | 0 | 0 | 0 | |||||
Current portion of long-term debt | 0 | 0 | 0 | |||||
Income taxes payable | (282.7) | (282.7) | (274.6) | |||||
Total Current Liabilities | (223.7) | (223.7) | (271.6) | |||||
Long-term debt, net | 0 | 0 | 0 | |||||
Long-term operating lease obligations | 0 | 0 | ||||||
Deferred income taxes | (14.2) | (14.2) | (15) | |||||
Other non-current liabilities | 0 | 0 | 0 | |||||
Due to affiliates | (589) | (589) | (591.3) | |||||
Total Liabilities | (826.9) | (826.9) | (877.9) | |||||
Total Stockholders' Equity | (936.9) | (936.9) | (871.7) | |||||
Total Liabilities and Stockholders' Equity | (1,763.8) | (1,763.8) | $ (1,749.6) | |||||
Supplemental condensed consolidated statements of cash flows [Abstract] | ||||||||
Net cash (used in) provided by operating activities from continuing operations | 2 | 15.8 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Purchases of property, plant and equipment | 0 | 0.1 | ||||||
Acquisition of business | 0 | |||||||
Other | 0 | 0 | ||||||
Contributions received from (paid to) subsidiaries and affiliates | 0 | 0 | ||||||
Net cash used in investing activities from continuing operations | 0 | 0.1 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||||||||
Proceeds from borrowings under long-term debt obligations | 0 | 0 | ||||||
Repayments of borrowings under long-term debt obligations | 0 | 0 | ||||||
Net activity in investment in and advances from (to) subsidiaries and affiliates | 0 | 0 | ||||||
Proceeds from exercise of stock options | 0 | 0 | ||||||
Treasury stock repurchased | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Net cash (used in) provided by financing activities from continuing operations | 0 | 0 | ||||||
Net cash (used in) provided by continuing operations | 2 | 15.9 | ||||||
CASH USED IN DISCONTINUED OPERATIONS | ||||||||
Operating cash flows | (2) | (15.8) | ||||||
Investing cash flows | 0 | (0.1) | ||||||
Financing cash flows | 0 | 0 | ||||||
Net cash used in discontinued operations | (2) | (15.9) | ||||||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | ||||||
Decrease in cash and cash equivalents | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ 0 | 0 | $ 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS | $ 0 | $ 0 |
Uncategorized Items - tpx-20196
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,400,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (500,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,900,000) |