Goodwill and Other intangible assets

6 Months Ended

Jun. 30, 2013

Goodwill and Other intangible assets [Abstract]

(3) Goodwill and Other intangible assets

During the six months ending June 30, 2013, the Company’s goodwill increased by approximately $535.9 million related to the Sealy Acquisition. This amount is subject to change based upon the finalization of the allocation of the consideration transferred to the assets acquired and liabilities assumed related to Sealy.

The following summarizes changes to the Company’s goodwill, by reportable business segment:

(in millions)	Total			Tempur North America			Tempur International			Sealy
Balance as of December 31, 2012	$	216.1		$	108.9		$	107.2		$	—
Foreign currency translation adjustments		(4.1	)		(1.0	)		(0.7	)		(2.4	)
Goodwill resulting from acquisitions		535.9			—			—			535.9
Balance as of June 30, 2013	$	747.9		$	107.9		$	106.5		$	533.5

The following table summarizes information relating to the Company’s other intangible assets, net:

(in millions)
			June 30, 2013						December 31, 2012
	Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Unamortized indefinite life intangible assets:
Trade name			$	576.2	$	—	$	576.2	$	55.0	$	—	$	55.0
Amortized intangible assets:
Contractual distributor relationships		15	$	91.1	$	1.8	$	89.3	$	—	$	—	$	—
Technology		10		90.5		18.2		72.3		16.0		16.0		—
Patents, other trademarks, & other trade names		5-20		29.6		10.8		18.8		12.9		9.9		3.0
Customer database		5		8.7		4.9		3.8		4.9		4.9		—
Foam formula		10		3.7		3.7		—		3.7		3.7		—
Reacquired rights		3		5.5		5.5		—		5.8		5.3		0.5
Customer relationships		5		6.4		2.8		3.6		6.7		2.1		4.6
Total			$	811.7	$	47.7	$	764.0	$	105.0	$	41.9	$	63.1

Amortization expense relating to intangible assets for the Company was $4.6 million and $1.4 million for the three months ended June 30, 2013 and 2012, respectively. Amortization expense relating to intangible assets for the Company was $6.2 million and $2.8 million for the six months ended June 30, 2013 and 2012, respectively. No impairments of goodwill or other intangible assets have adjusted the gross carrying amount of these assets in any historical period.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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