Guarantor/Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of supplemental condensed consolidated statements of comprehensive income

TEMPUR SEALY INTERNATIONAL, INC.

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended March 31, 2014

(in millions)

	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	508.3		$	197.9		$	(4.3	)	$	701.9
Cost of sales	—			340.0			96.7			(4.3		)	432.4
Gross profit	—			168.3			101.2			—			269.5
Selling and marketing expenses	0.5			95.5			47.0			—			143.0
General, administrative and other expenses	4.2			48.8			17.3			—			70.3
Equity income in earnings of unconsolidated affiliates	—			—			(1.7		)	—			(1.7		)
Royalty income, net of royalty expense	—			(4.5		)	—			—			(4.5		)
Operating (loss) income	(4.7		)	28.5			38.6			—			62.4
Other expense, net:
Third party interest expense, net	6.8			15.1			0.3			—			22.2
Intercompany interest expense (income), net	8.0			(8.6		)	0.6			—			—
Interest expense, net	14.8			6.5			0.9			—			22.2
Other (income) expense, net	—			(0.2		)	1.2			—			1.0
Total other expense	14.8			6.3			2.1			—			23.2
Income from equity investees	40.6			28.2			—			(68.8		)	—
Income before income taxes	21.1			50.4			36.5			(68.8		)	39.2
Income tax benefit (provision)	6.6			(9.8		)	(8.3		)	—			(11.5		)
Net income	27.7			40.6			28.2			(68.8		)	27.7
Less: net income attributable to non-controlling interest	0.3			0.3			—			(0.3		)	0.3
Net income attributable to Tempur Sealy International, Inc.	$	27.4		$	40.3		$	28.2		$	(68.5	)	$	27.4
Comprehensive income	$	29.2		$	40.6		$	29.8		$	(70.4	)	$	29.2

TEMPUR SEALY INTERNATIONAL, INC.

Supplemental Condensed Consolidated Statements of Income and Comprehensive Income

Three Months Ended March 31, 2013

(in millions)

	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	259.9		$	136.8		$	(6.6	)	$	390.1
Cost of sales	—			150.7			57.6			(6.6		)	201.7
Gross profit	—			109.2			79.2			—			188.4
Selling and marketing expenses	0.7			52.6			33.1			—			86.4
General, administrative and other expenses	3.7			40.3			14.7			—			58.7
Equity income in earnings of unconsolidated affiliates	—			—			(0.2		)	—			(0.2		)
Royalty income, net of royalty expense	—			(1.0		)	—			—			(1.0		)
Operating (loss) income	(4.4		)	17.3			31.6			—			44.5
Other expense, net:
Third party interest expense, net	4.2			23.4			0.3			—			27.9
Intercompany interest expense (income), net	8.4			(8.4		)	—			—			—
Interest expense, net	12.6			15.0			0.3			—			27.9
Other expense, net	—			0.4			1.1			—			1.5
Total other expense	12.6			15.4			1.4			—			29.4
Income from equity investees	24.8			23.1			—			(47.9		)	—
Income before income taxes	7.8			25.0			30.2			(47.9		)	15.1
Income tax benefit (provision)	4.7			(0.2		)	(7.1		)	—			(2.6		)
Net income	12.5			24.8			23.1			(47.9		)	12.5
Less: net income attributable to non-controlling interest	—			—			—			—			—
Net income attributable to Tempur Sealy International, Inc.	$	12.5		$	24.8		$	23.1		$	(47.9	)	$	12.5
Comprehensive income	$	1.8		$	21.7		$	15.5		$	(37.2	)	$	1.8

Schedule of supplemental condensed consolidated balance sheets

TEMPUR SEALY INTERNATIONAL, INC.

Supplemental Condensed Consolidated Balance Sheets

March 31, 2014

(in millions) 

	Tempur Sealy International, Inc. (Ultimate Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	33.0	$	46.7		$	—		$	79.7
Accounts receivable, net	—		219.8		148.6			—			368.4
Inventories	—		168.0		54.7			—			222.7
Income taxes payable	126.5		—		—			(126.5		)	—
Prepaid expenses and other current assets	1.1		27.5		30.8			—			59.4
Deferred income taxes	9.4		28.8		4.8			—			43.0
Total Current Assets	137.0		477.1		285.6			(126.5		)	773.2
Property, plant and equipment,  net	—		328.5		73.9			—			402.4
Goodwill	—		578.6		185.8			—			764.4
Other intangible assets, net	—		621.2		122.5			—			743.7
Deferred tax asset	—		—		10.8			—			10.8
Other non-current assets	7.2		51.7		18.0			—			76.9
Net investment in subsidiaries	1,765.0		—		—			(1,765.0		)	—
Due from affiliates	74.5		2,036.3		1.4			(2,112.2		)	—
Total Assets	$	1,983.7	$	4,093.4	$	698.0		$	(4,003.7	)	$	2,771.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	—	$	155.0	$	45.8		$	—		$	200.8
Accrued expenses and other current liabilities	7.8		129.1		58.5			—			195.4
Deferred income taxes	—		—		0.9			—			0.9
Income taxes payable	—		126.0		4.3			(126.5		)	3.8
Current portion of long-term debt	—		42.8		2.8			—			45.6
Total Current Liabilities	7.8		452.9		112.3			(126.5		)	446.5
Long-term debt	375.0		1,424.7		—			—			1,799.7
Deferred income taxes	—		248.1		31.8			—			279.9
Other non-current liabilities	—		73.7		8.3			—			82.0
Due to affiliates	1,437.6		129.1		916.9			(2,483.6		)	—
Total Liabilities	1,820.4		2,328.5		1,069.3			(2,610.1		)	2,608.1
Redeemable non-controlling interest	11.8		11.8		—			(11.8		)	11.8
Total Stockholders’ Equity	151.5		1,753.1		(371.3		)	(1,381.8		)	151.5
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity	$	1,983.7	$	4,093.4	$	698.0		$	(4,003.7	)	$	2,771.4

TEMPUR SEALY INTERNATIONAL, INC.

Supplemental Condensed Consolidated Balance Sheets

December 31, 2013

(in millions)

	Tempur Sealy International, Inc. (Ultimate Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	30.9	$	50.1		$	—		$	81.0
Accounts receivable, net	—		192.6		156.6			—			349.2
Inventories	—		147.5		51.7			—			199.2
Income taxes payable	118.4		—		—			(118.4		)	—
Prepaid expenses and other current assets	—		26.3		27.4			—			53.7
Deferred income taxes	10.0		29.3		5.1			—			44.4
Total Current Assets	128.4		426.6		290.9			(118.4		)	727.5
Property, plant and equipment,  net	—		335.9		75.7			—			411.6
Goodwill	—		577.2		182.4			—			759.6
Other intangible assets, net	—		624.6		125.5			—			750.1
Deferred tax asset	—		—		10.9			—			10.9
Other non-current assets	7.6		47.0		15.6			—			70.2
Net investment in subsidiaries	756.0		—		—			(756.0		)	—
Due from affiliates	1,299.9		2,306.5		0.9			(3,607.3		)	—
Total Assets	$	2,191.9	$	4,317.8	$	701.9		$	(4,481.7	)	$	2,729.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	—	$	140.5	$	50.7		$	—		$	191.2
Accrued expenses and other current liabilities	1.4		144.2		62.8			—			208.4
Deferred income taxes	—		—		0.8			—			0.8
Income taxes payable	—		115.2		4.7			(118.4		)	1.5
Current portion of long-term debt	—		36.6		3.0			—			39.6
Total Current Liabilities	1.4		436.5		122.0			(118.4		)	441.5
Long-term debt	375.0		1,421.9		—			—			1,796.9
Deferred income taxes	—		252.8		33.3			—			286.1
Other non-current liabilities	—		69.1		6.2			—			75.3
Due to affiliates	1,685.4		1,381.5		940.5			(4,007.4		)	—
Total Liabilities	2,061.8		3,561.8		1,102.0			(4,125.8		)	2,599.8
											—
Redeemable non-controlling interest	11.5		11.5		—			(11.5		)	11.5
											—
Total Stockholders’ Equity	118.6		744.5		(400.1		)	(344.4		)	118.6
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity	$	2,191.9	$	4,317.8	$	701.9		$	(4,481.7	)	$	2,729.9

Schedule of supplemental condensed consolidated statements of cash flows

Supplemental Condensed Consolidated Statements of Cash Flows

Three Months EndedMarch 31, 2014

(in millions)

	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(10.5	)	$	(14.8	)	$	23.7		$	—	$	(1.6	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(5.5		)	(2.3		)	—		(7.8		)
Acquisition of businesses, net of cash acquired	—			—			—			—		—
Other	—			0.9			(1.7		)	—		(0.8		)
Net cash used in investing activities	—			(4.6		)	(4.0		)	—		(8.6		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from 2012 Credit Agreement	—			74.5			—			—		74.5
Repayments 2012 Credit Agreement	—			(66.5		)	—			—		(66.5		)
Proceeds from issuance of Senior Notes	—			—			—			—		—
Net activity in investment in and advances from (to) subsidiaries and affiliates	10.1			13.9			(24.0		)	—		—
Payment of deferred financing costs	—			—			—			—		—
Proceeds from exercise of stock options	1.7			—			—			—		1.7
Excess tax benefit from stock based compensation	0.9			—			—			—		0.9
Treasury stock repurchased	(2.2		)	—			—			—		(2.2		)
Other	—			(0.4		)	0.5			—		0.1
Net cash provided by (used in) financing activities	10.5			21.5			(23.5		)	—		8.5
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			0.4			—		0.4
Increase (decrease) in cash and cash equivalents	—			2.1			(3.4		)	—		(1.3		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			30.9			50.1			—		81.0
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—		$	33.0		$	46.7		$	—	$	79.7

TEMPUR SEALY INTERNATIONAL, INC. 

Supplemental Condensed Consolidated Statements of Cash Flows

Three Months EndedMarch 31, 2013

(in millions)

	Tempur Sealy International, Inc. (Ultimate Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(17.9	)	$	68.1		$	(45.0	)	$	—	$	5.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			34.3			(39.9		)	—		(5.6		)
Acquisition of businesses, net of cash acquired	—			(1,265.5		)	—			—		(1,265.5		)
Other	—			54.1			(54.0		)	—		0.1
Net cash used in by investing activities	—			(1,177.1		)	(93.9		)	—		(1,271.0		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from 2012 Credit Agreement	—			1,525.0			—			—		1,525.0
Repayments 2012 Credit Agreement	—			(24.1		)	—			—		(24.1		)
Proceeds from issuance of Senior Notes	375.0			—			—			—		375.0
Proceeds from 2011 Credit Facility	—			46.5			—			—		46.5
Repayments of 2011 Credit Facility	—			(696.5		)	—			—		(696.5		)
Net activity in investment in and advances (to) from subsidiaries and affiliates	(801.6		)	760.5			41.1			—		—
Payment of deferred financing costs	(8.1		)	(43.4		)	—			—		(51.5		)
Proceeds from exercise of stock options	4.2			—			—			—		4.2
Excess tax benefit from stock based compensation	2.5			—			—			—		2.5
Treasury stock repurchased	446.0			(446.0		)	—			—		—
Other	—			(4.7		)	4.4			—		(0.3		)
Net cash provided by financing activities	18.0			1,117.3			45.5			—		1,180.8
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			1.2			(4.0		)	—		(2.8		)
Increase (decrease) in cash and cash equivalents	0.1			9.5			(97.4		)	—		(87.8		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			19.2			160.1			—		179.3
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	0.1		$	28.7		$	62.7		$	—	$	91.5