Non-controlling Interests

12 Months Ended

Dec. 31, 2016

Noncontrolling Interest [Abstract]

Non-controlling Interests

Non-controlling Interests

The Company's call arrangement with Comfort Revolution may be exercised by the Company on June 12, 2017. The put arrangement may be exercised by Comfort Revolution on June 12, 2018. The redemption value for both the put and the call arrangement is equal to 7.5 times EBITDA, as defined in the related limited liability company ("LLC") agreement, of Comfort Revolution for the preceding 12 months, adjusted for net debt outstanding and multiplied by the 55.0% ownership interest not held by the Company. Due to the existing put and call arrangements, the non-controlling interest is considered to be redeemable and is recorded on the Consolidated Balance Sheets as a redeemable non-controlling interest outside of permanent equity. The redeemable non-controlling interest is recognized at the higher of 1) the accumulated earnings associated with the non-controlling interest or 2) the contractually-defined redemption value as of the balance sheet date. As of December 31, 2016 and 2015, the accumulated earnings exceeded the redemption value and, accordingly, a redemption value adjustment was not necessary.

During the year ended December 31, 2016, the Company acquired 51% of the outstanding equity of an entity included in the North America segment. The remaining 49% represents a non-controlling interest. The non-controlling interest was originally recorded at its acquisition date fair value in “Stockholders’ (deficit) equity” in the Consolidated Balance Sheets at December 31, 2016 as the non-controlling interest is not redeemable currently or in future periods.