Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Schedule of Inventory, Current

Inventories are stated at the lower of cost or market, determined by the first-in, first-out method, and consist of the following:

(in millions)	March 31,		December 31,
	2014		2013
Finished goods	$	155.5	$	126.7
Work-in-process	11.2		10.0
Raw materials and supplies	56.0		62.5
	$	222.7	$	199.2

Changes in accrued sales returns

The Company had the following activity for sales returns from December 31, 2013 to March 31, 2014:

(in millions)
Balance as of December 31, 2013	$	28.7
Amounts accrued	29.6
Returns charged to accrual	(29.1		)
Balance as of March 31, 2014	$	29.2

Warranty terms

The following summarizes the Company’s warranty terms:

Segment	Product/Brand	Warranty Term  (in years)
Tempur North America	Mattresses	10 - 25, prorated (1)
Tempur North America	Pillows	3
Tempur International	Mattresses	15, prorated (2)
Tempur International	Pillows	3
Sealy	Mattresses	10 - 25, prorated(1)

(1) Products have various warranty terms, generally non-prorated for the first 10 to 15 years and then prorated for the balance of the warranty term.

(2) The last 10 years of warranty period are prorated on a straight-line basis.

Warranty activity

The Company had the following activity for warranties from December 31, 2013 to March 31, 2014:

(in millions)
Balance as of December 31, 2013	$	26.1
Amounts accrued	16.5
Warranties charged to accrual	(14.6		)
Balance as of March 31, 2014	$	28.0