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Business Segment Information
12 Months Ended
Dec. 31, 2018
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, joint ventures 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. There were no customers that contributed more than 10% of the Company's sales in 2018 or 2017. Mattress Firm, previously a customer in the North America segment, represented 21.7% of the Company's sales for the year ended December 31, 2016.

The Company’s North America and International segment assets include investments in subsidiaries that are appropriately eliminated in the Company’s accompanying Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable and payable.

The following table summarizes total assets by segment:
 
December 31,
 
December 31,
(in millions)
2018
 
2017
North America
$
2,788.1

 
$
2,771.9

International
604.8

 
593.8

Corporate
569.0

 
614.9

Inter-segment eliminations
(1,246.5
)
 
(1,302.2
)
Discontinued operations

 
15.6

Total assets
$
2,715.4

 
$
2,694.0


     The following table summarizes property, plant and equipment, net, by segment:
 
December 31,
 
December 31,
(in millions)
2018
 
2017
North America
$
317.5

 
$
320.0

International
51.1

 
53.1

Corporate
52.2

 
60.4

Total property, plant and equipment, net
$
420.8

 
$
433.5


 
The following table summarizes segment information for the year ended December 31, 2018:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
2,002.1

 
$
453.2

 
$

 
$

 
$
2,455.3

Other sales
134.1

 
113.5

 

 

 
247.6

Net sales
$
2,136.2

 
$
566.7

 
$

 
$

 
$
2,702.9

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
3.4

 
$
0.5

 
$

 
$
(3.9
)
 
$

Inter-segment royalty expense (income)
3.1

 
(3.1
)
 

 

 

Gross profit
823.4

 
297.3

 

 

 
1,120.7

Operating income (loss)
250.0

 
107.5

 
(101.2
)
 

 
256.3

Income (loss) from continuing operations before income taxes
241.1

 
101.0

 
(177.1
)
 

 
165.0

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
59.0

 
$
13.5

 
$
39.4

 
$

 
$
111.9

Capital expenditures
52.7

 
14.0

 
6.9

 

 
73.6

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the year ended December 31, 2017:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
2,051.8

 
$
421.6

 
$

 
$

 
$
2,473.4

Other sales
122.0

 
105.2

 

 

 
227.2

Net sales
$
2,173.8

 
$
526.8

 
$

 
$

 
$
2,700.6

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
3.8

 
$
1.0

 
$

 
$
(4.8
)
 
$

Gross profit
844.7

 
276.3

 

 

 
1,121.0

Inter-segment royalty expense (income)
5.5

 
(5.5
)
 

 

 

Operating income (loss)
273.2

 
112.0

 
(89.7
)
 

 
295.5

Income (loss) from continuing operations before income taxes
276.0

 
104.5

 
(165.1
)
 

 
215.4

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
51.4

 
$
14.1

 
$
28.5

 
$

 
$
94.0

Capital expenditures
39.9

 
9.0

 
17.7

 

 
66.6

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the year ended December 31, 2016:
(in millions)
North America
 
International
 
Corporate
 
Eliminations
 
Consolidated
Bedding sales
$
2,447.8

 
$
399.9

 
$

 
$

 
$
2,847.7

Other sales
122.3

 
109.7

 

 

 
232.0

Net sales
$
2,570.1

 
$
509.6

 
$

 
$

 
$
3,079.7

 
 
 
 
 
 
 
 
 
 
Inter-segment sales
$
4.5

 
$
0.4

 
$

 
$
(4.9
)
 
$

Gross profit
1,017.4

 
272.1

 

 

 
1,289.5

Inter-segment royalty expense (income)
(7.2
)
 
7.2

 

 

 

Operating income (loss)
411.8

 
100.6

 
(99.0
)
 

 
413.4

Income (loss) from continuing operations before income taxes
406.8

 
94.3

 
(217.5
)
 

 
283.6

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization (1)
$
43.7

 
$
14.7

 
$
30.2

 
$

 
$
88.6

Capital expenditures
32.8

 
14.8

 
14.3

 

 
61.9

(1)
Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes property, plant and equipment, net by geographic region:
 
December 31,
 
December 31,
(in millions)
2018
 
2017
United States
$
350.7

 
$
373.2

Canada
19.1

 
7.2

Other International
51.0

 
53.1

Total property, plant and equipment, net
$
420.8

 
$
433.5

Total International
$
70.1

 
$
60.3



The following table summarizes net sales by geographic region:
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
United States
$
1,928.9

 
$
1,954.2

 
$
2,361.9

Canada
207.3

 
219.6

 
208.2

Other International
566.7

 
526.8

 
509.6

Total net sales
$
2,702.9

 
$
2,700.6

 
$
3,079.7

Total International
$
774.0

 
$
746.4

 
$
717.8