CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Net sales	$ 1,105,421	$ 831,156	$ 927,818
Cost of sales	549,994	437,414	526,861
Gross profit	555,427	393,742	400,957
Selling and marketing expenses	199,722	153,440	172,350
General, administrative and other expenses	109,803	95,357	94,743
Operating income	245,902	144,945	133,864
Other expense, net:
Interest expense, net	(14,501)	(17,349)	(25,123)
Other income (expense), net	(536)	441	(1,319)
Total other expense	(15,037)	(16,908)	(26,442)
Income before income taxes	230,865	128,037	107,422
Income tax provision	73,720	43,044	48,554
Net income	$ 157,145	$ 84,993	$ 58,868
Earnings per common share:
Basic (in dollars per share)	$ 2.23	$ 1.13	$ 0.79
Diluted (in dollars per share)	$ 2.16	$ 1.12	$ 0.79
Cash dividend per common share (in dollars per share)	$ 0	$ 0	$ 0.24
Weighted average common shares outstanding:
Basic (in shares)	70,348	74,934	74,737
Diluted (in shares)	72,792	76,048	74,909

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$ 53,623	$ 14,042
Accounts receivable, net	115,630	105,576
Inventories	69,856	57,686
Prepaid expenses and other current assets	14,363	11,268
Deferred income taxes	18,008	20,411
Total Current Assets	271,480	208,983
Property, plant and equipment, net	159,807	172,497
Goodwill	212,468	193,391
Other intangible assets, net	68,745	64,717
Other non-current assets	3,503	3,791
Total Assets	716,003	643,379
Current Liabilities:
Accounts payable	48,288	47,761
Accrued expenses and other current liabilities	85,469	81,452
Income taxes payable	12,477	7,312
Total Current Liabilities	146,234	136,525
Long-term debt	407,000	297,470
Deferred income taxes	32,315	29,865
Other non-current liabilities	4,421	7,226
Total Liabilities	589,970	471,086
Commitments and Contingencies (see Note 10)
Stockholders' Equity:
Common stock, $0.01 par value, 300,000 shares authorized; 99,215 shares issued as of December 31, 2010 and December 31, 2009, respectively	992	992
Additional paid in capital	320,952	298,842
Retained earnings	522,872	365,727
Accumulated other comprehensive loss	(6,188)	(8,004)
Treasury stock, at cost; 30,731 and 24,103 shares as of December 31, 2010 and 2009, respectively	(712,595)	(485,264)
Total Stockholders' Equity	126,033	172,293
Total Liabilities and Stockholders' Equity	$ 716,003	$ 643,379

PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Stockholders' Equity:
Common Stock, Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	300,000	300,000
Common Stock, Shares Issued (in shares)	99,215	99,215
Treasury Stock, Shares (in shares)	30,731	24,103

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)
In Thousands, unless otherwise specified

Total

Common Shares

Treasury Shares

Additional Paid in Capital

Retained (Deficit)/Earnings

Accumulated Other Comprehensive Income/(Loss)

Stockholders' Equity, Balance at Dec. 31, 2007

$ 48,138

$ 992

$ (491,780)

$ 283,564

$ 241,812

$ 13,550

Stockholders' Equity, Balance (in shares) at Dec. 31, 2007

99,215

24,681

Comprehensive Income:

Net income

58,868

Derivative instruments accounted for as hedges, net of tax

(7,082)

Foreign currency adjustments

(19,058)

Total Comprehensive Income

32,728

58,868

(26,140)

Exercise of stock options

1,202

3,381

(854)

(1,325)

Exercise of stock options (in shares)

(299)

Tax adjustments related to stock compensation

399

Dividend paid to stockholders

17,933

(17,933)

Amortization of unearned stock-based compensation

7,909

Stockholders' Equity, Balance at Dec. 31, 2008

72,443

992

(488,399)

291,018

281,422

(12,590)

Stockholders' Equity, Balance (in shares) at Dec. 31, 2008

99,215

24,382

Comprehensive Income:

Net income

84,993

Derivative instruments accounted for as hedges, net of tax

2,895

Foreign currency adjustments

1,691

Total Comprehensive Income

89,579

84,993

4,586

Exercise of stock options

2,453

3,135

(688)

Exercise of stock options (in shares)

(279)

Tax adjustments related to stock compensation

^[1]

(841)

Dividend paid to stockholders

Amortization of unearned stock-based compensation

8,659

Stockholders' Equity, Balance at Dec. 31, 2009

172,293

992

(485,264)

298,842

365,727

(8,004)

Stockholders' Equity, Balance (in shares) at Dec. 31, 2009

99,215

24,103

Comprehensive Income:

Net income

157,145

Derivative instruments accounted for as hedges, net of tax

3,315

Foreign currency adjustments

(1,499)

Total Comprehensive Income

158,961

157,145

1,816

Purchase of noncontrolling interest

(1,463)

Exercise of stock options

29,059

22,669

6,390

Exercise of stock options (in shares)

(1,872)

Tax adjustments related to stock compensation

5,590

Treasury stock repurchased

(250,000)

Treasury stock repurchased (in shares)

8,500

Dividend paid to stockholders

Amortization of unearned stock-based compensation

11,593

Stockholders' Equity, Balance at Dec. 31, 2010

$ 126,033

$ 992

$ (712,595)

$ 320,952

$ 522,872

$ (6,188)

Stockholders' Equity, Balance (in shares) at Dec. 31, 2010

99,215

30,731

[1]	Includes $359 of Excess tax benefit from stock based compensation.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 157,145	$ 84,993	$ 58,868
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,361	31,424	32,756
Amortization of stock-based compensation	11,608	8,789	8,041
Amortization of deferred financing costs	690	692	1,060
Bad debt expense	531	5,936	8,110
Deferred income taxes	500	(9,810)	2,423
Foreign currency adjustments	(1,666)	(115)	(1,183)
Loss on disposal of equipment	1,201	564	666
Changes in operating assets and liabilities, net of effects of acquired business:
Accounts receivable	(12,752)	(10,542)	51,231
Inventories	(6,710)	3,738	45,758
Prepaid expenses and other current assets	(2,073)	(1,884)	1,695
Accounts payable	(1,145)	7,808	(15,676)
Accrued expenses and other	(370)	14,044	535
Income taxes payable	4,802	(651)	4,110
Net cash provided by operating activities	184,122	134,986	198,394
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for intangible assets and other	(684)	0	0
Acquisition of businesses, net of cash acquired	(18,692)	0	(1,529)
Purchases of property, plant and equipment	(18,141)	(14,303)	(10,494)
Proceeds from escrow settlement	0	0	7,141
Other	0	0	(486)
Net cash used by investing activities	(37,517)	(14,303)	(5,368)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term revolving credit facility	308,836	109,333	127,383
Repayments of long-term revolving credit facility	(197,813)	(230,036)	(251,536)
Repayments of long-term debt	0	0	(1,359)
Repayments of Series A Industrial Revenue Bonds	0	0	(57,785)
Proceeds from issuance of common stock	28,551	1,623	695
Excess tax benefit from stock based compensation	5,590	359	399
Treasury stock repurchased	(250,000)	0	0
Dividend paid to stockholders	0	0	(17,933)
Purchase of noncontrolling Interest	(1,540)	0	0
Other	0	0	(14)
Net cash used by financing activities	(106,376)	(118,721)	(200,150)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(648)	(3,305)	(10,806)
Increase (decrease) in cash and cash equivalents	39,581	(1,343)	(17,930)
CASH AND CASH EQUIVALENTS, beginning of period	14,042	15,385	33,315
CASH AND CASH EQUIVALENTS, end of period	53,623	14,042	15,385
Cash paid during the period for:
Interest	13,607	17,521	24,978
Income taxes, net of refunds	$ 63,854	$ 51,805	$ 38,346

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

(a) Basis of Presentation and Description of Business. Tempur-Pedic International Inc., a Delaware corporation, together with its subsidiaries is a U.S. based, multinational company. The term “Tempur-Pedic International” refers to Tempur-Pedic International Inc. only, and the term “Company” refers to Tempur-Pedic International Inc. and its consolidated subsidiaries. Tempur World, Inc. was formed on January 1, 2000 to combine the manufacturing facilities and the global distribution capabilities of all TEMPUR® products, and Tempur-Pedic International Inc. was formed in 2002 to acquire Tempur World, Inc. This acquisition (Tempur Acquisition) was effective as of November 1, 2002.

The Company manufactures, markets and sells products including pillows, mattresses and other related products. The Company manufactures essentially all its pressure-relieving TEMPUR® products at three manufacturing facilities, with one located in Denmark and two in the U.S. The Company has sales distribution subsidiaries operating in North America, Europe and Asia Pacific and has third party distribution arrangements in certain other countries where it does not have subsidiaries. The Company sells its products through four sales channels: Retail, Direct, Healthcare and Third party.

(b) Basis of Consolidation. The accompanying financial statements include the accounts of Tempur-Pedic International and its subsidiaries. All subsidiaries are wholly-owned. Intercompany balances and transactions have been eliminated. As of December 31, 2010 the Company does not hold any interest in variable-interest entities. On January 29, 2010, the Company established a 51% interest in Tempur Shanghai Holding Ltd (a Hong Kong company). During December 2010, the Company purchased its noncontrolling interest in Tempur Shanghai Holding Ltd. Income attributable to the non-controlling interest was not material in 2010 and is presented within Other income (expense), net within the Consolidated Statements of Income.

(c) Use of Estimates. The preparation of financial statements in conformity with United States Generally Accepted Accounting Principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results are affected by economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of raw materials, can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings.

(d) Foreign Currency. Assets and liabilities of non-U.S. subsidiaries, whose functional currency is the local currency, are translated into U.S. dollars at period-end exchange rates. Income and expense items are translated at the average rates of exchange prevailing during the period. The adjustments resulting from translating the financial statements of foreign subsidiaries are included in Accumulated other comprehensive loss (OCL), a component of Stockholders’ Equity, and included in net earnings only upon sale or liquidation of the underlying foreign subsidiary or affiliated company. Foreign currency transaction gains and losses are recognized in net earnings based on differences between foreign exchanges rates on the transaction date and on the settlement date.

(e) Derivative Financial Instruments. The Company is required to recognize all of its derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated, and is effective, as a hedge and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item or are deferred and reported as a component of Accumulated OCL in Stockholders' equity and subsequently recognized in net income when the hedged item affects net income. The change in fair value of the ineffective portion of a financial instrument is recognized in net income immediately. The gain or loss related to financial instruments that are not designated as hedges are recognized immediately in net income. The Company has designated an interest rate swap that effectively fixes the floating LIBOR-based interest rate on a declining balance of the 2005 Senior Credit Facility as a cash flow hedge, accordingly, changes in fair value are recorded through OCL. See Note 6 for more information on the Company’s interest rate swap.

Derivative financial instruments are used in the normal course of business to manage interest rate and foreign currency exchange risks. Credit risk is managed through the selection of sound financial institutions as counterparties. The Company does not apply hedge accounting to the foreign currency forward contracts used to offset currency-related changes in the fair value of foreign currency denominated assets and liabilities. These contracts are marked-to-market through earnings.

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

	December 31,
	2010		2009
Finished goods	$	53,362	$	41,805
Work-in-process		5,549		6,654
Raw materials and supplies		10,945		9,227
	$	69,856	$	57,686

(h) Property, Plant and Equipment. Property, plant and equipment are carried at cost at acquisition date and are depreciated using the straight-line method over their estimated useful lives as follows:

	Estimated Useful Lives
Buildings	25-30 years
Computer equipment	3-5 years
Leasehold improvements	4-7 years
Machinery equipment	3-7 years
Office furniture and fixtures	5-7 years

Leasehold improvements are amortized over the shorter of the life of the lease or seven years.

(i) Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset or group of assets. If estimated future undiscounted net cash flows are less than the carrying amount of the asset or group of assets, the asset is considered impaired and an expense is recorded in an amount required to reduce the carrying amount of the asset to its then fair value. Fair value generally is determined from estimated discounted future net cash flows (for assets held for use) or net realizable value (for assets held for sale).

(j) Goodwill and Other Intangible Assets. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate an impairment may have occurred. The Company performs an annual impairment test on all existing goodwill and other indefinite lived assets on October 1 of each year and whenever events or circumstances make it more likely than not that impairment may have occurred. The Company reviewed goodwill for impairment based on its identified reporting units, which include its North American and International operations. In conducting the impairment test, the fair value of each of the Company’s reporting units is compared to its respective carrying amount including goodwill. If the fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the fair value, further analysis is performed to assess impairment. The Company’s determination of fair value of the reporting units is based on an income approach, with an appropriate risk adjusted discount rate, and a market approach. Any identified impairment would result in an adjustment to the Company’s results of operations. The Company also tests its indefinite-lived intangible assets, principally trademarks, for impairment using a “relief-from-royalty” method. Significant assumptions inherent in the methodologies are employed and include such estimates as royalty and discount rates. The Company performed its annual impairment test of goodwill and indefinite-lived intangible assets in 2010, 2009 and 2008, none of which resulted in the recognition of impairment charges. For further information on Goodwill and Other intangible assets see Note 3.

(k) Accrued Sales Returns. The Company allows product returns up to 120 days following a sale through certain sales channels and on certain products. Estimated sales returns are provided at the time of sale based on historical sales channel return rates. The level of sales returns differs by channel with the Direct channel typically experiencing the highest rate of return. Estimated future obligations related to these products are provided by a reduction of sales in the period in which the revenue is recognized. Accrued sales returns are included in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets.

The Company had the following activity for sales returns from December 31, 2008 to December 31, 2010:

Balance as of December 31, 2008	$	3,804
Amounts accrued		34,478
Returns charged to accrual		(34,049	)
Balance as of December 31, 2009		4,233
Amounts accrued		46,978
Returns charged to accrual		(46,809	)
Balance as of December 31, 2010	$	4,402

(l) Warranties. The Company provides a 20-year warranty for U.S. sales and a 15-year warranty for non-U.S. sales on mattresses, each prorated for the last 10 years. The Company also provides a 2-year to 3-year warranty on pillows. Estimated future obligations related to these products are provided by charges to operations in the period in which the related revenue is recognized. Estimates of warranty expenses are based primarily on historical claim experience and product testing. Warranties are included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.

The Company had the following activity for warranties from December 31, 2008 to December 31, 2010:

Balance as of December 31, 2008	$	3,903
Amounts accrued		3,533
Warranties charged to accrual		(3,384	)
Balance as of December 31, 2009		4,052
Amounts accrued		4,160
Warranties charged to accrual		(4,131	)
Balance as of December 31, 2010	$	4,081

(m) Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are also recognized for the estimated future effects of tax loss carry forwards. The effect of changes in tax rates on deferred taxes is recognized in the period in which the enactment dates change. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain foreign and domestic tax positions utilizing a prescribed recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

(n) Revenue Recognition. Sales of product are recognized when persuasive evidence of an arrangement exists, products are shipped and title passes to customers and the risks and awards of ownership are transferred, the sales price is fixed or determinable and collectability is reasonably assured. The Company extends volume discounts to certain customers and reflects these amounts as a reduction of sales. The Company also reports sales net of tax assessed by qualifying governmental authorities. The Company extends credit based on the creditworthiness of its customers. No collateral is required on sales made in the normal course of business.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company regularly reviews the adequacy of its allowance for doubtful accounts. The Company determines the allowance based on historical write-off experience and current economic conditions and also considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts included in Accounts receivable, net in the accompanying Consolidated Balance Sheets was $7,437 and $9,030 as of December 31, 2010 and 2009, respectively.

The Company reflects all amounts billed to customers for shipping and handling in Net sales and the costs incurred from shipping and handling product in Cost of sales. Amounts included in Net sales for shipping and handling were approximately $6,089, $5,207 and $8,838 for the years ended December 31, 2010, 2009 and 2008, respectively. Amounts included in Cost of sales for shipping and handling were $87,651, $68,152 and $78,065 for the years ended December 31, 2010, 2009 and 2008, respectively.

(o) Advertising Costs. The Company expenses advertising costs as incurred except for production costs and advance payments, which are deferred and expensed when advertisements run for the first time. Direct response advance payments are deferred and amortized over the life of the program. Advertising costs are included in Selling and marketing expenses in the accompanying Consolidated Statements of Income. Advertising costs charged to expense were $96,611, $69,324 and $85,326 for the years ended December 31, 2010, 2009 and 2008, respectively. Advertising costs deferred and included in Prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets were $7,481 and $5,879 as of December 31, 2010 and 2009, respectively.

(p) Research and Development Expenses. Research and development expenses for new products are expensed as they are incurred and included in General, administrative and other expenses in the accompanying Consolidated Statements of Income. Research and development costs charged to expense were approximately $7,417, $6,458 and $5,983 for the years ended December 31, 2010, 2009 and 2008, respectively.

(q) Stock-Based Compensation. The Company accounts for stock-based payment transactions in which the Company receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. Stock-based compensation cost for restricted stock units (“RSUs”), performance restricted stock units (“PRSUs”) and deferred stock units (“DSUs”) is measured based on the closing fair market value of the Company’s common stock on the date of grant. Stock-based compensation cost for stock options is estimated at the grant date based on each option’s fair-value as calculated by the Black-Scholes option-pricing model. The Company recognizes stock-based compensation cost as expense for awards other than its PRSUs ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost associated with its PRSUs over the requisite service period if it is probable that the performance conditions will be satisfied. The Company will recognize a benefit from stock-based compensation in equity if an incremental tax benefit is realized by following the ordering provisions of the tax law. Further information regarding stock-based compensation can be found in Note 9, “Stock-Based Compensation.”

(r) Treasury Stock. The Board of Directors may authorize share repurchases of the Company’s common stock (Share Repurchase Authorizations). Share repurchases under these authorizations may be made through open market transactions, negotiated purchase or otherwise, at times and in such amounts as the Company, and a committee of the Board, deem appropriate. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. Treasury shares are accounted for under the cost method and reported as a reduction of Stockholders’ Equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice.

(s) Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

(t) Subsequent Events. On January 13, 2011, the Company’s Board of Directors terminated the remaining authority under the July 2010 authorization and approved a new share repurchase authorization of up to $200,000 of the Company’s common stock. Share repurchases under this authorization may be made through open market transactions, negotiated purchases or otherwise, at times and in such amounts as management and a committee of the Board deem appropriate; these repurchases may be funded by operating cash flows and/or borrowings under our credit facility. This share repurchase program may be limited, suspended or terminated at any time without notice.

Recently Issued Accounting Pronouncements	12 Months Ended
Recently Issued Accounting Pronouncements	Dec. 31, 2010
Notes to Financial Statements [Abstract]
Recently Issued Accounting Pronouncements	(2) Recently Issued Accounting Pronouncements In October 2009, the Financial Accounting Standards Board (FASB) updated the revenue recognition guidance relating to the accounting for revenue arrangements involving multiple deliverables. The updates require companies to allocate revenue in arrangements involving multiple deliverables based on the estimated selling price of each deliverable, even though such deliverables are not sold separately either by the company itself or other vendors. This guidance eliminates the requirement that all undelivered elements must have objective and reliable evidence of fair value before a company can recognize the portion of the overall arrangement fee that is attributable to items that already have been delivered. As a result, the new guidance may allow some companies to recognize revenue on transactions that involve multiple deliverables earlier than under previous requirements. The updates are effective for revenue arrangements that begin or are changed in fiscal years that start June 15, 2010 or later. The adoption of this standard in 2011 will not have a material impact on our financial condition, results of operations or cash flows.

Goodwill and Other intangible assets

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Goodwill and Other intangible assets

(3) Goodwill and Other intangible assets

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

	North America		International		Total
Balance as of December 31, 2008	$	89,929	$	102,640	$	192,569
Foreign currency translation adjustments		—		822		822
Balance as of December 31, 2009	$	89,929	$	103,462	$	193,391
Foreign currency translation adjustments		421		75		496
Goodwill resulting from acquisition		18,581		—		18,581
Balance as of December 31, 2010	$	108,931	$	103,537	$	212,468

On April 1, 2010, the Company acquired its third party distributor in Canada. The total amount of cash paid for the acquisition was $18,692. Additional payments may be made to the former owners if certain financial targets are met; the fair value of these payments as of the acquisition date was $6,241. Accordingly, the acquisition date fair value of the consideration transferred was $24,933. The Company estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model, which represents Level 3 fair value measure under U.S. GAAP.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company has finalized its purchase price allocation.

Net working capital	$	456
Deferred tax liability		(1,955	)
Property, plant and equipment		322
Intangible assets		7,529
Goodwill		18,581
Total purchase price	$	24,933

Intangible assets are comprised of $5,639 related to reacquired rights with a useful life of 3 years and $1,890 related to customer relationships with a useful life of 5 years. The goodwill was assigned to the North American segment and the North American reporting unit for the Company’s annual goodwill impairment testing. None of the goodwill is expected to be deductible for income tax purposes.

The following table summarizes information relating to the Company’s Other intangible assets:

		December 31, 2010						December 31, 2009
	Useful	Gross				Net		Gross				Net
	Lives	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(Years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Unamortized indefinite life intangible assets:
Trademarks		$	55,000	$	—	$	55,000	$	55,000	$	—	$	55,000
Amortized intangible assets:
Technology	10	$	16,000	$	13,067	$	2,933	$	16,000	$	11,467	$	4,533
Patents & other trademarks	5-20		12,063		8,575		3,488		11,876		8,002		3,874
Customer database	5		4,813		4,691		122		4,855		4,593		262
Foam formula	10		3,700		3,022		678		3,700		2,652		1,048
Reacquired Rights	3		5,767		1,440		4,327		—		—		—
Customer Relationships	5		2,492		295		2,197		—		—		—
Total		$	99,835	$	31,090	$	68,745	$	91,431	$	26,714	$	64,717

Amortization expense relating to intangible assets for the Company was $4,362, $2,414 and $2,412 for the years ended December 31, 2010, 2009 and 2008, respectively. No impairments of goodwill or other intangible assets have adjusted the gross carrying amount these assets in any historical period.

Annual amortization of intangible assets is expected to be as follows:

Year Ending December 31,
2011	$	4,980
2012		4,529
2013		1,319
2014		687
2015		375

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Long-term Debt

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Long-term Debt

(4) Long-term Debt

(a)	Long-term Debt. Long-term debt for the Company consisted of the following:

	December 31, 2010		December 31, 2009
2005 Senior Credit Facility:
North America Long-Term Revolving Credit Facility payable to lenders, interest at Index Rate or LIBOR plus applicable margin (1.87% and 3.72% as of December 31, 2010 and December 31, 2009, respectively), commitment through and due June 8, 2012	$	407,000	$	294,000
Foreign Long-Term Revolving Credit Facility payable to lenders, interest at Index Rate or LIBOR plus applicable margin (2.06% at December 31, 2009) commitment through and due June 8, 2012		—		3,470
Long-term debt	$	407,000	$	297,470

(b) Secured Credit Financing. On October 18, 2005, the Company entered into a credit agreement (2005 Senior Credit Facility) with a syndicate of banks. The 2005 Senior Credit Facility, as amended, consists of Domestic and foreign credit facilities (Revolvers) that provide for the incurrence of indebtedness up to an aggregate principal amount of $640,000 and matures in 2012. The Domestic credit facility is a five-year, $615,000 revolving credit facility (Domestic Revolver). The foreign credit facility is a five-year $25,000 revolving credit facility (Foreign Revolver). The Revolvers provide for the issuance of letters of credit which, when issued, constitute usage and reduce availability under the Revolvers. The aggregate amount of letters of credit outstanding under the Revolvers was $12,400 at December 31, 2010. After giving effect to letters of credit and $407,000 in borrowings under the Domestic Revolver, total availability under the Revolvers was $220,600 as of December 31, 2010. Both credit facilities bear interest at a rate equal to the 2005 Senior Credit Facility’s applicable margin, as determined in accordance with a performance pricing grid set forth in Amendment No. 3, plus one of the following indexes: London Inter-Bank Offering Rate (LIBOR) and for U.S. dollar-denominated loans only, a base rate. The base rate of U.S. dollar-denominated loans is defined as the higher of the Bank of America prime rate or the Federal Funds rate plus .50%. The Company also pays an annual facility fee on the total amount of the 2005 Senior Credit Facility. The facility fee is calculated based on the consolidated leverage ratio and ranges from .125% to .25%.

The 2005 Senior Credit Facility is guaranteed by Tempur-Pedic International, as well as certain other subsidiaries of Tempur-Pedic International, and is secured by certain fixed and intangible assets of Dan-Foam ApS and substantially all the Company’s U.S. assets. The 2005 Senior Credit Facility contains certain financial covenants and requirements affecting the Company, including a consolidated interest coverage ratio and a consolidated leverage ratio. The Company was in compliance with all covenants as of December 31, 2010.

In May 2008, the Company entered into a three year interest rate swap agreement to manage interest costs and changing interest rates associated with the 2005 Senior Credit Facility. Refer to Note 6, “Derivative Financial Instruments” for additional information regarding the Company’s derivative instruments, including this interest rate swap.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Fair Value of Financial Instruments

(5) Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows:

Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements.

The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At December 31, 2010 and 2009, the Company had an interest rate swap and foreign currency forward contracts recorded at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for credit risk and restrictions and other terms specific to the contracts. The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis:

			Fair Value Measurements at December 31, 2010 Using:
	December 31, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Foreign currency forward contracts	$	676	$	—	$	676	$	—
Interest rate swap	$	1,430	$	—	$	1,430	$	—

			Fair Value Measurements at December 31, 2009 using:
	December 31, 2009		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Foreign currency forward contracts	$	438	$	—	$	438	$	—
Interest rate swap	$	6,865	$	—	$	6,865	$	—

The carrying value of Cash and cash equivalents, Accounts receivable and Accounts payable approximate fair value because of the short-term maturity of those instruments. Borrowings under the 2005 Senior Credit Facility (as defined in Note (4)(b)) are at variable interest rates and accordingly their carrying amounts approximate fair value.

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Derivative Financial Instruments

(6) Derivative Financial Instruments

In the normal course of business, the Company is exposed to certain risks related to fluctuations in interest rates and foreign currency exchange rates. The Company uses various derivative contracts, primarily interest rate swaps and foreign currency exchange forward contracts, to manage risks from these market fluctuations. The financial instruments used by the Company are straight-forward, non-leveraged instruments. The counterparties to these financial instruments are financial institutions with strong credit ratings. The Company maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit ratings of these institutions.

Interest Rate Risk

The Company is exposed to changes in interest rates on its 2005 Senior Credit Facility. In order to manage this risk, in May 2008, the Company entered into a three year interest rate swap agreement to manage interest costs and the risk associated with changing interest rates. The Company designated this interest rate swap as a cash flow hedge of floating rate borrowings and expects the hedge to be highly effective in offsetting fluctuations in the designated interest payments resulting from changes in the benchmark interest rate. The gains and losses on the designated swap agreement will offset losses and gains on the transactions being hedged. The Company formally documented the effectiveness of this qualifying hedge instrument (both at the inception of the swap and on an ongoing basis) in offsetting changes in cash flows of the hedged transaction. The fair value of the interest rate swap is calculated as described in Note 5, “Fair Value Measurements” taking into consideration current interest rates and the current creditworthiness of the counterparties or the Company, as applicable.

As a result of this swap, the Company pays at a fixed rate and receives payment at a variable rate. The swap effectively fixed the floating LIBOR-based interest rate to 3.755% on $350,000 of the outstanding balance under the 2005 Senior Credit Facility, with the outstanding balance subject to the swap declining over time. As of December 31, 2010 the total notional amount of the Company’s interest rate swap agreement is $100,000. The interest rate swap expires on May 31, 2011. The Company will select the LIBOR-based rate on the hedged portion of the 2005 Senior Credit Facility during the term of the swap. The effective portion of the change in value of the swap is reflected as a component of comprehensive income and recognized as Interest expense, net as payments are paid or accrued. The remaining gain or loss in excess of the cumulative change in the present value of the future cash flows of the hedged item, if any (i.e., the ineffective portion) or hedge components excluded from the assessment of effectiveness are recognized as Interest expense, net during the current period.

Within the next 12 months, the Company expects to reclassify $1,430 of deferred losses on derivative instruments from Accumulated OCL to earnings due to the payment of variable interest associated with the 2005 Senior Credit Facility.

Foreign Currency Exposures

The Company is exposed to foreign currency risk related to intercompany debt and associated interest payments. To manage the risk associated with fluctuations in foreign currencies, the Company enters into foreign currency forward contracts. The Company does not designate any of these foreign currency forward contracts as hedging instruments, however, the Company considers the contracts as economic hedges. Accordingly, changes in the fair value of these instruments effect earnings during the current period. These foreign currency forward contracts protect against the reduction in value of forecasted foreign currency cash flows resulting from payments in foreign currencies. The fair value of foreign currency agreements are estimated as described in Note 5, “Fair Value Measurements” taking into consideration foreign currency rates and the current creditworthiness of the counterparties or the Company, as applicable.

As of December 31, 2010, the Company had foreign currency forward contracts with expiration dates ranging from January 7, 2011 through May 26, 2011. The changes in fair value of these foreign currency hedges are included as a component of Other income (expense), net. As of December 31, 2010 the Company had the following outstanding foreign currency forward contracts:

Foreign Currency	Currency Denomination
Great Britain Pound	£	1,330
Japanese Yen	¥	572,632
Swedish Krona	kr.	33,627
Norwegian Krone	kr.	6,140
Australian Dollar	$	3,869
New Zealand Dollar	$	2,573
Singapore Dollar	$	577
United States Dollar	$	10,410

As of December 31, 2010 and 2009, the fair value of the Company’s derivative instruments were recorded as follows:

	Liability Derivatives
	December 31, 2010			December 31, 2009
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest rate swap	Accrued expenses and other current liabilities	$	1,430	Other non-current liabilities	$	6,865
Derivatives not designated as hedging instruments
Foreign exchange forward contracts	Accrued expenses and other current liabilities	$	676	Accrued expenses and other current liabilities	$	438
		$	2,106		$	7,303

The effect of derivative instruments on the Consolidated Statement of Income for the twelve months ended December 31, 2010 was as follows:

Derivatives Designated as Cash Flow Hedging Relationships		Amount of Gain/(Loss) Recognized in Accumulated OCL on Derivative (Effective Portion)			Location of Gain/(Loss) Reclassified from Accumulated OCL into Income (Effective Portion)		Amount of Gain/(Loss) Reclassified from Accumulated OCL into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Interest rate swap		$	5,435		Interest expense, net		$	(6,642)		Interest expense, net		$	—

Derivatives Not Designated as Hedging Instruments		Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Foreign exchange forward contracts		Other (expense) income, net		$	(2,309)

For the twelve months ended December 31, 2009:

Derivatives Designated as Cash Flow Hedging Relationships		Amount of Gain/(Loss) Recognized in Accumulated OCL on Derivative (Effective Portion)			Location of Gain/(Loss) Reclassified from Accumulated OCL into Income (Effective Portion)		Amount of Gain/(Loss) Reclassified from Accumulated OCL into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing
Interest rate swap		$	4,745		Interest expense, net		$	(8,257)		Interest expense, net		$	—

Derivatives Not Designated as Hedging Instruments		Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Foreign exchange forward contracts		Other (expense) income, net		$	728

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2010
Notes to Financial Statements [Abstract]
Stockholders' Equity	(7) Stockholders’ Equity (a) Capital stock. Tempur-Pedic International has 300,000 authorized shares of common stock with $0.01 per share par value and 10,000 authorized shares of preferred stock. The holders of the common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared from time to time by the Board of Directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. Tempur-Pedic International is authorized to issue up to 10,000 shares of preferred stock, $0.01 par value per share. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of preferred stock in one or more series. Each such series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as determined by the Board of Directors, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. (b) Registration Rights. Under the terms of a registration rights agreement entered into in 2002 in connection with the Tempur Acquisition, holders of 10% of Tempur-Pedic International’s registrable securities, as defined in the Registration Rights Agreement, have the right, subject to certain conditions, to require Tempur-Pedic International to register any or all of their shares of common stock under the Securities Act of 1933, as amended (Securities Act), at the Company’s expense. The 15,313 shares of common stock sold in the initial public offering by selling stockholders and the 14,950 shares sold in the 2004 secondary offering were sold by selling stockholders who were parties to the Registration Rights Agreement. As of December 31, 2010, the Company estimates that 369 outstanding shares of registrable common stock are held by parties to the Registration Rights Agreement. Certain of these holders have demand registration rights under the registration rights agreement as described above. (c) Share Repurchase Programs. During 2010, the Company purchased 8,500 shares of the Company’s common stock for a total cost of $250,000 pursuant to authorizations made by the Company’s Board of Directors. On January 13, 2011 the Company’s Board of Directors authorized a new share repurchase up to $200,000 of the Company’s common stock. Share repurchases under this authorization may be made through open market transactions, negotiated purchases or otherwise, at times and in such amounts as management and a committee of the Board deem appropriate; these repurchases may be funded by operating cash flows and/or borrowings under our credit facility. This share repurchase program may be limited, suspended or terminated at any time without notice. (d) Dividend Program. Tempur-Pedic International’s Board of Directors declared dividends in the first three quarters of 2008 of $0.08 per common share. On October 16, 2008, the Company announced that it would suspend the payment of its quarterly cash dividend. The decision to pay a dividend in future periods will be reviewed by the Board of Directors on a periodic basis.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Other Items

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Other Items

(8) Other Items

(a) Property, plant and equipment.

Property, plant and equipment, net consisted of the following:

		December 31,
		2010			2009
Land and buildings	$	121,188		$	123,743
Machinery and equipment, furniture and fixtures, and other		208,310			202,474
Construction in progress		9,858			8,107
		339,356			334,324
Accumulated depreciation and amortization		(179,549	)		(161,827	)
	$	159,807		$	172,497

Depreciation expense for the Company was $27,999, $29,010 and $30,343 for the years ended December 31, 2010, 2009 and 2008, respectively.

(b) Accrued expenses and other current liabilities.

Accrued expenses and other current liabilities consisted of the following:

		December 31,
		2010		2009
Salary and related expenses	$	22,171	$	18,131
Accrued unrecognized tax benefits		12,035		12,544
Accrued sales and value added taxes		10,614		11,472
Warranty accrual		4,081		4,052
Sales returns		4,402		4,233
Interest rate swap		1,430		—
Other		30,736		31,020
	$	85,469	$	81,452

Accumulated other comprehensive loss consisted of the following:

	December 31,
		2010			2009
Derivative instruments accounted for as hedges, net of tax of $558 and $2,678	$	(872	)	$	(4,187	)
Foreign currency translation		(5,316	)		(3,817	)
Accumulated other comprehensive loss	$	(6,188	)	$	(8,004	)

- Definition

Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables; and discloses other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that should be disclosed in this note, or in the income statement, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions; and this label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Stock-Based Compensation

(9) Stock-based Compensation

Tempur-Pedic International has two stock-based compensation plans which provide for grants of non-qualified and incentive stock options, stock appreciation rights, restricted stock and stock unit awards, performance shares, stock grants and performance based awards to employees, non-employee directors, consultants and Company advisors. The plans under which equity awards may be granted are the 2002 Option Plan and the Amended and Restated 2003 Equity Incentive Plan, as amended, (the 2003 Plan). Tempur-Pedic International also has a stock-based compensation plan which permits eligible employees to purchase its shares at a discounted price, subject to certain guidelines set forth by its 2003 Employee Stock Purchase Plan, as amended (ESPP). It is the policy of the Company to issue stock out of Treasury shares upon issuance or exercise of share-based awards. The Company believes that awards and purchases made under these plans better align the interests of the plan participants with those of its stockholders.

The 2002 Option Plan was adopted on November 1, 2002 and provides for grants of stock options to purchase shares of common stock to employees and directors of the Company. Options granted under the 2002 Option Plan that qualify as incentive stock options, as defined by the Internal Revenue Code of 1986, as amended (the Code), must have an exercise price of not less than the fair market value of Tempur-Pedic International’s common stock at the date of grant. Options granted under the 2002 Option Plan provided for vesting terms as determined by the Board of Directors at the time of grant, which are generally based on 4 years of continuous service. Options can be exercised up to 10 years from the grant date and up to 5 years from the grant date for any stockholders who own 10% or more of the total combined voting power of all shares of stock of Tempur-Pedic International. Upon the exercise of all outstanding options under the 2002 Option Plan, Tempur-Pedic International will issue a maximum of 6,534 shares of common stock under the 2002 Option Plan, subject to certain adjustment provisions. In December 2003, the Company’s Board of Directors adopted a resolution that prohibited further grants under the 2002 Stock Option Plan.

The ESPP permits eligible employees to purchase up to certain limits, as set forth in the ESPP, of Tempur-Pedic International’s common stock annually over the course of two semi-annual offering periods at a price of no less than 85% of the price per share of Tempur-Pedic International’s common stock either at the beginning or the end of each six-month offering period, whichever is less. The Compensation Committee of the Board of Directors administers the ESPP. The Board of Directors may amend or terminate the ESPP. The ESPP is intended to comply with the requirements of Section 423 of the Code. The Company may issue a maximum of 500,000 shares of its common stock under the ESPP. Effective February 1, 2010, the Company suspended offerings under the ESPP indefinitely.

The 2003 Plan is administered by the Compensation Committee of the Board of Directors, which, together with the Board of Directors, has the exclusive authority to administer the 2003 Plan, including the power to determine eligibility to receive awards, the types and number of shares of stock subject to the awards, the price and timing of awards and the acceleration or waiver of any vesting and performance of forfeiture restrictions, in each case subject to the terms of the 2003 Plan. Any of the Company’s employees, non-employee directors, consultants and Company advisors, as determined by the Compensation Committee, may be selected to participate in the 2003 Plan. Tempur-Pedic International may issue a maximum of 11,500 shares of its common stock under the 2003 Plan.

In the first quarter of 2010, the Compensation Committee of the Board of Directors approved the terms of a Long-Term Incentive Program (LTIP), established under the 2003 Plan. For 2010, the LTIP awards consist of a mix of stock options and performance-based restricted stock units (PRSUs). Shares with respect to the PRSUs will be granted and vest following the end of the applicable performance period and achievement of applicable performance metrics as determined by the Compensation Committee of the Board of Directors.

The Company granted PRSUs during the year ended December 31, 2010. The maximum number of shares to be awarded under the PRSUs granted during the year ended December 31, 2010 will be 411 shares, and will vest, if earned, at the end of the three-year performance period ending on December 31, 2012. Actual payout under the PRSUs granted in 2010 is dependent upon the achievement of certain financial goals, based on Net sales and Earnings Before Interest and Taxes (EBIT) margin targets. The Company recognized compensation expense of $2,330 associated with the 2010 PRSUs during the year ended December 31, 2010. Based on current estimates of the performance metrics, unrecognized compensation expense with respect to the PRSUs was $5,470 as of December 31, 2010, which is expected to be recorded over the weighted average remaining life of 2.0 years. No PRSUs were granted during the years ended December 31, 2009 and 2008. A summary of Tempur-Pedic International’s unvested PRSUs as of December 31, 2010 and changes during the year ended December 31, 2010 are presented below:

	Shares	Weighted Average Grant Date Fair Value

Awards unvested at December 31, 2009	—	$	—
Granted	137		28.48
Vested	—		—
Forfeited	—		—
Awards unvested at December 31, 2010	137	$	28.48

During the year no PRSUs transferred ownership. The aggregate intrinsic value of PRSUs outstanding as of December 31, 2010 was $5,521.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. The assumptions used in the Black-Scholes pricing model for the years ended December 31, 2010, 2009 and 2008 are set forth in the following table. Expected volatility is based on the unbiased standard deviation of Tempur-Pedic International’s common stock over the option term. The expected life of the options represents the period of time that the Company expects the options granted to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option for the expected term of the instrument. The dividend yield reflects an estimate of dividend payouts over the term of the award.

	Year Ended
	December 31,
	2010		2009		2008
Expected volatility range of stock	69 – 84	%	62 – 92	%	41 – 60	%
Expected life of option, range in years	2.0 – 5.0		2.0 – 5.0		1.0 – 5.0
Risk-free interest rate range	1.0 – 2.7	%	1.0 – 2.8	%	1.5 – 3.4	%
Expected dividend yield on stock	0.0 – 1.6	%	0.0 – 5.2	%	1.4 – 4.2	%

A summary of Tempur-Pedic International’s unvested shares as of December 31, 2010 and changes during the years ended December 31, 2010 and 2009 are presented below:

	Shares		Weighted Average Grant Date Fair Value
Options unvested at December 31, 2008	3,451		$	5.66
Granted	1,739			3.06
Vested	(1,339	)		5.81
Forfeited	(137	)		7.49
Options unvested at December 31, 2009	3,714		$	4.33
Granted	198			13.95
Vested	(1,499	)		5.26
Forfeited	(18	)		5.57
Options unvested at December 31, 2010	2,395		$	4.57

A summary of stock options activity under the 2002 Option Plan and 2003 Plan is presented below:

	Shares			Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Options outstanding at December 31, 2008	5,395		$	15.50
Granted	1,739			7.52
Exercised	(154	)		10.55
Terminated	(161	)		18.95
Options outstanding at December 31, 2009	6,819		$	13.47
Granted	198			28.65
Exercised	(1,831	)		15.59
Terminated	(19	)		13.52
Options outstanding at December 31, 2010	5,167		$	13.31	7.11	138,239
Options exercisable at December 31, 2010	2,773		$	14.99	6.51	69,513

The grant date fair value of stock options is recognized as compensation expense on a straight-line basis over the requisite service period, and the expense is expected to be recognized over a weighted-average remaining period of 1.7 years as of December 31, 2010. The total value of options vested during the years ended December 31, 2010, 2009 and 2008 was $7,943, $7,910 and $6,915, respectively. For the years ended December 31, 2010, 2009 and 2008 the Company recognized $7,509, $8,513 and $7,909, respectively, of stock-based compensation expense in Selling and marketing expenses and General, administrative and other expenses related to stock options granted under the 2003 Plan. As of December 31, 2010, there was $7,217 of unearned stock-based compensation expense related to these options. The future amortization of these unearned stock-based compensation costs will be $4,584 in 2011; $2,207 in 2012; $426 in 2013.

The Company granted 188 awards during the year ended December 31, 2010 that consisted of restricted stock units (RSUs) and deferred stock units (DSUs). For the years ended December 31, 2010, 2009 and 2008, the Company recognized $1,754, $146 and $0, respectively, of stock-based compensation expense related to RSUs and DSUs. As of December 31, 2010, there was $3,590 of unrecognized compensation expense associated with the RSUs and DSUs, which is expected to be recorded over the weighted average remaining vesting period of 1.9 years. A summary of Tempur-Pedic International’s unvested RSUs and DSUs as of December 31, 2010 and changes during the years-ended December 31, 2010 and 2009 are presented below:

	Shares		Weighted Average Grant Date Fair Value
Awards unvested at December 31, 2008	—		$	—
Granted	18			14.98
Vested	(9	)		14.98
Forfeited	—			—
Awards unvested at December 31, 2009	9		$	14.98
Granted	188			28.70
Vested	(15	)		22.33
Forfeited	(1	)		28.39
Awards unvested at December 31, 2010	181		$	28.55

Cash received from options exercised under all stock-based compensation plans, including cash received from options issued from treasury shares for the years ended December 31, 2010, 2009 and 2008 was $28,551, $1,623 and $695, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Commitments and Contingencies

(10) Commitments and Contingencies

(a) Lease Commitments. The Company has various operating leases that call for annual rental payments due in equal monthly installments and a lease with a rent free occupancy period. The Company’s policy is to recognize expense for lease payment, including those with escalating provisions and rent free periods, on a straight-line basis over the lease term. Operating lease expenses were $6,330, $6,148, and $4,430 for the years ended December 31, 2010, 2009 and 2008, respectively.

Future minimum lease payments at December 31, 2010 under these non-cancelable leases are as follows:

Year Ended December 31,
2011	$	5,721
2012		4,282
2013		3,135
2014		2,485
2015		2,283
Thereafter		1,329
	$	19,235

(b) Purchase Commitments. The Company will, from time to time, enter into limited purchase commitments for the purchase of certain raw materials. Amounts committed under these programs are not significant as of December 31, 2010 and 2009.

(c) Antitrust Action. On January 5, 2007, a purported class action was filed against the Company in the United States District Court for the Northern District of Georgia, Rome Division (Jacobs v. Tempur-Pedic International, Inc. and Tempur-Pedic North America, Inc., or the Antitrust Action). The Antitrust Action alleges violations of federal antitrust law arising from the pricing of Tempur-Pedic mattress products by Tempur-Pedic North America and certain distributors. The action alleges a class of all purchasers of Tempur-Pedic mattresses in the United States since January 5, 2003, and seeks damages and injunctive relief. Count Two of the complaint was dismissed by the court on June 25, 2007, based on a motion filed by the Company. Following a decision issued by the United States Supreme Court in Leegin Creative Leather Prods., Inc. v. PSKS, Inc. on June 28, 2007, the Company filed a motion to dismiss the remaining two counts of the Antitrust Action on July 10, 2007. On December 11, 2007, that motion was granted and, as a result, judgment was entered in favor of the Company and the plaintiffs’ complaint was dismissed with prejudice. On December 21, 2007, the plaintiffs filed a “Motion to Alter or Amend Judgment,” which was fully briefed. On May 1, 2008, that motion was denied. Jacobs appealed the dismissal of their claims, and the parties argued the appeal before the United States Circuit Court for the Eleventh Circuit on December 11, 2008. The Court rendered an opinion favorable to the Company on December 2, 2010, affirming the trial court’s refusal to allow Jacobs to alter or amend its pleadings and dismissing it’s claims. Jacobs has subsequently petitioned the 11th Circuit Court of Appeals for an “en banc” review of the three judge panel’s ruling. The Company continues to strongly believe that the Antitrust Action lacks merit, and intends to defend against the claims vigorously. Based on the findings of the court to date and an assessment of the Company’s meritorious defenses, the Company believes that it is remote that it will incur a loss with respect to this matter. However, due to the inherent uncertainties of litigation, the Company cannot predict the outcome of the Antitrust Action at this time, and can give no assurance that these claims will not have a material adverse affect on the Company’s financial position or results of operation.

(d) New York Attorney General. In December 2008, the Office of the Attorney General of the State of New York, Antitrust Bureau (OAG) requested that the Company consider discontinuing its unilateral retail price policy (UPPL) in the State of New York, and informed the Company that it may bring an enforcement action against the Company under New York law if the Company chose not to do so. On March 29, 2010, the Office of the Attorney General filed suit in New York state court against the Company with respect to this matter. The complaint does not charge the Company with any violation of state or federal antitrust law; instead it claims the Company violated a 1975 New York state law which declares certain contractual provisions to be unenforceable and not actionable at law and seeks, among other things, a permanent injunction prohibiting the Company’s UPPL as well as unspecified sums for restitution and disgorgement profits. The Company responded to the complaint and also filed motions to dismiss and to obtain discovery. On September 28, 2010, the court heard various motions filed by the parties and took them under advisement. On January 14, 2011, the court denied the OAG’s petition in full and granted the Company’s motion to dismiss. The OAG has the right to appeal the court’s decision. The Company believes that its UPPL complies with state and federal law and intends to continue to vigorously defend it if the OAG appeals. No claim for damages has been received by the Company. Based on the findings of the court to date and an assessment of the Company’s meritorious defenses, the Company believes that it is remote that it will incur a loss with respect to this matter. However, due to the inherent uncertainties of litigation, the Company cannot predict the outcome of the New York Attorney General at this time, and can give no assurance that these claims will not have a material adverse affect on the Company’s financial position or results of operation.

The Company is involved in various other legal proceedings incidental to the operations of its business. The Company believes that the outcome of all such pending legal proceedings in the aggregate will not have a materially adverse affect on its business, financial condition, liquidity, or operating results.

Income Taxes

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Income Taxes

(11) Income Taxes

Provision for Income Taxes. The Company’s effective income tax provision differs from the amount calculated using the statutory U.S. federal income tax rate, principally due to the following:

	Year Ended December 31,
	2010					2009					2008
	Amount			Percentage of Income Before Taxes		Amount			Percentage of Income Before Taxes		Amount			Percentage of Income Before Taxes
Statutory U.S. federal income tax	$	80,803		35.0	%	$	44,809		35.0	%	$	37,598		35.0	%
State income taxes, net of federal benefit		4,936		2.1			2,146		1.7			2,122		2.0
Foreign tax differential		(8,689	)	(3.8	)		(4,403	)	(3.4	)		(5,724	)	(5.3	)
Change in valuation allowance		(1,493	)	(0.7	)		513		0.4			843		0.8	)
Foreign repatriation, net of Foreign tax credits		—		—			—		—			11,400		10.6
Subpart F income and Section 956		2,927		1.3			2,082		1.6			2,373		2.2
Manufacturing deduction		(3,998	)	(1.7	)		(975	)	(0.8	)		(587	)	(0.6	)
Permanent and other		(766	)	(0.3	)		(1,128	)	(0.9	)		529		0.5
Effective income tax provision	$	73,720		31.9	%	$	43,044		33.6	%	$	48,554		45.2	%

Subpart F income represents interest and royalties earned by a foreign subsidiary as well as sales made by certain foreign subsidiaries outside of their country of incorporation. Under the Code, such income is taxable to Tempur-Pedic International as if earned directly by Tempur-Pedic International.

The Company has not provided for U.S. federal, state income and foreign withholding taxes on $233,378 of undistributed earnings from non-U.S. operations as of December 31, 2010 because the Company intends to reinvest such earnings indefinitely outside of the United States. If Tempur-Pedic International were to distribute these earnings, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability.

The following sets forth the amount of pre-tax income attributable to each of the Company’s operating segments for the years ended December 31, 2010, 2009 and 2008:

	Year Ended December 31,
	2010		2009		2008
Pre-tax income
North America	$	137,697	$	49,703	$	20,715
International		93,168		78,334		86,707
Consolidated	$	230,865	$	128,037	$	107,422

U.S. GAAP prescribes a recognition threshold and measurement attribute for the accounting and financial statement disclosure of tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step requires the Company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. The second step requires the Company to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the largest amount of benefit that has a greater than 50-percent likelihood of being realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2008	$	11,012
Additions based on tax positions related to 2009		776
Additions for tax positions of prior years		3,430
Reductions for tax positions as a result of a lapse of applicable statute of limitations		(608	)
Settlements of uncertain tax positions with tax authorities		(2,066	)
Balance as of December 31, 2009	$	12,544
Additions based on tax positions related to 2010		531
Additions for tax positions of prior years		825
Reductions for tax positions as a result of a lapse of applicable statute of limitations		(318	)
Settlements of uncertain tax positions with tax authorities		(1,547	)
Balance as of December 31, 2010	$	12,035

The entire amount of unrecognized tax benefits would impact the effective income tax rate if recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. During the years ended December 31, 2010, 2009 and 2008, the Company recognized approximately $838, $903 and $881 in interest and penalties, respectively in income tax expense. The Company had approximately $3,075 and $1,850 of accrued interest and penalties at December 31, 2010 and 2009, respectively.

During the fourth quarter of 2007 the Company received an income tax assessment from the Danish Tax Authority with respect to the 2001, 2002 and 2003 tax years and an assessment with respect to the 2004 tax year during the third quarter of 2010. The tax assessments relate to the royalty paid by one of Tempur-Pedic International’s U.S. subsidiaries to a Danish subsidiary and the position taken by the Danish Tax Authority could apply to subsequent years. The total tax assessment is approximately $69,300 including interest and penalties. In the first quarter of 2008 and the third quarter of 2010, the Company filed timely complaints with the Danish National Tax Tribunal denying the tax assessments. The National Tax Tribunal formally agreed to place the Danish tax litigation on hold pending the outcome of a Bilateral Advance Pricing Agreement (Bilateral APA) between the United States and the Danish Tax Authority. A Bilateral APA involves an agreement between the Internal Revenue Service (IRS) and the taxpayer, as well as a negotiated agreement with one or more foreign competent authorities under applicable income tax treaties. During the third quarter of 2008 the Company filed the Bilateral APA with the IRS and the Danish Tax Authority. The IRS began analyzing the Bilateral APA in the first quarter of 2009 and completed their review during the fourth quarter of 2010. The Company believes it has meritorious defenses to the proposed adjustments and will oppose the assessments in the Danish courts, as necessary. It is reasonably possible the amount of unrecognized tax benefits may change in the next twelve months. An estimate of the amount of such change cannot be made at this time.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to tax examinations by tax authorities in the U.S. for periods prior to 2007, U.S. state and local municipalities for periods prior to 2006, and in non-U.S. jurisdictions for periods prior to 2003.

Additionally, the Company is currently under examination by various tax authorities around the world. The Company anticipates it is reasonably possible an increase or decrease in the amount of unrecognized tax benefits could be made in the next twelve months as a result of the statute of limitations expiring and/or the examinations being concluded on these returns. However, the Company does not presently anticipate that any increase or decrease in unrecognized tax benefits will be material to the consolidated financial statements.

The Company’s foreign net operating losses (NOLs) were $31,712 and $31,313 as of December 31, 2010 and 2009, respectively. These NOLs expire at various dates through 2020. The Company has established a valuation allowance for net operating loss carryforwards and certain other deferred tax assets related to certain foreign operations. Management believes that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of these foreign NOLs and certain other timing differences related to some of its foreign operations. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income, management believes it is more likely than not the Company will realize the benefits of the deferred tax assets, other than those related to some of its foreign operations as discussed above. However, there can be no assurance that such assets will be realized if circumstances change.

The Income tax provision includes federal, state, and foreign income taxes currently payable and those deferred or prepaid because of temporary differences between financial statement and tax bases of assets and liabilities. The Company records income taxes under the liability method. Under this method, deferred income taxes are recognized for the estimated future tax effects of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws.

The Income tax provision consisted of the following:

	Year Ended December 31,
	2010			2009			2008
Current provision
Federal	$	40,901		$	27,666		$	20,029
State		7,053			4,144			3,518
Foreign		25,266			21,044			22,584
Total current		73,220			52,854			46,131
Deferred provision
Federal		2,076			(9,357	)		1,844
State		285			(738	)		(124	)
Foreign		(1,861	)		285			703
Total deferred		500			(9,810	)		2,423
Total Income tax provision	$	73,720		$	43,044		$	48,554

The net deferred tax assets and liabilities recognized in the Consolidated Balance Sheets consisted of the following:

		December 31,
		2010			2009
Deferred tax assets:
Inventories	$	6,064		$	6,732
Net operating losses		9,932			9,742
Property, plant and equipment		3,231			6,093
Accrued expenses and other		17,635			16,895

Total deferred tax assets		36,862			39,462
Valuation allowances		(8,816	)		(9,773	)

Total net deferred tax assets		28,046			29,689

Deferred tax liabilities:
Property, plant and equipment		(11,943	)		(11,810	)
Intangible assets		(24,596	)		(23,987	)
Accrued expenses and other		(5,814	)		(3,346	)

Total deferred tax liabilities		(42,353	)		(39,143	)

Net deferred tax liabilities	$	(14,307	)	$	(9,454	)

Business Segment Information

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Business Segment Information

(15) Business Segment Information

The Company operates in two business segments: North America and International. These reportable segments are strategic business units that are managed separately based on the fundamental differences in their operations. The North American segment consists of the two U.S. manufacturing facilities and our North American distribution subsidiaries. The International segment consists of the manufacturing facility in Denmark, whose customers include all of the distribution subsidiaries and third party distributors outside the North American segment. The Company evaluates segment performance based on Net sales and Operating income.

The following table summarizes Total assets by segment:

	December 31,		December 31,
	2010		2009
North America	$	576,139	$	481,942
International		338,685		274,112
Inter-segment eliminations		(198,821)		(112,675)
	$	716,003	$	643,379

The following table summarizes segment information:

		Year Ended December 31,
		2010			2009			2008
Net sales from external customers:
North America
Mattresses	$	539,199		$	366,925		$	412,295
Pillows		65,728			48,814			50,772
Other		167,099			109,585			107,637
	$	772,026		$	525,324		$	570,704
International
Mattresses	$	196,400		$	183,022		$	219,013
Pillows		64,839			58,718			67,128
Other		72,156			64,092			70,973
	$	333,395		$	305,832		$	357,114
	$	1,105,421		$	831,156		$	927,818

Inter-segment sales:
North America	$	357		$	—		$	—
International		2,397			2,502			3,097
Inter-segment eliminations		(2,754	)		(2,502	)		(3,097	)
	$	—		$	—		$	—

Gross Profit:
North America	$	358,306		$	222,572		$	207,659
International		197,121			171,170			193,298
	$	555,427		$	393,742		$	400,957
Operating income:
North America	$	152,833		$	64,487		$	47,238
International		93,069			80,458			86,626
	$	245,902		$	144,945		$	133,864

Depreciation and amortization (including stock-based compensation amortization):
North America	$	34,881		$	30,331		$	30,267
International		9,088			9,882			10,530
	$	43,969		$	40,213		$	40,797
Capital expenditures:
North America	$	11,038		$	8,067		$	6,733
International		7,103			6,236			3,761
	$	18,141		$	14,303		$	10,494

Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2010

Notes to Financial Statements [Abstract]

Quarterly Financial Data (unaudited)

(16) Quarterly Financial Data (unaudited)

The Company’s quarterly operating results fluctuate as a result of seasonal variations in the Company’s business.

Quarterly results of operations for the years ended December 31, 2010 and 2009 are summarized below:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2010
Net sales	$	253,889	$	263,044	$	295,785	$	292,703
Gross profit		124,809		128,041		150,754		151,823
Operating income		52,290		53,850		68,154		71,608
Net income		33,148		33,506		44,198		46,292
Basic earnings per common share	$	0.45	$	0.47	$	0.64	$	0.68
Diluted earnings per common share	$	0.44	$	0.46	$	0.62	$	0.66
2009
Net sales	$	177,104	$	185,176	$	224,082	$	244,794
Gross profit		81,861		86,331		106,709		118,841
Operating income		25,881		29,162		42,676		47,226
Net income		13,338		16,857		25,684		29,114
Basic earnings per common share	$	0.18	$	0.23	$	0.34	$	0.39
Diluted earnings per common share	$	0.18	$	0.22	$	0.34	$	0.38

The sum of the quarterly earnings per common share amounts may not equal the annual amount reported because per share amounts are computed independently for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. The Company’s quarterly operating results fluctuate as a result of seasonal variations in the Company’s business.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Entity Information (USD $)	12 Months Ended
Entity Information (USD $)	Dec. 31, 2010	Jan. 27, 2011	Jun. 30, 2010
Entity Registrant Name	TEMPUR PEDIC INTERNATIONAL INC
Entity Central Index Key	0001206264
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,011,235,607
Entity Common Stock, Shares Outstanding		68,779,701
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statements of Stockholders' Equity [Abstract]
Derivative instruments accounted for as hedges, tax effect	$ 2,120	$ 1,851	$ 4,528

Major Customers	12 Months Ended
Major Customers	Dec. 31, 2010
Notes to Financial Statements [Abstract]
Major Customers	(12) Major Customers The top five customers in the applicable period accounted for approximately 20%, 19% and 19% of the Company’s Net sales for the years ended December 31, 2010, 2009 and 2008, respectively. The top five customers in the applicable period also accounted for approximately 21% and 25% of accounts receivable as of December 31, 2010 and 2009, respectively.

Benefit Plan	12 Months Ended
Benefit Plan	Dec. 31, 2010
Notes to Financial Statements [Abstract]
Benefit Plan	(13) Benefit Plan A subsidiary of the Company has a defined contribution plan (the Plan) whereby eligible employees may contribute up to 15% of their pay subject to certain limitations as defined by the Plan. Employees are eligible to participate in the Plan after 90 days and are eligible to receive matching contributions upon one year of employment with the Company. The Plan provides a 100% match of the first 3% and 50% of the next 2% of eligible employee contributions. All matching contributions vest immediately. The Company incurred $1,123, $1,064 and $1,084 of expenses associated with the Plan for the years ended December 31, 2010, 2009 and 2008, respectively.

Document Information	12 Months Ended
Document Information	Dec. 31, 2010
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010