v3.26.1
Business Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
 
The Company operates in three segments: Mattress Firm, Tempur Sealy North America and Tempur Sealy International. These segments are strategic business units that are managed separately. The Mattress Firm segment consists of retail stores and distribution centers located in the U.S. The Tempur Sealy North America segment consists of manufacturing, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico (other than Mattress Firm retail and distribution locations). The Tempur Sealy International segment consists of manufacturing, distribution and retail subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). The Company evaluates segment performance based on net sales, gross profit and operating income.

The Company's Tempur Sealy North America and Tempur Sealy International segment assets include investments in subsidiaries that are appropriately eliminated in the Company's accompanying Condensed Consolidated Financial Statements. The remaining inter-segment balance sheet eliminations are comprised of intercompany accounts receivable and payable. Inter-segment sales are made primarily at prices that approximate market-based selling prices.
The following table summarizes total assets by segment:
(in millions)June 30, 2026December 31, 2025
Mattress Firm$8,128.2 $7,929.7 
Tempur Sealy North America6,263.4 5,717.9 
Tempur Sealy International1,463.5 1,542.3 
Corporate3,087.7 2,588.7 
Inter-segment eliminations(7,331.8)(6,177.9)
Total assets$11,611.0 $11,600.7 

 The following table summarizes property, plant and equipment, net, by segment:
(in millions)June 30, 2026December 31, 2025
Mattress Firm$300.6 $270.7 
Tempur Sealy North America573.5 609.9 
Tempur Sealy International106.2 110.8 
Corporate29.4 27.8 
Total property, plant and equipment, net$1,009.7 $1,019.2 
     
The following table summarizes operating lease right-of-use assets by segment:
(in millions)June 30, 2026December 31, 2025
Mattress Firm$1,363.6 $1,344.9 
Tempur Sealy North America309.4 315.2 
Tempur Sealy International218.4 215.9 
Corporate2.1 2.8 
Total operating lease right-of-use assets$1,893.5 $1,878.8 
The following table summarizes segment information for the three months ended June 30, 2026:
(in millions)Mattress FirmTempur Sealy North AmericaTempur Sealy InternationalCorporateEliminationsConsolidated
Net sales$922.2 $601.8 $299.5 $— $— $1,823.5 
Inter-segment sales3.5 294.1 0.1 — (297.7)— 
Total net sales and inter-segment sales$925.7 $895.9 $299.6 $— $(297.7)$1,823.5 
Inter-segment royalty expense (income)— 8.5 (8.5)— — — 
Gross profit307.5 367.8 141.9 — — 817.2 
Advertising expenses45.8 109.8 22.0 — — 177.6 
Other selling and marketing expenses154.2 61.3 54.4 6.0 — 275.9 
General, administrative and other expenses48.1 40.8 31.0 45.2 — 165.1 
Equity income in earnings of unconsolidated affiliates— — (2.7)(0.4)— (3.1)
Operating income (loss)$59.4 $155.9 $37.2 $(50.8)$— $201.7 
Interest expense, net59.0 
Other income, net(5.1)
Income before income taxes$147.8 
Depreciation and amortization (1)
$21.0 $30.1 $8.5 $13.8 $— $73.4 
Capital expenditures34.8 11.9 6.4 1.6 — 54.7 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the three months ended June 30, 2025:
(in millions)Mattress FirmTempur Sealy North AmericaTempur Sealy InternationalCorporateEliminationsConsolidated
Net sales$948.8 $638.4 $293.6 $— $— $1,880.8 
Inter-segment sales— 263.5 0.1 — (263.6)— 
Total net sales and inter-segment sales$948.8 $901.9 $293.7 $— $(263.6)$1,880.8 
Inter-segment royalty expense (income)— 11.1 (11.1)— — — 
Gross profit337.4 348.2 141.6 — — 827.2 
Advertising expenses62.1 103.3 24.1 — — 189.5 
Other selling and marketing expenses151.8 64.0 50.9 4.3 — 271.0 
General, administrative and other expenses56.2 41.0 29.8 48.9 — 175.9 
Loss on disposal of business4.1 9.8 — — — 13.9 
Equity income in earnings of unconsolidated affiliates— — (3.0)— — (3.0)
Operating income (loss)$63.2 $130.1 $39.8 $(53.2)$— $179.9 
Interest expense, net72.5 
Other expense, net4.7 
Income before income taxes$102.7 
Depreciation and amortization (1)
$17.9 $30.2 $7.7 $12.8 $— $68.6 
Capital expenditures23.6 3.3 7.9 1.9 — 36.7 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the six months ended June 30, 2026:
(in millions)Mattress FirmTempur Sealy North AmericaTempur Sealy InternationalCorporateEliminationsConsolidated
Net sales$1,808.1 $1,165.3 $651.6 $— $— $3,625.0 
Inter-segment sales6.3 593.4 0.2 — (599.9)— 
Total net sales and inter-segment sales$1,814.4 $1,758.7 $651.8 $— $(599.9)$3,625.0 
Inter-segment royalty expense (income)— 17.2 (17.2)— — — 
Gross profit580.4 694.2 319.5 — — 1,594.1 
Advertising expenses76.7 201.4 49.9 — — 328.0 
Other selling and marketing expenses308.1 123.3 110.5 12.1 — 554.0 
General, administrative and other expenses102.8 81.9 64.8 82.5 — 332.0 
Equity income in earnings of unconsolidated affiliates— — (7.8)(0.9)— (8.7)
Operating income (loss)$92.8 $287.6 $102.1 $(93.7)$— $388.8 
Interest expense, net119.0 
Other income, net(15.3)
Income before income taxes$285.1 
Depreciation and amortization (1)
$44.5 $60.2 $17.1 $24.1 $— $145.9 
Capital expenditures82.1 19.5 11.9 1.7 — 115.2 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the six months ended June 30, 2025:
(in millions)Mattress FirmTempur Sealy North AmericaTempur Sealy InternationalCorporateEliminationsConsolidated
Net sales$1,542.5 $1,344.6 $598.4 $— $— $3,485.5 
Inter-segment sales— 393.6 0.3 — (393.9)— 
Total net sales and inter-segment sales1,542.5 1,738.2 598.7 — (393.9)3,485.5 
Inter-segment royalty expense (income)— 17.3 (17.3)— — — 
Gross profit528.6 588.2 290.9 — — 1,407.7 
Advertising expenses95.7 186.9 49.8 — — 332.4 
Other selling and marketing expenses253.3 132.0 97.5 7.9 — 490.7 
General, administrative and other expenses105.5 89.1 60.5 130.3 — 385.4 
Loss on disposal of business4.1 9.8 — — — 13.9 
Equity income in earnings of unconsolidated affiliates— — (7.8)— — (7.8)
Operating income (loss)$70.0 $170.4 $90.9 $(138.2)$— $193.1 
Interest expense, net133.8 
Other expense, net5.9 
Income before income taxes$53.4 
Depreciation and amortization (1)
$34.6 $61.0 $15.1 $24.0 $— $134.7 
Capital expenditures32.8 11.3 14.0 2.6 — 60.7 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes property, plant and equipment, net by geographic region:
(in millions)
June 30, 2026December 31, 2025
United States$884.9 $889.3 
All other124.8 129.9 
Total property, plant and equipment, net
$1,009.7 $1,019.2 

The following table summarizes operating lease right-of-use assets by geographic region:
(in millions)June 30, 2026December 31, 2025
United States$1,666.6 $1,653.1 
All other226.9 225.7 
Total operating lease right-of-use assets$1,893.5 $1,878.8