Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31922 | |
Entity Registrant Name | TEMPUR SEALY INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-1022198 | |
Entity Address, Address Line One | 1000 Tempur Way | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40511 | |
City Area Code | 800 | |
Local Phone Number | 878-8889 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | TPX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 196,496,823 | |
Entity Central Index Key | 0001206264 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,169.1 | $ 665.2 | $ 2,212.9 | $ 1,487.6 |
Cost of sales | 650.9 | 399.3 | 1,235.8 | 864.6 |
Gross profit | 518.2 | 265.9 | 977.1 | 623 |
Selling and marketing expenses | 216.8 | 135.1 | 414.5 | 306.1 |
General, administrative and other expenses | 85.1 | 82.4 | 164.6 | 163 |
Equity income in earnings of unconsolidated affiliates | (7) | (5) | (13.7) | (4.8) |
Operating income | 223.3 | 53.4 | 411.7 | 158.7 |
Other expense, net: | ||||
Interest expense, net | 20 | 20.6 | 32.3 | 40.9 |
Loss on extinguishment of debt | 18 | 0 | 23 | 0 |
Other (income) expense, net | (0.1) | 0.3 | (0.4) | 0.8 |
Total other expense, net | 37.9 | 20.9 | 54.9 | 41.7 |
Income from continuing operations before income taxes | 185.4 | 32.5 | 356.8 | 117 |
Income tax provision | (44.7) | (9.4) | (85.2) | (32.9) |
Income from continuing operations | 140.7 | 23.1 | 271.6 | 84.1 |
(Loss) income from discontinued operations, net of tax | (0.3) | 0.1 | (0.5) | (1.1) |
Net income before non-controlling interests | 140.4 | 23.2 | 271.1 | 83 |
Less: Net (loss) income attributable to non-controlling interests | (0.4) | 0.2 | (0.2) | 0.3 |
Net income attributable to Tempur Sealy International, Inc. | $ 140.8 | $ 23 | $ 271.3 | $ 82.7 |
Basic | ||||
Earnings per share for continuing operations (in dollars per share) | $ 0.72 | $ 0.11 | $ 1.36 | $ 0.39 |
Loss per share for discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Earnings per share (in dollars per share) | 0.72 | 0.11 | 1.36 | 0.39 |
Diluted | ||||
Earnings per share for continuing operations (in dollars per share) | 0.69 | 0.11 | 1.32 | 0.40 |
Loss per share for discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Earnings per share (in dollars per share) | $ 0.69 | $ 0.11 | $ 1.32 | $ 0.39 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 197 | 206.4 | 200.4 | 210 |
Diluted (in shares) | 204.1 | 208 | 204.9 | 212 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before non-controlling interests | $ 140.4 | $ 23.2 | $ 271.1 | $ 83 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 6.7 | 10.7 | (4.1) | (12.3) |
Other comprehensive income (loss), net of tax | 6.7 | 10.7 | (4.1) | (12.3) |
Comprehensive income | 147.1 | 33.9 | 267 | 70.7 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (0.4) | 0.2 | (0.2) | 0.3 |
Comprehensive income attributable to Tempur Sealy International, Inc. | $ 147.5 | $ 33.7 | $ 267.2 | $ 70.4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 58.1 | $ 65 |
Accounts receivable, net | 462.5 | 383.7 |
Inventories | 324.2 | 312.1 |
Prepaid expenses and other current assets | 80.9 | 207.6 |
Total Current Assets | 925.7 | 968.4 |
Property, plant and equipment, net | 518.2 | 507.9 |
Goodwill | 767 | 766.3 |
Other intangible assets, net | 623.7 | 630.1 |
Operating lease right-of-use assets | 325.4 | 304.3 |
Deferred income taxes | 14.9 | 13.5 |
Other non-current assets | 102.7 | 118.1 |
Total Assets | 3,277.6 | 3,308.6 |
Current Liabilities: | ||
Accounts payable | 346.7 | 324.1 |
Accrued expenses and other current liabilities | 451.9 | 585.1 |
Current portion of long-term debt | 36.4 | 43.9 |
Income taxes payable | 23.3 | 21.7 |
Total Current Liabilities | 858.3 | 974.8 |
Long-term debt, net | 1,473.2 | 1,323 |
Long-term operating lease obligations | 295.1 | 275.1 |
Deferred income taxes | 100.4 | 90.4 |
Other non-current liabilities | 140.5 | 131.8 |
Total Liabilities | 2,867.5 | 2,795.1 |
Redeemable non-controlling interest | 8.5 | 8.9 |
Total Stockholders' Equity | 401.6 | 504.6 |
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity | $ 3,277.6 | $ 3,308.6 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period Of Adoption, Adjustment | Non-controlling Interest in Subsidiaries |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 283.8 | 75.1 | ||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 360.4 | $ (6.5) | $ 2.8 | $ (1,832.8) | $ 573.9 | $ 1,703.3 | $ (6.5) | $ (87.7) | $ 0.9 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 82.7 | 82.7 | ||||||||
Net (loss) income attributable to non-controlling interests | 0.3 | 0.3 | ||||||||
Dividend paid to non-controlling interest in subsidiary | (0.1) | (0.1) | ||||||||
Foreign currency adjustments, net of tax | (12.3) | (12.3) | ||||||||
Exercise of stock options | 1.5 | $ 0.3 | 1.2 | |||||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (0.4) | |||||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 5.7 | (5.7) | |||||||
Treasury stock repurchased (in shares) | 2.6 | |||||||||
Treasury stock repurchased | (187.5) | $ (187.5) | ||||||||
Treasury stock repurchased - PRSU/RSU releases (in shares) | 0.1 | |||||||||
Treasury stock repurchased - PRSU/RSU releases | (12) | $ (12) | ||||||||
Amortization of unearned stock-based compensation | 14.8 | 14.8 | ||||||||
Balance at ending of period (in shares) at Jun. 30, 2020 | 283.8 | 77.4 | ||||||||
Balance at end of period at Jun. 30, 2020 | 241.3 | $ 2.8 | $ (2,026.3) | 584.2 | 1,779.5 | (100) | 1.1 | |||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2019 | 0 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Acquisition of non-controlling interest in subsidiary | 8.4 | |||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2020 | 8.4 | |||||||||
Balance at beginning of period (in shares) at Mar. 31, 2020 | 283.8 | 77.4 | ||||||||
Balance at beginning of period at Mar. 31, 2020 | 200 | $ 2.8 | $ (2,026.5) | 576.9 | 1,756.5 | (110.7) | 1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 23 | 23 | ||||||||
Net (loss) income attributable to non-controlling interests | 0.2 | 0.2 | ||||||||
Dividend paid to non-controlling interest in subsidiary | (0.1) | (0.1) | ||||||||
Foreign currency adjustments, net of tax | 10.7 | 10.7 | ||||||||
Exercise of stock options | 0.2 | 0.2 | ||||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | 0.4 | (0.4) | |||||||
Treasury stock repurchased - PRSU/RSU releases | (0.2) | $ (0.2) | ||||||||
Amortization of unearned stock-based compensation | 7.5 | 7.5 | ||||||||
Balance at ending of period (in shares) at Jun. 30, 2020 | 283.8 | 77.4 | ||||||||
Balance at end of period at Jun. 30, 2020 | 241.3 | $ 2.8 | $ (2,026.3) | 584.2 | 1,779.5 | (100) | 1.1 | |||
Redeemable noncontrolling interest, beginning balance at Mar. 31, 2020 | 8.4 | |||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2020 | 8.4 | |||||||||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 283.8 | 78.9 | ||||||||
Balance at beginning of period at Dec. 31, 2020 | 504.6 | $ 2.8 | $ (2,096.8) | 617.5 | 2,045.6 | (65.5) | 1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 271.3 | 271.3 | ||||||||
Net (loss) income attributable to non-controlling interests | 0.2 | 0.2 | ||||||||
Purchase of remaining interest in subsidiary | (4.6) | (3.4) | (1.2) | |||||||
Foreign currency adjustments, net of tax | (4.1) | (4.1) | ||||||||
Exercise of stock options (in shares) | (0.5) | |||||||||
Exercise of stock options | 8.5 | $ 14.3 | (5.8) | |||||||
Dividends declared on common stock | (29) | (29) | ||||||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (1.6) | |||||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 41.4 | (41.4) | |||||||
Treasury stock repurchased (in shares) | 10 | |||||||||
Treasury stock repurchased | (361.4) | $ (361.4) | ||||||||
Treasury stock repurchased - PRSU/RSU releases (in shares) | 0.5 | |||||||||
Treasury stock repurchased - PRSU/RSU releases | (14.1) | $ (14.1) | ||||||||
Amortization of unearned stock-based compensation | 30.2 | 30.2 | ||||||||
Balance at ending of period (in shares) at Jun. 30, 2021 | 283.8 | 87.3 | ||||||||
Balance at end of period at Jun. 30, 2021 | 401.6 | $ 2.8 | $ (2,416.6) | 597.1 | 2,287.9 | (69.6) | 0 | |||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2020 | 8.9 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net (loss) income attributable to non-controlling interests | (0.4) | |||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2021 | 8.5 | |||||||||
Balance at beginning of period (in shares) at Mar. 31, 2021 | 283.8 | 85.9 | ||||||||
Balance at beginning of period at Mar. 31, 2021 | 318.3 | $ 2.8 | $ (2,360.7) | 590 | 2,161.3 | (76.3) | 1.2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 140.8 | 140.8 | ||||||||
Purchase of remaining interest in subsidiary | (4.6) | (3.4) | (1.2) | |||||||
Foreign currency adjustments, net of tax | 6.7 | 6.7 | ||||||||
Exercise of stock options (in shares) | (0.1) | |||||||||
Exercise of stock options | 1.9 | $ 3.4 | (1.5) | |||||||
Dividends declared on common stock | (14.2) | (14.2) | ||||||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (0.1) | |||||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 3.1 | (3.1) | |||||||
Treasury stock repurchased (in shares) | 1.6 | |||||||||
Treasury stock repurchased | (61.6) | $ (61.6) | ||||||||
Treasury stock repurchased - PRSU/RSU releases | (0.8) | $ (0.8) | ||||||||
Amortization of unearned stock-based compensation | 15.1 | 15.1 | ||||||||
Balance at ending of period (in shares) at Jun. 30, 2021 | 283.8 | 87.3 | ||||||||
Balance at end of period at Jun. 30, 2021 | 401.6 | $ 2.8 | $ (2,416.6) | $ 597.1 | $ 2,287.9 | $ (69.6) | $ 0 | |||
Redeemable noncontrolling interest, beginning balance at Mar. 31, 2021 | 8.9 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net (loss) income attributable to non-controlling interests | (0.4) | |||||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2021 | $ 8.5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Net income before non-controlling interests | $ 271.1 | $ 83 |
Loss from discontinued operations, net of tax | 0.5 | 1.1 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 53.5 | 47.5 |
Amortization of stock-based compensation | 30.2 | 14.8 |
Amortization of deferred financing costs | 1.2 | 1.7 |
Bad debt expense | 2.9 | 26.5 |
Deferred income taxes | 8 | (6.6) |
Dividends received from unconsolidated affiliates | 5.3 | 1.5 |
Equity income in earnings of unconsolidated affiliates | (13.7) | (4.8) |
Loss on extinguishment of debt | 3 | 0 |
Foreign currency adjustments and other | 0.6 | 1 |
Changes in operating assets and liabilities, net of effect of business acquisitions | (49.6) | 4.7 |
Net cash provided by operating activities from continuing operations | 313 | 170.4 |
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Purchases of property, plant and equipment | (52.6) | (49.4) |
Acquisitions, net of cash acquired | (5.6) | (37.9) |
Other | 0.3 | 0.1 |
Net cash used in investing activities from continuing operations | (57.9) | (87.2) |
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Proceeds from borrowings under long-term debt obligations | 1,936.1 | 1,073.9 |
Repayments of borrowings under long-term debt obligations | (1,782.3) | (866.9) |
Proceeds from exercise of stock options | 8.5 | 1.5 |
Treasury stock repurchased | (374.4) | (199.5) |
Dividends paid | (28.1) | 0 |
Payments of deferred financing costs | (14.2) | (1.6) |
Repayments of finance lease obligations and other | (6.1) | (6) |
Net cash (used in) provided by financing activities from continuing operations | (260.5) | 1.4 |
Net cash (used in) provided by continuing operations | (5.4) | 84.6 |
Net operating cash flows used in discontinued operations | (0.7) | (1) |
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | (1.7) |
(Decrease) increase in cash and cash equivalents | (6.9) | 81.9 |
CASH AND CASH EQUIVALENTS, beginning of period | 65 | 64.9 |
CASH AND CASH EQUIVALENTS, end of period | 58.1 | 146.8 |
Cash paid during the period for: | ||
Interest | 28.2 | 41.1 |
Income taxes, net of refunds | $ 71.9 | $ 7.2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock (in usd per share) | $ 0.07 | $ 0.07 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation and Description of Business. Tempur Sealy International, Inc., a Delaware corporation, together with its subsidiaries, is a U.S. based, multinational company. The term "Tempur Sealy International" refers to Tempur Sealy International, Inc. only, and the term "Company" refers to Tempur Sealy International, Inc. and its consolidated subsidiaries. The Company designs, manufactures and distributes bedding products, which include mattresses, foundations and adjustable bases, and other products, which include pillows and other accessories. The Company also derives income from royalties by licensing Sealy® and Stearns & Foster® brands, technology and trademarks to other manufacturers. The Company sells its products through two sales channels: Wholesale and Direct. The Company has ownership interests in United Kingdom and Asia-Pacific joint ventures to develop markets for Sealy® branded products in those regions. The Company’s ownership interest in each of these joint ventures is 50.0%. The equity method of accounting is used for these joint ventures, over which the Company has significant influence but does not have control, and consolidation is not otherwise required. The Company’s equity in the net income and losses of these investments is reported in equity income in earnings of unconsolidated affiliates in the accompanying Condensed Consolidated Statements of Income. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States ("GAAP") for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2020, included in the 2020 Annual Report filed with the Securities and Exchange Commission on February 19, 2021. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. It is the opinion of management that all necessary adjustments for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. (b) Inventories . Inventories are stated at the lower of cost and net realizable value, determined by the first-in, first-out method, and consist of the following: June 30, December 31, (in millions) 2021 2020 Finished goods $ 160.6 $ 170.2 Work-in-process 10.6 12.6 Raw materials and supplies 153.0 129.3 $ 324.2 $ 312.1 (c) Accrued Sales Returns . The Company allows product returns 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. Estimated future obligations related to these products are provided by a reduction of sales in the period in which the revenue is recognized. The Company considers the impact of recoverable salvage value on sales returns by segment in determining its estimate of future sales returns. Accrued sales returns are included in accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company had the following activity for sales returns from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 44.9 Amounts accrued 73.4 Returns charged to accrual (66.8) Balance as of June 30, 2021 $ 51.5 As of June 30, 2021 and December 31, 2020, $36.2 million and $31.6 million of accrued sales returns are included as a component of accrued expenses and other current liabilities and $15.3 million and $13.3 million of accrued sales returns are included in other non-current liabilities on the Company’s accompanying Condensed Consolidated Balance Sheets, respectively. (d) Warranties . The Company provides warranties on certain products, which vary by segment, product and brand. Estimates of warranty expenses are based primarily on historical claims experience and product testing. Estimated future obligations related to these products are charged to cost of sales in the period in which the related revenue is recognized. The Company considers the impact of recoverable salvage value on warranty costs in determining its estimate of future warranty obligations. The Company provides warranties on mattresses with varying warranty terms. Tempur-Pedic mattresses sold in the North America segment and all Sealy mattresses have warranty terms ranging from 10 to 25 years, generally non-prorated for the first 10 to 15 years and then prorated for the balance of the warranty term. Tempur-Pedic mattresses sold in the International segment have warranty terms ranging from 5 to 15 years, non-prorated for the first 5 years and then prorated on a straight-line basis for the last 10 years of the warranty term. Tempur-Pedic pillows have a warranty term of 3 years, non-prorated. The Company had the following activity for its accrued warranty expense from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 44.2 Amounts accrued 13.4 Warranties charged to accrual (11.8) Balance as of June 30, 2021 $ 45.8 As of June 30, 2021 and December 31, 2020, $21.8 million and $20.3 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $24.0 million and $23.9 million of accrued warranty expense is included in other non-current liabilities on the Company’s accompanying Condensed Consolidated Balance Sheets, respectively. (e) Allowance for Credit Losses . The allowance for credit losses is the Company’s best estimate of the amount of expected lifetime credit losses in the Company’s accounts receivable. The Company regularly reviews the adequacy of its allowance for credit losses. The Company estimates losses over the contractual life using assumptions to capture the risk of loss, even if remote, based principally on how long a receivable has been outstanding. Account balances are charged off against the allowance for credit losses after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2021, the Company's accounts receivable were substantially current. Other factors considered include historical write-off experience, current economic conditions and also factors such as customer credit, past transaction history with the customer and changes in customer payment terms. The allowance for credit losses is included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets. The Company had the following activity for its allowance for credit losses from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 71.6 Amounts accrued 2.9 Write-offs charged against the allowance (3.3) Balance as of June 30, 2021 $ 71.2 |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 890.8 $ 114.6 $ 1,005.4 $ 1,656.3 $ 230.5 $ 1,886.8 Direct 123.0 40.7 163.7 240.8 85.3 326.1 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Product Bedding $ 962.5 $ 118.9 $ 1,081.4 $ 1,792.8 $ 240.6 $ 2,033.4 Other 51.3 36.4 87.7 104.3 75.2 179.5 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Geographical region United States $ 946.3 $ — $ 946.3 $ 1,764.8 $ — $ 1,764.8 All Other 67.5 155.3 222.8 132.3 315.8 448.1 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 502.8 $ 60.9 $ 563.7 $ 1,127.5 $ 158.6 $ 1,286.1 Direct 75.8 25.7 101.5 143.4 58.1 201.5 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 North America International Consolidated North America International Consolidated Product Bedding $ 540.3 $ 65.6 $ 605.9 $ 1,195.2 $ 167.1 $ 1,362.3 Other 38.3 21.0 59.3 75.7 49.6 125.3 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 North America International Consolidated North America International Consolidated Geographical region United States $ 542.0 $ — $ 542.0 $ 1,174.5 $ — $ 1,174.5 All Other 36.6 86.6 123.2 96.4 216.7 313.1 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisition of Dreams Topco Limited On May 26, 2021, the Company entered into a share purchase agreement with Project Dream S.Ă .r.l. and certain members of the management team and Dreams Topco Limited to purchase the entire issued share capital of Dreams Topco Limited and its direct and indirect subsidiaries ("Dreams"). Dreams has developed a successful multi-channel sales strategy, with over 200 brick and mortar retail locations in the United Kingdom, an industry-leading online channel, as well as manufacturing and delivery assets. On August 2, 2021, the Company completed the acquisition of Dreams. The purchase price was approximately $475 million, less net debt and is subject to a customary working capital adjustment period. The transaction was funded using cash on hand and bank financing. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following summarizes changes to the Company’s goodwill, by segment: (in millions) North America International Consolidated Balance as of December 31, 2020 $ 610.3 $ 156.0 $ 766.3 Foreign currency translation and other 2.7 (2.0) 0.7 Balance as of June 30, 2021 $ 613.0 $ 154.0 $ 767.0 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt for the Company consists of the following: June 30, 2021 December 31, 2020 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2019 Credit Agreement: Term A Facility $ 393.1 (1) $ 409.1 (2) October 16, 2024 Revolver 95.6 (1) — (2) October 16, 2024 2029 Senior Notes 800.0 4.00% — N/A April 15, 2029 2026 Senior Notes — N/A 600.0 5.500% June 15, 2026 2023 Senior Notes — N/A 250.0 5.625% October 15, 2023 Securitized debt 160.7 (3) 33.9 (4) April 6, 2023 Finance lease obligations (5) 71.0 71.4 Various Other 3.2 5.9 Various Total debt 1,523.6 1,370.3 Less: Deferred financing costs 14.0 3.4 Total debt, net 1,509.6 1,366.9 Less: Current portion 36.4 43.9 Total long-term debt, net $ 1,473.2 $ 1,323.0 (1) Interest at LIBOR plus applicable margin of 1.250% as of June 30, 2021. (2) Interest at LIBOR plus applicable margin of 1.250% as of December 31, 2020. (3) Interest at one month LIBOR index plus 70 basis points. (4) Interest at one month LIBOR index plus 80 basis points. (5) New finance lease obligations are a non-cash financing activity. Refer to Note 6, "Leases". As of June 30, 2021, the Company was in compliance with all applicable debt covenants. 2019 Credit Agreement On October 16, 2019, the Company entered into the 2019 Credit Agreement with a syndicate of banks. The 2019 Credit Agreement provides for a $425.0 million revolving credit facility, a $425.0 million term loan facility, and an incremental facility in an aggregate amount of up to $550.0 million plus the amount of certain prepayments plus an additional unlimited amount subject to compliance with a maximum consolidated secured leverage ratio test. The 2019 Credit Agreement has a $60.0 million sub-facility for the issuance of letters of credit. On February 2, 2021, the Company entered into an amendment to the 2019 Credit Agreement. The amendment increased the revolving credit facility from $425.0 million to $725.0 million. As of June 30, 2021, total availability under the revolving credit facility was $629.3 million after borrowings of $95.6 million and a $0.1 million reduction for outstanding letters of credit. On May 26, 2021, the Company entered into an additional amendment to the 2019 Credit Agreement. The amendment provides for a $300.0 million delayed draw term loan. Once drawn, the delayed draw term loan will have the same terms and conditions as the Company's existing term loans under the 2019 Credit Agreement. On July 30, 2021 the Company drew down the full $300.0 million available under the delayed draw term loan to fund, in part, the Dreams acquisition. Securitized Debt The Company and certain of its subsidiaries are party to a securitization transaction with respect to certain accounts receivable due to the Company and certain of its subsidiaries (as amended, the "Accounts Receivable Securitization"). On April 6, 2021, the Company and certain of its subsidiaries entered into a new amendment to the Accounts Receivable Securitization. The amendment, among other things, extended the maturity date of the Accounts Receivable Securitization to April 6, 2023 and increased the overall limit from $120.0 million to $200.0 million. While subject to a $200.0 million overall limit, the availability of revolving loans varies over the course of the year based on the seasonality of the Company's accounts receivable. As of June 30, 2021, the Company had fully drawn down the Accounts Receivable Securitization with borrowings of $160.7 million. 2029 Senior Notes On March 25, 2021, Tempur Sealy International issued $800.0 million in aggregate principal amount of 4.00% senior notes due 2029 (the "2029 Senior Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The 2029 Senior Notes were issued pursuant to an indenture, dated as of March 25, 2021 (the "2029 Indenture"), among Tempur Sealy International, certain subsidiaries of Tempur Sealy International as guarantors (the "Guarantors"), and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2029 Senior Notes are general unsecured senior obligations of Tempur Sealy International and are guaranteed on a senior unsecured basis by the Guarantors. The 2029 Senior Notes mature on April 15, 2029, and interest is payable semi-annually in arrears on each April 15 and October 15, beginning on October 15, 2021. Tempur Sealy International has the option to redeem all or a portion of the 2029 Senior Notes at any time on or after April 15, 2024. The initial redemption price is 102.00% of the principal amount, plus accrued and unpaid interest, if any. The redemption price will decline each year after 2024 until it becomes 100.0% of the principal amount beginning on April 15, 2026. In addition, Tempur Sealy International has the option at any time prior to April 15, 2024 to redeem some or all of the 2029 Senior Notes at 100.0% of the original principal amount plus a “make-whole” premium and accrued and unpaid interest, if any. Tempur Sealy International may also redeem up to 40.0% of the 2029 Senior Notes prior to April 15, 2024, under certain circumstances with the net cash proceeds from certain equity offerings, at 104.00% of the principal amount plus accrued and unpaid interest, if any. Tempur Sealy International may make such redemptions as described in the preceding sentence only if, after any such redemption, at least 60.0% of the original aggregate principal amount of the 2029 Senior Notes issued remains outstanding. The 2029 Indenture restricts the ability of Tempur Sealy International and the ability of certain of its subsidiaries to, among other things: (i) incur, directly or indirectly, debt; (ii) make, directly or indirectly, certain investments and restricted payments; (iii) incur or suffer to exist, directly or indirectly, liens on its properties or assets; (iv) sell or otherwise dispose of, directly or indirectly, assets; (v) create or otherwise cause or suffer to exist any consensual restriction on the right of certain of the subsidiaries of Tempur Sealy International to pay dividends or make any other distributions on or in respect of their capital stock; and (vi) enter into transactions with affiliates. These covenants are subject to a number of exceptions and qualifications. As a result of the issuance of the 2029 Senior Notes, $11.4 million of deferred financing costs were capitalized in the first quarter of 2021 and will be amortized as interest expense over the respective debt instrument period, 8 years, using the effective interest method. 2026 Senior Notes On June 15, 2021, the Company redeemed its $600.0 million issued and outstanding 2026 Senior Notes, in full, at 102.75% of their principal amount, plus the accrued and unpaid interest. The Company used net proceeds from the 2029 Senior Notes primarily to fund the redemption. As a result of the Company's redemption of the 2026 Senior Notes, the Company incurred $18.0 million of loss on extinguishment of debt which includes a prepayment premium of $16.5 million and the write-off of $1.5 million of unamortized deferred financing costs. Additionally, the Company incurred $5.2 million of overlapping interest expense for the final 83 day period between the issuance of the 2029 Senior Notes and redemption of the 2026 Senior Notes. 2023 Senior Notes On November 9, 2020, the Company redeemed the first $200.0 million of the issued and outstanding 2023 Senior Notes at 101.406% of the principal amount, plus the accrued and unpaid interest. During the first quarter of 2021, the Company redeemed the remaining $250.0 million of the issued and outstanding 2023 Senior Notes at 101.406% of the principal amount, plus the accrued and unpaid interest. In the first quarter of 2021, the Company recognized $5.0 million of loss on extinguishment of debt, which includes a prepayment premium of $3.5 million and the write-off of $1.5 million of unamortized deferred financing costs, associated with the redemption of the remaining amount outstanding of the 2023 Senior Notes. Fair Value of Financial Instruments Financial instruments, although not recorded at fair value on a recurring basis, include cash and cash equivalents, accounts receivable, accounts payable and the Company's debt obligations. 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 2019 Credit Agreement and the securitized debt are at variable interest rates and accordingly their carrying amounts approximate fair value. The fair value of the following material financial instruments were based on observable inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of debt instruments. The fair values of these material financial instruments are as follows: Fair Value (in millions) June 30, 2021 December 31, 2020 2023 Senior Notes $ — $ 255.1 2026 Senior Notes — 625.4 2029 Senior Notes 812.8 — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: (in millions) June 30, 2021 December 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 325.4 $ 304.3 Finance lease assets Property, plant and equipment, net 60.7 61.2 Total leased assets $ 386.1 $ 365.5 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 66.4 $ 61.0 Finance lease obligations Current portion of long-term debt 11.9 11.4 Long-term: Operating lease obligations Long-term operating lease obligations 295.1 275.1 Finance lease obligations Long-term debt, net 59.1 60.0 Total lease obligations $ 432.5 $ 407.5 The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Operating lease expense: Operating lease expense $ 21.4 $ 18.7 $ 40.8 $ 36.7 Short-term lease expense 2.8 2.5 6.7 5.7 Variable lease expense 6.3 4.4 12.7 9.7 Finance lease expense: Amortization of right-of-use assets 3.1 2.2 5.9 4.4 Interest on lease obligations 1.1 1.1 2.2 2.3 Total lease expense $ 34.7 $ 28.9 $ 68.3 $ 58.8 The following table sets forth the scheduled maturities of lease obligations as of June 30, 2021: (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 40.2 $ 8.2 $ 48.4 2022 76.6 14.5 91.1 2023 64.7 11.9 76.6 2024 53.3 9.5 62.8 2025 45.3 8.3 53.6 Thereafter 143.0 35.5 178.5 Total lease payments 423.1 87.9 511.0 Less: Interest 61.6 16.9 78.5 Present value of lease obligations $ 361.5 $ 71.0 $ 432.5 The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2021: June 30, 2021 Weighted average remaining lease term (years): Operating leases 6.73 Finance leases 7.53 Weighted average discount rate: Operating leases 4.72 % Finance leases 5.61 % The following table provides supplemental information related to the Company's Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020: Six Months Ended (in millions) June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases (a) $ 37.5 $ 33.1 Operating cash flows paid for finance leases $ 2.3 $ 2.3 Financing cash flows paid for finance leases $ 6.1 $ 4.6 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.7 $ 48.7 Right-of-use assets obtained in exchange for new finance lease obligations $ 5.4 $ 11.7 (a) Operating cash flows paid for operating leases are included within the change in other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by non-cash right-of-use asset amortization and lease liability accretion. |
Leases | Leases The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: (in millions) June 30, 2021 December 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 325.4 $ 304.3 Finance lease assets Property, plant and equipment, net 60.7 61.2 Total leased assets $ 386.1 $ 365.5 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 66.4 $ 61.0 Finance lease obligations Current portion of long-term debt 11.9 11.4 Long-term: Operating lease obligations Long-term operating lease obligations 295.1 275.1 Finance lease obligations Long-term debt, net 59.1 60.0 Total lease obligations $ 432.5 $ 407.5 The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Operating lease expense: Operating lease expense $ 21.4 $ 18.7 $ 40.8 $ 36.7 Short-term lease expense 2.8 2.5 6.7 5.7 Variable lease expense 6.3 4.4 12.7 9.7 Finance lease expense: Amortization of right-of-use assets 3.1 2.2 5.9 4.4 Interest on lease obligations 1.1 1.1 2.2 2.3 Total lease expense $ 34.7 $ 28.9 $ 68.3 $ 58.8 The following table sets forth the scheduled maturities of lease obligations as of June 30, 2021: (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 40.2 $ 8.2 $ 48.4 2022 76.6 14.5 91.1 2023 64.7 11.9 76.6 2024 53.3 9.5 62.8 2025 45.3 8.3 53.6 Thereafter 143.0 35.5 178.5 Total lease payments 423.1 87.9 511.0 Less: Interest 61.6 16.9 78.5 Present value of lease obligations $ 361.5 $ 71.0 $ 432.5 The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2021: June 30, 2021 Weighted average remaining lease term (years): Operating leases 6.73 Finance leases 7.53 Weighted average discount rate: Operating leases 4.72 % Finance leases 5.61 % The following table provides supplemental information related to the Company's Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020: Six Months Ended (in millions) June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases (a) $ 37.5 $ 33.1 Operating cash flows paid for finance leases $ 2.3 $ 2.3 Financing cash flows paid for finance leases $ 6.1 $ 4.6 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.7 $ 48.7 Right-of-use assets obtained in exchange for new finance lease obligations $ 5.4 $ 11.7 (a) Operating cash flows paid for operating leases are included within the change in other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by non-cash right-of-use asset amortization and lease liability accretion. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Treasury Stock. The Board of Directors authorized increases to the Company's share repurchase authorization of $211.4 million and $325.3 million during February and April 2021, respectively. The Company repurchased 1.6 million, under the program, for approximately $61.6 million during the three months ended June 30, 2021. The Company did not repurchase shares under the program during the three months ended June 30, 2020. The Company repurchased 10.0 million and 2.6 million shares, under the program, for approximately $361.4 million and $187.5 million during the six months ended June 30, 2021 and 2020, respectively. These amounts may differ from the repurchases of common stock amounts in the Condensed Consolidated Statements of Cash Flows due to unsettled share repurchases at the end of a period. As of June 30, 2021, the Company had approximately $376.8 million remaining under its share repurchase authorization. In addition, the Company acquired shares upon the vesting of certain restricted stock units ("RSUs") and performance restricted stock units ("PRSUs"), which were withheld to satisfy tax withholding obligations during each of the three and six months ended June 30, 2021 and 2020. The shares withheld were valued at the closing price of the stock on the New York Stock Exchange on the vesting date or first business day prior to vesting, resulting in approximately $0.8 million and $0.2 million in treasury stock acquired during the three months ended June 30, 2021 and 2020, respectively. The Company acquired approximately $14.1 million and $12.0 million in treasury stock during the six months ended June 30, 2021 and 2020, respectively. (b) AOCL . AOCL consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Foreign Currency Translation Balance at beginning of period $ (69.4) $ (105.2) $ (58.6) $ (82.2) Other comprehensive loss: Foreign currency translation adjustments (1) 6.7 10.7 (4.1) (12.3) Balance at end of period $ (62.7) $ (94.5) $ (62.7) $ (94.5) Pensions Balance at beginning of period $ (6.9) $ (5.5) $ (6.9) $ (5.5) Other comprehensive loss: Net change from period revaluations — — — 0.1 Tax expense (2) — — — (0.1) Total other comprehensive income before reclassifications, net of tax $ — $ — $ — $ — Net amount reclassified to earnings (1) — — — — Tax benefit (2) — — — — Total amount reclassified from accumulated other comprehensive loss, net of tax $ — $ — $ — $ — Total other comprehensive loss — — — — Balance at end of period $ (6.9) $ (5.5) $ (6.9) $ (5.5) (1) In 2021 and 2020, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. (2) These amounts were included in the income tax provision in the accompanying Condensed Consolidated Statements of Income. |
Other Items
Other Items | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Other Items | Other Items Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in millions) June 30, 2021 December 31, 2020 Wages and benefits $ 82.7 $ 102.5 Advertising 72.4 74.4 Operating lease obligations 66.4 61.0 Taxes 11.5 150.4 Other 218.9 196.8 $ 451.9 $ 585.1 The decrease in taxes was due to the release of certain uncertain income tax liabilities. Refer to Note 11, "Income Taxes," for additional information. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation expense for the three and six months ended June 30, 2021 and 2020 included PRSUs, non-qualified stock options, RSUs and deferred stock units ("DSUs"). A summary of the Company’s stock-based compensation expense is presented in the following table: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 PRSU expense $ 9.7 $ 0.9 $ 19.3 $ 1.2 Option expense 0.4 1.2 0.8 2.4 RSU/DSU expense 5.0 5.4 10.1 11.2 Total stock-based compensation expense $ 15.1 $ 7.5 $ 30.2 $ 14.8 The Company grants PRSUs to executive officers and certain members of management. Actual payout under the PRSUs is dependent upon the achievement of certain financial goals. During the first quarter of 2021, the Company granted PRSUs as a component of the long-term incentive plan ("2021 PRSUs"). The Company has recorded stock-based compensation expense related to the 2021 PRSUs during the three and six months ended June 30, 2021, as it was probable that the Company would achieve the specified performance target for the performance period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in various legal and administrative proceedings incidental to the operations of its business. The Company believes that the outcome of all such pending proceedings in the aggregate will not have a material adverse effect on its business, financial condition, liquidity or operating results. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended June 30, 2021 and 2020 was 24.1% and 28.9%, respectively. The Company's effective tax rate for the six months ended June 30, 2021 and 2020 was 23.9% and 28.1%. The Company's effective tax rate for the three and six months ended June 30, 2021 and 2020 differed from the U.S. federal statutory rate of 21.0% principally due to subpart F income (i.e., global intangible low-taxed income, or "GILTI," earned by the Company’s foreign subsidiaries), foreign income tax rate differentials, state and local taxes, changes in the Company’s uncertain tax positions, the excess tax deficiency (or benefit) related to stock-based compensation and certain other permanent items. The Company has been involved in a dispute with the Danish Tax Authority ("SKAT") regarding the royalty paid by a U.S. subsidiary of Tempur Sealy International to a Danish subsidiary (the "Danish Tax Matter") for tax years 2001 through current. The royalty is paid by the U.S. subsidiary for the right to utilize certain intangible assets owned by the Danish subsidiary in the U.S. production process. During the quarter ended June 30, 2021 the Company and SKAT resolved in all material respects the calculation of interest payable to SKAT related to the settlement of the Danish Tax Matters for the years 2001 through 2011 (the “Settlement Years”). This resolution resulted in SKAT refunding substantially all of the excess tax deposits it was holding for the Settlement Years (all other aspects of the settlement of the Settlement Years had previously been agreed upon). As such, the Danish Tax Matter for the Settlement Years is considered in all material respects, closed. Consequently, the tax deposits previously with SKAT were offset against the uncertain income tax liability for the Settlement Years. The uncertain income tax liabilities for the Danish Tax Matter for the Settlement Years and for the years 2012 through 2021 (the "2012 to Current Period") are reflected in the Company’s Condensed Consolidated Balance Sheet as per below: June 30, 2021 December 31, 2020 Period Balance Sheet Presentation DKK USD DKK USD Settlement Years Accrued expenses and other current liabilities — $ — 847.3 $ 139.1 2012 to Current Period Other non-current liabilities 304.8 48.6 295.0 48.4 Total 304.8 $ 48.6 1,142.3 $ 187.5 The deferred tax asset for the U.S. correlative benefit associated with the accrual of Danish tax for the 2012 to Current Period at June 30, 2021 and December 31, 2020 is approximately $11.6 million and $12.0 million, respectively. At June 30, 2021 and December 31, 2020, respectively, the Company held cash on deposit with SKAT. The deposit at June 30, 2021 and December 31, 2020 is included within the Company’s Condensed Consolidated Balance Sheet as per below: June 30, 2021 December 31, 2020 DKK USD DKK USD Prepaid expenses and other current assets — $ — 847.3 $ 139.1 Other non-current assets 220.6 35.2 333.6 54.8 Total 220.6 $ 35.2 1,180.9 $ 193.9 If the Company is not successful in resolving the Danish Tax Matter for the 2012 to Current Period or there is a change in facts and circumstances, the Company may be required to further increase its uncertain income tax position associated with this matter, or decrease its deferred tax asset, also related to this matter, which could have a material impact on the Company's reported earnings. There were no other significant changes in the Danish Tax Matter or other uncertain tax positions during the three or six months ended June 30, 2021. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Tempur Sealy International. Three Months Ended Six Months Ended June 30, June 30, (in millions, except per common share amounts) 2021 2020 2021 2020 Numerator: Income from continuing operations, net of income attributable to non-controlling interests $ 141.1 $ 22.9 $ 271.8 $ 83.8 Denominator: Denominator for basic earnings per common share-weighted average shares 197.0 206.4 200.4 210.0 Effect of dilutive securities 7.1 1.6 4.5 2.0 Denominator for diluted earnings per common share-adjusted weighted average shares 204.1 208.0 204.9 212.0 Basic earnings per common share for continuing operations $ 0.72 $ 0.11 $ 1.36 $ 0.39 Diluted earnings per common share for continuing operations $ 0.69 $ 0.11 $ 1.32 $ 0.40 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company operates in two segments: North America and International. These segments are strategic business units that are managed separately based on geography. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S., Canada and Mexico. The International segment consists of Tempur manufacturing and distribution subsidiaries, Sealy distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). Corporate operating expenses are not included in either of the segments and are presented separately as a reconciling item to consolidated results. The Company evaluates segment performance based on net sales, gross profit and operating income. The Company’s North America and International segment assets include investments in subsidiaries that are appropriately eliminated in the Company’s accompanying Condensed Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable and payable. The following table summarizes total assets by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 4,145.9 $ 3,740.3 International 481.3 639.8 Corporate 400.7 490.3 Inter-segment eliminations (1,750.3) (1,561.8) Total assets $ 3,277.6 $ 3,308.6 The following table summarizes property, plant and equipment, net, by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 425.0 $ 415.3 International 47.0 49.8 Corporate 46.2 42.8 Total property, plant and equipment, net $ 518.2 $ 507.9 The following table summarizes operating lease right-of-use assets by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 283.3 $ 256.6 International 40.6 45.7 Corporate 1.5 2.0 Total operating lease right-of-use assets $ 325.4 $ 304.3 The following table summarizes segment information for the three months ended June 30, 2021: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,013.8 $ 155.3 $ — $ — $ 1,169.1 Inter-segment sales $ 0.5 $ 0.1 $ — $ (0.6) $ — Inter-segment royalty expense (income) 2.3 (2.3) — — — Gross profit 425.4 92.8 — — 518.2 Operating income (loss) 217.4 43.4 (37.5) — 223.3 Income (loss) from continuing operations before income taxes 216.8 42.8 (74.2) — 185.4 Depreciation and amortization (1) $ 21.7 $ 3.5 $ 16.9 $ — $ 42.1 Capital expenditures 22.3 2.6 4.2 — 29.1 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the three months ended June 30, 2020: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 578.6 $ 86.6 $ — $ — $ 665.2 Inter-segment sales $ — $ 0.1 $ — $ (0.1) $ — Inter-segment royalty expense (income) 1.1 (1.1) — — — Gross profit 218.4 47.5 — — 265.9 Operating income (loss) 67.7 11.3 (25.6) — 53.4 Income (loss) from continuing operations before income taxes 66.3 9.3 (43.1) — 32.5 Depreciation and amortization (1) $ 18.7 $ 3.3 $ 9.8 $ — $ 31.8 Capital expenditures 18.3 2.9 2.0 — 23.2 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the six months ended June 30, 2021: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,897.1 $ 315.8 $ — $ — $ 2,212.9 Inter-segment sales $ 1.2 $ 0.3 $ — $ (1.5) $ — Inter-segment royalty expense (income) 4.4 (4.4) — — — Gross profit 789.3 187.8 — — 977.1 Operating income (loss) 390.8 89.6 (68.7) — 411.7 Income (loss) from continuing operations before income taxes 389.3 88.9 (121.4) — 356.8 Depreciation and amortization (1) $ 42.7 $ 7.1 $ 33.9 $ — $ 83.7 Capital expenditures 41.1 4.6 6.9 — 52.6 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the six months ended June 30, 2020: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,270.9 $ 216.7 $ — $ — $ 1,487.6 Inter-segment sales $ 0.5 $ 0.2 $ — $ (0.7) $ — Inter-segment royalty expense (income) 3.2 (3.2) — — — Gross profit 499.6 123.4 — — 623.0 Operating income (loss) 169.3 37.7 (48.3) — 158.7 Income (loss) from continuing operations before income taxes 166.4 33.3 (82.7) — 117.0 Depreciation and amortization (1) $ 36.5 $ 6.4 $ 19.4 $ — $ 62.3 Capital expenditures 39.9 5.0 4.5 — 49.4 (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, 2021 December 31, 2020 United States $ 449.8 $ 436.2 All Other 68.4 71.7 Total property, plant and equipment, net $ 518.2 $ 507.9 The following table summarizes operating lease right-of-use assets by geographic region: (in millions) June 30, 2021 December 31, 2020 United States $ 281.4 $ 255.0 All Other 44.0 49.3 Total operating lease right-of-use assets $ 325.4 $ 304.3 The following table summarizes net sales by geographic region: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 United States $ 946.3 $ 542.0 $ 1,764.8 $ 1,174.5 All Other 222.8 123.2 448.1 313.1 Total net sales $ 1,169.1 $ 665.2 $ 2,212.9 $ 1,487.6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business. Tempur Sealy International, Inc., a Delaware corporation, together with its subsidiaries, is a U.S. based, multinational company. The term "Tempur Sealy International" refers to Tempur Sealy International, Inc. only, and the term "Company" refers to Tempur Sealy International, Inc. and its consolidated subsidiaries. The Company designs, manufactures and distributes bedding products, which include mattresses, foundations and adjustable bases, and other products, which include pillows and other accessories. The Company also derives income from royalties by licensing Sealy® and Stearns & Foster® brands, technology and trademarks to other manufacturers. The Company sells its products through two sales channels: Wholesale and Direct. The Company has ownership interests in United Kingdom and Asia-Pacific joint ventures to develop markets for Sealy® branded products in those regions. The Company’s ownership interest in each of these joint ventures is 50.0%. The equity method of accounting is used for these joint ventures, over which the Company has significant influence but does not have control, and consolidation is not otherwise required. The Company’s equity in the net income and losses of these investments is reported in equity income in earnings of unconsolidated affiliates in the accompanying Condensed Consolidated Statements of Income. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States ("GAAP") for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2020, included in the 2020 Annual Report filed with the Securities and Exchange Commission on February 19, 2021. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. It is the opinion of management that all necessary adjustments for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. |
Inventories | Inventories. Inventories are stated at the lower of cost and net realizable value, determined by the first-in, first-out method |
Accrued Sales Returns | Accrued Sales Returns. The Company allows product returns 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. Estimated future obligations related to these products are provided by a reduction of sales in the period in which the revenue is recognized. The Company considers the impact of recoverable salvage value on sales returns by segment in determining its estimate of future sales returns. Accrued sales returns are included in accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
Warranties | Warranties . The Company provides warranties on certain products, which vary by segment, product and brand. Estimates of warranty expenses are based primarily on historical claims experience and product testing. Estimated future obligations related to these products are charged to cost of sales in the period in which the related revenue is recognized. The Company considers the impact of recoverable salvage value on warranty costs in determining its estimate of future warranty obligations. |
Allowance for Credit Losses | Allowance for Credit Losses . The allowance for credit losses is the Company’s best estimate of the amount of expected lifetime credit losses in the Company’s accounts receivable. The Company regularly reviews the adequacy of its allowance for credit losses. The Company estimates losses over the contractual life using assumptions to capture the risk of loss, even if remote, based principally on how long a receivable has been outstanding. Account balances are charged off against the allowance for credit losses after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2021, the Company's accounts receivable were substantially current. Other factors considered include historical write-off experience, current economic conditions and also factors such as customer credit, past transaction history with the customer and changes in customer payment terms. The allowance for credit losses is included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | Inventories are stated at the lower of cost and net realizable value, determined by the first-in, first-out method, and consist of the following: June 30, December 31, (in millions) 2021 2020 Finished goods $ 160.6 $ 170.2 Work-in-process 10.6 12.6 Raw materials and supplies 153.0 129.3 $ 324.2 $ 312.1 |
Changes in Accrued Sales Returns | The Company had the following activity for sales returns from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 44.9 Amounts accrued 73.4 Returns charged to accrual (66.8) Balance as of June 30, 2021 $ 51.5 |
Summary of Warranty Activity | The Company had the following activity for its accrued warranty expense from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 44.2 Amounts accrued 13.4 Warranties charged to accrual (11.8) Balance as of June 30, 2021 $ 45.8 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The Company had the following activity for its allowance for credit losses from December 31, 2020 to June 30, 2021: (in millions) Balance as of December 31, 2020 $ 71.6 Amounts accrued 2.9 Write-offs charged against the allowance (3.3) Balance as of June 30, 2021 $ 71.2 |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 890.8 $ 114.6 $ 1,005.4 $ 1,656.3 $ 230.5 $ 1,886.8 Direct 123.0 40.7 163.7 240.8 85.3 326.1 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Product Bedding $ 962.5 $ 118.9 $ 1,081.4 $ 1,792.8 $ 240.6 $ 2,033.4 Other 51.3 36.4 87.7 104.3 75.2 179.5 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Geographical region United States $ 946.3 $ — $ 946.3 $ 1,764.8 $ — $ 1,764.8 All Other 67.5 155.3 222.8 132.3 315.8 448.1 Net sales $ 1,013.8 $ 155.3 $ 1,169.1 $ 1,897.1 $ 315.8 $ 2,212.9 The following table presents the Company's disaggregated revenue by channel, product and geographical region, including a reconciliation of disaggregated revenue by segment, for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 502.8 $ 60.9 $ 563.7 $ 1,127.5 $ 158.6 $ 1,286.1 Direct 75.8 25.7 101.5 143.4 58.1 201.5 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 North America International Consolidated North America International Consolidated Product Bedding $ 540.3 $ 65.6 $ 605.9 $ 1,195.2 $ 167.1 $ 1,362.3 Other 38.3 21.0 59.3 75.7 49.6 125.3 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 North America International Consolidated North America International Consolidated Geographical region United States $ 542.0 $ — $ 542.0 $ 1,174.5 $ — $ 1,174.5 All Other 36.6 86.6 123.2 96.4 216.7 313.1 Net sales $ 578.6 $ 86.6 $ 665.2 $ 1,270.9 $ 216.7 $ 1,487.6 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Business Segment | The following summarizes changes to the Company’s goodwill, by segment: (in millions) North America International Consolidated Balance as of December 31, 2020 $ 610.3 $ 156.0 $ 766.3 Foreign currency translation and other 2.7 (2.0) 0.7 Balance as of June 30, 2021 $ 613.0 $ 154.0 $ 767.0 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Debt for the Company consists of the following: June 30, 2021 December 31, 2020 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2019 Credit Agreement: Term A Facility $ 393.1 (1) $ 409.1 (2) October 16, 2024 Revolver 95.6 (1) — (2) October 16, 2024 2029 Senior Notes 800.0 4.00% — N/A April 15, 2029 2026 Senior Notes — N/A 600.0 5.500% June 15, 2026 2023 Senior Notes — N/A 250.0 5.625% October 15, 2023 Securitized debt 160.7 (3) 33.9 (4) April 6, 2023 Finance lease obligations (5) 71.0 71.4 Various Other 3.2 5.9 Various Total debt 1,523.6 1,370.3 Less: Deferred financing costs 14.0 3.4 Total debt, net 1,509.6 1,366.9 Less: Current portion 36.4 43.9 Total long-term debt, net $ 1,473.2 $ 1,323.0 (1) Interest at LIBOR plus applicable margin of 1.250% as of June 30, 2021. (2) Interest at LIBOR plus applicable margin of 1.250% as of December 31, 2020. (3) Interest at one month LIBOR index plus 70 basis points. (4) Interest at one month LIBOR index plus 80 basis points. (5) New finance lease obligations are a non-cash financing activity. Refer to Note 6, "Leases". |
Fair Value of Financial Instruments | The fair values of these material financial instruments are as follows: Fair Value (in millions) June 30, 2021 December 31, 2020 2023 Senior Notes $ — $ 255.1 2026 Senior Notes — 625.4 2029 Senior Notes 812.8 — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities | The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: (in millions) June 30, 2021 December 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 325.4 $ 304.3 Finance lease assets Property, plant and equipment, net 60.7 61.2 Total leased assets $ 386.1 $ 365.5 Liabilities Short-term: Operating lease obligations Accrued expenses and other current liabilities $ 66.4 $ 61.0 Finance lease obligations Current portion of long-term debt 11.9 11.4 Long-term: Operating lease obligations Long-term operating lease obligations 295.1 275.1 Finance lease obligations Long-term debt, net 59.1 60.0 Total lease obligations $ 432.5 $ 407.5 |
Schedule of Lease Expense | The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Operating lease expense: Operating lease expense $ 21.4 $ 18.7 $ 40.8 $ 36.7 Short-term lease expense 2.8 2.5 6.7 5.7 Variable lease expense 6.3 4.4 12.7 9.7 Finance lease expense: Amortization of right-of-use assets 3.1 2.2 5.9 4.4 Interest on lease obligations 1.1 1.1 2.2 2.3 Total lease expense $ 34.7 $ 28.9 $ 68.3 $ 58.8 The following table provides supplemental information related to the Company's Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020: Six Months Ended (in millions) June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows paid for operating leases (a) $ 37.5 $ 33.1 Operating cash flows paid for finance leases $ 2.3 $ 2.3 Financing cash flows paid for finance leases $ 6.1 $ 4.6 Right-of-use assets obtained in exchange for new operating lease obligations $ 55.7 $ 48.7 Right-of-use assets obtained in exchange for new finance lease obligations $ 5.4 $ 11.7 (a) Operating cash flows paid for operating leases are included within the change in other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by non-cash right-of-use asset amortization and lease liability accretion. |
Maturity of Operating Leases | The following table sets forth the scheduled maturities of lease obligations as of June 30, 2021: (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 40.2 $ 8.2 $ 48.4 2022 76.6 14.5 91.1 2023 64.7 11.9 76.6 2024 53.3 9.5 62.8 2025 45.3 8.3 53.6 Thereafter 143.0 35.5 178.5 Total lease payments 423.1 87.9 511.0 Less: Interest 61.6 16.9 78.5 Present value of lease obligations $ 361.5 $ 71.0 $ 432.5 |
Maturity of Finance Leases | The following table sets forth the scheduled maturities of lease obligations as of June 30, 2021: (in millions) Operating Leases Finance Leases Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 40.2 $ 8.2 $ 48.4 2022 76.6 14.5 91.1 2023 64.7 11.9 76.6 2024 53.3 9.5 62.8 2025 45.3 8.3 53.6 Thereafter 143.0 35.5 178.5 Total lease payments 423.1 87.9 511.0 Less: Interest 61.6 16.9 78.5 Present value of lease obligations $ 361.5 $ 71.0 $ 432.5 |
Lease Term and Discount Rate | The following table provides lease term and discount rate information related to operating and finance leases as of June 30, 2021: June 30, 2021 Weighted average remaining lease term (years): Operating leases 6.73 Finance leases 7.53 Weighted average discount rate: Operating leases 4.72 % Finance leases 5.61 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | AOCL consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Foreign Currency Translation Balance at beginning of period $ (69.4) $ (105.2) $ (58.6) $ (82.2) Other comprehensive loss: Foreign currency translation adjustments (1) 6.7 10.7 (4.1) (12.3) Balance at end of period $ (62.7) $ (94.5) $ (62.7) $ (94.5) Pensions Balance at beginning of period $ (6.9) $ (5.5) $ (6.9) $ (5.5) Other comprehensive loss: Net change from period revaluations — — — 0.1 Tax expense (2) — — — (0.1) Total other comprehensive income before reclassifications, net of tax $ — $ — $ — $ — Net amount reclassified to earnings (1) — — — — Tax benefit (2) — — — — Total amount reclassified from accumulated other comprehensive loss, net of tax $ — $ — $ — $ — Total other comprehensive loss — — — — Balance at end of period $ (6.9) $ (5.5) $ (6.9) $ (5.5) (1) In 2021 and 2020, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. (2) These amounts were included in the income tax provision in the accompanying Condensed Consolidated Statements of Income. |
Other Items (Tables)
Other Items (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in millions) June 30, 2021 December 31, 2020 Wages and benefits $ 82.7 $ 102.5 Advertising 72.4 74.4 Operating lease obligations 66.4 61.0 Taxes 11.5 150.4 Other 218.9 196.8 $ 451.9 $ 585.1 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | A summary of the Company’s stock-based compensation expense is presented in the following table: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 PRSU expense $ 9.7 $ 0.9 $ 19.3 $ 1.2 Option expense 0.4 1.2 0.8 2.4 RSU/DSU expense 5.0 5.4 10.1 11.2 Total stock-based compensation expense $ 15.1 $ 7.5 $ 30.2 $ 14.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Balance Sheet Location | The uncertain income tax liabilities for the Danish Tax Matter for the Settlement Years and for the years 2012 through 2021 (the "2012 to Current Period") are reflected in the Company’s Condensed Consolidated Balance Sheet as per below: June 30, 2021 December 31, 2020 Period Balance Sheet Presentation DKK USD DKK USD Settlement Years Accrued expenses and other current liabilities — $ — 847.3 $ 139.1 2012 to Current Period Other non-current liabilities 304.8 48.6 295.0 48.4 Total 304.8 $ 48.6 1,142.3 $ 187.5 June 30, 2021 December 31, 2020 DKK USD DKK USD Prepaid expenses and other current assets — $ — 847.3 $ 139.1 Other non-current assets 220.6 35.2 333.6 54.8 Total 220.6 $ 35.2 1,180.9 $ 193.9 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share | The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Tempur Sealy International. Three Months Ended Six Months Ended June 30, June 30, (in millions, except per common share amounts) 2021 2020 2021 2020 Numerator: Income from continuing operations, net of income attributable to non-controlling interests $ 141.1 $ 22.9 $ 271.8 $ 83.8 Denominator: Denominator for basic earnings per common share-weighted average shares 197.0 206.4 200.4 210.0 Effect of dilutive securities 7.1 1.6 4.5 2.0 Denominator for diluted earnings per common share-adjusted weighted average shares 204.1 208.0 204.9 212.0 Basic earnings per common share for continuing operations $ 0.72 $ 0.11 $ 1.36 $ 0.39 Diluted earnings per common share for continuing operations $ 0.69 $ 0.11 $ 1.32 $ 0.40 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Total assets and long-lived assets by segment | The following table summarizes total assets by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 4,145.9 $ 3,740.3 International 481.3 639.8 Corporate 400.7 490.3 Inter-segment eliminations (1,750.3) (1,561.8) Total assets $ 3,277.6 $ 3,308.6 The following table summarizes property, plant and equipment, net, by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 425.0 $ 415.3 International 47.0 49.8 Corporate 46.2 42.8 Total property, plant and equipment, net $ 518.2 $ 507.9 The following table summarizes operating lease right-of-use assets by segment: (in millions) June 30, 2021 December 31, 2020 North America $ 283.3 $ 256.6 International 40.6 45.7 Corporate 1.5 2.0 Total operating lease right-of-use assets $ 325.4 $ 304.3 |
Segment financial information | The following table summarizes segment information for the three months ended June 30, 2021: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,013.8 $ 155.3 $ — $ — $ 1,169.1 Inter-segment sales $ 0.5 $ 0.1 $ — $ (0.6) $ — Inter-segment royalty expense (income) 2.3 (2.3) — — — Gross profit 425.4 92.8 — — 518.2 Operating income (loss) 217.4 43.4 (37.5) — 223.3 Income (loss) from continuing operations before income taxes 216.8 42.8 (74.2) — 185.4 Depreciation and amortization (1) $ 21.7 $ 3.5 $ 16.9 $ — $ 42.1 Capital expenditures 22.3 2.6 4.2 — 29.1 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the three months ended June 30, 2020: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 578.6 $ 86.6 $ — $ — $ 665.2 Inter-segment sales $ — $ 0.1 $ — $ (0.1) $ — Inter-segment royalty expense (income) 1.1 (1.1) — — — Gross profit 218.4 47.5 — — 265.9 Operating income (loss) 67.7 11.3 (25.6) — 53.4 Income (loss) from continuing operations before income taxes 66.3 9.3 (43.1) — 32.5 Depreciation and amortization (1) $ 18.7 $ 3.3 $ 9.8 $ — $ 31.8 Capital expenditures 18.3 2.9 2.0 — 23.2 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the six months ended June 30, 2021: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,897.1 $ 315.8 $ — $ — $ 2,212.9 Inter-segment sales $ 1.2 $ 0.3 $ — $ (1.5) $ — Inter-segment royalty expense (income) 4.4 (4.4) — — — Gross profit 789.3 187.8 — — 977.1 Operating income (loss) 390.8 89.6 (68.7) — 411.7 Income (loss) from continuing operations before income taxes 389.3 88.9 (121.4) — 356.8 Depreciation and amortization (1) $ 42.7 $ 7.1 $ 33.9 $ — $ 83.7 Capital expenditures 41.1 4.6 6.9 — 52.6 (1) Depreciation and amortization includes stock-based compensation amortization expense. The following table summarizes segment information for the six months ended June 30, 2020: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,270.9 $ 216.7 $ — $ — $ 1,487.6 Inter-segment sales $ 0.5 $ 0.2 $ — $ (0.7) $ — Inter-segment royalty expense (income) 3.2 (3.2) — — — Gross profit 499.6 123.4 — — 623.0 Operating income (loss) 169.3 37.7 (48.3) — 158.7 Income (loss) from continuing operations before income taxes 166.4 33.3 (82.7) — 117.0 Depreciation and amortization (1) $ 36.5 $ 6.4 $ 19.4 $ — $ 62.3 Capital expenditures 39.9 5.0 4.5 — 49.4 (1) Depreciation and amortization includes stock-based compensation amortization expense. |
Long-lived assets by geographic region | The following table summarizes property, plant and equipment, net by geographic region: (in millions) June 30, 2021 December 31, 2020 United States $ 449.8 $ 436.2 All Other 68.4 71.7 Total property, plant and equipment, net $ 518.2 $ 507.9 The following table summarizes operating lease right-of-use assets by geographic region: (in millions) June 30, 2021 December 31, 2020 United States $ 281.4 $ 255.0 All Other 44.0 49.3 Total operating lease right-of-use assets $ 325.4 $ 304.3 |
Net sales by geographic region | The following table summarizes net sales by geographic region: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 United States $ 946.3 $ 542.0 $ 1,764.8 $ 1,174.5 All Other 222.8 123.2 448.1 313.1 Total net sales $ 1,169.1 $ 665.2 $ 2,212.9 $ 1,487.6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)channel | Dec. 31, 2020USD ($) | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Number of products sales channels | channel | 2 | |
Ownership percentage | 50.00% | |
Accrued expenses and other current liabilities | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accrued sales returns | $ 36.2 | $ 31.6 |
Warranty Term [Abstract] | ||
Accrued warranty expense | 21.8 | 20.3 |
Other noncurrent liabilities | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accrued sales returns | 15.3 | 13.3 |
Warranty Term [Abstract] | ||
Accrued warranty expense | $ 24 | $ 23.9 |
Mattresses | Non-prorated | International | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 5 years | |
Mattresses | Prorated | International | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 10 years | |
Mattresses | Minimum | North America | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 10 years | |
Mattresses | Minimum | International | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 5 years | |
Mattresses | Minimum | Non-prorated | North America | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 10 years | |
Mattresses | Maximum | North America | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 25 years | |
Mattresses | Maximum | International | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 15 years | |
Mattresses | Maximum | Non-prorated | North America | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 15 years | |
Pillows | North America | ||
Warranty Term [Abstract] | ||
Warranty term (in years) | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule Of Inventory, Current (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Finished goods | $ 160.6 | $ 170.2 |
Work-in-process | 10.6 | 12.6 |
Raw materials and supplies | 153 | 129.3 |
Total | $ 324.2 | $ 312.1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes In Accrued Sales Returns (Details) - Sales Returns $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Changes in Accrued Sales Returns [Roll Forward] | |
Beginning balance | $ 44.9 |
Amounts accrued | 73.4 |
Returns charged to accrual | (66.8) |
Ending balance | $ 51.5 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Warranty Activity (Details) - Warranty Reserves $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 44.2 |
Amounts accrued | 13.4 |
Warranties charged to accrual | (11.8) |
Ending balance | $ 45.8 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 71.6 | |
Amounts accrued | 2.9 | $ 26.5 |
Write-offs charged against the allowance | (3.3) | |
Ending Balance | $ 71.2 |
Net Sales - Sales (Details)
Net Sales - Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,169.1 | $ 665.2 | $ 2,212.9 | $ 1,487.6 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,169.1 | 665.2 | 2,212.9 | 1,487.6 |
Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 946.3 | 542 | 1,764.8 | 1,174.5 |
Operating Segments | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 222.8 | 123.2 | 448.1 | 313.1 |
Operating Segments | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,081.4 | 605.9 | 2,033.4 | 1,362.3 |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 87.7 | 59.3 | 179.5 | 125.3 |
Operating Segments | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,005.4 | 563.7 | 1,886.8 | 1,286.1 |
Operating Segments | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 163.7 | 101.5 | 326.1 | 201.5 |
Operating Segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,013.8 | 578.6 | 1,897.1 | 1,270.9 |
Operating Segments | North America | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 946.3 | 542 | ||
Operating Segments | North America | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 67.5 | 36.6 | 132.3 | 96.4 |
Operating Segments | North America | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 962.5 | 540.3 | 1,792.8 | 1,195.2 |
Operating Segments | North America | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 51.3 | 38.3 | 104.3 | 75.7 |
Operating Segments | North America | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 890.8 | 502.8 | 1,656.3 | 1,127.5 |
Operating Segments | North America | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 123 | 75.8 | 240.8 | 143.4 |
Operating Segments | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 155.3 | 86.6 | 315.8 | 216.7 |
Operating Segments | International | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | International | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 155.3 | 86.6 | 315.8 | 216.7 |
Operating Segments | International | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 118.9 | 65.6 | 240.6 | 167.1 |
Operating Segments | International | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 36.4 | 21 | 75.2 | 49.6 |
Operating Segments | International | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114.6 | 60.9 | 230.5 | 158.6 |
Operating Segments | International | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 40.7 | $ 25.7 | $ 85.3 | $ 58.1 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Dreams $ in Millions | Aug. 02, 2021USD ($) | May 26, 2021retailLocation |
Business Acquisition [Line Items] | ||
Number of retail locations | retailLocation | 200 | |
Subsequent Event | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ | $ 475 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 766.3 |
Foreign currency translation and other | 0.7 |
Ending balance | 767 |
North America | |
Goodwill [Roll Forward] | |
Beginning balance | 610.3 |
Foreign currency translation and other | 2.7 |
Ending balance | 613 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 156 |
Foreign currency translation and other | (2) |
Ending balance | $ 154 |
Debt - Schedule of Borrowings O
Debt - Schedule of Borrowings Outstanding (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 25, 2021 | |
Long-term Debt, Current and Noncurrent [Abstract] | |||
Present value of lease obligations | $ 71 | $ 71.4 | |
Total debt | 1,523.6 | 1,370.3 | |
Less: Deferred financing costs | 14 | 3.4 | |
Total debt, net | 1,509.6 | 1,366.9 | |
Current portion of long-term debt | 36.4 | 43.9 | |
Total long-term debt, net | 1,473.2 | 1,323 | |
2029 Senior Notes | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 800 | 0 | |
Line of Credit Facility [Abstract] | |||
Stated percentage | 4.00% | 4.00% | |
2026 Senior Notes | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 0 | $ 600 | |
Line of Credit Facility [Abstract] | |||
Stated percentage | 5.50% | ||
2023 Senior Notes | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | 0 | $ 250 | |
Line of Credit Facility [Abstract] | |||
Stated percentage | 5.625% | ||
Securitized debt | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 160.7 | $ 33.9 | |
Securitized debt | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Abstract] | |||
Index rate or LIBOR plus (as a percent) | 0.70% | 0.80% | |
Other | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 3.2 | $ 5.9 | |
2019 Credit Agreement | Term A Facility | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 393.1 | $ 409.1 | |
2019 Credit Agreement | Term A Facility | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Abstract] | |||
Index rate or LIBOR plus (as a percent) | 1.25% | 1.25% | |
2019 Credit Agreement | Revolving Credit Facility | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long term debt, gross | $ 95.6 | $ 0 | |
2019 Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Abstract] | |||
Index rate or LIBOR plus (as a percent) | 1.25% | 1.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jul. 30, 2021 | Apr. 28, 2021 | Nov. 09, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 15, 2021 | May 26, 2021 | Apr. 06, 2021 | Mar. 25, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | Oct. 16, 2019 |
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing costs expensed | $ 3,000,000 | $ 0 | |||||||||||||
Loss on extinguishment of debt | $ 18,000,000 | $ 0 | 23,000,000 | $ 0 | |||||||||||
2029 Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt, gross | $ 800,000,000 | $ 800,000,000 | $ 0 | ||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||||
Stated percentage | 4.00% | 4.00% | 4.00% | ||||||||||||
Percentage of principal amount that may be redeemed | 104.00% | ||||||||||||||
Minimum percentage of notes not eligible for early redemption | 60.00% | ||||||||||||||
Deferred financing costs expensed | $ 11,400,000 | ||||||||||||||
Debt term | 8 years | ||||||||||||||
2029 Senior Notes | Anytime on or after April 15, 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption price percentage | 102.00% | ||||||||||||||
2029 Senior Notes | Beginning on April 15, 2026 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption price percentage | 100.00% | ||||||||||||||
2029 Senior Notes | Anytime prior to April 15, 2024 with a 'make-whole' premium and accrued and unpaid interest, if any | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of redemption on notes | 100.00% | 100.00% | |||||||||||||
2029 Senior Notes | Any time prior to April 15, 2024 with the net cash proceeds from certain equity offerings plus accrued and unpaid interest, if any | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of redemption on notes | 40.00% | 40.00% | |||||||||||||
2026 Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt, gross | $ 0 | $ 0 | $ 600,000,000 | ||||||||||||
Stated percentage | 5.50% | ||||||||||||||
Redemption price percentage | 102.75% | ||||||||||||||
Deferred financing costs expensed | 1,500,000 | ||||||||||||||
Repayments of senior notes | $ 600,000,000 | ||||||||||||||
Loss on extinguishment of debt | 18,000,000 | ||||||||||||||
Debt prepayment cost | 16,500,000 | ||||||||||||||
Interest incurred | $ 5,200,000 | ||||||||||||||
2023 Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt, gross | 0 | 0 | $ 250,000,000 | ||||||||||||
Stated percentage | 5.625% | ||||||||||||||
Redemption price percentage | 101.406% | 101.406% | |||||||||||||
Deferred financing costs expensed | $ 1,500,000 | ||||||||||||||
Repayments of senior notes | $ 200,000,000 | 250,000,000 | |||||||||||||
Loss on extinguishment of debt | 5,000,000 | ||||||||||||||
Debt prepayment cost | $ 3,500,000 | ||||||||||||||
2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Remaining borrowing capacity | 629,300,000 | 629,300,000 | |||||||||||||
Accounts Receivable Securitization | Securitized debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | 120,000,000 | 120,000,000 | $ 200,000,000 | ||||||||||||
Revolving Credit Facility | 2019 Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt, gross | $ 95,600,000 | 95,600,000 | $ 0 | ||||||||||||
Revolving Credit Facility | 2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | $ 725,000,000 | $ 425,000,000 | |||||||||||||
Term Loan Facility | 2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | 425,000,000 | ||||||||||||||
Incremental Facility | 2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | 550,000,000 | ||||||||||||||
Letter of Credit | 2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | $ 60,000,000 | ||||||||||||||
Proceeds from lines of credit | $ 100,000 | ||||||||||||||
Delayed Draw Term Loan | 2019 Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit borrowing | $ 300,000,000 | ||||||||||||||
Delayed Draw Term Loan | 2019 Credit Agreement | Line of Credit | Subsequent Event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from lines of credit | $ 300,000,000 |
Debt - Schedule of Notes Estima
Debt - Schedule of Notes Estimated Fair Value (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
2023 Senior Notes | ||
Debt Instrument [Line Items] | ||
Notes, fair value | $ 0 | $ 255.1 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Notes, fair value | 0 | 625.4 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Notes, fair value | $ 812.8 | $ 0 |
Leases - Balance Sheet Effect (
Leases - Balance Sheet Effect (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Operating lease assets | $ 325.4 | $ 304.3 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance lease assets | $ 60.7 | $ 61.2 |
Total leased assets | $ 386.1 | $ 365.5 |
Short-term: | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating lease obligations | $ 66.4 | $ 61 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance lease obligations | $ 11.9 | $ 11.4 |
Long-term: | ||
Long-term operating lease obligations | $ 295.1 | $ 275.1 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, net | Long-term debt, net |
Finance lease obligations | $ 59.1 | $ 60 |
Present value of lease obligations | $ 432.5 | $ 407.5 |
Leases - Expense (Details)
Leases - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating lease expense: | ||||
Operating lease expense | $ 21.4 | $ 18.7 | $ 40.8 | $ 36.7 |
Short-term lease expense | 2.8 | 2.5 | 6.7 | 5.7 |
Variable lease expense | 6.3 | 4.4 | 12.7 | 9.7 |
Finance lease expense: | ||||
Amortization of right-of-use assets | 3.1 | 2.2 | 5.9 | 4.4 |
Interest on lease obligations | 1.1 | 1.1 | 2.2 | 2.3 |
Total lease expense | $ 34.7 | $ 28.9 | $ 68.3 | $ 58.8 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (excluding the six months ended June 30, 2021) | $ 40.2 | |
2022 | 76.6 | |
2023 | 64.7 | |
2024 | 53.3 | |
2025 | 45.3 | |
Thereafter | 143 | |
Future minimum lease payments | 423.1 | |
Less: Interest | 61.6 | |
Present value of lease obligations | 361.5 | |
Finance Leases | ||
2021 (excluding the six months ended June 30, 2021) | 8.2 | |
2022 | 14.5 | |
2023 | 11.9 | |
2024 | 9.5 | |
2025 | 8.3 | |
Thereafter | 35.5 | |
Total lease payments | 87.9 | |
Less: Interest | 16.9 | |
Present value of lease obligations | 71 | $ 71.4 |
2021 (excluding the six months ended June 30, 2021) | 48.4 | |
2022 | 91.1 | |
2023 | 76.6 | |
2024 | 62.8 | |
2025 | 53.6 | |
Thereafter | 178.5 | |
Total lease payments | 511 | |
Less: Interest | 78.5 | |
Present value of lease obligations | $ 432.5 | $ 407.5 |
Leases - Long Term and Discount
Leases - Long Term and Discount Rate (Details) | Jun. 30, 2021 |
Weighted average remaining lease term (years): | |
Operating leases | 6 years 8 months 23 days |
Finance leases | 7 years 6 months 10 days |
Weighted average discount rate: | |
Operating leases | 4.72% |
Finance leases | 5.61% |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash paid for amounts included in the measurement of lease obligations: | ||
Operating cash flows paid for operating leases (a) | $ 37.5 | $ 33.1 |
Operating cash flows paid for finance leases | 2.3 | 2.3 |
Financing cash flows paid for finance leases | 6.1 | 4.6 |
Right-of-use assets obtained in exchange for new operating lease obligations | 55.7 | 48.7 |
Right-of-use assets obtained in exchange for new finance lease obligations | $ 5.4 | $ 11.7 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 30, 2021 | Feb. 28, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Increase (decrease) in authorization amount | $ 325.3 | $ 211.4 | ||||
Treasury stock, acquired (in shares) | 1,600,000 | 0 | 10,000,000 | 2,600,000 | ||
Value of treasury stock acquired | $ 61.6 | $ 361.4 | $ 187.5 | |||
Payments for repurchase of common stock | 361.4 | 187.5 | ||||
Performance-based Restricted Stock Units | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Value of treasury stock acquired | 0.8 | $ 0.2 | 14.1 | $ 12 | ||
February 2016 Program | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Remaining shares under share repurchase authorization | $ 376.8 | $ 376.8 |
Stockholders' Equity - AOCL (De
Stockholders' Equity - AOCL (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 318,300,000 | $ 200,000,000 | $ 504,600,000 | $ 360,400,000 |
Foreign currency translation adjustments | 6,700,000 | 10,700,000 | (4,100,000) | (12,300,000) |
Total other comprehensive loss | 0 | 0 | 0 | 0 |
Balance at end of period | 401,600,000 | 241,300,000 | 401,600,000 | 241,300,000 |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (69,400,000) | (105,200,000) | (58,600,000) | (82,200,000) |
Tax expense | 0 | 0 | ||
Net amount reclassified to earnings | 0 | 0 | ||
Balance at end of period | (62,700,000) | (94,500,000) | (62,700,000) | (94,500,000) |
Pensions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (6,900,000) | (5,500,000) | (6,900,000) | (5,500,000) |
Net change from period revaluations | 0 | 0 | 0 | 100,000 |
Tax expense | 0 | 0 | 0 | (100,000) |
Total other comprehensive gain (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Tax benefit | 0 | 0 | 0 | 0 |
Total amount reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | $ (6,900,000) | $ (5,500,000) | $ (6,900,000) | $ (5,500,000) |
Other Items (Details)
Other Items (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Wages and benefits | $ 82.7 | $ 102.5 |
Advertising | 72.4 | 74.4 |
Operating lease obligations | 66.4 | 61 |
Taxes | 11.5 | 150.4 |
Other | 218.9 | 196.8 |
Total accrued liabilities | $ 451.9 | $ 585.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 15.1 | $ 7.5 | $ 30.2 | $ 14.8 |
PRSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 9.7 | 0.9 | 19.3 | 1.2 |
Option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 0.4 | 1.2 | 0.8 | 2.4 |
RSU/DSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 5 | $ 5.4 | $ 10.1 | $ 11.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Examination [Line Items] | |||||
Effective income tax provision (as a percent) | 24.10% | 28.90% | 23.90% | 28.10% | |
Danish Tax Authority (SKAT) | Foreign Tax Authority | Tax Years Post 2011 | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax assets | $ 11.6 | $ 11.6 | $ 12 |
Income Taxes - Balance Sheet Lo
Income Taxes - Balance Sheet Location (Details) kr in Millions, $ in Millions | Jun. 30, 2021DKK (kr) | Jun. 30, 2021USD ($) | Dec. 31, 2020DKK (kr) | Dec. 31, 2020USD ($) |
Income Tax Examination [Line Items] | ||||
Tax liability | kr 304.8 | $ 48.6 | kr 1,142.3 | $ 187.5 |
Tax deposit | 220.6 | 35.2 | 1,180.9 | 193.9 |
Accrued expenses and other current liabilities | ||||
Income Tax Examination [Line Items] | ||||
Tax liability | 0 | 0 | 847.3 | 139.1 |
Tax deposit | 0 | 0 | 847.3 | 139.1 |
Other noncurrent liabilities | ||||
Income Tax Examination [Line Items] | ||||
Tax liability | 304.8 | 48.6 | 295 | 48.4 |
Other non-current assets | ||||
Income Tax Examination [Line Items] | ||||
Tax deposit | kr 220.6 | $ 35.2 | kr 333.6 | $ 54.8 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Income from continuing operations, net of income attributable to non-controlling interests | $ 141.1 | $ 22.9 | $ 271.8 | $ 83.8 |
Denominator: | ||||
Denominator for basic earnings per common share-weighted average shares (in shares) | 197 | 206.4 | 200.4 | 210 |
Effect of dilutive securities (in shares) | 7.1 | 1.6 | 4.5 | 2 |
Denominator for diluted earnings per common share-adjusted weighted average shares (in shares) | 204.1 | 208 | 204.9 | 212 |
Basic earnings per share for continuing operations (in dollars per share) | $ 0.72 | $ 0.11 | $ 1.36 | $ 0.39 |
Diluted earnings per share for continuing operations (in dollars per share) | $ 0.69 | $ 0.11 | $ 1.32 | $ 0.40 |
Shares excluded from diluted earnings per common share computation as anti-dilutive (in shares) | 5.2 | 3.2 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||||
Number of business segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 3,277.6 | $ 3,277.6 | $ 3,308.6 | ||
Total property, plant and equipment, net | 518.2 | 518.2 | 507.9 | ||
Operating lease assets | 325.4 | 325.4 | 304.3 | ||
Net sales | 1,169.1 | $ 665.2 | 2,212.9 | $ 1,487.6 | |
Gross profit | 518.2 | 265.9 | 977.1 | 623 | |
Operating income (loss) | 223.3 | 53.4 | 411.7 | 158.7 | |
Income (loss) from continuing operations before income taxes | 185.4 | 32.5 | 356.8 | 117 | |
Depreciation and amortization (including stock-based compensation amortization) | 42.1 | 31.8 | 83.7 | 62.3 | |
Capital expenditures | 29.1 | 23.2 | 52.6 | 49.4 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total property, plant and equipment, net | 449.8 | 449.8 | 436.2 | ||
Operating lease assets | 281.4 | 281.4 | 255 | ||
All Other | |||||
Segment Reporting Information [Line Items] | |||||
Total property, plant and equipment, net | 68.4 | 68.4 | 71.7 | ||
Operating lease assets | 44 | 44 | 49.3 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total property, plant and equipment, net | 518.2 | 518.2 | 507.9 | ||
Net sales | 1,169.1 | 665.2 | 2,212.9 | 1,487.6 | |
Operating Segments | United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 946.3 | 542 | 1,764.8 | 1,174.5 | |
Operating Segments | All Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 222.8 | 123.2 | 448.1 | 313.1 | |
Operating Segments | North America | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 4,145.9 | 4,145.9 | 3,740.3 | ||
Total property, plant and equipment, net | 425 | 425 | 415.3 | ||
Operating lease assets | 283.3 | 283.3 | 256.6 | ||
Net sales | 1,013.8 | 578.6 | 1,897.1 | 1,270.9 | |
Gross profit | 425.4 | 218.4 | 789.3 | 499.6 | |
Operating income (loss) | 217.4 | 67.7 | 390.8 | 169.3 | |
Income (loss) from continuing operations before income taxes | 216.8 | 66.3 | 389.3 | 166.4 | |
Depreciation and amortization (including stock-based compensation amortization) | 21.7 | 18.7 | 42.7 | 36.5 | |
Capital expenditures | 22.3 | 18.3 | 41.1 | 39.9 | |
Operating Segments | North America | United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 946.3 | 542 | |||
Operating Segments | North America | All Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 67.5 | 36.6 | 132.3 | 96.4 | |
Operating Segments | International | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 481.3 | 481.3 | 639.8 | ||
Total property, plant and equipment, net | 47 | 47 | 49.8 | ||
Operating lease assets | 40.6 | 40.6 | 45.7 | ||
Net sales | 155.3 | 86.6 | 315.8 | 216.7 | |
Gross profit | 92.8 | 47.5 | 187.8 | 123.4 | |
Operating income (loss) | 43.4 | 11.3 | 89.6 | 37.7 | |
Income (loss) from continuing operations before income taxes | 42.8 | 9.3 | 88.9 | 33.3 | |
Depreciation and amortization (including stock-based compensation amortization) | 3.5 | 3.3 | 7.1 | 6.4 | |
Capital expenditures | 2.6 | 2.9 | 4.6 | 5 | |
Operating Segments | International | United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Operating Segments | International | All Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 155.3 | 86.6 | 315.8 | 216.7 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 400.7 | 400.7 | 490.3 | ||
Total property, plant and equipment, net | 46.2 | 46.2 | 42.8 | ||
Operating lease assets | 1.5 | 1.5 | 2 | ||
Operating income (loss) | (37.5) | (25.6) | (68.7) | (48.3) | |
Income (loss) from continuing operations before income taxes | (74.2) | (43.1) | (121.4) | (82.7) | |
Depreciation and amortization (including stock-based compensation amortization) | 16.9 | 9.8 | 33.9 | 19.4 | |
Capital expenditures | 4.2 | 2 | 6.9 | 4.5 | |
Inter-segment eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | (1,750.3) | (1,750.3) | $ (1,561.8) | ||
Net sales | (0.6) | (0.1) | (1.5) | (0.7) | |
Inter-segment eliminations | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.5 | 0 | 1.2 | 0.5 | |
Inter-segment royalty expense (income) | 2.3 | 1.1 | 4.4 | 3.2 | |
Inter-segment eliminations | International | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.1 | 0.1 | 0.3 | 0.2 | |
Inter-segment royalty expense (income) | $ (2.3) | $ (1.1) | $ (4.4) | $ (3.2) |