Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | TPX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 172,194,644 | |
Entity Central Index Key | 0001206264 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,211 | $ 1,169.1 | $ 2,450.5 | $ 2,212.9 |
Cost of sales | 714.5 | 650.9 | 1,431.2 | 1,235.8 |
Gross profit | 496.5 | 518.2 | 1,019.3 | 977.1 |
Selling and marketing expenses | 252.9 | 216.8 | 496.4 | 414.5 |
General, administrative and other expenses | 102.3 | 85.1 | 199.9 | 164.6 |
Equity income in earnings of unconsolidated affiliates | (2.6) | (7) | (9.5) | (13.7) |
Operating income | 143.9 | 223.3 | 332.5 | 411.7 |
Other expense, net: | ||||
Interest expense, net | 23.7 | 20 | 44.6 | 32.3 |
Loss on extinguishment of debt | 0 | 18 | 0 | 23 |
Other expense (income), net | 0.7 | (0.1) | (0.6) | (0.4) |
Total other expense, net | 24.4 | 37.9 | 44 | 54.9 |
Income from continuing operations before income taxes | 119.5 | 185.4 | 288.5 | 356.8 |
Income tax provision | (28.3) | (44.7) | (66.4) | (85.2) |
Income from continuing operations | 91.2 | 140.7 | 222.1 | 271.6 |
Loss from discontinued operations, net of tax | 0 | (0.3) | 0 | (0.5) |
Net income before non-controlling interests | 91.2 | 140.4 | 222.1 | 271.1 |
Less: Net income (loss) attributable to non-controlling interests | 0.6 | (0.4) | 0.8 | (0.2) |
Net income attributable to Tempur Sealy International, Inc. | $ 90.6 | $ 140.8 | $ 221.3 | $ 271.3 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.72 | $ 1.24 | $ 1.36 |
Diluted (in dollars per share) | $ 0.51 | $ 0.69 | $ 1.20 | $ 1.32 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 174.1 | 197 | 178.3 | 200.4 |
Diluted (in shares) | 178.8 | 204.1 | 183.7 | 204.9 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before non-controlling interests | $ 91.2 | $ 140.4 | $ 222.1 | $ 271.1 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (57.8) | 6.7 | (75.3) | (4.1) |
Other comprehensive (loss) income, net of tax | (57.8) | 6.7 | (75.3) | (4.1) |
Comprehensive income | 33.4 | 147.1 | 146.8 | 267 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 0.6 | (0.4) | 0.8 | (0.2) |
Comprehensive income attributable to Tempur Sealy International, Inc. | $ 32.8 | $ 147.5 | $ 146 | $ 267.2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 110.3 | $ 300.7 |
Accounts receivable, net | 481.6 | 419.5 |
Inventories | 619.1 | 463.9 |
Prepaid expenses and other current assets | 94.2 | 91.5 |
Total Current Assets | 1,305.2 | 1,275.6 |
Property, plant and equipment, net | 672.8 | 583.5 |
Goodwill | 1,066.6 | 1,107.4 |
Other intangible assets, net | 727.8 | 750.9 |
Operating lease right-of-use assets | 507.7 | 480.6 |
Deferred income taxes | 12.4 | 13.6 |
Other non-current assets | 111.9 | 111.8 |
Total Assets | 4,404.4 | 4,323.4 |
Current Liabilities: | ||
Accounts payable | 432.6 | 432 |
Accrued expenses and other current liabilities | 528.1 | 558.5 |
Current portion of long-term debt | 65.6 | 53 |
Income taxes payable | 30.8 | 9.9 |
Total Current Liabilities | 1,057.1 | 1,053.4 |
Long-term debt, net | 2,817 | 2,278.5 |
Long-term operating lease obligations | 454.9 | 427 |
Deferred income taxes | 119.3 | 129.2 |
Other non-current liabilities | 137 | 140.3 |
Total Liabilities | 4,585.3 | 4,028.4 |
Redeemable non-controlling interest | 9 | 9.2 |
Total Stockholders' (Deficit) Equity | (189.9) | 285.8 |
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' (Deficit) Equity | $ 4,404.4 | $ 4,323.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest in Subsidiaries |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 283.8 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 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 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 end of period (in shares) at Jun. 30, 2021 | 283.8 | ||||||
Balance at ending of period (in shares) at Jun. 30, 2021 | 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 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 | ||||||
Balance at beginning of period (in shares) at Mar. 31, 2021 | 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 | |||||
Net income attributable to non-controlling interests | 0 | ||||||
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 end of period (in shares) at Jun. 30, 2021 | 283.8 | ||||||
Balance at ending of period (in shares) at Jun. 30, 2021 | 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 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 Dec. 31, 2021 | 283.8 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2021 | 96.4 | ||||||
Balance at beginning of period at Dec. 31, 2021 | 285.8 | $ 2.8 | $ (2,844.7) | 622 | 2,604.9 | (99.2) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 221.3 | 221.3 | |||||
Net income attributable to non-controlling interests | 0 | ||||||
Dividend paid to non-controlling interest in subsidiary | 0 | ||||||
Foreign currency adjustments, net of tax | (75.3) | (75.3) | |||||
Exercise of stock options | 0.2 | $ 0.4 | (0.2) | ||||
Dividends declared on common stock | (36.7) | (36.7) | |||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (2.6) | ||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 75 | (75) | ||||
Treasury stock repurchased (in shares) | 16.6 | ||||||
Treasury stock repurchased | (566.2) | $ (566.2) | |||||
Treasury stock repurchased - PRSU/RSU releases (in shares) | 1 | ||||||
Treasury stock repurchased - PRSU/RSU releases | (45.8) | $ (45.8) | |||||
Amortization of unearned stock-based compensation | 26.8 | 26.8 | |||||
Balance at end of period (in shares) at Jun. 30, 2022 | 283.8 | ||||||
Balance at ending of period (in shares) at Jun. 30, 2022 | 111.4 | ||||||
Balance at end of period at Jun. 30, 2022 | (189.9) | $ 2.8 | $ (3,381.3) | 573.6 | 2,789.5 | (174.5) | |
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2021 | 9.2 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to non-controlling interests | 0.8 | ||||||
Dividend paid to non-controlling interest in subsidiary | (1) | ||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2022 | 9 | ||||||
Balance at beginning of period (in shares) at Mar. 31, 2022 | 283.8 | ||||||
Balance at beginning of period (in shares) at Mar. 31, 2022 | 107.1 | ||||||
Balance at beginning of period at Mar. 31, 2022 | (100.7) | $ 2.8 | $ (3,267.2) | 563.6 | 2,716.8 | (116.7) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 90.6 | 90.6 | |||||
Net income attributable to non-controlling interests | 0 | ||||||
Dividend paid to non-controlling interest in subsidiary | 0 | ||||||
Foreign currency adjustments, net of tax | (57.8) | (57.8) | |||||
Exercise of stock options | 0.1 | $ 0.2 | (0.1) | ||||
Dividends declared on common stock | (17.9) | (17.9) | |||||
Issuances of PRSUs, RSUs, and DSUs (in shares) | (0.1) | ||||||
Issuances of PRSUs, RSUs, and DSUs | 0 | $ 2.9 | (2.9) | ||||
Treasury stock repurchased (in shares) | 4.4 | ||||||
Treasury stock repurchased | (117) | $ (117) | |||||
Treasury stock repurchased - PRSU/RSU releases | (0.2) | $ (0.2) | |||||
Amortization of unearned stock-based compensation | 13 | 13 | |||||
Balance at end of period (in shares) at Jun. 30, 2022 | 283.8 | ||||||
Balance at ending of period (in shares) at Jun. 30, 2022 | 111.4 | ||||||
Balance at end of period at Jun. 30, 2022 | (189.9) | $ 2.8 | $ (3,381.3) | $ 573.6 | $ 2,789.5 | $ (174.5) | |
Redeemable noncontrolling interest, beginning balance at Mar. 31, 2022 | 9.4 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to non-controlling interests | 0.6 | ||||||
Dividend paid to non-controlling interest in subsidiary | (1) | ||||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2022 | $ 9 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common stock (in usd per share) | $ 0.10 | $ 0.07 | $ 0.20 | $ 0.14 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Net income before non-controlling interests | $ 222.1 | $ 271.1 |
Loss from discontinued operations, net of tax | 0 | 0.5 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 61.3 | 53.5 |
Amortization of stock-based compensation | 26.9 | 30.2 |
Amortization of deferred financing costs | 1.9 | 1.2 |
Bad debt expense | 3.8 | 2.9 |
Deferred income taxes | (6.7) | 8 |
Dividends received from unconsolidated affiliates | 3.9 | 5.3 |
Equity income in earnings of unconsolidated affiliates | (9.5) | (13.7) |
Loss on extinguishment of debt | 0 | 3 |
Foreign currency adjustments and other | 0.2 | 0.6 |
Changes in operating assets and liabilities, net of effect of business acquisitions | (237.4) | (49.6) |
Net cash provided by operating activities from continuing operations | 66.5 | 313 |
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Purchases of property, plant and equipment | (130.2) | (52.6) |
Acquisitions, net of cash acquired | 0 | (5.6) |
Other | 1.1 | 0.3 |
Net cash used in investing activities from continuing operations | (129.1) | (57.9) |
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | ||
Proceeds from borrowings under long-term debt obligations | 1,317.9 | 1,936.1 |
Repayments of borrowings under long-term debt obligations | (771.7) | (1,782.3) |
Proceeds from exercise of stock options | 0.2 | 8.5 |
Treasury stock repurchased | (612) | (374.4) |
Dividends paid | (36.2) | (28.1) |
Payments of deferred financing costs | 0 | (14.2) |
Repayments of finance lease obligations and other | (8.4) | (6.1) |
Net cash used in financing activities from continuing operations | (110.2) | (260.5) |
Net cash used in continuing operations | (172.8) | (5.4) |
Net operating cash flows used in discontinued operations | 0 | (0.7) |
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (17.6) | (0.8) |
Decrease in cash and cash equivalents | (190.4) | (6.9) |
CASH AND CASH EQUIVALENTS, beginning of period | 300.7 | 65 |
CASH AND CASH EQUIVALENTS, end of period | 110.3 | 58.1 |
Cash paid during the period for: | ||
Interest | 45.6 | 28.2 |
Income taxes, net of refunds | $ 48 | $ 71.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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 Asia-Pacific joint ventures to develop markets for Sealy® and Stearns & Foster® branded products and ownership in a United Kingdom joint venture to manufacture, market, and distribute Sealy® and Stearns & Foster® branded products. The Company's ownership interests 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, 2021, included in the 2021 Annual Report filed with the Securities and Exchange Commission on February 22, 2022. 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) 2022 2021 Finished goods $ 411.9 $ 297.8 Work-in-process 22.4 11.4 Raw materials and supplies 184.8 154.7 $ 619.1 $ 463.9 (c) 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, 2021 to June 30, 2022: (in millions) Balance as of December 31, 2021 $ 43.9 Amounts accrued 10.2 Warranties charged to accrual (9.7) Balance as of June 30, 2022 $ 44.4 As of June 30, 2022 and December 31, 2021, $19.8 million and $20.2 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $24.6 million and $23.7 million of accrued warranty expense is included in other non-current liabilities on the Company's accompanying Condensed Consolidated Balance Sheets, respectively. (d) 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. As of June 30, 2022, 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. 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. 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, 2021 to June 30, 2022: (in millions) Balance as of December 31, 2021 $ 62.1 Amounts accrued 3.8 Write-offs charged against the allowance (3.6) Balance as of June 30, 2022 $ 62.3 (e) Fair Value. 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 Level 2 inputs, which include 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, 2022 December 31, 2021 2029 Senior Notes $ 643.8 $ 816.9 2031 Senior Notes $ 601.7 $ 803.7 |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2022 | |
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 months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 847.8 $ 91.3 $ 939.1 $ 890.8 $ 114.6 $ 1,005.4 Direct 116.9 155.0 271.9 123.0 40.7 163.7 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 North America International Consolidated North America International Consolidated Product Bedding $ 909.1 $ 205.1 $ 1,114.2 $ 962.5 $ 118.9 $ 1,081.4 Other 55.6 41.2 96.8 51.3 36.4 87.7 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 North America International Consolidated North America International Consolidated Geographical region United States $ 890.3 $ — $ 890.3 $ 946.3 $ — $ 946.3 All Other 74.4 246.3 320.7 67.5 155.3 222.8 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 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 six months ended June 30, 2022 and 2021: Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 1,659.1 $ 204.1 $ 1,863.2 $ 1,656.3 $ 230.5 $ 1,886.8 Direct 237.0 350.3 587.3 240.8 85.3 326.1 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Product Bedding $ 1,774.0 $ 461.6 $ 2,235.6 $ 1,792.8 $ 240.6 $ 2,033.4 Other 122.1 92.8 214.9 104.3 75.2 179.5 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Geographical region United States $ 1,754.6 $ — $ 1,754.6 $ 1,764.8 $ — $ 1,764.8 All Other 141.5 554.4 695.9 132.3 315.8 448.1 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisition of Dreams Topco Limited On August 2, 2021, the Company completed the acquisition of Dreams Topco Limited and its direct and indirect subsidiaries ("Dreams"), for a cash purchase price of $476.7 million, which includes $49.5 million of cash acquired. The transaction was funded using cash on hand and bank financing. 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. The financial results of Dreams subsequent to the date of acquisition are included in the consolidated financial statements of the Company. The Company accounted for this transaction as a business combination. The preliminary allocation of the purchase price is based on the fair values of the assets acquired and liabilities assumed as of August 2, 2021. The Company continues to obtain information to determine the fair value of acquired assets and liabilities. The components of the preliminary purchase price allocation are as follows: (in millions) Accounts receivable, net $ 3.5 Inventory 51.2 Property, plant and equipment 33.9 Goodwill 357.1 Indefinite-lived intangible asset 141.9 Operating lease right-of-use assets 158.2 Other current and non-current assets 4.4 Accounts payable (55.2) Accrued expenses and other current liabilities (69.7) Operating lease liabilities (165.1) Debt (6.1) Other liabilities (26.9) Purchase price, net of cash acquired $ 427.2 The indefinite-lived intangible asset represents the Dreams' portfolio of trade names as marketed through Dreams. The Company applied the income approach through a relief from royalty method to fair value the trade name asset using Level 2 inputs. The indefinite-lived intangible asset is not deductible for income tax purposes. Goodwill is calculated as the excess of the purchase price over the net assets acquired and primarily represents the expansion of retail competency and online capabilities, and expected synergistic manufacturing and distribution benefits to be realized from the acquisition. The goodwill is not deductible for income tax purposes and is included within the International business segment. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021 $ 611.5 $ 495.9 $ 1,107.4 Foreign currency translation and other (1.1) (39.7) (40.8) Balance as of June 30, 2022 $ 610.4 $ 456.2 $ 1,066.6 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt for the Company consists of the following: June 30, 2022 December 31, 2021 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2019 Credit Agreement: Term A Facility $ 656.9 (1) $ 675.0 (2) October 16, 2024 Revolver 429.0 (1) — (2) October 16, 2024 2031 Senior Notes 800.0 3.875% 800.0 3.875% October 15, 2031 2029 Senior Notes 800.0 4.000% 800.0 4.000% April 15, 2029 Securitized debt 131.3 (3) — N/A April 6, 2023 Finance lease obligations (4) 81.1 75.2 Various Other 6.8 3.0 Various Total debt 2,905.1 2,353.2 Less: Deferred financing costs 22.5 21.7 Total debt, net 2,882.6 2,331.5 Less: Current portion 65.6 53.0 Total long-term debt, net $ 2,817.0 $ 2,278.5 (1) Interest at LIBOR plus applicable margin of 1.250% as of June 30, 2022. (2) Interest at LIBOR plus applicable margin of 1.250% as of December 31, 2021. (3) Interest at one month LIBOR index plus 70 basis points. (4) New finance lease obligations are a non-cash financing activity. As of June 30, 2022, 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. On May 26, 2021, the Company entered into an additional amendment to the 2019 Credit Agreement. The amendment provided for a $300.0 million delayed draw term loan. 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. The delayed draw term loan has the same terms and conditions as the Company's existing term loans under the 2019 Credit Agreement. On September 21, 2021, the Company entered into an additional amendment to the 2019 Credit Agreement to remove the limit to the amount of netted cash that may be deducted from indebtedness for purposes of calculating certain leverage ratios. The Company had $429.0 million in outstanding borrowings under its revolving credit facility as of June 30, 2022. Total remaining availability under the revolving credit facility was $295.3 million after a $0.7 million reduction for outstanding letters of credit as of June 30, 2022. 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, 2022, the Company had fully drawn down the Accounts Receivable Securitization with borrowings of $131.3 million. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Treasury Stock. As of June 30, 2022, the Company had approximately $834.5 million remaining under its share repurchase authorization. The Company repurchased 4.4 million and 1.6 million shares, under the program, for approximately $117.0 million and $61.6 million during the three months ended June 30, 2022 and 2021, respectively. The Company repurchased 16.6 million and 10.0 million shares, under the program, for approximately $566.2 million and $361.4 million during the six months ended June 30, 2022 and 2021, respectively. 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, 2022 and 2021. 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 $0.2 million and $0.8 million in treasury stock acquired during the three months ended June 30, 2022 and 2021, respectively. The Company acquired approximately $45.8 million and $14.1 million in treasury stock during the six months ended June 30, 2022 and 2021, respectively. (b) AOCL . AOCL consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2022 2021 2022 2021 Foreign Currency Translation Balance at beginning of period $ (112.7) $ (69.4) $ (95.2) $ (58.6) Other comprehensive loss: Foreign currency translation adjustments (1) (57.8) 6.7 (75.3) (4.1) Balance at end of period $ (170.5) $ (62.7) $ (170.5) $ (62.7) Pensions Balance at beginning of period $ (4.0) $ (6.9) $ (4.0) $ (6.9) Other comprehensive loss: Net change from period revaluations — — — — Balance at end of period $ (4.0) $ (6.9) $ (4.0) $ (6.9) (1) In 2022 and 2021, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. |
Other Items
Other Items | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 December 31, 2021 Operating lease obligations $ 104.1 $ 101.7 Wages and benefits 79.1 112.2 Advertising 68.8 72.3 Unearned revenue 60.8 51.5 Taxes 17.7 15.0 Other 197.6 205.8 $ 528.1 $ 558.5 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and 2021 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) 2022 2021 2022 2021 PRSU expense $ 7.9 $ 9.7 $ 16.2 $ 19.3 Option expense — 0.4 — 0.8 RSU/DSU expense 5.1 5.0 10.7 10.1 Total stock-based compensation expense $ 13.0 $ 15.1 $ 26.9 $ 30.2 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 2022, the Company granted PRSUs as a component of the long-term incentive plan ("2022 PRSUs"). The Company has recorded stock-based compensation expense related to the 2022 PRSUs during the three and six months ended June 30, 2022, 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, 2022 | |
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, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 2012 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. The uncertain income tax liability for the Danish Tax Matter for the years 2012 through 2022 (the "2012 to Current Period") at June 30, 2022 and December 31, 2021 is approximately $48.0 million and $50.1 million, respectively, and is reflected in the Company's Condensed Consolidated Balance Sheet in other non-current liabilities. 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, 2022 and December 31, 2021 is approximately $17.6 million and $15.5 million, respectively. As of June 30, 2022, the Company had made the following tax deposits with SKAT related to the Danish Tax Matter for the years 2012 through 2015, which are reflected in the Company's Condensed Consolidated Balance Sheet in other non-current assets: (in millions) USD VAT deposits remaining with SKAT $ 1.4 Deposit payments made through December 31, 2021 43.4 Total $ 44.8 No deposit payments were made in the three or six months ended June 30, 2022. 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 six months ended June 30, 2022. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
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) 2022 2021 2022 2021 Numerator: Net income from continuing operations, net of income attributable to non-controlling interests $ 90.6 $ 141.1 $ 221.3 $ 271.8 Denominator: Denominator for basic earnings per common share-weighted average shares 174.1 197.0 178.3 200.4 Effect of dilutive securities 4.7 7.1 5.4 4.5 Denominator for diluted earnings per common share-adjusted weighted average shares 178.8 204.1 183.7 204.9 Basic earnings per common share $ 0.52 $ 0.72 $ 1.24 $ 1.36 Diluted earnings per common share $ 0.51 $ 0.69 $ 1.20 $ 1.32 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
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 manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S., Canada and Mexico. The International segment consists of manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). On August 2, 2021, the Company acquired Dreams, which is included in the International segment. 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, 2022 December 31, 2021 North America $ 4,635.8 $ 4,360.6 International 1,159.0 1,305.9 Corporate 642.5 730.9 Inter-segment eliminations (2,032.9) (2,074.0) Total assets $ 4,404.4 $ 4,323.4 The following table summarizes property, plant and equipment, net, by segment: (in millions) June 30, 2022 December 31, 2021 North America $ 562.4 $ 449.9 International 78.5 82.3 Corporate 31.9 51.3 Total property, plant and equipment, net $ 672.8 $ 583.5 The following table summarizes operating lease right-of-use assets by segment: (in millions) June 30, 2022 December 31, 2021 North America $ 339.7 $ 280.6 International 167.3 199.0 Corporate 0.7 1.0 Total operating lease right-of-use assets $ 507.7 $ 480.6 The following table summarizes segment information for the three months ended June 30, 2022: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 964.7 $ 246.3 $ — $ — $ 1,211.0 Inter-segment sales $ 0.4 $ 0.5 $ — $ (0.9) $ — Inter-segment royalty expense (income) 2.4 (2.4) — — — Gross profit 365.8 130.7 — — 496.5 Operating income (loss) 146.1 35.8 (38.0) — 143.9 Income (loss) from continuing operations before income taxes 144.8 34.7 (60.0) — 119.5 Depreciation and amortization (1) $ 23.5 $ 5.9 $ 14.6 $ — $ 44.0 Capital expenditures 61.9 6.8 1.2 — 69.9 (1) Depreciation and amortization includes stock-based compensation amortization expense. 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 six months ended June 30, 2022: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,896.1 $ 554.4 $ — $ — $ 2,450.5 Inter-segment sales $ 0.9 $ 0.7 $ — $ (1.6) $ — Inter-segment royalty expense (income) 9.4 (9.4) — — — Gross profit 718.2 301.1 — — 1,019.3 Operating income (loss) 301.5 102.6 (71.6) — 332.5 Income (loss) from continuing operations before income taxes 300.6 101.1 (113.2) — 288.5 Depreciation and amortization (1) $ 46.2 $ 11.9 $ 30.1 $ — $ 88.2 Capital expenditures 112.9 14.6 2.7 — 130.2 (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 property, plant and equipment, net by geographic region: (in millions) June 30, 2022 December 31, 2021 United States $ 573.5 $ 481.1 All Other 99.3 102.4 Total property, plant and equipment, net $ 672.8 $ 583.5 The following table summarizes operating lease right-of-use assets by geographic region: (in millions) June 30, 2022 December 31, 2021 United States $ 331.8 $ 278.3 United Kingdom 135.4 162.8 All Other 40.5 39.5 Total operating lease right-of-use assets $ 507.7 $ 480.6 The following table summarizes net sales by geographic region: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2022 2021 2022 2021 United States $ 890.3 $ 946.3 $ 1,754.6 $ 1,764.8 All Other 320.7 222.8 695.9 448.1 Total net sales $ 1,211.0 $ 1,169.1 $ 2,450.5 $ 2,212.9 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 Asia-Pacific joint ventures to develop markets for Sealy® and Stearns & Foster® branded products and ownership in a United Kingdom joint venture to manufacture, market, and distribute Sealy® and Stearns & Foster® branded products. The Company's ownership interests 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, 2021, included in the 2021 Annual Report filed with the Securities and Exchange Commission on February 22, 2022. 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 |
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. As of June 30, 2022, 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. 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. The allowance for credit losses is included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets. |
Fair Value | Fair Value. 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 Level 2 inputs, which include observable inputs estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of debt instruments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) 2022 2021 Finished goods $ 411.9 $ 297.8 Work-in-process 22.4 11.4 Raw materials and supplies 184.8 154.7 $ 619.1 $ 463.9 |
Summary of Warranty Activity | The Company had the following activity for its accrued warranty expense from December 31, 2021 to June 30, 2022: (in millions) Balance as of December 31, 2021 $ 43.9 Amounts accrued 10.2 Warranties charged to accrual (9.7) Balance as of June 30, 2022 $ 44.4 |
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, 2021 to June 30, 2022: (in millions) Balance as of December 31, 2021 $ 62.1 Amounts accrued 3.8 Write-offs charged against the allowance (3.6) Balance as of June 30, 2022 $ 62.3 |
Schedule of Long Term Debt | The fair values of these material financial instruments are as follows: Fair Value (in millions) June 30, 2022 December 31, 2021 2029 Senior Notes $ 643.8 $ 816.9 2031 Senior Notes $ 601.7 $ 803.7 |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 847.8 $ 91.3 $ 939.1 $ 890.8 $ 114.6 $ 1,005.4 Direct 116.9 155.0 271.9 123.0 40.7 163.7 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 North America International Consolidated North America International Consolidated Product Bedding $ 909.1 $ 205.1 $ 1,114.2 $ 962.5 $ 118.9 $ 1,081.4 Other 55.6 41.2 96.8 51.3 36.4 87.7 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 North America International Consolidated North America International Consolidated Geographical region United States $ 890.3 $ — $ 890.3 $ 946.3 $ — $ 946.3 All Other 74.4 246.3 320.7 67.5 155.3 222.8 Net sales $ 964.7 $ 246.3 $ 1,211.0 $ 1,013.8 $ 155.3 $ 1,169.1 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 six months ended June 30, 2022 and 2021: Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (in millions) North America International Consolidated North America International Consolidated Channel Wholesale $ 1,659.1 $ 204.1 $ 1,863.2 $ 1,656.3 $ 230.5 $ 1,886.8 Direct 237.0 350.3 587.3 240.8 85.3 326.1 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Product Bedding $ 1,774.0 $ 461.6 $ 2,235.6 $ 1,792.8 $ 240.6 $ 2,033.4 Other 122.1 92.8 214.9 104.3 75.2 179.5 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 North America International Consolidated North America International Consolidated Geographical region United States $ 1,754.6 $ — $ 1,754.6 $ 1,764.8 $ — $ 1,764.8 All Other 141.5 554.4 695.9 132.3 315.8 448.1 Net sales $ 1,896.1 $ 554.4 $ 2,450.5 $ 1,897.1 $ 315.8 $ 2,212.9 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price is based on the fair values of the assets acquired and liabilities assumed as of August 2, 2021. The Company continues to obtain information to determine the fair value of acquired assets and liabilities. The components of the preliminary purchase price allocation are as follows: (in millions) Accounts receivable, net $ 3.5 Inventory 51.2 Property, plant and equipment 33.9 Goodwill 357.1 Indefinite-lived intangible asset 141.9 Operating lease right-of-use assets 158.2 Other current and non-current assets 4.4 Accounts payable (55.2) Accrued expenses and other current liabilities (69.7) Operating lease liabilities (165.1) Debt (6.1) Other liabilities (26.9) Purchase price, net of cash acquired $ 427.2 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021 $ 611.5 $ 495.9 $ 1,107.4 Foreign currency translation and other (1.1) (39.7) (40.8) Balance as of June 30, 2022 $ 610.4 $ 456.2 $ 1,066.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | Debt for the Company consists of the following: June 30, 2022 December 31, 2021 (in millions, except percentages) Amount Rate Amount Rate Maturity Date 2019 Credit Agreement: Term A Facility $ 656.9 (1) $ 675.0 (2) October 16, 2024 Revolver 429.0 (1) — (2) October 16, 2024 2031 Senior Notes 800.0 3.875% 800.0 3.875% October 15, 2031 2029 Senior Notes 800.0 4.000% 800.0 4.000% April 15, 2029 Securitized debt 131.3 (3) — N/A April 6, 2023 Finance lease obligations (4) 81.1 75.2 Various Other 6.8 3.0 Various Total debt 2,905.1 2,353.2 Less: Deferred financing costs 22.5 21.7 Total debt, net 2,882.6 2,331.5 Less: Current portion 65.6 53.0 Total long-term debt, net $ 2,817.0 $ 2,278.5 (1) Interest at LIBOR plus applicable margin of 1.250% as of June 30, 2022. (2) Interest at LIBOR plus applicable margin of 1.250% as of December 31, 2021. (3) Interest at one month LIBOR index plus 70 basis points. (4) New finance lease obligations are a non-cash financing activity. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) 2022 2021 2022 2021 Foreign Currency Translation Balance at beginning of period $ (112.7) $ (69.4) $ (95.2) $ (58.6) Other comprehensive loss: Foreign currency translation adjustments (1) (57.8) 6.7 (75.3) (4.1) Balance at end of period $ (170.5) $ (62.7) $ (170.5) $ (62.7) Pensions Balance at beginning of period $ (4.0) $ (6.9) $ (4.0) $ (6.9) Other comprehensive loss: Net change from period revaluations — — — — Balance at end of period $ (4.0) $ (6.9) $ (4.0) $ (6.9) (1) In 2022 and 2021, there were no tax impacts related to foreign currency translation adjustments and no amounts were reclassified to earnings. |
Other Items (Tables)
Other Items (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 December 31, 2021 Operating lease obligations $ 104.1 $ 101.7 Wages and benefits 79.1 112.2 Advertising 68.8 72.3 Unearned revenue 60.8 51.5 Taxes 17.7 15.0 Other 197.6 205.8 $ 528.1 $ 558.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) 2022 2021 2022 2021 PRSU expense $ 7.9 $ 9.7 $ 16.2 $ 19.3 Option expense — 0.4 — 0.8 RSU/DSU expense 5.1 5.0 10.7 10.1 Total stock-based compensation expense $ 13.0 $ 15.1 $ 26.9 $ 30.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Examinations | As of June 30, 2022, the Company had made the following tax deposits with SKAT related to the Danish Tax Matter for the years 2012 through 2015, which are reflected in the Company's Condensed Consolidated Balance Sheet in other non-current assets: (in millions) USD VAT deposits remaining with SKAT $ 1.4 Deposit payments made through December 31, 2021 43.4 Total $ 44.8 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) 2022 2021 2022 2021 Numerator: Net income from continuing operations, net of income attributable to non-controlling interests $ 90.6 $ 141.1 $ 221.3 $ 271.8 Denominator: Denominator for basic earnings per common share-weighted average shares 174.1 197.0 178.3 200.4 Effect of dilutive securities 4.7 7.1 5.4 4.5 Denominator for diluted earnings per common share-adjusted weighted average shares 178.8 204.1 183.7 204.9 Basic earnings per common share $ 0.52 $ 0.72 $ 1.24 $ 1.36 Diluted earnings per common share $ 0.51 $ 0.69 $ 1.20 $ 1.32 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Total Assets and Long-Lived Assets by Segment | The following table summarizes total assets by segment: (in millions) June 30, 2022 December 31, 2021 North America $ 4,635.8 $ 4,360.6 International 1,159.0 1,305.9 Corporate 642.5 730.9 Inter-segment eliminations (2,032.9) (2,074.0) Total assets $ 4,404.4 $ 4,323.4 The following table summarizes property, plant and equipment, net, by segment: (in millions) June 30, 2022 December 31, 2021 North America $ 562.4 $ 449.9 International 78.5 82.3 Corporate 31.9 51.3 Total property, plant and equipment, net $ 672.8 $ 583.5 The following table summarizes operating lease right-of-use assets by segment: (in millions) June 30, 2022 December 31, 2021 North America $ 339.7 $ 280.6 International 167.3 199.0 Corporate 0.7 1.0 Total operating lease right-of-use assets $ 507.7 $ 480.6 |
Segment Financial Information | The following table summarizes segment information for the three months ended June 30, 2022: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 964.7 $ 246.3 $ — $ — $ 1,211.0 Inter-segment sales $ 0.4 $ 0.5 $ — $ (0.9) $ — Inter-segment royalty expense (income) 2.4 (2.4) — — — Gross profit 365.8 130.7 — — 496.5 Operating income (loss) 146.1 35.8 (38.0) — 143.9 Income (loss) from continuing operations before income taxes 144.8 34.7 (60.0) — 119.5 Depreciation and amortization (1) $ 23.5 $ 5.9 $ 14.6 $ — $ 44.0 Capital expenditures 61.9 6.8 1.2 — 69.9 (1) Depreciation and amortization includes stock-based compensation amortization expense. 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 six months ended June 30, 2022: (in millions) North America International Corporate Eliminations Consolidated Net sales $ 1,896.1 $ 554.4 $ — $ — $ 2,450.5 Inter-segment sales $ 0.9 $ 0.7 $ — $ (1.6) $ — Inter-segment royalty expense (income) 9.4 (9.4) — — — Gross profit 718.2 301.1 — — 1,019.3 Operating income (loss) 301.5 102.6 (71.6) — 332.5 Income (loss) from continuing operations before income taxes 300.6 101.1 (113.2) — 288.5 Depreciation and amortization (1) $ 46.2 $ 11.9 $ 30.1 $ — $ 88.2 Capital expenditures 112.9 14.6 2.7 — 130.2 (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. |
Long-Lived Assets by Geographic Region | The following table summarizes property, plant and equipment, net by geographic region: (in millions) June 30, 2022 December 31, 2021 United States $ 573.5 $ 481.1 All Other 99.3 102.4 Total property, plant and equipment, net $ 672.8 $ 583.5 The following table summarizes operating lease right-of-use assets by geographic region: (in millions) June 30, 2022 December 31, 2021 United States $ 331.8 $ 278.3 United Kingdom 135.4 162.8 All Other 40.5 39.5 Total operating lease right-of-use assets $ 507.7 $ 480.6 |
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) 2022 2021 2022 2021 United States $ 890.3 $ 946.3 $ 1,754.6 $ 1,764.8 All Other 320.7 222.8 695.9 448.1 Total net sales $ 1,211.0 $ 1,169.1 $ 2,450.5 $ 2,212.9 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) channel | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Number of products sales channels | channel | 2 | |
Asia Pacific Joint Ventures | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Ownership percentage | 50% | |
United Kingdom Joint Venture | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Ownership percentage | 50% | |
Accrued Expenses And Other Current Liabilities | ||
Warranty Term [Abstract] | ||
Accrued warranty expense | $ 19.8 | $ 20.2 |
Other Noncurrent Liabilities | ||
Warranty Term [Abstract] | ||
Accrued warranty expense | $ 24.6 | $ 23.7 |
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, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Finished goods | $ 411.9 | $ 297.8 |
Work-in-process | 22.4 | 11.4 |
Raw materials and supplies | 184.8 | 154.7 |
Total | $ 619.1 | $ 463.9 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Warranty Activity (Details) - Warranty Reserves $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 43.9 |
Amounts accrued | 10.2 |
Warranties charged to accrual | (9.7) |
Ending balance | $ 44.4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 62.1 | |
Amounts accrued | 3.8 | $ 2.9 |
Write-offs charged against the allowance | (3.6) | |
Ending balance | $ 62.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Fair Value | $ 643.8 | $ 816.9 |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Fair Value | $ 601.7 | $ 803.7 |
Net Sales - Sales (Details)
Net Sales - Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,211 | $ 1,169.1 | $ 2,450.5 | $ 2,212.9 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,211 | 1,169.1 | 2,450.5 | 2,212.9 |
Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 890.3 | 946.3 | 1,754.6 | 1,764.8 |
Operating Segments | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 320.7 | 695.9 | 448.1 | |
Operating Segments | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,114.2 | 1,081.4 | 2,235.6 | 2,033.4 |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 96.8 | 87.7 | 214.9 | 179.5 |
Operating Segments | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 939.1 | 1,005.4 | 1,863.2 | 1,886.8 |
Operating Segments | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 271.9 | 163.7 | 587.3 | 326.1 |
Operating Segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 964.7 | 1,013.8 | 1,896.1 | 1,897.1 |
Operating Segments | North America | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 890.3 | 946.3 | ||
Operating Segments | North America | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 74.4 | 67.5 | 141.5 | 132.3 |
Operating Segments | North America | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 909.1 | 962.5 | 1,774 | 1,792.8 |
Operating Segments | North America | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 55.6 | 51.3 | 122.1 | 104.3 |
Operating Segments | North America | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 847.8 | 890.8 | 1,659.1 | 1,656.3 |
Operating Segments | North America | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 116.9 | 123 | 237 | 240.8 |
Operating Segments | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 246.3 | 155.3 | 554.4 | 315.8 |
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 | 246.3 | 155.3 | 554.4 | 315.8 |
Operating Segments | International | Bedding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 205.1 | 118.9 | 461.6 | 240.6 |
Operating Segments | International | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41.2 | 36.4 | 92.8 | 75.2 |
Operating Segments | International | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 91.3 | 114.6 | 204.1 | 230.5 |
Operating Segments | International | Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 155 | $ 40.7 | $ 350.3 | $ 85.3 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Dreams $ in Millions | Aug. 02, 2021 USD ($) retailLocation |
Business Acquisition [Line Items] | |
Consideration transferred | $ 476.7 |
Cash and equivalents | $ 49.5 |
Number of retail locations | retailLocation | 200 |
Acquisitions (Price Purchase Al
Acquisitions (Price Purchase Allocation) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Aug. 02, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,066.6 | $ 1,107.4 | |
Dreams | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | $ 3.5 | ||
Inventory | 51.2 | ||
Property, plant and equipment | 33.9 | ||
Goodwill | 357.1 | ||
Indefinite-lived intangible asset | 141.9 | ||
Operating lease right-of-use assets | 158.2 | ||
Other current and non-current assets | 4.4 | ||
Accounts payable | (55.2) | ||
Accrued expenses and other current liabilities | (69.7) | ||
Operating lease liabilities | (165.1) | ||
Debt | (6.1) | ||
Other liabilities | (26.9) | ||
Purchase price, net of cash acquired | $ 427.2 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,107.4 |
Foreign currency translation and other | (40.8) |
Ending balance | 1,066.6 |
North America | |
Goodwill [Roll Forward] | |
Beginning balance | 611.5 |
Foreign currency translation and other | (1.1) |
Ending balance | 610.4 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 495.9 |
Foreign currency translation and other | (39.7) |
Ending balance | $ 456.2 |
Debt - Schedule of Borrowings O
Debt - Schedule of Borrowings Outstanding (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Finance lease obligations | $ 81.1 | $ 75.2 |
Total debt | 2,905.1 | 2,353.2 |
Less: Deferred financing costs | 22.5 | 21.7 |
Total debt, net | 2,882.6 | 2,331.5 |
Less: Current portion | 65.6 | 53 |
Total long-term debt, net | 2,817 | 2,278.5 |
Securitized debt | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 131.3 | 0 |
Securitized debt | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Abstract] | ||
Index rate or LIBOR plus (as a percent) | 0.70% | |
Other | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 6.8 | 3 |
2019 Credit Agreement | Revolving Credit Facility | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 429 | $ 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% |
2019 Credit Agreement | Term A Facility | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 656.9 | $ 675 |
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% |
2031 Senior Notes | Senior Notes | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 800 | $ 800 |
Line of Credit Facility [Abstract] | ||
Stated percentage | 3.875% | 3.875% |
2029 Senior Notes | Senior Notes | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long term debt, gross | $ 800 | $ 800 |
Line of Credit Facility [Abstract] | ||
Stated percentage | 4% | 4% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||||||
Jul. 30, 2021 | Jun. 30, 2022 | May 26, 2021 | Apr. 06, 2021 | Feb. 02, 2021 | Oct. 16, 2019 | Apr. 12, 2017 | |
2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 429 | ||||||
Remaining borrowing capacity | 295.3 | ||||||
Accounts Receivable Securitization | Securitized debt | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | $ 200 | $ 120 | |||||
Proceeds from lines of credit | 131.3 | ||||||
Revolving Credit Facility | 2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | $ 725 | $ 425 | |||||
Term Loan Facility | 2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | 425 | ||||||
Incremental Facility | 2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | 550 | ||||||
Letter of Credit | 2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | $ 60 | ||||||
Proceeds from lines of credit | $ 0.7 | ||||||
Delayed Draw Term Loan | 2019 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit borrowing | $ 300 | ||||||
Proceeds from lines of credit | $ 300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Treasury stock, acquired (in shares) | 4.4 | 1.6 | 16.6 | 10 |
Payments for repurchase of common stock | $ 117 | $ 61.6 | $ 566.2 | $ 361.4 |
Value of treasury stock acquired | 117 | 61.6 | 566.2 | 361.4 |
Performance-based Restricted Stock Units | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Value of treasury stock acquired | 0.2 | $ 0.8 | 45.8 | $ 14.1 |
February 2016 Program | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Remaining shares under share repurchase authorization | $ 834.5 | $ 834.5 |
Stockholders' Equity - AOCL (De
Stockholders' Equity - AOCL (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (100,700,000) | $ 318,300,000 | $ 285,800,000 | $ 504,600,000 |
Foreign currency translation adjustments | (57,800,000) | 6,700,000 | (75,300,000) | (4,100,000) |
Balance at end of period | (189,900,000) | 401,600,000 | (189,900,000) | 401,600,000 |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (112,700,000) | (69,400,000) | (95,200,000) | (58,600,000) |
Balance at end of period | (170,500,000) | (62,700,000) | (170,500,000) | (62,700,000) |
Tax expense | 0 | 0 | ||
Net amount reclassified to earnings | 0 | 0 | ||
Pensions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (4,000,000) | (6,900,000) | (4,000,000) | (6,900,000) |
Net change from period revaluations | 0 | 0 | 0 | 0 |
Balance at end of period | $ (4,000,000) | $ (6,900,000) | $ (4,000,000) | $ (6,900,000) |
Other Items (Details)
Other Items (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Operating lease obligations | $ 104,100 | $ 101,700 |
Wages and benefits | 79,100 | 112,200 |
Advertising | 68,800 | 72,300 |
Unearned revenue | 60,800 | 51,500 |
Taxes | 17,700 | 15,000 |
Other | 197,600 | 205,800 |
Total accrued liabilities | $ 528,100 | $ 558,500 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 13 | $ 15.1 | $ 26.9 | $ 30.2 |
PRSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 7.9 | 9.7 | 16.2 | 19.3 |
Option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 0 | 0.4 | 0 | 0.8 |
RSU/DSU expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 5.1 | $ 5 | $ 10.7 | $ 10.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | |||||
Effective income tax provision (as a percent) | 23.70% | 24.10% | 23% | 23.90% | |
Tax liability | $ 48 | $ 48 | $ 50.1 | ||
Tax deposit | 44.8 | 44.8 | |||
Payments Made During Three-Month Period March 2022 | |||||
Income Tax Examination [Line Items] | |||||
Tax deposit | 0 | 0 | |||
Danish Tax Authority (SKAT) | Foreign Tax Authority | Tax Years Post 2011 | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax assets | $ 17.6 | $ 17.6 | $ 15.5 |
Income Taxes - Income Tax Exami
Income Taxes - Income Tax Examination (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Income Tax Examination [Line Items] | |
Tax deposit | $ 44.8 |
VAT deposits remaining with SKAT | |
Income Tax Examination [Line Items] | |
Tax deposit | 1.4 |
Deposit payments made through December 31, 2021 | |
Income Tax Examination [Line Items] | |
Tax deposit | $ 43.4 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income from continuing operations, net of income attributable to non-controlling interests | $ 90.6 | $ 141.1 | $ 221.3 | $ 271.8 |
Denominator: | ||||
Denominator for basic earnings per common share-weighted average shares (in shares) | 174.1 | 197 | 178.3 | 200.4 |
Effect of dilutive securities (in shares) | 4.7 | 7.1 | 5.4 | 4.5 |
Denominator for diluted earnings per common share-adjusted weighted average shares (in shares) | 178.8 | 204.1 | 183.7 | 204.9 |
Basic earnings per common share (in dollars per share) | $ 0.52 | $ 0.72 | $ 1.24 | $ 1.36 |
Diluted earnings per common share (in dollars per share) | $ 0.51 | $ 0.69 | $ 1.20 | $ 1.32 |
Shares excluded from diluted earnings per common share computation as anti-dilutive (in shares) | 0.4 | 0.4 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | segment | 2 | ||||
Segment information [Abstract] | |||||
Total assets | $ 4,404.4 | $ 4,404.4 | $ 4,323.4 | ||
Total property, plant and equipment, net | 672.8 | 672.8 | 583.5 | ||
Operating lease assets | 507.7 | 507.7 | 480.6 | ||
Net sales | 1,211 | $ 1,169.1 | 2,450.5 | $ 2,212.9 | |
Gross profit | 496.5 | 518.2 | 1,019.3 | 977.1 | |
Operating income (loss) | 143.9 | 223.3 | 332.5 | 411.7 | |
Income (loss) from continuing operations before income taxes | 119.5 | 185.4 | 288.5 | 356.8 | |
Depreciation and amortization | 44 | 42.1 | 88.2 | 83.7 | |
Capital expenditures | 69.9 | 29.1 | 130.2 | 52.6 | |
United States | |||||
Segment information [Abstract] | |||||
Total property, plant and equipment, net | 573.5 | 573.5 | 481.1 | ||
Operating lease assets | 331.8 | 331.8 | 278.3 | ||
All Other | |||||
Segment information [Abstract] | |||||
Total property, plant and equipment, net | 99.3 | 99.3 | 102.4 | ||
United Kingdom | |||||
Segment information [Abstract] | |||||
Operating lease assets | 135.4 | 135.4 | 162.8 | ||
All Other | |||||
Segment information [Abstract] | |||||
Operating lease assets | 40.5 | 40.5 | 39.5 | ||
Operating Segments | |||||
Segment information [Abstract] | |||||
Total property, plant and equipment, net | 672.8 | 672.8 | 583.5 | ||
Net sales | 1,211 | 1,169.1 | 2,450.5 | 2,212.9 | |
Operating Segments | United States | |||||
Segment information [Abstract] | |||||
Net sales | 890.3 | 946.3 | 1,754.6 | 1,764.8 | |
Operating Segments | All Other | |||||
Segment information [Abstract] | |||||
Net sales | 320.7 | 695.9 | 448.1 | ||
Operating Segments | All Other | |||||
Segment information [Abstract] | |||||
Net sales | 320.7 | 222.8 | |||
Operating Segments | North America | |||||
Segment information [Abstract] | |||||
Total assets | 4,635.8 | 4,635.8 | 4,360.6 | ||
Total property, plant and equipment, net | 562.4 | 562.4 | 449.9 | ||
Operating lease assets | 339.7 | 339.7 | 280.6 | ||
Net sales | 964.7 | 1,013.8 | 1,896.1 | 1,897.1 | |
Gross profit | 365.8 | 425.4 | 718.2 | 789.3 | |
Operating income (loss) | 146.1 | 217.4 | 301.5 | 390.8 | |
Income (loss) from continuing operations before income taxes | 144.8 | 216.8 | 300.6 | 389.3 | |
Depreciation and amortization | 23.5 | 21.7 | 46.2 | 42.7 | |
Capital expenditures | 61.9 | 22.3 | 112.9 | 41.1 | |
Operating Segments | North America | United States | |||||
Segment information [Abstract] | |||||
Net sales | 890.3 | 946.3 | |||
Operating Segments | North America | All Other | |||||
Segment information [Abstract] | |||||
Net sales | 74.4 | 67.5 | 141.5 | 132.3 | |
Operating Segments | International | |||||
Segment information [Abstract] | |||||
Total assets | 1,159 | 1,159 | 1,305.9 | ||
Total property, plant and equipment, net | 78.5 | 78.5 | 82.3 | ||
Operating lease assets | 167.3 | 167.3 | 199 | ||
Net sales | 246.3 | 155.3 | 554.4 | 315.8 | |
Gross profit | 130.7 | 92.8 | 301.1 | 187.8 | |
Operating income (loss) | 35.8 | 43.4 | 102.6 | 89.6 | |
Income (loss) from continuing operations before income taxes | 34.7 | 42.8 | 101.1 | 88.9 | |
Depreciation and amortization | 5.9 | 3.5 | 11.9 | 7.1 | |
Capital expenditures | 6.8 | 2.6 | 14.6 | 4.6 | |
Operating Segments | International | United States | |||||
Segment information [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Operating Segments | International | All Other | |||||
Segment information [Abstract] | |||||
Net sales | 246.3 | 155.3 | 554.4 | 315.8 | |
Corporate | |||||
Segment information [Abstract] | |||||
Total assets | 642.5 | 642.5 | 730.9 | ||
Total property, plant and equipment, net | 31.9 | 31.9 | 51.3 | ||
Operating lease assets | 0.7 | 0.7 | 1 | ||
Operating income (loss) | (38) | (37.5) | (71.6) | (68.7) | |
Income (loss) from continuing operations before income taxes | (60) | (74.2) | (113.2) | (121.4) | |
Depreciation and amortization | 14.6 | 16.9 | 30.1 | 33.9 | |
Capital expenditures | 1.2 | 4.2 | 2.7 | 6.9 | |
Inter-segment eliminations | |||||
Segment information [Abstract] | |||||
Total assets | (2,032.9) | (2,032.9) | $ (2,074) | ||
Net sales | (0.9) | (0.6) | (1.6) | (1.5) | |
Inter-segment eliminations | North America | |||||
Segment information [Abstract] | |||||
Net sales | 0.4 | 0.5 | 0.9 | 1.2 | |
Inter-segment royalty expense (income) | 2.4 | 2.3 | 9.4 | 4.4 | |
Inter-segment eliminations | International | |||||
Segment information [Abstract] | |||||
Net sales | 0.5 | 0.1 | 0.7 | 0.3 | |
Inter-segment royalty expense (income) | $ (2.4) | $ (2.3) | $ (9.4) | $ (4.4) |