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Business Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
In 2024, the Company operated 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, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico. The International segment consists manufacturing, distribution and retail 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. Following the acquisition of Mattress Firm and beginning in the first quarter of 2025, the Company will operate in three segments: Tempur Sealy North America, Tempur Sealy International and Mattress Firm.

The Company sells its products in over 100 countries to over 10,000 wholesale customers. The Company's Direct channel represents 24.9% of the Company's consolidated net sales in 2024, as compared to 23.9% of the Company's consolidated net sales in 2023. Mattress Firm contributed approximately 18% of the Company's consolidated net sales in the years ended 2024 and 2023, respectively.

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

The Company considers its Chairman, President and Chief Executive Officer to be its chief operating decision maker ("CODM"). The Company’s CODM manages business operations, evaluates segment performance and allocates resources based on metrics such as net sales, gross profit, operating income and other key financial indicators, guiding strategic decisions to align with company-wide goals.
The following table summarizes total assets by segment:
December 31,December 31,
(in millions)20242023
North America$5,575.2 $5,291.0 
International1,477.6 1,405.2 
Corporate3,580.0 1,269.5 
Inter-segment eliminations(4,652.4)(3,411.8)
Total assets$5,980.4 $4,553.9 

 The following table summarizes property, plant and equipment, net, by segment:
December 31,December 31,
(in millions)20242023
North America$687.7 $753.8 
International89.6 91.3 
Corporate33.8 33.2 
Total property, plant and equipment, net$811.1 $878.3 
 
The following table summarizes operating lease right-of-use assets by segment:
December 31,December 31,
(in millions)20242023
North America$407.1 $453.5 
International188.6 180.2 
Corporate3.1 2.8 
Total operating lease right-of-use assets$598.8 $636.5 


The following table summarizes segment information for the year ended December 31, 2024:
(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$3,788.9 $1,142.0 $— $— $4,930.9 
Inter-segment sales$0.5 $0.2 $— $(0.7)$— 
Inter-segment royalty expense (income)34.3 (34.3)— — — 
Gross profit1,530.8 649.3 — — 2,180.1 
Advertising expense382.0 88.9 — — 470.9 
Other selling and marketing expense334.7 269.8 16.2 — 620.7 
General, administrative and other expenses202.0 114.6 156.6 — 473.2 
Equity income in earnings of unconsolidated affiliates— (18.9)— — (18.9)
Operating income (loss)612.1 194.9 (172.8)— 634.2 
Interest expense, net134.8 
Other (income) expense(4.9)
Income (loss) before income taxes542.5 208.1 (246.3)— 504.3 
Depreciation and amortization (1)
$127.6 $28.2 $45.7 $— $201.5 
Capital expenditures57.2 30.9 9.2 — 97.3 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the year ended December 31, 2023:
(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$3,855.5 $1,069.9 $— $— $4,925.4 
Inter-segment sales$1.2 $0.5 $— $(1.7)$— 
Inter-segment royalty expense (income)33.7 (33.7)— — — 
Gross profit1,537.5 591.2 — — 2,128.7 
Advertising expense389.9 79.1 — — 469.0 
Other selling and marketing expense319.9 254.0 20.5 — 594.4 
General, administrative and other expenses184.6 110.2 186.3 — 481.1 
Equity income in earnings of unconsolidated affiliates— (23.0)— — (23.0)
Operating income (loss)643.1 170.9 (206.8)— 607.2 
Interest expense, net129.9 
Loss on extinguishment of debt3.2 
Income (loss) before income taxes634.2 171.4 (331.5)— 474.1 
Depreciation and amortization (1)
$102.2 $25.6 $55.2 $— $183.0 
Capital expenditures158.8 18.1 8.5 — 185.4 
(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the year ended December 31, 2022:
(in millions)North AmericaInternationalCorporateEliminationsConsolidated
Net sales$3,886.1 $1,035.1 $— $— $4,921.2 
Inter-segment sales$1.7 $1.1 $— $(2.8)$— 
Inter-segment royalty expense (income)15.0 (15.0)— — — 
Gross profit1,487.3 562.3 — — 2,049.6 
Advertising expense375.1 72.9 — — 448.0 
Other selling and marketing expense288.6 234.8 21.1 — 544.5 
General, administrative and other expenses181.2 88.5 127.9 — 397.6 
Equity income in earnings of unconsolidated affiliates— (21.1)— — (21.1)
Operating income (loss)642.4 187.2 (149.0)— 680.6 
Interest expense, net103.0 
Other (income) expense0.4 
Income (loss) from continuing operations before income taxes638.6 183.4 (244.8)— 577.2 
Depreciation and amortization (1)
$96.9 $23.7 $59.6 $— $180.2 
Capital expenditures267.4 33.1 6.0 — 306.5 
(1)Depreciation and amortization includes stock-based compensation amortization expense.
    The following table summarizes property, plant and equipment, net, by geographic region:
December 31,December 31,
(in millions)
20242023
United States$704.1 $764.1 
All other107.0 114.2 
Total property, plant and equipment, net
$811.1 $878.3 

The following table summarizes operating lease right-of-use assets by geographic region:
December 31,December 31,
(in millions)
20242023
United States$401.0 $444.2 
United Kingdom150.7 146.5 
All other47.1 45.8 
Total operating lease right-of-use assets
$598.8 $636.5 

The following table summarizes net sales by geographic region:
Year Ended December 31,
(in millions)202420232022
United States$3,490.1 $3,560.8 $3,596.0 
All other1,440.8 1,364.6 1,325.2 
Total net sales$4,930.9 $4,925.4 $4,921.2