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Acquisitions and Divestitures (Tables) | 3 Months Ended
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Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Schedule of Estimated Purchase Price Consideration | The preliminary purchase price of Mattress Firm as of February 5, 2025 consists of the following items:
(in millions) |
Cash | $ | 3,102.0 |
Common stock of the Company (1) | 2,245.1 |
Effective settlement of pre-existing relationships (2) | 71.6 |
Total consideration | $ | 5,418.7 |
Cash acquired | (267.0) |
Net consideration transferred | $ | 5,151.7 |
(1) | The stock consideration of 34.2 million shares of Somnigroup common stock represents a value of $65.65 per share, which is the simple average of the opening and closing price per share of the Company's common stock on the NYSE on the business day immediately prior to the date of acquisition. This amount includes stock consideration to Mattress Firm employees for equity awards converted into the right to receive merger consideration.
(2) | Represents the effective settlement of Mattress Firm outstanding payables to Somnigroup, net of incentives receivable. No gain or loss was recognized on this settlement.
Schedule of Preliminary Purchase Price Allocation | The preliminary allocation of the purchase price is based on the fair values of the assets acquired and liabilities assumed as of February 5, 2025. The components of the preliminary purchase price allocation are as follows:
(in millions) | February 5, 2025
Accounts receivable, net | $ | 43.1 |
Inventories | 313.1 |
Prepaid expenses and other current assets | 66.7 |
Assets held for sale | 37.6 |
Property and equipment | 193.1 |
Operating lease right-of-use assets | 1,254.1 |
Other non-current assets | 66.6 |
Indefinite-lived trade names | 1,660.0 |
Goodwill | 3,473.0 |
Preliminary fair value of assets acquired | $ | 7,107.3 |
Accounts payable | (113.7) |
Accrued expenses and other current liabilities | (255.7) |
Income taxes payable | (2.4) |
Liabilities held for sale | (32.7) |
Long-term operating lease obligations | (1,287.2) |
Deferred tax liability | (194.2) |
Other non-current liabilities | (59.6) |
Long-term debt | (10.1) |
Preliminary fair value of liabilities assumed | (1,955.6) |
Net consideration transferred | 5,151.7 |
Cash acquired | 267.0 |
Total consideration transferred | $ | 5,418.7 |
Schedule of Business Acquisition, Pro Forma Information | The following represents the unaudited consolidated pro forma financial information for the periods as if Mattress Firm had been included in the consolidated results of the Company since January 1, 2024. Pro forma results do not include the effect of any future synergies anticipated to be achieved from the acquisition, and accordingly, are not necessarily indicative of the results that would have occurred if the acquisition had occurred on the date indicated or that may result in the future.
| (unaudited)
| Three Months Ended March 31,
(in millions) | 2025 |  | 2024
Pro forma net sales | $ | 1,871.8 |  |  | $ | 1,925.2 |
Pro forma net loss | $ | (241.1) |  |  | $ | (33.7) |
Schedule of Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The pro forma amounts have been calculated after applying the Company’s accounting policies and by including the results of Mattress Firm, and adjusting the combined results to give effect to the following, as if the acquisition had been consummated on January 1, 2024, together with the consequential tax effects thereon:
|  | (unaudited)
|  | Three Months Ended March 31,
| (in millions) | 2025 |  | 2024
Pro Forma Adjustments to Net Sales, as Reported: |  |  |
Mattress Firm pre-acquisition net revenue | $ | 345.1 |  |  | $ | 947.6 |
Elimination of intercompany sales to Mattress Firm | (78.0) |  |  | (211.8) |
Total adjustments to net sales | $ | 267.1 |  |  | $ | 735.8 |
Pro Forma Adjustments to Net (Loss) Income, as Reported: |  |  |
Mattress Firm pre-acquisition (loss) earnings (1) | $ | (318.3) |  |  | $ | 19.1 |
Transaction costs (2) | 50.2 |  |  | (50.2) |
Intercompany profit elimination (3) | 62.0 |  |  | (62.0) |
Purchase price allocation adjustments (4) | 16.7 |  |  | (20.1) |
Interest expense adjustments (5) | (2.4) |  |  | (17.2) |
Tax effect of pro forma adjustments (6) | (16.2) |  |  | 20.4 |
Total adjustments to net loss | $ | (208.0) |  |  | $ | (110.0) |
(1) | For the three months ended March 31, 2025, Mattress Firm pre-acquisition loss included a one-time charge of $340.5 million related to stock-based compensation expense recognized when the Mattress Firm Acquisition became probable.
(2) | Represents $50.2 million of transaction costs for professional fees incurred by the Company in connection with the Mattress Firm Acquisition, which were reclassified to the prior year presented in accordance with ASC 805.
(3) | Represents the intercompany profit elimination, which was reclassified to the prior year presented in accordance with ASC 805.
(4) | Represents purchase price allocation adjustments, primarily related to the fair value adjustment of Mattress Firm’s finished goods, which were reclassified to the prior year presented in accordance with ASC 805.
(5) | Represents the net effect of interest expense on borrowings associated with the Mattress Firm Acquisition.
(6) | Represents the income tax (provision) benefit for the above pro forma adjustments, which applies an estimated blended statutory income tax rate of 25.0%.

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- Definition Tabular disclosure of the nature and amount of any material, nonrecurring adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(4) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(3) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
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