What changed in this filing

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Item 1. Financial Statements

2022-11-09 compared with 2022-08-03 · 111 added, 102 removed, 511 unchanged (29% of the section changed)

4 unchanged sentences

($ in millions, except per common share amounts)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2022 2021 2022 2021

9 unchanged sentences

Loss on extinguishment of debt — — — 23.0

Other expense (income), net 0.7 ( 0.1 ) ( 0.6 ) ( 0.4 )

Other (income) expense, net ( 0.9 ) 0.1 ( 1.5 ) ( 0.3 )

Total other expense, net 25.9 13.6 69.9 68.5

8 unchanged sentences

Earnings per common share:

Basic $ 0.52 $ 0.72 $ 1.24 $ 1.36

Diluted $ 0.51 $ 0.69 $ 1.20 $ 1.32

Earnings per share for continuing operations $ 0.78 $ 0.91 $ 2.01 $ 2.26

Loss per share for discontinued operations ( 0.01 ) — — —

Earnings per share $ 0.77 $ 0.91 $ 2.01 $ 2.26

Earnings per share for continuing operations $ 0.75 $ 0.87 $ 1.95 $ 2.18

Loss per share for discontinued operations — — — —

Earnings per share $ 0.75 $ 0.87 $ 1.95 $ 2.18

Weighted average common shares outstanding:

6 unchanged sentences

($ in millions)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2022 2021 2022 2021

2 unchanged sentences

Foreign currency translation adjustments ( 64.8 ) ( 29.9 ) ( 140.1 ) ( 34.0 )

Other comprehensive (loss) income, net of tax ( 57.8 ) 6.7 ( 75.3 ) ( 4.1 )

Other comprehensive loss, net of tax ( 64.8 ) ( 29.9 ) ( 140.1 ) ( 34.0 )

Comprehensive income 68.4 147.5 215.2 414.5

7 unchanged sentences

($ in millions)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

ASSETS (Unaudited)

30 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY

($ in millions)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Tempur Sealy International, Inc.

Stockholders' Equity

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

Stockholders' (Deficit) Equity

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders'

(Deficit) Equity

Shares Issued At Par Shares Issued At Cost Additional Paid in Capital Retained Earnings

Balance as of March 31, 2022

Balance as of June 30, 2022

$ 9.0 283.8 $ 2.8 111.4 $ ( 3,381.3 ) $ 573.6 $ 2,789.5 $ ( 174.5 ) $ ( 189.9 )

12 unchanged sentences

Amortization of unearned stock-based compensation

Balance, June 30, 2022

Balance, September 30, 2022

$ 9.3 283.8 $ 2.8 112.4 $ ( 3,405.8 ) $ 585.3 $ 2,904.4 $ ( 239.3 ) $ ( 152.6 )

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Tempur Sealy International, Inc.

Stockholders' Equity

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Non-controlling Interest in Subsidiaries Total Stockholders' Equity

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

Shares Issued At Par Shares Issued At Cost Additional Paid in Capital Retained Earnings

Balance as of March 31, 2021

Balance as of June 30, 2021

$ 8.5 283.8 $ 2.8 87.3 $ ( 2,416.6 ) $ 597.1 $ 2,287.9 $ ( 69.6 ) $ 401.6

1 unchanged sentence

Net loss attributable to non-controlling interests — —

Purchase of remaining interest in subsidiary ( 3.4 ) ( 1.2 ) ( 4.6 )

Foreign currency adjustments, net of tax ( 29.9 ) ( 29.9 )

8 unchanged sentences

Amortization of unearned stock-based compensation

Balance, June 30, 2021

Balance, September 30, 2021

$ 8.5 283.8 $ 2.8 91.0 $ ( 2,595.8 ) $ 608.0 $ 2,447.0 $ ( 99.5 ) $ 362.5

2 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (CONTINUED)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (CONTINUED)

($ in millions)

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Tempur Sealy International, Inc.

Stockholders' Equity

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity

Stockholders' Equity (Deficit)

Non-controlling Interest Common Stock Treasury Stock Accumulated Other Comprehensive Loss Total Stockholders' Equity (Deficit)

Shares Issued At Par Shares Issued At Cost Additional Paid in Capital Retained Earnings

14 unchanged sentences

Amortization of unearned stock-based compensation

Balance, June 30, 2022

Balance, September 30, 2022

$ 9.3 283.8 $ 2.8 112.4 $ ( 3,405.8 ) $ 585.3 $ 2,904.4 $ ( 239.3 ) $ ( 152.6 )

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Tempur Sealy International, Inc.

5 unchanged sentences

Net income 448.7 448.7

Net (loss) attributable to non-controlling interests ( 0.4 ) 0.2 0.2

Net (loss) income attributable to non-controlling interests ( 0.4 ) 0.2 0.2

Purchase of remaining interest in subsidiary ( 3.4 ) ( 1.2 ) ( 4.6 )

9 unchanged sentences

Amortization of unearned stock-based compensation

Balance, June 30, 2021

Balance, September 30, 2021

$ 8.5 283.8 $ 2.8 91.0 $ ( 2,595.8 ) $ 608.0 $ 2,447.0 $ ( 99.5 ) $ — $ 362.5

4 unchanged sentences

($ in millions) (unaudited)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS:

26 unchanged sentences

Repayments of finance lease obligations and other ( 12.6 ) ( 9.5 )

Net cash used in financing activities from continuing operations ( 110.2 ) ( 260.5 )

Net cash used in continuing operations ( 172.8 ) ( 5.4 )

Net cash (used in) provided by financing activities from continuing operations ( 234.1 ) 356.4

Net cash (used in) provided by continuing operations ( 175.4 ) 445.9

Net operating cash flows used in discontinued operations ( 0.8 ) ( 0.8 )

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS ( 30.4 ) ( 6.8 )

Decrease in cash and cash equivalents ( 190.4 ) ( 6.9 )

(Decrease) increase in cash and cash equivalents ( 206.6 ) 438.3

CASH AND CASH EQUIVALENTS, beginning of period 300.7 65.0

29 unchanged sentences

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,

September 30, December 31,

(in millions) 2022 2021

15 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The Company had the following activity for its accrued warranty expense from December 31, 2021 to June 30, 2022:

The Company had the following activity for its accrued warranty expense from December 31, 2021 to September 30, 2022:

(in millions)

2 unchanged sentences

Warranties charged to accrual ( 14.4 )

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.

Balance as of September 30, 2022 $ 42.6

As of September 30, 2022 and December 31, 2021, $ 18.6 million and $ 20.2 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $ 24.0 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 .

2 unchanged sentences

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.

As of September 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.

1 unchanged sentence

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:

The Company had the following activity for its allowance for credit losses from December 31, 2021 to September 30, 2022:

(in millions)

2 unchanged sentences

Write-offs charged against the allowance ( 5.1 )

Balance as of June 30, 2022

Balance as of September 30, 2022

(e) Fair Value.

4 unchanged sentences

The fair values of these material financial instruments are as follows:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

2029 Senior Notes $ 633.8 $ 816.9

4 unchanged sentences

(2) 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

Three Months Ended September 30, 2022 Three Months Ended September 30, 2021

(in millions) North America International Consolidated North America International Consolidated

11 unchanged sentences

Net sales $ 1,057.7 $ 225.6 $ 1,283.3 $ 1,120.0 $ 238.3 $ 1,358.3

Six Months Ended June 30, 2022 Six Months Ended June 30, 2021

Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021

(in millions) North America International Consolidated North America International Consolidated

21 unchanged sentences

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:

The final allocation of the purchase price is based on the fair values of the assets acquired and liabilities assumed as of August 2, 2021, which included the following:

(in millions)

20 unchanged sentences

Foreign currency translation and other ( 5.6 ) ( 69.5 ) ( 75.1 )

Balance as of June 30, 2022 $ 610.4 $ 456.2 $ 1,066.6

Balance as of September 30, 2022 $ 605.9 $ 426.4 $ 1,032.3

TEMPUR SEALY INTERNATIONAL, INC.

2 unchanged sentences

Debt for the Company consists of the following:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions, except percentages) Amount Rate Amount Rate Maturity Date

4 unchanged sentences

2029 Senior Notes 800.0 4.000 % 800.0 4.000 % April 15, 2029

Securitized debt 131.3 (3) — N/A April 6, 2023

Securitized debt 169.2 (3) — (3) April 6, 2023

Finance lease obligations (4)

6 unchanged sentences

Total long-term debt, net $ 2,731.4 $ 2,278.5

(1) Interest at LIBOR plus applicable margin of 1.250 % as of June 30, 2022.

(1) Interest at LIBOR plus applicable margin of 1.250 % as of September 30, 2022.

(2) Interest at LIBOR plus applicable margin of 1.250 % as of December 31, 2021.

1 unchanged sentence

(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.

As of September 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 provided 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.

4 unchanged sentences

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.

The delayed draw term loan had 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.

The Company had $ 299.0 million in outstanding borrowings under its revolving credit facility as of September 30, 2022.

Total remaining availability under the revolving credit facility was $ 425.4 million after a $ 0.6 million reduction for outstanding letters of credit as of September 30, 2022.

Securitized Debt

3 unchanged sentences

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.

As of September 30, 2022, the Company had fully drawn down the Accounts Receivable Securitization with borrowings of $ 169.2 million.

(6) 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.

As of September 30, 2022, the Company had approximately $ 809.5 million remaining under its share repurchase authorization.

The Company repurchased 1.0 million and 4.1 million shares, under the program, for approximately $ 25.0 million and $ 190.0 million during the three months ended September 30, 2022 and 2021, respectively.

The Company repurchased 17.6 million and 14.1 million shares, under the program, for approximately $ 591.2 million and $ 551.4 million during the nine months ended September 30, 2022 and 2021, respectively.

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 $ 0.3 million in treasury stock acquired during the three months ended September 30, 2022 and 2021, respectively.

The Company acquired approximately $ 46.0 million and $ 14.4 million in treasury stock during the nine months ended September 30, 2022 and 2021, respectively.

AOCL consisted of the following:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(in millions) 2022 2021 2022 2021

16 unchanged sentences

Accrued expenses and other current liabilities consisted of the following:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

Operating lease obligations $ 100.6 $ 101.7

2 unchanged sentences

Unearned revenue 63.3 51.5

Taxes 17.7 15.0

Other 233.4 220.8

1 unchanged sentence

(8) 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").

The Company's stock-based compensation expense for the three and nine months ended September 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,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2022 2021 2022 2021

6 unchanged sentences

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.

The Company has recorded stock-based compensation expense related to the 2022 PRSUs during the three and nine months ended September 30, 2022, as it was probable that the Company would achieve the specified performance target for the performance period.

(9) Commitments and Contingencies

2 unchanged sentences

(10) Income Taxes

The Company's effective tax rate for the three months ended June 30, 2022 and 2021 was 23.7 % and 24.1 %, respectively.

The Company's effective tax rate for the six months ended June 30, 2022 and 2021 was 23.0 % and 23.9 %, respectively.

The Company's effective tax rate for the three and six months ended June 30, 2022 and 2021 differed from the U.S.

The Company's effective tax rate for the three months ended September 30, 2022 and 2021 was 23.5 % and 24.9 %, respectively.

The Company's effective tax rate for the nine months ended September 30, 2022 and 2021 was 23.2 % and 24.3 %, respectively.

The Company's effective tax rate for the three and nine months ended September 30, 2022 and 2021 differed from the U.S.

federal statutory rate of 21.0% principally due to subpart F income (i.e., global intangible low-taxed income, or "GILTI," earned by the Company's foreign subsidiaries), foreign income tax rate differentials, state and local taxes, changes in the Company's uncertain tax positions, the excess tax benefit related to stock-based compensation and certain other permanent items.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, which includes a minimum tax equal to 15% of the adjusted financial statement income of certain corporations, as well as a 1% excise tax on share buybacks, effective for the Company beginning January 1, 2023.

When effective, it is possible that the minimum tax could result in an additional tax liability over the regular federal corporate tax liability in a given year based on differences between book and taxable income (including as a result of temporary differences).

Given its recent pronouncement, it is unclear at this time what, if any, impact the Inflation Reduction Act of 2022 will have on the Company's tax rate and financial results.

We will continue to evaluate its impact as further information becomes available.

The Company has been involved in a dispute with the Danish Tax Authority ("SKAT") regarding the royalty paid by a U.S.

3 unchanged sentences

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 uncertain income tax liability for the Danish Tax Matter for the years 2012 through 2022 (the "2012 to Current Period") at September 30, 2022 and December 31, 2021 is approximately $ 46.1 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:

correlative benefit associated with the accrual of Danish tax for the 2012 to Current Period at September 30, 2022 and December 31, 2021 is approximately $ 19.1 million and $ 15.5 million, respectively.

As of September 30, 2022, the Company had made the following tax deposits related to assessments received by SKAT for 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

1 unchanged sentence

Deposit payments made through December 31, 2021 40.6

No deposit payments were made in the three or six months ended June 30, 2022.

No deposit payments were made in the three or nine months ended September 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.

There were no other significant changes in the Danish Tax Matter or other uncertain tax positions during the nine months ended September 30, 2022.

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

(11) 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,

Three Months Ended Nine Months Ended

September 30, September 30,

(in millions, except per common share amounts) 2022 2021 2022 2021

5 unchanged sentences

Diluted earnings per common share $ 0.75 $ 0.87 $ 1.95 $ 2.18

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The Company excluded 0.4 million shares from the diluted earnings per common share computation because their exercise price was greater than the average market price of Tempur Sealy International's common stock or they were otherwise anti-dilutive for the three and six months ended June 30, 2022.

The Company excluded an immaterial number of shares for the three and six months ended June 30, 2021.

The Company excluded 1.5 million and 0.8 million shares from the diluted earnings per common share computation because their exercise price was greater than the average market price of Tempur Sealy International's common stock or they were otherwise anti-dilutive for the three and nine months ended September 30, 2022.

The Company excluded an immaterial number of shares for the three and nine months ended September 30, 2021.

Holders of non-vested stock-based compensation awards do not have voting rights but do participate in dividends declared upon the award vesting.

11 unchanged sentences

The following table summarizes total assets by segment:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

North America $ 5,010.3 $ 4,360.6

3 unchanged sentences

Total assets $ 4,351.7 $ 4,323.4

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The following table summarizes property, plant and equipment, net, by segment:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

North America $ 619.7 $ 449.9

3 unchanged sentences

The following table summarizes operating lease right-of-use assets by segment:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

North America $ 336.7 $ 280.6

2 unchanged sentences

Total operating lease right-of-use assets $ 490.0 $ 480.6

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The following table summarizes segment information for the three months ended June 30, 2022:

The following table summarizes segment information for the three months ended September 30, 2022:

(in millions) North America International Corporate Eliminations Consolidated

9 unchanged sentences

(1) Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the three months ended June 30, 2021:

The following table summarizes segment information for the three months ended September 30, 2021:

(in millions) North America International Corporate Eliminations Consolidated

9 unchanged sentences

(1) Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the six months ended June 30, 2022:

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The following table summarizes segment information for the nine months ended September 30, 2022:

(in millions) North America International Corporate Eliminations Consolidated

9 unchanged sentences

(1) Depreciation and amortization includes stock-based compensation amortization expense.

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The following table summarizes segment information for the six months ended June 30, 2021:

The following table summarizes segment information for the nine months ended September 30, 2021:

(in millions) North America International Corporate Eliminations Consolidated

11 unchanged sentences

(in millions)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

United States

4 unchanged sentences

The following table summarizes operating lease right-of-use assets by geographic region:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

United States $ 328.5 $ 278.3

2 unchanged sentences

Total operating lease right-of-use assets $ 490.0 $ 480.6

TEMPUR SEALY INTERNATIONAL, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (unaudited) (continued)

The following table summarizes net sales by geographic region:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(in millions) 2022 2021 2022 2021

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements