What changed in this filing

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Item 1. Financial Statements

2025-11-07 compared with 2025-08-08 · 101 added, 91 removed, 692 unchanged (22% 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,

2025 2024 2025 2024

12 unchanged sentences

Income before income taxes 233.9 170.6 287.3 408.6

Income tax (provision) benefit ( 3.2 ) ( 34.0 ) 13.3 ( 54.7 )

Income tax provision ( 56.2 ) ( 40.8 ) ( 42.9 ) ( 95.5 )

Net income before non-controlling interest 177.7 129.8 244.4 313.1

Net income attributable to non-controlling interest 0.5 0.4 0.8 0.9

Net income (loss) attributable to non-controlling interest 0.3 ( 0.2 ) 1.1 0.7

Net income attributable to Somnigroup International Inc.

11 unchanged sentences

($ in millions)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Net income before non-controlling interest $ 177.7 $ 129.8 $ 244.4 $ 313.1

Other comprehensive income (loss), net of tax:

Other comprehensive (loss) income, net of tax:

Foreign currency translation adjustments ( 13.9 ) 37.0 84.6 14.0

Net change in pension benefits, net of tax — — 0.6 ( 0.3 )

Other comprehensive income (loss), net of tax 68.8 ( 7.5 ) 99.1 ( 23.3 )

Other comprehensive (loss) income, net of tax ( 13.9 ) 37.0 85.2 13.7

Comprehensive income 163.8 166.8 329.6 326.8

Comprehensive income attributable to non-controlling interest 0.5 0.4 0.8 0.9

Comprehensive income (loss) attributable to non-controlling interest 0.3 ( 0.2 ) 1.1 0.7

Comprehensive income attributable to Somnigroup International Inc.

5 unchanged sentences

($ in millions)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

ASSETS (unaudited)

34 unchanged sentences

($ in millions) (unaudited)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Somnigroup International Inc.

2 unchanged sentences

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

Balance as of March 31, 2025

Balance as of June 30, 2025

$ 8.9 283.8 $ 2.8 73.9 $ ( 1,665.5 ) $ 1,017.0 $ 3,574.5 $ ( 87.7 ) $ 2,841.1

10 unchanged sentences

Amortization of unearned stock-based compensation

Balance as of June 30, 2025

Balance as of September 30, 2025

$ 8.9 283.8 $ 2.8 73.9 $ ( 1,664.7 ) $ 1,028.7 $ 3,720.2 $ ( 101.6 ) $ 2,985.4

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Somnigroup International Inc.

2 unchanged sentences

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

Balance as of March 31, 2024

Balance as of June 30, 2024

$ 8.9 283.8 $ 2.8 110.2 $ ( 3,331.0 ) $ 484.3 $ 3,415.7 $ ( 160.0 ) $ 411.8

10 unchanged sentences

Amortization of unearned stock-based compensation

Balance as of June 30, 2024

Balance as of September 30, 2024

$ 8.7 283.8 $ 2.8 110.2 $ ( 3,330.8 ) $ 492.7 $ 3,522.8 $ ( 123.0 ) $ 564.5

4 unchanged sentences

($ in millions)

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Somnigroup International Inc.

18 unchanged sentences

Amortization of unearned stock-based compensation

Balance as of June 30, 2025

Balance as of September 30, 2025

$ 8.9 283.8 $ 2.8 73.9 $ ( 1,664.7 ) $ 1,028.7 $ 3,720.2 $ ( 101.6 ) $ 2,985.4

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Somnigroup International Inc.

16 unchanged sentences

Amortization of unearned stock-based compensation

Balance as of June 30, 2024

Balance as of September 30, 2024

$ 8.7 283.8 $ 2.8 110.2 $ ( 3,330.8 ) $ 492.7 $ 3,522.8 $ ( 123.0 ) $ 564.5

4 unchanged sentences

($ in millions)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

15 unchanged sentences

Acquisitions, net of cash acquired ( 2,824.5 ) —

Purchases of investments ( 23.4 ) —

Other 8.1 0.5

51 unchanged sentences

Total cash, cash equivalents and restricted cash consisted of the following:

June 30, December 31,

September 30, December 31,

(in millions) 2025 2024

7 unchanged sentences

Inventories are stated at the lower of cost or net realizable value, determined by either the first-in, first-out method or the weighted average cost method, depending on reportable segment , and consist of the following:

June 30, December 31,

September 30, December 31,

(in millions) 2025 2024

8 unchanged sentences

The Company considers the impact of recoverable salvage value on warranty costs in determining its estimate of future warranty obligations.

The Company had the following activity for its accrued warranty expense from December 31, 2024 to June 30, 2025:

The Company had the following activity for its accrued warranty expense from December 31, 2024 to September 30, 2025:

(in millions)

Balance as of December 31, 2024 $ 33.6

Amounts accrued 10.1

Liabilities assumed as a result of Mattress Firm Acquisition 25.3

Amounts accrued 16.6

Warranties charged to accrual ( 16.5 )

Balance as of June 30, 2025 $ 59.6

As of June 30, 2025 and December 31, 2024, $ 24.0 million and $ 15.3 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $ 35.6 million and $ 18.3 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, 2025 $ 59.0

As of September 30, 2025 and December 31, 2024, $ 23.2 million and $ 15.3 million of accrued warranty expense is included as a component of accrued expenses and other current liabilities and $ 35.8 million and $ 18.3 million of accrued warranty expense is included in other non-current liabilities on the Company's accompanying Condensed Consolidated Balance Sheets, respectively.

(e) Allowance for Credit Losses .

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, 2025, the Company's accounts receivable were substantially current.

As of September 30, 2025, the Company's accounts receivable were substantially current.

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.

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, 2024 to June 30, 2025:

The Company had the following activity for its allowance for credit losses from December 31, 2024 to September 30, 2025:

(in millions)

2 unchanged sentences

Write-offs charged against the allowance ( 42.2 )

Balance as of June 30, 2025

Balance as of September 30, 2025

SOMNIGROUP INTERNATIONAL INC.

7 unchanged sentences

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

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

2029 Senior Notes $ 768.5 $ 739.1

9 unchanged sentences

Prior to the Mattress Firm Acquisition, the Company recorded retail store occupancy costs in selling and marketing expenses.

For the three and six months ended June 30, 2024, retail store occupancy costs of $ 36.7 million and $ 74.9 million, respectively, were reclassified to cost of sales in the accompanying consolidated financial statements and notes thereto to conform to the current period presentation.

For the three and nine months ended September 30, 2024, retail store occupancy costs of $ 38.4 million and $ 113.3 million, respectively, were reclassified to cost of sales in the accompanying consolidated financial statements and notes thereto to conform to the current period presentation.

(h) Vendor Incentives.

The Company's Mattress Firm business segment earns various types of incentives from its suppliers related to purchase volume rebates, sales, reimbursements of certain sales and marketing expenses, long-term supply agreements and other ordinary course transactions, collectively referred to as vendor incentives.

Amounts earned for vendor incentives are recorded within accounts receivable, net until realized and are not material to the Company's Condensed Consolidated Balance Sheets.

Amounts earned for vendor incentives are recorded within accounts payable until realized and are not material to the Company's Condensed Consolidated Balance Sheets.

Vendor incentives are generally recorded as a reduction of inventory at the time of purchase and, subsequently, as a reduction to cost of sales when the product is sold.

9 unchanged sentences

(2) Net Sales

The following table presents the Company's disaggregated revenue by channel and geographical region, including a reconciliation of disaggregated revenue by segment, for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

Three Months Ended September 30, 2025 Three Months Ended September 30, 2024

(in millions) Tempur Sealy North America Tempur Sealy International Mattress Firm Consolidated Tempur Sealy North America Tempur Sealy International Mattress Firm Consolidated

8 unchanged sentences

Substantially all revenue is associated with bedding product sales.

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

(in millions) Tempur Sealy North America Tempur Sealy International Mattress Firm Consolidated Tempur Sealy North America Tempur Sealy International Mattress Firm Consolidated

21 unchanged sentences

The Company accounted for this transaction as a business combination in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations .

Mattress Firm's financial results for the periods from April 1, 2025 through June 30, 2025 and February 5, 2025 through June 30, 2025 (the "stub period") are included in the Company's Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025, respectively.

Mattress Firm's financial results for the periods from July 1, 2025 through September 30, 2025 and February 5, 2025 through September 30, 2025 (the "stub period") are included in the Company's Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2025, respectively.

On May 1, 2025, the Company completed the previously announced divestiture of 73 Mattress Firm retail locations and the Company's Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers to MW SO Holdings Company, LLC ("Mattress Warehouse").

In the three months ended June 30, 2025, the Company recorded a $ 13.9 million loss on disposal of business associated with the divestiture, net of proceeds of $ 9.0 million.

In the nine months ended September 30, 2025, the Company recorded a $ 13.9 million loss on disposal of business associated with the divestiture, net of proceeds of $ 9.0 million.

The Company does not expect the divestiture to have a material impact on its results of operations for the twelve months ended December 31, 2025.

43 unchanged sentences

Total consideration transferred $ 5,418.7 $ ( 10.5 ) $ 5,408.2

(1) Represents valuation adjustments to operating leases and property and equipment during the measurement period.

(1) Represents valuation adjustments to trade name, operating leases and property and equipment during the measurement period.

(2) Represents the income tax effect for the preliminary purchase price allocation adjustments.

13 unchanged sentences

Transaction Costs

The Company incurred an immaterial amount of transaction costs related to the Mattress Firm Acquisition during the three months ended June 30, 2025, and $ 7.3 million in the three months ended June 30, 2024.

The Company incurred $ 50.2 million of transaction costs related to the Mattress Firm Acquisition during the six months ended June 30, 2025 compared to $ 22.1 million in the six months ended June 30, 2024.

The Company incurred an immaterial amount of transaction costs related to the Mattress Firm Acquisition during the three months ended September 30, 2025 and $ 13.7 million in the three months ended September 30, 2024.

The Company incurred $ 50.2 million of transaction costs related to the Mattress Firm Acquisition during the nine months ended September 30, 2025 compared to $ 35.8 million in the nine months ended September 30, 2024.

Transaction costs primarily included legal and professional fees associated with the Mattress Firm Acquisition.

Consolidated Results of Operations

The business acquired in the Mattress Firm Acquisition contributed revenue of $ 948.8 million and $ 1,542.5 million for the three and six months ended June 30, 2025, respectively and contributed net income of $ 52.3 million and $ 53.1 million for the three and six months ended June 30, 2025, respectively.

The business acquired in the Mattress Firm Acquisition contributed revenue of $ 1,070.8 million and $ 2,613.3 million for the three and nine months ended September 30, 2025, respectively and contributed net income of $ 66.7 million and $ 119.8 million for the three and nine months ended September 30, 2025, respectively.

Unaudited Pro Forma Financial Information

2 unchanged sentences

(unaudited) (unaudited)

Three Months Ended June 30, Six Months Ended June 30,

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

(in millions) 2025 2024 2025 2024

Pro forma net sales $ 2,122.6 $ 2,117.6 $ 5,875.2 $ 6,015.7

Pro forma net income (loss) $ 99.0 $ 117.3 $ ( 129.8 ) $ 83.6

Pro forma net income $ 177.4 $ 134.1 $ 33.6 $ 217.7

SOMNIGROUP INTERNATIONAL INC.

2 unchanged sentences

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 Six months ended

(in millions) June 30, 2024 June 30, 2025 June 30, 2024

(unaudited) Three months ended Nine months ended

(in millions) September 30, 2024 September 30, 2025 September 30, 2024

Pro Forma Adjustments to Net Sales, as Reported:

1 unchanged sentence

Elimination of intercompany sales to Mattress Firm (7)

( 244.7 ) ( 78.0 ) ( 698.9 )

Total adjustments to net sales $ 817.6 $ 267.1 $ 2,292.7

13 unchanged sentences

Total adjustments to net income (loss) $ 4.1 $ ( 209.7 ) $ ( 94.7 )

(1) For the six months ended June 30, 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.

(1) For the nine months ended September 30, 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 unchanged sentences

(6) Represents the income tax benefit (provision) for the above pro forma adjustments, which applies an estimated blended statutory income tax rate of 25.0 %.

(7) For the nine months ended September 30, 2024, intercompany sales to Mattress Firm of $ 698.9 million were comprised of $ 220.7 million, $ 233.5 million and $ 244.7 million of sales in the first, second and third quarters, respectively.

The following summarizes changes to the Company's goodwill, by segment:

3 unchanged sentences

Foreign currency translation and other 2.9 30.9 — 33.8

Balance as of June 30, 2025 $ 607.2 $ 502.0 $ 3,476.0 $ 4,585.2

Balance as of September 30, 2025 $ 606.0 $ 494.5 $ 3,324.7 $ 4,425.2

SOMNIGROUP INTERNATIONAL INC.

2 unchanged sentences

Debt for the Company consists of the following:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

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

14 unchanged sentences

Total long-term debt, net $ 4,511.5 $ 3,740.4

(1) Interest at SOFR index plus 10 basis points of credit spread adjustment, plus applicable margin of 1.625 % as of June 30, 2025.

(1) Interest at SOFR index plus 10 basis points of credit spread adjustment, plus applicable margin of 1.625 % as of September 30, 2025.

(2) Interest at SOFR index plus 10 basis points of credit spread adjustment, plus applicable margin of 1.250 % as of December 31, 2024.

(3) Term B Interest at SOFR index plus applicable margin of 2.250 % as of June 30, 2025.

(3) Term B Interest at SOFR index plus applicable margin of 2.250 % as of September 30, 2025.

(4) Term B Interest at SOFR index plus applicable margin of 2.500 % as of December 31, 2024.

1 unchanged sentence

(6) New finance lease obligations are a non-cash financing activity.

As of June 30, 2025, the Company was in compliance with all applicable debt covenants.

As of September 30, 2025, the Company was in compliance with all applicable debt covenants.

2023 Credit Agreement

27 unchanged sentences

The repriced Term B Loan is subject to a prepayment premium in connection with certain repricing transactions that may occur on or prior to the six-month anniversary of Amendment No.

The Company had outstanding borrowings of $ 481.5 million under the revolving credit facility as of June 30, 2025.

Total availability under the revolving facility was $ 707.7 million, after a $ 0.8 million reduction for outstanding letters of credit, as of June 30, 2025.

On August 26, 2025, the Company prepaid $ 100.0 million of the outstanding Term B Loan (including accrued and unpaid interest in respect thereof).

The Company also prepaid $ 150.0 million of the outstanding Term B Loan on October 3, 2025.

These prepayments were funded with operating cash flows.

The Company had outstanding borrowings of $ 303.5 million under the revolving credit facility as of September 30, 2025.

Total availability under the revolving facility was $ 885.7 million, after a $ 0.8 million reduction for outstanding letters of credit, as of September 30, 2025.

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").

As of June 30, 2025, there was no availability under the Accounts Receivable Securitization.

As of September 30, 2025, there was no availability under the Accounts Receivable Securitization.

While subject to a $ 150.0 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.

Future Obligations

As of June 30, 2025, the scheduled maturities of long-term debt outstanding, excluding finance lease obligations, for each of the next five years and thereafter are as follows:

As of September 30, 2025, the scheduled maturities of long-term debt outstanding, excluding finance lease obligations, for each of the next five years and thereafter are as follows:

(in millions)

7 unchanged sentences

(a) Treasury Stock.

As of June 30, 2025, the Company had approximately $ 774.5 million remaining under its share repurchase authorization.

The Company did not repurchase shares under the program during the three and six months ended June 30, 2025 or 2024.

In addition, the Company acquired 1.4 million and an insignificant amount of shares upon the exercise of stock options, the vesting of certain restricted stock units ("RSUs") and performance restricted stock units ("PRSUs"), which were withheld to satisfy tax withholding obligations during the three months ended June 30, 2025 and 2024, 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 $ 94.9 million in treasury stock acquired during the three months ended June 30, 2025, and an immaterial amount for the three months ended June 30, 2024.

The Company acquired 2.1 million and 0.9 million shares during the six months ended June 30, 2025 and 2024, respectively, resulting in $ 132.4 million and $ 43.8 million for the six months ended June 30, 2025 and 2024, respectively.

As of September 30, 2025, the Company had approximately $ 774.5 million remaining under its share repurchase authorization.

The Company did not repurchase shares under the program during the three and nine months ended September 30, 2025 or 2024.

In addition, the Company acquired an insignificant amount of shares upon the exercise of stock options, the vesting of certain restricted stock units ("RSUs") and performance restricted stock units ("PRSUs"), which were withheld to satisfy tax withholding obligations during the three months ended September 30, 2025 and 2024, 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 an immaterial amount of treasury stock acquired during the three months ended September 30, 2025 and 2024, respectively.

The Company acquired 2.1 million and 0.9 million shares during the nine months ended September 30, 2025 and 2024, respectively, resulting in $ 132.4 million and $ 43.8 million in treasury stock acquired for the nine months ended September 30, 2025 and 2024, respectively.

(b) Accumulated Other Comprehensive Loss ("AOCL").

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) 2025 2024 2025 2024

1 unchanged sentence

Balance at beginning of period $ ( 88.7 ) $ ( 158.5 ) $ ( 187.2 ) $ ( 135.5 )

Other comprehensive income (loss):

Other comprehensive (loss) income:

Foreign currency translation adjustments (1)

11 unchanged sentences

Accrued expenses and other current liabilities consisted of the following:

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

Wages and benefits $ 164.3 $ 81.7

9 unchanged sentences

(8) Stock-Based Compensation

The Company's stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 included PRSUs, RSUs and non-qualified stock options.

The Company's stock-based compensation expense for the three and nine months ended September 30, 2025 and 2024 included PRSUs, RSUs and non-qualified stock options.

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) 2025 2024 2025 2024

6 unchanged sentences

During the first quarter of 2025, the Company granted PRSUs as a component of the long-term incentive plan ("2025 PRSUs").

The Company has recorded stock-based compensation expense related to the 2025 PRSUs during the three and six months ended June 30, 2025, as it was probable that the Company would achieve the specified performance targets for the performance period.

The Company has recorded stock-based compensation expense related to the 2025 PRSUs during the three and nine months ended September 30, 2025, as it was probable that the Company would achieve the specified performance targets for the performance period.

(9) Commitments and Contingencies

5 unchanged sentences

(10) Income Taxes

The Company's effective tax rates for the three months ended June 30, 2025 and 2024 were 3.1 % and 24.2 %, respectively.

The Company's effective tax rates for the six months ended June 30, 2025 and 2024 were ( 24.9 )% and 23.0 %, respectively.

The Company's effective tax rates for the three and six months ended June 30, 2025 and 2024 differed from the U.S.

The Company's effective tax rates for the three months ended September 30, 2025 and 2024 were 24.0 % and 23.9 %, respectively.

The Company's effective tax rates for the nine months ended September 30, 2025 and 2024 were 14.9 % and 23.4 %, respectively.

The Company's effective tax rates for the three and nine months ended September 30, 2025 and 2024 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.

13 unchanged sentences

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 Somnigroup International Inc.:

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) 2025 2024 2025 2024

6 unchanged sentences

Diluted earnings per common share $ 0.83 $ 0.73 $ 1.17 $ 1.75

The Company excludes shares issuable upon exercise of outstanding stock options from the diluted earnings per common share computation because their exercise price was greater than the average market price of Somnigroup International Inc.'s common stock or they were otherwise anti-dilutive.

As a result, the Company excluded an immaterial amount of shares for the three and six months ended June 30, 2025, and an immaterial amount of shares for the three and six months ended June 30, 2024.

The Company excludes shares issuable upon exercise of certain outstanding stock options from the diluted earnings per common share computation because their exercise price was greater than the average market price of Somnigroup International Inc.'s common stock or they were otherwise anti-dilutive.

As a result, the Company excluded 1.2 million shares for the three months ended September 30, 2025, and 0.4 million shares for the nine months ended September 30, 2025 .

The Company did not exclude any shares for the three months ended September 30, 2024, and excluded an immaterial amount of shares for the nine months ended September 30, 2024.

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

10 unchanged sentences

Inter-segment sales are made primarily at prices that approximate market-based selling prices.

SOMNIGROUP INTERNATIONAL INC.

AND SUBSIDIARIES

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

The following table summarizes total assets by segment:

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

Tempur Sealy North America $ 5,590.3 $ 5,575.2

4 unchanged sentences

Total assets $ 11,399.5 $ 5,980.4

SOMNIGROUP 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, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

Tempur Sealy North America $ 612.3 $ 687.7

4 unchanged sentences

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

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

Tempur Sealy North America $ 324.5 $ 407.1

3 unchanged sentences

Total operating lease right-of-use assets $ 1,884.4 $ 598.8

The following table summarizes segment information for the three months ended June 30, 2025:

SOMNIGROUP INTERNATIONAL INC.

AND SUBSIDIARIES

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

The following table summarizes segment information for the three months ended September 30, 2025:

(in millions) Tempur Sealy North America Tempur Sealy International Mattress Firm Corporate Eliminations Consolidated

7 unchanged sentences

General, administrative and other expenses 41.6 28.9 57.0 32.9 — 160.4

Loss on disposal of business 9.8 — 4.1 — — 13.9

Equity income in earnings of unconsolidated affiliates — ( 3.1 ) — — — ( 3.1 )

10 unchanged sentences

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

The following table summarizes segment information for the three months ended June 30, 2024:

The following table summarizes segment information for the three months ended September 30, 2024:

(in millions) Tempur Sealy North America Tempur Sealy International Corporate Eliminations Consolidated

10 unchanged sentences

Interest expense, net 30.8

Other income, net ( 0.6 )

Other expense, net 0.4

Income before income taxes $ 170.6

6 unchanged sentences

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

The following table summarizes segment information for the six months ended June 30, 2025:

The following table summarizes segment information for the nine months ended September 30, 2025:

(in millions) Tempur Sealy North America Tempur Sealy International Mattress Firm Corporate Eliminations Consolidated

11 unchanged sentences

Interest expense, net 203.7

Other income, net 5.9

Other expense, net 16.8

Income before income taxes $ 287.3

6 unchanged sentences

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

The following table summarizes segment information for the six months ended June 30, 2024:

The following table summarizes segment information for the nine months ended September 30, 2024:

(in millions) Tempur Sealy North America Tempur Sealy International Corporate Eliminations Consolidated

18 unchanged sentences

(in millions)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

United States

4 unchanged sentences

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

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

United States $ 1,665.1 $ 401.0

2 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