SOMNIGROUP INTERNATIONAL INC.SGI
SOMNIGROUP INTERNATIONAL INC. Segments Disclosure
Business Segment Information
The Company operates in three segments: Mattress Firm, Tempur Sealy North America and Tempur Sealy International. These segments are strategic business units that are managed separately. The Mattress Firm segment consists of retail stores and distribution centers located in the U.S. The Tempur Sealy North America segment consists of manufacturing, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico (other than Mattress Firm retail and distribution locations). The Tempur Sealy 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 any 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 sells its products in over 100 countries to over 10,000 wholesale customers. The Company's Direct channel represents 63.5% of the Company's consolidated net sales in 2025, as compared to 24.9% of the Company's consolidated net sales in 2024. Mattress Firm contributed approximately 46.9% of the Company's consolidated net sales in the year ended 2025.
The Company's Tempur Sealy North America and Tempur Sealy 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) | 2025 | 2024 | |||||||||
| Mattress Firm | $ | 7,929.7 | $ | — | |||||||
| Tempur Sealy North America | 5,717.9 | 5,575.2 | |||||||||
| Tempur Sealy International | 1,542.3 | 1,477.6 | |||||||||
| Corporate | 2,588.7 | 3,580.0 | |||||||||
| Inter-segment eliminations | (6,177.9) | (4,652.4) | |||||||||
| Total assets | $ | 11,600.7 | $ | 5,980.4 | |||||||
The following table summarizes property, plant and equipment, net, by segment:
| December 31, | December 31, | ||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Mattress Firm | $ | 270.7 | $ | — | |||||||
| Tempur Sealy North America | 609.9 | 687.7 | |||||||||
| Tempur Sealy International | 110.8 | 89.6 | |||||||||
| Corporate | 27.8 | 33.8 | |||||||||
| Total property, plant and equipment, net | $ | 1,019.2 | $ | 811.1 | |||||||
The following table summarizes operating lease right-of-use assets by segment:
| December 31, | December 31, | ||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Mattress Firm | $ | 1,344.9 | $ | — | |||||||
| Tempur Sealy North America | 315.2 | 407.1 | |||||||||
| Tempur Sealy International | 215.9 | 188.6 | |||||||||
| Corporate | 2.8 | 3.1 | |||||||||
| Total operating lease right-of-use assets | $ | 1,878.8 | $ | 598.8 | |||||||
The following table summarizes segment information for the year ended December 31, 2025:
| (in millions) | Mattress Firm | Tempur Sealy North America | Tempur Sealy International | Corporate | Eliminations | Consolidated | |||||||||||||||||||||||||||||
| Net sales | $ | 3,505.4 | $ | 2,701.2 | $ | 1,269.9 | $ | — | $ | — | $ | 7,476.5 | |||||||||||||||||||||||
| Inter-segment sales | $ | 0.6 | $ | 976.3 | $ | 0.5 | $ | — | $ | (977.4) | $ | — | |||||||||||||||||||||||
| Total net sales and inter-segment sales | $ | 3,506.0 | $ | 3,677.5 | $ | 1,270.4 | $ | — | $ | (977.4) | $ | 7,476.5 | |||||||||||||||||||||||
| Inter-segment royalty expense (income) | — | 35.6 | (35.6) | — | — | — | |||||||||||||||||||||||||||||
| Gross profit | 1,171.7 | 1,383.8 | 627.7 | — | — | 3,183.2 | |||||||||||||||||||||||||||||
| Advertising expense | 197.9 | 393.2 | 101.1 | — | — | 692.2 | |||||||||||||||||||||||||||||
| Other selling and marketing expense | 575.1 | 254.6 | 199.4 | 17.7 | — | 1,046.8 | |||||||||||||||||||||||||||||
| General, administrative and other expenses | 203.8 | 172.9 | 125.6 | 192.7 | — | 695.0 | |||||||||||||||||||||||||||||
| Loss on disposal of business | 4.1 | 9.8 | — | — | — | 13.9 | |||||||||||||||||||||||||||||
| Equity income in earnings of unconsolidated affiliates | — | — | (19.6) | — | — | (19.6) | |||||||||||||||||||||||||||||
| Operating income (loss) | 190.8 | 553.3 | 221.2 | (210.4) | — | 754.9 | |||||||||||||||||||||||||||||
| Interest expense, net | 267.9 | ||||||||||||||||||||||||||||||||||
| Other expense, net | 6.0 | ||||||||||||||||||||||||||||||||||
| Income before income taxes | 481.0 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization (1) | $ | 85.0 | $ | 121.4 | $ | 32.0 | $ | 52.1 | $ | — | $ | 290.5 | |||||||||||||||||||||||
| Capital expenditures | 96.1 | 29.4 | 38.0 | 3.4 | — | 166.9 | |||||||||||||||||||||||||||||
(1)Depreciation and amortization includes stock-based compensation amortization expense.
The following table summarizes segment information for the year ended December 31, 2024:
| (in millions) | Tempur Sealy North America | Tempur Sealy International | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
| Net sales | $ | 3,788.9 | $ | 1,142.0 | $ | — | $ | — | $ | 4,930.9 | |||||||||||||||||||
| Inter-segment sales | $ | 0.5 | $ | 0.2 | $ | — | $ | (0.7) | $ | — | |||||||||||||||||||
| Total net sales and inter-segment sales | $ | 3,789.4 | $ | 1,142.2 | $ | — | $ | (0.7) | $ | 4,930.9 | |||||||||||||||||||
| Inter-segment royalty expense (income) | 34.3 | (34.3) | — | — | — | ||||||||||||||||||||||||
| Gross profit | 1,466.7 | 561.2 | — | — | 2,027.9 | ||||||||||||||||||||||||
| Advertising expense | 382.0 | 88.9 | — | — | 470.9 | ||||||||||||||||||||||||
| Other selling and marketing expense | 270.6 | 181.7 | 16.2 | — | 468.5 | ||||||||||||||||||||||||
| General, administrative and other expenses | 202.0 | 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, net | 134.8 | ||||||||||||||||||||||||||||
| Other income, net | (4.9) | ||||||||||||||||||||||||||||
| Income before income taxes | 504.3 | ||||||||||||||||||||||||||||
Depreciation and amortization (1) | $ | 127.6 | $ | 28.2 | $ | 45.7 | $ | — | $ | 201.5 | |||||||||||||||||||
| Capital expenditures | 57.2 | 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) | Tempur Sealy North America | Tempur Sealy International | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
| Net sales | $ | 3,855.5 | $ | 1,069.9 | $ | — | $ | — | $ | 4,925.4 | |||||||||||||||||||
| Inter-segment sales | $ | 1.2 | $ | 0.5 | $ | — | $ | (1.7) | $ | — | |||||||||||||||||||
| Total net sales and inter-segment sales | $ | 3,856.7 | $ | 1,070.4 | $ | — | $ | (1.7) | $ | 4,925.4 | |||||||||||||||||||
| Inter-segment royalty expense (income) | 33.7 | (33.7) | — | — | — | ||||||||||||||||||||||||
| Gross profit | 1,478.6 | 507.6 | — | — | 1,986.2 | ||||||||||||||||||||||||
| Advertising expense | 389.9 | 79.1 | — | — | 469.0 | ||||||||||||||||||||||||
| Other selling and marketing expense | 261.0 | 170.4 | 20.5 | — | 451.9 | ||||||||||||||||||||||||
| General, administrative and other expenses | 184.6 | 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, net | 129.9 | ||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 3.2 | ||||||||||||||||||||||||||||
| Income before income taxes | 474.1 | ||||||||||||||||||||||||||||
Depreciation and amortization (1) | $ | 102.2 | $ | 25.6 | $ | 55.2 | $ | — | $ | 183.0 | |||||||||||||||||||
| Capital expenditures | 158.8 | 18.1 | 8.5 | — | 185.4 | ||||||||||||||||||||||||
(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) | 2025 | 2024 | |||||||||
| United States | $ | 889.3 | $ | 704.1 | |||||||
| All other | 129.9 | 107.0 | |||||||||
Total property, plant and equipment, net | $ | 1,019.2 | $ | 811.1 | |||||||
The following table summarizes operating lease right-of-use assets by geographic region:
| December 31, | December 31, | ||||||||||
(in millions) | 2025 | 2024 | |||||||||
| United States | $ | 1,653.1 | $ | 401.0 | |||||||
| All other | 225.7 | 197.8 | |||||||||
Total operating lease right-of-use assets | $ | 1,878.8 | $ | 598.8 | |||||||
The following table summarizes net sales by geographic region:
| Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 5,934.7 | $ | 3,490.1 | $ | 3,560.8 | |||||||||||
| All other | 1,541.8 | 1,440.8 | 1,364.6 | ||||||||||||||
| Total net sales | $ | 7,476.5 | $ | 4,930.9 | $ | 4,925.4 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 12, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.