TEMPUR SEALY INTERNATIONAL, INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>TEMPUR SEALY INTERNATIONAL, INC. has filed its 2023 annual report on Form 10-K, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

TEMPUR SEALY INTERNATIONAL, INC. (SGI) filed a Annual Report (10-K) with the SEC on February 16, 2024. The company filed its 10-K for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Previous fiscal periods reported include 2022 and 2021. The company's principal business is Household Furniture (SIC 2510). The filing was submitted on February 16, 2024.

Why It Matters

For investors and stakeholders tracking TEMPUR SEALY INTERNATIONAL, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Tempur Sealy's financial health, operational performance, and strategic initiatives for the 2023 fiscal year, crucial for investors to assess the company's current standing and future prospects. The detailed financial data and risk factors disclosed in this report are essential for stakeholders to understand the company's market position, potential challenges, and overall investment risk.

Risk Assessment

Risk Level: medium — TEMPUR SEALY INTERNATIONAL, INC. shows moderate risk based on this filing. The company's 10-K filing indicates a medium risk level due to the inherent cyclicality and competitive nature of the household furniture industry, which can impact sales and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's performance and potential challenges in the competitive furniture market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-16 — Filing Date (Date of submission)
• 2023 — Reporting Year (Primary fiscal year covered)
• 2022 — Prior Year (Previous fiscal year reported)
• 2021 — Prior Year (Previous fiscal year reported)

Key Players & Entities

• TEMPUR SEALY INTERNATIONAL, INC. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-16 (date) — Filing date
• HOUSEHOLD FURNITURE (industry) — Standard Industrial Classification
• 1000 TEMPUR WAY, LEXINGTON, KY 40511 (address) — Business address

FAQ

Risk Factors

• Market and Industry Risks [medium — market]: The company is subject to risks related to the cyclical nature of the household furniture industry, changes in consumer spending, and intense competition.

Industry Context

Tempur Sealy International operates within the household furniture industry, a sector characterized by consumer discretionary spending and significant competition.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (Form 10-K) detailing financial performance and business operations.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K to understand revenue trends, profitability, and balance sheet health.
2. Review the 'Risk Factors' section to identify potential challenges and their impact on the company's future performance.
3. Compare key financial metrics from the 2023 10-K with previous years to assess performance trends and identify areas of growth or concern.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-16: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value TPX New York Stock Exchange
• $1,000 — d in 2016, is our offering in the below $1,000 e-commerce space, made with the high qu

Filing Documents

• tpx-20231231.htm (10-K) — 2622KB
• exhibit46-tpxx2023xdescrip.htm (EX-4.6) — 26KB
• exhibit1062-2024formofrsua.htm (EX-10.62) — 76KB
• exhibit1063-2024formofprsu.htm (EX-10.63) — 91KB
• exhibit211-tpxx2023subsidi.htm (EX-21.1) — 22KB
• exhibit231-tpxx2023consent.htm (EX-23.1) — 4KB
• exhibit311-tpxx202310k.htm (EX-31.1) — 11KB
• exhibit312-tpxx202310k.htm (EX-31.2) — 11KB
• exhibit321-tpxx202310k.htm (EX-32.1) — 6KB
• exhibit97-tpxclawbackpolicy.htm (EX-97) — 49KB
• tpx-20231231_g1.jpg (GRAPHIC) — 143KB
• 0001206264-24-000050.txt (&nbsp;) — 14407KB
• tpx-20231231.xsd (EX-101.SCH) — 78KB
• tpx-20231231_cal.xml (EX-101.CAL) — 157KB
• tpx-20231231_def.xml (EX-101.DEF) — 381KB
• tpx-20231231_lab.xml (EX-101.LAB) — 1134KB
• tpx-20231231_pre.xml (EX-101.PRE) — 734KB
• tpx-20231231_htm.xml (XML) — 2486KB

Business

Business 4 ITEM 1A.

Risk Factors

Risk Factors 11 ITEM 1B. Unresolved Staff Comments 11 ITEM 1C. Cybersecurity 12 ITEM 2.

Properties

Properties 13 ITEM 3.

Legal Proceedings

Legal Proceedings 13 ITEM 4. Mine Safety Disclosures 13 PART II. 13 ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 ITEM 6. [Reserved] 16 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 32 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 62 ITEM 9A.

Controls and Procedures

Controls and Procedures 62 ITEM 9B. Other Information 64 ITEM 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 64 PART III. 64 ITEM 10. Directors, Executive Officers and Corporate Governance 64 ITEM 11.

Executive Compensation

Executive Compensation 64 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 64 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 65 ITEM 14. Principal Accoun tant Fees and Services 65 PART IV. 65 ITEM 15. Exhibits and Financial Statement Schedules 65 ITEM 16. Form 10-K Summary 70

Signatures

Signatures 71 When used in this Report, except as specifically noted otherwise, the term "Tempur Sealy International" refers to Tempur Sealy International, Inc. only, and the terms "Tempur Sealy," "Company," "we," "our," "ours" and "us" refer to Tempur Sealy International, Inc. and its consolidated subsidiaries. When used in this Report, the term "Tempur" may refer to Tempur-branded products and the term "Sealy" may refer to Sealy-branded products or to Sealy Corporation and its historical subsidiaries, in all cases as the context requires. In addition, when used in this Report,"2023 Credit Agreement" refers to the Company's senior credit facility entered into in 2023; "2019 Credit Agreement" refers to the Company's prior senior credit facility entered into in 2019; "2023 Senior Notes" refers to the 5.625% senior notes due 2023 issued in 2015; "2026 Senior Notes" refers to the 5.50% senior notes due 2026 issued in 2016; "2029 Senior Notes" refers to the 4.00% senior notes due 2029 issued in 2021; and "2031 Senior Notes" refers to the 3.875% senior notes due 2031 issued in 2021. In addition, when used in this Report, "Danish Tax Matter" refers to the Company's dispute with the Danish Tax Authority ("SKAT") regarding the royalty paid by a U.S. subsidiary of Tempur Sealy International to a Danish subsidiary for tax years 2012 through 2022. 2 Table of Contents Special Note Regarding Forward-Looking Statements This Annual Report on Form 10-K (the "Report"), including the information incorporated by reference herein, contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which includes information concerning one or more of our plans; objectives; goals; strategies and other information that is not historical information. Many of these statements appear, in particular, under the heading "Managem

BUSINESS

ITEM 1. BUSINESS General We are committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufacturer, distributor and retailer of bedding products, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries. Our highly recognized brands include Tempur-Pedic, Sealy and Stearns & Foster and our non-branded offerings include private label and original equipment manufacturer ("OEM") products. Our distinct brands allow for complementary merchandising strategies at a range of price points. Our powerful distribution model operates through an omni-channel strategy. Our products are sold through third-party retailers, our more than 750 company-owned stores and our e-commerce platforms. We have a global manufacturing footprint with approximately 12,000 employees around the world. Tempur Sealy has a strong competitive presence in the bedding marketplace with a leadership position that comes from product and service quality, culture, strategy and people, backed with financial strength and a disciplined approach to returning value to shareholders. Our long-term strategy is to drive earnings growth with high return on invested capital and strong free cash flow, which is a non-GAAP financial measure. In order to achieve our long-term strategy, we focus on developing the most innovative bedding products in all the markets we serve, making significant investments in our iconic global brands and optimizing our worldwide omni-channel distribution. We also intend to generate earnings growth through ongoing investments in research and development and productivity initiatives, which will improve our profitability and create long-term stockholder value. We have a balanced approach to capital allocation that includes investments in