ý
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
Missouri
|
|
44-0324630
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
No. 1 Leggett Road
Carthage, Missouri
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|
64836
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(Address of principal executive offices)
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(Zip code)
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Title of Each Class
|
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Name of each exchange on
which registered
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Common Stock, $.01 par value
|
|
New York Stock Exchange
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Large accelerated filer
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ý
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Accelerated filer
¨
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Page
Number
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1
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PART I
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Item 1.
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2
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Item 1A.
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16
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Item 1B.
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19
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Item 2.
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19
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Item 3.
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20
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Item 4.
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21
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Supp. Item.
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21
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PART II
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Item 5.
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24
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Item 6.
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26
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Item 7.
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27
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Item 7A.
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57
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Item 8.
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58
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Item 9.
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58
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Item 9A.
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58
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Item 9B.
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59
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PART III
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Item 10.
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60
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Item 11.
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63
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Item 12.
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63
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Item 13.
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63
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Item 14.
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63
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PART IV
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Item 15.
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64
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124
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126
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|
•
|
factors that could affect the industries or markets in which we participate, such as growth rates and opportunities in those industries;
|
•
|
adverse changes in inflation, currency, political risk, and U.S. or foreign laws or regulations (including tax law changes);
|
•
|
adverse changes in consumer sentiment, housing turnover, employment levels, interest rates, trends in capital spending and the like;
|
•
|
factors that could impact raw materials and other costs, including the availability and pricing of steel scrap and rod and other raw materials, the availability of labor, wage rates and energy costs;
|
•
|
our ability to pass along raw material cost increases through increased selling prices;
|
•
|
price and product competition from foreign (particularly Asian and European) and domestic competitors;
|
•
|
our ability to improve operations and realize cost savings (including our ability to fix under-performing operations and to generate future earnings from restructuring-related activities);
|
•
|
our ability to maintain profit margins if our customers change the quantity and mix of our components in their finished goods;
|
•
|
our ability to realize 25-35% contribution margin on incremental unit volume growth;
|
•
|
our ability to achieve expected levels of cash flow;
|
•
|
our ability to maintain and grow the profitability of acquired companies;
|
•
|
our ability to maintain the proper functioning of our internal business processes and information systems and avoid modification or interruption of such systems, through cyber-security breaches, technology failures or otherwise;
|
•
|
a decline in the long-term outlook for any of our reporting units that could result in asset impairment;
|
•
|
the loss of one or more of our significant customers; and
|
•
|
litigation accruals related to various contingencies including antitrust, intellectual property, product liability and warranty, taxation, environmental and workers’ compensation expense.
|
•
|
Innersprings (sets of steel coils, bound together, that form the core of a mattress)
|
•
|
Wire forms for mattress foundations
|
•
|
Machines that we use to shape wire into various types of springs
|
•
|
Steel mechanisms and hardware (enabling furniture to recline, tilt, swivel, rock and elevate) for reclining chairs and sleeper sofas
|
•
|
Springs and seat suspensions for chairs, sofas and love seats
|
•
|
Structural fabrics for mattresses, residential furniture and industrial uses
|
•
|
Carpet cushion (made from bonded scrap foam, fiber, rubber and prime foam)
|
•
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Geo components (synthetic fabrics and various other products used in ground stabilization, drainage protection, erosion and weed control, as well as silt fencing)
|
•
|
Manufacturers of finished bedding (mattresses and foundations) and upholstered furniture
|
•
|
Retailers and distributors of carpet cushion
|
•
|
Contractors, landscapers, road construction companies and government agencies using geo components
|
•
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Bases, columns, back rests, casters and frames for office chairs, and control devices that allow office chairs to tilt, swivel and elevate
|
•
|
Select lines of private-label finished furniture
|
•
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Fashion beds and bed frames
|
•
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Adjustable beds
|
•
|
Office, institutional and commercial furniture manufacturers
|
•
|
Mattress manufacturers and retailers
|
•
|
Drawn wire
|
•
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Fabricated wire products
|
•
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Steel rod
|
•
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Bedding and furniture components
|
•
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Automotive seat suspension systems
|
•
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Bedding producers
|
•
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Mechanical spring manufacturers
|
•
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Waste recyclers and waste removal businesses
|
•
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Mechanical and pneumatic lumbar support and massage systems for automotive seating
|
•
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Seat suspension systems
|
•
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Automotive control cables
|
•
|
Low voltage motors and actuators
|
•
|
Titanium, nickel and stainless steel tubing and sub-assemblies for the aerospace industry
|
•
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Full range of quilting machines for mattress covers
|
•
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Industrial sewing/finishing machines
|
•
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Van interiors (the racks, shelving and cabinets installed in service vans)
|
•
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Computer docking stations
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•
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Automobile seating manufacturers
|
•
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Aerospace suppliers and OEMs
|
•
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Bedding manufacturers
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•
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Telecommunication, cable, home service and delivery companies
|
•
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Innersprings for mattresses
|
•
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Wire and wire products
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•
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Lumbar and seat suspension systems for automotive seating
|
•
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Seamless tubing and specialty formed products for aerospace applications
|
•
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Select lines of private-label finished furniture
|
•
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Recliner mechanisms
|
•
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Machinery and equipment designed to manufacture innersprings for mattresses
|
•
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Lumbar and seat suspension systems for automotive seating
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•
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Cables, small electric motors, and actuators for automotive applications
|
•
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Recliner mechanisms and bases for upholstered furniture
|
•
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Formed wire for upholstered furniture
|
•
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Innersprings for mattresses
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•
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Office furniture components, including chair bases and casters
|
•
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Lumbar supports for automotive seats
|
•
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Fabricated wire for the furniture and automotive industries
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•
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Office chair controls, chair bases and table bases
|
•
|
Innersprings and fabricated wire for the bedding industry
|
•
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Automotive control cable systems and seating components
|
•
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Adjustable beds
|
•
|
Foreign currency fluctuation
|
•
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Foreign legal systems that make it difficult to protect intellectual property and enforce contract rights
|
•
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Credit risks
|
•
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Increased costs due to tariffs, customs and shipping rates
|
•
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Potential problems obtaining raw materials, and disruptions related to the availability of electricity and transportation during times of crisis or war
|
•
|
Inconsistent interpretation and enforcement, at times, of foreign tax laws
|
•
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Political instability in certain countries
|
|
Residential
Furnishings
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|
Commercial
Products
|
|
Industrial
Materials
|
|
Specialized
Products
|
North America
|
|
|
|
|
|
|
|
Canada
|
n
|
|
n
|
|
|
|
n
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Mexico
|
n
|
|
|
|
n
|
|
n
|
United States
|
n
|
|
n
|
|
n
|
|
n
|
Europe
|
|
|
|
|
|
|
|
Austria
|
|
|
|
|
|
|
n
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Belgium
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|
|
|
|
|
|
n
|
Croatia
|
n
|
|
|
|
|
|
n
|
Denmark
|
n
|
|
|
|
|
|
|
France
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|
|
|
|
|
|
n
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Germany
|
|
|
|
|
|
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n
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Hungary
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|
|
|
|
|
|
n
|
Italy
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n
|
|
n
|
|
|
|
|
Poland
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|
|
n
|
|
|
|
|
Switzerland
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n
|
|
|
|
|
|
|
United Kingdom
|
n
|
|
|
|
|
|
n
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South America
|
|
|
|
|
|
|
|
Brazil
|
n
|
|
|
|
|
|
|
Asia
|
|
|
|
|
|
|
|
China
|
n
|
|
n
|
|
|
|
n
|
India
|
|
|
|
|
|
|
n
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South Korea
|
|
|
|
|
|
|
n
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Africa
|
|
|
|
|
|
|
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South Africa
|
n
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|
|
|
|
|
|
Product Line
|
2015
|
|
2014
|
|
2013
|
|||||
Bedding Group
|
23
|
%
|
|
22
|
|
%
|
|
20
|
|
%
|
Fabric & Carpet Cushion Group
|
17
|
|
|
18
|
|
|
|
18
|
|
|
Automotive Group
|
16
|
|
|
16
|
|
|
|
14
|
|
|
Furniture Group
|
11
|
|
|
11
|
|
|
|
12
|
|
|
Wire Group
|
9
|
|
|
11
|
|
|
|
12
|
|
|
Consumer Products Group
|
8
|
|
|
7
|
|
|
|
8
|
|
|
Work Furniture Group
|
6
|
|
|
5
|
|
|
|
5
|
|
|
Aerospace Products Group
|
3
|
|
|
3
|
|
|
|
2
|
|
|
Commercial Vehicle Products Group
|
3
|
|
|
3
|
|
|
|
4
|
|
|
Steel Tubing Group
|
2
|
|
|
2
|
|
|
|
3
|
|
|
Machinery Group
|
2
|
|
|
2
|
|
|
|
2
|
|
|
•
|
Various types of steel, including scrap, rod, wire, sheet, stainless and angle iron
|
•
|
Foam scrap
|
•
|
Woven and non-woven fabrics
|
•
|
Titanium and nickel-based alloys and other high strength metals
|
•
|
Innersprings and foundations for mattresses
|
•
|
Springs and seat suspensions for chairs and sofas
|
•
|
Automotive seating suspension systems
|
•
|
ComfortCore
®
,
Mira-Coil
®
, VertiCoil
®
, Lura-Flex
®
,
and
Superlastic
®
(mattress innersprings)
|
•
|
Semi-Flex
®
(box spring components and foundations)
|
•
|
Active Support Technology
®
(mattress innersprings)
|
•
|
Spuhl
®
(mattress innerspring manufacturing machines)
|
•
|
Wall Hugger
®
(recliner chair mechanisms)
|
•
|
Super Sagless
®
(motion and sofa sleeper mechanisms)
|
•
|
No-Sag
®
(wire forms used in seating)
|
•
|
LPSense
®
(capacitive sensing)
|
•
|
Hanes
®
(fabric materials)
|
•
|
Schukra
®
, Pullmaflex
®
and
Flex-O-Lator
®
(automotive seating products)
|
•
|
Gribetz
®
and
Porter
®
(quilting and sewing machines)
|
•
|
Components for residential furniture and bedding
|
•
|
Carpet cushion
|
•
|
Adjustable bed bases
|
•
|
Components for office furniture
|
•
|
High carbon drawn steel wire
|
•
|
Automotive seat support and lumbar systems
|
•
|
Bedding industry machinery
|
•
|
Thin-walled, titanium, nickel and other specialty tubing for the aerospace industry
|
|
|
Company-
Wide
|
|
Subtotals by Segment
|
||||||
Manufacturing Locations
|
|
Residential
Furnishings
|
|
Commercial
Products
|
|
Industrial
Materials
|
|
Specialized
Products
|
||
United States
|
|
81
|
|
46
|
|
11
|
|
8
|
|
16
|
Europe
|
|
18
|
|
5
|
|
2
|
|
—
|
|
11
|
China
|
|
14
|
|
4
|
|
1
|
|
—
|
|
9
|
Canada
|
|
8
|
|
2
|
|
2
|
|
—
|
|
4
|
Mexico
|
|
5
|
|
2
|
|
—
|
|
1
|
|
2
|
Other
|
|
4
|
|
2
|
|
—
|
|
—
|
|
2
|
Total
|
|
130
|
|
61
|
|
16
|
|
9
|
|
44
|
|
|
Company-
Wide
|
|
Subtotals by Segment
|
||||||
Manufacturing Locations
|
|
Residential
Furnishings
|
|
Commercial
Products
|
|
Industrial
Materials
|
|
Specialized
Products
|
||
Owned
|
|
72
|
|
41
|
|
9
|
|
8
|
|
14
|
Leased
|
|
58
|
|
20
|
|
7
|
|
1
|
|
30
|
Total
|
|
130
|
|
61
|
|
16
|
|
9
|
|
44
|
Name
1,2,3
|
|
Age
|
|
Position
|
Karl G. Glassman
|
|
57
|
|
President and Chief Executive Officer
|
Matthew C. Flanigan
|
|
54
|
|
Executive Vice President and Chief Financial Officer
|
Jack D. Crusa
|
|
61
|
|
Senior Vice President, Industrial Materials & Specialized Products
|
Perry E. Davis
|
|
56
|
|
Senior Vice President, Residential Furnishings
|
David M. DeSonier
|
|
57
|
|
Senior Vice President, Strategy & Investor Relations
|
J. Mitchell Dolloff
|
|
50
|
|
Senior Vice President, Specialized Products
|
Scott S. Douglas
|
|
56
|
|
Senior Vice President, General Counsel
|
Russell J. Iorio
|
|
46
|
|
Senior Vice President, Mergers & Acquisitions
|
John G. Moore
|
|
55
|
|
Senior Vice President, Chief Legal & HR Officer and Secretary
|
Dennis S. Park
|
|
61
|
|
Senior Vice President, Commercial Products
|
Tammy M. Trent
|
|
49
|
|
Vice President, Chief Accounting Officer
|
1
|
David S. Haffner, age 63, served as the Company's Board Chair and Chief Executive Officer until December 31, 2015.
|
2
|
Joseph D. Downes, Jr., age 71, retired from his position as Senior Vice President - Industrial Materials on April 5, 2015. He continued to be employed by the Company in a lesser position until his retirement on December 31, 2015.
|
3
|
William S. Weil, age 57, retired from his position as Senior Vice President, Chief Accounting Officer and Corporate Controller on May 5, 2015.
|
|
Price Range
|
|
Volume of
Shares Traded
(in Millions)
|
|
Dividend
Declared
|
|||||||||
|
High
|
|
Low
|
|
||||||||||
2015
|
|
|
|
|
|
|
|
|||||||
First Quarter
|
$
|
46.95
|
|
|
$
|
41.36
|
|
|
74.2
|
|
|
$
|
0.31
|
|
Second Quarter
|
49.95
|
|
|
42.34
|
|
|
58.6
|
|
|
0.31
|
|
|||
Third Quarter
|
51.28
|
|
|
39.58
|
|
|
69.7
|
|
|
0.32
|
|
|||
Fourth Quarter
|
47.35
|
|
|
40.83
|
|
|
56.0
|
|
|
0.32
|
|
|||
For the Year
|
$
|
51.28
|
|
|
$
|
39.58
|
|
|
258.5
|
|
|
$
|
1.26
|
|
2014
|
|
|
|
|
|
|
|
|||||||
First Quarter
|
$
|
32.75
|
|
|
$
|
28.90
|
|
|
59.4
|
|
|
$
|
0.30
|
|
Second Quarter
|
34.80
|
|
|
31.54
|
|
|
55.2
|
|
|
0.30
|
|
|||
Third Quarter
|
35.94
|
|
|
32.53
|
|
|
52.7
|
|
|
0.31
|
|
|||
Fourth Quarter
|
43.15
|
|
|
32.64
|
|
|
72.8
|
|
|
0.31
|
|
|||
For the Year
|
$
|
43.15
|
|
|
$
|
28.90
|
|
|
240.1
|
|
|
$
|
1.22
|
|
Period
|
|
Total Number of
Shares Purchased (1)
|
|
Average
Price
Paid per
Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs (2)
|
|
Maximum Number of
Shares that May Yet
Be Purchased Under the
Plans or Programs (2)
|
|||||
October 2015
|
|
1,035
|
|
|
$
|
45.00
|
|
|
—
|
|
|
6,936,199
|
|
November 2015
|
|
322,070
|
|
|
$
|
45.62
|
|
|
305,836
|
|
|
6,630,363
|
|
December 2015
|
|
332,125
|
|
|
$
|
43.25
|
|
|
331,746
|
|
|
6,298,617
|
|
Total
|
|
655,230
|
|
|
$
|
44.42
|
|
|
637,582
|
|
|
|
(1)
|
This number includes 17,648 shares which were not repurchased as part of a publicly announced plan or program, all of which were shares surrendered in transactions permitted under the Company’s benefit plans. It does not include shares withheld for taxes on option exercises and stock unit conversions, or forfeitures of restricted stock units.
|
(2)
|
On August 4, 2004, the Board authorized management to repurchase up to 10 million shares each calendar year beginning January 1, 2005. This standing authorization was first reported in the quarterly report on Form 10-Q for the period ended June 30, 2004, filed August 5, 2004, and will remain in force until repealed by the Board of Directors. As such, effective January 1, 2016, the Company was authorized by the Board of Directors to repurchase up to 10 million shares in 2016. No specific repurchase schedule has been established.
|
(Unaudited)
|
2015
1
|
|
2014
2
|
|
2013
3
|
|
2012
4
|
|
2011
5
|
||||||||||
(Dollar amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary of Operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales from Continuing Operations
|
$
|
3,917
|
|
|
$
|
3,782
|
|
|
$
|
3,477
|
|
|
$
|
3,415
|
|
|
$
|
3,303
|
|
Earnings from Continuing Operations
|
328
|
|
|
225
|
|
|
186
|
|
|
231
|
|
|
173
|
|
|||||
(Earnings) Attributable to Noncontrolling Interest, net of tax
|
(4
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||||
Earnings (loss) from Discontinued Operations, net of tax
|
1
|
|
|
(124
|
)
|
|
13
|
|
|
19
|
|
|
(17
|
)
|
|||||
Net Earnings attributable to Leggett & Platt, Inc. common shareholders
|
325
|
|
|
98
|
|
|
197
|
|
|
248
|
|
|
153
|
|
|||||
Earnings per share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
2.30
|
|
|
1.57
|
|
|
1.27
|
|
|
1.59
|
|
|
1.16
|
|
|||||
Diluted
|
2.27
|
|
|
1.55
|
|
|
1.25
|
|
|
1.57
|
|
|
1.15
|
|
|||||
Earnings (Loss) per share from Discontinued Operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
.01
|
|
|
(.88
|
)
|
|
.09
|
|
|
.13
|
|
|
(.11
|
)
|
|||||
Diluted
|
.01
|
|
|
(.87
|
)
|
|
.09
|
|
|
.13
|
|
|
(.11
|
)
|
|||||
Net Earnings (Loss) per share
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
2.31
|
|
|
.69
|
|
|
1.36
|
|
|
1.72
|
|
|
1.05
|
|
|||||
Diluted
|
2.28
|
|
|
.68
|
|
|
1.34
|
|
|
1.70
|
|
|
1.04
|
|
|||||
Cash Dividends declared per share
|
1.26
|
|
|
1.22
|
|
|
1.18
|
|
|
1.14
|
|
|
1.10
|
|
|||||
Summary of Financial Position
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
$
|
2,968
|
|
|
$
|
3,141
|
|
|
$
|
3,108
|
|
|
$
|
3,255
|
|
|
$
|
2,915
|
|
Long-term Debt, including capital leases
|
$
|
945
|
|
|
$
|
767
|
|
|
$
|
688
|
|
|
$
|
854
|
|
|
$
|
833
|
|
1
|
Net earnings from Continuing Operations for 2015 includes $4 million of impairments and $2 million on the loss on the sale of our steel tubing business; $4 million associated with litigation accruals; and $8 million lump sum pension buyout.
|
2
|
Net earnings from Continuing Operations for 2014 includes $33 million associated with litigation accruals. Discontinued Operations includes the following items: $93 million of goodwill impairment, a $5 million loss on the sale of the majority of our Store Fixtures unit, and $22 million associated with litigation accruals.
|
3
|
Net earnings from Continuing Operations for 2013 include charges of $45 million related to the Commercial Vehicle Products group ($43 million goodwill impairment charge and $2 million accelerated amortization of a customer-related intangible asset), and a $9 million bargain purchase gain related to an acquisition.
|
4
|
Net earnings from Continuing Operations for 2012 include a $27 million net tax benefit primarily related to the release of valuation allowances on certain Canadian deferred tax assets, partially offset by deferred withholding taxes on earnings in China.
|
5
|
The Company incurred asset impairment and restructuring-related charges totaling $28 million in 2011. Of these charges, $13 million were associated with continuing operations and $15 million were related to discontinued operations.
|
(Dollar amounts in millions, except per share data)
|
Amount
|
|
%
|
|||
Net sales (continuing operations):
|
|
|
|
|||
Year ended December 31, 2014
|
$
|
3,782
|
|
|
|
|
Approximate volume gains
|
196
|
|
|
6
|
%
|
|
Approximate raw material-related deflation and currency impact
|
(183
|
)
|
|
(5
|
)%
|
|
Same location sales
|
13
|
|
|
1
|
%
|
|
Acquisition sales growth
|
123
|
|
|
3
|
%
|
|
Divestitures
|
(1
|
)
|
|
—
|
%
|
|
Year ended December 31, 2015
|
$
|
3,917
|
|
|
4
|
%
|
Earnings from continuing operations:
|
|
|
|
|||
(Dollar amounts, net of tax)
|
|
|
|
|||
Year ended December 31, 2014
|
$
|
225
|
|
|
|
|
Lower foam litigation expense
|
30
|
|
|
|
||
Lump sum pension buyout
|
(8
|
)
|
|
|
||
Other, including benefit from higher sales and pricing discipline
|
81
|
|
|
|
||
Year ended December 31, 2015
|
$
|
328
|
|
|
|
|
Earnings Per Diluted Share (continuing operations)—2014
|
$
|
1.55
|
|
|
|
|
Earnings Per Diluted Share (continuing operations)—2015
|
$
|
2.27
|
|
|
|
(Dollar amounts in millions)
|
2015
|
|
2014
|
|
Change in Sales
|
|
% Change
Same Location
Sales (1)
|
|
|
|||||||||||
$
|
|
%
|
|
|||||||||||||||||
Sales (continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Furnishings
|
$
|
2,064
|
|
|
$
|
1,958
|
|
|
$
|
106
|
|
|
5
|
%
|
|
1
|
%
|
|
|
|
Commercial Products
|
623
|
|
|
516
|
|
|
107
|
|
|
21
|
%
|
|
12
|
%
|
|
|
||||
Industrial Materials
|
777
|
|
|
813
|
|
|
(36
|
)
|
|
(4
|
)%
|
|
(4
|
)%
|
|
|
||||
Specialized Products
|
955
|
|
|
914
|
|
|
41
|
|
|
4
|
%
|
|
4
|
%
|
|
|
||||
Total
|
4,419
|
|
|
4,201
|
|
|
218
|
|
|
|
|
|
|
|
||||||
Intersegment sales elimination
|
(502
|
)
|
|
(419
|
)
|
|
(83
|
)
|
|
|
|
|
|
|
||||||
External sales
|
$
|
3,917
|
|
|
$
|
3,782
|
|
|
$
|
135
|
|
|
4
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change in EBIT
|
|
EBIT Margins (2)
|
|||||||||||||
$
|
|
%
|
|
2015
|
|
2014
|
||||||||||||||
EBIT (continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Furnishings
|
$
|
205
|
|
|
$
|
136
|
|
|
$
|
69
|
|
|
51
|
%
|
|
9.9
|
%
|
|
6.9
|
%
|
Commercial Products
|
42
|
|
|
31
|
|
|
11
|
|
|
35
|
%
|
|
6.8
|
%
|
|
6.0
|
%
|
|||
Industrial Materials
|
51
|
|
|
43
|
|
|
8
|
|
|
19
|
%
|
|
6.5
|
%
|
|
5.3
|
%
|
|||
Specialized Products
|
156
|
|
|
126
|
|
|
30
|
|
|
24
|
%
|
|
16.3
|
%
|
|
13.7
|
%
|
|||
Intersegment eliminations & other
|
(13
|
)
|
|
(3
|
)
|
|
(10
|
)
|
|
|
|
|
|
|
||||||
Change in LIFO reserve
|
46
|
|
|
(1
|
)
|
|
47
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
487
|
|
|
$
|
332
|
|
|
$
|
155
|
|
|
47
|
%
|
|
12.4
|
%
|
|
8.8
|
%
|
(1)
|
This is the change in sales not attributable to acquisitions or divestitures. These are sales that come from the same plants and facilities that we owned one year earlier.
|
(2)
|
Segment margins are calculated on total sales. Overall company margin is calculated on external sales.
|
(Dollar amounts in millions, except per share data)
|
Amount
|
|
%
|
|||
Net sales (continuing operations):
|
|
|
|
|||
Year ended December 31, 2013
|
$
|
3,477
|
|
|
|
|
Same location sales - primarily unit volume growth
|
189
|
|
|
6
|
%
|
|
Acquisition sales growth
|
116
|
|
|
3
|
%
|
|
Year ended December 31, 2014
|
$
|
3,782
|
|
|
9
|
%
|
Earnings from continuing operations:
|
|
|
|
|||
(Dollar amounts, net of tax)
|
|
|
|
|||
Year ended December 31, 2013
|
$
|
186
|
|
|
|
|
Non-recurrence of Commercial Vehicle Products impairment and related charges
|
45
|
|
|
|
||
Non-recurrence of acquisition-related bargain purchase gain
|
(9
|
)
|
|
|
||
Litigation accrual
|
(33
|
)
|
|
|
||
Other factors, including benefit from higher sales
|
36
|
|
|
|
||
Year ended December 31, 2014
|
$
|
225
|
|
|
|
|
Earnings Per Diluted Share (continuing operations)—2013
|
$
|
1.25
|
|
|
|
|
Earnings Per Diluted Share (continuing operations)—2014
|
$
|
1.55
|
|
|
|
(Dollar amounts in millions)
|
2014
|
|
2013
|
|
Change in Sales
|
|
% Change
Same Location
Sales (1)
|
|
|
|||||||||||
$
|
|
%
|
|
|||||||||||||||||
Sales (continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Furnishings
|
$
|
1,958
|
|
|
$
|
1,725
|
|
|
$
|
233
|
|
|
14
|
%
|
|
9
|
%
|
|
|
|
Commercial Products
|
516
|
|
|
469
|
|
|
47
|
|
|
10
|
%
|
|
10
|
%
|
|
|
||||
Industrial Materials
|
813
|
|
|
790
|
|
|
23
|
|
|
3
|
%
|
|
3
|
%
|
|
|
||||
Specialized Products
|
914
|
|
|
817
|
|
|
97
|
|
|
12
|
%
|
|
8
|
%
|
|
|
||||
Total
|
4,201
|
|
|
3,801
|
|
|
400
|
|
|
|
|
|
|
|
||||||
Intersegment sales elimination
|
(419
|
)
|
|
(324
|
)
|
|
(95
|
)
|
|
|
|
|
|
|
||||||
External sales
|
$
|
3,782
|
|
|
$
|
3,477
|
|
|
$
|
305
|
|
|
9
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change in EBIT
|
|
EBIT Margins (2)
|
|||||||||||||
$
|
|
%
|
|
2014
|
|
2013
|
||||||||||||||
EBIT (continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Furnishings
|
$
|
136
|
|
|
$
|
151
|
|
|
$
|
(15
|
)
|
|
(10
|
)%
|
|
6.9
|
%
|
|
8.8
|
%
|
Commercial Products
|
31
|
|
|
28
|
|
|
3
|
|
|
11
|
%
|
|
6.0
|
%
|
|
5.9
|
%
|
|||
Industrial Materials
|
43
|
|
|
57
|
|
|
(14
|
)
|
|
(25
|
)%
|
|
5.3
|
%
|
|
7.2
|
%
|
|||
Specialized Products
|
126
|
|
|
34
|
|
|
92
|
|
|
271
|
%
|
|
13.7
|
%
|
|
4.2
|
%
|
|||
Intersegment eliminations & other
|
(3
|
)
|
|
9
|
|
|
(12
|
)
|
|
|
|
|
|
|
||||||
Change in LIFO reserve
|
(1
|
)
|
|
(4
|
)
|
|
3
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
332
|
|
|
$
|
275
|
|
|
$
|
57
|
|
|
21
|
%
|
|
8.8
|
%
|
|
7.9
|
%
|
(1)
|
This is the change in sales not attributable to acquisitions or divestitures. These are sales that come from the same plants and facilities that we owned one year earlier.
|
(2)
|
Segment margins are calculated on total sales. Overall company margin is calculated on external sales.
|
(Dollar amounts in millions)
|
2015
|
|
2014
|
||||
Current assets
|
$
|
1,311
|
|
|
$
|
1,430
|
|
Current liabilities
|
(701
|
)
|
|
(992
|
)
|
||
Working capital
|
610
|
|
|
438
|
|
||
Cash and cash equivalents
|
(253
|
)
|
|
(333
|
)
|
||
Current debt maturities
|
3
|
|
|
202
|
|
||
Adjusted working capital
|
$
|
360
|
|
|
$
|
307
|
|
Annualized sales
1
|
$
|
3,780
|
|
|
$
|
3,812
|
|
Adjusted working capital as a percent of annualized sales
|
9.5
|
%
|
|
7.9
|
%
|
||
Working capital as a percent of annualized sales
|
16.1
|
%
|
|
11.5
|
%
|
1.
|
Annualized sales equal 4th quarter sales ($945 million in 2015 and $953 million in 2014) multiplied by 4. We believe measuring our working capital against this sales metric is more useful, since efficient management of working capital includes adjusting those net asset levels to reflect current business volume.
|
|
Amount (in millions)
|
||||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
Trade Receivables, net
|
$
|
449
|
|
|
$
|
470
|
|
|
$
|
(21
|
)
|
|
|
|
|
|
|
||||||
Inventories at FIFO
|
$
|
528
|
|
|
$
|
554
|
|
|
$
|
(26
|
)
|
LIFO Reserve
|
(23
|
)
|
|
(73
|
)
|
|
50
|
|
|||
Total inventories at LIFO, net
|
$
|
505
|
|
|
$
|
481
|
|
|
$
|
24
|
|
|
|
|
|
|
|
||||||
Accounts Payable
|
$
|
307
|
|
|
$
|
370
|
|
|
$
|
(63
|
)
|
1.
|
The inventory ratio represents days of inventory on hand calculated as: ending net inventory ÷ (quarterly cost of goods sold ÷ number of days in the quarter).
|
2.
|
The trade receivables ratio represents the days of sales outstanding calculated as: ending net trade receivables ÷ (quarterly net sales ÷ number of days in the quarter).
|
3.
|
The accounts payable ratio represents the days of payables outstanding calculated as: ending accounts payable ÷ (quarterly cost of goods sold ÷ number of days in the quarter).
|
(Dollar amounts in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Long-term debt outstanding:
|
|
|
|
|
|
||||||
Scheduled maturities
|
$
|
764
|
|
|
$
|
767
|
|
|
$
|
673
|
|
Average interest rates
(1)
|
3.7
|
%
|
|
4.6
|
%
|
|
4.6
|
%
|
|||
Average maturities in years
(1)
|
6.8
|
|
|
6.4
|
|
|
4.7
|
|
|||
Revolving credit/commercial paper
|
181
|
|
|
—
|
|
|
16
|
|
|||
Average interest rate
|
.5
|
%
|
|
—
|
|
|
.2
|
%
|
|||
Total long-term debt
|
945
|
|
|
767
|
|
|
689
|
|
|||
Deferred income taxes and other liabilities
|
223
|
|
|
226
|
|
|
191
|
|
|||
Equity
|
1,098
|
|
|
1,155
|
|
|
1,399
|
|
|||
Total capitalization
|
$
|
2,266
|
|
|
$
|
2,148
|
|
|
$
|
2,279
|
|
Unused committed credit:
|
|
|
|
|
|
||||||
Long-term
|
$
|
419
|
|
|
$
|
600
|
|
|
$
|
584
|
|
Short-term
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total unused committed credit
|
$
|
419
|
|
|
$
|
600
|
|
|
$
|
584
|
|
Current maturities of long-term debt
|
$
|
3
|
|
|
$
|
202
|
|
|
$
|
181
|
|
Cash and cash equivalents
|
$
|
253
|
|
|
$
|
333
|
|
|
$
|
273
|
|
Ratio of earnings to fixed charges
(2)
|
8.6 x
|
|
|
6.0 x
|
|
|
4.8 x
|
|
(1)
|
These rates include current maturities, but exclude commercial paper to reflect the averages of outstanding debt with scheduled maturities. The rates also include amortization of interest rate swaps.
|
(2)
|
Fixed charges include interest expense, capitalized interest, plus implied interest included in operating leases. Earnings consist principally of income from continuing operations before income taxes, plus fixed charges.
|
•
|
Long-term debt and total capitalization as reported in the previous table.
|
•
|
Long-term debt and total capitalization each reduced by total cash and increased by current maturities of long-term debt.
|
(Dollar amounts in millions)
|
2015
|
|
2014
|
||||
Long-term debt
|
$
|
945
|
|
|
$
|
767
|
|
Current debt maturities
|
3
|
|
|
202
|
|
||
Cash and cash equivalents
|
(253
|
)
|
|
(333
|
)
|
||
Net debt
|
$
|
695
|
|
|
$
|
636
|
|
Total capitalization
|
$
|
2,266
|
|
|
$
|
2,148
|
|
Current debt maturities
|
3
|
|
|
202
|
|
||
Cash and cash equivalents
|
(253
|
)
|
|
(333
|
)
|
||
Net capitalization
|
$
|
2,016
|
|
|
$
|
2,017
|
|
Long-term debt to total capitalization
|
41.7
|
%
|
|
35.7
|
%
|
||
Net debt to net capitalization
|
34.5
|
%
|
|
31.5
|
%
|
(Dollar amounts in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Total program authorized
|
$
|
600
|
|
|
$
|
600
|
|
|
$
|
600
|
|
Commercial paper outstanding (classified as long-term debt)
|
(181
|
)
|
|
—
|
|
|
(16
|
)
|
|||
Letters of credit issued under the credit agreement
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total program usage
|
(181
|
)
|
|
—
|
|
|
(16
|
)
|
|||
Total program available
|
$
|
419
|
|
|
$
|
600
|
|
|
$
|
584
|
|
|
|
|
Payments Due by Period
|
||||||||||||||||
Contractual Obligations
|
Total
|
|
Less
Than 1
Year
|
|
1-3
Years
|
|
3-5
Years
|
|
More
Than 5
Years
|
||||||||||
(Dollar amounts in millions)
|
|
|
|
||||||||||||||||
Long-term debt ¹
|
$
|
945
|
|
|
$
|
3
|
|
|
$
|
153
|
|
|
$
|
182
|
|
|
$
|
607
|
|
Capitalized leases
|
4
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|||||
Operating leases
|
142
|
|
|
36
|
|
|
50
|
|
|
28
|
|
|
28
|
|
|||||
Purchase obligations ²
|
296
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Interest payments ³
|
186
|
|
|
28
|
|
|
53
|
|
|
43
|
|
|
62
|
|
|||||
Deferred income taxes
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Other obligations (including pensions and net reserves for tax contingencies)
4
|
189
|
|
|
3
|
|
|
16
|
|
|
22
|
|
|
148
|
|
|||||
Total contractual cash obligations
|
$
|
1,801
|
|
|
$
|
367
|
|
|
$
|
274
|
|
|
$
|
276
|
|
|
$
|
884
|
|
1.
|
The long-term debt payment schedule presented above could be accelerated if we were not able to make the principal and interest payments when due.
|
2.
|
Purchase obligations primarily include open short-term (30-120 days) purchase orders that arise in the normal course of operating our facilities.
|
3.
|
Interest payments are calculated on debt outstanding at December 31, 2015 at rates in effect at the end of the year.
|
4.
|
Other obligations include our net reserves for tax contingencies in the "More Than 5 Years" column because these obligations are long-term in nature and actual payment dates can not be specifically determined. Other obligations also include our current estimate of minimum contributions to defined benefit pension plans.
|
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Goodwill
|
|
|
|
|
Goodwill is assessed for impairment annually as of June 30 and as triggering events occur.
The Steel Tubing unit met the held for sale criteria during the first quarter of 2015. Because fair value less cost to sell had fallen below recorded book value, we fully impaired this unit's goodwill and incurred a non-cash charge of $4 million in the first quarter of 2015.
In July 2014, we concluded that an impairment was required related to the goodwill of the Store Fixtures group, which was formerly part of the Commercial Products segment and is now reported in discontinued operations. A non-cash charge of $108 million was recorded in the second quarter of 2014 for the complete write-off of the goodwill associated with this business.
In December 2013, we concluded that an impairment was required relating to the goodwill of the Commercial Vehicle Products (CVP) group. A non-cash charge of $63 million was recorded in the fourth quarter of 2013.
|
|
In order to assess goodwill for potential impairment, judgment is required to estimate the fair market value of each reporting unit (which is one level below reportable segments) using the combination of a discounted cash flow model and a market approach using price to earnings ratios for comparable publicly traded companies with characteristics similar to the reporting unit.
The cash flow model contains uncertainties related to the forecast of future results as many outside economic and competitive factors can influence future performance. Margins, sales growth, and discount rates are the most critical estimates in determining enterprise values using the cash flow model.
The market approach requires judgment to determine the appropriate price to earnings ratio. Ratios are derived from comparable publicly-traded companies that operate in the same or similar industry as the reporting unit.
|
|
The second quarter 2015 goodwill impairment review indicated no impairments, with all reporting units having fair values that exceed carrying value by more than 50%.
We have $806 million of goodwill at December 31, 2015, including $12 million associated with the CVP reporting unit. As discussed in Note C to the Consolidated Financial Statements on page 79, we continue to explore strategic alternatives for this reporting unit. If we are not able to meet projected performance levels, future impairments could be possible.
Information regarding material assumptions used to determine if a goodwill impairment exists can be found in Note C to the Consolidated Financial Statements on page 79. |
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Other Long-lived Assets
|
|
|
|
|
Other long-lived assets are tested for recoverability at year-end and whenever events or circumstances indicate the carrying value may not be recoverable.
For other long-lived assets we estimate fair value at the lowest level where cash flows can be measured (usually at a branch level).
|
|
Impairments of other long-lived assets usually occur when major restructuring activities take place, or we decide to discontinue product lines completely.
Our impairment assessments have uncertainties because they require estimates of future cash flows to determine if undiscounted cash flows are sufficient to recover carrying values of these assets.
For assets where future cash flows are not expected to recover carrying value, fair value is estimated which requires an estimate of market value based upon asset appraisals for like assets.
|
|
These impairments are unpredictable. Impairments were $2 million in 2015, $1 million in 2014 and $2 million in 2013.
|
Inventory Reserves
|
|
|
|
|
We reduce the carrying value of inventories to reflect an estimate of net realizable value for obsolete and slow-moving inventory.
We value inventory at net realizable value (what we think we will recover). Generally a reserve is not required unless we have more than a one-year's supply of the product. If we have had no sales of a given product for 12 months, those items are generally deemed to have no value and are written down completely.
|
|
Our inventory reserve contains uncertainties because the calculation requires management to make assumptions about the value of products that are obsolete or slow-moving (i.e., not selling very quickly).
Changes in customer behavior and requirements can cause inventory to quickly become obsolete or slow moving.
The calculation also uses an estimate of the ultimate recoverability of items identified as slow moving based upon historical experience (65% on average).
|
|
At December 31, 2015, the reserve for obsolete and slow-moving inventory was $33 million (approximately 6% of FIFO inventories). This is consistent with the December 31, 2014 and 2013 reserves of $30 million and $36 million, respectively, representing 6% of FIFO inventories.
Additions to inventory reserves in 2015 were $10 million, which were comparable to the previous year. We do not expect obsolescence to change from current levels.
|
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Workers’ Compensation
|
|
|
|
|
We are substantially self-insured for costs related to workers’ compensation, and this requires us to estimate the liability associated with this obligation.
|
|
Our estimates of self-insured reserves contain uncertainties regarding the potential amounts we might have to pay (since we are self-insured). We consider a number of factors, including historical claim experience, demographic factors, and potential recoveries from third party insurance carriers.
|
|
Over the past five years, we have incurred, on average, $9 million annually for costs associated with workers’ compensation. Average year-to-year variation over the past five years has been approximately $1 million. At December 31, 2015, we had accrued $35 million to cover future self-insurance liabilities.
Internal safety statistics and cost trends have improved in the last several years and are expected to remain at current lower levels for the foreseeable future.
|
Credit Losses
|
|
|
|
|
For accounts and notes receivable, we estimate a bad debt reserve for the amount that will ultimately be uncollectible.
When we become aware of a specific customer’s potential inability to pay, we record a bad debt reserve for the amount we believe may not be collectible.
|
|
Our bad debt reserve contains uncertainties because it requires management to estimate the amount uncollectible based upon an evaluation of several factors such as the length of time that receivables are past due, the financial health of the customer, industry and macroeconomic considerations, and historical loss experience.
Our customers are diverse and many are small-to-medium sized companies, with some being highly leveraged. Bankruptcy can occur with some of these customers relatively quickly and with little warning.
|
|
A significant change in the financial status of a large customer could impact our estimates.
The average annual amount of customer-related bad debt expense was $5 million (significantly less than 1% of annual net sales) over the last three years. At December 31, 2015, our reserves for doubtful accounts totaled $10 million (about 2% of our accounts and customer-related notes receivable of $459 million).
We have not experienced any significant individual customer bankruptcies in the past three years. We believe the financial health of our major customers has modestly improved, but some are highly leveraged, and this could cause circumstances to change in the future.
At December 31, 2015, we had less than $1 million of non-customer notes receivable.
|
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Pension Accounting
|
|
|
|
|
For our pension plans, we must estimate the cost of benefits to be provided (well into the future) and the current value of those benefit obligations.
|
|
The pension liability calculation contains uncertainties because it requires management to estimate an appropriate discount rate to calculate the present value of future benefits paid, which also impacts current year pension expense.
Determination of pension expense requires an estimate of expected return on pension assets based upon the mix of investments held (bonds and equities).
Other assumptions include rates of compensation increases, withdrawal and mortality rates, and retirement ages. These estimates impact the pension expense or income we recognize and our reported benefit obligations. |
|
Each 25 basis point decrease in the discount rate increases pension expense by $.5 million and increases the plans’ benefit obligation by $9 million. A 25 basis point reduction in the expected return on assets would increase pension expense by $.4 million, but have no effect on the plans’ funded status. Assuming a long-term investment horizon, we do not expect a material change to the return on asset assumption. Mortality assumptions represent our best estimate of the duration of future benefit payments at the measurement date. These estimates are based on each plans' demographics and other relevant facts and circumstances. Longer life expectancies increased our pension liability for our most significant plans by approximately $20 million in 2014.
|
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Contingencies
|
|
|
|
|
We evaluate various legal, environmental, and other potential claims against us to determine if an accrual or disclosure of the contingency is appropriate. If it is probable that an ultimate loss will be incurred, we accrue a liability for the reasonable estimate of the ultimate loss.
|
|
Our disclosure and accrual of loss contingencies (i.e., losses that may or may not occur) contain uncertainties because they are based on our assessment of the likelihood that the expenses will actually occur, and our estimate of the likely cost. Our estimates and judgments are subjective and can involve matters in litigation, the results of which are generally unpredictable.
|
|
Legal contingencies are related to numerous lawsuits and claims described in Note T to the Consolidated Financial Statements on page 114. With the exception of 2014, our largest annual cost for litigation claims was $6 million for the five years ending December 31, 2015 (excluding legal fees).
During 2014, we recorded expense of $92 million ($57 million for continuing operations and $35 million in discontinued operations) for various proceedings and other claims. By far the largest portion of these accruals was associated with a series of antitrust lawsuits involving the sale of polyurethane foam as discussed in Note T to the Consolidated Financial Statements on page 114. During 2015, we settled the substantial majority of these cases.
|
Description
|
|
Judgments and
Uncertainties
|
|
Effect if Actual Results
Differ From Assumptions
|
Income Taxes
|
|
|
|
|
In the ordinary course of business, we must make estimates of the tax treatment of many transactions, even though the ultimate tax outcome may remain uncertain for some time. These estimates become part of the annual income tax expense reported in our financial statements. Subsequent to year end, we finalize our tax analysis and file income tax returns. Tax authorities periodically audit these income tax returns and examine our tax filing positions, including (among other things) the timing and amounts of deductions, and the allocation of income among tax jurisdictions. If necessary, we adjust income tax expense in our financial statements in the periods in which the actual outcome becomes more certain.
|
|
Our tax liability for unrecognized tax benefits contains uncertainties because management is required to make assumptions and to apply judgment to estimate the exposures related to our various filing positions.
Our effective tax rate is also impacted by changes in tax laws, the current mix of earnings by taxing jurisdiction, and the results of current tax audits and assessments.
At December 31, 2015 and 2014, we had $32 million and $34 million, respectively, of net deferred tax assets on our balance sheet related to net operating losses and other tax carryforwards. The ultimate realization of these deferred tax assets is dependent upon the amount, source, and timing of future taxable income. In cases where we believe it is more likely than not that we may not realize the future potential tax benefits, we establish a valuation allowance against them. In addition, assumptions have been made regarding the non-repatriation of earnings from certain subsidiaries. Those assumptions may change in the future, thereby affecting future period results for the tax impact of possible repatriation. |
|
Potential changes in tax laws could impact assumptions related to the non-repatriation of certain foreign earnings. If all non-repatriated earnings were taxed at current rates, we would incur additional taxes of approximately $107 million.
Audits by various taxing authorities continue as governments look for ways to raise additional revenue. Based upon past audit experience, we do not expect any material changes to our tax liability as a result of this audit activity; however, we could incur additional tax expense if we have audit adjustments higher than recent historical experience.
The likelihood of recovery of net operating losses and other tax carryforwards has been closely evaluated and is based upon such factors as the time remaining before expiration, viable tax planning strategies, and future taxable earnings expectations. We believe that appropriate valuation allowances have been recorded as necessary. However, if earnings expectations or other assumptions change such that additional valuation allowances are required, we could incur additional tax expense. Likewise, if fewer valuation allowances are needed, we could incur reduced tax expense. |
|
Twelve Months Ended December 31,
|
||||||
|
2015
|
|
2014
|
||||
Litigation contingency accrual - Beginning of period
|
$
|
83.9
|
|
|
$
|
3.7
|
|
Adjustment to accruals - expense - Continuing operations
|
5.7
|
|
|
56.8
|
|
||
Adjustment to accruals - expense - Discontinued operations
|
.7
|
|
|
35.4
|
|
||
Cash payments
|
(82.2
|
)
|
|
(12.0
|
)
|
||
Litigation contingency accrual - End of period
|
$
|
8.1
|
|
|
$
|
83.9
|
|
|
Scheduled Maturity Date
|
|
|
|
|
||||||||||||||||||||||||||
Long-term debt as of December 31,
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
2015
|
|
2014
|
||||||||||||||||
Principal fixed rate debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
600.0
|
|
|
$
|
750.0
|
|
|
$
|
950.0
|
|
Average interest rate
1
|
—
|
|
|
—
|
|
|
4.40
|
%
|
|
—
|
|
|
—
|
|
|
3.60
|
%
|
|
3.76
|
%
|
|
4.02
|
%
|
||||||||
Principal variable rate debt
|
2.3
|
|
|
2.3
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
14.7
|
|
|
14.7
|
|
||||||||
Average interest rate
|
.24
|
%
|
|
.35
|
%
|
|
.35
|
%
|
|
—
|
|
|
—
|
|
|
.35
|
%
|
|
.33
|
%
|
|
.18
|
%
|
||||||||
Miscellaneous debt
2
|
|
|
|
|
|
|
|
|
|
|
|
|
184.1
|
|
|
3.7
|
|
||||||||||||||
Total debt
|
|
|
|
|
|
|
|
|
|
|
|
|
948.8
|
|
|
968.4
|
|
||||||||||||||
Less: current maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.4
|
)
|
|
(201.7
|
)
|
||||||||||||||
Total long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
945.4
|
|
|
$
|
766.7
|
|
1.
|
These rates exclude the amortization of interest rate swap.
|
2.
|
Includes $181 and $0 of commercial paper in 2015 and 2014, respectively, supported by a $600 revolving credit agreement which terminates in 2019.
|
Functional Currency
|
|
2015
|
|
2014
|
||||
European Currencies
|
|
$
|
296.9
|
|
|
$
|
329.4
|
|
Chinese Renminbi
|
|
281.9
|
|
|
286.6
|
|
||
Canadian Dollar
|
|
155.6
|
|
|
192.7
|
|
||
Mexican Peso
|
|
26.2
|
|
|
29.2
|
|
||
Other
|
|
52.1
|
|
|
55.8
|
|
||
Total
|
|
$
|
812.7
|
|
|
$
|
893.7
|
|
|
Page No.
|
65
|
|
66
|
|
67
|
|
68
|
|
69
|
|
70
|
|
71
|
|
72
|
|
121
|
|
123
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of Leggett & Platt;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of Leggett & Platt are being made only in accordance with authorizations of management and directors of Leggett & Platt; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Leggett & Platt assets that could have a material effect on the financial statements.
|
/s/ KARL G. GLASSMAN
|
|
/s/ MATTHEW C. FLANIGAN
|
Karl G. Glassman
President and Chief Executive Officer
|
|
Matthew C. Flanigan
Executive Vice President and Chief Financial Officer
|
|
|
|
February 25, 2016
|
|
February 25, 2016
|
|
|||||||||||
|
Year Ended December 31
|
||||||||||
(Amounts in millions, except per share data)
|
2015
|
|
2014
|
|
2013
|
||||||
Net sales
|
$
|
3,917.2
|
|
|
$
|
3,782.3
|
|
|
$
|
3,477.2
|
|
Cost of goods sold
|
2,994.0
|
|
|
2,991.9
|
|
|
2,767.3
|
|
|||
Gross profit
|
923.2
|
|
|
790.4
|
|
|
709.9
|
|
|||
Selling and administrative expenses
|
416.9
|
|
|
449.6
|
|
|
367.9
|
|
|||
Amortization of intangibles
|
20.8
|
|
|
19.7
|
|
|
25.4
|
|
|||
Goodwill impairment
|
4.1
|
|
|
—
|
|
|
63.0
|
|
|||
Other (income) expense, net
|
(5.1
|
)
|
|
(10.4
|
)
|
|
(21.0
|
)
|
|||
Earnings from continuing operations before interest and income taxes
|
486.5
|
|
|
331.5
|
|
|
274.6
|
|
|||
Interest expense
|
41.1
|
|
|
41.8
|
|
|
44.7
|
|
|||
Interest income
|
4.4
|
|
|
5.8
|
|
|
7.7
|
|
|||
Earnings from continuing operations before income taxes
|
449.8
|
|
|
295.5
|
|
|
237.6
|
|
|||
Income taxes
|
121.8
|
|
|
70.3
|
|
|
51.3
|
|
|||
Earnings from continuing operations
|
328.0
|
|
|
225.2
|
|
|
186.3
|
|
|||
Earnings (loss) from discontinued operations, net of tax
|
1.2
|
|
|
(124.0
|
)
|
|
13.4
|
|
|||
Net earnings
|
329.2
|
|
|
101.2
|
|
|
199.7
|
|
|||
(Earnings) attributable to noncontrolling interest, net of tax
|
(4.1
|
)
|
|
(3.2
|
)
|
|
(2.4
|
)
|
|||
Net earnings attributable to Leggett & Platt, Inc. common shareholders
|
$
|
325.1
|
|
|
$
|
98.0
|
|
|
$
|
197.3
|
|
Earnings per share from continuing operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
||||||
Basic
|
$
|
2.30
|
|
|
$
|
1.57
|
|
|
$
|
1.27
|
|
Diluted
|
$
|
2.27
|
|
|
$
|
1.55
|
|
|
$
|
1.25
|
|
Earnings (loss) per share from discontinued operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
||||||
Basic
|
$
|
.01
|
|
|
$
|
(.88
|
)
|
|
$
|
.09
|
|
Diluted
|
$
|
.01
|
|
|
$
|
(.87
|
)
|
|
$
|
.09
|
|
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
||||||
Basic
|
$
|
2.31
|
|
|
$
|
.69
|
|
|
$
|
1.36
|
|
Diluted
|
$
|
2.28
|
|
|
$
|
.68
|
|
|
$
|
1.34
|
|
|
Year Ended December 31
|
||||||||||
(Amounts in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net earnings
|
$
|
329.2
|
|
|
$
|
101.2
|
|
|
$
|
199.7
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(92.1
|
)
|
|
(71.7
|
)
|
|
(5.0
|
)
|
|||
Cash flow hedges
|
(8.1
|
)
|
|
3.4
|
|
|
2.0
|
|
|||
Defined benefit pension plans
|
11.2
|
|
|
(29.0
|
)
|
|
26.7
|
|
|||
Other comprehensive income (loss)
|
(89.0
|
)
|
|
(97.3
|
)
|
|
23.7
|
|
|||
Comprehensive income
|
240.2
|
|
|
3.9
|
|
|
223.4
|
|
|||
Less: comprehensive (income) attributable to noncontrolling interest
|
(3.6
|
)
|
|
(3.0
|
)
|
|
(2.6
|
)
|
|||
Comprehensive income attributable to Leggett & Platt, Inc.
|
$
|
236.6
|
|
|
$
|
.9
|
|
|
$
|
220.8
|
|
|
December 31
|
||||||
(Amounts in millions, except per share data)
|
2015
|
|
2014
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
253.2
|
|
|
$
|
332.8
|
|
Trade receivables, net
|
448.7
|
|
|
470.4
|
|
||
Other receivables, net
|
71.5
|
|
|
52.9
|
|
||
Total receivables, net
|
520.2
|
|
|
523.3
|
|
||
Inventories
|
|
|
|
||||
Finished goods
|
242.8
|
|
|
251.9
|
|
||
Work in process
|
42.6
|
|
|
55.5
|
|
||
Raw materials and supplies
|
241.8
|
|
|
247.0
|
|
||
LIFO reserve
|
(22.6
|
)
|
|
(73.0
|
)
|
||
Total inventories, net
|
504.6
|
|
|
481.4
|
|
||
Other current assets
|
33.2
|
|
|
91.8
|
|
||
Total current assets
|
1,311.2
|
|
|
1,429.3
|
|
||
Property, Plant and Equipment—at cost
|
|
|
|
||||
Machinery and equipment
|
1,099.1
|
|
|
1,151.4
|
|
||
Buildings and other
|
548.2
|
|
|
551.1
|
|
||
Land
|
40.0
|
|
|
40.1
|
|
||
Total property, plant and equipment
|
1,687.3
|
|
|
1,742.6
|
|
||
Less accumulated depreciation
|
1,146.5
|
|
|
1,193.8
|
|
||
Net property, plant and equipment
|
540.8
|
|
|
548.8
|
|
||
Other Assets
|
|
|
|
||||
Goodwill
|
806.1
|
|
|
829.4
|
|
||
Other intangibles, less accumulated amortization of $142.1 and $129.7 at December 31, 2015 and 2014, respectively
|
192.3
|
|
|
204.7
|
|
||
Sundry
|
117.2
|
|
|
128.4
|
|
||
Total other assets
|
1,115.6
|
|
|
1,162.5
|
|
||
TOTAL ASSETS
|
$
|
2,967.6
|
|
|
$
|
3,140.6
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
3.4
|
|
|
$
|
201.7
|
|
Accounts payable
|
307.2
|
|
|
369.8
|
|
||
Accrued expenses
|
286.7
|
|
|
337.6
|
|
||
Other current liabilities
|
103.9
|
|
|
83.1
|
|
||
Total current liabilities
|
701.2
|
|
|
992.2
|
|
||
Long-term Liabilities
|
|
|
|
||||
Long-term debt
|
945.4
|
|
|
766.7
|
|
||
Other long-term liabilities
|
184.7
|
|
|
185.0
|
|
||
Deferred income taxes
|
38.6
|
|
|
41.8
|
|
||
Total long-term liabilities
|
1,168.7
|
|
|
993.5
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Capital stock: Preferred stock—authorized, 100.0 shares; none issued; Common stock—authorized, 600.0 shares of $.01 par value; 198.8 shares issued
|
2.0
|
|
|
2.0
|
|
||
Additional contributed capital
|
529.5
|
|
|
502.4
|
|
||
Retained earnings
|
2,209.2
|
|
|
2,061.3
|
|
||
Accumulated other comprehensive income (loss)
|
(91.1
|
)
|
|
(2.6
|
)
|
||
Less treasury stock—at cost (63.2 and 61.0 shares at December 31, 2015 and 2014, respectively)
|
(1,564.0
|
)
|
|
(1,416.6
|
)
|
||
Total Leggett & Platt, Inc. equity
|
1,085.6
|
|
|
1,146.5
|
|
||
Noncontrolling interest
|
12.1
|
|
|
8.4
|
|
||
Total equity
|
1,097.7
|
|
|
1,154.9
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,967.6
|
|
|
$
|
3,140.6
|
|
|
Year Ended December 31
|
||||||||||
(Amounts in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net earnings
|
$
|
329.2
|
|
|
$
|
101.2
|
|
|
$
|
199.7
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
83.5
|
|
|
89.9
|
|
|
90.1
|
|
|||
Amortization of intangibles and debt issuance costs
|
29.7
|
|
|
28.0
|
|
|
32.5
|
|
|||
Long-lived asset impairments
|
2.4
|
|
|
1.3
|
|
|
2.4
|
|
|||
Goodwill impairment
|
4.1
|
|
|
108.0
|
|
|
63.0
|
|
|||
Provision for losses on accounts and notes receivable
|
2.6
|
|
|
4.9
|
|
|
6.1
|
|
|||
Writedown of inventories
|
9.8
|
|
|
10.0
|
|
|
11.8
|
|
|||
Net (gain) loss from sales of assets and businesses
|
(3.7
|
)
|
|
4.2
|
|
|
(8.6
|
)
|
|||
Bargain purchase gain from acquisition
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
|||
Deferred income tax expense (benefit)
|
24.1
|
|
|
(39.8
|
)
|
|
(32.9
|
)
|
|||
Stock-based compensation
|
45.2
|
|
|
41.6
|
|
|
36.3
|
|
|||
Excess tax benefits from stock-based compensation
|
(15.7
|
)
|
|
(10.6
|
)
|
|
(6.6
|
)
|
|||
Pension expense (benefit), net of contributions
|
15.6
|
|
|
(1.0
|
)
|
|
4.5
|
|
|||
Other, net
|
3.1
|
|
|
(9.4
|
)
|
|
1.0
|
|
|||
Increases/decreases in, excluding effects from acquisitions and divestitures:
|
|
|
|
|
|
||||||
Accounts and other receivables
|
(16.4
|
)
|
|
(97.7
|
)
|
|
(13.3
|
)
|
|||
Inventories
|
(49.1
|
)
|
|
(21.9
|
)
|
|
(4.1
|
)
|
|||
Other current assets
|
(.4
|
)
|
|
1.4
|
|
|
(1.0
|
)
|
|||
Accounts payable
|
(54.3
|
)
|
|
47.5
|
|
|
35.0
|
|
|||
Accrued expenses and other current liabilities
|
(50.6
|
)
|
|
124.3
|
|
|
9.8
|
|
|||
Net Cash Provided by Operating Activities
|
359.1
|
|
|
381.9
|
|
|
416.9
|
|
|||
Investing Activities
|
|
|
|
|
|
|
|||||
Additions to property, plant and equipment
|
(103.2
|
)
|
|
(94.1
|
)
|
|
(80.6
|
)
|
|||
Purchases of companies, net of cash acquired
|
(11.1
|
)
|
|
(70.4
|
)
|
|
(27.9
|
)
|
|||
Proceeds from sales of assets and businesses
|
51.4
|
|
|
76.5
|
|
|
18.9
|
|
|||
Liquidation of unconsolidated entity
|
—
|
|
|
—
|
|
|
21.2
|
|
|||
Other, net
|
(6.7
|
)
|
|
(14.7
|
)
|
|
(6.9
|
)
|
|||
Net Cash Used for Investing Activities
|
(69.6
|
)
|
|
(102.7
|
)
|
|
(75.3
|
)
|
|||
Financing Activities
|
|
|
|
|
|
|
|||||
Additions to long-term debt
|
.4
|
|
|
299.3
|
|
|
—
|
|
|||
Payments on long-term debt
|
(205.0
|
)
|
|
(188.1
|
)
|
|
(203.7
|
)
|
|||
Change in commercial paper and short-term debt
|
201.3
|
|
|
(24.2
|
)
|
|
23.3
|
|
|||
Dividends paid
|
(171.6
|
)
|
|
(167.5
|
)
|
|
(124.9
|
)
|
|||
Issuances of common stock
|
8.3
|
|
|
21.8
|
|
|
36.9
|
|
|||
Purchases of common stock
|
(191.5
|
)
|
|
(149.7
|
)
|
|
(169.4
|
)
|
|||
Excess tax benefits from stock-based compensation
|
15.7
|
|
|
10.6
|
|
|
6.6
|
|
|||
Other, net
|
(6.8
|
)
|
|
(5.8
|
)
|
|
(3.1
|
)
|
|||
Net Cash Used for Financing Activities
|
(349.2
|
)
|
|
(203.6
|
)
|
|
(434.3
|
)
|
|||
Effect of Exchange Rate Changes on Cash
|
(19.9
|
)
|
|
(15.5
|
)
|
|
6.3
|
|
|||
Increase (decrease) in Cash and Cash Equivalents
|
(79.6
|
)
|
|
60.1
|
|
|
(86.4
|
)
|
|||
Cash and Cash Equivalents—Beginning of Year
|
332.8
|
|
|
272.7
|
|
|
359.1
|
|
|||
Cash and Cash Equivalents—End of Year
|
$
|
253.2
|
|
|
$
|
332.8
|
|
|
$
|
272.7
|
|
Supplemental Information
|
|
|
|
|
|
||||||
Interest paid (net of amounts capitalized)
|
$
|
43.6
|
|
|
$
|
40.1
|
|
|
$
|
45.2
|
|
Income taxes paid
|
91.6
|
|
|
84.6
|
|
|
71.1
|
|
|||
Property, plant and equipment acquired through capital leases
|
1.6
|
|
|
3.7
|
|
|
1.1
|
|
(Amounts in millions, except per
share data)
|
Common Stock
|
|
Additional
Contributed
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Non-controlling
Interest
|
|
Total
Equity
|
||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
Balance, December 31, 2012
|
198.8
|
|
|
$
|
2.0
|
|
|
$
|
458.6
|
|
|
$
|
2,109.6
|
|
|
$
|
71.0
|
|
|
(56.7
|
)
|
|
$
|
(1,206.7
|
)
|
|
$
|
7.7
|
|
|
$
|
1,442.2
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
199.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199.7
|
|
|||||||
(Earnings) attributable to noncontrolling interest, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|||||||
Dividends declared (A)
|
—
|
|
|
—
|
|
|
3.5
|
|
|
(170.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167.0
|
)
|
|||||||
Dividends paid to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
(2.4
|
)
|
|||||||
Treasury stock purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
|
(183.6
|
)
|
|
—
|
|
|
(183.6
|
)
|
|||||||
Treasury stock issued
|
—
|
|
|
—
|
|
|
(12.8
|
)
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
69.6
|
|
|
—
|
|
|
56.8
|
|
|||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
.2
|
|
|
(5.0
|
)
|
|||||||
Cash flow hedges, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|||||||
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.7
|
|
|||||||
Stock options and benefit plan transactions, net of tax
|
—
|
|
|
—
|
|
|
29.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.8
|
|
|||||||
Balance, December 31, 2013
|
198.8
|
|
|
$
|
2.0
|
|
|
$
|
479.1
|
|
|
$
|
2,136.4
|
|
|
$
|
94.5
|
|
|
(59.4
|
)
|
|
$
|
(1,320.7
|
)
|
|
$
|
7.9
|
|
|
$
|
1,399.2
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
101.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101.2
|
|
|||||||
(Earnings) attributable to noncontrolling interest, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
—
|
|
|||||||
Dividends declared (A)
|
—
|
|
|
—
|
|
|
4.9
|
|
|
(173.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(168.2
|
)
|
|||||||
Dividends paid to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
|||||||
Treasury stock purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.4
|
)
|
|
(183.9
|
)
|
|
—
|
|
|
(183.9
|
)
|
|||||||
Treasury stock issued
|
—
|
|
|
—
|
|
|
(16.0
|
)
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
88.0
|
|
|
—
|
|
|
72.0
|
|
|||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71.5
|
)
|
|
—
|
|
|
—
|
|
|
(.2
|
)
|
|
(71.7
|
)
|
|||||||
Cash flow hedges, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|||||||
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.0
|
)
|
|||||||
Stock options and benefit plan transactions, net of tax
|
—
|
|
|
—
|
|
|
34.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.4
|
|
|||||||
Balance, December 31, 2014
|
198.8
|
|
|
$
|
2.0
|
|
|
$
|
502.4
|
|
|
$
|
2,061.3
|
|
|
$
|
(2.6
|
)
|
|
(61.0
|
)
|
|
$
|
(1,416.6
|
)
|
|
$
|
8.4
|
|
|
$
|
1,154.9
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
329.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329.2
|
|
|||||||
(Earnings) attributable to noncontrolling interest, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|||||||
Dividends declared (A)
|
—
|
|
|
—
|
|
|
4.9
|
|
|
(177.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(172.3
|
)
|
|||||||
Treasury stock purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
|
(198.2
|
)
|
|
—
|
|
|
(198.2
|
)
|
|||||||
Treasury stock issued
|
—
|
|
|
—
|
|
|
(20.7
|
)
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
50.8
|
|
|
—
|
|
|
30.1
|
|
|||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91.6
|
)
|
|
—
|
|
|
—
|
|
|
(.5
|
)
|
|
(92.1
|
)
|
|||||||
Cash flow hedges, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
|||||||
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|||||||
Stock options and benefit plan transactions, net of tax
|
—
|
|
|
—
|
|
|
42.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.9
|
|
|||||||
Acquisition of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
.1
|
|
|||||||
Balance, December 31, 2015
|
198.8
|
|
|
$
|
2.0
|
|
|
$
|
529.5
|
|
|
$
|
2,209.2
|
|
|
$
|
(91.1
|
)
|
|
(63.2
|
)
|
|
$
|
(1,564.0
|
)
|
|
$
|
12.1
|
|
|
$
|
1,097.7
|
|
|
2015
|
|
2014
|
||||
Balance, beginning of year
|
$
|
73.0
|
|
|
$
|
73.3
|
|
LIFO (benefit) expense
|
(46.4
|
)
|
|
.9
|
|
||
Allocated to divested businesses
|
(4.0
|
)
|
|
(1.2
|
)
|
||
Balance, end of year
|
$
|
22.6
|
|
|
$
|
73.0
|
|
|
Useful Life Range
|
|
Weighted
Average Life
|
Other intangible assets
|
1-40 years
|
|
15 years
|
•
|
During the third quarter of 2014, all of the criteria to classify this unit as held for sale and discontinued operations were met. Store Fixtures was previously part of the Commercial Products segment.
|
•
|
During the fourth quarter of 2014, we sold the majority of the Store Fixtures reporting unit.
|
•
|
During 2015, we sold the remainder of the Store Fixtures operations.
|
•
|
Total consideration for these businesses was approximately
$72
. No significant gains or losses were realized on the sale of these businesses.
|
•
|
We closed our final location that produced wire dishwasher racks, thereby discontinuing that line of business. This operation was previously in our Industrial Materials segment. Tax benefits related to this business were recorded in both 2012 and 2013.
|
•
|
We divested the specialty trailers portion of the Commercial Vehicle Products (CVP) unit. This branch was previously part of the Specialized Products segment. No significant gains or losses were realized on the sale of this business.
|
•
|
We closed a cotton-based erosion control products operation that was previously part of the Industrial Materials segment. Charges of
$1.9
were recorded in 2013 to reflect estimates of fair value less costs to sell, including
$1.5
of fixed asset impairments as discussed in Note C.
|
|
Year Ended
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
External sales:
|
|
|
|
|
|
||||||
Commercial Products - Store Fixtures
|
$
|
19.4
|
|
|
$
|
167.4
|
|
|
$
|
268.8
|
|
Industrial Materials:
|
|
|
|
|
|
||||||
Wire dishwasher racks
|
—
|
|
|
—
|
|
|
4.1
|
|
|||
Cotton-based erosion control products
|
—
|
|
|
—
|
|
|
.1
|
|
|||
Specialized Products - the specialty trailers portion of the CVP unit
|
—
|
|
|
—
|
|
|
.5
|
|
|||
Total external sales
|
$
|
19.4
|
|
|
$
|
167.4
|
|
|
$
|
273.5
|
|
Earnings (loss):
|
|
|
|
|
|
||||||
Commercial Products - Store Fixtures (1)
|
$
|
3.4
|
|
|
$
|
(120.9
|
)
|
|
$
|
10.2
|
|
Industrial Materials:
|
|
|
|
|
|
||||||
Wire dishwasher racks
|
(.2
|
)
|
|
—
|
|
|
1.0
|
|
|||
Cotton-based erosion control products
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|||
Specialized Products - the specialty trailers portion of the CVP unit
|
—
|
|
|
—
|
|
|
(.7
|
)
|
|||
Subsequent activity related to divestitures completed prior to 2013 (2)
|
(1.3
|
)
|
|
(35.4
|
)
|
|
.5
|
|
|||
Earnings (loss) before interest and income taxes (EBIT)
|
1.9
|
|
|
(156.3
|
)
|
|
7.9
|
|
|||
Income tax (expense) benefit (3)
|
(.7
|
)
|
|
32.3
|
|
|
5.5
|
|
|||
Earnings (loss) from discontinued operations, net of tax
|
$
|
1.2
|
|
|
$
|
(124.0
|
)
|
|
$
|
13.4
|
|
(1)
|
This includes goodwill impairment charges of
$108.0
in 2014 as discussed in Note C.
|
(2)
|
Subsequent activity for businesses divested in prior years has been reported as discontinued operations in the table above, including an antitrust litigation settlement discussed in Note T of
$.7
and
$35.3
, in 2015 and 2014, respectively, associated with our former Prime Foam Products unit. This unit was sold in March 2007 and was previously part of the Residential Furnishings segment.
|
(3)
|
The 2014 tax benefit is primarily related to the Store Fixtures goodwill impairment and the Prime Foam litigation. The 2013 tax amount includes benefits related to a worthless stock deduction of the subsidiary that produced wire dishwasher racks.
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
Assets
|
|
Liabilities
|
|
Net Assets
|
|
Assets
|
|
Liabilities
|
|
Net Assets
|
||||||||||||
Residential Furnishings
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
4.1
|
|
|
$
|
—
|
|
|
$
|
4.1
|
|
Commercial Products
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
20.1
|
|
|
5.6
|
|
|
14.5
|
|
||||||
Industrial Materials
|
3.2
|
|
|
—
|
|
|
3.2
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
||||||
Specialized Products
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
||||||
|
$
|
8.4
|
|
|
$
|
—
|
|
|
$
|
8.4
|
|
|
$
|
32.8
|
|
|
$
|
5.6
|
|
|
$
|
27.2
|
|
|
2015
|
|
2014
|
||||
Current assets associated with discontinued operations:
|
|
|
|
||||
Trade receivables, net
|
$
|
—
|
|
|
$
|
7.0
|
|
Other receivables, net
|
—
|
|
|
.3
|
|
||
Inventories, net
|
—
|
|
|
3.0
|
|
||
Other current assets
|
—
|
|
|
.1
|
|
||
Total current assets held for sale associated with discontinued operations
|
—
|
|
|
10.4
|
|
||
Total current assets held for sale (included in "Other current assets")
|
—
|
|
|
10.4
|
|
||
Non-current assets associated with discontinued operations:
|
|
|
|
||||
Property, plant and equipment, net
|
—
|
|
|
5.2
|
|
||
Other intangibles, net
|
—
|
|
|
.6
|
|
||
Sundry
|
—
|
|
|
1.4
|
|
||
Total non-current assets held for sale associated with discontinued operations
|
—
|
|
|
7.2
|
|
||
Non-current assets held for sale not associated with discontinued operations *
|
8.4
|
|
|
15.2
|
|
||
Total non-current assets held for sale (included in "Sundry")
|
8.4
|
|
|
22.4
|
|
||
Total assets held for sale
|
8.4
|
|
|
32.8
|
|
||
Current liabilities associated with discontinued operations:
|
|
|
|
||||
Accounts payable
|
—
|
|
|
3.7
|
|
||
Accrued expenses
|
—
|
|
|
1.5
|
|
||
Other current liabilities
|
—
|
|
|
.3
|
|
||
Total current liabilities held for sale associated with discontinued operations
|
—
|
|
|
5.5
|
|
||
Total current liabilities held for sale not associated with discontinued operations
|
—
|
|
|
—
|
|
||
Total current liabilities held for sale (included in "Other current liabilities")
|
—
|
|
|
5.5
|
|
||
Long-term liabilities associated with discontinued operations:
|
|
|
|
||||
Deferred income tax (included in "Other long-term liabilities")
|
—
|
|
|
.1
|
|
||
Total liabilities held for sale
|
—
|
|
|
5.6
|
|
||
|
|
|
|
||||
Net assets held for sale
|
$
|
8.4
|
|
|
$
|
27.2
|
|
•
|
Our Steel Tubing business, which reached held-for-sale status in the first quarter of 2015. The results for this operation (including
$5.5
of impairment charges discussed in Note C and a pre-tax loss on sale of
$3.2
) are included in the Industrial Materials segment. The pre-tax loss on sale is reported in "Other (income) expense, net" on the Consolidated Statements of Operations. External sales for this business were
$88.9
,
$94.3
, and
$91.8
, and EBIT was
$.2
,
$(1.8)
, and
$(.2)
, for 2015, 2014, and 2013, respectively.
|
•
|
A small operation within our CVP business, which had not reached held-for-sale status prior to the sale. The results for this operation (including a pre-tax gain on sale of
$1.3
) are included in the Specialized Products segment. The pre-tax gain on sale is reported in "Other (income) expense, net" on the Consolidated Statements of Operations. External sales for this business were
$9.4
,
$17.3
, and
$19.0
, and EBIT was
$(.5)
,
$(1.5)
, and
$(2.9)
for 2015, 2014, and 2013, respectively.
|
|
Year Ended
|
||||||||||||||||||||||||||||||||||
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
||||||||||||||||||
|
Goodwill Impairment
|
|
Other Long-Lived Asset Impairments
|
|
Total Impairments
|
|
Goodwill Impairment
|
|
Other Long-Lived Asset Impairments
|
|
Total Impairments
|
|
Goodwill Impairment
|
|
Other Long-Lived Asset Impairments
|
|
Total Impairments
|
||||||||||||||||||
Continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential Furnishings
|
$
|
—
|
|
|
$
|
.2
|
|
|
$
|
.2
|
|
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
.8
|
|
|
$
|
.8
|
|
Industrial Materials - Steel Tubing
|
4.1
|
|
|
1.4
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Specialized Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
CVP unit
|
—
|
|
|
.1
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.0
|
|
|
—
|
|
|
63.0
|
|
|||||||||
Other units
|
—
|
|
|
.5
|
|
|
.5
|
|
|
—
|
|
|
.1
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total continuing operations
|
4.1
|
|
|
2.2
|
|
|
6.3
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
|
63.0
|
|
|
.8
|
|
|
63.8
|
|
|||||||||
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Products - Store Fixtures
|
—
|
|
|
—
|
|
|
—
|
|
|
108.0
|
|
|
—
|
|
|
108.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Industrial Materials:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cotton-based erosion control products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
1.5
|
|
|||||||||
Wire dishwasher racks
|
—
|
|
|
.2
|
|
|
.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Subsequent activity related to divestitures completed prior to 2013
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
.1
|
|
|||||||||
Total discontinued operations
|
—
|
|
|
.2
|
|
|
.2
|
|
|
108.0
|
|
|
—
|
|
|
108.0
|
|
|
—
|
|
|
1.6
|
|
|
1.6
|
|
|||||||||
Total impairment charges
|
$
|
4.1
|
|
|
$
|
2.4
|
|
|
$
|
6.5
|
|
|
$
|
108.0
|
|
|
$
|
1.3
|
|
|
$
|
109.3
|
|
|
$
|
63.0
|
|
|
$
|
2.4
|
|
|
$
|
65.4
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Continuing operations:
|
|
|
|
|
|
||||||
Charged to other (income) expense, net:
|
|
|
|
|
|
||||||
Severance and other restructuring costs
|
$
|
1.6
|
|
|
$
|
.9
|
|
|
$
|
2.1
|
|
(Gain) loss from sale of assets and businesses
|
2.4
|
|
|
(.1
|
)
|
|
(.2
|
)
|
|||
Inventory obsolescence and other
|
.3
|
|
|
—
|
|
|
—
|
|
|||
Total continuing operations
|
4.3
|
|
|
.8
|
|
|
1.9
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Severance and other restructuring costs
|
(.1
|
)
|
|
1.8
|
|
|
.2
|
|
|||
(Gain) loss from sale of assets and businesses
|
(3.2
|
)
|
|
8.6
|
|
|
(.5
|
)
|
|||
Total discontinued operations
|
(3.3
|
)
|
|
10.4
|
|
|
(.3
|
)
|
|||
Total restructuring and restructuring-related costs
|
$
|
1.0
|
|
|
$
|
11.2
|
|
|
$
|
1.6
|
|
Portion of total that represents cash charges
|
$
|
1.5
|
|
|
$
|
2.7
|
|
|
$
|
2.3
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Continuing operations:
|
|
|
|
|
|
||||||
Residential Furnishings
|
$
|
.5
|
|
|
$
|
.3
|
|
|
$
|
1.7
|
|
Industrial Materials
|
3.8
|
|
|
.1
|
|
|
(.1
|
)
|
|||
Specialized Products
|
—
|
|
|
.4
|
|
|
.3
|
|
|||
Total continuing operations
|
4.3
|
|
|
.8
|
|
|
1.9
|
|
|||
Discontinued operations
|
(3.3
|
)
|
|
10.4
|
|
|
(.3
|
)
|
|||
Total
|
$
|
1.0
|
|
|
$
|
11.2
|
|
|
$
|
1.6
|
|
|
Balance at
December 31,
2013
|
|
2014
Charges
|
|
2014
Payments
|
|
Balance at
December 31,
2014
|
|
2015
Charges
|
|
2015 Payments
|
|
Balance at
December 31,
2015
|
||||||||||||||
Termination benefits
|
$
|
.1
|
|
|
$
|
2.6
|
|
|
$
|
1.6
|
|
|
$
|
1.1
|
|
|
$
|
.8
|
|
|
$
|
1.8
|
|
|
$
|
.1
|
|
Contract termination costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.4
|
|
|
.3
|
|
|
.1
|
|
|||||||
Other restructuring costs
|
.7
|
|
|
.1
|
|
|
.3
|
|
|
.5
|
|
|
.3
|
|
|
.3
|
|
|
.5
|
|
|||||||
|
$
|
.8
|
|
|
$
|
2.7
|
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
|
$
|
1.5
|
|
|
$
|
2.4
|
|
|
$
|
.7
|
|
|
Residential
Furnishings
|
|
Commercial
Products
|
|
Industrial
Materials
|
|
Specialized
Products
|
|
Total
|
||||||||||
Net goodwill as of January 1, 2014 (1)
|
$
|
373.4
|
|
|
$
|
225.4
|
|
|
$
|
81.2
|
|
|
$
|
246.8
|
|
|
$
|
926.8
|
|
Additions for current year acquisitions
|
29.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.4
|
|
|||||
Adjustments to prior year acquisitions
|
.1
|
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|||||
Impairment charge (2)
|
—
|
|
|
(108.0
|
)
|
|
—
|
|
|
—
|
|
|
(108.0
|
)
|
|||||
Foreign currency translation adjustment/other
|
(6.0
|
)
|
|
(1.6
|
)
|
|
(.2
|
)
|
|
(11.0
|
)
|
|
(18.8
|
)
|
|||||
Net goodwill as of December 31, 2014
|
396.9
|
|
|
115.8
|
|
|
81.0
|
|
|
235.7
|
|
|
829.4
|
|
|||||
Additions for current year acquisitions
|
—
|
|
|
7.9
|
|
|
—
|
|
|
—
|
|
|
7.9
|
|
|||||
Adjustments to prior year acquisitions
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|||||
Reductions for sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
(.4
|
)
|
|
(.4
|
)
|
|||||
Impairment charge (3)
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
(4.1
|
)
|
|||||
Foreign currency translation adjustment/other
|
(11.7
|
)
|
|
(2.6
|
)
|
|
(.2
|
)
|
|
(13.3
|
)
|
|
(27.8
|
)
|
|||||
Net goodwill as of December 31, 2015
|
$
|
386.3
|
|
|
$
|
121.1
|
|
|
$
|
76.7
|
|
|
$
|
222.0
|
|
|
$
|
806.1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net goodwill as of December 31, 2015 is comprised of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross goodwill
|
$
|
386.3
|
|
|
$
|
371.7
|
|
|
$
|
80.8
|
|
|
$
|
285.0
|
|
|
$
|
1,123.8
|
|
Accumulated impairment losses
|
—
|
|
|
(250.6
|
)
|
|
(4.1
|
)
|
|
(63.0
|
)
|
|
(317.7
|
)
|
|||||
Net goodwill as of December 31, 2015
|
$
|
386.3
|
|
|
$
|
121.1
|
|
|
$
|
76.7
|
|
|
$
|
222.0
|
|
|
$
|
806.1
|
|
|
Debt
Issue
Costs
|
|
Patents
and
Trademarks
|
|
Non-compete
Agreements
|
|
Customer- Related Intangibles
|
|
Supply
Agreements
and Other
|
|
Total
|
||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross carrying amount
|
$
|
8.4
|
|
|
$
|
60.4
|
|
|
$
|
11.5
|
|
|
$
|
224.4
|
|
|
$
|
29.7
|
|
|
$
|
334.4
|
|
Accumulated amortization
|
3.6
|
|
|
31.4
|
|
|
2.8
|
|
|
90.9
|
|
|
13.4
|
|
|
142.1
|
|
||||||
Net other intangibles as of December 31, 2015
|
$
|
4.8
|
|
|
$
|
29.0
|
|
|
$
|
8.7
|
|
|
$
|
133.5
|
|
|
$
|
16.3
|
|
|
$
|
192.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquired during 2015:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquired related to business acquisitions
|
$
|
—
|
|
|
$
|
4.6
|
|
|
$
|
5.1
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
14.9
|
|
Acquired outside business acquisitions
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
2.9
|
|
||||||
Total acquired in 2015
|
$
|
—
|
|
|
$
|
6.4
|
|
|
$
|
5.1
|
|
|
$
|
5.2
|
|
|
$
|
1.1
|
|
|
$
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average amortization period in years for items acquired in 2015
|
0.0
|
|
|
5.2
|
|
|
10.0
|
|
|
19.0
|
|
|
3.9
|
|
|
10.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross carrying amount
|
$
|
10.1
|
|
|
$
|
57.8
|
|
|
$
|
7.6
|
|
|
$
|
223.9
|
|
|
$
|
35.0
|
|
|
$
|
334.4
|
|
Accumulated amortization
|
4.2
|
|
|
29.7
|
|
|
1.4
|
|
|
78.8
|
|
|
15.6
|
|
|
129.7
|
|
||||||
Net other intangibles as of December 31, 2014
|
$
|
5.9
|
|
|
$
|
28.1
|
|
|
$
|
6.2
|
|
|
$
|
145.1
|
|
|
$
|
19.4
|
|
|
$
|
204.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquired during 2014:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquired related to business acquisitions
|
$
|
—
|
|
|
$
|
5.0
|
|
|
$
|
5.5
|
|
|
$
|
1.1
|
|
|
$
|
2.5
|
|
|
$
|
14.1
|
|
Acquired outside business acquisitions
|
2.9
|
|
|
1.4
|
|
|
.2
|
|
|
2.3
|
|
|
7.3
|
|
|
14.1
|
|
||||||
Total acquired in 2014
|
$
|
2.9
|
|
|
$
|
6.4
|
|
|
$
|
5.7
|
|
|
$
|
3.4
|
|
|
$
|
9.8
|
|
|
$
|
28.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average amortization period in years for items acquired in 2014
|
10.0
|
|
|
11.3
|
|
|
5.0
|
|
|
11.2
|
|
|
7.1
|
|
|
8.4
|
|
•
|
Residential Furnishings—components for bedding and furniture, fabric and carpet cushion
|
•
|
Commercial Products—components for office and institutional furnishings, adjustable beds and consumer products
|
•
|
Industrial Materials—drawn steel wire, fabricated wire products, and steel rod
|
•
|
Specialized Products—automotive seating components, tubing and sub-assemblies for the aerospace industry, specialized machinery and equipment, and commercial vehicle interiors
|
|
Year Ended December 31
|
||||||||||||||
|
External
Sales
|
|
Inter-
Segment
Sales
|
|
Total
Sales
|
|
EBIT
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
2,036.2
|
|
|
$
|
27.8
|
|
|
$
|
2,064.0
|
|
|
$
|
205.0
|
|
Commercial Products
|
539.8
|
|
|
83.5
|
|
|
623.3
|
|
|
42.3
|
|
||||
Industrial Materials
|
427.6
|
|
|
349.0
|
|
|
776.6
|
|
|
50.4
|
|
||||
Specialized Products
|
913.6
|
|
|
41.1
|
|
|
954.7
|
|
|
155.6
|
|
||||
Intersegment eliminations and other (1)
|
|
|
|
|
|
|
(13.2
|
)
|
|||||||
Adjustment to LIFO method
|
|
|
|
|
|
|
46.4
|
|
|||||||
|
$
|
3,917.2
|
|
|
$
|
501.4
|
|
|
$
|
4,418.6
|
|
|
$
|
486.5
|
|
2014
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
1,937.4
|
|
|
$
|
20.2
|
|
|
$
|
1,957.6
|
|
|
$
|
135.7
|
|
Commercial Products
|
471.6
|
|
|
43.8
|
|
|
515.4
|
|
|
30.9
|
|
||||
Industrial Materials
|
492.0
|
|
|
321.3
|
|
|
813.3
|
|
|
43.2
|
|
||||
Specialized Products
|
881.3
|
|
|
32.9
|
|
|
914.2
|
|
|
125.4
|
|
||||
Intersegment eliminations and other
|
|
|
|
|
|
|
(2.8
|
)
|
|||||||
Adjustment to LIFO method
|
|
|
|
|
|
|
(.9
|
)
|
|||||||
|
$
|
3,782.3
|
|
|
$
|
418.2
|
|
|
$
|
4,200.5
|
|
|
$
|
331.5
|
|
2013
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
1,709.2
|
|
|
$
|
16.4
|
|
|
$
|
1,725.6
|
|
|
$
|
151.4
|
|
Commercial Products
|
454.4
|
|
|
14.4
|
|
|
468.8
|
|
|
27.8
|
|
||||
Industrial Materials
|
529.6
|
|
|
260.2
|
|
|
789.8
|
|
|
56.7
|
|
||||
Specialized Products
|
784.0
|
|
|
32.6
|
|
|
816.6
|
|
|
34.0
|
|
||||
Intersegment eliminations and other (2)
|
|
|
|
|
|
|
8.6
|
|
|||||||
Adjustment to LIFO method
|
|
|
|
|
|
|
(3.9
|
)
|
|||||||
|
$
|
3,477.2
|
|
|
$
|
323.6
|
|
|
$
|
3,800.8
|
|
|
$
|
274.6
|
|
|
Year Ended December 31
|
||||||||||||||
|
Assets
|
|
Additions
to
Property,
Plant and
Equipment
|
|
Acquired
Companies’
Long-Lived
Assets
|
|
Depreciation
And
Amortization
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
623.7
|
|
|
$
|
44.8
|
|
|
$
|
.2
|
|
|
$
|
48.9
|
|
Commercial Products
|
110.2
|
|
|
4.6
|
|
|
25.4
|
|
|
5.7
|
|
||||
Industrial Materials
|
186.7
|
|
|
12.5
|
|
|
—
|
|
|
14.2
|
|
||||
Specialized Products
|
256.4
|
|
|
31.7
|
|
|
—
|
|
|
29.8
|
|
||||
Other (1)
|
6.3
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
||||
Average current liabilities included in segment numbers above
|
516.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unallocated assets (2)
|
1,390.9
|
|
|
9.6
|
|
|
—
|
|
|
14.5
|
|
||||
Difference between average assets and year-end balance sheet
|
(123.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
2,967.6
|
|
|
$
|
103.2
|
|
|
$
|
25.6
|
|
|
$
|
113.2
|
|
2014
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
586.4
|
|
|
$
|
48.8
|
|
|
$
|
60.8
|
|
|
$
|
48.5
|
|
Commercial Products
|
96.2
|
|
|
3.2
|
|
|
—
|
|
|
5.8
|
|
||||
Industrial Materials
|
202.6
|
|
|
13.6
|
|
|
—
|
|
|
14.0
|
|
||||
Specialized Products
|
261.2
|
|
|
25.5
|
|
|
—
|
|
|
30.7
|
|
||||
Other (1)
|
68.0
|
|
|
1.4
|
|
|
—
|
|
|
2.9
|
|
||||
Average current liabilities included in segment numbers above
|
520.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unallocated assets (2)
|
1,470.4
|
|
|
1.6
|
|
|
—
|
|
|
16.0
|
|
||||
Difference between average assets and year-end balance sheet
|
(65.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
3,140.6
|
|
|
$
|
94.1
|
|
|
$
|
60.8
|
|
|
$
|
117.9
|
|
2013
|
|
|
|
|
|
|
|
||||||||
Residential Furnishings
|
$
|
575.3
|
|
|
$
|
36.9
|
|
|
$
|
3.9
|
|
|
$
|
46.7
|
|
Commercial Products
|
98.6
|
|
|
2.7
|
|
|
—
|
|
|
6.5
|
|
||||
Industrial Materials
|
209.6
|
|
|
11.8
|
|
|
.1
|
|
|
14.1
|
|
||||
Specialized Products
|
224.5
|
|
|
25.9
|
|
|
30.9
|
|
|
33.1
|
|
||||
Other (1)
|
99.6
|
|
|
1.1
|
|
|
—
|
|
|
6.1
|
|
||||
Average current liabilities included in segment numbers above
|
461.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unallocated assets (2)
|
1,492.0
|
|
|
2.2
|
|
|
—
|
|
|
16.1
|
|
||||
Difference between average assets and year-end balance sheet
|
(53.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
3,108.1
|
|
|
$
|
80.6
|
|
|
$
|
34.9
|
|
|
$
|
122.6
|
|
(1)
|
Businesses sold or classified as discontinued operations during the years presented.
|
(2)
|
Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. Unallocated depreciation and amortization consists primarily of depreciation of non-operating assets and amortization of debt issue costs.
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Residential Furnishings
|
|
|
|
|
|
||||||
Bedding group
|
$
|
918.3
|
|
|
$
|
833.5
|
|
|
$
|
697.9
|
|
Furniture group
|
442.9
|
|
|
431.6
|
|
|
401.6
|
|
|||
Fabric & Carpet Cushion group
|
675.0
|
|
|
672.3
|
|
|
609.7
|
|
|||
|
2,036.2
|
|
|
1,937.4
|
|
|
1,709.2
|
|
|||
Commercial Products
|
|
|
|
|
|
||||||
Work Furniture group
|
234.2
|
|
|
194.3
|
|
|
182.1
|
|
|||
Consumer Products group
|
305.6
|
|
|
277.3
|
|
|
272.3
|
|
|||
|
539.8
|
|
|
471.6
|
|
|
454.4
|
|
|||
Industrial Materials
|
|
|
|
|
|
||||||
Wire group
|
338.6
|
|
|
397.6
|
|
|
434.1
|
|
|||
Steel Tubing group (1)
|
89.0
|
|
|
94.4
|
|
|
95.5
|
|
|||
|
427.6
|
|
|
492.0
|
|
|
529.6
|
|
|||
Specialized Products
|
|
|
|
|
|
||||||
Automotive group
|
621.9
|
|
|
589.4
|
|
|
502.7
|
|
|||
CVP group
|
95.7
|
|
|
99.5
|
|
|
126.3
|
|
|||
Aerospace Products group
|
123.2
|
|
|
123.9
|
|
|
89.3
|
|
|||
Machinery group
|
72.8
|
|
|
68.5
|
|
|
65.7
|
|
|||
|
913.6
|
|
|
881.3
|
|
|
784.0
|
|
|||
|
$
|
3,917.2
|
|
|
$
|
3,782.3
|
|
|
$
|
3,477.2
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
External sales
|
|
|
|
|
|
||||||
United States
|
$
|
2,703.7
|
|
|
$
|
2,599.0
|
|
|
$
|
2,449.9
|
|
Europe
|
380.6
|
|
|
422.7
|
|
|
351.7
|
|
|||
China
|
392.0
|
|
|
390.0
|
|
|
335.5
|
|
|||
Canada
|
203.1
|
|
|
206.5
|
|
|
201.6
|
|
|||
Mexico
|
117.3
|
|
|
90.1
|
|
|
69.6
|
|
|||
Other
|
120.5
|
|
|
74.0
|
|
|
68.9
|
|
|||
|
$
|
3,917.2
|
|
|
$
|
3,782.3
|
|
|
$
|
3,477.2
|
|
Tangible long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
336.8
|
|
|
$
|
331.8
|
|
|
$
|
363.6
|
|
Europe
|
121.4
|
|
|
129.6
|
|
|
124.5
|
|
|||
China
|
41.8
|
|
|
40.5
|
|
|
35.7
|
|
|||
Canada
|
23.0
|
|
|
25.6
|
|
|
25.0
|
|
|||
Mexico
|
7.6
|
|
|
9.8
|
|
|
11.8
|
|
|||
Other
|
10.2
|
|
|
11.5
|
|
|
14.0
|
|
|||
|
$
|
540.8
|
|
|
$
|
548.8
|
|
|
$
|
574.6
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Earnings:
|
|
|
|
|
|
||||||
Earnings from continuing operations
|
$
|
328.0
|
|
|
$
|
225.2
|
|
|
$
|
186.3
|
|
(Earnings) attributable to noncontrolling interest, net of tax
|
(4.1
|
)
|
|
(3.2
|
)
|
|
(2.4
|
)
|
|||
Net earnings from continuing operations attributable to Leggett & Platt common shareholders
|
323.9
|
|
|
222.0
|
|
|
183.9
|
|
|||
Earnings (loss) from discontinued operations, net of tax
|
1.2
|
|
|
(124.0
|
)
|
|
13.4
|
|
|||
Net earnings attributable to Leggett & Platt common shareholders
|
$
|
325.1
|
|
|
$
|
98.0
|
|
|
$
|
197.3
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares (in millions):
|
|
|
|
|
|
||||||
Weighted average number of common shares used in basic EPS
|
140.9
|
|
|
141.4
|
|
|
145.2
|
|
|||
Dilutive effect of equity-based compensation
|
2.0
|
|
|
1.8
|
|
|
2.1
|
|
|||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS
|
142.9
|
|
|
143.2
|
|
|
147.3
|
|
|||
|
|
|
|
|
|
||||||
Basic and Diluted EPS:
|
|
|
|
|
|
||||||
Basic EPS attributable to Leggett & Platt common shareholders
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
2.30
|
|
|
$
|
1.57
|
|
|
$
|
1.27
|
|
Discontinued operations
|
.01
|
|
|
(.88
|
)
|
|
.09
|
|
|||
Basic EPS attributable to Leggett & Platt common shareholders
|
$
|
2.31
|
|
|
$
|
.69
|
|
|
$
|
1.36
|
|
Diluted EPS attributable to Leggett & Platt common shareholders
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
2.27
|
|
|
$
|
1.55
|
|
|
$
|
1.25
|
|
Discontinued operations
|
.01
|
|
|
(.87
|
)
|
|
.09
|
|
|||
Diluted EPS attributable to Leggett & Platt common shareholders
|
$
|
2.28
|
|
|
$
|
.68
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
||||||
Other information:
|
|
|
|
|
|
||||||
Anti-dilutive shares excluded from diluted EPS computation
|
—
|
|
|
—
|
|
|
—
|
|
|
2015
|
|
2014
|
||||||||||||
|
Current
|
|
Long-term
|
|
Current
|
|
Long-term
|
||||||||
Trade accounts receivable
|
$
|
457.5
|
|
|
$
|
—
|
|
|
$
|
484.0
|
|
|
$
|
—
|
|
Trade notes receivable
|
.5
|
|
|
.6
|
|
|
1.1
|
|
|
2.9
|
|
||||
Total trade receivables
|
458.0
|
|
|
.6
|
|
|
485.1
|
|
|
2.9
|
|
||||
Other notes receivable:
|
|
|
|
|
|
|
|
||||||||
Notes received as partial payment for divestitures
|
—
|
|
|
—
|
|
|
.9
|
|
|
—
|
|
||||
Other
|
—
|
|
|
.4
|
|
|
—
|
|
|
3.3
|
|
||||
Income tax receivables
|
32.6
|
|
|
—
|
|
|
14.0
|
|
|
—
|
|
||||
Other receivables
|
38.9
|
|
|
—
|
|
|
38.0
|
|
|
—
|
|
||||
Subtotal other receivables
|
71.5
|
|
|
.4
|
|
|
52.9
|
|
|
3.3
|
|
||||
Total trade and other receivables
|
529.5
|
|
|
1.0
|
|
|
538.0
|
|
|
6.2
|
|
||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
(9.2
|
)
|
|
—
|
|
|
(14.7
|
)
|
|
—
|
|
||||
Trade notes receivable
|
(.1
|
)
|
|
(.2
|
)
|
|
—
|
|
|
(2.1
|
)
|
||||
Total trade receivables
|
(9.3
|
)
|
|
(.2
|
)
|
|
(14.7
|
)
|
|
(2.1
|
)
|
||||
Other notes receivable
|
—
|
|
|
(.4
|
)
|
|
—
|
|
|
(.4
|
)
|
||||
Total allowance for doubtful accounts
|
(9.3
|
)
|
|
(.6
|
)
|
|
(14.7
|
)
|
|
(2.5
|
)
|
||||
Total net receivables
|
$
|
520.2
|
|
|
$
|
.4
|
|
|
$
|
523.3
|
|
|
$
|
3.7
|
|
|
Balance at December 31, 2013
|
|
2014
Charges |
|
2014
Charge-offs, Net of Recoveries |
|
Balance at December 31, 2014
|
|
2015
Charges |
|
2015
Charge-offs, Net of Recoveries |
|
Balance at December 31, 2015
|
||||||||||||||
Trade accounts receivable
|
$
|
14.6
|
|
|
$
|
4.7
|
|
|
$
|
4.6
|
|
|
$
|
14.7
|
|
|
$
|
2.3
|
|
|
$
|
7.8
|
|
|
$
|
9.2
|
|
Trade notes receivable
|
1.9
|
|
|
.2
|
|
|
—
|
|
|
2.1
|
|
|
.3
|
|
|
2.1
|
|
|
.3
|
|
|||||||
Total trade receivables
|
16.5
|
|
|
4.9
|
|
|
4.6
|
|
|
16.8
|
|
|
2.6
|
|
|
9.9
|
|
|
9.5
|
|
|||||||
Other notes receivable
|
1.1
|
|
|
—
|
|
|
.7
|
|
|
.4
|
|
|
—
|
|
|
—
|
|
|
.4
|
|
|||||||
Total allowance for doubtful accounts
|
$
|
17.6
|
|
|
$
|
4.9
|
|
|
$
|
5.3
|
|
|
$
|
17.2
|
|
|
$
|
2.6
|
|
|
$
|
9.9
|
|
|
$
|
9.9
|
|
|
2015
|
|
2014
|
||||
Other current assets
|
|
|
|
||||
Deferred taxes (see Note N)
|
$
|
—
|
|
|
$
|
42.3
|
|
Other prepaids
|
33.2
|
|
|
39.1
|
|
||
Current assets held for sale (see Note B)
|
—
|
|
|
10.4
|
|
||
|
$
|
33.2
|
|
|
$
|
91.8
|
|
Sundry assets
|
|
|
|
||||
Deferred taxes (see Note N)
|
$
|
33.3
|
|
|
$
|
36.5
|
|
Assets held for sale (see Note B)
|
8.4
|
|
|
22.4
|
|
||
Diversified investments associated with stock-based compensation plans (see Note L)
|
20.5
|
|
|
17.5
|
|
||
Investment in associated companies
|
7.1
|
|
|
6.7
|
|
||
Pension plan assets (see Note M)
|
1.3
|
|
|
—
|
|
||
Brazilian VAT deposits (see Note T)
|
10.3
|
|
|
7.4
|
|
||
Other
|
36.3
|
|
|
37.9
|
|
||
|
$
|
117.2
|
|
|
$
|
128.4
|
|
Accrued expenses
|
|
|
|
||||
Contingency accruals (see Note T)
|
$
|
8.1
|
|
|
$
|
83.9
|
|
Wages and commissions payable
|
75.1
|
|
|
67.3
|
|
||
Workers’ compensation, auto and product liability, medical and disability
|
53.9
|
|
|
54.7
|
|
||
Sales promotions
|
35.1
|
|
|
30.7
|
|
||
Liabilities associated with stock-based compensation plans (see Note L)
|
29.8
|
|
|
23.7
|
|
||
Accrued interest
|
8.6
|
|
|
12.3
|
|
||
General taxes, excluding income taxes
|
16.6
|
|
|
11.6
|
|
||
Environmental reserves
|
4.2
|
|
|
5.3
|
|
||
Other
|
55.3
|
|
|
48.1
|
|
||
|
$
|
286.7
|
|
|
$
|
337.6
|
|
Other current liabilities
|
|
|
|
||||
Dividends payable
|
$
|
43.5
|
|
|
$
|
42.7
|
|
Customer deposits
|
12.6
|
|
|
12.7
|
|
||
Sales tax payable
|
7.3
|
|
|
10.4
|
|
||
Current liabilities associated with assets held for sale (see Note B)
|
—
|
|
|
5.5
|
|
||
Derivative financial instruments (see Note S)
|
12.2
|
|
|
2.4
|
|
||
Liabilities associated with stock-based compensation plans (see Note L)
|
1.5
|
|
|
1.3
|
|
||
Outstanding checks in excess of book balances
|
20.7
|
|
|
.9
|
|
||
Other
|
6.1
|
|
|
7.2
|
|
||
|
$
|
103.9
|
|
|
$
|
83.1
|
|
Other long-term liabilities
|
|
|
|
||||
Liability for pension benefits (see Note M)
|
$
|
83.7
|
|
|
$
|
83.7
|
|
Liabilities associated with stock-based compensation plans (see Note L)
|
30.9
|
|
|
27.9
|
|
||
Net reserves for tax contingencies
|
19.9
|
|
|
25.1
|
|
||
Deferred compensation
|
17.9
|
|
|
14.7
|
|
||
Other liabilities associated with assets held for sale (see Note B)
|
—
|
|
|
.1
|
|
||
Other
|
32.3
|
|
|
33.5
|
|
||
|
$
|
184.7
|
|
|
$
|
185.0
|
|
|
2015
|
|
2014
|
||||||||||||||
|
Stated Interest
Rate
|
|
Due Date
Through
|
|
Balance
|
|
Stated Interest
Rate
|
|
Due Date
Through
|
|
Balance
|
||||||
Term notes
|
3.8
|
%
|
|
2024
|
|
$
|
748.3
|
|
|
4.7
|
%
|
|
2024
|
|
$
|
948.0
|
|
Industrial development bonds, principally variable interest rates
|
.3
|
%
|
|
2030
|
|
14.8
|
|
|
.2
|
%
|
|
2030
|
|
14.7
|
|
||
Commercial paper
|
.5
|
%
|
|
2019
|
|
181.5
|
|
|
.2
|
%
|
|
2019
|
|
—
|
|
||
Capitalized leases (primarily machinery, vehicle and office equipment)
|
|
|
|
|
4.2
|
|
|
|
|
|
|
5.2
|
|
||||
Other, partially secured
|
|
|
|
|
—
|
|
|
|
|
|
|
.5
|
|
||||
|
|
|
|
|
948.8
|
|
|
|
|
|
|
968.4
|
|
||||
Less current maturities
|
|
|
|
|
3.4
|
|
|
|
|
|
|
201.7
|
|
||||
|
|
|
|
|
$
|
945.4
|
|
|
|
|
|
|
$
|
766.7
|
|
|
2015
|
|
2014
|
||||
Total program authorized
|
$
|
600.0
|
|
|
$
|
600.0
|
|
Commercial paper outstanding (classified as long-term debt)
|
(181.5
|
)
|
|
—
|
|
||
Letters of credit issued under the credit agreement
|
—
|
|
|
—
|
|
||
Total program usage
|
(181.5
|
)
|
|
—
|
|
||
Total program available
|
$
|
418.5
|
|
|
$
|
600.0
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Continuing operations
|
$
|
51.4
|
|
|
$
|
48.9
|
|
|
$
|
45.4
|
|
Discontinued operations
|
$
|
.5
|
|
|
$
|
2.1
|
|
|
$
|
4.1
|
|
|
Shares Available for Issuance
|
|
Maximum Number of Authorized Shares
|
||
Unexercised options
|
3.1
|
|
|
3.1
|
|
Outstanding stock units—vested
|
3.9
|
|
|
6.8
|
|
Outstanding stock units—unvested
|
1.6
|
|
|
4.6
|
|
Available for grant
|
13.0
|
|
|
13.0
|
|
Authorized for issuance at December 31, 2015
|
21.6
|
|
|
27.5
|
|
|
Year Ended December 31
|
||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
To Be Settled With Stock
|
|
To Be Settled In Cash
|
|
To Be Settled With Stock
|
|
To Be Settled In Cash
|
|
To Be Settled With Stock
|
|
To Be Settled In Cash
|
||||||||||||
Options (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of the grant date fair value
|
$
|
.2
|
|
|
$
|
—
|
|
|
$
|
.6
|
|
|
$
|
—
|
|
|
$
|
1.6
|
|
|
$
|
—
|
|
Cash payments in lieu of options
|
—
|
|
|
1.0
|
|
|
—
|
|
|
.8
|
|
|
—
|
|
|
.8
|
|
||||||
Stock-based retirement plans contributions (2)
|
7.0
|
|
|
1.3
|
|
|
6.1
|
|
|
1.4
|
|
|
6.5
|
|
|
1.2
|
|
||||||
Discounts on various stock awards:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Stock Compensation Program (1)
|
1.9
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||||
Stock-based retirement plans (2)
|
1.4
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
||||||
Discount Stock Plan (6)
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
.9
|
|
|
—
|
|
||||||
Performance Stock Unit awards (3)
|
8.3
|
|
|
10.6
|
|
|
6.4
|
|
|
13.9
|
|
|
6.4
|
|
|
1.1
|
|
||||||
Restricted Stock Units awards (4)
|
3.5
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
||||||
Profitable Growth Incentive awards (5)
|
6.0
|
|
|
5.9
|
|
|
4.4
|
|
|
4.4
|
|
|
.6
|
|
|
.6
|
|
||||||
Other, primarily non-employee directors restricted stock
|
1.2
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||||
Total stock-based compensation expense
|
30.5
|
|
|
$
|
18.8
|
|
|
27.3
|
|
|
$
|
20.5
|
|
|
24.1
|
|
|
$
|
3.7
|
|
|||
Employee contributions for above stock plans
|
14.7
|
|
|
|
|
14.3
|
|
|
|
|
12.2
|
|
|
|
|||||||||
Total stock-based compensation
|
$
|
45.2
|
|
|
|
|
$
|
41.6
|
|
|
|
|
$
|
36.3
|
|
|
|
||||||
Recognized tax benefits on stock-based compensation expense
|
$
|
11.6
|
|
|
|
|
$
|
10.4
|
|
|
|
|
$
|
9.2
|
|
|
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
Current
|
|
Long-term
|
|
Total
|
|
Current
|
|
Long-term
|
|
Total
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diversified investments associated with the stock-based retirement plans (2)
|
$
|
1.5
|
|
|
$
|
20.5
|
|
|
$
|
22.0
|
|
|
$
|
1.3
|
|
|
$
|
17.5
|
|
|
$
|
18.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock-based retirement plans (2)
|
$
|
1.5
|
|
|
$
|
20.7
|
|
|
$
|
22.2
|
|
|
$
|
1.3
|
|
|
$
|
17.3
|
|
|
$
|
18.6
|
|
Performance Stock Unit award (3)
|
8.5
|
|
|
8.8
|
|
|
17.3
|
|
|
10.0
|
|
|
6.6
|
|
|
16.6
|
|
||||||
Profitable Growth Incentive award (5)
|
13.3
|
|
|
1.4
|
|
|
14.7
|
|
|
6.1
|
|
|
4.0
|
|
|
10.1
|
|
||||||
Other - primarily timing differences between employee withholdings and related employer contributions to be submitted to various plans' trust accounts
|
8.0
|
|
|
—
|
|
|
8.0
|
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
||||||
Total liabilities associated with stock-based compensation
|
$
|
31.3
|
|
|
$
|
30.9
|
|
|
$
|
62.2
|
|
|
$
|
25.0
|
|
|
$
|
27.9
|
|
|
$
|
52.9
|
|
|
Balance at
December 31, 2014 |
|
2015 Net Windfall
Resulting From
Exercises and
Conversions
|
|
Balance at
December 31,
2015
|
||||||
Accumulated tax windfall in additional contributed capital
|
$
|
52.4
|
|
|
$
|
15.5
|
|
|
$
|
67.9
|
|
•
|
On a discretionary basis to a broad group of employees
|
•
|
In conjunction with our Deferred Compensation Program
|
•
|
As compensation of outside directors
|
•
|
Stock options under this program are granted on the last business day of the year prior to the year the compensation is earned. The number of options granted equals the deferred compensation times
five
, divided by the stock’s market price on the date of grant. The option has a
10
-year term. It vests as the associated compensation is earned and becomes exercisable beginning
15 months
after the grant date. Stock is issued when the option is exercised.
|
•
|
Deferred stock units (DSU) under this program are acquired every
two
weeks (when the compensation would have otherwise been paid) at a
20%
discount to the market price of our common stock on each acquisition date and they vest immediately. Expense is recorded as the compensation is earned. Stock units earn dividends at the same rate as cash dividends paid on our common stock. These dividends are used to acquire stock units at a
20%
discount. Stock units are converted to common stock and distributed in accordance with the participant’s pre-set election. However, stock units may be settled in cash at our discretion. Participants must begin receiving distributions no later than
ten
years after the effective date of the deferral and installment distributions cannot exceed
ten
years.
|
•
|
Interest-bearing cash deferrals under this program are reported in Other long-term liabilities on the balance sheet and are disclosed in Note I.
|
|
Options
|
|
Units
|
|
Cash
|
||||||
Aggregate amount of compensation deferred during 2015
|
$
|
.1
|
|
|
$
|
8.3
|
|
|
$
|
1.3
|
|
|
Employee
Stock
Options
|
|
Deferred
Compensation
Options
|
|
Other-Primarily Outside Directors'
Options**
|
|
Total
Options
|
|
Weighted
Average
Exercise
Price per
Share
|
|
Weighted
Average
Remaining
Contractual
Life in Years
|
|
Aggregate
Intrinsic
Value
|
||||||||
Outstanding at December 31, 2014
|
3.5
|
|
|
.2
|
|
|
—
|
|
|
3.7
|
|
|
$
|
20.79
|
|
|
|
|
|
||
Granted
|
|
|
.1
|
|
|
|
|
.1
|
|
|
42.09
|
|
|
|
|
|
|||||
Exercised *
|
(.6
|
)
|
|
(.1
|
)
|
|
—
|
|
|
(.7
|
)
|
|
21.30
|
|
|
|
|
|
|||
Outstanding at December 31, 2015
|
2.9
|
|
|
.2
|
|
|
—
|
|
|
3.1
|
|
|
$
|
21.30
|
|
|
4.1
|
|
$
|
63.8
|
|
Vested or expected to vest
|
|
|
|
|
|
|
3.1
|
|
|
$
|
21.30
|
|
|
4.1
|
|
$
|
63.8
|
|
|||
Exercisable (vested) at December 31, 2015
|
|
|
|
|
|
|
3.0
|
|
|
$
|
20.64
|
|
|
3.9
|
|
$
|
63.8
|
|
*
|
Prior to 2005, we granted options with a below market exercise price under the terms of our Deferred Compensation Program. During 2015, there were no significant options exercised at a below market exercise price, and less than
.1
of these options remain outstanding at December 31, 2015. In 2005, we amended the Program to provide only “at market” stock options.
|
**
|
A small amount of options related to this plan (less than
.1
) were outstanding at December 31, 2015.
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Total intrinsic value of stock options exercised
|
$
|
17.1
|
|
|
$
|
35.2
|
|
|
$
|
18.4
|
|
Cash received from stock options exercised
|
8.3
|
|
|
21.8
|
|
|
36.9
|
|
|||
Total fair value of stock options vested
|
1.3
|
|
|
2.9
|
|
|
4.4
|
|
|
|
Year Ended December 31 *
|
||||||
|
|
2015
|
|
2014
|
||||
Aggregate grant date fair value
|
|
$
|
.9
|
|
|
$
|
.1
|
|
Weighted-average per share grant date fair value
|
|
$
|
10.06
|
|
|
$
|
7.30
|
|
Risk-free interest rate
|
|
2.1
|
%
|
|
2.1
|
%
|
||
Expected life in years
|
|
7.5
|
|
|
6.0
|
|
||
Expected volatility (over expected life)
|
|
30.5
|
%
|
|
35.1
|
%
|
||
Expected dividend yield (over expected life)
|
|
3.0
|
%
|
|
3.9
|
%
|
*
|
No options were granted in 2013
|
•
|
Participants in the SBP may contribute up to
6%
of their compensation above a certain threshold to purchase Leggett stock or other investment alternatives at market prices. We immediately match
50%
of the employee contributions. Employees are allowed to fully diversify their employee deferral accounts immediately and their employer matching accounts after
three
years of service. Dividends earned on Company stock held in the SBP are reinvested or paid in cash at the participant’s election.
|
•
|
Participants in the ESUP may contribute up to
10%
(depending upon salary level) of their compensation above the same threshold applicable to the SBP. Participant contributions are credited to a diversified investment account established for the participant, and we make premium contributions to the diversified investment accounts equal to
17.65%
of the participant’s contribution. A participant’s diversified investment account balance is adjusted to mirror the investment experience, whether positive or negative, of the diversified investments selected by the participant. Participants may change investment elections in the diversified investment accounts, but cannot purchase Company common stock or stock units. The diversified investment accounts consist of various mutual funds and retirement target funds and are unfunded, unsecured obligations of the Company that will be settled in cash. Both the assets and liabilities associated with this program are presented in the table above and are adjusted to fair value at each reporting period.
|
|
SBP
2015 |
|
ESUP
2015 |
||||
Employee contributions
|
$
|
3.2
|
|
|
$
|
4.4
|
|
Less diversified contributions
|
.8
|
|
|
4.4
|
|
||
Total employee stock contributions
|
$
|
2.4
|
|
|
$
|
—
|
|
Employer premium contribution to diversified investment accounts
|
|
|
|
$
|
.8
|
|
|
Shares purchased by employees and company match
|
.1
|
|
|
|
•
|
A service requirement—Awards generally “cliff” vest
three
years following the grant date; and
|
•
|
A market condition—Awards are based on our Total Shareholder Return [TSR = (Change in Stock Price + Dividends) / Beginning Stock Price] as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately
320
companies). Participants will earn from
0%
to
175%
of the base award depending upon how our TSR ranks within the peer group at the end of the
3
-year performance period.
|
|
Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Total shares base award
|
.2
|
|
|
.2
|
|
|
.2
|
|
|||
Grant date per share fair value
|
$
|
42.22
|
|
|
$
|
30.45
|
|
|
$
|
27.60
|
|
Risk-free interest rate
|
1.1
|
%
|
|
.8
|
%
|
|
.4
|
%
|
|||
Expected life in years
|
3.0
|
|
|
3.0
|
|
|
3.0
|
|
|||
Expected volatility (over expected life)
|
19.8
|
%
|
|
25.9
|
%
|
|
29.1
|
%
|
|||
Expected dividend yield (over expected life)
|
2.9
|
%
|
|
3.9
|
%
|
|
4.2
|
%
|
Three-Year Performance Cycle
|
||||||||||
Award Year
|
|
Completion Date
|
|
TSR Performance
Relative to the Peer Group (1%=Best)
|
|
Payout as a
Percent of the
Base Award
|
|
Number of Shares
Distributed
|
|
Distribution Date
|
2011
|
|
December 31, 2013
|
|
55th percentile
|
|
64.2%
|
|
.2
|
|
January 2014
|
2012
|
|
December 31, 2014
|
|
30th percentile
|
|
157.0%
|
|
.4
|
|
January 2015
|
2013
|
|
December 31, 2015
|
|
27th percentile
|
|
165.4%
|
|
.4
|
|
January 2016
|
•
|
To managers in lieu of annual option grants
|
•
|
On a discretionary basis to selected employees
|
•
|
To selected executive officers in connection with employment agreements
|
•
|
As compensation for outside directors, who have a choice to receive RSUs or restricted stock
|
Two-Year Performance Cycle
|
||||||||
Award Year
|
|
Completion Date
|
|
Average Payout as a Percent of the Base Award
|
|
Estimated Number of Shares
|
|
Expected Distribution Date
|
2013
|
|
December 31, 2014
|
|
127.0%
|
|
.1
|
|
March 2015
|
2014
|
|
December 31, 2015
|
|
224.7%
|
|
.2
|
|
March 2016
|
|
DSU
|
|
ESUP
|
|
PSU*
|
|
RSU
|
|
PGI**
|
|
Total Units
|
|
Weighted
Average
Grant Date
Fair Value
per Unit
|
|
Aggregate
Intrinsic
Value
|
||||||||||
Non-vested at December 31, 2014
|
—
|
|
|
—
|
|
|
1.3
|
|
|
.3
|
|
|
.3
|
|
|
1.9
|
|
|
$
|
18.40
|
|
|
|
||
Granted based on current service
|
.2
|
|
|
.2
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
.5
|
|
|
44.73
|
|
|
|
|||
Granted based on future conditions
|
—
|
|
|
—
|
|
|
.3
|
|
|
—
|
|
|
.1
|
|
|
.4
|
|
|
30.39
|
|
|
|
|||
Vested
|
(.2
|
)
|
|
(.2
|
)
|
|
(.4
|
)
|
|
(.2
|
)
|
|
(.1
|
)
|
|
(1.1
|
)
|
|
32.71
|
|
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
11.28
|
|
|
|
|||
Total non-vested at December 31, 2015
|
—
|
|
|
—
|
|
|
1.1
|
|
|
.2
|
|
|
.3
|
|
|
1.6
|
|
|
$
|
21.43
|
|
|
$
|
64.5
|
|
Fully vested shares available for issuance at December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
$
|
165.6
|
|
*
|
PSU awards are presented at
175%
(i.e., maximum) payout
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Total intrinsic value of vested stock units converted to common stock
|
$
|
27.7
|
|
|
$
|
9.2
|
|
|
$
|
7.0
|
|
|
Options
|
|
Units
|
||||
Unrecognized cost of non-vested stock
|
$
|
.2
|
|
|
$
|
7.6
|
|
Weighted-average remaining contractual life in years
|
0.6
|
|
|
0.9
|
|
Average 2015 purchase price per share (net of discount)
|
$
|
38.16
|
|
2015 number of shares purchased by employees
|
.2
|
|
|
Shares purchased since inception in 1982
|
22.7
|
|
|
Maximum shares under the plan
|
27.0
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Change in Benefit Obligation
|
|
|
|
|
|
||||||
Benefit obligation, beginning of period
|
$343.0
|
|
$
|
287.0
|
|
|
$
|
316.5
|
|
||
Service cost
|
4.3
|
|
|
3.0
|
|
|
3.2
|
|
|||
Interest cost
|
12.6
|
|
|
12.9
|
|
|
11.9
|
|
|||
Plan participants’ contributions
|
.7
|
|
|
.6
|
|
|
.5
|
|
|||
Actuarial loss (gain)
|
(17.4
|
)
|
|
58.1
|
|
|
(30.3
|
)
|
|||
Benefits paid
|
(13.9
|
)
|
|
(15.6
|
)
|
|
(14.8
|
)
|
|||
Settlements
|
(35.7
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign currency exchange rate changes
|
(3.3
|
)
|
|
(3.0
|
)
|
|
—
|
|
|||
Benefit obligation, end of period (1)
|
290.3
|
|
|
343.0
|
|
|
287.0
|
|
|||
Change in Plan Assets
|
|
|
|
|
|
||||||
Fair value of plan assets, beginning of period
|
258.9
|
|
|
248.0
|
|
|
240.3
|
|
|||
Actual return on plan assets
|
(1.7
|
)
|
|
23.9
|
|
|
20.0
|
|
|||
Employer contributions
|
1.8
|
|
|
4.1
|
|
|
1.9
|
|
|||
Plan participants’ contributions
|
.7
|
|
|
.6
|
|
|
.5
|
|
|||
Benefits paid
|
(13.9
|
)
|
|
(15.6
|
)
|
|
(14.8
|
)
|
|||
Settlements
|
(35.7
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign currency exchange rate changes
|
(2.6
|
)
|
|
(2.1
|
)
|
|
.1
|
|
|||
Fair value of plan assets, end of period
|
207.5
|
|
|
258.9
|
|
|
248.0
|
|
|||
Net funded status
|
$
|
(82.8
|
)
|
|
$
|
(84.1
|
)
|
|
$
|
(39.0
|
)
|
Funded status recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
||||||
Other assets—sundry
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
Other current liabilities
|
(.4
|
)
|
|
(.4
|
)
|
|
(.5
|
)
|
|||
Other long-term liabilities
|
(83.7
|
)
|
|
(83.7
|
)
|
|
(39.9
|
)
|
|||
Net funded status
|
$
|
(82.8
|
)
|
|
$
|
(84.1
|
)
|
|
$
|
(39.0
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Aggregated plans with accumulated benefit obligations in excess of plan assets:
|
|
|
|
|
|
||||||
Projected benefit obligation
|
$
|
274.7
|
|
|
$
|
343.0
|
|
|
$
|
230.3
|
|
Accumulated benefit obligation
|
271.5
|
|
|
338.5
|
|
|
228.7
|
|
|||
Fair value of plan assets
|
190.8
|
|
|
258.9
|
|
|
190.2
|
|
|||
Aggregated plans with projected benefit obligations in excess of plan assets:
|
|
|
|
|
|
||||||
Projected benefit obligation
|
277.8
|
|
|
343.0
|
|
|
233.8
|
|
|||
Fair value of plan assets
|
193.7
|
|
|
258.9
|
|
|
193.4
|
|
|||
Accumulated benefit obligation for all defined benefit plans
|
274.3
|
|
|
338.5
|
|
|
283.5
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cash surrender values
|
$
|
2.3
|
|
|
$
|
2.2
|
|
|
$
|
2.1
|
|
|
December 31,
2014 |
|
2015
Amortization |
|
2015
Net Actuarial loss |
|
2015
Foreign currency exchange rates change |
|
2015
Income taxes change |
|
December 31,
2015 |
||||||||||||
Net loss (gain) (before tax)
|
$
|
109.5
|
|
|
$
|
(17.3
|
)
|
|
$
|
.9
|
|
|
$
|
(1.0
|
)
|
|
$
|
—
|
|
|
$
|
92.1
|
|
Deferred income taxes
|
(40.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
(34.0
|
)
|
||||||
Accumulated other comprehensive income (net of tax)
|
$
|
69.3
|
|
|
$
|
(17.3
|
)
|
|
$
|
.9
|
|
|
$
|
(1.0
|
)
|
|
$
|
6.2
|
|
|
$
|
58.1
|
|
Net loss
|
$
|
4.6
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Service cost
|
$
|
(4.3
|
)
|
|
$
|
(3.0
|
)
|
|
$
|
(3.2
|
)
|
Interest cost
|
(12.6
|
)
|
|
(12.9
|
)
|
|
(11.9
|
)
|
|||
Expected return on plan assets
|
16.5
|
|
|
15.9
|
|
|
15.2
|
|
|||
Amortization of prior service cost
|
—
|
|
|
(.3
|
)
|
|
(.2
|
)
|
|||
Recognized net actuarial loss
|
(5.2
|
)
|
|
(2.8
|
)
|
|
(6.4
|
)
|
|||
Settlements
|
(12.1
|
)
|
|
—
|
|
|
—
|
|
|||
Net pension (expense) income
|
$
|
(17.7
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
(6.5
|
)
|
Weighted average assumptions for pension costs:
|
|
|
|
|
|
||||||
Discount rate used in net pension costs
|
3.8
|
%
|
|
4.6
|
%
|
|
3.8
|
%
|
|||
Rate of compensation increase used in pension costs
|
3.5
|
%
|
|
3.8
|
%
|
|
3.8
|
%
|
|||
Expected return on plan assets
|
6.6
|
%
|
|
6.7
|
%
|
|
6.6
|
%
|
|||
Weighted average assumptions for benefit obligation:
|
|
|
|
|
|
||||||
Discount rate used in benefit obligation
|
4.1
|
%
|
|
3.8
|
%
|
|
4.6
|
%
|
|||
Rate of compensation increase used in benefit obligation
|
3.5
|
%
|
|
3.5
|
%
|
|
3.8
|
%
|
•
|
Level 1: Quoted prices for identical assets or liabilities in active markets.
|
•
|
Level 2: Other significant inputs observable either directly or indirectly (including quoted prices for similar securities, interest rates, yield curves, credit risk, etc.).
|
•
|
Level 3: Unobservable inputs that are not corroborated by market data.
|
|
Year Ended December 31, 2015
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Mutual and pooled funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed income
|
$
|
54.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
54.0
|
|
|
$
|
67.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
67.3
|
|
Equities
|
110.1
|
|
|
—
|
|
|
—
|
|
|
110.1
|
|
|
136.8
|
|
|
—
|
|
|
—
|
|
|
136.8
|
|
||||||||
Stable value funds
|
—
|
|
|
37.9
|
|
|
—
|
|
|
37.9
|
|
|
—
|
|
|
45.9
|
|
|
—
|
|
|
45.9
|
|
||||||||
Money market funds, cash and other
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
||||||||
Total investments at fair value
|
$
|
169.6
|
|
|
$
|
37.9
|
|
|
$
|
—
|
|
|
$
|
207.5
|
|
|
$
|
213.0
|
|
|
$
|
45.9
|
|
|
$
|
—
|
|
|
$
|
258.9
|
|
|
2015
|
|
2014
|
||
Asset Category
|
|
|
|
||
Equity securities
|
53
|
%
|
|
53
|
%
|
Debt securities
|
26
|
|
|
26
|
|
Stable value funds
|
18
|
|
|
18
|
|
Other, including cash
|
3
|
|
|
3
|
|
Total
|
100
|
%
|
|
100
|
%
|
•
|
Total Stock Market Index: Large -, mid-, and small-cap equity diversified across growth and value styles.
|
•
|
Large-Cap Index: Large-cap equity diversified across growth and value styles.
|
•
|
Small-Cap Index: Small-cap equity diversified across growth and value styles.
|
•
|
World ex US Index: International equity; broad exposure across developed and emerging non-US equity markets around the world.
|
•
|
Long-term Bond Index: Diversified exposure to the long-term, investment-grade U.S. bond market.
|
•
|
Extended Duration Treasury Index: Diversified exposure to U.S. treasury's with maturities of 20-30 years.
|
2016
|
$
|
15.9
|
|
2017
|
16.0
|
|
|
2018
|
15.8
|
|
|
2019
|
15.8
|
|
|
2020
|
16.0
|
|
|
2021-2025
|
83.4
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Defined contribution plans
|
$
|
6.8
|
|
|
$
|
7.3
|
|
|
$
|
6.4
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Domestic
|
$
|
254.2
|
|
|
$
|
142.1
|
|
|
$
|
111.2
|
|
Foreign
|
195.6
|
|
|
153.4
|
|
|
126.4
|
|
|||
|
$
|
449.8
|
|
|
$
|
295.5
|
|
|
$
|
237.6
|
|
|
Year Ended December 31
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
Statutory federal income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Increases (decreases) in rate resulting from:
|
|
|
|
|
|
|||
State taxes, net of federal benefit
|
1.6
|
|
|
1.0
|
|
|
1.4
|
|
Tax effect of foreign operations
|
(5.8
|
)
|
|
(7.5
|
)
|
|
(8.6
|
)
|
Deferred tax on undistributed foreign earnings
|
(1.0
|
)
|
|
.4
|
|
|
(.5
|
)
|
Change in valuation allowance
|
—
|
|
|
.2
|
|
|
(1.4
|
)
|
Change in uncertain tax positions, net
|
(.5
|
)
|
|
(.6
|
)
|
|
(1.1
|
)
|
Domestic Production Activities Deduction
|
(1.2
|
)
|
|
(3.4
|
)
|
|
(2.0
|
)
|
Other permanent differences, net
|
(1.0
|
)
|
|
(.7
|
)
|
|
(.6
|
)
|
Other, net
|
—
|
|
|
(.6
|
)
|
|
(.6
|
)
|
Effective tax rate
|
27.1
|
%
|
|
23.8
|
%
|
|
21.6
|
%
|
•
|
2015: We recognized tax benefits totaling
$11.3
, including a reduction in deferred taxes on undistributed foreign earnings associated with a planned reinvestment in China, and a deferred tax benefit related to our Australian operations.
|
•
|
2014: We recognized tax benefits totaling
$13.9
, primarily related to additional Domestic Production Activities Deductions for the current and prior years, incremental deferred foreign tax credits, and net favorable provision-to-return adjustments related to prior year taxes.
|
•
|
2013: We recognized tax benefits totaling
$17.5
, primarily related to the impact of Mexico tax law changes, the settlement of certain foreign and state audits, and a non-taxable bargain purchase gain.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Gross unrecognized tax benefits, January 1
|
$
|
19.8
|
|
|
$
|
24.4
|
|
|
$
|
26.6
|
|
Gross increases—tax positions in prior periods
|
.3
|
|
|
.1
|
|
|
4.5
|
|
|||
Gross decreases—tax positions in prior periods
|
(.5
|
)
|
|
(2.4
|
)
|
|
(1.5
|
)
|
|||
Gross increases—current period tax positions
|
1.3
|
|
|
1.3
|
|
|
1.0
|
|
|||
Change due to exchange rate fluctuations
|
(1.3
|
)
|
|
(1.0
|
)
|
|
(.4
|
)
|
|||
Settlements
|
(1.5
|
)
|
|
(.6
|
)
|
|
(2.8
|
)
|
|||
Lapse of statute of limitations
|
(2.6
|
)
|
|
(2.0
|
)
|
|
(3.0
|
)
|
|||
Gross unrecognized tax benefits, December 31
|
15.5
|
|
|
19.8
|
|
|
24.4
|
|
|||
Interest
|
6.0
|
|
|
7.6
|
|
|
7.6
|
|
|||
Penalties
|
.6
|
|
|
.8
|
|
|
.9
|
|
|||
Total gross unrecognized tax benefits, December 31
|
$
|
22.1
|
|
|
$
|
28.2
|
|
|
$
|
32.9
|
|
|
December 31
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Property, plant and equipment
|
$
|
6.9
|
|
|
$
|
(54.3
|
)
|
|
$
|
13.6
|
|
|
$
|
(56.6
|
)
|
Inventories
|
2.8
|
|
|
(26.5
|
)
|
|
2.2
|
|
|
(14.1
|
)
|
||||
Accrued expenses
|
96.8
|
|
|
—
|
|
|
120.9
|
|
|
—
|
|
||||
Net operating losses and other tax carryforwards
|
57.2
|
|
|
—
|
|
|
58.7
|
|
|
—
|
|
||||
Pension cost and other post-retirement benefits
|
33.6
|
|
|
(.9
|
)
|
|
33.6
|
|
|
(.8
|
)
|
||||
Subsidiary stock basis
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Intangible assets
|
1.2
|
|
|
(107.3
|
)
|
|
1.9
|
|
|
(102.1
|
)
|
||||
Derivative financial instruments
|
14.0
|
|
|
(1.7
|
)
|
|
12.8
|
|
|
(1.9
|
)
|
||||
Tax on undistributed earnings
|
—
|
|
|
(6.9
|
)
|
|
—
|
|
|
(11.2
|
)
|
||||
Uncertain tax positions
|
7.1
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
||||
Other
|
5.0
|
|
|
(7.7
|
)
|
|
5.5
|
|
|
(9.0
|
)
|
||||
Gross deferred tax assets (liabilities)
|
226.6
|
|
|
(205.3
|
)
|
|
258.5
|
|
|
(195.7
|
)
|
||||
Valuation allowance
|
(26.6
|
)
|
|
—
|
|
|
(27.1
|
)
|
|
—
|
|
||||
Total deferred taxes
|
$
|
200.0
|
|
|
$
|
(205.3
|
)
|
|
$
|
231.4
|
|
|
$
|
(195.7
|
)
|
Net deferred tax (liability) asset
|
|
|
$
|
(5.3
|
)
|
|
|
|
$
|
35.7
|
|
•
|
The net deferred tax asset associated with property, plant, and equipment decreased in 2015 due primarily to the anticipated utilization of Canadian capital cost allowances on our Canadian tax return filing.
|
•
|
The increase in our net inventory deferred tax liability is primarily related to changes in our LIFO inventory assumptions associated with 2015 steel prices.
|
•
|
A significant portion of the net decrease in accrued expenses relates to 2015 payments of
$82
associated with our foam antitrust litigation accrual.
|
•
|
The net increase in our deferred tax liability for intangible assets results from various acquisitions and divestitures in 2015.
|
|
December 31
|
||||||
|
2015
|
|
2014
|
||||
Other current assets
|
$
|
—
|
|
|
$
|
42.3
|
|
Sundry
|
33.3
|
|
|
36.5
|
|
||
Other current liabilities
|
—
|
|
|
(1.3
|
)
|
||
Deferred income taxes
|
(38.6
|
)
|
|
(41.8
|
)
|
||
|
$
|
(5.3
|
)
|
|
$
|
35.7
|
|
|
Year Ended December 31
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Gain on sales of assets
|
$
|
(2.6
|
)
|
|
$
|
(5.1
|
)
|
|
$
|
(7.8
|
)
|
Bargain purchase gain from acquisitions (see Note R)
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
|||
Restructuring charges (see Note D)
|
1.6
|
|
|
.9
|
|
|
2.1
|
|
|||
Asset impairments (see Note C)
|
2.2
|
|
|
1.3
|
|
|
.8
|
|
|||
Currency (gain) loss
|
(2.1
|
)
|
|
.3
|
|
|
1.8
|
|
|||
Royalty income
|
(.9
|
)
|
|
(1.0
|
)
|
|
(1.4
|
)
|
|||
(Gain) loss from diversified investments associated with stock-based compensation plans (see Note L)
|
.3
|
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|||
Other income
|
(3.6
|
)
|
|
(5.6
|
)
|
|
(5.8
|
)
|
|||
|
$
|
(5.1
|
)
|
|
$
|
(10.4
|
)
|
|
$
|
(21.0
|
)
|
|
Foreign
Currency
Translation
Adjustments
|
|
Cash
Flow
Hedges
|
|
Defined
Benefit
Pension
Plans
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
Balance January 1, 2013
|
$
|
163.5
|
|
|
$
|
(25.5
|
)
|
|
$
|
(67.0
|
)
|
|
$
|
71.0
|
|
Other comprehensive income (loss) before reclassifications, pretax
|
(5.0
|
)
|
|
(1.0
|
)
|
|
35.2
|
|
|
29.2
|
|
||||
Amounts reclassified from accumulated other comprehensive income, pretax:
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold; selling and administrative expenses
|
—
|
|
|
.5
|
|
|
6.6
|
|
|
7.1
|
|
||||
Interest expense
|
—
|
|
|
3.9
|
|
|
—
|
|
|
3.9
|
|
||||
Subtotal of reclassifications, pretax
|
—
|
|
|
4.4
|
|
|
6.6
|
|
|
11.0
|
|
||||
Other comprehensive income (loss), pretax
|
(5.0
|
)
|
|
3.4
|
|
|
41.8
|
|
|
40.2
|
|
||||
Income tax effect
|
—
|
|
|
(1.4
|
)
|
|
(15.1
|
)
|
|
(16.5
|
)
|
||||
Attributable to noncontrolling interest
|
(.2
|
)
|
|
—
|
|
|
—
|
|
|
(.2
|
)
|
||||
Balance December 31, 2013
|
158.3
|
|
|
(23.5
|
)
|
|
(40.3
|
)
|
|
94.5
|
|
||||
Other comprehensive income (loss) before reclassifications, pretax
|
(71.7
|
)
|
|
.8
|
|
|
(49.5
|
)
|
|
(120.4
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income, pretax:
|
|
|
|
|
|
|
|
||||||||
Net sales
|
—
|
|
|
.4
|
|
|
—
|
|
|
.4
|
|
||||
Cost of goods sold; selling and administrative expenses
|
—
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
||||
Interest expense
|
—
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
||||
Subtotal of reclassifications, pretax
|
—
|
|
|
4.4
|
|
|
3.1
|
|
|
7.5
|
|
||||
Other comprehensive income (loss), pretax
|
(71.7
|
)
|
|
5.2
|
|
|
(46.4
|
)
|
|
(112.9
|
)
|
||||
Income tax effect
|
—
|
|
|
(1.8
|
)
|
|
17.4
|
|
|
15.6
|
|
||||
Attributable to noncontrolling interest
|
.2
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
||||
Balance December 31, 2014
|
86.8
|
|
|
(20.1
|
)
|
|
(69.3
|
)
|
|
(2.6
|
)
|
||||
Other comprehensive income (loss) before reclassifications, pretax
|
(88.5
|
)
|
|
(13.1
|
)
|
|
.1
|
|
|
(101.5
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income, pretax:
|
|
|
|
|
|
|
|
||||||||
Net sales
|
—
|
|
|
(.6
|
)
|
|
—
|
|
|
(.6
|
)
|
||||
Cost of goods sold; selling and administrative expenses
|
—
|
|
|
—
|
|
|
17.3
|
|
|
17.3
|
|
||||
Interest expense
|
—
|
|
|
4.1
|
|
|
—
|
|
|
4.1
|
|
||||
Earnings (loss) from discontinued operations, net of tax
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
||||
Subtotal of reclassifications, pretax
|
(3.6
|
)
|
|
3.5
|
|
|
17.3
|
|
|
17.2
|
|
||||
Other comprehensive income (loss), pretax
|
(92.1
|
)
|
|
(9.6
|
)
|
|
17.4
|
|
|
(84.3
|
)
|
||||
Income tax effect
|
—
|
|
|
1.5
|
|
|
(6.2
|
)
|
|
(4.7
|
)
|
||||
Attributable to noncontrolling interest
|
.5
|
|
|
—
|
|
|
—
|
|
|
.5
|
|
||||
Balance December 31, 2015
|
$
|
(4.8
|
)
|
|
$
|
(28.2
|
)
|
|
$
|
(58.1
|
)
|
|
$
|
(91.1
|
)
|
•
|
Level 1: Quoted prices for identical assets or liabilities in active markets.
|
•
|
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, volatility factors, current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.
|
•
|
Level 3: Unobservable inputs that are not corroborated by market data.
|
|
As of December 31, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Bank time deposits with original maturities of three months or less
|
$
|
—
|
|
|
$
|
176.0
|
|
|
$
|
—
|
|
|
$
|
176.0
|
|
Derivative assets (see Note S)
|
—
|
|
|
.6
|
|
|
—
|
|
|
.6
|
|
||||
Diversified investments associated with the ESUP* (see Note L)
|
22.0
|
|
|
—
|
|
|
—
|
|
|
22.0
|
|
||||
Total assets
|
$
|
22.0
|
|
|
$
|
176.6
|
|
|
$
|
—
|
|
|
$
|
198.6
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities (see Note S)
|
$
|
—
|
|
|
$
|
14.8
|
|
|
$
|
—
|
|
|
$
|
14.8
|
|
Liabilities associated with the ESUP* (see Note L)
|
22.2
|
|
|
—
|
|
|
—
|
|
|
22.2
|
|
||||
Total liabilities
|
$
|
22.2
|
|
|
$
|
14.8
|
|
|
$
|
—
|
|
|
$
|
37.0
|
|
|
As of December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Bank time deposits with original maturities of three months or less
|
$
|
—
|
|
|
$
|
140.7
|
|
|
$
|
—
|
|
|
$
|
140.7
|
|
Derivative assets (see Note S)
|
—
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
||||
Diversified investments associated with the ESUP* (see Note L)
|
18.8
|
|
|
—
|
|
|
—
|
|
|
18.8
|
|
||||
Total assets
|
$
|
18.8
|
|
|
$
|
142.7
|
|
|
$
|
—
|
|
|
$
|
161.5
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities (see Note S)
|
$
|
—
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
Liabilities associated with the ESUP* (see Note L)
|
18.6
|
|
|
—
|
|
|
—
|
|
|
18.6
|
|
||||
Total liabilities
|
$
|
18.6
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
21.3
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Accounts receivable
|
$
|
3.7
|
|
|
$
|
7.9
|
|
|
$
|
12.7
|
|
Inventory
|
4.8
|
|
|
16.2
|
|
|
15.0
|
|
|||
Property, plant and equipment
|
2.7
|
|
|
17.1
|
|
|
16.1
|
|
|||
Goodwill (see Note E)
|
7.9
|
|
|
29.4
|
|
|
6.1
|
|
|||
Other intangible assets (see Note E)
|
14.9
|
|
|
14.1
|
|
|
12.3
|
|
|||
Other current and long-term assets
|
.1
|
|
|
4.0
|
|
|
.4
|
|
|||
Current liabilities
|
(11.4
|
)
|
|
(14.1
|
)
|
|
(19.5
|
)
|
|||
Long-term liabilities
|
(10.4
|
)
|
|
(3.1
|
)
|
|
(6.4
|
)
|
|||
Additional consideration for prior years’ acquisitions
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|||
Fair value of net identifiable assets
|
11.1
|
|
71.5
|
|
|
36.7
|
|
||||
Less: Bargain purchase gain
|
—
|
|
|
—
|
|
|
8.8
|
|
|||
Less: Non-cash consideration
|
—
|
|
|
1.1
|
|
|
—
|
|
|||
Net cash consideration
|
$
|
11.1
|
|
|
$
|
70.4
|
|
|
$
|
27.9
|
|
Year Ended
|
|
Number of
Acquisitions
|
|
Segment
|
|
Product/Service
|
December 31, 2015
|
|
1
|
|
Commercial Products
|
|
Upholstered office furniture
|
December 31, 2014
|
|
5
|
|
Residential Furnishings
|
|
Innersprings; Home furniture components; Geotextile products; Fabric converting for furniture and bedding; Foam carpet underlay
|
December 31, 2013
|
|
4
|
|
Residential Furnishings (2); Specialized Products (2)
|
|
Tubing for the aerospace industry (2); Innerspring unit wire-forming machines; Geotextile products
|
•
|
Commodity Cash Flow Hedges
—We have historically used commodity cash flow hedges primarily to manage natural gas commodity price risk. Our last natural gas commodity hedge expired during 2013.
|
•
|
Interest Rate Cash Flow Hedges
—On August 12, 2012, we issued
$300
of
10
-year notes with a coupon rate of
3.40%
. As a part of this transaction, we settled our
$200
forward starting interest rate swaps we had entered into during 2010 and recognized a loss of
$42.7
, which will be amortized out of accumulated other comprehensive income to interest expense over the life of the notes.
|
•
|
Currency Cash Flow Hedges
—The foreign currency hedges manage risk associated with exchange rate volatility of various currencies.
|
|
|
Expiring at various dates through:
|
|
Total USD
Equivalent
Notional
Amount
|
|
As of December 31, 2015
|
||||||||||||
Derivatives Designated as Hedging Instruments
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||
|
Other Current
Assets
|
|
Other Current
Liabilities
|
|
Other Long-Term
Liabilities
|
|||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
-Future USD sales of Canadian, Chinese and Swiss subsidiaries
|
|
Dec 2017
|
|
$
|
219.8
|
|
|
$
|
—
|
|
|
$
|
10.1
|
|
|
$
|
2.3
|
|
-Future USD purchases of Canadian, European and Korean subsidiaries
|
|
Dec 2017
|
|
16.8
|
|
|
.3
|
|
|
—
|
|
|
—
|
|
||||
-Future MXP purchases of a USD subsidiary
|
|
Dec 2017
|
|
7.3
|
|
|
—
|
|
|
.7
|
|
|
.3
|
|
||||
-Future JPY sales of Chinese subsidiary
|
|
Dec 2016
|
|
3.8
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
||||
-Future DKK sales of Polish subsidiary
|
|
Dec 2016
|
|
15.6
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
||||
-Future EUR Sales of Chinese, Swiss and UK Subsidiaries
|
|
Mar 2017
|
|
13.6
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
||||
Total cash flow hedges
|
|
|
|
|
|
.3
|
|
|
11.1
|
|
|
2.6
|
|
|||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
DKK inter-company note receivable on a USD subsidiary
|
|
May 2016
|
|
1.7
|
|
.1
|
|
|
—
|
|
|
—
|
|
|||||
USD inter-company note receivable on a CAD subsidiary
|
|
Jan 2016
|
|
9.0
|
|
—
|
|
|
.5
|
|
|
—
|
|
|||||
USD inter-company note receivable on a Swiss subsidiary
|
|
Aug 2016
|
|
8.0
|
|
—
|
|
|
.1
|
|
|
—
|
|
|||||
Total fair value hedges
|
|
|
|
|
|
.1
|
|
|
.6
|
|
|
—
|
|
|||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||||
Non-deliverable hedge on USD exposure to CNY
|
|
Dec 2016
|
|
11.0
|
|
—
|
|
|
.3
|
|
|
—
|
|
|||||
Non-deliverable hedge on EUR exposure to CNY
|
|
Dec 2016
|
|
2.2
|
|
—
|
|
|
.1
|
|
|
—
|
|
|||||
Non-deliverable hedge on JPY exposure to CNY
|
|
Dec 2016
|
|
2.5
|
|
—
|
|
|
.1
|
|
|
—
|
|
|||||
Hedge of DKK cash on USD Subsidiary
|
|
Apr 2016
|
|
3.0
|
|
.1
|
|
|
—
|
|
|
—
|
|
|||||
Hedge of EUR cash on UK Subsidiaries
|
|
Jan 2016
|
|
8.3
|
|
.1
|
|
|
—
|
|
|
—
|
|
|||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
|
.2
|
|
|
.5
|
|
|
—
|
|
|||||
|
|
|
|
|
|
$
|
.6
|
|
|
$
|
12.2
|
|
|
$
|
2.6
|
|
|
|
Expiring at various dates through:
|
|
Total USD
Equivalent
Notional
Amount
|
|
As of December 31, 2014
|
||||||||||||
Derivatives Designated as Hedging Instruments
|
|
Assets
|
|
Liabilities
|
||||||||||||||
Other Current
Assets
|
|
Other Current
Liabilities
|
|
Other Long-Term
Liabilities
|
||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
-Future USD sales of Canadian and Chinese subsidiaries
|
|
Dec 2016
|
|
$
|
153.3
|
|
|
$
|
.3
|
|
|
$
|
1.0
|
|
|
$
|
.2
|
|
-Future USD purchases of Canadian and European Subsidiaries
|
|
Dec 2015
|
|
10.4
|
|
|
.9
|
|
|
—
|
|
|
—
|
|
||||
-Future MXP purchases of USD subsidiary
|
|
Dec 2016
|
|
5.3
|
|
|
—
|
|
|
.3
|
|
|
.1
|
|
||||
-Future JPY sales of Chinese subsidiary
|
|
Dec 2015
|
|
6.9
|
|
|
.5
|
|
|
—
|
|
|
—
|
|
||||
-Future EUR Sales of Chinese Subsidiary
|
|
Dec 2015
|
|
6.0
|
|
|
.3
|
|
|
—
|
|
|
—
|
|
||||
Total cash flow hedges
|
|
|
|
|
|
2.0
|
|
|
1.3
|
|
|
.3
|
|
|||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
USD inter-company note receivable on a Swiss subsidiary
|
|
Sep 2015
|
|
18.5
|
|
|
—
|
|
|
1.1
|
|
|
|
|||||
|
|
|
|
|
|
$
|
2.0
|
|
|
$
|
2.4
|
|
|
$
|
.3
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
||||||
|
2015
|
|
2014
|
||||
Litigation contingency accrual - Beginning of period
|
$
|
83.9
|
|
|
$
|
3.7
|
|
Adjustment to accruals - expense - Continuing operations
|
5.7
|
|
|
56.8
|
|
||
Adjustment to accruals - expense - Discontinued operations
|
.7
|
|
|
35.4
|
|
||
Cash payments
|
(82.2
|
)
|
|
(12.0
|
)
|
||
Litigation contingency accrual - End of period
|
$
|
8.1
|
|
|
$
|
83.9
|
|
Year ended December 31
|
First
1
|
|
Second
2,5
|
|
Third
3,5
|
|
Fourth
4,6
|
|
Total
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
966.2
|
|
|
$
|
997.3
|
|
|
$
|
1,009.1
|
|
|
$
|
944.6
|
|
|
$
|
3,917.2
|
|
Gross profit
|
217.8
|
|
|
230.7
|
|
|
241.1
|
|
|
233.6
|
|
|
923.2
|
|
|||||
Earnings from continuing operations before income taxes
|
102.0
|
|
|
109.0
|
|
|
132.3
|
|
|
106.5
|
|
|
449.8
|
|
|||||
Earnings from continuing operations
|
$
|
73.3
|
|
|
$
|
76.7
|
|
|
$
|
96.2
|
|
|
$
|
81.8
|
|
|
$
|
328.0
|
|
Earnings (loss) from discontinued operations, net of tax
|
(.5
|
)
|
|
1.8
|
|
|
(.1
|
)
|
|
—
|
|
|
1.2
|
|
|||||
Net earnings
|
72.8
|
|
|
78.5
|
|
|
96.1
|
|
|
81.8
|
|
|
329.2
|
|
|||||
(Earnings) attributable to noncontrolling interest, net of tax
|
(1.1
|
)
|
|
(.8
|
)
|
|
(.9
|
)
|
|
(1.3
|
)
|
|
(4.1
|
)
|
|||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders
|
$
|
71.7
|
|
|
$
|
77.7
|
|
|
$
|
95.2
|
|
|
$
|
80.5
|
|
|
$
|
325.1
|
|
Earnings per share from continuing operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
.51
|
|
|
$
|
.54
|
|
|
$
|
.68
|
|
|
$
|
.57
|
|
|
$
|
2.30
|
|
Diluted
|
$
|
.50
|
|
|
$
|
.53
|
|
|
$
|
.67
|
|
|
$
|
.57
|
|
|
$
|
2.27
|
|
Earnings (loss) per share from discontinued operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
—
|
|
|
$
|
.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
.01
|
|
Diluted
|
$
|
—
|
|
|
$
|
.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
.01
|
|
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
.51
|
|
|
$
|
.55
|
|
|
$
|
.68
|
|
|
$
|
.57
|
|
|
$
|
2.31
|
|
Diluted
|
$
|
.50
|
|
|
$
|
.54
|
|
|
$
|
.67
|
|
|
$
|
.57
|
|
|
$
|
2.28
|
|
2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
875.5
|
|
|
$
|
956.1
|
|
|
$
|
997.4
|
|
|
$
|
953.3
|
|
|
$
|
3,782.3
|
|
Gross profit
|
176.8
|
|
|
200.7
|
|
|
209.1
|
|
|
203.8
|
|
|
790.4
|
|
|||||
Earnings from continuing operations before income taxes
|
76.8
|
|
|
93.2
|
|
|
66.5
|
|
|
59.0
|
|
|
295.5
|
|
|||||
Earnings from continuing operations
|
$
|
56.0
|
|
|
$
|
69.6
|
|
|
$
|
53.4
|
|
|
$
|
46.2
|
|
|
$
|
225.2
|
|
Earnings (loss) from discontinued operations, net of tax
|
(2.3
|
)
|
|
(92.7
|
)
|
|
(4.4
|
)
|
|
(24.6
|
)
|
|
(124.0
|
)
|
|||||
Net earnings (loss)
|
53.7
|
|
|
(23.1
|
)
|
|
49.0
|
|
|
21.6
|
|
|
101.2
|
|
|||||
(Earnings) attributable to noncontrolling interest, net of tax
|
(.6
|
)
|
|
(.8
|
)
|
|
(.8
|
)
|
|
(1.0
|
)
|
|
(3.2
|
)
|
|||||
Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders
|
$
|
53.1
|
|
|
$
|
(23.9
|
)
|
|
$
|
48.2
|
|
|
$
|
20.6
|
|
|
$
|
98.0
|
|
Earnings per share from continuing operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
.39
|
|
|
$
|
.49
|
|
|
$
|
.37
|
|
|
$
|
.32
|
|
|
$
|
1.57
|
|
Diluted
|
$
|
.38
|
|
|
$
|
.48
|
|
|
$
|
.37
|
|
|
$
|
.32
|
|
|
$
|
1.55
|
|
Earnings (loss) per share from discontinued operations attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
(.02
|
)
|
|
$
|
(.66
|
)
|
|
$
|
(.03
|
)
|
|
$
|
(.17
|
)
|
|
$
|
(.88
|
)
|
Diluted
|
$
|
(.02
|
)
|
|
$
|
(.65
|
)
|
|
$
|
(.03
|
)
|
|
$
|
(.17
|
)
|
|
$
|
(.87
|
)
|
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
.37
|
|
|
$
|
(.17
|
)
|
|
$
|
.34
|
|
|
$
|
.15
|
|
|
$
|
.69
|
|
Diluted
|
$
|
.37
|
|
|
$
|
(.17
|
)
|
|
$
|
.34
|
|
|
$
|
.14
|
|
|
$
|
.68
|
|
1.
|
First quarter 2015 Earnings from continuing operations include impairment charges of
$6
from our steel tubing operation. (Note C)
|
2.
|
Second quarter 2015 Earnings from continuing operations include charges of
$2
associated with litigation accruals. Discontinued operations includes
$1
in litigation accruals (Note T)
|
3.
|
Fourth quarter 2015 Earnings from continuing operations include a
$12
charge associated with a lump sum pension buyout and
$4
litigation accruals (Note M and Note T)
|
4.
|
Second quarter 2014 Earnings from discontinued operations include pretax goodwill impairment charges of
$108
associated with the Store Fixtures operation. (Note B and Note E)
|
5.
|
Third quarter 2014 Earnings from continuing operations includes pretax charges of
$32
associated with litigation accruals. Discontinued operations includes pretax charges of
$8
for litigation accruals. (Note T)
|
6.
|
Fourth quarter 2014 Earnings from continuing operations include pretax charges of
$22
for litigation accruals. Discontinued operations includes the following pretax items:
$27
litigation accruals and a
$9
loss on the sale of the majority of our Store Fixtures unit. (Note B and Note T)
|
Column A
|
Column B
|
|
Column C
|
|
Column D
|
|
Column E
|
||||||||
Description
|
Balance
at
Beginning
of Period
|
|
Additions
Charged
to Cost
and
Expenses
|
|
Deductions
|
|
Balance
at End of
Period
|
||||||||
Year ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful receivables
|
$
|
17.2
|
|
|
$
|
2.6
|
|
|
$
|
9.9
|
|
(1)
|
$
|
9.9
|
|
Excess and obsolete inventory reserve, LIFO basis
|
$
|
21.9
|
|
|
$
|
9.8
|
|
|
$
|
7.0
|
|
|
$
|
24.7
|
|
Tax valuation allowance
|
$
|
27.1
|
|
|
$
|
(.4
|
)
|
|
$
|
.1
|
|
|
$
|
26.6
|
|
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful receivables
|
$
|
17.6
|
|
|
$
|
4.9
|
|
|
$
|
5.3
|
|
(1)
|
$
|
17.2
|
|
Excess and obsolete inventory reserve, LIFO basis
|
$
|
21.9
|
|
|
$
|
10.0
|
|
|
$
|
10.0
|
|
|
$
|
21.9
|
|
Tax valuation allowance
|
$
|
25.4
|
|
|
$
|
1.0
|
|
|
$
|
(.7
|
)
|
|
$
|
27.1
|
|
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful receivables
|
$
|
20.6
|
|
|
$
|
6.1
|
|
|
$
|
9.1
|
|
(1)
|
$
|
17.6
|
|
Excess and obsolete inventory reserve, LIFO basis
|
$
|
19.4
|
|
|
$
|
11.8
|
|
|
$
|
9.3
|
|
|
$
|
21.9
|
|
Tax valuation allowance
|
$
|
32.2
|
|
|
$
|
(3.4
|
)
|
|
$
|
3.4
|
|
|
$
|
25.4
|
|
(1)
|
Uncollectible accounts charged off, net of recoveries.
|
|
LEGGETT & PLATT, INCORPORATED
|
|
|
|
|
|
By:
|
/s/ K
ARL
G. G
LASSMAN
|
|
|
Karl G. Glassman
|
|
|
President and Chief Executive Officer
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
(a) Principal Executive Officer:
|
|
|
|
|
|
|
|
||
/s/ K
ARL
G. G
LASSMAN
|
|
President and Chief Executive Officer and Director
|
|
February 25, 2016
|
Karl G. Glassman
|
|
|
||
|
|
|
||
(b) Principal Financial Officer:
|
|
|
|
|
|
|
|
||
/
S
/ M
ATTHEW
C. F
LANIGAN
|
|
Executive Vice President, Chief Financial Officer and Director
|
|
February 25, 2016
|
Matthew C. Flanigan
|
|
|
||
|
|
|
||
(c) Principal Accounting Officer:
|
|
|
|
|
|
|
|
||
/
S
/ T
AMMY
M. T
RENT
|
|
Vice President and Chief Accounting Officer
|
|
February 25, 2016
|
Tammy M. Trent
|
|
|
||
|
|
|
||
(d) Directors:
|
|
|
|
|
|
|
|
||
R
OBERT
E. B
RUNNER*
|
|
Director
|
|
|
Robert E. Brunner
|
|
|
|
|
|
|
|
|
|
Robert G. Culp, III*
|
|
Director
|
|
|
Robert G. Culp, III
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
R. T
ED
E
NLOE
, III*
|
|
Director
|
|
|
R. Ted Enloe, III
|
|
|
|
|
|
|
|
||
Manuel A. Fernandez*
|
|
Director
|
|
|
Manuel A. Fernandez
|
|
|
|
|
|
|
|
||
R
ICHARD
T. F
ISHER
*
|
|
Director
|
|
|
Richard T. Fisher
|
|
|
|
|
|
|
|
||
Joseph W. McClanathan*
|
|
Director
|
|
|
Joseph W. McClanathan
|
|
|
|
|
|
|
|
|
|
J
UDY
C. O
DOM
*
|
|
Director
|
|
|
Judy C. Odom
|
|
|
|
|
|
|
|
|
|
P
HOEBE
A. W
OOD
*
|
|
Director
|
|
|
Phoebe A. Wood
|
|
|
|
|
*By:
|
/s/
J
OHN
G. M
OORE
|
|
February 25, 2016
|
|
John G. Moore
|
|
|
|
Attorney-in-Fact
Under Power-of-Attorney
dated February 24, 2016
|
|
|
Exhibit No.
|
|
Document Description
|
|
|
|
3.1
|
|
Restated Articles of Incorporation of the Company as of May 13, 1987, with Amendments dated May 12, 1993 and May 20, 1999; filed March 11, 2004 as Exhibit 3.1 to the Company’s Form 10-K for the year ended December 31, 2003, are incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
3.2
|
|
Bylaws of the Company, as amended through November 3, 2015, filed November 4, 2015 as Exhibit 3.2 to the Company’s Form 10-Q, are incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.1
|
|
Article III of the Company’s Restated Articles of Incorporation, as amended, filed as Exhibit 3.1 hereto, is incorporated by reference.
|
|
|
|
4.2
|
|
Indenture, dated as of November 24, 1999, between the Company and U.S. Bank National Association (successor in interest to The Bank of New York Mellon Trust Company, NA which was successor in interest to JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank)), as Trustee, and Form of Note included therein under Sections 202 and 203, filed November 5, 1999 as Exhibit 4.1 to Registration Statement No. 333-90443 on Form S-3, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.2.1
|
|
Tri-Party Agreement under the November 24, 1999 Indenture, between the Company, The Bank of New York Mellon Trust Company, NA (successor in interest to The Chase Manhattan Bank) (as Prior Trustee) and U.S. Bank National Association (as Successor Trustee), dated February 20, 2009, filed February 25, 2009 as Exhibit 4.2.1 to the Company’s Form 10-K for the year ended December 31, 2008, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.3
|
|
Senior Indenture dated May 6, 2005 between the Company and U.S. Bank National Association (successor in interest to The Bank of New York Mellon Trust Company, NA which was successor in interest to JPMorgan Chase Bank, N.A.), as Trustee, filed May 10, 2005 as Exhibit 4.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.3.1
|
|
Tri-Party Agreement under the May 6, 2005 Senior Indenture, between the Company, The Bank of New York Mellon Trust Company, NA (successor in interest to JPMorgan Chase Bank, N.A.) (as Prior Trustee) and U.S. Bank National Association (as Successor Trustee), dated February 20, 2009, filed February 25, 2009 as Exhibit 4.3.1 to the Company’s Form 10-K for the year ended December 31, 2008, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.4
|
|
Form of $300,000,000 3.40% Senior Notes due 2022, issued pursuant to the Senior Indenture dated May 6, 2005, filed August 15, 2012 as Exhibit 4.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.5
|
|
Form of $150,000,000 4.40% Notes due 2018 issued pursuant to the Indenture dated November 24, 1999, filed June 20, 2003 as Exhibit 4.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.6
|
|
Form of $180,000,000 4.65% Notes retired in 2014 issued pursuant to the Indenture dated November 24, 1999, filed November 9, 2004 as Exhibit 4.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
4.7
|
|
Form of $200,000,000 5.00% Notes retired in 2015 issued pursuant to the Senior Indenture dated May 6, 2005, filed August 11, 2005 as Exhibit 4.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
Exhibit No.
|
|
Document Description
|
|
|
|
4.8
|
|
Form of $300,000,000 3.80% Notes due 2024 issued pursuant to the Senior Indenture dated May 6, 2005, filed November 10, 2014 as Exhibit 4.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.1*
|
|
Employment Agreement between the Company and David S. Haffner, dated March 1, 2013, filed March 6, 2013 as Exhibit 10.2 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.2*
|
|
Employment Agreement between the Company and Karl G. Glassman, dated March 1, 2013, filed March 6, 2013 as Exhibit 10.3 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.3*
|
|
Employment Agreement between the Company and Matthew C. Flanigan, dated March 1, 2013, filed March 6, 2013 as Exhibit 10.4 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.4*
|
|
Amended and Restated Severance Benefit Agreement between the Company and Karl G. Glassman, dated March 1, 2013, filed March 6, 2013 as Exhibit 10.6 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.5*
|
|
Severance Benefit Agreement between the Company and Matthew C. Flanigan, dated March 1, 2013, filed March 6, 2013 as Exhibit 10.7 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.6*
|
|
Form of Indemnification Agreement approved by the shareholders of the Company and entered into between the Company and its directors and executive officers, filed March 28, 2002, as Exhibit 10.11 to the Company’s Form 10-K for the year ended December 31, 2001, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.7*,**
|
|
Summary Sheet of Executive Cash Compensation.
|
|
|
|
10.8*,**
|
|
Summary Sheet of Director Compensation.
|
|
|
|
10.9*
|
|
The Company’s Flexible Stock Plan, amended and restated, effective as of May 5, 2015, filed March 25, 2015 as Appendix A to the Company’s Proxy Statement, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.1*
|
|
Form of Non-Qualified Stock Option Award Agreement pursuant to the Company’s Flexible Stock Plan, filed November 4, 2014 as Exhibit 10.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.2*
|
|
2011 Form of Performance Stock Unit Award Agreement pursuant to the Company’s Flexible Stock Plan, (applicable to 2011 grants through 2014 grants), filed January 6, 2011 as Exhibit 10.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.3*
|
|
2015 Form of Performance Stock Unit Award Agreement pursuant to the Company’s Flexible Stock Plan, (applicable to 2015 grants and all grants thereafter), filed November 4, 2014 as Exhibit 10.2 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.4*
|
|
Form of Director Restricted Stock Agreement pursuant to the Company’s Flexible Stock Plan, filed August 7, 2008 as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended June 30, 2008, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.5*
|
|
Form of Director Restricted Stock Unit Award Agreement pursuant to the Company’s Flexible Stock Plan, filed February 24, 2012 as Exhibit 10.9.7 to the Company's Form 10-K for the year ended December 31, 2011, is incorporated by reference. (SEC File No. 001-07845)
|
Exhibit No.
|
|
Document Description
|
|
|
|
|
|
|
10.9.6*
|
|
Form of Restricted Stock Unit Award pursuant to the Company’s Flexible Stock Plan, filed March 6, 2013 as Exhibit 10.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.7*
|
|
2015 Form of Profitable Growth Incentive Award Agreement and Terms and Conditions (applicable to 2015 awards and all awards thereafter), filed March 26, 2015 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.8*
|
|
Award Formula for the 2015-2016 Profitable Growth Incentive Program, filed March 26, 2015 as Exhibit 10.2 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.9*
|
|
2014 Form of Profitable Growth Incentive Award Agreement and Terms and Conditions (applicable to 2014 awards), filed March 3, 2014 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.10*
|
|
Award Formula for 2014-2015 Profitable Growth Incentive Program, filed March 3, 2014 as Exhibit 10.2 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.11*
|
|
2013 Form of Profitable Growth Incentive Award Agreement and Terms and Conditions (applicable to 2013 awards), filed March 6, 2013 as Exhibit 10.8 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.9.12*
|
|
Award Formula for 2013-2014 Profitable Growth Incentive Program, filed March 6, 2013 as Exhibit 10.9 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.10*
|
|
The Company’s 2014 Key Officers Incentive Plan, effective January 1, 2014, filed March 25, 2014 as Appendix A to the Company’s Proxy Statement, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.10.1*
|
|
2015 Award Formula under the Company's 2014 Key Officers Incentive Plan, filed March 26, 2015 as Exhibit 10.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.10.2*
|
|
2014 Award Formula under the Company’s 2014 Key Officers Incentive Plan, filed March 31, 2014 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.11*
|
|
The Company’s 2009 Key Officers Incentive Plan, effective January 1, 2009, filed March 26, 2009 as Appendix B to the Company’s Proxy Statement, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.11.1*
|
|
2013 Award Formula under the Company’s 2009 Key Officers Incentive Plan, filed April 1, 2013 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.12*
|
|
The Company’s Director Stock Option Plan, as amended and restated November 13, 2002, filed March 18, 2003 as Exhibit 10.13 to the Company’s Form 10-K for the year ended December 31, 2002, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.13*
|
|
The Company’s Deferred Compensation Program, effective as of December 1, 2011, filed February 24, 2012 as Exhibit 10.13 to the Company's Form 10-K for the year ended December 31, 2011, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
Exhibit No.
|
|
Document Description
|
|
|
|
10.14*
|
|
The Company’s Executive Deferred Stock Program, filed March 31, 1999 as Exhibit 10.16 to the Company’s Form 10-K for the year ended December 31, 1998, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.15*,**
|
|
The Company’s 2005 Executive Stock Unit Program, as amended and restated, effective February 23, 2016.
|
|
|
|
10.16*,**
|
|
Description of the long-term disability arrangement between the Company and Karl G. Glassman.
|
|
|
|
10.17*
|
|
The Company’s Retirement K Excess Program, amended and restated on November 26, 2007, effective as of January 1, 2007, filed February 26, 2008 as Exhibit 10.19 to the Company’s Form 10-K for the year ended December 31, 2007, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.18*
|
|
Summary Description of the Company's Key Management Incentive Compensation Plan for Profit Center Participants, filed May 6, 2015 as Exhibit 10.1 to the Company’s Form 10-Q, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.19
|
|
Credit Agreement, dated August 19, 2011 among the Company, JPMorgan Chase Bank, N.A. as administrative agent, and the participating banking institutions named therein, filed August 19, 2011 as Exhibit 10.1 to the Company’s Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.19.1
|
|
First Amendment to Credit Agreement, dated August 22, 2013, among the Company, JPMorgan Chase Bank, N.A. as administrative agent, and the participating banking institutions named therein, filed August 26, 2013 as Exhibit 10.2 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.19.2
|
|
Second Amendment to Credit Agreement, dated August 15, 2014, among the Company, JPMorgan Chase Bank, N.A. as administrative agent, and the participating banking institutions named therein, filed August 19, 2014 as Exhibit 10.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.20
|
|
Commercial Paper Issuing and Paying Agent Agreement between U.S. Bank National Association and the Company, dated December 2, 2014, including Master Note, filed December 5, 2014 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.20.1
|
|
Form of Amended and Restated Commercial Paper Dealer Agreement filed December 5, 2014 as Exhibit 10.2 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
10.21
|
|
Release Agreement between the Company and David S. Haffner, dated December 31, 2015, filed January 5, 2016 as Exhibit 10.1 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845)
|
|
|
|
12**
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
21**
|
|
Schedule of Subsidiaries of the Company.
|
|
|
|
23**
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
|
|
24**
|
|
Power of Attorney executed by members of the Company’s Board of Directors regarding this Form 10-K.
|
|
|
|
31.1**
|
|
Certification of Karl G. Glassman, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated February 25, 2016.
|
|
|
|
Exhibit No.
|
|
Document Description
|
|
|
|
31.2**
|
|
Certification of Matthew C. Flanigan, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated February 25, 2016.
|
|
|
|
32.1**
|
|
Certification of Karl G. Glassman, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated February 25, 2016.
|
|
|
|
32.2**
|
|
Certification of Matthew C. Flanigan, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated February 25, 2016.
|
|
|
|
101.INS***
|
|
XBRL Instance Document.
|
|
|
|
101.SCH***
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
101.CAL***
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
101.DEF***
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
101.LAB***
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
101.PRE***
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
*
|
Denotes management contract or compensatory plan or arrangement.
|
**
|
Denotes filed or furnished herewith.
|
***
|
Exhibit 101 to this report includes the following formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for each year in the three year period ended December 31, 2015; (ii) Consolidated Statements of Comprehensive Income (Loss) for each year in the three year period ended December 31, 2015; (iii) Consolidated Balance Sheets at December 31, 2015 and December 31, 2014; (iv) Consolidated Statements of Cash Flows for each year in the three year period ended December 31, 2015; (v) Consolidated Statements of Changes in Equity for each year in the three year period ended December 31, 2015; and (vi) Notes to Consolidated Financial Statements.
|
Named Executive Officers
1,2
|
|
2014 Base
Salaries |
|
2015 Base
Salaries |
|
2016 Base Salaries
3
|
|||
Karl G. Glassman, President and Chief Executive Officer
|
|
$
|
810,000
|
|
$
|
840,000
|
|
$
|
1,100,000
|
Matthew C. Flanigan, EVP and Chief Financial Officer
|
|
$
|
490,000
|
|
$
|
507,000
|
|
TBD
4
|
|
Perry E. Davis, SVP, President – Residential Furnishings
|
|
$
|
352,000
|
|
$
|
370,000
|
|
TBD
4
|
1
|
David S. Haffner served as the Company’s Board Chair and Chief Executive Officer through December 31, 2015. Mr. Haffner’s 2014 and 2015 base salaries were $1,090,000 and $1,130,000, respectively. Pursuant to Mr. Haffner's former employment agreement with the Company, he is entitled to continue to receive his annual base salary (at the rate of $1,130,000) through the 2017 Annual Shareholders Meeting, which is expected to be held in May.
|
|
|
2
|
Joseph D. Downes, Jr., the Company’s former SVP, President – Industrial Materials retired from the Company on December 31, 2015. From April 6, 2015 through December 31, 2015, he served in a lesser position with the Company and received remuneration based on an annual salary of $140,000. In 2014 and through April 5, 2015, he received remuneration based on an annual salary of $347,300.
|
|
|
3
|
Karl G. Glassman became the Company’s President and Chief Executive Officer, effective January 1, 2016, and, as previously reported, the Committee increased his annual base salary from $840,000 to $1,100,000 at its January 4, 2016 meeting.
|
|
|
4
|
To be determined. The 2016 annual base salaries for Matthew C. Flanigan and Perry E. Davis are expected to be set by the Committee at its March 2016 meeting.
|
Named Executive Officers
,1,2
|
|
2014
Target Percentages |
|
2015
Target Percentages |
|
2016
Target Percentages 3 |
Karl G. Glassman, President and Chief Executive Officer
|
|
90%
|
|
90%
|
|
115%
|
Matthew C. Flanigan, EVP and Chief Financial Officer
|
|
80%
|
|
80%
|
|
TBD
4
|
Perry E. Davis, SVP, President – Residential Furnishings
|
|
60%
|
|
60%
|
|
TBD
4
|
1
|
Davis S. Haffner served as the Company’s Board Chair and Chief Executive Officer through December 31, 2015. His Target Percentage was 115% in each of 2014 and 2015. Pursuant to Mr. Haffner's former employment agreement with the Company, he will continue to receive a cash bonus payment with a Target percentage of 115% for all of 2016 and through the 2017 Annual Shareholders Meeting, which is expected to be held in May. Mr. Haffner’s award formula is expected to be adopted at the March Committee meeting, and is expected to measure the achievement of Return on Capital Employed (70% relative weight) and Cash Flow (30% relative weight).
|
|
|
2
|
Joseph D. Downes, Jr., the Company’s former SVP, President – Industrial Materials retired from the Company on December 31, 2015. He served in a lesser position with the Company from April 6, 2015 through December 31, 2015, and, as a result, in 2015, he participated in the Company’s Key Management Incentive Compensation Plan, which is a cash bonus plan for non-executive officers. The award payout under this plan was determined in substantially the same manner as the 2014 Key Officers Incentive Plan and the 2015 award formula. The performance objectives were Return on Capital Employed (70% relative weight) and Free Cash Flow (30% relative weight) increased by as much as 5% for exceptional safety performance or decreased by as much as 20% for critical compliance failures.
|
|
|
3
|
Karl G. Glassman became the Company’s President and Chief Executive Officer, effective January 1, 2016, and as previously reported, the Committee increased his Target Percentage from 90% to 115% at its January 4, 2016 meeting.
|
|
|
4
|
To be determined. The 2016 target percentages for Matthew C. Flanigan and Perry E. Davis are expected to be set by the Committee at its March 2016 meeting.
|
1
|
Neither Mr. Haffner nor Mr. Downes were employed by the Company as of January 1, 2016. As such, neither have individual performance goals for 2016.
|
Achievement
|
|
Payout
|
|
1 – Did not achieve goal
|
|
0
|
%
|
2 – Partially achieved goal
|
|
50
|
%
|
3 – Substantially achieved goal
|
|
75
|
%
|
4 – Fully achieved goal
|
|
100
|
%
|
5 – Significantly exceeded goal
|
|
up to 150
|
%
|
Compensation Item
|
|
Prior Year
Compensation |
|
Current Year
Compensation |
||
Cash Compensation
|
|
|
|
|
|
|
Board Retainer
|
|
$
|
60,000
|
|
$
|
60,000
|
Audit Committee
|
|
|
|
|
|
|
Chair Retainer
|
|
$
|
18,000
|
|
$
|
18,000
|
Member Retainer
|
|
$
|
8,000
|
|
$
|
8,000
|
Compensation Committee
|
|
|
|
|
|
|
Chair Retainer
|
|
$
|
15,000
|
|
$
|
15,000
|
Member Retainer
|
|
$
|
6,000
|
|
$
|
6,000
|
Nominating & Corporate Governance Committee
|
|
|
|
|
|
|
Chair Retainer
|
|
$
|
10,000
|
|
$
|
10,000
|
Member Retainer
|
|
$
|
5,000
|
|
$
|
5,000
|
Equity Compensation - Restricted Stock or Restricted Stock Units
|
|
|
|
|
|
|
Independent Board Chair (including director retainer)
1
|
|
$
|
N/A
|
|
$
|
260,000
|
Lead Director Retainer (including director retainer)
|
|
$
|
260,000
|
|
$
|
260,000
|
Director Retainer
|
|
$
|
135,000
|
|
$
|
135,000
|
1
|
R. Ted Enloe, III was elected Independent Board Chair effective January 1, 2016 to serve until the Annual Shareholder Meeting in May 2016. Mr. Enloe replaced David S. Haffner as Board Chair. Mr. Haffner previously served the Company as Board Chair and Chief Executive Officer. Mr. Enloe received a grant of 1,149 shares of restricted stock on January 4, 2016, which represented the pro-rata increase in equity compensation from January 1, 2016 to the anticipated Annual Shareholder Meeting on May 17, 2016 for his service as Independent Board Chair. The restricted stock award is expected to vest the day before the Annual Shareholder Meeting.
|
|
|
|
|
|
Page
|
1.
|
NAME AND PURPOSE
|
1
|
|||
|
|
1.1
|
|
Name.
|
1
|
|
|
1.2
|
|
Purpose.
|
1
|
|
|
|
|
|
|
2.
|
DEFINITIONS
|
1
|
|||
|
|
2.1
|
|
Account.
|
1
|
|
|
2.2
|
|
Additional Matching Contribution.
|
1
|
|
|
2.3
|
|
Beneficiary.
|
1
|
|
|
2.4
|
|
Board.
|
1
|
|
|
2.5
|
|
Calendar Year.
|
1
|
|
|
2.6
|
|
Change in Control.
|
1
|
|
|
2.7
|
|
Committee.
|
1
|
|
|
2.8
|
|
Common Stock.
|
1
|
|
|
2.9
|
|
Company.
|
1
|
|
|
2.10
|
|
Company Stock Account.
|
1
|
|
|
2.11
|
|
Compensation.
|
1
|
|
|
2.12
|
|
Contributions.
|
2
|
|
|
2.13
|
|
Disability.
|
2
|
|
|
2.14
|
|
Diversified Investment Account.
|
2
|
|
|
2.15
|
|
Diversified Investments.
|
2
|
|
|
2.16
|
|
Dividend Contribution.
|
2
|
|
|
2.17
|
|
Election.
|
2
|
|
|
2.18
|
|
Employer.
|
2
|
|
|
2.19
|
|
ERISA.
|
2
|
|
|
2.20
|
|
Fair Market Value.
|
2
|
|
|
2.21
|
|
Investment Election.
|
3
|
|
|
2.22
|
|
Key Employee.
|
3
|
|
|
2.23
|
|
Management Committee.
|
3
|
|
|
2.24
|
|
Matching Contribution.
|
3
|
|
|
2.25
|
|
Participant.
|
3
|
|
|
2.26
|
|
Participant’s Contribution.
|
3
|
|
|
2.27
|
|
Premium Contribution.
|
3
|
|
|
2.28
|
|
Section 16 Officers.
|
3
|
|
|
2.29
|
|
Section 409A.
|
3
|
|
|
2.30
|
|
Separation from Service.
|
3
|
|
|
2.31
|
|
Specified Employee.
|
3
|
|
|
2.32
|
|
Stock Unit.
|
3
|
|
|
2.33
|
|
Unforeseeable Emergency.
|
3
|
|
|
2.34
|
|
Year of Service.
|
3
|
|
|
2.35
|
|
Year of Vesting Service.
|
4
|
|
|
|
|
|
|
3.
|
ELIGIBILITY AND PARTICIPATION
|
4
|
|||
|
|
3.1
|
|
Selection of Participants.
|
4
|
|
|
3.2
|
|
Continued Eligibility.
|
4
|
|
|
|
|
|
|
|
|
|
|
|
Page
|
4.
|
CONTRIBUTIONS AND PARTICIPANT ACCOUNTS
|
4
|
|||
|
|
4.1
|
|
Accounts.
|
4
|
|
|
4.2
|
|
Participant Contributions.
|
4
|
|
|
4.3
|
|
Premium Contributions.
|
4
|
|
|
4.4
|
|
Matching Contributions.
|
5
|
|
|
4.5
|
|
Additional Matching Contributions.
|
5
|
|
|
4.6
|
|
Dividend Contributions.
|
5
|
|
|
4.7
|
|
Participant's Election.
|
5
|
|
|
4.8
|
|
Participant's Investment Election.
|
5
|
|
|
4.9
|
|
Treatment of Performance Compensation for Certain Newly Eligible Participants.
|
6
|
|
|
4.10
|
|
Change in Capitalization.
|
6
|
|
|
4.11
|
|
Impact of Deferred Compensation Program.
|
6
|
|
|
|
|
|
|
5.
|
DISTRIBUTION
|
6
|
|||
|
|
5.1
|
|
Distribution.
|
6
|
|
|
5.2
|
|
Form of Distribution.
|
7
|
|
|
5.3
|
|
Withholding from Distributions.
|
7
|
|
|
5.4
|
|
Forfeiture of Stock Units.
|
7
|
|
|
5.5
|
|
Beneficiary.
|
7
|
|
|
5.6
|
|
Distribution Upon Unforeseeable Emergency or Change in Control.
|
7
|
|
|
5.7
|
|
Change in Form of Distribution.
|
7
|
|
|
5.8
|
|
Distribution upon Section 409A Failure.
|
8
|
|
|
|
|
|
|
6.
|
ADMINISTRATION
|
8
|
|||
|
|
6.1
|
|
Administration.
|
8
|
|
|
6.2
|
|
Committee’s Authority.
|
8
|
|
|
6.3
|
|
Section 16 Officers.
|
9
|
|
|
6.4
|
|
Compliance with Applicable Law.
|
9
|
|
|
|
|
|
|
7.
|
CLAIMS
|
9
|
|||
|
|
7.1
|
|
Adjudication of Claims.
|
9
|
|
|
7.2
|
|
Notice of Denial.
|
9
|
|
|
7.3
|
|
Contents of Notice of Denial.
|
9
|
|
|
7.4
|
|
Right to Review.
|
10
|
|
|
7.5
|
|
Application to Review.
|
10
|
|
|
7.6
|
|
Hearing.
|
10
|
|
|
7.7
|
|
Decision on Review.
|
10
|
|
|
|
|
|
|
8.
|
GENERAL PROVISIONS
|
11
|
|||
|
|
8.1
|
|
No Contract.
|
11
|
|
|
8.2
|
|
No Assignment.
|
11
|
|
|
8.3
|
|
Unfunded Program.
|
11
|
|
|
8.4
|
|
No Trust Created.
|
12
|
|
|
8.5
|
|
Binding Effect.
|
12
|
|
|
8.6
|
|
Amendments and Termination.
|
12
|
|
|
8.7
|
|
Governing Law.
|
12
|
|
|
8.8
|
|
Notices.
|
12
|
|
|
8.9
|
|
Committee’s Right.
|
12
|
Name
|
|
Annual Premium*
|
|
Monthly Benefit
|
|
Benefit Period
|
||
Karl G. Glassman
|
|
$
|
1,185
|
|
$
|
4,200
|
|
Until Age 65
|
* Under the supplemental disability coverage, the Company pays for the premium.
|
|
|
|
|
|
|
|
Exhibit 12
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Leggett & Platt, Incorporated and Subsidiaries
|
|||||||||||||||||||
Computation of Ratio of Earnings to Fixed Charges
|
|||||||||||||||||||
(Amounts in millions of dollars)
|
|||||||||||||||||||
|
|
||||||||||||||||||
|
Twelve Months Ended
|
||||||||||||||||||
|
December 31,
|
||||||||||||||||||
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income from continuing operations including equity-method investment earnings (a)
|
$449.8
|
|
$295.5
|
|
$237.6
|
|
$287.5
|
|
$234.4
|
||||||||||
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense and amortization of interest rate swaps and debt discount and premium on all indebtedness (including amount capitalized)
|
41.8
|
|
|
42.3
|
|
|
45.2
|
|
|
44.0
|
|
|
38.8
|
|
|||||
Portion of rental expense under operating leases representative of an interest factor (b)
|
17.3
|
|
|
17.0
|
|
|
16.5
|
|
|
16.0
|
|
|
14.6
|
|
|||||
Amortization of capitalized interest
|
1.0
|
|
|
1.0
|
|
|
.9
|
|
|
.9
|
|
|
1.0
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity-method investment (earnings) loss
|
(.4
|
)
|
|
(.3
|
)
|
|
(.5
|
)
|
|
(.6
|
)
|
|
(.4
|
)
|
|||||
Interest capitalized
|
(.7
|
)
|
|
(.5
|
)
|
|
(.5
|
)
|
|
(.6
|
)
|
|
(.7
|
)
|
|||||
Total Earnings (c)
|
$
|
508.8
|
|
|
$
|
355.0
|
|
|
$
|
299.2
|
|
|
$
|
347.2
|
|
|
$
|
287.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense and amortization of interest rate swaps and debt discount and premium on all indebtedness
|
$41.1
|
|
$41.8
|
|
$44.7
|
|
$43.4
|
|
$38.1
|
||||||||||
Interest capitalized
|
.7
|
|
|
.5
|
|
|
.5
|
|
|
.6
|
|
|
.7
|
|
|||||
Portion of rental expense under operating leases representative of an interest factor (b)
|
17.3
|
|
|
17.0
|
|
|
16.5
|
|
|
16.0
|
|
|
14.6
|
|
|||||
Total Fixed Charges
|
$
|
59.1
|
|
|
$
|
59.3
|
|
|
$
|
61.7
|
|
|
$
|
60.0
|
|
|
$
|
53.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of Earnings to Fixed Charges
|
8.6
|
|
6.0
|
|
4.8
|
|
5.8
|
|
5.4
|
(a)
|
2011 - 2013 amounts have been retrospectively adjusted to reflect the reclassification of certain operations to discontinued operations.
|
|
|
(b)
|
Estimated portion of rent expense representing interest.
|
|
|
(c)
|
Earnings consist principally of income from continuing operations before income taxes, plus fixed charges less capitalized interest. Fixed charges consist principally of interest costs.
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
Administradora Soal S.A. de C.V.
|
|
100%
|
Mexico
|
Atlas Spring Manufacturing Corp.
|
|
100%
|
California
|
Buffalo Batt & Felt, LLC
|
|
100%
|
Delaware
|
Changshu L&V Automobile Motion Co. Ltd.
|
|
100%
|
China
|
Chieng Yeng Ent. Co., Ltd.
|
|
80%
|
British Virgin Islands
|
Church Corporate Park Owner’s Association, LLC
|
|
62%
|
Delaware
|
Collier-Keyworth, LLC
|
|
100%
|
North Carolina
|
Crest-Foam Corp.
|
Edison Foam Processing Corp.
|
100%
|
New Jersey
|
|
Healthy Sleeper
|
|
|
|
Industrial Components Group
|
|
|
|
L&P Carpet Cushion
|
|
|
|
Leggett & Platt Carpet Cushion
|
|
|
|
Leggett & Platt Carpet Cushion Division
|
|
|
|
S.C.S.
|
|
|
|
Sleep Comfort Systems by Leggett & Platt
|
|
|
David Hart Aerospace Pipes Limited
|
|
100%
|
United Kingdom
|
David Hart Aerospace Pipes (Machining Division) Ltd
|
|
100%
|
United Kingdom
|
De Todo en Alambre de Aguascalientes, S. de R.L. de C.V.
|
|
100%
|
Mexico
|
DHAP Corporate Trustee Limited
|
|
100%
|
United Kingdom
|
DHAP Ltd
|
|
100%
|
United Kingdom
|
Dresher, Inc.
|
Harris-Hub Company, Inc.
|
100%
|
Delaware
|
Fides s.r.l.
|
|
100%
|
Italy
|
Flex-O-Lators, Incorporated
|
|
100%
|
Missouri
|
Fo Shan City Nan Hai Chieng Yeng Plastic & Hardware Product Co., Ltd.
1
|
|
80%
|
China
|
Gamber-Johnson, LLC
|
|
100%
|
Wisconsin
|
Gateway Holdings Limited
|
|
100%
|
United Kingdom
|
Guangdong Zhaoqing L&V Co. Ltd.
|
|
100%
|
China
|
Hanes CNC Services Co.
|
|
100%
|
North Carolina
|
Hanes Companies - New Jersey, LLC
|
Hanes
|
100%
|
Delaware
|
|
Hanes Companies
|
|
|
|
Hanes Converting Company
|
|
|
|
Hanes Fabrics Company
|
|
|
|
Hanes Trading Company
|
|
|
Hanes Companies Foundation
|
|
100%
|
North Carolina
|
Hanes Companies, Inc.
|
Attila Environmental Products
|
100%
|
North Carolina
|
|
ERO-TEX
|
|
|
|
Geo-Civ Products
|
|
|
|
Interwoven
|
|
|
|
Interwoven Group
|
|
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
|
Hanes
|
|
|
|
Hanes Companies
|
|
|
|
Hanes Companies - New Jersey
|
|
|
|
Hanes Converting Company
|
|
|
|
Hanes Dye & Finishing Division
|
|
|
|
Hanes Fabrics Company
|
|
|
|
Hanes Geo Components
|
|
|
|
Hanes Industries Division
|
|
|
|
Hanes Industries Division, Inc.
|
|
|
|
Hanes Industries Engineered Materials
|
|
|
|
Hanes Trading Company
|
|
|
|
Ikex
|
|
|
|
Jarex
|
|
|
|
Lone Star Geo Products
|
|
|
|
North American Textile
|
|
|
|
North American Textiles
|
|
|
|
North American Textile Component North American Textile Components
|
|
|
|
Price & Company
|
|
|
|
VWR Textiles & Supplies
|
|
|
|
VWR Textiles & Supplies Inc.
|
|
|
|
Webtec
|
|
|
|
West End Textiles Company
|
|
|
Hong Kong Veilon Limited
|
|
100%
|
Hong Kong
|
JP&S Holdings Limited
|
|
100%
|
United Kingdom
|
JP&S Unlimited
|
|
100%
|
United Kingdom
|
Kelmax Lopez Manufacturing, S.A. de C.V.
|
|
100%
|
Mexico
|
Kintec-Solution GmbH
|
|
100%
|
Germany
|
L and C Windsor Cables Ltd.
|
|
100%
|
Canada
|
L and G Acquisition Company, LLC
|
|
100%
|
Delaware
|
L and P Mexico, S. de R.L. de C.V.
|
L and P Mexico, Incorporated
|
100%
|
Mexico
|
L and P Springs South Africa (Pty) Ltd.
|
|
100%
|
S. Africa
|
L&C Changsha Cable Industries Ltd.
|
|
100%
|
China
|
L&C Changsha Conduit Industries Co., Ltd.
|
|
100%
|
China
|
L&C Suizhou Cable Industries Ltd.
|
|
100%
|
China
|
L&P (Australia) Acquisition Co. No. 1 Pty Ltd
|
|
100%
|
Australia
|
L&P Acquisition Company - 44
|
|
100%
|
Delaware
|
L&P Acquisition Company - 58
|
|
100%
|
Delaware
|
L&P Acquisition Company - 59
|
|
100%
|
Delaware
|
L&P Acquisition Company - 62
|
|
100%
|
Delaware
|
L&P Acquisition LLC - 10
|
|
100%
|
Delaware
|
L&P Acquisition LLC - 20
|
|
100%
|
Delaware
|
L&P Acquisition LLC – 21
|
|
100%
|
Delaware
|
L&P Aerospace Acquisition Company, LLC
|
|
100%
|
United States
|
L&P Automotive (Korea) LLC
|
|
100%
|
South Korea
|
L&P Automotive Europe GmbH
|
|
100%
|
Germany
|
L&P Automotive Europe Headquarters GmbH
|
|
100%
|
Germany
|
L&P Automotive Japan Ltd.
|
|
100%
|
Japan
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
L&P Automotive Luxembourg, S.à r.l.
|
|
100%
|
Luxembourg
|
L&P CVP Group, LLC
|
|
100%
|
Delaware
|
L&P Denmark ApS
|
|
100%
|
Denmark
|
L&P Electric, Inc.
|
Leggett & Platt Electric, Inc.
|
100%
|
Delaware
|
L&P Europe SCS
|
|
100%
|
Luxembourg
|
L&P Financial Services Co.
|
Hi Life Products
|
100%
|
Delaware
|
|
Industrial Components Group
|
|
|
|
L&P Carpet Cushion
|
|
|
|
Leggett & Platt Carpet Cushion
|
|
|
L&P Holdings LLC
|
|
100%
|
Delaware
|
L&P Hungary Ltd.
|
|
100%
|
Hungary
|
L&P International Holdings Company
|
|
100%
|
Delaware
|
L&P Materials Manufacturing, Inc.
|
Adcom Wire Company
|
100%
|
Delaware
|
|
American NonSlip Products
|
|
|
|
Consumer Products Group
|
|
|
|
Leggett & Platt Consumer Products Group
|
|
|
|
Mary Ann Industries
|
|
|
|
Rug Hold
|
|
|
L&P Netherlands Holdings B.V.
|
|
100%
|
Netherlands
|
L&P Property Foremost Industrial Park LLC
|
|
100%
|
Michigan
|
L&P Property Management Company
|
Consumer Products Group
|
100%
|
Delaware
|
|
IDEA Center
|
|
|
|
L&P PMC, Inc.
|
|
|
|
Leggett & Platt Consumer Products Group
|
|
|
L&P Real Estate Services, LLC
|
Leggett & Platt West Coast Furniture
|
100%
|
Delaware
|
L&P Somappa Comfort Systems (India) Private Limited
|
|
96.30%
|
India
|
L&P Springs Denmark ApS
|
|
100%
|
Denmark
|
L&P Springs Manufacturing, LLC
|
|
100%
|
Delaware
|
L&P Supply Chain Management, LLC
|
|
100%
|
Delaware
|
L&P Swiss Holding GmbH
|
|
100%
|
Switzerland
|
L&P Transportation LLC
|
L&P Global Supply Chain Solutions
|
100%
|
Delaware
|
|
L&P Global Supply Chain Solutions – Truckload Divison
|
|
|
|
Leggett & Platt Consumer Products Group
|
|
|
L&P UK-1 Limited
|
|
100%
|
United Kingdom
|
L&P UK-2 Limited
|
|
100%
|
United Kingdom
|
L&P/Chieng Yeng Management Co. Limited
|
|
100%
|
Hong Kong
|
Landmark Earth Solutions, Inc.
|
|
100%
|
Nevada
|
Leaving Taos, Inc.
|
Leggett Southwest Carpet Cushion
|
100%
|
Delaware
|
Leggett & Platt (Australia) Pty Ltd
|
|
100%
|
Australia
|
Leggett & Platt (Barbados) Ltd.
|
|
100%
|
Barbados
|
Leggett & Platt (Guangzhou) Co. Ltd.
|
|
100%
|
China
|
Leggett & Platt (Jiaxing) Co. Ltd.
|
|
100%
|
China
|
Leggett & Platt (Shanghai) Co. Ltd.
|
|
100%
|
China
|
Leggett & Platt (Shanghai) Consulting Co. Ltd
|
|
100%
|
China
|
Leggett & Platt (Shanghai) Machinery Technology Co. Ltd
|
|
100%
|
China
|
Leggett & Platt (Taizhou) Co. Ltd.
|
|
100%
|
China
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
Leggett & Platt Administradora, S.A. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Asia (HT) Limited
|
|
100%
|
Hong Kong
|
Leggett & Platt Asia Limited
|
L&P Global Supply Chain Solutions
|
100%
|
Hong Kong
|
Leggett & Platt Automotive Group - New Jersey, LLC
|
|
100%
|
Delaware
|
Leggett & Platt Automotive Group de Mexico, S. de R.L. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Canada Co.
|
A&R Geosynthetics
|
100%
|
Canada
|
|
Canadian Furniture
|
|
|
|
Crown North America
|
|
|
|
Crown-VMS
|
|
|
|
Design Fabricators
|
|
|
|
Design Fabricators/Fabricants de Design
|
|
|
|
FBG Canada
|
|
|
|
Globe Spring
|
|
|
|
Hanes Geo Components
|
|
|
|
Hanes Geo Components/Geocomposites Hanes
|
|
|
|
Hanes Industries
|
|
|
|
L&P Automotive Group
|
|
|
|
L&P Automotive Group London
|
|
|
|
L&P Plastics
|
|
|
|
L&P Plastics/Plastiques L et P
|
|
|
|
L&P Wire-Tie Systems
|
|
|
|
Leggett & Platt Automotive Group
|
|
|
|
Leggettwood
|
|
|
|
Leggettwood, Roberval
|
|
|
|
Leggettwood, St-Germain
|
|
|
|
Leggettwood, St-Nicolas
|
|
|
|
Lenrod
|
|
|
|
Lenrod - Hanes
|
|
|
|
Lenrod Industries
|
|
|
|
Lenrod Industries, a Division of Leggett & Platt Canada Co.
|
|
|
|
Les Industries Lenrod
|
|
|
|
Les Industries Lenrod, une Division de Societe Leggett & Platt Canada
|
|
|
|
Masterack/Crown
|
|
|
|
No-Sag Spring Company
|
|
|
|
Northfield Metal Products
|
|
|
|
Paris Spring
|
|
|
|
Rothtex
|
|
|
|
Schukra of North America
|
|
|
|
Spruceland Forest Products
|
|
|
|
Vehicle Management Systems
|
|
|
|
VMS
|
|
|
|
Westex
|
|
|
|
Westex International
|
|
|
|
Wiz Wire and Spring
|
|
|
Leggett & Platt Commercial Vehicle Products, Inc.
|
|
100%
|
Delaware
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
Leggett & Platt Components (Australia) Pty Ltd
|
|
100%
|
Australia
|
Leggett & Platt Components Company, Inc.
|
Ark-Ell Springs
|
100%
|
Delaware
|
|
Cameo Fibers
|
|
|
|
Cumulus Fibres
|
|
|
|
Everwood Products
|
|
|
|
Industrial Components Group
|
|
|
|
L&P Carpet Cushion
|
|
|
|
Leggett & Platt Carpet Cushion
|
|
|
|
Matrex
|
|
|
|
Matrex Furniture Components
|
|
|
|
Omega Motion
|
|
|
|
Petco Sackner
|
|
|
|
Sterling & Adams Bentwood
|
|
|
|
Tupelo Sleeper
|
|
|
Leggett & Platt Components Europe Limited
|
Wellhouse
|
100%
|
United Kingdom
|
|
Wellhouse Wire Products
|
|
|
Leggett & Platt de Chihuahua, S.A. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt de Mexico, S. de R.L. de C.V.
|
Leggett & Platt de Mexico, Incorporated
|
100%
|
Mexico
|
Leggett & Platt del Uruguay S.A.
|
|
100%
|
Uruguay
|
Leggett & Platt do Brasil Ltda.
|
|
100%
|
Brazil
|
Leggett & Platt Eastern Europe LLC
|
|
100%
|
Russia
|
Leggett & Platt Europe Finance SCS
|
|
100%
|
Luxembourg
|
Leggett & Platt France
|
|
100%
|
France
|
Leggett & Platt Industry (Huizhou) Co Ltd
|
|
100%
|
China
|
Leggett & Platt International Service Corporation
|
|
100%
|
Delaware
|
Leggett & Platt International Trade (Shanghai) Co., Ltd.
|
|
100%
|
China
|
Leggett & Platt Luxembourg Holdings S.à r.l.
|
|
100%
|
Luxembourg
|
Leggett & Platt Luxembourg S.à r.l.
|
|
100%
|
Luxembourg
|
Leggett & Platt Middle East, Incorporated
|
|
100%
|
Delaware
|
Leggett & Platt Office Components, LLC
|
LP Cincro
|
100%
|
Delaware
|
Leggett & Platt Office Components International S.r.l.
|
|
100%
|
Italy
|
Leggett & Platt Residencial, S. de R.L. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Servicios Comerciales, S.A. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Servicios de Manufactura, S.A. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Servicios Productivos, S. de R.L. de C.V.
2
|
|
100%
|
Mexico
|
Leggett & Platt Servicios Ejecutivos, S. de R.L. de C.V.
|
|
100%
|
Mexico
|
Leggett & Platt Tax Partnership
|
|
100%
|
Missouri
|
Leggett & Platt Texas Properties, LLC
|
|
100%
|
Texas
|
Leggett & Platt UK Holdings LLP
|
|
100%
|
United Kingdom
|
Leggett & Platt UK Limited
|
|
100%
|
United Kingdom
|
Legplat, S. de R.L. de C.V.
|
|
100%
|
Mexico
|
LPT d.o.o.
|
|
100%
|
Croatia
|
Luxco Holdings, LLC
|
|
100%
|
Delaware
|
Name
|
Doing Business As
|
% of Ownership
|
Place of Incorporation
|
Malvern Property Holdings, LLC
|
|
100%
|
Delaware
|
MPI (A Leggett & Platt Company), Inc.
|
|
100%
|
Texas
|
MPI, Inc.
|
|
100%
|
Mississippi
|
Nahtec L&P GmbH
|
|
100%
|
Germany
|
Nestaway, LLC
|
|
100%
|
Delaware
|
Paisley sp. z o.o.
|
|
100%
|
Poland
|
PTB, LLC
|
|
100%
|
Delaware
|
Pullmaflex Benelux N.V.
|
|
100%
|
Belgium
|
Pullmaflex International Limited
|
|
100%
|
United Kingdom
|
Pullmaflex Southern Africa (Proprietary) Limited
|
|
49%
|
South Africa
|
Pullmaflex UK Limited
|
|
100%
|
United Kingdom
|
Schukra Berndorf Ges.m.b.H.
|
|
100%
|
Austria
|
SCHUKRA Geratebau GmbH
|
|
100%
|
Austria
|
SCI Parent, Inc.
|
|
100%
|
Delaware
|
Solon Specialty Wire Co.
|
|
100%
|
Delaware
|
Southwest Carpet Pad, Inc.
|
|
100%
|
California
|
Specitubes SAS
|
|
100%
|
France
|
Sponge-Cushion, Inc.
|
|
100%
|
Illinois
|
Spuhl GmbH
|
|
100%
|
Switzerland
|
Sterling Steel Company, LLC
|
|
100%
|
Delaware
|
Suncoast Lots 579, LLC
|
|
100%
|
Florida
|
Tiazhou Intes-Leggett & Platt Special Textile Co. Ltd.
|
|
50%
|
China
|
Trio Line Polska, sp. z o.o.
|
|
70%
|
Poland
|
Valley Metals, LLC
|
|
100%
|
California
|
Western Pneumatic Tube Company, LLC
|
|
100%
|
Washington
|
Western Pneumatic Tube Holding, LLC
|
|
100%
|
Delaware
|
Wuxi Leggett & Platt-Huaguang Automobile Parts Co. Ltd.
|
|
70%
|
China
|
Wyn Products Pty Ltd
|
|
100%
|
Australia
|
1
|
Fo Shan City Nan Hai Chieng Yeng Plastic & Hardward Product Co., Ltd. is a wholly-owned subsidiary of Chieng Yeng Ent. Co., Ltd., in which Leggett’s indirectly wholly-owned subsidiary, L&P/Chieng Yeng Management Co. Limited, holds an 80% interest.
|
|
|
2
|
Leggett & Platt Servicios Productivos, S. de R.L. de C.V. filed dissolution papers that were pending approval at 12/31/2015.
|
1.
|
|
Form S-3ASR, Registration No. 333-203064
|
2.
|
|
Form S-8, Registration No. 333-60494
|
3.
|
|
Form S-8, Registration No. 333-82524
|
4.
|
|
Form S-8, Registration No. 333-113966
|
5.
|
|
Form S-8, Registration No. 333-115845
|
6.
|
|
Form S-8, Registration No. 333-124735
|
7.
|
|
Form S-8, Registration No. 333-150758
|
8.
|
|
Form S-8, Registration No. 333-157535
|
9.
|
|
Form S-8, Registration No. 333-157536
|
10.
|
|
Form S-8, Registration No. 333-166960
|
11.
|
|
Form S-8, Registration No. 333-181432
|
12.
|
|
Form S-8, Registration No. 333-194364
|
13.
|
|
Form S-8, Registration No. 333-202727
|
14.
|
|
Form S-8, Registration No. 333-203992
|
15.
|
|
Form S-8, Registration No. 333-203995
|
|
|
|
/s/ R
OBERT
E. B
RUNNER
|
|
/s/ M
ATTHEW
C. F
LANIGAN
|
Robert E. Brunner
|
|
Matthew C. Flanigan
|
|
|
|
/s/ R
OBERT
G. C
ULP
, III
|
|
/s/ K
ARL
G. G
LASSMAN
|
Robert G. Culp, III
|
|
Karl G. Glassman
|
|
|
|
/s/ R. T
ED
E
NLOE
, III
|
|
/s/ J
OSEPH
W. M
C
C
LANATHAN
|
R. Ted Enloe, III
|
|
Joseph W. McClanathan
|
|
|
|
/s/ M
ANUEL
A. F
ERNANDEZ
|
|
/s/ J
UDY
C. O
DOM
|
Manuel A. Fernandez
|
|
Judy C. Odom
|
|
|
|
/s/ R
ICHARD
T. F
ISHER
|
|
/s/ P
HOEBE
A. W
OOD
|
Richard T. Fisher
|
|
Phoebe A. Wood
|
1.
|
I have reviewed this report on Form 10-K of Leggett & Platt, Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
February 25, 2016
|
/s/ KARL G. GLASSMAN
|
|
|
Karl G. Glassman
|
|
|
President and Chief Executive Officer
|
|
|
Leggett & Platt, Incorporated
|
1.
|
I have reviewed this report on Form 10-K of Leggett & Platt, Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
February 25, 2016
|
/s/
M
ATTHEW
C
.
F
LANIGAN
|
|
|
Matthew C. Flanigan
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Leggett & Platt, Incorporated
|
/s/ KARL G. GLASSMAN
|
Karl G. Glassman
|
President and Chief Executive Officer
|
/s/
M
ATTHEW
C
.
F
LANIGAN
|
Matthew C. Flanigan
|
Executive Vice President and Chief Financial Officer
|