☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
Missouri | 44-0324630 | ||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
||||||||||
No. 1 Leggett Road | |||||||||||
Carthage, | Missouri | 64836 | |||||||||
(Address of principal executive offices) | (Zip code) |
Title of Each Class | Trading Symbol |
Name of each exchange on
which registered
|
||||||
Common Stock, $.01 par value | LEG | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page
Number
|
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PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Supp. Item. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
BEDDING GROUP | ||
Steel Rod | ||
Drawn Wire | ||
U.S. Spring | ||
Specialty Foam | ||
Adjustable Bed | ||
International Spring | ||
Machinery |
• | Steel rod | ||||||||||
• | Drawn wire | ||||||||||
• | Specialty foam chemicals and additives | ||||||||||
• | Innersprings (sets of steel coils, bound together, that form the core of a mattress) | ||||||||||
• | Proprietary specialty foam for use primarily in bedding and furniture | ||||||||||
• | Private label finished mattresses, often sold compressed and boxed | ||||||||||
• | Ready-to-assemble mattress foundations | ||||||||||
• | Wire forms for mattress foundations | ||||||||||
• | Adjustable beds | ||||||||||
• | Machines that we use to shape wire into various types of innersprings | ||||||||||
• | Industrial sewing and quilting machines | ||||||||||
• | Mattress-packaging and glue-drying equipment |
• | We used about 70% of our wire output to manufacture our own products in 2020, with the majority going to our U.S. innerspring operations | ||||||||||
• | Various industrial users of steel rod and wire | ||||||||||
• | Manufacturers of finished bedding (mattresses and foundations) | ||||||||||
• | Bedding brands and mattress retailers | ||||||||||
• | E-commerce retailers | ||||||||||
• | Big box retailers, department stores, and home improvement centers |
AUTOMOTIVE GROUP | ||
Automotive | ||
AEROSPACE PRODUCTS GROUP | ||
Aerospace Products | ||
HYDRAULIC CYLINDERS GROUP | ||
Hydraulic Cylinders |
• | Mechanical and pneumatic lumbar support and massage systems for automotive seating | ||||||||||
• | Seat suspension systems | ||||||||||
• | Motors and actuators, used in a wide variety of vehicle power features | ||||||||||
• | Cables |
• | Titanium, nickel and stainless-steel tubing, formed tube, tube assemblies, and flexible joint components, primarily used in fluid conveyance systems |
• | Engineered hydraulic cylinders |
• | Automobile OEMs and Tier 1 suppliers | ||||||||||
• | Aerospace OEMs and suppliers | ||||||||||
• | Mobile equipment OEMs, primarily serving material handling and construction markets |
HOME FURNITURE GROUP | ||
Home Furniture | ||
WORK FURNITURE GROUP | ||
Work Furniture | ||
FLOORING & TEXTILE PRODUCTS GROUP | ||
Flooring Products | ||
Fabric Converting | ||
Geo Components |
• | Steel mechanisms and motion hardware (enabling furniture to recline, tilt, swivel, rock, and elevate) for reclining chairs, sofas, sleeper sofas, and lift chairs | ||||||||||
• | Springs and seat suspensions for chairs, sofas, and loveseats |
• | Components and private label finished goods for collaborative soft seating | ||||||||||
• | Bases, columns, back rests, casters, and frames for office chairs, and control devices that allow chairs to tilt, swivel, and elevate |
• | Carpet cushion and hard surface flooring underlayment (made from bonded scrap foam, fiber, rubber, and prime foam) | ||||||||||
• | Structural fabrics for mattresses, residential furniture, and industrial uses | ||||||||||
• | Geo components (synthetic fabrics and various other products used in ground stabilization, drainage protection, erosion, and weed control) |
• | Manufacturers of upholstered furniture | ||||||||||
• | Office furniture manufacturers | ||||||||||
• | Flooring retailers and distributors, including big box retailers and home improvement centers | ||||||||||
• | Contractors, landscapers, road construction companies, retailers, and government agencies using or selling geo components | ||||||||||
• | Mattress and furniture producers and manufacturers of packaging, filtration, and draperies |
Bedding Products Segment 1
|
Specialized Products Segment 2
|
Furniture, Flooring & Textile Products Segment 3
|
||||||||||||
BEDDING GROUP | AUTOMOTIVE GROUP | HOME FURNITURE GROUP | ||||||||||||
Steel Rod | Automotive | Home Furniture | ||||||||||||
Drawn Wire | ||||||||||||||
U.S. Spring | AEROSPACE PRODUCTS GROUP | WORK FURNITURE GROUP | ||||||||||||
Specialty Foam | Aerospace Products | Work Furniture | ||||||||||||
Adjustable Bed | ||||||||||||||
International Spring | HYDRAULIC CYLINDERS | FLOORING & TEXTILE | ||||||||||||
Machinery | GROUP | PRODUCTS GROUP | ||||||||||||
Hydraulic Cylinders | Flooring Products | |||||||||||||
Fabric Converting | ||||||||||||||
Geo Components |
• | Innersprings for mattresses | ||||
• | Lumbar and seat suspension systems for automotive seating and actuators for automotive applications | ||||
• | Seamless and welded tubing and fabricated assemblies for aerospace applications | ||||
• | Select lines of private label finished furniture | ||||
• | Machinery and equipment designed to manufacture innersprings for mattresses |
• | Lumbar and seat suspension systems for automotive seating | ||||
• | Cables, motors, and actuators for automotive applications | ||||
• | Recliner mechanisms and bases for upholstered furniture | ||||
• | Work furniture components, including chair bases and casters | ||||
• | Innersprings for mattresses |
• | Lumbar supports for automotive seats | ||||
• | Fabricated wire for the furniture and automotive industries | ||||
• | Work furniture chair controls and bases |
• | Lumbar and seat suspension systems for automotive seating | ||||
• | Adjustable beds | ||||
• | Innersprings and fabricated wire for the bedding industry | ||||
• | Select lines of private label finished furniture |
Bedding Products | Specialized Products | Furniture, Flooring & Textile Products | |||||||||
North America | |||||||||||
Canada | n | n | |||||||||
Mexico | n | n | n | ||||||||
United States | n | n | n | ||||||||
Europe | |||||||||||
Austria | n | ||||||||||
Belgium | n | ||||||||||
Croatia | n | ||||||||||
Denmark | n | ||||||||||
France | n | ||||||||||
Hungary | n | ||||||||||
Poland | n | ||||||||||
Switzerland | n | ||||||||||
United Kingdom | n | n | |||||||||
South America | |||||||||||
Brazil | n | ||||||||||
Asia | |||||||||||
China | n | n | n | ||||||||
India | n | ||||||||||
South Korea | n | ||||||||||
Africa | |||||||||||
South Africa | n |
Product Families | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Bedding Group 1
|
48 | % | 48 | % | 42 | % | ||||||||||||||||||||
Flooring & Textile Products Group | 19 | 16 | 17 | |||||||||||||||||||||||
Automotive Group | 17 | 17 | 19 | |||||||||||||||||||||||
Home Furniture Group | 7 | 8 | 9 | |||||||||||||||||||||||
Work Furniture Group | 5 | 6 | 7 | |||||||||||||||||||||||
Aerospace Products Group | 2 | 3 | 4 | |||||||||||||||||||||||
Hydraulic Cylinders Group
|
2 | 2 | 2 | |||||||||||||||||||||||
• | Various types of steel, including scrap, rod, wire, sheet, and stainless | ||||
• | Chemicals used in foam production | ||||
• | Foam scrap | ||||
• | Woven and nonwoven fabrics | ||||
• | Titanium and nickel-based alloys and other high strength metals | ||||
• | Electronic systems |
• |
ComfortCore®, Mira-Coil®, VertiCoil®, Quantum®, Nanocoil®, Softech®,
Lura-Flex®, Superlastic® and Active Support Technology® (mattress innersprings)
|
||||
• |
Energex® and Coolflow® (specialty foam products)
|
||||
• |
Semi-Flex® (box spring components and foundations)
|
||||
• |
Spuhl®and Fides® (mattress innerspring manufacturing machines)
|
||||
• |
Wall Hugger® (recliner chair mechanisms)
|
||||
• |
No-Sag® (wire forms used in seating)
|
||||
• |
LPSense® (capacitive sensing)
|
||||
• |
Hanes® (fabric materials)
|
||||
• |
Schukra® (automotive seating products)
|
||||
• |
Gribetz®and Porter® (quilting and sewing machines)
|
• | Bedding components | ||||
• | Automotive seat support and lumbar systems | ||||
• | Specialty bedding foams and private label finished mattresses | ||||
• | Components for home furniture and work furniture | ||||
• | Flooring underlayment | ||||
• | Adjustable beds | ||||
• | Bedding industry machinery |
Company-
Wide
|
Subtotals by Segment
|
|||||||||||||||||||||||||
Manufacturing Locations
|
Bedding
Products
|
Specialized
Products
|
Furniture,
Flooring &
Textile
Products
|
|||||||||||||||||||||||
United States | 84 | 36 | 6 | 42 | ||||||||||||||||||||||
China | 14 | 2 | 10 | 2 | ||||||||||||||||||||||
Europe | 14 | 5 | 8 | 1 | ||||||||||||||||||||||
Canada | 8 | — | 3 | 5 | ||||||||||||||||||||||
Mexico | 7 | 4 | 2 | 1 | ||||||||||||||||||||||
Other | 5 | 2 | 3 | — | ||||||||||||||||||||||
Total | 132 | 49 | 32 | 51 |
Company-
Wide
|
Subtotals by Segment
|
|||||||||||||||||||||||||
Manufacturing Locations
|
Bedding
Products
|
Specialized
Products
|
Furniture,
Flooring &
Textile
Products
|
|||||||||||||||||||||||
Owned | 70 | 34 | 13 | 23 | ||||||||||||||||||||||
Leased | 62 | 15 | 19 | 28 | ||||||||||||||||||||||
Total | 132 | 49 | 32 | 51 |
Name | Age | Position | ||||||||||||
Karl G. Glassman | 62 | Chairman and Chief Executive Officer | ||||||||||||
J. Mitchell Dolloff | 55 |
President and Chief Operating Officer, President—Bedding Products
|
||||||||||||
Jeffrey L. Tate | 51 | Executive Vice President and Chief Financial Officer | ||||||||||||
Steven K. Henderson | 60 |
Executive Vice President, President—Specialized Products and Furniture, Flooring & Textile Products
|
||||||||||||
Scott S. Douglas | 61 | Senior Vice President, General Counsel & Secretary | ||||||||||||
Susan R. McCoy | 56 | Senior Vice President, Investor Relations | ||||||||||||
Tammy M. Trent | 54 | Senior Vice President, Chief Accounting Officer |
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 2020 | 5,882 | $ | 44.94 | — | 10,000,000 | |||||||||||||||||||||
November 2020 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
December 2020 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
Total | 5,882 | $ | 44.94 | — |
(Unaudited) |
2020 1
|
2019 2
|
2018 3
|
2017 4
|
2016 5
|
||||||||||||||||||||||||
(Dollar amounts in millions, except per share data) | |||||||||||||||||||||||||||||
Summary of Operations | |||||||||||||||||||||||||||||
Net Trade Sales from Continuing Operations | $ | 4,280 | $ | 4,753 | $ | 4,270 | $ | 3,944 | $ | 3,750 | |||||||||||||||||||
Earnings from Continuing Operations | 248 | 334 | 306 | 294 | 367 | ||||||||||||||||||||||||
Earnings (loss) from Discontinued Operations, net of tax | — | — | — | (1) | 19 | ||||||||||||||||||||||||
Net Earnings attributable to Leggett & Platt, Inc. common shareholders | 248 | 334 | 306 | 293 | 386 | ||||||||||||||||||||||||
Earnings per share from Continuing Operations | |||||||||||||||||||||||||||||
Basic | 1.82 | 2.48 | 2.28 | 2.16 | 2.66 | ||||||||||||||||||||||||
Diluted | 1.82 | 2.47 | 2.26 | 2.14 | 2.62 | ||||||||||||||||||||||||
Earnings (Loss) per share from Discontinued Operations | |||||||||||||||||||||||||||||
Basic | — | — | — | (.01) | .14 | ||||||||||||||||||||||||
Diluted | — | — | — | (.01) | .14 | ||||||||||||||||||||||||
Net Earnings per share | |||||||||||||||||||||||||||||
Basic | 1.82 | 2.48 | 2.28 | 2.15 | 2.80 | ||||||||||||||||||||||||
Diluted | 1.82 | 2.47 | 2.26 | 2.13 | 2.76 | ||||||||||||||||||||||||
Cash Dividends declared per share | 1.60 | 1.58 | 1.50 | 1.42 | 1.34 | ||||||||||||||||||||||||
Summary of Financial Position | |||||||||||||||||||||||||||||
Total Assets | $ | 4,754 | $ | 4,816 | $ | 3,382 | $ | 3,551 | $ | 2,984 | |||||||||||||||||||
Long-term Debt, including finance leases | $ | 1,849 | $ | 2,067 | $ | 1,168 | $ | 1,098 | $ | 956 |
(Dollar amounts in millions) | Cash | Non-Cash | Total | |||||||||||||||||
Goodwill impairment | $ | — | $ | 25 | $ | 25 | ||||||||||||||
Note impairment | — | 8 | 8 | |||||||||||||||||
Stock write-off from prior year divestiture | — | 4 | 4 | |||||||||||||||||
Restructuring-related charges | 8 | 1 | 9 | |||||||||||||||||
Total charges | $ | 8 | $ | 38 | $ | 46 |
Current Targets | ||||||||
Revenue Growth | 6-9% | |||||||
Margin Increase | 1% | |||||||
Dividend Yield | 3% | |||||||
Stock Buyback | 1% | |||||||
Total Shareholder Return | 11-14% |
(Dollar amounts in millions, except per share data) | Amount |
% 1
|
|||||||||
Net trade sales: | |||||||||||
Year ended December 31, 2019 | $ | 4,753 | |||||||||
Divestitures | (14) | — | % | ||||||||
2019 sales excluding divestitures | 4,739 | ||||||||||
Approximate volume losses | (483) | (10) | % | ||||||||
Approximate raw material-related inflation and currency impact | (32) | (1) | |||||||||
Organic sales | (515) | (11) | |||||||||
Acquisition sales growth | 56 | 1 | |||||||||
Year ended December 31, 2020 | $ | 4,280 | (10) | % | |||||||
Earnings: | |||||||||||
(Dollar amounts, net of tax) | |||||||||||
Year ended December 31, 2019 | $ | 334 | |||||||||
Lower restructuring-related charges ($13 in 2019; $7 in 2020) | 6 | ||||||||||
Goodwill impairment | (25) | ||||||||||
Note impairment | 6 | ||||||||||
Stock write-off from a prior year divestiture | (3) | ||||||||||
Other items, including COVID-related economic declines and a change in LIFO impact, partially offset by fixed cost reductions, lower interest expense and lower taxes
|
(70) | ||||||||||
Year ended December 31, 2020 | $ | 248 | |||||||||
2019 Earnings Per Diluted Share | $ | 2.47 | |||||||||
2020 Earnings Per Diluted Share | $ | 1.82 |
Year Ended December 31 | |||||||||||
2020 | 2019 | ||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | |||||||
Increases (decreases) in rate resulting from: | |||||||||||
State taxes, net of federal benefit | .8 | 1.4 | |||||||||
Tax effect of foreign operations | (2.2) | (1.6) | |||||||||
Global intangible low-taxed income | (.4) | 2.2 | |||||||||
Current and deferred foreign withholding taxes | 2.8 | 1.2 | |||||||||
Stock-based compensation | (.6) | (1.1) | |||||||||
Change in valuation allowance | .8 | .4 | |||||||||
Change in uncertain tax positions, net | .6 | (.3) | |||||||||
Goodwill impairment | 1.7 | — | |||||||||
Other permanent differences, net | (1.4) | (.3) | |||||||||
Other, net | (.3) | (.5) | |||||||||
Effective tax rate | 22.8 | % | 22.4 | % |
(Dollar amounts in millions) | 2020 | 2019 | Change in Sales |
% Change
Organic |
|||||||||||||||||||||||||||||||
$ | % |
Sales 1
|
|||||||||||||||||||||||||||||||||
Trade Sales | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 2,039.3 | $ | 2,254.3 | $ | (215.0) | (9.5) | % | (10.0) | % | |||||||||||||||||||||||||
Specialized Products | 891.2 | 1,066.8 | (175.6) | (16.5) | (16.5) | ||||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,349.7 | 1,431.4 | (81.7) | (5.7) | (8.1) | ||||||||||||||||||||||||||||||
Total trade sales | $ | 4,280.2 | $ | 4,752.5 | $ | (472.3) | (9.9) | % | (10.9) | % | |||||||||||||||||||||||||
2020 | 2019 | Change in EBIT | EBIT Margins | ||||||||||||||||||||||||||||||||
$ | % | 2020 | 2019 | ||||||||||||||||||||||||||||||||
EBIT | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 185.8 | $ | 235.8 | $ | (50.0) | (21.2) | % | 9.1 | % | 10.5 | % | |||||||||||||||||||||||
Specialized Products | 91.9 | 170.5 | (78.6) | (46.1) | 10.3 | 16.0 | |||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 126.2 | 107.4 | 18.8 | 17.5 | 9.4 | 7.5 | |||||||||||||||||||||||||||||
Intersegment eliminations & other | (3.4) | (.3) | (3.1) | ||||||||||||||||||||||||||||||||
Total EBIT | $ | 400.5 | $ | 513.4 | $ | (112.9) | (22.0) | % | 9.4 | % | 10.8 | % | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 106.7 | $ | 107.3 | |||||||||||||||||||||||||||||||
Specialized Products | 44.3 | 41.8 | |||||||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 25.5 | 25.7 | |||||||||||||||||||||||||||||||||
Unallocated 2
|
12.9 | 17.1 | |||||||||||||||||||||||||||||||||
Total Depreciation and Amortization | $ | 189.4 | $ | 191.9 |
(Dollar amounts in millions, except per share data) | Amount |
% 1
|
|||||||||
Net trade sales: | |||||||||||
Year ended December 31, 2018 | $ | 4,270 | |||||||||
Approximate volume losses | (112) | (3) | % | ||||||||
Approximate raw material-related inflation and currency impact | (22) | — | |||||||||
Organic sales | (134) | (3) | |||||||||
Acquisition sales growth | 617 | 14 | |||||||||
Year ended December 31, 2019 | $ | 4,753 | 11 | % | |||||||
Earnings: | |||||||||||
(Dollar amounts, net of tax) | |||||||||||
Year ended December 31, 2018 | $ | 306 | |||||||||
Lower restructuring-related charges ($14 in 2018; $13 in 2019) | 1 | ||||||||||
Lower ECS transaction costs ($6 in 2018; $1 in 2019) | 5 | ||||||||||
Non-recurrence of note impairment | 12 | ||||||||||
Other items, including contribution from ECS, lower raw material costs (including LIFO benefit) and improved earnings primarily in Furniture, Flooring & Textile Products partially offset by higher interest expense and higher taxes | 10 | ||||||||||
Year ended December 31, 2019 | $ | 334 | |||||||||
2018 Earnings Per Diluted Share | $ | 2.26 | |||||||||
2019 Earnings Per Diluted Share | $ | 2.47 |
Year Ended December 31 | |||||||||||
2019 | 2018 | ||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | |||||||
Increases (decreases) in rate resulting from: | |||||||||||
State taxes, net of federal benefit | 1.4 | .9 | |||||||||
Tax effect of foreign operations | (1.6) | (.7) | |||||||||
Global intangible low-taxed income | 2.2 | .7 | |||||||||
Current and deferred foreign withholding taxes | 1.2 | 3.8 | |||||||||
Stock-based compensation | (1.1) | (.8) | |||||||||
Change in valuation allowance | .4 | (2.0) | |||||||||
Change in uncertain tax positions, net | (.3) | (.3) | |||||||||
Other permanent differences, net | (.3) | (1.4) | |||||||||
Other, net | (.5) | (.8) | |||||||||
Effective tax rate | 22.4 | % | 20.4 | % |
(Dollar amounts in millions) | 2019 | 2018 | Change in Sales |
% Change
Organic |
|||||||||||||||||||||||||||||||
$ | % |
Sales 1
|
|||||||||||||||||||||||||||||||||
Trade Sales | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 2,254.3 | $ | 1,795.3 | $ | 459.0 | 25.6 | % | (6.0) | % | |||||||||||||||||||||||||
Specialized Products | 1,066.8 | 1,056.3 | 10.5 | 1.0 | — | ||||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,431.4 | 1,417.9 | 13.5 | 1.0 | (2.0) | ||||||||||||||||||||||||||||||
Total trade sales | $ | 4,752.5 | $ | 4,269.5 | $ | 483.0 | 11.3 | % | (3.0) | % | |||||||||||||||||||||||||
2019 | 2018 | Change in EBIT | EBIT Margins | ||||||||||||||||||||||||||||||||
$ | % | 2019 | 2018 | ||||||||||||||||||||||||||||||||
EBIT | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 235.8 | $ | 149.8 | $ | 86.0 | 57.4 | % | 10.3 | % | 8.1 | % | |||||||||||||||||||||||
Specialized Products | 170.5 | 189.0 | (18.5) | (9.8) | 15.9 | 17.8 | |||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 107.4 | 98.6 | 8.8 | 8.9 | 7.4 | 6.9 | |||||||||||||||||||||||||||||
Intersegment eliminations & other | (.3) | (.5) | .2 | ||||||||||||||||||||||||||||||||
Total EBIT | $ | 513.4 | $ | 436.9 | $ | 76.5 | 17.5 | % | 10.8 | % | 10.2 | % | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||||||||||||
Bedding Products | $ | 107.3 | $ | 47.3 | |||||||||||||||||||||||||||||||
Specialized Products | 41.8 | 39.0 | |||||||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 25.7 | 27.0 | |||||||||||||||||||||||||||||||||
Unallocated 2
|
17.1 | 22.8 | |||||||||||||||||||||||||||||||||
Total Depreciation and Amortization | $ | 191.9 | $ | 136.1 |
(Dollar amounts in millions) | 2020 | 2019 | |||||||||
Current assets | $ | 1,612.1 | $ | 1,538.1 | |||||||
Current liabilities | 1,006.0 | 928.1 | |||||||||
Working capital | 606.1 | 610.0 | |||||||||
Cash and cash equivalents | 348.9 | 247.6 | |||||||||
Current debt maturities and current portion of operating lease liabilities | 93.3 | 90.4 | |||||||||
Adjusted working capital | $ | 350.5 | $ | 452.8 | |||||||
Annualized sales 1
|
$ | 4,728.0 | $ | 4,579.6 | |||||||
Working capital as a percent of annualized sales | 12.8 | % | 13.3 | % | |||||||
Adjusted working capital as a percent of annualized sales | 7.4 | % | 9.9 | % |
Amount (in millions) | Days | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Trade Receivables | $ | 535 | $ | 564 | $ | 545 |
DSO 1
|
47 | 43 | 46 | ||||||||||||||||||||||||||||
Inventories | 646 | 637 | 634 |
DIO 2
|
69 | 63 | 65 | |||||||||||||||||||||||||||||||
Accounts Payable | 552 | 463 | 465 |
DPO 3
|
55 | 46 | 48 |
(Dollar amounts in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Total debt excluding revolving credit/commercial paper | $ | 1,900.2 | $ | 2,056.1 | $ | 1,099.0 | |||||||||||
Less: Current maturities of long-term debt | 50.9 | 51.1 | 1.2 | ||||||||||||||
Scheduled maturities of long-term debt | 1,849.3 | 2,005.0 | 1,097.8 | ||||||||||||||
Average interest rates 1
|
3.7 | % | 3.6 | % | 3.6 | % | |||||||||||
Average maturities in years 1
|
5.3 | 6.0 | 6.7 | ||||||||||||||
Revolving credit/commercial paper 2
|
— | 61.5 | 70.0 | ||||||||||||||
Weighted average interest rate on year-end balance
|
— | % | 2.0 | % | 2.6 | % | |||||||||||
Average interest rate during the year
|
2.0 | % | 2.6 | % | 2.4 | % | |||||||||||
Total long-term debt | 1,849.3 | 2,066.5 | 1,167.8 | ||||||||||||||
Deferred income taxes and other liabilities | 508.4 | 509.3 | 240.9 | ||||||||||||||
Equity | 1,390.3 | 1,312.5 | 1,157.6 | ||||||||||||||
Total capitalization | $ | 3,748.0 | $ | 3,888.3 | $ | 2,566.3 | |||||||||||
Unused committed credit: 2
|
|||||||||||||||||
Long-term | $ | 1,200.0 | $ | 1,138.5 | $ | 730.0 | |||||||||||
Short-term | — | — | — | ||||||||||||||
Total unused committed credit | $ | 1,200.0 | $ | 1,138.5 | $ | 730.0 | |||||||||||
Cash and cash equivalents | $ | 348.9 | $ | 247.6 | $ | 268.1 | |||||||||||
(Dollar amounts in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Total program authorized | $ | 1,200.0 | $ | 1,200.0 | $ | 800.0 | |||||||||||
Commercial paper outstanding (classified as long-term debt) | — | 61.5 | 70.0 | ||||||||||||||
Letters of credit issued under the credit facility | — | — | — | ||||||||||||||
Total program usage | — | 61.5 | 70.0 | ||||||||||||||
Total program available | $ | 1,200.0 | $ | 1,138.5 | $ | 730.0 |
Payments Due by Period 5
|
||||||||||||||||||||||||||||||||
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
|
$ | 1,896 | $ | 50 | $ | 399 | $ | 453 | $ | 994 | ||||||||||||||||||||||
Finance leases | 4 | 1 | 2 | 1 | — | |||||||||||||||||||||||||||
Operating leases | 180 | 47 | 72 | 38 | 23 | |||||||||||||||||||||||||||
Purchase obligations ²
|
450 | 445 | 4 | 1 | — | |||||||||||||||||||||||||||
Interest payments ³
|
390 | 70 | 123 | 90 | 107 | |||||||||||||||||||||||||||
Deferred income taxes | 194 | — | — | — | 194 | |||||||||||||||||||||||||||
Other obligations (including pensions and net reserves for tax contingencies) 4
|
196 | 4 | 31 | 32 | 129 | |||||||||||||||||||||||||||
Total contractual cash obligations | $ | 3,310 | $ | 617 | $ | 631 | $ | 615 | $ | 1,447 |
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.
|
Goodwill is evaluated annually for impairment as of June 30 using a quantitative analysis at the reporting unit level, which is one level below our operating segments.
Judgment is required in the quantitative analysis. We estimate fair value using a combination of: (a) A discounted cash flow model that contains uncertainties related to the forecast of future results, as many outside economic and competitive factors can influence future performance. Revenue growth, cost of sales, and appropriate discount rates are the most critical estimates in determining enterprise values using the cash flow model. (b) The market approach, using price to earnings ratios for comparable publicly traded companies that operate in the same or similar industry and with characteristics similar to the reporting unit. Judgment is required to determine the appropriate price to earnings ratio. |
The June 2020 review resulted in a non-cash goodwill impairment charge of $25 million with respect to our Hydraulic Cylinders reporting unit, which is part of the Specialized Products segment. This impairment charge reflects the complete write-off of the goodwill associated with the Hydraulic Cylinders reporting unit. Three other reporting units had fair values in excess of carrying value of less than 100% as discussed in Note C on page 90 of the Notes to Consolidated Financial Statements. At December 31, 2020, we had $1.4 billion of goodwill.
We had no goodwill impairments in 2019 or 2018.
Information regarding material assumptions used to determine if a goodwill impairment exists can be found in Note A on page 82 and Note C on page 90 of the Notes to Consolidated Financial Statements.
We conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations. If we are not able to achieve projected performance levels, future impairments could be possible.
|
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 selected products.
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 did not exceed $8 million per year in any of the last three years.
At December 31, 2020, net property, plant and equipment was $785 million, net intangible assets, other than goodwill, was $702 million, and operating right-of-use assets was $162 million.
|
||||||||||||
Inventory Reserves | ||||||||||||||
We reduce the carrying value of inventories to reflect an estimate of net realizable value for slow-moving (i.e., not selling very quickly) and obsolete inventory.
Generally, a reserve is required when we have more than a 12-month supply of the product.
The calculation also uses an estimate of the ultimate recoverability of items identified as slow-moving, based upon historical experience.
If we have had no sales of a given product for 12 months, those items are generally deemed to be obsolete with no value and are written down completely.
Finally, costs for approximately 30%-40% of our inventories (consisting primarily of our domestic steel-related inventories) are determined using the last-in, first-out (LIFO) method, which produces a cost that is lower than net realizable value (see Note A on page 82 of the Notes to Consolidated Financial Statements.)
|
Our inventory reserve contains uncertainties because the calculation requires management to make assumptions about the value of products that are obsolete or slow-moving.
Changes in customer behavior and requirements can cause inventory to become obsolete or slow-moving. Restructuring activity and decisions to narrow product offerings also impact the estimated net realizable value of inventories.
|
At December 31, 2020, the reserve for obsolete and slow-moving inventory was $31 million (approximately 5% of inventories). This is consistent with the reserves at December 31, 2019 and 2018, representing approximately 4% of inventories.
Additions to inventory reserves in 2020 were $12 million, which was slightly higher than our $10 million three-year average. Our reserve balances as a percentage of period-end inventory have remained consistent, and we do not expect significant changes to our historical obsolescence levels. |
Description |
Judgments and
Uncertainties |
Effect if Actual Results
Differ From Assumptions |
||||||||||||
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. We also monitor general macroeconomic conditions and other items that could impact the expected collectibility of all customers or pools of customers with similar risk.
As discussed in Note H on page 99 of the Notes to Consolidated Financial Statements, we adopted ASU 2016-13 "Financial Instruments—Credit Losses" (Topic 326) in 2020, which amended the impairment model to require a forward-looking approach based on expected losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments, including trade receivables.
|
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. In cases where a customer’s payment performance or financial condition begins to deteriorate, we tighten our credit limits and terms and make appropriate reserves when deemed necessary. Certain of our customers have from time to time experienced bankruptcy, insolvency, and/or an inability to pay their debts to us as they come due. If our customers suffer significant financial difficulty, they may be unable to pay their debts to us timely or at all, they may reject their contractual obligations to us under bankruptcy laws or otherwise, or we may have to negotiate significant discounts and/or extend financing terms with these customers. |
A significant change in the financial status of a large customer could impact our estimates. However, we believe we have established adequate reserves on our customer accounts.
Our bad debt expense has fluctuated over the last three years: $17 million in 2020, $3 million in 2019, and $17 million in 2018. The expense for 2020 and 2018 was impacted by one account that is now fully reserved at $25 million, including $23 million of a note receivable and $2 million for a trade account receivable ($9 million in 2020 and $16 million in 2018), as discussed in Note H on page 99 of the Notes to Consolidated Financial Statements.
2020's expense was also impacted by pandemic-related economic declines. Although we have not experienced significant issues with customer payment performance during this time, the effects of the pandemic have adversely impacted the operations of many of our customers, which have and could further impact their ability to pay their debts to us. As a result, we increased the reserves on trade accounts receivable to reflect this increased risk.
Excluding the note receivable discussed above, the average annual amount of bad debt expense associated with trade accounts receivable was less than $5 million (significantly less than 1% of annual net trade sales) over the last three years. At December 31, 2020, our allowances for doubtful trade accounts receivable were $19 million (less than 4% of our trade receivables of $555 million).
|
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. 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, 2020, we had accrued $32 million to cover future self-insurance liabilities. | ||||||||||||
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's judgment. Assumptions used to measure our pension liabilities and pension expense annually include:
- the discount rate used to calculate the present value of future benefits - an estimate of expected return on pension assets based upon the mix of investments held (bonds and equities) - certain employee-related factors, such as turnover, retirement age, and mortality. Mortality assumptions represent our best estimate of the duration of future benefit payments at the measurement date. These estimates are based on each plan's demographics and other relevant facts and circumstances - the rate of salary increases where benefits are based on earnings. |
Each 25 basis point decrease in the discount rate increases pension expense by $.6 million and increases the plans’ benefit obligations by $9.8 million.
Each 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. |
||||||||||||
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 and reasonably estimable, we accrue a liability for the estimate of the 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 probability that the expenses will actually occur and our reasonable 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 on page 130 of the Notes to Consolidated Financial Statements.
During the three-year period ended December 31, 2020, we recorded expense of $3 million.
|
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, 2020 and 2019, we had $14 million and $15 million, respectively, of net deferred tax assets on our balance sheet, primarily 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.
|
Changes in U.S. and foreign tax laws could impact assumptions related to the taxation and repatriation of certain foreign earnings.
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.
|
Description |
Judgments and
Uncertainties |
Effect if Actual Results
Differ From Assumptions |
||||||||||||
Acquisitions | ||||||||||||||
When acquisitions occur, we value the assets acquired, liabilities assumed, and any noncontrolling interest in acquired companies at estimated acquisition date fair values. Goodwill is measured as the excess amount of consideration transferred, compared to fair value of the assets acquired and the liabilities assumed. Our estimates of fair value are based upon assumptions believed to be reasonable but which are inherently uncertain. |
The purchase price allocation for business acquisitions contains uncertainties because it requires management's judgment. Determining fair value of identifiable assets, particularly intangibles, requires management to make estimates, which are based on all available information. Critical estimates include the timing and amount of future revenues and expenses associated with an asset, as well as an appropriate discount rate. Determining fair values for these items requires significant judgment and includes a variety of methods and models that utilize significant Level 3 inputs, as discussed in Note A on page 82 of the Notes to Consolidated Financial Statements.
|
In 2020, no businesses were acquired, as discussed in Note R on page 125 of the Notes to Consolidated Financial Statements.
The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income in periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. We regularly review for impairments. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, estimates, or actual results.
|
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Litigation contingency accrual - Beginning of period | $ | .7 | $ | 1.9 | $ | .4 | |||||||||||
Adjustment to accruals - expense | .1 | .6 | 1.8 | ||||||||||||||
Currency | (.1) | — | — | ||||||||||||||
Cash payments | (.2) | (1.8) | (.3) | ||||||||||||||
Litigation contingency accrual - End of period | $ | .5 | $ | .7 | $ | 1.9 |
Long-term debt as of December 31, | Scheduled Maturity Date | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Principal fixed rate debt | $ | — | $ | 300.0 | $ | — | $ | 300.0 | $ | — | $ | 1,000.0 | $ | 1,600.0 | $ | 1,600.0 | |||||||||||||||||||||||||||||||
Average stated interest rate | — | 3.40 | % | — | 3.80 | % | — | 3.95 | % | 3.82 | % | 3.82 | % | ||||||||||||||||||||||||||||||||||
Principal variable rate debt 1
|
50.0 | 50.0 | 50.0 | 155.0 | — | 3.8 | 308.8 | 466.3 | |||||||||||||||||||||||||||||||||||||||
Unamortized discounts and deferred loan costs | (12.7) | (14.9) | |||||||||||||||||||||||||||||||||||||||||||||
Commercial Paper 2
|
— | 61.5 | |||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous debt, primarily finance leases | 4.1 | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||
Total debt | 1,900.2 | 2,117.6 | |||||||||||||||||||||||||||||||||||||||||||||
Less: current maturities | 50.9 | 51.1 | |||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 1,849.3 | $ | 2,066.5 |
Functional Currency (amounts in millions) | 2020 | 2019 | ||||||||||||
European Currencies | $ | 382.1 | $ | 348.6 | ||||||||||
Chinese Renminbi | 260.9 | 273.8 | ||||||||||||
Canadian Dollar | 210.5 | 254.4 | ||||||||||||
Mexican Peso | 38.6 | 36.3 | ||||||||||||
Other | 59.9 | 66.1 | ||||||||||||
Total | $ | 952.0 | $ | 979.2 |
Page No. | |||||
/s/ KARL G. GLASSMAN | /s/ JEFFREY L. TATE | |||||||
Karl G. Glassman
Chairman and Chief Executive Officer |
Jeffrey L. Tate
Executive Vice President and Chief Financial Officer |
|||||||
February 24, 2021 | February 24, 2021 |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Net trade sales | $ | 4,280.2 | $ | 4,752.5 | $ | 4,269.5 | |||||||||||
Cost of goods sold | 3,385.7 | 3,701.9 | 3,380.8 | ||||||||||||||
Gross profit | 894.5 | 1,050.6 | 888.7 | ||||||||||||||
Selling and administrative expenses | 424.4 | 469.7 | 425.1 | ||||||||||||||
Amortization of intangibles | 65.2 | 63.3 | 20.5 | ||||||||||||||
Impairments | 29.4 | 7.8 | 5.4 | ||||||||||||||
Other (income) expense, net | (25.0) | (3.6) | .8 | ||||||||||||||
Earnings before interest and income taxes | 400.5 | 513.4 | 436.9 | ||||||||||||||
Interest expense | 82.7 | 90.7 | 60.9 | ||||||||||||||
Interest income | 3.1 | 7.4 | 8.4 | ||||||||||||||
Earnings before income taxes | 320.9 | 430.1 | 384.4 | ||||||||||||||
Income taxes | 73.2 | 96.2 | 78.3 | ||||||||||||||
Net earnings | 247.7 | 333.9 | 306.1 | ||||||||||||||
(Earnings) attributable to noncontrolling interest, net of tax | (.1) | (.1) | (.2) | ||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 247.6 | $ | 333.8 | $ | 305.9 | |||||||||||
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||
Basic | $ | 1.82 | $ | 2.48 | $ | 2.28 | |||||||||||
Diluted | $ | 1.82 | $ | 2.47 | $ | 2.26 |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Net earnings | $ | 247.7 | $ | 333.9 | $ | 306.1 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments | 27.8 | 5.0 | (67.0) | ||||||||||||||
Cash flow hedges | 5.5 | 7.7 | (.3) | ||||||||||||||
Defined benefit pension plans | (9.0) | (11.9) | (.8) | ||||||||||||||
Other comprehensive income (loss) | 24.3 | .8 | (68.1) | ||||||||||||||
Comprehensive income | 272.0 | 334.7 | 238.0 | ||||||||||||||
Less: comprehensive (income) attributable to noncontrolling interest | — | (.1) | (.2) | ||||||||||||||
Comprehensive income attributable to Leggett & Platt, Inc. | $ | 272.0 | $ | 334.6 | $ | 237.8 |
December 31 | |||||||||||
(Amounts in millions, except per share data) | 2020 | 2019 | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 348.9 | $ | 247.6 | |||||||
Trade receivables, net | 535.2 | 564.4 | |||||||||
Other receivables, net | 28.4 | 27.5 | |||||||||
Total receivables, net | 563.6 | 591.9 | |||||||||
Total inventories, net | 645.5 | 636.7 | |||||||||
Prepaid expenses and other current assets | 54.1 | 61.9 | |||||||||
Total current assets | 1,612.1 | 1,538.1 | |||||||||
Property, Plant and Equipment—at cost | |||||||||||
Machinery and equipment | 1,396.2 | 1,388.8 | |||||||||
Buildings and other | 740.9 | 719.0 | |||||||||
Land | 43.6 | 43.5 | |||||||||
Total property, plant and equipment | 2,180.7 | 2,151.3 | |||||||||
Less accumulated depreciation | 1,395.9 | 1,320.5 | |||||||||
Net property, plant and equipment | 784.8 | 830.8 | |||||||||
Other Assets | |||||||||||
Goodwill | 1,388.8 | 1,406.3 | |||||||||
Other intangibles, net | 701.6 | 764.0 | |||||||||
Operating lease right-of-use assets | 161.6 | 158.8 | |||||||||
Sundry | 105.1 | 118.4 | |||||||||
Total other assets | 2,357.1 | 2,447.5 | |||||||||
TOTAL ASSETS | $ | 4,754.0 | $ | 4,816.4 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current maturities of long-term debt | $ | 50.9 | $ | 51.1 | |||||||
Current portion of operating lease liabilities | 42.4 | 39.3 | |||||||||
Accounts payable | 552.2 | 463.4 | |||||||||
Accrued expenses | 275.2 | 281.0 | |||||||||
Other current liabilities | 85.3 | 93.3 | |||||||||
Total current liabilities | 1,006.0 | 928.1 | |||||||||
Long-term Liabilities | |||||||||||
Long-term debt | 1,849.3 | 2,066.5 | |||||||||
Operating lease liabilities | 122.1 | 121.6 | |||||||||
Other long-term liabilities | 192.1 | 173.5 | |||||||||
Deferred income taxes | 194.2 | 214.2 | |||||||||
Total long-term liabilities | 2,357.7 | 2,575.8 | |||||||||
Commitments and Contingencies | |||||||||||
Equity | |||||||||||
Common 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 | 543.2 | 536.1 | |||||||||
Retained earnings | 2,762.4 | 2,734.5 | |||||||||
Accumulated other comprehensive (loss) | (52.4) | (76.8) | |||||||||
Less treasury stock—at cost (66.2 and 67.0 shares at December 31, 2020 and 2019, respectively)
|
(1,865.4) | (1,883.8) | |||||||||
Total Leggett & Platt, Inc. equity | 1,389.8 | 1,312.0 | |||||||||
Noncontrolling interest | .5 | .5 | |||||||||
Total equity | 1,390.3 | 1,312.5 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 4,754.0 | $ | 4,816.4 | |||||||
The accompanying notes are an integral part of these financial statements. |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net earnings | $ | 247.7 | $ | 333.9 | $ | 306.1 | |||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
Depreciation | 119.4 | 117.5 | 104.3 | ||||||||||||||
Amortization of intangibles and supply agreements | 70.0 | 74.4 | 31.8 | ||||||||||||||
Long-lived asset impairment | 4.0 | 7.8 | 5.4 | ||||||||||||||
Goodwill impairment | 25.4 | — | — | ||||||||||||||
Provision for losses on accounts and notes receivable | 17.1 | 2.8 | 16.7 | ||||||||||||||
Writedown of inventories | 10.9 | 9.0 | 10.3 | ||||||||||||||
Net gain from sales of assets and businesses | (2.5) | (5.0) | (2.1) | ||||||||||||||
Deferred income tax (benefit) expense | (22.5) | 7.6 | (3.2) | ||||||||||||||
Stock-based compensation | 29.2 | 33.0 | 35.5 | ||||||||||||||
Pension expense (income), net of contributions | 1.9 | 4.3 | (19.2) | ||||||||||||||
Other, net | 9.5 | 2.2 | .7 | ||||||||||||||
Increases/decreases in, excluding effects from acquisitions and divestitures: | |||||||||||||||||
Accounts and other receivables | 24.3 | 53.0 | (25.8) | ||||||||||||||
Inventories | (19.7) | 53.3 | (54.3) | ||||||||||||||
Other current assets | 4.8 | (2.8) | (1.9) | ||||||||||||||
Accounts payable | 83.0 | (39.4) | 36.2 | ||||||||||||||
Accrued expenses and other current liabilities | .1 | 16.4 | (.2) | ||||||||||||||
Net Cash Provided by Operating Activities | 602.6 | 668.0 | 440.3 | ||||||||||||||
Investing Activities | |||||||||||||||||
Additions to property, plant and equipment | (66.2) | (143.1) | (159.6) | ||||||||||||||
Purchases of companies, net of cash acquired | — | (1,265.1) | (109.2) | ||||||||||||||
Proceeds from sales of assets and businesses | 14.8 | 5.5 | 4.9 | ||||||||||||||
Other, net | 2.4 | (15.5) | (13.9) | ||||||||||||||
Net Cash Used for Investing Activities | (49.0) | (1,418.2) | (277.8) | ||||||||||||||
Financing Activities | |||||||||||||||||
Additions to long-term debt | — | 993.3 | — | ||||||||||||||
Payments on long-term debt | (157.5) | (37.6) | (155.4) | ||||||||||||||
Change in commercial paper and short-term debt | (70.3) | (8.7) | 69.6 | ||||||||||||||
Dividends paid | (211.5) | (204.6) | (193.7) | ||||||||||||||
Issuances of common stock | 1.5 | 9.3 | 4.8 | ||||||||||||||
Purchases of common stock | (10.6) | (16.4) | (112.4) | ||||||||||||||
Additional consideration paid on prior year acquisitions | (8.4) | (1.1) | (9.3) | ||||||||||||||
Other, net | (4.9) | (3.1) | (.5) | ||||||||||||||
Net Cash (Used for) Provided by Financing Activities | (461.7) | 731.1 | (396.9) | ||||||||||||||
Effect of Exchange Rate Changes on Cash | 9.4 | (1.4) | (23.6) | ||||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 101.3 | (20.5) | (258.0) | ||||||||||||||
Cash and Cash Equivalents—Beginning of Year | 247.6 | 268.1 | 526.1 | ||||||||||||||
Cash and Cash Equivalents—End of Year | $ | 348.9 | $ | 247.6 | $ | 268.1 | |||||||||||
Supplemental Information | |||||||||||||||||
Interest paid (net of amounts capitalized) | $ | 74.8 | $ | 77.3 | $ | 61.8 | |||||||||||
Income taxes paid | 108.6 | 84.2 | 92.8 | ||||||||||||||
Property, plant and equipment acquired through finance leases | 1.8 | 2.1 | 1.9 | ||||||||||||||
Capital expenditures in accounts payable | 7.1 | 6.8 | 6.7 | ||||||||||||||
Prepaid income taxes and taxes receivable (recovered) applied against the deemed repatriation tax liability | 1.2 | (.6) | 28.4 | ||||||||||||||
(Amounts in millions, except
per share data)
|
Common Stock |
Additional
Contributed Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Treasury Stock |
Noncontrolling
Interest |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 198.8 | $ | 2.0 | $ | 514.7 | $ | 2,511.3 | $ | (9.5) | (66.9) | $ | (1,828.3) | $ | .6 | $ | 1,190.8 | |||||||||||||||||||||||||||||||||||||
Effect of accounting change on prior years (See Note B)
|
— | — | — | (2.3) | — | — | — | — | (2.3) | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning balance,
January 1, 2018 |
198.8 | 2.0 | 514.7 | 2,509.0 | (9.5) | (66.9) | (1,828.3) | .6 | 1,188.5 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 305.9 | — | — | — | .2 | 306.1 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | 5.3 | (201.1) | — | — | — | — | (195.8) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (.2) | (.2) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | (2.6) | (113.6) | — | (113.6) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | (16.6) | — | — | 1.2 | 33.6 | — | 17.0 | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | (68.1) | — | — | — | (68.1) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | — | 23.7 | — | — | — | — | — | 23.7 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 198.8 | $ | 2.0 | $ | 527.1 | $ | 2,613.8 | $ | (77.6) | (68.3) | $ | (1,908.3) | $ | .6 | $ | 1,157.6 | |||||||||||||||||||||||||||||||||||||
— | — | — | .1 | — | — | — | — | .1 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning balance,
January 1, 2019 |
198.8 | 2.0 | 527.1 | 2,613.9 | (77.6) | (68.3) | (1,908.3) | .6 | 1,157.7 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 333.8 | — | — | — | .1 | 333.9 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | 5.4 | (213.2) | — | — | — | — | (207.8) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (.2) | (.2) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | (.7) | (31.1) | — | (31.1) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | (22.3) | — | — | 2.0 | 55.6 | — | 33.3 | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | .8 | — | — | — | .8 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | — | 25.9 | — | — | — | — | — | 25.9 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 198.8 | $ | 2.0 | $ | 536.1 | $ | 2,734.5 | $ | (76.8) | (67.0) | $ | (1,883.8) | $ | .5 | $ | 1,312.5 | |||||||||||||||||||||||||||||||||||||
— | — | — | (2.5) | — | — | — | — | (2.5) | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning balance,
January 1, 2020 |
198.8 | 2.0 | 536.1 | 2,732.0 | (76.8) | (67.0) | (1,883.8) | .5 | 1,310.0 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 247.6 | — | — | — | .1 | 247.7 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | 5.5 | (217.2) | — | — | — | — | (211.7) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | (.2) | (11.2) | — | (11.2) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | (21.9) | — | — | 1.0 | 29.6 | — | 7.7 | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | 24.4 | — | — | (.1) | 24.3 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | — | 23.5 | — | — | — | — | — | 23.5 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 198.8 | $ | 2.0 | $ | 543.2 | $ | 2,762.4 | $ | (52.4) | (66.2) | $ | (1,865.4) | $ | .5 | $ | 1,390.3 |
December 31, 2020 | December 31, 2019 | ||||||||||
Finished goods | $ | 307.3 | $ | 308.7 | |||||||
Work in process | 47.2 | 54.4 | |||||||||
Raw materials and supplies | 346.2 | 323.5 | |||||||||
LIFO reserve | (55.2) | (49.9) | |||||||||
Total inventories, net | $ | 645.5 | $ | 636.7 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance, beginning of year | $ | 49.9 | $ | 82.2 | $ | 50.9 | |||||||||||
LIFO expense (benefit) | 8.1 | (32.3) | 31.3 | ||||||||||||||
Allocated to divested businesses 1
|
(2.8) | — | — | ||||||||||||||
Balance, end of year | $ | 55.2 | $ | 49.9 | $ | 82.2 |
Useful Life Range | Weighted Average Life | ||||||||||
Machinery and equipment |
3-20 years
|
10 years | |||||||||
Buildings |
5-40 years
|
27 years | |||||||||
Other items |
3-15 years
|
10 years |
Useful Life Range | Weighted Average Life | ||||||||||
Other intangible assets |
5-20 years
|
14 years |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Bedding Products | |||||||||||||||||
Bedding Group 1
|
$ | 2,039.3 | $ | 2,254.3 | $ | 1,795.3 | |||||||||||
2,039.3 | 2,254.3 | 1,795.3 | |||||||||||||||
Specialized Products | |||||||||||||||||
Automotive Group | 719.0 | 816.1 | 823.3 | ||||||||||||||
Aerospace Products Group | 102.4 | 157.7 | 148.9 | ||||||||||||||
Hydraulic Cylinders Group | 69.8 | 93.0 | 84.1 | ||||||||||||||
891.2 | 1,066.8 | 1,056.3 | |||||||||||||||
Furniture, Flooring & Textile Products | |||||||||||||||||
Home Furniture Group | 320.9 | 357.4 | 390.3 | ||||||||||||||
Work Furniture Group | 231.1 | 297.3 | 291.4 | ||||||||||||||
Flooring & Textile Products Group | 797.7 | 776.7 | 736.2 | ||||||||||||||
1,349.7 | 1,431.4 | 1,417.9 | |||||||||||||||
$ | 4,280.2 | $ | 4,752.5 | $ | 4,269.5 |
Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Impairment |
Other Long-Lived Asset Impairments 2
|
Total Impairments |
Other Long-Lived Asset Impairments 2
|
Other Long-Lived Asset Impairments 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Bedding Products | $ | — | $ | .3 | $ | .3 | $ | 4.4 | $ | 1.5 | |||||||||||||||||||||||||||||||||||||||||||
Specialized Products | 25.4 | — | 25.4 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | — | .2 | .2 | 3.4 | 3.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated 1
|
— | 3.5 | 3.5 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total impairment charges | $ | 25.4 | $ | 4.0 | $ | 29.4 | $ | 7.8 | $ | 5.4 |
2020 | ||||||||||||||||||||||||||
Fair Value over Carrying Value divided by Carrying Value | December 31, 2020 Goodwill Value |
10-year Compound
Annual Growth Rate Range for Sales |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | Discount Rate Ranges | ||||||||||||||||||||||
Less than 50% 1
|
$ | 97.2 |
2.1%
|
3.0 | % |
9.0%
|
||||||||||||||||||||
50% - 100% 2
|
916.3 |
2.0 - 3.6
|
3.0 |
9.0 - 10.0
|
||||||||||||||||||||||
101% - 300%
|
247.7 |
1.6 - 1.7
|
3.0 |
8.5 - 9.5
|
||||||||||||||||||||||
301% - 600%
|
127.6 |
6.7
|
3.0 |
9.0
|
||||||||||||||||||||||
$ | 1,388.8 |
1.6% - 6.7%
|
3.0 | % |
8.5% - 10.0%
|
2019 | ||||||||||||||||||||||||||
Fair Value over Carrying Value divided by Carrying Value | December 31, 2019 Goodwill Value | 10-year Compound Annual Growth Rate Range for Sales | Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | Discount Rate Ranges | ||||||||||||||||||||||
Less than 50% 3
|
$ | 26.0 |
5.8%
|
3.0 | % |
8.0%
|
||||||||||||||||||||
50% - 100% 2
|
855.9 |
3.8
|
3.0 |
8.5 - 9.5
|
||||||||||||||||||||||
101% - 300%
|
400.9 |
1.3 - 5.5
|
3.0 |
7.5 - 8.0
|
||||||||||||||||||||||
301% - 600%
|
123.5 |
11.1
|
3.0 |
8.5
|
||||||||||||||||||||||
$ | 1,406.3 |
1.3% - 11.1%
|
3.0 | % |
7.5% - 9.5%
|
Bedding Products |
Specialized
Products |
Furniture, Flooring & Textile Products | Total | ||||||||||||||||||||
Net goodwill as of January 1, 2019 | $ | 294.5 | $ | 206.5 | $ | 332.8 | $ | 833.8 | |||||||||||||||
Additions for current year acquisitions | 558.4 | — | 7.9 | 566.3 | |||||||||||||||||||
Adjustments to prior year acquisitions | .9 | .2 | — | 1.1 | |||||||||||||||||||
Foreign currency translation adjustment | 2.1 | 2.1 | .9 | 5.1 | |||||||||||||||||||
Net goodwill as of December 31, 2019 | 855.9 | 208.8 | 341.6 | 1,406.3 | |||||||||||||||||||
Adjustments to prior year acquisitions | — | — | .6 | .6 | |||||||||||||||||||
Reductions for sale of business | (2.5) | — | — | (2.5) | |||||||||||||||||||
Impairment charge | — | (25.4) | — | (25.4) | |||||||||||||||||||
Foreign currency translation adjustment/other | 3.5 | 3.6 | 2.7 | 9.8 | |||||||||||||||||||
Net goodwill as of December 31, 2020 | $ | 856.9 | $ | 187.0 | $ | 344.9 | $ | 1,388.8 | |||||||||||||||
Net goodwill as of December 31, 2020 is comprised of: | |||||||||||||||||||||||
Gross goodwill | $ | 862.3 | $ | 279.1 | $ | 595.5 | $ | 1,736.9 | |||||||||||||||
Accumulated impairment losses | (5.4) | (92.1) | (250.6) | (348.1) | |||||||||||||||||||
Net goodwill as of December 31, 2020 | $ | 856.9 | $ | 187.0 | $ | 344.9 | $ | 1,388.8 |
Patents and Trademarks |
Technology |
Non-compete Agreements |
Customer- Related Intangibles |
Supply Agreements and Other |
Total | ||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Gross carrying amount | $ | 134.6 | $ | 178.2 | $ | 39.9 | $ | 572.6 | $ | 39.9 | $ | 965.2 | |||||||||||||||||||||||
Accumulated amortization | 42.8 | 25.5 | 17.5 | 156.1 | 21.7 | 263.6 | |||||||||||||||||||||||||||||
Net other intangibles as of December 31, 2020 | $ | 91.8 | $ | 152.7 | $ | 22.4 | $ | 416.5 | $ | 18.2 | $ | 701.6 | |||||||||||||||||||||||
Acquired during 2020: | |||||||||||||||||||||||||||||||||||
Acquired related to business acquisitions | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Acquired outside business acquisitions | 1.0 | — | 1.7 | .2 | 4.5 | 7.4 | |||||||||||||||||||||||||||||
Total acquired in 2020 | $ | 1.0 | $ | — | $ | 1.7 | $ | .2 | $ | 4.5 | $ | 7.4 | |||||||||||||||||||||||
Weighted average amortization period in years for items acquired in 2020 | 19.3 | 0.0 | 4.0 | 15.0 | 7.0 | 8.2 | |||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
Gross carrying amount | $ | 133.9 | $ | 178.1 | $ | 42.1 | $ | 591.1 | $ | 41.1 | $ | 986.3 | |||||||||||||||||||||||
Accumulated amortization | 36.7 | 12.9 | 14.2 | 136.3 | 22.2 | 222.3 | |||||||||||||||||||||||||||||
Net other intangibles as of December 31, 2019 | $ | 97.2 | $ | 165.2 | $ | 27.9 | $ | 454.8 | $ | 18.9 | $ | 764.0 | |||||||||||||||||||||||
Acquired during 2019: | |||||||||||||||||||||||||||||||||||
Acquired related to business acquisitions | $ | 67.1 | $ | 173.3 | $ | 28.7 | $ | 378.9 | $ | — | $ | 648.0 | |||||||||||||||||||||||
Acquired outside business acquisitions | 1.6 | — | — | — | 5.9 | 7.5 | |||||||||||||||||||||||||||||
Total acquired in 2019 | $ | 68.7 | $ | 173.3 | $ | 28.7 | $ | 378.9 | $ | 5.9 | $ | 655.5 | |||||||||||||||||||||||
Weighted average amortization period in years for items acquired in 2019 | 15.1 | 15.0 | 5.2 | 15.0 | 7.6 | 14.5 |
Year ended December 31 | |||||
2021 | $ | 66.0 | |||
2022 | 65.0 | ||||
2023 | 62.0 | ||||
2024 | 55.0 | ||||
2025 | 54.0 |
Total Amount Incurred to Date | Total Incurred Full Year 2020 | Total Incurred Full Year 2019 | Total Incurred Full Year 2018 | ||||||||||||||||||||
2018 Restructuring Plan | |||||||||||||||||||||||
Restructuring and restructuring-related | $ | 20.9 | $ | 2.2 | $ | 7.5 | $ | 11.2 | |||||||||||||||
Impairment costs associated with this plan | 13.2 | .5 | 7.6 | 5.1 | |||||||||||||||||||
$ | 34.1 | $ | 2.7 | $ | 15.1 | $ | 16.3 | ||||||||||||||||
Amount of total that represents cash charges | $ | 15.9 | $ | 1.0 | $ | 8.0 | $ | 6.9 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Charged to other (income) expense, net: | |||||||||||||||||
Severance and other restructuring costs | $ | 7.6 | $ | 8.1 | $ | 7.8 | |||||||||||
Charged to cost of goods sold: | |||||||||||||||||
Inventory obsolescence and other | 1.1 | (.5) | 4.6 | ||||||||||||||
Total restructuring and restructuring-related costs | $ | 8.7 | $ | 7.6 | $ | 12.4 | |||||||||||
Amount of total that represents cash charges | $ | 7.6 | $ | 8.1 | $ | 7.8 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Bedding Products | $ | 3.4 | $ | 4.9 | $ | 7.2 | |||||||||||
Specialized Products | 3.9 | — | — | ||||||||||||||
Furniture, Flooring & Textile Products | 1.4 | 2.7 | 5.2 | ||||||||||||||
Total | $ | 8.7 | $ | 7.6 | $ | 12.4 |
Balance at December 31, 2018 | Add: 2019 Charges | Less: 2019 Payments | Balance at December 31, 2019 | Add: 2020 Charges | Less: 2020 Payments | Balance at December 31, 2020 | |||||||||||||||||||||||||||||||||||
Termination benefits | $ | 6.6 | $ | 4.7 | $ | 7.8 | $ | 3.5 | $ | 7.0 | $ | 7.1 | $ | 3.4 | |||||||||||||||||||||||||||
Contract termination costs | — | .4 | .4 | — | .2 | — | .2 | ||||||||||||||||||||||||||||||||||
Other restructuring costs | .6 | 3.0 | 2.9 | .7 | .4 | .6 | .5 | ||||||||||||||||||||||||||||||||||
$ | 7.2 | $ | 8.1 | $ | 11.1 | $ | 4.2 | $ | 7.6 | $ | 7.7 | $ | 4.1 |
Year Ended December 31 | |||||||||||||||||||||||||||||
Trade 1
Sales
|
Inter-
Segment Sales |
Total Segment
Sales |
EBIT | Depreciation and Amortization | |||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Bedding Products | $ | 2,039.3 | $ | 32.2 | $ | 2,071.5 | $ | 185.8 | $ | 106.7 | |||||||||||||||||||
Specialized Products 2
|
891.2 | 2.8 | 894.0 | 91.9 | 44.3 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,349.7 | 13.8 | 1,363.5 | 126.2 | 25.5 | ||||||||||||||||||||||||
Intersegment eliminations and other 3, 4
|
(3.4) | 12.9 | |||||||||||||||||||||||||||
$ | 4,280.2 | $ | 48.8 | $ | 4,329.0 | $ | 400.5 | $ | 189.4 | ||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Bedding Products | $ | 2,254.3 | $ | 41.3 | $ | 2,295.6 | $ | 235.8 | $ | 107.3 | |||||||||||||||||||
Specialized Products | 1,066.8 | 3.2 | 1,070.0 | 170.5 | 41.8 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,431.4 | 16.0 | 1,447.4 | 107.4 | 25.7 | ||||||||||||||||||||||||
Intersegment eliminations and other 3
|
(.3) | 17.1 | |||||||||||||||||||||||||||
$ | 4,752.5 | $ | 60.5 | $ | 4,813.0 | $ | 513.4 | $ | 191.9 | ||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||
Bedding Products | $ | 1,795.3 | $ | 46.6 | $ | 1,841.9 | $ | 149.8 | $ | 47.3 | |||||||||||||||||||
Specialized Products | 1,056.3 | 2.7 | 1,059.0 | 189.0 | 39.0 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,417.9 | 18.1 | 1,436.0 | 98.6 | 27.0 | ||||||||||||||||||||||||
Intersegment eliminations and other 3
|
(.5) | 22.8 | |||||||||||||||||||||||||||
$ | 4,269.5 | $ | 67.4 | $ | 4,336.9 | $ | 436.9 | $ | 136.1 |
Year Ended December 31 | |||||||||||||||||||||||
Assets |
Additions
to Property, Plant and Equipment |
Acquired
Companies’ Long-Lived Assets |
|||||||||||||||||||||
2020 | |||||||||||||||||||||||
Bedding Products | $ | 739.0 | $ | 27.1 | $ | — | |||||||||||||||||
Specialized Products | 299.5 | 13.2 | — | ||||||||||||||||||||
Furniture, Flooring & Textile Products | 348.6 | 7.9 | — | ||||||||||||||||||||
Average current liabilities included in segment numbers above | 665.0 | — | — | ||||||||||||||||||||
Unallocated assets and other | 2,713.1 | 18.0 | — | ||||||||||||||||||||
Difference between average assets and year-end balance sheet | (11.2) | — | — | ||||||||||||||||||||
$ | 4,754.0 | $ | 66.2 | $ | — | ||||||||||||||||||
2019 | |||||||||||||||||||||||
Bedding Products | $ | 829.6 | $ | 65.4 | $ | 1,279.8 | |||||||||||||||||
Specialized Products | 346.4 | 29.3 | .2 | ||||||||||||||||||||
Furniture, Flooring & Textile Products | 383.2 | 13.7 | 17.4 | ||||||||||||||||||||
Average current liabilities included in segment numbers above | 735.3 | — | — | ||||||||||||||||||||
Unallocated assets and other | 2,650.7 | 34.7 | — | ||||||||||||||||||||
Difference between average assets and year-end balance sheet | (128.8) | — | — | ||||||||||||||||||||
$ | 4,816.4 | $ | 143.1 | $ | 1,297.4 | ||||||||||||||||||
2018 | |||||||||||||||||||||||
Bedding Products | $ | 696.4 | $ | 58.2 | $ | — | |||||||||||||||||
Specialized Products | 342.5 | 45.0 | 79.4 | ||||||||||||||||||||
Furniture, Flooring & Textile Products | 366.5 | 19.1 | 6.0 | ||||||||||||||||||||
Average current liabilities included in segment numbers above | 651.9 | — | — | ||||||||||||||||||||
Unallocated assets and other | 1,278.0 | 37.3 | — | ||||||||||||||||||||
Difference between average assets and year-end balance sheet | 46.7 | — | — | ||||||||||||||||||||
$ | 3,382.0 | $ | 159.6 | $ | 85.4 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Trade sales | |||||||||||||||||
Foreign sales | |||||||||||||||||
Europe | $ | 420.9 | $ | 508.5 | $ | 525.6 | |||||||||||
China | 441.7 | 449.9 | 494.7 | ||||||||||||||
Canada | 261.5 | 312.8 | 286.8 | ||||||||||||||
Mexico | 215.4 | 256.0 | 186.1 | ||||||||||||||
Other | 94.7 | 92.6 | 94.8 | ||||||||||||||
Total foreign sales | 1,434.2 | 1,619.8 | 1,588.0 | ||||||||||||||
United States | 2,846.0 | 3,132.7 | 2,681.5 | ||||||||||||||
Total trade sales | $ | 4,280.2 | $ | 4,752.5 | $ | 4,269.5 | |||||||||||
Tangible long-lived assets | |||||||||||||||||
Foreign tangible long-lived assets | |||||||||||||||||
Europe | $ | 155.0 | $ | 160.2 | $ | 167.6 | |||||||||||
China | 45.4 | 51.6 | 55.5 | ||||||||||||||
Canada | 30.2 | 36.4 | 38.0 | ||||||||||||||
Mexico | 8.8 | 10.1 | 10.1 | ||||||||||||||
Other | 11.1 | 14.7 | 16.0 | ||||||||||||||
Total foreign tangible long-lived assets | 250.5 | 273.0 | 287.2 | ||||||||||||||
United States | 534.3 | 557.8 | 441.3 | ||||||||||||||
Total tangible long-lived assets | $ | 784.8 | $ | 830.8 | $ | 728.5 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Earnings: | |||||||||||||||||
Net earnings | $ | 247.7 | $ | 333.9 | $ | 306.1 | |||||||||||
(Earnings) attributable to noncontrolling interest, net of tax | (.1) | (.1) | (.2) | ||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 247.6 | $ | 333.8 | $ | 305.9 | |||||||||||
Weighted average number of shares (in millions): | |||||||||||||||||
Weighted average number of common shares used in basic EPS | 135.7 | 134.8 | 134.3 | ||||||||||||||
Dilutive effect of stock-based compensation | .2 | .6 | .9 | ||||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 135.9 | 135.4 | 135.2 | ||||||||||||||
Basic and Diluted EPS: | |||||||||||||||||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 1.82 | $ | 2.48 | $ | 2.28 | |||||||||||
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 1.82 | $ | 2.47 | $ | 2.26 | |||||||||||
Other information: | |||||||||||||||||
Anti-dilutive shares excluded from diluted EPS computation | .2 | .2 | .1 | ||||||||||||||
Cash dividends declared per share | $ | 1.60 | $ | 1.58 | $ | 1.50 |
Balance at December 31, 2019 as Previously Reported | Topic 326 Adjustments | Balance at January 1, 2020 | |||||||||||||||
Trade receivables, net 1
|
$ | 564.4 | $ | (3.3) | $ | 561.1 | |||||||||||
Other current assets | 973.7 | — | 973.7 | ||||||||||||||
Net property, plant and equipment | 830.8 | — | 830.8 | ||||||||||||||
Total other assets | 2,447.5 | — | 2,447.5 | ||||||||||||||
Total assets | $ | 4,816.4 | $ | (3.3) | $ | 4,813.1 | |||||||||||
Total current liabilities | $ | 928.1 | $ | — | $ | 928.1 | |||||||||||
Total long-term liabilities 2
|
2,575.8 | (.8) | 2,575.0 | ||||||||||||||
Retained earnings | 2,734.5 | (2.5) | 2,732.0 | ||||||||||||||
Other equity | (1,422.0) | — | (1,422.0) | ||||||||||||||
Total liabilities and equity | $ | 4,816.4 | $ | (3.3) | $ | 4,813.1 |
2020 | 2019 | ||||||||||||||||||||||
Current | Long-term | Current | Long-term | ||||||||||||||||||||
Trade accounts receivable 1
|
$ | 553.5 | $ | — | $ | 571.8 | $ | — | |||||||||||||||
Trade notes receivable | .9 | .3 | 1.1 | .6 | |||||||||||||||||||
Total trade receivables | 554.4 | .3 | 572.9 | .6 | |||||||||||||||||||
Other notes receivable 1
|
— | 22.8 | — | 23.4 | |||||||||||||||||||
Taxes receivable, including income taxes | 14.8 | — | 15.8 | — | |||||||||||||||||||
Other receivables | 13.6 | — | 11.7 | — | |||||||||||||||||||
Subtotal other receivables
|
28.4 | 22.8 | 27.5 | 23.4 | |||||||||||||||||||
Total trade and other receivables
|
582.8 | 23.1 | 600.4 | 24.0 | |||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||
Trade accounts receivable 1,2
|
(19.2) | — | (8.4) | — | |||||||||||||||||||
Trade notes receivable | — | — | (.1) | — | |||||||||||||||||||
Total trade receivables | (19.2) | — | (8.5) | — | |||||||||||||||||||
Other notes receivable 1
|
— | (22.8) | — | (15.0) | |||||||||||||||||||
Total allowance for doubtful accounts | (19.2) | (22.8) | (8.5) | (15.0) | |||||||||||||||||||
Total net receivables | $ | 563.6 | $ | .3 | $ | 591.9 | $ | 9.0 |
Balance at December 31, 2018 |
Add:
Charges |
Less: Net
Charge-offs/(Recoveries) and Other |
Balance at December 31, 2019 | Topic 326 Adjustment | Balance at January 1, 2020 |
Add:
Charges |
Less: Net
Charge-offs/(Recoveries) and Other |
Balance at December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Trade accounts receivable | $ | 5.2 | $ | 2.7 | $ | (.5) | $ | 8.4 | $ | 3.3 | $ | 11.7 | $ | 9.4 | $ | 1.9 | $ | 19.2 | |||||||||||||||||||||||||||||||||||
Trade notes receivable | — | .1 | — | .1 | — | .1 | (.1) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total trade receivables | 5.2 | 2.8 | (.5) | 8.5 | 3.3 | 11.8 | 9.3 | 1.9 | 19.2 | ||||||||||||||||||||||||||||||||||||||||||||
Other notes receivable | 15.0 | — | — | 15.0 | — | 15.0 | 7.8 | — | 22.8 | ||||||||||||||||||||||||||||||||||||||||||||
Total allowance for doubtful accounts | $ | 20.2 | $ | 2.8 | $ | (.5) | $ | 23.5 | $ | 3.3 | $ | 26.8 | $ | 17.1 | $ | 1.9 | $ | 42.0 |
2020 | 2019 | ||||||||||
Sundry | |||||||||||
$ | 11.0 | $ | 11.5 | ||||||||
42.7 | 38.2 | ||||||||||
Investment in associated companies | — | 4.3 | |||||||||
.9 | 1.4 | ||||||||||
8.2 | 10.5 | ||||||||||
.3 | 9.0 | ||||||||||
3.6 | 4.3 | ||||||||||
Other | 38.4 | 39.2 | |||||||||
$ | 105.1 | $ | 118.4 | ||||||||
Accrued expenses | |||||||||||
$ | .5 | $ | .7 | ||||||||
Wages and commissions payable | 77.5 | 80.9 | |||||||||
Workers’ compensation, vehicle-related and product liability, medical/disability | 45.1 | 42.9 | |||||||||
Sales promotions | 49.9 | 51.1 | |||||||||
8.2 | 11.8 | ||||||||||
Accrued interest | 14.6 | 14.4 | |||||||||
General taxes, excluding income taxes 1
|
26.3 | 17.0 | |||||||||
Environmental reserves | 4.0 | 3.8 | |||||||||
Other | 49.1 | 58.4 | |||||||||
$ | 275.2 | $ | 281.0 | ||||||||
Other current liabilities | |||||||||||
Dividends payable | $ | 53.0 | $ | 52.7 | |||||||
Customer deposits | 19.4 | 11.9 | |||||||||
Sales tax payable | 5.4 | 5.0 | |||||||||
2.2 | .9 | ||||||||||
3.2 | 2.8 | ||||||||||
Outstanding checks in excess of book balances | 1.6 | 10.4 | |||||||||
Other | .5 | 9.6 | |||||||||
$ | 85.3 | $ | 93.3 | ||||||||
Other long-term liabilities | |||||||||||
$ | 71.7 | $ | 58.6 | ||||||||
45.7 | 46.5 | ||||||||||
Deemed repatriation tax payable | 31.6 | 32.8 | |||||||||
Net reserves for tax contingencies | 6.4 | 8.1 | |||||||||
Deferred compensation | 14.6 | 14.6 | |||||||||
Other 1
|
22.1 | 12.9 | |||||||||
$ | 192.1 | $ | 173.5 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Year-end Interest Rate |
Due Date
Through |
Balance | Year-end Interest Rate |
Due Date
Through |
Balance | ||||||||||||||||||||||||||||||
Senior Notes 1
|
3.4 | % | 2022 | $ | 300.0 | 3.4 | % | 2022 | $ | 300.0 | |||||||||||||||||||||||||
Senior Notes 1
|
3.8 | % | 2024 | 300.0 | 3.8 | % | 2024 | 300.0 | |||||||||||||||||||||||||||
Senior Notes 1
|
3.5 | % | 2027 | 500.0 | 3.5 | % | 2027 | 500.0 | |||||||||||||||||||||||||||
Senior Notes 1
|
4.4 | % | 2029 | 500.0 | 4.4 | % | 2029 | 500.0 | |||||||||||||||||||||||||||
Term Loan 2
|
3.0 | % | 2024 | 305.0 | 2.9 | % | 2024 | 462.5 | |||||||||||||||||||||||||||
Industrial development bonds, principally variable interest rates | .3 | % | 2030 | 3.8 | 1.6 | % | 2030 | 3.8 | |||||||||||||||||||||||||||
Commercial paper 3
|
— | % | 2024 | — | 2.0 | % | 2024 | 61.5 | |||||||||||||||||||||||||||
Finance leases (primarily vehicles) | 3.6 | 4.2 | |||||||||||||||||||||||||||||||||
Other, partially secured | .5 | .5 | |||||||||||||||||||||||||||||||||
Unamortized discounts and deferred loan cost | (12.7) | (14.9) | |||||||||||||||||||||||||||||||||
Total debt | 1,900.2 | 2,117.6 | |||||||||||||||||||||||||||||||||
Less: current maturities | 50.9 | 51.1 | |||||||||||||||||||||||||||||||||
Total long-term debt | $ | 1,849.3 | $ | 2,066.5 |
Year ended December 31 | |||||
2021 | $ | 50.9 | |||
2022 | 350.4 | ||||
2023 | 50.9 | ||||
2024 | 454.3 | ||||
2025 | — | ||||
Thereafter | 993.7 | ||||
$ | 1,900.2 |
2020 | 2019 | ||||||||||
Total program authorized | $ | 1,200.0 | $ | 1,200.0 | |||||||
Commercial paper outstanding (classified as long-term debt) | — | (61.5) | |||||||||
Letters of credit issued under the credit facility | — | — | |||||||||
Total program usage | — | (61.5) | |||||||||
Total program available | $ | 1,200.0 | $ | 1,138.5 |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
Operating leases: | |||||||||||
Operating lease right-of-use assets | $ | 161.6 | $ | 158.8 | |||||||
Current portion of operating lease liabilities | 42.4 | 39.3 | |||||||||
Operating lease liabilities | 122.1 | 121.6 | |||||||||
Total operating lease liabilities | $ | 164.5 | $ | 160.9 | |||||||
Finance leases: | |||||||||||
Sundry | $ | 3.6 | $ | 4.3 | |||||||
Current maturities of long-term debt | .9 | 1.1 | |||||||||
Long-term debt | 2.7 | 3.1 | |||||||||
Total finance lease liabilities | $ | 3.6 | $ | 4.2 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating lease costs: | |||||||||||||||||
Lease costs | $ | 48.4 | $ | 45.0 | |||||||||||||
Variable lease costs | 12.1 | 12.9 | |||||||||||||||
Total operating lease costs | $ | 60.5 | $ | 57.9 | |||||||||||||
Short-term lease costs | $ | 4.9 | $ | 5.0 | |||||||||||||
Finance lease costs: | |||||||||||||||||
Amortization of right-of-use assets | $ | 2.4 | $ | 2.7 | |||||||||||||
Interest on lease liabilities | .1 | .2 | |||||||||||||||
Total finance lease costs | $ | 2.5 | $ | 2.9 | |||||||||||||
Total lease costs | $ | 67.9 | $ | 65.8 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 47.3 | $ | 40.7 | |||||||||||||
Operating cash flows from finance leases | .1 | .2 | |||||||||||||||
Financing cash flows from finance leases | 2.4 | 2.7 | |||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 43.6 | 40.7 | |||||||||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | 1.8 | 2.1 |
December 31, 2020 | |||||||||||
Operating Leases | Finance Leases | ||||||||||
2021 | $ | 47.0 | $ | 1.6 | |||||||
2022 | 40.7 | 1.3 | |||||||||
2023 | 30.6 | .7 | |||||||||
2024 | 22.2 | .2 | |||||||||
2025 | 14.4 | — | |||||||||
Thereafter | 22.8 | — | |||||||||
Total | 177.7 | 3.8 | |||||||||
Less: Interest | 13.2 | .2 | |||||||||
Lease Liability | $ | 164.5 | $ | 3.6 | |||||||
Weighted average remaining lease term (years) | 5.0 | 2.6 | |||||||||
Weighted average discount rate | 3.2 | % | 3.7 | % |
Shares Available for Issuance | Maximum Number of Authorized Shares | ||||||||||
Unexercised options | .5 | .5 | |||||||||
Outstanding stock units—vested | 3.5 | 8.4 | |||||||||
Outstanding stock units—unvested | .9 | 2.8 | |||||||||
Available for grant | 13.0 | 13.0 | |||||||||
Authorized for issuance at December 31, 2020 | 17.9 | 24.7 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Stock-based retirement plans contributions 2
|
$ | 3.5 | $ | .7 | $ | 3.7 | $ | .6 | $ | 5.6 | $ | 1.0 | |||||||||||||||||||||||
Discounts on various stock awards: | |||||||||||||||||||||||||||||||||||
Deferred Stock Compensation Program 1
|
2.2 | — | 2.1 | — | 1.9 | — | |||||||||||||||||||||||||||||
Stock-based retirement plans 2
|
1.4 | — | 1.3 | — | 1.3 | — | |||||||||||||||||||||||||||||
Discount Stock Plan 6
|
.9 | — | 1.0 | — | 1.1 | — | |||||||||||||||||||||||||||||
Performance Stock Unit (PSU) awards: 3
|
|||||||||||||||||||||||||||||||||||
2018 and later PSU - TSR based 3A
|
3.2 | (.7) | 2.8 | 4.1 | 1.2 | .8 | |||||||||||||||||||||||||||||
2018 and later PSU - EBIT CAGR based 3B
|
(1.9) | (2.0) | 3.8 | 5.3 | 2.9 | 2.5 | |||||||||||||||||||||||||||||
2017 and prior PSU awards 3C
|
— | — | 1.8 | 1.0 | 3.6 | (1.3) | |||||||||||||||||||||||||||||
Profitable Growth Incentive (PGI) awards 4
|
— | — | — | — | .9 | .9 | |||||||||||||||||||||||||||||
Restricted Stock Units (RSU) awards 5
|
6.8 | — | 2.0 | — | 2.1 | — | |||||||||||||||||||||||||||||
Other, primarily non-employee directors restricted stock | .9 | — | 1.4 | — | .9 | — | |||||||||||||||||||||||||||||
Total stock-related compensation expense (income) | 17.0 | $ | (2.0) | 19.9 | $ | 11.0 | 21.5 | $ | 3.9 | ||||||||||||||||||||||||||
Employee contributions for above stock plans | 12.2 | 13.1 | 14.0 | ||||||||||||||||||||||||||||||||
Total stock-based compensation | $ | 29.2 | $ | 33.0 | $ | 35.5 | |||||||||||||||||||||||||||||
Tax benefits on stock-based compensation expense | $ | 4.0 | $ | 4.7 | $ | 5.1 | |||||||||||||||||||||||||||||
Tax benefits on stock-based compensation payments (As discussed below, we elected to pay selected awards in cash during 2018.) | 2.5 | 5.6 | 3.9 | ||||||||||||||||||||||||||||||||
Total tax benefits associated with stock-based compensation | $ | 6.5 | $ | 10.3 | $ | 9.0 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Diversified investments associated with the Executive Stock Unit Program 2
|
$ | 3.2 | $ | 42.7 | $ | 45.9 | $ | 2.8 | $ | 38.2 | $ | 41.0 | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Executive Stock Unit Program 2
|
$ | 3.2 | $ | 42.2 | $ | 45.4 | $ | 2.8 | $ | 37.8 | $ | 40.6 | |||||||||||||||||||||||
Performance Stock Unit (TSR) award 3A
|
1.9 | 2.2 | 4.1 | 1.5 | 5.0 | 6.5 | |||||||||||||||||||||||||||||
Performance Stock Unit (EBIT) award 3B
|
.4 | 1.3 | 1.7 | 4.1 | 3.7 | 7.8 | |||||||||||||||||||||||||||||
Other - primarily timing differences between employee withholdings and related employer contributions to be submitted to various plans' trust accounts | 5.9 | — | 5.9 | 6.2 | — | 6.2 | |||||||||||||||||||||||||||||
Total liabilities associated with stock-based compensation | $ | 11.4 | $ | 45.7 | $ | 57.1 | $ | 14.6 | $ | 46.5 | $ | 61.1 |
Options | Units | Cash | |||||||||||||||
Aggregate amount of compensation deferred during 2020 | $ | .8 | $ | 6.9 | $ | .9 |
Total Stock
Options |
Weighted
Average Exercise Price per Share |
Weighted
Average Remaining Contractual Life in Years |
Aggregate
Intrinsic Value |
||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2019 | .6 | $ | 33.03 | ||||||||||||||||||||||||||||||||||||||
Granted | — | 42.44 | |||||||||||||||||||||||||||||||||||||||
Exercised | (.1) | 22.82 | |||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2020 | .5 | $ | 35.72 | 4.7 | $ | 4.6 | |||||||||||||||||||||||||||||||||||
Vested or expected to vest | .5 | $ | 35.72 | 4.7 | $ | 4.6 | |||||||||||||||||||||||||||||||||||
Exercisable (vested) at December 31, 2020 | .5 | $ | 35.33 | 4.6 | $ | 4.6 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Total intrinsic value of stock options exercised | $ | 2.3 | $ | 23.6 | $ | 8.8 | |||||||||||
Cash received from stock options exercised | 1.5 | 9.3 | 4.8 | ||||||||||||||
Total fair value of stock options vested | .9 | .3 | .8 |
Year Ended December 31 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Aggregate grant date fair value | $ | .2 |
$ .5
|
$ <.1
|
||||||||||||||||
Weighted-average per share grant date fair value | 6.39 | 5.36 | 6.47 | |||||||||||||||||
Risk-free interest rate | 2.4 | % | 2.8 | % | 2.3 | % | ||||||||||||||
Expected life in years | 7.4 | 7.8 | 6.0 | |||||||||||||||||
Expected volatility (over expected life) | 22.1 | % | 22.3 | % | 19.4 | % | ||||||||||||||
Expected dividend yield (over expected life) | 3.7 | % | 4.2 | % | 3.1 | % |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
TSR Based | |||||||||||||||||
Total shares base award | .1 | .1 | .1 | ||||||||||||||
Grant date per share fair value | $ | 38.23 | $ | 57.86 | $ | 42.60 | |||||||||||
Risk-free interest rate | 1.4 | % | 2.4 | % | 2.4 | % | |||||||||||
Expected life in years | 3.0 | 3.0 | 3.0 | ||||||||||||||
Expected volatility (over expected life) | 24.0 | % | 21.5 | % | 19.9 | % | |||||||||||
Expected dividend yield (over expected life) | 3.6 | % | 3.4 | % | 3.3 | % | |||||||||||
EBIT CAGR Based | |||||||||||||||||
Total shares base award | .1 | .1 | .1 | ||||||||||||||
Grant date per share fair value | $ | 40.52 | $ | 39.98 | $ | 40.92 | |||||||||||
Vesting period in years | 3.0 | 3.0 | 3.0 |
Three-Year Performance Cycle for PSU - TSR Based | ||||||||||||||||||||||||||||||||||||||
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 |
Cash Portion | Distribution Date | ||||||||||||||||||||||||||||||||
2016 | December 31, 2018 | 78 | th percentile | —% | — | $ | — | First quarter 2019 | ||||||||||||||||||||||||||||||
2017 | December 31, 2019 | 63 | rd percentile | 49.0% | .1 million | $ | 1.6 | First quarter 2020 | ||||||||||||||||||||||||||||||
2018 | December 31, 2020 | 60 | th percentile | 56.0% |
< .1 million
|
$ | 2.0 | First quarter 2021 |
Three-Year Performance Cycle for PSU - EBIT CAGR Based | |||||||||||||||||||||||||||||||||||
Award Year | Completion Date |
Payout as a
Percent of the Base Award |
Number of Shares
Distributed |
Cash Portion | Distribution Date | ||||||||||||||||||||||||||||||
2018 | December 31, 2020 | 16.0% |
<.1 million
|
$ | .4 | First quarter 2021 |
Two-Year Performance Cycle | ||||||||||||||||||||||||||||||||
Award Year | Completion Date | Average Payout as a Percent of the Base Award | Estimated Number of Shares | Cash Portion | Distribution Date | |||||||||||||||||||||||||||
2016 | December 31, 2017 | 44.0% | — | $ | 2.0 | First quarter 2018 | ||||||||||||||||||||||||||
2017 | December 31, 2018 | 155.0% |
<.1 million
|
$ | 2.2 | First quarter 2019 |
DSU | ESUP | PSU* | RSU | Total Units |
Weighted
Average Grant Date Fair Value per Unit |
Aggregate
Intrinsic Value |
|||||||||||||||||||||||||||||||||||||||||
Unvested at December 31, 2019 | — | — | 1.0 | .1 | 1.1 | $ | 33.30 | ||||||||||||||||||||||||||||||||||||||||
Granted based on current service | .3 | .2 | — | .2 | .7 | 39.21 | |||||||||||||||||||||||||||||||||||||||||
Granted based on future conditions | — | — | .2 | — | .2 | 19.66 | |||||||||||||||||||||||||||||||||||||||||
Vested | (.3) | (.2) | (.1) | (.2) | (.8) | 55.82 | |||||||||||||||||||||||||||||||||||||||||
Forfeited | — | — | (.3) | — | (.3) | 25.92 | |||||||||||||||||||||||||||||||||||||||||
Unvested at December 31, 2020 | — | — | .8 | .1 | .9 | $ | 24.07 | $ | 42.3 | ||||||||||||||||||||||||||||||||||||||
Fully vested shares available for issuance at December 31, 2020 | 3.5 | $ | 153.6 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Total intrinsic value of vested stock units converted to common stock | $ | 11.7 | $ | 8.0 | $ | 12.1 |
Average 2020 purchase price per share (net of discount) | $ | 32.50 | |||
2020 number of shares purchased by employees | .2 | ||||
Shares purchased since inception in 1982 | 23.5 | ||||
Maximum shares under the plan | 27.0 |
2020 | 2019 | 2018 | |||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of period | $ | 259.1 | $ | 219.8 | $ | 241.5 | |||||||||||
Service cost | 5.1 | 4.0 | 3.9 | ||||||||||||||
Interest cost | 7.2 | 8.5 | 8.0 | ||||||||||||||
Plan participants’ contributions | .5 | .5 | .5 | ||||||||||||||
Actuarial loss (gain)1
|
27.7 | 36.7 | (20.3) | ||||||||||||||
Benefits paid | (14.2) | (13.8) | (13.4) | ||||||||||||||
Plan amendments | (.4) | 1.9 | 1.9 | ||||||||||||||
Foreign currency exchange rate changes | 1.5 | 1.5 | (2.3) | ||||||||||||||
Benefit obligation, end of period | 286.5 | 259.1 | 219.8 | ||||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of period | 201.5 | 181.8 | 185.7 | ||||||||||||||
Actual return (loss) on plan assets | 24.1 | 30.0 | (10.6) | ||||||||||||||
Employer contributions | 2.2 | 1.5 | 21.8 | ||||||||||||||
Plan participants’ contributions | .5 | .5 | .5 | ||||||||||||||
Benefits paid | (14.2) | (13.8) | (13.4) | ||||||||||||||
Foreign currency exchange rate changes | 1.2 | 1.5 | (2.2) | ||||||||||||||
Fair value of plan assets, end of period | 215.3 | 201.5 | 181.8 | ||||||||||||||
Net funded status | $ | (71.2) | $ | (57.6) | $ | (38.0) | |||||||||||
Funded status recognized in the Consolidated Balance Sheets | |||||||||||||||||
Other assets—sundry | $ | .9 | $ | 1.4 | $ | 1.6 | |||||||||||
Other current liabilities | (.4) | (.4) | (.4) | ||||||||||||||
Other long-term liabilities | (71.7) | (58.6) | (39.2) | ||||||||||||||
Net funded status | $ | (71.2) | $ | (57.6) | $ | (38.0) |
December 31, 2019 |
2020
Amortization |
2020
Net Actuarial Loss |
2020
Foreign Currency Exchange Rates Change |
2020
Income Tax Change |
December 31, 2020 | ||||||||||||||||||||||||||||||
Net loss (gain) (before tax) | $ | 70.2 | $ | (4.0) | $ | 15.5 | $ | .3 | $ | — | $ | 82.0 | |||||||||||||||||||||||
Deferred income taxes | (19.0) | — | — | — | (2.8) | (21.8) | |||||||||||||||||||||||||||||
Accumulated other comprehensive (income) loss (net of tax) | $ | 51.2 | $ | (4.0) | $ | 15.5 | $ | .3 | $ | (2.8) | $ | 60.2 |
2020 | 2019 | 2018 | |||||||||||||||
Service cost | $ | (5.1) | $ | (4.0) | $ | (3.9) | |||||||||||
Interest cost | (7.2) | (8.5) | (8.0) | ||||||||||||||
Expected return on plan assets | 11.9 | 11.3 | 11.9 | ||||||||||||||
Recognized net actuarial loss | (4.0) | (2.9) | (2.6) | ||||||||||||||
Prior service cost | .4 | (1.7) | — | ||||||||||||||
Net pension expense | $ | (4.0) | $ | (5.8) | $ | (2.6) | |||||||||||
Weighted average assumptions for pension costs: | |||||||||||||||||
Discount rate used in net pension costs | 2.8 | % | 3.9 | % | 3.4 | % | |||||||||||
Rate of compensation increase used in pension costs | 3.4 | % | 3.0 | % | 3.0 | % | |||||||||||
Expected return on plan assets | 6.1 | % | 6.4 | % | 6.4 | % | |||||||||||
Weighted average assumptions for benefit obligation: | |||||||||||||||||
Discount rate used in benefit obligation | 2.1 | % | 2.8 | % | 3.9 | % | |||||||||||
Rate of compensation increase used in benefit obligation | 3.5 | % | 3.4 | % | 3.0 | % |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 |
Assets Measured at NAV1
|
Total | Level 1 | Level 2 | Level 3 |
Assets Measured at NAV1
|
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual and pooled funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income | $ | 35.3 | $ | 16.5 | $ | — | $ | — | $ | 51.8 | $ | 40.7 | $ | — | $ | — | $ | — | $ | 40.7 | |||||||||||||||||||||||||||||||||||||||
Equities | 114.0 | 10.4 | — | — | 124.4 | 121.7 | — | — | — | 121.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stable value funds | — | 30.9 | — | — | 30.9 | — | 30.2 | — | — | 30.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds, cash and other | — | — | — | 8.2 | 8.2 | — | — | — | 8.9 | 8.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total investments at fair value | $ | 149.3 | $ | 57.8 | $ | — | $ | 8.2 | $ | 215.3 | $ | 162.4 | $ | 30.2 | $ | — | $ | 8.9 | $ | 201.5 |
2020 | 2019 | ||||||||||
Asset Category | |||||||||||
Equity securities | 58 | % | 60 | % | |||||||
Debt securities | 24 | 20 | |||||||||
Stable value funds | 14 | 15 | |||||||||
Other, including cash | 4 | 5 | |||||||||
Total | 100 | % | 100 | % |
2021 | $ | 13.0 | |||
2022 | 13.5 | ||||
2023 | 14.1 | ||||
2024 | 14.8 | ||||
2025 | 15.0 | ||||
2026-2030 | 73.5 |
2020 | 2019 | 2018 | |||||||||||||||
401(k) Plan | $ | 6.8 | $ | 6.9 | $ | 2.2 | |||||||||||
Other defined contribution plans | 4.9 | 5.3 | 4.1 | ||||||||||||||
$ | 11.7 | $ | 12.2 | $ | 6.3 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Domestic | $ | 108.3 | $ | 195.5 | $ | 149.1 | |||||||||||
Foreign | 212.6 | 234.6 | 235.3 | ||||||||||||||
$ | 320.9 | $ | 430.1 | $ | 384.4 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current | |||||||||||||||||
Federal | $ | 36.9 | $ | 34.6 | $ | 21.2 | |||||||||||
State and local | 7.8 | 5.3 | 4.9 | ||||||||||||||
Foreign | 51.0 | 48.7 | 55.6 | ||||||||||||||
95.7 | 88.6 | 81.7 | |||||||||||||||
Deferred | |||||||||||||||||
Federal | (16.3) | 7.5 | 8.8 | ||||||||||||||
State and local | (2.9) | .6 | (12.0) | ||||||||||||||
Foreign | (3.3) | (.5) | (.2) | ||||||||||||||
(22.5) | 7.6 | (3.4) | |||||||||||||||
$ | 73.2 | $ | 96.2 | $ | 78.3 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Increases (decreases) in rate resulting from: | |||||||||||||||||
State taxes, net of federal benefit | .8 | 1.4 | .9 | ||||||||||||||
Tax effect of foreign operations | (2.2) | (1.6) | (.7) | ||||||||||||||
Global intangible low-taxed income | (.4) | 2.2 | .7 | ||||||||||||||
Current and deferred foreign withholding taxes | 2.8 | 1.2 | 3.8 | ||||||||||||||
Stock-based compensation | (.6) | (1.1) | (.8) | ||||||||||||||
Change in valuation allowance | .8 | .4 | (2.0) | ||||||||||||||
Change in uncertain tax positions, net | .6 | (.3) | (.3) | ||||||||||||||
Goodwill impairment | 1.7 | — | — | ||||||||||||||
Other permanent differences, net | (1.4) | (.3) | (1.4) | ||||||||||||||
Other, net | (.3) | (.5) | (.8) | ||||||||||||||
Effective tax rate | 22.8 | % | 22.4 | % | 20.4 | % |
2020 | 2019 | 2018 | |||||||||||||||
Gross unrecognized tax benefits, January 1 | $ | 6.4 | $ | 8.2 | $ | 10.1 | |||||||||||
Gross increases—tax positions in prior periods 1
|
2.9 | — | — | ||||||||||||||
Gross decreases—tax positions in prior periods | (.4) | (.4) | (.5) | ||||||||||||||
Gross increases—current period tax positions | .6 | .7 | 1.3 | ||||||||||||||
Change due to exchange rate fluctuations | .1 | — | (.2) | ||||||||||||||
Settlements 1
|
(3.2) | — | — | ||||||||||||||
Lapse of statute of limitations | (1.1) | (2.1) | (2.5) | ||||||||||||||
Gross unrecognized tax benefits, December 31 | 5.3 | 6.4 | 8.2 | ||||||||||||||
Interest | 1.4 | 1.9 | 2.4 | ||||||||||||||
Penalties | .2 | .3 | .4 | ||||||||||||||
Total gross unrecognized tax benefits, December 31 | $ | 6.9 | $ | 8.6 | $ | 11.0 |
December 31 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||
Property, plant and equipment | $ | 17.4 | $ | (81.7) | $ | 19.1 | $ | (84.8) | |||||||||||||||
Inventories | 2.6 | (10.2) | 2.3 | (13.2) | |||||||||||||||||||
Accrued expenses | 68.1 | (6.3) | 59.9 | (4.2) | |||||||||||||||||||
Net operating losses and other tax carryforwards | 32.3 | — | 31.9 | — | |||||||||||||||||||
Pension cost and other post-retirement benefits | 22.3 | (.7) | 18.2 | (.7) | |||||||||||||||||||
Intangible assets | .2 | (194.7) | .3 | (199.5) | |||||||||||||||||||
Derivative financial instruments | 2.4 | (2.4) | 3.0 | (1.7) | |||||||||||||||||||
Tax on undistributed earnings (primarily from Canada and China) | — | (14.8) | — | (16.8) | |||||||||||||||||||
Uncertain tax positions | 1.1 | — | 1.4 | — | |||||||||||||||||||
Other | 5.7 | (6.4) | 5.2 | (6.3) | |||||||||||||||||||
Gross deferred tax assets (liabilities) | 152.1 | (317.2) | 141.3 | (327.2) | |||||||||||||||||||
Valuation allowance | (18.1) | — | (16.8) | — | |||||||||||||||||||
Total deferred taxes | $ | 134.0 | $ | (317.2) | $ | 124.5 | $ | (327.2) | |||||||||||||||
Net deferred tax liability | $ | (183.2) | $ | (202.7) |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
Sundry | $ | 11.0 | $ | 11.5 | |||||||
Deferred income taxes | (194.2) | (214.2) | |||||||||
$ | (183.2) | $ | (202.7) |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Gain on sales of assets and businesses | $ | (2.5) | $ | (5.0) | $ | (1.9) | |||||||||||
7.6 | 8.1 | 7.8 | |||||||||||||||
Currency loss | 2.4 | 3.0 | .8 | ||||||||||||||
(6.0) | (7.2) | 1.9 | |||||||||||||||
COVID-19 government subsidies 1
|
(21.4) | — | — | ||||||||||||||
(1.1) | 1.8 | (1.3) | |||||||||||||||
Other income | (4.0) | (4.3) | (6.5) | ||||||||||||||
$ | (25.0) | $ | (3.6) | $ | .8 |
Foreign
Currency
Translation
Adjustments
|
Cash
Flow Hedges |
Defined
Benefit Pension Plans |
Accumulated
Other Comprehensive Income (Loss) |
||||||||||||||||||||
Balance at January 1, 2018 | $ | 40.5 | $ | (11.5) | $ | (38.5) | $ | (9.5) | |||||||||||||||
Other comprehensive (loss) | (67.0) | (3.1) | (3.7) | (73.8) | |||||||||||||||||||
Reclassifications, pretax 1
|
— | 2.8 | 2.6 | 5.4 | |||||||||||||||||||
Income tax effect | — | — | .3 | .3 | |||||||||||||||||||
Balance at December 31, 2018 | (26.5) | (11.8) | (39.3) | (77.6) | |||||||||||||||||||
Other comprehensive income (loss) | 5.0 | 2.5 | (18.6) | (11.1) | |||||||||||||||||||
Reclassifications, pretax 2
|
— | 7.4 | 2.9 | 10.3 | |||||||||||||||||||
Income tax effect | — | (2.2) | 3.8 | 1.6 | |||||||||||||||||||
Balance at December 31, 2019 | (21.5) | (4.1) | (51.2) | (76.8) | |||||||||||||||||||
Other comprehensive income (loss) | 27.8 | 4.5 | (15.8) | 16.5 | |||||||||||||||||||
Reclassifications, pretax 3
|
— | 2.4 | 4.0 | 6.4 | |||||||||||||||||||
Income tax effect | — | (1.4) | 2.8 | 1.4 | |||||||||||||||||||
Attributable to noncontrolling interest | .1 | — | — | .1 | |||||||||||||||||||
Balance at December 31, 2020 | $ | 6.4 | $ | 1.4 | $ | (60.2) | $ | (52.4) | |||||||||||||||
1 2018 pretax reclassifications are comprised of:
|
|||||||||||||||||||||||
Net trade sales | $ | — | $ | (2.6) | $ | — | $ | (2.6) | |||||||||||||||
Cost of goods sold; selling and administrative expenses | — | 1.1 | — | 1.1 | |||||||||||||||||||
Interest expense | — | 4.3 | — | 4.3 | |||||||||||||||||||
Other (income) expense, net | — | — | 2.6 | 2.6 | |||||||||||||||||||
Total 2018 reclassifications, pretax | $ | — | $ | 2.8 | $ | 2.6 | $ | 5.4 | |||||||||||||||
2 2019 pretax reclassifications are comprised of:
|
|||||||||||||||||||||||
Net trade sales | $ | — | $ | 3.6 | $ | — | $ | 3.6 | |||||||||||||||
Cost of goods sold; selling and administrative expenses | — | (.6) | — | (.6) | |||||||||||||||||||
Interest expense | — | 4.4 | — | 4.4 | |||||||||||||||||||
Other (income) expense, net | — | — | 2.9 | 2.9 | |||||||||||||||||||
Total 2019 reclassifications, pretax | $ | — | $ | 7.4 | $ | 2.9 | $ | 10.3 | |||||||||||||||
3 2020 pretax reclassifications are comprised of:
|
|||||||||||||||||||||||
Net trade sales | $ | — | $ | (1.4) | $ | — | $ | (1.4) | |||||||||||||||
Cost of goods sold; selling and administrative expenses | — | (.7) | — | (.7) | |||||||||||||||||||
Interest expense | — | 4.5 | — | 4.5 | |||||||||||||||||||
Other (income) expense, net | — | — | 4.0 | 4.0 | |||||||||||||||||||
Total 2020 reclassifications, pretax | $ | — | $ | 2.4 | $ | 4.0 | $ | 6.4 |
As of December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Bank time deposits with original maturities of three months or less | $ | — | $ | 156.5 | $ | — | $ | 156.5 | |||||||||||||||
— | 7.9 | — | 7.9 | ||||||||||||||||||||
45.9 | — | — | 45.9 | ||||||||||||||||||||
Total assets | $ | 45.9 | $ | 164.4 | $ | — | $ | 210.3 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
$ | — | $ | 2.5 | $ | — | $ | 2.5 | ||||||||||||||||
45.4 | — | — | 45.4 | ||||||||||||||||||||
Total liabilities | $ | 45.4 | $ | 2.5 | $ | — | $ | 47.9 |
As of December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Bank time deposits with original maturities of three months or less | $ | — | $ | 153.7 | $ | — | $ | 153.7 | |||||||||||||||
— | 4.0 | — | 4.0 | ||||||||||||||||||||
41.0 | — | — | 41.0 | ||||||||||||||||||||
Total assets | $ | 41.0 | $ | 157.7 | $ | — | $ | 198.7 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
$ | — | $ | .9 | $ | — | $ | .9 | ||||||||||||||||
40.6 | — | — | 40.6 | ||||||||||||||||||||
Total liabilities | $ | 40.6 | $ | .9 | $ | — | $ | 41.5 |
2019 | 2018 | ||||||||||||||||
Accounts receivable | $ | 75.2 | $ | 19.6 | |||||||||||||
Inventory | 63.2 | 26.2 | |||||||||||||||
Property, plant and equipment | 82.3 | 28.2 | |||||||||||||||
566.3 | 28.1 | ||||||||||||||||
Customer relationships (5 to 15-year life)
|
378.9 | 19.4 | |||||||||||||||
Technology (5 to 15-year life)
|
173.3 | 4.9 | |||||||||||||||
Trademarks and trade names (15-year life)
|
67.1 | 2.7 | |||||||||||||||
Non-compete agreements and other (5 to 15-year life)
|
28.7 | 1.9 | |||||||||||||||
Other current and long-term assets | 29.4 | .8 | |||||||||||||||
Current liabilities | (48.2) | (11.9) | |||||||||||||||
Deferred income taxes | (127.4) | (9.9) | |||||||||||||||
Long-term liabilities | (23.7) | (.8) | |||||||||||||||
Net cash consideration | $ | 1,265.1 | $ | 109.2 |
Year Ended |
Number of
Acquisitions |
Segment | Product/Service | |||||||||||||||||
December 31, 2020 | None | |||||||||||||||||||
December 31, 2019 | 2 |
Bedding Products
Furniture, Flooring & Textile Products |
A leader in proprietary specialized foam technology, primarily for the bedding and furniture industries;
Manufacturer and distributor of geosynthetic and mine ventilation products |
|||||||||||||||||
December 31, 2018 | 3 |
Furniture, Flooring & Textile Products;
Specialized Products |
Manufacturer and distributor of home and garden products; Manufacturer and distributor of silt fence;
Engineered hydraulic cylinders |
Year Ended December 31 | |||||||||||
2019 | 2018 | ||||||||||
Net trade sales | $ | 4,774.1 | $ | 4,870.8 | |||||||
Net earnings | 335.5 | 283.9 | |||||||||
EPS basic | 2.49 | 2.11 | |||||||||
EPS diluted | 2.49 | 2.10 |
Expiring at various dates through: |
Total USD
Equivalent Notional Amount |
As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
Other Current
Assets |
Sundry |
Other Current
Liabilities |
Other Long-Term
Liabilities |
|||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||
Currency hedges: | ||||||||||||||||||||||||||||||||||||||
Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | Jun 2022 | $ | 149.3 | $ | 6.3 | $ | .1 | $ | 1.2 | $ | .1 | |||||||||||||||||||||||||||
Future MXN purchases of a USD subsidiary | Jun 2022 | 9.3 | .7 | .1 | — | — | ||||||||||||||||||||||||||||||||
Future DKK sales of Polish subsidiary | Jun 2022 | 18.5 | — | — | .5 | .1 | ||||||||||||||||||||||||||||||||
Future EUR sales of Chinese and UK subsidiaries | Jun 2022 | 46.7 | — | — | .2 | .1 | ||||||||||||||||||||||||||||||||
Total cash flow hedges | 7.0 | .2 | 1.9 | .3 | ||||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||||||||
Intercompany and third party receivables and payables exposed to multiple currencies (DKK, EUR, MXN, USD and ZAR) in various countries (CAD, CNY, GBP, PLN and USD) | Jun 2021 | 49.5 | .3 | — | .1 | — | ||||||||||||||||||||||||||||||||
Total fair value hedges | .3 | — | .1 | — | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Non-deliverable hedges (EUR and USD) exposed to the CNY | Dec 2021 | 14.4 | .4 | — | — | — | ||||||||||||||||||||||||||||||||
Hedge of USD receivable on CAD subsidiary | Jan 2021 | 18.5 | — | — | .2 | — | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | .4 | — | .2 | — | ||||||||||||||||||||||||||||||||||
Total derivatives | $ | 7.7 | $ | .2 | $ | 2.2 | $ | .3 |
Expiring at various dates through: |
Total USD
Equivalent Notional Amount |
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
Other Current
Assets |
Sundry |
Other Current
Liabilities |
||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||
Currency hedges: | ||||||||||||||||||||||||||||||||||||||
Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | Sep 2021 | $ | 138.5 | $ | 1.3 | $ | .2 | $ | .7 | |||||||||||||||||||||||||||||
Future MXN purchases of a USD subsidiary | Jun 2021 | 9.8 | .5 | .1 | — | |||||||||||||||||||||||||||||||||
Future DKK sales of Polish subsidiary | Jun 2021 | 21.1 | .3 | — | — | |||||||||||||||||||||||||||||||||
Future EUR sales of Chinese and UK subsidiaries | Jun 2021 | 29.9 | .7 | — | — | |||||||||||||||||||||||||||||||||
Total cash flow hedges | 2.8 | .3 | .7 | |||||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||||||||
Intercompany and third party receivables and payables exposed to multiple currencies (DKK, EUR, MXN, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | May 2020 | 112.0 | .8 | — | .1 | |||||||||||||||||||||||||||||||||
Total fair value hedges | .8 | — | .1 | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Non-deliverable hedges (EUR and USD) exposed to the CNY | Dec 2020 | 10.1 | .1 | — | — | |||||||||||||||||||||||||||||||||
Hedge of USD receivable on CAD subsidiary | Jan 2020 | 5.0 | — | — | .1 | |||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | .1 | — | .1 | |||||||||||||||||||||||||||||||||||
Total derivatives | $ | 3.7 | $ | .3 | $ | .9 | ||||||||||||||||||||||||||||||||
Income Statement Caption |
Amount of (Gain) Loss
Recorded in Income for the Year Ended December 31 |
|||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Interest rate cash flow hedges | Interest expense | $ | 4.5 | $ | 4.4 | $ | 4.3 | |||||||||||||||||||
Currency cash flow hedges | Net trade sales | 1.1 | 2.7 | (2.0) | ||||||||||||||||||||||
Currency cash flow hedges | Cost of goods sold | (.1) | (1.6) | .4 | ||||||||||||||||||||||
Currency cash flow hedges | Other (income) expense, net | — | .1 | — | ||||||||||||||||||||||
Total cash flow hedges | 5.5 | 5.6 | 2.7 | |||||||||||||||||||||||
Fair value hedges | Other (income) expense, net | (.2) | .8 | 1.2 | ||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Other (income) expense, net | .2 | .1 | (1.6) | ||||||||||||||||||||||
Total derivative instruments | $ | 5.5 | $ | 6.5 | $ | 2.3 | ||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Litigation contingency accrual - Beginning of period | $ | .7 | $ | 1.9 | $ | .4 | |||||||||||
Adjustment to accruals - expense | .1 | .6 | 1.8 | ||||||||||||||
Currency | (.1) | — | — | ||||||||||||||
Cash payments | (.2) | (1.8) | (.3) | ||||||||||||||
Litigation contingency accrual - End of period | $ | .5 | $ | .7 | $ | 1.9 |
Year ended December 31, (Amounts in millions, except per share data)
|
First 1,4
|
Second 2
|
Third 3,5
|
Fourth 6
|
Total | ||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Net trade sales | $ | 1,045.5 | $ | 845.1 | $ | 1,207.6 | $ | 1,182.0 | $ | 4,280.2 | |||||||||||||||||||
Gross profit | 222.8 | 146.3 | 266.8 | 258.6 | 894.5 | ||||||||||||||||||||||||
Earnings before income taxes | 60.7 | 2.4 | 126.9 | 130.9 | 320.9 | ||||||||||||||||||||||||
Net earnings (loss) | 45.7 | (6.1) | 104.9 | 103.2 | 247.7 | ||||||||||||||||||||||||
(Earnings) attributable to noncontrolling interest, net of tax | — | — | (.1) | — | (.1) | ||||||||||||||||||||||||
Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders | $ | 45.7 | $ | (6.1) | $ | 104.8 | $ | 103.2 | $ | 247.6 | |||||||||||||||||||
Net earnings (loss) per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||||||||||||||
Basic | $ | .34 | $ | (.05) | $ | .77 | $ | .76 | $ | 1.82 | |||||||||||||||||||
Diluted | $ | .34 | $ | (.05) | $ | .77 | $ | .76 | $ | 1.82 | |||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Net trade sales | $ | 1,155.1 | $ | 1,213.2 | $ | 1,239.3 | $ | 1,144.9 | $ | 4,752.5 | |||||||||||||||||||
Gross profit | 233.0 | 269.7 | 275.5 | 272.4 | 1,050.6 | ||||||||||||||||||||||||
Earnings before income taxes | 78.2 | 114.1 | 123.0 | 114.8 | 430.1 | ||||||||||||||||||||||||
Net earnings | 61.1 | 86.3 | 99.6 | 86.9 | 333.9 | ||||||||||||||||||||||||
Loss (earnings) attributable to noncontrolling interest, net of tax | .1 | (.1) | — | (.1) | (.1) | ||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 61.2 | $ | 86.2 | $ | 99.6 | $ | 86.8 | $ | 333.8 | |||||||||||||||||||
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||||||||||||||
Basic | $ | .46 | $ | .64 | $ | .74 | $ | .64 | $ | 2.48 | |||||||||||||||||||
Diluted | $ | .45 | $ | .64 | $ | .74 | $ | .64 | $ | 2.47 |
Column A | Column B | Column C | Column D | Column E | |||||||||||||||||||
Description |
Balance
at Beginning of Period |
Additions
(Credited) to Cost and Expenses |
Deductions |
Balance
at End of Period |
|||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||
Allowance for doubtful receivables | $ | 26.8 |
1
|
$ | 17.1 | $ | 1.9 |
2
|
$ | 42.0 | |||||||||||||
Tax valuation allowance | $ | 16.8 | $ | 2.5 | $ | 1.2 | $ | 18.1 | |||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||
Allowance for doubtful receivables | $ | 20.2 | $ | 2.8 | $ | (.5) |
2
|
$ | 23.5 | ||||||||||||||
Tax valuation allowance | $ | 13.2 | $ | 1.5 | $ | (2.1) | $ | 16.8 | |||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||
Allowance for doubtful receivables | $ | 4.9 | $ | 16.7 | $ | 1.4 |
2
|
$ | 20.2 | ||||||||||||||
Tax valuation allowance | $ | 24.2 | $ | (7.8) | $ | 3.2 | $ | 13.2 | |||||||||||||||
Exhibit No. | Document Description | |||||||
2.1**** | ||||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.2.1 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7** | ||||||||
Exhibit No. | Document Description | |||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6*,** | ||||||||
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10* | ||||||||
10.11* | ||||||||
10.12* | ||||||||
10.13* | ||||||||
10.13.1* | ||||||||
Exhibit No. | Document Description | |||||||
10.13.2* | ||||||||
10.13.3* | ||||||||
10.13.4* | ||||||||
10.13.5* | ||||||||
10.13.6* | ||||||||
10.13.7* | ||||||||
10.13.8* | ||||||||
10.13.9* | ||||||||
10.13.10* | ||||||||
10.13.11* | ||||||||
10.13.12* | ||||||||
10.13.13*,** | ||||||||
10.13.14*,** | ||||||||
Exhibit No. | Document Description | |||||||
10.13.15* | ||||||||
10.13.16* | ||||||||
10.14* | ||||||||
10.14.1* | ||||||||
10.14.2* | ||||||||
10.15* | ||||||||
10.16* | ||||||||
10.17* | ||||||||
10.18* | ||||||||
10.19* | ||||||||
10.20* | ||||||||
10.21* | ||||||||
10.22 | ||||||||
Exhibit No. | Document Description | |||||||
10.22.1 | ||||||||
10.23 | ||||||||
10.24 | ||||||||
21** | ||||||||
23** | ||||||||
24** | ||||||||
31.1** | ||||||||
31.2** | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS*** | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH*** | Inline XBRL Taxonomy Extension Schema. | |||||||
101.CAL*** | Inline XBRL Taxonomy Extension Calculation Linkbase. | |||||||
101.DEF*** | Inline XBRL Taxonomy Extension Definition Linkbase. | |||||||
101.LAB*** | Inline XBRL Taxonomy Extension Label Linkbase. | |||||||
101.PRE*** | Inline XBRL Taxonomy Extension Presentation Linkbase. | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
LEGGETT & PLATT, INCORPORATED | ||||||||
By: |
/s/ KARL G. GLASSMAN
|
|||||||
Karl G. Glassman | ||||||||
Chairman and Chief Executive Officer | ||||||||
Signature | Title | Date | ||||||||||||
(a) Principal Executive Officer: | ||||||||||||||
/s/ KARL G. GLASSMAN
|
Chairman and Chief Executive Officer
(Director) |
February 24, 2021 | ||||||||||||
Karl G. Glassman | ||||||||||||||
(b) Principal Financial Officer: | ||||||||||||||
/s/ JEFFREY L. TATE
|
Executive Vice President and Chief Financial Officer | February 24, 2021 | ||||||||||||
Jeffrey L. Tate | ||||||||||||||
(c) Principal Accounting Officer: | ||||||||||||||
/s/ TAMMY M. TRENT
|
Senior Vice President and Chief Accounting Officer | February 24, 2021 | ||||||||||||
Tammy M. Trent | ||||||||||||||
(d) Directors: | ||||||||||||||
MARK A. BLINN*
|
Director | |||||||||||||
Mark A. Blinn | ||||||||||||||
ROBERT E. BRUNNER*
|
Director | |||||||||||||
Robert E. Brunner | ||||||||||||||
MARY CAMPBELL*
|
Director | |||||||||||||
Mary Campbell | ||||||||||||||
J. MITCHELL DOLLOFF*
|
Director | |||||||||||||
J. Mitchell Dolloff |
Signature | Title | Date | ||||||||||||
MANUEL A. FERNANDEZ*
|
Director | |||||||||||||
Manuel A. Fernandez | ||||||||||||||
JOSEPH W. MCCLANATHAN*
|
Director | |||||||||||||
Joseph W. McClanathan
|
||||||||||||||
JUDY C. ODOM*
|
Director | |||||||||||||
Judy C. Odom | ||||||||||||||
SRIKANTH PADMANABHAN*
|
Director | |||||||||||||
Srikanth Padmanabhan | ||||||||||||||
JAI SHAH*
|
Director | |||||||||||||
Jai Shah | ||||||||||||||
PHOEBE A. WOOD*
|
Director | |||||||||||||
Phoebe A. Wood |
*By: |
/s/ SCOTT S. DOUGLAS
|
||||||||||
Scott S. Douglas | February 24, 2021 | ||||||||||
Attorney-in-Fact
Under Power-of-Attorney dated |
|||||||||||
February 23, 2021 |
• | becomes the beneficial owner (as defined in our Articles of Incorporation), directly or indirectly, of more than 50% of the shares of our common stock outstanding and any such shares were acquired pursuant to a tender offer opposed by our Board; or | |||||||
• | beneficially owns, directly or indirectly, more than 50% of the outstanding shares of our common stock and becomes the beneficial owner (as defined in our Articles of Incorporation), directly or indirectly, of any additional shares of our common stock pursuant to a tender offer opposed by our Board. |
• | the highest price paid by the Acquiring Person, including the value of any non-cash consideration as determined by our Board, and any commissions paid to brokers or dealers for solicitation or other services, for any shares of common stock pursuant to a tender offer that was made by the Acquiring Person and opposed by our Board; or | |||||||
• | the highest market price per common share on the Record Date. For this purpose, the price on such date will be the highest sale price per common share traded on the NYSE or other national securities exchange or, if our common shares are not then traded on a national securities exchange, the mean of the highest bid and highest asked prices per common share quoted in the National Association of Securities Dealers Automated Quotation System on that date. |
• | the specific designation of the shares of the series; | |||||||
• | the consideration for which the shares of the series are to be issued; | |||||||
• | the voting rights appertaining to shares of preferred stock; | |||||||
• |
the rate and conditions, if any, under which dividends will be payable on shares of that
series, and the status of those dividends as cumulative or non-cumulative;
|
|||||||
• | the price, times, terms and conditions, if any, upon which the shares of the series may be redeemed; | |||||||
• | the rights, if any, which the holders of shares of the series have in the event of our liquidation, dissolution or winding up of our affairs; | |||||||
• | the rights, if any, of holders of a series of preferred stock to convert or exchange such shares for shares of any other class or series of our capital stock or any other corporation, including the determination of the price or the rate applicable to such right to convert or exchange and the adjustment thereof, the time during which the rights to convert or exchange will be applicable and the time during which a particular price or rate will be applicable; and | |||||||
• | any other preferences, rights, privileges, qualifications, limitations and restrictions applicable to the series as may be permitted by law. |
• | limit the right of shareholders to remove directors or change the size of our Board; | |||||||
• | limit the right of shareholders to fill vacancies on our Board; | |||||||
• | limit the right of shareholders to call a special meeting of shareholders or propose other actions; | |||||||
• | require unanimity for shareholders to act by written consent, in accordance with Missouri law; | |||||||
• |
require a higher percentage vote of shareholders than would otherwise be required under Missouri law to enter into certain transactions and to amend, alter, change, or repeal certain provisions of our Articles of Incorporation;
|
|||||||
• | provide that the Bylaws may be amended by our Board; and | |||||||
• |
authorize the issuance of preferred stock with such voting powers, designations, preferences and
relative, participating, optional or other special rights, and qualifications, limitations or restrictions
of such rights as may be specified by our Board, without shareholder approval.
|
• | any merger or consolidation of us with or into any other corporation or entity; | |||||||
• |
any sale, lease, exchange or other disposition (other than by mortgage, deed of trust or pledge),
of all, or substantially all, our property and assets, with or without the goodwill, if not made in
the usual and regular course of our business; or
|
|||||||
• | any plan or agreement relating to any transaction or agreement described above. |
• |
has been approved by a majority of our continuing directors, which generally include our directors as of May 9, 1984 and any successors of such members whose nomination or election was approved by the affirmative vote of a majority of our then continuing directors; or
|
|||||||
• | satisfies certain detailed fairness and procedural requirements, including the amount and type of consideration to be paid. |
• |
any merger or consolidation of us or any subsidiary of us with any interested shareholder (as
described below) or any affiliate of an interested shareholder;
|
|||||||
• |
any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions) to or with any interested shareholder or any affiliate of any interested shareholder of any assets of ours or any subsidiary of ours generally having an aggregate fair market value of $5 million or more;
|
|||||||
• |
any issuance or transfer by us or any subsidiary of us (in one transaction or a series of transactions) of any securities of us or any subsidiary of us to any interested shareholder or any affiliate of any interested shareholder in exchange for cash, securities or other property (or a combination thereof) generally having an aggregate fair market value of $5 million or more;
|
|||||||
• |
the adoption of any plan or proposal for our liquidation or dissolution at any time during which there
exists an interested shareholder; or
|
|||||||
• |
any reclassification of securities (including any reverse stock split), or recapitalization of us, or any merger or consolidation of us with any of our subsidiaries or any other transaction (whether or not with or into or otherwise involving an interested shareholder) which has the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of any class of our voting stock which are beneficially owned by any interested shareholder or any affiliate of any interested shareholder.
|
• | amendments to the provisions of our Articles of Incorporation relating to the redemption of our common stock in certain circumstances require the affirmative vote of the holders of at least 85% of our outstanding common stock; | |||||||
• | amendments to the provisions of our Articles of Incorporation relating to mergers and certain other transactions require the affirmative vote of the holders of at least two-thirds of the shares entitled to vote on such amendment; and | |||||||
• | amendments to the provisions of our Articles of Incorporation relating to certain business combinations require the affirmative vote of the holders of 95% of our shares of voting stock, voting together as a single class; provided, that if no interested shareholder exists, the affirmative vote of 60% of the outstanding shares of our voting stock, voting together as a single class, shall be required to amend such provision. |
• | 80% or more of our then outstanding voting stock voting together as a single class; or | |||||||
• |
a majority of all of our continuing directors, which generally include our directors as of the close of business on May 7, 1986 and any successors of such members whose nomination or election was approved by the affirmative vote of a majority of our then continuing directors.
|
• |
annual and special shareholder meetings and related procedural matters, including our quorum
requirement and the prohibition on cumulative voting (Sections 1.1, 1.2, 1.3, 1.4, 1.6 and 1.7 of our
Bylaws);
|
|||||||
• |
the number and election of directors, qualifications of directors, removal of directors, procedures
relating to shareholder nominations of directors, procedures relating to the calling of directors’ meeting
and rules regarding Board committees (Sections 2.1, 2.2, 2.3, 2.4 and 2.6 of our Bylaws);
|
|||||||
• |
indemnification of directors, officers, employees and agents, including the advancement of expenses
(Article 5 of our Bylaws); and
|
|||||||
• | amendments of our Bylaws by our Board (Section 6.6 of our Bylaws). |
• |
any merger or consolidation of us or any subsidiary of us with any interested shareholder or any
affiliate or associate of any interested shareholder;
|
|||||||
• |
specified sales, leases, exchanges, mortgages, pledges, transfers or other dispositions (in one
transaction or a series of transactions) to or with any interested shareholder or any affiliate or
associate of any interested shareholder of any assets of ours or any subsidiary of ours;
|
|||||||
• |
specified issuances or transfers by us or any subsidiary of us (in one transaction or a series of
transactions) of any stock of us or any subsidiary of us to any interested shareholder or any affiliate
or associate of any interested shareholder;
|
|||||||
• |
the adoption of any plan or proposal for our liquidation or dissolution proposed by, or pursuant to any agreement, arrangement or understanding with any interested shareholder or any affiliate or associate of any interested shareholder;
|
|||||||
• |
specified reclassifications of securities or recapitalizations of us, or specified mergers or consolidations of us with any of our subsidiaries or any other transaction (whether or not with or into or otherwise involving an interested shareholder) which have the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of any class of our voting stock which are directly or indirectly owned by any interested shareholder or any affiliate or associate of any interested shareholder; or
|
|||||||
• |
any receipt by any interested shareholder or any affiliate or associate of any interested shareholder of the benefit, directly or indirectly, except proportionately as a shareholder of us, of any loans, advances, guarantees, pledges or other financial assistance or any tax credits or other tax advantages provided by or through us.
|
• |
the business combination or the transaction in which the person becomes an interested shareholder
is approved by our Board on or before the date the interested shareholder obtains such status;
|
|||||||
• |
the holders of a majority of the outstanding voting stock, other than the stock beneficially owned by the interested shareholder, or any affiliate or associate of such interested shareholder, approve the business combination at a meeting no earlier than five years after such interested shareholder’s stock acquisition date; or
|
|||||||
• | the business combination satisfies certain detailed fairness and procedural requirements. |
• |
transfers in accordance with wills or the laws of descent and distribution or by gift where such gift is made in good faith and not for the purpose of circumventing the statute;
|
|||||||
• | purchases made in connection with an issuance by us; | |||||||
• | purchases by or pursuant to any of our compensation or benefit plans; | |||||||
• | conversions of our debt securities in accordance with their terms; | |||||||
• |
acquisitions pursuant to a binding contract whereby the holders of shares representing at least
two-thirds of our voting power agree to sell their shares to the acquirer, provided that such holders act simultaneously and the transaction is not pursuant to or in connection with a tender offer;
|
|||||||
• |
acquisitions pursuant to the satisfaction of a pledge or other security interest created in good
faith and not for the purpose of circumventing the statute;
|
|||||||
• | mergers involving us which satisfy other specified requirements of Missouri law; | |||||||
• | transactions with a person who owned a majority of our voting power within the prior year; or | |||||||
• |
purchases from a person who previously satisfied the requirements of the control share acquisition statute, so long as the acquiring person does not have voting power after the purchase in a different ownership range (as defined in the statute) than the selling shareholder prior to the sale.
|
EXECUTIVE: | Leggett & Platt, Incorporated | |||||||
/s/ Steven K. Henderson |
By: /s/ Karl G. Glassman
|
|||||||
Steven K. Henderson | Karl G. Glassman | |||||||
President and Chief Executive Officer |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
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. | 100% | British Virgin Islands | |||||||||
Church Corporate Park Owner’s Association, LLC | 62% | Delaware | |||||||||
Crest-Foam Corp. | Edison Foam Processing Corp. | 100% | New Jersey | ||||||||
Industrial Components Group | |||||||||||
L&P Carpet Cushion | |||||||||||
L&P Flooring Products | |||||||||||
Leggett & Platt Carpet Cushion | |||||||||||
Leggett & Platt Carpet Cushion Division | |||||||||||
Leggett & Platt Flooring Products | |||||||||||
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 | ||||||||
Eagan Products, LLC | 100% | Delaware | |||||||||
Elite Comfort Solutions LLC | 100% | Delaware | |||||||||
Elite Comfort Solutions, 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. | 100% | China | |||||||||
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 Engineered Materials |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Hanes Fabrics Company | |||||||||||
Hanes Geo Components | |||||||||||
Hanes Trading Company | |||||||||||
Hanes Companies Foundation | 100% | North Carolina | |||||||||
Hanes Companies, Inc. | Attila Environmental Products | 100% | North Carolina | ||||||||
Civ-Con | |||||||||||
Civ-Con Products & Solutions | |||||||||||
DDD Erosion Control | |||||||||||
ERO-TEX | |||||||||||
Geo-Civ Products | |||||||||||
Geotex Supply | |||||||||||
Greenscapes Home and Garden Products | |||||||||||
Hanes | |||||||||||
Hanes Companies | |||||||||||
Hanes Companies - New Jersey | |||||||||||
Hanes Converting Company | |||||||||||
Hanes Dye & Finishing Division | |||||||||||
Hanes Engineered Materials | |||||||||||
Hanes Fabrics Company | |||||||||||
Hanes Geo Components | |||||||||||
Hanes Industries Division | |||||||||||
Hanes Industries Division, Inc. | |||||||||||
Hanes Industries Engineered Materials | |||||||||||
Hanes Trading Company | |||||||||||
Hill Country Culvert | |||||||||||
Hill Country Culverts | |||||||||||
Hill Country Site Supply | |||||||||||
Ikex | |||||||||||
Interwoven | |||||||||||
Interwoven Group | |||||||||||
Jarex | |||||||||||
JMD Geo Components | |||||||||||
Lone Star Geo Products | |||||||||||
North American Textile | |||||||||||
North American Textiles | |||||||||||
North American Textile Component | |||||||||||
North American Textile Components | |||||||||||
Price & Company | |||||||||||
VWR Textiles & Supplies | |||||||||||
Webtec |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
West End Textiles Company | |||||||||||
Hongkong Veilon Limited | 100% | Hong Kong | |||||||||
Jiaxing Ellermann Asia Trading Ltd. | 100% | China | |||||||||
JP&S Holdings Limited | 100% | United Kingdom | |||||||||
JP&S Unlimited | 100% | United Kingdom | |||||||||
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 Suizhou Cable Industries Ltd. | 100% | China | |||||||||
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 - 21 | 100% | Delaware | |||||||||
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 France SAS | 100% | France | |||||||||
L&P Automotive Japan Ltd. | 100% | Japan | |||||||||
L&P Automotive Luxembourg, S.à r.l. | 100% | Luxembourg | |||||||||
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 | |||||||||||
L&P Flooring Products | |||||||||||
Leggett & Platt Carpet Cushion | |||||||||||
Leggett & Platt Flooring Products | |||||||||||
L&P Holdings, Inc. | 100% | Delaware | |||||||||
L&P Hungary Ltd. | 100% | Hungary | |||||||||
L&P International Holdings Company | 100% | Delaware | |||||||||
L&P Materials Manufacturing, Inc. | Adcom Wire | 100% | Delaware | ||||||||
Adcom Wire Company | |||||||||||
Consumer Products Group |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
L&P Flooring Products | |||||||||||
Leggett & Platt Consumer Products Group | |||||||||||
Leggett & Platt Flooring Products | |||||||||||
Mary Ann Industries | |||||||||||
L&P Netherlands Holdings B.V. | 100% | Netherlands | |||||||||
L&P Property Foremost Industrial Park LLC | 100% | Michigan | |||||||||
L&P Property Management Company | Consumer Products | 100% | Delaware | ||||||||
Consumer Products Group | |||||||||||
IDEA Center | |||||||||||
L&P PMC, Inc. | |||||||||||
Leggett & Platt Consumer Products | |||||||||||
Leggett & Platt West Coast Furniture | |||||||||||
L&P Real Estate Services, LLC | 100% | Missouri | |||||||||
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 | 100% | Delaware | ||||||||
Leggett & Platt Consumer Products Group | |||||||||||
Leggett & Platt Global Supply Chain | |||||||||||
Leggett & Platt Transportation, LLC | |||||||||||
L&P UK Holdings LP | 100% | United Kingdom | |||||||||
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 | |||||||||
L&V 5 México, S. de R.L. de C.V. | 100% | Mexico | |||||||||
Landmark Earth Solutions, Inc. | 100% | Nevada | |||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Leggett & Platt (Taizhou) Co. Ltd. | 100% | China | |||||||||
Leggett & Platt Administradora, S.A. de C.V. | 100% | Mexico | |||||||||
Leggett & Platt Aerospace Middletown, LLC | L&P Aerospace | 100% | Delaware | ||||||||
Leggett & Platt Aerospace | |||||||||||
Pegasus Manufacturing | |||||||||||
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 Automotive India Private Limited | 100% | India | |||||||||
Leggett & Platt Canada Co. | 100% | Canada | |||||||||
Canadian Furniture | |||||||||||
Crown North America | |||||||||||
Crown-VMS | |||||||||||
Design Fabricators | |||||||||||
Design Fabricators/Fabricants de Design | |||||||||||
Globe Spring | |||||||||||
Hanes Engineered Materials | |||||||||||
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 Work Furniture | |||||||||||
Leggett & Platt Automotive Group | |||||||||||
Leggett & Platt Work Furniture | |||||||||||
Leggettwood | |||||||||||
Leggettwood, Roberval | |||||||||||
Leggettwood, St-Germain | |||||||||||
Leggettwood, St-Nicolas | |||||||||||
Lenrod | |||||||||||
Lenrod - Hanes | |||||||||||
Lenrod Industries |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Lenrod Industries, a Division of Leggett & Platt Canada Co. | |||||||||||
Les Industries Lenrod | |||||||||||
Les Industries Lenrod, une Division de Societe Leggett & Platt Canada | |||||||||||
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 Components Company, Inc. | Ark-Ell Springs | 100% | Delaware | ||||||||
Cameo Fibers | |||||||||||
Cumulus Fibres | |||||||||||
Industrial Components Group | |||||||||||
L&P Carpet Cushion | |||||||||||
L&P Flooring Products | |||||||||||
L&P Work Furniture | |||||||||||
Leggett & Platt Bedding | |||||||||||
Leggett & Platt Carpet Cushion | |||||||||||
Leggett & Platt Flooring Products | |||||||||||
Leggett & Platt Work Furniture | |||||||||||
Matrex | |||||||||||
Matrex Furniture Components | |||||||||||
Moiron | |||||||||||
Omega Motion | |||||||||||
Petco Sackner | |||||||||||
Sackner | |||||||||||
Sterling & Adams Bentwood | |||||||||||
Super Sagless Hardware | |||||||||||
Tupelo Sleeper | |||||||||||
Leggett & Platt Components Europe Limited | Wellhouse | 100% | United Kingdom | ||||||||
Wellhouse Wire Products | |||||||||||
Leggett & Platt de Mexico, S. de R.L. de C.V. | Leggett & Platt de Mexico, Incorporated | 100% | Mexico | ||||||||
Leggett & Platt do Brasil Ltda. | 100% | Brazil | |||||||||
Leggett & Platt Eastern Europe LLC | 100% | Russia |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Leggett & Platt Europe Finance SCS | 100% | Luxembourg | |||||||||
Leggett & Platt France | 100% | France | |||||||||
Leggett & Platt International Service Corporation | 100% | Delaware | |||||||||
Leggett & Platt International Trade (Shanghai) Co., Ltd. | 100% | China | |||||||||
Leggett & Platt Luxembourg Holdings S.à r.l. | Leggett & Platt Luxembourg Holdings, S.a r.l., Incorporated – US Branch | 100% | Luxembourg | ||||||||
Leggett & Platt Luxembourg S.à r.l. | 100% | Luxembourg | |||||||||
Leggett & Platt Middle East, Incorporated | 100% | Delaware | |||||||||
Leggett & Platt Office Components, LLC | L&P Work Furniture | 100% | Delaware | ||||||||
Leggett & Platt Work Furniture | |||||||||||
LP Cincro | |||||||||||
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 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 U.K. Limited | 100% | United Kingdom | |||||||||
Legplat, S. de R.L. de C.V. | 100% | Mexico | |||||||||
LPI Michigan Realty LLC | 100% | Delaware | |||||||||
LPT d.o.o. | 100% | Croatia | |||||||||
Luxco Holdings, LLC | 100% | Delaware | |||||||||
Nestaway LLC | 100% | Delaware | |||||||||
ORG PHC Midco, Inc. | 100% | Delaware | |||||||||
Peterson Chemical Technology, LLC | 100% | Texas | |||||||||
Portstewart Capital, LLC | 100% | Delaware | |||||||||
Portstewart Funding, LLC | 100% | Delaware | |||||||||
Precision Hydraulic Cylinders (UK) Limited | 100% | United Kingdom | |||||||||
Precision Hydraulic Cylinders, Inc. | PHC | 100% | North Carolina | ||||||||
Precision Hydraulic | |||||||||||
Precision Hydraulic Cylinders | |||||||||||
Precision Hydraulics Private Limited | 100% | India |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Pullmaflex Benelux N.V. | 100% | Belgium | |||||||||
Pullmaflex International Limited | 100% | United Kingdom | |||||||||
Pullmaflex Southern Africa (Proprietary) Limited | 49% | South Africa | |||||||||
Pullmaflex U.K. Limited | 100% | United Kingdom | |||||||||
Schukra Berndorf Ges.m.b.H. | 100% | Austria | |||||||||
SCHUKRA Geratebau GmbH | 100% | Austria | |||||||||
SCI Parent, Inc. | 100% | Delaware | |||||||||
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 | |||||||||
TAG Environmental Inc. | 51% | Canada | |||||||||
Taizhou Intes-Leggett & Platt Special Textile Co., Ltd. | 50% | China | |||||||||
Terrafix Environmental Technology Inc. | 100% | Canada | |||||||||
Terrafix Geosynthetics Inc. | 100% | Canada | |||||||||
Trio Line Polska sp. z o.o. | 85% | Poland | |||||||||
Valley Metals, LLC | L&P Aerospace | 100% | California | ||||||||
Leggett & Platt Aerospace | |||||||||||
Walk-On Products, Inc. | L&P Flooring Products | 100% | North Carolina | ||||||||
Leggett & Platt Flooring Products | |||||||||||
Western Pneumatic Tube Company, LLC | L&P Aerospace | 100% | Washington | ||||||||
Leggett & Platt Aerospace | |||||||||||
Western Pneumatic Tube Holding, LLC | 100% | Delaware | |||||||||
Wuxi Leggett & Platt-Huaguang Automobile Parts Co. Ltd. | 100% | China |
1 | . | Form S-3ASR, Registration No. 333-223621 | ||||||
2 | . | Form S-8, Registration No. 333-157536 | ||||||
3 | . | Form S-8, Registration No. 333-166960 | ||||||
4 | . | Form S-8, Registration No. 333-181432 | ||||||
5 | . | Form S-8, Registration No. 333-203992 | ||||||
6 | . | Form S-8, Registration No. 333-203995 | ||||||
7 | . | Form S-8, Registration No. 333-210077 | ||||||
8 | . | Form S-8, Registration No. 333-228189 |
/s/ MARK A. BLINN
|
/s/ JOSEPH W. MCCLANATHAN
|
|||||||
Mark A. Blinn | Joseph W. McClanathan | |||||||
/s/ ROBERT E. BRUNNER
|
/s/ JUDY C. ODOM
|
|||||||
Robert E. Brunner | Judy C. Odom | |||||||
/s/ MARY CAMPBELL
|
/s/ SRIKANTH PADMANABHAN
|
|||||||
Mary Campbell | Srikanth Padmanabhan | |||||||
/s/ J. MITCHELL DOLLOFF
|
/s/ JAI SHAH
|
|||||||
J. Mitchell Dolloff | Jai Shah | |||||||
/s/ MANUEL A. FERNANDEZ
|
/s/ PHOEBE A. WOOD
|
|||||||
Manuel A. Fernandez | Phoebe A. Wood | |||||||
/s/ KARL G. GLASSMAN
|
||||||||
Karl G. Glassman |
Date: | February 24, 2021 |
/s/ KARL G. GLASSMAN
|
||||||
Karl G. Glassman | ||||||||
Chairman and Chief Executive Officer | ||||||||
Leggett & Platt, Incorporated |
Date: | February 24, 2021 |
/s/ JEFFREY L. TATE
|
||||||
Jeffrey L. Tate | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Leggett & Platt, Incorporated |
/s/ KARL G. GLASSMAN
|
||
Karl G. Glassman | ||
Chairman and Chief Executive Officer |
/s/ JEFFREY L. TATE
|
||
Jeffrey L. Tate | ||
Executive Vice President and Chief Financial Officer |