☒ | 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 | ||||||||
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. | ||||||||
Item 9C. | ||||||||
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 produce 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 2021, 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 |
• | Innersprings and specialty foam for private label mattresses and mattress applications | |||||||
• | 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 | |||||||
• | Hydraulic cylinders for the material handling, construction, and transportation industries | |||||||
• | 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 and seat suspension systems for automotive seating | ||||
• | Fabricated wire for the furniture and automotive industries | ||||
• | Work furniture chair controls and bases |
• | Lumbar and seat suspension systems for automotive seating | ||||
• | Motors and actuators for automotive applications | ||||
• | 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 | ||||||||||
Ireland | 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 1 | n | ||||||||||
Product Families | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Bedding Group | 48 | % | 48 | % | 48 | % | ||||||||||||||||||||
Flooring & Textile Products Group | 18 | 19 | 16 | |||||||||||||||||||||||
Automotive Group | 16 | 17 | 17 | |||||||||||||||||||||||
Home Furniture Group | 8 | 7 | 8 | |||||||||||||||||||||||
Work Furniture Group | 6 | 5 | 6 | |||||||||||||||||||||||
Aerospace Products Group | 2 | 2 | 3 | |||||||||||||||||||||||
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 (including semiconductors) |
• | ComfortCore®, Mira-Coil®, VertiCoil®, Quantum®, Nanocoil®, Softech®, Lura-Flex®, Superlastic®, and Active Support Technology® (mattress innersprings) | ||||
• | Energex®,Coolflow®, ThermaGel®, and EcoFlowTM (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 |
Fair value in excess of carrying value | Goodwill | ||||||||||||||||
Goodwill impairment testing as performed in the second quarter 2021 | Goodwill impairment testing as performed in the second quarter 2020 | As of December 31, 2021 | |||||||||||||||
Aerospace | 28 | % | 51 | % | $68 million | ||||||||||||
Work Furniture | 85 | % | 25 | % | $101 million |
Company- Wide | Subtotals by Segment | |||||||||||||||||||||||||
Manufacturing Locations | Bedding Products | Specialized Products | Furniture, Flooring & Textile Products | |||||||||||||||||||||||
United States | 84 | 35 | 6 | 43 | ||||||||||||||||||||||
Europe | 17 | 6 | 9 | 2 | ||||||||||||||||||||||
China | 13 | 1 | 10 | 2 | ||||||||||||||||||||||
Canada | 7 | — | 3 | 4 | ||||||||||||||||||||||
Mexico | 5 | 2 | 2 | 1 | ||||||||||||||||||||||
Other | 5 | 2 | 3 | — | ||||||||||||||||||||||
Total | 131 | 46 | 33 | 52 |
Company- Wide | Subtotals by Segment | |||||||||||||||||||||||||
Manufacturing Locations | Bedding Products | Specialized Products | Furniture, Flooring & Textile Products | |||||||||||||||||||||||
Owned | 69 | 34 | 13 | 22 | ||||||||||||||||||||||
Leased | 62 | 12 | 20 | 30 | ||||||||||||||||||||||
Total | 131 | 46 | 33 | 52 |
Name | Age | Position | ||||||||||||
J. Mitchell Dolloff | 56 | President and Chief Executive Officer | ||||||||||||
Karl G. Glassman | 63 | Executive Chairman of the Board | ||||||||||||
Jeffrey L. Tate | 52 | Executive Vice President and Chief Financial Officer | ||||||||||||
Steven K. Henderson | 61 | Executive Vice President, President—Specialized Products and Furniture, Flooring & Textile Products | ||||||||||||
Benjamin M. Burns | 44 | Senior Vice President, Business Support Services | ||||||||||||
Scott S. Douglas | 62 | Senior Vice President, General Counsel & Secretary | ||||||||||||
J. Tyson Hagale | 44 | Senior Vice President, President—Bedding Products | ||||||||||||
Susan R. McCoy | 57 | Senior Vice President, Investor Relations | ||||||||||||
Christina Ptasinski | 62 | Senior Vice President, Chief Human Resources Officer | ||||||||||||
Tammy M. Trent | 55 | 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 2021 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
November 2021 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
December 2021 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
Total | — | $ | — | — |
Page No. | ||||||||
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• | Results of Operations 2020 vs 2019 | |||||||
• | ||||||||
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2021 | 2020 | 2019 | |||||||||||||||
(Dollar amounts in millions, except for per share data) | |||||||||||||||||
Net trade sales | $ | 5,073 | $ | 4,280 | $ | 4,753 | |||||||||||
Earnings before interest and taxes (EBIT) | 596 | 408 | 487 | ||||||||||||||
Cash from operations | 271 | 603 | 668 | ||||||||||||||
Adjusted working capital 1 | 713 | 397 | 492 | ||||||||||||||
Total debt | 2,090 | 1,900 | 2,118 | ||||||||||||||
Dividends per share | $ | 1.66 | $ | 1.60 | $ | 1.58 |
Current Targets | ||||||||
Revenue Growth | 6-9% | |||||||
Margin Increase | 1% | |||||||
Dividend Yield | 3% | |||||||
Stock Buyback | 1% | |||||||
Total Shareholder Return | 11-14% |
Fair value in excess of carrying value | Goodwill | ||||||||||||||||
Goodwill impairment testing as performed in the second quarter 2021 | Goodwill impairment testing as performed in the second quarter 2020 | As of December 31, 2021 | |||||||||||||||
Aerospace | 28 | % | 51 | % | $68 million | ||||||||||||
Work Furniture | 85 | % | 25 | % | $101 million |
(Dollar amounts in millions, except per share data) | Amount | % 1 | |||||||||
Net trade sales: | |||||||||||
Year ended December 31, 2020 | $ | 4,280 | |||||||||
Divestitures | (32) | (1) | % | ||||||||
2020 sales excluding divestitures | 4,248 | ||||||||||
Approximate volume gains | 172 | 4 | |||||||||
Approximate raw material-related inflation and currency impact | 597 | 14 | |||||||||
Organic sales | 769 | 18 | |||||||||
Acquisition sales growth | 56 | 2 | |||||||||
Year ended December 31, 2021 | $ | 5,073 | 19 | % | |||||||
Earnings: | |||||||||||
(Dollar amounts, net of tax) | |||||||||||
Year ended December 31, 2020 | $ | 253 | |||||||||
Gain on sale of real estate | 21 | ||||||||||
2020 goodwill impairment | 25 | ||||||||||
2020 restructuring-related charges | 6 | ||||||||||
2020 note impairment | 6 | ||||||||||
2020 stock write-off from a prior year divestiture | 3 | ||||||||||
Other items, primarily including higher volume, metal margin expansion in our Steel Rod business, and pricing discipline | 88 | ||||||||||
Year ended December 31, 2021 | $ | 402 | |||||||||
2020 Earnings Per Diluted Share | $ | 1.86 | |||||||||
2021 Earnings Per Diluted Share | $ | 2.94 |
Year Ended December 31 | |||||||||||
2021 | 2020 | ||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | |||||||
Increases (decreases) in rate resulting from: | |||||||||||
State taxes, net of federal benefit | 1.5 | .8 | |||||||||
Tax effect of foreign operations | (.9) | (2.2) | |||||||||
Global intangible low-taxed income | .5 | (.3) | |||||||||
Current and deferred foreign withholding taxes | 2.3 | 2.7 | |||||||||
Stock-based compensation | (.5) | (.6) | |||||||||
Change in valuation allowance | — | .8 | |||||||||
Change in uncertain tax positions, net | — | .6 | |||||||||
Goodwill impairment | — | 1.6 | |||||||||
Other permanent differences, net | (.8) | (1.3) | |||||||||
Other, net | (.2) | (.3) | |||||||||
Effective tax rate | 22.9 | % | 22.8 | % |
(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 | $ | 314 | |||||||||
Lower restructuring-related charges ($9 in 2019; $6 in 2020) | 3 | ||||||||||
Goodwill impairment | (25) | ||||||||||
Note impairment | (6) | ||||||||||
Stock write-off from a prior year divestiture | (3) | ||||||||||
Other items, including COVID-related economic declines, partially offset by fixed cost reductions, lower interest expense, and lower taxes | (30) | ||||||||||
Year ended December 31, 2020 | $ | 253 | |||||||||
2019 Earnings Per Diluted Share | $ | 2.32 | |||||||||
2020 Earnings Per Diluted Share | $ | 1.86 |
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 | 1.3 | |||||||||
Tax effect of foreign operations | (2.2) | (1.7) | |||||||||
Global intangible low-taxed income | (.3) | 2.3 | |||||||||
Current and deferred foreign withholding taxes | 2.7 | 1.3 | |||||||||
Stock-based compensation | (.6) | (1.1) | |||||||||
Change in valuation allowance | .8 | .4 | |||||||||
Change in uncertain tax positions, net | .6 | (.3) | |||||||||
Goodwill impairment | 1.6 | — | |||||||||
Other permanent differences, net | (1.3) | (.3) | |||||||||
Other, net | (.3) | (.7) | |||||||||
Effective tax rate | 22.8 | % | 22.2 | % |
(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 | $ | 192.4 | $ | 214.9 | $ | (22.5) | (10.5) | % | 9.4 | % | 9.5 | % | |||||||||||||||||||||||
Specialized Products | 92.0 | 169.9 | (77.9) | (45.9) | 10.3 | 15.9 | |||||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 126.5 | 102.3 | 24.2 | 23.7 | 9.4 | 7.1 | |||||||||||||||||||||||||||||
Intersegment eliminations & other | (3.4) | (.3) | (3.1) | ||||||||||||||||||||||||||||||||
Total EBIT | $ | 407.5 | $ | 486.8 | $ | (79.3) | (16.3) | % | 9.5 | % | 10.2 | % | |||||||||||||||||||||||
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) | 2021 | 2020 | |||||||||
Current assets | $ | 2,065.3 | $ | 1,658.1 | |||||||
Current liabilities | 1,335.7 | 1,006.0 | |||||||||
Working capital | 729.6 | 652.1 | |||||||||
Cash and cash equivalents | 361.7 | 348.9 | |||||||||
Current debt maturities and current portion of operating lease liabilities | 345.1 | 93.3 | |||||||||
Adjusted working capital | $ | 713.0 | $ | 396.5 | |||||||
Annualized sales 1 | $ | 5,331.6 | $ | 4,728.0 | |||||||
Working capital as a percent of annualized sales | 13.7 | % | 13.8 | % | |||||||
Adjusted working capital as a percent of annualized sales | 13.4 | % | 8.4 | % |
Three Primary Components of our Working Capital | ||||||||||||||||||||||||||||||||||||||
Amount (in millions) | Days | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Trade Receivables | $ | 620 | $ | 535 | $ | 564 | DSO 1 | 42 | 47 | 43 | ||||||||||||||||||||||||||||
Inventories | 993 | 692 | 676 | DIO 2 | 76 | 74 | 67 | |||||||||||||||||||||||||||||||
Accounts Payable | 614 | 552 | 463 | DPO 3 | 53 | 55 | 45 |
Cash Requirements | Short-Term | Long-Term | ||||||||||||
(Dollar amounts in millions) | ||||||||||||||
Current and long-term debt, excluding finance leases 1 | $ | 300 | $ | 1,786 | ||||||||||
Operating and finance leases 2 | 51 | 174 | ||||||||||||
Purchase obligations 3 | 581 | 3 | ||||||||||||
Interest payments 4 | 76 | 754 | ||||||||||||
Deemed repatriation tax payable 5 | — | 28 | ||||||||||||
Liability for pension benefits 6 | 3 | 42 | ||||||||||||
(Dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Total debt excluding credit facility/commercial paper | $ | 2,090.3 | $ | 1,900.2 | $ | 2,056.1 | |||||||||||
Less: Current maturities of long-term debt | 300.6 | 50.9 | 51.1 | ||||||||||||||
Scheduled maturities of long-term debt | 1,789.7 | 1,849.3 | 2,005.0 | ||||||||||||||
Average interest rates 1 | 3.7 | % | 3.7 | % | 3.6 | % | |||||||||||
Average maturities in years 1 | 10.8 | 5.3 | 6.0 | ||||||||||||||
Credit facility/commercial paper 2 | — | — | 61.5 | ||||||||||||||
Weighted average interest rate on year-end balance | — | % | — | % | 2.0 | % | |||||||||||
Average interest rate during the year | .2 | % | 2.0 | % | 2.6 | % | |||||||||||
Total long-term debt | 1,789.7 | 1,849.3 | 2,066.5 | ||||||||||||||
Deferred income taxes and other liabilities | 533.3 | 519.6 | 518.9 | ||||||||||||||
Equity | 1,648.6 | 1,425.1 | 1,341.9 | ||||||||||||||
Total capitalization | $ | 3,971.6 | $ | 3,794.0 | $ | 3,927.3 | |||||||||||
Unused committed credit: 2 | |||||||||||||||||
Long-term | $ | 1,200.0 | $ | 1,200.0 | $ | 1,138.5 | |||||||||||
Short-term | — | — | — | ||||||||||||||
Total unused committed credit | $ | 1,200.0 | $ | 1,200.0 | $ | 1,138.5 | |||||||||||
Cash and cash equivalents | $ | 361.7 | $ | 348.9 | $ | 247.6 | |||||||||||
(Dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Total program authorized | $ | 1,200.0 | $ | 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 | |||||||||||
Description | Judgments and Uncertainty | Changes in Estimate and 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. | We had no goodwill impairments in 2021 or 2019. 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. Two reporting units had fair values in excess of carrying value of less than 100% in 2021 as discussed in Note C on page 83 of the Notes to Consolidated Financial Statements. At December 31, 2021, we had $1.4 billion of goodwill. Information regarding material assumptions used to determine if a goodwill impairment exists can be found in Note A on page 75 and Note C on page 83 of the Notes to Consolidated Financial Statements. Our assumptions are 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 Uncertainty | Changes in Estimate and 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, 2021, net property, plant and equipment was $782 million, net intangible assets (other than goodwill) was $708 million, and operating right-of-use assets was $193 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. | 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, 2021, the reserve for obsolete and slow-moving inventory was $44 million (approximately 4% of inventories). This is slightly lower than the reserves at December 31, 2020 and 2019, representing approximately 6% of inventories. There has been no change to our policies for establishing reserves, and we do not expect significant changes to our historical obsolescence levels. 2021 inventories increased due to inflation in steel-related raw material prices, higher freight costs, and stock build to ensure consistent supply to our customers. Our recent increased inventory levels are not indicative of slow-moving or potential inventory obsolescence. Additions to inventory reserves in 2021 were $14 million, which is equal to our $14 million three-year average. |
Description | Judgments and Uncertainty | Changes in Estimate and 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. | 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: ($3) million in 2021, $17 million in 2020, and $3 million in 2019. The 2021 expense decrease reflects lower qualitative risk compared to 2020 due to improved macroeconomic conditions and continued strong customer payment trends. The expense for 2020 was impacted by one account that is now fully reserved at $23 million, including $22 million of a note receivable and $1 million for a trade account receivable ($9 million in 2020), as discussed in Note H on page 92 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 in 2020 to reflect this increased risk but decreased this reserve in 2021 as conditions improved. Excluding the note receivable discussed above, the average annual amount of bad debt expense associated with trade accounts receivable was less than $4 million (significantly less than 1% of annual net trade sales) over the last three years. At December 31, 2021, our allowances for doubtful trade accounts receivable were $15 million (less than 3% of our trade receivables of $635 million). |
Description | Judgments and Uncertainty | Changes in Estimate and Effect if Actual Results Differ from Assumptions | ||||||||||||
Pension Accounting | ||||||||||||||
For our pension plans, we must estimate the cost of benefits to be provided (well into the future) and the current value of those benefit obligations. | The pension liability calculation contains uncertainties because it requires management'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. | Our US plans represent approximately 84% of our pension benefit obligations. Each 25 basis point decrease in the discount rate for our U.S. plans increases pension expense by $.6 million and increases the plans’ benefit obligations by $8.6 million. Each 25 basis point reduction in the expected return on assets for our U.S. plans 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. | We have recorded a litigation contingency accrual of $1 million or less at the end of each year for the last three years. There were no material adjustments to the accrual, including cash payments and expense, for each of the years ended December 31, 2021, 2020, and 2019, respectively. See Note T on page 119 of the Notes to Consolidated Financial Statements for additional information. |
Description | Judgments and Uncertainty | Changes in Estimate and 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, 2021 and 2020, we had $13 million and $14 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. |
Long-term debt as of December 31, | Scheduled Maturity Date | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Principal fixed rate debt | $ | 300.0 | $ | — | $ | 300.0 | $ | — | $ | — | $ | 1,500.0 | $ | 2,100.0 | $ | 1,600.0 | |||||||||||||||||||||||||||||||
Average stated interest rate | 3.40 | % | — | 3.80 | % | — | — | 3.80 | % | 3.74 | % | 3.82 | % | ||||||||||||||||||||||||||||||||||
Principal variable rate debt | — | — | — | — | — | 3.8 | 3.8 | 308.8 | |||||||||||||||||||||||||||||||||||||||
Unamortized discounts and deferred loan costs | (17.7) | (12.7) | |||||||||||||||||||||||||||||||||||||||||||||
Commercial Paper 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous debt, primarily finance leases | 4.2 | 4.1 | |||||||||||||||||||||||||||||||||||||||||||||
Total debt | 2,090.3 | 1,900.2 | |||||||||||||||||||||||||||||||||||||||||||||
Less: current maturities | 300.6 | 50.9 | |||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 1,789.7 | $ | 1,849.3 |
Functional Currency (amounts in millions) | 2021 | 2020 | ||||||||||||
European Currencies 1 | $ | 528.4 | $ | 382.1 | ||||||||||
Chinese Yuan | 269.9 | 260.9 | ||||||||||||
Canadian Dollar | 218.6 | 210.5 | ||||||||||||
Mexican Peso | 47.1 | 38.6 | ||||||||||||
Other | 67.8 | 59.9 | ||||||||||||
Total | $ | 1,131.8 | $ | 952.0 |
Page No. | |||||
/s/ J. MITCHELL DOLLOFF | /s/ JEFFREY L. TATE | |||||||
J. Mitchell Dolloff President and Chief Executive Officer | Jeffrey L. Tate Executive Vice President and Chief Financial Officer | |||||||
February 22, 2022 | February 22, 2022 |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions, except per share data) | 2021 | 2020 | 2019 | ||||||||||||||
Net trade sales | $ | 5,072.6 | $ | 4,280.2 | $ | 4,752.5 | |||||||||||
Cost of goods sold | 4,034.3 | 3,376.1 | 3,728.5 | ||||||||||||||
Gross profit | 1,038.3 | 904.1 | 1,024.0 | ||||||||||||||
Selling and administrative expenses | 422.1 | 424.4 | 469.7 | ||||||||||||||
Amortization of intangibles | 67.5 | 65.2 | 63.3 | ||||||||||||||
Impairments | — | 29.4 | 7.8 | ||||||||||||||
Net gain on sale of assets and businesses | (29.4) | — | (5.0) | ||||||||||||||
Other (income) expense, net | (17.9) | (22.4) | 1.4 | ||||||||||||||
Earnings before interest and income taxes | 596.0 | 407.5 | 486.8 | ||||||||||||||
Interest expense | 76.5 | 82.7 | 90.7 | ||||||||||||||
Interest income | 2.6 | 3.1 | 7.4 | ||||||||||||||
Earnings before income taxes | 522.1 | 327.9 | 403.5 | ||||||||||||||
Income taxes | 119.5 | 74.8 | 89.4 | ||||||||||||||
Net earnings | 402.6 | 253.1 | 314.1 | ||||||||||||||
(Earnings) attributable to noncontrolling interest, net of tax | (.2) | (.1) | (.1) | ||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 402.4 | $ | 253.0 | $ | 314.0 | |||||||||||
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||
Basic | $ | 2.95 | $ | 1.86 | $ | 2.33 | |||||||||||
Diluted | $ | 2.94 | $ | 1.86 | $ | 2.32 |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Net earnings | $ | 402.6 | $ | 253.1 | $ | 314.1 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments | (18.2) | 27.8 | 5.0 | ||||||||||||||
Cash flow hedges | 10.5 | 5.5 | 7.7 | ||||||||||||||
Defined benefit pension plans | 21.7 | (9.0) | (11.9) | ||||||||||||||
Other comprehensive income | 14.0 | 24.3 | .8 | ||||||||||||||
Comprehensive income | 416.6 | 277.4 | 314.9 | ||||||||||||||
Less: comprehensive (income) attributable to noncontrolling interest | (.1) | — | (.1) | ||||||||||||||
Comprehensive income attributable to Leggett & Platt, Inc. | $ | 416.5 | $ | 277.4 | $ | 314.8 |
December 31 | |||||||||||
(Amounts in millions, except per share data) | 2021 | 2020 | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 361.7 | $ | 348.9 | |||||||
Trade receivables, net | 620.0 | 535.2 | |||||||||
Other receivables, net | 31.5 | 28.4 | |||||||||
Total receivables, net | 651.5 | 563.6 | |||||||||
Inventories | 993.2 | 691.5 | |||||||||
Prepaid expenses and other current assets | 58.9 | 54.1 | |||||||||
Total current assets | 2,065.3 | 1,658.1 | |||||||||
Property, Plant and Equipment—at cost | |||||||||||
Machinery and equipment | 1,435.0 | 1,396.2 | |||||||||
Buildings and other | 772.1 | 740.9 | |||||||||
Land | 44.1 | 43.6 | |||||||||
Total property, plant and equipment | 2,251.2 | 2,180.7 | |||||||||
Less accumulated depreciation | 1,469.7 | 1,395.9 | |||||||||
Net property, plant and equipment | 781.5 | 784.8 | |||||||||
Other Assets | |||||||||||
Goodwill | 1,449.6 | 1,388.8 | |||||||||
Other intangibles, net | 707.8 | 701.6 | |||||||||
Operating lease right-of-use assets | 192.6 | 161.6 | |||||||||
Sundry | 110.5 | 105.1 | |||||||||
Total other assets | 2,460.5 | 2,357.1 | |||||||||
TOTAL ASSETS | $ | 5,307.3 | $ | 4,800.0 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current maturities of long-term debt | $ | 300.6 | $ | 50.9 | |||||||
Current portion of operating lease liabilities | 44.5 | 42.4 | |||||||||
Accounts payable | 613.8 | 552.2 | |||||||||
Accrued expenses | 284.6 | 275.2 | |||||||||
Other current liabilities | 92.2 | 85.3 | |||||||||
Total current liabilities | 1,335.7 | 1,006.0 | |||||||||
Long-term Liabilities | |||||||||||
Long-term debt | 1,789.7 | 1,849.3 | |||||||||
Operating lease liabilities | 153.0 | 122.1 | |||||||||
Other long-term liabilities | 162.9 | 192.1 | |||||||||
Deferred income taxes | 217.4 | 205.4 | |||||||||
Total long-term liabilities | 2,323.0 | 2,368.9 | |||||||||
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 | 557.9 | 543.2 | |||||||||
Retained earnings | 2,973.0 | 2,797.2 | |||||||||
Accumulated other comprehensive (loss) | (38.3) | (52.4) | |||||||||
Less treasury stock—at cost (65.4 and 66.2 shares at December 31, 2021 and 2020, respectively) | (1,846.6) | (1,865.4) | |||||||||
Total Leggett & Platt, Inc. equity | 1,648.0 | 1,424.6 | |||||||||
Noncontrolling interest | .6 | .5 | |||||||||
Total equity | 1,648.6 | 1,425.1 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 5,307.3 | $ | 4,800.0 | |||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Year Ended December 31 | |||||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net earnings | $ | 402.6 | $ | 253.1 | $ | 314.1 | |||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
Depreciation | 116.5 | 119.4 | 117.5 | ||||||||||||||
Amortization of intangibles and supply agreements | 70.8 | 70.0 | 74.4 | ||||||||||||||
Long-lived asset impairment | — | 4.0 | 7.8 | ||||||||||||||
Goodwill impairment | — | 25.4 | — | ||||||||||||||
(Decrease) increase in provision for losses on accounts and notes receivable | (3.4) | 17.1 | 2.8 | ||||||||||||||
Writedown of inventories | 13.7 | 13.6 | 15.1 | ||||||||||||||
Net gain from sales of assets and businesses | (29.4) | — | (5.0) | ||||||||||||||
Deferred income tax (benefit) expense | (8.5) | (20.9) | .8 | ||||||||||||||
Stock-based compensation | 34.2 | 29.2 | 33.0 | ||||||||||||||
Pension expense, net of contributions | 1.1 | 1.9 | 4.3 | ||||||||||||||
Other, net | 11.3 | 9.5 | 2.2 | ||||||||||||||
Increases/decreases in, excluding effects from acquisitions and divestitures: | |||||||||||||||||
Accounts and other receivables | (75.0) | 24.3 | 53.0 | ||||||||||||||
Inventories | (305.0) | (31.9) | 73.8 | ||||||||||||||
Other current assets | (6.7) | 4.8 | (2.8) | ||||||||||||||
Accounts payable | 63.5 | 83.0 | (39.4) | ||||||||||||||
Accrued expenses and other current liabilities | (14.4) | .1 | 16.4 | ||||||||||||||
Net Cash Provided by Operating Activities | 271.3 | 602.6 | 668.0 | ||||||||||||||
Investing Activities | |||||||||||||||||
Additions to property, plant and equipment | (106.6) | (66.2) | (143.1) | ||||||||||||||
Purchases of companies, net of cash acquired | (152.6) | — | (1,265.1) | ||||||||||||||
Proceeds from sales of assets and businesses | 38.5 | 14.8 | 5.5 | ||||||||||||||
Other, net | (5.5) | 2.4 | (15.5) | ||||||||||||||
Net Cash Used for Investing Activities | (226.2) | (49.0) | (1,418.2) | ||||||||||||||
Financing Activities | |||||||||||||||||
Additions to long-term debt | 492.8 | — | 993.3 | ||||||||||||||
Payments on long-term debt | (306.6) | (157.5) | (37.6) | ||||||||||||||
Change in commercial paper and short-term debt | (1.3) | (70.3) | (8.7) | ||||||||||||||
Dividends paid | (218.3) | (211.5) | (204.6) | ||||||||||||||
Issuances of common stock | 3.5 | 1.5 | 9.3 | ||||||||||||||
Purchases of common stock | (9.8) | (10.6) | (16.4) | ||||||||||||||
Proceeds from interest rate treasury lock | 10.2 | — | — | ||||||||||||||
Additional consideration paid for acquisitions | (.2) | (8.4) | (1.1) | ||||||||||||||
Other, net | (3.1) | (4.9) | (3.1) | ||||||||||||||
Net Cash (Used for) Provided by Financing Activities | (32.8) | (461.7) | 731.1 | ||||||||||||||
Effect of Exchange Rate Changes on Cash | .5 | 9.4 | (1.4) | ||||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 12.8 | 101.3 | (20.5) | ||||||||||||||
Cash and Cash Equivalents—Beginning of Year | 348.9 | 247.6 | 268.1 | ||||||||||||||
Cash and Cash Equivalents—End of Year | $ | 361.7 | $ | 348.9 | $ | 247.6 | |||||||||||
Supplemental Information | |||||||||||||||||
Interest paid (net of amounts capitalized) | $ | 66.6 | $ | 74.8 | $ | 77.3 | |||||||||||
Income taxes paid | 126.8 | 108.6 | 84.2 | ||||||||||||||
Property, plant and equipment acquired through finance leases | 1.9 | 1.8 | 2.1 | ||||||||||||||
Capital expenditures in accounts payable | 4.3 | 7.1 | 6.8 | ||||||||||||||
Prepaid income taxes and taxes receivable (recovered) applied against the deemed repatriation tax liability | 4.0 | 1.2 | (.6) | ||||||||||||||
(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, 2018 | 198.8 | $ | 2.0 | $ | 527.1 | $ | 2,663.0 | $ | (77.6) | (68.3) | $ | (1,908.3) | $ | .6 | $ | 1,206.8 | |||||||||||||||||||||||||||||||||||||
— | — | — | .1 | — | — | — | — | .1 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning balance, January 1, 2019 | 198.8 | 2.0 | 527.1 | 2,663.1 | (77.6) | (68.3) | (1,908.3) | .6 | 1,206.9 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 314.0 | — | — | — | .1 | 314.1 | ||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,763.9 | $ | (76.8) | (67.0) | $ | (1,883.8) | $ | .5 | $ | 1,341.9 | |||||||||||||||||||||||||||||||||||||
— | — | — | (2.5) | — | — | — | — | (2.5) | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning balance, January 1, 2020 | 198.8 | 2.0 | 536.1 | 2,761.4 | (76.8) | (67.0) | (1,883.8) | .5 | 1,339.4 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 253.0 | — | — | — | .1 | 253.1 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | 5.5 | (217.2) | — | — | — | — | (211.7) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,797.2 | $ | (52.4) | (66.2) | $ | (1,865.4) | $ | .5 | $ | 1,425.1 | |||||||||||||||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | — | — | — | 402.4 | — | — | — | .2 | 402.6 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | 5.2 | (226.6) | — | — | — | — | (221.4) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | (.3) | (12.3) | — | (12.3) | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | (20.2) | — | — | 1.1 | 31.1 | — | 10.9 | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | 14.1 | — | — | (.1) | 14.0 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | — | 29.6 | — | — | — | — | — | 29.6 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of remaining interest in noncontrolling interest | — | — | (.2) | — | — | — | — | (1.2) | (1.4) | ||||||||||||||||||||||||||||||||||||||||||||
Partial sale of business resulting in noncontrolling interest | — | — | .3 | — | — | — | — | 1.2 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 198.8 | $ | 2.0 | $ | 557.9 | $ | 2,973.0 | $ | (38.3) | (65.4) | $ | (1,846.6) | $ | .6 | $ | 1,648.6 |
As Reported under FIFO | LIFO Calculations | Computed as if the LIFO Methodology was Utilized | |||||||||||||||
Consolidated Statement of Operations for the year ended December 31, 2021 | |||||||||||||||||
Cost of goods sold | $ | 4,034.3 | $ | 66.9 | $ | 4,101.2 | |||||||||||
Earnings before interest and income taxes | 596.0 | (66.9) | 529.1 | ||||||||||||||
Income taxes | 119.5 | (16.5) | 103.0 | ||||||||||||||
Net earnings | 402.6 | (50.4) | 352.2 | ||||||||||||||
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders: | |||||||||||||||||
Basic | $ | 2.95 | $ | (.37) | $ | 2.58 | |||||||||||
Diluted | $ | 2.94 | $ | (.37) | $ | 2.57 | |||||||||||
Consolidated Balance Sheet as of December 31, 2021 | |||||||||||||||||
Inventories | $ | 993.2 | $ | (112.9) | $ | 880.3 | |||||||||||
Deferred income taxes | 217.4 | (27.7) | 189.7 | ||||||||||||||
Retained earnings | 2,973.0 | (85.2) | 2,887.8 | ||||||||||||||
Consolidated Statement of Cash Flows for the year ended December 31, 2021 | |||||||||||||||||
Net earnings | $ | 402.6 | $ | (50.4) | $ | 352.2 | |||||||||||
Writedown of inventories | 13.7 | (2.2) | 11.5 | ||||||||||||||
Deferred income tax (benefit) expense | (8.5) | (16.5) | (25.0) | ||||||||||||||
Inventories | (305.0) | 69.1 | (235.9) |
December 31, 2021 | December 31, 2020 | ||||||||||
Finished goods | $ | 429.1 | $ | 303.8 | |||||||
Work in process | 66.9 | 47.2 | |||||||||
Raw materials and supplies | 497.2 | 340.5 | |||||||||
Inventories | $ | 993.2 | $ | 691.5 |
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 | 1-20 years | 15 years |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Bedding Products | |||||||||||||||||
Bedding Group | $ | 2,455.9 | $ | 2,039.3 | $ | 2,254.3 | |||||||||||
2,455.9 | 2,039.3 | 2,254.3 | |||||||||||||||
Specialized Products | |||||||||||||||||
Automotive Group | 801.4 | 719.0 | 816.1 | ||||||||||||||
Aerospace Products Group | 102.9 | 102.4 | 157.7 | ||||||||||||||
Hydraulic Cylinders Group | 94.6 | 69.8 | 93.0 | ||||||||||||||
998.9 | 891.2 | 1,066.8 | |||||||||||||||
Furniture, Flooring & Textile Products | |||||||||||||||||
Home Furniture Group | 434.3 | 320.9 | 357.4 | ||||||||||||||
Work Furniture Group | 284.1 | 231.1 | 297.3 | ||||||||||||||
Flooring & Textile Products Group | 899.4 | 797.7 | 776.7 | ||||||||||||||
1,617.8 | 1,349.7 | 1,431.4 | |||||||||||||||
$ | 5,072.6 | $ | 4,280.2 | $ | 4,752.5 |
Year Ended | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Goodwill Impairment | Other Long-Lived Asset Impairments 2 | Total Impairments | Other Long-Lived Asset Impairments 2 | ||||||||||||||||||||
Bedding Products | $ | — | $ | .3 | $ | .3 | $ | 4.4 | |||||||||||||||
Specialized Products | 25.4 | — | 25.4 | — | |||||||||||||||||||
Furniture, Flooring & Textile Products | — | .2 | .2 | 3.4 | |||||||||||||||||||
Unallocated 1 | — | 3.5 | 3.5 | — | |||||||||||||||||||
Total impairment charges | $ | 25.4 | $ | 4.0 | $ | 29.4 | $ | 7.8 |
2021 | ||||||||||||||||||||||||||
Fair Value over Carrying Value divided by Carrying Value | December 31, 2021 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 | $ | 67.5 | 7.8% | 3.0 | % | 10.0% | ||||||||||||||||||||
50% - 100% 2 | 101.0 | 5.5 | 3.0 | 9.0 | ||||||||||||||||||||||
101% - 300% | 1,086.9 | 3.1 - 3.3 | 3.0 | 8.0 - 8.5 | ||||||||||||||||||||||
Greater than 300% | 194.2 | 2.9 - 10.4 | 3.0 | 9.0 | ||||||||||||||||||||||
$ | 1,449.6 | 2.9% - 10.4% | 3.0 | % | 8.0% - 10.0% |
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% 2 | $ | 97.2 | 2.1% | 3.0 | % | 9.0% | ||||||||||||||||||||
50% - 100% 3 | 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 | ||||||||||||||||||||||
Greater than 300% | 127.6 | 6.7 | 3.0 | 9.0 | ||||||||||||||||||||||
$ | 1,388.8 | 1.6% - 6.7% | 3.0 | % | 8.5% - 10.0% |
Bedding Products | Specialized Products | Furniture, Flooring & Textile Products | Total | ||||||||||||||||||||
Net goodwill as of January 1, 2020 | $ | 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 | |||||||||||||||||||
Additions for current year acquisitions | 58.3 | 8.2 | 4.4 | 70.9 | |||||||||||||||||||
Reductions for sale of business | (1.3) | — | — | (1.3) | |||||||||||||||||||
Foreign currency translation adjustment | (5.6) | (2.5) | (.7) | (8.8) | |||||||||||||||||||
Net goodwill as of December 31, 2021 | $ | 908.3 | $ | 192.7 | $ | 348.6 | $ | 1,449.6 | |||||||||||||||
Net goodwill as of December 31, 2021 is comprised of: | |||||||||||||||||||||||
Gross goodwill | $ | 913.7 | $ | 284.8 | $ | 599.2 | $ | 1,797.7 | |||||||||||||||
Accumulated impairment losses | (5.4) | (92.1) | (250.6) | (348.1) | |||||||||||||||||||
Net goodwill as of December 31, 2021 | $ | 908.3 | $ | 192.7 | $ | 348.6 | $ | 1,449.6 |
December 31, 2021 | Year Ended December 31, 2021 | ||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Intangibles | Gross carrying amounts of items acquired | Weighted average amortization in years for items acquired | |||||||||||||||||||||||||
Customer-related intangibles | $ | 610.6 | $ | 172.0 | $ | 438.6 | $ | 64.9 | 15.0 | ||||||||||||||||||||
Technology | 183.5 | 38.4 | 145.1 | 5.4 | 8.0 | ||||||||||||||||||||||||
Patents and trademarks | 139.8 | 47.2 | 92.6 | 8.7 | 15.1 | ||||||||||||||||||||||||
Non-compete agreements, supply agreements and other | 72.0 | 40.5 | 31.5 | 4.3 | 2.9 | ||||||||||||||||||||||||
Total | $ | 1,005.9 | $ | 298.1 | $ | 707.8 | $ | 83.3 | 13.9 | ||||||||||||||||||||
December 31, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||
Customer-related intangibles | $ | 572.6 | $ | 156.1 | $ | 416.5 | $ | .2 | 15.0 | ||||||||||||||||||||
Technology | 178.2 | 25.5 | 152.7 | — | 0 | ||||||||||||||||||||||||
Patents and trademarks | 134.6 | 42.8 | 91.8 | 1.0 | 19.3 | ||||||||||||||||||||||||
Non-compete agreements, supply agreements and other | 79.8 | 39.2 | 40.6 | 6.2 | 6.2 | ||||||||||||||||||||||||
Total | $ | 965.2 | $ | 263.6 | $ | 701.6 | $ | 7.4 | 8.2 |
2022 | $ | 69.9 | |||
2023 | 68.2 | ||||
2024 | 60.4 | ||||
2025 | 58.3 | ||||
2026 | 56.5 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Charged to other (income) expense, net: | |||||||||||||||||
Severance and other restructuring costs | $ | (.3) | $ | 7.6 | $ | 8.1 | |||||||||||
Charged to cost of goods sold: | |||||||||||||||||
Inventory obsolescence and other | — | .3 | (5.3) | ||||||||||||||
Total restructuring and restructuring-related costs | $ | (.3) | $ | 7.9 | $ | 2.8 | |||||||||||
Amount of total that represents cash charges | $ | (.3) | $ | 7.6 | $ | 8.1 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Bedding Products | $ | .1 | $ | 2.6 | $ | 1.2 | |||||||||||
Specialized Products | (.9) | 3.9 | — | ||||||||||||||
Furniture, Flooring & Textile Products | .5 | 1.4 | 1.6 | ||||||||||||||
Total | $ | (.3) | $ | 7.9 | $ | 2.8 |
Balance at December 31, 2019 | Add: 2020 Charges | Less: 2020 Payments | Balance at December 31, 2020 | Add: 2021 Charges | Less: 2021 Payments | Balance at December 31, 2021 | |||||||||||||||||||||||||||||||||||
Termination benefits | $ | 3.5 | $ | 7.0 | $ | 7.1 | $ | 3.4 | $ | (.4) | $ | 2.2 | $ | .8 | |||||||||||||||||||||||||||
Contract termination costs | — | .2 | — | .2 | — | .2 | — | ||||||||||||||||||||||||||||||||||
Other restructuring costs | .7 | .4 | .6 | .5 | .1 | .1 | .5 | ||||||||||||||||||||||||||||||||||
$ | 4.2 | $ | 7.6 | $ | 7.7 | $ | 4.1 | $ | (.3) | $ | 2.5 | $ | 1.3 |
Year Ended December 31 | |||||||||||||||||||||||||||||
Trade 1 Sales | Inter- Segment Sales | Total Segment Sales | EBIT | Depreciation and Amortization | |||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||
Bedding Products 2 | $ | 2,455.9 | $ | 44.1 | $ | 2,500.0 | $ | 321.3 | $ | 106.8 | |||||||||||||||||||
Specialized Products | 998.9 | 3.6 | 1,002.5 | 115.9 | 44.8 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,617.8 | 13.4 | 1,631.2 | 159.5 | 24.0 | ||||||||||||||||||||||||
Intersegment eliminations and other 3 | (.7) | 11.7 | |||||||||||||||||||||||||||
$ | 5,072.6 | $ | 61.1 | $ | 5,133.7 | $ | 596.0 | $ | 187.3 | ||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Bedding Products | $ | 2,039.3 | $ | 32.2 | $ | 2,071.5 | $ | 192.4 | $ | 106.7 | |||||||||||||||||||
Specialized Products 4 | 891.2 | 2.8 | 894.0 | 92.0 | 44.3 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,349.7 | 13.8 | 1,363.5 | 126.5 | 25.5 | ||||||||||||||||||||||||
Intersegment eliminations and other 3,5 | (3.4) | 12.9 | |||||||||||||||||||||||||||
$ | 4,280.2 | $ | 48.8 | $ | 4,329.0 | $ | 407.5 | $ | 189.4 | ||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Bedding Products | $ | 2,254.3 | $ | 41.3 | $ | 2,295.6 | $ | 214.9 | $ | 107.3 | |||||||||||||||||||
Specialized Products | 1,066.8 | 3.2 | 1,070.0 | 169.9 | 41.8 | ||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 1,431.4 | 16.0 | 1,447.4 | 102.3 | 25.7 | ||||||||||||||||||||||||
Intersegment eliminations and other 3 | (.3) | 17.1 | |||||||||||||||||||||||||||
$ | 4,752.5 | $ | 60.5 | $ | 4,813.0 | $ | 486.8 | $ | 191.9 |
Year Ended December 31 | |||||||||||||||||
Assets | Additions to Property, Plant and Equipment | Acquired Companies’ Long-Lived Assets | |||||||||||||||
2021 | |||||||||||||||||
Bedding Products | $ | 836.0 | $ | 67.1 | $ | 136.6 | |||||||||||
Specialized Products | 316.7 | 20.6 | 25.1 | ||||||||||||||
Furniture, Flooring & Textile Products | 373.5 | 9.8 | 6.2 | ||||||||||||||
Average current liabilities included in segment numbers above | 814.1 | — | — | ||||||||||||||
Unallocated assets and other | 2,828.5 | 9.1 | — | ||||||||||||||
Difference between average assets and year-end balance sheet | 138.5 | — | — | ||||||||||||||
$ | 5,307.3 | $ | 106.6 | $ | 167.9 | ||||||||||||
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 | 2,759.1 | 18.0 | — | ||||||||||||||
Difference between average assets and year-end balance sheet | (11.2) | — | — | ||||||||||||||
$ | 4,800.0 | $ | 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 | 2,689.7 | 34.7 | — | ||||||||||||||
Difference between average assets and year-end balance sheet | (128.8) | — | — | ||||||||||||||
$ | 4,855.4 | $ | 143.1 | $ | 1,297.4 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Trade sales | |||||||||||||||||
Foreign sales | |||||||||||||||||
Europe | $ | 589.0 | $ | 420.9 | $ | 508.5 | |||||||||||
China | 559.0 | 441.7 | 449.9 | ||||||||||||||
Canada | 262.0 | 261.5 | 312.8 | ||||||||||||||
Mexico | 276.0 | 215.4 | 256.0 | ||||||||||||||
Other | 116.1 | 94.7 | 92.6 | ||||||||||||||
Total foreign sales | 1,802.1 | 1,434.2 | 1,619.8 | ||||||||||||||
United States | 3,270.5 | 2,846.0 | 3,132.7 | ||||||||||||||
Total trade sales | $ | 5,072.6 | $ | 4,280.2 | $ | 4,752.5 | |||||||||||
Tangible long-lived assets | |||||||||||||||||
Foreign tangible long-lived assets | |||||||||||||||||
Europe | $ | 150.1 | $ | 155.0 | $ | 160.2 | |||||||||||
China | 44.1 | 45.4 | 51.6 | ||||||||||||||
Canada | 26.9 | 30.2 | 36.4 | ||||||||||||||
Mexico | 13.9 | 8.8 | 10.1 | ||||||||||||||
Other | 9.8 | 11.1 | 14.7 | ||||||||||||||
Total foreign tangible long-lived assets | 244.8 | 250.5 | 273.0 | ||||||||||||||
United States | 536.7 | 534.3 | 557.8 | ||||||||||||||
Total tangible long-lived assets | $ | 781.5 | $ | 784.8 | $ | 830.8 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Earnings: | |||||||||||||||||
Net earnings | $ | 402.6 | $ | 253.1 | $ | 314.1 | |||||||||||
(Earnings) attributable to noncontrolling interest, net of tax | (.2) | (.1) | (.1) | ||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 402.4 | $ | 253.0 | $ | 314.0 | |||||||||||
Weighted average number of shares (in millions): | |||||||||||||||||
Weighted average number of common shares used in basic EPS | 136.3 | 135.7 | 134.8 | ||||||||||||||
Dilutive effect of stock-based compensation | .4 | .2 | .6 | ||||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 136.7 | 135.9 | 135.4 | ||||||||||||||
Basic and Diluted EPS: | |||||||||||||||||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 2.95 | $ | 1.86 | $ | 2.33 | |||||||||||
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 2.94 | $ | 1.86 | $ | 2.32 | |||||||||||
Other information: | |||||||||||||||||
Anti-dilutive shares excluded from diluted EPS computation | .2 | .2 | .2 | ||||||||||||||
Cash dividends declared per share | $ | 1.66 | $ | 1.60 | $ | 1.58 |
2021 | 2020 | ||||||||||||||||||||||
Current | Long-term | Current | Long-term | ||||||||||||||||||||
Trade accounts receivable 1 | $ | 634.2 | $ | — | $ | 553.5 | $ | — | |||||||||||||||
Trade notes receivable | .7 | .2 | .9 | .3 | |||||||||||||||||||
Total trade receivables | 634.9 | .2 | 554.4 | .3 | |||||||||||||||||||
Other notes receivable 1 | .7 | 22.5 | — | 22.8 | |||||||||||||||||||
Taxes receivable, including income taxes | 18.8 | — | 14.8 | — | |||||||||||||||||||
Other receivables | 12.0 | — | 13.6 | — | |||||||||||||||||||
Subtotal other receivables | 31.5 | 22.5 | 28.4 | 22.8 | |||||||||||||||||||
Total trade and other receivables | 666.4 | 22.7 | 582.8 | 23.1 | |||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||
Trade accounts receivable 1 | (14.9) | — | (19.2) | — | |||||||||||||||||||
Trade notes receivable | — | (.1) | — | — | |||||||||||||||||||
Total trade receivables | (14.9) | (.1) | (19.2) | — | |||||||||||||||||||
Other notes receivable 1 | — | (22.0) | — | (22.8) | |||||||||||||||||||
Total allowance for doubtful accounts | (14.9) | (22.1) | (19.2) | (22.8) | |||||||||||||||||||
Total net receivables | $ | 651.5 | $ | .6 | $ | 563.6 | $ | .3 |
Balance at January 1, 2020 1 | Add: Charges 2 | Less: Net Charge-offs/(Recoveries) and Other | Balance at December 31, 2020 | Add: Charges 2 | Less: Net Charge-offs/(Recoveries) and Other | Balance at December 31, 2021 | |||||||||||||||||||||||||||||||||||
Trade accounts receivable | $ | 11.7 | $ | 9.4 | $ | 1.9 | $ | 19.2 | $ | (2.7) | $ | 1.6 | $ | 14.9 | |||||||||||||||||||||||||||
Trade notes receivable | .1 | (.1) | — | — | .1 | — | .1 | ||||||||||||||||||||||||||||||||||
Total trade receivables | 11.8 | 9.3 | 1.9 | 19.2 | (2.6) | 1.6 | 15.0 | ||||||||||||||||||||||||||||||||||
Other notes receivable | 15.0 | 7.8 | — | 22.8 | (.8) | — | 22.0 | ||||||||||||||||||||||||||||||||||
Total allowance for doubtful accounts | $ | 26.8 | $ | 17.1 | $ | 1.9 | $ | 42.0 | $ | (3.4) | $ | 1.6 | $ | 37.0 |
2021 | 2020 | ||||||||||
Sundry | |||||||||||
$ | 8.6 | $ | 11.0 | ||||||||
47.4 | 42.7 | ||||||||||
2.8 | .9 | ||||||||||
7.6 | 8.2 | ||||||||||
3.8 | 3.6 | ||||||||||
Other | 40.3 | 38.7 | |||||||||
$ | 110.5 | $ | 105.1 | ||||||||
Accrued expenses | |||||||||||
$ | 1.0 | $ | .5 | ||||||||
Wages and commissions payable | 75.1 | 77.5 | |||||||||
Workers’ compensation, vehicle-related and product liability, medical/disability | 45.2 | 45.1 | |||||||||
Sales promotions | 53.4 | 49.9 | |||||||||
9.1 | 8.2 | ||||||||||
Accrued interest | 16.4 | 14.6 | |||||||||
General taxes, excluding income taxes 1 | 28.8 | 26.3 | |||||||||
Environmental reserves | 3.8 | 4.0 | |||||||||
Other | 51.8 | 49.1 | |||||||||
$ | 284.6 | $ | 275.2 | ||||||||
Other current liabilities | |||||||||||
Dividends payable | $ | 56.0 | $ | 53.0 | |||||||
Customer deposits | 19.5 | 19.4 | |||||||||
Sales tax payable | 7.5 | 5.4 | |||||||||
1.1 | 2.2 | ||||||||||
3.5 | 3.2 | ||||||||||
Outstanding checks in excess of book balances | .3 | 1.6 | |||||||||
Other | 4.3 | .5 | |||||||||
$ | 92.2 | $ | 85.3 | ||||||||
Other long-term liabilities | |||||||||||
$ | 45.2 | $ | 71.7 | ||||||||
51.1 | 45.7 | ||||||||||
Deemed repatriation tax payable | 27.6 | 31.6 | |||||||||
Net reserves for tax contingencies | 6.3 | 6.4 | |||||||||
Deferred compensation | 13.2 | 14.6 | |||||||||
Other 1 | 19.5 | 22.1 | |||||||||
$ | 162.9 | $ | 192.1 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Senior Notes 1 | 3.5 | % | 2051 | 500.0 | |||||||||||||||||||||||||||||||
Term Loan A 2 | 3.0 | % | 2024 | 305.0 | |||||||||||||||||||||||||||||||
Industrial development bonds, principally variable interest rates | .3 | % | 2030 | 3.8 | .3 | % | 2030 | 3.8 | |||||||||||||||||||||||||||
Commercial paper 3 | — | % | 2026 | — | — | % | 2024 | — | |||||||||||||||||||||||||||
Finance leases | 3.7 | 3.6 | |||||||||||||||||||||||||||||||||
Other, partially secured | .5 | .5 | |||||||||||||||||||||||||||||||||
Unamortized discounts and deferred loan costs | (17.7) | (12.7) | |||||||||||||||||||||||||||||||||
Total debt | 2,090.3 | 1,900.2 | |||||||||||||||||||||||||||||||||
Less: current maturities | 300.6 | 50.9 | |||||||||||||||||||||||||||||||||
Total long-term debt | $ | 1,789.7 | $ | 1,849.3 |
2022 | $ | 300.6 | |||
2023 | 1.7 | ||||
2024 | 299.7 | ||||
2025 | .6 | ||||
2026 | — | ||||
Thereafter | 1,487.7 | ||||
$ | 2,090.3 |
2021 | 2020 | ||||||||||
Total program authorized | $ | 1,200.0 | $ | 1,200.0 | |||||||
Commercial paper outstanding (classified as long-term debt) | $ | — | $ | — | |||||||
Letters of credit issued under the credit facility | — | — | |||||||||
Total program usage | $ | — | $ | — | |||||||
December 31 | |||||||||||
2021 | 2020 | ||||||||||
Operating leases: | |||||||||||
Operating lease right-of-use assets | $ | 192.6 | $ | 161.6 | |||||||
Current portion of operating lease liabilities | $ | 44.5 | $ | 42.4 | |||||||
Operating lease liabilities | 153.0 | 122.1 | |||||||||
Total operating lease liabilities | $ | 197.5 | $ | 164.5 | |||||||
Finance leases: | |||||||||||
$ | 3.8 | $ | 3.6 | ||||||||
$ | .8 | $ | .9 | ||||||||
2.9 | 2.7 | ||||||||||
Total finance lease liabilities | $ | 3.7 | $ | 3.6 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Operating lease costs: | |||||||||||||||||
Lease costs | $ | 50.1 | $ | 48.4 | $ | 45.0 | |||||||||||
Variable lease costs | 15.4 | 12.1 | 12.9 | ||||||||||||||
Total operating lease costs | $ | 65.5 | $ | 60.5 | $ | 57.9 | |||||||||||
Short-term lease costs | $ | 7.0 | $ | 4.9 | $ | 5.0 | |||||||||||
Finance lease costs: | |||||||||||||||||
Amortization of right-of-use assets | $ | 1.7 | $ | 2.4 | $ | 2.7 | |||||||||||
Interest on lease liabilities | .1 | .1 | .2 | ||||||||||||||
Total finance lease costs | $ | 1.8 | $ | 2.5 | $ | 2.9 | |||||||||||
Total lease costs | $ | 74.3 | $ | 67.9 | $ | 65.8 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 48.6 | $ | 47.3 | $ | 40.7 | |||||||||||
Operating cash flows from finance leases | .1 | .1 | .2 | ||||||||||||||
Financing cash flows from finance leases | 1.7 | 2.4 | 2.7 | ||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 74.0 | 43.6 | 40.7 | ||||||||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | 1.9 | 1.8 | 2.1 |
December 31, 2021 | |||||||||||
Operating Leases | Finance Leases | ||||||||||
2022 | $ | 49.0 | $ | 1.5 | |||||||
2023 | 43.2 | 1.1 | |||||||||
2024 | 35.2 | .6 | |||||||||
2025 | 25.8 | .3 | |||||||||
2026 | 20.1 | .2 | |||||||||
Thereafter | 38.6 | .3 | |||||||||
Total | 211.9 | 4.0 | |||||||||
Less: Interest | 14.4 | .3 | |||||||||
Lease Liability | $ | 197.5 | $ | 3.7 | |||||||
Weighted average remaining lease term (years) | 5.7 | 3.7 | |||||||||
Weighted average discount rate | 2.7 | % | 2.7 | % |
Shares Available for Issuance | Maximum Number of Authorized Shares | ||||||||||
Unexercised options | .3 | .3 | |||||||||
Outstanding stock units—vested | 3.3 | 8.4 | |||||||||
Outstanding stock units—unvested | 1.0 | 2.9 | |||||||||
Available for grant | 10.9 | 10.9 | |||||||||
Authorized for issuance at December 31, 2021 | 15.5 | 22.5 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Executive Stock Unit (ESU) program contributions 1 | $ | 4.0 | $ | .6 | $ | 3.5 | $ | .7 | $ | 3.7 | $ | .6 | |||||||||||||||||||||||
Discounts on various stock awards: | |||||||||||||||||||||||||||||||||||
Deferred Stock Compensation Program 2 | 1.5 | — | 2.2 | — | 2.1 | — | |||||||||||||||||||||||||||||
ESU program 1 | 1.1 | — | 1.4 | — | 1.3 | — | |||||||||||||||||||||||||||||
Discount Stock Plan 3 | .9 | — | .9 | — | 1.0 | — | |||||||||||||||||||||||||||||
Performance Stock Unit (PSU) awards: 4 | |||||||||||||||||||||||||||||||||||
PSU - TSR based 4A | 3.1 | (1.0) | 3.2 | (.7) | 2.8 | 4.1 | |||||||||||||||||||||||||||||
PSU - EBIT CAGR based 4B | 4.7 | 5.0 | (1.9) | (2.0) | 3.8 | 5.3 | |||||||||||||||||||||||||||||
2017 and prior PSU awards 4C | — | — | — | — | 1.8 | 1.0 | |||||||||||||||||||||||||||||
Restricted Stock Units (RSU) awards 5 | 8.2 | — | 6.8 | — | 2.0 | — | |||||||||||||||||||||||||||||
Other, primarily non-employee directors restricted stock | .4 | — | .9 | — | 1.4 | — | |||||||||||||||||||||||||||||
Total stock-related compensation expense (income) | 23.9 | $ | 4.6 | 17.0 | $ | (2.0) | 19.9 | $ | 11.0 | ||||||||||||||||||||||||||
Employee contributions for above stock plans | 10.3 | 12.2 | 13.1 | ||||||||||||||||||||||||||||||||
Total stock-based compensation | $ | 34.2 | $ | 29.2 | $ | 33.0 | |||||||||||||||||||||||||||||
Tax benefits on stock-based compensation expense | $ | 5.8 | $ | 4.0 | $ | 4.7 | |||||||||||||||||||||||||||||
Tax benefits on stock-based compensation payments | 3.4 | 2.5 | 5.6 | ||||||||||||||||||||||||||||||||
Total tax benefits associated with stock-based compensation | $ | 9.2 | $ | 6.5 | $ | 10.3 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Diversified investments associated with the ESU program 1 | $ | 3.6 | $ | 47.4 | $ | 51.0 | $ | 3.2 | $ | 42.7 | $ | 45.9 | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
ESU program 1 | $ | 3.6 | $ | 47.3 | $ | 50.9 | $ | 3.2 | $ | 42.2 | $ | 45.4 | |||||||||||||||||||||||
Performance Stock Unit (TSR) award 4A | — | 1.1 | 1.1 | 1.9 | 2.2 | 4.1 | |||||||||||||||||||||||||||||
Performance Stock Unit (EBIT) award 4B | 3.5 | 2.7 | 6.2 | .4 | 1.3 | 1.7 | |||||||||||||||||||||||||||||
Other - primarily timing differences between employee withholdings and related employer contributions to be submitted to various plans' trust accounts | 5.6 | — | 5.6 | 5.9 | — | 5.9 | |||||||||||||||||||||||||||||
Total liabilities associated with stock-based compensation | $ | 12.7 | $ | 51.1 | $ | 63.8 | $ | 11.4 | $ | 45.7 | $ | 57.1 |
Options | Units | Cash | |||||||||||||||
Aggregate amount of compensation deferred during 2021 | $ | .1 | $ | 5.4 | $ | .5 |
Total Stock Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2020 | .5 | $ | 35.72 | ||||||||||||||||||||
Granted | — | 41.32 | |||||||||||||||||||||
Exercised | (.2) | 27.83 | |||||||||||||||||||||
Outstanding at December 31, 2021 | .3 | $ | 41.02 | 5.7 | $ | .6 | |||||||||||||||||
Vested or expected to vest | .3 | $ | 41.02 | 5.7 | $ | .6 | |||||||||||||||||
Exercisable (vested) at December 31, 2021 | .3 | $ | 41.00 | 5.4 | $ | .6 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Total intrinsic value of stock options exercised | $ | 4.5 | $ | 2.3 | $ | 23.6 | |||||||||||
Cash received from stock options exercised | 3.5 | 1.5 | 9.3 | ||||||||||||||
Total fair value of stock options vested | .1 | .9 | .3 | ||||||||||||||
Aggregate grant date fair value of options granted * | .2 | .2 | .5 |
Average 2021 purchase price per share (net of discount) | $ | 38.97 | |||
2021 number of shares purchased by employees | .1 | ||||
Shares purchased since inception in 1982 | 23.6 | ||||
Maximum shares under the plan | 27.0 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
TSR Based | |||||||||||||||||
Total shares base award | .1 | .1 | .1 | ||||||||||||||
Grant date per share fair value | $ | 49.43 | $ | 38.23 | $ | 57.86 | |||||||||||
Risk-free interest rate | .2 | % | 1.4 | % | 2.4 | % | |||||||||||
Expected life in years | 3.0 | 3.0 | 3.0 | ||||||||||||||
Expected volatility (over expected life) | 44.3 | % | 24.0 | % | 21.5 | % | |||||||||||
Expected dividend yield (over expected life) | 3.7 | % | 3.6 | % | 3.4 | % | |||||||||||
EBIT CAGR Based | |||||||||||||||||
Total shares base award | .1 | .1 | .1 | ||||||||||||||
Grant date per share fair value | $ | 38.77 | $ | 40.52 | $ | 39.98 | |||||||||||
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 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
2019 | December 31, 2021 | 78 | th percentile | —% | — | $ | — | First quarter 2022 |
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 | |||||||||||||||||||||||||||||
2019 | December 31, 2021 | 127.0% | <.1 million | $ | 3.5 | First quarter 2022 |
DSU | ESU | PSU | RSU | Total Units | Weighted Average Grant Date Fair Value per Unit | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||||||
Unvested at December 31, 2020 | — | — | .8 | .1 | .9 | $ | 24.07 | ||||||||||||||||||||||||||||||||||
Granted based on current service | .2 | .2 | — | .3 | .7 | 44.08 | |||||||||||||||||||||||||||||||||||
Granted based on future conditions* | — | — | .3 | — | .3 | 30.10 | |||||||||||||||||||||||||||||||||||
Vested | (.2) | (.2) | (.1) | (.2) | (.7) | 38.94 | |||||||||||||||||||||||||||||||||||
Forfeited* | — | — | (.2) | — | (.2) | 22.37 | |||||||||||||||||||||||||||||||||||
Unvested at December 31, 2021 | — | — | .8 | .2 | 1.0 | $ | 44.41 | $ | 39.5 | ||||||||||||||||||||||||||||||||
Fully vested shares available for issuance at December 31, 2021 | 3.3 | $ | 136.6 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Total intrinsic value of vested stock units converted to common stock | $ | 10.5 | $ | 11.7 | $ | 8.0 |
2021 | 2020 | 2019 | |||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of period | $ | 286.5 | $ | 259.1 | $ | 219.8 | |||||||||||
Service cost | 5.1 | 5.1 | 4.0 | ||||||||||||||
Interest cost | 6.0 | 7.2 | 8.5 | ||||||||||||||
Plan participants’ contributions | .5 | .5 | .5 | ||||||||||||||
Actuarial (gain) loss 1 | (10.8) | 27.7 | 36.7 | ||||||||||||||
Benefits paid | (15.6) | (14.2) | (13.8) | ||||||||||||||
Plan amendments | .1 | (.4) | 1.9 | ||||||||||||||
Curtailments and settlements | (1.1) | — | — | ||||||||||||||
Foreign currency exchange rate changes | (.3) | 1.5 | 1.5 | ||||||||||||||
Benefit obligation, end of period | $ | 270.4 | $ | 286.5 | $ | 259.1 | |||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of period | $ | 215.3 | $ | 201.5 | $ | 181.8 | |||||||||||
Actual return on plan assets | 25.6 | 24.1 | 30.0 | ||||||||||||||
Employer contributions | 2.8 | 2.2 | 1.5 | ||||||||||||||
Plan participants’ contributions | .5 | .5 | .5 | ||||||||||||||
Benefits paid | (15.6) | (14.2) | (13.8) | ||||||||||||||
Settlements | (.8) | — | — | ||||||||||||||
Foreign currency exchange rate changes | (.1) | 1.2 | 1.5 | ||||||||||||||
Fair value of plan assets, end of period | $ | 227.7 | $ | 215.3 | $ | 201.5 | |||||||||||
Net funded status | $ | (42.7) | $ | (71.2) | $ | (57.6) | |||||||||||
Funded status recognized in the Consolidated Balance Sheets | |||||||||||||||||
Other assets—sundry | $ | 2.8 | $ | .9 | $ | 1.4 | |||||||||||
Other current liabilities | (.3) | (.4) | (.4) | ||||||||||||||
Other long-term liabilities | (45.2) | (71.7) | (58.6) | ||||||||||||||
Net funded status | $ | (42.7) | $ | (71.2) | $ | (57.6) |
December 31, 2020 | 2021 Amortization | 2021 Net Actuarial Loss | 2021 Foreign Currency Exchange Rates Change | 2021 Income Tax Change | December 31, 2021 | ||||||||||||||||||||||||||||||
Net (loss) gain (before tax) | $ | (82.0) | $ | 5.3 | $ | 24.0 | $ | — | $ | (.4) | $ | (53.1) | |||||||||||||||||||||||
Deferred income taxes | 21.8 | — | — | — | (7.2) | 14.6 | |||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) (net of tax) | $ | (60.2) | $ | 5.3 | $ | 24.0 | $ | — | $ | (7.6) | $ | (38.5) |
2021 | 2020 | 2019 | |||||||||||||||
Service cost | $ | 5.1 | $ | 5.1 | $ | 4.0 | |||||||||||
Interest cost | 6.0 | 7.2 | 8.5 | ||||||||||||||
Expected return on plan assets | (12.5) | (11.9) | (11.3) | ||||||||||||||
Recognized net actuarial loss | 5.3 | 4.0 | 2.9 | ||||||||||||||
Prior service cost | — | (.4) | 1.7 | ||||||||||||||
Curtailments and settlements | (.2) | — | — | ||||||||||||||
Net pension expense | $ | 3.7 | $ | 4.0 | $ | 5.8 | |||||||||||
Weighted average assumptions for pension costs: | |||||||||||||||||
Discount rate used in net pension costs | 2.1 | % | 2.8 | % | 3.9 | % | |||||||||||
Rate of compensation increase used in pension costs | 3.5 | % | 3.4 | % | 3.0 | % | |||||||||||
Expected return on plan assets | 5.9 | % | 6.1 | % | 6.4 | % | |||||||||||
Weighted average assumptions for benefit obligation: | |||||||||||||||||
Discount rate used in benefit obligation | 2.5 | % | 2.1 | % | 2.8 | % | |||||||||||
Rate of compensation increase used in benefit obligation | 3.5 | % | 3.5 | % | 3.4 | % |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Assets Measured at NAV 1 | Total | Level 1 | Level 2 | Level 3 | Assets Measured at NAV 1 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual and pooled funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income | $ | 34.1 | $ | 21.3 | $ | — | $ | — | $ | 55.4 | $ | 35.3 | $ | 16.5 | $ | — | $ | — | $ | 51.8 | |||||||||||||||||||||||||||||||||||||||
Equities | 127.0 | 8.4 | — | — | 135.4 | 114.0 | 10.4 | — | — | 124.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stable value funds | — | 31.6 | — | — | 31.6 | — | 30.9 | — | — | 30.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds, cash and other | — | — | — | 5.3 | 5.3 | — | — | — | 8.2 | 8.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total investments at fair value | $ | 161.1 | $ | 61.3 | $ | — | $ | 5.3 | $ | 227.7 | $ | 149.3 | $ | 57.8 | $ | — | $ | 8.2 | $ | 215.3 |
2021 | 2020 | ||||||||||
Asset Category | |||||||||||
Equity securities | 60 | % | 58 | % | |||||||
Debt securities | 24 | 24 | |||||||||
Stable value funds | 14 | 14 | |||||||||
Other, including cash | 2 | 4 | |||||||||
Total | 100 | % | 100 | % |
2022 | $ | 15.2 | |||
2023 | 13.3 | ||||
2024 | 14.0 | ||||
2025 | 14.8 | ||||
2026 | 14.9 | ||||
2027-2031 | 72.2 |
2021 | 2020 | 2019 | |||||||||||||||
401(k) Plan | $ | 6.8 | $ | 6.8 | $ | 6.9 | |||||||||||
Other defined contribution plans | 4.6 | 4.9 | 5.3 | ||||||||||||||
$ | 11.4 | $ | 11.7 | $ | 12.2 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Domestic | $ | 249.7 | $ | 115.3 | $ | 168.9 | |||||||||||
Foreign | 272.4 | 212.6 | 234.6 | ||||||||||||||
Earnings before income taxes | $ | 522.1 | $ | 327.9 | $ | 403.5 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Current | |||||||||||||||||
Federal | $ | 57.0 | $ | 36.9 | $ | 34.6 | |||||||||||
State and local | 11.5 | 7.8 | 5.3 | ||||||||||||||
Foreign | 59.5 | 51.0 | 48.7 | ||||||||||||||
Total current | 128.0 | 95.7 | 88.6 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | (9.3) | (15.0) | 2.2 | ||||||||||||||
State and local | (2.3) | (2.6) | (.9) | ||||||||||||||
Foreign | 3.1 | (3.3) | (.5) | ||||||||||||||
Total deferred | (8.5) | (20.9) | .8 | ||||||||||||||
Total income taxes | $ | 119.5 | $ | 74.8 | $ | 89.4 |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Increases (decreases) in rate resulting from: | |||||||||||||||||
State taxes, net of federal benefit | 1.5 | .8 | 1.3 | ||||||||||||||
Tax effect of foreign operations | (.9) | (2.2) | (1.7) | ||||||||||||||
Global intangible low-taxed income | .5 | (.3) | 2.3 | ||||||||||||||
Current and deferred foreign withholding taxes | 2.3 | 2.7 | 1.3 | ||||||||||||||
Stock-based compensation | (.5) | (.6) | (1.1) | ||||||||||||||
Change in valuation allowance | — | .8 | .4 | ||||||||||||||
Change in uncertain tax positions, net | — | .6 | (.3) | ||||||||||||||
Goodwill impairment | — | 1.6 | — | ||||||||||||||
Other permanent differences, net | (.8) | (1.3) | (.3) | ||||||||||||||
Other, net | (.2) | (.3) | (.7) | ||||||||||||||
Effective tax rate | 22.9 | % | 22.8 | % | 22.2 | % |
2021 | 2020 | 2019 | |||||||||||||||
Gross unrecognized tax benefits, January 1 | $ | 5.3 | $ | 6.4 | $ | 8.2 | |||||||||||
Gross increases—tax positions in prior periods 1 | .7 | 2.9 | — | ||||||||||||||
Gross decreases—tax positions in prior periods | (.3) | (.4) | (.4) | ||||||||||||||
Gross increases—current period tax positions | .7 | .6 | .7 | ||||||||||||||
Change due to exchange rate fluctuations | (.1) | .1 | — | ||||||||||||||
Settlements 1 | — | (3.2) | — | ||||||||||||||
Lapse of statute of limitations | (1.0) | (1.1) | (2.1) | ||||||||||||||
Gross unrecognized tax benefits, December 31 | 5.3 | 5.3 | 6.4 | ||||||||||||||
Interest | 1.1 | 1.4 | 1.9 | ||||||||||||||
Penalties | .2 | .2 | .3 | ||||||||||||||
Total gross unrecognized tax benefits, December 31 | $ | 6.6 | $ | 6.9 | $ | 8.6 |
December 31 | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||
Property, plant and equipment | $ | 16.8 | $ | (79.3) | $ | 17.4 | $ | (81.7) | |||||||||||||||
Inventories | 3.0 | (13.1) | 2.6 | (21.4) | |||||||||||||||||||
Accrued expenses | 65.5 | (10.2) | 68.1 | (6.3) | |||||||||||||||||||
Net operating losses and other tax carryforwards | 29.1 | — | 32.3 | — | |||||||||||||||||||
Pension cost and other post-retirement benefits | 14.6 | (.7) | 22.3 | (.7) | |||||||||||||||||||
Intangible assets | .2 | (200.0) | .2 | (194.7) | |||||||||||||||||||
Derivative financial instruments | 1.2 | (4.4) | 2.4 | (2.4) | |||||||||||||||||||
Tax on undistributed earnings (primarily from Canada and China) | — | (16.0) | — | (14.8) | |||||||||||||||||||
Uncertain tax positions | .9 | — | 1.1 | — | |||||||||||||||||||
Other | 5.5 | (5.7) | 5.7 | (6.4) | |||||||||||||||||||
Gross deferred tax assets (liabilities) | 136.8 | (329.4) | 152.1 | (328.4) | |||||||||||||||||||
Valuation allowance | (16.2) | — | (18.1) | — | |||||||||||||||||||
Total deferred taxes | $ | 120.6 | $ | (329.4) | $ | 134.0 | $ | (328.4) | |||||||||||||||
Net deferred tax liability | $ | (208.8) | $ | (194.4) |
December 31 | |||||||||||
2021 | 2020 | ||||||||||
Sundry | $ | 8.6 | $ | 11.0 | |||||||
Deferred income taxes | (217.4) | (205.4) | |||||||||
Net deferred tax liability | $ | (208.8) | $ | (194.4) |
Year Ended December 31 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
$ | (.3) | $ | 7.6 | $ | 8.1 | ||||||||||||
Currency loss | 1.3 | 2.4 | 3.0 | ||||||||||||||
(6.2) | (6.0) | (7.2) | |||||||||||||||
Insurance proceeds 1 | (6.6) | — | — | ||||||||||||||
COVID-19 government subsidies 2 | (3.5) | (21.4) | — | ||||||||||||||
(1.4) | (1.1) | 1.8 | |||||||||||||||
Other income | (1.2) | (3.9) | (4.3) | ||||||||||||||
$ | (17.9) | $ | (22.4) | $ | 1.4 |
Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance at January 1, 2019 | $ | (26.5) | $ | (11.8) | $ | (39.3) | $ | (77.6) | |||||||||||||||
Other comprehensive income (loss) | 5.0 | 2.5 | (18.6) | (11.1) | |||||||||||||||||||
Reclassifications, pretax 1 | — | 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 2 | — | 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) | |||||||||||||||||||
Other comprehensive income (loss) | (18.2) | 14.6 | 24.0 | 20.4 | |||||||||||||||||||
Reclassifications, pretax 3 | — | (.6) | 5.3 | 4.7 | |||||||||||||||||||
Income tax effect | — | (3.5) | (7.6) | (11.1) | |||||||||||||||||||
Attributable to noncontrolling interest | .1 | — | — | .1 | |||||||||||||||||||
Balance at December 31, 2021 | $ | (11.7) | $ | 11.9 | $ | (38.5) | $ | (38.3) | |||||||||||||||
1 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 | |||||||||||||||
2 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 | |||||||||||||||
3 2021 pretax reclassifications are comprised of: | |||||||||||||||||||||||
Net trade sales | $ | — | $ | (5.6) | $ | — | $ | (5.6) | |||||||||||||||
Cost of goods sold; selling and administrative expenses | — | .5 | — | .5 | |||||||||||||||||||
Interest expense | — | 4.5 | — | 4.5 | |||||||||||||||||||
Other (income) expense, net | — | — | 5.3 | 5.3 | |||||||||||||||||||
Total 2021 reclassifications, pretax | $ | — | $ | (.6) | $ | 5.3 | $ | 4.7 |
As of December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Bank time deposits with original maturities of three months or less | $ | — | $ | 114.4 | $ | — | $ | 114.4 | |||||||||||||||
— | 5.9 | — | 5.9 | ||||||||||||||||||||
51.0 | — | — | 51.0 | ||||||||||||||||||||
Total assets | $ | 51.0 | $ | 120.3 | $ | — | $ | 171.3 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
$ | — | $ | 1.2 | $ | — | $ | 1.2 | ||||||||||||||||
50.9 | — | — | 50.9 | ||||||||||||||||||||
Total liabilities | $ | 50.9 | $ | 1.2 | $ | — | $ | 52.1 |
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 |
2021 | 2019 | ||||||||||
Accounts receivable | $ | 18.3 | $ | 75.2 | |||||||
Inventory | 17.0 | 63.2 | |||||||||
Property, plant and equipment | 16.4 | 82.3 | |||||||||
70.9 | 566.3 | ||||||||||
Customer relationships (15-year life) | 64.9 | 378.9 | |||||||||
Technology (8 to 15-year life) | 5.5 | 173.3 | |||||||||
Trademarks and trade names (15 to 20-year life) | 7.2 | 67.1 | |||||||||
Non-compete agreements and other (1 to 15-year life) | 2.7 | 28.7 | |||||||||
Other current and long-term assets | 5.5 | 29.4 | |||||||||
Current liabilities | (39.2) | (48.2) | |||||||||
Deferred income taxes | (11.9) | (127.4) | |||||||||
Long-term liabilities | (4.7) | (23.7) | |||||||||
Net cash consideration | $ | 152.6 | $ | 1,265.1 |
Year Ended | Number of Acquisitions | Segment | Product/Service | |||||||||||||||||
December 31, 2021 | 3 | Bedding Products Furniture, Flooring & Textile Products Specialized Products | Manufacturer of specialty foam for the bedding and furniture industries Manufacturer of bent metal tubing for furniture used in office, residential, and other settings Manufacturer of high-pressure and high-temperature ducting, flexible joints, and components | |||||||||||||||||
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 |
Expiring at various dates through: | Total USD Equivalent Notional Amount | As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||
Derivatives | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
Other Current Assets | Sundry | Other Current Liabilities | Other Long-Term Liabilities | |||||||||||||||||||||||||||||||||||
Designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Total cash flow hedges-currency hedges | Jun 2023 | 260.6 | $ | 5.1 | $ | — | $ | .7 | $ | .1 | ||||||||||||||||||||||||||||
Total fair value hedges | Mar 2022 | 54.2 | .4 | — | — | — | ||||||||||||||||||||||||||||||||
Not designated as hedging instruments | Dec 2022 | 40.1 | .4 | — | .4 | — | ||||||||||||||||||||||||||||||||
Total derivatives | $ | 5.9 | $ | — | $ | 1.1 | $ | .1 |
Expiring at various dates through: | Total USD Equivalent Notional Amount | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||
Derivatives | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
Other Current Assets | Sundry | Other Current Liabilities | Other Long-Term Liabilities | |||||||||||||||||||||||||||||||||||
Designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Total cash flow hedges-currency hedges | Jun 2022 | 223.8 | $ | 7.0 | $ | .2 | $ | 1.9 | $ | .3 | ||||||||||||||||||||||||||||
Total fair value hedges | Jun 2021 | 49.5 | .3 | — | .1 | — | ||||||||||||||||||||||||||||||||
Not designated as hedging instruments | Dec 2021 | 55.1 | .4 | — | .2 | — | ||||||||||||||||||||||||||||||||
Total derivatives | $ | 7.7 | $ | .2 | $ | 2.2 | $ | .3 | ||||||||||||||||||||||||||||||
Income Statement Caption | Amount of (Gain) Loss Recorded in Income for the Year Ended December 31 | |||||||||||||||||||||||||
Derivatives | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate cash flow hedges | Interest expense | $ | 4.5 | $ | 4.5 | $ | 4.4 | |||||||||||||||||||
Currency cash flow hedges | Net trade sales | (9.6) | 1.1 | 2.7 | ||||||||||||||||||||||
Currency cash flow hedges | Cost of goods sold | (.2) | (.1) | (1.6) | ||||||||||||||||||||||
Currency cash flow hedges | Other (income) expense, net | — | — | .1 | ||||||||||||||||||||||
Total cash flow hedges | (5.3) | 5.5 | 5.6 | |||||||||||||||||||||||
Fair value hedges | Other (income) expense, net | (5.9) | (.2) | .8 | ||||||||||||||||||||||
Not designated as hedging instruments | Other (income) expense, net | (1.9) | .2 | .1 | ||||||||||||||||||||||
Total derivative instruments | $ | (13.1) | $ | 5.5 | $ | 6.5 | ||||||||||||||||||||
Year ended December 31, (Amounts in millions, except per share data) | First Quarter | Second Quarter 1,2 | Third Quarter | Fourth Quarter | Total | ||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||
Net trade sales | $ | 1,150.9 | $ | 1,269.6 | $ | 1,319.2 | $ | 1,332.9 | $ | 5,072.6 | |||||||||||||||||||
Gross profit | 247.5 | 269.3 | 256.1 | 265.4 | 1,038.3 | ||||||||||||||||||||||||
Net earnings | 87.5 | 112.3 | 97.2 | 105.6 | 402.6 | ||||||||||||||||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | 87.5 | 112.2 | 97.2 | 105.5 | 402.4 | ||||||||||||||||||||||||
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||||||||||||||
Basic | $ | .64 | $ | .83 | $ | .71 | $ | .77 | $ | 2.95 | |||||||||||||||||||
Diluted | $ | .64 | $ | .82 | $ | .71 | $ | .77 | $ | 2.94 | |||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Net trade sales | $ | 1,045.5 | $ | 845.1 | $ | 1,207.6 | $ | 1,182.0 | $ | 4,280.2 | |||||||||||||||||||
Gross profit | 220.7 | 146.6 | 269.7 | 267.1 | 904.1 | ||||||||||||||||||||||||
Net earnings (loss) | 44.1 | (6.1) | 107.1 | 108.0 | 253.1 | ||||||||||||||||||||||||
Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders | 44.1 | (6.1) | 107.0 | 108.0 | 253.0 | ||||||||||||||||||||||||
Net earnings (loss) per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||||||||||||||||
Basic | $ | .33 | $ | (.05) | $ | .79 | $ | .79 | $ | 1.86 | |||||||||||||||||||
Diluted | $ | .33 | $ | (.05) | $ | .79 | $ | .79 | $ | 1.86 |
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, 2021 | |||||||||||||||||||||||
Allowance for doubtful receivables | $ | 42.0 | $ | (3.4) | $ | 1.6 | 2 | $ | 37.0 | ||||||||||||||
Tax valuation allowance | $ | 18.1 | $ | (.1) | $ | 1.8 | $ | 16.2 | |||||||||||||||
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 | |||||||||||||||
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* | ||||||||
10.11.1* | ||||||||
10.11.2* | ||||||||
10.11.3* | ||||||||
10.11.4* | ||||||||
Exhibit No. | Document Description | |||||||
10.11.5* | ||||||||
10.11.6* | ||||||||
10.11.7* | ||||||||
10.11.8* | ||||||||
10.11.9* | ||||||||
10.11.10* | ||||||||
10.11.11* | ||||||||
10.11.12* | ||||||||
10.12* | ||||||||
10.12.1* | ||||||||
10.13* | ||||||||
10.14* | ||||||||
10.15* | ||||||||
10.16* | ||||||||
Exhibit No. | Document Description | |||||||
10.17* | ||||||||
10.18*,** | ||||||||
10.19* | ||||||||
10.20 | ||||||||
10.21 | ||||||||
10.22 | ||||||||
18 | ||||||||
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. |
Exhibit No. | Document Description | |||||||
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. |
* | Denotes management contract or compensatory plan or arrangement. | ||||
** | Denotes filed or furnished herewith. | ||||
*** | Filed as Exhibit 101 to this report are the following formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for each year in the three year period ended December 31, 2021; (ii) Consolidated Statements of Comprehensive Income (Loss) for each year in the three year period ended December 31, 2021; (iii) Consolidated Balance Sheets at December 31, 2021 and December 31, 2020; (iv) Consolidated Statements of Cash Flows for each year in the three year period ended December 31, 2021; (v) Consolidated Statements of Changes in Equity for each year in the three year period ended December 31, 2021; and (vi) Notes to Consolidated Financial Statements. | ||||
**** | The assertions embodied in the representations and warranties made in the Stock Purchase Agreement are solely for the benefit of the parties to the Stock Purchase Agreement, and are qualified by information in confidential disclosure schedules that we have exchanged in connection with signing the Stock Purchase Agreement. While Leggett does not believe the schedules contain information required to be publicly disclosed, the schedules do contain information that modifies, qualifies, and creates exceptions to the representations and warranties in the Stock Purchase Agreement. You are not a third party beneficiary to the Stock Purchase Agreement and should not rely on the representations and warranties as characterizations of the actual state of facts, since (i) they are modified in part by the disclosure schedules; (ii) they may have changed since the date of the Stock Purchase Agreement; (iii) they may represent only the parties’ risk allocation in this particular transaction; and (iv) they may be qualified by materiality standards that differ from what may be viewed as material for securities law purposes. The Stock Purchase Agreement has been included to provide you with information regarding its terms. It is not intended to provide any other factual information about Leggett or ECS. Such information about Leggett can be found in other public filings we make with the SEC. |
LEGGETT & PLATT, INCORPORATED | ||||||||
By: | /s/ J. MITCHELL DOLLOFF | |||||||
J. Mitchell Dolloff | ||||||||
President and Chief Executive Officer | ||||||||
Signature | Title | Date | ||||||||||||
(a) Principal Executive Officer: | ||||||||||||||
/s/ J. MITCHELL DOLLOFF | President and Chief Executive Officer (Director) | February 22, 2022 | ||||||||||||
J. Mitchell Dolloff | ||||||||||||||
(b) Principal Financial Officer: | ||||||||||||||
/s/ JEFFREY L. TATE | Executive Vice President and Chief Financial Officer | February 22, 2022 | ||||||||||||
Jeffrey L. Tate | ||||||||||||||
(c) Principal Accounting Officer: | ||||||||||||||
/s/ TAMMY M. TRENT | Senior Vice President and Chief Accounting Officer | February 22, 2022 | ||||||||||||
Tammy M. Trent | ||||||||||||||
(d) Directors: | ||||||||||||||
MARK A. BLINN* | Director | |||||||||||||
Mark A. Blinn | ||||||||||||||
ROBERT E. BRUNNER* | Director | |||||||||||||
Robert E. Brunner | ||||||||||||||
MARY CAMPBELL* | Director | |||||||||||||
Mary Campbell |
Signature | Title | Date | ||||||||||||
MANUEL A. FERNANDEZ* | Director | |||||||||||||
Manuel A. Fernandez | ||||||||||||||
KARL G. GLASSMAN* | Director | |||||||||||||
Karl G. Glassman | ||||||||||||||
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 22, 2022 | ||||||||||
Attorney-in-Fact Under Power-of-Attorney dated | |||||||||||
February 21, 2022 |
• | 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’ meetings 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. |
Compensation Item | Annual Compensation Rates Approved May 7, 2019 | Annual Compensation Rates Approved April 9, 2020 | Annual Compensation Rates Approved May 15, 2020 | Annual Compensation Rates Approved June 29, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Cash Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Board Retainer | $ | 90,000 | $ | 45,000 | $ | 45,000 | $ | 90,000 | ||||||||||||||||||||||||||||||||||||||||||
Audit Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chair Retainer | $ | 25,000 | $ | 12,500 | $ | 12,500 | $ | 25,000 | ||||||||||||||||||||||||||||||||||||||||||
Member Retainer | $ | 10,000 | $ | 5,000 | $ | 5,000 | $ | 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Human Resources & Compensation Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chair Retainer | $ | 20,000 | $ | 10,000 | $ | 10,000 | $ | 20,000 | ||||||||||||||||||||||||||||||||||||||||||
Member Retainer | $ | 8,000 | $ | 4,000 | $ | 4,000 | $ | 8,000 | ||||||||||||||||||||||||||||||||||||||||||
Nominating, Governance & Sustainability Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chair Retainer | $ | 15,000 | $ | 7,500 | $ | 7,500 | $ | 15,000 | ||||||||||||||||||||||||||||||||||||||||||
Member Retainer | $ | 7,000 | $ | 3,500 | $ | 3,500 | $ | 7,000 | ||||||||||||||||||||||||||||||||||||||||||
Equity Compensation—Restricted Stock or Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||
Director Retainer | $ | 150,000 | $ | 150,000 | $ | 150,000 | $ | 150,000 | ||||||||||||||||||||||||||||||||||||||||||
Lead Director Additional Retainer 1 | $ | N/A | $ | N/A | $ | 125,000 | $ | 125,000 |
1 | The Lead Director receives a $125,000 equity retainer in addition to the standard director equity retainer of $150,000. |
Name | Annual Premium* | Monthly Benefit | Benefit Period | |||||||||||||||||||||||
Karl G. Glassman | $ | 1,185 | $ | 4,200 | Until Age 65 | |||||||||||||||||||||
* Under the supplemental disability coverage, the Company pays for the premium. |
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 | |||||||||
Avica Aerospace Ducting Limited | 100% | United Kingdom | |||||||||
BS Steel sp. z o.o. | 100% | Poland | |||||||||
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 | |||||||||
Dayspring Limited | 100% | Isle of Man | |||||||||
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 | |||||||||
Ecowave Fibre Limited | 50% | Ireland | |||||||||
Elite Comfort Solutions LLC | 100% | Delaware | |||||||||
Elite Comfort Solutions, Inc. | 100% | Delaware | |||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Hanes Engineered Materials | |||||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Webtec | |||||||||||
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 | |||||||||
Kayfoam Woolfson (Belfast) Limited | 100% | United Kingdom | |||||||||
Kayfoam Woolfson Unlimited Company | Kayfoam Woolfson | 100% | Ireland | ||||||||
Kaymed Inc. | 100% | Delaware | |||||||||
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 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 Cyprus (EUR) Limited | 100% | Cyprus | |||||||||
L&P Cyprus (GBP) Limited | 100% | Cyprus | |||||||||
L&P Cyprus (USD) Limited | 100% | Cyprus | |||||||||
L&P Denmark ApS | 100% | Denmark | |||||||||
L&P Electric, Inc. | Leggett & Platt Electric, Inc. | 100% | Delaware | ||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
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 | |||||||||||
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, LLC | 100% | Delaware | |||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Leggett & Platt (Jiaxing) Co. Ltd. | 100% | China | |||||||||
Leggett & Platt (Shanghai) Co. Ltd. | 100% | China | |||||||||
Leggett & Platt (Shanghai) Consulting Co. Ltd. | 100% | China | |||||||||
Leggett & Platt (Shanghai) Machinery Technology Co., Ltd. | 100% | China | |||||||||
Leggett & Platt (Taizhou) Co. Ltd. | 100% | China | |||||||||
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. | Canadian Furniture | 100% | Canada | ||||||||
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 | |||||||||||
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Leggettwood, St-Germain | |||||||||||
Leggettwood, St-Nicolas | |||||||||||
Lenrod | |||||||||||
Lenrod - Hanes | |||||||||||
Lenrod Industries | |||||||||||
Lenrod Industries, a Division of Leggett & Platt Canada Co. | |||||||||||
Les Industries Lenrod | |||||||||||
Les Industries Lenrod, une Division de Societe Leggett & Platt Canada | |||||||||||
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 |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
Wellhouse Wire Products | |||||||||||
Leggett & Platt Cyprus Holdings (EUR) Limited | 100% | Cyprus | |||||||||
Leggett & Platt Cyprus Holdings (GBP) Limited | 100% | Cyprus | |||||||||
Leggett & Platt Cyprus Holdings (USD) Limited | 100% | Cyprus | |||||||||
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 France | 100% | France | |||||||||
Leggett & Platt International Service Corporation | 100% | Delaware | |||||||||
Leggett & Platt International Trade (Shanghai) Co., Ltd. | 100% | China | |||||||||
Leggett & Platt Ireland Holdings Limited | 100% | Ireland | |||||||||
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 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 | |||||||||
Nestaway LLC | 100% | Delaware | |||||||||
ORG PHC Midco, Inc. | 100% | Delaware | |||||||||
Peterson Chemical Technology, LLC | 100% | Texas |
Name | Doing Business As | % of Ownership | Place of Incorporation or Organization | ||||||||
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 | |||||||||
Pullmaflex Benelux N.V. | 100% | Belgium | |||||||||
Pullmaflex International Limited | 100% | United Kingdom | |||||||||
Pullmaflex U.K. Limited | 100% | United Kingdom | |||||||||
Schukra Berndorf 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 | |||||||||
Terrafix Environmental Technology Inc. | 100% | Canada | |||||||||
Terrafix Geosynthetics Inc. | 100% | Canada | |||||||||
Trio Line Polska sp. z o.o. | 100% | 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. 333-256535 | ||||||
2 | . | Form S-8, Registration No. 333-157536 | ||||||
3 | . | Form S-8, Registration No. 333-181432 | ||||||
4 | . | Form S-8, Registration No. 333-203992 | ||||||
5 | . | Form S-8, Registration No. 333-203995 | ||||||
6 | . | Form S-8, Registration No. 333-228189 | ||||||
7 | . | Form S-8, Registration No. 333-253875 |
/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 22, 2022 | /s/ J. MITCHELL DOLLOFF | ||||||
J. Mitchell Dolloff | ||||||||
President and Chief Executive Officer | ||||||||
Leggett & Platt, Incorporated |
Date: | February 22, 2022 | /s/ JEFFREY L. TATE | ||||||
Jeffrey L. Tate | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Leggett & Platt, Incorporated |
/s/ J. MITCHELL DOLLOFF | ||
J. Mitchell Dolloff | ||
President and Chief Executive Officer |
/s/ JEFFREY L. TATE | ||
Jeffrey L. Tate | ||
Executive Vice President and Chief Financial Officer |