Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-07845 | |
Entity Registrant Name | LEGGETT & PLATT, INC | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 44-0324630 | |
Entity Address, Address Line One | No. 1 Leggett Road | |
Entity Address, City or Town | Carthage, | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64836 | |
City Area Code | 417 | |
Local Phone Number | 358-8131 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Ticker Symbol | LEG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 132,276,805 | |
Entity Central Index Key | 0000058492 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
ACCOUNTING STANDARD UPDATES
ACCOUNTING STANDARD UPDATES | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARD UPDATES | ACCOUNTING STANDARD UPDATES The Financial Accounting Standards Board (FASB) regularly issues updates to the FASB Accounting Standards Codification that are communicated through issuance of an Accounting Standards Update (ASU). Below is a summary of the ASUs, effective for current or future periods, most relevant to our financial statements. Adopted in 2020: • On January 1, 2020, we adopted ASU 2016-13 “Financial Instruments—Credit Losses” (Topic 326) as discussed in Note 7. • ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. We adopted this ASU on January 1, 2020. This ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value up to the total amount of goodwill for the reporting unit. We will apply this guidance to our annual goodwill impairment testing which will be completed in the second quarter of 2020. • ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)”. We adopted this ASU on January 1, 2020. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this ASU did not materially impact our financial statements. To be adopted in future years: • ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”: This ASU will be effective January 1, 2021 and is a part of the FASB overall simplification initiative. We are currently evaluating this guidance. The FASB has issued accounting guidance, in addition to the issuance discussed above, effective for current and future periods. This guidance did not have a material impact on our current financial statements, and we do not believe it will have a material impact on our future financial statements. |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 505.8 | $ 247.6 |
Trade receivables, net | 546 | 564.4 |
Other receivables, net | 22.2 | 27.5 |
Total receivables, net | 568.2 | 591.9 |
Total inventories, net | 655.5 | 636.7 |
Prepaid expenses and other current assets | 52.5 | 61.9 |
Total current assets | 1,782 | 1,538.1 |
PROPERTY, PLANT AND EQUIPMENT—AT COST | ||
Machinery and equipment | 1,369.6 | 1,388.8 |
Buildings and other | 696.3 | 719 |
Land | 41.7 | 43.5 |
Total property, plant and equipment | 2,107.6 | 2,151.3 |
Less accumulated depreciation | 1,298.1 | 1,320.5 |
Net property, plant and equipment | 809.5 | 830.8 |
OTHER ASSETS | ||
Goodwill | 1,391.4 | 1,406.3 |
Other intangibles, less accumulated amortization of $237.6 and $222.3 as of March 31, 2020 and December 31, 2019, respectively | 744 | 764 |
Operating lease right-of-use assets | 155.3 | 158.8 |
Sundry | 99.8 | 118.4 |
Total other assets | 2,390.5 | 2,447.5 |
TOTAL ASSETS | 4,982 | 4,816.4 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 51.2 | 51.1 |
Current portion of operating lease liabilities | 39.6 | 39.3 |
Accounts payable | 429.1 | 463.4 |
Accrued expenses | 244 | 281 |
Other current liabilities | 90.8 | 93.3 |
Total current liabilities | 854.7 | 928.1 |
LONG-TERM LIABILITIES | ||
Long-term debt | 2,415.2 | 2,066.5 |
Operating lease liabilities | 117.9 | 121.6 |
Other long-term liabilities | 158.5 | 173.5 |
Deferred income taxes | 197.1 | 214.2 |
Total long-term liabilities | 2,888.7 | 2,575.8 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock | 2 | 2 |
Additional contributed capital | 533.5 | 536.1 |
Retained earnings | 2,723.5 | 2,734.5 |
Accumulated other comprehensive loss | (147.3) | (76.8) |
Treasury stock | (1,873.5) | (1,883.8) |
Total Leggett & Platt, Inc. equity | 1,238.2 | 1,312 |
Noncontrolling interest | 0.4 | 0.5 |
Total equity | 1,238.6 | 1,312.5 |
TOTAL LIABILITIES AND EQUITY | $ 4,982 | $ 4,816.4 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization | $ 237.6 | $ 222.3 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net trade sales | $ 1,045.5 | $ 1,155.1 |
Cost of goods sold | 822.7 | 922.1 |
Gross profit | 222.8 | 233 |
Selling and administrative expenses | 117.8 | 118.6 |
Amortization of intangibles | 16.4 | 14.1 |
Impairments | 3.5 | 2.9 |
Other (income) expense, net | 4.4 | (0.8) |
Earnings before interest and income taxes | 80.7 | 98.2 |
Interest expense | 20.9 | 21.4 |
Interest income | 0.9 | 1.4 |
Earnings before income taxes | 60.7 | 78.2 |
Income taxes | 15 | 17.1 |
Net earnings | 45.7 | 61.1 |
Loss attributable to noncontrolling interest, net of tax | 0 | 0.1 |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 45.7 | $ 61.2 |
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | ||
Basic (in dollars per share) | $ 0.34 | $ 0.46 |
Diluted (in dollars per share) | $ 0.34 | $ 0.45 |
Weighted average shares outstanding | ||
Basic (in shares) | 135.4 | 134.4 |
Diluted (in shares) | 135.6 | 135 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 45.7 | $ 61.1 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (65.5) | 8.8 |
Cash flow hedges | (6.3) | 3.9 |
Defined benefit pension plans | 1.2 | 0.5 |
Other comprehensive income (loss) | (70.6) | 13.2 |
Comprehensive income (loss) | (24.9) | 74.3 |
Add: comprehensive loss attributable to noncontrolling interest | 0.1 | 0.1 |
Comprehensive income (loss) attributable to Leggett & Platt, Inc. | $ (24.8) | $ 74.4 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 45.7 | $ 61.1 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 30.1 | 29.1 |
Amortization of intangibles and supply agreements | 17.4 | 17.2 |
Impairments | 3.5 | 2.9 |
Provision for losses on accounts and notes receivable | 19.8 | 0.9 |
Writedown of inventories | 3.1 | 4.7 |
Deferred income tax (benefit) expense | (15.1) | 3.8 |
Stock-based compensation | 7.5 | 7.8 |
Other, net | 7.8 | (3.3) |
Increases/decreases in, excluding effects from acquisitions and divestitures: | ||
Accounts and other receivables | (7.1) | (17.4) |
Inventories | (34.3) | 13.9 |
Other current assets | (3.4) | (2.9) |
Accounts payable | (27.8) | (67.1) |
Accrued expenses and other current liabilities | (36.8) | (19.3) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 10.4 | 31.4 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (24.2) | (31.8) |
Purchases of companies, net of cash acquired | 0 | (1,244.3) |
Other, net | 6.9 | (1.1) |
NET CASH USED FOR INVESTING ACTIVITIES | (17.3) | (1,277.2) |
FINANCING ACTIVITIES | ||
Additions to long-term debt | 0 | 993.3 |
Payments on long-term debt | (12.5) | (0.9) |
Change in commercial paper and short-term debt | 352.6 | 296.9 |
Dividends paid | (52.7) | (49.6) |
Issuances of common stock | 0.6 | 6.5 |
Purchases of common stock | (8.2) | (8.5) |
Other, net | (0.8) | (1) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 279 | 1,236.7 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (13.9) | 4.3 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 258.2 | (4.8) |
CASH AND CASH EQUIVALENTS—January 1, | 247.6 | 268.1 |
CASH AND CASH EQUIVALENTS—March 31, | $ 505.8 | $ 263.3 |
INTERIM PRESENTATION
INTERIM PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM PRESENTATION | INTERIM PRESENTATION The interim financial statements of Leggett & Platt, Incorporated (we, us or our) included herein have not been audited by an independent registered public accounting firm. The statements include all adjustments, including normal recurring accruals, which management considers necessary for a fair statement of our financial position and operating results for the periods presented. We have prepared the statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of results to be expected for an entire year. The December 31, 2019 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. Reclassifications Certain reclassifications have been made to the prior period's information in the Notes to the Consolidated Condensed Financial Statements to conform to the first quarter 2020 for segment reporting changes in our management structure and all related internal reporting (See Note 4 - Segment Information). These reclassifications did not impact our consolidated earnings or assets of the company, and all prior periods presented have been restated to conform with these changes. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Performance Obligations and Shipping and Handling Costs We recognize revenue when performance obligations under the terms of a contract with our customers are satisfied. Substantially all of our revenue is recognized upon transfer of control of our products to our customers, which is generally upon shipment from our facilities or upon delivery to our customers' facilities and is dependent on the terms of the specific contract. This conclusion considers the point at which our customers have the ability to direct the use of and obtain substantially all of the remaining benefits of the products that are transferred. Substantially all unsatisfied performance obligations as of March 31, 2020, will be satisfied within one year or less. Shipping and handling costs are included as a component of "Cost of goods sold". Sales, value added, and other taxes collected in connection with revenue-producing activities are excluded from revenue. Sales Allowances and Returns The amount of consideration we receive and revenue we recognize varies with changes in various sales allowances, discounts and rebates (variable consideration) that we offer to our customers. We reduce revenue by our estimates of variable consideration based on contract terms and historical experience. Changes in estimates of variable consideration for the periods presented were not material. Some of our products transferred to customers can be returned, and we recognize the following for this right: • An estimated refund liability and a corresponding reduction to revenue based on historical returns experience. • An asset and a corresponding reduction to cost of sales for our right to recover products from customers upon settling the refund liability. We reduce the carrying amount of these assets by estimates of costs associated with the recovery and any additional expected reduction in value. Our refund liability and the corresponding asset associated with our right to recover products from our customers were immaterial at March 31, 2020. Other We expect that at contract inception, the time period between when we transfer a promised good to our customer and our receipt of payment from that customer for that good will be one year or less (our typical trade terms are 30 to 60 days for U.S. customers and up to 90 days for our international customers). We generally expense costs of obtaining a contract because the amortization period would be one year or less. Revenue by Product Line We disaggregate revenue by customer group, which is the same as our product lines for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. For information on our new segment structure, see Note 4. Three Months Ended March 31, 2020 2019 Bedding Products Bedding group $ 490.6 $ 554.3 490.6 554.3 Specialized Products Automotive group 173.7 196.1 Aerospace Products group 38.4 39.4 Hydraulic Cylinders group 22.4 27.4 234.5 262.9 Furniture, Flooring & Textile Products Home Furniture group 81.2 90.9 Work Furniture group 63.6 73.2 Flooring & Textile Products group 175.6 173.8 320.4 337.9 $ 1,045.5 $ 1,155.1 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. To reflect how we manage our newly aligned businesses and in conjunction with the change in executive officer leadership, our management organizational structure and all related internal reporting changed effective January 1, 2020. As a result, our segment reporting has changed to reflect the new structure. This segment change was retrospectively applied to all prior periods presented. The new Bedding Products segment consists of the former Residential Products and Industrial Products segments, plus the Consumer Products Group (which is renamed the Adjustable Bed business unit), minus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group). The new Furniture, Flooring & Textile Products segment consists of the former Furniture Products segment, plus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group) minus the Consumer Products Group (which is renamed the Adjustable Bed business unit). Our Specialized Products segment was not changed. We have three operating segments that supply a wide range of products: • Bedding Products: This segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private-label finished mattresses for bedding brands and steel rod and drawn steel wire to our other operations and to external customers to make mechanical springs and many other end products. We also produce adjustable bed bases. • Specialized Products: This segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries. • Furniture, Flooring & Textile Products: This segment supplies a wide range of components for residential and work furniture manufacturers, as well as select lines of private-label finished furniture. We also produce or distribute flooring underlayment, fabric, and geo components. Each reportable segment has an executive vice president who has accountability to and maintains regular contact with our chief executive officer, who is the chief operating decision maker (CODM). The operating results and financial information reported through the segment structure are regularly reviewed and used by the CODM to evaluate segment performance, allocate overall resources and determine management incentive compensation. The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. We evaluate performance based on Earnings Before Interest and Taxes (EBIT). Intersegment sales are made primarily at prices that approximate market-based selling prices. Centrally incurred costs are allocated to the segments based on estimates of services used by the segment. Certain of our general and administrative costs and miscellaneous corporate income and expenses are allocated to the segments based on sales or other appropriate metrics. These allocated corporate costs include depreciation and other costs and income related to assets that are not allocated or otherwise included in the segment assets. A summary of segment results from continuing operations is shown in the following tables. Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Three Months Ended March 31, 2020 Bedding Products $ 490.6 $ 9.6 $ 500.2 $ 30.0 $ 26.8 Specialized Products 234.5 .8 235.3 27.7 11.2 Furniture, Flooring & Textile Products 320.4 5.2 325.6 26.5 6.5 Intersegment eliminations and other 2, 3 (3.5) 3.0 $ 1,045.5 $ 15.6 $ 1,061.1 $ 80.7 $ 47.5 Three Months Ended March 31, 2019 Bedding Products $ 554.3 $ 10.2 $ 564.5 $ 44.1 $ 24.8 Specialized Products 262.9 .9 263.8 35.7 10.2 Furniture, Flooring & Textile Products 337.9 4.3 342.2 18.4 6.6 Intersegment eliminations and other 2 — 4.7 $ 1,155.1 $ 15.4 $ 1,170.5 $ 98.2 $ 46.3 1 See Note 3 for revenue by product line. 2 Depreciation and Amortization: Other relates to non-operating assets (assets not included in segment assets) and is allocated to segment EBIT as discussed above. 3 2020 EBIT: Other includes a charge to write off stock associated with a business divested in 2008. Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include working capital (all current assets and current liabilities) plus net property, plant and equipment. Segment assets for all years are reflected at their estimated average for the periods presented. March 31, December 31, Bedding Products $ 788.7 $ 816.9 Specialized Products 309.7 346.4 Furniture, Flooring & Textile Products 353.9 383.2 Average current liabilities included in segment numbers above 666.4 735.3 Unallocated assets 1 2,912.8 2,662.7 Difference between average assets and period-end balance sheet (49.5) (128.1) Total assets $ 4,982.0 $ 4,816.4 |
RESTRUCTURING AND IMPAIRMENT CH
RESTRUCTURING AND IMPAIRMENT CHARGES | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT CHARGES | RESTRUCTURING AND IMPAIRMENT CHARGES We implemented various cost reduction initiatives to improve our operating cost structures in the periods presented. These cost initiatives have, among other actions, included workforce reductions and the closure or consolidation of certain operations. Except for the 2018 Restructuring Plan (Plan) discussed below, none of these initiatives has individually resulted in a material charge to earnings. In December 2018, we committed to the Plan primarily associated with our Furniture, Flooring & Textiles Products and Bedding Products segments, including the Home Furniture Group (which produces furniture components for the upholstered furniture industry) and a portion of the Adjustable Bed business (which supplied ornamental beds, bed frames and other sleep accessories sold to retailers). Both of these businesses had underperformed expectations primarily from weaker demand and higher raw material costs. These restructuring activities were substantially complete as of December 31, 2019. In 2019, we modified the Plan to include four small facilities in the Bedding Products segment, most of which were substantially complete by the end of the year. All restructuring activities with this Plan are materially complete. The following table presents information associated with this Plan: Total Amount Incurred to Date Three Months Ended Total Incurred Full Year 2019 and 2018 2018 Restructuring Plan Restructuring and restructuring-related $ 19.4 $ .7 $ 18.7 Impairment costs associated with this plan 12.7 — 12.7 $ 32.1 $ .7 $ 31.4 Amount of total that represents cash charges $ 15.5 $ .6 $ 14.9 The table below presents all restructuring and restructuring-related activity for the periods presented; the majority of the 2020 costs are related to the Plan: Three Months Ended March 31, 2020 2019 Charged to other (income) expense, net: Severance and other restructuring costs $ .6 $ 1.2 Charged to cost of goods sold: Inventory obsolescence and other .1 2.4 Total restructuring and restructuring-related costs $ .7 $ 3.6 Amount of total that represents cash charges $ .6 $ 1.2 Restructuring and restructuring-related charges by segment were as follows: Three Months Ended March 31, 2020 2019 Bedding Products $ .6 $ 2.9 Furniture, Flooring & Textile Products .1 .7 Total $ .7 $ 3.6 The accrued liability associated with our total restructuring initiatives consisted of the following: Balance at December 31, 2019 Add: 2020 Charges Less: 2020 Payments Balance at March 31, 2020 Termination benefits $ 3.5 $ .2 $ 1.2 $ 2.5 Other restructuring costs .7 .4 .5 .6 $ 4.2 $ .6 $ 1.7 $ 3.1 Impairment charges Impairment charges (pretax) are reported in “Impairments” in the Consolidated Condensed Statements of Operations and are summarized in the following table: Three Months Ended March 31, 2020 2019 Other Long-Lived Assets Impairments Other Long-Lived Assets Impairments Bedding Products $ — $ 2.9 Unallocated 1 3.5 — Total impairment charges $ 3.5 $ 2.9 1 This is a charge to write off stock associated with a business divested in 2008. We test other long-lived assets for recoverability at year end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value and the resulting impairment charges noted above were based primarily upon offers from potential buyers, third-party estimates of fair value less selling costs or estimated future cash flows. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three Months Ended 2020 2019 Net earnings: Net earnings $ 45.7 $ 61.1 Earnings attributable to noncontrolling interest, net of tax $ — $ .1 Net earnings attributable to Leggett & Platt common shareholders $ 45.7 $ 61.2 Weighted average number of shares (in millions): Weighted average number of common shares used in basic EPS 135.4 134.4 Dilutive effect of stock-based compensation .2 .6 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 135.6 135.0 Basic and Diluted EPS: Basic EPS attributable to Leggett & Platt common shareholders $ .34 $ .46 Diluted EPS attributable to Leggett & Platt common shareholders $ .34 $ .45 Other information: Anti-dilutive shares excluded from diluted EPS computation .2 .1 Cash dividends declared per share $ .40 $ .38 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES Initial adoption of new ASU Effective January 1, 2020, we adopted ASU 2016-13 “Financial Instruments—Credit Losses” (Topic 326), which amended the impairment model to require a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. In accordance with guidance, the new standard was adopted using the modified retrospective approach as of the effective date; prior periods were not restated. The increase to the allowance for doubtful accounts, net of the deferred tax impact, was recorded as an adjustment to opening retained earnings. The cumulative effect of applying Topic 326 to our Consolidated Condensed Balance Sheet was as follows: Balance at December 31, 2019 as Previously Reported Topic 326 Adjustments Balance at January 1, 2020 Trade receivables, net 1 $ 564.4 $ (3.3) $ 561.1 Other current assets 973.7 — 973.7 Property, plant and equipment 830.8 — 830.8 Other assets 2,447.5 — 2,447.5 Total assets $ 4,816.4 $ (3.3) $ 4,813.1 Current liabilities $ 928.1 $ — $ 928.1 Long-term liabilities 2 2,575.8 (.8) 2,575.0 Retained earnings 2,734.5 (2.5) 2,732.0 Other equity (1,422.0) — (1,422.0) Total assets $ 4,816.4 $ (3.3) $ 4,813.1 1 This adjustment is to increase our allowance for doubtful accounts for estimated expected credit losses on trade receivables over their contractual life. 2 This adjustment is to reflect a decrease in deferred income tax liability as a result of the change in the allowance for doubtful accounts. Trade receivables are recorded at the invoiced amount and generally do not bear interest. Credit is also occasionally extended in the form of a note receivable to facilitate our customers' operating cycles. Other notes receivable are established in special circumstances, such as in partial payment for the sale of a business or to support other business opportunities. Other notes receivable generally bear interest at market rates commensurate with the corresponding credit risk on the date of the origination. To determine our allowance for doubtful accounts under the new guidance, we are utilizing a pool approach to group our receivables with similar risk characteristics. Our pools correspond with our business units, which generally have similar terms, industry-specific conditions, and historical or expected loss patterns. Reserves are established for each pool based on their level of risk exposure. When credit deterioration occurs on a specific customer within a pool, we evaluate the receivable separately to estimate the expected credit loss based on the specific risk characteristics. Management reviews individual accounts and pools for factors such as the length of time that receivables are past due, the financial health of the companies involved, industry and macroeconomic considerations, and historical loss experience. A qualitative reserve is also established for any current macroeconomic conditions or reasonable and supportable forecasts that could impact the expected collectibility of all or a portion of our receivables portfolio. Account balances are charged against the allowance when it is probable the receivable will not be recovered. Interest income is not recognized for nonperforming accounts that are placed on nonaccrual status. For accounts on nonaccrual status, any interest payments received are applied against the balance of the nonaccrual account. Accounts and other receivables consisted of the following: March 31, 2020 December 31, 2019 Current Long-term Current Long-term Trade accounts receivable 1 $ 567.3 $ — $ 571.8 $ — Trade notes receivable 1.2 .8 1.1 .6 Total trade receivables 568.5 .8 572.9 .6 Other notes receivable 1 — 23.4 — 23.4 Taxes receivable, including income taxes 14.0 — 15.8 — Other receivables 8.2 — 11.7 — Subtotal other receivables 22.2 23.4 27.5 23.4 Total trade and other receivables 590.7 24.2 600.4 24.0 Allowance for doubtful accounts: Trade accounts receivable 1,2 (22.4) — (8.4) — Trade notes receivable (.1) — (.1) — Total trade receivables (22.5) — (8.5) — Other notes receivable 1 — (23.4) — (15.0) Total allowance for doubtful accounts (22.5) (23.4) (8.5) (15.0) Total net receivables $ 568.2 $ .8 $ 591.9 $ 9.0 1 The “Trade accounts receivable” and “Other notes receivable” line items above include $25.7 and $26.0 as of March 31, 2020 and December 31, 2019, respectively, from a customer in our Bedding Products segment who is experiencing financial difficulty and liquidity problems. This customer was placed on nonaccrual status in 2018, and became delinquent in quarterly interest payments in the first quarter of 2020. As a result, we have increased our reserve at March 31, 2020 to $25.7 ($23.4 for the note and $2.3 for the trade receivable). The reserve for this customer at December 31, 2019, was $16.0 ($15.0 for the note and $1.0 for the trade receivable). 2 The COVID-19 pandemic and resulting social and governmental restrictions 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" during the first quarter 2020 to reflect this increased collectibility risk. Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2019 Topic 326 Adjustment Balance at January 1, 2020 Add: Less: Balance at March 31, 2020 Trade accounts receivable $ 8.4 $ 3.3 $ 11.7 $ 11.4 $ .7 $ 22.4 Trade notes receivable .1 — .1 — — .1 Total trade receivables 8.5 3.3 11.8 11.4 .7 22.5 Other notes receivable 15.0 — 15.0 8.4 — 23.4 Total allowance for doubtful accounts $ 23.5 $ 3.3 $ 26.8 $ 19.8 $ .7 $ 45.9 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table recaps the components of stock-based and stock-related compensation for each period presented: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 To be settled with stock To be settled in cash To be settled with stock To be settled in cash Stock-based retirement plans contributions 1 $ (.3) $ .1 $ .6 $ .1 Discounts on various stock awards: Deferred Stock Compensation Program .5 — .6 — Stock-based retirement plans .2 — .2 — Discount Stock Plan .3 — .3 — Performance Stock Unit (PSU) awards: 2 2018 and later PSU - TSR based 2A .9 (2.8) .7 .8 2018 and later PSU - EBIT CAGR based 2B (2.1) (2.8) 1.6 2.0 2017 and prior PSU awards 2C — .1 .5 .4 Restricted Stock Unit (RSU) awards 3 4.7 — .5 — Profitable Growth Incentive (PGI) awards 4 — — — — Other, primarily non-employee directors restricted stock .4 — .2 — Total stock-related compensation expense 4.6 $ (5.4) 5.2 $ 3.3 Employee contributions for above stock plans 2.9 2.6 Total stock-based compensation $ 7.5 $ 7.8 Tax benefits on stock-based compensation expense $ 1.1 $ 1.2 Tax benefits on stock-based compensation payments 2.8 1.9 Total tax benefits associated with stock-based compensation $ 3.9 $ 3.1 Included below is the activity in our most significant stock-based plans: 1 Stock-Based Retirement Plans Participants in the Executive Stock Unit Program may contribute up to 10% (depending on certain qualifications) of their compensation above the threshold. Participant contributions are credited to a diversified investment account established for the participant. Leggett matching contributions to the plan, including dividend equivalents, are used to acquire stock units. Stock units are converted to common stock at a 1-to-1 ratio upon distribution from the program. 2 PSU Awards 2020 Changes to the PSU and RSU awards In November 2019, the Compensation Committee approved changes to our PSU and RSU award programs for 2020. Changes to the plans for executive officers are as follows: • Two-thirds of the target award value will be granted as PSUs based on relative TSR and EBIT CAGR over a three • One-third of the target award value will be granted as RSUs vesting in one-third increments over three years. During 2019 PSU awards were based on two equal measures: (i) Relative Total Shareholder Return (TSR = (Change in Stock Price + Dividends) ÷ Beginning Stock Price) and (ii) EBIT Compound Annual Growth Rate (EBIT CAGR). These components are discussed below. We intend to pay 50% in shares of our common stock and 50% in cash; although, we reserve the right, subject to Compensation Committee approval, to pay up to 100% in cash. 2A 2018 PSU - TSR based Most of the 2018 and later PSU awards are based 50% upon our TSR compared to a peer group. A small number of PSU awards are based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies. Grant date fair values are amortized using the straight-line method over the three The relative TSR vesting condition of the 2018 and later PSU awards contains the following conditions: • A service requirement—Awards generally “cliff” vest three • A market condition—Awards are based on our TSR as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately 300 companies). Participants will earn from 0% to 200% of the base award depending upon how our TSR ranks within the peer group at the end of the three 2B 2018 PSU - EBIT CAGR based Most of the 2018 and later PSU awards are based 50% upon our or the applicable segment's EBIT CAGR. Grant date fair values are calculated using the grant date stock price discounted for dividends over the vesting period. Expense is adjusted every quarter over the three The EBIT CAGR portion of this award contains the following conditions: • A service requirement—Awards generally “cliff” vest three • A performance condition—Awards are based on achieving specified EBIT CAGR performance targets for our or the applicable segment's EBIT during the third year of the performance period compared to the EBIT during the fiscal year immediately preceding the performance period. Participants will earn from 0% to 200% of the base award. In connection with the decision to move a significant portion of the long-term incentive opportunity from a two three two 2C 2017 and prior PSU Awards The 2017 and prior PSU awards were based solely on relative TSR. Vesting conditions were the same as (2A) above other than the maximum payout of 175% of the base award. The 2017 PSU award was paid out Q1 2020. Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented: Three Months Ended March 31, 2020 2019 TSR based Total shares base award .1 .1 Grant date per share fair value $ 38.23 $ 57.86 Risk-free interest rate 1.4 % 2.4 % Expected life in years 3.0 3.0 Expected volatility (over expected life) 24.0 % 21.5 % Expected dividend yield (over expected life) 3.6 % 3.4 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 40.52 $ 39.98 Vesting period in years 3.0 3.0 Three-Year Performance Cycle Award Year Completion Date TSR Performance Payout as a Number of Shares Cash Portion Distribution Date 2016 December 31, 2018 78th percentile —% — $ — First quarter 2019 2017 December 31, 2019 63rd percentile 49.0% .1 million $ 1.6 First quarter 2020 3 RSU Awards The RSU award has been amended so that those who retire (1) after age 65 or (2) after the date where the participant’s age plus years of service are greater than or equal to 70 years, will continue to receive shares that will vest after the retirement date. Expense associated with these retirement-eligible employees will be recognized immediately at the RSU grant date. For those employees who become retirement eligible after the grant date, any remaining expense associated with those RSUs will be recognized at the date the employee meets the retirement-eligible criteria. For more information on the 2020 RSU award changes see the PSU section above. 4 PGI Awards |
ACQUISITIONS
ACQUISITIONS | Dec. 09, 2019 |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The following table contains the estimated fair values (using inputs as discussed in Note 13 ) of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during 2019. Of the goodwill included in the table below, $126.4 is expected to be deductible for tax purposes. Three Months Ended March 31, 2019 Accounts receivable $ 72.4 Inventory 60.1 Property, plant and equipment 80.2 Goodwill 558.8 Other intangible assets: Customer relationships (15-year life) 372.7 Technology (15-year life) 173.3 Trademarks and trade names (15-year life) 65.8 Non-compete agreements and other (5-year life) 28.1 Other current and long-term assets 27.4 Current liabilities (43.9) Deferred income taxes (129.0) Other long-term liabilities (21.6) Net cash consideration $ 1,244.3 The following table summarizes acquisitions for the periods presented. Three Months Ended Number of Acquisitions Segment Product/Service March 31, 2020 None March 31, 2019 1 Bedding Products A leader in proprietary specialized foam technology, primarily for the bedding and furniture industries Certain of our prior years' acquisition agreements provide for additional consideration to be paid in cash at a later date and are recorded as liabilities at the acquisition date. At March 31, 2020 and December 31, 2019, our current liability for these future payments was $7.9 and $9.2, respectively. Components of the liability are based on estimates and contingent upon future events, therefore, the amounts may fluctuate materially until the payment dates. 2020 No businesses were acquired during the first quarter 2020. 2019 We acquired one business: • ECS, a leader in proprietary specialized foam technology, primarily for the bedding and furniture industries. Through this acquisition, we gained critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses. The acquisition date was January 16. The purchase price was $1,244.3 and, upon finalization of the purchase price allocation, added $559.3 of goodwill. The most significant other intangibles added were customer relationships and technology, whose finalized values were $372.3 and $173.3, respectively. There was no contingent consideration associated with this acquisition. Pro forma Results The following table summarizes, on an unaudited pro forma basis, the combined results of operations of Leggett and ECS as though the acquisition had occurred as of January 1, 2018. We have not provided pro forma results of operations related to other acquisitions, as these results were not material. The unaudited proforma financial information below is not necessarily indicative of the results of operations that would have been realized had the ECS acquisition occurred as of January 1, 2018, nor is it meant to be indicative of any future results of operations. It does not include benefits expected from revenue or product mix enhancements, operating synergies or cost savings that may be realized or any estimated future costs that may be incurred to integrate the ECS business. Three Months Ended March 31, 2019 Net trade sales $ 1,176.7 Net earnings 62.9 EPS basic .47 EPS diluted .47 The information above reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including: • Amortization and depreciation adjustments relating to fair value estimates of intangible and tangible assets; • Incremental interest expense on debt incurred in connection with the ECS acquisition; • Amortization of the fair value adjustment to inventory as though the transaction occurred on January 1, 2018; • Recognition of transaction costs as though the transaction occurred on January 1, 2018; and • Estimated tax impacts of the pro forma adjustments. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table recaps the components of inventory for each period presented: March 31, December 31, Finished goods $ 316.6 $ 308.7 Work in process 52.0 54.4 Raw materials and supplies 334.8 323.5 LIFO reserve (47.9) (49.9) Total inventories, net $ 655.5 $ 636.7 All inventories are stated at the lower of cost or net realizable value. We generally use standard costs which include materials, labor and production overhead at normal production capacity. The last-in, first-out (LIFO) method is primarily used to value our domestic steel-related inventories. LIFO represents approximately 40% of our inventories. For the remainder of the inventories, we principally use the first-in, first-out (FIFO) method, which is representative of our standard costs. For these inventories, the FIFO cost for the periods presented approximated expected replacement cost. Inventories are reviewed at least quarterly for slow-moving and potentially obsolete items using actual inventory turnover and, if necessary, are written down to estimated net realizable value. Restructuring activity and decisions to narrow product offerings (as discussed in Note 5 ) also impact the estimated net realizable value of inventories. We have had no material changes in inventory writedowns or slow-moving and obsolete inventory reserves in any of the years presented. The following table contains the LIFO benefit for each of the periods presented. Three Months Ended March 31, 2020 2019 LIFO benefit $ 2.0 $ — |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Employer contributions for 2020 are expected to approximate $2.0. The following table provides interim information as to our domestic and foreign defined benefit pension plans: Three Months Ended 2020 2019 Components of net pension expense Service cost $ 1.1 $ 1.0 Interest cost 1.9 2.2 Expected return on plan assets (3.0) (2.9) Recognized net actuarial loss 1.0 .8 Net pension expense $ 1.0 $ 1.1 The components of net pension expense, other than the service cost component, are included in the line item “Other (income) expense, net” in the Consolidated Condensed Statements of Operations. |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2020 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2020 $ 1,312.5 $ 2,734.5 $ 538.1 $ (1,883.8) $ .5 $ (76.8) Effect of accounting change on prior years, net of tax (Topic 326-See Note 7 ) (2.5) (2.5) — — — — Adjusted beginning balance, January 1, 2020 1,310.0 2,732.0 538.1 (1,883.8) .5 (76.8) Net earnings attributable to Leggett & Platt, Inc. common shareholders 45.7 45.7 — — — — Dividends declared (See Note 6 ) (52.8) (54.2) 1.4 — — — Treasury stock purchased (8.4) — — (8.4) — — Treasury stock issued 2.5 — (16.2) 18.7 — — Foreign currency translation adjustments (65.5) — — — (.1) (65.4) Cash flow hedges, net of tax (6.3) — — — — (6.3) Defined benefit pension plans, net of tax 1.2 — — — — 1.2 Stock-based compensation transactions, net of tax 12.2 — 12.2 — — — Ending balance, March 31, 2020 $ 1,238.6 $ 2,723.5 $ 535.5 $ (1,873.5) $ .4 $ (147.3) Three Months Ended March 31, 2019 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2019 $ 1,157.6 $ 2,613.8 $ 529.1 $ (1,908.3) $ .6 $ (77.6) Effect of accounting change on prior years, net of tax (Topic 842) .1 .1 — — — — Adjusted beginning balance, January 1, 2019 1,157.7 2,613.9 529.1 (1,908.3) .6 (77.6) Net earnings attributable to Leggett & Platt, Inc. common shareholders 61.1 61.2 — — (.1) — Dividends declared (See Note 6 ) (49.9) (51.2) 1.3 — — — Treasury stock purchased (11.7) — — (11.7) — — Treasury stock issued 13.8 — (14.6) 28.4 — — Foreign currency translation adjustments 8.8 — — — — 8.8 Cash flow hedges, net of tax 3.9 — — — — 3.9 Defined benefit pension plans, net of tax .5 — — — — .5 Stock-based compensation transactions, net of tax 11.0 — 11.0 — — — Ending balance, March 31, 2019 $ 1,195.2 $ 2,623.9 $ 526.8 $ (1,891.6) $ .5 $ (64.4) The following tables set forth the components of and changes in each component of accumulated other comprehensive income (loss) for each of the periods presented: Three Months Ended March 31, Foreign Cash Defined Accumulated Balance, January 1, 2020 $ (21.5) $ (4.1) $ (51.2) $ (76.8) Other comprehensive income (loss) (65.5) (7.6) .6 (72.5) Reclassifications, pretax 1 — .3 1.0 1.3 Income tax effect — 1.0 (.4) .6 Attributable to noncontrolling interest .1 — — .1 Balance, March 31, 2020 $ (86.9) $ (10.4) $ (50.0) $ (147.3) Balance, January 1, 2019 $ (26.5) $ (11.8) $ (39.3) $ (77.6) Other comprehensive income (loss) 8.8 3.1 (.2) 11.7 Reclassifications, pretax 2 — 1.9 .8 2.7 Income tax effect — (1.1) (.1) (1.2) Balance, March 31, 2019 $ (17.7) $ (7.9) $ (38.8) $ (64.4) 1 2020 pretax reclassifications are comprised of: Net trade sales $ — $ (.5) $ — $ (.5) Cost of goods sold; selling and administrative expenses — (.3) — (.3) Interest expense — 1.1 — 1.1 Other income (expense), net — — 1.0 1.0 Total reclassifications, pretax $ — $ .3 $ 1.0 $ 1.3 2 2019 pretax reclassifications are comprised of: Net trade sales $ — $ 1.0 $ — $ 1.0 Cost of goods sold; selling and administrative expenses — (.2) — (.2) Interest expense — 1.1 — 1.1 Other income (expense), net — — .8 .8 Total reclassifications, pretax $ — $ 1.9 $ .8 $ 2.7 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE We utilize fair value measures for both financial and non-financial assets and liabilities. Items measured at fair value on a recurring basis Fair value measurements are established using a three level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following categories: • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, volatility factors, current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. • Level 3: Unobservable inputs that are not corroborated by market data. The areas in which we utilize fair value measures of financial assets and liabilities are presented in the table below. As of March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 152.6 $ — $ 152.6 Derivative assets 1 ( Note 14 ) — 1.3 — 1.3 Diversified investments associated with the Executive Stock Unit Program (ESUP) 1 34.8 — — 34.8 Total assets $ 34.8 $ 153.9 $ — $ 188.7 Liabilities: Derivative liabilities 1 ( Note 14 ) $ — $ 11.4 $ — $ 11.4 Liabilities associated with the ESUP 1 34.3 — — 34.3 Total liabilities $ 34.3 $ 11.4 $ — $ 45.7 As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 153.7 $ — $ 153.7 Derivative assets 1 ( Note 14 ) — 4.0 — 4.0 Diversified investments associated with the ESUP 1 41.0 — — 41.0 Total assets $ 41.0 $ 157.7 $ — $ 198.7 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ .9 $ — $ .9 Liabilities associated with the ESUP 1 40.6 — — 40.6 Total liabilities $ 40.6 $ .9 $ — $ 41.5 1 Includes both current and long-term amounts. There were no transfers between Level 1 and Level 2 for any of the periods presented. The fair value for fixed rate debt (Level 2) was approximately $20.0 less than carrying value of $1,586.1 at March 31, 2020 and was approximately $98.6 greater than carrying value of $1,585.6 at December 31, 2019. Items measured at fair value on a non-recurring basis The primary areas in which we use fair value measurements of non-financial assets and liabilities are allocating purchase price to the assets and liabilities of acquired companies as discussed in Note 9 and evaluating long-term assets (including goodwill) for potential impairment. Determining fair values for these items requires significant judgment and includes a variety of methods and models that utilize significant Level 3 inputs. For methodologies used in determining fair value reference is made to Footnote A in the Notes to Consolidated Financial Statements in our Form 10-K filed February 20, 2020. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges Derivative financial instruments that we use to hedge forecasted transactions and anticipated cash flows are as follows: Currency Cash Flow Hedges —The foreign currency hedges manage risk associated with exchange rate volatility of various currencies. Interest Rate Cash Flow Hedges —We have also occasionally used interest rate cash flow hedges to manage interest rate risks. The effective changes in fair value of unexpired contracts are recorded in accumulated other comprehensive income and reclassified to income or expense in the period in which earnings are impacted. Cash flows from settled contracts are presented in the category consistent with the nature of the item being hedged. (Settlements associated with the sale or production of product are presented in operating cash flows, and settlements associated with debt issuance are presented in financing cash flows.) Fair Value Hedges and Derivatives not Designated as Hedging Instruments These derivatives typically manage foreign currency risk associated with subsidiaries’ assets and liabilities, and gains or losses are recognized currently in earnings. Cash flows from settled contracts are presented in the category consistent with the nature of the item being hedged. Expense for Underlying Transactions Probable of Not Occurring In response to the COVID-19 pandemic, our projected sales have been adversely impacted in the short term and as a result, we believe that the underlying transactions are probable of not occurring. Accordingly, we immediately recognized a loss of $.5, of which $.4 represents the previously deferred losses of our hedge positions that had been recorded in accumulated other comprehensive income (AOCI). These amounts are presented in the same line of the income statement as the expected hedged item (net trade sales). The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item. Expiring at various dates through: Total USD As of March 31, 2020 Assets Liabilities Other Current Other Current Other Long-Term Liabilities Derivatives designated as hedging instruments Cash flow hedges: Currency hedges: Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries Dec 2021 $ 174.7 $ .6 $ 4.0 $ .4 Future DKK sales of Polish subsidiary Dec 2021 24.4 — .9 .2 Future EUR sales of Chinese and UK subsidiaries Dec 2021 35.5 .2 .2 .1 Future MXN purchases of a USD subsidiary Dec 2021 11.9 — 1.3 .3 Total cash flow hedges .8 6.4 1.0 Fair value hedges: Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) Jun 2020 112.3 .3 4.0 — Derivatives not designated as hedging instruments Non-deliverable hedges (EUR and USD) exposed to the CNY Mar 2021 10.1 .1 — — USD receivable on a CAD subsidiary Apr 2020 23.0 .1 — — Total derivatives not designated as hedging instruments .2 — — $ 1.3 $ 10.4 $ 1.0 Expiring at various dates through: Total USD As of December 31, 2019 Assets Liabilities Other Current Sundry Other Current Derivatives designated as hedging instruments Cash flow hedges: Currency hedges: Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries Sep 2021 $ 138.5 $ 1.3 $ .2 $ .7 Future MXN purchases of a USD subsidiary Jun 2021 9.8 .5 .1 — Future DKK sales of a Polish subsidiary Jun 2021 21.1 .3 — — Future EUR sales of Chinese and UK subsidiaries Jun 2021 29.9 .7 — — Total cash flow hedges 2.8 .3 .7 Fair value hedges: Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, MXN, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) May 2020 112.0 .8 — .1 Derivatives not designated as hedging instruments Non-deliverable hedges (EUR and USD) exposed to the CNY Dec 2020 10.1 .1 — — Hedge of USD receivable on a CAD subsidiary Jan 2020 5.0 — — .1 Total derivatives not designated as hedging instruments .1 — .1 $ 3.7 $ .3 $ .9 The following table sets forth the pretax (gains) losses for our hedging activities for the years presented. This schedule includes reclassifications (including impact of underlying transactions probable of not occurring) from accumulated other comprehensive income (see Note 12 ) as well as derivative settlements recorded directly to income or expense. Caption in Consolidated Condensed Statements of Operations Amount of (Gain) Loss Recorded in Income Three Months Ended 2020 2019 Derivatives designated as hedging instruments Interest rate cash flow hedges Interest expense $ 1.1 $ 1.1 Currency cash flow hedges Net trade sales .6 .4 Currency cash flow hedges Cost of goods sold (.3) (.3) Total cash flow hedges 1.4 1.2 Fair value hedges Other (income) expense, net 5.0 .4 Derivatives not designated as hedging instruments Other (income) expense, net (1.3) (.2) Total derivative instruments $ 5.1 $ 1.4 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES We are a party to various proceedings and matters involving employment, intellectual property, environmental, taxation, vehicle-related personal injury and other laws. When it is probable, in management's judgment, that we may incur monetary damages or other costs resulting from these proceedings or other claims, and we can reasonably estimate the amounts, we record appropriate accruals in the financial statements and make charges against earnings. For all periods presented, we have recorded no material charges against earnings. Also, when it is reasonably possible that we may incur additional loss in excess of recorded accruals and we can reasonably estimate the additional losses or range of losses, we disclose such additional reasonably possible losses in these notes. For specific information regarding accruals, cash payments to settle litigation contingencies, and reasonably possible losses in excess of accruals, please see “Accruals and Reasonably Possible Losses in Excess of Accruals” below. Brazilian Value-Added Tax Matters All dollar amounts presented in this section have been updated since our last filing to reflect the U.S. Dollar (USD) equivalent of Brazilian Real (BRL). We deny all allegations in the below Brazilian actions. We believe that we have valid bases to contest such actions and are vigorously defending ourselves. However, these contingencies are subject to uncertainties, and based on current known facts, we believe that it is reasonably possible (but not probable) that we may incur losses of approximately $10.5 including interest and attorney fees with respect to these assessments. Therefore, because it is not probable we will incur a loss, no accrual has been recorded for Brazilian value-added tax (VAT) matters. As of the date of this filing, we have $7.9 on deposit with the Brazilian government to partially mitigate interest and penalties that may accrue while we work through these matters. If we are successful in our defense of these assessments, the deposits are refundable with interest. These deposits are recorded as a long-term asset on our balance sheet. Brazilian Federal Cases. On December 22 and December 29, 2011, and December 17, 2012, the Brazilian Finance Ministry, Federal Revenue Office (Finance Ministry) issued notices of violation against our wholly-owned subsidiary, Leggett & Platt do Brasil Ltda. (L&P Brazil) in the amount of $1.5, $.1 and $2.6, respectively. The Finance Ministry claimed that for November 2006 and continuing through 2011, L&P Brazil used an incorrect tariff code for the collection and payment of VAT primarily on the sale of mattress innerspring units in Brazil (VAT Rate Dispute). L&P Brazil has denied the violations. On December 4, 2015, we filed an action related to the $2.6 assessment ($3.1 with updated interest), in Sorocaba Federal Court. On October 18, 2018, we filed an action related to the $1.5 assessment ($2.3 with updated interest), in Sorocaba Federal Court. The $.1 assessment remains pending at the second administrative level. These actions seek to annul the entire assessments and remain pending. In addition, L&P Brazil received assessments on December 22, 2011, and June 26, July 2 and November 5, 2012, and September 13, 2013, from the Finance Ministry where it challenged L&P Brazil’s use of tax credits in years 2005 through 2010. Such credits are generated based upon the VAT rate used by L&P Brazil on the sale of mattress innersprings. On September 4, 2014, the Finance Ministry issued additional assessments regarding this same issue, but covering certain periods of 2011 and 2012. L&P Brazil filed its defenses denying the assessments. L&P Brazil has received aggregate assessments and penalties totaling $1.3 ($1.9 updated with interest) on these denials of tax credit matters. L&P Brazil has denied the violations. Some of these cases have been administratively closed and combined with other actions, while the remaining cases are pending at the administrative level. On September 11, 2017, L&P Brazil received an "isolated penalty" from the Finance Ministry in the amount of $.1 regarding the use of these credits. L&P Brazil filed its defense disputing the penalty. These cases remain pending. On February 1, 2013, the Finance Ministry filed a Tax Collection action against L&P Brazil in the Camanducaia Judicial District Court, alleging the untimely payment of $.1 of social contributions (social security and social assistance payments) for September to October 2010. L&P Brazil argued the payments were not required to be made because of the application of tax credits generated by L&P Brazil's use of a correct VAT rate on the sale of mattress innersprings. On June 26, 2014, the Finance Ministry issued a new notice of violation against L&P Brazil in the amount of $.5 covering 2011 through 2012 on the same subject matter. L&P Brazil has filed its defenses. These cases remain pending. On July 1, 2014, the Finance Ministry rendered a preliminary decision alleging that L&P Brazil improperly offset $.1 of social contributions due in 2011. L&P Brazil denied the allegations. L&P Brazil is defending on the basis that the social contribution amounts were correctly offset with tax credits generated by L&P Brazil's use of a correct VAT rate on the sale of mattress innersprings. On December 15, 2015, the Finance Ministry issued an assessment against L&P Brazil in the amount of $.1 for August 2010 through May 2011, as a penalty for L&P Brazil's requests to offset tax credits. We filed our defense denying the assessment. On August 8, 2019, the Finance Ministry issued an assessment against L&P Brazil in the amount of $.1 alleging that L&P Brazil improperly offset social contributions due between 2015 and 2016. These cases remain pending. State of S ã o Paulo, Brazil Cases. The State of São Paulo, Brazil (SSP) on October 4, 2012, issued a Tax Assessment against L&P Brazil in the amount of $1.0 for the tax years 2009 through 2011 regarding the same VAT Rate Dispute but as applicable to the sale of mattress innerspring units in the SSP (SSP VAT Rate Dispute). On June 21, 2013, the SSP converted the Tax Assessment to a tax collection action against L&P Brazil in the amount of $1.2 in Sorocaba Judicial District Court. L&P Brazil has denied all allegations. This case remains pending. L&P Brazil also received a Notice of Tax Assessment from the SSP dated March 27, 2014 in the amount of $.6 for tax years January 2011 through August 2012 regarding the SSP VAT Rate Dispute. L&P Brazil filed its response denying the allegations, but the tax assessment was maintained at the administrative level. On June 9, 2016, L&P Brazil filed an action in Sorocaba State Court to annul the entire assessment. The Court ruled against L&P Brazil on the assessment but lowered the interest amount. The Court of Appeals upheld the unfavorable ruling and we filed a Special and Extraordinary appeal to the High Court on October 10, 2017. The High Court denied our appeal on February 18, 2019. L&P Brazil filed an interlocutory appeal on March 20, 2019. On November 5, 2019, SSP announced an amnesty program that provides discounts on penalties and interest on SSP assessments. We decided to move forward with the amnesty program as it relates to the $.6 assessment (updated to $.9 with interest). We expect to pay $.5 to resolve this matter using a portion of our $.9 cash deposit. We also expect the return of approximately $.4 consisting of cash deposit and accrued interest. State of Minas Gerais, Brazil Cases. On December 18, 2012, the State of Minas Gerais, Brazil issued a tax assessment to L&P Brazil relating to the same VAT Rate Dispute but as applicable to the sale of mattress innerspring units in Minas Gerais from March 2008 through August 2012 in the amount of $.3. L&P Brazil filed its response denying any violation. The Minas Gerais Taxpayer's Council ruled against us, and on June 5, 2014, L&P Brazil filed a Motion to Stay the Execution of the Judgment in Camanducaia Judicial District Court, which remains pending. Accruals and Reasonably Possible Losses in Excess of Accruals Accruals for Probable Losses Although we deny liability in all currently threatened or pending litigation proceedings in which we are or may be a party and believe that we have valid bases to contest all claims threatened or made against us, we have recorded a litigation contingency accrual for our reasonable estimate of probable loss for pending and threatened litigation proceedings, in aggregate, in millions, as follows: Three Months Ended March 31, 2020 2019 Litigation contingency accrual - Beginning of period $ .7 $ 1.9 Adjustment to accruals - expense (income) .1 — Currency (.1) — Cash payments (.1) — Litigation contingency accrual - End of period $ .6 $ 1.9 The above litigation contingency accruals do not include accrued expenses related to workers' compensation, vehicle-related personal injury, product and general liability claims, taxation issues and environmental matters, some of which may contain a portion of litigation expense. However, any litigation expense associated with these categories is not anticipated to have a material effect on our financial condition, results of operations or cash flows. Reasonably Possible Losses in Excess of Accruals Although there are a number of uncertainties and potential outcomes associated with our pending or threatened litigation proceedings, we believe, based on current known facts, that additional losses, if any, are not expected to materially affect our consolidated financial position, results of operations or cash flows. However, based upon current known facts, as of March 31, 2020, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of the accruals noted above are estimated to be $11.6, including $10.5 for Brazilian VAT matters disclosed above and $1.1 for other matters. I f our assumptions or analyses regarding these contingencies are incorrect, or if facts change, we could realize losses in excess of the recorded accruals (and in excess of the $11.6 referenced above), which could have a material negative impact on our financial condition, results of operations and cash flows. |
DEBT AMENDMENT
DEBT AMENDMENT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AMENDMENT | DEBT AMENDMENT We reviewed our current forecasts for liquidity and future compliance with existing debt covenants in light of the potential impacts of COVID-19 on our business and the uncertainties associated with the duration of the pandemic as discussed in Note 17 Risks and Uncertainties. As such, effective May 6, 2020, we amended our credit facility to, among other things, change the restrictive borrowing covenants. The prior leverage ratio covenant required us to maintain, as of the last day of each quarter, a leverage ratio of consolidated funded indebtedness to trailing 12-month consolidated EBITDA (each as defined in the credit facility) of not greater than 3.50 to 1.00. The leverage ratio covenant was changed in two ways: (i) the calculation of the ratio now subtracts unrestricted cash (as defined in the credit facility) from consolidated funded indebtedness; and (ii) the ratio levels, calculated as of the last day of the applicable fiscal quarter, were changed to 4.75 to 1.00 for each fiscal quarter end date through March 31, 2021; 4.25 to 1.00 at June 30, 2021; 3.75 to 1.00 at September 30, 2021; and 3.25 to 1.00 at December 31, 2021 and thereafter. In addition, the amount of total secured debt limit was changed from 15% to 5% of our total consolidated assets until December 31, 2021, at which time it will revert back to the 15%. Various interest rate terms were also changed. The credit facility also contains an anti-cash hoarding provision that limits borrowing if the Company has a consolidated cash balance (as defined in the credit facility) in excess of a calculated dollar amount. The maturity date of January 2024 remains unchanged. At this time, the Company expects to be able to maintain compliance with the amended debt covenant requirements. Due to the speed with which the COVID-19 pandemic is developing and the uncertainties created, including the depth and duration of any disruptions to customers and suppliers, its future effect on our business, results of operations and financial condition cannot be predicted. While we are unable to accurately foresee these future impacts, we believe that our financial resources and liquidity levels, along with various contingency plans to reduce costs are sufficient to manage the impact currently anticipated from the COVID-19 pandemic, which will likely include reduced revenues and operating profits in all segments and lower operating cash flows. Because the COVID-19 pandemic is a rapidly evolving situation, we will continue to monitor the business impact and may take further actions that we deem appropriate in light of the circumstances. |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2020 | |
Risks And Uncertainties, Unusual Items [Abstract] | |
RISKS AND UNCERTAINTIES | RISKS AND UNCERTAINTIES In March 2020, the World Health Organization declared the novel coronavirus (COVID-19) outbreak a global pandemic. Various governments worldwide have instituted quarantines, shelter-in-place or stay-at-home orders, and other material limitations on the conduct of business. These restrictions and limitations have had an adverse effect on the economies and financial markets of the countries where our products, or our customers' products, are sold resulting in an economic downturn that has had an effect on our customers' demand for our products. This decrease in demand has caused us to operate three quarters of our manufacturing facilities at a significantly reduced rate and close others. As a result of the decreased demand, our sales, earnings, liquidity, cash flow and financial condition have been materially negatively affected. The extent to which COVID-19 impacts our operations will depend on future developments, which are highly uncertain and unpredictable. If new government restrictions are announced, current restrictions extended, or demand declines further, we could be required to make additional adjustments to our operations, including operating reductions or facility closures. We cannot predict the time it will take for an overall economic recovery, but we do not believe that a triggering event related to the impairment of goodwill or other long-lived assets occurred in the first quarter of 2020. |
INTERIM PRESENTATION (Policies)
INTERIM PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Presentation | The interim financial statements of Leggett & Platt, Incorporated (we, us or our) included herein have not been audited by an independent registered public accounting firm. The statements include all adjustments, including normal recurring accruals, which management considers necessary for a fair statement of our financial position and operating results for the periods presented. We have prepared the statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of results to be expected for an entire year. The December 31, 2019 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period's information in the Notes to the Consolidated Condensed Financial Statements to conform to the first quarter 2020 for segment reporting changes in our management structure and all related internal reporting (See Note 4 - Segment Information). These reclassifications did not impact our consolidated earnings or assets of the company, and all prior periods presented have been restated to conform with these changes. |
New Accounting Guidance | The Financial Accounting Standards Board (FASB) regularly issues updates to the FASB Accounting Standards Codification that are communicated through issuance of an Accounting Standards Update (ASU). Below is a summary of the ASUs, effective for current or future periods, most relevant to our financial statements. Adopted in 2020: • On January 1, 2020, we adopted ASU 2016-13 “Financial Instruments—Credit Losses” (Topic 326) as discussed in Note 7. • ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. We adopted this ASU on January 1, 2020. This ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value up to the total amount of goodwill for the reporting unit. We will apply this guidance to our annual goodwill impairment testing which will be completed in the second quarter of 2020. • ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)”. We adopted this ASU on January 1, 2020. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this ASU did not materially impact our financial statements. To be adopted in future years: • ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”: This ASU will be effective January 1, 2021 and is a part of the FASB overall simplification initiative. We are currently evaluating this guidance. The FASB has issued accounting guidance, in addition to the issuance discussed above, effective for current and future periods. This guidance did not have a material impact on our current financial statements, and we do not believe it will have a material impact on our future financial statements. |
Revenue Recognition | We recognize revenue when performance obligations under the terms of a contract with our customers are satisfied. Substantially all of our revenue is recognized upon transfer of control of our products to our customers, which is generally upon shipment from our facilities or upon delivery to our customers' facilities and is dependent on the terms of the specific contract. This conclusion considers the point at which our customers have the ability to direct the use of and obtain substantially all of the remaining benefits of the products that are transferred. Substantially all unsatisfied performance obligations as of March 31, 2020, will be satisfied within one year or less. Shipping and handling costs are included as a component of "Cost of goods sold". Sales, value added, and other taxes collected in connection with revenue-producing activities are excluded from revenue. Sales Allowances and Returns The amount of consideration we receive and revenue we recognize varies with changes in various sales allowances, discounts and rebates (variable consideration) that we offer to our customers. We reduce revenue by our estimates of variable consideration based on contract terms and historical experience. Changes in estimates of variable consideration for the periods presented were not material. Some of our products transferred to customers can be returned, and we recognize the following for this right: • An estimated refund liability and a corresponding reduction to revenue based on historical returns experience. • An asset and a corresponding reduction to cost of sales for our right to recover products from customers upon settling the refund liability. We reduce the carrying amount of these assets by estimates of costs associated with the recovery and any additional expected reduction in value. Our refund liability and the corresponding asset associated with our right to recover products from our customers were immaterial at March 31, 2020. Other We expect that at contract inception, the time period between when we transfer a promised good to our customer and our receipt of payment from that customer for that good will be one year or less (our typical trade terms are 30 to 60 days for U.S. customers and up to 90 days for our international customers). We generally expense costs of obtaining a contract because the amortization period would be one year or less. Revenue by Product Line We disaggregate revenue by customer group, which is the same as our product lines for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. For information on our new segment structure, see Note 4. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | We disaggregate revenue by customer group, which is the same as our product lines for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. For information on our new segment structure, see Note 4. Three Months Ended March 31, 2020 2019 Bedding Products Bedding group $ 490.6 $ 554.3 490.6 554.3 Specialized Products Automotive group 173.7 196.1 Aerospace Products group 38.4 39.4 Hydraulic Cylinders group 22.4 27.4 234.5 262.9 Furniture, Flooring & Textile Products Home Furniture group 81.2 90.9 Work Furniture group 63.6 73.2 Flooring & Textile Products group 175.6 173.8 320.4 337.9 $ 1,045.5 $ 1,155.1 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Results from Continuing Operations | A summary of segment results from continuing operations is shown in the following tables. Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Three Months Ended March 31, 2020 Bedding Products $ 490.6 $ 9.6 $ 500.2 $ 30.0 $ 26.8 Specialized Products 234.5 .8 235.3 27.7 11.2 Furniture, Flooring & Textile Products 320.4 5.2 325.6 26.5 6.5 Intersegment eliminations and other 2, 3 (3.5) 3.0 $ 1,045.5 $ 15.6 $ 1,061.1 $ 80.7 $ 47.5 Three Months Ended March 31, 2019 Bedding Products $ 554.3 $ 10.2 $ 564.5 $ 44.1 $ 24.8 Specialized Products 262.9 .9 263.8 35.7 10.2 Furniture, Flooring & Textile Products 337.9 4.3 342.2 18.4 6.6 Intersegment eliminations and other 2 — 4.7 $ 1,155.1 $ 15.4 $ 1,170.5 $ 98.2 $ 46.3 1 See Note 3 for revenue by product line. 2 Depreciation and Amortization: Other relates to non-operating assets (assets not included in segment assets) and is allocated to segment EBIT as discussed above. 3 2020 EBIT: Other includes a charge to write off stock associated with a business divested in 2008. |
Average Assets for Segments | Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include working capital (all current assets and current liabilities) plus net property, plant and equipment. Segment assets for all years are reflected at their estimated average for the periods presented. March 31, December 31, Bedding Products $ 788.7 $ 816.9 Specialized Products 309.7 346.4 Furniture, Flooring & Textile Products 353.9 383.2 Average current liabilities included in segment numbers above 666.4 735.3 Unallocated assets 1 2,912.8 2,662.7 Difference between average assets and period-end balance sheet (49.5) (128.1) Total assets $ 4,982.0 $ 4,816.4 |
RESTRUCTURING AND IMPAIRMENT _2
RESTRUCTURING AND IMPAIRMENT CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary Of Restructuring-Related Costs | The following table presents information associated with this Plan: Total Amount Incurred to Date Three Months Ended Total Incurred Full Year 2019 and 2018 2018 Restructuring Plan Restructuring and restructuring-related $ 19.4 $ .7 $ 18.7 Impairment costs associated with this plan 12.7 — 12.7 $ 32.1 $ .7 $ 31.4 Amount of total that represents cash charges $ 15.5 $ .6 $ 14.9 The table below presents all restructuring and restructuring-related activity for the periods presented; the majority of the 2020 costs are related to the Plan: Three Months Ended March 31, 2020 2019 Charged to other (income) expense, net: Severance and other restructuring costs $ .6 $ 1.2 Charged to cost of goods sold: Inventory obsolescence and other .1 2.4 Total restructuring and restructuring-related costs $ .7 $ 3.6 Amount of total that represents cash charges $ .6 $ 1.2 Restructuring and restructuring-related charges by segment were as follows: Three Months Ended March 31, 2020 2019 Bedding Products $ .6 $ 2.9 Furniture, Flooring & Textile Products .1 .7 Total $ .7 $ 3.6 The accrued liability associated with our total restructuring initiatives consisted of the following: Balance at December 31, 2019 Add: 2020 Charges Less: 2020 Payments Balance at March 31, 2020 Termination benefits $ 3.5 $ .2 $ 1.2 $ 2.5 Other restructuring costs .7 .4 .5 .6 $ 4.2 $ .6 $ 1.7 $ 3.1 |
Summary Of Impairment Charges | Impairment charges (pretax) are reported in “Impairments” in the Consolidated Condensed Statements of Operations and are summarized in the following table: Three Months Ended March 31, 2020 2019 Other Long-Lived Assets Impairments Other Long-Lived Assets Impairments Bedding Products $ — $ 2.9 Unallocated 1 3.5 — Total impairment charges $ 3.5 $ 2.9 1 This is a charge to write off stock associated with a business divested in 2008. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended 2020 2019 Net earnings: Net earnings $ 45.7 $ 61.1 Earnings attributable to noncontrolling interest, net of tax $ — $ .1 Net earnings attributable to Leggett & Platt common shareholders $ 45.7 $ 61.2 Weighted average number of shares (in millions): Weighted average number of common shares used in basic EPS 135.4 134.4 Dilutive effect of stock-based compensation .2 .6 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 135.6 135.0 Basic and Diluted EPS: Basic EPS attributable to Leggett & Platt common shareholders $ .34 $ .46 Diluted EPS attributable to Leggett & Platt common shareholders $ .34 $ .45 Other information: Anti-dilutive shares excluded from diluted EPS computation .2 .1 Cash dividends declared per share $ .40 $ .38 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
New Accounting Pronouncements | The cumulative effect of applying Topic 326 to our Consolidated Condensed Balance Sheet was as follows: Balance at December 31, 2019 as Previously Reported Topic 326 Adjustments Balance at January 1, 2020 Trade receivables, net 1 $ 564.4 $ (3.3) $ 561.1 Other current assets 973.7 — 973.7 Property, plant and equipment 830.8 — 830.8 Other assets 2,447.5 — 2,447.5 Total assets $ 4,816.4 $ (3.3) $ 4,813.1 Current liabilities $ 928.1 $ — $ 928.1 Long-term liabilities 2 2,575.8 (.8) 2,575.0 Retained earnings 2,734.5 (2.5) 2,732.0 Other equity (1,422.0) — (1,422.0) Total assets $ 4,816.4 $ (3.3) $ 4,813.1 1 This adjustment is to increase our allowance for doubtful accounts for estimated expected credit losses on trade receivables over their contractual life. 2 This adjustment is to reflect a decrease in deferred income tax liability as a result of the change in the allowance for doubtful accounts. |
Components of Accounts and Other Receivables | Accounts and other receivables consisted of the following: March 31, 2020 December 31, 2019 Current Long-term Current Long-term Trade accounts receivable 1 $ 567.3 $ — $ 571.8 $ — Trade notes receivable 1.2 .8 1.1 .6 Total trade receivables 568.5 .8 572.9 .6 Other notes receivable 1 — 23.4 — 23.4 Taxes receivable, including income taxes 14.0 — 15.8 — Other receivables 8.2 — 11.7 — Subtotal other receivables 22.2 23.4 27.5 23.4 Total trade and other receivables 590.7 24.2 600.4 24.0 Allowance for doubtful accounts: Trade accounts receivable 1,2 (22.4) — (8.4) — Trade notes receivable (.1) — (.1) — Total trade receivables (22.5) — (8.5) — Other notes receivable 1 — (23.4) — (15.0) Total allowance for doubtful accounts (22.5) (23.4) (8.5) (15.0) Total net receivables $ 568.2 $ .8 $ 591.9 $ 9.0 1 The “Trade accounts receivable” and “Other notes receivable” line items above include $25.7 and $26.0 as of March 31, 2020 and December 31, 2019, respectively, from a customer in our Bedding Products segment who is experiencing financial difficulty and liquidity problems. This customer was placed on nonaccrual status in 2018, and became delinquent in quarterly interest payments in the first quarter of 2020. As a result, we have increased our reserve at March 31, 2020 to $25.7 ($23.4 for the note and $2.3 for the trade receivable). The reserve for this customer at December 31, 2019, was $16.0 ($15.0 for the note and $1.0 for the trade receivable). 2 |
Allowance for Doubtful Accounts | Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2019 Topic 326 Adjustment Balance at January 1, 2020 Add: Less: Balance at March 31, 2020 Trade accounts receivable $ 8.4 $ 3.3 $ 11.7 $ 11.4 $ .7 $ 22.4 Trade notes receivable .1 — .1 — — .1 Total trade receivables 8.5 3.3 11.8 11.4 .7 22.5 Other notes receivable 15.0 — 15.0 8.4 — 23.4 Total allowance for doubtful accounts $ 23.5 $ 3.3 $ 26.8 $ 19.8 $ .7 $ 45.9 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Components of Stock-Based and Stock-Related Compensation | The following table recaps the components of stock-based and stock-related compensation for each period presented: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 To be settled with stock To be settled in cash To be settled with stock To be settled in cash Stock-based retirement plans contributions 1 $ (.3) $ .1 $ .6 $ .1 Discounts on various stock awards: Deferred Stock Compensation Program .5 — .6 — Stock-based retirement plans .2 — .2 — Discount Stock Plan .3 — .3 — Performance Stock Unit (PSU) awards: 2 2018 and later PSU - TSR based 2A .9 (2.8) .7 .8 2018 and later PSU - EBIT CAGR based 2B (2.1) (2.8) 1.6 2.0 2017 and prior PSU awards 2C — .1 .5 .4 Restricted Stock Unit (RSU) awards 3 4.7 — .5 — Profitable Growth Incentive (PGI) awards 4 — — — — Other, primarily non-employee directors restricted stock .4 — .2 — Total stock-related compensation expense 4.6 $ (5.4) 5.2 $ 3.3 Employee contributions for above stock plans 2.9 2.6 Total stock-based compensation $ 7.5 $ 7.8 Tax benefits on stock-based compensation expense $ 1.1 $ 1.2 Tax benefits on stock-based compensation payments 2.8 1.9 Total tax benefits associated with stock-based compensation $ 3.9 $ 3.1 Included below is the activity in our most significant stock-based plans: 1 Stock-Based Retirement Plans Participants in the Executive Stock Unit Program may contribute up to 10% (depending on certain qualifications) of their compensation above the threshold. Participant contributions are credited to a diversified investment account established for the participant. Leggett matching contributions to the plan, including dividend equivalents, are used to acquire stock units. Stock units are converted to common stock at a 1-to-1 ratio upon distribution from the program. 2 PSU Awards 2020 Changes to the PSU and RSU awards In November 2019, the Compensation Committee approved changes to our PSU and RSU award programs for 2020. Changes to the plans for executive officers are as follows: • Two-thirds of the target award value will be granted as PSUs based on relative TSR and EBIT CAGR over a three • One-third of the target award value will be granted as RSUs vesting in one-third increments over three years. During 2019 PSU awards were based on two equal measures: (i) Relative Total Shareholder Return (TSR = (Change in Stock Price + Dividends) ÷ Beginning Stock Price) and (ii) EBIT Compound Annual Growth Rate (EBIT CAGR). These components are discussed below. We intend to pay 50% in shares of our common stock and 50% in cash; although, we reserve the right, subject to Compensation Committee approval, to pay up to 100% in cash. 2A 2018 PSU - TSR based Most of the 2018 and later PSU awards are based 50% upon our TSR compared to a peer group. A small number of PSU awards are based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies. Grant date fair values are amortized using the straight-line method over the three The relative TSR vesting condition of the 2018 and later PSU awards contains the following conditions: • A service requirement—Awards generally “cliff” vest three • A market condition—Awards are based on our TSR as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately 300 companies). Participants will earn from 0% to 200% of the base award depending upon how our TSR ranks within the peer group at the end of the three 2B 2018 PSU - EBIT CAGR based Most of the 2018 and later PSU awards are based 50% upon our or the applicable segment's EBIT CAGR. Grant date fair values are calculated using the grant date stock price discounted for dividends over the vesting period. Expense is adjusted every quarter over the three The EBIT CAGR portion of this award contains the following conditions: • A service requirement—Awards generally “cliff” vest three • A performance condition—Awards are based on achieving specified EBIT CAGR performance targets for our or the applicable segment's EBIT during the third year of the performance period compared to the EBIT during the fiscal year immediately preceding the performance period. Participants will earn from 0% to 200% of the base award. In connection with the decision to move a significant portion of the long-term incentive opportunity from a two three two 2C 2017 and prior PSU Awards The 2017 and prior PSU awards were based solely on relative TSR. Vesting conditions were the same as (2A) above other than the maximum payout of 175% of the base award. The 2017 PSU award was paid out Q1 2020. Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented: Three Months Ended March 31, 2020 2019 TSR based Total shares base award .1 .1 Grant date per share fair value $ 38.23 $ 57.86 Risk-free interest rate 1.4 % 2.4 % Expected life in years 3.0 3.0 Expected volatility (over expected life) 24.0 % 21.5 % Expected dividend yield (over expected life) 3.6 % 3.4 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 40.52 $ 39.98 Vesting period in years 3.0 3.0 Three-Year Performance Cycle Award Year Completion Date TSR Performance Payout as a Number of Shares Cash Portion Distribution Date 2016 December 31, 2018 78th percentile —% — $ — First quarter 2019 2017 December 31, 2019 63rd percentile 49.0% .1 million $ 1.6 First quarter 2020 3 RSU Awards The RSU award has been amended so that those who retire (1) after age 65 or (2) after the date where the participant’s age plus years of service are greater than or equal to 70 years, will continue to receive shares that will vest after the retirement date. Expense associated with these retirement-eligible employees will be recognized immediately at the RSU grant date. For those employees who become retirement eligible after the grant date, any remaining expense associated with those RSUs will be recognized at the date the employee meets the retirement-eligible criteria. For more information on the 2020 RSU award changes see the PSU section above. 4 PGI Awards |
Summary of Shares and Related Grant Date Fair Value | Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented: Three Months Ended March 31, 2020 2019 TSR based Total shares base award .1 .1 Grant date per share fair value $ 38.23 $ 57.86 Risk-free interest rate 1.4 % 2.4 % Expected life in years 3.0 3.0 Expected volatility (over expected life) 24.0 % 21.5 % Expected dividend yield (over expected life) 3.6 % 3.4 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 40.52 $ 39.98 Vesting period in years 3.0 3.0 |
Summary of Performance Cycle | Three-Year Performance Cycle Award Year Completion Date TSR Performance Payout as a Number of Shares Cash Portion Distribution Date 2016 December 31, 2018 78th percentile —% — $ — First quarter 2019 2017 December 31, 2019 63rd percentile 49.0% .1 million $ 1.6 First quarter 2020 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table contains the estimated fair values (using inputs as discussed in Note 13 ) of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during 2019. Of the goodwill included in the table below, $126.4 is expected to be deductible for tax purposes. Three Months Ended March 31, 2019 Accounts receivable $ 72.4 Inventory 60.1 Property, plant and equipment 80.2 Goodwill 558.8 Other intangible assets: Customer relationships (15-year life) 372.7 Technology (15-year life) 173.3 Trademarks and trade names (15-year life) 65.8 Non-compete agreements and other (5-year life) 28.1 Other current and long-term assets 27.4 Current liabilities (43.9) Deferred income taxes (129.0) Other long-term liabilities (21.6) Net cash consideration $ 1,244.3 |
Summary of Acquisitions | The following table summarizes acquisitions for the periods presented. Three Months Ended Number of Acquisitions Segment Product/Service March 31, 2020 None March 31, 2019 1 Bedding Products A leader in proprietary specialized foam technology, primarily for the bedding and furniture industries |
Business Acquisition, Pro Forma Information | The following table summarizes, on an unaudited pro forma basis, the combined results of operations of Leggett and ECS as though the acquisition had occurred as of January 1, 2018. We have not provided pro forma results of operations related to other acquisitions, as these results were not material. The unaudited proforma financial information below is not necessarily indicative of the results of operations that would have been realized had the ECS acquisition occurred as of January 1, 2018, nor is it meant to be indicative of any future results of operations. It does not include benefits expected from revenue or product mix enhancements, operating synergies or cost savings that may be realized or any estimated future costs that may be incurred to integrate the ECS business. Three Months Ended March 31, 2019 Net trade sales $ 1,176.7 Net earnings 62.9 EPS basic .47 EPS diluted .47 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
LIFO Expense | The following table recaps the components of inventory for each period presented: March 31, December 31, Finished goods $ 316.6 $ 308.7 Work in process 52.0 54.4 Raw materials and supplies 334.8 323.5 LIFO reserve (47.9) (49.9) Total inventories, net $ 655.5 $ 636.7 The following table contains the LIFO benefit for each of the periods presented. Three Months Ended March 31, 2020 2019 LIFO benefit $ 2.0 $ — |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Pension Expense | The following table provides interim information as to our domestic and foreign defined benefit pension plans: Three Months Ended 2020 2019 Components of net pension expense Service cost $ 1.1 $ 1.0 Interest cost 1.9 2.2 Expected return on plan assets (3.0) (2.9) Recognized net actuarial loss 1.0 .8 Net pension expense $ 1.0 $ 1.1 |
STATEMENT OF CHANGES IN EQUIT_2
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Statement of Changes in Equity and Accumulated Other Comprehensive Income | Three Months Ended March 31, 2020 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2020 $ 1,312.5 $ 2,734.5 $ 538.1 $ (1,883.8) $ .5 $ (76.8) Effect of accounting change on prior years, net of tax (Topic 326-See Note 7 ) (2.5) (2.5) — — — — Adjusted beginning balance, January 1, 2020 1,310.0 2,732.0 538.1 (1,883.8) .5 (76.8) Net earnings attributable to Leggett & Platt, Inc. common shareholders 45.7 45.7 — — — — Dividends declared (See Note 6 ) (52.8) (54.2) 1.4 — — — Treasury stock purchased (8.4) — — (8.4) — — Treasury stock issued 2.5 — (16.2) 18.7 — — Foreign currency translation adjustments (65.5) — — — (.1) (65.4) Cash flow hedges, net of tax (6.3) — — — — (6.3) Defined benefit pension plans, net of tax 1.2 — — — — 1.2 Stock-based compensation transactions, net of tax 12.2 — 12.2 — — — Ending balance, March 31, 2020 $ 1,238.6 $ 2,723.5 $ 535.5 $ (1,873.5) $ .4 $ (147.3) Three Months Ended March 31, 2019 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2019 $ 1,157.6 $ 2,613.8 $ 529.1 $ (1,908.3) $ .6 $ (77.6) Effect of accounting change on prior years, net of tax (Topic 842) .1 .1 — — — — Adjusted beginning balance, January 1, 2019 1,157.7 2,613.9 529.1 (1,908.3) .6 (77.6) Net earnings attributable to Leggett & Platt, Inc. common shareholders 61.1 61.2 — — (.1) — Dividends declared (See Note 6 ) (49.9) (51.2) 1.3 — — — Treasury stock purchased (11.7) — — (11.7) — — Treasury stock issued 13.8 — (14.6) 28.4 — — Foreign currency translation adjustments 8.8 — — — — 8.8 Cash flow hedges, net of tax 3.9 — — — — 3.9 Defined benefit pension plans, net of tax .5 — — — — .5 Stock-based compensation transactions, net of tax 11.0 — 11.0 — — — Ending balance, March 31, 2019 $ 1,195.2 $ 2,623.9 $ 526.8 $ (1,891.6) $ .5 $ (64.4) |
Changes in Each Component of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the components of and changes in each component of accumulated other comprehensive income (loss) for each of the periods presented: Three Months Ended March 31, Foreign Cash Defined Accumulated Balance, January 1, 2020 $ (21.5) $ (4.1) $ (51.2) $ (76.8) Other comprehensive income (loss) (65.5) (7.6) .6 (72.5) Reclassifications, pretax 1 — .3 1.0 1.3 Income tax effect — 1.0 (.4) .6 Attributable to noncontrolling interest .1 — — .1 Balance, March 31, 2020 $ (86.9) $ (10.4) $ (50.0) $ (147.3) Balance, January 1, 2019 $ (26.5) $ (11.8) $ (39.3) $ (77.6) Other comprehensive income (loss) 8.8 3.1 (.2) 11.7 Reclassifications, pretax 2 — 1.9 .8 2.7 Income tax effect — (1.1) (.1) (1.2) Balance, March 31, 2019 $ (17.7) $ (7.9) $ (38.8) $ (64.4) 1 2020 pretax reclassifications are comprised of: Net trade sales $ — $ (.5) $ — $ (.5) Cost of goods sold; selling and administrative expenses — (.3) — (.3) Interest expense — 1.1 — 1.1 Other income (expense), net — — 1.0 1.0 Total reclassifications, pretax $ — $ .3 $ 1.0 $ 1.3 2 2019 pretax reclassifications are comprised of: Net trade sales $ — $ 1.0 $ — $ 1.0 Cost of goods sold; selling and administrative expenses — (.2) — (.2) Interest expense — 1.1 — 1.1 Other income (expense), net — — .8 .8 Total reclassifications, pretax $ — $ 1.9 $ .8 $ 2.7 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Components of Fair Value Measurements of Financial Assets and Liabilities | The areas in which we utilize fair value measures of financial assets and liabilities are presented in the table below. As of March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 152.6 $ — $ 152.6 Derivative assets 1 ( Note 14 ) — 1.3 — 1.3 Diversified investments associated with the Executive Stock Unit Program (ESUP) 1 34.8 — — 34.8 Total assets $ 34.8 $ 153.9 $ — $ 188.7 Liabilities: Derivative liabilities 1 ( Note 14 ) $ — $ 11.4 $ — $ 11.4 Liabilities associated with the ESUP 1 34.3 — — 34.3 Total liabilities $ 34.3 $ 11.4 $ — $ 45.7 As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 153.7 $ — $ 153.7 Derivative assets 1 ( Note 14 ) — 4.0 — 4.0 Diversified investments associated with the ESUP 1 41.0 — — 41.0 Total assets $ 41.0 $ 157.7 $ — $ 198.7 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ .9 $ — $ .9 Liabilities associated with the ESUP 1 40.6 — — 40.6 Total liabilities $ 40.6 $ .9 $ — $ 41.5 1 Includes both current and long-term amounts. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments at Fair Value | The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item. Expiring at various dates through: Total USD As of March 31, 2020 Assets Liabilities Other Current Other Current Other Long-Term Liabilities Derivatives designated as hedging instruments Cash flow hedges: Currency hedges: Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries Dec 2021 $ 174.7 $ .6 $ 4.0 $ .4 Future DKK sales of Polish subsidiary Dec 2021 24.4 — .9 .2 Future EUR sales of Chinese and UK subsidiaries Dec 2021 35.5 .2 .2 .1 Future MXN purchases of a USD subsidiary Dec 2021 11.9 — 1.3 .3 Total cash flow hedges .8 6.4 1.0 Fair value hedges: Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) Jun 2020 112.3 .3 4.0 — Derivatives not designated as hedging instruments Non-deliverable hedges (EUR and USD) exposed to the CNY Mar 2021 10.1 .1 — — USD receivable on a CAD subsidiary Apr 2020 23.0 .1 — — Total derivatives not designated as hedging instruments .2 — — $ 1.3 $ 10.4 $ 1.0 Expiring at various dates through: Total USD As of December 31, 2019 Assets Liabilities Other Current Sundry Other Current Derivatives designated as hedging instruments Cash flow hedges: Currency hedges: Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries Sep 2021 $ 138.5 $ 1.3 $ .2 $ .7 Future MXN purchases of a USD subsidiary Jun 2021 9.8 .5 .1 — Future DKK sales of a Polish subsidiary Jun 2021 21.1 .3 — — Future EUR sales of Chinese and UK subsidiaries Jun 2021 29.9 .7 — — Total cash flow hedges 2.8 .3 .7 Fair value hedges: Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, MXN, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) May 2020 112.0 .8 — .1 Derivatives not designated as hedging instruments Non-deliverable hedges (EUR and USD) exposed to the CNY Dec 2020 10.1 .1 — — Hedge of USD receivable on a CAD subsidiary Jan 2020 5.0 — — .1 Total derivatives not designated as hedging instruments .1 — .1 $ 3.7 $ .3 $ .9 |
Pre-Tax (Gains) Losses of Hedging Activities | The following table sets forth the pretax (gains) losses for our hedging activities for the years presented. This schedule includes reclassifications (including impact of underlying transactions probable of not occurring) from accumulated other comprehensive income (see Note 12 ) as well as derivative settlements recorded directly to income or expense. Caption in Consolidated Condensed Statements of Operations Amount of (Gain) Loss Recorded in Income Three Months Ended 2020 2019 Derivatives designated as hedging instruments Interest rate cash flow hedges Interest expense $ 1.1 $ 1.1 Currency cash flow hedges Net trade sales .6 .4 Currency cash flow hedges Cost of goods sold (.3) (.3) Total cash flow hedges 1.4 1.2 Fair value hedges Other (income) expense, net 5.0 .4 Derivatives not designated as hedging instruments Other (income) expense, net (1.3) (.2) Total derivative instruments $ 5.1 $ 1.4 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Litigation Contingency Accruals | Although we deny liability in all currently threatened or pending litigation proceedings in which we are or may be a party and believe that we have valid bases to contest all claims threatened or made against us, we have recorded a litigation contingency accrual for our reasonable estimate of probable loss for pending and threatened litigation proceedings, in aggregate, in millions, as follows: Three Months Ended March 31, 2020 2019 Litigation contingency accrual - Beginning of period $ .7 $ 1.9 Adjustment to accruals - expense (income) .1 — Currency (.1) — Cash payments (.1) — Litigation contingency accrual - End of period $ .6 $ 1.9 |
REVENUE - By Major Source (Deta
REVENUE - By Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net trade sales | $ 1,045.5 | $ 1,155.1 |
Bedding Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 490.6 | 554.3 |
Bedding Products | Bedding Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 490.6 | 554.3 |
Specialized Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 234.5 | 262.9 |
Specialized Products | Automotive group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 173.7 | 196.1 |
Specialized Products | Aerospace Products group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 38.4 | 39.4 |
Specialized Products | Hydraulic Cylinders group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 22.4 | 27.4 |
Furniture, Flooring & Textile Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 320.4 | 337.9 |
Furniture, Flooring & Textile Products | Home Furniture group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 81.2 | 90.9 |
Furniture, Flooring & Textile Products | Work Furniture group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 63.6 | 73.2 |
Furniture, Flooring & Textile Products | Flooring & Textile Products group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | $ 175.6 | $ 173.8 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Segment Results from Continuing Operations (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Number of reportable segments | segment | 3 | |
Net trade sales | $ 1,045.5 | $ 1,155.1 |
Total Sales | 1,061.1 | 1,170.5 |
EBIT | 80.7 | 98.2 |
Depreciation and Amortization | 47.5 | 46.3 |
Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 490.6 | 554.3 |
Total Sales | 500.2 | 564.5 |
EBIT | 30 | 44.1 |
Depreciation and Amortization | 26.8 | 24.8 |
Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 234.5 | 262.9 |
Total Sales | 235.3 | 263.8 |
EBIT | 27.7 | 35.7 |
Depreciation and Amortization | 11.2 | 10.2 |
Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 320.4 | 337.9 |
Total Sales | 325.6 | 342.2 |
EBIT | 26.5 | 18.4 |
Depreciation and Amortization | 6.5 | 6.6 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 1,045.5 | 1,155.1 |
Operating segments | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 490.6 | 554.3 |
Operating segments | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 234.5 | 262.9 |
Operating segments | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 320.4 | 337.9 |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 15.6 | 15.4 |
Depreciation and Amortization | 3 | 4.7 |
Intersegment eliminations, unallocated assets and other | (3.5) | 0 |
Intersegment eliminations | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 9.6 | 10.2 |
Intersegment eliminations | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 0.8 | 0.9 |
Intersegment eliminations | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | $ 5.2 | $ 4.3 |
SEGMENT INFORMATION - Average A
SEGMENT INFORMATION - Average Assets for Segments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,982 | $ 4,816.4 |
Operating segments | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 788.7 | 816.9 |
Operating segments | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 309.7 | 346.4 |
Operating segments | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 353.9 | 383.2 |
Operating segments | Average current liabilities included in segment numbers above | ||
Segment Reporting Information [Line Items] | ||
Total assets | 666.4 | 735.3 |
Unallocated assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,912.8 | 2,662.7 |
Difference between average assets and period-end balance sheet | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (49.5) | $ (128.1) |
RESTRUCTURING AND IMPAIRMENT _3
RESTRUCTURING AND IMPAIRMENT CHARGES (Incurred Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 13 Months Ended | 16 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.6 | $ 1.2 | ||
Impairment costs associated with this plan | 3.5 | $ 2.9 | ||
Amount of total that represents cash charges | 1.7 | |||
2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0.7 | $ 18.7 | $ 19.4 | |
Impairment costs associated with this plan | 0 | 12.7 | 12.7 | |
Total Amount Incurred | 0.7 | 31.4 | 32.1 | |
Amount of total that represents cash charges | $ 0.6 | $ 14.9 | $ 15.5 |
RESTRUCTURING AND IMPAIRMENT _4
RESTRUCTURING AND IMPAIRMENT CHARGES (Summary Of Restructuring-Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Severance and other restructuring costs | $ 0.6 | $ 1.2 |
Inventory obsolescence and other | 0.1 | 2.4 |
Total restructuring and restructuring-related costs | 0.7 | 3.6 |
Amount of total that represents cash charges | $ 0.6 | $ 1.2 |
RESTRUCTURING AND IMPAIRMENT _5
RESTRUCTURING AND IMPAIRMENT CHARGES (Restructuring-Related Costs by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0.7 | $ 3.6 |
Bedding Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 0.6 | 2.9 |
Furniture, Flooring & Textile Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0.1 | $ 0.7 |
RESTRUCTURING AND IMPAIRMENT _6
RESTRUCTURING AND IMPAIRMENT CHARGES (Accrued Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 4.2 | |
Charges | 0.6 | $ 1.2 |
Payments | 1.7 | |
Balance at end of period | 3.1 | |
Termination benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 3.5 | |
Charges | 0.2 | |
Payments | 1.2 | |
Balance at end of period | 2.5 | |
Other restructuring costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0.7 | |
Charges | 0.4 | |
Payments | 0.5 | |
Balance at end of period | $ 0.6 |
RESTRUCTURING AND IMPAIRMENT _7
RESTRUCTURING AND IMPAIRMENT CHARGES (Impairment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charges | $ 3.5 | $ 2.9 |
Bedding Products | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charges | 0 | 2.9 |
Unallocated | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charges | $ 3.5 | $ 0 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net earnings: | ||
Net earnings | $ 45.7 | $ 61.1 |
Loss attributable to noncontrolling interest, net of tax | 0 | 0.1 |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 45.7 | $ 61.2 |
Weighted average number of shares: | ||
Weighted average number of common shares used in basic EPS (in shares) | 135,400 | 134,400 |
Dilutive effect of stock-based compensation (in shares) | 200 | 600 |
Weighted average number of common shares and dilutive potential common shares used in diluted EPS (in shares) | 135,600 | 135,000 |
Basic and Diluted EPS: | ||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders (in dollars per share) | $ 0.34 | $ 0.46 |
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders (in dollars per share) | $ 0.34 | $ 0.45 |
Other information: | ||
Anti-dilutive shares excluded from diluted EPS computation (in shares) | 200 | 100 |
Cash dividends declared per share (in dollars per share) | $ 0.40 | $ 0.38 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES - New ASU (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net | $ 546 | $ 564.4 | |
Other current assets | 973.7 | ||
Property, plant and equipment | 809.5 | 830.8 | |
Other assets | 2,447.5 | ||
Total assets | 4,982 | 4,816.4 | |
Current liabilities | 854.7 | 928.1 | |
Long-term liabilities | 2,888.7 | 2,575.8 | |
Retained earnings | 2,723.5 | 2,734.5 | |
Other equity | (1,422) | ||
Liabilities and Equity | $ 4,982 | $ 4,816.4 | |
Topic 326 Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net | $ (3.3) | ||
Other current assets | 0 | ||
Property, plant and equipment | 0 | ||
Other assets | 0 | ||
Total assets | (3.3) | ||
Current liabilities | 0 | ||
Long-term liabilities | (0.8) | ||
Retained earnings | (2.5) | ||
Other equity | 0 | ||
Liabilities and Equity | (3.3) | ||
Adjusted balance | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net | 561.1 | ||
Other current assets | 973.7 | ||
Property, plant and equipment | 830.8 | ||
Other assets | 2,447.5 | ||
Total assets | 4,813.1 | ||
Current liabilities | 928.1 | ||
Long-term liabilities | 2,575 | ||
Retained earnings | 2,732 | ||
Other equity | (1,422) | ||
Liabilities and Equity | $ 4,813.1 |
ACCOUNTS AND OTHER RECEIVABLE_3
ACCOUNTS AND OTHER RECEIVABLES - Components of Accounts and Other Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current | ||
Trade accounts receivable | $ 567.3 | $ 571.8 |
Trade notes receivable | 1.2 | 1.1 |
Total trade receivables | 568.5 | 572.9 |
Other notes receivable | 0 | 0 |
Taxes receivable, including income taxes | 14 | 15.8 |
Other receivables | 8.2 | 11.7 |
Subtotal other receivables | 22.2 | 27.5 |
Total trade and other receivables | 590.7 | 600.4 |
Allowance for doubtful accounts, Current | ||
Trade accounts receivable | (22.4) | (8.4) |
Trade notes receivable | (0.1) | (0.1) |
Total trade receivables | (22.5) | (8.5) |
Other notes receivable | 0 | 0 |
Total allowance for doubtful accounts | (22.5) | (8.5) |
Total receivables, net | 568.2 | 591.9 |
Long-term | ||
Trade accounts receivable | 0 | 0 |
Trade notes receivable | 0.8 | 0.6 |
Total trade receivables | 0.8 | 0.6 |
Other notes receivable | 23.4 | 23.4 |
Taxes receivable, including income taxes | 0 | 0 |
Other receivables | 0 | 0 |
Subtotal other receivables | 23.4 | 23.4 |
Total trade and other receivables | 24.2 | 24 |
Allowance for doubtful accounts, Long-term | ||
Trade accounts receivable | 0 | 0 |
Trade notes receivable | 0 | 0 |
Total trade receivables | 0 | 0 |
Other notes receivable | (23.4) | (15) |
Total allowance for doubtful accounts | (23.4) | (15) |
Total net receivables | 0.8 | 9 |
Bedding Products | ||
Current | ||
Trade accounts receivable | 25.7 | 26 |
Allowance for doubtful accounts, Long-term | ||
Allowance for credit losses | 25.7 | 16 |
Notes Receivable | Bedding Products | ||
Allowance for doubtful accounts, Long-term | ||
Allowance for credit losses | 23.4 | 15 |
Trade Accounts Receivable | Bedding Products | ||
Allowance for doubtful accounts, Long-term | ||
Allowance for credit losses | $ 2.3 | $ 1 |
ACCOUNTS AND OTHER RECEIVABLE_4
ACCOUNTS AND OTHER RECEIVABLES - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 23.5 | |
Add: Charges | 19.8 | $ 0.9 |
Less: Net Charge-offs/ (Recoveries) and Other | 0.7 | |
Balance at End of Period | 45.9 | |
Trade accounts receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 8.4 | |
Add: Charges | 11.4 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0.7 | |
Balance at End of Period | 22.4 | |
Trade notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0.1 | |
Add: Charges | 0 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0 | |
Balance at End of Period | 0.1 | |
Total trade receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 8.5 | |
Add: Charges | 11.4 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0.7 | |
Balance at End of Period | 22.5 | |
Other notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 15 | |
Add: Charges | 8.4 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0 | |
Balance at End of Period | 23.4 | |
Topic 326 Adjustment | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 3.3 | |
Topic 326 Adjustment | Trade accounts receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 3.3 | |
Topic 326 Adjustment | Trade notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0 | |
Topic 326 Adjustment | Total trade receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 3.3 | |
Topic 326 Adjustment | Other notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0 | |
Adjusted balance | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 26.8 | |
Adjusted balance | Trade accounts receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 11.7 | |
Adjusted balance | Trade notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0.1 | |
Adjusted balance | Total trade receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 11.8 | |
Adjusted balance | Other notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 15 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Components of Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 7.5 | $ 7.8 |
Tax benefits on stock-based compensation expense | 3.9 | 3.1 |
To be settled with stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 4.6 | 5.2 |
Employee contributions for above stock plans | 2.9 | 2.6 |
Total stock-based compensation | 7.5 | 7.8 |
Tax benefits on stock-based compensation expense | 1.1 | 1.2 |
To be settled with stock | Tax benefits on stock-based compensation payments | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefits on stock-based compensation expense | 2.8 | 1.9 |
To be settled with stock | Stock-based retirement plans contributions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (0.3) | 0.6 |
To be settled with stock | Deferred Stock Compensation Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.5 | 0.6 |
To be settled with stock | Stock-based retirement plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.2 | 0.2 |
To be settled with stock | Discount Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.3 | 0.3 |
To be settled with stock | 2018 PSU - TSR based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.9 | 0.7 |
To be settled with stock | 2018 PSU - EBIT CAGR based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (2.1) | 1.6 |
To be settled with stock | 2017 and prior PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0.5 |
To be settled with stock | Restricted Stock Unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 4.7 | 0.5 |
To be settled with stock | Profitable Growth Incentive awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled with stock | Other, primarily non-employee directors restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.4 | 0.2 |
To be settled in cash | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (5.4) | 3.3 |
To be settled in cash | Stock-based retirement plans contributions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.1 | 0.1 |
To be settled in cash | Deferred Stock Compensation Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled in cash | Stock-based retirement plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled in cash | Discount Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled in cash | 2018 PSU - TSR based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (2.8) | 0.8 |
To be settled in cash | 2018 PSU - EBIT CAGR based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (2.8) | 2 |
To be settled in cash | 2017 and prior PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.1 | 0.4 |
To be settled in cash | Restricted Stock Unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled in cash | Profitable Growth Incentive awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 0 |
To be settled in cash | Other, primarily non-employee directors restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Mar. 31, 2020USD ($)companyshares | Dec. 31, 2018 | |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2017 and prior PSU awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
2017 and prior PSU awards | Relative TSR and EBIT CAGR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of award intended to pay out in stock | 50.00% | ||
Percentage recorded as a liability | 50.00% | ||
Reserved percentage of award intended to pay out in cash | 100.00% | ||
2017 and prior PSU awards | TSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of award vesting | 50.00% | ||
Vesting period | 3 years | ||
Number of companies forming peer group | company | 300 | ||
Base award percentage of Total Shareholder Return | 175.00% | ||
2017 and prior PSU awards | TSR | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base award percentage of Total Shareholder Return | 0.00% | ||
2017 and prior PSU awards | TSR | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base award percentage of Total Shareholder Return | 200.00% | ||
2017 and prior PSU awards | EBIT CAGR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of award vesting | 50.00% | ||
Vesting period | 3 years | 2 years | |
Average payout percentage of base award | 114.00% | ||
Period in which expense is recognized | 3 years | ||
Total shares base award (in shares) | shares | 100 | ||
Cash Portion | $ | $ 4.1 | ||
2017 and prior PSU awards | EBIT CAGR | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base award percentage of Total Shareholder Return | 0.00% | ||
2017 and prior PSU awards | EBIT CAGR | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base award percentage of Total Shareholder Return | 200.00% | ||
2017 and prior PSU awards | EBIT CAGR, one-time vesting period transition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Growth Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reserved right to pay percentage in cash (up to) | 100.00% |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Performance Stock Units (Details) - Performance Stock Unit - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
TSR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in shares) | 0.1 | 0.1 |
Grant date per share fair value (in dollars per share) | $ 38.23 | $ 57.86 |
Risk-free interest rate | 1.40% | 2.40% |
Expected life in years | 3 years | 3 years |
Expected volatility (over expected life) | 24.00% | 21.50% |
Expected dividend yield (over expected life) | 3.60% | 3.40% |
EBIT CAGR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in shares) | 0.1 | 0.1 |
Grant date per share fair value (in dollars per share) | $ 40.52 | $ 39.98 |
Vesting period | 3 years | 3 years |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Performance Cycles (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
3 year performance cycle, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
TSR Performance Relative to the Peer Group (1% Best) | 78.00% | ||
Payout as a Percent of the Base Award | 0.00% | ||
Number of Shares Distributed (less than) (in shares) | 0.1 | 0 | |
Cash Portion | $ 2.2 | $ 0 | |
3 year performance cycle, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
TSR Performance Relative to the Peer Group (1% Best) | 63.00% | ||
Payout as a Percent of the Base Award | 49.00% | ||
Number of Shares Distributed (less than) (in shares) | 0.1 | ||
Cash Portion | $ 1.6 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | Jan. 16, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill, expected to provide a tax benefit | $ 126.4 | |||
Contingent consideration, liability | $ 7.9 | $ 9.2 | ||
ECS | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,244.3 | $ 1,244.3 | ||
Goodwill acquired | 559.3 | |||
ECS | Customer relationships (15-year life) | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | 372.3 | 372.7 | ||
ECS | Technology (15-year life) | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | $ 173.3 | $ 173.3 |
ACQUISITIONS - Estimated Fair V
ACQUISITIONS - Estimated Fair Values Of The Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Millions | Jan. 16, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,391.4 | $ 1,406.3 | ||
ECS | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 72.4 | |||
Inventory | 60.1 | |||
Property, plant and equipment | 80.2 | |||
Goodwill | 558.8 | |||
Other current and long-term assets | 27.4 | |||
Current liabilities | (43.9) | |||
Deferred income taxes | (129) | |||
Other long-term liabilities | (21.6) | |||
Net cash consideration | $ 1,244.3 | 1,244.3 | ||
Customer relationships (15-year life) | ECS | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | 372.3 | $ 372.7 | ||
Useful life | 15 years | |||
Technology (15-year life) | ECS | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | $ 173.3 | $ 173.3 | ||
Useful life | 15 years | |||
Trademarks and trade names (15-year life) | ECS | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | $ 65.8 | |||
Useful life | 15 years | |||
Non-compete agreements and other (5-year life) | ECS | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets: | $ 28.1 | |||
Useful life | 5 years |
ACQUISITIONS - Purchase Price A
ACQUISITIONS - Purchase Price Allocations Related To Acquisitions (Details) - acquisition | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Number of Acquisitions | 0 | 1 |
Bedding Products | A leader in proprietary specialized foam technology, primarily for the bedding and furniture industries | ||
Business Acquisition [Line Items] | ||
Number of Acquisitions | 1 |
ACQUISITIONS - Proforma Informa
ACQUISITIONS - Proforma Information (Details) - ECS $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net trade sales | $ | $ 1,176.7 |
Net earnings | $ | $ 62.9 |
EPS Basic (in dollars per share) | $ / shares | $ 0.47 |
EPS Diluted (in dollars per share) | $ / shares | $ 0.47 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 316.6 | $ 308.7 | |
Work in process | 52 | 54.4 | |
Raw materials and supplies | 334.8 | 323.5 | |
LIFO reserve | (47.9) | (49.9) | |
Total inventories, net | 655.5 | $ 636.7 | |
Percentage of LIFO inventory | 40.00% | ||
LIFO benefit | $ 2 | $ 0 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Expected employer contribution | $ 2 | |
Components of net pension expense | ||
Service cost | 1.1 | $ 1 |
Interest cost | 1.9 | 2.2 |
Expected return on plan assets | (3) | (2.9) |
Recognized net actuarial loss | 1 | 0.8 |
Net pension expense | $ 1 | $ 1.1 |
STATEMENT OF CHANGES IN EQUIT_3
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Statement of Changes in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 1,312.5 | $ 1,157.6 | ||||
Effect of accounting change on prior years | $ (2.5) | $ 0.1 | ||||
Adjusted beginning balance | $ 1,310 | $ 1,157.7 | ||||
Net earnings | 45.7 | 61.1 | ||||
Dividends declared (See Note 7) | (52.8) | (49.9) | ||||
Treasury stock purchased | (8.4) | (11.7) | ||||
Treasury stock issued | 2.5 | 13.8 | ||||
Foreign currency translation adjustments | (65.5) | 8.8 | ||||
Cash flow hedges, net of tax | (6.3) | 3.9 | ||||
Defined benefit pension plans, net of tax | 1.2 | 0.5 | ||||
Stock-based compensation transactions, net of tax | 12.2 | 11 | ||||
Ending balance | 1,238.6 | 1,195.2 | ||||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 2,734.5 | 2,613.8 | ||||
Effect of accounting change on prior years | $ (2.5) | $ 0.1 | ||||
Adjusted beginning balance | 2,732 | 2,613.9 | ||||
Net earnings | 45.7 | 61.2 | ||||
Dividends declared (See Note 7) | (54.2) | (51.2) | ||||
Ending balance | 2,723.5 | 2,623.9 | ||||
Common Stock & Additional Contributed Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 538.1 | 529.1 | ||||
Adjusted beginning balance | 538.1 | 529.1 | ||||
Dividends declared (See Note 7) | 1.4 | 1.3 | ||||
Treasury stock issued | (16.2) | (14.6) | ||||
Stock-based compensation transactions, net of tax | 12.2 | 11 | ||||
Ending balance | 535.5 | 526.8 | ||||
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (1,883.8) | (1,908.3) | ||||
Adjusted beginning balance | (1,883.8) | (1,908.3) | ||||
Treasury stock purchased | (8.4) | (11.7) | ||||
Treasury stock issued | 18.7 | 28.4 | ||||
Ending balance | (1,873.5) | (1,891.6) | ||||
Noncontrolling Interest | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 0.5 | 0.6 | ||||
Adjusted beginning balance | 0.5 | 0.6 | ||||
Net earnings | (0.1) | |||||
Foreign currency translation adjustments | (0.1) | |||||
Ending balance | 0.4 | 0.5 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (76.8) | (77.6) | ||||
Adjusted beginning balance | $ (76.8) | $ (77.6) | ||||
Foreign currency translation adjustments | (65.4) | 8.8 | ||||
Cash flow hedges, net of tax | (6.3) | 3.9 | ||||
Defined benefit pension plans, net of tax | 1.2 | 0.5 | ||||
Ending balance | $ (147.3) | $ (64.4) |
STATEMENT OF CHANGES IN EQUIT_4
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 1,312.5 | $ 1,157.6 |
Other comprehensive income (loss) | (72.5) | 11.7 |
Reclassifications, pretax | 1.3 | 2.7 |
Income tax effect | 0.6 | (1.2) |
Attributable to noncontrolling interest | 0.1 | |
Ending balance | 1,238.6 | 1,195.2 |
Net trade sales | 1,045.5 | 1,155.1 |
Cost of goods sold | 822.7 | 922.1 |
Interest expense | 20.9 | 21.4 |
Net earnings | 45.7 | 61.1 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (76.8) | (77.6) |
Ending balance | (147.3) | (64.4) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (21.5) | (26.5) |
Other comprehensive income (loss) | (65.5) | 8.8 |
Reclassifications, pretax | 0 | 0 |
Income tax effect | 0 | 0 |
Attributable to noncontrolling interest | 0.1 | |
Ending balance | (86.9) | (17.7) |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (4.1) | (11.8) |
Other comprehensive income (loss) | (7.6) | 3.1 |
Reclassifications, pretax | 0.3 | 1.9 |
Income tax effect | 1 | (1.1) |
Attributable to noncontrolling interest | 0 | |
Ending balance | (10.4) | (7.9) |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (51.2) | (39.3) |
Other comprehensive income (loss) | 0.6 | (0.2) |
Reclassifications, pretax | 1 | 0.8 |
Income tax effect | (0.4) | (0.1) |
Attributable to noncontrolling interest | 0 | |
Ending balance | (50) | (38.8) |
Reclassification out of AOCI | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net trade sales | (0.5) | 1 |
Cost of goods sold | (0.3) | (0.2) |
Interest expense | 1.1 | 1.1 |
Other income (expense), net | 1 | 0.8 |
Net earnings | 1.3 | 2.7 |
Reclassification out of AOCI | Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net trade sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Interest expense | 0 | 0 |
Other income (expense), net | 0 | 0 |
Net earnings | 0 | 0 |
Reclassification out of AOCI | Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net trade sales | (0.5) | 1 |
Cost of goods sold | (0.3) | (0.2) |
Interest expense | 1.1 | 1.1 |
Other income (expense), net | 0 | 0 |
Net earnings | 0.3 | 1.9 |
Reclassification out of AOCI | Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net trade sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Interest expense | 0 | 0 |
Other income (expense), net | 1 | 0.8 |
Net earnings | $ 1 | $ 0.8 |
FAIR VALUE - Items Measured at
FAIR VALUE - Items Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Cash equivalents: | ||
Derivative assets | $ 4 | |
Total assets | 198.7 | |
Liabilities: | ||
Derivative liabilities | 0.9 | |
Total liabilities | 41.5 | |
Diversified investments associated with the Executive Stock Unit Program (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 41 | |
Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 40.6 | |
Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 153.7 | |
Total | ||
Cash equivalents: | ||
Derivative assets | $ 1.3 | |
Total assets | 188.7 | |
Liabilities: | ||
Derivative liabilities | 11.4 | |
Total liabilities | 45.7 | |
Total | Diversified investments associated with the Executive Stock Unit Program (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 34.8 | |
Total | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 34.3 | |
Total | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 152.6 | |
Level 1 | ||
Cash equivalents: | ||
Derivative assets | 0 | 0 |
Total assets | 34.8 | 41 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 34.3 | 40.6 |
Level 1 | Diversified investments associated with the Executive Stock Unit Program (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 34.8 | 41 |
Level 1 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 34.3 | 40.6 |
Level 1 | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 0 | 0 |
Level 2 | ||
Cash equivalents: | ||
Derivative assets | 1.3 | 4 |
Total assets | 153.9 | 157.7 |
Liabilities: | ||
Derivative liabilities | 11.4 | 0.9 |
Total liabilities | 11.4 | 0.9 |
Level 2 | Diversified investments associated with the Executive Stock Unit Program (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 0 | 0 |
Level 2 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 0 | 0 |
Level 2 | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 152.6 | 153.7 |
Level 3 | ||
Cash equivalents: | ||
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Diversified investments associated with the Executive Stock Unit Program (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 0 | 0 |
Level 3 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 0 | 0 |
Level 3 | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | $ 0 | $ 0 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Amount of transfers between Level 1 and Level 2 | $ 0 | |
Fixed rate debt greater (less) than carrying value | 20,000,000 | $ (98,600,000) |
Fixed rate debt carrying value | $ 1,586,100,000 | $ 1,585,600,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Loss on derivative | $ 0.5 |
Previously deferred loss in AOCI | $ 0.4 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Current Assets | ||
Assets | ||
Total derivatives | $ 1.3 | $ 3.7 |
Sundry | ||
Assets | ||
Total derivatives | 0.3 | |
Other Current Liabilities | ||
Liabilities | ||
Total derivative | 10.4 | 0.9 |
Other Long-Term Liabilities | ||
Liabilities | ||
Total derivative | 1 | |
Derivatives designated as hedging instruments | Cash flow hedges | Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 174.7 | |
Derivatives designated as hedging instruments | Cash flow hedges | Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 138.5 | |
Derivatives designated as hedging instruments | Cash flow hedges | Future MXN purchases of a USD subsidiary | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 11.9 | 9.8 |
Derivatives designated as hedging instruments | Cash flow hedges | Future DKK sales of Polish subsidiary | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 24.4 | 21.1 |
Derivatives designated as hedging instruments | Cash flow hedges | Future EUR sales of Chinese and UK subsidiaries | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 35.5 | 29.9 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | ||
Assets | ||
Total cash flow hedges | 0.8 | 2.8 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0.6 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 1.3 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | Future MXN purchases of a USD subsidiary | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0 | 0.5 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | Future DKK sales of Polish subsidiary | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0 | 0.3 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Assets | Future EUR sales of Chinese and UK subsidiaries | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0.2 | 0.7 |
Derivatives designated as hedging instruments | Cash flow hedges | Sundry | ||
Assets | ||
Total cash flow hedges | 0.3 | |
Derivatives designated as hedging instruments | Cash flow hedges | Sundry | Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0.2 | |
Derivatives designated as hedging instruments | Cash flow hedges | Sundry | Future MXN purchases of a USD subsidiary | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0.1 | |
Derivatives designated as hedging instruments | Cash flow hedges | Sundry | Future DKK sales of Polish subsidiary | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0 | |
Derivatives designated as hedging instruments | Cash flow hedges | Sundry | Future EUR sales of Chinese and UK subsidiaries | ||
Assets | ||
Currency cash flow derivatives designated as hedging instruments | 0 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | ||
Liabilities | ||
Total cash flow hedges | 6.4 | 0.7 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 4 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | Future USD sales/purchases of Canadian, Chinese, European, South Korean, Swiss and UK subsidiaries | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.7 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | Future MXN purchases of a USD subsidiary | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 1.3 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | Future DKK sales of Polish subsidiary | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.9 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Current Liabilities | Future EUR sales of Chinese and UK subsidiaries | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.2 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Other Long-Term Liabilities | ||
Liabilities | ||
Total cash flow hedges | 1 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Long-Term Liabilities | Future USD sales/purchases of Canadian, Chinese, European, South Korean and UK subsidiaries | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.4 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Long-Term Liabilities | Future MXN purchases of a USD subsidiary | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.3 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Long-Term Liabilities | Future DKK sales of Polish subsidiary | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.2 | |
Derivatives designated as hedging instruments | Cash flow hedges | Other Long-Term Liabilities | Future EUR sales of Chinese and UK subsidiaries | ||
Liabilities | ||
Currency cash flow derivatives designated as hedging instruments | 0.1 | |
Derivatives designated as hedging instruments | Fair value hedges | Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 112.3 | 112 |
Derivatives designated as hedging instruments | Fair value hedges | Other Current Assets | Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | ||
Assets | ||
Fair value derivatives designated as hedging instruments | 0.3 | 0.8 |
Derivatives designated as hedging instruments | Fair value hedges | Sundry | Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | ||
Assets | ||
Fair value derivatives designated as hedging instruments | 0 | |
Derivatives designated as hedging instruments | Fair value hedges | Other Current Liabilities | Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | ||
Liabilities | ||
Fair value derivatives designated as hedging instruments | 4 | 0.1 |
Derivatives designated as hedging instruments | Fair value hedges | Other Long-Term Liabilities | Intercompany and third-party receivables and payables exposed to multiple currencies (DKK, EUR, USD and ZAR) in various countries (CAD, CHF, CNY, GBP, PLN and USD) | ||
Liabilities | ||
Fair value derivatives designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0.2 | 0.1 |
Derivatives not designated as hedging instruments | Sundry | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Other Current Liabilities | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | 0 | 0.1 |
Derivatives not designated as hedging instruments | Other Long-Term Liabilities | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Fair value hedges | Non-deliverable hedges (EUR and USD) exposed to the CNY | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 10.1 | 10.1 |
Derivatives not designated as hedging instruments | Fair value hedges | Hedge of USD receivable on a CAD subsidiary | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 23 | 5 |
Derivatives not designated as hedging instruments | Fair value hedges | Other Current Assets | Non-deliverable hedges (EUR and USD) exposed to the CNY | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0.1 | 0.1 |
Derivatives not designated as hedging instruments | Fair value hedges | Other Current Assets | Hedge of USD receivable on a CAD subsidiary | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0.1 | 0 |
Derivatives not designated as hedging instruments | Fair value hedges | Sundry | Non-deliverable hedges (EUR and USD) exposed to the CNY | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Fair value hedges | Sundry | Hedge of USD receivable on a CAD subsidiary | ||
Assets | ||
Currency derivative instruments not designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Fair value hedges | Other Current Liabilities | Non-deliverable hedges (EUR and USD) exposed to the CNY | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Fair value hedges | Other Current Liabilities | Hedge of USD receivable on a CAD subsidiary | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | 0 | $ 0.1 |
Derivatives not designated as hedging instruments | Fair value hedges | Other Long-Term Liabilities | Non-deliverable hedges (EUR and USD) exposed to the CNY | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | 0 | |
Derivatives not designated as hedging instruments | Fair value hedges | Other Long-Term Liabilities | Hedge of USD receivable on a CAD subsidiary | ||
Liabilities | ||
Currency derivative instruments not designated as hedging instruments | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Pre-Tax Gains (Losses) of Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | $ 5.1 | $ 1.4 |
Derivatives designated as hedging instruments | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | 1.4 | 1.2 |
Derivatives designated as hedging instruments | Fair value hedges | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | 5 | 0.4 |
Derivatives designated as hedging instruments | Interest rate cash flow hedges | Cash flow hedges | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | 1.1 | 1.1 |
Derivatives designated as hedging instruments | Currency cash flow hedges | Cash flow hedges | Net trade sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | 0.6 | 0.4 |
Derivatives designated as hedging instruments | Currency cash flow hedges | Cash flow hedges | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | (0.3) | (0.3) |
Derivatives not designated as hedging instruments | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss recorded in income | $ (1.3) | $ (0.2) |
CONTINGENCIES - Additional Info
CONTINGENCIES - Additional Information (Details) - USD ($) | Aug. 08, 2019 | Oct. 18, 2018 | Sep. 11, 2017 | Dec. 15, 2015 | Dec. 04, 2015 | Sep. 04, 2014 | Jul. 01, 2014 | Jun. 26, 2014 | Mar. 27, 2014 | Jun. 21, 2013 | Feb. 01, 2013 | Dec. 18, 2012 | Dec. 17, 2012 | Oct. 04, 2012 | Dec. 29, 2011 | Dec. 22, 2011 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||||||||||||||||||||
Accrual | $ 600,000 | $ 700,000 | $ 1,900,000 | $ 1,900,000 | |||||||||||||||||
Loss contingency, range of possible loss, portion not accrued | 11,600,000 | ||||||||||||||||||||
Brazilian VAT matters | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Estimate of possible loss | 500,000 | ||||||||||||||||||||
Accrual | $ 2,300,000 | $ 3,100,000 | |||||||||||||||||||
Damages | $ 1,500,000 | $ 2,600,000 | $ 500,000 | $ 600,000 | $ 1,200,000 | $ 100,000 | $ 300,000 | $ 2,600,000 | $ 1,000,000 | $ 100,000 | $ 1,500,000 | 900,000 | |||||||||
Improperly offset social contribution | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||||||||||||
Brazilian VAT matters | Forecast | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Expected return | $ 400,000 | ||||||||||||||||||||
Brazilian VAT matters | Pending litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Estimate of possible loss | 10,500,000 | ||||||||||||||||||||
Accrual | 0 | ||||||||||||||||||||
Estimate of possible loss, offsetting deposit asset | 7,900,000 | ||||||||||||||||||||
Tax credit matters | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Accrual | $ 1,900,000 | ||||||||||||||||||||
Damages | $ 100,000 | $ 1,300,000 | |||||||||||||||||||
Other matters | Pending litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Estimate of possible loss | $ 1,100,000 |
CONTINGENCIES - Litigation Cont
CONTINGENCIES - Litigation Contingency Accrual (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loss Contingency Accrual [Roll Forward] | ||
Litigation contingency accrual - Beginning of period | $ 0.7 | $ 1.9 |
Adjustment to accruals - expense (income) | 0.1 | 0 |
Currency | (0.1) | 0 |
Cash payments | (0.1) | 0 |
Litigation contingency accrual - End of period | $ 0.6 | $ 1.9 |
DEBT AMENDMENT (Details)
DEBT AMENDMENT (Details) - Line of Credit | Dec. 31, 2021 | May 06, 2020 | Mar. 31, 2020 |
Debt Instrument [Line Items] | |||
Leverage ratio of indebtedness | 3.50 | ||
Secured debt limit, percentage of total consolidated assets | 15.00% | ||
Subsequent event | |||
Debt Instrument [Line Items] | |||
Secured debt limit, percentage of total consolidated assets | 5.00% | ||
Debt Covenant 1 | Subsequent event | |||
Debt Instrument [Line Items] | |||
Leverage ratio of indebtedness | 4.75 | ||
Debt Covenant 2 | Subsequent event | |||
Debt Instrument [Line Items] | |||
Leverage ratio of indebtedness | 4.25 | ||
Debt Covenant 3 | Subsequent event | |||
Debt Instrument [Line Items] | |||
Leverage ratio of indebtedness | 3.75 | ||
Debt Covenant 4 | Subsequent event | |||
Debt Instrument [Line Items] | |||
Leverage ratio of indebtedness | 3.25 | ||
Forecast | |||
Debt Instrument [Line Items] | |||
Secured debt limit, percentage of total consolidated assets | 15.00% |