Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, $.01 par value | |
Ticker Symbol | LEG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 132,618,690 | |
Entity Central Index Key | 0000058492 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 269.9 | $ 361.7 |
Trade receivables, net | 671.7 | 620 |
Other receivables, net | 50.9 | 31.5 |
Total receivables, net | 722.6 | 651.5 |
Inventories | 1,026.9 | 993.2 |
Prepaid expenses and other current assets | 72.4 | 58.9 |
Total current assets | 2,091.8 | 2,065.3 |
PROPERTY, PLANT AND EQUIPMENT—AT COST | ||
Machinery and equipment | 1,410.7 | 1,435 |
Buildings and other | 771.8 | 772.1 |
Land | 44.2 | 44.1 |
Total property, plant and equipment | 2,226.7 | 2,251.2 |
Less accumulated depreciation | 1,476.3 | 1,469.7 |
Net property, plant and equipment | 750.4 | 781.5 |
OTHER ASSETS | ||
Goodwill | 1,430.4 | 1,449.6 |
Other intangibles, less accumulated amortization of $321.3 and $298.1 as of June 30, 2022 and December 31, 2021, respectively | 665.5 | 707.8 |
Operating lease right-of-use assets | 189.3 | 192.6 |
Sundry | 103.2 | 110.5 |
Total other assets | 2,388.4 | 2,460.5 |
TOTAL ASSETS | 5,230.6 | 5,307.3 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 301.3 | 300.6 |
Current portion of operating lease liabilities | 44.8 | 44.5 |
Accounts payable | 602 | 613.8 |
Accrued expenses | 278.3 | 284.6 |
Other current liabilities | 105 | 92.2 |
Total current liabilities | 1,331.4 | 1,335.7 |
LONG-TERM LIABILITIES | ||
Long-term debt | 1,789.5 | 1,789.7 |
Operating lease liabilities | 149.5 | 153 |
Other long-term liabilities | 133.8 | 162.9 |
Deferred income taxes | 211.8 | 217.4 |
Total long-term liabilities | 2,284.6 | 2,323 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock | 2 | 2 |
Additional contributed capital | 561.3 | 557.9 |
Retained earnings | 3,041.3 | 2,973 |
Accumulated other comprehensive loss | (109.2) | (38.3) |
Treasury stock | (1,881.4) | (1,846.6) |
Total Leggett & Platt, Inc. equity | 1,614 | 1,648 |
Noncontrolling interest | 0.6 | 0.6 |
Total equity | 1,614.6 | 1,648.6 |
TOTAL LIABILITIES AND EQUITY | $ 5,230.6 | $ 5,307.3 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization | $ 321.3 | $ 298.1 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net trade sales | $ 1,334.2 | $ 1,269.6 | $ 2,656.5 | $ 2,420.5 |
Cost of goods sold | 1,065.8 | 1,000.3 | 2,120.8 | 1,903.7 |
Gross profit | 268.4 | 269.3 | 535.7 | 516.8 |
Selling and administrative expenses | 105.4 | 112.6 | 217.1 | 218.9 |
Amortization of intangibles | 16.4 | 18 | 33.4 | 33.8 |
Net gain from sale of assets and businesses | (0.7) | (28.6) | (1.3) | (28.6) |
Other (income) expense, net | 4.3 | (4.6) | 5.9 | (6.9) |
Earnings before interest and income taxes | 143 | 171.9 | 280.6 | 299.6 |
Interest expense | 21.1 | 19.5 | 41.8 | 38.8 |
Interest income | 1.1 | 0.8 | 2.3 | 1.7 |
Earnings before income taxes | 123 | 153.2 | 241.1 | 262.5 |
Income taxes | 27.8 | 40.9 | 55.5 | 62.7 |
Net earnings | 95.2 | 112.3 | 185.6 | 199.8 |
(Earnings) attributable to noncontrolling interest, net of tax | 0 | (0.1) | 0 | (0.1) |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 95.2 | $ 112.2 | $ 185.6 | $ 199.7 |
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | ||||
Basic (in usd per share) | $ 0.70 | $ 0.83 | $ 1.36 | $ 1.47 |
Diluted (in usd per share) | $ 0.70 | $ 0.82 | $ 1.36 | $ 1.46 |
Weighted average shares outstanding | ||||
Basic (in shares) | 136.3 | 136.3 | 136.4 | 136.1 |
Diluted (in shares) | 136.7 | 136.8 | 136.8 | 136.6 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 95.2 | $ 112.3 | $ 185.6 | $ 199.8 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (61) | 13.5 | (69.8) | (0.8) |
Cash flow hedges | (2.8) | 1.1 | (1.8) | 2.2 |
Defined benefit pension plans | (0.2) | 0.9 | 0.7 | 1.7 |
Other comprehensive income (loss) | (64) | 15.5 | (70.9) | 3.1 |
Comprehensive income (loss) | 31.2 | 127.8 | 114.7 | 202.9 |
Add: comprehensive loss attributable to noncontrolling interest | 0 | (0.1) | 0 | (0.1) |
Comprehensive income (loss) attributable to Leggett & Platt, Inc. | $ 31.2 | $ 127.7 | $ 114.7 | $ 202.8 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 185.6 | $ 199.8 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 56 | 58.4 |
Amortization of intangibles and supply agreements | 34.2 | 35.8 |
Increase (decrease) in provision for losses on accounts and notes receivable | 2.2 | (2.1) |
Writedown of inventories | 6.1 | 8.4 |
Net gain from sales of assets and businesses | (1.3) | (28.6) |
Deferred income tax (benefit) expense | (1.6) | 3.3 |
Stock-based compensation | 20.7 | 20.3 |
Other, net | (3) | (1.5) |
Increases/decreases in, excluding effects from acquisitions and divestitures: | ||
Accounts and other receivables | (93) | (120.9) |
Inventories | (55.8) | (192.8) |
Other current assets | (10.1) | (11.7) |
Accounts payable | 5.2 | 57.6 |
Accrued expenses and other current liabilities | (16.4) | 4.3 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 128.8 | 30.3 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (40.8) | (49) |
Purchases of companies, net of cash acquired | 0 | (151.9) |
Proceeds from sales of assets and businesses | 2.7 | 30.9 |
Other, net | 0.1 | 1.1 |
NET CASH USED FOR INVESTING ACTIVITIES | (38) | (168.9) |
FINANCING ACTIVITIES | ||
Payments on long-term debt | (0.1) | (25.1) |
Change in commercial paper and short-term debt | 2.5 | 156.4 |
Dividends paid | (112.1) | (106.3) |
Issuances of common stock | 0 | 2.4 |
Purchases of common stock | (56.9) | (9.4) |
Other, net | (0.8) | 0.6 |
NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (167.4) | 18.6 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (15.2) | 2.7 |
DECREASE IN CASH AND CASH EQUIVALENTS | (91.8) | (117.3) |
CASH AND CASH EQUIVALENTS—January 1, | 361.7 | 348.9 |
CASH AND CASH EQUIVALENTS—June 30, | $ 269.9 | $ 231.6 |
INTERIM PRESENTATION
INTERIM PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. Accounts Receivable and Accounts Payable Programs We participate in trade receivables sales programs in combination with certain customers and third-party banking institutions. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $45.0 and $35.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at June 30, 2022 and December 31, 2021, respectively. We sometimes utilize third-party programs that allow our suppliers to be paid earlier at a discount. While these programs assist us in negotiating payment terms with our suppliers, we continue to make payments based on our customary terms. A vendor can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable associated with the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $125.0 at June 30, 2022 and $130.0 at December 31, 2021. While we utilize the above items as tools in our cash flow management, and offer them as options to facilitate customer and vendor operating cycles, if there were to be a cessation of these programs, we do not expect it would materially impact our operating cash flows or liquidity. |
ACCOUNTING STANDARDS UPDATES
ACCOUNTING STANDARDS UPDATES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS UPDATES | ACCOUNTING STANDARDS UPDATESThe 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). The FASB has issued accounting guidance effective for current and future periods that did not have a material impact on our current financial statements, and we do not believe it will have any material impact on our future financial statements. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue by Product Family We disaggregate revenue by customer group, which is the same as our product families 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 segment structure, see Note 4. Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Bedding Products Bedding Group $ 1,251.9 $ 1,144.5 $ 612.5 $ 608.7 Specialized Products Automotive Group 409.0 403.4 201.5 192.6 Aerospace Products Group 59.8 49.9 30.8 26.2 Hydraulic Cylinders Group 55.4 46.0 27.8 22.9 524.2 499.3 260.1 241.7 Furniture, Flooring & Textile Products Home Furniture Group 225.0 198.9 106.6 102.8 Work Furniture Group 170.5 132.6 86.8 68.9 Flooring & Textile Products Group 484.9 445.2 268.2 247.5 880.4 776.7 461.6 419.2 $ 2,656.5 $ 2,420.5 $ 1,334.2 $ 1,269.6 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION 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 adjustable bed bases. This segment is also vertically integrated into the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external customers. Our trade customers for wire make mechanical springs and many other end products. • Specialized Products: From this segment, we supply 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: Operations in this segment supply 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 carpet cushion, hard surface flooring underlayment, and textile and geo components. Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Each reportable segment has a 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 is shown in the following tables. Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Three Months Ended June 30, 2022 Bedding Products $ 612.5 $ 11.4 $ 623.9 $ 69.1 $ 26.2 Specialized Products 260.1 .4 260.5 21.4 9.9 Furniture, Flooring & Textile Products 461.6 3.8 465.4 51.3 5.9 Intersegment eliminations and other 2 1.2 2.5 $ 1,334.2 $ 15.6 $ 1,349.8 $ 143.0 $ 44.5 Three Months Ended June 30, 2021 Bedding Products 3 $ 608.7 $ 11.0 $ 619.7 $ 100.4 $ 26.4 Specialized Products 241.7 .7 242.4 27.4 12.2 Furniture, Flooring & Textile Products 419.2 3.3 422.5 44.7 6.0 Intersegment eliminations and other 2 (.6) 3.5 $ 1,269.6 $ 15.0 $ 1,284.6 $ 171.9 $ 48.1 Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Six Months Ended June 30, 2022 Bedding Products $ 1,251.9 $ 23.4 $ 1,275.3 $ 145.3 $ 52.4 Specialized Products 524.2 1.3 525.5 41.7 20.7 Furniture, Flooring & Textile Products 880.4 8.1 888.5 94.0 11.8 Intersegment eliminations and other 2 (.4) 5.3 $ 2,656.5 $ 32.8 $ 2,689.3 $ 280.6 $ 90.2 Six Months Ended June 30, 2021 Bedding Products 3 $ 1,144.5 $ 21.0 $ 1,165.5 $ 164.2 $ 52.5 Specialized Products 499.3 1.6 500.9 62.6 23.3 Furniture, Flooring & Textile Products 776.7 6.9 783.6 73.0 12.1 Intersegment eliminations and other 2 (.2) 6.3 $ 2,420.5 $ 29.5 $ 2,450.0 $ 299.6 $ 94.2 1 See Note 3 for revenue by product family. 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 2021 EBIT: Includes $28.2 gain on the sale of real estate associated with our exited Fashion Bed business. 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. June 30, December 31, Bedding Products $ 944.8 $ 836.0 Specialized Products 333.1 316.7 Furniture, Flooring & Textile Products 417.7 373.5 Average current liabilities included in segment numbers above 825.7 814.1 Unallocated assets 1 2,692.4 2,828.5 Difference between average assets and period-end balance sheet 16.9 138.5 Total assets $ 5,230.6 $ 5,307.3 1 Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. |
GOODWILL IMPAIRMENT TESTING
GOODWILL IMPAIRMENT TESTING | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
GOODWILL IMPAIRMENT TESTING | S We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter. The 2022 and 2021 goodwill impairment testing indicated no impairments. The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in these calculations, we could incur future impairment charges. 2022 Fair Value over Carrying Value divided by Carrying Value June 30, 2022 Goodwill Value 10-year Compound Annual Growth Rate Range for Sales Terminal Values Long-term Growth Rate for Debt-Free Cash Flow Discount Rate Ranges Less than 50% 1 $ 66.3 8.5% 3.0 % 11.8% 50% - 100% 2 997.8 2.6 - 4.8 3.0 10.3 101% - 300% 245.5 1.4 - 2.6 3.0 9.8 - 10.3 Greater than 300% 120.8 8.2 3.0 11.8 $ 1,430.4 1.4% - 8.5% 3.0 % 9.8% - 11.8% 2021 Fair Value over Carrying Value divided by Carrying Value December 31, 2021 Goodwill Value 10-year Compound Annual Growth Rate Range for Sales Terminal Values Long-term Growth Rate for Debt-Free Cash Flow Discount Rate Ranges Less than 50% 1 $ 67.5 7.8% 3.0 % 10.0% 50% - 100% 2 101.0 5.5 3.0 9.0 101% - 300% 1,086.9 3.1 - 3.3 3.0 8.0 - 8.5 Greater than 300% 194.2 2.9 - 10.4 3.0 9.0 $ 1,449.6 2.9% - 10.4% 3.0 % 8.0% - 10.0% 1 This category includes one reporting unit, Aerospace, which had fair value exceeding its carrying value by 40% at June 30, 2022 as compared to 28% in 2021. Goodwill associated with the Aerospace reporting unit was $66.3 at June 30, 2022 and $67.5 at December 31, 2021. 2 This category includes two reporting units (Work Furniture and Bedding) for 2022 and the Work Furniture unit for 2021. • The fair value of our Work Furniture reporting unit exceeded its carrying value by 78% at June 30, 2022 as compared to 85% in 2021. Goodwill associated with the Work Furniture reporting unit was $98.9 at June 30, 2022 and $101.0 at December 31, 2021. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (EPS) Basic and diluted earnings per share were calculated as follows: Six Months Ended Three Months Ended 2022 2021 2022 2021 Net earnings Net earnings $ 185.6 $ 199.8 $ 95.2 $ 112.3 (Earnings) attributable to noncontrolling interest, net of tax — (.1) — (.1) Net earnings attributable to Leggett & Platt, Inc. common shareholders $ 185.6 $ 199.7 $ 95.2 $ 112.2 Weighted average number of shares (in millions): Weighted average number of common shares used in basic EPS 136.4 136.1 136.3 136.3 Dilutive effect of stock-based compensation .4 .5 .4 .5 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 136.8 136.6 136.7 136.8 Basic and diluted EPS: Basic EPS attributable to Leggett & Platt common shareholders $ 1.36 $ 1.47 $ .70 $ .83 Diluted EPS attributable to Leggett & Platt common shareholders $ 1.36 $ 1.46 $ .70 $ .82 Other information: Anti-dilutive shares excluded from diluted EPS computation .4 .1 .4 .1 Cash dividends declared per share $ .86 $ .82 $ .44 $ .42 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES Accounts and other receivables consisted of the following: June 30, 2022 December 31, 2021 Current Long-term Total Current Long-term Total Trade accounts receivable 1 $ 688.3 $ — $ 688.3 $ 634.2 $ — $ 634.2 Trade notes receivable .4 .2 .6 .7 .2 .9 Total trade receivables 688.7 .2 688.9 634.9 .2 635.1 Other notes receivable 1 — 22.7 22.7 .7 22.5 23.2 Taxes receivable, including income taxes 42.0 — 42.0 18.8 — 18.8 Other receivables 8.9 — 8.9 12.0 — 12.0 Subtotal other receivables 50.9 22.7 73.6 31.5 22.5 54.0 Total trade and other receivables 739.6 22.9 762.5 666.4 22.7 689.1 Allowance for doubtful accounts: Trade accounts receivable 1 (16.9) — (16.9) (14.9) — (14.9) Trade notes receivable (.1) — (.1) — (.1) (.1) Total trade receivables (17.0) — (17.0) (14.9) (.1) (15.0) Other notes receivable 1 — (21.6) (21.6) — (22.0) (22.0) Total allowance for doubtful accounts (17.0) (21.6) (38.6) (14.9) (22.1) (37.0) Total net receivables $ 722.6 $ 1.3 $ 723.9 $ 651.5 $ .6 $ 652.1 1 The “Trade accounts receivable” and “Other notes receivable” line items above include an aggregate of $21.9 ($21.6 for the note and $.3 for the trade receivable) and $22.5 ($22.0 for the note and $.5 for the trade receivable) as of June 30, 2022 and December 31, 2021, respectively, from a customer that has experienced continued financial difficulty and liquidity problems. The balances for this customer were fully reserved for all periods presented. Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2021 Add: Less: Balance at June 30, 2022 Trade accounts receivable $ 14.9 $ 2.6 $ .6 $ 16.9 Trade notes receivable .1 — — .1 Total trade receivables 15.0 2.6 .6 17.0 Other notes receivable 22.0 (.4) — 21.6 Total allowance for doubtful accounts $ 37.0 $ 2.2 $ .6 $ 38.6 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table recaps the impact of stock-based compensation on the results of operations for each of the periods presented: Six Months Ended Six Months Ended To be settled with stock To be settled in cash To be settled with stock To be settled in cash Executive Stock Unit (ESU) program contributions $ 2.2 $ .4 $ 2.4 $ .3 Discounts on various stock awards: Deferred Stock Compensation Program .8 — .8 — ESU program .7 — .6 — Discount Stock Plan .4 — .5 — Performance Stock Unit (PSU) awards: 1 PSU - TSR based 1A 1.3 .3 1.5 1.2 PSU - EBIT CAGR based 1B 1.2 .5 3.2 4.5 Restricted Stock Unit (RSU) awards 7.6 — 6.4 — Other, primarily non-employee directors restricted stock 1.0 — .2 — Total stock-related compensation expense 15.2 $ 1.2 15.6 $ 6.0 Employee contributions for above stock plans 5.5 4.7 Total stock-based compensation $ 20.7 $ 20.3 Tax benefits on stock-based compensation expense $ 3.7 $ 3.8 Tax benefits on stock-based compensation payments .6 3.2 Total tax benefits associated with stock-based compensation $ 4.3 $ 7.0 Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 To be settled with stock To be settled in cash To be settled with stock To be settled in cash Executive Stock Unit (ESU) program contributions $ 1.0 $ .2 $ 1.0 $ .2 Discounts on various stock awards: Deferred Stock Compensation Program .4 — .4 — ESU program .3 — .3 — Discount Stock Plan .2 — .3 — Performance Stock Unit (PSU) awards: 1 PSU - TSR based 1A .7 .3 .7 .9 PSU - EBIT CAGR based 1B .8 .7 1.5 2.3 Restricted Stock Unit (RSU) awards .9 — 1.1 — Other, primarily non-employee directors restricted stock .5 — .2 — Total stock-related compensation expense 4.8 $ 1.2 5.5 $ 3.4 Employee contributions for above stock plans 3.0 2.4 Total stock-based compensation $ 7.8 $ 7.9 Tax benefits on stock-based compensation expense $ 1.1 $ 1.3 Tax benefits on stock-based compensation payments — .6 Total tax benefits associated with stock-based compensation $ 1.1 $ 1.9 1 PSU Awards For the following programs, we intend to pay 50% in shares of our common stock and 50% in cash, although we reserve the right, subject to Human Resources and Compensation Committee approval, to pay up to 100% in cash. Cash settlements are recorded as a liability and adjusted to fair value at each reporting period. 1A PSU - TSR based 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-year vesting period. The relative TSR component of the PSU awards contain the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date; and • 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-year performance period. 1B PSU - EBIT CAGR based 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-year vesting period based on the number of shares expected to vest. The EBIT CAGR component of the PSU awards contain the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date; and • 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 EBIT during the fiscal year immediately preceding the performance period. Participants will earn from 0% to 200% of the base award. Below is a summary of shares and grant date fair value related to PSU awards for the periods presented: Six Months Ended June 30, 2022 2021 TSR based Total shares base award .1 .1 Grant date per share fair value $ 41.13 $ 49.43 Risk-free interest rate .2 % .2 % Vesting period in years 3.0 3.0 Expected volatility (over expected life) 45.2 % 44.3 % Expected dividend yield (over expected life) 4.6 % 3.7 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 32.88 $ 38.77 Vesting period in years 3.0 3.0 Three-Year Performance Cycle for PSU - TSR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date TSR Performance 2018 December 31, 2020 56.0% <.1 million $ 2.0 First quarter 2021 60 th percentile 2019 December 31, 2021 —% — million $ — First quarter 2022 78 th percentile Three-Year Performance Cycle for PSU - EBIT CAGR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date 2018 December 31, 2020 16.0% < .1 million $ .4 First quarter 2021 2019 December 31, 2021 127.0% < .1 million $ 3.5 First quarter 2022 |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS The following table contains the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during the periods presented (using inputs as discussed in Note 1 3 ). Of the goodwill included in the table below, none is expected to be deductible for tax purposes. Six Months Ended June 30, 2021 Accounts receivable $ 18.5 Inventory 17.4 Property, plant and equipment 15.6 Goodwill 72.2 Other intangible assets: Customer relationships (1 to 15-year life) 45.4 Technology (1 to 10-year life) 18.6 Trademarks and trade names (15-year life) 6.6 Noncompete agreements (1 to 5-year life) 2.7 Other current and long-term assets 5.2 Current liabilities (33.1) Deferred income taxes (10.9) Other long-term liabilities (5.0) Fair value of net identifiable assets 153.2 Less: Additional consideration payable 1.3 Net cash consideration $ 151.9 The following table summarizes acquisitions for the periods presented. Six Months Ended Number of Acquisitions Segment Product/Service June 30, 2022 None June 30, 2021 3 Bedding Products Manufacturer of specialty foam for the bedding and furniture industries; Furniture, Flooring & Textile Products Manufacturer of bent metal tubing for furniture used in office, residential, and other settings; Specialized Products Manufacturer of high-pressure and high-temperature ducting, flexible joints and components The results of operations of the above acquired companies have been included in the consolidated financial statements since the date of acquisition. The unaudited pro forma consolidated net sales, net earnings and earnings per share as though these acquisitions had occurred on January 1 of each year presented is not materially different from the amounts reflected in the accompanying financial statements. A brief description of our acquisition activity during the periods presented is included below. 2022 No businesses were acquired during the first six months of 2022. 2021 We acquired three businesses: • A specialty foam and finished mattress manufacturer serving the United Kingdom (UK) and Irish marketplace with two manufacturing facilities in the Dublin area. This acquisition became a part of our Bedding Products segment. The acquisition date was June 4. Following the recording of measurement period adjustments subsequent to second quarter 2021 shown above, the final purchase price was $119.7, with total goodwill of $58.3. • A Polish manufacturer of bent metal tubing for furniture used in office, residential, and other settings. This acquisition became a part of our Furniture, Flooring & Textile Products segment. The acquisition date was May 31. Following the recording of measurement period adjustments subsequent to second quarter 2021 shown above, the final purchase price was $5.4, with total goodwill of $4.4. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table recaps the components of inventory for each period presented: June 30, December 31, Finished goods $ 458.3 $ 429.1 Work in process 75.4 66.9 Raw materials and supplies 493.2 497.2 Inventories $ 1,026.9 $ 993.2 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. 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. We have had no material changes in inventory writedowns or slow-moving and obsolete inventory reserves in any of the periods presented. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We expect to contribute approximately $3.0 to our defined benefit pension plans in 2022. The following table provides interim information as to our defined benefit pension plans Six Months Ended Three Months Ended 2022 2021 2022 2021 Components of net pension expense Service cost $ 2.7 $ 2.5 $ 1.4 $ 1.3 Interest cost 3.3 3.0 1.6 1.5 Expected return on plan assets (6.6) (6.3) (3.3) (3.2) Recognized net actuarial loss 1.4 2.6 .7 1.3 Net pension expense $ .8 $ 1.8 $ .4 $ .9 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) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 Total Retained Common Stock Treasury Noncontrolling Accumulated Beginning balance, April 1, 2022 $ 1,671.4 $ 3,006.0 $ 558.4 $ (1,848.4) $ .6 $ (45.2) Net earnings 95.2 95.2 — — — — Dividends declared (See Note 6 ) (58.6) (59.9) 1.3 — — — Treasury stock purchased (35.2) — — (35.2) — — Treasury stock issued 1.2 — (1.0) 2.2 — — Foreign currency translation adjustments (61.0) — — — — (61.0) Cash flow hedges, net of tax (2.8) — — — — (2.8) Defined benefit pension plans, net of tax (.2) — — — — (.2) Stock-based compensation transactions, net of tax 4.6 — 4.6 — — — Ending balance, June 30, 2022 $ 1,614.6 $ 3,041.3 $ 563.3 $ (1,881.4) $ .6 $ (109.2) Three Months Ended June 30, 2021 Total Retained Common Stock Treasury Noncontrolling Accumulated Beginning balance, April 1, 2021 $ 1,456.2 $ 2,829.9 $ 542.0 $ (1,851.4) $ .5 $ (64.8) Net earnings 112.3 112.2 — — .1 — Dividends declared (See Note 6 ) (55.9) (57.1) 1.2 — — — Treasury stock purchased (2.9) — — (2.9) — — Treasury stock issued 4.1 — (.1) 4.2 — — Foreign currency translation adjustments 13.5 — — — — 13.5 Cash flow hedges, net of tax 1.1 — — — — 1.1 Defined benefit pension plans, net of tax .9 — — — — .9 Stock-based compensation transactions, net of tax 5.2 — 5.2 — — — Partial sale of business resulting in noncontrolling interest 1.5 — .3 — 1.2 — Ending balance, June 30, 2021 $ 1,536.0 $ 2,885.0 $ 548.6 $ (1,850.1) $ 1.8 $ (49.3) Six Months Ended June 30, 2022 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2022 $ 1,648.6 $ 2,973.0 $ 559.9 $ (1,846.6) $ .6 $ (38.3) Net earnings 185.6 185.6 — — — — Dividends declared (See Note 6 ) (114.7) (117.3) 2.6 — — — Treasury stock purchased (56.8) — — (56.8) — — Treasury stock issued 6.9 — (15.1) 22.0 — — Foreign currency translation adjustments (69.8) — — — — (69.8) Cash flow hedges, net of tax (1.8) — — — — (1.8) Defined benefit pension plans, net of tax .7 — — — — .7 Stock-based compensation transactions, net of tax 15.9 — 15.9 — — — Ending balance, June 30, 2022 $ 1,614.6 $ 3,041.3 $ 563.3 $ (1,881.4) $ .6 $ (109.2) Six Months Ended June 30, 2021 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2021 $ 1,425.1 $ 2,797.2 $ 545.2 $ (1,865.4) $ .5 $ (52.4) Net earnings 199.8 199.7 — — .1 — Dividends declared (See Note 6 ) (109.3) (111.9) 2.6 — — — Treasury stock purchased (11.8) — — (11.8) — — Treasury stock issued 7.4 — (19.7) 27.1 — — Foreign currency translation adjustments (.8) — — — — (.8) Cash flow hedges, net of tax 2.2 — — — — 2.2 Defined benefit pension plans, net of tax 1.7 — — — — 1.7 Stock-based compensation transactions, net of tax 20.2 — 20.2 — — — Purchase of remaining interest in noncontrolling interest, net of acquisitions 1.5 — .3 — 1.2 — Ending balance, June 30, 2021 $ 1,536.0 $ 2,885.0 $ 548.6 $ (1,850.1) $ 1.8 $ (49.3) 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 June 30, Foreign Cash Defined Accumulated Balance, April 1, 2022 $ (20.5) $ 12.9 $ (37.6) $ (45.2) Other comprehensive income (loss) (61.0) (2.9) (1.0) (64.9) Reclassifications, pretax 1 — (.4) .7 .3 Income tax effect — .5 .1 .6 Balance, June 30, 2022 $ (81.5) $ 10.1 $ (37.8) $ (109.2) Balance, April 1, 2021 $ (7.9) $ 2.5 $ (59.4) $ (64.8) Other comprehensive income (loss) 13.5 1.5 (.1) 14.9 Reclassifications, pretax 2 — (.2) 1.3 1.1 Income tax effect — (.2) (.3) (.5) Balance, June 30, 2021 $ 5.6 $ 3.6 $ (58.5) $ (49.3) 1 2022 pretax reclassifications are comprised of: Net trade sales $ — $ (1.0) $ — $ (1.0) Cost of goods sold; selling and administrative expenses — (.3) — (.3) Interest expense — .9 — .9 Other income (expense), net — — .7 .7 Total reclassifications, pretax $ — $ (.4) $ .7 $ .3 2 2021 pretax reclassifications are comprised of: Net trade sales $ — $ (1.6) $ — $ (1.6) Cost of goods sold; selling and administrative expenses — .2 — .2 Interest expense — 1.2 — 1.2 Other income (expense), net — — 1.3 1.3 Total reclassifications, pretax $ — $ (.2) $ 1.3 $ 1.1 Six Months Ended June 30, Foreign Cash Defined Accumulated Balance, January 1, 2022 $ (11.7) $ 11.9 $ (38.5) $ (38.3) Other comprehensive income (loss) (69.8) (.5) (1.0) (71.3) Reclassifications, pretax 1 — (1.6) 1.4 (.2) Income tax effect — .3 .3 .6 Balance, June 30, 2022 $ (81.5) $ 10.1 $ (37.8) $ (109.2) Balance, January 1, 2021 $ 6.4 $ 1.4 $ (60.2) $ (52.4) Other comprehensive income (loss) (.8) 3.5 (.3) 2.4 Reclassifications, pretax 2 — (.7) 2.6 1.9 Income tax effect — (.6) (.6) (1.2) Balance, June 30, 2021 $ 5.6 $ 3.6 $ (58.5) $ (49.3) 1 2022 pretax reclassifications are comprised of: Net trade sales $ — $ (2.8) $ — $ (2.8) Cost of goods sold; selling and administrative expenses — (.6) — (.6) Interest expense — 1.8 — 1.8 Other income (expense), net — — 1.4 1.4 Total reclassifications, pretax $ — $ (1.6) $ 1.4 $ (.2) 2 2021 pretax reclassifications are comprised of: Net trade sales $ — $ (3.4) $ — $ (3.4) Cost of goods sold; selling and administrative expenses — .4 — .4 Interest expense — 2.3 — 2.3 Other income (expense), net — — 2.6 2.6 Total reclassifications, pretax $ — $ (.7) $ 2.6 $ 1.9 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
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 supported 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 June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 138.6 $ — $ 138.6 Derivative assets 1 ( Note 1 4 ) — 4.2 — 4.2 Diversified investments associated with the ESU program 1 41.9 — — 41.9 Total assets $ 41.9 $ 142.8 $ — $ 184.7 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ 4.0 $ — $ 4.0 Liabilities associated with the ESU program 1 41.8 — — 41.8 Total liabilities $ 41.8 $ 4.0 $ — $ 45.8 As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 114.4 $ — $ 114.4 Derivative assets 1 ( Note 1 4 ) — 5.9 — 5.9 Diversified investments associated with the ESU program 1 51.0 — — 51.0 Total assets $ 51.0 $ 120.3 $ — $ 171.3 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ 1.2 $ — $ 1.2 Liabilities associated with the ESU program 1 50.9 — — 50.9 Total liabilities $ 50.9 $ 1.2 $ — $ 52.1 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 1) was approximately $150.0 less than carrying value of $2,083.5 at June 30, 2022 and was approximately $130.0 greater than carrying value of $2,082.3 at December 31, 2021. Items measured at fair value on a non-recurring basis The primary areas in which we utilize fair value measurements of non-financial assets and liabilities are allocating purchase price to the assets and liabilities of acquired companies ( Note 9 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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. 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 June 30, 2022 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Dec 2023 261.2 $ 3.8 $ .1 $ 3.1 $ .4 Total fair value hedges Oct 2022 54.3 — — .1 — Not designated as hedging instruments Jun 2023 78.2 .3 — .4 — Total derivatives $ 4.1 $ .1 $ 3.6 $ .4 Expiring at various dates through: Total USD As of December 31, 2021 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Jun 2023 260.6 $ 5.1 $ — $ .7 $ .1 Total fair value hedges Mar 2022 54.2 .4 — — — Not designated as hedging instruments Dec 2022 40.1 .4 — .4 — Total derivatives $ 5.9 $ — $ 1.1 $ .1 The following table sets forth the pretax (gains) losses for our hedging activities for the periods presented. This schedule includes reclassifications from accumulated other comprehensive income (see Note 1 2 ) as well as derivative settlements recorded directly to income or expense. Derivatives Income Statement Caption Amount of (Gain) Loss Amount of (Gain) Loss 2022 2021 2022 2021 Designated as hedging instruments Interest rate cash flow hedges Interest expense $ 1.8 $ 2.3 $ .9 $ 1.2 Currency cash flow hedges Net trade sales (2.3) (4.9) (.5) (2.7) Currency cash flow hedges Cost of goods sold (1.1) .3 (.7) .1 Currency cash flow hedges Other (income) expense, net — — (.1) — Total cash flow hedges (1.6) (2.3) (.4) (1.4) Fair value hedges Other (income) expense, net 1.0 (4.0) 1.5 (3.5) Not designated as hedging instruments Other (income) expense, net .1 (.2) — (.5) Total derivative instruments $ (.5) $ (6.5) $ 1.1 $ (5.4) |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
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, antitrust, 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. Accruals and Reasonably Possible Losses in Excess of Accruals Accruals for Probable Losses Although we deny liability in all 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 the aggregate, of less than $3.0 for all periods presented. There were no material adjustments to the accrual, including cash payments and expense, for the three and six-month periods ending June 30, 2022 and June 30, 2021. The 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 June 30, 2022, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of the accruals noted above are estimated to be $10.6 . I f our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change, we could realize losses in excess of the recorded accruals (and in excess of the $10.6 referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows. |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2022 | |
Risks And Uncertainties, Unusual Items [Abstract] | |
RISKS AND UNCERTAINTIES | RISKS AND UNCERTAINTIES Our Board of Directors oversees the identification, analysis, and mitigation of emerging risks, including the items discussed below. The Russian invasion of Ukraine has caused supply chain disruptions and global inflationary impacts that have had, and could continue to have, a negative effect on the demand for our products and our results of operations. Although we do not have operations in Russia, Belarus, or Ukraine, and we have not had a material amount of sales into these countries, some of our operations have sourced, directly or indirectly, a portion of their supply chain requirements of nickel, titanium, and birch plywood from Russia. Also, our Automotive business purchases semiconductors, the production of which uses neon gas. A significant portion of neon gas is produced in Ukraine. Since the invasion began, the prices of these materials have significantly increased. When we experience significant increases in costs, we are generally successful in recovering the costs by implementing price increases. If we are not able to pass through the increased costs to our customers, or if we are unable to obtain the necessary raw materials (or alternatives) in a timely manner, our results of operations could be negatively impacted. Also, if the conflict in Ukraine expands geographically or in intensity, this may have a negative impact on our operations, including access to energy and other raw materials. Furthermore, sanctions against the import of Russian oil have restricted global oil supply and further increased fuel and energy costs contributing to additional global inflationary impacts. This inflationary impact could reduce consumer spending and decrease demand for some of our products, negatively impacting our results of operations. Because of the COVID-19 pandemic, various governments in North America, Europe, Asia, and elsewhere instituted, and some have reinstituted, quarantines, shelter-in-place or stay-at-home orders, or restrictions on public gatherings as well as limitations on social interactions, which have had, and could further have, an adverse effect on the demand for our products. All of our facilities are open and running at this time. However, some of our facilities in China, most notably in our Automotive and Home Furniture businesses, have been temporarily closed from time to time due to strict COVID-related lockdown requirements. If the lockdowns in China are imposed on a broader geographic scope, this could materially negatively impact our manufacturing capacity, our customers or vendors, and our ability to transport goods in our supply chain. We have also had, at various times, some capacity restrictions on our plants due to governmental orders in other parts of the world. We have been and could be further negatively affected by governmental action in any one or more of the countries in which we operate by the imposition, or re-imposition, of restrictive social measures, mandatory closures of retail establishments that sell our products or our customers’ products, travel restrictions, and restrictions on the import or export of products. Depending on the length and severity of the COVID-19 pandemic, the percentage of the population vaccinated, and the effectiveness of the vaccines against new variants, our ability to keep our manufacturing operations open and fully operational, build and maintain appropriate labor levels, obtain necessary raw materials and parts, and ship finished products to customers may be partially or completely disrupted, either on a temporary or prolonged basis. A significant increase in COVID-19 cases among our employees may disrupt our ability to maintain necessary labor levels and produce and deliver products to our customers if we are unable to shift production to other manufacturing facilities. The continued realization of these risks to our manufacturing operations, labor force, and supply chain could also increase labor, commodity, and transportation costs. Supply chain disruptions have continued into 2022, most notably in semiconductors, labor, and transportation, potentially constraining volume growth. Currently there is a shortage of semiconductors in the automotive industry. Automotive OEMs and other suppliers have not been able to secure an adequate supply of semiconductors, and as a result have reduced or completely shut down their production of some automobiles or parts, which in turn has reduced our sale of products. Consumer demand remains strong, but the semiconductor shortage has pushed vehicle inventory to very low levels. Our Automotive Group uses the semiconductors in seat comfort products, and to a lesser extent in motors and actuators. Although our Automotive Group has been able to obtain an adequate supply of semiconductors, we are dependent on our suppliers to deliver these semiconductors in accordance with our production schedule. A shortage of the semiconductors, either to us, the automotive OEMs, or our suppliers, can disrupt our operations and our ability to deliver products to our customers. The shortage of semiconductors is also impacting our Adjustable Bed business unit. Because of shortages in the labor markets, several industries in which we operate have experienced challenges in hiring and maintaining adequate workforce levels, as well as increased labor costs. If this continues, our results of operations may be materially negatively impacted. Some facilities have experienced disruptions in logistics necessary to import, export, or transfer raw materials or finished goods, which has generally resulted in increased transportation costs that are typically passed through to our customers. Our supply chains have also been hampered by congested ports and trucking constraints. |
INTERIM PRESENTATION (Policies)
INTERIM PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. |
Accounts Receivable | Accounts Receivable and Accounts Payable Programs We participate in trade receivables sales programs in combination with certain customers and third-party banking institutions. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $45.0 and $35.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at June 30, 2022 and December 31, 2021, respectively. We sometimes utilize third-party programs that allow our suppliers to be paid earlier at a discount. While these programs assist us in negotiating payment terms with our suppliers, we continue to make payments based on our customary terms. A vendor can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable associated with the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $125.0 at June 30, 2022 and $130.0 at December 31, 2021. While we utilize the above items as tools in our cash flow management, and offer them as options to facilitate customer and vendor operating cycles, if there were to be a cessation of these programs, we do not expect it would materially impact our operating cash flows or liquidity. |
Accounts Payable Program | Accounts Receivable and Accounts Payable Programs We participate in trade receivables sales programs in combination with certain customers and third-party banking institutions. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $45.0 and $35.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at June 30, 2022 and December 31, 2021, respectively. We sometimes utilize third-party programs that allow our suppliers to be paid earlier at a discount. While these programs assist us in negotiating payment terms with our suppliers, we continue to make payments based on our customary terms. A vendor can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable associated with the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $125.0 at June 30, 2022 and $130.0 at December 31, 2021. While we utilize the above items as tools in our cash flow management, and offer them as options to facilitate customer and vendor operating cycles, if there were to be a cessation of these programs, we do not expect it would materially impact our operating cash flows or liquidity. |
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). The FASB has issued accounting guidance effective for current and future periods that did not have a material impact on our current financial statements, and we do not believe it will have any material impact on our future financial statements. |
Revenue Recognition | Revenue by Product Family We disaggregate revenue by customer group, which is the same as our product families 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 segment structure, see Note 4. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 families 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 segment structure, see Note 4. Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Bedding Products Bedding Group $ 1,251.9 $ 1,144.5 $ 612.5 $ 608.7 Specialized Products Automotive Group 409.0 403.4 201.5 192.6 Aerospace Products Group 59.8 49.9 30.8 26.2 Hydraulic Cylinders Group 55.4 46.0 27.8 22.9 524.2 499.3 260.1 241.7 Furniture, Flooring & Textile Products Home Furniture Group 225.0 198.9 106.6 102.8 Work Furniture Group 170.5 132.6 86.8 68.9 Flooring & Textile Products Group 484.9 445.2 268.2 247.5 880.4 776.7 461.6 419.2 $ 2,656.5 $ 2,420.5 $ 1,334.2 $ 1,269.6 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Results from Continuing Operations | A summary of segment results is shown in the following tables. Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Three Months Ended June 30, 2022 Bedding Products $ 612.5 $ 11.4 $ 623.9 $ 69.1 $ 26.2 Specialized Products 260.1 .4 260.5 21.4 9.9 Furniture, Flooring & Textile Products 461.6 3.8 465.4 51.3 5.9 Intersegment eliminations and other 2 1.2 2.5 $ 1,334.2 $ 15.6 $ 1,349.8 $ 143.0 $ 44.5 Three Months Ended June 30, 2021 Bedding Products 3 $ 608.7 $ 11.0 $ 619.7 $ 100.4 $ 26.4 Specialized Products 241.7 .7 242.4 27.4 12.2 Furniture, Flooring & Textile Products 419.2 3.3 422.5 44.7 6.0 Intersegment eliminations and other 2 (.6) 3.5 $ 1,269.6 $ 15.0 $ 1,284.6 $ 171.9 $ 48.1 Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Six Months Ended June 30, 2022 Bedding Products $ 1,251.9 $ 23.4 $ 1,275.3 $ 145.3 $ 52.4 Specialized Products 524.2 1.3 525.5 41.7 20.7 Furniture, Flooring & Textile Products 880.4 8.1 888.5 94.0 11.8 Intersegment eliminations and other 2 (.4) 5.3 $ 2,656.5 $ 32.8 $ 2,689.3 $ 280.6 $ 90.2 Six Months Ended June 30, 2021 Bedding Products 3 $ 1,144.5 $ 21.0 $ 1,165.5 $ 164.2 $ 52.5 Specialized Products 499.3 1.6 500.9 62.6 23.3 Furniture, Flooring & Textile Products 776.7 6.9 783.6 73.0 12.1 Intersegment eliminations and other 2 (.2) 6.3 $ 2,420.5 $ 29.5 $ 2,450.0 $ 299.6 $ 94.2 1 See Note 3 for revenue by product family. 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 2021 EBIT: Includes $28.2 gain on the sale of real estate associated with our exited Fashion Bed business. |
Summary of 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. June 30, December 31, Bedding Products $ 944.8 $ 836.0 Specialized Products 333.1 316.7 Furniture, Flooring & Textile Products 417.7 373.5 Average current liabilities included in segment numbers above 825.7 814.1 Unallocated assets 1 2,692.4 2,828.5 Difference between average assets and period-end balance sheet 16.9 138.5 Total assets $ 5,230.6 $ 5,307.3 1 Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. |
GOODWILL IMPAIRMENT TESTING (Ta
GOODWILL IMPAIRMENT TESTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Goodwill | 2022 Fair Value over Carrying Value divided by Carrying Value June 30, 2022 Goodwill Value 10-year Compound Annual Growth Rate Range for Sales Terminal Values Long-term Growth Rate for Debt-Free Cash Flow Discount Rate Ranges Less than 50% 1 $ 66.3 8.5% 3.0 % 11.8% 50% - 100% 2 997.8 2.6 - 4.8 3.0 10.3 101% - 300% 245.5 1.4 - 2.6 3.0 9.8 - 10.3 Greater than 300% 120.8 8.2 3.0 11.8 $ 1,430.4 1.4% - 8.5% 3.0 % 9.8% - 11.8% 2021 Fair Value over Carrying Value divided by Carrying Value December 31, 2021 Goodwill Value 10-year Compound Annual Growth Rate Range for Sales Terminal Values Long-term Growth Rate for Debt-Free Cash Flow Discount Rate Ranges Less than 50% 1 $ 67.5 7.8% 3.0 % 10.0% 50% - 100% 2 101.0 5.5 3.0 9.0 101% - 300% 1,086.9 3.1 - 3.3 3.0 8.0 - 8.5 Greater than 300% 194.2 2.9 - 10.4 3.0 9.0 $ 1,449.6 2.9% - 10.4% 3.0 % 8.0% - 10.0% 1 This category includes one reporting unit, Aerospace, which had fair value exceeding its carrying value by 40% at June 30, 2022 as compared to 28% in 2021. Goodwill associated with the Aerospace reporting unit was $66.3 at June 30, 2022 and $67.5 at December 31, 2021. 2 This category includes two reporting units (Work Furniture and Bedding) for 2022 and the Work Furniture unit for 2021. • The fair value of our Work Furniture reporting unit exceeded its carrying value by 78% at June 30, 2022 as compared to 85% in 2021. Goodwill associated with the Work Furniture reporting unit was $98.9 at June 30, 2022 and $101.0 at December 31, 2021. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Six Months Ended Three Months Ended 2022 2021 2022 2021 Net earnings Net earnings $ 185.6 $ 199.8 $ 95.2 $ 112.3 (Earnings) attributable to noncontrolling interest, net of tax — (.1) — (.1) Net earnings attributable to Leggett & Platt, Inc. common shareholders $ 185.6 $ 199.7 $ 95.2 $ 112.2 Weighted average number of shares (in millions): Weighted average number of common shares used in basic EPS 136.4 136.1 136.3 136.3 Dilutive effect of stock-based compensation .4 .5 .4 .5 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 136.8 136.6 136.7 136.8 Basic and diluted EPS: Basic EPS attributable to Leggett & Platt common shareholders $ 1.36 $ 1.47 $ .70 $ .83 Diluted EPS attributable to Leggett & Platt common shareholders $ 1.36 $ 1.46 $ .70 $ .82 Other information: Anti-dilutive shares excluded from diluted EPS computation .4 .1 .4 .1 Cash dividends declared per share $ .86 $ .82 $ .44 $ .42 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Components of Accounts and Other Receivables | Accounts and other receivables consisted of the following: June 30, 2022 December 31, 2021 Current Long-term Total Current Long-term Total Trade accounts receivable 1 $ 688.3 $ — $ 688.3 $ 634.2 $ — $ 634.2 Trade notes receivable .4 .2 .6 .7 .2 .9 Total trade receivables 688.7 .2 688.9 634.9 .2 635.1 Other notes receivable 1 — 22.7 22.7 .7 22.5 23.2 Taxes receivable, including income taxes 42.0 — 42.0 18.8 — 18.8 Other receivables 8.9 — 8.9 12.0 — 12.0 Subtotal other receivables 50.9 22.7 73.6 31.5 22.5 54.0 Total trade and other receivables 739.6 22.9 762.5 666.4 22.7 689.1 Allowance for doubtful accounts: Trade accounts receivable 1 (16.9) — (16.9) (14.9) — (14.9) Trade notes receivable (.1) — (.1) — (.1) (.1) Total trade receivables (17.0) — (17.0) (14.9) (.1) (15.0) Other notes receivable 1 — (21.6) (21.6) — (22.0) (22.0) Total allowance for doubtful accounts (17.0) (21.6) (38.6) (14.9) (22.1) (37.0) Total net receivables $ 722.6 $ 1.3 $ 723.9 $ 651.5 $ .6 $ 652.1 1 The “Trade accounts receivable” and “Other notes receivable” line items above include an aggregate of $21.9 ($21.6 for the note and $.3 for the trade receivable) and $22.5 ($22.0 for the note and $.5 for the trade receivable) as of June 30, 2022 and December 31, 2021, respectively, from a customer that has experienced continued financial difficulty and liquidity problems. The balances for this customer were fully reserved for all periods presented. |
Summary of Allowance for Doubtful Accounts | Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2021 Add: Less: Balance at June 30, 2022 Trade accounts receivable $ 14.9 $ 2.6 $ .6 $ 16.9 Trade notes receivable .1 — — .1 Total trade receivables 15.0 2.6 .6 17.0 Other notes receivable 22.0 (.4) — 21.6 Total allowance for doubtful accounts $ 37.0 $ 2.2 $ .6 $ 38.6 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Components of Stock-Based and Stock-Related Compensation | The following table recaps the impact of stock-based compensation on the results of operations for each of the periods presented: Six Months Ended Six Months Ended To be settled with stock To be settled in cash To be settled with stock To be settled in cash Executive Stock Unit (ESU) program contributions $ 2.2 $ .4 $ 2.4 $ .3 Discounts on various stock awards: Deferred Stock Compensation Program .8 — .8 — ESU program .7 — .6 — Discount Stock Plan .4 — .5 — Performance Stock Unit (PSU) awards: 1 PSU - TSR based 1A 1.3 .3 1.5 1.2 PSU - EBIT CAGR based 1B 1.2 .5 3.2 4.5 Restricted Stock Unit (RSU) awards 7.6 — 6.4 — Other, primarily non-employee directors restricted stock 1.0 — .2 — Total stock-related compensation expense 15.2 $ 1.2 15.6 $ 6.0 Employee contributions for above stock plans 5.5 4.7 Total stock-based compensation $ 20.7 $ 20.3 Tax benefits on stock-based compensation expense $ 3.7 $ 3.8 Tax benefits on stock-based compensation payments .6 3.2 Total tax benefits associated with stock-based compensation $ 4.3 $ 7.0 Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 To be settled with stock To be settled in cash To be settled with stock To be settled in cash Executive Stock Unit (ESU) program contributions $ 1.0 $ .2 $ 1.0 $ .2 Discounts on various stock awards: Deferred Stock Compensation Program .4 — .4 — ESU program .3 — .3 — Discount Stock Plan .2 — .3 — Performance Stock Unit (PSU) awards: 1 PSU - TSR based 1A .7 .3 .7 .9 PSU - EBIT CAGR based 1B .8 .7 1.5 2.3 Restricted Stock Unit (RSU) awards .9 — 1.1 — Other, primarily non-employee directors restricted stock .5 — .2 — Total stock-related compensation expense 4.8 $ 1.2 5.5 $ 3.4 Employee contributions for above stock plans 3.0 2.4 Total stock-based compensation $ 7.8 $ 7.9 Tax benefits on stock-based compensation expense $ 1.1 $ 1.3 Tax benefits on stock-based compensation payments — .6 Total tax benefits associated with stock-based compensation $ 1.1 $ 1.9 1 PSU Awards For the following programs, we intend to pay 50% in shares of our common stock and 50% in cash, although we reserve the right, subject to Human Resources and Compensation Committee approval, to pay up to 100% in cash. Cash settlements are recorded as a liability and adjusted to fair value at each reporting period. 1A PSU - TSR based 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-year vesting period. The relative TSR component of the PSU awards contain the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date; and • 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-year performance period. 1B PSU - EBIT CAGR based 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-year vesting period based on the number of shares expected to vest. The EBIT CAGR component of the PSU awards contain the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date; and • 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 EBIT during the fiscal year immediately preceding the performance period. Participants will earn from 0% to 200% of the base award. Below is a summary of shares and grant date fair value related to PSU awards for the periods presented: Six Months Ended June 30, 2022 2021 TSR based Total shares base award .1 .1 Grant date per share fair value $ 41.13 $ 49.43 Risk-free interest rate .2 % .2 % Vesting period in years 3.0 3.0 Expected volatility (over expected life) 45.2 % 44.3 % Expected dividend yield (over expected life) 4.6 % 3.7 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 32.88 $ 38.77 Vesting period in years 3.0 3.0 Three-Year Performance Cycle for PSU - TSR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date TSR Performance 2018 December 31, 2020 56.0% <.1 million $ 2.0 First quarter 2021 60 th percentile 2019 December 31, 2021 —% — million $ — First quarter 2022 78 th percentile Three-Year Performance Cycle for PSU - EBIT CAGR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date 2018 December 31, 2020 16.0% < .1 million $ .4 First quarter 2021 2019 December 31, 2021 127.0% < .1 million $ 3.5 First quarter 2022 |
Summary of Shares and Related Grant Date Fair Value | Below is a summary of shares and grant date fair value related to PSU awards for the periods presented: Six Months Ended June 30, 2022 2021 TSR based Total shares base award .1 .1 Grant date per share fair value $ 41.13 $ 49.43 Risk-free interest rate .2 % .2 % Vesting period in years 3.0 3.0 Expected volatility (over expected life) 45.2 % 44.3 % Expected dividend yield (over expected life) 4.6 % 3.7 % EBIT CAGR based Total shares base award .1 .1 Grant date per share fair value $ 32.88 $ 38.77 Vesting period in years 3.0 3.0 |
Summary of Performance Cycle | Three-Year Performance Cycle for PSU - TSR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date TSR Performance 2018 December 31, 2020 56.0% <.1 million $ 2.0 First quarter 2021 60 th percentile 2019 December 31, 2021 —% — million $ — First quarter 2022 78 th percentile Three-Year Performance Cycle for PSU - EBIT CAGR Based Award Year Completion Date Payout as a Number of Shares Cash Portion Distribution Date 2018 December 31, 2020 16.0% < .1 million $ .4 First quarter 2021 2019 December 31, 2021 127.0% < .1 million $ 3.5 First quarter 2022 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table contains the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during the periods presented (using inputs as discussed in Note 1 3 ). Of the goodwill included in the table below, none is expected to be deductible for tax purposes. Six Months Ended June 30, 2021 Accounts receivable $ 18.5 Inventory 17.4 Property, plant and equipment 15.6 Goodwill 72.2 Other intangible assets: Customer relationships (1 to 15-year life) 45.4 Technology (1 to 10-year life) 18.6 Trademarks and trade names (15-year life) 6.6 Noncompete agreements (1 to 5-year life) 2.7 Other current and long-term assets 5.2 Current liabilities (33.1) Deferred income taxes (10.9) Other long-term liabilities (5.0) Fair value of net identifiable assets 153.2 Less: Additional consideration payable 1.3 Net cash consideration $ 151.9 |
Summary of Acquisitions | The following table summarizes acquisitions for the periods presented. Six Months Ended Number of Acquisitions Segment Product/Service June 30, 2022 None June 30, 2021 3 Bedding Products Manufacturer of specialty foam for the bedding and furniture industries; Furniture, Flooring & Textile Products Manufacturer of bent metal tubing for furniture used in office, residential, and other settings; Specialized Products Manufacturer of high-pressure and high-temperature ducting, flexible joints and components |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of LIFO Expense | The following table recaps the components of inventory for each period presented: June 30, December 31, Finished goods $ 458.3 $ 429.1 Work in process 75.4 66.9 Raw materials and supplies 493.2 497.2 Inventories $ 1,026.9 $ 993.2 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Pension Expense | The following table provides interim information as to our defined benefit pension plans Six Months Ended Three Months Ended 2022 2021 2022 2021 Components of net pension expense Service cost $ 2.7 $ 2.5 $ 1.4 $ 1.3 Interest cost 3.3 3.0 1.6 1.5 Expected return on plan assets (6.6) (6.3) (3.3) (3.2) Recognized net actuarial loss 1.4 2.6 .7 1.3 Net pension expense $ .8 $ 1.8 $ .4 $ .9 |
STATEMENT OF CHANGES IN EQUIT_2
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss) | Three Months Ended June 30, 2022 Total Retained Common Stock Treasury Noncontrolling Accumulated Beginning balance, April 1, 2022 $ 1,671.4 $ 3,006.0 $ 558.4 $ (1,848.4) $ .6 $ (45.2) Net earnings 95.2 95.2 — — — — Dividends declared (See Note 6 ) (58.6) (59.9) 1.3 — — — Treasury stock purchased (35.2) — — (35.2) — — Treasury stock issued 1.2 — (1.0) 2.2 — — Foreign currency translation adjustments (61.0) — — — — (61.0) Cash flow hedges, net of tax (2.8) — — — — (2.8) Defined benefit pension plans, net of tax (.2) — — — — (.2) Stock-based compensation transactions, net of tax 4.6 — 4.6 — — — Ending balance, June 30, 2022 $ 1,614.6 $ 3,041.3 $ 563.3 $ (1,881.4) $ .6 $ (109.2) Three Months Ended June 30, 2021 Total Retained Common Stock Treasury Noncontrolling Accumulated Beginning balance, April 1, 2021 $ 1,456.2 $ 2,829.9 $ 542.0 $ (1,851.4) $ .5 $ (64.8) Net earnings 112.3 112.2 — — .1 — Dividends declared (See Note 6 ) (55.9) (57.1) 1.2 — — — Treasury stock purchased (2.9) — — (2.9) — — Treasury stock issued 4.1 — (.1) 4.2 — — Foreign currency translation adjustments 13.5 — — — — 13.5 Cash flow hedges, net of tax 1.1 — — — — 1.1 Defined benefit pension plans, net of tax .9 — — — — .9 Stock-based compensation transactions, net of tax 5.2 — 5.2 — — — Partial sale of business resulting in noncontrolling interest 1.5 — .3 — 1.2 — Ending balance, June 30, 2021 $ 1,536.0 $ 2,885.0 $ 548.6 $ (1,850.1) $ 1.8 $ (49.3) Six Months Ended June 30, 2022 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2022 $ 1,648.6 $ 2,973.0 $ 559.9 $ (1,846.6) $ .6 $ (38.3) Net earnings 185.6 185.6 — — — — Dividends declared (See Note 6 ) (114.7) (117.3) 2.6 — — — Treasury stock purchased (56.8) — — (56.8) — — Treasury stock issued 6.9 — (15.1) 22.0 — — Foreign currency translation adjustments (69.8) — — — — (69.8) Cash flow hedges, net of tax (1.8) — — — — (1.8) Defined benefit pension plans, net of tax .7 — — — — .7 Stock-based compensation transactions, net of tax 15.9 — 15.9 — — — Ending balance, June 30, 2022 $ 1,614.6 $ 3,041.3 $ 563.3 $ (1,881.4) $ .6 $ (109.2) Six Months Ended June 30, 2021 Total Retained Common Treasury Noncontrolling Accumulated Beginning balance, January 1, 2021 $ 1,425.1 $ 2,797.2 $ 545.2 $ (1,865.4) $ .5 $ (52.4) Net earnings 199.8 199.7 — — .1 — Dividends declared (See Note 6 ) (109.3) (111.9) 2.6 — — — Treasury stock purchased (11.8) — — (11.8) — — Treasury stock issued 7.4 — (19.7) 27.1 — — Foreign currency translation adjustments (.8) — — — — (.8) Cash flow hedges, net of tax 2.2 — — — — 2.2 Defined benefit pension plans, net of tax 1.7 — — — — 1.7 Stock-based compensation transactions, net of tax 20.2 — 20.2 — — — Purchase of remaining interest in noncontrolling interest, net of acquisitions 1.5 — .3 — 1.2 — Ending balance, June 30, 2021 $ 1,536.0 $ 2,885.0 $ 548.6 $ (1,850.1) $ 1.8 $ (49.3) |
Summary of 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 June 30, Foreign Cash Defined Accumulated Balance, April 1, 2022 $ (20.5) $ 12.9 $ (37.6) $ (45.2) Other comprehensive income (loss) (61.0) (2.9) (1.0) (64.9) Reclassifications, pretax 1 — (.4) .7 .3 Income tax effect — .5 .1 .6 Balance, June 30, 2022 $ (81.5) $ 10.1 $ (37.8) $ (109.2) Balance, April 1, 2021 $ (7.9) $ 2.5 $ (59.4) $ (64.8) Other comprehensive income (loss) 13.5 1.5 (.1) 14.9 Reclassifications, pretax 2 — (.2) 1.3 1.1 Income tax effect — (.2) (.3) (.5) Balance, June 30, 2021 $ 5.6 $ 3.6 $ (58.5) $ (49.3) 1 2022 pretax reclassifications are comprised of: Net trade sales $ — $ (1.0) $ — $ (1.0) Cost of goods sold; selling and administrative expenses — (.3) — (.3) Interest expense — .9 — .9 Other income (expense), net — — .7 .7 Total reclassifications, pretax $ — $ (.4) $ .7 $ .3 2 2021 pretax reclassifications are comprised of: Net trade sales $ — $ (1.6) $ — $ (1.6) Cost of goods sold; selling and administrative expenses — .2 — .2 Interest expense — 1.2 — 1.2 Other income (expense), net — — 1.3 1.3 Total reclassifications, pretax $ — $ (.2) $ 1.3 $ 1.1 Six Months Ended June 30, Foreign Cash Defined Accumulated Balance, January 1, 2022 $ (11.7) $ 11.9 $ (38.5) $ (38.3) Other comprehensive income (loss) (69.8) (.5) (1.0) (71.3) Reclassifications, pretax 1 — (1.6) 1.4 (.2) Income tax effect — .3 .3 .6 Balance, June 30, 2022 $ (81.5) $ 10.1 $ (37.8) $ (109.2) Balance, January 1, 2021 $ 6.4 $ 1.4 $ (60.2) $ (52.4) Other comprehensive income (loss) (.8) 3.5 (.3) 2.4 Reclassifications, pretax 2 — (.7) 2.6 1.9 Income tax effect — (.6) (.6) (1.2) Balance, June 30, 2021 $ 5.6 $ 3.6 $ (58.5) $ (49.3) 1 2022 pretax reclassifications are comprised of: Net trade sales $ — $ (2.8) $ — $ (2.8) Cost of goods sold; selling and administrative expenses — (.6) — (.6) Interest expense — 1.8 — 1.8 Other income (expense), net — — 1.4 1.4 Total reclassifications, pretax $ — $ (1.6) $ 1.4 $ (.2) 2 2021 pretax reclassifications are comprised of: Net trade sales $ — $ (3.4) $ — $ (3.4) Cost of goods sold; selling and administrative expenses — .4 — .4 Interest expense — 2.3 — 2.3 Other income (expense), net — — 2.6 2.6 Total reclassifications, pretax $ — $ (.7) $ 2.6 $ 1.9 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of 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 June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 138.6 $ — $ 138.6 Derivative assets 1 ( Note 1 4 ) — 4.2 — 4.2 Diversified investments associated with the ESU program 1 41.9 — — 41.9 Total assets $ 41.9 $ 142.8 $ — $ 184.7 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ 4.0 $ — $ 4.0 Liabilities associated with the ESU program 1 41.8 — — 41.8 Total liabilities $ 41.8 $ 4.0 $ — $ 45.8 As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 114.4 $ — $ 114.4 Derivative assets 1 ( Note 1 4 ) — 5.9 — 5.9 Diversified investments associated with the ESU program 1 51.0 — — 51.0 Total assets $ 51.0 $ 120.3 $ — $ 171.3 Liabilities: Derivative liabilities 1 ( Note 1 4 ) $ — $ 1.2 $ — $ 1.2 Liabilities associated with the ESU program 1 50.9 — — 50.9 Total liabilities $ 50.9 $ 1.2 $ — $ 52.1 1 Includes both current and long-term amounts. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of 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 June 30, 2022 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Dec 2023 261.2 $ 3.8 $ .1 $ 3.1 $ .4 Total fair value hedges Oct 2022 54.3 — — .1 — Not designated as hedging instruments Jun 2023 78.2 .3 — .4 — Total derivatives $ 4.1 $ .1 $ 3.6 $ .4 Expiring at various dates through: Total USD As of December 31, 2021 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Jun 2023 260.6 $ 5.1 $ — $ .7 $ .1 Total fair value hedges Mar 2022 54.2 .4 — — — Not designated as hedging instruments Dec 2022 40.1 .4 — .4 — Total derivatives $ 5.9 $ — $ 1.1 $ .1 |
Summary of Pre-Tax (Gains) Losses of Hedging Activities | The following table sets forth the pretax (gains) losses for our hedging activities for the periods presented. This schedule includes reclassifications from accumulated other comprehensive income (see Note 1 2 ) as well as derivative settlements recorded directly to income or expense. Derivatives Income Statement Caption Amount of (Gain) Loss Amount of (Gain) Loss 2022 2021 2022 2021 Designated as hedging instruments Interest rate cash flow hedges Interest expense $ 1.8 $ 2.3 $ .9 $ 1.2 Currency cash flow hedges Net trade sales (2.3) (4.9) (.5) (2.7) Currency cash flow hedges Cost of goods sold (1.1) .3 (.7) .1 Currency cash flow hedges Other (income) expense, net — — (.1) — Total cash flow hedges (1.6) (2.3) (.4) (1.4) Fair value hedges Other (income) expense, net 1.0 (4.0) 1.5 (3.5) Not designated as hedging instruments Other (income) expense, net .1 (.2) — (.5) Total derivative instruments $ (.5) $ (6.5) $ 1.1 $ (5.4) |
INTERIM PRESENTATION (Details)
INTERIM PRESENTATION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable trade percentage of face value interest sold | 100% | |
Disposal group, including discontinued operation, accounts, notes and loans receivable, net | $ 45 | $ 35 |
Accounts payable third party programs | $ 125 | $ 130 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | $ 1,334.2 | $ 1,269.6 | $ 2,656.5 | $ 2,420.5 |
Bedding Products | Bedding Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 612.5 | 608.7 | 1,251.9 | 1,144.5 |
Specialized Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 260.1 | 241.7 | 524.2 | 499.3 |
Specialized Products | Automotive Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 201.5 | 192.6 | 409 | 403.4 |
Specialized Products | Aerospace Products Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 30.8 | 26.2 | 59.8 | 49.9 |
Specialized Products | Hydraulic Cylinders Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 27.8 | 22.9 | 55.4 | 46 |
Furniture, Flooring & Textile Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 461.6 | 419.2 | 880.4 | 776.7 |
Furniture, Flooring & Textile Products | Home Furniture Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 106.6 | 102.8 | 225 | 198.9 |
Furniture, Flooring & Textile Products | Work Furniture Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | 86.8 | 68.9 | 170.5 | 132.6 |
Furniture, Flooring & Textile Products | Flooring & Textile Products Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net trade sales | $ 268.2 | $ 247.5 | $ 484.9 | $ 445.2 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Segment Results from Continuing Operations (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 3 | |||
Net trade sales | $ 1,334.2 | $ 1,269.6 | $ 2,656.5 | $ 2,420.5 |
Total Sales | 1,349.8 | 1,284.6 | 2,689.3 | 2,450 |
EBIT | 143 | 171.9 | 280.6 | 299.6 |
Depreciation and Amortization | 44.5 | 48.1 | 90.2 | 94.2 |
Bedding Products | ||||
Segment Reporting Information [Line Items] | ||||
Total Sales | 623.9 | 619.7 | 1,275.3 | 1,165.5 |
EBIT | 69.1 | 100.4 | 145.3 | 164.2 |
Depreciation and Amortization | 26.2 | 26.4 | 52.4 | 52.5 |
Specialized Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 260.1 | 241.7 | 524.2 | 499.3 |
Total Sales | 260.5 | 242.4 | 525.5 | 500.9 |
EBIT | 21.4 | 27.4 | 41.7 | 62.6 |
Depreciation and Amortization | 9.9 | 12.2 | 20.7 | 23.3 |
Furniture, Flooring & Textile Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 461.6 | 419.2 | 880.4 | 776.7 |
Total Sales | 465.4 | 422.5 | 888.5 | 783.6 |
EBIT | 51.3 | 44.7 | 94 | 73 |
Depreciation and Amortization | 5.9 | 6 | 11.8 | 12.1 |
Fashion Bed Business | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of real estate | 28.2 | |||
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 1,334.2 | 1,269.6 | 2,656.5 | 2,420.5 |
Operating segments | Bedding Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 612.5 | 608.7 | 1,251.9 | 1,144.5 |
Operating segments | Specialized Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 260.1 | 241.7 | 524.2 | 499.3 |
Operating segments | Furniture, Flooring & Textile Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 461.6 | 419.2 | 880.4 | 776.7 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 15.6 | 15 | 32.8 | 29.5 |
EBIT | 1.2 | (0.6) | (0.4) | (0.2) |
Depreciation and Amortization | 2.5 | 3.5 | 5.3 | 6.3 |
Intersegment eliminations | Bedding Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 11.4 | 11 | 23.4 | 21 |
Intersegment eliminations | Specialized Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | 0.4 | 0.7 | 1.3 | 1.6 |
Intersegment eliminations | Furniture, Flooring & Textile Products | ||||
Segment Reporting Information [Line Items] | ||||
Net trade sales | $ 3.8 | $ 3.3 | $ 8.1 | $ 6.9 |
SEGMENT INFORMATION - Average A
SEGMENT INFORMATION - Average Assets for Segments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,230.6 | $ 5,307.3 |
Operating segments | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 944.8 | 836 |
Operating segments | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 333.1 | 316.7 |
Operating segments | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 417.7 | 373.5 |
Operating segments | Average current liabilities included in segment numbers above | ||
Segment Reporting Information [Line Items] | ||
Total assets | 825.7 | 814.1 |
Unallocated assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,692.4 | 2,828.5 |
Difference between average assets and period-end balance sheet | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 16.9 | $ 138.5 |
GOODWILL IMPAIRMENT TESTING (Go
GOODWILL IMPAIRMENT TESTING (Goodwill) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) reporting_unit | Dec. 31, 2021 USD ($) | |
Goodwill [Line Items] | ||
Goodwill value | $ 1,430.4 | $ 1,449.6 |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | 3% | 3% |
Aerospace Products Group | ||
Goodwill [Line Items] | ||
Goodwill value | $ 66.3 | $ 67.5 |
Number of reporting units | reporting_unit | 1 | |
Percentage of fair value in excess of carrying amount | 40% | 28% |
Work Furniture And Bedding | ||
Goodwill [Line Items] | ||
Number of reporting units | reporting_unit | 2 | |
Work Furniture Group | ||
Goodwill [Line Items] | ||
Goodwill value | $ 98.9 | $ 101 |
Percentage of fair value in excess of carrying amount | 78% | 85% |
Bedding Group | ||
Goodwill [Line Items] | ||
Goodwill value | $ 898.9 | $ 908.3 |
Percentage of fair value in excess of carrying amount | 54% | 171% |
Less than 50% | ||
Goodwill [Line Items] | ||
Goodwill value | $ 66.3 | $ 67.5 |
10-year Compound Annual Growth Rate Range for Sales | 8.50% | 7.80% |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | 3% | 3% |
Discount Rate Ranges | 11.80% | 10% |
50%-100% | ||
Goodwill [Line Items] | ||
Goodwill value | $ 997.8 | $ 101 |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | 3% | 3% |
Discount Rate Ranges | 10.30% | |
101% - 300% | ||
Goodwill [Line Items] | ||
Goodwill value | $ 245.5 | $ 1,086.9 |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | 3% | 3% |
Greater than 300% | ||
Goodwill [Line Items] | ||
Goodwill value | $ 120.8 | $ 194.2 |
Terminal Values Long-term Growth Rate for Debt-Free Cash Flow | 3% | 3% |
Discount Rate Ranges | 11.80% | 9% |
Minimum | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 1.40% | 2.90% |
Discount Rate Ranges | 9.80% | 8% |
Minimum | 50%-100% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 2.60% | |
Discount Rate Ranges | ||
Minimum | 101% - 300% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 1.40% | 3.10% |
Discount Rate Ranges | 9.80% | 8% |
Minimum | Greater than 300% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 2.90% | |
Maximum | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 8.50% | 10.40% |
Discount Rate Ranges | 11.80% | 10% |
Maximum | 50%-100% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 4.80% | 5.50% |
Discount Rate Ranges | 9% | |
Maximum | 101% - 300% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 2.60% | 3.30% |
Discount Rate Ranges | 10.30% | 8.50% |
Maximum | Greater than 300% | ||
Goodwill [Line Items] | ||
10-year Compound Annual Growth Rate Range for Sales | 8.20% | 10.40% |
EARNINGS PER SHARE (EPS) - Calc
EARNINGS PER SHARE (EPS) - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net earnings | ||||
Net earnings | $ 95.2 | $ 112.3 | $ 185.6 | $ 199.8 |
(Earnings) attributable to noncontrolling interest, net of tax | 0 | (0.1) | 0 | (0.1) |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 95.2 | $ 112.2 | $ 185.6 | $ 199.7 |
Weighted average number of shares (in millions): | ||||
Weighted average number of common shares used in basic EPS (in shares) | 136.3 | 136.3 | 136.4 | 136.1 |
Dilutive effect of stock-based compensation (in shares) | 0.4 | 0.5 | 0.4 | 0.5 |
Weighted average number of common shares and dilutive potential common shares used in diluted EPS (in shares) | 136.7 | 136.8 | 136.8 | 136.6 |
Basic and diluted EPS: | ||||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders (in dollars per share) | $ 0.70 | $ 0.83 | $ 1.36 | $ 1.47 |
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders (in dollars per share) | $ 0.70 | $ 0.82 | $ 1.36 | $ 1.46 |
Other information: | ||||
Anti-dilutive shares excluded from diluted EPS computation (in shares) | 0.4 | 0.1 | 0.4 | 0.1 |
Cash dividends declared per share (in usd per share) | $ 0.44 | $ 0.42 | $ 0.86 | $ 0.82 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES - Components of Accounts and Other Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current | ||
Trade accounts receivable | $ 688.3 | $ 634.2 |
Trade notes receivable | 0.4 | 0.7 |
Total trade receivables | 688.7 | 634.9 |
Other notes receivable | 0 | 0.7 |
Taxes receivable, including income taxes | 42 | 18.8 |
Other receivables | 8.9 | 12 |
Subtotal other receivables | 50.9 | 31.5 |
Total trade and other receivables | 739.6 | 666.4 |
Allowance for doubtful accounts: | ||
Trade accounts receivable | (16.9) | (14.9) |
Trade notes receivable | (0.1) | 0 |
Total trade receivables | (17) | (14.9) |
Other notes receivable | 0 | 0 |
Total allowance for doubtful accounts | (17) | (14.9) |
Total receivables, net | 722.6 | 651.5 |
Long-term | ||
Trade accounts receivable | 0 | 0 |
Trade notes receivable | 0.2 | 0.2 |
Total trade receivables | 0.2 | 0.2 |
Other notes receivable | 22.7 | 22.5 |
Taxes receivable, including income taxes | 0 | 0 |
Other receivables | 0 | 0 |
Subtotal other receivables | 22.7 | 22.5 |
Total trade and other receivables | 22.9 | 22.7 |
Allowance for doubtful accounts: | ||
Trade accounts receivable | 0 | 0 |
Trade notes receivable | 0 | (0.1) |
Total trade receivables | 0 | (0.1) |
Other notes receivable | (21.6) | (22) |
Total allowance for doubtful accounts | (21.6) | (22.1) |
Total net receivables | 1.3 | 0.6 |
Receivable, gross | ||
Trade accounts receivable | 688.3 | 634.2 |
Trade notes receivable | 0.6 | 0.9 |
Total trade receivables | 688.9 | 635.1 |
Other notes receivable | 22.7 | 23.2 |
Taxes receivable, including income taxes | 42 | 18.8 |
Other receivables | 8.9 | 12 |
Subtotal other receivables | 73.6 | 54 |
Total trade and other receivables | 762.5 | 689.1 |
Allowance for doubtful accounts: | ||
Total, trade accounts receivables | (16.9) | (14.9) |
Total, trade notes receivables | (0.1) | (0.1) |
Total, trade receivables | (17) | (15) |
Total, other notes receivable | (21.6) | (22) |
Total allowance for doubtful accounts | (38.6) | (37) |
Total net receivables | $ 723.9 | $ 652.1 |
ACCOUNTS AND OTHER RECEIVABLE_3
ACCOUNTS AND OTHER RECEIVABLES - Components of Accounts and Other Receivables - Narrative (Details) - Bedding Products - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ 21.9 | $ 22.5 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | 0.3 | 0.5 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ 21.6 | $ 22 |
ACCOUNTS AND OTHER RECEIVABLE_4
ACCOUNTS AND OTHER RECEIVABLES - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 37 | |
Add: Charges | 2.2 | $ (2.1) |
Less: Net Charge-offs/ (Recoveries) and Other | 0.6 | |
Balance at End of Period | 38.6 | |
Trade accounts receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 14.9 | |
Add: Charges | 2.6 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0.6 | |
Balance at End of Period | 16.9 | |
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 | 15 | |
Add: Charges | 2.6 | |
Less: Net Charge-offs/ (Recoveries) and Other | 0.6 | |
Balance at End of Period | 17 | |
Other notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 22 | |
Add: Charges | (0.4) | |
Less: Net Charge-offs/ (Recoveries) and Other | 0 | |
Balance at End of Period | $ 21.6 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Components of Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 20.7 | $ 20.3 | ||
Tax benefits on stock-based compensation expense | $ 1.1 | $ 1.9 | 4.3 | 7 |
To be settled with stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 4.8 | 5.5 | 15.2 | 15.6 |
Employee contributions for above stock plans | 3 | 2.4 | 5.5 | 4.7 |
Total stock-based compensation | 7.8 | 7.9 | 20.7 | 20.3 |
Tax benefits on stock-based compensation expense | 1.1 | 1.3 | 3.7 | 3.8 |
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 | 0 | 0.6 | 0.6 | 3.2 |
To be settled with stock | Executive Stock Unit (ESU) program contributions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 1 | 1 | 2.2 | 2.4 |
To be settled with stock | Deferred Stock Compensation Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.4 | 0.4 | 0.8 | 0.8 |
To be settled with stock | ESU program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.3 | 0.3 | 0.7 | 0.6 |
To be settled with stock | Discount Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.2 | 0.3 | 0.4 | 0.5 |
To be settled with stock | PSU - TSR based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.7 | 0.7 | 1.3 | 1.5 |
To be settled with stock | PSU - E B I T C A G R based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.8 | 1.5 | 1.2 | 3.2 |
To be settled with stock | Restricted Stock Unit (RSU) awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.9 | 1.1 | 7.6 | 6.4 |
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-related compensation expense | 0.5 | 0.2 | 1 | 0.2 |
To be settled in cash | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 1.2 | 3.4 | 1.2 | 6 |
To be settled in cash | Executive Stock Unit (ESU) program contributions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.2 | 0.2 | 0.4 | 0.3 |
To be settled in cash | Deferred Stock Compensation Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0 | 0 | 0 | 0 |
To be settled in cash | ESU program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0 | 0 | 0 | 0 |
To be settled in cash | Discount Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0 | 0 | 0 | 0 |
To be settled in cash | PSU - TSR based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.3 | 0.9 | 0.3 | 1.2 |
To be settled in cash | PSU - E B I T C A G R based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0.7 | 2.3 | 0.5 | 4.5 |
To be settled in cash | Restricted Stock Unit (RSU) awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-related compensation expense | 0 | 0 | 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-related compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 company | |
Prior PSU awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award intended to pay out in stock | 50% |
Share based compensation arrangement by share based payment award percentage paid out in cash | 50% |
Reserved percentage of award intended to pay out in cash | 100% |
PSU awards based on TSR compared to peer group | 50% |
PSU awards based on TSR for business unit employees | 100% |
Vesting period | 3 years |
Number of companies forming peer group | 300 |
Award performance period | 3 years |
Prior PSU awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Base award percentage of total shareholder return | 0% |
Prior PSU awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Base award percentage of total shareholder return | 200% |
PSU - E B I T C A G R based | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Percentage of award vesting | 50% |
Period in which expense is recognized | 3 years |
PSU - E B I T C A G R based | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Base award percentage of total shareholder return | 0% |
PSU - E B I T C A G R based | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Base award percentage of total shareholder return | 200% |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Performance Stock Units (Details) - Performance Stock Unit - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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 usd per share) | $ 41.13 | $ 49.43 |
Risk-free interest rate | 0.20% | 0.20% |
Vesting period in years | 3 years | 3 years |
Expected volatility (over expected life) | 45.20% | 44.30% |
Expected dividend yield (over expected life) | 4.60% | 3.70% |
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 usd per share) | $ 32.88 | $ 38.77 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Award Year 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Performance Relative to the Peer Group (1% Best) | 60% | |
Payout as a Percent of the Base Award | 56% | |
Number of Shares Distributed (less than) (in shares) | 0.1 | |
Cash Portion | $ 2 | |
Award Year 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Performance Relative to the Peer Group (1% Best) | 78% | |
Payout as a Percent of the Base Award | 0% | |
Number of Shares Distributed (less than) (in shares) | 0 | |
Cash Portion | $ 0 | |
Award Year 2018, PSU - EBIT CAGR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout as a Percent of the Base Award | 16% | |
Number of Shares Distributed (less than) (in shares) | 0.1 | |
Cash Portion | $ 0.4 | |
Award Year 2019, PSU - EBIT CAGR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout as a Percent of the Base Award | 127% | |
Number of Shares Distributed (less than) (in shares) | 0.1 | |
Cash Portion | $ 3.5 |
ACQUISITIONS - Estimated Fair V
ACQUISITIONS - Estimated Fair Values Of The Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,430.4 | $ 1,449.6 | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 18.5 | ||
Inventory | 17.4 | ||
Property, plant and equipment | 15.6 | ||
Goodwill | 72.2 | ||
Other current and long-term assets | 5.2 | ||
Current liabilities | (33.1) | ||
Deferred income taxes | (10.9) | ||
Other long-term liabilities | (5) | ||
Fair value of net identifiable assets | 153.2 | ||
Less: Additional consideration payable | 1.3 | ||
Net cash consideration | 151.9 | ||
Customer relationships (1 to 15-year life) | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Other intangible assets: | $ 45.4 | ||
Customer relationships (1 to 15-year life) | Series of Individually Immaterial Business Acquisitions | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life | 1 year | ||
Customer relationships (1 to 15-year life) | Series of Individually Immaterial Business Acquisitions | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life | 15 years | ||
Technology (1 to 10-year life) | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Other intangible assets: | $ 18.6 | ||
Technology (1 to 10-year life) | Series of Individually Immaterial Business Acquisitions | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life | 1 year | ||
Technology (1 to 10-year life) | Series of Individually Immaterial Business Acquisitions | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life | 10 years | ||
Trademarks and trade names (15-year life) | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Other intangible assets: | $ 6.6 | ||
Useful life | 15 years | ||
Noncompete agreements (1 to 5-year life) | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Other intangible assets: | $ 2.7 | ||
Noncompete agreements (1 to 5-year life) | Series of Individually Immaterial Business Acquisitions | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life | 1 year | ||
Noncompete agreements (1 to 5-year life) | Series of Individually Immaterial Business Acquisitions | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life | 5 years |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) | 6 Months Ended | ||||
Jun. 04, 2021 USD ($) manufacturingFacility | May 31, 2021 USD ($) | Jan. 30, 2021 USD ($) | Jun. 30, 2022 acquisition | Jun. 30, 2021 USD ($) acquisition | |
Business Acquisition [Line Items] | |||||
Goodwill, expected to provide a tax benefit | $ 0 | ||||
Number of Acquisitions | acquisition | 0 | 3 | |||
Premium foam and bedding manufacturer | |||||
Business Acquisition [Line Items] | |||||
Number of manufacturing facilities | manufacturingFacility | 2 | ||||
Purchase price | $ 119,700,000 | ||||
Goodwill acquired | $ 58,300,000 | ||||
UK manufacturer | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 27,700,000 | ||||
Goodwill acquired | $ 8,500,000 | ||||
Polish manufacturer | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 5,400,000 | ||||
Goodwill acquired | $ 4,400,000 |
INVENTORIES - Components of Inv
INVENTORIES - Components of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 458.3 | $ 429.1 |
Work in process | 75.4 | 66.9 |
Raw materials and supplies | 493.2 | 497.2 |
Inventories | $ 1,026.9 | $ 993.2 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Expected employer contribution | $ 3 | $ 3 | ||
Components of net pension expense | ||||
Service cost | 1.4 | $ 1.3 | 2.7 | $ 2.5 |
Interest cost | 1.6 | 1.5 | 3.3 | 3 |
Expected return on plan assets | (3.3) | (3.2) | (6.6) | (6.3) |
Recognized net actuarial loss | 0.7 | 1.3 | 1.4 | 2.6 |
Net pension expense | $ 0.4 | $ 0.9 | $ 0.8 | $ 1.8 |
Defined Benefit Plan, Type [Extensible Enumeration] | Pension Plan [Member] |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 1,671.4 | $ 1,456.2 | $ 1,648.6 | $ 1,425.1 |
Net earnings | 95.2 | 112.3 | 185.6 | 199.8 |
Dividends declared | (58.6) | (55.9) | (114.7) | (109.3) |
Treasury stock purchased | (35.2) | (2.9) | (56.8) | (11.8) |
Treasury stock issued | 1.2 | 4.1 | 6.9 | 7.4 |
Foreign currency translation adjustments | (61) | 13.5 | (69.8) | (0.8) |
Cash flow hedges, net of tax | (2.8) | 1.1 | (1.8) | 2.2 |
Defined benefit pension plans, net of tax | (0.2) | 0.9 | 0.7 | 1.7 |
Stock-based compensation transactions, net of tax | 4.6 | 5.2 | 15.9 | 20.2 |
Partial sale of business resulting in noncontrolling interest | 1.5 | |||
Purchase of remaining interest in noncontrolling interest, net of acquisitions | 1.5 | |||
Ending balance | 1,614.6 | 1,536 | 1,614.6 | 1,536 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 3,006 | 2,829.9 | 2,973 | 2,797.2 |
Net earnings | 95.2 | 112.2 | 185.6 | 199.7 |
Dividends declared | (59.9) | (57.1) | (117.3) | (111.9) |
Ending balance | 3,041.3 | 2,885 | 3,041.3 | 2,885 |
Common Stock & Additional Contributed Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 558.4 | 542 | 559.9 | 545.2 |
Dividends declared | 1.3 | 1.2 | 2.6 | 2.6 |
Treasury stock issued | (1) | (0.1) | (15.1) | (19.7) |
Stock-based compensation transactions, net of tax | 4.6 | 5.2 | 15.9 | 20.2 |
Partial sale of business resulting in noncontrolling interest | 0.3 | |||
Purchase of remaining interest in noncontrolling interest, net of acquisitions | 0.3 | |||
Ending balance | 563.3 | 548.6 | 563.3 | 548.6 |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,848.4) | (1,851.4) | (1,846.6) | (1,865.4) |
Treasury stock purchased | (35.2) | (2.9) | (56.8) | (11.8) |
Treasury stock issued | 2.2 | 4.2 | 22 | 27.1 |
Ending balance | (1,881.4) | (1,850.1) | (1,881.4) | (1,850.1) |
Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 0.6 | 0.5 | 0.6 | 0.5 |
Net earnings | 0.1 | 0.1 | ||
Partial sale of business resulting in noncontrolling interest | 1.2 | |||
Purchase of remaining interest in noncontrolling interest, net of acquisitions | 1.2 | |||
Ending balance | 0.6 | 1.8 | 0.6 | 1.8 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (45.2) | (64.8) | (38.3) | (52.4) |
Foreign currency translation adjustments | (61) | 13.5 | (69.8) | (0.8) |
Cash flow hedges, net of tax | (2.8) | 1.1 | (1.8) | 2.2 |
Defined benefit pension plans, net of tax | (0.2) | 0.9 | 0.7 | 1.7 |
Ending balance | $ (109.2) | $ (49.3) | $ (109.2) | $ (49.3) |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 1,671.4 | $ 1,456.2 | $ 1,648.6 | $ 1,425.1 |
Other comprehensive income (loss) | (64.9) | 14.9 | (71.3) | 2.4 |
Reclassifications, pretax | 0.3 | 1.1 | (0.2) | 1.9 |
Income tax effect | 0.6 | (0.5) | 0.6 | (1.2) |
Ending balance | 1,614.6 | 1,536 | 1,614.6 | 1,536 |
Net trade sales | 1,334.2 | 1,269.6 | 2,656.5 | 2,420.5 |
Cost of goods and services sold | 1,065.8 | 1,000.3 | 2,120.8 | 1,903.7 |
Interest expense | 21.1 | 19.5 | 41.8 | 38.8 |
Net earnings | 95.2 | 112.3 | 185.6 | 199.8 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (20.5) | (7.9) | (11.7) | 6.4 |
Other comprehensive income (loss) | (61) | 13.5 | (69.8) | (0.8) |
Reclassifications, pretax | 0 | 0 | 0 | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Ending balance | (81.5) | 5.6 | (81.5) | 5.6 |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 12.9 | 2.5 | 11.9 | 1.4 |
Other comprehensive income (loss) | (2.9) | 1.5 | (0.5) | 3.5 |
Reclassifications, pretax | (0.4) | (0.2) | (1.6) | (0.7) |
Income tax effect | 0.5 | (0.2) | 0.3 | (0.6) |
Ending balance | 10.1 | 3.6 | 10.1 | 3.6 |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (37.6) | (59.4) | (38.5) | (60.2) |
Other comprehensive income (loss) | (1) | (0.1) | (1) | (0.3) |
Reclassifications, pretax | 0.7 | 1.3 | 1.4 | 2.6 |
Income tax effect | 0.1 | (0.3) | 0.3 | (0.6) |
Ending balance | (37.8) | (58.5) | (37.8) | (58.5) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (45.2) | (64.8) | (38.3) | (52.4) |
Ending balance | (109.2) | (49.3) | (109.2) | (49.3) |
Reclassification out of AOCI | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Net trade sales | 0 | 0 | 0 | 0 |
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Net earnings | 0 | 0 | 0 | 0 |
Reclassification out of AOCI | Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Net trade sales | (1) | (1.6) | (2.8) | (3.4) |
Cost of goods and services sold | (0.3) | 0.2 | (0.6) | 0.4 |
Interest expense | 0.9 | 1.2 | 1.8 | 2.3 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Net earnings | (0.4) | (0.2) | (1.6) | (0.7) |
Reclassification out of AOCI | Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Net trade sales | 0 | 0 | 0 | 0 |
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other income (expense), net | 0.7 | 1.3 | 1.4 | 2.6 |
Net earnings | 0.7 | 1.3 | 1.4 | 2.6 |
Reclassification out of AOCI | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Net trade sales | (1) | (1.6) | (2.8) | (3.4) |
Cost of goods and services sold | (0.3) | 0.2 | (0.6) | 0.4 |
Interest expense | 0.9 | 1.2 | 1.8 | 2.3 |
Other income (expense), net | 0.7 | 1.3 | 1.4 | 2.6 |
Net earnings | $ 0.3 | $ 1.1 | $ (0.2) | $ 1.9 |
FAIR VALUE - Items Measured at
FAIR VALUE - Items Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Total | ||
Cash equivalents: | ||
Derivative assets | $ 4.2 | $ 5.9 |
Total assets | 184.7 | 171.3 |
Liabilities: | ||
Derivative liabilities | 4 | 1.2 |
Total liabilities | 45.8 | 52.1 |
Total | Diversified investments associated with the (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 41.9 | 51 |
Total | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 41.8 | 50.9 |
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 | 138.6 | 114.4 |
Level 1 | ||
Cash equivalents: | ||
Derivative assets | 0 | 0 |
Total assets | 41.9 | 51 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 41.8 | 50.9 |
Level 1 | Diversified investments associated with the (ESUP) | ||
Cash equivalents: | ||
Diversified investments associated with the Executive Stock Unit Program (ESUP) | 41.9 | 51 |
Level 1 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESUP | 41.8 | 50.9 |
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 | 4.2 | 5.9 |
Total assets | 142.8 | 120.3 |
Liabilities: | ||
Derivative liabilities | 4 | 1.2 |
Total liabilities | 4 | 1.2 |
Level 2 | Diversified investments associated with the (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 | 138.6 | 114.4 |
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 (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 ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fixed rate debt (less) greater than carrying value | $ (150) | $ 130 |
Fixed rate debt carrying value | $ 2,083.5 | $ 2,082.3 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Current Assets | ||
Assets | ||
Total derivatives | $ 4.1 | $ 5.9 |
Sundry | ||
Assets | ||
Total derivatives | 0.1 | 0 |
Other Current Liabilities | ||
Liabilities | ||
Total derivative | 3.6 | 1.1 |
Other Long-Term Liabilities | ||
Liabilities | ||
Total derivative | 0.4 | 0.1 |
Designated as Hedging Instrument | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 261.2 | 260.6 |
Designated as Hedging Instrument | Cash flow hedges | Other Current Assets | ||
Assets | ||
Total derivatives | 3.8 | 5.1 |
Designated as Hedging Instrument | Cash flow hedges | Sundry | ||
Assets | ||
Total derivatives | 0.1 | 0 |
Designated as Hedging Instrument | Cash flow hedges | Other Current Liabilities | ||
Liabilities | ||
Total derivative | 3.1 | 0.7 |
Designated as Hedging Instrument | Cash flow hedges | Other Long-Term Liabilities | ||
Liabilities | ||
Total derivative | 0.4 | 0.1 |
Designated as Hedging Instrument | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 54.3 | 54.2 |
Designated as Hedging Instrument | Fair value hedges | Other Current Assets | ||
Assets | ||
Total derivatives | 0 | 0.4 |
Designated as Hedging Instrument | Fair value hedges | Sundry | ||
Assets | ||
Total derivatives | 0 | 0 |
Designated as Hedging Instrument | Fair value hedges | Other Current Liabilities | ||
Liabilities | ||
Total derivative | 0.1 | 0 |
Designated as Hedging Instrument | Fair value hedges | Other Long-Term Liabilities | ||
Liabilities | ||
Total derivative | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 78.2 | 40.1 |
Not Designated as Hedging Instrument | Other Current Assets | ||
Assets | ||
Total derivatives | 0.3 | 0.4 |
Not Designated as Hedging Instrument | Sundry | ||
Assets | ||
Total derivatives | 0 | 0 |
Not Designated as Hedging Instrument | Other Current Liabilities | ||
Liabilities | ||
Total derivative | 0.4 | 0.4 |
Not Designated as Hedging Instrument | Other Long-Term Liabilities | ||
Liabilities | ||
Total derivative | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Pre-Tax Gains (Losses) of Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | $ 1.1 | $ (5.4) | $ (0.5) | $ (6.5) |
Designated as Hedging Instrument | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | (0.4) | (1.4) | (1.6) | (2.3) |
Designated as Hedging Instrument | Fair value hedges | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | 1.5 | (3.5) | 1 | (4) |
Designated as Hedging Instrument | Interest rate cash flow hedges | Cash flow hedges | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | 0.9 | 1.2 | 1.8 | 2.3 |
Designated as Hedging Instrument | Currency cash flow hedges | Cash flow hedges | Net trade sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | (0.5) | (2.7) | (2.3) | (4.9) |
Designated as Hedging Instrument | Currency cash flow hedges | Cash flow hedges | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | (0.7) | 0.1 | (1.1) | 0.3 |
Designated as Hedging Instrument | Currency cash flow hedges | Cash flow hedges | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | (0.1) | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss recorded in income | $ 0 | $ (0.5) | $ 0.1 | $ (0.2) |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Loss Contingencies [Line Items] | ||
Accrual | $ 3 | $ 3 |
Other matters | Pending litigation | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 10.6 |