COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $.01 par value | |
Ticker Symbol | LEG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 133,111,789 | |
Entity Central Index Key | 0000058492 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 344.5 | $ 316.5 |
Trade receivables, net | 642.2 | 609 |
Other receivables, net | 76 | 66 |
Inventories | 892.7 | 907.5 |
Prepaid expenses and other current assets | 59.4 | 59 |
Total current assets | 2,014.8 | 1,958 |
PROPERTY, PLANT AND EQUIPMENT—AT COST | ||
Machinery and equipment | 1,456.6 | 1,434 |
Buildings and other | 808 | 791 |
Land | 43.9 | 43.5 |
Total property, plant and equipment | 2,308.5 | 2,268.5 |
Less accumulated depreciation | 1,521.9 | 1,496.1 |
Net property, plant and equipment | 786.6 | 772.4 |
OTHER ASSETS | ||
Goodwill | 1,473.6 | 1,474.4 |
Other intangibles, less accumulated amortization of $367.6 and $356.4 as of March 31, 2023 and December 31, 2022, respectively | 660.4 | 675.4 |
Operating lease right-of-use assets | 221.1 | 195 |
Sundry | 113.5 | 110.9 |
Total other assets | 2,468.6 | 2,455.7 |
TOTAL ASSETS | 5,270 | 5,186.1 |
CURRENT LIABILITIES | ||
Short-term debt and current maturities of long-term debt | 8.9 | 9.4 |
Current portion of operating lease liabilities | 55.1 | 49.5 |
Accounts payable | 552.2 | 518.4 |
Accrued expenses | 237.8 | 261.7 |
Other current liabilities | 114.6 | 129.1 |
Total current liabilities | 968.6 | 968.1 |
LONG-TERM LIABILITIES | ||
Long-term debt | 2,108.9 | 2,074.2 |
Operating lease liabilities | 175.9 | 153.6 |
Other long-term liabilities | 129.8 | 126.1 |
Deferred income taxes | 219.7 | 222.7 |
Total long-term liabilities | 2,634.3 | 2,576.6 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock | 2 | 2 |
Additional contributed capital | 565.9 | 568.5 |
Retained earnings | 3,039.6 | 3,046 |
Accumulated other comprehensive loss | (71.8) | (93.5) |
Treasury stock | (1,869.2) | (1,882.3) |
Total Leggett & Platt, Inc. equity | 1,666.5 | 1,640.7 |
Noncontrolling interest | 0.6 | 0.7 |
Total equity | 1,667.1 | 1,641.4 |
TOTAL LIABILITIES AND EQUITY | $ 5,270 | $ 5,186.1 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization | $ 367.6 | $ 356.4 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net trade sales | $ 1,213.6 | $ 1,322.3 |
Cost of goods sold | 995 | 1,055 |
Gross profit | 218.6 | 267.3 |
Selling and administrative expenses | 116 | 111.7 |
Amortization of intangibles | 16.9 | 17 |
Net gain from sale of assets and businesses | (0.3) | (0.6) |
Other (income) expense, net | (3.3) | 1.6 |
Earnings before interest and income taxes | 89.3 | 137.6 |
Interest expense | 22.1 | 20.7 |
Interest income | 1.1 | 1.2 |
Earnings before income taxes | 68.3 | 118.1 |
Income taxes | 14.8 | 27.7 |
Net earnings | 53.5 | 90.4 |
(Earnings) attributable to noncontrolling interest, net of tax | 0 | 0 |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 53.5 | $ 90.4 |
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders | ||
Basic (in usd per share) | $ 0.39 | $ 0.66 |
Diluted (in usd per share) | $ 0.39 | $ 0.66 |
Weighted average shares outstanding | ||
Basic (in shares) | 135.9 | 136.6 |
Diluted (in shares) | 136.3 | 136.9 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 53.5 | $ 90.4 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 18.7 | (8.8) |
Cash flow hedges | 2.7 | 1 |
Defined benefit pension plans | 0.2 | 0.9 |
Other comprehensive income (loss) | 21.6 | (6.9) |
Comprehensive income (loss) | 75.1 | 83.5 |
Add: comprehensive loss attributable to noncontrolling interest | 0.1 | 0 |
Comprehensive income (loss) attributable to Leggett & Platt, Inc. | $ 75.2 | $ 83.5 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net earnings | $ 53.5 | $ 90.4 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 27.4 | 28.2 |
Amortization of intangibles and supply agreements | 18 | 17.5 |
(Decrease) increase in provision for losses on accounts and notes receivable | (2.3) | 1.4 |
Writedown of inventories | 4.7 | 3.2 |
Net gain from sales of assets and businesses | (0.3) | (0.7) |
Deferred income tax (benefit) expense | (1.2) | 2 |
Stock-based compensation | 9.7 | 12.9 |
Other, net | 6 | (1.5) |
Increases/(decreases) in, excluding effects from acquisitions and divestitures: | ||
Accounts and other receivables | (38.4) | (57.8) |
Inventories | 13.7 | (58.3) |
Other current assets | (0.3) | (1.2) |
Accounts payable | 30.8 | 11.4 |
Accrued expenses and other current liabilities | (24.6) | (8.5) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 96.7 | 39 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (37.7) | (18.7) |
Proceeds from sales of assets and businesses | 0.5 | 2.4 |
Other, net | 0.8 | 0 |
NET CASH USED FOR INVESTING ACTIVITIES | (36.4) | (16.3) |
FINANCING ACTIVITIES | ||
Payments on long-term debt | (0.8) | (0.1) |
Change in commercial paper and short-term debt | 29.3 | 21 |
Dividends paid | (58.3) | (56) |
Purchases of common stock | (5.2) | (21.6) |
Other, net | (0.6) | (0.4) |
NET CASH USED FOR FINANCING ACTIVITIES | (35.6) | (57.1) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 3.3 | 0 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 28 | (34.4) |
CASH AND CASH EQUIVALENTS—January 1, | 316.5 | 361.7 |
CASH AND CASH EQUIVALENTS—March 31, | $ 344.5 | $ 327.3 |
INTERIM PRESENTATION
INTERIM PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 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 $50.0 and $55.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at March 31, 2023 and December 31, 2022, 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 $105.0 at March 31, 2023 and $80.0 at December 31, 2022. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 | 3 Months Ended |
Mar. 31, 2023 | |
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. Three Months Ended March 31, 2023 2022 Bedding Products Bedding Group $ 528.5 $ 639.4 Specialized Products Automotive Group 214.3 207.5 Aerospace Products Group 37.9 29.0 Hydraulic Cylinders Group 1 68.5 27.6 320.7 264.1 Furniture, Flooring & Textile Products Home Furniture Group 80.3 118.4 Work Furniture Group 70.6 83.7 Flooring & Textile Products Group 213.5 216.7 364.4 418.8 $ 1,213.6 $ 1,322.3 1 In August 2022, we acquired a leading global manufacturer of hydraulic cylinders for heavy construction equipment. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
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 an executive vice president who has accountability to, and maintains regular contact with, our chief executive officer, who is the chief operating decision maker (CODM). The operating results and financial information reported through the segment structure are regularly reviewed and used by the CODM to evaluate segment performance, allocate overall resources, and determine management incentive compensation. The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. We evaluate performance based on Earnings Before Interest and Taxes (EBIT). Intersegment sales are made primarily at prices that approximate market-based selling prices. Centrally incurred costs are allocated to the segments based on estimates of services used by the segment. Certain of our general and administrative costs and miscellaneous A summary of segment results is shown in the following tables. Trade 1 Sales Inter- Total EBIT Depreciation and Amortization Three Months Ended March 31, 2023 Bedding Products $ 528.5 $ 9.6 $ 538.1 $ 33.3 $ 25.6 Specialized Products 320.7 .4 321.1 28.7 10.7 Furniture, Flooring & Textile Products 364.4 3.1 367.5 28.3 5.8 Intersegment eliminations and other 2 (1.0) 3.3 $ 1,213.6 $ 13.1 $ 1,226.7 $ 89.3 $ 45.4 Three Months Ended March 31, 2022 Bedding Products $ 639.4 $ 12.0 $ 651.4 $ 76.2 $ 26.2 Specialized Products 264.1 .9 265.0 20.3 10.8 Furniture, Flooring & Textile Products 418.8 4.3 423.1 42.7 5.9 Intersegment eliminations and other 2 (1.6) 2.8 $ 1,322.3 $ 17.2 $ 1,339.5 $ 137.6 $ 45.7 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. Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include working capital (all current assets and current liabilities) plus net property, plant and equipment. Segment assets for all years are reflected at their estimated average for the periods presented. March 31, December 31, Bedding Products $ 833.6 $ 931.2 Specialized Products 396.2 350.1 Furniture, Flooring & Textile Products 409.0 423.1 Average current liabilities included in segment numbers above 718.0 793.9 Unallocated assets 1 2,898.7 2,840.6 Difference between average assets and period-end balance sheet 14.5 (152.8) Total assets $ 5,270.0 $ 5,186.1 1 Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (EPS) Basic and diluted earnings per share were calculated as follows: Three Months Ended 2023 2022 Net earnings Net earnings $ 53.5 $ 90.4 (Earnings) attributable to noncontrolling interest, net of tax — — Net earnings attributable to Leggett & Platt, Inc. common shareholders $ 53.5 $ 90.4 Weighted average number of shares (in millions) Weighted average number of common shares used in basic EPS 135.9 136.6 Dilutive effect of stock-based compensation .4 .3 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 136.3 136.9 Basic and diluted EPS Basic EPS attributable to Leggett & Platt common shareholders $ .39 $ .66 Diluted EPS attributable to Leggett & Platt common shareholders $ .39 $ .66 Other information Anti-dilutive shares excluded from diluted EPS computation .5 .4 Cash dividends declared per share $ .44 $ .42 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES Accounts and other receivables consisted of the following: March 31, 2023 December 31, 2022 Current Long-term Current Long-term Total trade receivable $ 657.4 $ — $ 626.8 $ — Allowance for doubtful accounts - trade receivables (15.2) — (17.8) — Trade receivables, net $ 642.2 $ — $ 609.0 $ — Other notes receivable — 22.2 — 22.4 Taxes receivable, including income taxes 5.4 — 5.0 — Value-added taxes (VAT) recoverable 1 58.1 — 45.4 — Other receivables 12.5 — 15.6 — Allowance for doubtful accounts - Other notes receivable — (21.0) — (21.2) Other receivables, net $ 76.0 $ 1.2 $ 66.0 $ 1.2 1 We have experienced VAT refund delays from the Mexican government. These balances include $47.7 and $36.5 at March 31, 2023 and December 31, 2022, respectively, of Mexico VAT recoverable. We believe that these are fully collectible. Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2022 Add: Less: Balance at March 31, 2023 Total trade receivables 17.8 (2.1) .5 15.2 Other notes receivable 21.2 (.2) — 21.0 Total allowance for doubtful accounts $ 39.0 $ (2.3) $ .5 $ 36.2 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 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 $ .7 $ .1 $ 1.2 $ .2 Discounts on various stock awards: Deferred Stock Compensation Program .3 — .4 — ESU program .2 — .4 — Discount Stock Plan .2 — .2 — Performance Stock Unit (PSU) awards: 1 2023 PSU awards 1A .4 .4 — — 2022 and prior PSU awards 1B .7 .3 1.0 (.2) Restricted Stock Unit (RSU) awards 5.3 — 6.7 — Other, primarily non-employee directors restricted stock .4 — .5 — Total stock-related compensation expense 8.2 $ .8 10.4 $ — Employee contributions for above stock plans 1.5 2.5 Total stock-based compensation $ 9.7 $ 12.9 Tax benefits on stock-based compensation expense $ 2.0 $ 2.6 Tax benefits on stock-based compensation payments .3 .6 Total tax benefits associated with stock-based compensation $ 2.3 $ 3.2 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 the Human Resources and Compensation (HRC) Committee's 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 2023 PSU Awards In February 2023, the HRC Committee amended the PSU award agreement. Following the amendment, the 2023 awards are based on two performance conditions as detailed below. The base payout percentage will be determined by the level of achievement of these performance conditions, and then adjusted by a payout multiplier based on our Total Shareholder Return (TSR) compared to a peer group. Participants will earn from 0% to 200% of the base award. Grant date fair values are calculated based on the grant date stock price and a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies for the payout multiplier. Expense is adjusted every quarter over the three-year vesting period based on the number of shares expected to vest. The PSU awards contain the following conditions: • A service requirement—Awards general "cliff" vest three years following the grant date. • Two performance conditions over the three-year performance period: ◦ 50% of the awards are based on Return on Invested Capital (ROIC). ROIC is calculated as our average annual net operating profit after tax divided by our average invested capital. ◦ 50% of the awards are based on achieving specified Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) performance targets. • A market condition—The payout multiplier is based upon our relative TSR compared to a group of peer companies during the three-year performance period. 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). The multiplier will increase or decrease the payout by up to 25%, not to exceed the maximum 200% payout, and will also limit the payout to 100% if our TSR is negative. 1B 2022 and Prior PSU Awards TSR Based Previous to 2023, PSU awards were based 50% upon our TSR compared to a peer group. A small number of PSU awards were based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values were 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 contained the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date. • A market condition—Awards are based on our TSR compared to the same peer group as noted above. 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. EBIT CAGR Based Previous to 2023, PSU awards were based 50% upon our, or the applicable profit center's, EBIT CAGR. Grant date fair values were 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 contained the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date. • A performance condition—Awards are based on achieving specified EBIT CAGR targets for our or the applicable profit center's EBIT during the third year of the period compared to EBIT during the fiscal year immediately preceding the 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: Three Months Ended March 31, 2023 2022 2023 awards and 2022 TSR based award Total shares base award .1 .1 Grant date per share fair value $ 29.31 $ 41.13 Risk-free interest rate 4.4 % 1.7 % Vesting period in years 3.0 3.0 Expected volatility 45.7 % 45.2 % Expected dividend yield 5.5 % 4.6 % 2022 EBIT CAGR based award Total shares base award .1 Grant date per share fair value $ 32.88 Vesting period in years 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 2019 December 31, 2021 —% — million $ — First quarter 2022 78 th percentile 2020 December 31, 2022 —% — million $ — First quarter 2023 87 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 2019 December 31, 2021 127.0% < .1 million $ 3.5 First quarter 2022 2020 December 31, 2022 —% — million $ — First quarter 2023 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table recaps the components of inventory for each period presented: March 31, December 31, Finished goods $ 397.0 $ 389.9 Work in process 78.1 71.1 Raw materials and supplies 417.6 446.5 Inventories $ 892.7 $ 907.5 All inventories are stated at the lower of cost or net realizable value. For the majority of our inventories, we use the first-in, first-out method which is representative of our standard costs (includes materials, labor, and production overhead at normal production capacity). Remaining inventories are valued using an average-cost method. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We expect to contribute approximately $5.0 to our defined benefit pension plans in 2023. The following table provides interim information for our defined benefit pension plans Three Months Ended 2023 2022 Components of net pension expense Service cost $ 1.3 $ 1.3 Interest cost 2.2 1.7 Expected return on plan assets (2.7) (3.3) Recognized net actuarial loss .4 .7 Net pension expense $ 1.2 $ .4 The components of net pension expense, other than the service cost component, are included in the line item “Other (income) expense, net” in the Consolidated Condensed Statements of Operations. |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2023 Total Retained Common Stock & Additional Treasury Noncontrolling Accumulated Beginning balance, January 1, 2023 $ 1,641.4 $ 3,046.0 $ 570.5 $ (1,882.3) $ .7 $ (93.5) Net earnings 53.5 53.5 — — — — Dividends declared (See Note 5 ) (58.5) (59.9) 1.4 — — — Treasury stock purchased (5.2) — — (5.2) — — Treasury stock issued 2.0 — (16.3) 18.3 — — Foreign currency translation adjustments 18.7 — — — (.1) 18.8 Cash flow hedges, net of tax 2.7 — — — — 2.7 Defined benefit pension plans, net of tax .2 — — — — .2 Stock-based compensation transactions, net of tax 12.3 — 12.3 — — — Ending balance, March 31, 2023 $ 1,667.1 $ 3,039.6 $ 567.9 $ (1,869.2) $ .6 $ (71.8) Three Months Ended March 31, 2022 Total Retained Common Stock & Additional Treasury Noncontrolling Accumulated Beginning balance, January 1, 2022 $ 1,648.6 $ 2,973.0 $ 559.9 $ (1,846.6) $ .6 $ (38.3) Net earnings 90.4 90.4 — — — — Dividends declared (See Note 5 ) (56.1) (57.4) 1.3 — — — Treasury stock purchased (21.6) — — (21.6) — — Treasury stock issued 5.7 — (14.1) 19.8 — — Foreign currency translation adjustments (8.8) — — — — (8.8) Cash flow hedges, net of tax 1.0 — — — — 1.0 Defined benefit pension plans, net of tax .9 — — — — .9 Stock-based compensation transactions, net of tax 11.3 — 11.3 — — — Ending balance, March 31, 2022 $ 1,671.4 $ 3,006.0 $ 558.4 $ (1,848.4) $ .6 $ (45.2) The following tables set forth the components of and changes in each component of accumulated other comprehensive income (loss) for each of the periods presented: Three Months Ended March 31, Foreign Currency Cash Flow Defined Benefit Accumulated Balance, January 1, 2023 $ (83.5) $ 8.4 $ (18.4) $ (93.5) Other comprehensive income (loss) 18.7 2.6 (.1) 21.2 Reclassifications, pretax — .6 .4 1.0 Income tax effect — (.5) (.1) (.6) Attributable to noncontrolling interest .1 — — .1 Balance, March 31, 2023 $ (64.7) $ 11.1 $ (18.2) $ (71.8) Balance, January 1, 2022 $ (11.7) $ 11.9 $ (38.5) $ (38.3) Other comprehensive income (loss) (8.8) 2.4 — (6.4) Reclassifications, pretax — (1.2) .7 (.5) Income tax effect — (.2) .2 — Balance, March 31, 2022 $ (20.5) $ 12.9 $ (37.6) $ (45.2) |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 152.0 $ — $ 152.0 Derivative assets ( Note 12 ) — 3.5 — 3.5 Diversified investments associated with the ESU program 45.7 — — 45.7 Total assets $ 45.7 $ 155.5 $ — $ 201.2 Liabilities: Derivative liabilities ( Note 12 ) $ — $ 4.2 $ — $ 4.2 Liabilities associated with the ESU program 46.3 — — 46.3 Total liabilities $ 46.3 $ 4.2 $ — $ 50.5 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 129.0 $ — $ 129.0 Derivative assets ( Note 12 ) — 2.9 — 2.9 Diversified investments associated with the ESU program 42.8 — — 42.8 Total assets $ 42.8 $ 131.9 $ — $ 174.7 Liabilities: Derivative liabilities ( Note 12 ) $ — $ 5.9 $ — $ 5.9 Liabilities associated with the ESU program 44.0 — — 44.0 Total liabilities $ 44.0 $ 5.9 $ — $ 49.9 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 $165.0 less than carrying value of $1,784.9 at March 31, 2023 and was approximately $210.0 less than carrying value of $1,784.4 at December 31, 2022. Items measured at fair value on a non-recurring basis |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item. Expiring at various dates through: Total USD As of March 31, 2023 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Sep 2024 $ 268.6 $ 2.8 $ .4 $ 2.1 $ .1 Total fair value hedges Jul 2023 65.4 .1 — 1.8 — Not designated as hedging instruments Mar 2024 89.5 .2 — .2 — Total derivatives $ 3.1 $ .4 $ 4.1 $ .1 Expiring at various dates through: Total USD As of December 31, 2022 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Jun 2024 $ 263.4 $ 1.9 $ .5 $ 4.3 $ .4 Total fair value hedges Apr 2023 65.5 .3 — 1.0 — Not designated as hedging instruments Dec 2023 86.0 .2 — .2 — Total derivatives $ 2.4 $ .5 $ 5.5 $ .4 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 10 ) as well as derivative settlements recorded directly to income or expense. Derivatives Income Statement Caption Amount of (Gain) Loss 2023 2022 Designated as hedging instruments Interest rate cash flow hedges Interest expense $ (.1) $ .9 Currency cash flow hedges Net trade sales .7 (1.8) Currency cash flow hedges Cost of goods sold (.7) (.4) Currency cash flow hedges Other (income) expense, net — .1 Total cash flow hedges (.1) (1.2) Fair value hedges Other (income) expense, net 2.1 (.5) Not designated as hedging instruments Other (income) expense, net — .1 Total derivative instruments $ 2.0 $ (1.6) |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
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-month periods ending March 31, 2023 and March 31, 2022. 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 March 31, 2023, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of the accruals noted above are estimated to be $13.0 . I f our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change or future litigation arises, we could realize losses in excess of the recorded accruals (and in excess of the $13.0 referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows. |
INTERIM PRESENTATION (Policies)
INTERIM PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 $50.0 and $55.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at March 31, 2023 and December 31, 2022, 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 $105.0 at March 31, 2023 and $80.0 at December 31, 2022. 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 Programs | 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 $50.0 and $55.0 of trade receivables that were sold and removed from our Consolidated Condensed Balance Sheets at March 31, 2023 and December 31, 2022, 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 $105.0 at March 31, 2023 and $80.0 at December 31, 2022. 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 | Revenue by Product FamilyWe 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. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. Three Months Ended March 31, 2023 2022 Bedding Products Bedding Group $ 528.5 $ 639.4 Specialized Products Automotive Group 214.3 207.5 Aerospace Products Group 37.9 29.0 Hydraulic Cylinders Group 1 68.5 27.6 320.7 264.1 Furniture, Flooring & Textile Products Home Furniture Group 80.3 118.4 Work Furniture Group 70.6 83.7 Flooring & Textile Products Group 213.5 216.7 364.4 418.8 $ 1,213.6 $ 1,322.3 1 In August 2022, we acquired a leading global manufacturer of hydraulic cylinders for heavy construction equipment. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Bedding Products $ 528.5 $ 9.6 $ 538.1 $ 33.3 $ 25.6 Specialized Products 320.7 .4 321.1 28.7 10.7 Furniture, Flooring & Textile Products 364.4 3.1 367.5 28.3 5.8 Intersegment eliminations and other 2 (1.0) 3.3 $ 1,213.6 $ 13.1 $ 1,226.7 $ 89.3 $ 45.4 Three Months Ended March 31, 2022 Bedding Products $ 639.4 $ 12.0 $ 651.4 $ 76.2 $ 26.2 Specialized Products 264.1 .9 265.0 20.3 10.8 Furniture, Flooring & Textile Products 418.8 4.3 423.1 42.7 5.9 Intersegment eliminations and other 2 (1.6) 2.8 $ 1,322.3 $ 17.2 $ 1,339.5 $ 137.6 $ 45.7 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. |
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. March 31, December 31, Bedding Products $ 833.6 $ 931.2 Specialized Products 396.2 350.1 Furniture, Flooring & Textile Products 409.0 423.1 Average current liabilities included in segment numbers above 718.0 793.9 Unallocated assets 1 2,898.7 2,840.6 Difference between average assets and period-end balance sheet 14.5 (152.8) Total assets $ 5,270.0 $ 5,186.1 1 Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended 2023 2022 Net earnings Net earnings $ 53.5 $ 90.4 (Earnings) attributable to noncontrolling interest, net of tax — — Net earnings attributable to Leggett & Platt, Inc. common shareholders $ 53.5 $ 90.4 Weighted average number of shares (in millions) Weighted average number of common shares used in basic EPS 135.9 136.6 Dilutive effect of stock-based compensation .4 .3 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 136.3 136.9 Basic and diluted EPS Basic EPS attributable to Leggett & Platt common shareholders $ .39 $ .66 Diluted EPS attributable to Leggett & Platt common shareholders $ .39 $ .66 Other information Anti-dilutive shares excluded from diluted EPS computation .5 .4 Cash dividends declared per share $ .44 $ .42 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Summary of Components of Accounts and Other Receivables | Accounts and other receivables consisted of the following: March 31, 2023 December 31, 2022 Current Long-term Current Long-term Total trade receivable $ 657.4 $ — $ 626.8 $ — Allowance for doubtful accounts - trade receivables (15.2) — (17.8) — Trade receivables, net $ 642.2 $ — $ 609.0 $ — Other notes receivable — 22.2 — 22.4 Taxes receivable, including income taxes 5.4 — 5.0 — Value-added taxes (VAT) recoverable 1 58.1 — 45.4 — Other receivables 12.5 — 15.6 — Allowance for doubtful accounts - Other notes receivable — (21.0) — (21.2) Other receivables, net $ 76.0 $ 1.2 $ 66.0 $ 1.2 1 We have experienced VAT refund delays from the Mexican government. These balances include $47.7 and $36.5 at March 31, 2023 and December 31, 2022, respectively, of Mexico VAT recoverable. We believe that these are fully collectible. |
Summary of Allowance for Doubtful Accounts | Activity related to the allowance for doubtful accounts is reflected below: Balance at December 31, 2022 Add: Less: Balance at March 31, 2023 Total trade receivables 17.8 (2.1) .5 15.2 Other notes receivable 21.2 (.2) — 21.0 Total allowance for doubtful accounts $ 39.0 $ (2.3) $ .5 $ 36.2 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 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 $ .7 $ .1 $ 1.2 $ .2 Discounts on various stock awards: Deferred Stock Compensation Program .3 — .4 — ESU program .2 — .4 — Discount Stock Plan .2 — .2 — Performance Stock Unit (PSU) awards: 1 2023 PSU awards 1A .4 .4 — — 2022 and prior PSU awards 1B .7 .3 1.0 (.2) Restricted Stock Unit (RSU) awards 5.3 — 6.7 — Other, primarily non-employee directors restricted stock .4 — .5 — Total stock-related compensation expense 8.2 $ .8 10.4 $ — Employee contributions for above stock plans 1.5 2.5 Total stock-based compensation $ 9.7 $ 12.9 Tax benefits on stock-based compensation expense $ 2.0 $ 2.6 Tax benefits on stock-based compensation payments .3 .6 Total tax benefits associated with stock-based compensation $ 2.3 $ 3.2 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 the Human Resources and Compensation (HRC) Committee's 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 2023 PSU Awards In February 2023, the HRC Committee amended the PSU award agreement. Following the amendment, the 2023 awards are based on two performance conditions as detailed below. The base payout percentage will be determined by the level of achievement of these performance conditions, and then adjusted by a payout multiplier based on our Total Shareholder Return (TSR) compared to a peer group. Participants will earn from 0% to 200% of the base award. Grant date fair values are calculated based on the grant date stock price and a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies for the payout multiplier. Expense is adjusted every quarter over the three-year vesting period based on the number of shares expected to vest. The PSU awards contain the following conditions: • A service requirement—Awards general "cliff" vest three years following the grant date. • Two performance conditions over the three-year performance period: ◦ 50% of the awards are based on Return on Invested Capital (ROIC). ROIC is calculated as our average annual net operating profit after tax divided by our average invested capital. ◦ 50% of the awards are based on achieving specified Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) performance targets. • A market condition—The payout multiplier is based upon our relative TSR compared to a group of peer companies during the three-year performance period. 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). The multiplier will increase or decrease the payout by up to 25%, not to exceed the maximum 200% payout, and will also limit the payout to 100% if our TSR is negative. 1B 2022 and Prior PSU Awards TSR Based Previous to 2023, PSU awards were based 50% upon our TSR compared to a peer group. A small number of PSU awards were based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values were 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 contained the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date. • A market condition—Awards are based on our TSR compared to the same peer group as noted above. 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. EBIT CAGR Based Previous to 2023, PSU awards were based 50% upon our, or the applicable profit center's, EBIT CAGR. Grant date fair values were 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 contained the following conditions: • A service requirement—Awards generally “cliff” vest three years following the grant date. • A performance condition—Awards are based on achieving specified EBIT CAGR targets for our or the applicable profit center's EBIT during the third year of the period compared to EBIT during the fiscal year immediately preceding the period. Participants will earn from 0% to 200% of the base award. |
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: Three Months Ended March 31, 2023 2022 2023 awards and 2022 TSR based award Total shares base award .1 .1 Grant date per share fair value $ 29.31 $ 41.13 Risk-free interest rate 4.4 % 1.7 % Vesting period in years 3.0 3.0 Expected volatility 45.7 % 45.2 % Expected dividend yield 5.5 % 4.6 % 2022 EBIT CAGR based award Total shares base award .1 Grant date per share fair value $ 32.88 Vesting period in years 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 2019 December 31, 2021 —% — million $ — First quarter 2022 78 th percentile 2020 December 31, 2022 —% — million $ — First quarter 2023 87 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 2019 December 31, 2021 127.0% < .1 million $ 3.5 First quarter 2022 2020 December 31, 2022 —% — million $ — First quarter 2023 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of LIFO Expense | The following table recaps the components of inventory for each period presented: March 31, December 31, Finished goods $ 397.0 $ 389.9 Work in process 78.1 71.1 Raw materials and supplies 417.6 446.5 Inventories $ 892.7 $ 907.5 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Pension Expense | The following table provides interim information for our defined benefit pension plans Three Months Ended 2023 2022 Components of net pension expense Service cost $ 1.3 $ 1.3 Interest cost 2.2 1.7 Expected return on plan assets (2.7) (3.3) Recognized net actuarial loss .4 .7 Net pension expense $ 1.2 $ .4 |
STATEMENT OF CHANGES IN EQUIT_2
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss) | Three Months Ended March 31, 2023 Total Retained Common Stock & Additional Treasury Noncontrolling Accumulated Beginning balance, January 1, 2023 $ 1,641.4 $ 3,046.0 $ 570.5 $ (1,882.3) $ .7 $ (93.5) Net earnings 53.5 53.5 — — — — Dividends declared (See Note 5 ) (58.5) (59.9) 1.4 — — — Treasury stock purchased (5.2) — — (5.2) — — Treasury stock issued 2.0 — (16.3) 18.3 — — Foreign currency translation adjustments 18.7 — — — (.1) 18.8 Cash flow hedges, net of tax 2.7 — — — — 2.7 Defined benefit pension plans, net of tax .2 — — — — .2 Stock-based compensation transactions, net of tax 12.3 — 12.3 — — — Ending balance, March 31, 2023 $ 1,667.1 $ 3,039.6 $ 567.9 $ (1,869.2) $ .6 $ (71.8) Three Months Ended March 31, 2022 Total Retained Common Stock & Additional Treasury Noncontrolling Accumulated Beginning balance, January 1, 2022 $ 1,648.6 $ 2,973.0 $ 559.9 $ (1,846.6) $ .6 $ (38.3) Net earnings 90.4 90.4 — — — — Dividends declared (See Note 5 ) (56.1) (57.4) 1.3 — — — Treasury stock purchased (21.6) — — (21.6) — — Treasury stock issued 5.7 — (14.1) 19.8 — — Foreign currency translation adjustments (8.8) — — — — (8.8) Cash flow hedges, net of tax 1.0 — — — — 1.0 Defined benefit pension plans, net of tax .9 — — — — .9 Stock-based compensation transactions, net of tax 11.3 — 11.3 — — — Ending balance, March 31, 2022 $ 1,671.4 $ 3,006.0 $ 558.4 $ (1,848.4) $ .6 $ (45.2) |
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 March 31, Foreign Currency Cash Flow Defined Benefit Accumulated Balance, January 1, 2023 $ (83.5) $ 8.4 $ (18.4) $ (93.5) Other comprehensive income (loss) 18.7 2.6 (.1) 21.2 Reclassifications, pretax — .6 .4 1.0 Income tax effect — (.5) (.1) (.6) Attributable to noncontrolling interest .1 — — .1 Balance, March 31, 2023 $ (64.7) $ 11.1 $ (18.2) $ (71.8) Balance, January 1, 2022 $ (11.7) $ 11.9 $ (38.5) $ (38.3) Other comprehensive income (loss) (8.8) 2.4 — (6.4) Reclassifications, pretax — (1.2) .7 (.5) Income tax effect — (.2) .2 — Balance, March 31, 2022 $ (20.5) $ 12.9 $ (37.6) $ (45.2) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 152.0 $ — $ 152.0 Derivative assets ( Note 12 ) — 3.5 — 3.5 Diversified investments associated with the ESU program 45.7 — — 45.7 Total assets $ 45.7 $ 155.5 $ — $ 201.2 Liabilities: Derivative liabilities ( Note 12 ) $ — $ 4.2 $ — $ 4.2 Liabilities associated with the ESU program 46.3 — — 46.3 Total liabilities $ 46.3 $ 4.2 $ — $ 50.5 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Bank time deposits with original maturities of three months or less $ — $ 129.0 $ — $ 129.0 Derivative assets ( Note 12 ) — 2.9 — 2.9 Diversified investments associated with the ESU program 42.8 — — 42.8 Total assets $ 42.8 $ 131.9 $ — $ 174.7 Liabilities: Derivative liabilities ( Note 12 ) $ — $ 5.9 $ — $ 5.9 Liabilities associated with the ESU program 44.0 — — 44.0 Total liabilities $ 44.0 $ 5.9 $ — $ 49.9 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Sep 2024 $ 268.6 $ 2.8 $ .4 $ 2.1 $ .1 Total fair value hedges Jul 2023 65.4 .1 — 1.8 — Not designated as hedging instruments Mar 2024 89.5 .2 — .2 — Total derivatives $ 3.1 $ .4 $ 4.1 $ .1 Expiring at various dates through: Total USD As of December 31, 2022 Derivatives Assets Liabilities Other Current Sundry Other Current Other Long-Term Liabilities Designated as hedging instruments Total cash flow hedges-currency hedges Jun 2024 $ 263.4 $ 1.9 $ .5 $ 4.3 $ .4 Total fair value hedges Apr 2023 65.5 .3 — 1.0 — Not designated as hedging instruments Dec 2023 86.0 .2 — .2 — Total derivatives $ 2.4 $ .5 $ 5.5 $ .4 |
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 10 ) as well as derivative settlements recorded directly to income or expense. Derivatives Income Statement Caption Amount of (Gain) Loss 2023 2022 Designated as hedging instruments Interest rate cash flow hedges Interest expense $ (.1) $ .9 Currency cash flow hedges Net trade sales .7 (1.8) Currency cash flow hedges Cost of goods sold (.7) (.4) Currency cash flow hedges Other (income) expense, net — .1 Total cash flow hedges (.1) (1.2) Fair value hedges Other (income) expense, net 2.1 (.5) Not designated as hedging instruments Other (income) expense, net — .1 Total derivative instruments $ 2.0 $ (1.6) |
INTERIM PRESENTATION (Details)
INTERIM PRESENTATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
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 | $ 50 | $ 55 |
Accounts payable third party programs | $ 105 | $ 80 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net trade sales | $ 1,213.6 | $ 1,322.3 |
Bedding Products | Bedding Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 528.5 | 639.4 |
Specialized Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 320.7 | 264.1 |
Specialized Products | Automotive Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 214.3 | 207.5 |
Specialized Products | Aerospace Products Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 37.9 | 29 |
Specialized Products | Hydraulic Cylinders Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 68.5 | 27.6 |
Furniture, Flooring & Textile Products | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 364.4 | 418.8 |
Furniture, Flooring & Textile Products | Home Furniture Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 80.3 | 118.4 |
Furniture, Flooring & Textile Products | Work Furniture Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | 70.6 | 83.7 |
Furniture, Flooring & Textile Products | Flooring & Textile Products Group | ||
Disaggregation of Revenue [Line Items] | ||
Net trade sales | $ 213.5 | $ 216.7 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Segment Results from Continuing Operations (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Net trade sales | $ 1,213.6 | $ 1,322.3 |
Total Sales | 1,226.7 | 1,339.5 |
EBIT | 89.3 | 137.6 |
Depreciation and Amortization | 45.4 | 45.7 |
Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Total Sales | 538.1 | 651.4 |
EBIT | 33.3 | 76.2 |
Depreciation and Amortization | 25.6 | 26.2 |
Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 320.7 | 264.1 |
Total Sales | 321.1 | 265 |
EBIT | 28.7 | 20.3 |
Depreciation and Amortization | 10.7 | 10.8 |
Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 364.4 | 418.8 |
Total Sales | 367.5 | 423.1 |
EBIT | 28.3 | 42.7 |
Depreciation and Amortization | 5.8 | 5.9 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 1,213.6 | 1,322.3 |
Operating segments | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 528.5 | 639.4 |
Operating segments | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 320.7 | 264.1 |
Operating segments | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 364.4 | 418.8 |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 13.1 | 17.2 |
EBIT | (1) | (1.6) |
Depreciation and Amortization | 3.3 | 2.8 |
Intersegment eliminations | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 9.6 | 12 |
Intersegment eliminations | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | 0.4 | 0.9 |
Intersegment eliminations | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Net trade sales | $ 3.1 | $ 4.3 |
SEGMENT INFORMATION - Average A
SEGMENT INFORMATION - Average Assets for Segments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,270 | $ 5,186.1 |
Operating segments | Bedding Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 833.6 | 931.2 |
Operating segments | Specialized Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 396.2 | 350.1 |
Operating segments | Furniture, Flooring & Textile Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 409 | 423.1 |
Unallocated assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | 718 | 793.9 |
Difference between average assets and period-end balance sheet | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14.5 | (152.8) |
Eliminations And Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,898.7 | $ 2,840.6 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net earnings | ||
Net earnings | $ 53.5 | $ 90.4 |
(Earnings) attributable to noncontrolling interest, net of tax | 0 | 0 |
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ 53.5 | $ 90.4 |
Weighted average number of shares (in millions) | ||
Weighted average number of common shares used in basic EPS (in shares) | 135.9 | 136.6 |
Dilutive effect of stock-based compensation (in shares) | 0.4 | 0.3 |
Weighted average number of common shares and dilutive potential common shares used in diluted EPS (in shares) | 136.3 | 136.9 |
Basic and diluted EPS | ||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders (in usd per share) | $ 0.39 | $ 0.66 |
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders (in usd per share) | $ 0.39 | $ 0.66 |
Other information | ||
Anti-dilutive shares excluded from diluted EPS computation (in shares) | 0.5 | 0.4 |
Cash dividends declared per share (in usd per share) | $ 0.44 | $ 0.42 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES - Components of Accounts and Other Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current | ||
Total trade receivable | $ 657.4 | $ 626.8 |
Allowance for doubtful accounts - trade receivables | (15.2) | (17.8) |
Trade receivables, net | 642.2 | 609 |
Other notes receivable | 0 | 0 |
Taxes receivable, including income taxes | 5.4 | 5 |
Value-added taxes (VAT) recoverable | 58.1 | 45.4 |
Other receivables | 12.5 | 15.6 |
Allowance for doubtful accounts - Other notes receivable | 0 | 0 |
Other receivables, net | 76 | 66 |
Long-term | ||
Total trade receivable | 0 | 0 |
Allowance for doubtful accounts - trade receivables | 0 | 0 |
Trade receivables, net | 0 | 0 |
Other notes receivable | 22.2 | 22.4 |
Taxes receivable, including income taxes | 0 | 0 |
Value-added taxes (VAT) recoverable | 0 | 0 |
Other receivables | 0 | 0 |
Allowance for doubtful accounts - Other notes receivable | (21) | (21.2) |
Other receivables, net | 1.2 | 1.2 |
MEXICO | ||
Current | ||
Value-added taxes (VAT) recoverable | $ 47.7 | $ 36.5 |
ACCOUNTS AND OTHER RECEIVABLE_3
ACCOUNTS AND OTHER RECEIVABLES - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 39 | |
Add: Charges | (2.3) | $ 1.4 |
Less: Net Charge-offs/ (Recoveries) and Other | 0.5 | |
Balance at end of period | 36.2 | |
Total trade receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 17.8 | |
Add: Charges | (2.1) | |
Less: Net Charge-offs/ (Recoveries) and Other | 0.5 | |
Balance at end of period | 15.2 | |
Other notes receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 21.2 | |
Add: Charges | (0.2) | |
Less: Net Charge-offs/ (Recoveries) and Other | 0 | |
Balance at end of period | $ 21 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Components of Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 9.7 | $ 12.9 |
Tax benefits on stock-based compensation expense | 2.3 | 3.2 |
To be settled with stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 8.2 | 10.4 |
Employee contributions for above stock plans | 1.5 | 2.5 |
Total stock-based compensation | 9.7 | 12.9 |
Tax benefits on stock-based compensation expense | 2 | 2.6 |
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 | 0.3 | 0.6 |
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 | 0.7 | 1.2 |
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 | 0.3 | 0.4 |
To be settled with stock | ESU program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.2 | 0.4 |
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 | 0.2 |
To be settled with stock | 2023 PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.4 | 0 |
To be settled with stock | 2022 and prior PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.7 | 1 |
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 | 5.3 | 6.7 |
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 | 0.4 | 0.5 |
To be settled in cash | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.8 | 0 |
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 | 0.1 | 0.2 |
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 |
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 |
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 |
To be settled in cash | 2023 PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.4 | 0 |
To be settled in cash | 2022 and prior PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-related compensation expense | 0.3 | (0.2) |
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 |
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 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - company | 1 Months Ended | 3 Months Ended |
Feb. 28, 2023 | Mar. 31, 2023 | |
PSUs | ||
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% | |
2023 PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period in years | 3 years | |
Award performance period | 3 years | |
Number of companies forming peer group | 300 | |
Payout of participants | 25% | |
2023 PSU awards | Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting | 50% | |
2023 PSU awards | Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting | 50% | |
2023 PSU awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Base award percentage of total shareholder return | 0% | |
Payout of participants | 100% | |
2023 PSU awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Base award percentage of total shareholder return | 200% | |
Prior PSU awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period in years | 3 years | |
Award performance period | 3 years | |
PSU awards based on TSR compared to peer group | 50% | |
PSU awards based on TSR for business unit employees | 100% | |
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 in years | 3 years | |
Award based on EBIT CAGR (as a percent) | 50% | |
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 | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in shares) | 0.1 | |
Grant date per share fair value (in usd per share) | $ 29.31 | |
Risk-free interest rate | 4.40% | |
Vesting period in years | 3 years | |
Expected volatility | 45.70% | |
Expected dividend yield | 5.50% | |
2023 awards and 2022 TSR based award | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in shares) | 0.1 | |
Grant date per share fair value (in usd per share) | $ 41.13 | |
Risk-free interest rate | 1.70% | |
Vesting period in years | 3 years | |
Expected volatility | 45.20% | |
Expected dividend yield | 4.60% | |
2022 EBIT CAGR based award | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in shares) | 0.1 | |
Grant date per share fair value (in usd per share) | $ 32.88 | |
Vesting period in 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, 2023 | Mar. 31, 2022 | |
Award Year 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout as a Percent of the Base Award | 0% | |
Number of shares distributed (less than) (in shares) | 0 | |
Cash Portion | $ 0 | |
TSR performance relative to the peer group (1% best) | 78% | |
Award Year 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout as a Percent of the Base Award | 0% | |
Number of shares distributed (less than) (in shares) | 0 | |
Cash Portion | $ 0 | |
TSR performance relative to the peer group (1% best) | 87% | |
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 | |
Award Year 2020, PSU - EBIT CAGR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout as a Percent of the Base Award | 0% | |
Number of shares distributed (less than) (in shares) | 0 | |
Cash Portion | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 397 | $ 389.9 |
Work in process | 78.1 | 71.1 |
Raw materials and supplies | 417.6 | 446.5 |
Inventories | $ 892.7 | $ 907.5 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Expected employer contribution | $ 5 | |
Components of net pension expense | ||
Service cost | 1.3 | $ 1.3 |
Interest cost | 2.2 | 1.7 |
Expected return on plan assets | (2.7) | (3.3) |
Recognized net actuarial loss | 0.4 | 0.7 |
Net pension expense | $ 1.2 | $ 0.4 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 1,641.4 | $ 1,648.6 |
Net earnings | 53.5 | 90.4 |
Dividends declared | (58.5) | (56.1) |
Treasury stock purchased | (5.2) | (21.6) |
Treasury stock issued | 2 | 5.7 |
Foreign currency translation adjustments | 18.7 | (8.8) |
Cash flow hedges, net of tax | 2.7 | 1 |
Defined benefit pension plans, net of tax | 0.2 | 0.9 |
Stock-based compensation transactions, net of tax | 12.3 | 11.3 |
Ending balance | 1,667.1 | 1,671.4 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 3,046 | 2,973 |
Net earnings | 53.5 | 90.4 |
Dividends declared | (59.9) | (57.4) |
Ending balance | 3,039.6 | 3,006 |
Common Stock & Additional Contributed Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 570.5 | 559.9 |
Dividends declared | 1.4 | 1.3 |
Treasury stock issued | (16.3) | (14.1) |
Stock-based compensation transactions, net of tax | 12.3 | 11.3 |
Ending balance | 567.9 | 558.4 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,882.3) | (1,846.6) |
Treasury stock purchased | (5.2) | (21.6) |
Treasury stock issued | 18.3 | 19.8 |
Ending balance | (1,869.2) | (1,848.4) |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 0.7 | 0.6 |
Foreign currency translation adjustments | (0.1) | |
Ending balance | 0.6 | 0.6 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (93.5) | (38.3) |
Foreign currency translation adjustments | 18.8 | (8.8) |
Cash flow hedges, net of tax | 2.7 | 1 |
Defined benefit pension plans, net of tax | 0.2 | 0.9 |
Ending balance | $ (71.8) | $ (45.2) |
STATEMENT OF CHANGES IN EQUIT_4
STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 1,641.4 | $ 1,648.6 |
Other comprehensive income (loss) | 21.2 | (6.4) |
Reclassifications, pretax | 1 | (0.5) |
Income tax effect | (0.6) | 0 |
Attributable to noncontrolling interest | 0.1 | |
Ending balance | 1,667.1 | 1,671.4 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (83.5) | (11.7) |
Other comprehensive income (loss) | 18.7 | (8.8) |
Reclassifications, pretax | 0 | 0 |
Income tax effect | 0 | 0 |
Attributable to noncontrolling interest | 0.1 | |
Ending balance | (64.7) | (20.5) |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 8.4 | 11.9 |
Other comprehensive income (loss) | 2.6 | 2.4 |
Reclassifications, pretax | 0.6 | (1.2) |
Income tax effect | (0.5) | (0.2) |
Attributable to noncontrolling interest | 0 | |
Ending balance | 11.1 | 12.9 |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (18.4) | (38.5) |
Other comprehensive income (loss) | (0.1) | 0 |
Reclassifications, pretax | 0.4 | 0.7 |
Income tax effect | (0.1) | 0.2 |
Attributable to noncontrolling interest | 0 | |
Ending balance | (18.2) | (37.6) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (93.5) | (38.3) |
Ending balance | $ (71.8) | $ (45.2) |
FAIR VALUE - Items Measured at
FAIR VALUE - Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash equivalents: | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets, Current, Sundry | Assets, Current, Sundry |
Liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Noncurrent, Other current liabilities | Liabilities, Noncurrent, Other current liabilities |
Fair Value, Measurements, Recurring | Total | ||
Cash equivalents: | ||
Derivative assets (Note 12) | $ 3.5 | $ 2.9 |
Total assets | 201.2 | 174.7 |
Liabilities: | ||
Derivative liabilities (Note 12) | 4.2 | 5.9 |
Total liabilities | 50.5 | 49.9 |
Fair Value, Measurements, Recurring | Total | Diversified investments associated with the ESU program | ||
Cash equivalents: | ||
Diversified investments associated with the ESU program | 45.7 | 42.8 |
Fair Value, Measurements, Recurring | Total | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESU program | 46.3 | 44 |
Fair Value, Measurements, Recurring | Total | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 152 | 129 |
Fair Value, Measurements, Recurring | Level 1 | ||
Cash equivalents: | ||
Derivative assets (Note 12) | 0 | 0 |
Total assets | 45.7 | 42.8 |
Liabilities: | ||
Derivative liabilities (Note 12) | 0 | 0 |
Total liabilities | 46.3 | 44 |
Fair Value, Measurements, Recurring | Level 1 | Diversified investments associated with the ESU program | ||
Cash equivalents: | ||
Diversified investments associated with the ESU program | 45.7 | 42.8 |
Fair Value, Measurements, Recurring | Level 1 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESU program | 46.3 | 44 |
Fair Value, Measurements, Recurring | 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 |
Fair Value, Measurements, Recurring | Level 2 | ||
Cash equivalents: | ||
Derivative assets (Note 12) | 3.5 | 2.9 |
Total assets | 155.5 | 131.9 |
Liabilities: | ||
Derivative liabilities (Note 12) | 4.2 | 5.9 |
Total liabilities | 4.2 | 5.9 |
Fair Value, Measurements, Recurring | Level 2 | Diversified investments associated with the ESU program | ||
Cash equivalents: | ||
Diversified investments associated with the ESU program | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESU program | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Bank time deposits with original maturities of three months or less | ||
Cash equivalents: | ||
Bank time deposits with original maturities of three months or less | 152 | 129 |
Fair Value, Measurements, Recurring | Level 3 | ||
Cash equivalents: | ||
Derivative assets (Note 12) | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities (Note 12) | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Diversified investments associated with the ESU program | ||
Cash equivalents: | ||
Diversified investments associated with the ESU program | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Liabilities associated with the ESUP | ||
Liabilities: | ||
Liabilities associated with the ESU program | 0 | 0 |
Fair Value, Measurements, Recurring | 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) - Level 1 - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 165 | $ 210 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 1,784.9 | $ 1,784.4 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Other Current Assets | $ 3.1 | $ 2.4 |
Sundry | 0.4 | 0.5 |
Liabilities | ||
Other Current Liabilities | 4.1 | 5.5 |
Other Long-Term Liabilities | 0.1 | 0.4 |
Designated as Hedging Instrument | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 268.6 | 263.4 |
Assets | ||
Other Current Assets | 2.8 | 1.9 |
Sundry | 0.4 | 0.5 |
Liabilities | ||
Other Current Liabilities | 2.1 | 4.3 |
Other Long-Term Liabilities | 0.1 | 0.4 |
Designated as Hedging Instrument | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 65.4 | 65.5 |
Assets | ||
Other Current Assets | 0.1 | 0.3 |
Sundry | 0 | 0 |
Liabilities | ||
Other Current Liabilities | 1.8 | 1 |
Other Long-Term Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total USD Equivalent Notional Amount | 89.5 | 86 |
Assets | ||
Other Current Assets | 0.2 | 0.2 |
Sundry | 0 | 0 |
Liabilities | ||
Other Current Liabilities | 0.2 | 0.2 |
Other Long-Term Liabilities | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Pre-Tax Gains (Losses) of Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (gain) loss recorded in income | $ 2 | $ (1.6) |
Designated as Hedging Instrument | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (gain) loss recorded in income | (0.1) | (1.2) |
Designated as Hedging Instrument | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (gain) loss recorded in income | 2.1 | (0.5) |
Designated as Hedging Instrument | Interest rate cash flow hedges | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (gain) loss recorded in income | (0.1) | 0.9 |
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 | 0.7 | (1.8) |
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) | (0.4) |
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 | 0.1 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (gain) loss recorded in income | $ 0 | $ 0.1 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Reasonably possible losses that may be incurred | $ 3 | $ 3 |
Reasonably possible losses in excess of accruals | $ 13 |