falsedesktopLEG2020-12-31000005849221000005{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large Accelerated Filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "\t\tPage Number\nForward-Looking Statements\t\t1\nPART I\t\t\nItem 1.\tBusiness\t3\nItem 1A.\tRisk Factors\t18\nItem 1B.\tUnresolved Staff Comments\t26\nItem 2.\tProperties\t26\nItem 3.\tLegal Proceedings\t28\nItem 4.\tMine Safety Disclosures\t28\nSupp. Item.\tInformation About Our Executive Officers\t29\nPART II\t\t\nItem 5.\tMarket for Registrant's Common Equity Related Stockholder Matters and Issuer Purchases of Equity Securities\t31\nItem 6.\tSelected Financial Data\t32\nItem 7.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t33\nItem 7A.\tQuantitative and Qualitative Disclosures About Market Risk\t65\nItem 8.\tFinancial Statements and Supplementary Data\t66\nItem 9.\tChanges in and Disagreements With Accountants on Accounting and Financial Disclosure\t66\nItem 9A.\tControls and Procedures\t66\nItem 9B.\tOther Information\t67\nPART III\t\t\nItem 10.\tDirectors Executive Officers and Corporate Governance\t68\nItem 11.\tExecutive Compensation\t71\nItem 12.\tSecurity Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters\t71\nItem 13.\tCertain Relationships and Related Transactions and Director Independence\t71\nItem 14.\tPrincipal Accounting Fees and Services\t71\nPART IV\t\t\nItem 15.\tExhibits and Financial Statement Schedules\t72\n\tExhibit Index\t135\nItem 16.\tForm 10-K Summary\t141\nSignatures\t\t142\n", "q10k_tbl_2": "Product Families\t2020\t\t2019\t\t2018\t\nBedding Group 1\t48\t%\t48\t%\t42\t%\nFlooring & Textile Products Group\t19\t\t16\t\t17\t\nAutomotive Group\t17\t\t17\t\t19\t\nHome Furniture Group\t7\t\t8\t\t9\t\nWork Furniture Group\t5\t\t6\t\t7\t\nAerospace Products Group\t2\t\t3\t\t4\t\nHydraulic Cylinders Group\t2\t\t2\t\t2\t\n", "q10k_tbl_3": "0\tComfortCore® Mira-Coil® VertiCoil® Quantum® Nanocoil® Softech® Lura-Flex® Superlastic® and Active Support Technology® (mattress innersprings)\n0\tEnergex® and Coolflow® (specialty foam products)\n0\tSemi-Flex® (box spring components and foundations)\n0\tSpuhl®and Fides® (mattress innerspring manufacturing machines)\n0\tWall Hugger® (recliner chair mechanisms)\n0\tNo-Sag® (wire forms used in seating)\n0\tLPSense® (capacitive sensing)\n0\tHanes® (fabric materials)\n0\tSchukra® (automotive seating products)\n0\tGribetz®and Porter® (quilting and sewing machines)\n", "q10k_tbl_4": "\tCompany- Wide\tSubtotals by Segment\t\t\nManufacturing Locations\tBedding Products\tSpecialized Products\tFurniture Flooring & Textile Products\nUnited States\t84\t36\t6\t42\nChina\t14\t2\t10\t2\nEurope\t14\t5\t8\t1\nCanada\t8\t0\t3\t5\nMexico\t7\t4\t2\t1\nOther\t5\t2\t3\t0\nTotal\t132\t49\t32\t51\n", "q10k_tbl_5": "\tCompany- Wide\tSubtotals by Segment\t\t\nManufacturing Locations\tBedding Products\tSpecialized Products\tFurniture Flooring & Textile Products\nOwned\t70\t34\t13\t23\nLeased\t62\t15\t19\t28\nTotal\t132\t49\t32\t51\n", "q10k_tbl_6": "Period\tTotal Number of Shares Purchased 1\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs 2\tMaximum Number of Shares that May Yet Be Purchased Under the Plans or Programs 2\nOctober 2020\t5882\t44.94\t0\t10000000\nNovember 2020\t0\t0\t0\t10000000\nDecember 2020\t0\t0\t0\t10000000\nTotal\t5882\t44.94\t0\t\n", "q10k_tbl_7": "(Unaudited)\t2020 1\t2019 2\t2018 3\t2017 4\t2016 5\n(Dollar amounts in millions except per share data)\t\t\t\t\t\nSummary of Operations\t\t\t\t\t\nNet Trade Sales from Continuing Operations\t4280\t4753\t4270\t3944\t3750\nEarnings from Continuing Operations\t248\t334\t306\t294\t367\nEarnings (loss) from Discontinued Operations net of tax\t0\t0\t0\t(1)\t19\nNet Earnings attributable to Leggett & Platt Inc. common shareholders\t248\t334\t306\t293\t386\nEarnings per share from Continuing Operations\t\t\t\t\t\nBasic\t1.82\t2.48\t2.28\t2.16\t2.66\nDiluted\t1.82\t2.47\t2.26\t2.14\t2.62\nEarnings (Loss) per share from Discontinued Operations\t\t\t\t\t\nBasic\t0\t0\t0\t(.01)\t.14\nDiluted\t0\t0\t0\t(.01)\t.14\nNet Earnings per share\t\t\t\t\t\nBasic\t1.82\t2.48\t2.28\t2.15\t2.80\nDiluted\t1.82\t2.47\t2.26\t2.13\t2.76\nCash Dividends declared per share\t1.60\t1.58\t1.50\t1.42\t1.34\nSummary of Financial Position\t\t\t\t\t\nTotal Assets\t4754\t4816\t3382\t3551\t2984\nLong-term Debt including finance leases\t1849\t2067\t1168\t1098\t956\n", "q10k_tbl_8": "(Dollar amounts in millions except per share data)\tAmount\t% 1\nNet trade sales:\t\t\nYear ended December 31 2019\t4753\t\nDivestitures\t(14)\t-%\n2019 sales excluding divestitures\t4739\t\nApproximate volume losses\t(483)\t(10)%\nApproximate raw material-related inflation and currency impact\t(32)\t(1)\nOrganic sales\t(515)\t(11)\nAcquisition sales growth\t56\t1\nYear ended December 31 2020\t4280\t(10)%\nEarnings:\t\t\n(Dollar amounts net of tax)\t\t\nYear ended December 31 2019\t334\t\nLower restructuring-related charges ($13 in 2019; $7 in 2020)\t6\t\nGoodwill impairment\t(25)\t\nNote impairment\t6\t\nStock write-off from a prior year divestiture\t(3)\t\nOther items including COVID-related economic declines and a change in LIFO impact partially offset by fixed cost reductions lower interest expense and lower taxes\t(70)\t\nYear ended December 31 2020\t248\t\n2019 Earnings Per Diluted Share\t2.47\t\n2020 Earnings Per Diluted Share\t1.82\t\n", "q10k_tbl_9": "\tYear Ended December 31\t\n\t2020\t2019\nStatutory federal income tax rate\t21.0%\t21.0%\nIncreases (decreases) in rate resulting from:\t\t\nState taxes net of federal benefit\t.8\t1.4\nTax effect of foreign operations\t(2.2)\t(1.6)\nGlobal intangible low-taxed income\t(.4)\t2.2\nCurrent and deferred foreign withholding taxes\t2.8\t1.2\nStock-based compensation\t(.6)\t(1.1)\nChange in valuation allowance\t.8\t.4\nChange in uncertain tax positions net\t.6\t(.3)\nGoodwill impairment\t1.7\t0\nOther permanent differences net\t(1.4)\t(.3)\nOther net\t(.3)\t(.5)\nEffective tax rate\t22.8%\t22.4%\n", "q10k_tbl_10": "(Dollar amounts in millions)\t2020\t\t2019\t\tChange in Sales\t\t\t% Change Organic\t\n$\t\t%\t\tSales 1\nTrade Sales\t\t\t\t\t\t\t\t\t\nBedding Products\t2039.3\t\t2254.3\t\t(215.0)\t\t(9.5)%\t(10.0)%\t\nSpecialized Products\t891.2\t\t1066.8\t\t(175.6)\t\t(16.5)\t(16.5)\t\nFurniture Flooring & Textile Products\t1349.7\t\t1431.4\t\t(81.7)\t\t(5.7)\t(8.1)\t\nTotal trade sales\t4280.2\t\t4752.5\t\t(472.3)\t\t(9.9)%\t(10.9)%\t\n\t2020\t\t2019\t\tChange in EBIT\t\t\tEBIT Margins\t\n$\t\t%\t\t2020\t\t2019\nEBIT\t\t\t\t\t\t\t\t\t\nBedding Products\t185.8\t\t235.8\t\t(50.0)\t\t(21.2)%\t9.1%\t10.5%\nSpecialized Products\t91.9\t\t170.5\t\t(78.6)\t\t(46.1)\t10.3\t16.0\nFurniture Flooring & Textile Products\t126.2\t\t107.4\t\t18.8\t\t17.5\t9.4\t7.5\nIntersegment eliminations & other\t(3.4)\t\t(.3)\t\t(3.1)\t\t\t\t\nTotal EBIT\t400.5\t\t513.4\t\t(112.9)\t\t(22.0)%\t9.4%\t10.8%\n\t2020\t\t2019\t\t\t\t\t\t\nDepreciation and Amortization\t\t\t\t\t\t\t\t\t\nBedding Products\t106.7\t\t107.3\t\t\t\t\t\t\nSpecialized Products\t44.3\t\t41.8\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t25.5\t\t25.7\t\t\t\t\t\t\nUnallocated 2\t12.9\t\t17.1\t\t\t\t\t\t\nTotal Depreciation and Amortization\t189.4\t\t191.9\t\t\t\t\t\t\n", "q10k_tbl_11": "(Dollar amounts in millions except per share data)\tAmount\t% 1\nNet trade sales:\t\t\nYear ended December 31 2018\t4270\t\nApproximate volume losses\t(112)\t(3)%\nApproximate raw material-related inflation and currency impact\t(22)\t0\nOrganic sales\t(134)\t(3)\nAcquisition sales growth\t617\t14\nYear ended December 31 2019\t4753\t11%\nEarnings:\t\t\n(Dollar amounts net of tax)\t\t\nYear ended December 31 2018\t306\t\nLower restructuring-related charges ($14 in 2018; $13 in 2019)\t1\t\nLower ECS transaction costs ($6 in 2018; $1 in 2019)\t5\t\nNon-recurrence of note impairment\t12\t\nOther items including contribution from ECS lower raw material costs (including LIFO benefit) and improved earnings primarily in Furniture Flooring & Textile Products partially offset by higher interest expense and higher taxes\t10\t\nYear ended December 31 2019\t334\t\n2018 Earnings Per Diluted Share\t2.26\t\n2019 Earnings Per Diluted Share\t2.47\t\n", "q10k_tbl_12": "\tYear Ended December 31\t\n\t2019\t2018\nStatutory federal income tax rate\t21.0%\t21.0%\nIncreases (decreases) in rate resulting from:\t\t\nState taxes net of federal benefit\t1.4\t.9\nTax effect of foreign operations\t(1.6)\t(.7)\nGlobal intangible low-taxed income\t2.2\t.7\nCurrent and deferred foreign withholding taxes\t1.2\t3.8\nStock-based compensation\t(1.1)\t(.8)\nChange in valuation allowance\t.4\t(2.0)\nChange in uncertain tax positions net\t(.3)\t(.3)\nOther permanent differences net\t(.3)\t(1.4)\nOther net\t(.5)\t(.8)\nEffective tax rate\t22.4%\t20.4%\n", "q10k_tbl_13": "(Dollar amounts in millions)\t2019\t\t2018\t\tChange in Sales\t\t\t% Change Organic\t\n$\t\t%\t\tSales 1\nTrade Sales\t\t\t\t\t\t\t\t\t\nBedding Products\t2254.3\t\t1795.3\t\t459.0\t\t25.6%\t(6.0)%\t\nSpecialized Products\t1066.8\t\t1056.3\t\t10.5\t\t1.0\t0\t\nFurniture Flooring & Textile Products\t1431.4\t\t1417.9\t\t13.5\t\t1.0\t(2.0)\t\nTotal trade sales\t4752.5\t\t4269.5\t\t483.0\t\t11.3%\t(3.0)%\t\n\t2019\t\t2018\t\tChange in EBIT\t\t\tEBIT Margins\t\n$\t\t%\t\t2019\t\t2018\nEBIT\t\t\t\t\t\t\t\t\t\nBedding Products\t235.8\t\t149.8\t\t86.0\t\t57.4%\t10.3%\t8.1%\nSpecialized Products\t170.5\t\t189.0\t\t(18.5)\t\t(9.8)\t15.9\t17.8\nFurniture Flooring & Textile Products\t107.4\t\t98.6\t\t8.8\t\t8.9\t7.4\t6.9\nIntersegment eliminations & other\t(.3)\t\t(.5)\t\t.2\t\t\t\t\nTotal EBIT\t513.4\t\t436.9\t\t76.5\t\t17.5%\t10.8%\t10.2%\n\t2019\t\t2018\t\t\t\t\t\t\nDepreciation and Amortization\t\t\t\t\t\t\t\t\t\nBedding Products\t107.3\t\t47.3\t\t\t\t\t\t\nSpecialized Products\t41.8\t\t39.0\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t25.7\t\t27.0\t\t\t\t\t\t\nUnallocated 2\t17.1\t\t22.8\t\t\t\t\t\t\nTotal Depreciation and Amortization\t191.9\t\t136.1\t\t\t\t\t\t\n", "q10k_tbl_14": "(Dollar amounts in millions)\t2020\t2019\nCurrent assets\t1612.1\t1538.1\nCurrent liabilities\t1006.0\t928.1\nWorking capital\t606.1\t610.0\nCash and cash equivalents\t348.9\t247.6\nCurrent debt maturities and current portion of operating lease liabilities\t93.3\t90.4\nAdjusted working capital\t350.5\t452.8\nAnnualized sales 1\t4728.0\t4579.6\nWorking capital as a percent of annualized sales\t12.8%\t13.3%\nAdjusted working capital as a percent of annualized sales\t7.4%\t9.9%\n", "q10k_tbl_15": "\tAmount (in millions)\t\t\t\tDays\t\t\n\t2020\t2019\t2018\t\t2020\t2019\t2018\nTrade Receivables\t535\t564\t545\tDSO 1\t47\t43\t46\nInventories\t646\t637\t634\tDIO 2\t69\t63\t65\nAccounts Payable\t552\t463\t465\tDPO 3\t55\t46\t48\n", "q10k_tbl_16": "(Dollar amounts in millions)\t2020\t2019\t2018\nTotal debt excluding revolving credit/commercial paper\t1900.2\t2056.1\t1099.0\nLess: Current maturities of long-term debt\t50.9\t51.1\t1.2\nScheduled maturities of long-term debt\t1849.3\t2005.0\t1097.8\nAverage interest rates 1\t3.7%\t3.6%\t3.6%\nAverage maturities in years 1\t5.3\t6.0\t6.7\nRevolving credit/commercial paper 2\t0\t61.5\t70.0\nWeighted average interest rate on year-end balance\t-%\t2.0%\t2.6%\nAverage interest rate during the year\t2.0%\t2.6%\t2.4%\nTotal long-term debt\t1849.3\t2066.5\t1167.8\nDeferred income taxes and other liabilities\t508.4\t509.3\t240.9\nEquity\t1390.3\t1312.5\t1157.6\nTotal capitalization\t3748.0\t3888.3\t2566.3\nUnused committed credit: 2\t\t\t\nLong-term\t1200.0\t1138.5\t730.0\nShort-term\t0\t0\t0\nTotal unused committed credit\t1200.0\t1138.5\t730.0\nCash and cash equivalents\t348.9\t247.6\t268.1\n", "q10k_tbl_17": "(Dollar amounts in millions)\t2020\t2019\t2018\nTotal program authorized\t1200.0\t1200.0\t800.0\nCommercial paper outstanding (classified as long-term debt)\t0\t61.5\t70.0\nLetters of credit issued under the credit facility\t0\t0\t0\nTotal program usage\t0\t61.5\t70.0\nTotal program available\t1200.0\t1138.5\t730.0\n", "q10k_tbl_18": "\t\tPayments Due by Period 5\t\t\t\nContractual Obligations\tTotal\tLess Than 1 Year\t1-3 Years\t3-5 Years\tMore Than 5 Years\n(Dollar amounts in millions)\t\t\t\t\t\nLong-term debt ¹\t1896\t50\t399\t453\t994\nFinance leases\t4\t1\t2\t1\t0\nOperating leases\t180\t47\t72\t38\t23\nPurchase obligations ²\t450\t445\t4\t1\t0\nInterest payments ³\t390\t70\t123\t90\t107\nDeferred income taxes\t194\t0\t0\t0\t194\nOther obligations (including pensions and net reserves for tax contingencies) 4\t196\t4\t31\t32\t129\nTotal contractual cash obligations\t3310\t617\t631\t615\t1447\n", "q10k_tbl_19": "Description\tJudgments and Uncertainties\tEffect if Actual Results Differ From Assumptions\nGoodwill\t\t\nGoodwill is assessed for impairment annually as of June 30 and as triggering events occur.\tGoodwill is evaluated annually for impairment as of June 30 using a quantitative analysis at the reporting unit level which is one level below our operating segments. Judgment is required in the quantitative analysis. We estimate fair value using a combination of: (a) A discounted cash flow model that contains uncertainties related to the forecast of future results as many outside economic and competitive factors can influence future performance. Revenue growth cost of sales and appropriate discount rates are the most critical estimates in determining enterprise values using the cash flow model. (b) The market approach using price to earnings ratios for comparable publicly traded companies that operate in the same or similar industry and with characteristics similar to the reporting unit. Judgment is required to determine the appropriate price to earnings ratio.\tThe June 2020 review resulted in a non-cash goodwill impairment charge of $25 million with respect to our Hydraulic Cylinders reporting unit which is part of the Specialized Products segment. This impairment charge reflects the complete write-off of the goodwill associated with the Hydraulic Cylinders reporting unit. Three other reporting units had fair values in excess of carrying value of less than 100% as discussed in Note C on page 90 of the Notes to Consolidated Financial Statements. At December 31 2020 we had $1.4 billion of goodwill. We had no goodwill impairments in 2019 or 2018. Information regarding material assumptions used to determine if a goodwill impairment exists can be found in Note A on page 82 and Note C on page 90 of the Notes to Consolidated Financial Statements. We conduct impairment testing based on our current business strategy in light of present industry and economic conditions as well as future expectations. If we are not able to achieve projected performance levels future impairments could be possible.\n", "q10k_tbl_20": "Description\tJudgments and Uncertainties\tEffect if Actual Results Differ From Assumptions\nOther Long-Lived Assets\t\t\nOther long-lived assets are tested for recoverability at year end and whenever events or circumstances indicate the carrying value may not be recoverable. For other long-lived assets we estimate fair value at the lowest level where cash flows can be measured (usually at a branch level).\tImpairments of other long-lived assets usually occur when major restructuring activities take place or we decide to discontinue selected products. Our impairment assessments have uncertainties because they require estimates of future cash flows to determine if undiscounted cash flows are sufficient to recover carrying values of these assets. For assets where future cash flows are not expected to recover carrying value fair value is estimated which requires an estimate of market value based upon asset appraisals for like assets.\tThese impairments are unpredictable. Impairments did not exceed $8 million per year in any of the last three years. At December 31 2020 net property plant and equipment was $785 million net intangible assets other than goodwill was $702 million and operating right-of-use assets was $162 million.\nInventory Reserves\t\t\nWe reduce the carrying value of inventories to reflect an estimate of net realizable value for slow-moving (i.e. not selling very quickly) and obsolete inventory. Generally a reserve is required when we have more than a 12-month supply of the product. The calculation also uses an estimate of the ultimate recoverability of items identified as slow-moving based upon historical experience. If we have had no sales of a given product for 12 months those items are generally deemed to be obsolete with no value and are written down completely. Finally costs for approximately 30%-40% of our inventories (consisting primarily of our domestic steel-related inventories) are determined using the last-in first-out (LIFO) method which produces a cost that is lower than net realizable value (see Note A on page 82 of the Notes to Consolidated Financial Statements.)\tOur inventory reserve contains uncertainties because the calculation requires management to make assumptions about the value of products that are obsolete or slow-moving. Changes in customer behavior and requirements can cause inventory to become obsolete or slow-moving. Restructuring activity and decisions to narrow product offerings also impact the estimated net realizable value of inventories.\tAt December 31 2020 the reserve for obsolete and slow-moving inventory was $31 million (approximately 5% of inventories). This is consistent with the reserves at December 31 2019 and 2018 representing approximately 4% of inventories. Additions to inventory reserves in 2020 were $12 million which was slightly higher than our $10 million three-year average. Our reserve balances as a percentage of period-end inventory have remained consistent and we do not expect significant changes to our historical obsolescence levels.\n", "q10k_tbl_21": "Description\tJudgments and Uncertainties\tEffect if Actual Results Differ From Assumptions\nCredit Losses\t\t\nFor accounts and notes receivable we estimate a bad debt reserve for the amount that will ultimately be uncollectible. When we become aware of a specific customer's potential inability to pay we record a bad debt reserve for the amount we believe may not be collectible. We also monitor general macroeconomic conditions and other items that could impact the expected collectibility of all customers or pools of customers with similar risk. As discussed in Note H on page 99 of the Notes to Consolidated Financial Statements we adopted ASU 2016-13 \"Financial Instruments-Credit Losses\" (Topic 326) in 2020 which amended the impairment model to require a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments including trade receivables.\tOur bad debt reserve contains uncertainties because it requires management to estimate the amount uncollectible based upon an evaluation of several factors such as the length of time that receivables are past due the financial health of the customer industry and macroeconomic considerations and historical loss experience. Our customers are diverse and many are small-to-medium sized companies with some being highly leveraged. Bankruptcy can occur with some of these customers relatively quickly and with little warning. In cases where a customer's payment performance or financial condition begins to deteriorate we tighten our credit limits and terms and make appropriate reserves when deemed necessary. Certain of our customers have from time to time experienced bankruptcy insolvency and/or an inability to pay their debts to us as they come due. If our customers suffer significant financial difficulty they may be unable to pay their debts to us timely or at all they may reject their contractual obligations to us under bankruptcy laws or otherwise or we may have to negotiate significant discounts and/or extend financing terms with these customers.\tA significant change in the financial status of a large customer could impact our estimates. However we believe we have established adequate reserves on our customer accounts. Our bad debt expense has fluctuated over the last three years: $17 million in 2020 $3 million in 2019 and $17 million in 2018. The expense for 2020 and 2018 was impacted by one account that is now fully reserved at $25 million including $23 million of a note receivable and $2 million for a trade account receivable ($9 million in 2020 and $16 million in 2018) as discussed in Note H on page 99 of the Notes to Consolidated Financial Statements. 2020's expense was also impacted by pandemic-related economic declines. Although we have not experienced significant issues with customer payment performance during this time the effects of the pandemic have adversely impacted the operations of many of our customers which have and could further impact their ability to pay their debts to us. As a result we increased the reserves on trade accounts receivable to reflect this increased risk. Excluding the note receivable discussed above the average annual amount of bad debt expense associated with trade accounts receivable was less than $5 million (significantly less than 1% of annual net trade sales) over the last three years. At December 31 2020 our allowances for doubtful trade accounts receivable were $19 million (less than 4% of our trade receivables of $555 million).\n", "q10k_tbl_22": "Description\tJudgments and Uncertainties\tEffect if Actual Results Differ From Assumptions\nWorkers' Compensation\t\t\nWe are substantially self-insured for costs related to workers' compensation and this requires us to estimate the liability associated with this obligation.\tOur estimates of self-insured reserves contain uncertainties regarding the potential amounts we might have to pay. We consider a number of factors including historical claim experience demographic factors and potential recoveries from third party insurance carriers.\tOver the past five years we have incurred on average $9 million annually for costs associated with workers' compensation. Average year-to-year variation over the past five years has been approximately $1 million. At December 31 2020 we had accrued $32 million to cover future self-insurance liabilities.\nPension Accounting\t\t\nFor our pension plans we must estimate the cost of benefits to be provided (well into the future) and the current value of those benefit obligations.\tThe pension liability calculation contains uncertainties because it requires management's judgment. Assumptions used to measure our pension liabilities and pension expense annually include: - the discount rate used to calculate the present value of future benefits - an estimate of expected return on pension assets based upon the mix of investments held (bonds and equities) - certain employee-related factors such as turnover retirement age and mortality. Mortality assumptions represent our best estimate of the duration of future benefit payments at the measurement date. These estimates are based on each plan's demographics and other relevant facts and circumstances - the rate of salary increases where benefits are based on earnings.\tEach 25 basis point decrease in the discount rate increases pension expense by $.6 million and increases the plans' benefit obligations by $9.8 million. Each 25 basis point reduction in the expected return on assets would increase pension expense by $.4 million but have no effect on the plans' funded status.\nContingencies\t\t\nWe evaluate various legal environmental and other potential claims against us to determine if an accrual or disclosure of the contingency is appropriate. If it is probable that an ultimate loss will be incurred and reasonably estimable we accrue a liability for the estimate of the loss.\tOur disclosure and accrual of loss contingencies (i.e. losses that may or may not occur) contain uncertainties because they are based on our assessment of the probability that the expenses will actually occur and our reasonable estimate of the likely cost. Our estimates and judgments are subjective and can involve matters in litigation the results of which are generally unpredictable.\tLegal contingencies are related to numerous lawsuits and claims described in Note T on page 130 of the Notes to Consolidated Financial Statements. During the three-year period ended December 31 2020 we recorded expense of $3 million.\n", "q10k_tbl_23": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nLitigation contingency accrual - Beginning of period\t.7\t1.9\t.4\nAdjustment to accruals - expense\t.1\t.6\t1.8\nCurrency\t(.1)\t0\t0\nCash payments\t(.2)\t(1.8)\t(.3)\nLitigation contingency accrual - End of period\t.5\t.7\t1.9\n", "q10k_tbl_24": "Long-term debt as of December 31\tScheduled Maturity Date\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n2021\t\t2022\t\t2023\t\t2024\t\t2025\t\tThereafter\t\t2020\t\t2019\nPrincipal fixed rate debt\t0\t\t300.0\t\t0\t\t300.0\t\t0\t\t1000.0\t\t1600.0\t\t1600.0\nAverage stated interest rate\t0\t\t3.40%\t\t0\t\t3.80%\t\t0\t\t3.95%\t\t3.82%\t\t3.82%\nPrincipal variable rate debt 1\t50.0\t\t50.0\t\t50.0\t\t155.0\t\t0\t\t3.8\t\t308.8\t\t466.3\nUnamortized discounts and deferred loan costs\t\t\t\t\t\t\t\t\t\t\t\t\t(12.7)\t\t(14.9)\nCommercial Paper 2\t\t\t\t\t\t\t\t\t\t\t\t\t0\t\t61.5\nMiscellaneous debt primarily finance leases\t\t\t\t\t\t\t\t\t\t\t\t\t4.1\t\t4.7\nTotal debt\t\t\t\t\t\t\t\t\t\t\t\t\t1900.2\t\t2117.6\nLess: current maturities\t\t\t\t\t\t\t\t\t\t\t\t\t50.9\t\t51.1\nTotal long-term debt\t\t\t\t\t\t\t\t\t\t\t\t\t1849.3\t\t2066.5\n", "q10k_tbl_25": "Functional Currency (amounts in millions)\t2020\t2019\nEuropean Currencies\t382.1\t348.6\nChinese Renminbi\t260.9\t273.8\nCanadian Dollar\t210.5\t254.4\nMexican Peso\t38.6\t36.3\nOther\t59.9\t66.1\nTotal\t952.0\t979.2\n", "q10k_tbl_26": "\tPage No.\n- Management's Annual Report on Internal Control Over Financial Reporting\t73\n- Report of Independent Registered Public Accounting Firm\t74\n- Consolidated Statements of Operations for each of the years in the three-year period ended December 31 2020\t77\n- Consolidated Statements of Comprehensive Income (Loss) for each of the years in the three-year period ended December 31 2020\t78\n- Consolidated Balance Sheets at December 31 2020 and 2019\t79\n- Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31 2020\t80\n- Consolidated Statements of Changes in Equity for each of the years in the three-year period ended December 31 2020\t81\n- Notes to Consolidated Financial Statements\t82\n- Quarterly Summary of Earnings (Unaudited)\t133\n- Schedule II-Valuation and Qualifying Accounts and Reserves for each of the years in the three-year period ended December 31 2020\t134\n", "q10k_tbl_27": "\tYear Ended December 31\t\t\n(Amounts in millions except per share data)\t2020\t2019\t2018\nNet trade sales\t4280.2\t4752.5\t4269.5\nCost of goods sold\t3385.7\t3701.9\t3380.8\nGross profit\t894.5\t1050.6\t888.7\nSelling and administrative expenses\t424.4\t469.7\t425.1\nAmortization of intangibles\t65.2\t63.3\t20.5\nImpairments\t29.4\t7.8\t5.4\nOther (income) expense net\t(25.0)\t(3.6)\t.8\nEarnings before interest and income taxes\t400.5\t513.4\t436.9\nInterest expense\t82.7\t90.7\t60.9\nInterest income\t3.1\t7.4\t8.4\nEarnings before income taxes\t320.9\t430.1\t384.4\nIncome taxes\t73.2\t96.2\t78.3\nNet earnings\t247.7\t333.9\t306.1\n(Earnings) attributable to noncontrolling interest net of tax\t(.1)\t(.1)\t(.2)\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t247.6\t333.8\t305.9\nNet earnings per share attributable to Leggett & Platt Inc. common shareholders\t\t\t\nBasic\t1.82\t2.48\t2.28\nDiluted\t1.82\t2.47\t2.26\n", "q10k_tbl_28": "\tYear Ended December 31\t\t\n(Amounts in millions)\t2020\t2019\t2018\nNet earnings\t247.7\t333.9\t306.1\nOther comprehensive income (loss) net of tax:\t\t\t\nForeign currency translation adjustments\t27.8\t5.0\t(67.0)\nCash flow hedges\t5.5\t7.7\t(.3)\nDefined benefit pension plans\t(9.0)\t(11.9)\t(.8)\nOther comprehensive income (loss)\t24.3\t.8\t(68.1)\nComprehensive income\t272.0\t334.7\t238.0\nLess: comprehensive (income) attributable to noncontrolling interest\t0\t(.1)\t(.2)\nComprehensive income attributable to Leggett & Platt Inc.\t272.0\t334.6\t237.8\n", "q10k_tbl_29": "\tDecember 31\t\n(Amounts in millions except per share data)\t2020\t2019\nASSETS\t\t\nCurrent Assets\t\t\nCash and cash equivalents\t348.9\t247.6\nTrade receivables net\t535.2\t564.4\nOther receivables net\t28.4\t27.5\nTotal receivables net\t563.6\t591.9\nTotal inventories net\t645.5\t636.7\nPrepaid expenses and other current assets\t54.1\t61.9\nTotal current assets\t1612.1\t1538.1\nProperty Plant and Equipment-at cost\t\t\nMachinery and equipment\t1396.2\t1388.8\nBuildings and other\t740.9\t719.0\nLand\t43.6\t43.5\nTotal property plant and equipment\t2180.7\t2151.3\nLess accumulated depreciation\t1395.9\t1320.5\nNet property plant and equipment\t784.8\t830.8\nOther Assets\t\t\nGoodwill\t1388.8\t1406.3\nOther intangibles net\t701.6\t764.0\nOperating lease right-of-use assets\t161.6\t158.8\nSundry\t105.1\t118.4\nTotal other assets\t2357.1\t2447.5\nTOTAL ASSETS\t4754.0\t4816.4\nLIABILITIES AND EQUITY\t\t\nCurrent Liabilities\t\t\nCurrent maturities of long-term debt\t50.9\t51.1\nCurrent portion of operating lease liabilities\t42.4\t39.3\nAccounts payable\t552.2\t463.4\nAccrued expenses\t275.2\t281.0\nOther current liabilities\t85.3\t93.3\nTotal current liabilities\t1006.0\t928.1\nLong-term Liabilities\t\t\nLong-term debt\t1849.3\t2066.5\nOperating lease liabilities\t122.1\t121.6\nOther long-term liabilities\t192.1\t173.5\nDeferred income taxes\t194.2\t214.2\nTotal long-term liabilities\t2357.7\t2575.8\nCommitments and Contingencies\t\t\nEquity\t\t\nCommon stock: Preferred stock-authorized 100.0 shares; none issued; Common stock-authorized 600.0 shares of $.01 par value; 198.8 shares issued\t2.0\t2.0\nAdditional contributed capital\t543.2\t536.1\nRetained earnings\t2762.4\t2734.5\nAccumulated other comprehensive (loss)\t(52.4)\t(76.8)\nLess treasury stock-at cost (66.2 and 67.0 shares at December 31 2020 and 2019 respectively)\t(1865.4)\t(1883.8)\nTotal Leggett & Platt Inc. equity\t1389.8\t1312.0\nNoncontrolling interest\t.5\t.5\nTotal equity\t1390.3\t1312.5\nTOTAL LIABILITIES AND EQUITY\t4754.0\t4816.4\nThe accompanying notes are an integral part of these financial statements.\t\t\n", "q10k_tbl_30": "\tYear Ended December 31\t\t\n(Amounts in millions)\t2020\t2019\t2018\nOperating Activities\t\t\t\nNet earnings\t247.7\t333.9\t306.1\nAdjustments to reconcile net earnings to net cash provided by operating activities:\t\t\t\nDepreciation\t119.4\t117.5\t104.3\nAmortization of intangibles and supply agreements\t70.0\t74.4\t31.8\nLong-lived asset impairment\t4.0\t7.8\t5.4\nGoodwill impairment\t25.4\t0\t0\nProvision for losses on accounts and notes receivable\t17.1\t2.8\t16.7\nWritedown of inventories\t10.9\t9.0\t10.3\nNet gain from sales of assets and businesses\t(2.5)\t(5.0)\t(2.1)\nDeferred income tax (benefit) expense\t(22.5)\t7.6\t(3.2)\nStock-based compensation\t29.2\t33.0\t35.5\nPension expense (income) net of contributions\t1.9\t4.3\t(19.2)\nOther net\t9.5\t2.2\t.7\nIncreases/decreases in excluding effects from acquisitions and divestitures:\t\t\t\nAccounts and other receivables\t24.3\t53.0\t(25.8)\nInventories\t(19.7)\t53.3\t(54.3)\nOther current assets\t4.8\t(2.8)\t(1.9)\nAccounts payable\t83.0\t(39.4)\t36.2\nAccrued expenses and other current liabilities\t.1\t16.4\t(.2)\nNet Cash Provided by Operating Activities\t602.6\t668.0\t440.3\nInvesting Activities\t\t\t\nAdditions to property plant and equipment\t(66.2)\t(143.1)\t(159.6)\nPurchases of companies net of cash acquired\t0\t(1265.1)\t(109.2)\nProceeds from sales of assets and businesses\t14.8\t5.5\t4.9\nOther net\t2.4\t(15.5)\t(13.9)\nNet Cash Used for Investing Activities\t(49.0)\t(1418.2)\t(277.8)\nFinancing Activities\t\t\t\nAdditions to long-term debt\t0\t993.3\t0\nPayments on long-term debt\t(157.5)\t(37.6)\t(155.4)\nChange in commercial paper and short-term debt\t(70.3)\t(8.7)\t69.6\nDividends paid\t(211.5)\t(204.6)\t(193.7)\nIssuances of common stock\t1.5\t9.3\t4.8\nPurchases of common stock\t(10.6)\t(16.4)\t(112.4)\nAdditional consideration paid on prior year acquisitions\t(8.4)\t(1.1)\t(9.3)\nOther net\t(4.9)\t(3.1)\t(.5)\nNet Cash (Used for) Provided by Financing Activities\t(461.7)\t731.1\t(396.9)\nEffect of Exchange Rate Changes on Cash\t9.4\t(1.4)\t(23.6)\nIncrease (Decrease) in Cash and Cash Equivalents\t101.3\t(20.5)\t(258.0)\nCash and Cash Equivalents-Beginning of Year\t247.6\t268.1\t526.1\nCash and Cash Equivalents-End of Year\t348.9\t247.6\t268.1\nSupplemental Information\t\t\t\nInterest paid (net of amounts capitalized)\t74.8\t77.3\t61.8\nIncome taxes paid\t108.6\t84.2\t92.8\nProperty plant and equipment acquired through finance leases\t1.8\t2.1\t1.9\nCapital expenditures in accounts payable\t7.1\t6.8\t6.7\nPrepaid income taxes and taxes receivable (recovered) applied against the deemed repatriation tax liability\t1.2\t(.6)\t28.4\n", "q10k_tbl_31": "(Amounts in millions except per share data)\tCommon Stock\t\t\t\tAdditional Contributed Capital\t\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)\tTreasury Stock\t\tNoncontrolling Interest\tTotal Equity\nShares\t\tAmount\t\tShares\t\tAmount\t\nBalance December 31 2017\t198.8\t\t2.0\t\t514.7\t\t2511.3\t(9.5)\t(66.9)\t(1828.3)\t.6\t1190.8\nEffect of accounting change on prior years (See Note B)\t0\t\t0\t\t0\t\t(2.3)\t0\t0\t0\t0\t(2.3)\nAdjusted beginning balance January 1 2018\t198.8\t\t2.0\t\t514.7\t\t2509.0\t(9.5)\t(66.9)\t(1828.3)\t.6\t1188.5\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t0\t\t0\t\t0\t\t305.9\t0\t0\t0\t.2\t306.1\nDividends declared\t0\t\t0\t\t5.3\t\t(201.1)\t0\t0\t0\t0\t(195.8)\nDividends paid to noncontrolling interest\t0\t\t0\t\t0\t\t0\t0\t0\t0\t(.2)\t(.2)\nTreasury stock purchased\t0\t\t0\t\t0\t\t0\t0\t(2.6)\t(113.6)\t0\t(113.6)\nTreasury stock issued\t0\t\t0\t\t(16.6)\t\t0\t0\t1.2\t33.6\t0\t17.0\nOther comprehensive (loss) net of tax (See Note P)\t0\t\t0\t\t0\t\t0\t(68.1)\t0\t0\t0\t(68.1)\nStock-based compensation net of tax\t0\t\t0\t\t23.7\t\t0\t0\t0\t0\t0\t23.7\nBalance December 31 2018\t198.8\t\t2.0\t\t527.1\t\t2613.8\t(77.6)\t(68.3)\t(1908.3)\t.6\t1157.6\nEffect of accounting change on prior years (See Note K)\t0\t\t0\t\t0\t\t.1\t0\t0\t0\t0\t.1\nAdjusted beginning balance January 1 2019\t198.8\t\t2.0\t\t527.1\t\t2613.9\t(77.6)\t(68.3)\t(1908.3)\t.6\t1157.7\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t0\t\t0\t\t0\t\t333.8\t0\t0\t0\t.1\t333.9\nDividends declared\t0\t\t0\t\t5.4\t\t(213.2)\t0\t0\t0\t0\t(207.8)\nDividends paid to noncontrolling interest\t0\t\t0\t\t0\t\t0\t0\t0\t0\t(.2)\t(.2)\nTreasury stock purchased\t0\t\t0\t\t0\t\t0\t0\t(.7)\t(31.1)\t0\t(31.1)\nTreasury stock issued\t0\t\t0\t\t(22.3)\t\t0\t0\t2.0\t55.6\t0\t33.3\nOther comprehensive income net of tax (See Note P)\t0\t\t0\t\t0\t\t0\t.8\t0\t0\t0\t.8\nStock-based compensation net of tax\t0\t\t0\t\t25.9\t\t0\t0\t0\t0\t0\t25.9\nBalance December 31 2019\t198.8\t\t2.0\t\t536.1\t\t2734.5\t(76.8)\t(67.0)\t(1883.8)\t.5\t1312.5\nEffect of accounting change on prior years (See Note H)\t0\t\t0\t\t0\t\t(2.5)\t0\t0\t0\t0\t(2.5)\nAdjusted beginning balance January 1 2020\t198.8\t\t2.0\t\t536.1\t\t2732.0\t(76.8)\t(67.0)\t(1883.8)\t.5\t1310.0\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t0\t\t0\t\t0\t\t247.6\t0\t0\t0\t.1\t247.7\nDividends declared\t0\t\t0\t\t5.5\t\t(217.2)\t0\t0\t0\t0\t(211.7)\nTreasury stock purchased\t0\t\t0\t\t0\t\t0\t0\t(.2)\t(11.2)\t0\t(11.2)\nTreasury stock issued\t0\t\t0\t\t(21.9)\t\t0\t0\t1.0\t29.6\t0\t7.7\nOther comprehensive income net of tax (See Note P)\t0\t\t0\t\t0\t\t0\t24.4\t0\t0\t(.1)\t24.3\nStock-based compensation net of tax\t0\t\t0\t\t23.5\t\t0\t0\t0\t0\t0\t23.5\nBalance December 31 2020\t198.8\t\t2.0\t\t543.2\t\t2762.4\t(52.4)\t(66.2)\t(1865.4)\t.5\t1390.3\n", "q10k_tbl_32": "\tDecember 31 2020\tDecember 31 2019\nFinished goods\t307.3\t308.7\nWork in process\t47.2\t54.4\nRaw materials and supplies\t346.2\t323.5\nLIFO reserve\t(55.2)\t(49.9)\nTotal inventories net\t645.5\t636.7\n", "q10k_tbl_33": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nBalance beginning of year\t49.9\t82.2\t50.9\nLIFO expense (benefit)\t8.1\t(32.3)\t31.3\nAllocated to divested businesses 1\t(2.8)\t0\t0\nBalance end of year\t55.2\t49.9\t82.2\n", "q10k_tbl_34": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nBedding Products\t\t\t\nBedding Group 1\t2039.3\t2254.3\t1795.3\n\t2039.3\t2254.3\t1795.3\nSpecialized Products\t\t\t\nAutomotive Group\t719.0\t816.1\t823.3\nAerospace Products Group\t102.4\t157.7\t148.9\nHydraulic Cylinders Group\t69.8\t93.0\t84.1\n\t891.2\t1066.8\t1056.3\nFurniture Flooring & Textile Products\t\t\t\nHome Furniture Group\t320.9\t357.4\t390.3\nWork Furniture Group\t231.1\t297.3\t291.4\nFlooring & Textile Products Group\t797.7\t776.7\t736.2\n\t1349.7\t1431.4\t1417.9\n\t4280.2\t4752.5\t4269.5\n", "q10k_tbl_35": "\tYear Ended\t\t\t\n\t\t2020\t\t2019\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2018\t\t\t\t\t\t\t\t\n\tGoodwill Impairment\tOther Long-Lived Asset Impairments 2\tTotal Impairments\tOther Long-Lived Asset Impairments 2\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tOther Long-Lived Asset Impairments 2\t\t\t\t\t\t\t\t\nBedding Products\t0\t.3\t.3\t4.4\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t1.5\t\t\t\t\t\t\t\t\nSpecialized Products\t25.4\t0\t25.4\t0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t0\t\t\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t0\t.2\t.2\t3.4\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t3.9\t\t\t\t\t\t\t\t\nUnallocated 1\t0\t3.5\t3.5\t0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t0\t\t\t\t\t\t\t\t\nTotal impairment charges\t25.4\t4.0\t29.4\t7.8\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t5.4\t\t\t\t\t\t\t\t\n", "q10k_tbl_36": "2020\t\t\t\t\nFair Value over Carrying Value divided by Carrying Value\tDecember 31 2020 Goodwill Value\t10-year Compound Annual Growth Rate Range for Sales\tTerminal Values Long-term Growth Rate for Debt-Free Cash Flow\tDiscount Rate Ranges\nLess than 50% 1\t97.2\t2.1%\t3.0%\t9.0%\n50% - 100% 2\t916.3\t2.0 - 3.6\t3.0\t9.0 - 10.0\n101% - 300%\t247.7\t1.6 - 1.7\t3.0\t8.5 - 9.5\n301% - 600%\t127.6\t6.7\t3.0\t9.0\n\t1388.8\t1.6% - 6.7%\t3.0%\t8.5% - 10.0%\n", "q10k_tbl_37": "2019\t\t\t\t\nFair Value over Carrying Value divided by Carrying Value\tDecember 31 2019 Goodwill Value\t10-year Compound Annual Growth Rate Range for Sales\tTerminal Values Long-term Growth Rate for Debt-Free Cash Flow\tDiscount Rate Ranges\nLess than 50% 3\t26.0\t5.8%\t3.0%\t8.0%\n50% - 100% 2\t855.9\t3.8\t3.0\t8.5 - 9.5\n101% - 300%\t400.9\t1.3 - 5.5\t3.0\t7.5 - 8.0\n301% - 600%\t123.5\t11.1\t3.0\t8.5\n\t1406.3\t1.3% - 11.1%\t3.0%\t7.5% - 9.5%\n", "q10k_tbl_38": "\tBedding Products\tSpecialized Products\tFurniture Flooring & Textile Products\tTotal\nNet goodwill as of January 1 2019\t294.5\t206.5\t332.8\t833.8\nAdditions for current year acquisitions\t558.4\t0\t7.9\t566.3\nAdjustments to prior year acquisitions\t.9\t.2\t0\t1.1\nForeign currency translation adjustment\t2.1\t2.1\t.9\t5.1\nNet goodwill as of December 31 2019\t855.9\t208.8\t341.6\t1406.3\nAdjustments to prior year acquisitions\t0\t0\t.6\t.6\nReductions for sale of business\t(2.5)\t0\t0\t(2.5)\nImpairment charge\t0\t(25.4)\t0\t(25.4)\nForeign currency translation adjustment/other\t3.5\t3.6\t2.7\t9.8\nNet goodwill as of December 31 2020\t856.9\t187.0\t344.9\t1388.8\nNet goodwill as of December 31 2020 is comprised of:\t\t\t\t\nGross goodwill\t862.3\t279.1\t595.5\t1736.9\nAccumulated impairment losses\t(5.4)\t(92.1)\t(250.6)\t(348.1)\nNet goodwill as of December 31 2020\t856.9\t187.0\t344.9\t1388.8\n", "q10k_tbl_39": "\tPatents and Trademarks\tTechnology\tNon-compete Agreements\tCustomer- Related Intangibles\tSupply Agreements and Other\tTotal\n2020\t\t\t\t\t\t\nGross carrying amount\t134.6\t178.2\t39.9\t572.6\t39.9\t965.2\nAccumulated amortization\t42.8\t25.5\t17.5\t156.1\t21.7\t263.6\nNet other intangibles as of December 31 2020\t91.8\t152.7\t22.4\t416.5\t18.2\t701.6\nAcquired during 2020:\t\t\t\t\t\t\nAcquired related to business acquisitions\t0\t0\t0\t0\t0\t0\nAcquired outside business acquisitions\t1.0\t0\t1.7\t.2\t4.5\t7.4\nTotal acquired in 2020\t1.0\t0\t1.7\t.2\t4.5\t7.4\nWeighted average amortization period in years for items acquired in 2020\t19.3\t0.0\t4.0\t15.0\t7.0\t8.2\n2019\t\t\t\t\t\t\nGross carrying amount\t133.9\t178.1\t42.1\t591.1\t41.1\t986.3\nAccumulated amortization\t36.7\t12.9\t14.2\t136.3\t22.2\t222.3\nNet other intangibles as of December 31 2019\t97.2\t165.2\t27.9\t454.8\t18.9\t764.0\nAcquired during 2019:\t\t\t\t\t\t\nAcquired related to business acquisitions\t67.1\t173.3\t28.7\t378.9\t0\t648.0\nAcquired outside business acquisitions\t1.6\t0\t0\t0\t5.9\t7.5\nTotal acquired in 2019\t68.7\t173.3\t28.7\t378.9\t5.9\t655.5\nWeighted average amortization period in years for items acquired in 2019\t15.1\t15.0\t5.2\t15.0\t7.6\t14.5\n", "q10k_tbl_40": "Year ended December 31\t\n2021\t66.0\n2022\t65.0\n2023\t62.0\n2024\t55.0\n2025\t54.0\n", "q10k_tbl_41": "\tTotal Amount Incurred to Date\tTotal Incurred Full Year 2020\tTotal Incurred Full Year 2019\tTotal Incurred Full Year 2018\n2018 Restructuring Plan\t\t\t\t\nRestructuring and restructuring-related\t20.9\t2.2\t7.5\t11.2\nImpairment costs associated with this plan\t13.2\t.5\t7.6\t5.1\n\t34.1\t2.7\t15.1\t16.3\nAmount of total that represents cash charges\t15.9\t1.0\t8.0\t6.9\n", "q10k_tbl_42": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nCharged to other (income) expense net:\t\t\t\nSeverance and other restructuring costs\t7.6\t8.1\t7.8\nCharged to cost of goods sold:\t\t\t\nInventory obsolescence and other\t1.1\t(.5)\t4.6\nTotal restructuring and restructuring-related costs\t8.7\t7.6\t12.4\nAmount of total that represents cash charges\t7.6\t8.1\t7.8\n", "q10k_tbl_43": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nBedding Products\t3.4\t4.9\t7.2\nSpecialized Products\t3.9\t0\t0\nFurniture Flooring & Textile Products\t1.4\t2.7\t5.2\nTotal\t8.7\t7.6\t12.4\n", "q10k_tbl_44": "\tBalance at December 31 2018\tAdd: 2019 Charges\tLess: 2019 Payments\tBalance at December 31 2019\tAdd: 2020 Charges\tLess: 2020 Payments\tBalance at December 31 2020\nTermination benefits\t6.6\t4.7\t7.8\t3.5\t7.0\t7.1\t3.4\nContract termination costs\t0\t.4\t.4\t0\t.2\t0\t.2\nOther restructuring costs\t.6\t3.0\t2.9\t.7\t.4\t.6\t.5\n\t7.2\t8.1\t11.1\t4.2\t7.6\t7.7\t4.1\n", "q10k_tbl_45": "\tYear Ended December 31\t\t\t\t\n\tTrade 1 Sales\tInter- Segment Sales\tTotal Segment Sales\tEBIT\tDepreciation and Amortization\n2020\t\t\t\t\t\nBedding Products\t2039.3\t32.2\t2071.5\t185.8\t106.7\nSpecialized Products 2\t891.2\t2.8\t894.0\t91.9\t44.3\nFurniture Flooring & Textile Products\t1349.7\t13.8\t1363.5\t126.2\t25.5\nIntersegment eliminations and other 3 4\t\t\t\t(3.4)\t12.9\n\t4280.2\t48.8\t4329.0\t400.5\t189.4\n2019\t\t\t\t\t\nBedding Products\t2254.3\t41.3\t2295.6\t235.8\t107.3\nSpecialized Products\t1066.8\t3.2\t1070.0\t170.5\t41.8\nFurniture Flooring & Textile Products\t1431.4\t16.0\t1447.4\t107.4\t25.7\nIntersegment eliminations and other 3\t\t\t\t(.3)\t17.1\n\t4752.5\t60.5\t4813.0\t513.4\t191.9\n2018\t\t\t\t\t\nBedding Products\t1795.3\t46.6\t1841.9\t149.8\t47.3\nSpecialized Products\t1056.3\t2.7\t1059.0\t189.0\t39.0\nFurniture Flooring & Textile Products\t1417.9\t18.1\t1436.0\t98.6\t27.0\nIntersegment eliminations and other 3\t\t\t\t(.5)\t22.8\n\t4269.5\t67.4\t4336.9\t436.9\t136.1\n", "q10k_tbl_46": "\tYear Ended December 31\t\t\n\tAssets\tAdditions to Property Plant and Equipment\tAcquired Companies' Long-Lived Assets\t\t\t\t\t\t\n2020\t\t\t\t\t\t\t\t\t\nBedding Products\t739.0\t27.1\t0\t\t\t\t\t\t\nSpecialized Products\t299.5\t13.2\t0\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t348.6\t7.9\t0\t\t\t\t\t\t\nAverage current liabilities included in segment numbers above\t665.0\t0\t0\t\t\t\t\t\t\nUnallocated assets and other\t2713.1\t18.0\t0\t\t\t\t\t\t\nDifference between average assets and year-end balance sheet\t(11.2)\t0\t0\t\t\t\t\t\t\n\t4754.0\t66.2\t0\t\t\t\t\t\t\n2019\t\t\t\t\t\t\t\t\t\nBedding Products\t829.6\t65.4\t1279.8\t\t\t\t\t\t\nSpecialized Products\t346.4\t29.3\t.2\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t383.2\t13.7\t17.4\t\t\t\t\t\t\nAverage current liabilities included in segment numbers above\t735.3\t0\t0\t\t\t\t\t\t\nUnallocated assets and other\t2650.7\t34.7\t0\t\t\t\t\t\t\nDifference between average assets and year-end balance sheet\t(128.8)\t0\t0\t\t\t\t\t\t\n\t4816.4\t143.1\t1297.4\t\t\t\t\t\t\n2018\t\t\t\t\t\t\t\t\t\nBedding Products\t696.4\t58.2\t0\t\t\t\t\t\t\nSpecialized Products\t342.5\t45.0\t79.4\t\t\t\t\t\t\nFurniture Flooring & Textile Products\t366.5\t19.1\t6.0\t\t\t\t\t\t\nAverage current liabilities included in segment numbers above\t651.9\t0\t0\t\t\t\t\t\t\nUnallocated assets and other\t1278.0\t37.3\t0\t\t\t\t\t\t\nDifference between average assets and year-end balance sheet\t46.7\t0\t0\t\t\t\t\t\t\n\t3382.0\t159.6\t85.4\t\t\t\t\t\t\n", "q10k_tbl_47": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTrade sales\t\t\t\nForeign sales\t\t\t\nEurope\t420.9\t508.5\t525.6\nChina\t441.7\t449.9\t494.7\nCanada\t261.5\t312.8\t286.8\nMexico\t215.4\t256.0\t186.1\nOther\t94.7\t92.6\t94.8\nTotal foreign sales\t1434.2\t1619.8\t1588.0\nUnited States\t2846.0\t3132.7\t2681.5\nTotal trade sales\t4280.2\t4752.5\t4269.5\nTangible long-lived assets\t\t\t\nForeign tangible long-lived assets\t\t\t\nEurope\t155.0\t160.2\t167.6\nChina\t45.4\t51.6\t55.5\nCanada\t30.2\t36.4\t38.0\nMexico\t8.8\t10.1\t10.1\nOther\t11.1\t14.7\t16.0\nTotal foreign tangible long-lived assets\t250.5\t273.0\t287.2\nUnited States\t534.3\t557.8\t441.3\nTotal tangible long-lived assets\t784.8\t830.8\t728.5\n", "q10k_tbl_48": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nEarnings:\t\t\t\nNet earnings\t247.7\t333.9\t306.1\n(Earnings) attributable to noncontrolling interest net of tax\t(.1)\t(.1)\t(.2)\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t247.6\t333.8\t305.9\nWeighted average number of shares (in millions):\t\t\t\nWeighted average number of common shares used in basic EPS\t135.7\t134.8\t134.3\nDilutive effect of stock-based compensation\t.2\t.6\t.9\nWeighted average number of common shares and dilutive potential common shares used in diluted EPS\t135.9\t135.4\t135.2\nBasic and Diluted EPS:\t\t\t\nBasic EPS attributable to Leggett & Platt Inc. common shareholders\t1.82\t2.48\t2.28\nDiluted EPS attributable to Leggett & Platt Inc. common shareholders\t1.82\t2.47\t2.26\nOther information:\t\t\t\nAnti-dilutive shares excluded from diluted EPS computation\t.2\t.2\t.1\nCash dividends declared per share\t1.60\t1.58\t1.50\n", "q10k_tbl_49": "\tBalance at December 31 2019 as Previously Reported\tTopic 326 Adjustments\tBalance at January 1 2020\nTrade receivables net 1\t564.4\t(3.3)\t561.1\nOther current assets\t973.7\t0\t973.7\nNet property plant and equipment\t830.8\t0\t830.8\nTotal other assets\t2447.5\t0\t2447.5\nTotal assets\t4816.4\t(3.3)\t4813.1\nTotal current liabilities\t928.1\t0\t928.1\nTotal long-term liabilities 2\t2575.8\t(.8)\t2575.0\nRetained earnings\t2734.5\t(2.5)\t2732.0\nOther equity\t(1422.0)\t0\t(1422.0)\nTotal liabilities and equity\t4816.4\t(3.3)\t4813.1\n", "q10k_tbl_50": "\t2020\t\t2019\t\n\tCurrent\tLong-term\tCurrent\tLong-term\nTrade accounts receivable 1\t553.5\t0\t571.8\t0\nTrade notes receivable\t.9\t.3\t1.1\t.6\nTotal trade receivables\t554.4\t.3\t572.9\t.6\nOther notes receivable 1\t0\t22.8\t0\t23.4\nTaxes receivable including income taxes\t14.8\t0\t15.8\t0\nOther receivables\t13.6\t0\t11.7\t0\nSubtotal other receivables\t28.4\t22.8\t27.5\t23.4\nTotal trade and other receivables\t582.8\t23.1\t600.4\t24.0\nAllowance for doubtful accounts:\t\t\t\t\nTrade accounts receivable 12\t(19.2)\t0\t(8.4)\t0\nTrade notes receivable\t0\t0\t(.1)\t0\nTotal trade receivables\t(19.2)\t0\t(8.5)\t0\nOther notes receivable 1\t0\t(22.8)\t0\t(15.0)\nTotal allowance for doubtful accounts\t(19.2)\t(22.8)\t(8.5)\t(15.0)\nTotal net receivables\t563.6\t.3\t591.9\t9.0\n", "q10k_tbl_51": "\tBalance at December 31 2018\tAdd: Charges\tLess: Net Charge-offs/(Recoveries) and Other\tBalance at December 31 2019\tTopic 326 Adjustment\tBalance at January 1 2020\tAdd: Charges\tLess: Net Charge-offs/(Recoveries) and Other\tBalance at December 31 2020\nTrade accounts receivable\t5.2\t2.7\t(.5)\t8.4\t3.3\t11.7\t9.4\t1.9\t19.2\nTrade notes receivable\t0\t.1\t0\t.1\t0\t.1\t(.1)\t0\t0\nTotal trade receivables\t5.2\t2.8\t(.5)\t8.5\t3.3\t11.8\t9.3\t1.9\t19.2\nOther notes receivable\t15.0\t0\t0\t15.0\t0\t15.0\t7.8\t0\t22.8\nTotal allowance for doubtful accounts\t20.2\t2.8\t(.5)\t23.5\t3.3\t26.8\t17.1\t1.9\t42.0\n", "q10k_tbl_52": "\t2020\t2019\nSundry\t\t\nDeferred taxes (see Note N)\t11.0\t11.5\nDiversified investments associated with stock-based compensation plans (see Note L)\t42.7\t38.2\nInvestment in associated companies\t0\t4.3\nPension plan assets (see Note M)\t.9\t1.4\nBrazilian VAT deposits (see Note T)\t8.2\t10.5\nNet long-term notes receivable (see Note H)\t.3\t9.0\nFinance leases (see Note K)\t3.6\t4.3\nOther\t38.4\t39.2\n\t105.1\t118.4\nAccrued expenses\t\t\nLitigation contingency accruals (see Note T)\t.5\t.7\nWages and commissions payable\t77.5\t80.9\nWorkers' compensation vehicle-related and product liability medical/disability\t45.1\t42.9\nSales promotions\t49.9\t51.1\nLiabilities associated with stock-based compensation plans (see Note L)\t8.2\t11.8\nAccrued interest\t14.6\t14.4\nGeneral taxes excluding income taxes 1\t26.3\t17.0\nEnvironmental reserves\t4.0\t3.8\nOther\t49.1\t58.4\n\t275.2\t281.0\nOther current liabilities\t\t\nDividends payable\t53.0\t52.7\nCustomer deposits\t19.4\t11.9\nSales tax payable\t5.4\t5.0\nDerivative financial instruments (see Note S)\t2.2\t.9\nLiabilities associated with stock-based compensation plans (see Note L)\t3.2\t2.8\nOutstanding checks in excess of book balances\t1.6\t10.4\nOther\t.5\t9.6\n\t85.3\t93.3\nOther long-term liabilities\t\t\nLiability for pension benefits (see Note M)\t71.7\t58.6\nLiabilities associated with stock-based compensation plans (see Note L)\t45.7\t46.5\nDeemed repatriation tax payable\t31.6\t32.8\nNet reserves for tax contingencies\t6.4\t8.1\nDeferred compensation\t14.6\t14.6\nOther 1\t22.1\t12.9\n\t192.1\t173.5\n", "q10k_tbl_53": "\t2020\t\t\t2019\t\t\n\tYear-end Interest Rate\tDue Date Through\tBalance\tYear-end Interest Rate\tDue Date Through\tBalance\nSenior Notes 1\t3.4%\t2022\t300.0\t3.4%\t2022\t300.0\nSenior Notes 1\t3.8%\t2024\t300.0\t3.8%\t2024\t300.0\nSenior Notes 1\t3.5%\t2027\t500.0\t3.5%\t2027\t500.0\nSenior Notes 1\t4.4%\t2029\t500.0\t4.4%\t2029\t500.0\nTerm Loan 2\t3.0%\t2024\t305.0\t2.9%\t2024\t462.5\nIndustrial development bonds principally variable interest rates\t.3%\t2030\t3.8\t1.6%\t2030\t3.8\nCommercial paper 3\t-%\t2024\t0\t2.0%\t2024\t61.5\nFinance leases (primarily vehicles)\t\t\t3.6\t\t\t4.2\nOther partially secured\t\t\t.5\t\t\t.5\nUnamortized discounts and deferred loan cost\t\t\t(12.7)\t\t\t(14.9)\nTotal debt\t\t\t1900.2\t\t\t2117.6\nLess: current maturities\t\t\t50.9\t\t\t51.1\nTotal long-term debt\t\t\t1849.3\t\t\t2066.5\n", "q10k_tbl_54": "Year ended December 31\t\n2021\t50.9\n2022\t350.4\n2023\t50.9\n2024\t454.3\n2025\t0\nThereafter\t993.7\n\t1900.2\n", "q10k_tbl_55": "\t2020\t2019\nTotal program authorized\t1200.0\t1200.0\nCommercial paper outstanding (classified as long-term debt)\t0\t(61.5)\nLetters of credit issued under the credit facility\t0\t0\nTotal program usage\t0\t(61.5)\nTotal program available\t1200.0\t1138.5\n", "q10k_tbl_56": "\tDecember 31\t\n\t2020\t2019\nOperating leases:\t\t\nOperating lease right-of-use assets\t161.6\t158.8\nCurrent portion of operating lease liabilities\t42.4\t39.3\nOperating lease liabilities\t122.1\t121.6\nTotal operating lease liabilities\t164.5\t160.9\nFinance leases:\t\t\nSundry\t3.6\t4.3\nCurrent maturities of long-term debt\t.9\t1.1\nLong-term debt\t2.7\t3.1\nTotal finance lease liabilities\t3.6\t4.2\n", "q10k_tbl_57": "\tYear Ended December 31\t\n\t2020\t2019\nOperating lease costs:\t\t\nLease costs\t48.4\t45.0\nVariable lease costs\t12.1\t12.9\nTotal operating lease costs\t60.5\t57.9\nShort-term lease costs\t4.9\t5.0\nFinance lease costs:\t\t\nAmortization of right-of-use assets\t2.4\t2.7\nInterest on lease liabilities\t.1\t.2\nTotal finance lease costs\t2.5\t2.9\nTotal lease costs\t67.9\t65.8\n", "q10k_tbl_58": "\tYear Ended December 31\t\n\t2020\t2019\nCash paid for amounts included in the measurement of lease liabilities:\t\t\nOperating cash flows from operating leases\t47.3\t40.7\nOperating cash flows from finance leases\t.1\t.2\nFinancing cash flows from finance leases\t2.4\t2.7\nRight-of-use assets obtained in exchange for new operating lease liabilities\t43.6\t40.7\nRight-of-use assets obtained in exchange for new finance lease liabilities\t1.8\t2.1\n", "q10k_tbl_59": "\tDecember 31 2020\t\n\tOperating Leases\tFinance Leases\n2021\t47.0\t1.6\n2022\t40.7\t1.3\n2023\t30.6\t.7\n2024\t22.2\t.2\n2025\t14.4\t0\nThereafter\t22.8\t0\nTotal\t177.7\t3.8\nLess: Interest\t13.2\t.2\nLease Liability\t164.5\t3.6\nWeighted average remaining lease term (years)\t5.0\t2.6\nWeighted average discount rate\t3.2%\t3.7%\n", "q10k_tbl_60": "\tShares Available for Issuance\tMaximum Number of Authorized Shares\nUnexercised options\t.5\t.5\nOutstanding stock units-vested\t3.5\t8.4\nOutstanding stock units-unvested\t.9\t2.8\nAvailable for grant\t13.0\t13.0\nAuthorized for issuance at December 31 2020\t17.9\t24.7\n", "q10k_tbl_61": "\tYear Ended December 31\t\t\t\t\t\n\t2020\t\t2019\t\t2018\t\n\tTo Be Settled With Stock\tTo Be Settled In Cash\tTo Be Settled With Stock\tTo Be Settled In Cash\tTo Be Settled With Stock\tTo Be Settled In Cash\nStock-based retirement plans contributions 2\t3.5\t.7\t3.7\t.6\t5.6\t1.0\nDiscounts on various stock awards:\t\t\t\t\t\t\nDeferred Stock Compensation Program 1\t2.2\t0\t2.1\t0\t1.9\t0\nStock-based retirement plans 2\t1.4\t0\t1.3\t0\t1.3\t0\nDiscount Stock Plan 6\t.9\t0\t1.0\t0\t1.1\t0\nPerformance Stock Unit (PSU) awards: 3\t\t\t\t\t\t\n2018 and later PSU - TSR based 3A\t3.2\t(.7)\t2.8\t4.1\t1.2\t.8\n2018 and later PSU - EBIT CAGR based 3B\t(1.9)\t(2.0)\t3.8\t5.3\t2.9\t2.5\n2017 and prior PSU awards 3C\t0\t0\t1.8\t1.0\t3.6\t(1.3)\nProfitable Growth Incentive (PGI) awards 4\t0\t0\t0\t0\t.9\t.9\nRestricted Stock Units (RSU) awards 5\t6.8\t0\t2.0\t0\t2.1\t0\nOther primarily non-employee directors restricted stock\t.9\t0\t1.4\t0\t.9\t0\nTotal stock-related compensation expense (income)\t17.0\t(2.0)\t19.9\t11.0\t21.5\t3.9\nEmployee contributions for above stock plans\t12.2\t\t13.1\t\t14.0\t\nTotal stock-based compensation\t29.2\t\t33.0\t\t35.5\t\nTax benefits on stock-based compensation expense\t4.0\t\t4.7\t\t5.1\t\nTax benefits on stock-based compensation payments (As discussed below we elected to pay selected awards in cash during 2018.)\t2.5\t\t5.6\t\t3.9\t\nTotal tax benefits associated with stock-based compensation\t6.5\t\t10.3\t\t9.0\t\n", "q10k_tbl_62": "\t2020\t\t\t2019\t\t\n\tCurrent\tLong-term\tTotal\tCurrent\tLong-term\tTotal\nAssets:\t\t\t\t\t\t\nDiversified investments associated with the Executive Stock Unit Program 2\t3.2\t42.7\t45.9\t2.8\t38.2\t41.0\nLiabilities:\t\t\t\t\t\t\nExecutive Stock Unit Program 2\t3.2\t42.2\t45.4\t2.8\t37.8\t40.6\nPerformance Stock Unit (TSR) award 3A\t1.9\t2.2\t4.1\t1.5\t5.0\t6.5\nPerformance Stock Unit (EBIT) award 3B\t.4\t1.3\t1.7\t4.1\t3.7\t7.8\nOther - primarily timing differences between employee withholdings and related employer contributions to be submitted to various plans' trust accounts\t5.9\t0\t5.9\t6.2\t0\t6.2\nTotal liabilities associated with stock-based compensation\t11.4\t45.7\t57.1\t14.6\t46.5\t61.1\n", "q10k_tbl_63": "\tTotal Stock Options\tWeighted Average Exercise Price per Share\tWeighted Average Remaining Contractual Life in Years\tAggregate Intrinsic Value\nOutstanding at December 31 2019\t.6\t33.03\t\t\nGranted\t0\t42.44\t\t\nExercised\t(.1)\t22.82\t\t\nOutstanding at December 31 2020\t.5\t35.72\t4.7\t4.6\nVested or expected to vest\t.5\t35.72\t4.7\t4.6\nExercisable (vested) at December 31 2020\t.5\t35.33\t4.6\t4.6\n", "q10k_tbl_64": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTotal intrinsic value of stock options exercised\t2.3\t23.6\t8.8\nCash received from stock options exercised\t1.5\t9.3\t4.8\nTotal fair value of stock options vested\t.9\t.3\t.8\n", "q10k_tbl_65": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nAggregate grant date fair value\t.2\t.5\t <.1\nWeighted-average per share grant date fair value\t6.39\t5.36\t6.47\nRisk-free interest rate\t2.4%\t2.8%\t2.3%\nExpected life in years\t7.4\t7.8\t6.0\nExpected volatility (over expected life)\t22.1%\t22.3%\t19.4%\nExpected dividend yield (over expected life)\t3.7%\t4.2%\t3.1%\n", "q10k_tbl_66": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTSR Based\t\t\t\nTotal shares base award\t.1\t.1\t.1\nGrant date per share fair value\t38.23\t57.86\t42.60\nRisk-free interest rate\t1.4%\t2.4%\t2.4%\nExpected life in years\t3.0\t3.0\t3.0\nExpected volatility (over expected life)\t24.0%\t21.5%\t19.9%\nExpected dividend yield (over expected life)\t3.6%\t3.4%\t3.3%\nEBIT CAGR Based\t\t\t\nTotal shares base award\t.1\t.1\t.1\nGrant date per share fair value\t40.52\t39.98\t40.92\nVesting period in years\t3.0\t3.0\t3.0\n", "q10k_tbl_67": "Three-Year Performance Cycle for PSU - TSR Based\t\t\t\t\t\t\t\nAward Year\tCompletion Date\tTSR Performance Relative to the Peer Group (1%=Best)\t\tPayout as a Percent of the Base Award\tNumber of Shares Distributed\tCash Portion\tDistribution Date\n2016\tDecember 31 2018\t78\tth percentile\t-%\t0\t0\tFirst quarter 2019\n2017\tDecember 31 2019\t63\trd percentile\t49.0%\t.1 million\t1.6\tFirst quarter 2020\n2018\tDecember 31 2020\t60\tth percentile\t56.0%\t<.1 million\t2.0\tFirst quarter 2021\n", "q10k_tbl_68": "Two-Year Performance Cycle\t\t\t\t\t\nAward Year\tCompletion Date\tAverage Payout as a Percent of the Base Award\tEstimated Number of Shares\tCash Portion\tDistribution Date\n2016\tDecember 31 2017\t44.0%\t0\t2.0\tFirst quarter 2018\n2017\tDecember 31 2018\t155.0%\t<.1 million\t2.2\tFirst quarter 2019\n", "q10k_tbl_69": "\tDSU\tESUP\tPSU*\tRSU\tTotal Units\tWeighted Average Grant Date Fair Value per Unit\tAggregate Intrinsic Value\nUnvested at December 31 2019\t0\t0\t1.0\t.1\t1.1\t33.30\t\nGranted based on current service\t.3\t.2\t0\t.2\t.7\t39.21\t\nGranted based on future conditions\t0\t0\t.2\t0\t.2\t19.66\t\nVested\t(.3)\t(.2)\t(.1)\t(.2)\t(.8)\t55.82\t\nForfeited\t0\t0\t(.3)\t0\t(.3)\t25.92\t\nUnvested at December 31 2020\t0\t0\t.8\t.1\t.9\t24.07\t42.3\nFully vested shares available for issuance at December 31 2020\t\t\t\t\t3.5\t\t153.6\n", "q10k_tbl_70": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTotal intrinsic value of vested stock units converted to common stock\t11.7\t8.0\t12.1\n", "q10k_tbl_71": "Average 2020 purchase price per share (net of discount)\t32.50\n2020 number of shares purchased by employees\t.2\nShares purchased since inception in 1982\t23.5\nMaximum shares under the plan\t27.0\n", "q10k_tbl_72": "\t2020\t2019\t2018\nChange in benefit obligation\t\t\t\nBenefit obligation beginning of period\t259.1\t219.8\t241.5\nService cost\t5.1\t4.0\t3.9\nInterest cost\t7.2\t8.5\t8.0\nPlan participants' contributions\t.5\t.5\t.5\nActuarial loss (gain)1\t27.7\t36.7\t(20.3)\nBenefits paid\t(14.2)\t(13.8)\t(13.4)\nPlan amendments\t(.4)\t1.9\t1.9\nForeign currency exchange rate changes\t1.5\t1.5\t(2.3)\nBenefit obligation end of period\t286.5\t259.1\t219.8\nChange in plan assets\t\t\t\nFair value of plan assets beginning of period\t201.5\t181.8\t185.7\nActual return (loss) on plan assets\t24.1\t30.0\t(10.6)\nEmployer contributions\t2.2\t1.5\t21.8\nPlan participants' contributions\t.5\t.5\t.5\nBenefits paid\t(14.2)\t(13.8)\t(13.4)\nForeign currency exchange rate changes\t1.2\t1.5\t(2.2)\nFair value of plan assets end of period\t215.3\t201.5\t181.8\nNet funded status\t(71.2)\t(57.6)\t(38.0)\nFunded status recognized in the Consolidated Balance Sheets\t\t\t\nOther assets-sundry\t.9\t1.4\t1.6\nOther current liabilities\t(.4)\t(.4)\t(.4)\nOther long-term liabilities\t(71.7)\t(58.6)\t(39.2)\nNet funded status\t(71.2)\t(57.6)\t(38.0)\n", "q10k_tbl_73": "\tDecember 31 2019\t2020 Amortization\t2020 Net Actuarial Loss\t2020 Foreign Currency Exchange Rates Change\t2020 Income Tax Change\tDecember 31 2020\nNet loss (gain) (before tax)\t70.2\t(4.0)\t15.5\t.3\t0\t82.0\nDeferred income taxes\t(19.0)\t0\t0\t0\t(2.8)\t(21.8)\nAccumulated other comprehensive (income) loss (net of tax)\t51.2\t(4.0)\t15.5\t.3\t(2.8)\t60.2\n", "q10k_tbl_74": "\t2020\t2019\t2018\nService cost\t(5.1)\t(4.0)\t(3.9)\nInterest cost\t(7.2)\t(8.5)\t(8.0)\nExpected return on plan assets\t11.9\t11.3\t11.9\nRecognized net actuarial loss\t(4.0)\t(2.9)\t(2.6)\nPrior service cost\t.4\t(1.7)\t0\nNet pension expense\t(4.0)\t(5.8)\t(2.6)\nWeighted average assumptions for pension costs:\t\t\t\nDiscount rate used in net pension costs\t2.8%\t3.9%\t3.4%\nRate of compensation increase used in pension costs\t3.4%\t3.0%\t3.0%\nExpected return on plan assets\t6.1%\t6.4%\t6.4%\nWeighted average assumptions for benefit obligation:\t\t\t\nDiscount rate used in benefit obligation\t2.1%\t2.8%\t3.9%\nRate of compensation increase used in benefit obligation\t3.5%\t3.4%\t3.0%\n", "q10k_tbl_75": "\tYear Ended December 31 2020\t\t\t\t\tYear Ended December 31 2019\t\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tAssets Measured at NAV1\tTotal\tLevel 1\tLevel 2\tLevel 3\tAssets Measured at NAV1\tTotal\nMutual and pooled funds\t\t\t\t\t\t\t\t\t\t\nFixed income\t35.3\t16.5\t0\t0\t51.8\t40.7\t0\t0\t0\t40.7\nEquities\t114.0\t10.4\t0\t0\t124.4\t121.7\t0\t0\t0\t121.7\nStable value funds\t0\t30.9\t0\t0\t30.9\t0\t30.2\t0\t0\t30.2\nMoney market funds cash and other\t0\t0\t0\t8.2\t8.2\t0\t0\t0\t8.9\t8.9\nTotal investments at fair value\t149.3\t57.8\t0\t8.2\t215.3\t162.4\t30.2\t0\t8.9\t201.5\n", "q10k_tbl_76": "\t2020\t2019\nAsset Category\t\t\nEquity securities\t58%\t60%\nDebt securities\t24\t20\nStable value funds\t14\t15\nOther including cash\t4\t5\nTotal\t100%\t100%\n", "q10k_tbl_77": "2021\t13.0\n2022\t13.5\n2023\t14.1\n2024\t14.8\n2025\t15.0\n2026-2030\t73.5\n", "q10k_tbl_78": "\t2020\t2019\t2018\n401(k) Plan\t6.8\t6.9\t2.2\nOther defined contribution plans\t4.9\t5.3\t4.1\n\t11.7\t12.2\t6.3\n", "q10k_tbl_79": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nDomestic\t108.3\t195.5\t149.1\nForeign\t212.6\t234.6\t235.3\n\t320.9\t430.1\t384.4\n", "q10k_tbl_80": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nCurrent\t\t\t\nFederal\t36.9\t34.6\t21.2\nState and local\t7.8\t5.3\t4.9\nForeign\t51.0\t48.7\t55.6\n\t95.7\t88.6\t81.7\nDeferred\t\t\t\nFederal\t(16.3)\t7.5\t8.8\nState and local\t(2.9)\t.6\t(12.0)\nForeign\t(3.3)\t(.5)\t(.2)\n\t(22.5)\t7.6\t(3.4)\n\t73.2\t96.2\t78.3\n", "q10k_tbl_81": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nStatutory federal income tax rate\t21.0%\t21.0%\t21.0%\nIncreases (decreases) in rate resulting from:\t\t\t\nState taxes net of federal benefit\t.8\t1.4\t.9\nTax effect of foreign operations\t(2.2)\t(1.6)\t(.7)\nGlobal intangible low-taxed income\t(.4)\t2.2\t.7\nCurrent and deferred foreign withholding taxes\t2.8\t1.2\t3.8\nStock-based compensation\t(.6)\t(1.1)\t(.8)\nChange in valuation allowance\t.8\t.4\t(2.0)\nChange in uncertain tax positions net\t.6\t(.3)\t(.3)\nGoodwill impairment\t1.7\t0\t0\nOther permanent differences net\t(1.4)\t(.3)\t(1.4)\nOther net\t(.3)\t(.5)\t(.8)\nEffective tax rate\t22.8%\t22.4%\t20.4%\n", "q10k_tbl_82": "\t2020\t2019\t2018\nGross unrecognized tax benefits January 1\t6.4\t8.2\t10.1\nGross increases-tax positions in prior periods 1\t2.9\t0\t0\nGross decreases-tax positions in prior periods\t(.4)\t(.4)\t(.5)\nGross increases-current period tax positions\t.6\t.7\t1.3\nChange due to exchange rate fluctuations\t.1\t0\t(.2)\nSettlements 1\t(3.2)\t0\t0\nLapse of statute of limitations\t(1.1)\t(2.1)\t(2.5)\nGross unrecognized tax benefits December 31\t5.3\t6.4\t8.2\nInterest\t1.4\t1.9\t2.4\nPenalties\t.2\t.3\t.4\nTotal gross unrecognized tax benefits December 31\t6.9\t8.6\t11.0\n", "q10k_tbl_83": "\tDecember 31\t\t\t\n\t2020\t\t2019\t\n\tAssets\tLiabilities\tAssets\tLiabilities\nProperty plant and equipment\t17.4\t(81.7)\t19.1\t(84.8)\nInventories\t2.6\t(10.2)\t2.3\t(13.2)\nAccrued expenses\t68.1\t(6.3)\t59.9\t(4.2)\nNet operating losses and other tax carryforwards\t32.3\t0\t31.9\t0\nPension cost and other post-retirement benefits\t22.3\t(.7)\t18.2\t(.7)\nIntangible assets\t.2\t(194.7)\t.3\t(199.5)\nDerivative financial instruments\t2.4\t(2.4)\t3.0\t(1.7)\nTax on undistributed earnings (primarily from Canada and China)\t0\t(14.8)\t0\t(16.8)\nUncertain tax positions\t1.1\t0\t1.4\t0\nOther\t5.7\t(6.4)\t5.2\t(6.3)\nGross deferred tax assets (liabilities)\t152.1\t(317.2)\t141.3\t(327.2)\nValuation allowance\t(18.1)\t0\t(16.8)\t0\nTotal deferred taxes\t134.0\t(317.2)\t124.5\t(327.2)\nNet deferred tax liability\t\t(183.2)\t\t(202.7)\n", "q10k_tbl_84": "\tDecember 31\t\n\t2020\t2019\nSundry\t11.0\t11.5\nDeferred income taxes\t(194.2)\t(214.2)\n\t(183.2)\t(202.7)\n", "q10k_tbl_85": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nGain on sales of assets and businesses\t(2.5)\t(5.0)\t(1.9)\nRestructuring charges (See Note E)\t7.6\t8.1\t7.8\nCurrency loss\t2.4\t3.0\t.8\n(Gain) loss from diversified investments associated with Executive Stock Unit Program (See Note L)\t(6.0)\t(7.2)\t1.9\nCOVID-19 government subsidies 1\t(21.4)\t0\t0\nNon-service pension (income) expense (See Note M)\t(1.1)\t1.8\t(1.3)\nOther income\t(4.0)\t(4.3)\t(6.5)\n\t(25.0)\t(3.6)\t.8\n", "q10k_tbl_86": "\tForeign Currency Translation Adjustments\tCash Flow Hedges\tDefined Benefit Pension Plans\tAccumulated Other Comprehensive Income (Loss)\nBalance at January 1 2018\t40.5\t(11.5)\t(38.5)\t(9.5)\nOther comprehensive (loss)\t(67.0)\t(3.1)\t(3.7)\t(73.8)\nReclassifications pretax 1\t0\t2.8\t2.6\t5.4\nIncome tax effect\t0\t0\t.3\t.3\nBalance at December 31 2018\t(26.5)\t(11.8)\t(39.3)\t(77.6)\nOther comprehensive income (loss)\t5.0\t2.5\t(18.6)\t(11.1)\nReclassifications pretax 2\t0\t7.4\t2.9\t10.3\nIncome tax effect\t0\t(2.2)\t3.8\t1.6\nBalance at December 31 2019\t(21.5)\t(4.1)\t(51.2)\t(76.8)\nOther comprehensive income (loss)\t27.8\t4.5\t(15.8)\t16.5\nReclassifications pretax 3\t0\t2.4\t4.0\t6.4\nIncome tax effect\t0\t(1.4)\t2.8\t1.4\nAttributable to noncontrolling interest\t.1\t0\t0\t.1\nBalance at December 31 2020\t6.4\t1.4\t(60.2)\t(52.4)\n1 2018 pretax reclassifications are comprised of:\t\t\t\t\nNet trade sales\t0\t(2.6)\t0\t(2.6)\nCost of goods sold; selling and administrative expenses\t0\t1.1\t0\t1.1\nInterest expense\t0\t4.3\t0\t4.3\nOther (income) expense net\t0\t0\t2.6\t2.6\nTotal 2018 reclassifications pretax\t0\t2.8\t2.6\t5.4\n2 2019 pretax reclassifications are comprised of:\t\t\t\t\nNet trade sales\t0\t3.6\t0\t3.6\nCost of goods sold; selling and administrative expenses\t0\t(.6)\t0\t(.6)\nInterest expense\t0\t4.4\t0\t4.4\nOther (income) expense net\t0\t0\t2.9\t2.9\nTotal 2019 reclassifications pretax\t0\t7.4\t2.9\t10.3\n3 2020 pretax reclassifications are comprised of:\t\t\t\t\nNet trade sales\t0\t(1.4)\t0\t(1.4)\nCost of goods sold; selling and administrative expenses\t0\t(.7)\t0\t(.7)\nInterest expense\t0\t4.5\t0\t4.5\nOther (income) expense net\t0\t0\t4.0\t4.0\nTotal 2020 reclassifications pretax\t0\t2.4\t4.0\t6.4\n", "q10k_tbl_87": "\tAs of December 31 2020\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nCash equivalents:\t\t\t\t\nBank time deposits with original maturities of three months or less\t0\t156.5\t0\t156.5\nDerivative assets 1 (see Note S)\t0\t7.9\t0\t7.9\nDiversified investments associated with the ESUP 1 (see Note L)\t45.9\t0\t0\t45.9\nTotal assets\t45.9\t164.4\t0\t210.3\nLiabilities:\t\t\t\t\nDerivative liabilities 1 (see Note S)\t0\t2.5\t0\t2.5\nLiabilities associated with the ESUP 1 (see Note L)\t45.4\t0\t0\t45.4\nTotal liabilities\t45.4\t2.5\t0\t47.9\n", "q10k_tbl_88": "\tAs of December 31 2019\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nCash equivalents:\t\t\t\t\nBank time deposits with original maturities of three months or less\t0\t153.7\t0\t153.7\nDerivative assets 1 (see Note S)\t0\t4.0\t0\t4.0\nDiversified investments associated with the ESUP 1 (see Note L)\t41.0\t0\t0\t41.0\nTotal assets\t41.0\t157.7\t0\t198.7\nLiabilities:\t\t\t\t\nDerivative liabilities 1 (see Note S)\t0\t.9\t0\t.9\nLiabilities associated with the ESUP 1 (see Note L)\t40.6\t0\t0\t40.6\nTotal liabilities\t40.6\t.9\t0\t41.5\n", "q10k_tbl_89": "\t2019\t2018\nAccounts receivable\t75.2\t19.6\nInventory\t63.2\t26.2\nProperty plant and equipment\t82.3\t28.2\nGoodwill (see Note D)\t566.3\t28.1\nOther intangible assets (see Note D)\t\t\nCustomer relationships (5 to 15-year life)\t378.9\t19.4\nTechnology (5 to 15-year life)\t173.3\t4.9\nTrademarks and trade names (15-year life)\t67.1\t2.7\nNon-compete agreements and other (5 to 15-year life)\t28.7\t1.9\nOther current and long-term assets\t29.4\t.8\nCurrent liabilities\t(48.2)\t(11.9)\nDeferred income taxes\t(127.4)\t(9.9)\nLong-term liabilities\t(23.7)\t(.8)\nNet cash consideration\t1265.1\t109.2\n", "q10k_tbl_90": "Year Ended\tNumber of Acquisitions\tSegment\tProduct/Service\nDecember 31 2020\tNone\t\t\nDecember 31 2019\t2\tBedding Products Furniture Flooring & Textile Products\tA leader in proprietary specialized foam technology primarily for the bedding and furniture industries; Manufacturer and distributor of geosynthetic and mine ventilation products\nDecember 31 2018\t3\tFurniture Flooring & Textile Products; Specialized Products\tManufacturer and distributor of home and garden products; Manufacturer and distributor of silt fence; Engineered hydraulic cylinders\n", "q10k_tbl_91": "\tYear Ended December 31\t\n\t2019\t2018\nNet trade sales\t4774.1\t4870.8\nNet earnings\t335.5\t283.9\nEPS basic\t2.49\t2.11\nEPS diluted\t2.49\t2.10\n", "q10k_tbl_92": "\t\tExpiring at various dates through:\t\tTotal USD Equivalent Notional Amount\t\tAs of December 31 2020\t\t\t\t\nDerivatives Designated as Hedging Instruments\t\t\tAssets\t\t\t\tLiabilities\t\n\tOther Current Assets\t\tSundry\t\tOther Current Liabilities\t\tOther Long-Term Liabilities\nCash flow hedges:\t\t\t\t\t\t\t\t\t\t\nCurrency hedges:\t\t\t\t\t\t\t\t\t\t\nFuture USD sales/purchases of Canadian Chinese European South Korean Swiss and UK subsidiaries\t\tJun 2022\t\t149.3\t\t6.3\t\t.1\t1.2\t.1\nFuture MXN purchases of a USD subsidiary\t\tJun 2022\t\t9.3\t\t.7\t\t.1\t0\t0\nFuture DKK sales of Polish subsidiary\t\tJun 2022\t\t18.5\t\t0\t\t0\t.5\t.1\nFuture EUR sales of Chinese and UK subsidiaries\t\tJun 2022\t\t46.7\t\t0\t\t0\t.2\t.1\nTotal cash flow hedges\t\t\t\t\t\t7.0\t\t.2\t1.9\t.3\nFair value hedges:\t\t\t\t\t\t\t\t\t\t\nIntercompany and third party receivables and payables exposed to multiple currencies (DKK EUR MXN USD and ZAR) in various countries (CAD CNY GBP PLN and USD)\t\tJun 2021\t\t49.5\t\t.3\t\t0\t.1\t0\nTotal fair value hedges\t\t\t\t\t\t.3\t\t0\t.1\t0\nDerivatives not designated as hedging instruments\t\t\t\t\t\t\t\t\t\t\nNon-deliverable hedges (EUR and USD) exposed to the CNY\t\tDec 2021\t\t14.4\t\t.4\t\t0\t0\t0\nHedge of USD receivable on CAD subsidiary\t\tJan 2021\t\t18.5\t\t0\t\t0\t.2\t0\nTotal derivatives not designated as hedging instruments\t\t\t\t\t\t.4\t\t0\t.2\t0\nTotal derivatives\t\t\t\t\t\t7.7\t\t.2\t2.2\t.3\n", "q10k_tbl_93": "\t\tExpiring at various dates through:\t\tTotal USD Equivalent Notional Amount\t\tAs of December 31 2019\t\t\t\nDerivatives Designated as Hedging Instruments\t\t\tAssets\t\t\t\tLiabilities\n\tOther Current Assets\t\tSundry\t\tOther Current Liabilities\t\t\nCash flow hedges:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nCurrency hedges:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nFuture USD sales/purchases of Canadian Chinese European South Korean Swiss and UK subsidiaries\t\tSep 2021\t\t138.5\t\t1.3\t\t.2\t.7\t\t\t\t\t\t\nFuture MXN purchases of a USD subsidiary\t\tJun 2021\t\t9.8\t\t.5\t\t.1\t0\t\t\t\t\t\t\nFuture DKK sales of Polish subsidiary\t\tJun 2021\t\t21.1\t\t.3\t\t0\t0\t\t\t\t\t\t\nFuture EUR sales of Chinese and UK subsidiaries\t\tJun 2021\t\t29.9\t\t.7\t\t0\t0\t\t\t\t\t\t\nTotal cash flow hedges\t\t\t\t\t\t2.8\t\t.3\t.7\t\t\t\t\t\t\nFair value hedges:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nIntercompany and third party receivables and payables exposed to multiple currencies (DKK EUR MXN USD and ZAR) in various countries (CAD CHF CNY GBP PLN and USD)\t\tMay 2020\t\t112.0\t\t.8\t\t0\t.1\t\t\t\t\t\t\nTotal fair value hedges\t\t\t\t\t\t.8\t\t0\t.1\t\t\t\t\t\t\nDerivatives not designated as hedging instruments\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nNon-deliverable hedges (EUR and USD) exposed to the CNY\t\tDec 2020\t\t10.1\t\t.1\t\t0\t0\t\t\t\t\t\t\nHedge of USD receivable on CAD subsidiary\t\tJan 2020\t\t5.0\t\t0\t\t0\t.1\t\t\t\t\t\t\nTotal derivatives not designated as hedging instruments\t\t\t\t\t\t.1\t\t0\t.1\t\t\t\t\t\t\nTotal derivatives\t\t\t\t\t\t3.7\t\t.3\t.9\t\t\t\t\t\t\n", "q10k_tbl_94": "\tIncome Statement Caption\tAmount of (Gain) Loss Recorded in Income for the Year Ended December 31\t\t\nDerivatives Designated as Hedging Instruments\t2020\t2019\t2018\nInterest rate cash flow hedges\tInterest expense\t4.5\t4.4\t4.3\nCurrency cash flow hedges\tNet trade sales\t1.1\t2.7\t(2.0)\nCurrency cash flow hedges\tCost of goods sold\t(.1)\t(1.6)\t.4\nCurrency cash flow hedges\tOther (income) expense net\t0\t.1\t0\nTotal cash flow hedges\t\t5.5\t5.6\t2.7\nFair value hedges\tOther (income) expense net\t(.2)\t.8\t1.2\nDerivatives Not Designated as Hedging Instruments\tOther (income) expense net\t.2\t.1\t(1.6)\nTotal derivative instruments\t\t5.5\t6.5\t2.3\n", "q10k_tbl_95": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nLitigation contingency accrual - Beginning of period\t.7\t1.9\t.4\nAdjustment to accruals - expense\t.1\t.6\t1.8\nCurrency\t(.1)\t0\t0\nCash payments\t(.2)\t(1.8)\t(.3)\nLitigation contingency accrual - End of period\t.5\t.7\t1.9\n", "q10k_tbl_96": "Year ended December 31 (Amounts in millions except per share data)\tFirst 14\tSecond 2\tThird 35\tFourth 6\tTotal\n2020\t\t\t\t\t\nNet trade sales\t1045.5\t845.1\t1207.6\t1182.0\t4280.2\nGross profit\t222.8\t146.3\t266.8\t258.6\t894.5\nEarnings before income taxes\t60.7\t2.4\t126.9\t130.9\t320.9\nNet earnings (loss)\t45.7\t(6.1)\t104.9\t103.2\t247.7\n(Earnings) attributable to noncontrolling interest net of tax\t0\t0\t(.1)\t0\t(.1)\nNet earnings (loss) attributable to Leggett & Platt Inc. common shareholders\t45.7\t(6.1)\t104.8\t103.2\t247.6\nNet earnings (loss) per share attributable to Leggett & Platt Inc. common shareholders\t\t\t\t\t\nBasic\t.34\t(.05)\t.77\t.76\t1.82\nDiluted\t.34\t(.05)\t.77\t.76\t1.82\n2019\t\t\t\t\t\nNet trade sales\t1155.1\t1213.2\t1239.3\t1144.9\t4752.5\nGross profit\t233.0\t269.7\t275.5\t272.4\t1050.6\nEarnings before income taxes\t78.2\t114.1\t123.0\t114.8\t430.1\nNet earnings\t61.1\t86.3\t99.6\t86.9\t333.9\nLoss (earnings) attributable to noncontrolling interest net of tax\t.1\t(.1)\t0\t(.1)\t(.1)\nNet earnings attributable to Leggett & Platt Inc. common shareholders\t61.2\t86.2\t99.6\t86.8\t333.8\nNet earnings per share attributable to Leggett & Platt Inc. common shareholders\t\t\t\t\t\nBasic\t.46\t.64\t.74\t.64\t2.48\nDiluted\t.45\t.64\t.74\t.64\t2.47\n", "q10k_tbl_97": "Column A\tColumn B\t\tColumn C\tColumn D\t\tColumn E\nDescription\tBalance at Beginning of Period\t\tAdditions (Credited) to Cost and Expenses\tDeductions\t\tBalance at End of Period\nYear ended December 31 2020\t\t\t\t\t\t\nAllowance for doubtful receivables\t26.8\t1\t17.1\t1.9\t2\t42.0\nTax valuation allowance\t16.8\t\t2.5\t1.2\t\t18.1\nYear ended December 31 2019\t\t\t\t\t\t\nAllowance for doubtful receivables\t20.2\t\t2.8\t(.5)\t2\t23.5\nTax valuation allowance\t13.2\t\t1.5\t(2.1)\t\t16.8\nYear ended December 31 2018\t\t\t\t\t\t\nAllowance for doubtful receivables\t4.9\t\t16.7\t1.4\t2\t20.2\nTax valuation allowance\t24.2\t\t(7.8)\t3.2\t\t13.2\n", "q10k_tbl_98": "Exhibit No.\tDocument Description\n2.1****\tStock Purchase Agreement by and among Leggett & Platt Incorporated Elite Comfort Solutions Inc. and Elite Comfort Solutions LP dated November 6 2018 filed November 7 2018 as Exhibit 2.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845) Schedules to the Stock Purchase Agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Stock Purchase Agreement contains a list briefly identifying the omitted schedules. Leggett agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request.\n3.1\tRestated Articles of Incorporation of the Company as of May 13 1987 with Amendments dated May 12 1993 and May 20 1999; filed March 11 2004 as Exhibit 3.1 to the Company's Form 10-K for the year ended December 31 2003 are incorporated by reference. (SEC File No. 001-07845)\n3.2\tBylaws of the Company as amended through February 24 2021 filed February 24 2021 as Exhibit 3.2.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.1\tArticle III of the Company's Restated Articles of Incorporation as amended filed as Exhibit 3.1 hereto is incorporated by reference.\n4.2\tSenior Indenture dated May 6 2005 between the Company and U.S. Bank National Association (successor in interest to The Bank of New York Mellon Trust Company NA which was successor in interest to JPMorgan Chase Bank N.A.) as Trustee filed May 10 2005 as Exhibit 4.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.2.1\tTri-Party Agreement under the May 6 2005 Senior Indenture between the Company The Bank of New York Mellon Trust Company NA (successor in interest to JPMorgan Chase Bank N.A.) (as Prior Trustee) and U.S. Bank National Association (as Successor Trustee) dated February 20 2009 filed February 25 2009 as Exhibit 4.3.1 to the Company's Form 10-K for the year ended December 31 2008 is incorporated by reference. (SEC File No. 001-07845)\n4.3\tForm of $500000000 4.40% Senior Notes due 2029 issued pursuant to the Senior Indenture dated May 6 2005 filed March 7 2019 as Exhibit 4.3 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.4\tForm of $500000000 3.50% Senior Notes due 2027 issued pursuant to the Senior Indenture dated May 6 2005 filed November 16 2017 as Exhibit 4.3 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.5\tForm of $300000000 3.80% Senior Notes due 2024 issued pursuant to the Senior Indenture dated May 6 2005 filed November 10 2014 as Exhibit 4.3 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.6\tForm of $300000000 3.40% Senior Notes due 2022 issued pursuant to the Senior Indenture dated May 6 2005 filed August 15 2012 as Exhibit 4.3 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n4.7**\tThe Company's Description of Capital Stock registered under Section 12 of the Securities Exchange Act of 1934.\n", "q10k_tbl_99": "Exhibit No.\tDocument Description\n10.1*\tSeverance Benefit Agreement between the Company and Karl G. Glassman dated May 9 2017 filed May 11 2017 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.2*\tSeverance Benefit Agreement between the Company and J. Mitchell Dolloff dated May 9 2017 filed May 11 2017 as Exhibit 10.4 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.3*\tSeverance Benefit Agreement between the Company and Jeffrey L. Tate dated August 6 2019 filed August 6 2019 as Exhibit 10.11 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.4*\tSeparation Agreement between the Company and Jeffrey L. Tate dated August 6 2019 filed August 6 2019 as Exhibit 10.12 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.5*\tLimited Waiver - Separation Agreement between the Company and Jeffrey L. Tate dated April 9 2020 filed April 14 2020 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.6***\tSeverance Benefit Agreement between the Company and Steven K. Henderson dated September 18 2017.\n10.7*\tAgreement between the Company and Steven K. Henderson dated November 4 2019 (regarding annual award of restricted stock units) filed February 24 2021 as Exhibit 10.4 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.8*\tAmended and Restated Severance Benefit Agreement between the Company and Scott S. Douglas dated December 30 2008 filed February 22 2018 as Exhibit 10.7 to the Company's Form 10-K is incorporated by reference. (SEC File No. 001-07845)\n10.9*\tDescription of Personal Use of Corporate Aircraft by Karl G. Glassman dated May 8 2017 filed May 11 2017 as Exhibit 10.8 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.10*\tForm of Indemnification Agreement approved by the shareholders of the Company and entered into between the Company and its directors and executive officers filed March 28 2002 as Exhibit 10.11 to the Company's Form 10-K for the year ended December 31 2001 is incorporated by reference. (SEC File No. 001-07845)\n10.11*\tSummary Sheet of Executive Cash Compensation filed February 24 2021 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.12*\tSummary Sheet of Director Compensation filed June 30 2020 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13*\tThe Company's Flexible Stock Plan amended and restated effective as of May 15 2020 filed March 31 2020 as an Appendix to the Company's Proxy Statement is incorporated by reference. (SEC File No. 001-07845)\n10.13.1*\tForm of Non-Qualified Stock Option Award Agreement pursuant to the Company's Flexible Stock Plan filed November 4 2014 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n", "q10k_tbl_100": "Exhibit No.\tDocument Description\n10.13.2*\t2021 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2021 grants and thereafter) filed February 24 2021 as Exhibit 10.5 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.3*\t2020 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2020 grants) filed February 19 2020 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.4*\t2019 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2019 grants) filed March 13 2019 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.5*\t2018 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2018 grants) filed November 9 2017 as Exhibit 10.7 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.6*\t2018 Form of Interim Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2018 grants) filed November 9 2017 as Exhibit 10.8 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.7*\t2017 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan (applicable to 2017 grants) filed November 10 2016 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.8*\tForm of Director Restricted Stock Agreement pursuant to the Company's Flexible Stock Plan filed August 7 2008 as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended June 30 2008 is incorporated by reference. (SEC File No. 001-07845)\n10.13.9*\tForm of Director Restricted Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan filed February 24 2012 as Exhibit 10.9.7 to the Company's Form 10-K for the year ended December 31 2011 is incorporated by reference. (SEC File No. 001-07845)\n10.13.10*\t2021 Form of Restricted Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan filed February 24 2021 as Exhibit 10.6 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.11*\t2020 Form of Restricted Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan filed February 19 2020 as Exhibit 10.3 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.12*\tForm of Restricted Stock Unit Award Agreement applicable to Jeffrey L. Tate (applicable to 2019 grant) filed August 6 2019 as Exhibit 10.8 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.13***\tForm of Restricted Stock Unit Award applicable to Steven K. Henderson (applicable to 2018 and 2019 grants).\n10.13.14***\tRestricted Stock Unit Award between the Company and Steven K. Henderson dated September 18 2017.\n", "q10k_tbl_101": "Exhibit No.\tDocument Description\n10.13.15*\t2017 Form of Profitable Growth Incentive Award Agreement and Terms and Conditions (applicable to 2017 grants) filed November 10 2016 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.13.16*\tAward Formula for the 2017-2018 Profitable Growth Incentive Program filed March 27 2017 as Exhibit 10.5 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.14*\tThe Company's 2020 Key Officers Incentive Plan effective January 1 2020 filed February 19 2020 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.14.1*\t2021 Award Formula under the Company's 2020 Key Officers Incentive Plan filed February 24 2021 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.14.2*\t2020 Award Formula under the Company's 2020 Key Officers Incentive Plan filed February 19 2020 as Exhibit 10.4 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.15*\t2019-2021 Business Unit Profit Sharing Award Agreement between the Company and Steven K. Henderson filed February 24 2021 as Exhibit 10.9 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.16*\t2018-2020 Business Unit Profit Sharing Award Agreement between the Company and Steven K. Henderson filed February 24 2021 as Exhibit 10.8 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.17*\tThe Company's Deferred Compensation Program effective November 6 2017 filed November 9 2017 as Exhibit 10.6 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.18*\tThe Company's Executive Deferred Stock Program filed March 31 1999 as Exhibit 10.16 to the Company's Form 10-K for the year ended December 31 1998 is incorporated by reference. (SEC File No. 001-07845)\n10.19*\tThe Company's 2005 Executive Stock Unit Program as amended and restated effective February 23 2016 filed February 25 2016 as Exhibit 10.15 to the Company's Form 10-K for the year ended December 31 2015 is incorporated by reference. (SEC File No. 001-07845)\n10.20*\tDescription of the long-term disability arrangement between the Company and Karl G. Glassman filed February 25 2016 as Exhibit 10.16 to the Company's Form 10-K for the year ended December 31 2015 is incorporated by reference. (SEC File No. 001-07845)\n10.21*\tThe Company's Retirement K Excess Program amended and restated on November 26 2007 effective as of January 1 2007 filed February 26 2008 as Exhibit 10.19 to the Company's Form 10-K for the year ended December 31 2007 is incorporated by reference. (SEC File No. 001-07845)\n10.22\tThird Amended and Restated Credit Agreement dated as of December 12 2018 among the Company JP Morgan Chase Bank N.A. as administrative agent and the Lenders named therein including Revolving Loans and Tranche A Term Loans filed December 14 2018 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n", "q10k_tbl_102": "Exhibit No.\tDocument Description\n10.22.1\tAmendment No. 1 to the Third Amended and Restated Credit Agreement dated May 6 2020 among the Company JP Morgan Chase Bank N.A. as administrative agent and the Lenders named therein filed May 7 2020 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.23\tCommercial Paper Issuing and Paying Agent Agreement between U.S. Bank National Association and the Company dated December 2 2014 including Master Note filed December 5 2014 as Exhibit 10.1 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n10.24\tForm of Amended and Restated Commercial Paper Dealer Agreement filed December 5 2014 as Exhibit 10.2 to the Company's Form 8-K is incorporated by reference. (SEC File No. 001-07845)\n21**\tSchedule of Subsidiaries of the Company.\n23**\tConsent of Independent Registered Public Accounting Firm.\n24**\tPower of Attorney executed by members of the Company's Board of Directors regarding this Form 10-K.\n31.1**\tCertification of Karl G. Glassman pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated February 24 2021.\n31.2**\tCertification of Jeffrey L. Tate pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated February 24 2021.\n32.1**\tCertification of Karl G. Glassman pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated February 24 2021.\n32.2**\tCertification of Jeffrey L. Tate pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated February 24 2021.\n101.INS***\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH***\tInline XBRL Taxonomy Extension Schema.\n101.CAL***\tInline XBRL Taxonomy Extension Calculation Linkbase.\n101.DEF***\tInline XBRL Taxonomy Extension Definition Linkbase.\n101.LAB***\tInline XBRL Taxonomy Extension Label Linkbase.\n101.PRE***\tInline XBRL Taxonomy Extension Presentation Linkbase.\n104\tCover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n"}{"bs": "q10k_tbl_29", "is": "q10k_tbl_7", "cf": "q10k_tbl_30"}None
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
.
Commission File Number 001-07845
LEGGETT & PLATT, INCORPORATED
(Exact name of registrant as specified in its charter)
Missouri
44-0324630
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
No. 1 Leggett Road
Carthage,
Missouri
64836
(Address of principal executive offices)
(Zip code)
Registrant’s telephone number, including area code: (417) 358-8131
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class
Trading Symbol
Name of each exchange on
which registered
Common Stock, $.01 par value
LEG
New York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐No☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The aggregate market value of the voting stock held by non-affiliates of the registrant (based on the closing price of our common stock on the New York Stock Exchange) on June 30, 2020 was $4,552,973,000.
There were 132,987,415 shares of the registrant’s common stock outstanding as of February 16, 2021.
DOCUMENTS INCORPORATED BY REFERENCE
Part of Item 10, and all of Items 11, 12, 13, and 14 of Part III, are incorporated by reference from the Company’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May 25, 2021.
This Annual Report on Form 10-K and our other public disclosures, whether written or oral, may contain “forward-looking” statements including, but not limited to: the profitable growth and operating performance of the Company; projections of Company revenue, income, earnings, capital expenditures, dividends, capital structure, cash from operations, cash repatriation, restructuring-related costs, tax impacts or other financial items, effective tax rate; maintenance of indebtedness under the commercial paper program; litigation exposure; LIFO reserve; our ability to deleverage; possible plans, goals, objectives, prospects, strategies, or trends concerning future operations; statements concerning future economic performance, possible goodwill or other asset impairment; access to liquidity; compliance with the debt covenant requirements; amount of fixed cost savings; raw material availability and pricing; supply chain disruptions; labor; nonwoven fabric, microchips, and chemical shortages; employee termination costs; and the underlying assumptions relating to the forward-looking statements. These statements are identified either by the context in which they appear or by use of words such as “anticipate,” “believe,” “estimate,” “expect,” “guidance,” “intend,” “may,” “plan,” “project,” “should,” or the like. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by the cautionary statements described in this provision.
Any forward-looking statement reflects only the beliefs of the Company or its management at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties, and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. For all of these reasons, forward-looking statements should not be relied upon as a prediction of actual future events, objectives, strategies, trends, or results.
Readers should review Item 1A Risk Factors in this Form 10-K for a description of important factors that could cause actual events or results to differ materially from forward-looking statements. It is not possible to anticipate and list all risks, uncertainties, and developments which may affect our future operations or our performance, or which otherwise may cause actual events or results to differ materially from forward-looking statements. However, the known material risks and uncertainties include the following:
•the ongoing adverse impact on our trade sales, earnings, liquidity, cash flow, and financial condition caused by the COVID-19 pandemic which has had and, depending on the length and severity of the pandemic and the timing and effectiveness of any vaccines, could continue, in varying degrees, to materially negatively impact, among other things (i) the demand for our products and our customers’ products, growth rates in the industries in which we participate, and opportunities in those industries; (ii) our manufacturing facilities’ ability to remain open, or fully operational, obtain necessary raw materials and parts, maintain appropriate labor levels, and ship finished products to customers; (iii) operating costs related to pay and benefits for our terminated employees; (iv) our ability to collect trade and other notes receivables in accordance with their terms due to customer bankruptcy, financial difficulties or insolvency; (v) impairment of goodwill and long-lived assets; (vi) restructuring and related costs; and (vii) our ability to borrow under our revolving credit facility, including our ability to comply with the restrictive covenants in our credit facility that may limit our operational flexibility and our ability to pay our debt when it comes due;
•inability to “deleverage” after the ECS acquisition in the expected timeframe, due to increases or decreases in our capital needs, which may vary depending on a variety of factors, including, without limitation, demand for our products, cash flow, any acquisition or divestiture activity, our working capital needs, and capital expenditures;
•our ability to manage working capital;
•adverse changes in consumer confidence, housing turnover, employment levels, interest rates, trends in capital spending, and the like;
•factors that could impact raw materials and other costs, including the availability and pricing of steel scrap and rod, chemicals, nonwoven fabrics, microchips, the availability of labor, wage rates, and energy costs;
•our ability to pass along raw material cost increases through increased selling prices;
•price and product competition from foreign (particularly Asian and European) and domestic competitors;
•our ability to maintain profit margins if our customers change the quantity and mix of our components in their finished goods;
•our ability to access the commercial paper market;
•the speed at which vaccines for the COVID-19 virus are administered, the percentage of the population vaccinated, and the effectiveness of those vaccines;
•our ability to maintain and grow the profitability of acquired companies;
•adverse changes in political risk, and U.S. or foreign laws, regulations, or legal systems (including tax law changes);
•cash generation sufficient to pay the dividend;
•our ability to realize deferred tax assets on our balance sheet;
•cash repatriation from offshore accounts;
•tariffs imposed by the U.S. government that result in increased costs of imported raw materials and products that we purchase;
•our ability to maintain the proper functioning of our internal business processes and information systems through technology failures or otherwise;
•our ability to avoid modification or interruption of our information systems through cybersecurity breaches;
•the loss of business with one or more of our significant customers;
•our ability to comply with environmental, social, and governance responsibilities;
•litigation risks related to various contingencies including antitrust, intellectual property, contract disputes, product liability and warranty, taxation, environmental, and workers’ compensation expense;
•our borrowing costs and access to liquidity resulting from credit rating changes;
•business disruptions to our steel rod mill;
•risks related to operating in foreign countries, including, without limitation, credit risks, ability to enforce intellectual property rights, currency exchange rate fluctuations, industry labor strikes, increased customs and shipping rates, inconsistent interpretation, and enforcement of foreign laws;
•risks relating to the United Kingdom’s exit from the European Union (commonly known as “Brexit”);
•the continued effectiveness and enforcement of anti-dumping and countervailing duties on the import of innersprings and finished mattresses;
•our ability to realize gain from the sale of real estate;
•our ability to comply with privacy and data protection regulations; and
•our ability to comply with climate change laws and regulations.
Leggett & Platt, Incorporated ("Leggett & Platt," "Company," "we," "us", or "our"), a pioneer of the steel coil bedspring, has become an international diversified manufacturer that conceives, designs, and produces a wide range of engineered components and products found in many homes and automobiles. As discussed below, our operations are organized into 15 business units, which are divided into seven groups under our three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products.
Overview of Our Segments
Bedding Products Segment
BEDDING GROUP
Steel Rod
Drawn Wire
U.S. Spring
Specialty Foam
Adjustable Bed
International Spring
Machinery
Our Bedding Products segment has its roots in the Company's founding in 1883 with the manufacture of steel coil bedsprings. Today, we support our customers' needs from raw materials to components to finished mattresses and foundations to distribution and fulfillment. Our innerspring, specialty foam, and finished product development and production capabilities allow us to create value at each point, from raw materials all the way to private label finished goods and delivery to the consumer.
We operate a steel rod mill in the U.S. with historical annual output of about 500,000 tons. A substantial majority of that output has been used by our two U.S. wire mills that have supplied virtually all of the wire consumed by our other domestic businesses. We also supply steel rod and wire to trade customers that operate in a broad range of markets.
We are a major supplier of adjustable beds, with domestic manufacturing, distribution, e-commerce fulfillment, and global sourcing capabilities. We also produce machinery used by bedding manufacturers in the production and assembly of their finished products. Our range of products offers our customers a single source for many of their component and finished product needs.
These innovative proprietary products and our efficient and low-cost vertical integration have made us the largest U.S. manufacturer in many of these businesses. We strive to understand what drives consumer purchases in our markets and focus our product development activities on meeting end-consumer needs. We believe we attain a cost advantage from efficient manufacturing methods, internal production of key raw materials, large-scale production, and purchasing leverage. Sourcing components and finished products from us allows our customers to focus on designing, merchandising, and marketing their products.
Innersprings (sets of steel coils, bound together, that form the core of a mattress)
•
Proprietary specialty foam for use primarily in bedding and furniture
•
Private label finished mattresses, often sold compressed and boxed
•
Ready-to-assemble mattress foundations
•
Wire forms for mattress foundations
•
Adjustable beds
•
Machines that we use to shape wire into various types of innersprings
•
Industrial sewing and quilting machines
•
Mattress-packaging and glue-drying equipment
CUSTOMERS
•
We used about 70% of our wire output to manufacture our own products in 2020, with the majority going to our U.S. innerspring operations
•
Various industrial users of steel rod and wire
•
Manufacturers of finished bedding (mattresses and foundations)
•
Bedding brands and mattress retailers
•
E-commerce retailers
•
Big box retailers, department stores, and home improvement centers
Specialized Products Segment
AUTOMOTIVE GROUP
Automotive
AEROSPACE PRODUCTS GROUP
Aerospace Products
HYDRAULIC CYLINDERS GROUP
Hydraulic Cylinders
Our Specialized Products segment designs, manufactures, and sells products including automotive comfort and convenience systems, tubing and fabricated assemblies for the aerospace industry, and hydraulic cylinders for the material handling, construction, and transportation industries. In our Automotive business, our technical capability and deep customer engagement allows us to compete on critical functionality, such as comfort, size, weight, and noise. We believe our reliable product development and launch capability, coupled with our global footprint, makes us a trusted partner for our Tier 1 and Original Equipment Manufacturer (OEM) customers.
Mechanical and pneumatic lumbar support and massage systems for automotive seating
•
Seat suspension systems
•
Motors and actuators, used in a wide variety of vehicle power features
•
Cables
Aerospace Products Group
•
Titanium, nickel and stainless-steel tubing, formed tube, tube assemblies, and flexible joint components, primarily used in fluid conveyance systems
Hydraulic Cylinders Group
•
Engineered hydraulic cylinders
CUSTOMERS
•
Automobile OEMs and Tier 1 suppliers
•
Aerospace OEMs and suppliers
•
Mobile equipment OEMs, primarily serving material handling and construction markets
Furniture, Flooring & Textile Products Segment
HOME FURNITURE GROUP
Home Furniture
WORK FURNITURE GROUP
Work Furniture
FLOORING & TEXTILE PRODUCTS GROUP
Flooring Products
Fabric Converting
Geo Components
In our Furniture, Flooring & Textile Products segment, we design, manufacture, and distribute a wide range of components and finished products for residential and commercial markets, and select markets for structural fabrics and geo components. We supply components used by home and work furniture manufacturers to provide comfort, motion, and style in their finished products, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion and hard surface flooring underlayment, as well as fabrics and geo components used in a variety of applications.
Steel mechanisms and motion hardware (enabling furniture to recline, tilt, swivel, rock, and elevate) for reclining chairs, sofas, sleeper sofas, and lift chairs
•
Springs and seat suspensions for chairs, sofas, and loveseats
Work Furniture Group
•
Components and private label finished goods for collaborative soft seating
•
Bases, columns, back rests, casters, and frames for office chairs, and control devices that allow chairs to tilt, swivel, and elevate
Flooring & Textile Products Group
•
Carpet cushion and hard surface flooring underlayment (made from bonded scrap foam, fiber, rubber, and prime foam)
•
Structural fabrics for mattresses, residential furniture, and industrial uses
•
Geo components (synthetic fabrics and various other products used in ground stabilization, drainage protection, erosion, and weed control)
CUSTOMERS
•
Manufacturers of upholstered furniture
•
Office furniture manufacturers
•
Flooring retailers and distributors, including big box retailers and home improvement centers
•
Contractors, landscapers, road construction companies, retailers, and government agencies using or selling geo components
•
Mattress and furniture producers and manufacturers of packaging, filtration, and draperies
Our operations are comprised of 132 manufacturing facilities located in 17 countries around the world. Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. To reflect how we manage our businesses, and in conjunction with the change in executive officer leadership, our management organizational structure and all related internal reporting changed effective January 1, 2020. As a result, our segment reporting changed to reflect the new structure. These segment changes are retrospectively applied to all prior periods presented. The modified structure consists of three segments, seven business groups, and 15 business units organized as follows:
Bedding Products Segment 1
Specialized Products Segment 2
Furniture, Flooring & Textile Products Segment 3
BEDDING GROUP
AUTOMOTIVE GROUP
HOME FURNITURE GROUP
Steel Rod
Automotive
Home Furniture
Drawn Wire
U.S. Spring
AEROSPACE PRODUCTS GROUP
WORK FURNITURE GROUP
Specialty Foam
Aerospace Products
Work Furniture
Adjustable Bed
International Spring
HYDRAULIC CYLINDERS
FLOORING & TEXTILE
Machinery
GROUP
PRODUCTS GROUP
Hydraulic Cylinders
Flooring Products
Fabric Converting
Geo Components
1 The new segment consists of the former Residential Products and Industrial Products segments, plus the former Consumer Products Group (which is renamed the Adjustable Bed business unit), minus the former Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group). The Bedding Products Segment generated 48% of our trade sales during 2020.
2 The Specialized Products segment generated 21% of our trade sales during 2020.
3 The new segment consists of the former Furniture Products segment, plus the former Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group) minus the former Consumer Products Group (which is renamed the Adjustable Bed business unit). The Furniture, Flooring & Textile Products Segment generated 31% of our trade sales in 2020.
Strategic Priorities
Primary Financial Metric
Total Shareholder Return (TSR), relative to peer companies, is a primary financial measure that we use to assess long-term performance. TSR = (Change in Stock Price + Dividends)/Beginning Stock Price. Our goal is to achieve TSR in the top third of the S&P 500 companies over rolling three-year periods through an approach that employs four TSR drivers: revenue growth, margin expansion, dividends, and share repurchases.
Our incentive programs reward return and cash generation, and profitable growth. Senior executives participate in a TSR-based incentive program (based on our performance compared to a group of approximately 300 peers). For information about our TSR targets, see the discussion under "Total Shareholder Return" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations on page 34.
The expected long-term contribution to TSR from revenue growth is 6-9%. From 2018 to 2020, we generated combined unit volume and acquisition growth of 2% per year on average. We also benefited slightly from commodity inflation, resulting in total revenue growth of 3% per year on average.
We will continue to make investments to support expansion in current businesses and product lines where sales are growing profitably. We also envision periodic acquisitions that add capabilities in these businesses or provide opportunities to enter more diverse, faster-growing, and higher margin markets. We expect all acquisitions to have a clear strategic rationale, a sustainable competitive advantage, a strong fit with the Company, and be in attractive and growing markets.
Returning Cash to Shareholders
From 2018 to 2020, we generated $1.71 billion of operating cash, and we returned much of this cash to shareholders in the form of dividends ($610 million) and share repurchases ($139 million). Our top priorities for use of cash are organic growth (capital expenditures), dividends, and strategic acquisitions. Historically, after funding those priorities, we generally repurchased stock with remaining available cash. Currently, because of the debt level increases in connection with the ECS acquisition in early 2019, we have and expect to continue to focus instead on deleveraging by temporarily limiting share repurchases, controlling the pace of acquisition spending, and using operating cash flow to repay debt.
For information about dividends and share repurchases, see the discussion under "Pay Dividends" and "Repurchase Stock" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations beginning on page 53.
2020 Market Volatility Challenges and Our Response
The impact of the COVID-19 pandemic began in January 2020, directly affecting our operations in China, as well as the global supply chain. The crisis accelerated, impacting virtually all geographies by mid-March. We took action to:
•Implement comprehensive safety protocols,
•Monitor and manage supply chain risks,
•Align our variable cost structure to demand levels,
•Significantly reduce fixed costs and cut capital expenditures,
•Prioritize accounts receivable collections and inventory management, and
•Amend the financial covenant in our revolving credit facility to provide additional liquidity.
These efforts helped to strengthen cash flow and protect our balance sheet as we moved through the year. By mid-second quarter 2020, we began to see rapid recovery in businesses serving home-related markets. With consumers spending less on travel and entertainment, they began investing more in their homes. This benefited our Bedding, Home Furniture, Flooring, and Textiles businesses.
In addition, the long-term trends in the bedding market that led us to acquire Elite Comfort Solutions (ECS) in early 2019 accelerated as a result of the pandemic. Consumers have increasingly purchased compressed mattresses, including hybrids, online and through various retail channels. Because of ECS, we have benefited from this shift to an omni-channel environment.
As demand recovered in Bedding in the third quarter of 2020, we began to face global constraints.
•Nonwoven fabrics used in the production of ComfortCore® innersprings were diverted into use for face masks, hospital gowns, and other personal protective equipment.
•Labor availability was impacted by the pandemic itself, as well as government restrictions and relief programs. Labor issues were amplified by the rapid change in our production needs. Our operations shifted from a near shutdown in early April to customer demand in excess of pre-pandemic levels in a matter of weeks across many of our businesses.
•Chemical shortages emerged as producers of the chemicals used to make foam were impacted by tropical storms and hurricanes and reported a variety of equipment and production issues.
We made progress on both the nonwoven fabrics and labor shortages as we moved through 2020. Chemical shortages are ongoing and are expected to continue through at least mid-2021.
As sales recovered in the third and fourth quarters of 2020, we maintained most of the fixed cost reductions, adding costs only to support higher volumes and future growth opportunities. Margins benefited from this cost discipline. We ended the year with fixed cost savings of approximately $90 million.
For more information regarding the impact of COVID-19 on our business, refer to "COVID-19 Impacts on our Business" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations beginning on page 35.
Acquisitions
2020
There were no acquisitions of businesses in 2020. However, we paid approximately $8 million of additional consideration associated with an upholstered office furniture business in Poland acquired in a prior year.
2019
In January 2019, we completed the acquisition of ECS for cash consideration of approximately $1.25 billion. ECS is a leader in proprietary specialized foam technology, primarily for the bedding and furniture industries. ECS operates a vertically-integrated model, developing many of the chemicals and additives used in foam production, producing specialty foam, and manufacturing private label finished products. These innovative specialty foam products include finished mattresses sold through both traditional and online channels, mattress components, mattress toppers and pillows, and furniture foams. ECS operates within the Bedding Products segment.
In December 2019, we acquired a manufacturer and distributor of a wide range of geosynthetic fabrics, grids, and erosion control products for cash consideration of approximately $21 million. The acquisition is reported in our Geo Components business unit within the Furniture, Flooring & Textile Products segment.
2018
In January 2018, we acquired Precision Hydraulic Cylinders (PHC), a leading global manufacturer of engineered hydraulic cylinders primarily for the materials handling market. The total consideration paid was $87 million. PHC serves a market of mainly large OEM customers utilizing highly engineered components with long product life-cycles that represent a small part of the end product’s cost. PHC operates within the Specialized Products segment.
We also acquired two small Geo Components businesses for total consideration of $22 million. They manufacture and distribute silt fencing and home and garden products.
For more information regarding our acquisitions, please refer to Note R on page 125 of the Notes to Consolidated Financial Statements.
In 2020, we divested two small businesses in our Bedding Products segment: a specialty wire operation in our Drawn Wire business, with annual sales of $30 million, and the final operation in our former Fashion Bed business, with annual sales of $15 million. The businesses were sold for an aggregate selling price of approximately $11 million. There were no divestitures in 2019 or 2018.
Foreign Operations
The percentages of our trade sales related to products manufactured outside the United States for the previous three years were 37%, 34%, and 34% in 2018, 2019, and 2020, respectively. Sales by ECS (acquired in January 2019) are not included in the 2018 total. Substantially all ECS sales are in the United States. Our Specialized Products segment has a larger percentage of trade sales manufactured outside the United States, relative to our other two segments, which ranged between 80% and 85% over the last three years.
Our international operations are principally located in Europe, China, Canada, and Mexico. Our products in these foreign locations primarily consist of:
Europe
•
Innersprings for mattresses
•
Lumbar and seat suspension systems for automotive seating and actuators for automotive applications
•
Seamless and welded tubing and fabricated assemblies for aerospace applications
•
Select lines of private label finished furniture
•
Machinery and equipment designed to manufacture innersprings for mattresses
China
•
Lumbar and seat suspension systems for automotive seating
•
Cables, motors, and actuators for automotive applications
•
Recliner mechanisms and bases for upholstered furniture
•
Work furniture components, including chair bases and casters
•
Innersprings for mattresses
Canada
•
Lumbar supports for automotive seats
•
Fabricated wire for the furniture and automotive industries
•
Work furniture chair controls and bases
Mexico
•
Lumbar and seat suspension systems for automotive seating
•
Adjustable beds
•
Innersprings and fabricated wire for the bedding industry
As of December 31, 2020, we had 132 manufacturing facilities; 84 located in the U.S. and 48 located in 16 foreign countries, as shown below. We also had various sales, warehouse, and administrative facilities. However, our manufacturing plants are our most important properties.
Dependence on Market Demand for Key Product Families
Our business is dependent upon the market demand for, and continued sale of various product families. The following table shows our approximate percentage of trade sales by product family for the last three years which indicate the degree of dependence upon market demand:
Product Families
2020
2019
2018
Bedding Group 1
48
%
48
%
42
%
Flooring & Textile Products Group
19
16
17
Automotive Group
17
17
19
Home Furniture Group
7
8
9
Work Furniture Group
5
6
7
Aerospace Products Group
2
3
4
Hydraulic Cylinders Group
2
2
2
1 The Company acquired ECS, a leader in proprietary specialized foam technology, primarily for the bedding and furniture industries, in January 2019.
The Company does not have a material amount of sales derived from government contracts subject to renegotiation of profits or termination at the election of any government. As such, our business is not materially dependent upon governmental customers.
Sources and Availability of Raw Materials
The products we manufacture require a variety of raw materials. We believe that worldwide supply sources are readily available for all the raw materials we use, except for nonwoven fabrics, microchips, and certain chemicals as explained below. Among the most important raw materials that we use are:
•
Various types of steel, including scrap, rod, wire, sheet, and stainless
•
Chemicals used in foam production
•
Foam scrap
•
Woven and nonwoven fabrics
•
Titanium and nickel-based alloys and other high strength metals
•
Electronic systems
As a result of the COVD-19 pandemic, the U.S. and other governments have ordered that certain nonwoven fabrics used to produce ComfortCore® innersprings be prioritized to produce medical supplies, resulting in shortages of the fabrics for non-medical applications. These shortages and strong bedding demand have caused us temporarily to be unable to supply full industry demand for ComfortCore®. We are engaging with customers in an effort to work through these issues. The shortages have resulted in higher pricing for nonwoven fabrics. If we are unable to obtain the fabrics, cannot pass the cost along to our customers, are required to modify existing contracts to accommodate customers, or pay damage claims to customers, our results of operations may be negatively impacted.
Because of the shift of production by semiconductor microchip manufacturers to consumer electronics, such as laptops and tablets for home schooling and home offices, and away from automotive applications during the COVID-19 related automotive industry shutdowns in 2020, currently there is a shortage of microchips in the automotive industry. Our Automotive Group uses the microchips in seat comfort products, and to a lesser extent in motors and actuators. Although, to date, our Automotive Group has been able to obtain an adequate supply of microchips, we are dependent on our suppliers to deliver these microchips in accordance with our production schedule, and a shortage of the microchips can disrupt our operations and our ability to deliver products to our customers. Also, because of the industry shortage, automotive OEMs and other suppliers have not been able to secure an adequate supply of microchips, and as a result have reduced their production of automobiles or parts, which in turn has recently reduced, and may continue to reduce our sale
of products. If we cannot secure an adequate supply of microchips in our supply chain, and the microchips cannot be sourced from a different supplier, or the automotive OEMs and other suppliers continue to reduce their production as a result of such shortage, this may negatively impact our sales, earnings, and financial condition.
Although not directly related to the pandemic, we have experienced supply shortages with certain chemicals used in foam production. This has impacted our ability to supply specialty foam. The shortages have also resulted in higher pricing for the chemicals. If we are unable to obtain the chemicals or pass the cost along to our customers, our results of operations may be negatively impacted.
We supply our own raw materials for many of the products we make. For example, we produce steel rod that we make into steel wire, which we then use to manufacture innersprings and foundations for mattresses. We supply a substantial majority of our domestic steel rod requirements through our own rod mill. Our wire drawing mills supply nearly all of our U.S. requirements for steel wire.
Customer Concentration
We serve thousands of customers worldwide, sustaining many long-term business relationships. In 2020, our largest customer accounted for approximately 6% of our consolidated revenues. Our top 10 customers accounted for approximately 35% of these consolidated revenues. The loss of one or more of these customers could have a material adverse effect on the Company as a whole, and on the respective segment in which the customer’s sales are reported, including each of our segments.
Patents and Trademarks
As of December 31, 2020, we had 1,517 patents issued, 567 patents in process, 997 trademarks registered and 89 trademarks in process. No single patent or group of patents, or trademark or group of trademarks, is material to our operations as a whole. A significant number of our patents relate to products manufactured in each of our three segments, while over half of our trademarks relate to products manufactured by the Bedding Products segment. We do not have any patent or group of patents, the expiration of which would have a material negative effect on our results of operations or financial condition.
Our patents and trademarks include intellectual property acquired with ECS in January 2019 related to the protection of technology around various foam applications. These include specialty polyols and additives that enhance foam performance by reducing heat retention, improving durability and diminishing odor.
One of our strongest performing product categories across the Company is ComfortCore®, our fabric-encased innerspring coils used in hybrid and other mattresses. Our ComfortCore® volume continues to grow, and represented over 60% of our U.S. innerspring units in 2020. A growing number of our ComfortCore® innersprings contain a feature we call Quantum® Edge. These are narrow-diameter, fabric-encased coils that form a perimeter around an innerspring set, replacing a rigid foam perimeter in a finished mattress. In 2020, over 50% of our ComfortCore® innersprings in the U.S. had the Quantum® Edge feature, and Quantum® Edge continues to grow.
With the January 2019 acquisition of ECS, we gained important proprietary technologies in the production of specialty foams, primarily for the bedding and furniture industries. ECS formulates many of the chemicals and additives used in foam production. These branded, specialty polyols and additives enhance foam performance by reducing heat retention, improving durability and diminishing odor. These innovations enable us to create quality mattresses that can be compressed, and we have a significant amount of intellectual property around these specialty chemical formulations.
Many of our other businesses are engaged in product development activities to protect our market position and support ongoing growth.
Human Capital Management
We understand that the Company’s long-term success depends on our ability to attract and retain diverse talent, develop that talent, and plan for future succession. We also recognize the importance of keeping our employees safe. In the following sections, we discuss our efforts to achieve these objectives.
Our Employees
Our Employees. At year-end 2020, we had approximately 20,400 employees, of which 15,100 were engaged in production and 11,400 were international employees (including 5,700 in Asia and 2,600 in Europe). Of these employees, 7,100 were in Bedding Products, 7,700 were in Specialized Products, and 4,800 were in Furniture, Flooring & Textile Products, with the remainder at our corporate office or in other roles. At year-end 2019, we had approximately 22,000 employees.
Collective Bargaining. At year-end 2020, 17% of our employees were represented by labor unions that collectively bargain for work conditions, wages, or other issues. We did not experience any material work stoppage related to labor contract negotiations during 2020. Management is not aware of circumstances likely to result in a material work stoppage related to contract negotiations with labor unions during 2021.
Our Ability to Attract, Recruit, and Retain Employees
Although we operate in competitive labor markets, we strive to attract, recruit, and retain employees through competitive compensation and benefit programs, learning and development opportunities that support career growth and advancement opportunities, and employee engagement initiatives that foster a strong Company culture.
Competitive Compensation and Benefits. In addition to cash compensation, we offer customary benefits in accordance with local regulatory requirements, and in addition many of our locations offer health and wealth benefits to eligible employees and their dependents which may include, but are not limited to, health insurance, dental and vision plans, retirement savings with matching contributions, and income protection benefits, such as short and long-term disability insurance, life insurance, and paid leave benefits that include vacation, personal time, and holidays. In the U.S., we offer a well-being program which includes counseling, legal and financial consultation, work-life assistance, and crisis intervention services. Additionally, in the U.S. and Canada, our employees are eligible to participate in discount stock purchase plans. We also provide cash and equity incentive programs for key management employees based on our performance. Finally, where applicable, we support the work-life balance of our employees, including part-time jobs, flexible hours, and remote working.
Employee Engagement. At many of our locations, we analyze employee satisfaction and attempt to enhance engagement and mitigate related risks. We periodically conduct employee surveys at certain operations to evaluate the employee relations environment. Voluntary employee turnover data is gathered and analyzed. The results of surveys and data analyses are used to assess human capital risks and identify opportunities for more meaningful employee engagement. From this analysis, action plans are developed, and branch-level initiatives are adopted to improve engagement and reduce turnover. We also engage with our employees through our Ethics Hotline, which serves as a grievance-reporting mechanism. Employees can express concerns, confidentially and anonymously, regarding possible violations of ethics, law, or our policies.
Turnover Rates. We rely on a diverse workforce to sustain our strategies and deliver our results of operations. In order to achieve our goals, this workforce must be stable. In 2020, our voluntary turnover rate in the U.S. was 17.3%, which we believe is reasonably comparable to average voluntary turnover rates of manufacturers in the industries in which we operate.
Our Inclusion, Diversity and Equity
We continue to foster a culture of inclusion, diversity, and equity in which everyone is respected, valued, and has an equal opportunity to contribute, thrive, and advance. Our commitment is unwavering, and we are steadfast in maintaining our focus on building a workforce that represents the many customers we serve and the communities in which we operate around the world.
Fostering an Inclusive and Diverse Culture. Diverse teams generate better ideas and make better decisions. We believe that companies who lead in inclusion and diversity also lead financially. We have created a strategy and action plans designed to foster an inclusive and diverse culture that aligns with our values and priorities.
Inclusion and Diversity Plan. In 2020, we established an inclusion and diversity team comprised of a broad group of employees including senior management. The team established long-term strategies and action plans designed to: (i) ensure that we have a safe and inclusive workplace; (ii) equip our people to attract, develop, retain, and reward a diverse and inclusive workforce; (iii) be an inclusive and equitable corporate citizen; (iv) develop a governance and accountability model that will sustain inclusion and diversity; and (v) enhance our business results.
Equal Opportunity. We are committed to equal opportunity and base workplace decisions solely on merit, qualifications, and other job-related, neutral, non-discriminatory criteria. We provide equal employment opportunity without regard to age, race, color, sex, sexual orientation, gender identity, national origin, citizenship, pregnancy, religion, disability, military status, genetic information, or other status protected by law. We are committed to providing a harassment-free work environment, and we prohibit retaliation, intimidation, threats, coercion, or discrimination against individuals who, in good faith, complain of unlawful discrimination or harassment.
Our Workforce Health and Safety
Workforce Health. We are focused on protecting our employees against COVID-19 and ensuring a healthy work environment. To respond to COVID-19, we formed a cross-functional crisis response team. Our business leaders manage items such as developing health and safety protocols, responding to health and safety issues, interpreting government orders, and securing personal protective equipment. We developed a comprehensive handbook to set and communicate work procedures and changes to production necessary to facilitate COVID-19 health and safety measures, including proper social distancing. Our business leaders have implemented training and change management initiatives to drive and maintain new ways of operating. When employees test positive for COVID-19, we follow adopted procedures including enhanced disinfecting that targets applicable areas. The affected employee is required to observe a quarantine period, monitor symptoms, and follow medical guidance prior to returning to work. Contact tracing is performed to identify employees who had direct contact with the affected employee. If direct contacts are identified, those employees must self-isolate, monitor symptoms, and follow medical guidance prior to returning to work.
Workplace Safety. We are also dedicated to the safety of our employees through prevention, education, and awareness with the objective of reducing, or even eliminating, workplace injuries through accident investigation and process safety. Our dedicated staff of professionals supports safety management at our manufacturing facilities, including implementation of a comprehensive program called “SafeGuard.” The SafeGuard program develops relevant job hazard analyses, which are
undertaken on many processes and used to develop comprehensive job procedures. This allows us to implement job-specific health and safety practices across our business.
Continuing Education and Training
Developing Our Talent. Although some of our established learning and development programs, as disclosed below, were less active during 2020 due to the impact of the COVID-19 pandemic, they continue to be part of our ongoing, long-term strategy, which is focused on growing talent throughout all levels of our organization, including technical/skilled positions, supervisory and management levels, and future leaders.
Frontline Supervisor Training Program. We have launched a global Frontline Supervisor Training Program designed to help managers at branch locations develop leadership skills necessary to enhance strong employee engagement. The program stresses communication, conflict resolution, respect in the workplace, and safety.
Intern Program. We have also developed an intern program that is centered on students exploring a future with us, and our attracting a deep and diverse talent pool that can grow with us from intern to entry-level hire.
Health and Safety Training. Our manufacturing employees receive new hire safety training, annual refresher safety training, weekly “tool box” talks regarding safety and training, and job-specific safety training based on the jobs hazards analysis developed from our SafeGuard program.
Succession Development
Management and Leadership Positions. Our commitment to having strong managers and leadership in critical roles across the company continues to serve us well. Our values and culture guide our talent initiatives which are designed to create a pipeline of strong, high performing leadership candidates to serve in progressively important roles throughout the Company. Our internal promotion rate over the last three years for corporate officer positions was 89%. We are building on our success in these areas and continue to push our succession development processes to new levels to allow us to adapt and grow.
Trends in Market Demand and Competition
Demand Trends for our Products. Because of the COVID-19 pandemic, various governments in Asia, Europe, North America, and elsewhere have instituted, and may reinstitute, quarantines, shelter-in-place or stay-at-home orders, or restrictions on public gatherings, as well as limitations on social interactions. The resulting economic downturn has had, and could further have, an effect on the demand for our products and our customers’ products, growth rates in the industries in which we participate, and opportunities in these industries. The impact of the COVID-19 pandemic began in January 2020, directly affecting our operations in China, as well as the global supply chain. The crisis accelerated, impacting virtually all geographies by mid-March. By mid-second quarter 2020, we began to see rapid recovery in businesses serving home-related markets. With consumers spending less on travel and entertainment, they began investing more in their homes. This benefited our Bedding, Home Furniture, Flooring, and Textiles businesses.We ended 2020 with fourth quarter sales in many of our businesses above fourth quarter 2019 levels.
Competition. Many companies offer products that compete with those we manufacture and sell. The number of competing companies varies by product family, but many of the markets for our products are highly competitive. We tend to attract and retain customers through innovation, product quality, competitive pricing, and customer service. Many of our competitors try to win business primarily on price, but, depending upon the particular product, we experience competition based on quality and performance as well. In general, our competitors tend to be smaller, private companies.
We believe we are the largest U.S.-based manufacturer, in terms of revenue, of the following:
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Bedding components
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Automotive seat support and lumbar systems
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Specialty bedding foams and private label finished mattresses
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Components for home furniture and work furniture
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Flooring underlayment
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Adjustable beds
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Bedding industry machinery
We continue to face competitive pressure as some of our customers source a portion of their components and finished products from low cost countries. In addition to lower labor rates, competitors may benefit at times from lower raw material costs. They may also benefit from currency factors and more lenient regulatory climates. We typically remain price competitive, even versus many foreign manufacturers, as a result of our efficient operations, automation, vertical integration in steel and wire, logistics and distribution efficiencies, and large scale purchasing of raw materials and commodities.
As a diversified manufacturer, we generally have not experienced significant seasonality. However, unusual economic factors in any given year such as inflation and deflation, along with acquisitions and divestitures, can create sales variability and obscure the underlying seasonality of our businesses. Historically, our operating cash flows are stronger in the fourth quarter, primarily related to the timing of cash collections from customers and payments to vendors.
Governmental Regulations
Our operations are subject to various federal, state, local, and international laws and regulations, including environmental regulations. We have policies intended to ensure that our operations are conducted in compliance with applicable laws and regulations. While we cannot predict policy changes by various regulatory agencies or unexpected operational or other developments, management expects that compliance with these laws and regulations will not have a material adverse effect on our capital expenditures (including those capital expenditures for environmental control facilities), earnings, and competitive position.
Internet Access to Information
We routinely post information for investors under the Investor Relations section of our website (www.leggett.com). Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports are made available, free of charge, on our website as soon as reasonably practicable after electronically filed with, or furnished to, the SEC. In addition to these reports, the Company’s Financial Code of Ethics, Code of Business Conduct and Ethics, and Corporate Governance Guidelines, as well as charters for the Audit, Compensation, and Nominating & Corporate Governance Committees of our Board of Directors, can be found on our website under the Corporate Governance section. Information contained on our website does not constitute part of this Annual Report on Form 10-K.
Unless indicated otherwise, the information concerning our industries contained in this Annual Report is based on our general knowledge of and expectations concerning the industries. Our market share is based on estimates using our internal data, data from various industry analyses, internal research, and adjustments and assumptions that we believe to be reasonable. We have not independently verified data from industry analyses and cannot guarantee their accuracy or completeness.
Item 1A. Risk Factors.
Investing in our securities involves risk. Set forth below and elsewhere in this report are risk factors that could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this report. We may amend or supplement these risk factors from time to time by other reports we file with the SEC.
OPERATIONAL RISK FACTORS
The COVID-19 pandemic has had, and could further have, an adverse impact to (i) our manufacturing operations' ability to remain open, or fully operate, (ii) our ability to obtain necessary raw materials and parts, maintain appropriate labor levels, and ship finished products to customers; and (iii) our operating costs related to pay and benefits for terminated employees; all of which, in the aggregate, have had, and could further have, a material negative impact on our trade sales, earnings, liquidity, cash flow, financial condition, and our stock price.
We have manufacturing facilities in the United States and 16 other countries. All of these countries have been affected by the COVID-19 pandemic. All of our facilities are open and running at this time. From time to time we have some capacity restrictions on our plants due to governmental orders in various 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 measures concerning shelter-in-place or stay-at-home orders, public gatherings and human interactions, mandatory closures of retail establishments that sell our products or our customers’ products, travel restrictions, and restrictions on the import or export of products.
The U.S. and other governments have ordered that certain nonwoven fabrics used to produce ComfortCore® innersprings be prioritized to produce medical supplies, resulting in shortages of fabrics used for non-medical applications. These shortages and strong bedding demand have caused the Company temporarily to be unable to supply full industry demand for ComfortCore®. We are engaging with customers in an effort to work through these issues. The shortages have resulted in higher pricing for nonwoven fabrics. If we are unable to obtain the fabrics, cannot pass the cost along to our customers, are required to modify existing contracts to accommodate customers, or pay damage claims to customers, our results of operations may be negatively impacted. As demand has improved, we also have experienced some temporary labor shortages. We are in the process of hiring additional employees and adding equipment, particularly in our U.S. Spring business, to meet this demand.
Because of the shift of production by semiconductor microchip manufacturers to consumer electronics, such as laptops and tablets for home schooling and home offices, and away from automotive applications during the COVID-19 related automotive industry shutdowns in 2020, currently there is a shortage of microchips in the automotive industry. Our Automotive Group uses the microchips in seat comfort products, and to a lesser extent in motors and actuators. Although, to date, our Automotive Group has been able to obtain an adequate supply of microchips, we are dependent on our suppliers to deliver these microchips in accordance with our production schedule, and a shortage of the microchips can disrupt our operations and our ability to deliver products to our customers. Also, because of the industry shortage, automotive OEMs and other suppliers have not been able to secure an adequate supply of microchips, and as a result have reduced their production of automobiles or parts, which in turn has recently reduced, and may continue to reduce our sale of products. If we cannot secure an adequate supply of microchips in our supply chain, and the microchips cannot be sourced from a different supplier, or the automotive OEMs and other suppliers continue to reduce their production as a result of such shortage, this may negatively impact our sales, earnings, and financial condition.
Depending on the length and severity of the COVID-19 pandemic, and the timing and effectiveness of any vaccines, our ability to keep our manufacturing operations open or 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. The continued realization of these risks to our manufacturing operations, labor force, and supply chain could also increase labor, commodity, and energy costs.
Also, some facilities have experienced problems delivering products to customers because of travel restrictions and disruption in logistics necessary to import, export, or transfer products across borders. Currently, our supply chains have also been hampered by congested ports.
When our employees have tested positive for COVID-19, we follow governmental orders and internally adopted procedures which include enhanced disinfecting that targets areas that have likely exposure to COVID-19. The employee is required to observe a quarantine period, monitor symptoms, and follow medical guidance prior to returning to work. Contact tracing is performed to identify any other employees who had direct contact with the employee who tested positive for COVID-19. If any direct contacts are identified, those employees must also self-isolate, monitor symptoms, and follow medical guidance prior to returning to work. 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.
In connection with reduced demand for our products in certain business units, we decreased the size of our workforce worldwide. We incurred severance costs of $7 million in 2020 and we do not expect any additional material charges. However, if circumstances change because of lack of demand, additional governmental capacity restrictions related to our facilities or otherwise, we may incur future material separation costs.
Business disruptions to our steel rod mill, if coupled with an inability to purchase an adequate and/or timely supply of quality steel rod from alternative sources, could have a material negative impact on our Bedding Products segment and Company results of operations.
We purchase steel scrap from third party suppliers. This scrap is converted into steel rod in our mill in Sterling, Illinois. Our steel rod mill has historically had annual output of approximately 500,000 tons, a substantial majority of which has been used internally by our wire mills, which convert the steel rod into drawn steel wire. This wire is used in the production of many of our products, including mattress innersprings.
A disruption to the operation of, or supply of steel scrap to, our steel rod mill could require us to purchase steel rod from alternative supply sources, subject to market availability. Ongoing trade action by the United States government, along with the existence of antidumping and countervailing duty orders against multiple countries, could result in reduced market availability and/or higher cost of steel rod.
If we experience a disruption to our ability to produce steel rod in our mill, coupled with a reduction of adequate and/or timely supply from alternative market sources of quality steel rod, we could experience a material negative impact on our Bedding Products segment and the Company's results of operations.
FINANCIAL RISK FACTORS
The COVID-19 pandemic has had, and could further have, an adverse impact on the collection of trade and other notes receivables in accordance with their terms due to customer bankruptcy, financial difficulties, or insolvency.
Bankruptcy, financial difficulties, or insolvency caused by the COVID-19 pandemic, or otherwise, can and has occurred with some of our customers which can impact their ability to pay their debts to us. As of December 31, 2020, we had a $25 million allowance for doubtful accounts ($23 million on a note receivable and $2 million on trade accounts receivable) associated with a customer in our Bedding Products segment who is experiencing financial difficulty and liquidity problems. This customer was placed on nonaccrual status in 2018 and became delinquent in quarterly interest payments in the first quarter of 2020.
In addition to the customer referenced above, many of our customers and other third parties have been adversely affected by the social and governmental restrictions and limitations related to the COVID-19 pandemic. As such, we
increased our allowance for doubtful accounts by $20 million in the first quarter of 2020, including $9 million for the customer referenced above. We had modest activity for the remainder of 2020, and our bad debt expense for the year ended December 31, 2020 was $17 million.If these parties suffer significant financial difficulty, they may be unable to pay their debts to us, they may reject their contractual obligations to us under bankruptcy laws or otherwise, or we may have to negotiate significant discounts and/or extend financing terms with these parties. If we are unable to collect trade receivables and other notes receivables on a timely basis, this inability will require additional provisions for bad debt and result in a negative impact on our earnings, liquidity, cash flow and financial condition.
Our goodwill and other long-lived assets are subject to potential impairment which could negatively impact our earnings.
A significant portion of our assets consists of goodwill and other long-lived assets, the carrying value of which may be reduced if we determine that those assets are impaired. At December 31, 2020, goodwill and other intangible assets represented $2.1 billion, or 44% of our total assets. In addition, net property, plant, and equipment, operating lease right-of-use assets, and sundry assets totaled $1.1 billion, or 22% of total assets.
We review our reporting units for potential goodwill impairment in the second quarter as part of our annual goodwill impairment testing, and more often if an event or circumstance occurs making it likely that impairment exists. In addition, we test for the recoverability of long-lived assets at year end, and more often if an event or circumstance indicates the carrying value may not be recoverable. We conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations.
The 2020 goodwill impairment testing resulted in a $25 million non-cash goodwill impairment charge in the second quarter of 2020 with respect to our Hydraulic Cylinders reporting unit, which is a part of the Specialized Products segment. Demand for hydraulic cylinders is dependent upon capital spending for material handling equipment.
The impairment charge reflects the complete write-off of the goodwill associated with the Hydraulic Cylinders reporting unit and will not result in future cash expenditures. Although we do not believe that a triggering event related to the impairment of goodwill or other long-lived assets occurred in the first quarter of 2020, the anticipated longer-term economic impacts of COVID-19 lowered expectations of future revenue and profitability causing its fair value to fall below its carrying value. We concluded on July 30, 2020, as part of our normal second quarter 2020 annual goodwill impairment testing and in connection with the preparation and review of the second quarter 2020 financial statements, that an impairment charge was required with respect to this reporting unit. We also evaluated other long-lived assets associated with this unit for impairment; no impairments were indicated other than goodwill.
Of the remaining six reporting units, three had fair values in excess of carrying value of less than 100%.
• Fair value for our Bedding reporting unit exceeded carrying value by 68%. Our 2019 acquisition of ECS is part of our Bedding reporting unit, and goodwill for our Bedding reporting unit was $857 million at December 31, 2020.
• Fair value for our Aerospace reporting unit exceeded carrying value by 51%. Goodwill for the Aerospace reporting unit was $59 million at December 31, 2020.
• Fair value for our Work Furniture reporting unit exceeded carrying value by 25%. Goodwill for the Work Furniture reporting unit was $97 million at December 31, 2020.
If there is a prolonged adverse economic impact from the COVID-19 pandemic, or otherwise, we may not be able to achieve projected performance levels. Although we do not believe that a triggering event has occurred, internal forecasts and industry data suggest that economic impacts of COVID-19 for the aerospace industry may be longer than previously expected during the second quarter impairment testing. We are continuing to monitor all factors impacting this industry. If actual results materially differ from the assumptions and estimates used in the goodwill and long-lived asset valuation calculations, we could incur future impairment charges. These non-cash charges could have a material negative impact on our earnings.
For more information regarding potential goodwill and other long-lived asset impairment, please refer to Note C on page 90 of the Notes to Consolidated Financial Statements.
The COVID-19 pandemic could have an adverse impact to our ability to access the commercial paper market, and has had, and could further have, an adverse impact on our ability to borrow under our credit facility, including our ability to comply with the restrictive covenants in our credit facility.
The COVID-19 pandemic could have an adverse impact on our liquidity. Our inability to issue commercial paper in appropriate amounts and tenor, for cash management purposes, could cause us to borrow under our revolving credit facility which serves as support for our commercial paper program. If this were to happen, we would incur higher interest costs.
The credit facility is a multi-currency facility maturing in January 2024, providing us the ability, from time to time subject to certain restrictive covenants and customary conditions, to borrow, repay, and re-borrow up to $1.2 billion. The credit facility also provided for a one-time draw of up to $500 million under a five-year term loan facility, which we fully borrowed in January 2019 to consummate the ECS acquisition.
Because of the economic impacts of the COVID-19 pandemic on our business, effective May 6, 2020, we amended the credit facility to, among other things, change the restrictive borrowing covenants. The prior leverage ratio covenant required us to maintain, as of the last day of each quarter, a leverage ratio of consolidated funded indebtedness to trailing 12-month consolidated EBITDA (each as defined in the credit facility) of not greater than 3.50 to 1.00. The leverage ratio covenant was changed in two ways: (i) the calculation of the ratio now subtracts unrestricted cash (as defined in the credit facility) from consolidated funded indebtedness; and (ii) the ratio levels, calculated as of the last day of the applicable fiscal quarter, were changed to 4.75 to 1.00 for each fiscal quarter end date through March 31, 2021; 4.25 to 1.00 at June 30, 2021; 3.75 to 1.00 at September 30, 2021; and 3.25 to 1.00 at December 31, 2021 and thereafter. In addition, the amount of total secured debt limit was changed from 15% to 5% of our total consolidated assets until December 31, 2021, at which time it will revert back to 15%. Various interest rate terms were also changed. The impact on our interest expense will depend upon our ability to access the commercial paper market, and if so, the degree of that access. The credit facility also contains an anti-cash hoarding provision that limits borrowing if the Company has a consolidated cash balance (as defined in the credit facility) in excess of $300 million without planned expenditures.
If our earnings are reduced because of the COVID-19 pandemic or otherwise, the covenants in the credit facility will reduce our borrowing capacity, both under the credit facility or through commercial paper issuances. Depending on the degree of earnings reduction, our liquidity could be materially negatively impacted. This covenant may also restrict our current and future operations, including (i) our flexibility to plan for, or react to, changes in our businesses and industries; and (ii) our ability to use our cash flows, or obtain additional financing, for future working capital, capital expenditures, acquisitions, or other general corporate purposes.
Also, if we fail to comply with the covenants specified in the credit facility, we may trigger an event of default, in which case the lenders would have the right to: (i) terminate their commitment to provide additional loans under the credit facility; and (ii) declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. Additionally, our senior notes contain cross-default provisions which could make outstanding amounts under the senior notes immediately payable in the event of an acceleration of amounts due under the credit facility following a material uncured default. If debt under the credit facility or senior notes were to be accelerated, we may not have sufficient cash to repay this debt, which would have an immediate material adverse effect on our business, results of operations, and financial condition.
We may not be able to realize deferred tax assets on our balance sheet depending upon the amount and source of future taxable income.
Our ability to realize deferred tax assets on our balance sheet is dependent upon the amount and source of future taxable income. As of December 31, 2020, we had $134 million of deferred tax assets ($152 million less an $18 million valuation allowance). After netting of deferred tax liabilities, the net amount presented within Sundry assets on our Consolidated Balance Sheets is $11 million. It is possible the amount and source of our taxable income could materially change in the future. Particularly, our mix of earnings by taxing jurisdiction may materially change in that we may have more or less taxable income generated in North America, Europe, or Asia as compared to prior years. This change may impact our underlying assumptions on which valuation allowances are established and negatively affect future period earnings and balance sheets. As a result, we may not be able to realize deferred tax assets on our balance sheet.
Costs of raw materials could negatively affect our profit margins and earnings.
Raw material cost increases (and our ability to respond to cost increases through selling price increases) can significantly impact our earnings. We typically have short-term commitments from our suppliers; accordingly, our raw material costs generally move with the market. When we experience significant increases in raw material costs, we typically implement price increases to recover the higher costs. Inability to recover cost increases (or a delay in the recovery time) can negatively impact our earnings. Conversely, if raw material costs decrease, we generally pass through reduced selling prices to our customers. Reduced selling prices combined with higher cost inventory can reduce our profit margins and earnings.
Steel is our principal raw material. The global steel markets are cyclical in nature and have been volatile in recent years. This volatility can result in large swings in pricing and margins from year to year.
As a producer of steel rod, we are also impacted by volatility in metal margins (the difference between the cost of steel scrap and the market price for steel rod). If market conditions cause scrap costs and rod pricing to change at different rates (both in terms of timing and amount), metal margins could be compressed, and this would negatively impact our results of operations.
With the acquisition of ECS, we now have greater exposure to the cost of chemicals, including TDI, MDI, and polyol. We have experienced a shortage of chemicals, and these shortages have resulted in higher pricing. Chemical shortages are expected to continue at least through mid-2021. If we are unable to obtain an adequate supply of chemicals, or cannot purchase them at economically feasible prices and pass the additional cost along to our customers, either the shortages or increased costs may negatively impact our results of operations.
Higher raw material costs could lead some of our customers to modify their product designs, changing the quantity and mix of our components in their finished goods and replacing higher-cost components with lower-cost components. If this were to occur, it could negatively impact our results of operations.
Unfair competition could adversely affect our market share, sales, profit margins, and earnings.
We produce innersprings for mattresses that are sold to bedding manufacturers. We produce steel wire rod for consumption by our wire mills (primarily to produce innersprings) and to sell to third parties. We also produce and sell finished mattresses.
Since 2009, there have been antidumping duties on the import of innersprings from China, South Africa, and Vietnam imposed by the Department of Commerce (DOC) and International Trade Commission (ITC) extending through 2024. The DOC and ITC have also imposed antidumping duties and countervailing duties on imports of steel wire rod from various countries, including China. These duties will expire, unless extended, at different times ranging from 2022 to 2025. Also, antidumping duties have been imposed by the DOC and ITC on the import of finished mattresses from China through 2024, and additional preliminary antidumping duties are in place on import of finished mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam, and preliminary countervailing duties on China. If the existing antidumping and countervailing duties are not finalized or extended beyond their current terms and dumping and/or subsidization recurs, or manufacturers in the subject countries circumvent the existing duties through transshipment in other jurisdictions or otherwise, our market share, sales, profit margins, and earnings could be adversely affected.
Our borrowing costs and access to liquidity may be impacted by our credit ratings.
Independent rating agencies evaluate our credit profile on an ongoing basis and have assigned ratings for our long-term and short-term debt. In April 2020, one of three rating agencies, which had our long-term debt rating on negative outlook, lowered that rating by one notch, but changed the outlook to stable. In May 2020, a second rating agency lowered our long-term and short-term ratings by one notch with a stable outlook. In August 2020, we obtained ratings on our long-term and short-term debt from a third rating agency. If we are not able to access the commercial paper market, either partially or completely, we expect to borrow under our credit facility for our liquidity needs but at higher interest costs. Because of the economic impact of the COVID-19 pandemic, our credit ratings could decline further. If this were to occur,
our borrowing costs could increase materially, and our access to sources of liquidity, including the commercial paper market, may be adversely affected.
We are exposed to foreign currency exchange rate risk which may negatively impact our competitiveness, profit margins, and earnings.
International sales have represented a significant percentage of our total sales, which exposes us to currency exchange rate fluctuations. In 2020, 34% of our sales were generated by international operations, primarily in Europe, China, Canada, and Mexico. We expect that a significant amount of our sales will continue to come from outside the United States in the future. Nearly 50 of our manufacturing facilities are located outside the United States. We are also exposed to currency exchange rate fluctuations by our purchase of raw materials and component parts from suppliers in multiple countries.We experience currency-related gains and losses where sales or purchases are denominated in currencies other than the functional currency. As of December 31, 2020, we had foreign exchange rate risk associated with the U.S. Dollar, Mexican Peso, Danish Krone, Euro, South African Rand, Canadian Dollar, Swiss Franc, Chinese Yuan, British Pound Sterling, and the Polish Zloty. If these exchange rates devalue the currency we receive for the sale of our products, or the currency we use to purchase raw materials or component parts from our suppliers, it may have a material adverse effect on our competitiveness, profit margins, and earnings.
For more information regarding currency exchange rate risk, please refer to Note S on page 127 of the Notes to Consolidated Financial Statements.
The COVID-19 pandemic has had, and could further have, an adverse impact to the market demand for our products and our customers’ products, growth rates in the industries in which we participate, and opportunities in those industries.
Because of the COVID-19 pandemic various governments, primarily impacting us in Asia, Europe and North America, and elsewhere have instituted, and may reinstitute quarantines, shelter-in-place or stay-at-home orders, or restrictions on public gatherings as well as limitations on social interactions. These restrictions and limitations have had, and could further have, an adverse effect on the economies and financial markets of the countries where our products, or our customers’ products, are sold. The resulting economic downturn has had, and could further have, an effect on the market demand for our products and our customers’ products, growth rates in the industries in which we participate, and opportunities in those industries. As a result of the decreased market demand, our trade sales, earnings, liquidity, cash flow, and financial condition have been and could be further materially negatively affected.
TECHNOLOGY AND CYBERSECURITY RISK FACTORS
Technology failures or cybersecurity breaches could have a material adverse effect on our operations.
As a manufacturer with 132 production facilities in 17 different countries, primarily in Asia, Europe, North America, and elsewhere, we rely on several on-premise and cloud-based computerized systems and networks to obtain, secure, process, analyze, and manage data, as well as to facilitate the manufacture and distribution of inventory to and from our production facilities. We receive, process, manufacture, and ship orders, manage the billing of and collections from our customers, and manage the accounting for and payment to our vendors. We also have risk associated with the network connectivity and systems for consolidated reporting. Technology failures or security breaches of a new or existing infrastructure could impede normal operations, create system disruptions, or create unauthorized disclosure of confidential information.
We have a formal process in place for both incident response and cybersecurity continuous improvement that includes a cross functional Cybersecurity Oversight Committee. Members of the Cybersecurity Oversight Committee update the Board of Directors quarterly on cyber activity, with procedures in place for interim reporting if necessary.
Although we have not experienced any material technology failures or cybersecurity breaches, we have enhanced our cybersecurity protection efforts over the last few years. We use a third party to periodically benchmark our information security program against the National Institute of Standards and Technology’s Cybersecurity Framework. We provide quarterly cybersecurity training for employees with access to our email and data systems, and we have purchased broad