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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
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)
Missouri44-0324630
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
No. 1 Leggett Road
Carthage,Missouri64836
(Address of principal executive offices)(Zip Code)
(417358-8131
Registrant’s telephone number, including area code
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $.01 par valueLEGNew York Stock Exchange
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 filerSmaller 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes        No   
Common stock outstanding as of May 1, 2024: 134,036,049



LEGGETT & PLATT, INCORPORATED—10-Q
FOR THE PERIOD ENDED March 31, 2024
TABLE OF CONTENTS
 Page
Number
PART I - FINANCIAL INFORMATION
Item 1.
Consolidated Condensed Balance Sheets at March 31, 2024 and December 31, 2023
Consolidated Condensed Statements of Operations for the three months ended March 31, 2024 and 2023
Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023
Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2024 and 2023
Consolidated Condensed Statements of Changes in Equity for the three months ended March 31, 2024 and 2023
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
SIGNATURES





Forward-Looking Statements
This Quarterly Report on Form 10-Q and our other public disclosures, whether written or oral, may contain “forward-looking” statements including, but not limited to: projections of our revenue, income, earnings, capital expenditures, dividends, product demand, capital structure, cash flows from operations, whether we will continue to pay cash dividends, metal margins, cash repatriation, tax impacts, effective tax rate, maintenance of indebtedness under the commercial paper program, litigation exposure, acquisition or disposition activity, industry demand projections, the amount of share repurchases, impact of accounts receivable and payable programs, defined benefit plan contributions, collectability of receivables, cost of property insurance, possible goodwill or other asset impairment, access to liquidity, compliance with debt covenant requirements, raw material and parts availability and pricing, supply chain disruptions, labor, raw material and part shortages, inventory levels, customer requirements, climate-related effects, impacts arising from evaluating opportunities across our business, or other financial items; possible plans, goals, objectives, prospects, strategies, or trends concerning future operations; statements concerning future economic performance; items related to the previously announced restructuring plan (the “Restructuring Plan” or “Plan”) (such as: estimates of the amounts, types, and timing of restructuring and restructuring-related costs (cash and non-cash including inventory obsolescence) and impairment charges; sales reduction; the amount and timing of proceeds from the sale of facilities; the number of facilities to be consolidated); and the underlying assumptions relating to 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 Leggett & Platt 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 our Form 10-K filed February 27, 2024 and in this Form 10-Q 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 common stock price, or which otherwise may cause actual events or results to differ materially from forward-looking statements. However, some of these risks and uncertainties include the following: 
risks and uncertainties related to our previously announced Restructuring Plan, including the preliminary nature of the estimates and the possibility that the estimates may change as our analysis develops and additional information is obtained; our ability to implement the Plan in a timely manner that will positively impact our financial condition and results of operations; our ability to dispose of assets pursuant to the Plan and obtain expected proceeds in a timely manner; the impact of the Plan on relationships with employees, customers, and vendors; factors that may cause us to be unable to achieve the expected benefits of the Plan; and other restructuring, impairment, and related costs in addition to our previously announced Plan;
the adverse impact of delays and non-delivery of raw materials, parts, and finished products in our supply chain from severe weather-related events, natural disaster, fire, explosion, terrorism, geopolitical conflicts, government action, labor strikes, delivery port shutdowns, trucking constraints, pandemics, vendor quality issues, failure by our suppliers to comply with laws and regulations, or other reasons beyond our control;
the demand for our products and our customers’ products, growth rates in the industries in which we participate, and opportunities in those industries as impacted by macroeconomic factors;
adverse changes in consumer confidence, housing turnover, employment levels, interest rates, trends in capital spending, and the like;
the loss of business with one or more of our significant customers;
impairment of goodwill and long-lived assets;
our ability to manage working capital;
1


our ability to borrow under our 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 timely pay our debt;
our ability to comply with new environmental and climate change laws and regulations, the cost of such laws and regulations, and market, technological, and reputational impacts from climate change;
the direct and indirect physical effects of climate change, including severe weather-related events, natural disasters, and changes in climate patterns, on our markets, operations, supply chains, and results;
our ability to collect receivables due to customer bankruptcy, financial difficulties, or insolvency;
our ability to attract, develop, and retain a talented and diverse workforce;
inflationary, deflationary, and other impacts on raw materials and other costs, including the availability and pricing of steel scrap and rod, chemicals, semiconductors, and the adverse impact of wage rates and energy costs;
our ability to maintain or inability to increase the market share in the goods and services we sell or provide;
our ability to pass along raw material cost increases through increased selling prices;
price and product competition from foreign (particularly Asian, European, and Mexican) and domestic competitors;
our ability to maintain profit margins if our customers change the quantity and mix of our products;
our ability to access the commercial paper market and increased borrowing costs due to credit rating changes;
adverse changes in political risk and U.S. or foreign laws, regulations, or legal systems (including tax and trade laws);
our ability to realize deferred tax assets and challenges to tax positions pursuant to ongoing or future audits;
cash repatriation from foreign accounts;
the effectiveness and enforcement of antidumping and countervailing duties on the import of innersprings, steel wire rod, and finished mattresses;
tariffs imposed by the U.S. government that result in increased costs of our imported purchases;
the disruption of the semiconductor industry and our global operations generally from conflict between China and Taiwan;
general global economic and business conditions;
our ability to develop commercially viable and innovative products in response to changes in technology and market developments;
our ability to maintain the proper functioning of our internal business processes and information systems through technology failures or otherwise;
adverse impact from cybersecurity incidents on our business, financial results, supplier or customer relationships, cybersecurity protection and remediation costs, legal costs, insurance premiums, competitiveness, and reputation;
the unauthorized use of artificial intelligence that could expose sensitive Company information, infringe intellectual property rights, violate privacy laws, and harm our reputation;
our ability to comply with environmental, social, and governance responsibilities;
litigation risks related to various contingencies, including antitrust, intellectual property, vehicle-related personal injury, contract disputes, product liability and warranty, taxation, climate change, environmental, and workers’ compensation expense;
business disruptions to our steel rod mill, including but not limited to, a lack of adequate supply of steel scrap, severe weather impacts, natural disasters, fire, and flooding;
risks related to operating in foreign countries, including credit risks, ability to enforce intellectual property rights, currency exchange rate fluctuations, taxation, industry labor strikes, increased customs and shipping rates, asset seizure, business licensing, land use requirements, and inconsistent interpretation and enforcement of foreign laws;
export controls regarding the ability of U.S. companies to export semiconductor chips and equipment to China;
our ability to comply with privacy and data protection regulations;
whether we will continue to pay cash dividends on our common stock; and
the timing and amount of share repurchases.
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
LEGGETT & PLATT, INCORPORATED
Consolidated Condensed Balance Sheets
(Unaudited)
(Amounts in millions)March 31,
2024
December 31,
2023
ASSETS
Current Assets
Cash and cash equivalents$361.3 $365.5 
Trade receivables, net577.4 564.9 
Other receivables, net57.7 72.4 
Inventories807.4 819.7 
Prepaid expenses and other current assets56.5 58.9 
Total current assets1,860.3 1,881.4 
Property, Plant and Equipment—at cost
Machinery and equipment1,482.3 1,488.3 
Buildings and other821.2 820.3 
Land42.2 42.8 
Total property, plant and equipment2,345.7 2,351.4 
Less accumulated depreciation1,573.6 1,570.2 
Net property, plant and equipment772.1 781.2 
Other Assets
Goodwill1,481.6 1,489.8 
Other intangibles, less accumulated amortization of $383.8 and $416.4 as of March 31, 2024 and December 31, 2023, respectively
161.8 167.5 
Operating lease right-of-use assets202.2 193.2 
Sundry136.8 121.4 
Total other assets1,982.4 1,971.9 
TOTAL ASSETS$4,614.8 $4,634.5 
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt and current maturities of long-term debt$303.8 $308.0 
Current portion of operating lease liabilities58.0 57.3 
Accounts payable495.6 536.2 
Accrued expenses229.7 256.8 
Other current liabilities101.2 104.3 
Total current liabilities1,188.3 1,262.6 
Long-term Liabilities
Long-term debt1,772.9 1,679.6 
Operating lease liabilities158.5 150.5 
Other long-term liabilities105.2 106.6 
Deferred income taxes100.4 101.2 
Total long-term liabilities2,137.0 2,037.9 
Commitments and Contingencies
Equity
Common stock2.0 2.0 
Additional contributed capital569.0 575.8 
Retained earnings2,629.6 2,661.1 
Accumulated other comprehensive loss(68.5)(43.7)
Treasury stock(1,843.3)(1,861.9)
Total Leggett & Platt, Inc. equity1,288.8 1,333.3 
Noncontrolling interest.7 .7 
Total equity1,289.5 1,334.0 
TOTAL LIABILITIES AND EQUITY$4,614.8 $4,634.5 
See accompanying notes to consolidated condensed financial statements.
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LEGGETT & PLATT, INCORPORATED
Consolidated Condensed Statements of Operations
(Unaudited)
 
Three Months Ended
 March 31,
(Amounts in millions, except per share data)20242023
Net trade sales$1,096.9 $1,213.6 
Cost of goods sold910.5 995.0 
Gross profit186.4 218.6 
Selling and administrative expenses125.9 116.0 
Amortization of intangibles4.9 16.9 
Net gain from sale of assets(10.2)(.3)
Other (income) expense, net2.8 (3.3)
Earnings before interest and income taxes63.0 89.3 
Interest expense21.6 22.1 
Interest income1.0 1.1 
Earnings before income taxes42.4 68.3 
Income taxes10.8 14.8 
Net earnings31.6 53.5 
(Earnings) attributable to noncontrolling interest, net of tax  
Net earnings attributable to Leggett & Platt, Inc. common shareholders$31.6 $53.5 
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
Basic$.23 $.39 
Diluted$.23 $.39 
Weighted average shares outstanding
Basic136.8 135.9 
Diluted137.3 136.3 
See accompanying notes to consolidated condensed financial statements.
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LEGGETT & PLATT, INCORPORATED
Consolidated Condensed Statements of Comprehensive Income (Loss)
(Unaudited)
 
Three Months Ended
March 31,
(Amounts in millions)20242023
Net earnings$31.6 $53.5 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments(23.5)18.7 
Cash flow hedges(1.5)2.7 
Defined benefit pension plans.2 .2 
Other comprehensive income (loss), net of tax(24.8)21.6 
Comprehensive income (loss)6.8 75.1 
Add: comprehensive income attributable to noncontrolling interest .1 
Comprehensive income (loss) attributable to Leggett & Platt, Inc.$6.8 $75.2 
See accompanying notes to consolidated condensed financial statements.
5


LEGGETT & PLATT, INCORPORATED
Consolidated Condensed Statements of Cash Flows
(Unaudited)
 Three Months Ended March 31,
(Amounts in millions)20242023
Operating Activities
Net earnings$31.6 $53.5 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation27.9 27.4 
Amortization of intangibles and supply agreements5.0 18.0 
Long-lived asset impairment2.3  
Increase (decrease) in provision for losses on accounts and notes receivable4.9 (2.3)
Writedown of inventories6.4 4.7 
Net gain from disposal of assets(10.2)(.3)
Deferred income tax benefit (expense)1.0 (1.2)
Stock-based compensation10.0 9.7 
Other, net(2.9)6.0 
Changes in working capital, excluding effects from acquisitions and divestitures:
Accounts and other receivables(28.8)(38.4)
Inventories.8 13.7 
Other current assets1.2 (.3)
Accounts payable(35.5)30.8 
Accrued expenses and other current liabilities(19.8)(24.6)
Net Cash (Used for) Provided by Operating Activities(6.1)96.7 
Investing Activities
Additions to property, plant and equipment(25.9)(37.7)
Proceeds from disposals of assets15.2 .5 
Other, net.3 .8 
Net Cash Used for Investing Activities(10.4)(36.4)
Financing Activities
Payments on long-term debt(4.3)(.8)
Change in commercial paper and short-term debt89.2 29.3 
Dividends paid(61.3)(58.3)
Purchases of common stock(4.1)(5.2)
Other, net(1.4)(.6)
Net Cash Provided by (Used for) Financing Activities18.1 (35.6)
Effect of Exchange Rate Changes on Cash(5.8)3.3 
(Decrease) Increase in Cash and Cash Equivalents(4.2)28.0 
Cash and Cash Equivalents—January 1,365.5 316.5 
Cash and Cash Equivalents—March 31,
$361.3 $344.5 
See accompanying notes to consolidated condensed financial statements.
6


LEGGETT & PLATT, INCORPORATED
Consolidated Condensed Statements of Changes in Equity
(Unaudited)
 
 
 Three Months Ended March 31, 2024
 Common Stock & Additional
Contributed
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury
Stock
Noncontrolling
Interest
Total
Equity
Beginning balance, January 1, 2024$577.8 $2,661.1 $(43.7)$(1,861.9)$.7 $1,334.0 
Net earnings 31.6    31.6 
Dividends declared (See Note D)
1.5 (63.1)   (61.6)
Treasury stock purchased   (4.1) (4.1)
Treasury stock issued(20.6)  22.7  2.1 
Other comprehensive income (loss), net of tax (See Note J)
  (24.8)  (24.8)
Stock-based compensation transactions, net of tax12.3     12.3 
Ending balance, March 31, 2024$571.0 $2,629.6 $(68.5)$(1,843.3)$.7 $1,289.5 
 Three Months Ended March 31, 2023
 Common Stock & Additional
Contributed
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury
Stock
Noncontrolling
Interest
Total
Equity
Beginning balance, January 1, 2023$570.5 $3,046.0 $(93.5)$(1,882.3)$.7 $1,641.4 
Net earnings— 53.5 — — — 53.5 
Dividends declared (See Note D)
1.4 (59.9)— — — (58.5)
Treasury stock purchased— — — (5.2)— (5.2)
Treasury stock issued(16.3)— — 18.3 — 2.0 
Other comprehensive income (loss), net of tax (See Note J)
— — 21.7 — (.1)21.6 
Stock-based compensation transactions, net of tax12.3 — — — — 12.3 
Ending balance, March 31, 2023$567.9 $3,039.6 $(71.8)$(1,869.2)$.6 $1,667.1 
See accompanying notes to consolidated condensed financial statements.
7


LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(Amounts in millions, except per share data)
A—Interim Presentation
The interim financial statements of Leggett & Platt, Incorporated (we, us, or our) included herein have not been audited by an independent registered public accounting firm. The statements include all adjustments, including normal recurring accruals, which management considers necessary for a fair statement of our financial position and operating results for the periods presented. We have prepared the statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of results to be expected for an entire year.
The December 31, 2023 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP.
Accounts Receivable and Accounts Payable Programs
We participate in trade receivables sales programs in combination with third-party banking institutions and certain customers. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $50.0 and $60.0 of trade receivables that were sold and removed from our balance sheets at March 31, 2024 and December 31, 2023, respectively.
We sometimes utilize third-party programs that allow our suppliers to be paid earlier at a discount. While these programs assist us in negotiating payment terms with our suppliers, we continue to make payments based on our customary terms. A supplier can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable associated with the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $100.0 at March 31, 2024 and $105.0 at December 31, 2023.
The above items encompass multiple individual programs that are utilized as tools in our cash flow management, and we offer them as options to facilitate customer and vendor operating cycles. Because many of these programs operate independently, and a cessation of all these programs at the same time is not reasonably likely, we do not expect changes in these programs to have a material impact on our operating cash flows or liquidity.
New Accounting Guidance
The Financial Accounting Standards Board (FASB) regularly issues updates to the FASB Accounting Standards Codification that are communicated through issuance of an Accounting Standards Update (ASU). Below is a summary of the ASUs effective for future periods that are most relevant to our financial statements:
To be adopted in future years
ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”: This ASU requires additional disclosures about reportable segments' expenses and other items on an interim and annual basis. This guidance will be effective for annual periods beginning January 1, 2024, and interim periods beginning January 1, 2025. We are currently evaluating the impact of adopting this guidance.
8

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”: This ASU requires disclosure of specific categories in the rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for annual periods beginning January 1, 2025. We are currently evaluating the impact of adopting this guidance.
The FASB has issued accounting guidance, in addition to the issuances discussed above, effective for current and future periods. This guidance did not have a material impact on our current financial statements, and we do not believe it will have a material impact on our future financial statements.
B—Revenue
Revenue by Product Family
We disaggregate revenue by customer group, which is the same as our product families for each of our segments, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. For information on our segment structure, see Note C.
Three Months Ended March 31,
 20242023
Bedding Products 
Bedding Group$448.0 $528.5 
Specialized Products  
Automotive Group210.9 214.3 
Aerospace Products Group45.6 37.9 
Hydraulic Cylinders Group59.4 68.5 
 315.9 320.7 
Furniture, Flooring & Textile Products 
Home Furniture Group72.2 80.3 
Work Furniture Group70.1 70.6 
Flooring & Textile Products Group 190.7 213.5 
 333.0 364.4 
 $1,096.9 $1,213.6 
C—Segment Information
We have three operating segments that supply a wide range of products:
Bedding Products: This segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses for bedding brands and adjustable bed bases. This segment is also vertically integrated into the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external customers. Our trade customers for wire make mechanical springs and many other end products.
Specialized Products: From this segment, we supply lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and heavy construction industries.
Furniture, Flooring & Textile Products: Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion, hard surface flooring underlayment, and textile and geo components.
Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Our Bedding Products and Furniture, Flooring & Textile Products
9

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
segments have an executive vice president or senior vice president, respectively, who has accountability to, and maintains regular contact with, our CEO, who is the chief operating decision maker (CODM). With the retirement of our Specialized Products segment executive vice president in April 2024, our CEO became acting segment manager on a temporary basis for this segment until a permanent replacement is named. The operating results and financial information reported through the segment structure are regularly reviewed and used by the CODM to evaluate segment performance, allocate overall resources, and determine management incentive compensation.
The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. We evaluate performance based on Earnings Before Interest and Taxes (EBIT). Intersegment sales are made primarily at prices that approximate market-based selling prices. Centrally incurred costs are allocated to the segments based on estimates of services used by the segment. Certain of our general and administrative costs and miscellaneous corporate income and expenses are allocated to the segments based on sales or other appropriate metrics. These allocated corporate costs include depreciation and other costs and income related to assets that are not allocated or otherwise included in the segment assets.
A summary of segment results is shown in the following tables:
Trade 1
Sales
Inter-
Segment
Sales
Total
Sales
EBITDepreciation and Amortization
Three Months Ended March 31, 2024
Bedding Products 2
$448.0 $6.4 $454.4 $15.7 $14.6 
Specialized Products 315.9 .4 316.3 23.7 10.1 
Furniture, Flooring & Textile Products333.0 2.5 335.5 23.6 5.3 
Intersegment eliminations and other 3
 2.9 
$1,096.9 $9.3 $1,106.2 $63.0 $32.9 
Three Months Ended March 31, 2023
Bedding Products$528.5 $9.6 $538.1 $33.3 $25.6 
Specialized Products320.7 .4 321.1 28.7 10.7 
Furniture, Flooring & Textile Products364.4 3.1 367.5 28.3 5.8 
Intersegment eliminations and other 3
(1.0)3.3 
$1,213.6 $13.1 $1,226.7 $89.3 $45.4 
1 See Note B for revenue by product family.
2 The lower amortization expense in the three months ended March 31, 2024, is due to the fourth quarter 2023 long-lived asset impairment.
3 Depreciation and Amortization: Other relates to non-operating assets (assets not included in segment assets) and is allocated to segment EBIT as discussed above.
Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include the average of both working capital (all current assets and current liabilities) plus net property, plant and equipment.
Average Assets by SegmentMarch 31, 2024December 31, 2023
Bedding Products$791.3 $815.2 
Specialized Products393.6 398.6 
Furniture, Flooring & Textile Products350.8 390.3 
Average current liabilities included in segment numbers above692.1 736.1 
Unallocated assets 1
2,408.6 2,403.2 
Difference between average assets and period-end balance sheet(21.6)(108.9)
Total assets$4,614.8 $4,634.5 
1 Unallocated assets consist primarily of goodwill, other intangibles, cash, and deferred tax assets.
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LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
D—Earnings Per Share (EPS)
Basic and diluted earnings per share were calculated as follows:
 Three Months Ended 
 March 31,
 20242023
Net earnings  
Net earnings$31.6 $53.5 
Earnings attributable to noncontrolling interest, net of tax  
Net earnings attributable to Leggett & Platt, Inc. common shareholders$31.6 $53.5 
Weighted average number of shares (in millions)  
Weighted average number of common shares used in basic EPS136.8 135.9 
Dilutive effect of stock-based compensation.5 .4 
Weighted average number of common shares and dilutive potential common shares used in diluted EPS137.3 136.3 
Basic and diluted EPS  
Basic EPS attributable to Leggett & Platt common shareholders$.23 $.39 
Diluted EPS attributable to Leggett & Platt common shareholders$.23 $.39 
Other information  
Anti-dilutive shares excluded from diluted EPS computation.5 .5 
Cash dividends declared per share$.46 $.44 
E—Restructuring and Impairments    
In the first quarter of 2024, we committed to a restructuring plan, primarily associated with our Bedding Products segment and, to a lesser extent, our Furniture, Flooring & Textile Products segment (the “Restructuring Plan” or “Plan”), which is expected to be substantially complete by the end of 2025.
We plan to consolidate between 15 and 20 production and distribution facilities (out of 50) in the Bedding Products segment and a small number of production facilities in the Furniture, Flooring & Textile Products segment. Our total costs for this Plan are expected to be between $65.0 and $85.0, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025. As of March 31, 2024, we have incurred costs of $10.8.
The following table presents information associated with this Plan:
Total Amount Expected to be IncurredThree Months Ended 
 March 31, 2024
Restructuring and restructuring-related
$40.0 to $55.0
$8.5 
Impairment costs associated with this plan
25.0 to $30.0
2.3 
$65.0 to $85.0
$10.8 
Amount of total that represents cash charges
$30.0 to $40.0
$6.2 
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LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
The table below presents all restructuring and restructuring-related activity related to the Plan. We had no material restructuring activity in 2023.
 Three Months Ended March 31,
 2024
Restructuring costs charged to other (income) expense, net: 
Termination benefits, relocation, and other restructuring costs $5.7 
Restructuring-related costs:
Charged to cost of goods sold:
Inventory obsolescence and other 2.3 
Charged to selling and administrative:
Professional services and other.5 
Total restructuring-related costs2.8 
Total restructuring and restructuring-related costs8.5 
Amount of total that represents cash charges$6.2 
Restructuring and restructuring-related charges by segment were as follows:
 Three Months Ended March 31,
 2024
Bedding Products$7.0 
Furniture, Flooring & Textile Products1.5 
Total restructuring and restructuring-related costs$8.5 
Restructuring Liability
The accrued liability associated with the Plan consisted of the following:

Balance at December 31, 2023Add: 2024 ChargesLess: 2024 PaymentsBalance at March 31, 2024
Termination benefits$ $2.4 $.5 $1.9 
Relocation and other restructuring costs 3.3 3.3  
Total$ $5.7 $3.8 $1.9 
Impairment Costs Associated with the Plan
Pretax impairment charges are reported in “Other (income) expense, net” in the Consolidated Condensed Statements of Operations. We did not have any impairment charges in the three months ended March 31, 2023. The Bedding Products segment reported other long-lived impairment charges of $2.3 in the three months ended March 31, 2024.
 
12

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
F—Accounts and Other Receivables
Accounts and other receivables consisted of the following:
 March 31, 2024December 31, 2023
 CurrentLong-termCurrentLong-term
Total trade receivables$592.0 $ $575.4 $ 
Allowance for doubtful accounts - trade receivables(14.6) (10.5) 
Trade receivables, net$577.4 $ $564.9 $ 
Taxes receivable, including income taxes3.2  3.1  
Value-added taxes (VAT) recoverable 1
43.0 20.0 56.6  
Other receivables11.5 1.2 12.7 1.2 
Other receivables, net$57.7 $21.2 $72.4 $1.2 
1 We have experienced VAT refund delays from the Mexican government. We believe these are fully collectible, and our recent discussions with the government have resulted in an updated timeline for resolution. As a result, we have classified $20.0 as long-term as of March 31, 2024. The aggregate of current and long-term balances of Mexico VAT recoverable was $53.9 and $48.2 at March 31, 2024 and December 31, 2023, respectively.
Activity related to the allowance for doubtful accounts is reflected below:
Balance at December 31, 2023Change in
Provision
Less: Net
Charge-offs/
(Recoveries) and
Other
Balance at March 31, 2024
Total allowance for doubtful accounts on trade receivables$10.5 $4.9 $.8 $14.6 
G—Inventories
The following table recaps the components of inventory for each period presented:
March 31,
2024
December 31,
2023
Finished goods$362.5 $361.3 
Work in process74.7 73.5 
Raw materials and supplies370.2 384.9 
Inventories$807.4 $819.7 
All inventories are stated at the lower of cost or net realizable value. For the majority of our inventories, we use the first-in, first-out method, which is representative of our standard costs (includes materials, labor, and production overhead at normal production capacity). Remaining inventories are valued using an average-cost method.
Inventories are reviewed at least quarterly for slow-moving and potentially obsolete items using actual inventory turnover and, if necessary, are written down to estimated net realizable value. We have had no material changes in inventory writedowns or slow-moving and obsolete inventory reserves in any of the periods presented.
13

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
H—Credit Facility Amendment
Effective March 22, 2024, we amended our credit facility to change the Leverage Ratio. The prior Leverage Ratio covenant required us to maintain, as of the last day of each quarter, or when we borrow under the credit facility, 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.
Under the amendment, the Leverage Ratio covenant was increased from 3.50 to 1.00 to 4.00 to 1.00 for each quarter-end beginning March 31, 2024 and ending June 30, 2025. The Leverage Ratio covenant will revert to 3.50 to 1.00 for the quarter ending September 30, 2025 and thereafter until maturity. Also, the provision permitting a temporary increase in the maximum Leverage Ratio in the event of a Material Acquisition will not apply unless the acquisition occurs after June 30, 2025.
The maturity date of September 30, 2026 remains unchanged. At March 31, 2024, we were in compliance with all of its debt covenants and expect to be able to maintain compliance with the amended debt covenant requirements.
I—Stock-Based Compensation
The following table recaps the impact of stock-based compensation on the results of operations for each of the periods presented:
 Three Months Ended 
 March 31, 2024
Three Months Ended 
 March 31, 2023
To be settled with stockTo be settled in cashTo be settled with stockTo be settled in cash
Executive Stock Unit (ESU) Program matching contributions $.6 $.2 $.7 $.1 
Discounts on various stock awards:
Deferred Stock Compensation Program.4  .3  
ESU Program.3  .2  
Discount Stock Plan.2  .2  
Performance Stock Unit (PSU) awards(.2)(.5)1.1 .7 
Restricted Stock Unit (RSU) awards6.3  5.3  
Other, primarily non-employee directors restricted stock.4  .4  
Total stock-based compensation expense (income)8.0 $(.3)8.2 $.8 
Employee contributions for above stock plans2.0 1.5 
Total stock-based compensation$10.0 $9.7 
Tax benefits on stock-based compensation expense$2.0 $2.0 
Tax (expense)/benefits on stock-based compensation payments (.8).3 
Total tax benefits associated with stock-based compensation$1.2 $2.3 
 
14

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
J—Accumulated Other Comprehensive Income (Loss)
The following tables set forth the components of and changes in each component of accumulated other comprehensive income (loss) for each of the periods presented:
Three Months Ended March 31,
Foreign
Currency
Translation
Adjustments
Cash Flow
Hedges
Defined Benefit
Pension Plans
Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2024$(42.6)$12.5 $(13.6)$(43.7)
Other comprehensive income (loss)(23.5)(.8) (24.3)
Reclassifications, pretax (1.1).3 (.8)
Income tax effect .4 (.1).3 
Balance, March 31, 2024$(66.1)$11.0 $(13.4)$(68.5)
Balance, January 1, 2023$(83.5)$8.4 $(18.4)$(93.5)
Other comprehensive income (loss)18.7 2.6 (.1)21.2 
Reclassifications, pretax .6 .4 1.0 
Income tax effect (.5)(.1)(.6)
Attributable to noncontrolling interest.1   .1 
Balance, March 31, 2023$(64.7)$11.1 $(18.2)$(71.8)
K—Fair Value
We utilize fair value measures for both financial and non-financial assets and liabilities.
Items measured at fair value on a recurring basis
Fair value measurements are established using a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following categories:
Level 1: Quoted prices for identical assets or liabilities in active markets.
Level 2: Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or supported by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, volatility factors, current market, and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.
Level 3: Unobservable inputs that are not corroborated by market data.
15

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
The areas in which we utilize fair value measures of financial assets and liabilities are presented in the table below.
 As of March 31, 2024
 Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less$ $151.4 $ $151.4 
Derivative assets (Note L)
 4.5  4.5 
Diversified investments associated with the ESU Program52.5   52.5 
Total assets$52.5 $155.9 $ $208.4 
Liabilities:
Derivative liabilities (Note L)
$ $3.3 $ $3.3 
Liabilities associated with the ESU Program53.1   53.1 
Total liabilities$53.1 $3.3 $ $56.4 
 As of December 31, 2023
 Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less$ $147.5 $ $147.5 
Derivative assets (Note L)
 6.2  6.2 
Diversified investments associated with the ESU Program50.4   50.4 
Total assets$50.4 $153.7 $ $204.1 
Liabilities:
Derivative liabilities (Note L)
$ $3.5 $ $3.5 
Liabilities associated with the ESU Program52.4   52.4 
Total liabilities$52.4 $3.5 $ $55.9 
There were no transfers between Level 1 and Level 2 for any of the periods presented.
The fair value for fixed rate debt (Level 1) was approximately $220.0 less than carrying value of $1,786.9 at March 31, 2024 and was approximately $175.0 less than carrying value of $1,786.4 at December 31, 2023.
Items measured at fair value on a non-recurring basis
The primary areas in which we utilize fair value measurements of non-financial assets and liabilities are allocating purchase price to the assets and liabilities of acquired companies and evaluating long-term assets (including goodwill) for potential impairment. Determining fair values for these items requires significant judgment and includes a variety of methods and models that utilize significant Level 3 inputs.
16

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
L—Derivative Financial Instruments
The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item.
 Expiring at various dates through:Total USD
Equivalent
Notional
Amount
As of March 31, 2024
DerivativesAssetsLiabilities
Other
Current
Assets
SundryOther
Current
Liabilities
Other Long-Term Liabilities
Designated as hedging instruments
Total cash flow hedges-currency hedgesSep 2025$298.5 $4.0 $.2 $2.8 $ 
Total fair value hedgesJun 202419.4 .2    
Not designated as hedging instrumentsMar 202597.0 .1  .5  
Total derivatives$4.3 $.2 $3.3 $ 
 Expiring at various dates through:Total USD
Equivalent
Notional
Amount
As of December 31, 2023
DerivativesAssetsLiabilities
Other
Current
Assets
SundryOther
Current
Liabilities
Other Long-Term Liabilities
Designated as hedging instruments
Total cash flow hedges-currency hedgesJun 2025$298.2 $5.3 $.5 $2.4 $.2 
Total fair value hedgesMar 202421.7 .3    
Not designated as hedging instrumentsDec 202487.9 .1  .9  
Total derivatives$5.7 $.5 $3.3 $.2 
The following table sets forth the pretax (gains) losses for our hedging activities for the periods presented. This schedule includes reclassifications from accumulated other comprehensive income (see Note J) as well as derivative settlements recorded directly to income or expense.
DerivativesIncome Statement CaptionAmount of (Gain) Loss
Recorded in Income
Three Months Ended March 31,
20242023
Designated as hedging instruments
Interest rate cash flow hedgesInterest expense$(.1)$(.1)
Currency cash flow hedgesNet trade sales.1 .7 
Currency cash flow hedgesCost of goods sold(.5)(.7)
Total cash flow hedges(.5)(.1)
Fair value hedgesOther (income) expense, net.2 2.1 
Not designated as hedging instrumentsOther (income) expense, net(1.1) 
Total derivative instruments$(1.4)$2.0 
17

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)
M—Contingencies
We are a party to various proceedings and matters involving employment, intellectual property, environmental, taxation, vehicle-related personal injury, antitrust, and other laws. When it is probable, in management's judgment, that we may incur monetary damages or other costs resulting from these proceedings or other claims, and we can reasonably estimate the amounts, we record appropriate accruals in the financial statements and make charges against earnings. For all periods presented, we have recorded no material charges against earnings. Also, when it is reasonably possible that we may incur additional loss in excess of recorded accruals, and we can reasonably estimate the additional losses or range of losses, we disclose such additional reasonably possible losses in these notes.
Accruals and Reasonably Possible Losses in Excess of Accruals
Accruals for Probable Losses
Although we deny liability in all currently threatened or pending litigation proceedings, we have recorded a litigation contingency accrual for our reasonable estimate of probable loss, in the aggregate, of $1.5 and $1.4 at March 31, 2024 and December 31, 2023, respectively. There were no material adjustments to the accrual, including cash payments and expense, for the three-month periods ending March 31, 2024 and March 31, 2023. The accruals do not include accrued expenses related to workers' compensation, vehicle-related personal injury, product and general liability claims, taxation issues, and environmental matters, some of which may contain a portion of litigation expense. However, any litigation expense associated with these categories is not anticipated to have a material effect on our financial condition, results of operations, or cash flows.
 
Reasonably Possible Losses in Excess of Accruals
Although there are a number of uncertainties and potential outcomes associated with our pending or threatened litigation proceedings, we believe, based on current known facts, that additional losses, if any, are not expected to materially affect our consolidated financial position, results of operations, or cash flows. However, based upon current known facts, as of March 31, 2024, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of the accruals noted above are estimated to be $15.0. If our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change or future litigation arises, we could realize losses in excess of the recorded accruals (including losses in excess of the $15.0 referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows.
18

LEGGETT & PLATT, INCORPORATED
Notes to Consolidated Condensed Financial Statements—(Continued)
(Unaudited)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
HIGHLIGHTS
We had first quarter trade sales of $1,097 million for the three months ending March 31, 2024, a decrease of 10% versus the first quarter 2023.
Earnings Per Share (EPS) was $.23 for the three months ending March 31, 2024, compared to $.39 in the same period of 2023.
Earnings Before Interest and Taxes (EBIT) for the three months ending March 31, 2024 was $63 million. This is down $26 million compared to the same period in 2023.
Operating cash flow was $(6) million in the first three months of 2024, a decrease of $103 million versus the same period of 2023.
In March 2024, we proactively amended our credit facility agreement to provide additional liquidity and flexibility.
The Restructuring Plan in our Bedding Products segment and our Furniture, Flooring & Textile Products segment is progressing as planned.
In February 2024, the Board of Directors declared a first quarter 2024 dividend of $.46, $.02 cents higher than last year’s first quarter dividend. In April 2024, the Board of Directors declared a second quarter 2024 dividend of $.05, $.41 cents lower than last year's second quarter dividend and this year's first quarter dividend.
INTRODUCTION
What We Do
We are a diversified manufacturer that conceives, designs, and produces a wide range of engineered components and products found in many homes, offices, and automobiles. We make components that are often hidden within, but integral to, our customers’ products.
We are the leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; hydraulic cylinders for material handling and heavy construction industries; and aerospace tubing and fabricated assemblies.
Our Segments
Our operations are comprised of approximately 125 production facilities located in 18 countries around the world. Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Our segments are described below.
Bedding Products: This segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated into the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external
19


customers. We also supply steel rod and wire to trade customers that operate in a broad range of markets. This segment contributed 41% of our trade sales during the first three months of 2024.
Specialized Products: From this segment, we supply lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and heavy construction industries. This segment contributed 29% of our trade sales in the first three months of 2024.
Furniture, Flooring & Textile Products: Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion, hard surface flooring underlayment, and textile and geo components. This segment contributed 30% of our trade sales in the first three months of 2024.
Customers
We serve a broad suite of customers, with our largest customer representing less than 6% of our trade sales in 2023. Many are companies whose names are widely recognized. They include bedding brands and manufacturers, residential and office furniture producers, automotive OEM and Tier 1 manufacturers, and a variety of other companies.
Organic Sales
We calculate organic sales as trade sales excluding sales attributable to acquisitions and divestitures consummated within the last twelve months. Management uses the metric, and it is useful to investors, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses.
Major Factors That Impact Our Business
Restructuring Plan
In the first quarter of 2024, we committed to a restructuring plan, primarily associated with our Bedding Products segment and, to a lesser extent, our Furniture, Flooring & Textile Products segment (the “Restructuring Plan” or “Plan”), which is expected to be substantially complete by the end of 2025. Pursuant to the Plan, we expect to:
consolidate between 15 and 20 production and distribution facilities (out of 50) in the Bedding Products segment and a small number of production facilities in the Furniture, Flooring & Textile Products segment;
incur restructuring and restructuring-related costs between $65 and $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025. This includes $30 to $40 million in cash costs, the majority of which are anticipated to be incurred in 2024;
ultimately realize cost reductions and other impacts that are expected to enhance annualized EBIT by $40 to $50 million when fully implemented in late 2025;
receive between $60 and $80 million in pretax net cash proceeds from the sale of real estate associated with the Restructuring Plan; and
experience a reduction in annual sales by approximately $100 million.
We have made progress during the first quarter of 2024 on the Plan and remain on track to achieve our objectives within our stated timeline. We closed four smaller U.S. Spring distribution facilities, transitioned manufacturing out of three facilities and into our four larger, remaining production facilities, and closed a small Specialty Foam operation in our Bedding Products segment. Within the Furniture, Flooring & Textile Products segment, we closed a Flooring Products production line and redeployed the manufacturing equipment to one of our other production facilities. In Home Furniture, we closed one plant and have transferred that production to other remaining facilities. Restructuring and restructuring-related costs during the quarter were $11 million ($6 million cash and $5 million non-cash). We have not sold any real estate associated with the Plan or had any meaningful sales attrition.
Because of certain risks and uncertainties, the Plan may not achieve its intended outcomes. Our estimates of the number of facilities to be consolidated and the cash and non-cash costs and impairments associated with
20


the Plan are preliminary in nature. All or some of the estimates may change as our analysis develops and additional information is obtained. Also, we may not be able to implement the Plan in a timely manner that will positively impact our financial condition and results of operations. Moreover, we may not be able to dispose of real estate pursuant to the Plan or obtain the expected proceeds in a timely manner. It is also possible that the Plan may have a negative impact on our relationships with our employees, customers, and vendors. Finally, because restructuring activities are complex and involve time-consuming processes, substantial demands may be placed on management, which could divert attention from other business priorities or disrupt our daily operations. Any failure to achieve the intended outcomes could materially adversely affect our business, financial condition, results of operations and cash flows, and liquidity.
We continue to evaluate opportunities across our businesses for further restructuring opportunities in addition to those activities included in the announced Plan. The execution of any of these opportunities may result in additional material restructuring costs, restructuring-related costs, or impairments.
Market Demand
Market demand (including product mix) is impacted by several economic factors, with consumer confidence being the most significant. Other important factors include disposable income levels, employment levels, housing turnover, and interest rates. All of these factors influence consumer spending on durable goods, and therefore affect demand for our products and components. Some of these factors also influence business spending on facilities and equipment, which impacts approximately 25%-30% of our sales. Since early 2022, the dynamic macroeconomic environment has pressured our residential end markets and negatively affected the demand for our products. As a result of the continued uncertainty, we expect 2024 overall demand to be down modestly from 2023 levels.
Trends in Cost of Goods Sold
Our costs can vary significantly as market prices for raw materials (many of which are commodities) fluctuate. We typically have short-term commitments from our suppliers; accordingly, our raw material costs generally move with the market. We have also been impacted by fluctuations in transportation and energy costs, as well as labor. Our ability to recover higher costs (through selling price increases) is crucial. When we experience significant increases in costs, we typically implement price increases to recover the higher costs. Conversely, when costs decrease significantly, we generally pass those lower costs through to our customers. The timing of our price increases or decreases is important; we typically experience a lag in recovering higher costs, and we also realize a lag as costs decline.
Steel is our principal raw material. At various times in past years, we have experienced significant cost fluctuations in this commodity. In most cases, the major changes (both increases and decreases) were passed through to customers with selling price adjustments. Steel costs fluctuated up and down throughout 2023, but overall average costs deflated as U.S. steel markets faced softened demand and increased foreign competition. Steel costs were relatively flat through most of the first quarter of 2024 with steel scrap costs modestly decreasing late in the quarter.
As a producer of steel rod, we are also impacted by changes in metal margins (the difference in the cost of steel scrap and the market price for steel rod). Metal margins compressed through 2023 and, as a result, we experienced lower metal margins in our Steel Rod business. Metal margins in the first quarter of 2024 were relatively stable.
We have exposure to the cost of chemicals, including TDI, MDI, and polyol. The cost of these chemicals has fluctuated at times, but we have generally passed the changes through to our customers. Pricing softened through 2023 and has been relatively stable through the first quarter of 2024.
Shortages in the labor markets in some industries in which we operate could create challenges in hiring and maintaining adequate workforce levels.
Our other raw materials include woven and nonwoven fabrics. We have experienced changes in the costs of these materials and generally have been able to pass them through to our customers.
When we raise our prices to recover higher raw material costs, this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components. We must
21


continue providing product options to our customers that enable them to improve the functionality of their products and manage their costs, while providing higher profits for our operations.
Supply Chain Shortages and Disruptions
We have experienced supply chain disruptions related to labor availability and freight challenges, as well as higher costs associated with each of these issues.
In 2023, drought conditions lowered the water levels of the Mississippi River and Panama Canal, reducing traffic through these waterways. Also, in late 2023 and early 2024, the conflict in the Red Sea caused delays with some of our shipments, while other shipments from China to the U.S. or Europe have been re-routed. Although these issues have not had a material impact on our results of operations, additional logistical disruptions could result in additional delays in our ability to deliver products timely to certain customers.
The shortage of semiconductors continues to improve across the automotive industry globally and no longer negatively impacts the sale of our products. The challenges of securing an adequate supply of semiconductors have mostly been resolved, but could be challenged again by any number of unexpected or unplanned events. Overall, OEM inventory levels continue to improve with most every model available at nearly normal levels. Our Automotive Group uses semiconductors in our seat comfort, motors, and actuator products. Although our Automotive Group has been able to obtain an adequate supply of semiconductors, we are dependent on our suppliers to deliver these semiconductors in accordance with our production schedule. A shortage of the semiconductors, either to us, the automotive OEMs, or our suppliers, can disrupt our operations and our ability to deliver products to our customers. If we, our customers, or our suppliers cannot secure an adequate supply of semiconductors, this may negatively impact our sales, earnings, and financial condition.
For more information regarding supply chain disruptions, see Trends in Cost of Goods Sold on page 21.
Competition
Many of our markets are highly competitive, with the number of competitors varying by product line. In general, our competitors tend to be smaller, private companies. Many of our competitors, both domestic and foreign, compete primarily on the basis of price. Our success has stemmed from the ability to remain price competitive, while delivering innovation, better product quality, and customer service.
We continue to face pressure from foreign competitors, as some of our customers source a portion of their components and finished products offshore. In addition to lower labor rates, foreign competitors benefit (at times) from lower raw material costs. They may also benefit from currency factors and more lenient regulatory climates. We typically compete in market segments that value product differentiation. When we do compete on cost, we typically remain price competitive in most of our business units, even versus many foreign manufacturers, as a result of our efficient operations, automation, vertical integration in steel rod and wire, logistics and distribution efficiencies, and large-scale purchasing of raw materials and commodities. To stay competitive with global steel costs, both contract and non-contract innerspring pricing were adjusted in the back half of 2023 and are expected to be fully realized in 2024. We have also reacted to foreign competition in certain cases by developing new proprietary products that help our customers reduce total costs and shifting production offshore to take advantage of lower input costs.
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. In response to petitions filed with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) generally alleging that innersprings, steel wire rod, and mattresses were being unfairly sold in the United States by certain foreign manufacturers at less than fair value (dumping) and that certain foreign manufacturers of steel wire rod and mattresses were unfairly benefiting from subsidies, antidumping and/or countervailing duties have been imposed on the imports of such products.
In March 2020, the Company, along with other petitioners, filed petitions with the DOC and the ITC alleging that manufacturers of mattresses in certain countries were unfairly selling their products in the United States at less than fair value and manufacturers of mattresses in China were benefiting from subsidies. These petitions resulted in antidumping and countervailing duty orders set to remain in effect for five years, through May 2026, at which time the DOC and ITC will conduct a sunset review to determine whether to extend the orders for an additional five years. Following certain appeals that were filed with the U.S. Court of International Trade (CIT),
22


the CIT ruled in favor of the ITC and petitioners and sustained the ITC’s unanimous injury decision. In February 2024, one respondent filed an appeal of the CIT's decision to the U.S. Court of Appeals for the Federal Circuit. This appeal is ongoing with no timeline for a decision.
In July 2023, the Company, along with other petitioners, filed petitions with the DOC and the ITC alleging that manufacturers of mattresses in certain additional countries were unfairly selling their products in the United States at less than fair value and manufacturers of mattresses in Indonesia were unfairly benefiting from subsidies, causing harm to the U.S. industry and seeking the imposition of duties on mattresses imported from these countries. The ITC made a preliminary determination of injury in September 2023, and the DOC’s preliminary determination on dumping was issued in February 2024. The DOC’s final determinations with respect to certain countries are expected in May 2024, and the ITC’s final determination with respect to those countries is expected in June 2024. With respect to certain other countries, the DOC’s final determinations are expected in July 2024, and the ITC’s final determination is expected in September 2024.
If any of the pending determinations are negative, any of the foregoing existing or future antidumping and countervailing duties are overturned on appeal or not 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.
See Item 1 Legal Proceedings on page 38 for more information.
Reduced 2024 Amortization
We expect our full-year 2024 amortization expense to be approximately $45 million lower as compared to 2023 as a result of the fourth quarter 2023 long-lived asset impairments in the Bedding Products segment.
RESULTS OF OPERATIONS
Discussion of Consolidated Results
Three Months:
Trade Sales were $1,097 million in the first three months of 2024, a 10% decrease versus the same period last year. Organic sales decreased 10%. Volume was down 6%, primarily from continued weak demand in residential end markets. Raw material-related selling price decreases reduced sales 4%.
EBIT decreased 29% to $63 million, primarily from lower volume, restructuring costs, increased bad debt reserve, less benefit from a reduction to a contingent purchase price liability associated with a prior year acquisition, and the non-recurrence of pandemic-related cost reimbursements. These decreases were partially offset by current year lower amortization expense and gains on sale of idle real estate not associated with the Restructuring Plan.
EPS decreased to $.23 for the first three months of 2024, versus $.39 in the same period of 2023. The decline primarily reflects lower EBIT as discussed above.
Net Interest Expense and Income Taxes
2024 net interest expense was flat compared to the three months ended March 31, 2023.
Our worldwide effective tax rate was 25% for the first quarter of 2024, compared to 22% for the same quarter last year. While the U.S. statutory federal income tax rate was 21% in both years, foreign withholding taxes, the impact of foreign earnings, Global Intangible Low-Taxed Income (GILTI), and other less significant items added 4% to our tax rate in both 2024 and 2023. Our rate was favorably impacted by 3% in 2023 from a deferred tax benefit recorded for future distributions of post-retirement executive stock compensation.
For the full year, we are anticipating an effective tax rate of approximately 25%, including the impact of discrete tax items that we expect to occur from quarter to quarter. We utilize prudent tax planning strategies for opportunities to optimize our tax rate, but other factors, such as our overall profitability, the mix and level of earnings among jurisdictions, the type of income earned, business acquisitions and dispositions, the impact of tax audits, and the effect of tax law changes can also influence our rate.
23


Discussion of Segment Results
Three Month Discussion
A description of the products included in each segment, along with segment financial data, appears in Note C to the Consolidated Condensed Financial Statements on page 9. A summary of segment results is shown in the following tables.
Trade Sales
(Dollar amounts in millions)
Three Months Ended 
 March 31, 2024
Three Months Ended 
 March 31, 2023
Change in Sales
% Change in Organic Sales 1
$%
Bedding Products$448.0 $528.5 $(80.5)(15.2)%(15.2)%
Specialized Products315.9 320.7 (4.8)(1.5)(1.5)
Furniture, Flooring & Textile Products333.0 364.4 (31.4)(8.6)(8.6)
Total$1,096.9 $1,213.6 $(116.7)(9.6)%(9.6)%
 Three Months Ended 
 March 31, 2024
Three Months Ended 
 March 31, 2023
Change in EBITEBIT Margins
EBIT
(Dollar amounts in millions)
$%Three Months Ended 
 March 31, 2024
Three Months Ended 
 March 31, 2023
Bedding Products$15.7 $33.3 $(17.6)(52.9)%3.5 %6.3 %
Specialized Products23.7 28.7 (5.0)(17.4)7.5 8.9 
Furniture, Flooring & Textile Products23.6 28.3 (4.7)(16.6)7.1 7.8 
Intersegment eliminations and other— (1.0)