ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
(Amounts in millions) | September 30, 2012 | December 31, 2011 | |||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 264.9 | $ | 236.3 | |||
Accounts and other receivables, net | 589.7 | 503.6 | |||||
Inventories | |||||||
Finished goods | 263.1 | 261.3 | |||||
Work in process | 51.1 | 41.5 | |||||
Raw materials and supplies | 234.9 | 223.9 | |||||
LIFO reserve | (77.9 | ) | (85.7 | ) | |||
Total inventories, net | 471.2 | 441.0 | |||||
Other current assets | 52.9 | 43.1 | |||||
Total current assets | 1,378.7 | 1,224.0 | |||||
PROPERTY, PLANT AND EQUIPMENT—AT COST | |||||||
Machinery and equipment | 1,151.6 | 1,120.1 | |||||
Buildings and other | 618.7 | 608.5 | |||||
Land | 45.9 | 45.2 | |||||
Total property, plant and equipment | 1,816.2 | 1,773.8 | |||||
Less accumulated depreciation | 1,240.8 | 1,193.2 | |||||
Net property, plant and equipment | 575.4 | 580.6 | |||||
OTHER ASSETS | |||||||
Goodwill | 985.1 | 926.6 | |||||
Other intangibles, less accumulated amortization of $125.5 and $106.2 as of September 30, 2012 and December 31, 2011, respectively | 205.3 | 116.6 | |||||
Sundry | 101.4 | 67.3 | |||||
Total other assets | 1,291.8 | 1,110.5 | |||||
TOTAL ASSETS | $ | 3,245.9 | $ | 2,915.1 | |||
CURRENT LIABILITIES | |||||||
Current maturities of long-term debt | $ | 201.8 | $ | 2.5 | |||
Accounts payable | 292.0 | 256.6 | |||||
Accrued expenses | 234.0 | 209.6 | |||||
Other current liabilities | 67.9 | 117.3 | |||||
Total current liabilities | 795.7 | 586.0 | |||||
LONG-TERM LIABILITIES | |||||||
Long-term debt | 860.2 | 833.3 | |||||
Other long-term liabilities | 127.5 | 130.3 | |||||
Deferred income taxes | 61.7 | 57.8 | |||||
Total long-term liabilities | 1,049.4 | 1,021.4 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
EQUITY | |||||||
Common stock | 2.0 | 2.0 | |||||
Additional contributed capital | 456.0 | 456.9 | |||||
Retained earnings | 2,079.4 | 2,027.4 | |||||
Accumulated other comprehensive income | 75.2 | 65.2 | |||||
Treasury stock | (1,224.1 | ) | (1,254.3 | ) | |||
Total Leggett & Platt, Inc. equity | 1,388.5 | 1,297.2 | |||||
Noncontrolling interest | 12.3 | 10.5 | |||||
Total equity | 1,400.8 | 1,307.7 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 3,245.9 | $ | 2,915.1 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
(Amounts in millions, except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net sales | $ | 2,867.8 | $ | 2,781.9 | $ | 982.2 | $ | 940.9 | |||||||
Cost of goods sold | 2,296.8 | 2,259.6 | 776.7 | 770.5 | |||||||||||
Gross profit | 571.0 | 522.3 | 205.5 | 170.4 | |||||||||||
Selling and administrative expenses | 285.1 | 287.8 | 94.7 | 93.9 | |||||||||||
Amortization of intangibles | 19.1 | 14.4 | 6.5 | 4.7 | |||||||||||
Other expense (income), net | 1.1 | (4.8 | ) | (.6 | ) | .2 | |||||||||
Earnings from continuing operations before interest and income taxes | 265.7 | 224.9 | 104.9 | 71.6 | |||||||||||
Interest expense | 30.4 | 28.5 | 11.3 | 9.6 | |||||||||||
Interest income | 4.9 | 5.2 | 1.6 | 1.4 | |||||||||||
Earnings from continuing operations before income taxes | 240.2 | 201.6 | 95.2 | 63.4 | |||||||||||
Income taxes | 66.1 | 54.5 | 28.6 | 18.1 | |||||||||||
Earnings from continuing operations | 174.1 | 147.1 | 66.6 | 45.3 | |||||||||||
Earnings from discontinued operations, net of tax | 2.4 | — | — | — | |||||||||||
Net earnings | 176.5 | 147.1 | 66.6 | 45.3 | |||||||||||
(Earnings) loss attributable to noncontrolling interest, net of tax | (1.8 | ) | (2.5 | ) | (.8 | ) | (.4 | ) | |||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 174.7 | $ | 144.6 | $ | 65.8 | $ | 44.9 | |||||||
Earnings per share from continuing operations attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||
Basic | $ | 1.20 | $ | .99 | $ | .46 | $ | .31 | |||||||
Diluted | $ | 1.18 | $ | .98 | $ | .45 | $ | .31 | |||||||
Earnings per share from discontinued operations attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||
Basic | $ | .02 | $ | — | $ | — | $ | — | |||||||
Diluted | $ | .02 | $ | — | $ | — | $ | — | |||||||
Net Earnings per share attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||
Basic | $ | 1.21 | $ | .99 | $ | .46 | $ | .31 | |||||||
Diluted | $ | 1.20 | $ | .98 | $ | .45 | $ | .31 | |||||||
Cash dividends declared per share | $ | .85 | $ | .82 | $ | .29 | $ | .28 | |||||||
Average shares outstanding | |||||||||||||||
Basic | 144.0 | 146.2 | 144.4 | 143.8 | |||||||||||
Diluted | 145.5 | 147.8 | 146.1 | 145.1 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
(Amounts in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net earnings | $ | 176.5 | $ | 147.1 | $ | 66.6 | $ | 45.3 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | 12.0 | (5.6 | ) | 19.4 | (42.4 | ) | |||||||||
Cash flow hedges | (4.5 | ) | (20.7 | ) | (.2 | ) | (17.0 | ) | |||||||
Defined benefit pension plans | 2.5 | 1.4 | .7 | .6 | |||||||||||
Other comprehensive income (loss) | 10.0 | (24.9 | ) | 19.9 | (58.8 | ) | |||||||||
Comprehensive income | 186.5 | 122.2 | 86.5 | (13.5 | ) | ||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interest | (1.8 | ) | (3.0 | ) | (.9 | ) | (.5 | ) | |||||||
Comprehensive income (loss) attributable to Leggett & Platt, Inc. | $ | 184.7 | $ | 119.2 | $ | 85.6 | $ | (14.0 | ) |
Nine Months Ended September 30, | |||||||
(Amounts in millions) | 2012 | 2011 | |||||
OPERATING ACTIVITIES | |||||||
Net earnings | $ | 176.5 | $ | 147.1 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation | 68.6 | 73.8 | |||||
Amortization | 19.1 | 14.4 | |||||
Provision for losses on accounts and notes receivable | 4.3 | 7.2 | |||||
Writedown of inventory | 8.4 | 7.9 | |||||
Asset impairment charges | 1.0 | 3.4 | |||||
Net gain from sales of assets and businesses | (3.0 | ) | (9.8 | ) | |||
Deferred income tax (income) expense | (3.5 | ) | 7.2 | ||||
Stock-based compensation | 26.0 | 29.3 | |||||
Other, net | (1.3 | ) | (8.6 | ) | |||
Other changes, excluding effects from acquisitions and divestitures: | |||||||
Increase in accounts and other receivables | (87.2 | ) | (100.7 | ) | |||
Increase in inventories | (20.2 | ) | (29.1 | ) | |||
Increase in other current assets | (3.2 | ) | (1.2 | ) | |||
Increase in accounts payable | 34.7 | 47.0 | |||||
Increase in accrued expenses and other current liabilities | 20.8 | 14.1 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 241.0 | 202.0 | |||||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (53.5 | ) | (56.7 | ) | |||
Purchases of companies, net of cash acquired | (190.3 | ) | (6.6 | ) | |||
Proceeds from sales of assets and businesses | 9.3 | 20.3 | |||||
Maturity of short-term investments | — | 22.8 | |||||
Investment in unconsolidated entity | (22.4 | ) | — | ||||
Other, net | (6.4 | ) | (2.5 | ) | |||
NET CASH USED FOR INVESTING ACTIVITIES | (263.3 | ) | (22.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Additions to long-term debt | 299.1 | — | |||||
Payments on long-term debt | (10.5 | ) | (2.4 | ) | |||
Change in commercial paper and short-term debt | (77.2 | ) | 127.6 | ||||
Dividends paid | (117.5 | ) | (117.0 | ) | |||
Issuances of common stock | 14.4 | 17.5 | |||||
Purchases of common stock | (15.7 | ) | (225.1 | ) | |||
Liquidation of interest rate swap agreement | (42.7 | ) | — | ||||
Acquisition of noncontrolling interest | — | (13.1 | ) | ||||
Excess tax benefits from stock-based compensation | 2.7 | 6.9 | |||||
Other, net | (3.1 | ) | (1.6 | ) | |||
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 49.5 | (207.2 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1.4 | 2.2 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 28.6 | (25.7 | ) | ||||
CASH AND CASH EQUIVALENTS—January 1, | 236.3 | 244.5 | |||||
CASH AND CASH EQUIVALENTS—September 30, | $ | 264.9 | $ | 218.8 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
LIFO (income) expense | $ | (7.8 | ) | $ | 8.1 | $ | (5.7 | ) | $ | (.9 | ) |
• | Residential Furnishings—components for bedding, furniture and other furnishings, as well as related consumer products |
• | Commercial Fixturing & Components—retail store fixtures, displays and components for office and institutional furnishings |
• | Industrial Materials—drawn steel wire, specialty wire products, titanium and nickel tubing for the aerospace industry and welded steel tubing sold to trade customers as well as other Leggett segments |
• | Specialized Products—automotive seating components, specialized machinery and equipment, and commercial vehicle interiors |
External Sales | Inter- Segment Sales | Total Sales | EBIT | ||||||||||||
Nine Months Ended September 30, 2012: | |||||||||||||||
Residential Furnishings | $ | 1,442.7 | $ | 6.3 | $ | 1,449.0 | $ | 119.9 | |||||||
Commercial Fixturing & Components | 388.4 | 3.5 | 391.9 | 29.5 | |||||||||||
Industrial Materials | 497.6 | 194.1 | 691.7 | 48.9 | |||||||||||
Specialized Products | 539.1 | 33.1 | 572.2 | 66.6 | |||||||||||
Intersegment eliminations | (7.0 | ) | |||||||||||||
Change in LIFO reserve | 7.8 | ||||||||||||||
$ | 2,867.8 | $ | 237.0 | $ | 3,104.8 | $ | 265.7 | ||||||||
Nine Months Ended September 30, 2011: | |||||||||||||||
Residential Furnishings | $ | 1,393.1 | $ | 6.7 | $ | 1,399.8 | $ | 116.8 | |||||||
Commercial Fixturing & Components | 405.6 | 3.9 | 409.5 | 22.4 | |||||||||||
Industrial Materials | 468.6 | 187.5 | 656.1 | 39.3 | |||||||||||
Specialized Products | 514.6 | 34.4 | 549.0 | 60.1 | |||||||||||
Intersegment eliminations | (5.6 | ) | |||||||||||||
Change in LIFO reserve | (8.1 | ) | |||||||||||||
$ | 2,781.9 | $ | 232.5 | $ | 3,014.4 | $ | 224.9 | ||||||||
Three Months Ended September 30, 2012: | |||||||||||||||
Residential Furnishings | $ | 479.7 | $ | 2.0 | $ | 481.7 | $ | 39.7 | |||||||
Commercial Fixturing & Components | 161.5 | 1.3 | 162.8 | 19.2 | |||||||||||
Industrial Materials | 159.6 | 58.4 | 218.0 | 19.3 | |||||||||||
Specialized Products | 181.4 | 9.6 | 191.0 | 22.8 | |||||||||||
Intersegment eliminations | (1.8 | ) | |||||||||||||
Change in LIFO reserve | 5.7 | ||||||||||||||
$ | 982.2 | $ | 71.3 | $ | 1,053.5 | $ | 104.9 | ||||||||
Three Months Ended September 30, 2011: | |||||||||||||||
Residential Furnishings | $ | 470.2 | $ | 2.1 | $ | 472.3 | $ | 33.5 | |||||||
Commercial Fixturing & Components | 140.5 | 1.2 | 141.7 | 6.7 | |||||||||||
Industrial Materials | 156.8 | 59.9 | 216.7 | 11.7 | |||||||||||
Specialized Products | 173.4 | 14.3 | 187.7 | 20.6 | |||||||||||
Intersegment eliminations | (1.8 | ) | |||||||||||||
Change in LIFO reserve | .9 | ||||||||||||||
$ | 940.9 | $ | 77.5 | $ | 1,018.4 | $ | 71.6 |
September 30, 2012 | December 31, 2011 | ||||||
Residential Furnishings | $ | 612.0 | $ | 624.1 | |||
Commercial Fixturing & Components | 164.8 | 176.1 | |||||
Industrial Materials | 242.4 | 218.1 | |||||
Specialized Products | 228.1 | 226.6 | |||||
Average current liabilities included in segment numbers above | 443.0 | 417.7 | |||||
Assets held for sale | 20.5 | 19.6 | |||||
Unallocated assets (1) | 1,514.2 | 1,328.3 | |||||
Difference between average assets and period-end balance sheet | 20.9 | (95.4 | ) | ||||
Total assets | $ | 3,245.9 | $ | 2,915.1 |
(1) | Primarily goodwill, other intangibles, cash and notes receivable |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings before interest and income taxes: | |||||||||||||||
Residential Furnishings—Prime Foam Products Unit | $ | 3.9 | $ | — | $ | — | $ | — | |||||||
Income tax expense | (1.5 | ) | — | — | — | ||||||||||
Earnings from discontinued operations (net of tax) | $ | 2.4 | $ | — | $ | — | $ | — |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Charged to other expense (income), net: | |||||||||||||||
Severance and other restructuring costs | $ | 5.7 | $ | 4.8 | $ | 1.3 | $ | 2.6 | |||||||
(Gain) from sale of assets | (1.8 | ) | (.1 | ) | (.1 | ) | — | ||||||||
Total restructuring and restructuring-related costs | $ | 3.9 | $ | 4.7 | $ | 1.2 | $ | 2.6 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings: | |||||||||||||||
Earnings from continuing operations | $ | 174.1 | $ | 147.1 | $ | 66.6 | $ | 45.3 | |||||||
(Earnings) loss attributable to noncontrolling interest, net of tax | (1.8 | ) | (2.5 | ) | (.8 | ) | (.4 | ) | |||||||
Net earnings from continuing operations attributable to Leggett & Platt, Inc. common shareholders | $ | 172.3 | $ | 144.6 | $ | 65.8 | $ | 44.9 | |||||||
Earnings from discontinued operations, net of tax | 2.4 | — | — | — | |||||||||||
Net earnings attributable to Leggett & Platt, Inc. common shareholders | $ | 174.7 | $ | 144.6 | $ | 65.8 | $ | 44.9 | |||||||
Weighted average number of shares: | |||||||||||||||
Weighted average number of common shares used in basic EPS | 144.0 | 146.2 | 144.4 | 143.8 | |||||||||||
Additional dilutive shares principally from the assumed exercise of outstanding stock options | 1.5 | 1.6 | 1.7 | 1.3 | |||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 145.5 | 147.8 | 146.1 | 145.1 | |||||||||||
Basic and Diluted EPS: | |||||||||||||||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||
Continuing operations | $ | 1.20 | $ | .99 | $ | .46 | $ | .31 | |||||||
Discontinued operations | .02 | — | — | — | |||||||||||
Basic EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 1.21 | $ | .99 | $ | .46 | $ | .31 | |||||||
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders | |||||||||||||||
Continuing operations | $ | 1.18 | $ | .98 | $ | .45 | $ | .31 | |||||||
Discontinued operations | .02 | — | — | — | |||||||||||
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders | $ | 1.20 | $ | .98 | $ | .45 | $ | .31 | |||||||
Other information: | |||||||||||||||
Shares issuable under employee and non-employee stock options | 10.6 | 11.5 | 10.6 | 11.5 | |||||||||||
Anti-dilutive shares excluded from diluted EPS computation | 2.5 | 2.3 | 1.7 | 2.8 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Current | Long-term | Current | Long-term | ||||||||||||
Trade accounts receivable | $ | 577.5 | $ | — | $ | 461.3 | $ | — | |||||||
Notes receivable: | |||||||||||||||
Customer-related | 1.3 | 2.9 | 2.9 | 2.4 | |||||||||||
Notes received as partial payment for divestitures | .5 | 10.3 | 3.5 | 10.4 | |||||||||||
Other | .5 | 4.7 | 3.4 | 2.3 | |||||||||||
Income tax receivables | 4.3 | — | 29.1 | — | |||||||||||
Other receivables | 25.4 | — | 27.7 | — | |||||||||||
Total accounts and other receivables | 609.5 | 17.9 | 527.9 | 15.1 | |||||||||||
Allowance for doubtful accounts: | |||||||||||||||
Trade accounts receivable | (19.5 | ) | — | (21.9 | ) | — | |||||||||
Notes receivable: | |||||||||||||||
Customer-related | — | (.8 | ) | — | (.7 | ) | |||||||||
Notes received as partial payment for divestitures | — | (.8 | ) | (2.3 | ) | (.4 | ) | ||||||||
Other | (.3 | ) | (.6 | ) | (.1 | ) | (.6 | ) | |||||||
Total allowance for doubtful accounts | (19.8 | ) | (2.2 | ) | (24.3 | ) | (1.7 | ) | |||||||
Total net receivables | $ | 589.7 | $ | 15.7 | $ | 503.6 | $ | 13.4 |
Balance at December 31, 2011 | 2012 Charges | 2012 Charge- offs, net of recoveries | Balance at September 30, 2012 | ||||||||||||
Trade accounts receivable | $ | 21.9 | $ | 3.5 | $ | (5.9 | ) | $ | 19.5 | ||||||
Notes receivable: | |||||||||||||||
Customer-related | .7 | .1 | — | .8 | |||||||||||
Notes received as partial payment for divestitures | 2.7 | .4 | (2.3 | ) | .8 | ||||||||||
Other | .7 | .3 | (.1 | ) | .9 | ||||||||||
$ | 26.0 | $ | 4.3 | $ | (8.3 | ) | $ | 22.0 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Stock-based compensation expense: | |||||||||||||||
Amortization of the grant date fair value of stock options (1) | $ | 3.8 | $ | 4.2 | $ | .6 | $ | .6 | |||||||
Stock-based retirement plans contributions (2) | 4.8 | 5.0 | 1.5 | 1.5 | |||||||||||
Discounts on various stock awards: | |||||||||||||||
Deferred Stock Compensation Program | .9 | 1.0 | .3 | .2 | |||||||||||
Stock-based retirement plans | .9 | 1.3 | .2 | .1 | |||||||||||
Discount Stock Plan | .7 | .6 | .2 | .2 | |||||||||||
Performance Stock Unit awards (3) | 4.9 | 5.4 | 1.6 | 1.8 | |||||||||||
Restricted Stock Unit awards | 1.7 | 1.7 | .3 | .6 | |||||||||||
Other, primarily non-employee directors restricted stock | .7 | .8 | .3 | .2 | |||||||||||
Total stock-based compensation expense | 18.4 | 20.0 | 5.0 | 5.2 | |||||||||||
Employee contributions for above stock plans | 7.6 | 9.3 | 2.7 | 3.0 | |||||||||||
Total stock-based compensation | $ | 26.0 | $ | 29.3 | $ | 7.7 | $ | 8.2 | |||||||
Recognized tax benefits on stock-based compensation expense | $ | 7.0 | $ | 7.6 | $ | 1.9 | $ | 2.0 |
(1) | Stock Option Grants |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Options granted (in millions) | .9 | 1.0 | |||||
Aggregate grant date fair value | $ | 4.0 | $ | 4.9 | |||
Weighted-average per share grant date fair value | $ | 4.68 | $ | 4.90 | |||
Risk-free interest rate | 1.9 | % | 2.7 | % | |||
Expected life in years | 7.2 | 7.1 | |||||
Expected volatility (over expected life) | 34.4 | % | 33.3 | % | |||
Expected dividend yield (over expected life) | 4.8 | % | 4.7 | % | |||
Cash payments to employees elected in lieu of options | $ | .3 | $ | .3 |
(2) | Stock-Based Retirement Plans |
(3) | Performance Stock Unit Awards |
• | A service requirement—Awards generally “cliff” vest three years following the grant date; and |
• | A market condition—Awards are based on our Total Shareholder Return [TSR = (Change in Stock Price + Dividends) / Beginning Stock Price] as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately 320 companies). Participants will earn from 0% to 175% of the base award depending upon how our Total Shareholder Return ranks within the peer group at the end of the 3-year performance period. |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Total shares base award (in millions) | .3 | .3 | |||||
Grant date per share fair value | $ | 23.79 | $ | 25.41 |
September 30, 2012 | December 31, 2011 | ||||||
PSU liability to be settled in cash | $ | 4.9 | $ | 3.1 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Accounts receivable | $ | 8.8 | $ | 1.5 | |||
Inventory | 18.9 | 1.8 | |||||
Property, plant and equipment | 12.0 | 1.1 | |||||
Goodwill | 54.3 | 1.9 | |||||
Other intangible assets (average weighted amortization period of 16.5 years) | 102.4 | — | |||||
Accounts payable and accrued liabilities | (6.8 | ) | (1.2 | ) | |||
Other assets and liabilities, net | .6 | (.4 | ) | ||||
Additional consideration for prior year’s acquisitions | .1 | 1.9 | |||||
Net cash consideration | $ | 190.3 | $ | 6.6 |
Nine Months Ended | Number of Acquisitions | Segment | Product | Goodwill | |||||||||||
In Year of Acquisition | Expected to Provide Income Tax Benefit | ||||||||||||||
September 30, 2012 | 2 | Industrial Materials | Tubing for the aerospace industry; Tube fabrication | $ | 54.3 | $ | 54.3 | ||||||||
September 30, 2011 | 2 | Residential Furnishings | Geo Textiles; Furniture Hardware | $ | 1.9 | $ | 1.9 |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Components of net pension expense | |||||||||||||||
Service cost | $ | 2.2 | $ | 1.8 | $ | .8 | $ | .6 | |||||||
Interest cost | 9.5 | 10.0 | 3.2 | 3.3 | |||||||||||
Expected return on plan assets | (11.0 | ) | (10.2 | ) | (3.7 | ) | (3.5 | ) | |||||||
Recognized net actuarial loss | 4.7 | 2.9 | 1.6 | .9 | |||||||||||
Net pension expense | $ | 5.4 | $ | 4.5 | $ | 1.9 | $ | 1.3 |
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Total Equity | Retained Earnings | Common Stock & Additional Contributed Capital | Treasury Stock | Noncontrolling Interest | Accumulated Other Comprehensive Income | ||||||||||||||||||
Beginning balance, January 1, 2012 | $ | 1,307.7 | $ | 2,027.4 | $ | 458.9 | $ | (1,254.3 | ) | $ | 10.5 | $ | 65.2 | ||||||||||
Net earnings | 176.5 | 176.5 | — | — | — | — | |||||||||||||||||
(Earnings) loss attributable to noncontrolling interest, net of tax | — | (1.8 | ) | — | — | 1.8 | — | ||||||||||||||||
Dividends declared | (119.4 | ) | (122.7 | ) | 3.3 | — | — | — | |||||||||||||||
Treasury stock purchased | (24.1 | ) | — | — | (24.1 | ) | — | — | |||||||||||||||
Treasury stock issued | 29.5 | — | (24.8 | ) | 54.3 | — | — | ||||||||||||||||
Foreign currency translation adjustments | 12.0 | — | — | — | — | 12.0 | |||||||||||||||||
Cash flow hedges, net of tax | (4.5 | ) | — | — | — | — | (4.5 | ) | |||||||||||||||
Defined benefit pension plans, net of tax | 2.5 | — | — | — | — | 2.5 | |||||||||||||||||
Stock options and benefit plan transactions, net of tax | 20.6 | — | 20.6 | — | — | — | |||||||||||||||||
Ending balance, September 30, 2012 | $ | 1,400.8 | $ | 2,079.4 | $ | 458.0 | $ | (1,224.1 | ) | $ | 12.3 | $ | 75.2 |
Nine Months Ended September 30, 2011 | |||||||||||||||||||||||
Total Equity | Retained Earnings | Common Stock & Additional Contributed Capital | Treasury Stock | Noncontrolling Interest | Accumulated Other Comprehensive Income | ||||||||||||||||||
Beginning balance, January 1, 2011 | $ | 1,524.4 | $ | 2,033.3 | $ | 465.2 | $ | (1,093.0 | ) | $ | 17.1 | $ | 101.8 | ||||||||||
Net earnings | 147.1 | 147.1 | — | — | — | — | |||||||||||||||||
(Earnings) loss attributable to noncontrolling interest, net of tax | — | (2.5 | ) | — | — | 2.5 | — | ||||||||||||||||
Dividends declared | (116.2 | ) | (119.1 | ) | 2.9 | — | — | — | |||||||||||||||
Acquisition of noncontrolling interest | (21.0 | ) | — | (10.8 | ) | — | (10.2 | ) | — | ||||||||||||||
Treasury stock purchased | (229.7 | ) | — | — | (229.7 | ) | — | — | |||||||||||||||
Treasury stock issued | 30.2 | — | (31.2 | ) | 61.4 | — | — | ||||||||||||||||
Foreign currency translation adjustments | (5.6 | ) | — | — | — | .5 | (6.1 | ) | |||||||||||||||
Cash flow hedges, net of tax | (20.7 | ) | — | — | — | — | (20.7 | ) | |||||||||||||||
Defined benefit pension plans, net of tax | 1.4 | — | — | — | — | 1.4 | |||||||||||||||||
Stock options and benefit plan transactions, net of tax | 28.2 | — | 28.2 | — | — | — | |||||||||||||||||
Ending balance, September 30, 2011 | $ | 1,338.1 | $ | 2,058.8 | $ | 454.3 | $ | (1,261.3 | ) | $ | 9.9 | $ | 76.4 |
Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance January 1, 2012 | $ | 147.6 | $ | (21.5 | ) | $ | (60.9 | ) | $ | 65.2 | |||||
Period change—Gross | 12.0 | (7.4 | ) | 4.1 | 8.7 | ||||||||||
Period change—Attributable to noncontrolling interest | — | — | — | — | |||||||||||
Period change—Income tax effect | — | 2.9 | (1.6 | ) | 1.3 | ||||||||||
Balance September 30, 2012 | $ | 159.6 | $ | (26.0 | ) | $ | (58.4 | ) | $ | 75.2 | |||||
Balance January 1, 2011 | $ | 151.1 | $ | 1.4 | $ | (50.7 | ) | $ | 101.8 | ||||||
Period change—Gross | (5.6 | ) | (33.3 | ) | 2.2 | (36.7 | ) | ||||||||
Period change—Attributable to noncontrolling interest | (.5 | ) | — | — | (.5 | ) | |||||||||
Period change—Income tax effect | — | 12.6 | (.8 | ) | 11.8 | ||||||||||
Balance September 30, 2011 | $ | 145.0 | $ | (19.3 | ) | $ | (49.3 | ) | $ | 76.4 |
• | Level 1: Quoted prices for identical assets or liabilities in active markets. |
• | Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, |
• | Level 3: Unobservable inputs that are not corroborated by market data. |
As of September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Bank time deposits with original maturities of three months or less | $ | — | $ | 123.4 | $ | — | $ | 123.4 | |||||||
Derivative assets | — | 1.5 | — | 1.5 | |||||||||||
Diversified investments associated with the ESUP | 6.3 | — | — | 6.3 | |||||||||||
Total assets | $ | 6.3 | $ | 124.9 | $ | — | $ | 131.2 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | .9 | $ | .7 | $ | — | $ | 1.6 | |||||||
Liabilities associated with the ESUP | 6.3 | — | — | 6.3 | |||||||||||
Total liabilities | $ | 7.2 | $ | .7 | $ | — | $ | 7.9 |
As of December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Bank time deposits with original maturities of three months or less | $ | — | $ | 111.8 | $ | — | $ | 111.8 | |||||||
Derivative assets | — | 3.2 | — | 3.2 | |||||||||||
Diversified investments associated with the ESUP | 2.5 | — | — | 2.5 | |||||||||||
Total assets | $ | 2.5 | $ | 115.0 | $ | — | $ | 117.5 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | 2.2 | $ | 34.8 | $ | — | $ | 37.0 | |||||||
Liabilities associated with the ESUP | 2.5 | — | — | 2.5 | |||||||||||
Total liabilities | $ | 4.7 | $ | 34.8 | $ | — | $ | 39.5 |
Percentage of fair value in excess of carrying value | September 30, 2012 goodwill value | Sales 10-year compound annual growth rate range | Terminal values long- term growth rate | Discount rate ranges | |||||||||||
10-25% | $ | 111.8 | 3.9% | 3% | 11.0% | ||||||||||
25%+ | 873.3 | 1.4 | % | - | 6.4% | 3% | 7.5 | % | - | 9.5% | |||||
$ | 985.1 | 1.4 | % | - | 6.4% | 3% | 7.5 | % | - | 11% |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total asset impairments | $ | 1.0 | $ | 3.4 | $ | — | $ | — |
• | Commodity Cash Flow Hedges—The commodity cash flow hedges manage natural gas commodity price risk. We are no longer hedging our commodity price risk so these hedges will continue to get smaller until all of the current hedges expire. |
• | Interest Rate Cash Flow Hedges—On August 15, 2012, we issued $300 of 10-year notes with a coupon rate of 3.40%. As a part of this transaction, we settled our $200 forward starting interest rate swaps we had entered into during 2010 and recognized a loss of $42.7, which will be amortized over the life of the notes. |
• | Currency Cash Flow Hedges—The currency hedges manage risk associated with exchange rate volatility of various foreign currencies. |
Maturity | Total USD Equivalent Notional Amount | As of September 30, 2012 | |||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||
Other Current Assets | Sundry | Other Current Liabilities | Other Long-Term Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Commodity hedges | Dec 2013 | $ | 3.4 | $ | — | $ | — | $ | .8 | $ | .1 | ||||||||||
Currency Hedges: | |||||||||||||||||||||
Future USD sales of Canadian subsidiaries | Dec 2013 | 21.0 | .7 | .1 | — | — | |||||||||||||||
Future USD sales of Chinese subsidiaries | Oct 2013 | 14.0 | — | — | .1 | — | |||||||||||||||
Future USD cost of goods sold of European subsidiary | Dec 2013 | 7.1 | .1 | — | — | — | |||||||||||||||
Total cash flow hedges | .8 | .1 | .9 | .1 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
USD inter-company note receivable on a Canadian subsidiary | Oct 2012 | 8.8 | .3 | — | — | — | |||||||||||||||
ZAR asset on a USD subsidiary | Oct 2012 | 22.1 | — | — | .4 | — | |||||||||||||||
USD inter-company note receivable on a European subsidiary | Nov 2012 | 3.5 | — | — | .2 | — | |||||||||||||||
USD inter-company note receivables on a Swiss subsidiary | Jan 2013 | 14.5 | .3 | — | — | — | |||||||||||||||
Total fair value hedges | .6 | — | .6 | — | |||||||||||||||||
$ | 1.4 | $ | .1 | $ | 1.5 | $ | .1 |
Maturity | Total USD Equivalent Notional Amount | As of December 31, 2011 | |||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||
Other Current Assets | Sundry | Other Current Liabilities | Other Long-Term Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Commodity hedges | Dec 2013 | $ | 6.2 | $ | — | $ | — | $ | 1.9 | $ | .3 | ||||||||||
Interest rate hedges | Aug 2012 | 200.0 | — | — | 32.4 | — | |||||||||||||||
Currency Hedges: | |||||||||||||||||||||
Future USD cost of goods sold of Canadian subsidiaries | Dec 2012 | 7.6 | .5 | — | — | — | |||||||||||||||
Future USD sales of a Chinese subsidiary | Dec 2012 | 44.1 | .1 | — | — | — | |||||||||||||||
Future MXP cost of goods sold of a US subsidiary | Dec 2012 | 1.1 | — | — | .1 | — | |||||||||||||||
Future EUR cost of goods sold of a US subsidiary | June 2012 | 1.6 | — | — | .1 | — | |||||||||||||||
Future USD sales of Canadian subsidiaries | Dec 2012 | 33.4 | Future USD sales of Canadian subsidiaries | .1 | — | .5 | — | ||||||||||||||
Total cash flow hedges | .7 | — | 35.0 | .3 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
USD inter-company note receivable on a Canadian subsidiary | Jan 2012 | 11.5 | — | — | .1 | — | |||||||||||||||
USD inter-company note receivable on a Switzerland subsidiary | Oct 2012 | 14.5 | — | — | 1.6 | — | |||||||||||||||
Total fair value hedges | — | — | 1.7 | — | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
Hedge of EUR inter-company note receivable from a European subsidiary | Dec 2012 | 28.0 | 2.5 | — | — | — | |||||||||||||||
$ | 3.2 | $ | — | $ | 36.7 | $ | .3 |
Income Statement Caption | Amount of (Gain) Loss Recorded in Income Nine Months Ended September 30 | Amount of (Gain) Loss Recorded in Income Three Months Ended September 30 | |||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||
Commodity cash flow hedges | Cost of goods sold | $ | 2.0 | $ | .8 | $ | .5 | $ | .2 | ||||||||
Interest rate cash flow hedges | Interest expense | .7 | — | .7 | — | ||||||||||||
Currency cash flow hedges | Net Sales | (.3 | ) | (.5 | ) | (.1 | ) | (.3 | ) | ||||||||
Currency cash flow hedges | Cost of goods sold | (.4 | ) | .3 | (.2 | ) | .3 | ||||||||||
Currency cash flow hedges | Other expense (income), net | .2 | .2 | .1 | .2 | ||||||||||||
Total cash flow hedges | 2.2 | .8 | 1.0 | .4 | |||||||||||||
Fair value hedges | Other expense (income), net | — | 1.6 | — | 1.4 | ||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Hedge of EUR cash—UK subsidiary | Other expense (income), net | — | (.1 | ) | — | (.2 | ) | ||||||||||
Hedge of USD cash—UK subsidiary | Other expense (income), net | — | (.3 | ) | — | (.3 | ) | ||||||||||
Hedge of EUR inter-company note receivable- European subsidiary | Other expense (income), net | (.8 | ) | .1 | — | (2.0 | ) | ||||||||||
Hedge of EUR inter-company note receivable- European subsidiary | Interest expense | .1 | .2 | — | .1 | ||||||||||||
Total derivative instruments | $ | 1.5 | $ | 2.3 | $ | 1.0 | $ | (.6 | ) |
Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
LIFO (income) expense | $ | (7.8 | ) | $ | 8.1 | $ | (5.7 | ) | (.9 | ) |
(Dollar amounts in millions) | Three Months ended September 30, 2012 Net Sales | Three Months ended September 30, 2011 Net Sales | Change in Net Sales | % Change in Same Location Sales(1) | |||||||||||||
$ | % | ||||||||||||||||
Residential Furnishings | $ | 481.7 | $ | 472.3 | $ | 9.4 | 2.0 | % | 1.9 | % | |||||||
Commercial Fixturing & Components | 162.8 | 141.7 | 21.1 | 14.9 | 21.2 | ||||||||||||
Industrial Materials | 218.0 | 216.7 | 1.3 | .6 | (8.1 | ) | |||||||||||
Specialized Products | 191.0 | 187.7 | 3.3 | 1.8 | 1.8 | ||||||||||||
Total | 1,053.5 | 1,018.4 | 35.1 | 3.4 | |||||||||||||
Intersegment sales | (71.3 | ) | (77.5 | ) | 6.2 | ||||||||||||
External sales | $ | 982.2 | $ | 940.9 | $ | 41.3 | 4.4 | % | 3.1 | % |
Three Months ended September 30, 2012 EBIT | Three Months ended September 30, 2011 EBIT | Change in EBIT | EBIT Margins(2) | |||||||||||||||||
(Dollar amounts in millions) | $ | % | Three Months ended September 30, 2012 | Three Months ended September 30, 2011 | ||||||||||||||||
Residential Furnishings | $ | 39.7 | $ | 33.5 | $ | 6.2 | 18.5 | % | 8.2 | % | 7.1 | % | ||||||||
Commercial Fixturing & Components | 19.2 | 6.7 | 12.5 | 186.6 | 11.8 | 4.7 | ||||||||||||||
Industrial Materials | 19.3 | 11.7 | 7.6 | 65.0 | 8.9 | 5.4 | ||||||||||||||
Specialized Products | 22.8 | 20.6 | 2.2 | 10.7 | 11.9 | 11.0 | ||||||||||||||
Intersegment eliminations & other | (1.8 | ) | (1.8 | ) | — | |||||||||||||||
Change in LIFO reserve | 5.7 | .9 | 4.8 | |||||||||||||||||
Total | $ | 104.9 | $ | 71.6 | $ | 33.3 | 46.5 | % | 10.7 | % | 7.6 | % |
(1) | The change in sales not attributable to acquisitions or divestitures. These are sales that come from the same plants and facilities that we owned one year earlier. |
(2) | Segment margins are calculated on total sales. Overall company margin is calculated on external sales. |
(Dollar amounts in millions) | Nine Months ended September 30, 2012 Net Sales | Nine Months ended September 30, 2011 Net Sales | Change in Net Sales | % Change in Same Location Sales(1) | |||||||||||||
$ | % | ||||||||||||||||
Residential Furnishings | $ | 1,449.0 | $ | 1,399.8 | $ | 49.2 | 3.5 | % | 3.2 | % | |||||||
Commercial Fixturing & Components | 391.9 | 409.5 | (17.6 | ) | (4.3 | ) | 1.4 | ||||||||||
Industrial Materials | 691.7 | 656.1 | 35.6 | 5.4 | (2.4 | ) | |||||||||||
Specialized Products | 572.2 | 549.0 | 23.2 | 4.2 | 4.3 | ||||||||||||
Total | 3,104.8 | 3,014.4 | 90.4 | 3.0 | |||||||||||||
Intersegment sales | (237.0 | ) | (232.5 | ) | (4.5 | ) | |||||||||||
External sales | $ | 2,867.8 | $ | 2,781.9 | $ | 85.9 | 3.1 | % | 1.9 | % |
(Dollar amounts in millions) | Nine Months ended September 30, 2012 EBIT | Nine Months ended September 30, 2011 EBIT | Change in EBIT | EBIT Margins(2) | ||||||||||||||||
$ | % | Nine Months Ended September 30, 2012 | Nine Months ended September 30, 2011 | |||||||||||||||||
Residential Furnishings | $ | 119.9 | $ | 116.8 | $ | 3.1 | 2.7 | % | 8.3 | % | 8.3 | % | ||||||||
Commercial Fixturing & Components | 29.5 | 22.4 | 7.1 | 31.7 | 7.5 | 5.5 | ||||||||||||||
Industrial Materials | 48.9 | 39.3 | 9.6 | 24.4 | 7.1 | 6.0 | ||||||||||||||
Specialized Products | 66.6 | 60.1 | 6.5 | 10.8 | 11.6 | 10.9 | ||||||||||||||
Intersegment eliminations & other | (7.0 | ) | (5.6 | ) | (1.4 | ) | ||||||||||||||
Change in LIFO reserve | 7.8 | (8.1 | ) | 15.9 | ||||||||||||||||
Total | $ | 265.7 | $ | 224.9 | $ | 40.8 | 18.1 | % | 9.3 | % | 8.1 | % |
(1) | The change in sales not attributable to acquisitions or divestitures. These are sales that come from the same plants and facilities that we owned one year earlier. |
(2) | Segment margins are calculated on total sales. Overall company margin is calculated on external sales. |
• | Uses of cash |
• | Cash from operations |
• | Working capital trends |
• | Debt position and total capitalization |
• | Finance capital requirements (e.g. productivity, growth and acquisitions) |
• | Pay dividends |
• | Repurchase our stock |
(Dollar amounts in millions) | Sep-11 | Dec-11 | Mar-12 | Jun-12 | Sep-12 | ||||||||||||||
Accounts Receivable, net | $ | 576.7 | $ | 503.6 | $ | 571.6 | $ | 557.6 | $ | 589.7 | |||||||||
Inventory, net | $ | 456.5 | $ | 441.0 | $ | 473.3 | $ | 517.6 | $ | 471.2 | |||||||||
Accounts Payable | $ | 274.2 | $ | 256.6 | $ | 298.2 | $ | 320.2 | $ | 292.0 |
(1) | The accounts receivable ratio represents the days of sales outstanding calculated as: ending net accounts receivable ÷ (quarter-to-date net sales ÷ number of days in the quarter). |
(2) | The inventory ratio represents days of inventory on hand calculated as: ending net inventory ÷ (quarter-to-date cost of goods sold ÷ number of days in the quarter). |
(3) | The accounts payable ratio represents the days of payables outstanding calculated as: ending accounts payable ÷ (quarter-to-date cost of goods sold ÷ number of days in the quarter). |
• | Accounts Receivable and Days Sales Outstanding (DSO): DSO fluctuates quarterly from normal differences in the timing of sales and cash receipts. Changes in the DSO reflected in the table above are consistent with our historical range, and are not indicative of changes in payment trends or credit worthiness of customers. We continue to focus on collection efforts to ensure customer accounts are paid on time. As part of our accounts receivable review process, we evaluate individual customers’ payment histories, financial health, industry prospects, and current macroeconomic events in determining if outstanding amounts are collectible. In the third quarter of 2012, we incurred $.8 million of bad debt expense as compared to $1.8 million in third quarter 2011. |
• | Inventory and Days Inventory on Hand (DIO): Our DIO typically fluctuates within a reasonably narrow range as a result of differences in the timing of sales, production levels, and inventory purchases. During the third quarter of 2012, we recognized expense of $2.7 million associated with obsolete and slow moving inventories as compared to $2.6 million in the third quarter of 2011. We do not expect significant changes in customer or industry trends that would materially increase our exposure to inventory obsolescence. |
• | Accounts Payable and Days Payable Outstanding (DPO): Changes in the DPO reflected in the table above are the result of normal fluctuation in our operating activity. We actively strive to optimize payment terms with our vendors, and over the last few years, have increased our DPO by more than ten days. |
(Dollar amounts in millions) | September 30, 2012 | December 31, 2011 | |||||
Long-term debt outstanding: | |||||||
Scheduled maturities | $ | 853 | $ | 763 | |||
Average interest rates* | 4.7 | % | 4.6 | % | |||
Average maturities in years* | 5.0 | 3.8 | |||||
Revolving credit/commercial paper | 7 | 70 | |||||
Total long-term debt | 860 | 833 | |||||
Deferred income taxes and other liabilities | 189 | 188 | |||||
Shareholders’ equity and noncontrolling interest | 1,401 | 1,308 | |||||
Total capitalization | $ | 2,450 | $ | 2,329 | |||
Unused committed credit: | |||||||
Long-term | $ | 593 | $ | 530 | |||
Short-term | — | — | |||||
Total unused committed credit | $ | 593 | $ | 530 | |||
Current maturities of long-term debt | $ | 202 | $ | 3 | |||
Cash and cash equivalents | $ | 265 | $ | 236 | |||
Ratio of earnings to fixed charges** | 6.6 | 4.8 |
* | These calculations include current maturities, but exclude commercial paper to reflect the averages of outstanding debt with scheduled maturities. |
** | As presented in Exhibit 12, fixed charges include interest expense, capitalized interest, plus implied interest included in operating leases. Earnings consist principally of income from continuing operations before income taxes, plus fixed charges less capitalized interest. |
• | Long-term debt to total capitalization as reported in the previous table. |
• | Long-term debt to total capitalization each reduced by total cash and increased by current maturities of long-term debt. |
(Amounts in millions) | September 30, 2012 | December 31, 2011 | |||||
Debt to total capitalization: | |||||||
Long-term debt | $ | 860 | $ | 833 | |||
Current debt maturities | 202 | 3 | |||||
Cash and cash equivalents | (265 | ) | (236 | ) | |||
Net debt | $ | 797 | $ | 600 | |||
Total Capitalization | $ | 2,450 | $ | 2,329 | |||
Current debt maturities | 202 | 3 | |||||
Cash and cash equivalents | (265 | ) | (236 | ) | |||
Net capitalization | $ | 2,387 | $ | 2,096 | |||
Long-term debt to total capitalization | 35.1 | % | 35.8 | % | |||
Net debt to net capitalization | 33.4 | % | 28.6 | % |
(Amounts in millions) | September 30, 2012 | December 31, 2011 | |||||
Total program authorized | $ | 600 | $ | 600 | |||
Commercial paper outstanding (classified as long-term debt) | (7 | ) | (70 | ) | |||
Letters of credit issued under the credit agreement | — | — | |||||
Total program usage | (7 | ) | (70 | ) | |||
Total program available | $ | 593 | $ | 530 |
• | factors that could affect the industries or markets in which we participate, such as growth rates and opportunities in those industries; |
• | adverse changes in inflation, currency, political risk, U.S. or foreign laws or regulations, consumer sentiment, 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 and other raw materials, 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 improve operations and realize cost savings (including our ability to fix under-performing operations and to generate future earnings from restructuring-related activities); |
• | our ability to maintain profit margins if our customers change the quantity and mix of our components in their finished goods; |
• | our ability to achieve expected levels of cash flow; |
• | our ability to maintain and grow the profitability of acquired companies; |
• | our ability to maintain the proper functioning of our internal business processes and information systems and avoid modification or interruption of such systems, through cyber-security breaches or otherwise; |
• | a decline in the long-term outlook for any of our reporting units that could result in asset impairment; and |
• | litigation including product liability and warranty, taxation, environmental, intellectual property, anti-trust and workers’ compensation expense. |
(Dollar amounts in millions) | September 30, 2012 Book Value | % of Total Assets | ||||
Goodwill | $ | 985.1 | ||||
Other intangibles | 205.3 | |||||
Total goodwill and other intangibles | $ | 1,190.4 | 37 | % | ||
Net property, plant and equipment | $ | 575.4 | ||||
Other long-lived assets | 101.4 | |||||
Total net property, plant and equipment and other long- lived assets | $ | 676.8 | 21 | % |
Percentage of fair value in excess of carrying value | September 30, 2012 goodwill value (in millions) | Sales 10-year compound annual growth rate range | Terminal values long- term growth rate | Discount rate ranges | |||||
10-25% | $ | 111.8 | 3.9% | 3% | 11.0% | ||||
25%+ | 873.3 | 1.4% - 6.4% | 3% | 7.5% - 9.5% | |||||
$ | 985.1 | 1.4% - 6.4% | 3% | 7.5% - 11.0% |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that may yet be Purchased Under the Plans or Programs (2) | ||||||||
July 2012 | 0 | $ | — | 0 | 9,974,012 | |||||||
August 2012 | 226,512 | $ | 23.35 | 172,895 | 9,801,117 | |||||||
September 2012 | 341,018 | $ | 24.44 | 144,668 | 9,656,449 | |||||||
Total | 567,530 | $ | 24.01 | 317,563 |
(1) | This number includes 249,967 shares which were not repurchased as part of a publicly announced plan or program, all of which were outstanding shares surrendered to exercise stock options. It does not include shares withheld for taxes in option exercises and stock unit conversions, or forfeited stock units during the quarter. |
(2) | On August 4, 2004, the Board authorized management to repurchase up to 10 million shares each calendar year beginning January 1, 2005. This standing authorization was first reported in the quarterly report on Form 10-Q for the period ended June 30, 2004, filed August 5, 2004, and shall remain in force until repealed by the Board of Directors. |
ITEM 6. | EXHIBITS |
Exhibit | ||
Exhibit 4.1 | - | Senior 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) |
Exhibit 4.2 | - | Tri-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, is incorporated by reference. (SEC File No. 001-07845) |
Exhibit 4.3 | - | Form of 3.40% Senior Notes due 2022, filed August 15, 2012 as Exhibit 4.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845) |
Exhibit 12* | - | Computation of Ratio of Earnings to Fixed Charges. |
Exhibit 31.1* | - | Certification of David S. Haffner, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. |
Exhibit 31.2* | - | Certification of Matthew C. Flanigan, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. |
Exhibit 32.1* | - | Certification of David S. Haffner, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. |
Exhibit 32.2* | - | Certification of Matthew C. Flanigan, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. |
Exhibit 101.INS** | - | XBRL Instance Document. |
Exhibit 101.SCH** | - | XBRL Taxonomy Extension Schema. |
Exhibit 101.CAL** | - | XBRL Taxonomy Extension Calculation Linkbase. |
Exhibit 101.DEF** | - | XBRL Taxonomy Extension Definition Linkbase Document. |
Exhibit 101.LAB** | - | XBRL Taxonomy Extension Label Linkbase. |
Exhibit 101.PRE** | - | XBRL Taxonomy Extension Presentation Linkbase. |
* | Denotes filed herewith. |
** | Furnished as Exhibit 101 to this report are the following formatted in XBRL (eXtensible Business Reporting Language): |
(i) | Consolidated Condensed Balance Sheets at September 30, 2012 and December 31, 2011; (ii) Consolidated Condensed Statements of Operations for the nine and three months ended September 30, 2012 and September 30, 2011; (iii) Consolidated Statements of Comprehensive Income (Loss) for the nine and three months ended September 30, 2012 and September 30, 2011; (iv) Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2012 and September 30, 2011; and (v) Notes to Consolidated Condensed Financial Statements. |
LEGGETT & PLATT, INCORPORATED | ||||
DATE: November 8, 2012 | By: | /s/ DAVID S. HAFFNER | ||
David S. Haffner President and Chief Executive Officer | ||||
DATE: November 8, 2012 | By: | /s/ MATTHEW C. FLANIGAN | ||
Matthew C. Flanigan Senior Vice President – Chief Financial Officer |
Exhibit | ||
Exhibit 4.1 | Senior 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) | |
Exhibit 4.2 | Tri-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, is incorporated by reference. (SEC File No. 001-07845) | |
Exhibit 4.3 | Form of 3.40% Senior Notes due 2022, filed August 15, 2012 as Exhibit 4.3 to the Company's Form 8-K, is incorporated by reference. (SEC File No. 001-07845) | |
Exhibit 12* | Computation of Ratio of Earnings to Fixed Charges. | |
Exhibit 31.1* | Certification of David S. Haffner, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. | |
Exhibit 31.2* | Certification of Matthew C. Flanigan, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. | |
Exhibit 32.1* | Certification of David S. Haffner, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. | |
Exhibit 32.2* | Certification of Matthew C. Flanigan, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 8, 2012. | |
Exhibit 101.INS** | XBRL Instance Document. | |
Exhibit 101.SCH** | XBRL Taxonomy Extension Schema. | |
Exhibit 101.CAL** | XBRL Taxonomy Extension Calculation Linkbase. | |
Exhibit 101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. | |
Exhibit 101.LAB** | XBRL Taxonomy Extension Label Linkbase. | |
Exhibit 101.PRE** | XBRL Taxonomy Extension Presentation Linkbase. |
* | Denotes filed herewith. |
** | Furnished as Exhibit 101 to this report are the following formatted in XBRL (eXtensible Business Reporting Language): |
(i) | Consolidated Condensed Balance Sheets at September 30, 2012 and December 31, 2011; (ii) Consolidated Condensed Statements of Operations for the nine and three months ended September 30, 2012 and September 30, 2011; (iii) Consolidated Statements of Comprehensive Income (Loss) for the nine and three months ended September 30, 2012 and September 30, 2011; (iv) Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2012 and September 30, 2011; and (v) Notes to Consolidated Condensed Financial Statements. |
Leggett & Platt, Incorporated and Subsidiaries | |||||||||||||||||||||||||||||
Computation of Earnings to Fixed Charges | Exhibit 12 | ||||||||||||||||||||||||||||
(Amounts in millions of dollars) | |||||||||||||||||||||||||||||
Nine Months | Twelve Months Ended | ||||||||||||||||||||||||||||
Ended | December 31, | ||||||||||||||||||||||||||||
9/30/2012 | 9/30/2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||||
Pre-tax income from continuing operations including equity-method investment earnings (a) | $240.2 | $201.6 | $206.2 | $255.5 | $198.4 | $192.6 | $147.3 | ||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Interest expense (including amount capitalized) | 30.9 | 28.8 | 39.0 | 38.1 | 38.3 | 50.5 | 61.9 | ||||||||||||||||||||||
Portion of rental expense under operating leases representative of an interest factor (b) | 12.0 | 12.7 | 14.6 | 15.4 | 16.9 | 21.5 | 24.3 | ||||||||||||||||||||||
Amortization of capitalized interest | .7 | .7 | 1.0 | 1.0 | .9 | .8 | .8 | ||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Equity-method investment (earnings) loss | (.3 | ) | (.3 | ) | (.4 | ) | (.1 | ) | .6 | .1 | .1 | ||||||||||||||||||
Interest capitalized | (.5 | ) | (.3 | ) | (.7 | ) | (.4 | ) | (.9 | ) | (1.0 | ) | (1.0 | ) | |||||||||||||||
Total Earnings (c) | $ | 283.0 | $ | 243.2 | $ | 259.7 | $ | 309.5 | $ | 254.2 | $ | 264.5 | $ | 233.4 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | $30.4 | $28.5 | $38.3 | $37.7 | $37.4 | $49.5 | $60.9 | ||||||||||||||||||||||
Interest capitalized | .5 | .3 | .7 | .4 | .9 | 1.0 | 1.0 | ||||||||||||||||||||||
Portion of rental expense under operating leases representative of an interest factor (b) | 12.0 | 12.7 | 14.6 | 15.4 | 16.9 | 21.5 | 24.3 | ||||||||||||||||||||||
Total Fixed Charges | $ | 42.9 | $ | 41.5 | $ | 53.6 | $ | 53.5 | $ | 55.2 | $ | 72.0 | $ | 86.2 | |||||||||||||||
Ratio of Earnings to Fixed Charges | 6.6 | 5.9 | 4.8 | 5.8 | 4.6 | 3.7 | 2.7 |
1. | I have reviewed this report on Form 10-Q of Leggett & Platt, Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 8, 2012 | /s/ David S. Haffner |
David S. Haffner | |
President and Chief Executive Officer | |
Leggett & Platt, Incorporated |
1. | I have reviewed this report on Form 10-Q of Leggett & Platt, Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 8, 2012 | /s/ Matthew C. Flanigan | |
Matthew C. Flanigan | |||
Senior Vice President and Chief Financial Officer | |||
Leggett & Platt, Incorporated |
/s/ David S. Haffner |
David S. Haffner |
President and Chief Executive Officer |
/s/ Matthew C. Flanigan |
Matthew C. Flanigan |
Senior Vice President and Chief Financial Officer |
5R7%Y
MY?DAP,8V[.>N=PKG8_`?B-X;M[F:REN)8;1,7.H7%TLSPSB5G;>OR!AGY%&!
M^->GT4+1I_U_7_`[$VTM_7]?UU.,B\,:K W
M?^W+ZYL=0O[O1Q"D/FW=T\XN+@,Q>2/<2%4`A3LPI.0!\M;WLESJ$LMO=75I/'J#2VUPB-NV&-C
MB%D!`R@VD9RV>*N'Q+XILO#MY>ZGI]K;2K<6L=M/.B1Q.LLJHVY8YY<;0V=V
M_G/3CGK+;0])L[NYN[72[*"YNL_:)HK=%>;)R=[`9;)YYJB_@[0!ITEA:Z7:
M6-O+-#-*MG;QQ"0QN'4,`N",K@Y[$]*%T^7Y@]QNBWVH:DNL:=>W4'VNRG^S
M_:[&+8/FC5P0CEPK+OQ@EAP#WQ63H;QGP;J:ZKJ][';0:C=1O=O=,)1&EPP"
M^9]X9`"\8//BNHM=(TRRTYM.M-.M+>Q8,&MHH%2,AOO94#'/?UJI%X3\-P
M6<]G#X?TJ.UN"IFA2RC"2[3E=R@8.#TSTH_R#_,A\(V]];Z&?MK76))Y)+>.
M[D:2:*%F)1'9B6+`>I)&<9XK>JGIVE:=H]N;?3-/M;*`MO,5M"L2EO7"@#/`
MJY38D%%%%(84444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4
M444`%%%%`!5";_D8+/\`Z]9__0XJOU0F_P"1@L_^O6?_`-#BH`OT444`%%%%
M`!1110`4444`%%%%`!1110!0T?\`X\I/^OJX_P#1SU?JAH__`!Y2?]?5Q_Z.
M>K]`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`'(W7Q#TR
MU2\NA8ZC-I5C9KK4XHT,$3@@-P7$C!20"50CKUQ70'6]*4.6U.R'ERI"^9
MU&V1\;4//#'(P.IR*\]U/P7XHMO!^O\`AK2HM+N;"^N)9X9I+IXYU21@[1[/
M+*EL[E#;P.02!23>`]
Summary of Restructuring-Related Costs (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | $ 1.2 | $ 2.6 | $ 3.9 | $ 4.7 |
Charged To Other (Income) Expense, Net | Severance and other restructuring costs
|
||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | 1.3 | 2.6 | 5.7 | 4.8 |
Charged To Other (Income) Expense, Net | (Gain) from sale Of assets
|
||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | $ (0.1) | $ 0 | $ (1.8) | $ (0.1) |
Schedule of Performance Stock Unit Liability (Detail) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
PSU liability to be settled in cash | $ 4.9 | $ 3.1 |
Calculation and Assumptions Utilized in Calculation of Fair Values of Options Granted (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options granted (in millions) | 0.9 | 1.0 |
Aggregate grant date fair value | $ 4.0 | $ 4.9 |
Weighted-average per share grant date fair value | $ 4.68 | $ 4.90 |
Risk-free interest rate | 1.90% | 2.70% |
Expected life in years | 7 years 2 months | 7 years 1 month |
Expected volatility (over expected life) | 34.40% | 33.30% |
Expected dividend yield (over expected life) | 4.80% | 4.70% |
Cash payments to employees elected in lieu of options | $ 0.3 | $ 0.3 |
RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments at Fair Value |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) of Hedging Activites Recorded in Income | The following table sets forth the pre-tax (gains) losses from continuing operations for our hedging activities for the years presented. This schedule includes reclassifications from accumulated other comprehensive income as well as derivative settlements recorded directly to income or expense.
|
RESTRUCTURING (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring-Related Costs | Our total restructuring-related costs (excluding long-lived asset impairments) for the periods presented were comprised of:
|
Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Business Combinations [Abstract] | ||
Accounts receivable | $ 8.8 | $ 1.5 |
Inventory | 18.9 | 1.8 |
Property, plant and equipment | 12.0 | 1.1 |
Goodwill | 54.3 | 1.9 |
Other intangible assets (average weighted amortization period of 16.5 years) | 102.4 | 0 |
Other intangible assets, average weighted amortization period | 16 years 6 months | |
Accounts payable and accrued liabilities | (6.8) | (1.2) |
Other assets and liabilities, net | 0.6 | (0.4) |
Additional consideration for prior year's acquisitions | 0.1 | 1.9 |
Net cash consideration | $ 190.3 | $ 6.6 |
Accounts and Other Receivables - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Receivables [Abstract] | ||
Past due amounts for other notes | $ 2.0 | $ 5.0 |
Past due amounts on non-accrual status | $ 1.0 | $ 4.0 |
Results from Discontinued Operations and Activity Directly Related to Divestitures (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 0 | $ 0 | $ (1.5) | $ 0 |
Earnings from discontinued operations (net of tax) | 0 | 0 | 2.4 | 0 |
Residential Furnishings-Prime Foam Products Unit
|
||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Earnings before interest and income taxes: | $ 0 | $ 0 | $ 3.9 | $ 0 |
Components of Net Pension (Expense) Income (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Compensation and Retirement Disclosure [Abstract] | ||||
Expected employer contribution | $ 7 | $ 7 | ||
Service cost | 0.8 | 0.6 | 2.2 | 1.8 |
Interest cost | 3.2 | 3.3 | 9.5 | 10.0 |
Expected return on plan assets | (3.7) | (3.5) | (11.0) | (10.2) |
Recognized net actuarial loss | 1.6 | 0.9 | 4.7 | 2.9 |
Net pension expense | $ 1.9 | $ 1.3 | $ 5.4 | $ 4.5 |
Gains (Losses) of Hedging Activities Recorded in Income (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Derivatives designated as hedging instruments | Cash Flow Hedging
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | $ 1.0 | $ 0.4 | $ 2.2 | $ 0.8 |
Derivatives designated as hedging instruments | Fair value hedges | Other expense (income), net
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0 | 1.4 | 0 | 1.6 |
Derivatives not designated as hedging instruments
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 1.0 | (0.6) | 1.5 | 2.3 |
Commodity cash flow hedges | Derivatives designated as hedging instruments | Cash Flow Hedging | Cost of goods sold
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0.5 | 0.2 | 2.0 | 0.8 |
Interest rate cash flow hedges | Derivatives designated as hedging instruments | Cash Flow Hedging | Interest expense
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0.7 | 0 | 0.7 | 0 |
Currency cash flow hedges | Derivatives designated as hedging instruments | Cash Flow Hedging | Cost of goods sold
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | (0.2) | 0.3 | (0.4) | 0.3 |
Currency cash flow hedges | Derivatives designated as hedging instruments | Cash Flow Hedging | Net Sales
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | (0.1) | (0.3) | (0.3) | (0.5) |
Currency cash flow hedges | Derivatives designated as hedging instruments | Cash Flow Hedging | Other expense (income), net
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0.1 | 0.2 | 0.2 | 0.2 |
Hedge of EUR cash--UK subsidiary | Derivatives not designated as hedging instruments | Other expense (income), net
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0 | (0.2) | 0 | (0.1) |
Hedge of USD cash--UK subsidiary | Derivatives not designated as hedging instruments | Other expense (income), net
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0 | (0.3) | 0 | (0.3) |
Hedge of EUR inter-company note receivable from a European subsidiary | Derivatives not designated as hedging instruments | Other expense (income), net
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | 0 | (2.0) | (0.8) | 0.1 |
Hedge of EUR inter-company note receivable from a European subsidiary | Derivatives not designated as hedging instruments | Interest expense
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) recorded in income | $ 0 | $ 0.1 | $ 0.1 | $ 0.2 |
Number of Shares and Related Grant Date Fair Value of PSUs (Detail) (Performance Stock Unit, USD $)
In Millions, except Per Share data, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Performance Stock Unit
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares base award (in millions) | 0.3 | 0.3 |
Grant date per share fair value | $ 23.79 | $ 25.41 |
INVENTORIES
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES About 60% of our inventories are valued using the Last-In, First-Out (LIFO) cost method and the remainder using the First-In, First-Out (FIFO) cost method. We calculate our LIFO reserve (the excess of FIFO cost over LIFO cost) on an annual basis. During interim periods, we estimate the current year annual change in the LIFO reserve (i.e., the annual LIFO expense or benefit) and allocate that change ratably to the four quarters. Because accurately predicting inventory prices for the year is difficult, the change in the LIFO reserve for the full year could be significantly different from the amount currently estimated. In addition, a variation in expected ending inventory levels could also impact total change in the LIFO reserve for the year. Any change in the annual LIFO estimate will be reflected in the fourth quarter. The following table contains the LIFO (income) expense included in earnings for each of the periods presented.
|
Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | 26 Months Ended | 20 Months Ended | 4 Months Ended | 9 Months Ended | 41 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2012
Antitrust Lawsuits
Defendant
|
Sep. 30, 2012
Antitrust Lawsuits
Canada
Defendant
|
Sep. 30, 2012
Antitrust Lawsuits
Punitive Damages
Canada
|
Sep. 30, 2012
Antitrust Lawsuits
Direct Purchaser Class Action Cases
direct_purchaser_class_action_case
|
Sep. 30, 2012
Antitrust Lawsuits
Individual Direct Purchaser Cases
direct_purchaser_class_action_case
|
Sep. 30, 2012
Brazilian Value- Added Tax Matters
|
Sep. 30, 2012
Brazilian Value- Added Tax Matters
|
Sep. 30, 2012
Brazilian Value- Added Tax Matters
|
Sep. 30, 2012
Brazilian Value- Added Tax Matters
Tax Credit Matters
|
Jan. 24, 2012
Patent Infringement Claim
|
Sep. 30, 2011
Patent Infringement Claim
patent
|
|
Commitments And Contingencies [Line Items] | ||||||||||||
Charges against earnings | $ 0 | |||||||||||
Number of defendants | 20 | 15 | ||||||||||
Named as a defendant in pending cases | 2 | 3 | 35 | |||||||||
General and special damages | 100.0 | 10.0 | 2.3 | 4.0 | 3.3 | 1.0 | 5.0 | |||||
Number of patents infringed | 3 | |||||||||||
Alleged damages amount | $ 16.2 |