Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

In addition, certain financial statement line items in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the years ended December 31, 2020 and 2019 and our Consolidated Balance Sheet as of December 31, 2020, were adjusted as follows:


	As Originally Reported		Effect of Change		As Adjusted
Consolidated Statement of Operations for the year ended December 31, 2020
Cost of goods sold	$	3,385.7	$	(9.6)	$	3,376.1
Other (income) expense, net	(25.0)		2.6		(22.4)
Earnings before interest and income taxes	400.5		7.0		407.5
Income taxes	73.2		1.6		74.8
Net earnings	247.7		5.4		253.1

Net earnings per share attributable to Leggett & Platt, Inc. common shareholders:
Basic	$	1.82	$	.04	$	1.86
Diluted	$	1.82	$	.04	$	1.86




Consolidated Statement of Operations for the year ended December 31, 2019
Cost of goods sold	$	3,701.9	$	26.6	$	3,728.5
Earnings before interest and income taxes	513.4		(26.6)		486.8
Income taxes	96.2		(6.8)		89.4
Net earnings	333.9		(19.8)		314.1

Net earnings per share attributable to Leggett & Platt, Inc. common shareholders:
Basic	$	2.48	$	(.15)	$	2.33
Diluted	$	2.47	$	(.15)	$	2.32

Consolidated Balance Sheet as of December 31, 2020
Inventories	$	645.5	$	46.0	$	691.5
Deferred income taxes	194.2		11.2		205.4
Retained earnings	2,762.4		34.8		2,797.2

Consolidated Statement of Cash Flows for the year ended December 31, 2020
Net earnings	$	247.7	$	5.4	$	253.1
Writedown of inventories	10.9		2.7		13.6
Net gain from sales of assets and businesses	(2.5)		2.5		—
Deferred income tax (benefit) expense	(22.5)		1.6		(20.9)
Inventories	(19.7)		(12.2)		(31.9)

Consolidated Statement of Cash Flows for the year ended December 31, 2019
Net earnings	$	333.9	$	(19.8)	$	314.1
Writedown of inventories	9.0		6.1		15.1
Deferred income tax (benefit) expense	7.6		(6.8)		.8
Inventories	53.3		20.5		73.8

The following table compares the amounts that would have been reported under LIFO with the amounts recorded under FIFO in the Consolidated Financial Statements as of December 31, 2021 and for the year then ended:


	As Reported under FIFO		LIFO Calculations		Computed as if the LIFO Methodology was Utilized
Consolidated Statement of Operations for the year ended December 31, 2021
Cost of goods sold	$	4,034.3	$	66.9	$	4,101.2

Earnings before interest and income taxes	596.0		(66.9)		529.1
Income taxes	119.5		(16.5)		103.0
Net earnings	402.6		(50.4)		352.2
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders:
Basic	$	2.95	$	(.37)	$	2.58
Diluted	$	2.94	$	(.37)	$	2.57
Consolidated Balance Sheet as of December 31, 2021
Inventories	$	993.2	$	(112.9)	$	880.3
Deferred income taxes	217.4		(27.7)		189.7
Retained earnings	2,973.0		(85.2)		2,887.8
Consolidated Statement of Cash Flows for the year ended December 31, 2021
Net earnings	$	402.6	$	(50.4)	$	352.2
Writedown of inventories	13.7		(2.2)		11.5

Deferred income tax (benefit) expense	(8.5)		(16.5)		(25.0)
Inventories	(305.0)		69.1		(235.9)

Schedule of Inventory

The following table recaps the components of inventory for each period presented:


	December 31, 2021		December 31, 2020
Finished goods	$	429.1	$	303.8
Work in process	66.9		47.2
Raw materials and supplies	497.2		340.5

Inventories	$	993.2	$	691.5

Schedule of Property, Plant and Equipment

The table below presents the depreciation periods of the estimated useful lives of our property, plant and equipment. Accelerated methods are used for tax purposes.


	Useful Life Range	Weighted Average Life
Machinery and equipment	3-20 years	10 years
Buildings	5-40 years	27 years
Other items	3-15 years	10 years

Summary of Other Intangible Assets


	Useful Life Range	Weighted Average Life
Other intangible assets	1-20 years	15 years