Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q 
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2016
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from             to
Commission File Number 001-07845
LEGGETT & PLATT, INCORPORATED
(Exact name of registrant as specified in its charter)
 
Missouri
 
44-0324630
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
No. 1 Leggett Road
Carthage, Missouri
 
64836
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code (417) 358-8131
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   ý     No   ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).     Yes   ý     No   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
ý
  
Accelerated filer
 
¨
 
 
 
 
Non-accelerated filer
 
¨  (Do not check if a smaller reporting company)
  
Smaller reporting company
 
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes   ¨     No   ý
Common stock outstanding as of August 1, 2016: 133,671,613




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
LEGGETT & PLATT, INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Amounts in millions)
June 30,
2016
 
December 31,
2015
CURRENT ASSETS
 
 
 
Cash and cash equivalents
$
284.8

 
$
253.2

Trade receivables, net
490.3

 
448.7

Other receivables, net
44.4

 
71.5

Total receivables, net
534.7

 
520.2

Inventories
 
 
 
Finished goods
258.8

 
242.8

Work in process
43.1

 
42.6

Raw materials and supplies
252.0

 
241.8

LIFO reserve
(30.5
)
 
(22.6
)
Total inventories, net
523.4

 
504.6

Other current assets
37.2

 
33.2

Total current assets
1,380.1

 
1,311.2

PROPERTY, PLANT AND EQUIPMENT—AT COST
 
 
 
Machinery and equipment
1,124.4

 
1,099.1

Buildings and other
545.2

 
548.2

Land
39.3

 
40.0

Total property, plant and equipment
1,708.9

 
1,687.3

Less accumulated depreciation
1,155.8

 
1,146.5

Net property, plant and equipment
553.1

 
540.8

OTHER ASSETS
 
 
 
Goodwill
800.1

 
806.1

Other intangibles, less accumulated amortization of $133.8 and $139.8 as of June 30, 2016 and December 31, 2015, respectively
175.2

 
188.4

Sundry
123.3

 
117.2

Total other assets
1,098.6

 
1,111.7

TOTAL ASSETS
$
3,031.8

 
$
2,963.7

CURRENT LIABILITIES
 
 
 
Current maturities of long-term debt
$
3.6

 
$
3.4

Accounts payable
339.8

 
307.2

Accrued expenses
266.9

 
286.7

Other current liabilities
88.7

 
103.9

Total current liabilities
699.0

 
701.2

LONG-TERM LIABILITIES
 
 
 
Long-term debt
1,044.3

 
941.5

Other long-term liabilities
178.3

 
184.7

Deferred income taxes
44.6

 
38.6

Total long-term liabilities
1,267.2

 
1,164.8

COMMITMENTS AND CONTINGENCIES

 

EQUITY
 
 
 
Common stock
2.0

 
2.0

Additional contributed capital
504.7

 
529.5

Retained earnings
2,329.0

 
2,209.2

Accumulated other comprehensive loss
(77.0
)
 
(91.1
)
Treasury stock
(1,695.4
)
 
(1,564.0
)
Total Leggett & Platt, Inc. equity
1,063.3

 
1,085.6

Noncontrolling interest
2.3

 
12.1

Total equity
1,065.6

 
1,097.7

TOTAL LIABILITIES AND EQUITY
$
3,031.8

 
$
2,963.7

See accompanying notes to consolidated condensed financial statements.

2


LEGGETT & PLATT, INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Six Months Ended
 
Three Months Ended
 
June 30,
 
June 30,
(Amounts in millions, except per share data)
2016
 
2015
 
2016
 
2015
Net sales
$
1,897.3

 
$
1,963.5

 
$
958.9

 
$
997.3

Cost of goods sold
1,429.7

 
1,515.0

 
724.9

 
766.6

Gross profit
467.6

 
448.5

 
234.0

 
230.7

Selling and administrative expenses
204.8

 
204.1

 
99.7

 
106.6

Amortization of intangibles
9.9

 
10.4

 
4.8

 
5.2

Goodwill impairment
3.7

 
4.1

 
3.7

 
—

Gain from sale of assets and businesses
(20.7
)
 
(2.5
)
 
(18.3
)
 
(.9
)
Other (income) expense, net
(3.7
)
 
1.5

 
(2.4
)
 
.6

Earnings from continuing operations before interest and income taxes
273.6

 
230.9

 
146.5

 
119.2

Interest expense
19.5

 
22.2

 
10.3

 
11.2

Interest income
1.8

 
2.3

 
1.0

 
1.0

Earnings from continuing operations before income taxes
255.9

 
211.0

 
137.2

 
109.0

Income taxes
65.4

 
61.0

 
37.7

 
32.3

Earnings from continuing operations
190.5

 
150.0

 
99.5

 
76.7

Earnings from discontinued operations, net of tax
20.4

 
1.3

 
20.3

 
1.8

Net earnings
210.9

 
151.3

 
119.8

 
78.5

(Earnings) loss attributable to noncontrolling interest, net of tax
(.2
)
 
(1.9
)
 
1.4

 
(.8
)
Net earnings attributable to Leggett & Platt, Inc. common shareholders
$
210.7

 
$
149.4

 
$
121.2

 
$
77.7

Earnings per share from continuing operations attributable to Leggett & Platt, Inc. common shareholders
 
 
 
 
 
 
 
Basic
$
1.37

 
$
1.04

 
$
.73

 
$
.54

Diluted
$
1.35

 
$
1.03

 
$
.72

 
$
.53

Earnings per share from discontinued operations attributable to Leggett & Platt, Inc. common shareholders
 
 
 
 
 
 
 
Basic
$
.15

 
$
.01

 
$
.15

 
$
.01

Diluted
$
.15

 
$
.01

 
$
.15

 
$
.01

Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
 
 
 
 
 
 
 
Basic
$
1.52

 
$
1.05

 
$
.88

 
$
.55

Diluted
$
1.50

 
$
1.04

 
$
.87

 
$
.54

 
 
 
 
 
 
 
 
Cash dividends declared per share
$
.66

 
$
.62

 
$
.34

 
$
.31

 
 
 
 
 
 
 
 
Average shares outstanding
 
 
 
 
 
 
 
Basic
138.4

 
141.7

 
137.8

 
141.4

Diluted
140.6

 
143.6

 
140.1

 
143.4

See accompanying notes to consolidated condensed financial statements.

3


LEGGETT & PLATT, INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
 
 
Six Months Ended
 
Three Months Ended
 
June 30,
 
June 30,
(Amounts in millions)
2016
 
2015
 
2016
 
2015
Net earnings
$
210.9

 
$
151.3

 
$
119.8

 
$
78.5

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments
5.5

 
(35.0
)
 
(16.9
)
 
2.8

Cash flow hedges
6.0

 
(.4
)
 
(.5
)
 
1.3

Defined benefit pension plans
1.6

 
1.8

 
.9

 
.5

Other comprehensive income (loss)
13.1

 
(33.6
)
 
(16.5
)
 
4.6

Comprehensive income
224.0

 
117.7

 
103.3

 
83.1

Less: comprehensive loss (income) attributable to noncontrolling interest
.8

 
(2.0
)
 
2.4

 
(.9
)
Comprehensive income attributable to Leggett & Platt, Inc.
$
224.8

 
$
115.7

 
$
105.7

 
$
82.2

See accompanying notes to consolidated condensed financial statements.

4

LEGGETT & PLATT, INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six Months Ended June 30,
(Amounts in millions)
2016
 
2015
OPERATING ACTIVITIES
 
 
 
Net earnings
$
210.9

 
$
151.3

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Depreciation
43.0

 
41.7

Amortization of intangibles and debt issuance costs
14.2

 
14.8

Provision for losses on accounts and notes receivable
1.6

 
2.9

Writedown of inventories
2.4

 
5.1

Goodwill impairment
3.7

 
4.1

Long-lived asset impairments
—

 
2.4

Net gain from sales of assets and businesses
(21.3
)
 
(5.3
)
Deferred income tax expense
9.0

 
17.9

Stock-based compensation
21.8

 
23.4

Tax benefits from stock-based compensation payments (See Note 2)
—

 
(13.6
)
Other, net
2.3

 
(1.3
)
Increases/decreases in, excluding effects from acquisitions and divestitures:
 
 
 
Accounts and other receivables
(26.4
)
 
(40.9
)
Inventories
(24.3
)
 
(43.0
)
Other current assets
(1.7
)
 
(3.5
)
Accounts payable
34.0

 
(9.3
)
Accrued expenses and other current liabilities
(7.1
)
 
(19.8
)
NET CASH PROVIDED BY OPERATING ACTIVITIES
262.1

 
126.9

INVESTING ACTIVITIES
 
 
 
Additions to property, plant and equipment
(57.9
)
 
(51.3
)
Purchases of companies, net of cash acquired
(16.9
)
 
(11.1
)
Proceeds from sales of assets and businesses
54.0

 
15.5

Other, net
(7.4
)
 
(6.3
)
NET CASH USED FOR INVESTING ACTIVITIES
(28.2
)
 
(53.2
)
FINANCING ACTIVITIES
 
 
 
Payments on long-term debt
(1.6
)
 
(3.6
)
Additions to long-term debt
—

 
.4

Change in commercial paper and short-term debt
90.2

 
66.2

Dividends paid
(86.5
)
 
(85.5
)
Issuances of common stock
2.7

 
5.2

Purchases of common stock
(163.5
)
 
(119.8
)
Acquisition of noncontrolling interest
(35.2
)
 
—

Tax benefits from stock-based compensation payments (See Note 2)
—

 
13.6

Other, net
(2.8
)
 
(2.0
)
NET CASH USED FOR FINANCING ACTIVITIES
(196.7
)
 
(125.5
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(5.6
)
 
(5.9
)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
31.6

 
(57.7
)
CASH AND CASH EQUIVALENTS—January 1,
253.2

 
332.8

CASH AND CASH EQUIVALENTS—June 30,
$
284.8

 
$
275.1

See accompanying notes to consolidated condensed financial statements.






5


LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Amounts in millions, except per share data)
1. 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. 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, 2015 financial position data included herein was derived from the audited consolidated financial statements included in Form 10-K, but does not include all disclosures required by GAAP. For further information, refer to the financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2015.
Reclassifications
Certain reclassifications have been made to the prior period's information in the Consolidated Condensed Financial Statements and related notes to conform to the second quarter 2016 income statement and June 30, 2016 balance sheet presentation. The first reclassification was a result of changes in our management organizational structure and related internal reporting (See Note 4 - Segment Information). The final was a balance sheet reclassification associated with new accounting guidance for the presentation of debt issuance costs as discussed below.

2. ACCOUNTING STANDARD UPDATES
    
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 current or future periods, most relevant to our financial statements:
 
•
ASU 2016 -13 “Financial Instruments - Credit Losses": Replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective January 1, 2020. We are evaluating this guidance and do not expect it to have a material impact on our future financial statements.

•
ASU 2016-09 “Improvements to Employee Share-Based Payment Accounting”:  Simplifies the financial reporting for share-based compensation.  We adopted this guidance in the first quarter of 2016:
◦
All income tax effects of stock-based compensation are now classified within income tax expense, rather than recognizing some of the effects in additional contributed capital.  To the extent tax deductions from stock-based compensation payments differ from the compensation cost recognized for financial reporting purposes, the tax effects are recorded as discrete items in that quarter.
◦
Prospective application was required, and the impact of adopting this new guidance resulted in an additional tax benefit of $2.5 recorded in the second quarter of 2016, and $8.3 for the first six months of 2016.
◦
This ASU impacted the calculation of the dilutive effect of stock-based compensation on earnings per share, which resulted in an increase in our average diluted shares outstanding of approximately .5 shares.      
◦
The income tax effects are now classified as cash flow from operations, rather than cash flow from financing activities. We have elected to apply this cash flow classification guidance prospectively.
◦
Consistent with our past practice, when shares are withheld from the issuance of stock to fund the payment of the employee’s taxes, the payment is classified as a financing activity.
◦
We have elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur.


6


•
ASU 2016 -02 “ Leases”:  Requires that a lessee recognize assets and liabilities on the balance sheet for lease terms of more than 12 months. This ASU will be effective January 1, 2019, and we are evaluating its impact on our future financial statements.  

•
ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”:  Changes the presentation of long-term debt issuance costs in the financial statements to a reduction of the related liability rather than as a separate asset. We adopted this ASU in the first quarter of 2016 and retrospectively reclassified net deferred loan costs associated with each of our long-term debt issuances from assets to long-term debt on the balance sheet.  The adoption of this ASU did not have a material impact on our financial statements.             

•
ASU 2014-09 “Revenue from Contracts with Customers”:  Supersedes most of the existing authoritative literature for revenue recognition and prescribes a five-step model for recognizing revenue. In July 2015, the FASB deferred the effective date of this ASU by one year, which results in the new standard being effective January 1, 2018. In addition, during March, April and May 2016, the FASB issued additional updates (ASU 2016-06, ASU 2016-10 and ASU 2016-12) which clarify the guidance on specific items such as principal-versus agent, identification of performance obligations and licensing implementation, clarification of noncash consideration, and a practical expedient for reflecting contract modifications at transition. This standard requires either a retrospective or a modified retrospective transition approach to adoption. This ASU will be effective January 1, 2018, and we are evaluating its impact on our future financial statements.  

3. INVENTORIES
About 50% 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 future quarters.
The following table contains the LIFO (expense) benefit included in continuing operations for each of the periods presented.
 
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
LIFO (expense) benefit
$
(7.3
)
 
$
10.0

 
$
(7.3
)
 
$
5.0


4. SEGMENT INFORMATION
Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. During the fourth quarter of 2015, our logistics operations, which primarily include intercompany transportation activity, were moved from Residential Furnishings to Industrial Materials. This segment change was retrospectively applied to all prior periods presented.
We have four operating segments that supply a wide range of products:
•
Residential Furnishings—components for bedding and furniture, fabric and carpet cushion
•
Commercial Products—components for office and institutional furnishings, adjustable beds and consumer products
•
Industrial Materials—drawn steel wire, fabricated wire products and steel rod
•
Specialized Products—automotive seating components, tubing and sub-assemblies for the aerospace industry, specialized machinery and equipment, and commercial vehicle interiors
Each reportable segment has a senior operating vice-president that reports to the chief executive officer, who is the chief operating decision maker. The operating results and financial information reported through the segment structure are regularly reviewed and used by the chief operating decision maker to evaluate segment performance, allocate overall resources and determine management incentive compensation.
 

7
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


Separately, we also utilize a role-based approach (Grow, Core, Fix or Divest) as a supplemental management tool to ensure capital (which is a subset of the overall resources referred to above) is efficiently allocated within the reportable segment structure.
The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements, except that the segment assets and income reflect the FIFO basis of accounting for inventory. Certain inventories are accounted for using the LIFO basis in the consolidated financial statements. We evaluate performance based on 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. 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 from continuing operations are shown in the following tables.
 
External
Sales
 
Inter-
Segment
Sales
 
Total
Sales
 
EBIT
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Residential Furnishings
$
487.4

 
$
6.2

 
$
493.6

 
$
65.5

Commercial Products
136.8

 
16.3

 
153.1

 
10.9

Industrial Materials
79.9

 
70.2

 
150.1

 
16.6

Specialized Products
254.8

 
10.7

 
265.5

 
58.3

Intersegment eliminations and other
 
 
 
 
 
 
2.5

Change in LIFO reserve
 
 
 
 
 
 
(7.3
)
 
$
958.9

 
$
103.4

 
$
1,062.3

 
$
146.5

Three Months Ended June 30, 2015
 
 
 
 
 
Residential Furnishings
$
516.8

 
$
7.5

 
$
524.3

 
$
50.7

Commercial Products
135.4

 
24.1

 
159.5

 
10.8

Industrial Materials
111.7

 
88.4

 
200.1

 
15.3

Specialized Products
233.4

 
9.8

 
243.2

 
37.7

Intersegment eliminations and other
 
 
 
 
 
 
(.3
)
Change in LIFO reserve
 
 
 
 
 
 
5.0

 
$
997.3

 
$
129.8

 
$
1,127.1

 
$
119.2

 
External
Sales
 
Inter-
Segment
Sales
 
Total
Sales
 
EBIT
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Residential Furnishings
$
968.8

 
$
13.7

 
$
982.5

 
$
113.2

Commercial Products
278.1

 
36.5

 
314.6

 
24.7

Industrial Materials
157.0

 
150.3

 
307.3

 
36.7

Specialized Products
493.4

 
21.1

 
514.5

 
104.6

Intersegment eliminations and other
 
 
 
 
 
 
1.7

Change in LIFO reserve
 
 
 
 
 
 
(7.3
)
 
$
1,897.3

 
$
221.6

 
$
2,118.9

 
$
273.6

Six Months Ended June 30, 2015
 
 
 
 
 
Residential Furnishings
$
1,022.8

 
$
15.1

 
$
1,037.9

 
$
102.8

Commercial Products
258.9

 
41.6

 
300.5

 
18.8

Industrial Materials
229.4

 
189.9

 
419.3

 
23.3

Specialized Products
452.4

 
19.3

 
471.7

 
77.0

Intersegment eliminations and other
 
 
 
 
 
 
(1.0
)
Change in LIFO reserve
 
 
 
 
 
 
10.0

 
$
1,963.5

 
$
265.9

 
$
2,229.4

 
$
230.9


8
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include working capital (all current assets and current liabilities) plus net property, plant and equipment. Segment assets for all years are reflected at their estimated average for the periods presented. 
 
June 30,
2016
 
December 31,
2015
Residential Furnishings
$
602.2

 
$
623.7

Commercial Products
121.6

 
110.2

Industrial Materials
151.0

 
186.7

Specialized Products
266.9

 
256.4

Other (1)
.4

 
6.3

Average current liabilities included in segment numbers above
488.0

 
516.6

Unallocated assets (2)
1,381.7

 
1,387.0

Difference between average assets and period-end balance sheet
20.0

 
(123.2
)
Total assets
$
3,031.8

 
$
2,963.7

 
(1)
Businesses sold or classified as discontinued operations.
(2)
Unallocated assets consist primarily of goodwill, other intangibles, cash and deferred tax assets.

5. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

Discontinued Operations

During the fourth quarter of 2014, we divested the majority of our Store Fixtures reporting unit, which was previously part of the Commercial Products segment. We sold the final Store Fixtures business in the fourth quarter of 2015. Total consideration for these businesses was approximately $72 during this time period. No significant gains or losses were realized on the sale of these businesses.

The table below includes activity related to these operations:
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
External sales:
 
 
 
 
 
 
 
Commercial Products - Store Fixtures
$
—

 
$
12.3

 
$
—

 
$
6.1

 
 
 
 
 
 
 
 
Earnings (loss):
 
 
 
 
 
 
 
Commercial Products - Store Fixtures
.5

 
3.3

 
.4

 
2.9

Subsequent activity related to previous divestitures (1)
31.4

 
(1.5
)
 
31.4

 
(.7
)
Earnings before interest and income taxes
31.9

 
1.8

 
31.8

 
2.2

Income tax expense
(11.5
)
 
(.5
)
 
(11.5
)
 
(.4
)
Earnings from discontinued operations, net of tax
$
20.4

 
$
1.3

 
$
20.3

 
$
1.8


(1) Subsequent activity for businesses divested in prior years has been reported as discontinued operations in the table above, including proceeds from an antitrust litigation settlement discussed in Note 15 of $31.4 associated with our former Prime Foam Products unit. This unit was sold in March 2007 and was previously part of the Residential Furnishings Segment.








9
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 



Assets Held for Sale

We had no material assets held for sale at June 30, 2016 or December 31, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Divestitures

The following businesses were divested during the periods presented, but did not meet the discontinued operations criteria.

 
Date
Six Months Ended June 30,
 
Three Months Ended June 30,
 
Divested
2016
 
2015
 
2016
 
2015
External Sales:
 
 
 
 
 
 
 
 
   Industrial Materials:
 
 
 
 
 
 
 
 
      One Wire Products operation
Second quarter 2016
$
19.5

 
$
25.4

 
$
8.1

 
$
12.5

      Steel Tubing business unit
Fourth quarter 2015
—

 
47.9

 
—

 
23.1

   Specialized Products:
 
 
 
 
 
 
 
 
      One Commercial Vehicle Products (CVP) operation
Second quarter 2016
15.3

 
13.3

 
7.8

 
6.3

      One CVP operation
Fourth quarter 2015
—

 
6.8

 
—

 
4.0

Total External Sales
 
$
34.8

 
$
93.4

 
$
15.9

 
$
45.9

EBIT:
 
 
 
 
 
 
 
 
   Industrial Materials:
 
 
 
 
 
 
 
 
      One Wire Products operation
Second quarter 2016
$
1.2

 
$
.2

 
$
.8

 
$
.3

      Steel Tubing business unit
Fourth quarter 2015
—

 
1.3

 
—

 
.5

   Specialized Products:
 
 
 
 
 
 
 
 
      One CVP operation
Second quarter 2016
2.8

 
1.7

 
1.3

 
.7

      One CVP operation
Fourth quarter 2015
—

 
(.7
)
 
—

 
(.4
)
Total EBIT
 
$
4.0

 
$
2.5

 
$
2.1

 
$
1.1

We realized a gain of $11.2 related to the sale of one CVP operation in the second quarter of 2016. No significant gains or losses were realized on the sale of other businesses.

6. IMPAIRMENT CHARGES

Pre-tax impact of impairment charges is summarized in the following table.

Other long-lived asset impairments are reported in "Other (income) expense, net." Charges associated with discontinued operations are reported in "Earnings from discontinued operations, net of tax."

10
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
Good-will

 
Other Long-Lived Assets
 
Total
 
Good-will

 
Other Long-Lived Assets
 
Total
 
Good-will
 
Other Long-Lived Assets
 
Total
 
Good-will
 
Other Long-Lived Assets
 
Total
Continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Furnishings
$
—

 
$
—

 
$
—

 
$
—

 
$
.2

 
$
.2

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Industrial Materials - Steel Tubing
—

 
—

 
—

 
4.1

 
1.4

 
5.5

 
—

 
—

 
—

 
—

 
—

 
—

Specialized Products:
 
 
 
 


 
 
 
 
 


 
 
 
 
 

 
 
 
 
 


    CVP unit
3.7

 
—

 
3.7

 
—

 
.1

 
.1

 
3.7

 
—

 
3.7

 
—

 
.1

 
.1

    Other units
—

 
—

 
—

 
—

 
.5

 
.5

 
—

 
—

 
—

 
—

 
.5

 
.5

Total continuing operations
3.7

 
—

 
3.7

 
4.1

 
2.2

 
6.3

 
3.7

 
—

 
3.7

 
—

 
.6

 
.6

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subsequent activity related to previous divestitures
—

 
—

 
—

 
—

 
.2

 
.2

 
—

 
—

 
—

 
—

 
—

 
—

Total discontinued operations
—

 
—

 
—


—

 
.2

 
.2

 
—

 
—

 
—

 
—

 
—

 
—

Total impairment charges
$
3.7

 
$
—

 
$
3.7

 
$
4.1

 
$
2.4

 
$
6.5

 
$
3.7

 
$
—

 
$
3.7

 
$
—

 
$
.6

 
$
.6


Other Long-Lived Assets
 
We test other long-lived assets for recoverability at year-end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value and the resulting impairment charges noted above were based primarily upon offers from potential buyers or third party estimates of fair value less selling costs.
 
Goodwill Impairment Reviews
 
We test goodwill for impairment at the reporting unit level when triggering events occur, or at least annually. We perform our goodwill impairment review in the second quarter of each year. Our reporting units are the business groups that are one level below the operating segment level.

2015
During the first quarter of 2015, the Steel Tubing unit met the held for sale criteria. Because fair value less costs to sell had fallen below the carrying amount, we fully impaired this unit's goodwill and incurred a $4.1 goodwill impairment charge in the first quarter of 2015.

In the second quarter of 2015, we performed a quantitative analysis under the two-step model, and all of our reporting units were determined to have a fair value in excess of their carrying amounts in a range of 55% to 86% of their respective fair values.

2016
Because all reporting units had fair values that exceeded carrying value by more than 55% during the 2015 review, we performed a qualitative assessment (Step Zero Analysis) for our annual review in the second quarter of 2016. Among other things, we considered i) the excess in fair value of the reporting unit over its carrying amount from the most recent quantitative analysis, ii) macroeconomic conditions, iii) industry and market trends, and iv) overall financial performance. Based on the Step Zero Analysis we concluded that it is more likely than not that the fair value of the reporting units exceeded their carrying amount, except for our CVP reporting unit.

With regard to our CVP reporting unit, in the second quarter of 2016 we sold one of our two remaining businesses.  Additionally, real estate associated with the remaining CVP business reached held for sale status during the second quarter of 2016.  As a result of these two events, the fair value of the CVP reporting unit (consisting of one remaining business) had fallen below its carrying amount, and we fully impaired the remaining $3.7 of goodwill for this reporting unit.

11
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 



7. EARNINGS PER SHARE

Basic and diluted earnings per share were calculated as follows:
 
Six Months Ended 
 June 30,
 
Three Months Ended 
 June 30,
 
2016
 
2015
 
2016
 
2015
Earnings:
 
 
 
 
 
 
 
Earnings from continuing operations
$
190.5

 
$
150.0

 
$
99.5

 
$
76.7

(Earnings) loss attributable to noncontrolling interest, net of tax
(.2
)
 
(1.9
)
 
1.4

 
(.8
)
Net earnings from continuing operations attributable to Leggett & Platt, Inc. common shareholders
190.3

 
148.1

 
100.9

 
75.9

Earnings from discontinued operations, net of tax
20.4

 
1.3

 
20.3

 
1.8

Net earnings attributable to Leggett & Platt, Inc. common shareholders
$
210.7

 
$
149.4

 
$
121.2

 
$
77.7

 
 
 
 
 
 
 
 
Weighted average number of shares (in millions):
 
 
 
 
 
 
 
Weighted average number of common shares used in basic EPS
138.4

 
141.7

 
137.8

 
141.4

Dilutive effect of stock-based compensation
2.2

 
1.9

 
2.3

 
2.0

Weighted average number of common shares and dilutive potential common shares used in diluted EPS
140.6

 
143.6

 
140.1

 
143.4

 
 
 
 
 
 
 
 
Basic and Diluted EPS:
 
 
 
 
 
 
 
Basic EPS attributable to Leggett & Platt, Inc. common shareholders
 
 
 
 
 
 
 
Continuing operations
$
1.37

 
$
1.04

 
$
.73

 
$
.54

Discontinued operations
.15

 
.01

 
.15

 
.01

Basic EPS attributable to Leggett & Platt, Inc. common shareholders
$
1.52

 
$
1.05

 
$
.88

 
$
.55

Diluted EPS attributable to Leggett & Platt, Inc. common shareholders
 
 
 
 
 
 
 
Continuing operations
$
1.35

 
$
1.03

 
$
.72

 
$
.53

Discontinued operations
.15

 
.01

 
.15

 
.01

Diluted EPS attributable to Leggett & Platt, Inc. common shareholders
$
1.50

 
$
1.04

 
$
.87

 
$
.54

 
 
 
 
 
 
 
 
Other information:
 
 
 
 
 
 
 
Anti-dilutive shares excluded from diluted EPS computation
—

 
—

 
—

 
—
























12
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


8. ACCOUNTS AND OTHER RECEIVABLES
Accounts and other receivables consisted of the following:
 
 
June 30, 2016
 
December 31, 2015
 
Current
 
Long-term
 
Current
 
Long-term
Trade accounts receivable
$
498.9

 
$
—

 
$
457.5

 
$
—

Trade notes receivable
1.4

 
.6

 
.5

 
.6

Total trade receivables
500.3

 
.6

 
458.0

 
.6

Other notes receivable
—

 
.4

 
—

 
.4

Income tax receivables
11.9

 
—

 
32.6

 
—

Other receivables
32.5

 
—

 
38.9

 
—

Subtotal other receivables
44.4

 
.4

 
71.5

 
.4

Total trade and other receivables
544.7

 
1.0

 
529.5

 
1.0

Allowance for doubtful accounts:
 
 
 
 
 
 
 
  Trade accounts receivable
(9.9
)
 
—

 
(9.2
)
 
—

  Trade notes receivable
(.1
)
 
(.2
)
 
(.1
)
 
(.2
)
Total trade receivables
(10.0
)
 
(.2
)
 
(9.3
)
 
(.2
)
  Other notes receivable
—

 
(.4
)
 
—

 
(.4
)
Total allowance for doubtful accounts
(10.0
)
 
(.6
)
 
(9.3
)
 
(.6
)
Total net receivables
$
534.7

 
$
.4

 
$
520.2

 
$
.4

Notes that were past due more than 90 days or had been placed on non-accrual status were not significant for the periods presented.
Activity related to the allowance for doubtful accounts is reflected below:
 
 
Balance at December 31, 2015
 
2016
Charges
 
2016
Charge-
offs,
Net of
Recoveries
 
Balance at June 30, 2016
Trade accounts receivable
$
9.2

 
$
1.6

 
$
.9

 
$
9.9

Trade notes receivable
.3

 
—

 
—

 
.3

Total trade receivables
9.5

 
1.6

 
.9

 
10.2

Other notes receivable
.4

 
—

 
—

 
.4

Total allowance for doubtful accounts
$
9.9

 
$
1.6

 
$
.9

 
$
10.6


    















13
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


9. STOCK-BASED COMPENSATION
The following table recaps the components of stock-based and stock-related compensation for each period presented:
 
 
Six Months Ended 
 June 30, 2016
 
Six Months Ended 
 June 30, 2015
 
To be settled with stock
 
To be settled in cash
 
To be settled with stock
 
To be settled in cash
Options:
 
 
 
 
 
 
 
         Amortization of the grant date fair value
$
1.0

 
$
—

 
$
.2

 
$
—

         Cash payments in lieu of options
—

 
1.0

 
—

 
1.0

Stock-based retirement plans contributions
3.5

 
.7

 
3.9

 
.7

Discounts on various stock awards:

 
 
 

 
 
Deferred Stock Compensation Program
1.1

 
—

 
1.1

 
—

Stock-based retirement plans
.7

 
—

 
.7

 
—

Discount Stock Plan
.5

 
—

 
.5

 
—

Performance Stock Unit awards (1)
2.5

 
4.4

 
3.3

 
5.8

Restricted Stock Unit awards
1.4

 
—

 
1.7

 
—

Profitable Growth Incentive awards (2)
2.5

 
2.0

 
3.9

 
3.7

Other, primarily non-employee directors restricted stock
.7

 
—

 
.7

 
—

Total stock-related compensation expense
13.9

 
$
8.1

 
16.0

 
$
11.2

Employee contributions for above stock plans
7.9

 
 
 
7.4

 
 
Total stock-based compensation
$
21.8

 
 
 
$
23.4

 
 
 
 
 
 
 
 
 
 
Tax benefits on stock-based compensation expense
$
5.1

 
 
 
$
6.1

 
 
Tax benefits on stock-based compensation payments (See Note 2)
8.3

 
 
 
—

 
 
Total tax benefits associated with stock-based compensation
$
13.4

 
 
 
6.1

 
 
 
 
 
 
 
 
 
 

14
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


 
Three Months Ended
 
Three Months Ended 
 
June 30, 2016
 
June 30, 2015
 
To be settled with stock
 
To be settled in cash
 
To be settled with stock
 
To be settled in cash
Options:
 
 
 
 
 
 
 
         Amortization of the grant date fair value
$
.1

 
$
—

 
$
.1

 
$
—

         Cash payments in lieu of options
—

 
(.1
)
 
—

 
—

Stock-based retirement plans contributions
1.7

 
.3

 
1.7

 
.3

Discounts on various stock awards:
 
 
 
 
 
 
 
Deferred Stock Compensation Program
.5

 
—

 
.5

 
—

Stock-based retirement plans
.3

 
—

 
.3

 
—

Discount Stock Plan
.2

 
—

 
.2

 
—

Performance Stock Unit awards (1)
1.3

 
2.2

 
1.7

 
2.9

Restricted Stock Unit awards
.7

 
—

 
.8

 
—

Profitable Growth Incentive awards (2)
.9

 
.8

 
2.0

 
2.0

Other, primarily non-employee directors restricted stock
.3

 
—

 
.3

 
—

Total stock-related compensation expense
6.0

 
$
3.2

 
7.6

 
$
5.2

Employee contributions for above stock plans
3.4

 
 
 
3.6

 
 
Total stock-based compensation
$
9.4

 
 
 
$
11.2

 
 
 
 
 
 
 
 
 
 
Tax benefits on stock-based compensation expense
$
2.2

 
 
 
$
2.9

 
 
Tax benefits on stock-based compensation payments (See Note 2)
2.5

 
 
 
—

 
 
Total tax benefits associated with stock-based compensation
$
4.7

 
 
 
$
2.9

 
 
 
 
 
 
 
 
 
 
 

Included below is the activity in our most significant stock-based plans:

(1) Performance Stock Unit Awards
We grant Performance Stock Unit (PSU) awards in the first quarter of each year to selected officers and other key managers. Expense is recognized using the straight-line method over the three-year vesting period. These awards contain the following conditions:

•
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.
Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies.








15
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented.
 
Six Months Ended June 30,
 
2016
 
2015
Total shares base award
.1

 
.2

Grant date per share fair value
$
40.16

 
$
42.22

Risk-free interest rate
1.3
%
 
1.1
%
Expected life in years
3.0

 
3.0

Expected volatility (over expected life)
19.2
%
 
19.8
%
Expected dividend yield (over expected life)
3.1
%
 
2.9
%
Three-Year Performance Cycle
Award Year
 
Completion Date
 
TSR Performance
Relative to the  Peer Group (1%=Best)
 
Payout as a
Percent of the
Base Award
 
Number of Shares
Distributed
 
Cash Portion
 
Distribution Date
2012
 
December 31, 2014
 
30th percentile
 
157.0%
 
.4 million
 
$
9.9

 
January 2015
2013
 
December 31, 2015
 
27th percentile
 
165.4%
 
.4 million
 
$
8.5

 
January 2016

For outstanding awards, we intend to pay 65% in shares of our common stock, although we reserve the right to pay up to 100% in cash. The additional amount that represents 35% of the award will be settled in cash, and is recorded as a liability and adjusted to fair value at each reporting period.

(2) Profitable Growth Incentive Awards

Certain key management employees participate in a Profitable Growth Incentive (PGI) program. The PGI awards are issued as growth performance stock units (GPSUs). The GPSUs vest (0% to 250%) at the end of a two-year performance period. Vesting is based on the Company's or applicable profit center's revenue growth (adjusted by a GDP factor when applicable) and EBITDA margin at the end of a two-year performance period. The 2016 and 2015 base target PGI awards were less than .1 shares. If earned, we intend to pay half in shares of our common stock and half in cash, although we reserve the right to pay up to 100% in cash. Both components are adjusted to fair value at each reporting period.

Two-Year Performance Cycle
Award Year
 
Completion Date
 
Average Payout as a
Percent of the
Base Award
 
Number of  Shares
Distributed
 
Cash Portion
 
Distribution Date
2013
 
December 31, 2014
 
127.0%
 
.1 million
 
$
3.5

 
February 2015
2014
 
December 31, 2015
 
224.7%
 
.2 million
 
$
6.7

 
February 2016


16
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 



10. ACQUISITIONS
The following table contains the estimated fair values (using inputs as discussed in Note 13) of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during the periods presented, and any additional consideration paid for prior years’ acquisitions. We are finalizing all the information required to complete the purchase price allocations related to certain recent acquisitions and do not anticipate any material modifications.
 
Six Months Ended June 30,
 
2016
 
2015
Accounts receivable
$
1.1

 
$
3.7

Inventory
4.0

 
4.8

Property, plant and equipment
2.5

 
2.3

Goodwill (1)
3.8

 
8.3

Other intangible assets. primarily customer-related intangibles
7.5

 
14.7

Other current and long-term assets
—

 
.1

Current liabilities
(2.0
)
 
(11.2
)
Long-term liabilities
(.4
)
 
(10.4
)
Additional consideration received for prior years’ acquisitions
.4

 
(1.2
)
Fair value of net identifiable assets
16.9

 
11.1

Net cash consideration
$
16.9

 
$
11.1


(1) The majority of the goodwill associated with the 2016 and 2015 acquisitions is expected to provide an income tax benefit.

The following table summarizes acquisitions for the periods presented.
Six Months Ended
 
Number of Acquisitions
 
Segment
 
Product/Service
June 30, 2016
 
1
 
Specialized Products
 
Fabricated tubing and pipe assemblies
June 30, 2015
 
1
 
Commercial Products
 
Upholstered office furniture
A brief description of our most significant acquisitions by year is included below.
2016
In February 2016, we expanded our Aerospace Products business unit with the acquisition of a 100% interest of a U.S. fabricated tubing business for a purchase price of $16.5. Factors contributing to the recognition of $3.8 in goodwill from the acquisition included: additional production of fabricated tubing and pipe assemblies and benefits from our vertical integration in precision machining and gearing.
2015
In March 2015, we acquired a 70% interest in a European private-label manufacturer of high-end upholstered furniture for office, commercial and other settings for a purchase price of $22.7. This business is complementary to our North American private-label operation and allows us to support our Work Furniture customers as they expand globally. We will acquire the remaining 30% in 2018 and 2020, per the terms of the agreement, and have recorded a long-term liability of approximately $12 for the future payments. Future payments are based upon a calculation that incorporates future EBITDA. The recorded liability is based upon estimates and may fluctuate significantly until the payment dates. Fluctuations in this liability will be reflected in interest income or expense on the Consolidated Condensed Statement of Operations.

The results of operations of the above acquired companies have been included in the consolidated financial statements since the dates of acquisition. The unaudited pro forma consolidated net sales, net earnings and earnings per share as though the 2016 and 2015 acquisitions had occurred on January 1 of each year presented are not materially different from the amounts reflected in the accompanying financial statements. Certain of our acquisition agreements provide for additional consideration to be paid in cash at a later date and are recorded as a liability at the acquisition date. At June 30, 2016, there was no substantial remaining consideration payable other than the liability discussed above.

17
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 



2016 Acquisition of Noncontrolling Interest

In May 2016 we purchased the remaining 30% ownership in an Asian joint venture for $35.2. This business manufactures seat frames and lumbar support systems and is in the Automotive Group of our Specialized Products segment.

11. EMPLOYEE BENEFIT PLANS
The following table provides interim information as to our domestic and foreign defined benefit pension plans. We are reviewing the funding strategy for selected pension plans, and 2016 employer contributions could be moderately higher than the $1.8 previously reported at December 31, 2015.
 
 
Six Months Ended 
 June 30,
 
Three Months Ended  June 30,
 
2016
 
2015
 
2016
 
2015
Components of net pension expense
 
 
 
 
 
 
 
Service cost
$
2.3

 
$
2.0

 
$
1.1

 
$
1.0

Interest cost
5.9

 
6.5

 
3.0

 
3.3

Expected return on plan assets
(6.5
)
 
(8.3
)
 
(3.2
)
 
(4.2
)
Recognized net actuarial loss
2.4

 
3.0

 
1.2

 
1.5

Net pension expense
$
4.1

 
$
3.2

 
$
2.1

 
$
1.6



12. STATEMENT OF CHANGES IN EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
Six Months Ended June 30, 2016
 
Total
Equity
 
Retained
Earnings
 
Common
Stock &
Additional
Contributed
Capital
 
Treasury
Stock
 
Noncontrolling
Interest
 
Accumulated
Other
Comprehensive
Income (Loss)
Beginning balance, January 1, 2016
$
1,097.7

 
$
2,209.2

 
$
531.5

 
$
(1,564.0
)
 
$
12.1

 
$
(91.1
)
Net earnings
210.9

 
210.9

 
—

 
—

 
—

 
—

(Earnings) loss attributable to noncontrolling interest, net of tax
—

 
(.2
)
 
—

 
—

 
.2

 
—

Dividends declared
(88.4
)
 
(90.9
)
 
2.5

 
—

 
—

 
—

Dividends paid to noncontrolling interest
(1.7
)
 
—

 
—

 
—

 
(1.7
)
 
—

Treasury stock purchased
(167.7
)
 
—

 
—

 
(167.7
)
 
—

 
—

Treasury stock issued
20.5

 
—

 
(15.8
)
 
36.3

 
—

 
—

Foreign currency translation adjustments
5.5

 
—

 
—

 
—

 
—

 
5.5

Cash flow hedges, net of tax
6.0

 
—

 
—

 
—

 
—

 
6.0

Defined benefit pension plans, net of tax
1.6

 
—

 
—

 
—

 
—

 
1.6

Stock options and benefit plan transactions, net of tax
16.4

 
—

 
16.4

 
—

 
—

 
—

 Acquisition of noncontrolling interest
(35.2
)
 
—

 
(27.9
)
 
—

 
(8.3
)
 
1.0

Ending balance, June 30, 2016
$
1,065.6

 
$
2,329.0

 
$
506.7

 
$
(1,695.4
)
 
$
2.3

 
$
(77.0
)
 

18
LEGGETT & PLATT, INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS—(Continued)
(Unaudited)
 


 
Six Months Ended June 30, 2015
 
Total
Equity
 
Retained
Earnings
 
Common
Stock &
Additional
Contributed
Capital
 
Treasury
Stock
 
Noncontrolling
Interest
 
Accumulated
Other
Comprehensive
Income (Loss)
Beginning balance, January 1, 2015
$
1,154.9

 
$
2,061.3

 
$
504.4

 
$
(1,416.6
)
 
$
8.4

 
$
(2.6
)
Net earnings
151.3

 
151.3

 
—

 
—

 
—

 
—

(Earnings) loss attributable to noncontrolling interest, net of tax
—

 
(1.9
)
 
—

 
—

 
1.9

 
—

Dividends declared
(85.2
)