Legget & Platt (LEG) reported $1.13 billion in revenue for the quarter ended June 2024, representing a yearover-year decline of 7.6%. EPS of $0.29 for the same period compares to $0.38 a year ago. The reported revenue represents a surprise of -0.52% over the Zacks Consensus Estimate of $1.13 billion. With the consensus EPS estimate being $0.29, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Legget & Platt (LEG) came out with quarterly earnings of $0.29 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this engineered component manufacturer would post earnings of $0.25 per share when it actually produced earnings of $0.23, delivering a surprise of -8%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Le ...

CARTHAGE, Mo., Aug. 1, 2024 /PRNewswire/ -- 2Q sales of $1.1 billion, an 8% decrease vs 2Q23 2Q EPS of ($4.39), primarily due to a non-cash goodwill impairment charge 2Q adjusted1 EPS of $.29, a $.09 decrease vs adjusted1 2Q23 EPS 2024 EPS guidance is ($3.43)–($3.58), including impact of non-cash goodwill impairment charge, restructuring charges, real estate gains, and certain other costs 2024 adjusted1 EPS narrowed to $1.10–$1.25; sales guidance lowered to $4.3–$4.5 billion President and CEO Karl Glassman ...

COMPANY DESCRIPTION: Leggett & Platt (NYSE:LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 141-year-old Company is a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; hydraulic cylinders for material handling and heavy construction applications; ...

Investment Thesis - Leggett & Platt has experienced a significant decline in share price, dropping over 80% in the past three years, reaching levels not seen since 2009, following a cut in its historically consistent dividend [3][4] - The company faces declining revenue and margins due to reduced consumer demand linked to slowing home sales, with projected annual revenue falling from $5.1 billion in 2022 to approximately $4.5 billion in 2024 [6][11] - Despite these challenges, the current share price presents a potential buying opportunity for long-term investors [3] Financial Performance - The company's operating margins have compressed, with a 7% decline in sales volume reported in 2023 [8][9] - Management anticipates earnings of about $1 per share in 2024, a significant drop from the $2-$3 per share range seen from 2015 to 2022 [11] - Interest expenses are expected to rise due to a $300 million senior note maturing in November, with a projected increase from $88 million in 2023 to $120 million thereafter [9][11] Industry Context - The decline in home purchases has adversely affected the home furnishings industry, impacting Leggett & Platt's sales [6][10] - Competitors in the mattress manufacturing sector, such as Sleep Number and Purple Innovation, have also reported revenue declines, indicating broader industry challenges [9][10] - Tempur Sealy International has managed to maintain stable sales, highlighting the competitive pressures faced by Leggett & Platt, which primarily sells to businesses rather than directly to consumers [10] Future Outlook - The company is focusing on restructuring efforts to simplify operations and improve margins, with expectations of a revenue decline settling around $4.4 billion in 2024 [11][12] - Positive cash generation of $200 million is anticipated in 2024, despite the challenging environment, with potential for recovery as the housing market improves [11][12] - Insiders have shown confidence in the company's recovery by purchasing over $750,000 in shares recently, suggesting belief in a turnaround [14]

Sezeryadigar/iStock via Getty Images LEG stock: the dividend king cut its dividends Leggett & Platt, Inc. (NYSE:LEG) caught my attention in early 2022 during my routine screening of dividend stocks. In these screens, I specifically look for stocks that pay regular dividends and are yielding either far above or below their historical average yield. LEG was yielding around 5% at that time as seen in the next chart, close to the highest level in at least 10 years (except for the period of fire sale during the ...

It has been about a month since the last earnings report for Legget & Platt (LEG) . Shares have lost about 20.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Legget & Platt due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Leggett Lags on Q1 Earnings & Sales, Cu ...

COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 141-year-old Company is a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; hydraulic cylinders for material handling and heavy construction applications ...

```markdown [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the company's forward-looking statements, covering projections and the Restructuring Plan, emphasizing their inherent risks and uncertainties - Forward-looking statements cover projections for revenue, income, earnings, capital expenditures, dividends, product demand, capital structure, cash flows, and the Restructuring Plan[9](index=9&type=chunk) - All forward-looking statements are subject to **risks**, **uncertainties**, and developments that may cause actual events or results to differ **materially** from those envisioned[10](index=10&type=chunk) - The company does not undertake any duty to update or revise any forward-looking statement[10](index=10&type=chunk) [Summary of Key Risk Factors](index=3&type=section&id=Risk%20Factors%20Summary) The company faces diverse risks, including Restructuring Plan challenges, supply chain disruptions, macroeconomic impacts, and credit facility compliance - **Risks** associated with the Restructuring Plan include potential changes in estimates, implementation challenges, asset disposal difficulties, and impacts on relationships with employees, customers, and vendors[12](index=12&type=chunk) - Supply chain disruptions from severe weather, natural disasters, geopolitical conflicts, and labor issues pose **risks** to raw material availability and delivery[12](index=12&type=chunk) - Macroeconomic factors such as consumer confidence, housing turnover, employment levels, and interest rates **significantly** impact product demand[12](index=12&type=chunk) - The company's ability to comply with credit facility covenants and manage working capital is **crucial** for liquidity[13](index=13&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) This section presents unaudited consolidated financial statements, showing **decreased** net earnings and EPS, and changes in asset/liability composition [Consolidated Condensed Balance Sheets](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet shows a slight **decrease** in total assets from **$4,634.5 million** to **$4,614.8 million**, with **lower** current assets and **increased** long-term debt Consolidated Condensed Balance Sheet Highlights (Amounts in millions) | Item | March 31, 2024 | December 31, 2023 | Change | % Change | | :--------------------------------- | :------------- | :---------------- | :----- | :------- | | Cash and cash equivalents | $361.3 | $365.5 | $(4.2) | -1.15% | | Total current assets | $1,860.3 | $1,881.4 | $(21.1) | -1.12% | | Total assets | $4,614.8 | $4,634.5 | $(19.7) | -0.43% | | Total current liabilities | $1,188.3 | $1,262.6 | $(74.3) | -5.88% | | Long-term debt | $1,772.9 | $1,679.6 | $93.3 | 5.55% | | Total equity | $1,289.5 | $1,334.0 | $(44.5) | -3.34% | [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Net trade sales **decreased** **9.6%**, leading to a **29.5%** decline in EBIT and a **40.9%** **decrease** in net earnings, with diluted EPS falling to **$0.23** Consolidated Condensed Statements of Operations Highlights (Amounts in millions, except per share data) | Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | % Change | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net trade sales | $1,096.9 | $1,213.6 | $(116.7) | -9.62% | | Gross profit | $186.4 | $218.6 | $(32.2) | -14.73% | | Earnings before interest and income taxes | $63.0 | $89.3 | $(26.3) | -29.45% | | Net earnings | $31.6 | $53.5 | $(21.9) | -40.93% | | Diluted EPS | $0.23 | $0.39 | $(0.16) | -41.03% | [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income **decreased** **significantly** from **$75.2 million** to **$6.8 million**, primarily due to **negative** foreign currency translation adjustments Consolidated Condensed Statements of Comprehensive Income (Loss) Highlights (Amounts in millions) | Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net earnings | $31.6 | $53.5 | $(21.9) | | Foreign currency translation adjustments | $(23.5) | $18.7 | $(42.2) | | Other comprehensive income (loss), net of tax | $(24.8) | $21.6 | $(46.4) | | Comprehensive income (loss) attributable to Leggett & Platt, Inc. | $6.8 | $75.2 | $(68.4) | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Operating cash flow shifted from **$96.7 million** **positive** to **$(6.1) million** **negative**, mainly due to **lower** net earnings and working capital changes Consolidated Condensed Statements of Cash Flows Highlights (Amounts in millions) | Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net Cash (Used for) Provided by Operating Activities | $(6.1) | $96.7 | $(102.8) | | Net Cash Used for Investing Activities | $(10.4) | $(36.4) | $26.0 | | Net Cash Provided by (Used for) Financing Activities | $18.1 | $(35.6) | $53.7 | | (Decrease) Increase in Cash and Cash Equivalents | $(4.2) | $28.0 | $(32.2) | | Cash and Cash Equivalents—March 31, | $361.3 | $344.5 | $16.8 | [Consolidated Condensed Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Equity) Total equity **decreased** from **$1,334.0 million** to **$1,289.5 million**, influenced by dividends, other comprehensive losses, and net earnings Consolidated Condensed Statements of Changes in Equity Highlights (Amounts in millions) | Item | January 1, 2024 | March 31, 2024 | Change | | :------------------------------------------ | :-------------- | :------------- | :----- | | Beginning balance, January 1, 2024 | $1,334.0 | - | - |\ | Net earnings | - | $31.6 | $31.6 |\ | Dividends declared | - | $(61.6) | $(61.6) |\ | Other comprehensive income (loss), net of tax | - | $(24.8) | $(24.8) |\ | Ending balance, March 31, 2024 | - | $1,289.5 | - | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Notes detail interim presentation, revenue disaggregation, segment info, EPS, the Restructuring Plan, credit facility, and new accounting guidance - The company participates in trade receivables sales programs, selling approximately **$50.0 million** of receivables at March 31, 2024, which are removed from the balance sheet[29](index=29&type=chunk) - A restructuring plan was committed in Q1 2024, primarily for the Bedding Products and Furniture, Flooring & Textile Products segments, involving consolidation of **15-20 facilities** and expected costs of **$65.0-$85.0 million** by end of 2025[44](index=44&type=chunk)[45](index=45&type=chunk) Restructuring Plan Costs (Amounts in millions) | Category | Total Amount Expected to be Incurred | Three Months Ended March 31, 2024 | | :---------------------------------- | :--------------------------------- | :-------------------------------- | | Restructuring and restructuring-related | $40.0 to $55.0 | $8.5 | | Impairment costs associated with this plan | $25.0 to $30.0 | $2.3 | | **Total** | **$65.0 to $85.0** | **$10.8** | | Cash charges | $30.0 to $40.0 | $6.2 | - The credit facility was amended on March 22, 2024, **increasing** the Leverage Ratio covenant from **3.50 to 1.00** to **4.00 to 1.00** until June 30, 2025, to provide additional liquidity and **flexibility**[58](index=58&type=chunk)[59](index=59&type=chunk) Revenue by Product Family (Amounts in millions) | Product Family | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | % Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Bedding Group | $448.0 | $528.5 | $(80.5) | -15.2% | | Specialized Products (Total) | $315.9 | $320.7 | $(4.8) | -1.5% | | Furniture, Flooring & Textile Products (Total) | $333.0 | $364.4 | $(31.4) | -8.6% | | **Total** | **$1,096.9** | **$1,213.6** | **$(116.7)** | **-9.6%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2024 financial performance, liquidity, and capital resources, highlighting sales/earnings **decrease**, Restructuring Plan, and credit facility amendment [Highlights](index=21&type=section&id=Highlights) Q1 2024 highlights include a **10%** sales **decrease**, **$0.23** EPS, **negative** operating cash flow, credit facility amendment, and **reduced** Q2 dividend Q1 2024 Financial Highlights (Amounts in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | Change | % Change | | :-------------------- | :------ | :------ | :----- | :------- | | Trade Sales | $1,097 | $1,213.6 | $(116.6) | -9.6% | | EPS | $0.23 | $0.39 | $(0.16) | -41.0% | | EBIT | $63 | $89.3 | $(26.3) | -29.5% | | Operating Cash Flow | $(6) | $96.7 | $(102.7) | -106.2% | - The company proactively amended its credit facility in March 2024 to provide additional liquidity and **flexibility**[82](index=82&type=chunk) - The Board of Directors declared a Q2 2024 dividend of **$0.05**, a **$0.41** **decrease** from Q1 2024 and Q2 2023, to accelerate **deleveraging** and enhance financial position[83](index=83&type=chunk) [Introduction](index=21&type=section&id=Introduction) Leggett & Platt, a diversified manufacturer, is implementing a Restructuring Plan to consolidate facilities, aiming for **$40-$50 million** annualized EBIT enhancement - Leggett & Platt is a diversified manufacturer of engineered components and products for homes, offices, and automobiles[84](index=84&type=chunk) Q1 2024 Trade Sales Contribution by Segment | Segment | % of Trade Sales (Q1 2024) | | :-------------------------------- | :------------------------- | | Bedding Products | 41% | | Specialized Products | 29% | | Furniture, Flooring & Textile Products | 30% | - The Restructuring Plan, expected to be **substantially** complete by end of 2025, aims to consolidate **15-20 Bedding Products facilities** and a small number of Furniture, Flooring & Textile Products facilities[93](index=93&type=chunk)[212](index=212&type=chunk)[216](index=216&type=chunk) - The Restructuring Plan is expected to enhance annualized EBIT by **$40-$50 million** when fully implemented in late 2025, but also **reduce** annual sales by approximately **$100 million**[94](index=94&type=chunk)[216](index=216&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Consolidated trade sales **decreased** **10%** due to volume and price, with EBIT falling **29%** from **lower** volume, restructuring costs, and bad debt - Q1 2024 trade sales **decreased** **10%** year-over-year, with organic sales also down **10%** due to **6%** **lower** volume and **4%** from raw material-related selling price decreases[117](index=117&type=chunk) - EBIT **decreased** **29%** to **$63 million**, primarily from **lower** volume, restructuring costs, **increased** bad debt reserve, and less benefit from a contingent purchase price liability reduction[118](index=118&type=chunk) Segment Trade Sales and EBIT Performance (Three Months Ended March 31, 2024 vs. 2023) | Segment | Trade Sales 2024 (millions) | Trade Sales 2023 (millions) | % Change Sales | EBIT 2024 (millions) | EBIT 2023 (millions) | % Change EBIT | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------- | :------------------- | :------------------- | :------------ | | Bedding Products | $448.0 | $528.5 | -15.2% | $15.7 | $33.3 | -52.9% | | Specialized Products | $315.9 | $320.7 | -1.5% | $23.7 | $28.7 | -17.4% | | Furniture, Flooring & Textile Products | $333.0 | $364.4 | -8.6% | $23.6 | $28.3 | -16.6% | | **Total** | **$1,096.9** | **$1,213.6** | **-9.6%** | **$63.0** | **$89.3** | **-29.5%** | - The worldwide **effective** tax rate for Q1 2024 was **25%**, up from **22%** in Q1 2023, with an anticipated full-year rate of approximately **25%**[121](index=121&type=chunk)[122](index=122&type=chunk) [Liquidity and Capitalization](index=27&type=section&id=Liquidity%20and%20Capitalization) Liquidity **decreased** with **negative** operating cash flow; the credit facility covenant was **increased**, and the dividend **reduced** to support **deleveraging** - Cash and cash equivalents were **$361 million** at March 31, 2024, with approximately **$78 million** inaccessible for repatriation due to capital requirements in foreign jurisdictions[131](index=131&type=chunk)[132](index=132&type=chunk) - Operating cash flow for Q1 2024 was **$(6) million**, a **$103 million** **decrease** from Q1 2023, primarily due to **lower** accounts payable and earnings[133](index=133&type=chunk) - The credit facility's Leverage Ratio covenant was **increased** from **3.50 to 1.00** to **4.00 to 1.00** for quarters ending March 31, 2024, through June 30, 2025, to provide additional borrowing capacity and financial **flexibility**[165](index=165&type=chunk)[237](index=237&type=chunk) - The quarterly dividend was **reduced** from **$0.46** to **$0.05** per share in Q2 2024 to free up capital for **deleveraging** and enhancing financial position[152](index=152&type=chunk)[155](index=155&type=chunk) - Total debt outstanding is **$2.1 billion**, with the next scheduled maturity of **$300 million** **3.8%** Senior Notes due in November 2024, expected to be predominantly retired with commercial paper[151](index=151&type=chunk)[167](index=167&type=chunk) - Borrowing capacity under the credit facility was **$445 million** at March 31, 2024[166](index=166&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements rely on **critical** accounting estimates; no new policies or **material** changes were identified in Q1 2024 - **Critical** accounting estimates are subject to **uncertainty** and change, and have a **material** impact on financial statements[170](index=170&type=chunk) - No newly identified **critical** accounting policies or **material** changes to existing policies were reported in the first three months of 2024[170](index=170&type=chunk) [Contingencies](index=34&type=section&id=Contingencies) The company faces litigation, climate change, and cybersecurity contingencies, with potential for **$15 million** in reasonably possible litigation losses - Litigation contingency accruals are **immaterial**, but aggregate reasonably possible losses in excess of accruals are estimated at **$15 million** as of March 31, 2024[172](index=172&type=chunk) - Climate change transition **risks** include **increased** compliance costs from new laws (e.g., EU Green Deal, California Climate Acts) and market shifts towards lightweight automotive components[173](index=173&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) - Physical climate change **risks** involve direct impacts from severe weather on manufacturing facilities and indirect effects on the supply chain, potentially leading to **higher** costs and disruptions[177](index=177&type=chunk)[179](index=179&type=chunk) - Cybersecurity **risks** are **increasing** due to remote work and sophisticated attacks; failures could lead to system disruptions, data breaches, and **significant** remediation costs[185](index=185&type=chunk) [New Accounting Standards](index=38&type=section&id=New%20Accounting%20Standards) The company is evaluating new FASB ASUs on Segment Reporting (effective 2024/2025) and Income Tax Disclosures (effective 2025) - ASU 2023-07 'Segment Reporting' requires additional disclosures about reportable segments' expenses, **effective** for annual periods beginning January 1, 2024, and interim periods beginning January 1, 2025[32](index=32&type=chunk) - ASU 2023-09 'Income Taxes' requires disclosure of specific categories in rate reconciliation and disaggregated income taxes paid by jurisdiction, **effective** for annual periods beginning January 1, 2025[33](index=33&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company is subject to interest rate and foreign currency **risks**, using derivatives to mitigate them; fixed-rate debt fair value is **$220.0 million** less than carrying value - The company is subject to market and financial **risks** related to interest rates and foreign currency, using derivative instruments to **reduce** or eliminate these **risks**[198](index=198&type=chunk) - The fair value of fixed rate debt was approximately **$220.0 million** less than its carrying value of **$1,786.9 million** at March 31, 2024[196](index=196&type=chunk) - Net investment in foreign operations with non-U.S. dollar functional currencies was **$1,218.9 million** at March 31, 2024[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures.) Disclosure controls and procedures were **effective** as of March 31, 2024, with no **material** changes to internal control over financial reporting - The company's disclosure controls and procedures were **effective** as of March 31, 2024[201](index=201&type=chunk) - No **material** changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2024[202](index=202&type=chunk) [PART II - OTHER INFORMATION](index=40&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings.) Legal proceedings include antidumping duties on mattresses; new petitions filed, with final determinations expected May-September 2024, posing market share **risks** - Antidumping and countervailing duty orders on mattresses from certain countries are in **effect** through May 2026, with an ongoing appeal regarding the ITC's injury decision[207](index=207&type=chunk)[208](index=208&type=chunk) - New petitions filed in July 2023 against mattress imports from additional countries resulted in preliminary injury and dumping determinations, with final determinations expected between May and September 2024[209](index=209&type=chunk) - **Negative** determinations or circumvention of duties could **adversely** affect the company's market share, sales, profit margins, and earnings[114](index=114&type=chunk)[243](index=243&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors.) This section updates risk factors, categorizing operational, financial, market, IT, and regulatory **risks**, including Restructuring Plan execution and climate change [OPERATIONAL RISK FACTORS](index=41&type=section&id=OPERATIONAL%20RISK%20FACTORS) Operational **risks** include Restructuring Plan **uncertainties** and potential **negative** impacts on relationships, plus physical climate change effects on operations and supply chains - The Restructuring Plan's success is **uncertain**, with preliminary cost estimates and potential for **negative** impacts on employee, customer, and vendor relationships[214](index=214&type=chunk) - Physical effects of climate change, including severe weather events, could damage assets, disrupt infrastructure, and impact supply chains, despite the company's diverse geographical footprint[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) [FINANCIAL RISK FACTORS](index=43&type=section&id=FINANCIAL%20RISK%20FACTORS) Financial **risks** include **uncertain** future dividends, **increased** bad debt, potential asset impairments, and non-compliance with credit facility covenants - The company recently **lowered** its quarterly cash dividend from **$0.46** to **$0.05** per share, and there is no assurance of future dividend payments at the same or **higher** rate[223](index=223&type=chunk) - Macroeconomic **uncertainties** have led to **increased** bad debt expense (**$5 million** in Q1 2024) and potential for further collection difficulties from financially **unstable** customers, particularly in the Bedding Products segment[224](index=224&type=chunk)[225](index=225&type=chunk) - Goodwill and other long-lived assets, totaling **$1.6 billion** (**36%** of total assets), are subject to impairment testing, with fair value exceeding carrying value by less than **100%** for four reporting units as of March 31, 2024[226](index=226&type=chunk)[229](index=229&type=chunk) - Failure to comply with amended credit facility covenants (Leverage Ratio **increased** to **4.00 to 1.00** until June 30, 2025) could restrict borrowing capacity, trigger default, and **adversely** impact liquidity[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) [MARKET RISK FACTORS](index=46&type=section&id=MARKET%20RISK%20FACTORS) Market **risks** include unfair foreign competition, foreign currency fluctuations impacting competitiveness, and **rising** interest rates **increasing** debt costs - Unfair competition from foreign manufacturers, particularly in mattresses, could **adversely** affect market share, sales, profit margins, and earnings if existing antidumping duties are overturned or circumvented[243](index=243&type=chunk) - Foreign currency exchange rate fluctuations pose a **risk** to competitiveness, profit margins, and earnings, as **39%** of 2023 sales were international and approximately **50 manufacturing facilities** are outside the U.S[244](index=244&type=chunk) - **Rising** interest rates have **increased** interest expense and could make refinancing long-term debt more costly, impacting financial condition[246](index=246&type=chunk) [INFORMATION TECHNOLOGY AND CYBERSECURITY RISK FACTORS](index=46&type=section&id=INFORMATION%20TECHNOLOGY%20AND%20CYBERSECURITY%20RISK%20FACTORS) IT failures and cybersecurity incidents, including AI misuse, pose **risks** of disruptions, data breaches, and **significant** financial and reputational costs - Information technology failures or cybersecurity breaches, including ransomware attacks on industrial control systems, could disrupt operations, lead to unauthorized data disclosure, and incur **significant** remediation and legal costs[248](index=248&type=chunk)[252](index=252&type=chunk) - The company expects to spend approximately **$9 million** in 2024 on cybersecurity protection efforts[249](index=249&type=chunk) - Unauthorized use of artificial intelligence by employees could expose **sensitive** company information, infringe intellectual property rights, violate privacy laws, and harm reputation[254](index=254&type=chunk)[255](index=255&type=chunk) [REGULATORY RISK FACTORS](index=48&type=section&id=REGULATORY%20RISK%20FACTORS) Regulatory **risks** stem from evolving privacy laws, **increased** environmental regulations, and tax law changes, potentially leading to fines and **higher** compliance costs - Complex global privacy and data protection regulations (e.g., GDPR, UK GDPR, China's PIPL) could result in **substantial** fines, reputational harm, and operational changes, particularly regarding cross-border data transfers[256](index=256&type=chunk)[257](index=257&type=chunk) - Enhanced environmental regulations and climate change treaties (e.g., EU Green Deal, Paris Agreement) are expected to **increase** compliance costs and potential liabilities, impacting business and competitive position[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - Changes in tax laws (e.g., BEPS concepts) or challenges from ongoing tax audits could **negatively** impact earnings and cash flows, including delays in Mexico VAT refunds[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) [LITIGATION RISK FACTORS](index=50&type=section&id=LITIGATION%20RISK%20FACTORS) Litigation contingencies have an **immaterial** accrual, but reasonably possible losses could reach **$15 million**, with new litigation posing **material** financial impact - The company has an **immaterial** aggregate litigation contingency accrual at March 31, 2024[267](index=267&type=chunk) - Reasonably possible losses in excess of recorded accruals for litigation contingencies are estimated at **$15 million**[267](index=267&type=chunk) - Incorrect assumptions or new litigation could **materially** **negatively** impact financial condition, results of operations, and cash flows[267](index=267&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No shares were purchased under public plans in Q1 2024; **186,103 shares** were withheld for taxes, with a standing authorization for **10 million shares** annual repurchases - No shares were purchased as part of publicly announced plans or programs during Q1 2024[269](index=269&type=chunk) - **186,103 shares** were withheld for taxes on stock unit conversions and forfeitures in Q1 2024, at an average price of **$22.02** per share[269](index=269&type=chunk) - The Board has authorized the repurchase of up to **10 million shares** each calendar year, with no specific repurchase schedule established[269](index=269&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information.) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024 - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024[270](index=270&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits.) Exhibits include corporate governance documents, executive compensation plans, credit facility amendments, and CEO/CFO certifications, along with Inline XBRL - Exhibits include corporate governance documents (Restated Articles of Incorporation, Bylaws), executive compensation plans, and the Amendment Agreement for the credit facility dated March 22, 2024[271](index=271&type=chunk) - Certifications from the CEO and CFO (pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350) are filed or furnished with the report[271](index=271&type=chunk) - The report includes Inline XBRL documents for the consolidated condensed financial statements[273](index=273&type=chunk) [SIGNATURES](index=52&type=section&id=SIGNATURES) The report is signed by J. Mitchell Dolloff (President and CEO) and Benjamin M. Burns (EVP and CFO) on May 8, 2024 - The report is signed by J. Mitchell Dolloff, President and CEO, and Benjamin M. Burns, EVP and CFO, on May 8, 2024[277](index=277&type=chunk) ```

CARTHAGE, Mo., May 8, 2024 /PRNewswire/ -- Leggett & Platt's annual meeting of shareholders was held this morning in Carthage, Missouri.  Shareholders elected as directors the 11 nominees proposed by the Board; ratified the selection of PricewaterhouseCoopers as the Company's independent registered public accountant for 2024; endorsed the compensation of the Company's named executive officers; and approved the amendment and restatement of the Company's Flexible Stock Plan.  No other proposals were voted upo ...