UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 3, 2020
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant’s telephone number, including area code 417 -358-8131
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
1
Item 7.01 Regulation FD Disclosure.
Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. To reflect how we manage our newly aligned businesses and in conjunction with the change in executive officer leadership, our management organizational structure and all related internal reporting changed effective January 1, 2020. As a result, our segment reporting will change to reflect the new structure beginning with our 2020 first quarter Form 10-Q. The modified structure will consist of three segments, seven business groups, and 15 business units organized as follows:
Bedding Products 1 | Specialized Products | Furniture, Flooring & Textile Products 2 | ||
Segment | Segment | Segment | ||
BEDDING GROUP | AUTOMOTIVE GROUP | HOME FURNITURE GROUP | ||
Steel Rod | Automotive | Home Furniture | ||
Drawn Wire | ||||
U.S. Spring | AEROSPACE PRODUCTS GROUP | WORK FURNITURE GROUP | ||
Specialty Foam | Aerospace Products | Work Furniture | ||
Adjustable Bed | ||||
International Spring | HYDRAULIC CYLINDERS | FLOORING & TEXTILE | ||
Machinery | GROUP | PRODUCTS GROUP | ||
Hydraulic Cylinders | Flooring Products | |||
Fabric Converting | ||||
Geo Components | ||||
1 The new segment consists of the former Residential Products and Industrial Products segments, plus the Consumer Products Group (which is renamed the Adjustable Bed business unit), minus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group).
2 The new segment consists of the former Furniture Products segment, plus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group) minus the Consumer Products Group (which is renamed the Adjustable Bed business unit).
Attached as Exhibit 99.1 is a Revised Overview of Segments and Revised Segment Financial Data, which contains certain revised unaudited segment financial data for each annual and quarterly period from 2015 through 2019. This financial data reflects the reportable segments the Company will use to present its first quarter financial results for 2020 and is being provided to facilitate the comparison of such results with prior financial periods. While this financial data reflects the change in the Company’s reportable segments described above, the Company is not in any way revising or restating historical consolidated financial statements for any period. The Company’s consolidated net sales, earnings from continuing operations before interest and taxes, earnings from continuing operations, net earnings and net earnings per share remain unchanged for all periods presented.
This information, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information shall not be incorporated by reference into any document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
2
Item 9.01 Financial Statements and Exhibits.
d) Exhibits.
EXHIBIT INDEX
Exhibit No. | Description | |
99.1* | ||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |
101.SCH** | Inline XBRL Taxonomy Extension Schema | |
101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase | |
101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase | |
101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101) | |
* Denotes Furnished herewith. | ||
** Denotes Filed herewith. | ||
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LEGGETT & PLATT, INCORPORATED | ||||||
Date: April 3, 2020 | By: | /s/ SCOTT S. DOUGLAS | ||||
Scott S. Douglas | ||||||
Senior Vice President - | ||||||
General Counsel & Secretary | ||||||
4
Exhibit 99.1
REVISED OVERVIEW OF SEGMENTS AND REVISED SEGMENT FINANCIAL DATA
Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. To reflect how we manage our newly aligned businesses and in conjunction with the change in executive officer leadership, our management organizational structure and all related internal reporting changed effective January 1, 2020. As a result, our segment reporting will change to reflect the new structure beginning with our 2020 first quarter Form 10-Q. The modified structure will consist of three segments, seven business groups, and 15 business units organized as follows:
Bedding Products 1 | Specialized Products | Furniture, Flooring & Textile Products 2 | ||
Segment | Segment | Segment | ||
BEDDING GROUP | AUTOMOTIVE GROUP | HOME FURNITURE GROUP | ||
Steel Rod | Automotive | Home Furniture | ||
Drawn Wire | ||||
U.S. Spring | AEROSPACE PRODUCTS GROUP | WORK FURNITURE GROUP | ||
Specialty Foam | Aerospace Products | Work Furniture | ||
Adjustable Bed | ||||
International Spring | HYDRAULIC CYLINDERS | FLOORING & TEXTILE | ||
Machinery | GROUP | PRODUCTS GROUP | ||
Hydraulic Cylinders | Flooring Products | |||
Fabric Converting | ||||
Geo Components | ||||
1 The new segment consists of the former Residential Products and Industrial Products segments, plus the Consumer Products Group (which is renamed the Adjustable Bed business unit), minus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group). | ||||
2 The new segment consists of the former Furniture Products segment, plus the Fabric & Flooring Products Group (which is renamed the Flooring & Textile Products Group) minus the Consumer Products Group (which is renamed the Adjustable Bed business unit). | ||||
Below is a revised overview of our segment structure.
Bedding Products Segment
BEDDING GROUP |
Steel Rod |
Drawn Wire |
U.S. Spring |
Specialty Foam |
Adjustable Bed |
International Spring |
Machinery |
Our Bedding Products segment has its roots in the Company's founding in 1883 with the manufacture of steel coil bedsprings. Today, we support our customers' needs from raw materials to components to finished mattresses and foundations to distribution and fulfillment. Our innerspring, specialty foam, and finished product development and production capabilities allow us to create value at each point, from raw materials all the way to private-label finished goods and delivery to the consumer.
We operate a steel rod mill in the U.S. with historical annual output of about 500,000 tons. A substantial majority of that output has been used by our two U.S. wire mills that have supplied virtually all of the wire consumed by our other domestic businesses. We also supply steel rod and wire to trade customers that operate in a broad range of markets.
We are a major supplier of adjustable beds, with domestic manufacturing, distribution, e-commerce fulfillment and global sourcing capabilities. We also produce machinery used by bedding manufacturers in the production and assembly of their finished products. Our range of products offers our customers a single source for many of their component and finished product needs.
These innovative proprietary products and our efficient and low cost vertical integration have made us the largest U.S. manufacturer in many of these businesses. We strive to understand what drives consumer purchases in our markets and focus our product development activities on meeting end-consumer needs. We believe we attain a cost advantage from efficient manufacturing methods, internal production of key raw materials, large-scale production, and purchasing leverage. Sourcing components and finished products from us allows our customers to focus on designing, merchandising and marketing their products.
1
PRODUCTS
Bedding Group
• | Steel rod | ||
• | Drawn wire | ||
• | Specialty foam chemicals and additives | ||
• | Innersprings (sets of steel coils, bound together, that form the core of a mattress) | ||
• | Proprietary specialty foam for use primarily in bedding and furniture | ||
• | Private-label finished mattresses, often sold compressed and boxed | ||
• | Ready-to-assemble mattress foundations | ||
• | Wire forms for mattress foundations | ||
• | Adjustable beds | ||
• | Machines that we use to shape wire into various types of innersprings | ||
• | Industrial sewing and quilting machines | ||
• | Mattress packaging and glue-drying equipment | ||
CUSTOMERS
• | We used about 70% of our wire output to manufacture our own products in 2019, with the majority going to our U.S. innerspring operations | ||
• | Various industrial users of steel rod and wire | ||
• | Manufacturers of finished bedding (mattresses and foundations) | ||
• | Bedding brands and mattress retailers | ||
• | E-commerce retailers | ||
• | Big box retailers, department stores, and home improvement centers | ||
Specialized Products Segment
AUTOMOTIVE GROUP |
Automotive |
AEROSPACE PRODUCTS GROUP |
Aerospace Products |
HYDRAULIC CYLINDERS GROUP |
Hydraulic Cylinders |
Our Specialized Products segment designs, manufactures and sells products including automotive comfort and convenience systems, tubing and fabricated assemblies for the aerospace industry, and hydraulic cylinders for the material handling, construction and transportation industries. In our Automotive business, our technical capability and deep customer engagement allows us to compete on critical functionality, such as comfort, size, weight and noise. We believe our reliable product development and launch capability, coupled with our global footprint, makes us a trusted partner for our Tier 1 and OEM customers.
PRODUCTS
Automotive Group
• | Mechanical and pneumatic lumbar support and massage systems for automotive seating | ||
• | Seat suspension systems | ||
• | Motors and actuators, used in a wide variety of vehicle power features | ||
• | Cables | ||
Aerospace Products Group
• | Titanium, nickel and stainless-steel tubing, formed tube and tube assemblies, primarily used in fluid conveyance systems | ||
Hydraulic Cylinders Group
• | Engineered hydraulic cylinders | ||
CUSTOMERS
• | Automobile OEMs and Tier 1 suppliers | ||
• | Aerospace OEMs and suppliers | ||
• | Mobile equipment OEMs, primarily serving material handling and construction markets | ||
2
Furniture, Flooring & Textile Products Segment
HOME FURNITURE GROUP |
Home Furniture |
WORK FURNITURE GROUP |
Work Furniture |
FLOORING & TEXTILE PRODUCTS GROUP |
Flooring Products |
Fabric Converting |
Geo Components |
In our Furniture, Flooring & Textile Products segment, we design, manufacture, and distribute a wide range of components and finished products for residential and commercial markets, and select markets for structural fabrics and geo components. We supply components used by home and work furniture manufacturers to provide comfort, motion and style in their finished products, as well as select lines of private-label finished furniture. We also produce or distribute carpet cushion and hard surface flooring underlayment.
PRODUCTS
Home Furniture Group
• | Steel mechanisms and motion hardware (enabling furniture to recline, tilt, swivel, rock and elevate) for reclining chairs, sofas, sleeper sofas and lift chairs | ||
• | Springs and seat suspensions for chairs, sofas and loveseats | ||
Work Furniture Group
• | Components and private-label finished goods for collaborative soft seating | ||
• | Bases, columns, back rests, casters and frames for office chairs, and control devices that allow chairs to tilt, swivel and elevate | ||
Flooring & Textile Products Group
• | Carpet cushion and hard surface flooring underlayment (made from bonded scrap foam, fiber, rubber and prime foam) | ||
• | Structural fabrics for mattresses, residential furniture and industrial uses | ||
• | Geo components (synthetic fabrics and various other products used in ground stabilization, drainage protection, erosion and weed control) | ||
CUSTOMERS
• | Manufacturers of upholstered furniture | ||
• | Office furniture manufacturers | ||
• | Flooring retailers and distributors, including big box retailers and home improvement centers | ||
• | Contractors, landscapers, road construction companies, and government agencies using geo components | ||
• | Mattress producers and manufacturers of packaging, filtration and draperies | ||
3
Revised Segment Financial Data for Continuing Operations (Unaudited)
2015 | 2016 | ||||||||||||||||||||||||||||||
(In millions, except percentages) | 1Q15 | 2Q15 | 3Q15 | 4Q15 | FY15 3 | 1Q16 | 2Q16 | 3Q16 | 4Q16 | FY16 4 | |||||||||||||||||||||
Net Trade Sales 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 445.2 | $ | 429.9 | $ | 449.7 | $ | 399.2 | $ | 1,724.0 | $ | 393.6 | $ | 384.6 | $ | 389.4 | $ | 353.3 | $ | 1,520.9 | |||||||||||
Specialized Products | 204.3 | 214.9 | 210.0 | 211.6 | 840.8 | 219.8 | 235.4 | 219.7 | 224.9 | 899.8 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 316.7 | 352.5 | 349.4 | 333.8 | 1,352.4 | 325.0 | 338.9 | 339.8 | 325.5 | 1,329.2 | |||||||||||||||||||||
Total | $ | 966.2 | $ | 997.3 | $ | 1,009.1 | $ | 944.6 | $ | 3,917.2 | $ | 938.4 | $ | 958.9 | $ | 948.9 | $ | 903.7 | $ | 3,749.9 | |||||||||||
Net Total Sales 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 460.2 | $ | 443.4 | $ | 463.6 | $ | 412.8 | $ | 1,780.0 | $ | 405.6 | $ | 394.8 | $ | 399.7 | $ | 363.8 | $ | 1,563.9 | |||||||||||
Specialized Products | 205.3 | 216.3 | 212.2 | 213.4 | 847.2 | 221.5 | 237.2 | 221.2 | 226.4 | 906.3 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 324.7 | 359.7 | 355.7 | 339.0 | 1,379.1 | 331.0 | 344.1 | 344.4 | 331.5 | 1,351.0 | |||||||||||||||||||||
Total | $ | 990.2 | $ | 1,019.4 | $ | 1,031.5 | $ | 965.2 | $ | 4,006.3 | $ | 958.1 | $ | 976.1 | $ | 965.3 | $ | 921.7 | $ | 3,821.2 | |||||||||||
Intersegment Sales | (24.0 | ) | (22.1 | ) | (22.4 | ) | (20.6 | ) | (89.1 | ) | (19.7 | ) | (17.2 | ) | (16.4 | ) | (18.0 | ) | (71.3 | ) | |||||||||||
Net Trade Sales | $ | 966.2 | $ | 997.3 | $ | 1,009.1 | $ | 944.6 | $ | 3,917.2 | $ | 938.4 | $ | 958.9 | $ | 948.9 | $ | 903.7 | $ | 3,749.9 | |||||||||||
Organic Growth (Net Total Sales) 2 | |||||||||||||||||||||||||||||||
Bedding Products | |||||||||||||||||||||||||||||||
Net Total Sales | 14 | % | 6 | % | (3 | )% | (3 | )% | 3 | % | (12 | )% | (11 | )% | (14 | )% | (12 | )% | (12 | )% | |||||||||||
Acquisition | (7 | ) | (6 | ) | — | — | (3 | ) | — | — | — | — | — | ||||||||||||||||||
Divestiture | — | — | — | — | — | 5 | 6 | 7 | 7 | 6 | |||||||||||||||||||||
Organic | 7 | % | — | % | (3 | )% | (3 | )% | — | % | (7 | )% | (5 | )% | (7 | )% | (5 | )% | (6 | )% | |||||||||||
Specialized Products | |||||||||||||||||||||||||||||||
Net Total Sales | 6 | % | (1 | )% | 4 | % | 6 | % | 4 | % | 8 | % | 10 | % | 4 | % | 6 | % | 7 | % | |||||||||||
Acquisition | — | — | — | — | — | (1 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||
Divestiture | — | — | — | 1 | — | 2 | 2 | 5 | 4 | 3 | |||||||||||||||||||||
Organic | 6 | % | (1 | )% | 4 | % | 7 | % | 4 | % | 9 | % | 10 | % | 7 | % | 8 | % | 8 | % | |||||||||||
Furniture, Flooring & Textile Products | |||||||||||||||||||||||||||||||
Net Total Sales | 9 | % | 6 | % | 5 | % | (3 | )% | 4 | % | 2 | % | (4 | )% | (3 | )% | (2 | )% | (2 | )% | |||||||||||
Acquisition | (4 | ) | (7 | ) | (5 | ) | (4 | ) | (5 | ) | (3 | ) | — | (1 | ) | (1 | ) | (1 | ) | ||||||||||||
Divestiture | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Organic | 5 | % | (1 | )% | — | % | (7 | )% | (1 | )% | (1 | )% | (4 | )% | (4 | )% | (3 | )% | (3 | )% | |||||||||||
EBIT 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 46.4 | $ | 45.5 | $ | 61.7 | $ | 55.1 | $ | 208.7 | $ | 51.1 | $ | 53.3 | $ | 54.9 | $ | 44.2 | $ | 203.5 | |||||||||||
Specialized Products | 37.8 | 36.8 | 37.1 | 38.5 | 150.2 | 43.5 | 54.7 | 40.6 | 42.6 | 181.4 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 27.9 | 37.0 | 42.6 | 32.6 | 140.1 | 32.6 | 38.3 | 34.8 | 31.4 | 137.1 | |||||||||||||||||||||
Intersegment Eliminations and Other | (.4 | ) | (.1 | ) | .1 | (12.1 | ) | (12.5 | ) | (.1 | ) | .2 | (.1 | ) | — | — | |||||||||||||||
Total | $ | 111.7 | $ | 119.2 | $ | 141.5 | $ | 114.1 | $ | 486.5 | $ | 127.1 | $ | 146.5 | $ | 130.2 | $ | 118.2 | $ | 522.0 | |||||||||||
Net Interest Expense | (9.7 | ) | (10.2 | ) | (9.2 | ) | (7.6 | ) | (36.7 | ) | (8.4 | ) | (9.3 | ) | (9.0 | ) | (8.2 | ) | (34.9 | ) | |||||||||||
Income Taxes | (28.7 | ) | (32.3 | ) | (36.1 | ) | (24.7 | ) | (121.8 | ) | (27.7 | ) | (37.7 | ) | (27.6 | ) | (27.0 | ) | (120.0 | ) | |||||||||||
Earnings from Continuing Operations | $ | 73.3 | $ | 76.7 | $ | 96.2 | $ | 81.8 | $ | 328.0 | $ | 91.0 | $ | 99.5 | $ | 93.6 | $ | 83.0 | $ | 367.1 | |||||||||||
EBIT Margin 1 | |||||||||||||||||||||||||||||||
Bedding Products | 10.1 | % | 10.3 | % | 13.3 | % | 13.3 | % | 11.7 | % | 12.6 | % | 13.5 | % | 13.7 | % | 12.1 | % | 13.0 | % | |||||||||||
Specialized Products | 18.4 | % | 17.0 | % | 17.5 | % | 18.0 | % | 17.7 | % | 19.6 | % | 23.1 | % | 18.4 | % | 18.8 | % | 20.0 | % | |||||||||||
Furniture, Flooring & Textile Products | 8.6 | % | 10.3 | % | 12.0 | % | 9.6 | % | 10.2 | % | 9.8 | % | 11.1 | % | 10.1 | % | 9.5 | % | 10.1 | % | |||||||||||
Overall | 11.6 | % | 12.0 | % | 14.0 | % | 12.1 | % | 12.4 | % | 13.5 | % | 15.3 | % | 13.7 | % | 13.1 | % | 13.9 | % | |||||||||||
Segments = EBIT / Total Sales | |||||||||||||||||||||||||||||||
Overall = EBIT / Trade Sales | |||||||||||||||||||||||||||||||
1 Sales, EBIT, and margin reflect revised segment structure and exclude discontinued operations. | |||||||||||||||||||||||||||||||
2 Organic Growth (Net Total Sales) excludes sales attributable to acquisitions and divestitures consummated within the last twelve months. Management uses the metric, and it is useful to investors, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses. | |||||||||||||||||||||||||||||||
3 2015 amounts: Litigation accrual of $5.5 in Furniture, Flooring & Textile Products - $1.5 in 2Q15 and $4.0 in 4Q15; Impairment charge of $5.5 in Bedding Products - 1Q15; and a pension lump-sum buyout of $12.1 in intersegment eliminations - 4Q15. | |||||||||||||||||||||||||||||||
4 2016 amounts: Divestiture gains of $11.2 in Specialized Products - 2Q16 and $15.7 in Bedding Products - 4Q16; Impairment charge of $3.7 in Specialized Products - 2Q16; and a litigation settlement gain of $6.9 in Furniture, Flooring & Textile Products - 2Q16. | |||||||||||||||||||||||||||||||
4
2017 | 2018 | ||||||||||||||||||||||||||||||
(In millions, except percentages) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | FY17 3 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | FY18 4 | |||||||||||||||||||||
Net Trade Sales 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 391.1 | $ | 388.9 | $ | 420.9 | $ | 404.0 | $ | 1,604.9 | $ | 427.7 | $ | 453.3 | $ | 479.7 | $ | 434.6 | $ | 1,795.3 | |||||||||||
Specialized Products | 234.4 | 238.4 | 227.8 | 234.9 | 935.5 | 267.4 | 275.9 | 253.5 | 259.5 | 1,056.3 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 334.8 | 362.0 | 361.0 | 345.6 | 1,403.4 | 333.7 | 373.3 | 358.3 | 352.6 | 1,417.9 | |||||||||||||||||||||
Total | $ | 960.3 | $ | 989.3 | $ | 1,009.7 | $ | 984.5 | $ | 3,943.8 | $ | 1,028.8 | $ | 1,102.5 | $ | 1,091.5 | $ | 1,046.7 | $ | 4,269.5 | |||||||||||
Net Total Sales 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 403.1 | $ | 399.9 | $ | 431.6 | $ | 415.8 | $ | 1,650.4 | $ | 439.2 | $ | 465.2 | $ | 490.2 | $ | 447.3 | $ | 1,841.9 | |||||||||||
Specialized Products | 236.3 | 240.1 | 229.7 | 236.5 | 942.6 | 268.1 | 276.5 | 254.2 | 260.2 | 1,059.0 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 339.9 | 367.5 | 366.4 | 349.3 | 1,423.1 | 337.7 | 378.2 | 363.4 | 356.7 | 1,436.0 | |||||||||||||||||||||
Total | $ | 979.3 | $ | 1,007.5 | $ | 1,027.7 | $ | 1,001.6 | $ | 4,016.1 | $ | 1,045.0 | $ | 1,119.9 | $ | 1,107.8 | $ | 1,064.2 | $ | 4,336.9 | |||||||||||
Intersegment Sales | (19.0 | ) | (18.2 | ) | (18.0 | ) | (17.1 | ) | (72.3 | ) | (16.2 | ) | (17.4 | ) | (16.3 | ) | (17.5 | ) | (67.4 | ) | |||||||||||
Net Trade Sales | $ | 960.3 | $ | 989.3 | $ | 1,009.7 | $ | 984.5 | $ | 3,943.8 | $ | 1,028.8 | $ | 1,102.5 | $ | 1,091.5 | $ | 1,046.7 | $ | 4,269.5 | |||||||||||
Organic Growth (Net Total Sales) 2 | |||||||||||||||||||||||||||||||
Bedding Products | |||||||||||||||||||||||||||||||
Net Total Sales | (1 | )% | 1 | % | 8 | % | 14 | % | 6 | % | 9 | % | 16 | % | 14 | % | 8 | % | 12 | % | |||||||||||
Acquisition | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Divestiture | 5 | 3 | 1 | 1 | 2 | — | — | — | — | — | |||||||||||||||||||||
Organic | 4 | % | 4 | % | 9 | % | 15 | % | 8 | % | 9 | % | 16 | % | 14 | % | 8 | % | 12 | % | |||||||||||
Specialized Products | |||||||||||||||||||||||||||||||
Net Total Sales | 7 | % | 1 | % | 4 | % | 4 | % | 4 | % | 13 | % | 15 | % | 11 | % | 10 | % | 12 | % | |||||||||||
Acquisition | (1 | ) | — | — | — | — | (6 | ) | (9 | ) | (10 | ) | (10 | ) | (9 | ) | |||||||||||||||
Divestiture | 3 | 4 | 5 | 7 | 4 | 4 | 5 | 2 | — | 3 | |||||||||||||||||||||
Organic | 9 | % | 5 | % | 9 | % | 11 | % | 8 | % | 11 | % | 11 | % | 3 | % | — | % | 6 | % | |||||||||||
Furniture, Flooring & Textile Products | |||||||||||||||||||||||||||||||
Net Total Sales | 3 | % | 7 | % | 6 | % | 5 | % | 5 | % | (1 | )% | 3 | % | (1 | )% | 2 | % | 1 | % | |||||||||||
Acquisition | (3 | ) | (5 | ) | (5 | ) | (5 | ) | (4 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | |||||||||||
Divestiture | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Organic | — | % | 2 | % | 1 | % | — | % | 1 | % | (3 | )% | 2 | % | (2 | )% | 1 | % | (1 | )% | |||||||||||
EBIT 1 | |||||||||||||||||||||||||||||||
Bedding Products | $ | 46.8 | $ | 42.9 | $ | 42.2 | $ | 30.7 | $ | 162.6 | $ | 39.8 | $ | 37.8 | $ | 54.4 | $ | 17.8 | $ | 149.8 | |||||||||||
Specialized Products | 43.0 | 44.1 | 34.2 | 74.3 | 195.6 | 46.1 | 51.9 | 43.5 | 47.5 | 189.0 | |||||||||||||||||||||
Furniture, Flooring & Textile Products | 25.9 | 35.4 | 32.7 | 30.8 | 124.8 | 21.6 | 31.6 | 26.6 | 18.8 | 98.6 | |||||||||||||||||||||
Intersegment Eliminations and Other | .2 | (.1 | ) | .1 | (15.3 | ) | (15.1 | ) | (.1 | ) | (.2 | ) | (.1 | ) | (.1 | ) | (.5 | ) | |||||||||||||
Total | $ | 115.9 | $ | 122.3 | $ | 109.2 | $ | 120.5 | $ | 467.9 | $ | 107.4 | $ | 121.1 | $ | 124.4 | $ | 84.0 | $ | 436.9 | |||||||||||
Net Interest Expense | (8.6 | ) | (8.9 | ) | (8.5 | ) | (9.9 | ) | (35.9 | ) | (12.0 | ) | (13.6 | ) | (11.1 | ) | (15.8 | ) | (52.5 | ) | |||||||||||
Income Taxes | (21.2 | ) | (25.8 | ) | (17.2 | ) | (74.2 | ) | (138.4 | ) | (17.5 | ) | (22.4 | ) | (23.3 | ) | (15.1 | ) | (78.3 | ) | |||||||||||
Earnings from Continuing Operations | $ | 86.1 | $ | 87.6 | $ | 83.5 | $ | 36.4 | $ | 293.6 | $ | 77.9 | $ | 85.1 | $ | 90.0 | $ | 53.1 | $ | 306.1 | |||||||||||
EBIT Margin 1 | |||||||||||||||||||||||||||||||
Bedding Products | 11.6 | % | 10.7 | % | 9.8 | % | 7.4 | % | 9.9 | % | 9.1 | % | 8.1 | % | 11.1 | % | 4.0 | % | 8.1 | % | |||||||||||
Specialized Products | 18.2 | % | 18.4 | % | 14.9 | % | 31.4 | % | 20.8 | % | 17.2 | % | 18.8 | % | 17.1 | % | 18.3 | % | 17.8 | % | |||||||||||
Furniture, Flooring & Textile Products | 7.6 | % | 9.6 | % | 8.9 | % | 8.8 | % | 8.8 | % | 6.4 | % | 8.4 | % | 7.3 | % | 5.3 | % | 6.9 | % | |||||||||||
Overall | 12.1 | % | 12.4 | % | 10.8 | % | 12.2 | % | 11.9 | % | 10.4 | % | 11.0 | % | 11.4 | % | 8.0 | % | 10.2 | % | |||||||||||
Segments = EBIT / Total Sales | |||||||||||||||||||||||||||||||
Overall = EBIT / Trade Sales | |||||||||||||||||||||||||||||||
1 Sales, EBIT, and margin reflect revised segment structure and exclude discontinued operations. | |||||||||||||||||||||||||||||||
2 Organic Growth (Net Total Sales) excludes sales attributable to acquisitions and divestitures consummated within the last twelve months. Management uses the metric, and it is useful to investors, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses. | |||||||||||||||||||||||||||||||
3 2017 amounts: Net divestiture gain of $20.1 in Specialized Products - loss of ($3.3) in 3Q17 and gain of $23.4 in 4Q17; Impairment charge of $4.6 in Bedding Products - 3Q17; and a pension settlement charge of $15.3 in intersegment eliminations - 4Q17. | |||||||||||||||||||||||||||||||
4 2018 amounts: Restructuring in 4Q18 of $8.8 in Furniture, Flooring & Textile Products and $7.5 in Bedding Products; Note impairment charge of $15.9 in Bedding Products - 4Q18; and ECS transaction costs of $3.8 in Bedding Products - 4Q18. | |||||||||||||||||||||||||||||||
5
2019 | ||||||||||||||||
(In millions, except percentages) | 1Q19 | 2Q19 | 3Q19 | 4Q19 | FY19 3 | |||||||||||
Net Trade Sales 1 | ||||||||||||||||
Bedding Products | $ | 554.3 | $ | 568.4 | $ | 601.4 | $ | 530.2 | $ | 2,254.3 | ||||||
Specialized Products | 262.9 | 267.0 | 267.2 | 269.7 | 1,066.8 | |||||||||||
Furniture, Flooring & Textile Products | 337.9 | 377.8 | 370.7 | 345.0 | 1,431.4 | |||||||||||
Total | $ | 1,155.1 | $ | 1,213.2 | $ | 1,239.3 | $ | 1,144.9 | $ | 4,752.5 | ||||||
Net Total Sales 1 | ||||||||||||||||
Bedding Products | $ | 564.5 | $ | 578.6 | $ | 612.2 | $ | 540.3 | $ | 2,295.6 | ||||||
Specialized Products | 263.8 | 267.7 | 268.1 | 270.4 | 1,070.0 | |||||||||||
Furniture, Flooring & Textile Products | 342.2 | 381.8 | 374.3 | 349.1 | 1,447.4 | |||||||||||
Total | $ | 1,170.5 | $ | 1,228.1 | $ | 1,254.6 | $ | 1,159.8 | $ | 4,813.0 | ||||||
Intersegment Sales | (15.4 | ) | (14.9 | ) | (15.3 | ) | (14.9 | ) | (60.5 | ) | ||||||
Net Trade Sales | $ | 1,155.1 | $ | 1,213.2 | $ | 1,239.3 | $ | 1,144.9 | $ | 4,752.5 | ||||||
Organic Growth (Net Total Sales) 2 | ||||||||||||||||
Bedding Products | ||||||||||||||||
Net Total Sales | 29 | % | 24 | % | 25 | % | 21 | % | 25 | % | ||||||
Acquisition | (25 | ) | (32 | ) | (33 | ) | (31 | ) | (31 | ) | ||||||
Divestiture | — | — | — | — | — | |||||||||||
Organic | 4 | % | (8 | )% | (8 | )% | (10 | )% | (6 | )% | ||||||
Specialized Products | ||||||||||||||||
Net Total Sales | (2 | )% | (3 | )% | 5 | % | 4 | % | 1 | % | ||||||
Acquisition | (3 | ) | — | — | — | (1 | ) | |||||||||
Divestiture | — | — | — | — | — | |||||||||||
Organic | (5 | )% | (3 | )% | 5 | % | 4 | % | — | % | ||||||
Furniture, Flooring & Textile Products | ||||||||||||||||
Net Total Sales | 1 | % | 1 | % | 3 | % | (2 | )% | 1 | % | ||||||
Acquisition | (4 | ) | (5 | ) | (2 | ) | — | (3 | ) | |||||||
Divestiture | — | — | — | — | — | |||||||||||
Organic | (3 | )% | (4 | )% | 1 | % | (2 | )% | (2 | )% | ||||||
EBIT 1 | ||||||||||||||||
Bedding Products | $ | 44.1 | $ | 63.5 | $ | 70.7 | $ | 57.5 | $ | 235.8 | ||||||
Specialized Products | 35.7 | 41.5 | 44.4 | 48.9 | 170.5 | |||||||||||
Furniture, Flooring & Textile Products | 18.4 | 31.5 | 29.3 | 28.2 | 107.4 | |||||||||||
Intersegment Eliminations and Other | — | (.5 | ) | (.3 | ) | .5 | (.3 | ) | ||||||||
Total | $ | 98.2 | $ | 136.0 | $ | 144.1 | $ | 135.1 | $ | 513.4 | ||||||
Net Interest Expense | (20.0 | ) | (21.9 | ) | (21.1 | ) | (20.3 | ) | (83.3 | ) | ||||||
Income Taxes | (17.1 | ) | (27.8 | ) | (23.4 | ) | (27.9 | ) | (96.2 | ) | ||||||
Earnings from Continuing Operations | $ | 61.1 | $ | 86.3 | $ | 99.6 | $ | 86.9 | $ | 333.9 | ||||||
EBIT Margin 1 | ||||||||||||||||
Bedding Products | 7.8 | % | 11.0 | % | 11.5 | % | 10.6 | % | 10.3 | % | ||||||
Specialized Products | 13.5 | % | 15.5 | % | 16.6 | % | 18.1 | % | 15.9 | % | ||||||
Furniture, Flooring & Textile Products | 5.4 | % | 8.3 | % | 7.8 | % | 8.1 | % | 7.4 | % | ||||||
Overall | 8.5 | % | 11.2 | % | 11.6 | % | 11.8 | % | 10.8 | % | ||||||
Segments = EBIT / Total Sales | ||||||||||||||||
Overall = EBIT / Trade Sales | ||||||||||||||||
1 Sales, EBIT, and margin reflect revised segment structure and exclude discontinued operations. | ||||||||||||||||
2 Organic Growth (Net Total Sales) excludes sales attributable to acquisitions and divestitures consummated within the last twelve months. Management uses the metric, and it is useful to investors, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses. | ||||||||||||||||
3 2019 amounts: Restructuring of $9.0 in Bedding Products ($5.6 in 1Q19, ($1.5) in 2Q19, $2.8 in 3Q19, and $2.1 in 4Q19) and $6.1 in Furniture, Flooring & Textile Products ($.7 in 1Q19, $1.5 in 2Q19, $1.0 in 3Q19, and $2.9 in 4Q19); and ECS transaction costs of $.9 in Bedding Products - 1Q19. | ||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||
FY | FY | FY | 1Q18 | 2Q18 | 3Q18 | 4Q18 | FY18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | FY19 | ||||||||||||||||||||||||||||
Bedding Products | $ | 46.6 | $ | 45.7 | $ | 46.9 | $ | 11.6 | $ | 11.9 | $ | 11.7 | $ | 12.1 | $ | 47.3 | $ | 24.8 | $ | 28.2 | $ | 27.5 | $ | 26.8 | $ | 107.3 | ||||||||||||||
Specialized Products | 28.2 | 29.7 | 31.2 | 9.1 | 9.8 | 9.8 | 10.3 | 39.0 | 10.2 | 10.4 | 10.4 | 10.8 | 41.8 | |||||||||||||||||||||||||||
Furniture, Flooring & Textile Products | 23.9 | 23.5 | 25.3 | 6.7 | 6.6 | 6.6 | 7.1 | 27.0 | 6.6 | 6.7 | 6.4 | 6.0 | 25.7 | |||||||||||||||||||||||||||
Other 1 | 14.5 | 16.5 | 22.5 | 6.0 | 5.5 | 5.7 | 5.6 | 22.8 | 4.7 | 4.7 | 4.1 | 3.6 | 17.1 | |||||||||||||||||||||||||||
Total | $ | 113.2 | $ | 115.4 | $ | 125.9 | $ | 33.4 | $ | 33.8 | $ | 33.8 | $ | 35.1 | $ | 136.1 | $ | 46.3 | $ | 50.0 | $ | 48.4 | $ | 47.2 | $ | 191.9 | ||||||||||||||
1 Other relates to non-operating assets (assets not included in segment assets). | ||||||||||||||||||||||||||||||||||||||||
6