Leggett & Platt Inc.
10/31/2025 | Press release | Distributed by Public on 10/31/2025 10:02
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Highlights
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25
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Introduction
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25
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Results of Operations
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34
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Liquidity and Capitalization
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38
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Critical Accounting Policies and Estimates
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45
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Contingencies
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45
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New Accounting Standards
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47
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HIGHLIGHTS
We had trade sales of $1,036 million for the three months ending September 30, 2025, a decrease of 6% versus the third quarter 2024. In the first nine months of 2025, trade sales were $3,117 million versus $3,327 million for the same period of 2024.
Earnings Before Interest and Taxes (EBIT) for the third quarter and nine months ending September 30, 2025 was $171 million and $324 million, respectively. This is up $93 million and $798 million compared to the same periods in 2024. Third quarter includes an $87 million gain from the sale of the Aerospace Products Group, a $13 million gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, a $2 million gain from the sale of real estate, and $4 million of restructuring and restructuring-related costs. EBIT for the nine months ending September 30, 2025 includes an $87 million gain from the sale the Aerospace Products Group, a $24 million gain from the sale of real estate, a $13 million gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, and $15 million of restructuring and restructuring-related costs.
Earnings Per Share (EPS) was $.91 for the third quarter and $1.51 for the nine months ending September 30, 2025, compared to $.33 and $(3.83) in the same periods of 2024. Third quarter EPS includes a $.58 gain from the sale of the Aerospace Products Group, a $.07 gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, a $.01 gain on the sale of real estate, $.02 in restructuring and restructuring-related charges, and $.02 charge related to a special tax item. EPS for the nine months ending September 30, 2025 includes $.58 gain from the sale of the Aerospace Products Group, $.13 gain on the sale of real estate, $.07 gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, $.08 in restructuring and restructuring-related charges, and $.02 charge related to a special tax item.
Operating cash flow was $217 million in the first nine months of 2025, an increase of $33 million versus the same period of 2024.
In July 2025, we amended our credit agreement to extend the maturity date to 2030 and reduce the lending commitments from $1.2 billion to $1.0 billion.
In August 2025, we sold our Aerospace Products Group for net cash proceeds of $276 million, subject to the final adjustments for working capital, which we expect to be completed by early 2026. We used the Aerospace Products Group proceeds and cash generated from operations to strengthen our balance sheet by reducing debt by $296 million.
INTRODUCTION
What We Do
We are a diversified manufacturer that conceives, designs, and produces a wide range of engineered components and products found in many homes, offices, and automobiles. We make components that are often hidden within, but integral to, our customers' products.
We are 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; and hydraulic cylinders for material-handling and heavy-construction industries.
Our Segments
Our operations are comprised of approximately 110 production facilities located in 18 countries around the world. Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Our segments are described below.
Bedding Products: This segment supplies a variety of components used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated in the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external customers. We also supply steel rod and wire to trade customers that operate in a broad range of markets. This segment contributed 38% of our trade sales during the first nine months of 2025.
Specialized Products: From this segment, we supply lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute engineered hydraulic cylinders used in the material-handling and heavy-construction industries. This segment contributed 28% of our trade sales in the first nine months of 2025. On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note Oto the Consolidated Condensed Financial Statements on page 24.
Furniture, Flooring & Textile Products:Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion, hard surface flooring underlayment, and textile and geo components. This segment contributed 34% of our trade sales in the first nine months of 2025.
Customers
We serve a broad suite of customers, with our largest customer representing less than 8% of our trade sales in 2024. Many are companies whose names are widely recognized. They include bedding brands and manufacturers, residential and office furniture producers, automotive OEM and Tier 1 manufacturers, and a variety of other companies.
Organic Sales
We calculate organic sales as trade sales excluding 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.
Major Factors That Impact Our Business
Tariffs Impacting our Business
We continue to monitor and evaluate policy changes impacting global trade, including tariff regulations, the effects of recently announced tariffs and tariff warning letters, and the potential imposition of modified or additional tariffs. Prior to tariff announcements in 2025, our U.S. businesses sourced approximately $400 million of products annually from trade and intercompany suppliers located in foreign countries, including approximately $100 million from China. Approximately 60% of our trade sales are produced and consumed in the United States, while another 8% of sales produced abroad are consumed in the United States, with 5% currently exempt under the United States-Mexico-Canada Agreement (USMCA). We expect tariffs to present both positive and negative impacts across our businesses, and tariffs overall have had a net positive benefit to our consolidated results of operations through the third quarter. In addition, based on limited information, we expect tariffs may continue to produce a net positive impact to our aggregate results, subject to change as tariffs evolve. However, it is possible that wide-ranging tariffs could drive inflation, weaken consumer confidence, and
ultimately reduce consumer demand for our products and negatively impact our consolidated results of operations.
Across our businesses, we continue to be actively engaged with customers and suppliers to mitigate the impact of tariffs. Our efforts include leveraging our global footprint to shift production and sourcing to less-impacted regions, implementing pricing actions where appropriate, and pursuing increased demand opportunities domestically.
In Bedding Products, although reciprocal tariffs could benefit our U.S. mattress operations by creating a more level playing field between domestic and foreign producers, enforcement remains an unknown. Historically, duties have led to more transshipment of mattresses to avoid higher rates, but recent comments by the current administration appear to contemplate penalties for those activities. This will be an important consideration for the actual impact of reciprocal tariffs. Additionally, the White House announced the suspension of the de minimis rule, effective August 29, 2025. The rule generally allowed for goods valued at $800 or less to be imported into the United States without duties. While we are currently unable to quantify the specific impact on our business, we believe this policy change may create a more level playing field by reducing the cost advantage associated with imported mattresses previously enjoyed by foreign competitors.
Section 232 steel tariffs have had the largest impact on our business and have led to expanded metal margins and increased demand for our Steel Rod and Drawn Wire operations, but we have yet to see noticeable improvement in our innerspring demand.
In addition, in September 2025, we announced the consolidation of our Kentucky Adjustable Bed manufacturing operation into our Mexico operation by the end of this year. This decision was driven by lower volume and tariffs on imported components, which resulted in a cost disadvantage for domestic production in a category that primarily competes with imported products. We expect our Mexican Adjustable Bed operation to remain cost competitive, assuming that the reciprocal tariff exemption for USMCA compliant products remains in place.
Within Specialized Products, our Automotive business, which generally operates as a Tier 2 supplier to the automotive industry, continues to face the largest potential indirect tariff exposure. The majority of our North American production is in Canada and Mexico and is USMCA compliant and currently exempt from most tariffs. As a result, implementation of global tariffs on automotive parts has not directly impacted our operations. However, tariffs could cause reduced demand from our OEM and Tier 1 manufacturer customers if consumer affordability becomes an issue and they need to reduce production. Additionally, there is an emerging disruption risk of the critical rare earth supply chain, which feeds into Chinese-sourced magnets used in semiconductors and electronics in vehicles. While this has impacted some of our customers, it has had minimal impact on us to date. In addition, higher tariff rates on imports from India have impacted our Hydraulic Cylinders business, and we are evaluating whether to shift production of certain cylinders and components to other locations.
In Furniture, Flooring & Textile Products, our Home Furniture operations in China primarily sell components to Asian customers who export finished furniture to the United States. Our Chinese operations experienced meaningful disruptions early in the second quarter, including shipment delays, order cancellations, and customer shutdowns, which began to normalize later in the quarter with the postponement of tariffs. Additionally, we sell components to U.S. customers and maintain some intercompany supply from our Chinese operations. To help mitigate our tariff exposure, we set up production in another low-cost country and began production late in the third quarter. Within Work Furniture, our teams are pursuing new opportunities with customers who are seeking regionally-supplied finished furniture and components. Finally, our Textile business continues to mitigate most tariff exposure by shifting to alternative sources in countries with lower tariff rates.
We are actively evaluating the potential impact of tariffs and counter-tariffs on our results of operations and financial condition, while also exploring possible opportunities to mitigate their impact. Although our analysis is preliminary and based on limited and changing information, we currently do not expect tariffs, as presently implemented or anticipated, to have a material adverse effect on our consolidated results of operations. However, if tariffs are modified or expanded, additional tariffs are implemented, or our preliminary information is incorrect, our consolidated results of operations could be materially negatively impacted. Moreover, tariffs may decrease demand for our products which may negatively impact our sales and results of operations.
Sale of the Aerospace Products Group
Late in the first quarter 2025, the Aerospace Products Group (within our Specialized Products segment) met the criteria to be classified as held for sale, but did not meet the criteria for discontinued operations because it did not represent a strategic shift that would have a major effect on our financial results.
On August 29, 2025, we divested the Aerospace Products Group for a cash price, net of selling expenses and cash sold, of $276 million and recognized a pretax gain of $87 million, subject to the final adjustments for working capital, which we expect to be completed by early 2026. The proceeds from the sale were primarily used to reduce debt. Our Aerospace Products Group was a supplier of complex, highly-engineered tube and duct assemblies for use primarily in commercial and military aircraft platforms and space launch vehicles. The business was comprised of seven manufacturing facilities located in the United States, the United Kingdom, and France, with approximately 700 employees at the time of the sale.
For the Aerospace Products Group sales and pre-tax earnings, see Note Oto the Consolidated Condensed Financial Statements on page 24.
Goodwill and Long-Lived Asset Impairment Testing
A significant portion of our assets consists of goodwill and other long-lived assets, the carrying value of which would be reduced if we determine that those assets are impaired. At September 30, 2025, goodwill and other intangible assets represented $843 million, or 24% of our total assets. In addition, all other long-lived assets totaled $973 million, or 28% of total assets.
We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur or at least annually in the second quarter. We conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations. In addition, our long-lived assets are reviewed for recoverability at year end and whenever events or changes in circumstances indicate carrying values may not be recoverable.
The annual goodwill impairment testing in the second quarter of 2025 indicated no impairments. As of June 30, 2025, the fair values of all reporting units exceeded their respective carrying amounts by less than 100% in part due to ongoing macroeconomic uncertainties, including the announcement of tariffs. The fair values of our reporting units were reconciled to our consolidated market capitalization, which decreased due to the decline in the stock price compared to the prior year. Fair value exceeded carrying value by less than 50% at June 30, 2025 for the reporting units summarized in the table below, which excludes the Aerospace Products Group which was divested in August 2025 as discussed in Note Oto the Consolidated Condensed Financial Statements on page 24.
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Reporting Unit
(Dollar amounts in millions)
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September 30, 2025 Goodwill Value | Fair value in excess of carrying value as of June 30, 2025 | ||||||||||||
| Bedding | $ | 323 | 20 | % | ||||||||||
| Home Furniture | 68 | 34 | ||||||||||||
| Work Furniture | 54 | 29 | ||||||||||||
In evaluating the potential for impairment of goodwill and other long-lived assets, we make assumptions and estimates regarding future operating performance, business trends, and market and economic performance, including future sales, operating margins, growth rates, and discount rates.
We are continuing to monitor all factors impacting these reporting units. If actual results or the long-term outlook of any of our reporting units materially differ from the assumptions and estimates used in the goodwill and other long-lived assets valuation calculations, along with a sustained decrease in our stock price, we could incur future non-cash impairment charges, which would have a material negative impact on our earnings.
The annual goodwill impairment testing in the second quarter of 2024 indicated that fair value had fallen below carrying value for three reporting units. We had impairments for the nine months ending September 30, 2024 of $587 million, $44 million, and $44 million in our Bedding, Work Furniture, and Hydraulic Cylinders reporting units, respectively. After this impairment, the Hydraulic Cylinders reporting unit did not have any goodwill remaining.
We regularly evaluate long-lived assets for indicators of impairment, such as market conditions, operating performance, strategic decisions, or technical obsolescence. While we believe our current asset valuations are appropriate, future assessments may result in non-cash charges, which would have a material negative impact to our earnings.
2024 Restructuring Plan
In 2024, we committed to a restructuring plan. The 2024 Plan is primarily associated with our Bedding Products segment and includes, to a lesser extent, our Furniture, Flooring & Textile Products segment, an opportunity within the Specialized Products segment, and general and administrative cost structure initiatives. Over the course of the restructuring timeline, we expect to consolidate between 15 and 20 production and distribution facilities in the Bedding Products segment and a small number of production facilities in the Furniture, Flooring & Textile Products segment. The following summarizes the 2024 Plan activity:
| 2024 ACCOMPLISHMENTS | ||
| Bedding Products segment | ||
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•Consolidated 14 production and distribution facilities (ten in U.S. Spring, three in Specialty Foam, one in Adjustable Bed)
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◦Consolidated all domestic innerspring production into our four remaining locations
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◦Exited our Mexican innerspring operation
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•Downsized our Chinese innerspring operation
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•Sold two properties
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| Specialized Products segment | ||
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•Launched restructuring activities in our Hydraulic Cylinders business to optimize manufacturing and improve operating efficiencies
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| Furniture, Flooring & Textile Products segment | ||
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•Closed one facility in Home Furniture
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•Closed one facility in Flooring Products and substantially completed Phase 1 of Flooring Products restructuring
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| Corporate | ||
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•Reduced corporate general and administrative expenses to be realized fully in 2025
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| 2025 PROGRESS | ||
| Bedding Products segment | ||
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•Divested a small U.S. machinery business (two facilities)
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•Consolidated one Specialty Foam production facility
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•Sold two properties
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| Specialized Products segment | ||
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•Continued implementation of manufacturing efficiency improvement activities in Hydraulic Cylinders
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•Right-sized our Hydraulic Cylinders facility in the UK
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| Furniture, Flooring & Textile Products segment | ||
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•Completed Phase 1 and launched Phase 2 of Flooring Products restructuring
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◦Consolidated two Flooring Products production facilities
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•Sold one property
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| ADDITIONAL EXPECTATIONS | ||
| Bedding Products segment | ||
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•Completion of Specialty Foam consolidation
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| Specialized Products segment | ||
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•Completion of restructuring initiatives in Hydraulic Cylinders
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| Furniture, Flooring & Textile Products segment | ||
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•Completion of Phase 2 of Flooring Products restructuring
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| (Dollar amounts in millions-all pretax) |
2024 Actual |
Nine Months Ended September 30, 2025 |
Full Year Estimates for 2025 |
Total Plan
Estimate
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| Plan activity: | ||||||||||||||||||||||||||
| Restructuring and restructuring-related costs: | ||||||||||||||||||||||||||
| Cash | $ | 30 | $ | 8 | $ | 10 | $ | 40 | ||||||||||||||||||
| Non-cash | 18 | 3 | 15 | 35 | ||||||||||||||||||||||
| Total costs | $ | 48 | $ | 11 | $ | 25 | $ | 75 | ||||||||||||||||||
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Pretax net cash from real estate 1
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$ | 20 | $ | 23 | $23 to $40 | $70 to $80 | ||||||||||||||||||||
1 This is only related to the 2024 Plan and does not include the sale of idle real estate. The proceeds from the 2024 sale of real estate resulted in a pretax gain of $17 million. Real estate sold through the nine months ending September 30, 2025 resulted in a pretax gain of $19 million. The remaining real estate sales proceeds are expected to be received either in the fourth quarter of 2025 or during 2026 due to timing of listing properties.
EBIT Benefit:
We expect annualized EBIT benefit of $60-$70 million to be realized after initiatives are fully implemented.
•We realized $22 million for the full year 2024.
•We expect approximately $40 million of incremental benefit to be realized in the full year 2025, of which $36 million was realized in the nine months ended September 30, 2025.
•We expect up to $10 million of incremental benefit in 2026.
Sales Attrition:
We anticipate approximately $60 million of annual sales attrition after initiatives are fully implemented.
•We realized $15 million for the full year 2024.
•We expect approximately $40 million of incremental sales attrition in 2025, of which $33 million was realized in the nine months ended September 30, 2025 (including $3 million from the divestiture of a small U.S. machinery business in our Bedding Products segment).
•We expect approximately $5 million of incremental sales attrition in 2026.
Restructuring Unrelated to the 2024 Plan:
•We have incurred cash charges for divestiture-related expenses associated with the sale of our Aerospace Products Group on August 29, 2025, as discussed in Note Oto the Consolidated Condensed Financial Statements on page 24. Costs were $2 million for the nine months ended September 30, 2025. There were no costs for the nine months ended September 30, 2024.
•In September 2025, we announced the consolidation of our Kentucky Adjustable Bed manufacturing operation into our Mexico operation by the end of this year. We have incurred $2 million ($1 million cash and $1 million non-cash) for the nine months ended September 30, 2025.
Total restructuring and restructuring-related costs, including the 2024 Plan and activities unrelated to the 2024 Plan (discussed above), for the nine months ended September 30, 2025 were $15 million ($11 million cash and $4 million non-cash charges).
2024 Plan costs are expected to be substantially complete by the end of 2025.
Because of certain risks and uncertainties, the estimates of the number of facilities to be consolidated, EBIT benefit, sales attrition, proceeds from the sale of real estate, and the cash and non-cash costs and impairments associated with the 2024 Plan may change as additional information is obtained. Moreover, we may not be able to dispose of the remaining real estate pursuant to the 2024 Plan or obtain the expected proceeds in a timely manner. The 2024 Plan may not achieve its intended outcomes. Any failure to achieve the intended outcomes could materially adversely affect our business, financial condition, results of operations, cash flows, and liquidity.
We continue to evaluate our businesses for further restructuring opportunities in addition to those activities included in the 2024 Plan. The execution of any of these opportunities may result in additional material restructuring costs, restructuring-related costs, or impairments.
Market Demand
Market demand (including product mix) is impacted by several economic factors, with housing turnover and consumer confidence being the most significant. Other important factors include disposable income levels, employment levels, and interest rates. All of these factors influence consumer spending on durable goods, and therefore affect demand for our products and components. Some of these factors also influence spending on infrastructure, facilities, and equipment, which has historically impacted approximately 25%-30% of our sales. The dynamic macroeconomic environment has pressured most of our end markets and negatively affected the demand for our products. We are also concerned that wide-ranging tariffs will drive inflation, weaken consumer confidence, and pressure consumer demand.
In recent years, the U.S. mattress market has become increasingly bifurcated. High volume imports have dominated online sales and pressured opening and mid-tier price points for traditional domestic OEMs. Additionally, some mattress manufacturers and retailers have faced financial stress as overall consumer demand for mattresses has declined. In the near-term, the domestic mattress industry is expected to continue to experience some level of volatility resulting from industry bankruptcies, consolidations, and import pressure.
Volatility related to the growth of Chinese EV manufacturers and multinational OEM market share challenges are expected to continue to impact the automotive industry. Delays in EV programs in Europe and changing expectations for internal combustion engines to EV program transitions in North America, along with consumer affordability issues, add additional uncertainty to OEM demand.
As a result of these uncertainties, we expect 2025 overall demand to be down from 2024 levels.
Trends in Cost of Goods Sold
Our costs can vary significantly as market prices for raw materials (many of which are commodities) fluctuate. We typically have short-term commitments from our suppliers; accordingly, our raw material costs generally move with the market. We have also been impacted by fluctuations in transportation, energy, and labor costs. Our ability to recover higher costs (through selling price increases) is crucial. When we experience significant increases in costs, we typically implement price increases to recover the higher costs. Conversely, when costs decrease significantly, we generally pass those lower costs through to our customers. The timing of our price increases or decreases is important; we typically experience a lag in recovering higher costs, and we also realize a lag as costs decline.
Steel is our principal raw material. At various times in past years, we have experienced significant cost fluctuations in this commodity. In most cases, the major changes (both increases and decreases) were passed through to customers with selling price adjustments. Steel costs modestly declined throughout 2024 as U.S. steel markets continued to face soft demand and increased foreign competition. In early 2025, steel costs increased versus the end of 2024 largely due to higher demand and, in early April 2025, costs continued to increase due to recently implemented tariffs reducing foreign competition. Steel costs in the third quarter of 2025 modestly increased sequentially versus those costs in the second quarter of 2025, but increased significantly versus the third quarter of 2024.
As a producer of steel rod, we are also impacted by changes in metal margins (the difference in the cost of steel scrap and the market price for steel rod). Steel rod and steel scrap costs both declined modestly during 2024, leading to metal margin compression. In the first quarter of 2025, metal margins expanded sequentially but were lower year over year. Second and third quarter average metal margins have continued to grow on both a sequential and year-over-year basis.
We have exposure to the cost of chemicals, including TDI, MDI, and polyol. The cost of these chemicals has fluctuated at times, but we have generally passed the changes through to our customers. Average costs in the first three quarters of 2025 were in line with 2024 average costs.
Our other raw materials include woven and nonwoven fabrics. When we have experienced changes in the costs of these materials, we generally have been able to pass them through to our customers. In order to mitigate exposure under recently announced tariffs, our Textile business has proactively been sourcing the majority of these materials from outside of China. We are well positioned to serve customers that may face supply disruption from their existing vendors.
When we raise our prices to recover higher raw material costs, this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components. We must continue providing product options to our customers that enable them to improve the functionality of their products and manage their costs, while providing higher profits for our operations.
Competition
Many of our markets are highly competitive, with the number of competitors varying by product line. In general, our competitors tend to be smaller, private companies. Many of our competitors, both domestic and foreign, compete primarily on the basis of price. Our success has stemmed from the ability to remain price competitive, while delivering innovation, better product quality, and customer service.
We continue to face pressure from foreign competitors, as some of our customers source a portion of their components and finished products offshore. In addition to lower labor rates, foreign competitors benefit (at times) from lower raw material costs. They may also benefit from currency factors and more lenient regulatory climates. We typically compete in market segments that value product differentiation. When we do compete on cost, we typically remain price competitive in most of our business units, even versus many foreign manufacturers, as a result of our efficient operations, automation, vertical integration in steel rod and wire, logistics and distribution efficiencies, and large-scale purchasing of raw materials and commodities. We have also reacted to foreign competition in certain cases by developing new proprietary products that help our customers reduce total costs and by shifting production offshore to take advantage of lower input costs.
We manufacture innersprings for mattresses, finished mattresses, and steel rod wire (used internally and sold to third parties). Our operations have been impacted by several trade proceedings involving unfair pricing and foreign subsidies.
Anti-Dumping and Countervailing Orders on Innerspring Imports. In 2025, the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) determined that the revocation of certain mattress innerspring orders would likely lead to the continuation or reoccurrence of material injury and dumping of uncovered innersprings from China, Vietnam, and South Africa. Consequently, the antidumping duty orders on innerspring imports from these countries, with duties ranging from 116% to 234%, were extended for an additional five years through April 2030.
Anti-Dumping and Countervailing Orders on Mattress Imports. In 2025, the DOC and the ITC completed sunset reviews of existing antidumping duty orders on finished mattresses from China. The DOC and ITC determined that revocation of the 2019 antidumping duty order on mattresses from China would likely lead to continued or recurring material injury and dumping. As a result, the DOC extended the order, and duties of up to 1,732% on mattresses from China will remain in effect through May 2030.
In March 2020, the Company, along with other companies, filed petitions with the DOC and ITC alleging that manufacturers of mattresses in seven countries (Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam) were selling mattresses in the United States at less than fair value, and that manufacturers in China were receiving unfair subsidies. These petitions resulted in the imposition of antidumping and countervailing duty orders, which are scheduled to remain in effect through May 2026. A sunset review will be conducted at that time to determine whether to extend the orders for an additional five years. Following appeals
filed with the U.S. Court of International Trade (CIT), the CIT upheld the ITC's unanimous injury determination. However, the DOC revoked the antidumping duty order on mattresses from Indonesia. In response, the Company filed an appeal with the U.S. Court of Appeals for the Federal Circuit in April 2025, challenging that decision.
In July 2023, the Company, along with other companies, filed petitions with the DOC and ITC alleging that manufacturers of mattresses in twelve additional countries (Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan) were selling their mattresses in the United States at less than fair value, and that manufacturers in Indonesia were receiving unfair subsidies. Final dumping determinations for eight countries were issued in May 2024, followed by the ITC's final injury determination in June 2024. These orders are scheduled for sunset review in June 2029. For the remaining countries, the DOC issued final determinations in July 2024, and the ITC issued its final injury determination in September 2024. Although the case is resolved with respect to duties and injury findings, an importer has filed an appeal challenging the ITC's critical circumstances determination, which imposed retroactive duties. That appeal remains pending. A sunset review of these orders is scheduled for September 2029.
Anti-Dumping and Countervailing Orders on Steel Wire Rod Imports. Sunset reviews by the ITC are currently being conducted on imports of steel rod wire from Brazil, Indonesia, Mexico, Moldova and Trinidad & Tobago. The current anti-dumping and countervailing duty orders range from 3% to 369%. If the ITC and DOC rule favorably, the duties will be extended another five years. Also, through August 2030, imports of steel wire rod from China are covered by antidumping and countervailing duties ranging from 106% to 193%. Additionally, through August 2028, antidumping and countervailing duty orders are in place on steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates, and the United Kingdom ranging from less than 1% to 757%.
See Item 1 Legal Proceedingson page 50 for more information.
If any of the foregoing existing or future antidumping and countervailing duties are overturned on appeal or not extended beyond their current terms and dumping and/or subsidization recurs, or manufacturers in the subject countries continue to circumvent the existing duties through transshipment in other jurisdictions or otherwise, our market share, sales, profit margins, and earnings have been, and could continue to be, adversely affected.
Strategic Initiatives
In addition to the sale of the Aerospace Products Group, we completed the sale of a small Work Furniture operation in the second quarter. We continuously evaluate the market attractiveness and competitive position of all our businesses and assess opportunities for profitable, long-term growth.
In addition, within our Bedding Products segment, we have begun exploring alternative sales channels, including private-label initiatives, to expand our market position, increase profitability, and drive growth.
Insurance Gain
In the third quarter of 2025, a fire damaged and destroyed equipment and machinery that had been stored in a leased location for the Bedding Products segment. Insurance proceeds of $25 million were received during the third quarter as an advance payment on the claim, resulting in a net $13 million gain. The claim is still being assessed and is subject to review and approval from our insurance carriers that may materially change the eventual outcome of the claim, including the timing and amount of additional proceeds received. However, we currently expect to receive additional cash proceeds and record an additional net gain of $10 million to $30 million in multiple payments over the next 12 months.
Termination of Pension Plan
In September 2024, the Company approved the merger of two of our domestic defined benefit pension plans and the termination of the resulting merged plan effective December 31, 2024. Participants in the plan have stopped earning benefits. All regulatory requirements were satisfied during the second quarter of 2025, and the distribution of plan assets and settlement of benefit obligations are expected to occur during the fourth quarter of 2025. Upon completion, we expect to recognize an estimated pretax pension settlement charge (a non-cash charge for the recognition of pretax actuarial losses in Accumulated Other Comprehensive Loss) of approximately $20 million to $25 million and an estimated cash contribution of approximately $10 million to $15 million. However, these estimates are subject to change and will depend on various factors.
RESULTS OF OPERATIONS
Discussion of Consolidated Results
Third Quarter:
Trade sales were $1,036 million in the current quarter, a 6% decrease versus the third quarter 2024. Organic sales decreased 4%. Volume was down 6%, primarily from continued soft demand in residential end markets, Automotive and Hydraulic Cylinders. These declines were partially offset by growth in Textiles and Work Furniture. Raw material-related selling price increases and currency benefit increased sales 2%. Divestitures of the Aerospace Products Group and small operations in Bedding and Work Furniture reduced sales 2%.
EBIT increased $93 million to $171 million. The increase includes an $87 million gain from the Aerospace Products Group divestiture, a gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, restructuring benefit, reduced restructuring charges, and metal margin expansion in trade rod, partially offset by lower real estate gains and lower volume.
EPS increased to $.91 in the current quarter, versus $.33 in the third quarter of 2024. The increase primarily reflects higher EBIT as discussed above. EPS was also impacted by net interest benefit and income tax expense impacts discussed below.
Nine Months:
Trade sales were $3,117 million in the first nine months of 2025, a 6% decrease versus the same period last year. Organic sales decreased 6%. Volume was down 6%, primarily from continued weak demand in residential end markets, demand softness in Automotive and Hydraulic Cylinders, restructuring-related sales attrition, and the expected exit of a customer in Specialty Foam. These declines were partially offset by higher trade rod and wire sales and growth in Textiles and Work Furniture. Raw material-related selling price decreases and currency impact increased sales less than 1%. Divestitures of the Aerospace Products Group and small operations in Bedding and Work Furniture reduced sales less than 1%.
EBIT increased $798 million to $324 million, primarily from the non-recurrence of a $675 million non-cash goodwill impairment charge, an $87 million gain from the Aerospace Products Group divestiture, restructuring benefit, metal margin expansion, lower restructuring costs, a gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, disciplined cost management, and the non-recurrence of CEO transition compensation costs. These increases were partially offset by lower volume, lower real estate gains, and the non-recurrence of a gain on net insurance proceeds from tornado damage.
EPS increased to $1.51 for the first nine months of 2025, versus ($3.83) in the same period of 2024. The increase primarily reflects higher EBIT as discussed above. EPS was also impacted by net interest benefit and income tax expense impacts discussed below.
Net Interest Expense and Income Taxes
2025 net interest expense was $7 million and $3 million lower than the nine and three months ended September 30, 2024 primarily due to lower average net debt levels in 2025 versus 2024.
Our worldwide effective tax rate was 18% for the third quarter of 2025, compared to 22% for the same quarter last year. While the U.S. statutory federal income tax rate was 21% in both years, impacts associated
with our foreign operations including foreign withholding taxes, foreign rate differentials, and Global Intangible Low-Taxed Income, added 4% to our tax rate in both years. Our rate in 2025 has been favorably impacted by 11% due to beneficial tax impacts from the Aerospace Products Group divestiture (see Note Oto the Consolidated Condensed Financial Statements on page 24), which was partially offset by an increase of 2% related to the enactment of Public Law 119-21 in the quarter (discussed below) and by another 2% related to other less significant items. Our rate in 2024 was reduced by 3% due to a combination of changes in estimates related to tax filings and from other less significant items.
For the full year, we are anticipating an effective tax rate of approximately 22%, including the impact of discrete tax items that we expect to occur from quarter to quarter. We utilize prudent tax planning strategies for opportunities to optimize our tax rate, but other factors, such as our overall profitability, the mix and level of earnings among jurisdictions, the type of income earned, business acquisitions and dispositions, the impact of tax audits, and the effect of tax law changes can also influence our rate.
On July 4, 2025, President Trump signed Public Law 119-21, also known as the "One Big Beautiful Bill," which includes changes to the U.S. corporate income tax system, such as modifications to the limitation on interest deductibility, the reinstatement of 100% bonus depreciation, and the allowable immediate expensing of qualifying research and experimentation expenses, which resulted in a 2% increase in our effective tax rate for the third quarter of 2025. In addition, other U.S. corporate tax changes embodied in the legislation, including certain modifications to the international tax system, will be effective for the Company in 2026, but we do not expect these to have a material impact on our financial statements.
Discussion of Segment Results
Third Quarter:
A description of the products included in each segment, along with segment financial data, appears in Note Cto the Consolidated Condensed Financial Statements on page 10. A summary of segment results is shown in the following tables. We use EBIT to assess operational performance, and it is useful to investors as it aids in understanding of underlying operational profitability.
|
Trade Sales
(Dollar amounts in millions)
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Change in Trade Sales |
% Change in Organic Sales 1
|
|||||||||||||||||||||||||
| $ | % | ||||||||||||||||||||||||||||
| Bedding Products | $ | 402.5 | $ | 445.5 | $ | (43.0) | (9.7 | %) | (9.1 | %) | |||||||||||||||||||
| Specialized Products | 277.5 | 299.9 | (22.4) | (7.5) | (2.0) | ||||||||||||||||||||||||
| Furniture, Flooring & Textile Products | 356.4 | 356.3 | .1 | - | (.5) | ||||||||||||||||||||||||
| Total trade sales | $ | 1,036.4 | $ | 1,101.7 | $ | (65.3) | (5.9 | %) | 4.1 | % | |||||||||||||||||||
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Change in EBIT | EBIT Margins | ||||||||||||||||||||||||||||||||
|
EBIT
(Dollar amounts in millions)
|
$ | % | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||
| Bedding Products | $ | 36.4 | $ | 25.5 | $ | 10.9 | 42.7 | % | 9.0 | % | 5.7 | % | |||||||||||||||||||||||
| Specialized Products | 112.9 | 24.8 | 88.1 | 355.2 | 40.7 | 8.3 | |||||||||||||||||||||||||||||
| Furniture, Flooring & Textile Products | 22.0 | 27.4 | (5.4) | (19.7) | 6.2 | 7.7 | |||||||||||||||||||||||||||||
| Intersegment eliminations and other | (.2) | - | (.2) | ||||||||||||||||||||||||||||||||
|
Total EBIT 2
|
$ | 171.1 | $ | 77.7 | $ | 93.4 | 120.2 | % | 16.5 | % | 7.1 | % | |||||||||||||||||||||||
|
Depreciation and Amortization (Dollar amounts in millions) |
Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |||||||||
| Bedding Products | $ | 13.2 | $ | 14.8 | |||||||
| Specialized Products | 7.9 | 11.0 | |||||||||
| Furniture, Flooring & Textile Products | 4.4 | 5.4 | |||||||||
|
Unallocated 3
|
3.9 | 5.2 | |||||||||
| Total depreciation and amortization | $ | 29.4 | $ | 36.4 | |||||||
1 This is a change in trade sales not attributable to acquisitions or divestitures in the last 12 months. Refer to the respective segment discussion below for a reconciliation of the change in total segment trade sales to organic sales.
2 Total three months ended September 30, 2025 EBIT of $171.1 million less interest expense net of interest income of $16.7 million and income tax of $27.2 million equals three months ended September 30, 2025 Net earnings (loss) of $127.2 million. Total three months ended September 30, 2024 EBIT of $77.7 million less interest expense net of interest income of $20.0 million and income tax of $12.8 million equals three months ended September 30, 2024 Net earnings (loss) of $44.9 million.
3 Unallocated consists primarily of depreciation and amortization of non-operating assets.
Bedding Products
Trade sales decreased $43 million, or 10%. Organic sales decreased 9%. Volume decreased 13%, primarily due to customer weakness and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower trade rod sales, and restructuring-related sales attrition. Raw material-related selling price increases and currency benefit increased sales 4%. Divestiture of a small U.S. machinery business that was part of the 2024 Plan reduced sales 1%.
EBIT increased $11 million, primarily from $13 million gain on net insurance proceeds related to a storage facility fire, metal margin expansion in trade rod, and reduced restructuring costs, partially offset by reduced volume and a lower gain on the sale of real estate.
Specialized Products
Trade sales decreased $22 million, or 7%. Organic sales decreased 2% and volume decreased 4%, with declines in Automotive and Hydraulic Cylinders. Raw material-related selling price increases and currency benefit added 2% to sales. The divestiture of the Aerospace Products Group reduced sales 5%.
EBIT increased $88 million, primarily from an $87 million gain from the Aerospace Products Group divestiture, reduced restructuring charges, and restructuring benefit, partially offset by lower volume and earnings associated with the divested Aerospace Products Group.
Furniture, Flooring & Textile Products
Trade sales and organic sales remained flat. Volume increased 1% from growth in Textiles and Work Furniture, partially offset by declines in Home Furniture and Flooring. Raw material-related selling price decreases, net of currency benefit, reduced sales 1%. Divestiture of a small Work Furniture operation reduced sales less than 1%.
EBIT decreased $5 million, primarily from pricing adjustments, particularly in Flooring and Textiles, and other smaller items.
Nine Months:
A description of the products included in each segment, along with segment financial data, appears in Note Cto the Consolidated Condensed Financial Statements on page 10. A summary of segment results is shown in the following tables. We use EBIT to assess operational performance, and it is useful to investors as it aids in understanding of underlying operational profitability.
|
Trade Sales
(Dollar amounts in millions)
|
Nine Months Ended September 30, 2025 |
Nine Months Ended September 30, 2024 |
Change in Sales |
% Change in Organic Sales 1
|
|||||||||||||||||||||||||
| $ | % | ||||||||||||||||||||||||||||
| Bedding Products | $ | 1,184.6 | $ | 1,331.5 | $ | (146.9) | (11.0 | %) | (10.4 | %) | |||||||||||||||||||
| Specialized Products | 881.7 | 935.4 | (53.7) | (5.7) | (4.0) | ||||||||||||||||||||||||
| Furniture, Flooring & Textile Products | 1,050.2 | 1,060.3 | (10.1) | (1.0) | (.8) | ||||||||||||||||||||||||
| Total trade sales | $ | 3,116.5 | $ | 3,327.2 | $ | (210.7) | (6.3 | %) | (5.6 | %) | |||||||||||||||||||
|
Nine Months Ended September 30, 2025 |
Nine Months Ended September 30, 2024 |
Change in EBIT | EBIT Margins | ||||||||||||||||||||||||||||||||
|
EBIT
(Dollar amounts in millions)
|
$ | % |
Nine Months Ended September 30, 2025 |
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||||||||||||
| Bedding Products | $ | 73.2 | $ | (550.6) | $ | 623.8 | 113.3 | % | 6.2 | % | (41.4 | %) | |||||||||||||||||||||||
| Specialized Products | 180.0 | 39.0 | 141.0 | 361.5 | 20.4 | 4.2 | |||||||||||||||||||||||||||||
| Furniture, Flooring & Textile Products | 71.2 | 41.6 | 29.6 | 71.2 | 6.8 | 3.9 | |||||||||||||||||||||||||||||
| Intersegment eliminations and other | - | (3.6) | 3.6 | ||||||||||||||||||||||||||||||||
|
Total EBIT 2
|
$ | 324.4 | $ | (473.6) | $ | 798.0 | 168.5 | % | 10.4 | % | (14.2 | %) | |||||||||||||||||||||||
|
Depreciation and Amortization (Dollar amounts in millions) |
Nine Months Ended September 30, 2025 |
Nine Months Ended September 30, 2024 |
|||||||||
| Bedding Products | $ | 39.5 | $ | 43.7 | |||||||
| Specialized Products | 26.5 | 31.4 | |||||||||
| Furniture, Flooring & Textile Products | 13.9 | 16.2 | |||||||||
|
Unallocated 3
|
10.8 | 10.6 | |||||||||
| Total depreciation and amortization | $ | 90.7 | $ | 101.9 | |||||||
1This is a change in trade sales not attributable to acquisitions or divestitures in the last 12 months. Refer to the respective segment discussion below for a reconciliation of the change in total segment trade sales to organic sales.
2Total nine months ended September 30, 2025 EBIT of $324.4 million less interest expense net of interest income of $53.2 million and income tax of $60.9 million equals nine months ended September 30, 2025 Net earnings (loss) of $210.3 million. Total nine months ended September 30, 2024 EBIT of ($473.6) million less interest expense net of interest income of $60.6 million and income tax of ($8.6) million equals nine months ended September 30, 2024 Net earnings (loss) of ($525.6) million.
3Unallocated consists primarily of depreciation and amortization of non-operating assets.
Bedding Products
Trade sales decreased $147 million, or 11%. Organic sales decreased 10%. Volume decreased 12%, due to demand softness in U.S. and European bedding markets, retailer merchandising changes in Adjustable Bed and Specialty Foam, the expected loss of a customer in Specialty Foam, and restructuring-related sales attrition. Raw material-related price increases and currency benefit added 2% to sales. The divestiture of a small U.S. machinery business that was part of the 2024 Plan reduced sales 1%.
EBIT increased $624 million, primarily from the non-recurrence of a $587 million non-cash goodwill impairment charge, metal margin expansion, lower restructuring charges, and gain on net insurance proceeds related to a storage facility fire. These increases were partially offset by lower volume.
Specialized Products
Trade sales decreased $54 million, or 6%. Organic sales decreased 4%. Volume decreased 5% due to declines in Automotive and Hydraulic Cylinders, partially offset by growth in Aerospace Products Group before the divestiture. Raw material-related price increases, net of currency impact, added 1% to sales. The divestiture of Aerospace Products Group on August 29, 2025 reduced sales 2%.
EBIT increased $141 million, primarily from the gain on the sale of Aerospace Products Group of $87 million, the non-recurrence of a $44 million non-cash goodwill impairment charge, disciplined cost management, restructuring benefit, lower depreciation and amortization due to Aerospace Products Group meeting held-for-sale criteria, and gain from the sale of real estate. These increases were partially offset by lower volume, the non-recurrence of benefit from a reduction to a contingent purchase price liability associated with a prior year acquisition, and lower earnings associated with the divested Aerospace Products Group.
Furniture, Flooring & Textile Products
Trade sales decreased $10 million, or 1%. Organic sales decreased 1%. Volume increased 1% with growth in Textiles and Work Furniture partially offset by declines in Home Furniture and Flooring. Raw material-related selling price decreases, net of currency benefit, reduced sales 2%. Divestiture of a small Work Furniture operation reduced sales less than 1%.
EBIT increased $30 million, primarily from the non-recurrence of a $44 million non-cash goodwill impairment charge, gain from the sale of real estate, restructuring benefit, and lower restructuring costs. These increases were partially offset by pricing adjustments, the non-recurrence of a gain on net insurance proceeds from tornado damage, and other smaller items.
LIQUIDITY AND CAPITALIZATION
Liquidity
Sources of Cash
Cash on Hand
At September 30, 2025, we had cash and cash equivalents of $461 million primarily invested in interest-bearing bank accounts and in bank time deposits with original maturities of three months or less. Substantially all of these funds are held in the international accounts of our foreign operations.
If we were to bring back immediately all our foreign cash to the United States in the form of dividends, we would pay foreign withholding taxes of approximately $22 million. Due to capital requirements in various jurisdictions, approximately $54 million of this cash was inaccessible for repatriation at September 30, 2025. Inaccessible cash balances can fluctuate from quarter to quarter based on the amount of foreign distributable profits available and the variability of our foreign cash balances.
Cash from Operations
The primary source of funds for our short-term cash requirements is our cash generated from operating activities. Earnings and changes in working capital levels are the two factors that generally have the greatest impact on our cash from operations. Cash from operations for the nine months ended September 30, 2025 was $217 million, up $33 million from the same period last year, primarily driven by working capital improvements.
We closely monitor our working capital levels and ended the quarter with adjusted working capital at 12.1% of annualized trade sales. The table below explains this non-GAAP calculation. We eliminate cash, current debt maturities, and the current portion of operating lease liabilities from working capital to monitor our operating efficiency and performance related to trade receivables, inventories, and accounts payable. We believe this provides a more useful measurement to investors since cash and current maturities can fluctuate significantly from period to period. As discussed in Cash on Handabove, substantially all of these cash and cash equivalents are held by international operations and may not be immediately available to reduce debt on a dollar-for-dollar basis.
| (Dollar amounts in millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Current assets | $ | 1,708.8 | $ | 1,690.5 | |||||||
| Current liabilities | 794.1 | 846.4 | |||||||||
| Working capital | 914.7 | 844.1 | |||||||||
| Less: Cash and cash equivalents included in current assets | 460.7 | 350.2 | |||||||||
| Add: Current debt maturities and current portion of operating lease liabilities included in current liabilities | 47.7 | 54.7 | |||||||||
| Adjusted working capital | $ | 501.7 | $ | 548.6 | |||||||
|
Annualized trade sales 1
|
$ | 4,145.6 | $ | 4,225.6 | |||||||
| Working capital as a percent of annualized trade sales | 22.1 | % | 20.0 | % | |||||||
| Adjusted working capital as a percent of annualized trade sales | 12.1 | % | 13.0 | % | |||||||
1 Annualized trade sales is the respective quarter's trade sales multiplied by 4 (third quarter 2025 and fourth quarter 2024 trade sales were $1,036.4 million and $1,056.4 million, respectively). We believe measuring our working capital against this sales metric is more useful, since efficient management of working capital includes adjusting those net asset levels to reflect current business volume.
Primary Components of our Working Capital
| Amount (in millions) | Days | ||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | December 31, 2024 | September 30, 2024 | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||
| Trade Receivables | $ | 536.1 | $ | 503.0 | $ | 583.9 |
DSO 1
|
48 | 44 | 49 | |||||||||||||||||||||||||||||||
| Inventories | $ | 634.0 | $ | 722.6 | $ | 754.4 |
DIO 2
|
69 | 77 | 77 | |||||||||||||||||||||||||||||||
| Accounts Payable | $ | 485.3 | $ | 497.7 | $ | 516.0 |
DPO 3
|
53 | 52 | 53 | |||||||||||||||||||||||||||||||
1Days sales outstanding
a. Quarterly: end of period trade receivables ÷ (quarterly net trade sales ÷ number of days in the period)
b. Annually: ((beginning of year trade receivables + end of period trade receivables) ÷ 2) ÷ (net trade sales ÷ number of days in the period)
2Days inventory on hand
a. Quarterly: end of period inventory ÷ (quarterly cost of goods sold ÷ number of days in the period)
b. Annually: ((beginning of year inventory + end of period inventory) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period)
3Days payables outstanding
a. Quarterly: end of period accounts payable ÷ (quarterly cost of goods sold ÷ number of days in the period)
b. Annually: ((beginning of year accounts payable + end of period accounts payable) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period)
We continue to monitor all elements of working capital in order to optimize cash flow.
On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note Oto the Consolidated Condensed Financial Statements on page 24. Due to the divestiture, trade receivables decreased $23 million, inventories decreased $68 million, and accounts payable decreased $15 million. As a result, our DSO and DPO decreased by approximately two days and DIO decreased by seven days due to the long lead times typical in the aerospace industry.
Trade Receivables-Our trade receivables and DSO increased at September 30, 2025 compared to December 31, 2024 primarily due to volume increases in our Textile business, timing of collections, and currency. These were partially offset by the Aerospace Products Group divestiture. Trade receivables and DSO decreased compared to September 30, 2024 due to the Aerospace Products Group divestiture, restructuring plan impacts, and demand softness.
We recorded bad debt expense of $5 million and $9 million during the first nine months of 2025 and 2024, respectively. Weak demand and changing market dynamics have created disruption and financial instability for some of our customers, particularly in the Bedding Products segment. Recently, we have seen slower payment trends among certain customers, and we are actively managing and maintaining close oversight of these receivables. We monitor our receivables closely and make reserve decisions based upon individual customer risk reviews, aging of customer accounts, historical loss experience, and general macroeconomic and industry trends that could impact the expected collectability of all customers or pools of customers with similar risk.
Inventories-Our inventories and DIO decreased at September 30, 2025 compared to both December 31, 2024 and September 30, 2024 due to the Aerospace Products Group divestiture and inventory reductions to align with demand softness, partially offset by currency.
We continuously monitor our slower-moving and potentially obsolete inventory through reports on inventory quantities compared to usage within the previous 12 months. We also monitor potential inventory implications for customers experiencing financial challenges which may impact their ability to take delivery of previously ordered inventory. When potential inventory obsolescence is indicated by these controls, we will take charges for write-downs to maintain an adequate level of reserves. Inventory write-downs for the first nine months of 2025 were $11 million versus $25 million in the first nine months of 2024.
Accounts Payable- Our accounts payable decreased compared to both December 31, 2024 and September 30, 2024 primarily due to the Aerospace Products Group divestiture, demand softness, and timing of payments, partially offset by currency impacts. DPO was relatively flat compared to both December 31, 2024 and September 30, 2024. We continue to look for ways to establish and maintain favorable payment terms through purchasing synergies and also utilize third-party services that offer flexibility to our vendors, which, in turn, helps us manage our DPO as discussed below.
Accounts Receivable and Accounts Payable Programs- We participate in trade receivables sales programs in combination with certain customers and third-party banking institutions. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. We had approximately $40 and $45 million of trade receivables that were sold and removed from our balance sheets at September 30, 2025 and December 31, 2024, respectively. These sales reduced our quarterly DSO by roughly three days at September 30, 2025 and four days at December 31, 2024. Activities in these programs decreased year-to-date operating cash flow by approximately $5 million for the nine months ended September 30, 2025.
For accounts payable, we have historically looked for ways to optimize payment terms through utilizing third-party programs that allow our suppliers to be paid earlier at a discount. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. While we continue to make payments based on our customary terms, a supplier can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. As such, there is no direct impact on our DPO, accounts payable, operating cash flows, or liquidity. The accounts payable settled through the third-party
programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $105 million and $120 million at September 30, 2025 and December 31, 2024, respectively.
The above items encompass multiple individual programs that are utilized as tools in our cash flow management, and we offer them as options to facilitate customer and vendor operating cycles. Because many of these programs operate independently, and a cessation of all these programs at the same time is not reasonably likely, we do not expect changes in these programs to have a material impact on our operating cash flows or liquidity.
Mexico Value-Added Taxes (VAT) Recoverable- We are subject to VAT in various jurisdictions. Where we are entitled to a refund of the VAT we have paid, we submit claims to the government authorities and establish receivables for these claims. As of December 31, 2024, we had outstanding Mexico VAT receivables of $36 million, primarily due to delays in processing refunds by the local tax authorities. Refunds received in the first nine months of 2025 reduced this receivable to $2 million at September 30, 2025. To mitigate the impact of future VAT outflows in Mexico, we obtained a temporary tax exemption for one of our primary Mexico entities, thereby improving cash flow and reducing the need to submit refund claims.
Commercial Paper Program
Another source of funds for our short-term cash requirements is our $1.0 billion commercial paper program. We had $513 million available for borrowing as of September 30, 2025. In conjunction with the credit facility amendment in late July as discussed below, the authorized amount of commercial paper that can be issued was reduced from $1.2 billion to $1.0 billion. For more information regarding the borrowing capacity under our commercial paper program, see Commercial Paper Programon page 43.
Credit Facility
Our credit facility is a multi-currency facility providing us with the ability, from time to time, to borrow, repay, and re-borrow up to $1.0 billion, subject to financial covenants, until the maturity date, at which time our ability to borrow under the facility will terminate. The credit facility serves as a back-up for our commercial paper program, is subject to covenants restricting our borrowing capacity, and matures in July 2030. Currently, there are no borrowings under the credit facility. For more information on our credit facility, see Credit Facilityon page 44.
Capital Markets
Our cost of borrowing and ability to access the capital markets are affected by market conditions and the credit ratings assigned to our debt. While we believe that we have the ability to raise debt in the capital markets which acts as a source of funding of long-term cash requirements, a downgrade of our credit rating could limit our access to the capital markets and result in increased borrowing costs. Currently, we have $1.5 billion of total debt outstanding in equal tranches maturing in 2027, 2029, and 2051. For more information, please see Long-Term Debt (including Current Maturities)on page 44.
Uses of Cash
We reduced debt using a combination of net proceeds from the Aerospace Products Group divestiture and cash generated by operations. In the near term, we anticipate applying most of our cash flow from operations to reduce net debt, while also considering other uses such as small strategic acquisitions and share repurchases. In the longer term, we expect to use cash to grow our business, both organically and through strategic acquisitions, while also returning cash to shareholders through a combination of dividends and share buybacks.
Capital Expenditures
We are making investments to support expansion in businesses and product lines where sales are profitably growing, for efficiency improvement and maintenance, and for system enhancements. We also expect to make future investments to replace equipment destroyed in the July 2025 Bedding Products storage facility fire.
We expect lower capital expenditures of $60-$70 million in 2025. We have spent $38 million as of September 30, 2025. For the periods covered, our employee incentive plans emphasized returns on capital, including capital expenditures and working capital. This emphasis focuses our management on asset utilization and helps ensure that we are investing additional capital dollars where attractive return potential exists.
Acquisitions
We seek strategic acquisitions that complement our current products and capabilities.
We did not acquire any businesses in the first nine months of 2025. For the full year 2025, we currently expect acquisition activity to be minimal.
Dividends
In the third quarter of 2025, we declared a quarterly dividend of $.05 per share, consistent with the quarterly dividend declared in the third quarter of 2024. We paid $7 million in each of the third quarters of 2025 and 2024 for the quarterly dividend declared in the second quarter of each year.
Stock Repurchases
During the third quarter of 2025, there were no material share repurchases and we issued .1 million shares through employee benefit plans. For the first nine months of 2025, we repurchased .2 million shares of our stock (at an average price of $9.80) and issued 1.3 million shares through employee benefit plans.
We have been authorized by the Board to repurchase up to 10 million shares each calendar year, but we have established no specific repurchase commitment or timetable. The amount of future repurchases is dependent upon the price of the stock, the amount of discretionary cash flow generated by the Company, alternative uses for the cash (including organic growth opportunities, stock repurchases and acquisitions) and other factors. We expect stock repurchases to be minimal for the remainder of 2025.
Short-Term and Long-Term Cash Requirements
In addition to the expected uses of cash discussed above, we have various material short-term (12 months or less) and long-term (more than 12 months) cash requirements. There have been no material changes in the third quarter of 2025 to our short-term or long-term cash requirements as previously reported in our cash requirements table on page 55 of our Form 10-Kfiled February 26, 2025 other than the repayment of $368 million of commercial paper. We expect to have adequate liquidity to meet our short-term and long-term cash requirements.
Capitalization
Capitalization Table
This table presents key debt and capitalization statistics for the periods presented:
| (Dollar amounts in millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Total debt excluding credit facility/commercial paper | $ | 1,497.2 | $ | 1,496.1 | |||||||
|
Less: Current maturities of long-term debt and short-term debt
|
1.4 | 1.3 | |||||||||
| Scheduled maturities of long-term debt | 1,495.8 | 1,494.8 | |||||||||
|
Average interest rates 1
|
3.8 | % | 3.8 | % | |||||||
|
Average maturities in years 1
|
10.6 | 11.4 | |||||||||
|
Credit facility/commercial paper 2
|
- | 368.0 | |||||||||
| Weighted average interest rate on period-end balance outstanding | - | % | 5.1 | % | |||||||
|
Average interest rate during the period (2025-three months; 2024-twelve months)
|
4.9 | % | 5.6 | % | |||||||
| Total long-term debt | 1,495.8 | 1,862.8 | |||||||||
| Deferred income taxes and other liabilities | 262.7 | 262.2 | |||||||||
|
Total equity
|
972.4 | 690.2 | |||||||||
| Total capitalization | $ | 2,730.9 | $ | 2,815.2 | |||||||
|
Unused committed credit: 2
|
|||||||||||
| Long-term | $ | 1,000.0 | $ | 832.0 | |||||||
| Short-term | - | - | |||||||||
| Total unused committed credit | $ | 1,000.0 | $ | 832.0 | |||||||
| Cash and cash equivalents | $ | 460.7 | $ | 350.2 | |||||||
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1
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These rates include current maturities, but exclude commercial paper to reflect the averages of outstanding debt with scheduled maturities. | ||||
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2
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The unused committed credit amount is based on our revolving credit facility and commercial paper program which, at year-end 2024 and at the end of the third quarter of 2025, had a total authorized program amount of $1.2 billion and $1.0 billion, respectively. However, our borrowing capacity is limited by covenants to our credit facility. Reference is made to the discussion under Commercial Paper Programbelow and Credit Facilityon page 44 for more details about our borrowing capacity at September 30, 2025.
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Commercial Paper Program
Amounts outstanding related to our commercial paper program were:
| (Amounts in millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Total authorized program | $ | 1,000.0 | $ | 1,200.0 | |||||||
| Commercial paper outstanding (classified as long-term debt) | - | 368.0 | |||||||||
| Letters of credit issued under the credit agreement | - | - | |||||||||
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Amount limited by restrictive covenants of credit facility 1
|
486.7 | 388.8 | |||||||||
| Total program available | $ | 513.3 | $ | 443.2 | |||||||
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1
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Our borrowing capacity is limited by covenants to our credit facility. Reference is made to the discussion under Credit Facilityon page 44 for more details about our borrowing capacity at September 30, 2025.
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The average and maximum amounts of commercial paper outstanding during the third quarter of 2025 were $235 million and $338 million, respectively. At quarter end, we had no letters of credit outstanding under the credit facility, but we had issued $92 million of stand-by letters of credit under other bank agreements to take advantage of better pricing.
Over the long term, and subject to our credit ratings, market conditions, capital needs, and alternative capital market opportunities, we generally expect to maintain the indebtedness under the commercial paper program by continuously repaying and reissuing the commercial paper notes. We view the notes as a source of long-term funds and have classified the borrowings under the commercial paper program as long-term borrowings on our balance sheet. We have the intent to roll over such obligations on a long-term basis and have the ability to refinance these borrowings on a long-term basis as evidenced by our amended revolving credit facility maturing in July 2030 discussed below in Credit Facility.
The Company has multiple credit rating agencies that provide ratings of our short- and long-term debt. One of our credit ratings agencies recently lowered our ratings. As such, we are currently evaluating the degree to which we have access to the commercial paper market. Our current ratings (and if ratings are lowered further) could adversely affect our borrowing capacity and our financial arrangements, including access to the commercial paper market, our lending agreements, and supply chain financing arrangements. If we are unable to meet our short-term borrowing needs in the commercial paper market, we may rely more heavily on bank debt to fund short-term working capital needs at higher interest costs.
Credit Facility
We amended our Credit Agreement in July 2025. Our credit facility is a multi-currency facility maturing in July 2030, providing us with the ability, from time to time, to borrow, repay, and re-borrow up to $1.0 billion, subject to certain restrictive covenants and customary conditions. Prior to the amendment, the maturity date was September 2026 and our authorized amount was $1.2 billion. The credit facility serves as back-up for our commercial paper borrowing. However, if we are unable to access the commercial paper market, we may borrow directly under the Credit Agreement. Capitalized terms used in this section but not defined herein have the meanings set forth in the Credit Agreement.
Our credit facility contains restrictive covenants, which include: (a) a Leverage Ratio requiring us to maintain, as of the last day of each fiscal quarter, (i) Consolidated Funded Indebtedness minus the lesser of: (A) Unrestricted Cash, or (B) $750 million to (ii) Consolidated EBITDA for the four consecutive trailing quarters most recently ended on or prior to such date, such ratio not being greater than 3.50 to 1.00; provided however, subject to certain limitations, if we make a Material Acquisition, at our election, the maximum Leverage Ratio shall be 4.00 to 1.00 for the fiscal quarter during which such Material Acquisition is consummated and the next three consecutive fiscal quarters; (b) a limitation of the amount of total secured obligations to 15% of our total consolidated assets; and (c) a limitation on our ability to sell, lease, transfer, or dispose of all or substantially all of our assets and the assets of our subsidiaries, taken as a whole (other than accounts receivable sold in a Permitted Securitization Transaction, products sold in the ordinary course of business and our ability to sell, lease, transfer, or dispose of any of our assets or the assets of one of our subsidiaries to us or one of our subsidiaries, as applicable) at any given point in time. We were in compliance with all of our debt covenants at the end of third quarter 2025. For more information about long-term debt, please see Note J on page 101 of the Notes to Consolidated Financial Statements in our Form 10-Kfiled February 26, 2025.
At September 30, 2025, we had no commercial paper outstanding and had no borrowing under the credit facility. As our trailing 12-month Consolidated EBITDA, Unrestricted Cash, and debt levels change, our borrowing capacity increases or decreases. Based on our trailing 12-month Consolidated EBITDA, Unrestricted Cash, leverage ratio covenant of 3.50 to 1.00, and debt levels at September 30, 2025, our borrowing capacity under the credit facility was $513 million. However, this may not be indicative of the actual borrowing capacity moving forward, which may be materially different depending on our Consolidated EBITDA, Unrestricted Cash, and debt levels.
Long-Term Debt (including Current Maturities)
Currently, we have $1.5 billion of total debt outstanding in equal tranches maturing in 2027, 2029, and 2051. Given that we have no commercial paper borrowings at quarter end, we expect to realize lower interest expense for the remainder of 2025. For more details on long-term debt, please refer to Note J on page 101 of the Notes to Consolidated Financial Statements in our Form 10-Kfiled February 26, 2025.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. To do so, we must make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosures. If we used different estimates or judgments, our financial statements could change. Some of these changes could be significant. Our estimates are considered by management, at the time they are made, to be reasonable and appropriate. Estimates are adjusted for actual events as they occur.
Critical accounting estimates are those that are: (a) subject to uncertainty and change and (b) of material impact to our financial statements. There were no newly identified critical accounting policies or estimates in the first nine months of 2025, and there have been no material changes to our critical accounting policies and estimates as previously disclosed beginning on page 58 in our Form 10-Kfiled February 26, 2025.
CONTINGENCIES
Litigation
Litigation Contingencies
We are exposed to litigation contingencies that, if realized, could have a material negative impact on our financial condition, results of operations, and cash flows.
Although we deny liability in all currently threatened or pending litigation proceedings, we have recorded an immaterial aggregate litigation contingency accrual at September 30, 2025 (which does not include accrued expenses related to employment, workers' compensation, vehicle-related personal injury, product and general liability claims, taxation issues, and environmental matters). Based on current known facts, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of accruals for litigation contingencies are estimated to be $16 million. If our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change or future litigation arises, we could realize losses in excess of the recorded accruals (including losses in excess of the $16 million referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows. Also, we could be subject to future litigation of various types that could negatively impact our financial condition, results of operations, and cash flows. For more information regarding our litigation contingencies, see Item 1 Legal Proceedingson page 50 and Note P Contingencieson page 24 of the Notes to Consolidated Condensed Financial Statements.
Chinese Tax Authority Reviews
China has recently intensified its review of tax compliance among foreign enterprises. We underwent reviews in 2023 and 2024 resulting in no material assessments, while in 2025, we have seen an increased number of these reviews initiated by various Chinese tax authorities. One has been favorably resolved with no assessment, while others are ongoing. If the remainder are not resolved favorably to the Company, they could have a material negative effect on our results of operations or financial condition.
Climate Change
Transition Risks
Change in Laws, Regulations, and Policies.Climate change, attributed to increased greenhouse gas (GHG) emissions, including carbon dioxide, has led to significant legislative and regulatory efforts to limit such emissions. At September 30, 2025, we had approximately 110 production facilities in 18 countries, primarily located in North America, Europe, and Asia. We also maintain a fleet of semi-trucks that emit GHG. Certain transition risks, or risks related to the process of reducing our carbon footprint, could materially affect our business, capital expenditures, results of operations, financial condition, competitive position, and reputation. One transition risk is the change in laws, regulations, and policies that could impose significant operational and compliance burdens. Also, if our customers incur additional costs to comply with such laws, regulations, and policies, impacting their ability to operate at the same or similar levels, the demand for our products could be adversely affected. Inconsistent climate legislation in jurisdictions where we operate creates economic and regulatory uncertainty and could increase our costs if such laws, regulations, or policies impose significant operational restrictions and compliance requirements on us. Non-compliance with such laws, regulations, and
policies could also negatively impact our reputation. To date, however, we have not experienced a material impact from these legislative and regulatory efforts.
Market Transition.We manufacture various automotive components, including lumbar support and massage systems for seating, seat suspension systems, motors, actuators, and cables. For decades, automotive manufacturers have sought lightweight components to increase the fuel efficiency of automobiles. Replacing traditional steel components with lightweight alternative components can directly reduce vehicle weight and fuel consumption. This increased fuel efficiency also indirectly reduces GHG emissions.
These long-standing market transitions have negatively impacted our market share, although not materially. However, if we are unable to react to technological changes, develop new and innovative products, or respond to evolving business trends, including continuing to produce comparatively lightweight components, our share in these markets could be negatively impacted.
Driven in part by climate change legislation, the global automotive industry has experienced a rapid acceleration in the transition from internal combustion engine vehicles to electric vehicles (EVs). According to the International Energy Agency, EVs are expected to represent more than 25% of all new car sales worldwide in 2025. China has emerged as a global leader in EV adoption, with Chinese EV manufacturers gaining market share at the expense of our multinational automotive OEM customer base. This shift has intensified competitive pressures across traditional automotive supply chains and has begun to impact our market share, particularly in regions where Chinese EV manufacturers have seen success in competing on price. If our multinational automotive OEM customers are unable to compete effectively with the Chinese EV manufacturers, their market share could continue to be further reduced, which could negatively impact the demand for our Automotive products.
Physical Climate Change Risks
Direct Physical Effects.The acute and chronic physical effects of severe weather-related events, natural disasters, and/or significant climate pattern changes could increasingly adversely impact our business and customers. As of September 30, 2025, we had approximately 110 manufacturing facilities in 18 countries, primarily located in North America, Europe, and Asia. We serve thousands of customers worldwide. In 2024, our largest customer represented less than 8% of our sales, and our customers were located in approximately 100 countries. Although our diverse geographical manufacturing footprint and our broad geographical customer base mitigates the potential risks of any local or regional severe weather-related event having a material effect on our operations and results, the increased frequency and severity of such weather-related events could damage our physical assets, local infrastructure, transportation systems, water delivery systems, and our customers' or suppliers' operations, and disrupt our manufacturing operations (including our steel rod mill and wire drawing mills), all of which could harm our business, results of operations, and financial condition.
Indirect Physical Effects.The physical effects of climate change could continue to adversely impact our supply chain. In the past, we experienced (due, in part, to severe weather-related impacts) supply shortages in chemicals, which restricted foam supply and constrained overall mattress production in the bedding industry. This reduced our production levels and increased our cost of chemicals and foam. Severe weather impacts could also reduce the supply of other products in our supply chain, resulting in higher prices for our products and the resources needed to produce them. If we are unable to secure an adequate and timely supply of products in our supply chain, or the cost of these raw materials or products materially increases, it could negatively impact our business, results of operations, and financial condition.
In recent years, drought conditions lowered the water levels of the Mississippi River and Panama Canal, reducing traffic through these waterways and impacting some of our shipments. Although these issues did not materially impact our results of operations, additional logistical disruptions could result in additional costs and delays in our ability to deliver products timely to customers.
In addition, although the costs have not been material to our business, results of operations, and financial condition, severe weather-related incidents have resulted and may, in the future, result in increased costs of our property insurance.
GHG Emissions Reduction Strategy
To date, we have not experienced material climate-related compliance costs. However, evaluating opportunities to reduce our emissions, setting emissions reduction goals, and measuring performance in
achieving those goals are part of our sustainability and corporate governance strategy. We completed our GHG emissions inventory covering 2019 through 2024. To ensure our information is complete and accurate, we engaged a third-party limited assurance provider for these years. Our emissions inventory includes Scope 1 and Scope 2 carbon dioxide equivalent emissions. We considered the principles and guidance of the GHG Protocol Corporate Accounting and Reporting Standard. At the end of 2024, our total GHG emissions, measured using a market-based approach, were approximately 21% less than our combined Scope 1 and 2 GHG emissions over our baseline year of 2019, which was due in significant part to the decrease in production over the same time period.
Our baseline measurement will inform a long-term GHG emissions reduction strategy, including setting reduction goals and other key performance areas. Our key initiatives for 2025 and 2026 include: developing our emissions reduction pathways to reduce GHG emissions, undertaking our first Scope 3 emissions inventory, assessing where emission reduction opportunities lie within our value chain, and preparing for and complying with new reporting requirements. We expect to set an emissions reduction goal by the end of 2025 or in early 2026. Our ability to achieve any stated goal is subject to numerous factors and conditions, many of which are outside of our control, including but not limited to, evolving regulatory requirements affecting sustainability standards or disclosures or imposing different requirements, and the pace of changes in available materials and technology. We are currently evaluating our capital expenditures or operating costs that may be required to implement our GHG emissions reduction strategy. However, we do not expect that such capital expenditures or operating costs will be material to our financial condition or results of operations.
Our GHG emissions reduction strategy will continue to evolve, and we expect to share more specific information by the end of 2025 or in early 2026, in conjunction with our emissions reduction target. For information regarding our GHG emissions goals, please see our Sustainability Progress Report, as well as any related addendum or supplement available at www.leggett.com/sustainability. Neither our Sustainability Progress Report, any related addendum or supplement, nor the Leggett website, constitute part of this Quarterly Report on Form 10-Q.
Cybersecurity Risks
We rely on information systems to obtain, process, analyze, and manage data, as well as to facilitate the manufacture and distribution of inventory to and from our facilities. We receive, process, and ship orders, manage the billing of and collections from our customers, and manage the accounting for and payment to our vendors. We also manage our production processes with certain industrial control systems. Consequently, we are subject to cybersecurity risk.
Although we have purchased broad form cyber insurance coverage and strive to provide a balanced level of cybersecurity protections, cybersecurity risk has increased due to remote access and increased sophistication of cybersecurity adversaries, as well as the increased frequency of cybersecurity attacks. As such, information technology failures or cybersecurity breaches could still create system disruptions or unauthorized disclosure or alterations of confidential information and disruptions to the systems of our third-party suppliers and providers. We cannot be certain that the attacker's capabilities will not compromise our cybersecurity defenses surrounding our information systems or bypass our detection capabilities, including those resulting from ransomware attached to our industrial control systems. If these systems are interrupted or damaged by any incident or fail for any extended period of time, then our results of operations could be adversely affected. We may incur material remediation costs and cybersecurity protection costs, lost revenues resulting from unauthorized use of proprietary information, material litigation costs, and increases in insurance premiums, reputational damage, damage to our competitiveness, and negative impact on our stock price and long-term shareholder value. We may also be required to devote significant management resources and expend significant additional resources to address problems created by any such interruption, damage, or failure.
NEW ACCOUNTING STANDARDS
The FASB has issued accounting guidance effective for current and future periods. See Note A Interim Presentationto the Consolidated Condensed Financial Statements on page 9 for a more complete discussion.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rates
Substantially all of our debt is denominated in United States dollars. The fair value of fixed rate debt was approximately $180.0 million less than carrying value of $1,489.6 million at September 30, 2025 and approximately $245.0 million less than carrying value of $1,488.3 million at December 31, 2024. The fair value of fixed rate debt was based on quoted market prices in an active market. The fair value of variable rate debt is not significantly different from its recorded amount.
Investment in Foreign Subsidiaries
We view our investment in foreign subsidiaries as a long-term commitment, and it can vary based on operating cycles and currency rate fluctuations. This investment may take the form of either permanent capital or notes. Our net investment (i.e., total assets less total liabilities subject to translation exposure) in foreign operations with functional currencies other than the U.S. dollar was $1,269.5 million at September 30, 2025 compared to $1,022.8 million at December 31, 2024.
Derivative Financial Instruments
We are subject to market and financial risks related to interest rates and foreign currency. In the normal course of business, we utilize derivative instruments (individually or in combinations) to reduce or eliminate these risks. We seek to use derivative contracts that qualify for hedge accounting treatment; however, some instruments may not qualify for hedge accounting treatment. It is our policy not to speculate using derivative instruments. Information regarding cash flow hedges and fair value hedges is provided in Note A Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in our Form 10-Kfiled February 26, 2025 and Note N Derivative Financial Instrumentsbeginning on page 23 of the Notes to Consolidated Condensed Financial Statements and is incorporated by reference into this section.
MARKET AND INDUSTRY DATA
Unless indicated otherwise, the information concerning our industries contained herein is based on our general knowledge of and expectations concerning the industries. Our market share is based on estimates using our internal data, data from various industry analyses, internal research, and adjustments and assumptions that we believe to be reasonable. We have not independently verified data from industry analyses and cannot guarantee their accuracy or completeness.
Leggett & Platt Inc. published this content on October 31, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on October 31, 2025 at 16:03 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]