Page No.
            •     Highlights                                            21
            •     Introduction                                          22
            •     Results of Operations                                 26
            •     Liquidity and Capitalization                          28
            •     Critical Accounting Policies and Estimates            33
            •     Contingencies                                         33
            •     New Accounting Standards                              35


HIGHLIGHTS

We had record first quarter trade sales from continuing operations of $1,322
million for the three months ending March 31, 2022, an increase of 15% versus
the first quarter 2021.

EPS increased to $.66 for the first three months of 2022, versus $.64 in the same period of 2021. This was a record for first quarter earnings.

First quarter 2022 EBIT was up $10 million versus first quarter of 2021, coming in at $138 million, a first quarter record for EBIT.

Operating cash flow was $39 million in the first quarter 2022, an increase of $50 million versus first quarter 2021.


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In February 2022, the Board of Directors declared a $.42 first quarter 2022 dividend, two cents higher than last year's first quarter dividend, and extended our record of consecutive annual increases to over 50 years.

Share repurchases in the first quarter of 2022 were .6 million shares at an average price of $37.17.



In February 2022, we sold our South African bedding innerspring operation for a
cash purchase price of approximately $2 million. This business had annualized
sales of approximately $8 million and was reported in our Bedding Products
segment.

INTRODUCTION

What We Do

Leggett & Platt, Incorporated (the Company, we, or our) is 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 the leading U.S.-based manufacturer of: a) bedding components; b)
automotive seat support and lumbar systems; c) specialty bedding foams and
private-label finished mattresses; d) components for home furniture and work
furniture; e) flooring underlayment; f) adjustable beds; and g) bedding industry
machinery.

Our Segments

Our operations are comprised of 130 production facilities located in 17 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 and machinery
used by bedding manufacturers in the production and assembly of their finished
products, as well as produces private label finished mattresses for bedding
brands and adjustable bed bases. This segment is also vertically integrated into
the production and supply of specialty foam chemicals, steel rod, and drawn
steel wire to our own operations and to external customers. Our trade customers
for wire make mechanical springs and many other end products. This segment
generated 48% of our trade sales during the first three months of 2022.

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 tubing and tube assemblies for the
aerospace industry and engineered hydraulic cylinders used in the
material-handling and construction industries. This segment contributed 20% of
our trade sales in the first three months of 2022.

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 32% of our trade sales in the first three
months of 2022.

Total Shareholder Return

Total Shareholder Return (TSR), relative to peer companies, is a primary
financial measure that we use to assess long-term performance. TSR = (Change in
Stock Price + Dividends) ÷ Beginning Stock Price. We target average annual TSR
of 11-14% through an approach that employs four TSR sources: revenue growth,
margin expansion, dividends, and share repurchases.

We monitor our TSR performance on a rolling three-year basis. We believe our
disciplined growth strategy, portfolio management, and prudent use of capital
will support achievement of our goal over time.

The table below shows the components of our TSR targets.



                                                     Current Targets
                   Revenue Growth                         6-9%
                   Margin Increase                         1%

                   Dividend Yield                          3%
                   Stock Buyback                           1%
                    Total Shareholder Return             11-14%


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Senior executives participate in an incentive program with a three-year
performance period based on two equal measures: (i) our TSR performance compared
to the performance of a group of approximately 300 peers, and (ii) the Company
or segment Earnings Before Interest and Taxes (EBIT) Compound Annual Growth Rate
(CAGR).

Customers

We serve a broad suite of customers, with our largest customer representing
approximately 6% of our trade sales in 2021. 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 organic sales 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

Many factors impact our business, but those that generally have the greatest impact are discussed below.

Inflationary Trends in Cost of Goods Sold



Our costs have increased significantly as market prices for raw materials (many
of which are commodities), have been impacted by inflation. We typically have
short-term commitments from our suppliers; accordingly, our raw material costs
generally move with the market. Our costs have also been impacted by higher
prices for transportation and energy (partially from the Russian invasion of
Ukraine) as well as labor. Our ability to recover higher costs (through selling
price increases) is crucial. When we experience significant increases in costs
of goods sold, we typically implement price increases to recover the higher
costs. While we have been generally successful in recovering the higher costs,
even during these volatile times, the timing of our price increases is
important; we typically experience a lag in recovering higher costs.

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. Over the past few years, we have seen varying
degrees of inflation and deflation in U.S. steel pricing. In 2021, steel costs
inflated throughout the majority of the year and inflated further in the first
quarter of 2022.

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).
In 2021, steel rod price increases outpaced steel scrap price increases
resulting in significantly expanded metal margins within the steel industry.
Metal margins expanded further in the first quarter of 2022. If these expanded
metal margins are sustained, our steel rod mill should continue to experience
enhanced profitability.

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. In 2021, chemical prices inflated due to
robust demand and shortages from severe weather, supplier production
disruptions, port delays, and logistics challenges. The supply shortages in 2021
resulted in significant restrictions by producers. Late in 2021 and into the
first quarter of 2022, chemical prices leveled off as supply availability
improved.

Shortages in the labor markets in several industries in which we operate have
created challenges in hiring and maintaining adequate workforce levels. Because
of these shortages, we have experienced increased labor costs.

Some facilities have experienced disruptions in logistics necessary to import,
export, or transfer raw materials or finished goods, which has generally
resulted in increased freight costs that are typically passed through to our
customers. Our supply chains have also been hampered by congested ports.

Our other raw materials include woven and nonwoven fabrics and foam scrap. We
have experienced changes in the cost of these materials and generally have been
able to pass them through to our customers.

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.
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Supply Chain Disruptions



We have experienced significant supply chain disruptions related to
semiconductor shortages, labor availability, and freight challenges, as well as
higher costs associated with each of these issues. We have also experienced
delays in delivery of raw materials, parts, and finished goods because of
shutdown or congested delivery ports, inclement weather, and the invasion of
Ukraine. This has resulted in reduced volume and higher costs in many of our
businesses, including our Automotive business and Bedding Products segment,
primarily related to negative impacts on component demand and finished goods
production.

Currently there is a shortage of semiconductors in the automotive industry.
Automotive OEMs and other suppliers have not been able to secure an adequate
supply of semiconductors, and as a result have reduced or completely shut down
their production of some automobiles or parts, which in turn has reduced our
sale of products. Consumer demand remains strong, but the semiconductor shortage
has pushed vehicle inventory to very low levels. Our Automotive Group uses the
semiconductors in seat comfort products, and to a lesser extent in motors and
actuators. Although our Automotive Group has been able to obtain an adequate
supply of semiconductors, we are dependent on our suppliers to deliver these
semiconductors in accordance with our production schedule. A shortage of the
semiconductors, either to us, the automotive OEMs, or our suppliers, can disrupt
our operations and our ability to deliver products to our customers. The
shortage of semiconductors is also impacting our Adjustable Bed and Hydraulic
Cylinders business units.

The Russian invasion of Ukraine has caused disruptions in our supply chain and
negatively impacted our results of operations. Our Automotive business uses
semiconductors, the production of which uses neon gas. Our Aerospace business
uses titanium and nickel in the production of aerospace tubing. Several of our
businesses use birch plywood in their products. Although we do not have
operations in Russia, Belarus, or Ukraine, and we have not had a material amount
of sales into these countries, some of our businesses have sourced, directly or
indirectly, a portion of their supply chain requirements of nickel, titanium,
and birch plywood from Russia. Also, a significant portion of neon gas is
produced in the Ukraine. Since the invasion began, the prices of these materials
have significantly increased. Also, several countries have imposed economic
sanctions against Russia as a result of its military action. It is possible
sanctions could be expanded, or additional measures taken, which could restrict
the import of nickel, titanium, and birch plywood from Russia or greatly
increase the cost of procurement via increased duties or otherwise. Also, if the
conflict in Ukraine expands geographically or in intensity, this may have a
negative impact on our operations, including access to energy and other raw
materials.

For more information regarding supply chain disruptions, see Inflationary Trends in Cost of Goods Sold on page 23.

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 remain price competitive in most of our
business units, even versus many foreign manufacturers, as a result of our
highly efficient operations, automation, vertical integration in steel and wire,
logistics and distribution efficiencies, and large-scale purchasing of raw
materials and commodities. However, we have also reacted to foreign competition
in certain cases by selectively adjusting prices, developing new proprietary
products that help our customers reduce total costs, and shifting production
offshore to take advantage of lower input costs.

Since 2009, there have been antidumping duty orders on innerspring imports from
China, South Africa, and Vietnam, ranging from 116% to 234%. In September 2019,
the Department of Commerce (DOC) and the International Trade Commission (ITC)
concluded a second sunset review extending the orders for an additional five
years, through October 2024, at which time the DOC and ITC will conduct a third
sunset review to determine whether to extend the orders for an additional five
years.

Antidumping and countervailing duty cases filed by major U.S. steel wire rod
producers have resulted in the imposition of antidumping duties on imports of
steel wire rod from Brazil, China, Belarus, Indonesia, Italy, Korea, Mexico,
Moldova, Russia, South Africa, Spain, Trinidad & Tobago, Turkey, Ukraine, United
Arab Emirates, and the United Kingdom, ranging from 1% to 757%, and
countervailing duties on imports of steel wire rod from Brazil, China, Italy,
and Turkey, ranging from 3% to 193%. In June 2020, the ITC and DOC concluded a
first sunset review, extending the orders on China through June 2025, and in
July 2020, the ITC and DOC concluded a third sunset review, determining to
extend the orders on Brazil, Indonesia, Mexico, Moldova, and Trinidad & Tobago
through August 2025. Duties will continue through December 2022 for Belarus,
Italy, Korea,
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Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates, and the United Kingdom. At those times, the DOC and the ITC will conduct sunset reviews to determine whether to extend those orders for an additional five years.



Since 2019, there has been an antidumping duty order on mattress imports from
China ranging from 57% to 1,732%. This order will remain in effect through
December 2024, at which time the DOC and ITC will conduct a sunset review to
determine whether to extend the order for an additional five years.

In March 2020, the Company, along with other domestic mattress producers and two
labor unions representing workers at other mattress producers, filed antidumping
petitions with the DOC and the ITC alleging that manufacturers of mattresses in
Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam were
unfairly selling their products in the United States at less than fair value
(dumping) and a countervailing duty petition alleging manufacturers of
mattresses in China were benefiting from subsidies. In March 2021, the DOC made
final determinations, assigning China a countervailing duty rate of 97.78% and
antidumping duty rates on the other seven countries from 2.22% - 763.28%. In
April 2021, the ITC made a unanimous affirmative final determination that
domestic mattress producers were materially injured by reason of the unfairly
priced or subsidized imported mattresses. Accordingly, the agencies instructed
that final antidumping and countervailing duty orders will remain in effect for
five years, through May 2026, at which time the DOC and ITC will conduct a
sunset review to determine whether to extend the order for an additional five
years. Appeals have been filed with the U.S. Court of International Trade as to
the DOC's final determinations of margins for Cambodia, Indonesia, Thailand, and
Vietnam and the ITC's final determination of injury. See   Item 1 Legal
Proceedings   on page 37 for more information.

COVID-19 Impacts on our Business

Below is a discussion of the various current impacts of COVID-19 on our business.



Demand for our Products. Various governments in North America, Europe, Asia, and
elsewhere instituted, and some have reinstituted, quarantines, shelter-in-place
or stay-at-home orders, or restrictions on public gatherings as well as
limitations on social interactions, which have had, and could further have, an
adverse effect on the demand for our products.

Impact on our Manufacturing Operations. We have manufacturing facilities in 17
countries. All of these countries have been affected by the COVID-19 pandemic.
All of our facilities are open and running at this time. However, some of our
facilities in China, most notably in our Automotive and Home Furniture
businesses, have been temporarily closed from time to time due to strict
COVID-related lockdown requirements. If the lockdowns in China are imposed on a
broader geographic scope, this could materially negatively impact our
manufacturing capacity, our customers or vendors, and our ability to transport
goods in our supply chain. We have also had, at various times, some capacity
restrictions on our plants due to governmental orders in other parts of the
world. We have been and could be further negatively affected by governmental
action in any one or more of the countries in which we operate by the
imposition, or re-imposition, of restrictive social measures, mandatory closures
of retail establishments that sell our products or our customers' products,
travel restrictions, and restrictions on the import or export of products.

Depending on the length and severity of the COVID-19 pandemic, the percentage of
the population vaccinated, and the effectiveness of the vaccines against new
variants, our ability to keep our manufacturing operations open and fully
operational, build and maintain appropriate labor levels, obtain necessary raw
materials and parts, and ship finished products to customers may be partially or
completely disrupted, either on a temporary or prolonged basis. A significant
increase in COVID-19 cases among our employees may disrupt our ability to
maintain necessary labor levels and produce and deliver products to our
customers if we are unable to shift production to other manufacturing
facilities. The continued realization of these risks to our manufacturing
operations, labor force, and supply chain could also increase labor, commodity,
and transportation costs.

Collection of Trade and Notes Receivables. Some of our customers have been
adversely affected by the COVID-19 pandemic. If these parties suffer financial
difficulty, they may be unable to pay their debts to us. We are closely
monitoring accounts receivable and collections. Although we experienced
increased bad debt expense in the first quarter of 2020, we have had favorable
customer payment trends and applied a lower qualitative risk for improved
macroeconomic conditions which have allowed us to reduce our bad debt reserves
in the last half of 2020 through 2021. While favorable customer payment trends
continued in the first quarter of 2022, we recorded $1.4 million bad debt
related to macro market uncertainties and ordinary customer credit reviews.

Impairment of Goodwill and Long-Lived Assets. A significant portion of our
assets consists of goodwill and other long-lived assets, the carrying value of
which may be reduced if we determine that those assets are impaired. At
March 31, 2022, goodwill and other intangible assets represented $2.1 billion,
or 40% of our total assets. In addition, net property, plant and equipment,
operating lease right-of-use assets, and sundry assets totaled $1.1 billion, or
20% of total assets.
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Our annual goodwill impairment testing performed in the second quarter of 2021
indicated no goodwill impairments. However, fair value exceeded carrying value
by less than 100% for two reporting units as summarized in the table below:

                             Fair value in excess of carrying value               Goodwill
                        Goodwill impairment testing as performed in the
                                      second quarter 2021                   As of March 31, 2022
Aerospace                                                          28  %            $67   million
Work Furniture                                                     85  %           $101   million


In our Aerospace reporting unit, demand for fabricated duct assemblies is at
2019 levels and demand for welded and seamless tube products is improving
modestly but still below pre-pandemic levels. We expect the industry to return
to 2019 demand levels in 2024. Sales in the Work Furniture reporting unit have
recovered to pre-pandemic levels from strong demand for products sold for
residential use and improvement in the contract market as companies redesign
their footprints and invest in office space to attract and retain employees as
more people return to the office. We are continuing to monitor all factors
impacting these industries. If the adverse economic impact from the COVID-19
pandemic is longer than expected, we may not be able to achieve projected
performance levels. If actual results of any of our reporting units materially
differ from the assumptions and estimates used in the goodwill and long-lived
asset valuation calculations, we could incur future impairment charges. These
non-cash charges could have a material negative impact on our earnings.

Relief under the CARES Act. We deferred $19 million of our 2020 payment of
employer's Social Security match as provided by the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. Approximately half was paid in January 2022 in
accordance with the holiday schedule for the December 31, 2021 deferral date.
The remaining deferral is anticipated to be paid in January 2023.

RESULTS OF OPERATIONS

Discussion of Consolidated Results

Three Months:

Trade Sales were $1,322 million in the first three months of 2022, a 15%
increase versus the same period last year. Organic sales increased 13%, with
volume down 4% primarily from demand softness in U.S. and European bedding
markets, partially offset by growth in our Work Furniture, Aerospace, and
Hydraulic Cylinders businesses. Inflation driven raw material-related selling
price increases added 18% to sales and currency impact decreased sales by 1%.
Acquisitions, net of divestitures, increased sales 2%.

EBIT increased 8% to $138 million, primarily from metal margin expansion in our
Steel Rod business and pricing discipline in the Furniture, Flooring & Textile
Products segment, partially offset by lower volume primarily in the Bedding
segment, higher raw materials and transportation costs in Automotive generally,
and production inefficiencies and related premium freight costs in a North
American Automotive facility.

EPS increased to $.66 for the first three months of 2022, versus $.64 in the
same period of 2021, primarily from higher EBIT as discussed above, partially
offset by higher tax rate ($.03/share) and interest expense ($.01/share).

Net Interest Expense and Income Taxes

Net interest expense for the first quarter 2022 was $1 million higher than the first quarter 2021.



Our worldwide effective tax rate was 23% for the first quarter of 2022, compared
to 20% for the same quarter last year. While the U.S. statutory federal income
tax rate was 21% in both years, foreign withholding taxes, the impact of foreign
earnings, Global Intangible Low-Taxed Income (GILTI), and other less significant
items added 2% and 3% to our tax rate in 2022 and 2021, respectively. In 2021,
our rate also benefited by 2% for stock compensation-related items and 2% from
prior year tax adjustments related to amended tax returns we expected to file.

For the full year, we are anticipating an effective tax rate of approximately
23%, 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.
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Discussion of Segment Results

Three Month Discussion



A description of the products included in each segment, along with segment
financial data, appear in   Note 4 Segment Information   to the Consolidated
Condensed Financial Statements on page 8. A summary of segment results is shown
in the following tables.

                                 Three Months           Three Months                   Change in Sales
Trade Sales                         Ended                  Ended                                                        % Change in Organic

(Dollar amounts in millions) March 31, 2022 March 31, 2021

         $                    %                   Sales 1
Bedding Products               $       639.4          $       535.8          $        103.6               19.3  %                    16.4  %
Specialized Products                   264.1                  257.6                     6.5                2.4                        2.4
Furniture, Flooring & Textile
Products                               418.8                  357.5                    61.3               17.1                       16.8

Total                          $     1,322.3          $     1,150.9          $        171.4               14.9  %                    13.5  %



                                      Three Months        Three Months                    Change in EBIT                                EBIT Margins
                                         Ended               Ended                                                          Three Months           Three Months
EBIT                                    March 31,           March 31,                                                          Ended

Ended


(Dollar amounts in millions)              2022                2021                      $                     %             March 31, 2022        March 31, 2021
Bedding Products                      $     76.2          $     63.8          $       12.4                   19.4  %               11.9  %                11.9  %
Specialized Products                        20.3                35.2                 (14.9)                 (42.3)                  7.7                   13.7
Furniture, Flooring & Textile
Products                                    42.7                28.3                  14.4                   50.9                  10.2

7.9


Intersegment eliminations & other           (1.6)                 .4                  (2.0)
Total                                 $    137.6          $    127.7          $        9.9                    7.8  %               10.4  %                11.1  %



 Depreciation and Amortization             Three Months Ended        Three

Months Ended


 (Dollar amounts in millions)                 March 31, 2022            March 31, 2021
 Bedding Products                         $               26.2      $               26.1
 Specialized Products                                     10.8                      11.1
 Furniture, Flooring & Textile Products                    5.9                       6.1
 Unallocated 2                                             2.8                       2.8
 Total                                    $               45.7      $               46.1



1This is a change in trade sales not attributable to acquisitions or
divestitures in the last 12 months. Refer to the discussion below under Bedding
Products and Furniture, Flooring & Textile Products for a reconciliation of the
change in total segment trade sales to organic sales.

2Unallocated consists primarily of depreciation and amortization on non-operating assets.

Bedding Products

Trade sales increased $104 million, or 19%. Organic sales increased 16%. Inflation driven raw material-related selling price increases added 26% to sales, partially offset by volume declines of 9% and currency impact of 1%. The Kayfoam acquisition completed in June 2021, net of divestitures (small operations in Drawn Wire and International Bedding), added 3% to sales growth.



EBIT increased $12 million, primarily from higher metal margin, partially offset
by lower volume and lower overhead absorption as production and inventory levels
were adjusted to meet reduced demand.

Specialized Products



Trade sales increased $7 million, or 2%. Organic sales grew 2%, driven by volume
growth of 3% and raw material-related selling price increases of 1%, partially
offset by currency impact of 2%.

EBIT decreased $15 million, primarily from higher raw material and transportation costs in Automotive generally, and production inefficiencies and related premium freight costs in a North American Automotive facility.


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Furniture, Flooring & Textile Products

Trade sales increased $61 million, or 17%. Organic sales increased 17% from inflation driven raw material-related selling price increases. A small Work Furniture acquisition completed in May 2021 added less than 1% to trade sales.

EBIT increased $14 million, primarily from pricing discipline.



LIQUIDITY AND CAPITALIZATION

Liquidity

Sources of Cash

Cash on Hand

At March 31, 2022, we had cash and cash equivalents of $327 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 immediately bring back all our foreign cash to the U.S. in the
form of dividends, we would pay foreign withholding taxes of approximately $21
million. Although there are capital requirements in various jurisdictions, none
of this cash was inaccessible for repatriation at March 31, 2022.

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 three months ended March 31, 2022
was $39.0 million, up $49.6 million from the same period last year. First
quarter is normally our lowest cash flow quarter of the year with increased
working capital driven by the normal cadence of our business. Working capital
increased significantly last year due to restocking efforts following inventory
depletion in 2020 but increased to a lesser extent this year as we began to
return to more normal levels of inventory.

We closely monitor our working capital levels and ended the quarter with
adjusted working capital at 15.2% 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 Hand   on page
28, substantially all of these funds are held by international operations and
may not be immediately available to reduce debt on a dollar-for-dollar basis.
(Dollar amounts in millions)                                  March 31, 2022          December 31, 2021
Current assets                                               $      2,138.0          $        2,065.3
Current liabilities                                                 1,351.2                   1,335.7
Working capital                                                       786.8                     729.6
Cash and cash equivalents                                             327.3                     361.7
Current debt maturities and current portion of operating
lease liabilities                                                     347.1                     345.1
Adjusted working capital                                     $        806.6          $          713.0
Annualized trade sales 1                                     $      5,289.2          $        5,331.6
Working capital as a percent of annualized trade sales                 14.9  %                   13.7  %

Adjusted working capital as a percent of annualized trade sales

                                                                  15.2  %                   13.4  %


1 Annualized trade sales equal first quarter 2022 trade sales of $1,322.3
million and fourth quarter 2021 trade sales of $1,332.9 million multiplied by 4.
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.
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Three Primary Components of our Working Capital


                                            Amount (in millions)                                                                              Days
                                                                                                           Three Months Ended          Twelve Months Ended          Three Months Ended
                                                    December 31,        March 31,                            March 31, 2022                                           March 31, 2021
                             March 31, 2022             2021              2021                                                          December 31, 2021
Trade Receivables          $         666.5          $   620.0          $  577.4          DSO 1                              45                            42                         45

Inventories                $       1,045.8          $   993.2          $  801.8          DIO 2                              89                            76                         80

Accounts Payable           $         622.0          $   613.8          $  536.3          DPO 3                              53                            53                         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.



Trade Receivables - Our trade receivables increased at March 31, 2022 compared
to both December 31 and March 31, 2021. Our DSO remained consistent versus
March 31, 2021 but increased versus December 31, 2021. Increased trade
receivables were primarily related to raw material-related selling price
increases. Our allowance for doubtful accounts increased by $1 million during
the first quarter of 2022 related to macro market uncertainties and ordinary
customer credit risk reviews. Favorable customer payment trends continue as we
are closely monitoring accounts receivable and collections. We monitor all
accounts for possible loss. We also monitor general macroeconomic conditions and
other items that could impact the expected collectibility of all customers, or
pools of customers, with similar risk. We obtain credit applications, credit
reports, bank and trade references, and periodic financial statements from our
customers to establish credit limits and terms as appropriate. In cases where a
customer's payment performance or financial condition begins to deteriorate or
in the event of a customer bankruptcy, we tighten our credit limits and terms
and make appropriate reserves based upon the facts and circumstances for each
individual customer, as well as pools of customers with similar risk.

Inventories - Our inventories and DIO increased at March 31, 2022 compared to
both December 31 and March 31, 2021. Increased inventories versus December 31
were primarily driven by inflation and advance purchases of selected products to
proactively address inflation, potential supply chain constraints, and to ensure
consistent supply to our customers. Inventory levels increased significantly
throughout 2021 (primarily in our Steel Rod, Drawn Wire, and U.S. Spring
businesses) due to re-stocking efforts following severe depletion in 2020.
Supply chain constraints have generally improved across the Bedding businesses,
and we are making progress in reducing certain inventories built under higher
demand expectations, but will still comfortably support near-term customer
requirements and protect against future disruptions. We built additional safety
stock in late 2021 and early 2022 as a precautionary measure before taking our
steel rod mill out of operation late in the first quarter of 2022 to replace the
reheat furnace. We successfully completed the reheat furnace replacement,
enabling us to begin reducing the extra inventory. Our normal seasonal cash flow
cycle will continue to be altered to some degree as we continue to balance
inventory levels. Our recent increased inventory levels are not indicative of
slow-moving or potential inventory obsolescence. 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 utilize
cycle counting programs and complete physical counts of our inventory. When
potential inventory obsolescence is indicated by these controls, we will take
charges for write-downs to maintain an adequate level of reserves.

Accounts Payable - Our accounts payable increased at March 31, 2022 compared to
both December 31 and March 31, 2021. At March 31, 2022, our DPO has remained
consistent across all periods presented. The increased accounts payable balances
were primarily related to the inventory factors discussed above. Our payment
terms did not change meaningfully since last year, and we have continued to
focus on optimizing payment terms with our vendors. We continue to look for ways
to
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establish and maintain favorable payment terms through our significant purchasing power 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 million and $35 million of trade receivables that were sold
and removed from our Consolidated Condensed Balance Sheets at March 31, 2022 and
December 31, 2021, respectively. These sales reduced our quarterly DSO by
roughly three days, and the impact to year-to-date operating cash flow, provided
or (used), was approximately $5 million and ($10) million, at March 31, 2022 and
December 31, 2021, respectively.

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. While these programs assist us in negotiating payment
terms with our suppliers, we continue to make payments based on our customary
terms. A vendor 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. Contracts with our suppliers are negotiated independently of
supplier participation in the programs, and we cannot increase payment terms
pursuant to the programs. As such, there is no direct impact on our DPO,
accounts payable, operating cash flows, or liquidity. The accounts payable
associated with the third-party programs, which remain on our Consolidated
Condensed Balance Sheets, were approximately $130 million at both March 31, 2022
and December 31, 2021.

While we utilize the above items as tools in our cash flow management and offer
them as options to facilitate customer and vendor operating cycles, if there
were to be a cessation of these programs, we do not expect it would materially
impact our operating cash flows or liquidity.

Commercial Paper Program



Another source of funds for our short-term cash requirements is our $1.2 billion
commercial paper program. As of March 31, 2022, we had $14 million of commercial
paper outstanding. For more information on our commercial paper program, see

Commercial Paper Program on page 32.

Credit Facility



Our credit facility is a five-year multi-currency facility providing us the
ability, from time to time, to borrow, repay, and re-borrow up to $1.2 billion
until the maturity date, at which time our ability to borrow under the facility
will terminate. The credit facility matures in September 2026. Currently, there
are no borrowings under the credit facility.

Capital Markets



We also 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. Currently, we
have $2.1 billion of total debt outstanding with maturity dates ranging from
2022 to 2051. For more information, please see   Long-Term Debt   on page 33.

Uses of Cash



Our long-term priorities for uses of cash are: fund organic growth including
capital expenditures, pay dividends, fund strategic acquisitions, and repurchase
stock with available cash.

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 expect capital expenditures to approximate $150
million in 2022 of which we have spent $19 million as of March 31, 2022. Our
employee incentive plans emphasize returns on capital, which include net fixed
assets 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.

Dividends

Dividends are one of the primary means by which we return cash to shareholders. In February, we declared a quarterly dividend of $.42 per share, which represented a $.02 or 5.0% increase versus first quarter of 2021.


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Our long-term targeted dividend payout ratio is approximately 50% of adjusted
EPS (which excludes special items such as significant tax law impacts,
impairment charges, restructuring-related charges, divestiture gains, litigation
accruals, and settlement proceeds). Continuing our long track record of
increasing the dividend remains a high priority. 2021 marked our 50th
consecutive annual dividend increase. We are proud of our dividend record and
plan to extend it.

Acquisitions

Our long-term, 6-9% annual revenue growth objective envisions periodic acquisitions. We are seeking strategic acquisitions that complement our current products and capabilities.

We have not acquired any businesses in 2022.

Stock Repurchases



With the deleveraging we accomplished over the past few years after acquiring
ECS in January 2019, share repurchases have returned as one of our priorities
for uses of cash. During the first quarter of 2022, we repurchased .6 million
shares of our stock (at an average price of $37.17) and issued .7 million shares
through employee benefit plans. For the full year, we currently expect share
repurchases to offset share issuances.

We have been authorized by the Board to repurchase up to 10 million shares each
year, but we have established no specific repurchase commitment or timetable.
The level of repurchases will vary depending on various considerations,
including alternative uses of cash and opportunities to repurchase shares at an
attractive price.

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 first quarter 2022 to
our short-term or long-term cash requirements as previously reported in our cash
requirements table on page 48 of our   Form 10-K   filed February 22, 2022.


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Capitalization

Capitalization Table

This table presents key debt and capitalization statistics for the periods presented: (Dollar amounts in millions)

                                         March

31, 2022 December 31, 2021



Total debt excluding revolving credit/commercial paper              $      2,090.4          $        2,090.3
Less: Current maturities of long-term debt                                   301.3                     300.6
Scheduled maturities of long-term debt                                     1,789.1                   1,789.7
Average interest rates 1                                                       3.7  %                    3.7  %
Average maturities in years 1                                                 10.6                      10.8
Revolving credit/commercial paper 2                                           14.0                         -
Average interest rate on period-end balance outstanding                         .6  %                      -  %

Average interest rate during the period (2022-three months;2021-twelve months)

                                                      .3  %                     .2  %
Total long-term debt                                                       1,803.1                   1,789.7
Deferred income taxes and other liabilities                                  516.1                     533.3
Shareholders' equity and noncontrolling interest                           1,671.4                   1,648.6
Total capitalization                                                $      3,990.6          $        3,971.6
Unused committed credit:
Long-term                                                           $      1,186.0          $        1,200.0
Short-term                                                                       -                         -
Total unused committed credit 2                                     $

1,186.0 $ 1,200.0



Cash and cash equivalents                                           $

327.3 $ 361.7

1 These rates include current maturities, but exclude commercial paper to reflect the

averages of outstanding debt with scheduled maturities.

2 The unused committed credit amount is based on our revolving credit facility and

commercial paper program which, at year end 2021 and at the end of the first quarter

of 2022, had a total authorized program amount of $1.2 billion. However, our

borrowing capacity may be limited by covenants to our credit facility.




Commercial Paper Program

Amounts outstanding related to our commercial paper program were: (Amounts in millions)

                                      March 31, 2022           December 31, 2021
Total authorized program                                 $       1,200.0

$ 1,200.0 Commercial paper outstanding (classified as long-term debt)

                                                               14.0                           -
Letters of credit issued under the credit agreement                    -                           -
Total program usage                                                 14.0                           -
Total program available                                  $       1,186.0          $          1,200.0


The average and maximum amounts of commercial paper outstanding during the first
quarter of 2022 were $24 million and $53 million, respectively. At quarter end,
we had no letters of credit outstanding under the credit facility, but we had
issued $48 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 capital
needs, market conditions, and alternative capital market opportunities, we
expect to maintain the indebtedness under the 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 $1.2 billion revolving
credit facility maturing in 2026 discussed below.
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Credit Facility



Our multi-currency credit facility was amended September 2021 to create more
financial flexibility and matures in September 2026. It provides us the ability,
from time to time subject to certain restrictive covenants and customary
conditions, to borrow, repay, and re-borrow up to $1.2 billion.

Our credit facility contains restrictive covenants which (a) require 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, such ratio
not being greater than 3.50 to 1.00, provided, however, subject to certain
limitations, if we have made a material acquisition in any fiscal quarter, 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) limit the amount of total secured debt to 15%
of our total consolidated assets, and (c) limit 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; each (a), (b), and (c)
above as determined by the terms of our credit agreement, filed with the SEC on
October 1, 2021 as   Exhibit 10.1   to our Current Report on Form 8-K. We were
in compliance with all of our debt covenants at the end of first quarter 2022,
and expect to maintain compliance with the debt covenant requirements.

Our credit facility serves as back-up for our commercial paper program. At March
31, 2022, we had $14 million of 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, and debt levels at March 31, 2022, our borrowing capacity
under the credit facility was $1.186 billion. 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,
debt levels, and leverage ratio requirements at that time.

Long-Term Debt

We have total debt of $2,104 million of which $300 million is due August 2022. The maturities of the long-term debt range from 2024 through 2051. For more information on our long-term debt, please refer to Footnote J to our Consolidated Financial Statements on page 94 in our Form 10-K filed February 22, 2022.



In November 2021, we issued $500 million aggregate principal amount of notes
that mature in 2051. The notes bear interest at a rate of 3.5% per year, with
interest payable semi-annually beginning May 15, 2022. As part of this issuance,
we also unwound $300 million of treasury lock agreements we had entered into
during 2021 at a gain of approximately $10 million, which will be amortized over
the life of the notes. The net proceeds of these notes were used to repay
commercial paper, and therefore indirectly may be used, through future
commercial paper issuances, to repay a portion of the $300 million 3.4% Senior
Notes due August 2022.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes to our critical accounting policies and estimates as previously disclosed beginning on page 51 in our Form 10-K filed February 22, 2022.

CONTINGENCIES

For contingencies related to the impact of the COVID-19 pandemic on our business, please see COVID-19 Impacts on our Business on page 25.

Litigation

Accrual for Litigation Contingencies and Reasonably Possible Losses in Excess of Accruals



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. We deny liability in all currently threatened or pending litigation
proceedings and believe we have valid bases to contest all claims made against
us. At March 31, 2022, our litigation contingency accrual was immaterial (which
does not include accrued expenses related to workers' compensation,
vehicle-related personal injury, product and general liability claims, taxation
issues and environmental matters). Based on current known facts, aggregate
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reasonably possible (but not probable, and therefore, not recorded) losses in
excess of accruals for litigation contingencies are estimated to be $12 million.
If our assumptions or analyses regarding any of our contingencies are incorrect,
or if facts change, we could realize loss in excess of the recorded accruals
(and in excess of the $12 million referenced above) which could have a material
negative impact on our financial condition, results of operations, and cash
flows. For more information regarding our litigation contingencies, see   Note
14     Contingencies   on page 20 of the Notes to Consolidated Condensed
Financial Statements.

Climate Change

Change in Laws, Policies, and Regulations



Many scientists, legislators, and others attribute global warming to increased
levels of greenhouse gas emissions, including carbon dioxide, which has led to
significant legislative and regulatory efforts to limit such emissions. At
March 31, 2022, we had 130 production facilities worldwide. Most of our
facilities are engaged in manufacturing processes that produce greenhouse gas
emissions, including carbon dioxide. We also maintain a fleet of over-the-road
tractor trailers that emit greenhouse gases. Our manufacturing facilities are
primarily located in North America, Europe, and Asia. There continues to be a
lack of consistent climate legislation in the jurisdictions in which we operate,
which creates economic and regulatory uncertainty. To the extent our customers
are subject to any of these or other similarly proposed or newly enacted laws
and regulations, additional costs by customers to comply with such laws and
regulations could impact their ability to operate at similar levels in certain
jurisdictions, which could adversely impact their demand for our products and
services. Also, if these laws or regulations (including the Securities and
Exchange Commission's proposed rule regarding climate-related disclosures)
impose significant operational restrictions and compliance requirements on us,
they could increase costs associated with our operations, including costs for
raw materials and transportation. Non-compliance with climate change legislative
and regulatory requirements could also negatively impact our reputation. To
date, however, we have not experienced a material impact from climate change
legislative and regulatory efforts.

Indirect Consequences of Climate-Related Business Trends



Also, in 2020 and 2021, we experienced (due to severe weather impacts) supply
shortages in chemicals which restricted foam supply. The restriction of foam
supply constrained overall mattress production in the bedding industry and
reduced our production levels. The cost of chemicals and foam also increased due
to the shortages. Also, severe weather impacts could have a negative effect on
our customers' payments which could result in increased bad debt expense.

Physical Effects of Climate Change

We have experienced increased property insurance premiums, in part, due to enhanced weather-related risks, but this increase in premiums has not had a material impact on our results of operations or financial condition.

Compliance Costs Related to Climate Change



To date, we have not experienced a material increase in climate-related
compliance costs. However, evaluating opportunities to reduce our carbon
footprint, setting goals for carbon reduction, and measuring performance in
achieving those goals will be part of our environmental, sustainability, and
governance strategy moving forward. We are currently working on completing our
first greenhouse gas emissions inventory. Once complete, this baseline
measurement will inform a long-term greenhouse gas (GHG) reduction strategy,
including setting reduction targets and other key areas of performance. This
inventory, with a base year of 2019, will cover three years of data and include
Scope 1 and Scope 2 carbon dioxide equivalent emissions. The inventory will be
prepared consistent with the GHG Protocol Corporate Accounting and Reporting
Standard. We currently do not have an estimate of the capital expenditures or
operating costs that may be required to implement our GHG reduction strategies.

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 have a formal process in place for both incident response and
cybersecurity continuous improvement that includes a cross-functional
Cybersecurity Oversight Committee. Members of the Cybersecurity Oversight
Committee update the Board quarterly on cyber activity, with procedures in place
for interim reporting if necessary.
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Although we have not experienced any material cybersecurity incidents, we have
enhanced our cybersecurity protection efforts over the last few years. We use a
third party to periodically benchmark our information security program against
the National Institute of Standards and Technology's Cybersecurity Framework. We
provide quarterly cybersecurity training for employees with access to our email
and data systems, and we have purchased broad form cyber insurance coverage.
However, because of risk due to the COVID-19 pandemic regarding increased remote
access, remote work conditions, and associated strain on employees, technology
failures or cybersecurity breaches could still create system disruptions or
unauthorized disclosure of confidential information. We cannot be certain that
the attacker's capabilities will not compromise our technology protecting
information 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 remediation costs, increased cybersecurity
protection costs, lost revenues resulting from unauthorized use of proprietary
information, litigation and legal costs, increased insurance premiums,
reputational damage, damage to our competitiveness, and negative impact on stock
price and long-term shareholder value.

NEW ACCOUNTING STANDARDS

The FASB has issued accounting guidance effective for the current and future periods. See Note 2 Accounting Standards Updates to the Consolidated Condensed Financial Statements on page 7 for a more complete discussion.

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