STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Activity

The following table recaps the components of stock-based and stock-related compensation for each period presented:

	Six Months Ended   June 30, 2016				Six Months Ended   June 30, 2015
	To be settled with stock		To be settled in cash		To be settled with stock		To be settled in cash
Options:
Amortization of the grant date fair value	$	1.0	$	—	$	.2	$	—
Cash payments in lieu of options	—		1.0		—		1.0
Stock-based retirement plans contributions	3.5		.7		3.9		.7
Discounts on various stock awards:
Deferred Stock Compensation Program	1.1		—		1.1		—
Stock-based retirement plans	.7		—		.7		—
Discount Stock Plan	.5		—		.5		—
Performance Stock Unit awards (1)	2.5		4.4		3.3		5.8
Restricted Stock Unit awards	1.4		—		1.7		—
Profitable Growth Incentive awards (2)	2.5		2.0		3.9		3.7
Other, primarily non-employee directors restricted stock	.7		—		.7		—
Total stock-related compensation expense	13.9		$	8.1	16.0		$	11.2
Employee contributions for above stock plans	7.9				7.4
Total stock-based compensation	$	21.8			$	23.4
Tax benefits on stock-based compensation expense	$	5.1			$	6.1
Tax benefits on stock-based compensation payments (See Note 2)	8.3				—
Total tax benefits associated with stock-based compensation	$	13.4			6.1

	Three Months Ended					Three Months Ended
	June 30, 2016					June 30, 2015
	To be settled with stock		To be settled in cash			To be settled with stock		To be settled in cash
Options:
Amortization of the grant date fair value	$	.1	$	—		$	.1	$	—
Cash payments in lieu of options	—		(.1		)	—		—
Stock-based retirement plans contributions	1.7		.3			1.7		.3
Discounts on various stock awards:
Deferred Stock Compensation Program	.5		—			.5		—
Stock-based retirement plans	.3		—			.3		—
Discount Stock Plan	.2		—			.2		—
Performance Stock Unit awards (1)	1.3		2.2			1.7		2.9
Restricted Stock Unit awards	.7		—			.8		—
Profitable Growth Incentive awards (2)	.9		.8			2.0		2.0
Other, primarily non-employee directors restricted stock	.3		—			.3		—
Total stock-related compensation expense	6.0		$	3.2		7.6		$	5.2
Employee contributions for above stock plans	3.4					3.6
Total stock-based compensation	$	9.4				$	11.2
Tax benefits on stock-based compensation expense	$	2.2				$	2.9
Tax benefits on stock-based compensation payments (See Note 2)	2.5					—
Total tax benefits associated with stock-based compensation	$	4.7				$	2.9

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

(1) Performance Stock Unit Awards

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

• A service requirement—Awards generally “cliff” vest three years following the grant date; and

• A market condition—Awards are based on our Total Shareholder Return [TSR = (Change in Stock Price + Dividends) / Beginning Stock Price] as compared to the TSR of a group of peer companies. The peer group consists of all the companies in the Industrial, Materials and Consumer Discretionary sectors of the S&P 500 and S&P Midcap 400 (approximately 320 companies). Participants will earn from 0% to 175% of the base award depending upon how our Total Shareholder Return ranks within the peer group at the end of the 3-year performance period.

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

Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented.

	Six Months Ended June 30,
	2016			2015
Total shares base award	.1			.2
Grant date per share fair value	$	40.16		$	42.22
Risk-free interest rate	1.3		%	1.1		%
Expected life in years	3.0			3.0
Expected volatility (over expected life)	19.2		%	19.8		%
Expected dividend yield (over expected life)	3.1		%	2.9		%

Three-Year Performance Cycle
Award Year	Completion Date	TSR Performance Relative to the  Peer Group (1%=Best)	Payout as a Percent of the Base Award	Number of Shares Distributed	Cash Portion		Distribution Date
2012	December 31, 2014	30th percentile	157.0%	.4 million	$	9.9	January 2015
2013	December 31, 2015	27th percentile	165.4%	.4 million	$	8.5	January 2016

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

(2) Profitable Growth Incentive Awards

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

Two-Year Performance Cycle
Award Year	Completion Date	Average Payout as a Percent of the Base Award	Number of  Shares Distributed	Cash Portion		Distribution Date
2013	December 31, 2014	127.0%	.1 million	$	3.5	February 2015
2014	December 31, 2015	224.7%	.2 million	$	6.7	February 2016

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

	Six Months Ended June 30,
	2016			2015
Total shares base award	.1			.2
Grant date per share fair value	$	40.16		$	42.22
Risk-free interest rate	1.3		%	1.1		%
Expected life in years	3.0			3.0
Expected volatility (over expected life)	19.2		%	19.8		%
Expected dividend yield (over expected life)	3.1		%	2.9		%

Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Performance Based Units

Three-Year Performance Cycle
Award Year	Completion Date	TSR Performance Relative to the  Peer Group (1%=Best)	Payout as a Percent of the Base Award	Number of Shares Distributed	Cash Portion		Distribution Date
2012	December 31, 2014	30th percentile	157.0%	.4 million	$	9.9	January 2015
2013	December 31, 2015	27th percentile	165.4%	.4 million	$	8.5	January 2016