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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The following tables recap the components of stock-based and stock-related compensation for each period presented:
 
 Nine Months Ended 
 September 30, 2020		Nine Months Ended 
 September 30, 2019
To be settled with stockTo be settled in cashTo be settled with stockTo be settled in cash
Stock-based retirement plans contributions 1
$1.9 $.5 $2.6 $.5 
Discounts on various stock awards:
Deferred Stock Compensation Program1.6 — 1.6 — 
Stock-based retirement plans.9 — .9 — 
Discount Stock Plan.7 — .8 — 
Performance Stock Unit (PSU) awards: 2
     2018 and later PSU - TSR based 2A
2.4 (.5)2.2 1.5 
     2018 and later PSU - EBIT CAGR based 2B
(1.8)(1.9)2.7 3.1 
     2017 and prior PSU awards 2C
— .1 1.3 .2 
Restricted Stock Unit (RSU) awards 3
6.1 — 1.5 — 
Other, primarily non-employee directors restricted stock.9 — .9 — 
Total stock-related compensation expense (income)12.7 $(1.8)14.5 $5.3 
Employee contributions for above stock plans7.9 9.4 
Total stock-based compensation$20.6 $23.9 
Tax benefits on stock-based compensation expense$3.0 $3.4 
Tax benefits on stock-based compensation payments 2.2 3.5 
Total tax benefits associated with stock-based compensation$5.2 $6.9 

 Three Months EndedThree Months Ended 
September 30, 2020September 30, 2019
To be settled with stockTo be settled in cashTo be settled with stockTo be settled in cash
Stock-based retirement plans contributions 1
$1.9 $.3 $1.1 $.2 
Discounts on various stock awards:
Deferred Stock Compensation Program.7 — .5 — 
Stock-based retirement plans.5 — .4 — 
Discount Stock Plan.2 — .2 — 
Performance Stock Unit (PSU) awards: 2
     2018 and later PSU - TSR based 2A
.7 1.3 .7 .8 
     2018 and later PSU - EBIT CAGR based 2B
.1 .5 — .3 
     2017 and prior PSU awards 2C
— — .4 .4 
Restricted Stock Unit (RSU) awards 3
.7 — .5 — 
Other, primarily non-employee directors restricted stock.2 — .4 — 
Total stock-related compensation expense5.0 $2.1 4.2 $1.7 
Employee contributions for above stock plans2.7 3.2 
Total stock-based compensation$7.7 $7.4 
Tax benefits on stock-based compensation expense$1.2 $1.0 
Tax benefits on stock-based compensation payments .5 1.2 
Total tax benefits associated with stock-based compensation$1.7 $2.2 
1 Stock-Based Retirement Plans
Participant contributions: Participants in the Executive Stock Unit Program may contribute up to 10% (depending on certain qualifications) of their compensation above the threshold. Participant contributions are credited to a diversified investment account established for the participant, and are paid out in cash upon distribution from the program.
Company contributions: The first 50% match is automatic, and a second 50% match is made if certain profitability levels are obtained. Matching contributions to the plan, including dividend equivalents, are used to acquire stock units. Stock units are converted to common stock at a 1-to-1 ratio upon distribution from the program.


2 PSU Awards
2020 Changes to the PSU and RSU awards
In November 2019, the Compensation Committee approved changes to our PSU and RSU award programs for 2020. Changes to the plans for executive officers are as follows:
•Two-thirds of the target award value—granted as PSUs based on relative TSR and EBIT CAGR over a three-year performance period.
•One-third of the target award value—granted as RSUs vesting in one-third increments over three years.

During 2019, PSU awards were based on two equal measures: (i) Relative Total Shareholder Return (TSR = (Change in Stock Price + Dividends) ÷ Beginning Stock Price) and (ii) EBIT Compound Annual Growth Rate (EBIT CAGR). These components are discussed below.
We intend to pay 50% in shares of our common stock and 50% in cash; although, we reserve the right, subject to Compensation Committee approval, to pay up to 100% in cash.


 2A 2018 and later PSU - TSR based
Most of the 2018 and later PSU awards are based 50% upon our TSR compared to a peer group. A small number of PSU awards are based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies. Grant date fair values are amortized using the straight-line method over the three-year vesting period.
The relative TSR vesting condition of the 2018 and later PSU awards contains 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 TSR 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 300 companies). Participants will earn from 0% to 200% of the base award depending upon how our TSR ranks within the peer group at the end of the three-year performance period.

2B 2018 and later PSU - EBIT CAGR based
Most of the 2018 and later PSU awards are based 50% upon our or the applicable segment's EBIT CAGR. Grant date fair values are calculated using the grant date stock price discounted for dividends over the vesting period. Expense is adjusted every quarter over the three-year vesting period based on the number of shares expected to vest.
The EBIT CAGR portion of these awards contains the following conditions:
•A service requirement—Awards generally “cliff” vest three years following the grant date; and
•A performance condition—Awards are based on achieving specified EBIT CAGR performance targets for our or the applicable segment's EBIT during the third year of the performance period compared to the
EBIT during the fiscal year immediately preceding the performance period. Participants will earn from 0% to 200% of the base award.
In connection with the decision to move a significant portion of the long-term incentive opportunity from a two-year to a three-year performance period by eliminating PGI awards, in February 2018, we also granted participants a one-time transition PSU award, based upon EBIT CAGR over a two-year performance period. This award was paid in the first quarter 2020. Average payout percentage of base award was 114%, and the number of shares paid was .1. The cash portion payout was $4.1.

2C 2017 and prior PSU Awards
The 2017 and prior PSU awards were based solely on relative TSR. Vesting conditions were the same as (2A) above other than the maximum payout of 175% of the base award. The 2017 PSU award was paid out in the first quarter of 2020 as presented below.

Below is a summary of the number of shares and related grant date fair value of PSU’s for the periods presented:
 Nine Months Ended September 30,
20202019
TSR based
Total shares base award.1 .1 
Grant date per share fair value$38.23 $57.86 
Risk-free interest rate1.4 %2.4 %
Expected life in years3.03.0
Expected volatility (over expected life)24.0 %21.5 %
Expected dividend yield (over expected life)3.6 %3.4 %
EBIT CAGR based
Total shares base award .1 .1 
Grant date per share fair value$40.52 $39.98 
Vesting period in years3.03.0

Three-Year Performance Cycle
Award YearCompletion DateTSR Performance
Relative to the Peer Group (1%=Best)		Payout as a
Percent of the
Base Award		Number of Shares
Distributed		Cash PortionDistribution Date
2016December 31, 201878th percentile —%—$— First quarter 2019
2017December 31, 201963rd percentile 49.0%.1 million$1.6 First quarter 2020


3 RSU Awards

The RSU terms and conditions have been amended so that those who retire (1) after age 65 or (2) after the date where the participant’s age plus years of service are greater than or equal to 70 years, will continue to receive shares that will vest after the retirement date. Expense associated with these retirement-eligible employees will be recognized immediately at the RSU grant date. For those employees who become retirement eligible after the grant date, any remaining expense associated with those RSUs will be recognized at the date the employee meets the retirement-eligible criteria. For more information on the 2020 RSU award changes see the PSU section above.