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


	Six Months Ended June 30,				Three Months Ended June 30,
	2011		2010		2011		2010
Stock-based compensation expense:
Amortization of the grant date fair value of stock options (1)	$	3.6	$	3.5	$	.8	$	.9
Stock-based retirement plans contributions (2)		3.5		3.6		1.4		1.3
Discounts on various stock awards:
Deferred Stock Compensation Program		.8		.6		.2		.1
Stock-based retirement plans		1.2		1.2		.3		.3
Discount Stock Plan		.4		.4		.2		.2
Performance Stock Unit awards (3)		3.6		3.8		1.8		1.9
Restricted Stock Unit awards		1.1		.8		.6		.4
Other, primarily non-employee directors restricted stock		.6		.8		.2		.2

Total stock-based compensation expense		14.8		14.7		5.5		5.3
Employee contributions for above stock plans		6.3		7.0		2.3		3.1

Total stock-based compensation	$	21.1	$	21.7	$	7.8	$	8.4

Recognized tax benefits on stock-based compensation expense	$	5.6	$	5.7	$	2.1	$	2.1

(1)	Stock Option Grants

Our most significant stock options are granted annually in the first quarter of each year on a discretionary basis to a broad group of employees.

In connection with the January 2010 grant, we gave most participants the choice to receive stock options or to receive a cash payment in the first quarter in lieu of options. The value of the cash alternative was equal to approximately one-half of the Black Scholes value of the option grant the employee would have otherwise received.

In January 2011, we offered two different option choice programs. One group of employees was offered the same option/cash choice as in 2010, with the cash alternative being equal to approximately one-half of the Black-Scholes value of the option grant foregone. Another group of employees, generally higher level employees, were offered a choice between stock options or restricted stock units (RSUs), on a ratio of four options foregone for every one RSU offered. The RSUs vest in one-third increments at 12 months, 24 months and 36 months after the date of grant.

The following table summarizes fair values calculated (and assumptions utilized) using the Black-Scholes option pricing model for all options granted in the periods presented. There were no material stock option grants during the second quarter of either year.


	Six Months Ended June 30,
	2011			2010
Options granted (in millions)		1.0			1.3
Aggregate grant date fair value	$	4.9		$	5.1
Weighted-average per share grant date fair value	$	4.91		$	4.08
Risk-free interest rate		2.7	%		3.1	%
Expected life in years		7.1			6.9
Expected volatility (over expected life)		33.3	%		33.2	%
Expected dividend yield (over expected life)		4.7	%		5.2	%
Cash payments to employees elected in lieu of options	$	.3		$	.6

(2)	Stock-Based Retirement Plans

We have two stock-based retirement plans: the tax-qualified Stock Bonus Plan (SBP) for non-highly compensated employees, and the non-qualified Executive Stock Unit Program (ESUP) for highly compensated employees. We make matching contributions to both plans. In addition to the automatic 50% match, we will make another matching contribution of up to 50% of the employee's contributions for the year if certain profitability levels as defined in the SBP and the ESUP are obtained.

SBP participants may direct their contributions into Company stock or several other investment options. Company matching contributions are invested in Company stock until the participant is vested. After vesting, the participant may re-direct company matching contributions into any of the investments offered under the plan.

Since April 1, 2011, ESUP participant contributions are credited to a diversified investment account consisting of various mutual funds and retirement target funds selected by the participant. At every bi-weekly contribution date, we add a premium contribution equal to 17.65% of the participant's contribution to the diversified investment accounts. Participants may change investment elections in the diversified investment accounts, but cannot purchase Company common stock or stock units in these accounts. All company matching contributions are credited to participant's accounts in the form of Company stock units. Participants may not diversify this portion of their accounts.

We have purchased investments intended to mirror the diversified investments selected by the participants that are a component of "Sundry" long-term assets in the accompanying Consolidated Condensed Balance Sheet. Investment experience of the actual funds, whether positive or negative, are eventually paid out in cash. All amounts deferred under this program are unfunded, unsecured obligations of the Company and are presented as a component of the "Other long-term liabilities" in the accompanying Consolidated Condensed Balance Sheet. Both the asset and liabilities associated with this program are presented in Note 11 and are adjusted to fair value at each reporting period.

We also grant Performance Stock Unit (PSU) awards in the first quarter of each year to selected officers and other key managers. These awards contain the following conditions:

Grant date fair values are calculated using a Monte Carlo simulation of stock and volatility data for Leggett and each of the comparator companies and are based upon assumptions similar to those used for stock options. Grant date fair values are amortized using the straight-line method over the three-year vesting period.

Below is a summary of the number of shares and related grant date fair value of PSU's for the periods presented. There were no PSU's granted during the second quarter of either year.

The three-year performance cycle of the 2008 award was completed on December 31, 2010. Our TSR performance, relative to the peer group, ranked among the top one-tenth of the S&P 500 companies; accordingly, participants earned 175% of the base award and .9 million shares were distributed in January 2011.

Beginning with the 2010 award (that will be settled in 2013), thirty-five percent (35%) of awards will be paid out in cash. We intend to pay out the remaining sixty-five percent (65%) in shares of our common stock, although we reserve the right to pay up to one hundred percent (100%) in cash. The 35% portion is recorded as a liability and is adjusted to fair value at each reporting period.