Leggett & Platt Anticipates Unusual Non-Cash Tax Benefit in 4Q

Diversified manufacturer Leggett & Platt anticipates a fourth quarter unusual, non-cash net tax benefit of approximately $27 million, or $.18 per share. This benefit results primarily from the elimination of a valuation allowance on the company's Canadian deferred tax assets. Apart from this unusual tax benefit, the company's full year 2012 EPS guidance has not changed from the $1.45 - 1.52 issued in October. The tax benefit is expected to increase earnings per share by approximately $.18; as a result, full year 2012 EPS is now expected to be in the range of $1.63 - 1.70. Additionally, since this is a non-cash item, the company's expectation for operating cash has not changed. As previously stated, cash from operations for the year 2012 should exceed $350 million. Leggett & Platt has Canadian deferred tax assets comprised primarily of tax loss carryforwards. Due to uncertainty about whether they would ultimately be utilized to reduce future taxable earnings, a valuation allowance was previously recognized against those assets. Given the December enactment of new Canadian tax legislation and the amalgamation of its Canadian subsidiaries, the company now expects those tax loss carryforwards to be utilized in future years. As a result and in accordance with U.S. GAAP, the valuation allowance on those deferred tax assets has been eliminated. Fourth quarter results will be released after the market closes on Monday, February 4, 2013, with a conference call the next morning.