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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table recaps the impact of stock-based compensation on the results of operations for each of the periods presented:
| Nine Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2022
| To be settled with stock |  | To be settled in cash |  | To be settled with stock |  | To be settled in cash
Executive Stock Unit (ESU) program contributions | $ | 1.9 |  |  | $ | .5 |  |  | $ | 2.6 |  |  | $ | .6 |
Discounts on various stock awards: |  |  |  |  |  |  |
Deferred Stock Compensation Program | 1.1 |  |  | — |  |  | 1.2 |  |  | — |
ESU program | .8 |  |  | — |  |  | 1.0 |  |  | — |
Discount Stock Plan | .6 |  |  | — |  |  | .6 |  |  | — |
Performance Stock Unit (PSU) awards: 1 |  |  |  |  |  |  |
2023 PSU awards 1A | 1.0 |  |  | .8 |  |  | — |  |  | — |
2022 and prior PSU awards 1B | 1.2 |  |  | (.3) |  |  | 1.5 |  |  | (.4) |
Restricted Stock Unit (RSU) awards | 7.0 |  |  | — |  |  | 8.5 |  |  | — |
Other, primarily non-employee directors restricted stock | 1.3 |  |  | — |  |  | 1.4 |  |  | — |
Total stock-related compensation expense | 14.9 |  |  | $ | 1.0 |  |  | 16.8 |  |  | $ | .2 |
Employee contributions for above stock plans | 6.8 |  |  |  |  | 8.2 |  |  |
Total stock-based compensation | $ | 21.7 |  |  |  |  | $ | 25.0 |  |  |
Tax benefits on stock-based compensation expense | $ | 3.6 |  |  |  |  | $ | 4.1 |  |  |
Tax benefits on stock-based compensation payments | .3 |  |  |  |  | .6 |  |  |
Total tax benefits associated with stock-based compensation | $ | 3.9 |  |  |  |  | $ | 4.7 |  |  |
| Three Months Ended |  | Three Months Ended
| September 30, 2023 |  | September 30, 2022
| To be settled with stock |  | To be settled in cash |  | To be settled with stock |  | To be settled in cash
Executive Stock Unit (ESU) program contributions | $ | .1 |  |  | $ | .2 |  |  | $ | .4 |  |  | $ | .2 |
Discounts on various stock awards: |  |  |  |  |  |  |
Deferred Stock Compensation Program | .3 |  |  | — |  |  | .4 |  |  | — |
ESU program | .2 |  |  | — |  |  | .3 |  |  | — |
Discount Stock Plan | .2 |  |  | — |  |  | .2 |  |  | — |
Performance Stock Unit (PSU) awards: 1 |  |  |  |  |  |  |
2023 PSU awards 1A | .4 |  |  | .2 |  |  | — |  |  | — |
2022 and prior PSU awards 1B | (.1) |  |  | (.5) |  |  | (1.0) |  |  | (1.2) |
Restricted Stock Unit (RSU) awards | .9 |  |  | — |  |  | .9 |  |  | — |
Other, primarily non-employee directors restricted stock | .4 |  |  | — |  |  | .4 |  |  | — |
Total stock-related compensation expense | 2.4 |  |  | $ | (.1) |  |  | 1.6 |  |  | $ | (1.0) |
Employee contributions for above stock plans | 2.8 |  |  |  |  | 2.7 |  |  |
Total stock-based compensation | $ | 5.2 |  |  |  |  | $ | 4.3 |  |  |
Tax benefits on stock-based compensation expense | $ | .6 |  |  |  |  | $ | .4 |  |  |
Tax benefits on stock-based compensation payments | — |  |  |  |  | — |  |  |
Total tax benefits associated with stock-based compensation | $ | .6 |  |  |  |  | $ | .4 |  |  |
1 PSU Awards For the following programs, we intend to pay 50% in shares of our common stock and 50% in cash, although we reserve the right (subject to the Human Resources and Compensation (HRC) Committee's approval) to pay up to 100% in cash. Cash settlements are recorded as a liability and adjusted to fair value at each reporting period. 1A 2023 PSU Awards In March 2023, the HRC Committee amended the PSU award agreement. Following the amendment, the 2023 awards are based on two performance conditions as detailed below. The base payout percentage will be determined by the level of achievement of these performance conditions, and then adjusted by a payout multiplier based on our Total Shareholder Return (TSR) compared to a peer group. Participants will earn from 0% to 200% of the base award. Grant date fair values are calculated based on the grant date stock price and a Monte Carlo simulation of stock and volatility data for Leggett and each of the peer companies for the payout multiplier. Expense is adjusted every quarter over the three-year vesting period based on the number of shares expected to vest. The PSU awards contain the following conditions: •A service requirement—Awards generally "cliff" vest three years following the grant date. •Two performance conditions over the three-year performance period: ◦50% of the awards are based on Return on Invested Capital (ROIC). ROIC is calculated as our average annual net operating profit after tax divided by our average invested capital. ◦50% of the awards are based on achieving specified Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) performance targets. •A market condition—The payout multiplier is based upon our relative TSR compared to a group of peer companies during the three-year performance period. 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). The multiplier will increase or decrease the payout by up to 25%, not to exceed the maximum 200% payout, and may not increase the payout above 100% if our TSR is negative. 1B 2022 and Prior PSU Awards TSR Based Previous to 2023, PSU awards were based 50% upon our TSR compared to a peer group. A small number of PSU awards were based 100% upon relative TSR for certain business unit employees to complement their particular mix of incentive compensation. Grant date fair values were 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 component of the PSU awards contained the following conditions: •A service requirement—Awards generally “cliff” vest three years following the grant date. •A market condition—Awards are based on our TSR compared to the same peer group as noted above. 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. EBIT CAGR Based Previous to 2023, PSU awards were based 50% upon our, or the applicable profit center's, EBIT CAGR. Grant date fair values were 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 component of the PSU awards contained the following conditions: •A service requirement—Awards generally “cliff” vest three years following the grant date. •A performance condition—Awards are based on achieving specified EBIT CAGR targets for our, or the applicable profit center's, EBIT during the third year of the period compared to EBIT during the fiscal year immediately preceding the period. Participants will earn from 0% to 200% of the base award. Below is a summary of shares and grant date fair value related to PSU awards for the periods presented:
| Nine Months Ended September 30,
| 2023 |  | 2022
2023 awards and 2022 TSR Based award |  |  |
Total shares base award | .1 |  |  | .1 |
Grant date per share fair value | $ | 29.31 |  |  | $ | 41.13 |
Risk-free interest rate | 4.4 | % |  | 1.7 | %
Vesting period in years | 3.0 |  | 3.0
Expected volatility | 45.7 | % |  | 45.2 | %
Expected dividend yield | 5.5 | % |  | 4.6 | %
2022 EBIT CAGR Based award |  |  |
Total shares base award |  |  | .1 |
Grant date per share fair value |  |  | $ | 32.88 |
Vesting period in years |  |  | 3.0

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