Canadian tax change benefits L&P

Furniture Today Staff -- Furniture Today, January 21, 2013

CARTHAGE, Mo. - Components supplier Leggett & Platt said its upcoming fourth quarter earnings statement will include a non-cash tax benefit of about $27 million stemming from recent changes in Canadian tax laws.
     The company said the tax benefit, which is worth about 18 cents per share, is the result of the elimination of a valuation allowance on its deferred Canadian tax assets.
     The tax assets, also known as tax loss carryforwards, can be used to reduce future taxable earnings, but until the recent tax law changes, the company said it was uncertain if they could be utilized.
     Since the company now anticipates using the tax loss carryforwards, it eliminated the valuation allowance that had been recognized against those assets, in accordance with U.S. accounting rules.
     Leggett & Platt said its October earnings guidance for the 2012 calendar year remains unchanged at $1.45 to $1.52 per share, not including the tax benefit.
     Complete financial results for the fourth quarter and calendar year will be released on Feb. 4.