Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes China Withholding Tax Matters Three of the Company’s Chinese subsidiaries received formal tax assessments from local tax authorities in China (Zhaoqing, Jiaxing, and Wuxi) totaling approximately $24.5, in the aggregate, with each assessment relating to an alleged failure to satisfy beneficial owner requirements for purposes of applying reduced dividend withholding tax rates. The assessments assert that dividends paid by our Chinese subsidiaries to a non-Chinese parent within the Company’s organizational structure should have been subject to a 10% withholding tax rate rather than the 5% rate applied. Zhaoqing Assessment. On January 26, 2026, our subsidiary, Hong Kong Veilon Limited, received an assessment from the Zhaoqing High-tech Industrial Development Zone Tax Bureau associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $12.4. Our Zhaoqing branch made this payment in the second quarter of 2026 as guarantor to preserve the Company’s appeal rights. The matter has entered into the administrative appeal process, and litigation may occur if administrative remedies are exhausted. Jiaxing Assessment. On April 3, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wangjiangjing Tax Office, Xiuzhou District Tax Bureau, Jiaxing City associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $4.9. Our Jiaxing branch posted a guarantee in the second quarter of 2026 and the matter has now entered into the appeal process. Litigation may occur if administrative remedies are exhausted. Wuxi Assessment. On April 8, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wuxi Huishan District Tax Bureau – Luoshe Tax Branch associated with dividends it received covering the 2021 through 2025 tax periods. The assessment includes tax and penalties totaling approximately $7.2. Our Wuxi branch made this payment in the second quarter of 2026 as guarantor to preserve the Company's appeal rights. The matter has entered into the appeal process, and litigation may occur if administrative remedies are exhausted. Although the outcome is uncertain, we believe we have valid defenses and are now rigorously contesting each of the assessments through the administrative appeal process in China, and have not recorded any income tax expense associated with these matters. While we believe we will be successful, it is reasonably possible over the next 12 months we could incur additional income tax expense that could have a material negative effect on our results of operations or financial condition.
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