Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) LEGGETT & PLATT, INCORPORATED AND SUBSIDIARIES million.
During the last three years, the Company employed $393.0 million in cash (net of cash acquired) and issued .3 million shares or equivalents of common stock in acquisitions.
During 2002, seven businesses were acquired for $45.6 million in cash (net of cash acquired).
In addition, the Company assumed $2.5 million of acquisition companies’ debt and other liabilities.
Of the seven 2002 acquisitions, which should add about $70 million to annual revenue, two were made in Residential Furnishings, one in Commercial Fixturing & Components, one in Aluminum Products, two in Industrial Materials and one in Specialized Products.
Additional details of acquisitions are discussed in Note B of the Notes to Consolidated Financial Statements.
In 2002, the Company also acquired the rod mill and related assets of a bankrupt steel company, which purchase is included in expenditures for property, plant and equipment.
These assets are being refurbished to provide steel rod for the Industrial Materials segment.
Additions, by segment, to property, plant and equipment and purchases of long-lived assets are shown in Note K of the Notes to Consolidated Financial Statements.
Company purchases of its common stock (net of issuances) totaled $80.5 million in 2002, $51.3 million in 2001, and $49.2 million in 2000.
These purchases were made primarily for employee stock plans.
The Board of Directors annually authorizes management, at its discretion, to buy up to 2 million shares of Leggett stock for use in employee benefit plans or for other purposes.
This authorization is continuously replenished as shares acquired are reissued for benefit plans.
In addition, management is authorized, again at its discretion, to repurchase any shares issued in acquisitions.
At the end of the third quarter 2000, the Board of Directors authorized management to repurchase up to an additional 10 million shares of Leggett stock.
In August 2002, the Board of Directors continued this authorization for an additional period expiring in September 2003.
As of December 31, 2002 the Company had acquired approximately .4 million shares under such authorization.
No specific schedule of purchases has been established under this authorization.
The amount and timing of purchases will depend on availability of cash, economic and market conditions, acquisition activity and other factors.
Cash dividends on the Company’s common stock in the last three years totaled $267.4 million.
Over this three-year period, cash dividends per share have increased at an 11.6% compounded annual rate.
The Company’s guideline for dividend payout is approximately one-third of the prior threeyear’s average earnings.
As a percent of the prior three-year average earnings, cash dividends per share were 43.7% in 2002, 38.8% in 2001 and 31.4% in 2000.
As earnings recover, the Company expects to move back toward its 30-35% dividend payout target.
The following table summarizes the Company’s future contractual obligations and commercial commitments (amounts in millions):
## Table 0 ##
* Excluding $48.8 million of fair market value from interest rate swap agreements.
The long-term debt payment schedule presented above could be accelerated if the Company was not able to make its principal and interest payments when due, or satisfy certain debt covenants under its revolving credit agreements.
The Company believes it has sufficient ongoing cash flow and capital resources to satisfy these obligations and to maintain its required debt covenants.
RESULTS OF OPERATIONS DISCUSSION OF CONSOLIDATED RESULTS In 2002, earnings increased 24% on essentially flat same location sales.
Revenues totaled $4.27 billion, second only to the record set in 2000, and an increase of 3.8% from 2001.
Same location sales increased 0.7%, or $27 million, for the full year.
Earnings, at $1.17 per diluted share, were up $.23, or 24%, from last year's $.94.
Pretax restructuring costs were approximately $15 million in 2002, versus $18 million in 2001.
During 2001, sales were $4.11 billion, a decrease of 3.8% versus the record sales of $4.28 billion set in 2000, declining for just the second time in the Company's history as a public company.
Sales growth from acquisitions was more than offset by a 9.3% decline in same location sales, as decreased unit volumes from weak market demand continued to negatively impact all five business segments.
Earnings per diluted share, at $.94 were down $.38, or 29%, from $1.32 in 2000.
Deferred tax assets and (liabilities) included in the consolidated balance sheets are as follows:
## Table 1 ##
O—Segment Information Reportable segments are primarily based upon the Company’s management organizational structure.
This structure is generally focused on broad end-user markets for the Company’s diversified products.
Residential Furnishings derives its revenues from components for bedding, furniture and other furnishings, as well as related consumer products.
Commercial Fixturing & Components derives its revenues from retail store fixtures, displays and components for office and institutional furnishings.
Industrial Materials derives its revenues from drawn steel wire, specialty wire products and welded steel tubing sold to trade customers as well as other Leggett segments.
Specialized Products derives its revenues from automotive seating components, specialized machinery and equipment, and van interiors.
The accounting principles used in the preparation of the segment information are the same as used for the consolidated financial statements, except that the segment assets and income reflect the FIFO basis of accounting for inventory.
Certain inventories are accounted for using the LIFO basis in the consolidated financial statements.
The Company evaluates performance based on earnings from operations before interest and income taxes (EBIT).
Intersegment sales are made primarily at prices that approximate market-based selling prices.
Centrally incurred costs are allocated to the segments based on estimates of services used by the segment.
Certain general and administrative costs and miscellaneous corporate income and expense of the Company are allocated to the segments based on sales and EBIT.
These allocated corporate costs include depreciation and other costs and income related to assets that are not allocated or otherwise included in the segment assets.
The Company’s new role-based portfolio management as discussed in Note B does not impact its segment reporting structure under SFAS 131, which includes the four reportable segments described above.
These segments are comprised of 10 business groups (which are also reporting units for goodwill impairment testing purposes).
These business groups are currently comprised of 20 business units and over 160 production locations.
As part of the Company’s 2007 Strategic Plan, it adopted a role-based portfolio management approach and assigned different roles (Grow, Core, Fix or Divest) to each of its 20 business units based upon competitive advantages, strategic position and financial health.
Historically, the Company established goals and plans for the business units uniformly, with each business unit expected to grow revenue significantly.
The new role-based approach changes the expectations for the business units based on their assigned roles.
The Company’s reportable segments are based upon management organizational structure, including senior operating vice-presidents for each reportable segment.
The Company’s management structure has not changed as a result of the role-based approach.
The financial information regularly reviewed and used by the chief operating decision-maker and the Board of Directors to evaluate segment performance and allocate total resources has not changed.
In addition, the management incentive compensation for segment, group and unit managers is based upon budget achievement and return on capital employed of operations under their direct control as reported through the existing segment structure.
The new role-based approach is a supplemental tool used by management to ensure capital (not total resources) is efficiently allocated to the business units within the reportable segment structure.
The total amount of our unrecognized tax benefits at December 31, 2009, is $44.5, of which $28.2 ($24.9 continuing operations and $3.3 discontinued operations) would impact our effective tax rate, if recognized.
A reconciliation of the beginning and ending balance of our gross unrecognized tax benefits for the years 2009, 2008 and 2007 is as follows:
## Table 2 ##
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in the Consolidated Statements of Operations, which is consistent with prior reporting periods.
As of December 31, 2009, four tax years were subject to audit by the United States Internal Revenue Service (IRS), covering the years 2006 through 2009.
Amended federal returns have also been filed for 2005 and 2004 with refunds of $6.0 and $3.0 expected, respectively.
These return filings are also subject to review by the IRS, with the largest issue related to a research and development credit.
Additionally, six tax years were undergoing (or subject to) audit by the Canada Revenue Agency, covering the periods 2003 through 2008.
Examinations are in progress for each of these years and are at various stages of completion, but to date we are not aware of any material adjustments.
Lastly, various state and other foreign jurisdiction tax years remain open to examination as well, though we believe assessments (if any) would be immaterial to our consolidated financial statements.
We are not aware of any changes that would materially impact our tax expense for the increase or decrease in the total amount of unrecognized tax benefits within the next 12 months.
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities.
The major temporary differences that give rise to deferred tax assets or liabilities are as follows:
## Table 3 ##
PART II Three Primary Components of our Working Capital
## Table 4 ##
1 Days sales outstanding: ((beginning of year trade receivables + end of period trade receivables) ÷ 2) ÷ (net trade sales ÷ number of days in the period).2 Days inventory on hand: ((beginning of year inventory + end of period inventory) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period).3 Days payables outstanding: ((beginning of year accounts payable + end of period accounts payable) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period).4 2017 ratios have been retrospectively adjusted to reflect the adoption of ASU 2017-07 that resulted in reclassifications between "Cost of goods sold" and "Selling and administrative expenses" into "Other expense (income), net".
For further discussion see Note A to the Consolidated Financial Statements on page 72.
Trade Receivables - Our trade receivables increased $23 million at December 31, 2018 compared to the prior year primarily due to increased sales, acquisitions, and currency fluctuations.
Our sales to international customers, which are predominantly in the Specialized Products segment, continue to increase and typically have longer payment terms.
We do not believe that the increase in days sales outstanding is indicative of a deterioration of the creditworthiness of our customers, or is reasonably likely to materially impact our liquidity position.
Rather, we believe the increase is within a reasonable range of change caused by differences in the timing of sales and cash receipts.
We continue to look for ways to improve speed of customer payments, including third party programs with early payment incentives in certain circumstances.
Our provision expense for losses on trade accounts receivable has averaged $1 million for the last three years.
On the balance sheet, our allowance for doubtful accounts as a percentage of our net trade receivables has approximated 1% for the same time period.
We monitor all accounts for possible loss.
Although we recorded a $16 million reserve ($15 million on a note receivable and $1 million for a trade accounts receivable) regarding a customer in our Residential Products segment that is experiencing financial problems, we have experienced favorable trends in the number of trade accounts receivables monitored for possible loss or written-off over the last few years.
We obtain credit applications, credit reports, bank and trade references, and periodic financial statements from our customers to establish credit limits and terms as appropriate.
In cases where a customer’s payment performance or financial condition begins to deteriorate or in the event of a customer bankruptcy, we tighten our credit limits and terms and make appropriate reserves based on facts and circumstances for each individual customer.
Inventories - The increase in inventories of $63 million at December 31, 2018 compared to the prior year primarily reflects inflation, higher levels necessary to support sales growth, new programs and acquisitions.
Days inventory on hand of 65 days at the end of 2018 is within a reasonable historical range.
We believe we have established adequate reserves for any slower moving or obsolete inventories.
We continuously monitor our slower-moving and potentially obsolete inventory through reports on inventory quantities compared to sales within the previous 12 months.
We also utilize cycle counting programs and complete physical counts of our inventory.
When potential inventory obsolescence is indicated by these controls, we will take charges for write-downs to maintain an adequate level of reserves.
Additions to inventory reserves in 2018 were $10 million, which was slightly higher than our $8 million three-year average.
This increase is primarily associated with the 2018 Restructuring Plan.
Our reserve balances as a percentage of our 2018 year-end inventory were consistent with our historical average.
Accounts Payable - The increase in accounts payables of $35 million at December 31, 2018 compared to the prior year is primarily due to a focused effort on optimizing payment terms, increased purchases to support sales growth, and
$70 million.
Since that time, we have continued to experience issues related to customer requirements and the implementation of this contract and have periodically accrued additional reserves.
Consequently, we are continuing to monitor the scope, estimated costs, and viability of the program and the possibility of additional customer funding.
It is possible that we may have to record additional loss reserves in future periods, which could be material to our operating results.
However, we cannot make an estimate of the total expected costs at this time due to uncertainties inherent in the estimation process.
Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, net of state income taxes, increased segment operating profit by approximately $1.5 billion, $1.7 billion and $1.6 billion for 2016, 2015 and 2014.
The decrease in our consolidated net adjustments in 2016 compared to 2015 was primarily due to a decrease in profit booking rate adjustments at our MFC and Space Systems business segments, partially offset by an increase at our RMS business segment.
The increase in our consolidated net adjustments in 2015 compared to 2014 was primarily due to an increase in profit booking rate adjustments at our Space Systems and Aeronautics business segments, offset by a decrease in profit booking rate adjustments at our RMS and MFC business segments.
The consolidated net adjustments for 2016 are inclusive of approximately $530 million in unfavorable items, which include reserves for performance matters on an international program at RMS.
The consolidated net adjustments for 2015 are inclusive of approximately $550 million in unfavorable items, which include reserves for performance matters on an international program at RMS and on commercial satellite programs at Space Systems.
The consolidated net adjustments for 2014 are inclusive of approximately $535 million in unfavorable items, which include reserves recorded on certain training and logistics solutions programs at RMS and net warranty reserve adjustments for various programs (including JASSM and GMLRS) at MFC as described in the respective business segment’s results of operations below.
Aeronautics Our Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies.
Aeronautics’ major programs include the F-35 Lightning II Joint Strike Fighter, C-130 Hercules, F-16 Fighting Falcon, C-5M Super Galaxy and F-22 Raptor.
Aeronautics’ operating results included the following (in millions):

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="5"> Payments Due by Period</td></tr><tr><td> Contractual Obligations</td><td> Total</td><td> Less Than 1 Year</td><td> 2–3 Years</td><td> 4–5 Years</td><td> After 5 Years</td></tr><tr><td>Long-term debt*</td><td>$887.5</td><td>$127.7</td><td>$511.4</td><td>$106.3</td><td>$142.1</td></tr><tr><td>Operating leases</td><td>90.4</td><td>28.7</td><td>36.2</td><td>17.1</td><td>8.4</td></tr><tr><td>Other long-term obligations</td><td>38.2</td><td>—</td><td>12.2</td><td>4.5</td><td>21.5</td></tr><tr><td>Total contractual cash obligations</td><td>$1,016.1</td><td>$156.4</td><td>$559.8</td><td>$127.9</td><td>$172.0</td></tr></table>
<table><tr><td></td><td colspan="2">December 31</td></tr><tr><td></td><td>2008</td><td>2007</td></tr><tr><td>Other current assets</td><td>$27.2</td><td>$55.1</td></tr><tr><td>Sundry</td><td>10.6</td><td>9.4</td></tr><tr><td>Other current liabilities</td><td>-1.7</td><td>-1.8</td></tr><tr><td>Deferred income taxes</td><td>-17.2</td><td>-42.3</td></tr><tr><td></td><td>$18.9</td><td>$20.4</td></tr></table>
<table><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Unrecognized tax benefits, January 1</td><td>$32.1</td><td>$29.6</td><td>$25.5</td></tr><tr><td>Gross increases—tax positions in prior periods</td><td>6.9</td><td>4.8</td><td>1.3</td></tr><tr><td>Gross decreases—tax positions in prior periods</td><td>-2.6</td><td>-2.5</td><td>-2.5</td></tr><tr><td>Gross increases—current period tax positions</td><td>3.4</td><td>4.3</td><td>6.7</td></tr><tr><td>Change due to exchange rate fluctuations</td><td>2.2</td><td>-1.5</td><td>—</td></tr><tr><td>Settlements</td><td>-.5</td><td>-.3</td><td>-.3</td></tr><tr><td>Lapse of statute of limitations</td><td>-3.3</td><td>-2.3</td><td>-1.1</td></tr><tr><td>Unrecognized tax benefits, December 31</td><td>$38.2</td><td>$32.1</td><td>$29.6</td></tr><tr><td>Interest</td><td>5.4</td><td>5.3</td><td>4.2</td></tr><tr><td>Penalties</td><td>.9</td><td>1.0</td><td>1.0</td></tr><tr><td>Total reserve for tax contingencies, December 31</td><td>$44.5</td><td>$38.4</td><td>$34.8</td></tr></table>
<table><tr><td></td><td colspan="4">December 31</td></tr><tr><td></td><td colspan="2">2009</td><td colspan="2">2008</td></tr><tr><td></td><td>Assets</td><td>Liabilities</td><td>Assets</td><td>Liabilities</td></tr><tr><td>Property, plant and equipment</td><td>$47.2</td><td>$-98.0</td><td>$34.5</td><td>$-79.0</td></tr><tr><td>Inventories</td><td>1.9</td><td>-20.0</td><td>3.0</td><td>-20.4</td></tr><tr><td>Accrued expenses</td><td>107.0</td><td>-1.1</td><td>115.5</td><td>-.3</td></tr><tr><td>Net operating loss and tax credit carryforwards</td><td>80.2</td><td>—</td><td>67.7</td><td>—</td></tr><tr><td>Pension cost</td><td>16.0</td><td>-1.9</td><td>12.7</td><td>-1.9</td></tr><tr><td>Intangible assets</td><td>5.2</td><td>-98.8</td><td>4.3</td><td>-87.1</td></tr><tr><td>Uncertain tax positions</td><td>16.3</td><td>—</td><td>14.8</td><td>—</td></tr><tr><td>Other</td><td>8.9</td><td>-15.5</td><td>19.7</td><td>-18.3</td></tr><tr><td>Gross deferred tax assets (liabilities)</td><td>282.7</td><td>-235.3</td><td>272.2</td><td>-207.0</td></tr><tr><td>Valuation allowance</td><td>-67.0</td><td>—</td><td>-46.3</td><td>—</td></tr><tr><td>Total deferred taxes</td><td>$215.7</td><td>$-235.3</td><td>$225.9</td><td>$-207.0</td></tr><tr><td>Net deferred tax (liability) asset</td><td></td><td>$-19.6</td><td></td><td>$18.9</td></tr></table>
<table><tr><td></td><td colspan="3">Amount (in millions)</td><td></td><td colspan="3">Days</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Trade Receivables</td><td>$545</td><td>$522</td><td>$451</td><td>DSO<sup>1</sup></td><td>46</td><td>45</td><td>44</td></tr><tr><td>Inventories</td><td>$634</td><td>$571</td><td>$520</td><td>DIO<sup>2, 4</sup></td><td>65</td><td>65</td><td>66</td></tr><tr><td>Accounts Payable</td><td>$465</td><td>$430</td><td>$351</td><td>DPO<sup>3, 4</sup></td><td>48</td><td>47</td><td>42</td></tr></table>

Question: What do all Assets sum up, excluding those negative ones in 2009?
Answer: 498.4
Reasoning program: add(282.7,215.7)