Segment Reporting

The Company has two reportable operating segments: seating, which includes complete seat systems and all major seat components, including seat covers and surface materials such as leather and fabric, seat structures and mechanisms, seat foam and headrests, and E-Systems, which includes complete electrical distribution systems, electronic control modules and associated software and wireless communication modules. Key components in the electrical distribution system include wiring harnesses, terminals and connectors and junction boxes, including components for high power and hybrid electric systems. The other category includes unallocated costs related to corporate headquarters, regional headquarters and the elimination of intercompany activities, none of which meets the requirements for being classified as an operating segment.

The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before equity in net income of affiliates, interest expense and other expense, net, ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization.

A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions):



	Three Months Ended July 1, 2017
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	4,025.1	$	1,098.1	$	—		$	5,123.2
Segment earnings ⁽¹⁾	322.7		156.3		(69.9		)	409.1
Depreciation and amortization	71.5		29.4		3.7			104.6
Capital expenditures	94.7		54.0		4.5			153.2
Total assets	7,397.7		1,880.8		1,958.7			11,237.2



	Three Months Ended July 2, 2016
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	3,640.4	$	1,084.4	$	—		$	4,724.8
Segment earnings ⁽¹⁾	287.7		151.4		(66.3		)	372.8
Depreciation and amortization	64.6		26.9		3.0			94.5
Capital expenditures	61.9		24.4		7.3			93.6
Total assets	6,224.2		1,691.4		2,224.9			10,140.5



	Six Months Ended July 1, 2017
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	7,893.1	$	2,228.6	$	—		$	10,121.7
Segment earnings ⁽¹⁾	643.0		321.2		(138.4		)	825.8
Depreciation and amortization	136.5		57.7		7.3			201.5
Capital expenditures	177.4		83.5		13.1			274.0
Total assets	7,397.7		1,880.8		1,958.7			11,237.2



	Six Months Ended July 2, 2016
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	7,242.4	$	2,145.3	$	—		$	9,387.7
Segment earnings ⁽¹⁾	579.3		301.2		(134.2		)	746.3
Depreciation and amortization	125.9		53.0		5.8			184.7
Capital expenditures	124.3		44.6		12.8			181.7
Total assets	6,224.2		1,691.4		2,224.9			10,140.5


⁽¹⁾	See definition above.

For the three months ended July 1, 2017, segment earnings include restructuring charges of $9.6 million, $1.9 million and $11.6 million in the seating and E-Systems segments and in the other category, respectively. For the six months ended July 1, 2017, segment earnings include restructuring charges of $16.3 million, $3.6 million and $11.7 million in the seating and E-Systems segments and in the other category, respectively (Note 3, "Restructuring").

For the three months ended July 2, 2016, segment earnings include restructuring charges of $17.3 million, $7.7 million and $1.1 million in the seating and E-Systems segments and in the other category, respectively. For the six months ended July 2, 2016, segment earnings include restructuring charges of $23.0 million, $10.6 million and $2.7 million in the seating and E-Systems segments and in the other category, respectively (Note 3, "Restructuring").

A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions):



	Three Months Ended					Six Months Ended
	July 1, 2017		July 2, 2016			July 1, 2017		July 2, 2016
Segment earnings	$	409.1	$	372.8		$	825.8	$	746.3
Interest expense	21.4		20.3			42.2		41.4
Other (income) expense, net	5.8		(23.5		)	9.5		(15.0		)
Consolidated income before provision for income taxes and equity in net income of affiliates	$	381.9	$	376.0		$	774.1	$	719.9