Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jul. 01, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	July 1, 2017
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	352.7	$	0.3	$	813.7	$	—		$	1,166.7
Accounts receivable	398.7		268.3		2,690.7		—			3,357.7
Inventories	58.7		387.8		680.9		—			1,127.4
Intercompany accounts	70.2		159.8		—		(230.0		)	—
Other	132.8		25.8		531.5		—			690.1
Total current assets	1,013.1		842.0		4,716.8		(230.0		)	6,341.9
LONG-TERM ASSETS:
Property, plant and equipment, net	317.5		326.6		1,622.6		—			2,266.7
Goodwill	172.1		519.9		580.1		—			1,272.1
Investments in subsidiaries	4,609.7		1,801.5		—		(6,411.2		)	—
Intercompany loans receivable	1,000.9		1,142.8		107.6		(2,251.3		)	—
Other	509.5		132.9		738.1		(24.0		)	1,356.5
Total long-term assets	6,609.7		3,923.7		3,048.4		(8,686.5		)	4,895.3
Total assets	$	7,622.8	$	4,765.7	$	7,765.2	$	(8,916.5	)	$	11,237.2
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—	$	—	$	3.9	$	—		$	3.9
Accounts payable and drafts	391.8		568.7		2,242.4		—			3,202.9
Accrued liabilities	321.5		131.8		1,240.2		—			1,693.5
Intercompany accounts	—		—		230.0		(230.0		)	—
Current portion of long-term debt	40.6		—		1.4		—			42.0
Total current liabilities	753.9		700.5		3,717.9		(230.0		)	4,942.3
LONG-TERM LIABILITIES:
Long-term debt	1,873.0		—		4.1		—			1,877.1
Intercompany loans payable	1,105.1		63.7		1,082.5		(2,251.3		)	—
Other	268.9		10.5		406.2		(24.0		)	661.6
Total long-term liabilities	3,247.0		74.2		1,492.8		(2,275.3		)	2,538.7
EQUITY:
Lear Corporation stockholders’ equity	3,621.9		3,991.0		2,420.2		(6,411.2		)	3,621.9
Noncontrolling interests	—		—		134.3		—			134.3
Equity	3,621.9		3,991.0		2,554.5		(6,411.2		)	3,756.2
Total liabilities and equity	$	7,622.8	$	4,765.7	$	7,765.2	$	(8,916.5	)	$	11,237.2



	December 31, 2016
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	480.4	$	0.3	$	790.9	$	—		$	1,271.6
Accounts receivable	314.0		238.7		2,193.8		—			2,746.5
Inventories	67.9		364.7		588.0		—			1,020.6
Intercompany accounts	87.0		94.3		—		(181.3		)	—
Other	119.4		15.3		475.9		—			610.6
Total current assets	1,068.7		713.3		4,048.6		(181.3		)	5,649.3
LONG-TERM ASSETS:
Property, plant and equipment, net	309.4		313.4		1,396.5		—			2,019.3
Goodwill	172.1		519.9		429.3		—			1,121.3
Investments in subsidiaries	4,002.3		1,037.6		—		(5,039.9		)	—
Intercompany loans receivable	308.9		1,206.9		91.1		(1,606.9		)	—
Other	456.6		146.8		525.1		(17.8		)	1,110.7
Total long-term assets	5,249.3		3,224.6		2,442.0		(6,664.6		)	4,251.3
Total assets	$	6,318.0	$	3,937.9	$	6,490.6	$	(6,845.9	)	$	9,900.6
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—	$	—	$	8.6	$	—		$	8.6
Accounts payable and drafts	328.8		460.1		1,851.6		—			2,640.5
Accrued liabilities	228.6		197.5		1,071.5		—			1,497.6
Intercompany accounts	—		—		181.3		(181.3		)	—
Current portion of long-term debt	34.4		—		1.2		—			35.6
Total current liabilities	591.8		657.6		3,114.2		(181.3		)	4,182.3
LONG-TERM LIABILITIES:
Long-term debt	1,893.5		—		4.5		—			1,898.0
Intercompany loans payable	504.9		48.7		1,053.3		(1,606.9		)	—
Other	270.6		13.2		361.4		(17.8		)	627.4
Total long-term liabilities	2,669.0		61.9		1,419.2		(1,624.7		)	2,525.4
EQUITY:
Lear Corporation stockholders’ equity	3,057.2		3,218.4		1,821.5		(5,039.9		)	3,057.2
Noncontrolling interests	—		—		135.7		—			135.7
Equity	3,057.2		3,218.4		1,957.2		(5,039.9		)	3,192.9
Total liabilities and equity	$	6,318.0	$	3,937.9	$	6,490.6	$	(6,845.9	)	$	9,900.6

Schedule of Condensed Income Statement



	Three Months Ended July 1, 2017
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	882.3		$	1,318.8		$	4,445.0		$	(1,522.9	)	$	5,123.2
Cost of sales	889.0			1,126.9			4,052.4			(1,522.9		)	4,545.4
Selling, general and administrative expenses	78.5			7.3			71.4			—			157.2
Intercompany operating (income) expense, net	(76.6		)	67.1			9.5			—			—
Amortization of intangible assets	1.9			4.0			5.6			—			11.5
Interest expense	23.7			(0.8		)	(1.5		)	—			21.4
Other expense, net	1.8			0.6			3.4			—			5.8
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(36.0		)	113.7			304.2			—			381.9
Provision for income taxes	(10.4		)	36.1			47.6			—			73.3
Equity in net income of affiliates	(1.4		)	—			(17.0		)	—			(18.4		)
Equity in net income of subsidiaries	(336.1		)	(181.2		)	—			517.3			—
Consolidated net income	311.9			258.8			273.6			(517.3		)	327.0
Less: Net income attributable to noncontrolling interests	—			—			15.1			—			15.1
Net income attributable to Lear	$	311.9		$	258.8		$	258.5		$	(517.3	)	$	311.9

Consolidated comprehensive income	$	433.7		$	289.4		$	372.8		$	(644.9	)	$	451.0
Less: Comprehensive income attributable to noncontrolling interests	—			—			17.3			—			17.3
Comprehensive income attributable to Lear	$	433.7		$	289.4		$	355.5		$	(644.9	)	$	433.7



	Three Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	921.2		$	1,265.5		$	3,883.5		$	(1,345.4	)	$	4,724.8
Cost of sales	910.5			1,079.7			3,539.6			(1,345.4		)	4,184.4
Selling, general and administrative expenses	81.0			2.1			71.2			—			154.3
Intercompany operating (income) expense, net	(87.2		)	57.7			29.5			—			—
Amortization of intangible assets	2.0			4.0			7.3			—			13.3
Interest expense	23.1			(0.9		)	(1.9		)	—			20.3
Other (income) expense, net	9.5			0.2			(33.2		)	—			(23.5		)
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(17.7		)	122.7			271.0			—			376.0
Provision for income taxes	(7.1		)	41.8			66.3			—			101.0
Equity in net income of affiliates	(1.1		)	—			(18.4		)	—			(19.5		)
Equity in net income of subsidiaries	(291.9		)	(161.0		)	—			452.9			—
Consolidated net income	282.4			241.9			223.1			(452.9		)	294.5
Less: Net income attributable to noncontrolling interests	—			—			12.1			—			12.1
Net income attributable to Lear	$	282.4		$	241.9		$	211.0		$	(452.9	)	$	282.4

Consolidated comprehensive income	$	229.2		$	230.5		$	178.4		$	(399.6	)	$	238.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.3			—			9.3
Comprehensive income attributable to Lear	$	229.2		$	230.5		$	169.1		$	(399.6	)	$	229.2



	Six Months Ended July 1, 2017
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	1,794.6		$	2,598.6		$	8,699.9		$	(2,971.4	)	$	10,121.7
Cost of sales	1,803.5			2,209.1			7,920.2			(2,971.4		)	8,961.4
Selling, general and administrative expenses	151.9			15.2			145.8			—			312.9
Intercompany operating (income) expense, net	(191.2		)	138.5			52.7			—			—
Amortization of intangible assets	3.8			8.0			9.8			—			21.6
Interest expense	47.2			(2.0		)	(3.0		)	—			42.2
Other (income) expense, net	(4.4		)	(2.2		)	16.1			—			9.5
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(16.2		)	232.0			558.3			—			774.1
Provision for income taxes	(16.7		)	74.5			104.6			—			162.4
Equity in net income of affiliates	(2.0		)	—			(31.8		)	—			(33.8		)
Equity in net income of subsidiaries	(615.2		)	(329.8		)	—			945.0			—
Consolidated net income	617.7			487.3			485.5			(945.0		)	645.5
Less: Net income attributable to noncontrolling interests	—			—			27.8			—			27.8
Net income attributable to Lear	$	617.7		$	487.3		$	457.7		$	(945.0	)	$	617.7

Consolidated comprehensive income	$	842.0		$	565.6		$	640.4		$	(1,174.9	)	$	873.1
Less: Comprehensive income attributable to noncontrolling interests	—			—			31.1			—			31.1
Comprehensive income attributable to Lear	$	842.0		$	565.6		$	609.3		$	(1,174.9	)	$	842.0



	Six Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	1,847.8		$	2,482.9		$	7,724.7		$	(2,667.7	)	$	9,387.7
Cost of sales	1,833.0			2,113.2			7,033.1			(2,667.7		)	8,311.6
Selling, general and administrative expenses	157.4			4.5			141.4			—			303.3
Intercompany operating (income) expense, net	(203.0		)	118.1			84.9			—			—
Amortization of intangible assets	3.9			8.0			14.6			—			26.5
Interest expense	46.1			(1.7		)	(3.0		)	—			41.4
Other (income) expense, net	20.0			(0.4		)	(34.6		)	—			(15.0		)
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(9.6		)	241.2			488.3			—			719.9
Provision for income taxes	(3.6		)	89.5			113.3			—			199.2
Equity in net income of affiliates	(1.5		)	—			(34.8		)	—			(36.3		)
Equity in net income of subsidiaries	(535.3		)	(297.1		)	—			832.4			—
Consolidated net income	530.8			448.8			409.8			(832.4		)	557.0
Less: Net income attributable to noncontrolling interests	—			—			26.2			—			26.2
Net income attributable to Lear	$	530.8		$	448.8		$	383.6		$	(832.4	)	$	530.8

Consolidated comprehensive income	$	547.1		$	445.1		$	426.7		$	(848.2	)	$	570.7
Less: Comprehensive income attributable to noncontrolling interests	—			—			23.6			—			23.6
Comprehensive income attributable to Lear	$	547.1		$	445.1		$	403.1		$	(848.2	)	$	547.1

Schedule of Condensed Cash Flow Statement



	Six Months Ended July 1, 2017
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	143.0		$	246.0		$	520.8		$	(64.5	)	$	845.3
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(34.6		)	(67.1		)	(172.3		)	—			(274.0		)
Acquisition	—			—			(286.8		)	—			(286.8		)
Intercompany transactions	(463.1		)	64.1			(16.5		)	415.5			—
Other, net	(4.3		)	0.6			(1.8		)	—			(5.5		)
Net cash provided by (used in) investing activities	(502.0		)	(2.4		)	(477.4		)	415.5			(566.3		)
Cash Flows from Financing Activities:
Credit agreement repayments	(15.6		)	—			—			—			(15.6		)
Short-term borrowings, net	—			—			(4.9		)	—			(4.9		)
Repurchase of common stock	(239.7		)	—			—			—			(239.7		)
Dividends paid to Lear Corporation stockholders	(70.7		)	—			—			—			(70.7		)
Dividends paid to noncontrolling interests	—			—			(27.7		)	—			(27.7		)
Intercompany transactions	600.2			(243.6		)	(5.6		)	(351.0		)	—
Other, net	(42.9		)	—			(15.4		)	—			(58.3		)
Net cash provided by (used in) financing activities	231.3			(243.6		)	(53.6		)	(351.0		)	(416.9		)

Effect of foreign currency translation	—			—			33.0			—			33.0
Net Change in Cash and Cash Equivalents	(127.7		)	—			22.8			—			(104.9		)
Cash and Cash Equivalents as of Beginning of Period	480.4			0.3			790.9			—			1,271.6
Cash and Cash Equivalents as of End of Period	$	352.7		$	0.3		$	813.7		$	—		$	1,166.7



	Six Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	129.1		$	218.1		$	481.0		$	(10.6	)	$	817.6
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(31.6		)	(36.7		)	(113.4		)	—			(181.7		)
Intercompany transactions	88.2			34.9			(24.0		)	(99.1		)	—
Other, net	(4.0		)	0.6			53.9			—			50.5
Net cash provided by (used in) investing activities	52.6			(1.2		)	(83.5		)	(99.1		)	(131.2		)
Cash Flows from Financing Activities:
Credit agreement repayments	(9.4		)	—			—			—			(9.4		)
Short-term borrowings, net	—			—			5.2			—			5.2
Repurchase of common stock	(367.1		)	—			—			—			(367.1		)
Dividends paid to Lear Corporation stockholders	(47.0		)	—			—			—			(47.0		)
Dividends paid to noncontrolling interests	—			—			(14.3		)	—			(14.3		)
Intercompany transactions	286.6			(217.1		)	(179.2		)	109.7			—
Other, net	(50.7		)	—			(0.6		)	—			(51.3		)
Net cash provided by (used in) financing activities	(187.6		)	(217.1		)	(188.9		)	109.7			(483.9		)

Effect of foreign currency translation	—			—			(4.4		)	—			(4.4		)
Net Change in Cash and Cash Equivalents	(5.9		)	(0.2		)	204.2			—			198.1
Cash and Cash Equivalents as of Beginning of Period	526.4			0.3			669.9			—			1,196.6
Cash and Cash Equivalents as of End of Period	$	520.5		$	0.1		$	874.1		$	—		$	1,394.7

Long-Term Debt

A summary of long-term debt of Lear and the Guarantors on a combined basis is shown below (in millions):



	July 1, 2017			December 31, 2016
Credit agreement	$	451.8		$	467.1
Senior notes	1,461.8			1,460.8
	1,913.6			1,927.9
Less — Current portion	(40.6		)	(34.4		)
Long-term debt	$	1,873.0		$	1,893.5