Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Inventories

A summary of inventories is shown below (in millions):

December 31,	2018			2017
Raw materials	$	859.4		$	869.3
Work-in-process	104.6			120.8
Finished goods	346.0			324.8
Reserves	(113.2		)	(109.2		)
Inventories	$	1,196.8		$	1,205.7

Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements

The classification of recoverable customer E&D and tooling costs related to long-term supply agreements is shown below (in millions):

December 31,	2018		2017
Current	$	160.9	$	248.1
Long-term	80.4		59.3
Recoverable customer E&D and tooling	$	241.3	$	307.4

Property, Plant and Equipment

Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method as follows:

Buildings and improvements	10 to 40 years
Machinery and equipment	5 to 10 years

A summary of property, plant and equipment is shown below (in millions):

December 31,	2018			2017
Land	$	116.8		$	118.8
Buildings and improvements	809.3			797.7
Machinery and equipment	3,463.3			3,077.4
Construction in progress	389.3			355.6
Total property, plant and equipment	4,778.7			4,349.5
Less – accumulated depreciation	(2,180.6		)	(1,890.1		)
Net property, plant and equipment	$	2,598.1		$	2,459.4

Summary of Changes in Carrying Amount of Goodwill

A summary of the changes in the carrying amount of goodwill for each of the periods in the two years ended December 31, 2018, is shown below (in millions):

	Seating			E-Systems		Total
Balance as of December 31, 2016	$	1,091.2		$	30.1	$	1,121.3
Acquisitions	123.3			—		123.3
Affiliate transaction	—			94.4		94.4
Foreign currency translation and other	59.9			2.4		62.3
Balance as of December 31, 2017	1,274.4			126.9		1,401.3
Affiliate transaction	—			22.4		22.4
Foreign currency translation and other	(30.1		)	11.7		(18.4		)
Balance as of December 31, 2018	$	1,244.3		$	161.0	$	1,405.3

Summary of Finite-Lived Intangible Assets

A summary of intangible assets as of December 31, 2018 and 2017, is shown below (in millions):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Amortized intangible assets:
Technology	$	20.1	$	(11.8	)	$	8.3	8.5
Customer-based	533.4		(156.3		)	377.1		11.6
Other	1.4		(1.1		)	0.3		2.5
	$	554.9	$	(169.2	)	$	385.7	11.5
Unamortized intangible assets:
In-process research and development	10.8		$	—		$	10.8
Balance as of December 31, 2018	$	565.7	$	(169.2	)	$	396.5

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Technology	$	22.2	$	(9.3	)	$	12.9	8.6
Customer-based	544.6		(113.9		)	430.7		11.6
Other	1.4		(0.9		)	0.5		5.2
Balance as of December 31, 2017	$	568.2	$	(124.1	)	$	444.1	11.5

Summary of Indefinite-Lived Intangible Assets

A summary of intangible assets as of December 31, 2018 and 2017, is shown below (in millions):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Amortized intangible assets:
Technology	$	20.1	$	(11.8	)	$	8.3	8.5
Customer-based	533.4		(156.3		)	377.1		11.6
Other	1.4		(1.1		)	0.3		2.5
	$	554.9	$	(169.2	)	$	385.7	11.5
Unamortized intangible assets:
In-process research and development	10.8		$	—		$	10.8
Balance as of December 31, 2018	$	565.7	$	(169.2	)	$	396.5

Estimated Annual Intangible Asset Amortization Expense

Excluding the impact of any future acquisitions, the Company’s estimated annual amortization expense for the five succeeding years is shown below (in millions):

Year	Expense
2019	$	49.6
2020	47.9
2021	46.5
2022	45.8
2023	44.3

Summary of Other (Income) Expense, Net

A summary of other (income) expense, net is shown below (in millions):

For the year ended December 31,	2018			2017			2016
Other expense	$	43.8		$	57.2		$	76.4
Other income	(12.2		)	(61.3		)	(35.8		)
Other (income) expense, net	$	31.6		$	(4.1	)	$	40.6

Summary of Information Used to Compute Basic and Diluted Net Income Per Share

A summary of information used to compute basic and diluted net income per share available to Lear common stockholders is shown below (in millions, except share and per share data):

For the year ended December 31,	2018			2017			2016
Net income attributable to Lear	$	1,149.8		$	1,313.4		$	975.1
Less: Redeemable noncontrolling interest adjustment	(10.4		)	(25.5		)	—
Net income available to Lear common stockholders	$	1,139.4		$	1,287.9		$	975.1
Average common shares outstanding	65,672,164			68,542,363			72,345,436
Dilutive effect of common stock equivalents	489,652			735,618			779,513
Average diluted shares outstanding	66,161,816			69,277,981			73,124,949
Basic net income per share available to Lear common stockholders	$	17.35		$	18.79		$	13.48
Diluted net income per share available to Lear common stockholders	$	17.22		$	18.59		$	13.33