XML 37 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Comprehensive Income and Equity
 6 Months Ended
Jun. 29, 2019
Equity [Abstract]  
Comprehensive Income and Equity Comprehensive Income and Equity
Comprehensive Income
Comprehensive income is defined as all changes in the Company’s net assets except changes resulting from transactions with stockholders. It differs from net income in that certain items recorded in equity are included in comprehensive income.
Accumulated Other Comprehensive Loss
A summary of changes, net of tax, in accumulated other comprehensive loss for the three and six months ended June 29, 2019, is shown below (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 29, 2019
 
June 29, 2019
Defined benefit plans:
 
 
 
Balance at beginning of period
$
(172.5
)
 
$
(172.8
)
Reclassification adjustments (net of tax expense of $— million and $0.4 million in the three and six months ended June 29, 2019, respectively)
1.6

 
3.2

Other comprehensive loss recognized during the period (net of tax impact of $— million in the three and six months ended June 29, 2019)
(3.0
)
 
(4.3
)
Balance at end of period
$
(173.9
)
 
$
(173.9
)
Derivative instruments and hedging:
 
 
 
Balance at beginning of period
$
(9.0
)
 
$
(9.7
)
Reclassification adjustments (net of tax benefit of $2.7 million and $4.8 million in the three and six months ended June 29, 2019, respectively)
(10.0
)
 
(17.1
)
Other comprehensive income recognized during the period (net of tax expense of $5.0 million and $7.3 million in the three and six months ended June 29, 2019, respectively)
17.8

 
25.6

Balance at end of period
$
(1.2
)
 
$
(1.2
)
Foreign currency translation:
 
 
 
Balance at beginning of period
$
(530.0
)
 
$
(523.3
)
Other comprehensive income recognized during the period (net of tax impact of $— million in the three and six months ended June 29, 2019)
6.9

 
0.2

Balance at end of period
$
(523.1
)
 
$
(523.1
)
 
 
 
 
Total accumulated other comprehensive loss
$
(698.2
)
 
$
(698.2
)

In the three months ended June 29, 2019, foreign currency translation adjustments are primarily related to the weakening of the Chinese renminbi relative to the U.S. dollar. In the six months ended June 29, 2019, foreign currency translation adjustments are primarily related to the weakening of the Euro relative to the U.S. dollar and include pretax gains of $0.1 million related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future.
A summary of changes, net of tax, in accumulated other comprehensive loss for the three and six months ended June 30, 2018, is shown below (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30, 2018
 
June 30, 2018
Defined benefit plans:
 
 
 
Balance at beginning of period
$
(181.7
)
 
$
(184.0
)
Reclassification adjustments (net of tax expense of $0.3 million and $0.6 million in the three and six months ended June 30, 2018, respectively)
1.1

 
2.4

Other comprehensive income recognized during the period (net of tax impact of $— million in the three and six months ended June 30, 2018)
2.2

 
3.2

Balance at end of period
$
(178.4
)
 
$
(178.4
)
Derivative instruments and hedging:
 
 
 
Balance at beginning of period
$
14.5

 
$
(22.9
)
Reclassification adjustments (net of tax benefit of $0.2 million and $0.9 million in the three and six months ended June 30, 2018, respectively)
(1.1
)
 
(3.5
)
Other comprehensive income (loss) recognized during the period (net of tax (benefit) expense of ($8.9) million and $2.1 million in the three and six months ended June 30, 2018, respectively)
(32.1
)
 
7.7

Balance at end of period
$
(18.7
)
 
$
(18.7
)
Foreign currency translation:
 
 
 
Balance at beginning of period
$
(213.6
)
 
$
(306.5
)
Other comprehensive loss recognized during the period (net of tax impact of $— million in the three and six months ended June 30, 2018)
(217.0
)
 
(124.1
)
Balance at end of period
$
(430.6
)
 
$
(430.6
)
 
 
 
 
Total accumulated other comprehensive loss
$
(627.7
)
 
$
(627.7
)

In the three and six months ended June 30, 2018, foreign currency translation adjustments are primarily related to weakening of the Euro, the Chinese renminbi and the Brazilian real relative to the U.S. dollar and include pretax losses of $0.6 million and $0.9 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future.
For further information regarding reclassification adjustments related to the Company's defined benefit plans, see Note 10, "Pension and Other Postretirement Benefit Plans." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 18, "Financial Instruments."
Lear Corporation Stockholders’ Equity
Common Stock Share Repurchase Program
On February 7, 2019, the Company's Board of Directors authorized an increase to the existing common stock share repurchase program authorization to $1.5 billion and extended the term of the program to December 31, 2021.
Share repurchases in the first six months of 2019 are shown below (in millions except for shares and per share amounts):
Six Months Ended
 
As of
June 29, 2019
 
June 29, 2019
Aggregate Repurchases (1)
 
Cash paid for Repurchases
 
Number of Shares
 
Average Price per Share (2)
 
Remaining Purchase Authorization
$
279.5

 
$
276.5

 
1,987,246
 
$
140.65

 
$
1,303.5

(1) Includes $83.0 million of repurchases made prior to the increased authorization
(2) Excludes commissions
Since the first quarter of 2011, the Company's Board of Directors has authorized $5.8 billion in share repurchases under the common stock share repurchase program. As of the end of the second quarter of 2019, the Company has repurchased, in aggregate, $4.5 billion of its outstanding common stock, at an average price of $89.31 per share, excluding commissions and related fees.
The Company may implement these share repurchases through a variety of methods, including, but not limited to, open market purchases, accelerated stock repurchase programs and structured repurchase transactions. The extent to which the Company will repurchase its outstanding common stock and the timing of such repurchases will depend upon its financial condition, prevailing market conditions, alternative uses of capital and other factors.
In addition to shares repurchased under the Company’s common stock share repurchase program described above, the Company classified shares withheld from the settlement of the Company’s restricted stock unit and performance share awards to cover tax withholding requirements as common stock held in treasury in the accompanying condensed consolidated balance sheets as of June 29, 2019 and December 31, 2018.
Quarterly Dividend
In the first half of 2019 and 2018, the Company’s Board of Directors declared quarterly cash dividends of $0.75 and $0.70 per share of common stock, respectively. Dividends declared and paid are shown below (in millions):
 
Six Months Ended
 
June 29, 2019
 
June 30, 2018
Dividends declared
$
94.6

 
$
94.7

Dividends paid
95.6

 
96.7


Dividends payable on common shares to be distributed under the Company’s stock-based compensation program and common shares contemplated as part of the Company’s emergence from Chapter 11 bankruptcy proceedings will be paid when such common shares are distributed.
Redeemable Noncontrolling Interest
In accordance with GAAP, the Company records redeemable noncontrolling interests at the greater of (1) the initial carrying amount adjusted for the noncontrolling interest holder’s share of total comprehensive income or loss and dividends ("noncontrolling interest carrying value") or (2) the redemption value as of and based on conditions existing as of the reporting date. Required redeemable noncontrolling interest adjustments are recorded as an increase to redeemable noncontrolling interests, with an offsetting adjustment to retained earnings. The redeemable noncontrolling interest is classified in mezzanine equity in the accompanying condensed consolidated balance sheets as of June 29, 2019 and December 31, 2018.
For further information related to the redeemable noncontrolling interest adjustment, see Note 14, "Net Income Per Share Attributable to Lear," as well as Note 5, "Investments in Affiliates and Other Related Party Transactions," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
Noncontrolling Interests
In the first six months of 2018, the Company gained control of an affiliate and acquired the outstanding non-controlling interest of another affiliate. For further information related to the affiliate transactions, see Note 5, "Investments in Affiliates and Other Related Party Transactions," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.