XML 44 R30.htm IDEA: XBRL DOCUMENT v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Inventories A summary of inventories is shown below (in millions):
December 31,20222021
Raw materials$1,216.8 $1,171.0 
Work-in-process126.6 119.9 
Finished goods391.9 453.4 
Reserves(161.7)(172.4)
Inventories$1,573.6 $1,571.9 
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 31,20222021
Current$175.7 $207.4 
Long-term161.3 143.5 
Recoverable customer E&D and tooling$337.0 $350.9 
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 31,20222021
Land$104.6 $108.7 
Buildings and improvements868.6 850.3 
Machinery and equipment4,871.5 4,497.7 
Construction in progress378.0 345.6 
Total property, plant and equipment6,222.7 5,802.3 
Less – accumulated depreciation(3,368.7)(3,082.2)
Net property, plant and equipment$2,854.0 $2,720.1 
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, 2022, is shown below (in millions):
SeatingE-SystemsTotal
Balance as of December 31, 2020$1,268.8 $387.0 $1,655.8 
Foreign currency translation and other(19.5)21.6 2.1 
Balance as of December 31, 20211,249.3 408.6 1,657.9 
Acquisition27.9 — 27.9 
Foreign currency translation and other(16.1)(9.1)(25.2)
Balance as of December 31, 2022$1,261.1 $399.5 $1,660.6 
Summary of Finite-Lived Intangible Assets
A summary of intangible assets as of December 31, 2022, is shown below (in millions):
Gross Carrying
Value		Accumulated
Amortization		Net Carrying
Value		Weighted
Average Useful
Life (years)
Amortized intangible assets:
Customer-based$514.9 $(313.3)$201.6 11.7
Licensing agreements71.0 (52.0)19.0 5.0
Technology16.2 (1.7)14.5 13.3
Other0.4 (0.1)0.3 5.0
Balance as of December 31, 2022$602.5 $(367.1)$235.4 11.0
A summary of intangible assets as of December 31, 2021, is shown below (in millions):
Gross Carrying
Value		Accumulated
Amortization		Net Carrying
Value		Weighted
Average Useful
Life (years)
Amortized intangible assets:
Customer-based$534.4 $(277.6)$256.8 11.7
Licensing agreements70.9 (37.8)33.1 5.0
Technology21.8 (18.4)3.4 8.5
Other0.4 (0.1)0.3 5.0
627.5 (333.9)293.6 10.8
Unamortized intangible assets:
In-process research and development8.9 — 8.9 
Balance as of December 31, 2021$636.4 $(333.9)$302.5 
Summary of Indefinite-Lived Intangible Assets
A summary of intangible assets as of December 31, 2022, is shown below (in millions):
Gross Carrying
Value		Accumulated
Amortization		Net Carrying
Value		Weighted
Average Useful
Life (years)
Amortized intangible assets:
Customer-based$514.9 $(313.3)$201.6 11.7
Licensing agreements71.0 (52.0)19.0 5.0
Technology16.2 (1.7)14.5 13.3
Other0.4 (0.1)0.3 5.0
Balance as of December 31, 2022$602.5 $(367.1)$235.4 11.0
A summary of intangible assets as of December 31, 2021, is shown below (in millions):
Gross Carrying
Value		Accumulated
Amortization		Net Carrying
Value		Weighted
Average Useful
Life (years)
Amortized intangible assets:
Customer-based$534.4 $(277.6)$256.8 11.7
Licensing agreements70.9 (37.8)33.1 5.0
Technology21.8 (18.4)3.4 8.5
Other0.4 (0.1)0.3 5.0
627.5 (333.9)293.6 10.8
Unamortized intangible assets:
In-process research and development8.9 — 8.9 
Balance as of December 31, 2021$636.4 $(333.9)$302.5 
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):
YearExpense
2023$60.6 
202447.9 
202521.1 
202620.7 
202720.3 
Schedule of Accrued Liabilities
A summary of accrued liabilities as of December 31, 2022 and 2021, is shown below (in millions):
December 31,20222021
Compensation and employee benefits$404.3 $353.8 
Income and other taxes payable300.3 290.7 
Current portion of lease obligations136.8 125.6 
Other1,120.1 1,036.6 
Accrued liabilities$1,961.5 $1,806.7 
Summary of Other (Income) Expense, Net A summary of other expense, net is shown below (in millions):
For the year ended December 31,202220212020
Other expense$57.2 $65.4 $72.2 
Other income(10.8)(65.3)(17.0)
Other expense, net$46.4 $0.1 $55.2 
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 attributable to Lear is shown below (in millions, except share and per share data):
For the year ended December 31,202220212020
Net income attributable to Lear$327.7 $373.9 $158.5 
Average common shares outstanding59,674,48860,082,83360,254,380
Dilutive effect of common stock equivalents246,041337,651175,582
Average diluted shares outstanding59,920,52960,420,48460,429,962
Basic net income per share attributable to Lear $5.49 $6.22 $2.63 
Diluted net income per share attributable to Lear $5.47 $6.19 $2.62