Segment Reporting

9 Months Ended

Sep. 29, 2012

Segment Reporting

(15) Segment Reporting

The Company has two reportable operating segments: seating, which includes seat systems and related components, such as seat frames, recliner mechanisms, seat tracks, seat trim covers, headrests and seat foam, and electrical power management systems (“EPMS”), which includes wiring, connectors, junction boxes and various other components of electrical distribution systems for traditional powertrain vehicles, as well as for hybrid and electric vehicles. 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 (“segment earnings”) and (iii) cash flows, 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 September 29, 2012
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,661.6	$	877.0	$	—		$	3,538.6
Segment earnings (1)		154.8		65.2		(50.4	)		169.6
Depreciation and amortization		40.7		20.3		2.3			63.3
Capital expenditures		83.7		35.6		0.8			120.1
Total assets		4,414.6		1,476.8		1,570.9			7,462.3

	Three Months Ended October 1, 2011
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,687.8	$	772.2	$	—		$	3,460.0
Segment earnings (1)		169.9		40.6		(52.0	)		158.5
Depreciation and amortization		36.6		25.0		1.9			63.5
Capital expenditures		56.1		33.7		1.7			91.5
Total assets		3,919.4		1,313.5		1,983.0			7,215.9
	Nine Months Ended September 29, 2012
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	8,268.8	$	2,578.8	$	—		$	10,847.6
Segment earnings (1)		524.2		176.4		(154.2	)		546.4
Depreciation and amortization		109.9		57.2		6.5			173.6
Capital expenditures		186.4		108.8		5.3			300.5
Total assets		4,414.6		1,476.8		1,570.9			7,462.3
	Nine Months Ended October 1, 2011
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	8,272.7	$	2,375.3	$	—		$	10,648.0
Segment earnings (1)		601.8		133.2		(157.2	)		577.8
Depreciation and amortization		111.7		72.1		5.5			189.3
Capital expenditures		135.5		107.9		4.3			247.7
Total assets		3,919.4		1,313.5		1,983.0			7,215.9

⁽¹⁾  See definition above.

For the three months ended September 29, 2012, segment earnings include restructuring charges (credits) of $2.2 million, $0.8 million and ($0.1) million in the seating and EPMS segments and in the other category, respectively. For the nine months ended September 29, 2012, segment earnings include restructuring charges of $8.5 million, $2.4 million and $0.2 million in the seating and EPMS segments and in the other category, respectively. For the three months ended October 1, 2011, segment earnings include restructuring charges (credits) of $8.6 million, $0.8 million and ($0.1) million in the seating and EPMS segments and in the other category, respectively. For the nine months ended October 1, 2011, segment earnings include restructuring charges of $12.0 million and $1.9 million in the seating and EPMS segments, respectively. See Note 3, “Restructuring.”

A reconciliation of consolidated 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				Nine Months Ended
	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Segment earnings	$	169.6	$	158.5	$	546.4	$	577.8
Interest expense		13.7		10.9		40.2		24.9
Other expense, net		1.5		10.1		12.0		15.3
Consolidated income before provision for income taxes and equity in net income of affiliates	$	154.4	$	137.5	$	494.2	$	537.6