Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 29, 2012

Schedule of Condensed Balance Sheet

	September 29, 2012
	Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	402.1		$	0.5	$	867.0	$	—		$	1,269.6
Accounts receivable		62.9			393.8		1,736.1		—			2,192.8
Inventories		5.8			271.3		486.3		—			763.4
Other		112.0			40.7		465.5		—			618.2
Total current assets		582.8			706.3		3,554.9		—			4,844.0
LONG-TERM ASSETS:
Property, plant and equipment, net		88.5			247.1		964.0		—			1,299.6
Goodwill		23.5			370.8		334.3		—			728.6
Investments in subsidiaries		1,169.0			1,235.7		—		(2,404.7	)		—
Other		108.2			57.3		424.6		—			590.1
Total long-term assets		1,389.2			1,910.9		1,722.9		(2,404.7	)		2,618.3
Total assets	$	1,972.0		$	2,617.2	$	5,277.8	$	(2,404.7	)	$	7,462.3
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	107.7		$	582.4	$	1,574.5	$	—		$	2,264.6
Accrued liabilities		99.4			169.7		764.0		—			1,033.1
Total current liabilities		207.1			752.1		2,338.5		—			3,297.7
LONG-TERM LIABILITIES:
Long-term debt		626.2			—		—		—			626.2
Intercompany accounts, net		(1,731.4	)		665.1		1,066.3		—			—
Other		202.7			181.1		352.4		—			736.2
Total long-term liabilities		(902.5	)		846.2		1,418.7		—			1,362.4
EQUITY:
Lear Corporation stockholders’ equity		2,667.4			1,018.9		1,385.8		(2,404.7	)		2,667.4
Noncontrolling interests		—			—		134.8		—			134.8
Equity		2,667.4			1,018.9		1,520.6		(2,404.7	)		2,802.2
Total liabilities and equity	$	1,972.0		$	2,617.2	$	5,277.8	$	(2,404.7	)	$	7,462.3

	December 31, 2011
	Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	820.3		$	1.4	$	932.6	$	—		$	1,754.3
Accounts receivable		56.4			299.1		1,524.6		—			1,880.1
Inventories		7.7			234.1		396.0		—			637.8
Other		99.4			18.4		371.5		—			489.3
Total current assets		983.8			553.0		3,224.7		—			4,761.5
LONG-TERM ASSETS:
Property, plant and equipment, net		90.2			164.5		817.3		—			1,072.0
Goodwill		23.5			303.9		301.2		—			628.6
Investments in subsidiaries		594.2			945.3		—		(1,539.5	)		—
Other		115.2			30.9		402.7		—			548.8
Total long-term assets		823.1			1,444.6		1,521.2		(1,539.5	)		2,249.4
Total assets	$	1,806.9		$	1,997.6	$	4,745.9	$	(1,539.5	)	$	7,010.9
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	92.2		$	473.7	$	1,448.4	$	—		$	2,014.3
Accrued liabilities		135.5			171.0		742.7		—			1,049.2
Total current liabilities		227.7			644.7		2,191.1		—			3,063.5
LONG-TERM LIABILITIES:
Long-term debt		695.4			—		—		—			695.4
Intercompany accounts, net		(1,754.6	)		675.2		1,079.4		—			—
Other		202.0			149.0		339.9		—			690.9
Total long-term liabilities		(857.2	)		824.2		1,419.3		—			1,386.3
EQUITY:
Lear Corporation stockholders’ equity		2,436.4			528.7		1,010.8		(1,539.5	)		2,436.4
Noncontrolling interests		—			—		124.7		—			124.7
Equity		2,436.4			528.7		1,135.5		(1,539.5	)		2,561.1
Total liabilities and equity	$	1,806.9		$	1,997.6	$	4,745.9	$	(1,539.5	)	$	7,010.9

Schedule of Condensed Income Statement

	For the Three Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	119.1		$	1,412.3		$	3,011.8		$	(1,004.6	)	$	3,538.6
Cost of sales		137.2			1,258.1			2,856.6			(1,004.6	)		3,247.3
Selling, general and administrative expenses		33.6			41.0			38.8			—			113.4
Amortization of intangible assets		0.3			0.9			7.1			—			8.3
Intercompany charges		0.5			0.3			(0.8	)		—			—
Interest expense		0.8			4.1			8.8			—			13.7
Other intercompany (income) expense, net		(74.6	)		52.1			22.5			—			—
Other expense, net		3.6			0.1			(2.2	)		—			1.5
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		17.7			55.7			81.0			—			154.4
Provision for income taxes		2.5			(1.2	)		28.0			—			29.3
Equity in net income of affiliates		4.5			(0.6	)		(6.9	)		—			(3.0	)
Equity in net income of subsidiaries		(110.7	)		(32.2	)		—			142.9			—
Consolidated net income		121.4			89.7			59.9			(142.9	)		128.1
Less: Net income attributable to noncontrolling interests		—			—			6.7			—			6.7
Net income attributable to Lear	$	121.4		$	89.7		$	53.2		$	(142.9	)	$	121.4
Consolidated comprehensive income	$	166.4		$	104.8		$	91.9		$	(188.8	)	$	174.3
Less: Comprehensive income attributable to noncontrolling interests		—			—			7.9			—			7.9
Comprehensive income attributable to Lear	$	166.4		$	104.8		$	84.0		$	(188.8	)	$	166.4

	For the Three Months Ended October 1, 2011
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	93.1		$	1,340.2		$	3,058.9		$	(1,032.2	)	$	3,460.0
Cost of sales		112.1			1,227.9			2,871.7			(1,032.2	)		3,179.5
Selling, general and administrative expenses		36.7			12.5			65.7			—			114.9
Amortization of intangible assets		0.3			0.1			6.7			—			7.1
Intercompany charges		0.5			0.3			(0.8	)		—			—
Interest expense		0.5			6.4			4.0			—			10.9
Other intercompany (income) expense, net		(78.3	)		46.9			31.4			—			—
Other expense, net		5.7			10.9			(6.5	)		—			10.1
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		15.6			35.2			86.7			—			137.5
Provision for income taxes		4.1			(0.2	)		27.1			—			31.0
Equity in net income of affiliates		5.1			0.7			(7.4	)		—			(1.6	)
Equity in net income of subsidiaries		(94.3	)		(15.7	)		—			110.0			—
Consolidated net income		100.7			50.4			67.0			(110.0	)		108.1
Less: Net income attributable to noncontrolling interests		—			—			7.4			—			7.4
Net income attributable to Lear	$	100.7		$	50.4		$	59.6		$	(110.0	)	$	100.7
Consolidated comprehensive income	$	(69.1	)	$	5.5		$	(57.6	)	$	59.9		$	(61.3	)
Less: Comprehensive income attributable to noncontrolling interests		—			—			7.8			—			7.8
Comprehensive income attributable to Lear	$	(69.1	)	$	5.5		$	(65.4	)	$	59.9		$	(69.1	)

	For the Nine Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	379.9		$	4,294.9		$	9,365.9		$	(3,193.1	)	$	10,847.6
Cost of sales		434.5			3,899.2			8,791.3			(3,193.1	)		9,931.9
Selling, general and administrative expenses		102.8			70.3			173.7			—			346.8
Amortization of intangible assets		0.9			1.4			20.2			—			22.5
Intercompany charges		3.6			1.3			(4.9	)		—			—
Interest expense		3.0			15.9			21.3			—			40.2
Other intercompany (income) expense, net		(255.3	)		168.9			86.4			—			—
Other expense, net		2.6			0.4			9.0			—			12.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		87.8			137.5			268.9			—			494.2
Provision for income taxes		8.4			0.3			91.7			—			100.4
Equity in net income of affiliates		(13.1	)		(2.0	)		(18.2	)		—			(33.3	)
Equity in net income of subsidiaries		(308.4	)		(143.3	)		—			451.7			—
Consolidated net income		400.9			282.5			195.4			(451.7	)		427.1
Less: Net income attributable to noncontrolling interests		—			—			26.2			—			26.2
Net income attributable to Lear	$	400.9		$	282.5		$	169.2		$	(451.7	)	$	400.9
Consolidated comprehensive income	$	434.6		$	324.6		$	186.7		$	(484.8	)	$	461.1
Less: Comprehensive income attributable to noncontrolling interests		—			—			26.5			—			26.5
Comprehensive income attributable to Lear	$	434.6		$	324.6		$	160.2		$	(484.8	)	$	434.6

	For the Nine Months Ended October 1, 2011
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	272.1		$	3,918.1		$	9,546.8		$	(3,089.0	)	$	10,648.0
Cost of sales		342.0			3,572.1			8,872.4			(3,089.0	)		9,697.5
Selling, general and administrative expenses		116.6			35.9			199.1			—			351.6
Amortization of intangible assets		0.9			0.3			19.9			—			21.1
Intercompany charges		3.2			1.2			(4.4	)		—			—
Interest expense		(0.5	)		18.0			7.4			—			24.9
Other intercompany (income) expense, net		(252.9	)		137.3			115.6			—			—
Other expense, net		(2.8	)		14.2			3.9			—			15.3
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		65.6			139.1			332.9			—			537.6
Provision for income taxes		12.6			2.4			75.7			—			90.7
Equity in net income of affiliates		8.3			(0.8	)		(17.1	)		—			(9.6	)
Equity in net income of subsidiaries		(389.5	)		(184.1	)		—			573.6			—
Consolidated net income		434.2			321.6			274.3			(573.6	)		456.5
Less: Net income attributable to noncontrolling interests		—			—			22.3			—			22.3
Net income attributable to Lear	$	434.2		$	321.6		$	252.0		$	(573.6	)	$	434.2
Consolidated comprehensive income	$	374.7		$	284.2		$	254.1		$	(514.1	)	$	398.9
Less: Comprehensive income attributable to noncontrolling interests		—			—			24.2			—			24.2
Comprehensive income attributable to Lear	$	374.7		$	284.2		$	229.9		$	(514.1	)	$	374.7

Schedule of Condensed Cash Flow Statement

	For the Nine Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	91.6		$	180.2		$	88.9		$	—	$	360.7
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(7.6	)		(74.5	)		(218.4	)		—		(300.5	)
Insurance proceeds		—			—			11.4			—		11.4
Cash paid for acquisitions, net of cash acquired		(246.1	)		—			—			—		(246.1	)
Other, net		0.5			3.8			(5.2	)		—		(0.9	)
Net cash used in investing activities		(253.2	)		(70.7	)		(212.2	)		—		(536.1	)
Cash Flows from Financing Activities:
Repurchase of senior notes		(72.1	)		—			—			—		(72.1	)
Repurchase of common stock		(172.6	)		—			—			—		(172.6	)
Dividends paid to Lear Corporation stockholders		(40.9	)		—			—			—		(40.9	)
Dividends paid to noncontrolling interests		—			—			(4.3	)		—		(4.3	)
Other		2.2			—			(17.6	)		—		(15.4	)
Change in intercompany accounts		26.8			(110.4	)		83.6			—		—
Net cash used in financing activities		(256.6	)		(110.4	)		61.7			—		(305.3	)
Effect of foreign currency translation		—			—			(4.0	)		—		(4.0	)
Net Change in Cash and Cash Equivalents		(418.2	)		(0.9	)		(65.6	)		—		(484.7	)
Cash and Cash Equivalents as of Beginning of Period		820.3			1.4			932.6			—		1,754.3
Cash and Cash Equivalents as of End of Period	$	402.1		$	0.5		$	867.0		$	—	$	1,269.6

	For the Nine Months Ended October 1, 2011
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	132.7		$	115.6		$	268.2		$	—	$	516.5
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(7.5	)		(48.5	)		(191.7	)		—		(247.7	)
Cash paid for acquisitions, net of cash acquired		—			—			(8.4	)				(8.4	)
Other, net		23.6			2.2			5.5			—		31.3
Net cash used in investing activities		16.1			(46.3	)		(194.6	)		—		(224.8	)
Cash Flows from Financing Activities:
Other long-term debt repayments, net		—			—			(1.1	)		—		(1.1	)
Short-term debt repayments, net		—			—			(4.2	)		—		(4.2	)
Payment of debt issuance costs		(4.8	)		—			—			—		(4.8	)
Repurchase of common stock		(194.2	)		—			—			—		(194.2	)
Dividends paid to Lear Corporation stockholders		(38.3	)		—			—			—		(38.3	)
Dividends paid to noncontrolling interests		—			—			(18.5	)		—		(18.5	)
Other		(3.5	)		—			0.1			—		(3.4	)
Change in intercompany accounts		84.0			(69.5	)		(14.5	)		—		—
Net cash used in financing activities		(156.8	)		(69.5	)		(38.2	)		—		(264.5	)
Effect of foreign currency translation		—			—			(4.8	)		—		(4.8	)
Net Change in Cash and Cash Equivalents		(8.0	)		(0.2	)		30.6			—		22.4
Cash and Cash Equivalents as of Beginning of Period		808.8			0.4			844.9			—		1,654.1
Cash and Cash Equivalents as of End of Period	$	800.8		$	0.2		$	875.5		$	—	$	1,676.5

Long-Term Debt of Lear and Guarantors

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

	September 29, 2012		December 31, 2011
Senior notes	$	626.2	$	695.4