Segment Reporting

3 Months Ended

Mar. 30, 2013

Segment Reporting

(14) Segment Reporting

The Company has two reportable operating segments: seating, which includes seat systems and related components, such as seat structures and mechanisms, 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, being 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 March 30, 2013
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,911.7	$	1,035.4	$	—		$	3,947.1
Segment earnings (1)		141.4		89.0		(56.2	)		174.2
Depreciation and amortization		42.6		21.9		1.9			66.4
Capital expenditures		67.5		30.3		0.9			98.7
Total assets		4,744.1		1,565.0		2,515.1			8,824.2

	Three Months Ended March 31, 2012
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,813.8	$	830.2	$	—		$	3,644.0
Segment earnings (1)		185.8		52.6		(51.6	)		186.8
Depreciation and amortization		33.5		18.2		2.0			53.7
Capital expenditures		42.4		25.4		2.5			70.3
Total assets		4,247.9		1,389.3		1,898.8			7,536.0

⁽¹⁾  See definition above

For the three months ended March 30, 2013, segment earnings include restructuring charges of $15.2 million, $0.7 million and $1.1 million in the seating and EPMS segments and in the other category, respectively. For the three months ended March 31, 2012, segment earnings include restructuring charges of $3.7 million, $1.3 million and $0.2 million in the seating and EPMS segments and in the other category, respectively. See Note 2, “Restructuring.”

A reconciliation of 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
	March 30, 2013		March 31, 2012
Segment earnings	$	174.2	$	186.8
Interest expense		16.7		12.5
Other expense, net		10.7		0.3
Consolidated income before provision for income taxes and equity in net income of affiliates	$	146.8	$	174.0