Segment Reporting

6 Months Ended

Jun. 29, 2013

Segment Reporting

(14) Segment Reporting

The Company has two reportable operating segments: seating, which includes seats and related components, such as seat structures and mechanisms, seat covers, seat foam and headrests, and electrical power management systems (“EPMS”), which includes electrical distribution systems for both traditional powertrain vehicles, as well as high-power for hybrid and electric vehicles. Key components of electrical distribution systems include wiring harnesses, terminals and connectors, junction boxes, electronic control modules and wireless control devices, such as key fobs. 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 June 29, 2013
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	3,069.2	$	1,043.9	$	—		$	4,113.1
Segment earnings (1)		166.5		94.9		(60.2	)		201.2
Depreciation and amortization		44.1		23.1		1.8			69.0
Capital expenditures		80.1		43.2		4.4			127.7
Total assets		4,754.7		1,594.8		1,817.3			8,166.8

	Three Months Ended June 30, 2012
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,793.4	$	871.6	$	—		$	3,665.0
Segment earnings (1)		183.6		58.6		(52.2	)		190.0
Depreciation and amortization		35.7		18.7		2.2			56.6
Capital expenditures		60.3		47.8		2.0			110.1
Total assets		4,439.2		1,427.7		1,636.7			7,503.6

	Six Months Ended June 29, 2013
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	5,980.9	$	2,079.3	$	—		$	8,060.2
Segment earnings (1)		307.9		183.9		(116.4	)		375.4
Depreciation and amortization		86.7		45.0		3.7			135.4
Capital expenditures		147.6		73.5		5.3			226.4
Total assets		4,754.7		1,594.8		1,817.3			8,166.8

	Six Months Ended June 30, 2012
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	5,607.2	$	1,701.8	$	—		$	7,309.0
Segment earnings (1)		369.4		111.2		(103.8	)		376.8
Depreciation and amortization		69.2		36.9		4.2			110.3
Capital expenditures		102.7		73.2		4.5			180.4
Total assets		4,439.2		1,427.7		1,636.7			7,503.6

⁽¹⁾  See definition above.

For the three months ended June 29, 2013, segment earnings include restructuring charges of $3.7 million, $6.5 million and $4.0 million in the seating and EPMS segments and in the other category, respectively. For the six months ended June 29, 2013, segment earnings include restructuring charges of $18.9 million, $7.2 million and $5.1 million in the seating and EPMS segments and in the other category, respectively. For the three months ended June 30, 2012, segment earnings include restructuring charges of $2.4 million and $0.5 million in the seating and EPMS segments, respectively. For the six months ended June 30, 2012, segment earnings include restructuring charges of $6.3 million, $1.7 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				Six Months Ended
	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Segment earnings	$	201.2	$	190.0	$	375.4	$	376.8
Interest expense		17.4		14.0		34.1		26.5
Other expense, net		10.3		10.2		21.0		10.5
Consolidated income before provision for income taxes and equity in net income of affiliates	$	173.5	$	165.8	$	320.3	$	339.8