Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 28, 2014

Text Block [Abstract]

Schedule of Condensed Balance Sheet

	June 28, 2014
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	166.1	$	—	$	699.0	$	—		$	865.1
Accounts receivable		70.4		613.5		2,380.5		—			3,064.4
Inventories		3.2		315.0		563.4		—			881.6
Other		162.5		70.2		484.5		—			717.2
Total current assets		402.2		998.7		4,127.4		—			5,528.3
LONG-TERM ASSETS:
Property, plant and equipment, net		93.2		319.1		1,242.0		—			1,654.3
Goodwill		23.5		401.0		330.2		—			754.7
Investments in subsidiaries		1,908.2		2,008.5		—		(3,916.7	)		—
Intercompany accounts, net		1,528.7		—		—		(1,528.7	)		—
Other		590.6		58.3		375.6		—			1,024.5
Total long-term assets		4,144.2		2,786.9		1,947.8		(5,445.4	)		3,433.5
Total assets	$	4,546.4	$	3,785.6	$	6,075.2	$	(5,445.4	)	$	8,961.8
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	103.9	$	733.4	$	1,983.8	$	—		$	2,821.1
Accrued liabilities		111.5		186.3		1,025.5		—			1,323.3
Total current liabilities		215.4		919.7		3,009.3		—			4,144.4
LONG-TERM LIABILITIES:
Long-term debt		1,068.6		—		—		—			1,068.6
Intercompany accounts, net		—		650.2		878.5		(1,528.7	)		—
Other		116.6		141.9		269.1		—			527.6
Total long-term liabilities		1,185.2		792.1		1,147.6		(1,528.7	)		1,596.2
EQUITY:
Lear Corporation stockholders’ equity		3,145.8		2,073.8		1,842.9		(3,916.7	)		3,145.8
Noncontrolling interests		—		—		75.4		—			75.4
Equity		3,145.8		2,073.8		1,918.3		(3,916.7	)		3,221.2
Total liabilities and equity	$	4,546.4	$	3,785.6	$	6,075.2	$	(5,445.4	)	$	8,961.8

	December 31, 2013
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	343.5	$	0.1	$	794.1	$	—		$	1,137.7
Accounts receivable		41.2		349.7		1,887.4		—			2,278.3
Inventories		4.8		297.9		516.0		—			818.7
Other		147.7		77.3		462.8		—			687.8
Total current assets		537.2		725.0		3,660.3		—			4,922.5
LONG-TERM ASSETS:
Property, plant and equipment, net		95.5		316.0		1,175.7		—			1,587.2
Goodwill		23.5		401.0		332.7		—			757.2
Investments in subsidiaries		1,802.4		1,878.5		—		(3,680.9	)		—
Intercompany accounts, net		1,373.1		—		—		(1,373.1	)		—
Other		591.5		71.5		401.0		—			1,064.0
Total long-term assets		3,886.0		2,667.0		1,909.4		(5,054.0	)		3,408.4
Total assets	$	4,423.2	$	3,392.0	$	5,569.7	$	(5,054.0	)	$	8,330.9
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	73.8	$	582.4	$	1,782.5	$	—		$	2,438.7
Accrued liabilities		127.9		156.1		856.4		—			1,140.4
Total current liabilities		201.7		738.5		2,638.9		—			3,579.1
LONG-TERM LIABILITIES:
Long-term debt		1,057.1		—		—		—			1,057.1
Intercompany accounts, net		—		515.2		857.9		(1,373.1	)		—
Other		118.5		143.0		283.7		—			545.2
Total long-term liabilities		1,175.6		658.2		1,141.6		(1,373.1	)		1,602.3
EQUITY:
Lear Corporation stockholders’ equity		3,045.9		1,995.3		1,685.6		(3,680.9	)		3,045.9
Noncontrolling interests		—		—		103.6		—			103.6
Equity		3,045.9		1,995.3		1,789.2		(3,680.9	)		3,149.5
Total liabilities and equity	$	4,423.2	$	3,392.0	$	5,569.7	$	(5,054.0	)	$	8,330.9

Schedule of Condensed Income Statement

	For the Three Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	127.7		$	1,815.2		$	3,894.6		$	(1,252.4	)	$	4,585.1
Cost of sales		177.3			1,662.9			3,618.2			(1,252.4	)		4,206.0
Selling, general and administrative expenses		52.8			14.7			70.5			—			138.0
Intercompany operating (income) expense, net		(119.0	)		69.6			49.4			—			—
Amortization of intangible assets		0.4			1.2			6.7			—			8.3
Interest expense		10.7			6.4			(2.5	)		—			14.6
Other expense, net		2.6			0.7			13.5			—			16.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		2.9			59.7			138.8			—			201.4
Provision for income taxes		1.3			22.9			28.6			—			52.8
Equity in net income of affiliates		0.5			—			(9.7	)		—			(9.2	)
Equity in net income of subsidiaries		(147.4	)		(81.0	)		—			228.4			—
Consolidated net income		148.5			117.8			119.9			(228.4	)		157.8
Less: Net income attributable to noncontrolling interests		—			—			9.3			—			9.3
Net income attributable to Lear	$	148.5		$	117.8		$	110.6		$	(228.4	)	$	148.5
Consolidated comprehensive income	$	154.5		$	121.7		$	122.0		$	(234.7	)	$	163.5
Less: Comprehensive income attributable to noncontrolling interests		—			—			9.0			—			9.0
Comprehensive income attributable to Lear	$	154.5		$	121.7		$	113.0		$	(234.7	)	$	154.5

	For the Three Months Ended June 29, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	125.6		$	1,615.8		$	3,537.8		$	(1,166.1	)	$	4,113.1
Cost of sales		144.2			1,479.3			3,318.0			(1,166.1	)		3,775.4
Selling, general and administrative expenses		38.3			14.2			75.4			—			127.9
Intercompany operating (income) expense, net		(70.1	)		33.1			37.0			—			—
Amortization of intangible assets		0.4			1.2			7.0			—			8.6
Interest expense		9.1			8.8			(0.5	)		—			17.4
Other expense, net		1.8			0.3			8.2			—			10.3
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		1.9			78.9			92.7			—			173.5
Provision for income taxes		4.2			28.7			8.2			—			41.1
Equity in net income of affiliates		(0.7	)		(0.4	)		(8.8	)		—			(9.9	)
Equity in net income of subsidiaries		(138.9	)		(43.4	)		—			182.3			—
Consolidated net income		137.3			94.0			93.3			(182.3	)		142.3
Less: Net income attributable to noncontrolling interests		—			—			5.0			—			5.0
Net income attributable to Lear	$	137.3		$	94.0		$	88.3		$	(182.3	)	$	137.3
Consolidated comprehensive income	$	108.4		$	70.2		$	82.3		$	(147.2	)	$	113.7
Less: Comprehensive income attributable to noncontrolling interests		—			—			5.3			—			5.3
Comprehensive income attributable to Lear	$	108.4		$	70.2		$	77.0		$	(147.2	)	$	108.4

	For the Six Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	230.8		$	3,449.8		$	7,685.7		$	(2,421.4	)	$	8,944.9
Cost of sales		330.6			3,146.9			7,149.2			(2,421.4	)		8,205.3
Selling, general and administrative expenses		115.4			20.0			139.3			—			274.7
Intercompany operating (income) expense, net		(248.2	)		139.3			108.9			—			—
Amortization of intangible assets		0.8			2.4			13.6			—			16.8
Interest expense		24.2			11.2			(4.0	)		—			31.4
Other expense, net		19.9			0.4			25.7			—			46.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(11.9	)		129.6			253.0			—			370.7
Provision for income taxes		(5.3	)		53.1			57.7			—			105.5
Equity in net income of affiliates		0.6			(0.5	)		(21.3	)		—			(21.2	)
Equity in net income of subsidiaries		(277.7	)		(133.0	)		—			410.7			—
Consolidated net income		270.5			210.0			216.6			(410.7	)		286.4
Less: Net income attributable to noncontrolling interests		—			—			15.9			—			15.9
Net income attributable to Lear	$	270.5		$	210.0		$	200.7		$	(410.7	)	$	270.5
Consolidated comprehensive income	$	267.5		$	215.0		$	206.4		$	(407.6	)	$	281.3
Less: Comprehensive income attributable to noncontrolling interests		—			—			13.8			—			13.8
Comprehensive income attributable to Lear	$	267.5		$	215.0		$	192.6		$	(407.6	)	$	267.5

	For the Six Months Ended June 29, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	247.2		$	3,143.5		$	6,975.1		$	(2,305.6	)	$	8,060.2
Cost of sales		297.3			2,866.2			6,552.2			(2,305.6	)		7,410.1
Selling, general and administrative expenses		78.7			31.9			146.9			—			257.5
Intercompany operating (income) expense, net		(124.4	)		64.4			60.0			—			—
Amortization of intangible assets		0.8			2.4			14.0			—			17.2
Interest expense		24.1			12.1			(2.1	)		—			34.1
Other expense, net		6.2			0.8			14.0			—			21.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(35.5	)		165.7			190.1			—			320.3
Provision for income taxes		(12.4	)		60.6			30.8			—			79.0
Equity in net income of affiliates		(0.7	)		(0.1	)		(17.1	)		—			(17.9	)
Equity in net income of subsidiaries		(268.2	)		(85.9	)		—			354.1			—
Consolidated net income		245.8			191.1			176.4			(354.1	)		259.2
Less: Net income attributable to noncontrolling interests		—			—			13.4			—			13.4
Net income attributable to Lear	$	245.8		$	191.1		$	163.0		$	(354.1	)	$	245.8
Consolidated comprehensive income	$	194.3		$	184.1		$	131.9		$	(301.9	)	$	208.4
Less: Comprehensive income attributable to noncontrolling interests		—			—			14.1			—			14.1
Comprehensive income attributable to Lear	$	194.3		$	184.1		$	117.8		$	(301.9	)	$	194.3

Schedule of Condensed Cash Flow Statement

	For the Six Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	25.8		$	16.7		$	132.5		$	—	$	175.0
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(4.6	)		(37.5	)		(147.0	)		—		(189.1	)
Other, net		(2.5	)		14.9			(27.3	)		—		(14.9	)
Net cash used in investing activities		(7.1	)		(22.6	)		(174.3	)		—		(204.0	)
Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes		325.0			—			—			—		325.0
Repurchase of senior notes		(327.1	)		—			—			—		(327.1	)
Payment of debt issuance and other financing costs		(3.8	)		—			—			—		(3.8	)
Repurchase of common stock		(156.0	)		—			—			—		(156.0	)
Dividends paid to Lear Corporation stockholders		(33.6	)		—			—			—		(33.6	)
Dividends paid to noncontrolling interests		—			—			(6.8	)		—		(6.8	)
Other		(20.4	)		—			(17.8	)		—		(38.2	)
Change in intercompany accounts		19.8			5.8			(25.6	)		—		—
Net cash used in financing activities		(196.1	)		5.8			(50.2	)		—		(240.5	)
Effect of foreign currency translation		—			—			(3.1	)		—		(3.1	)
Net Change in Cash and Cash Equivalents		(177.4	)		(0.1	)		(95.1	)		—		(272.6	)
Cash and Cash Equivalents as of Beginning of Period		343.5			0.1			794.1			—		1,137.7
Cash and Cash Equivalents as of End of Period	$	166.1		$	—		$	699.0		$	—	$	865.1

	For the Six Months Ended June 29, 2013
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	(3.5	)	$	143.0		$	125.9		$	—	$	265.4
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(6.9	)		(58.5	)		(161.0	)		—		(226.4	)
Insurance proceeds		—			—			7.1			—		7.1
Other, net		46.9			0.1			(6.4	)		—		40.6
Net cash used in investing activities		40.0			(58.4	)		(160.3	)		—		(178.7	)
Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes		500.0			—			—			—		500.0
Repurchase of senior notes		(72.1	)		—			—			—		(72.1	)
Payment of debt issuance and other financing costs		(13.4	)		—			—			—		(13.4	)
Repurchase of common stock		(1,000.1	)		—			—			—		(1,000.1	)
Dividends paid to Lear Corporation stockholders		(29.6	)		—			—			—		(29.6	)
Dividends paid to noncontrolling interests		—			—			(14.8	)		—		(14.8	)
Other		(2.7	)		—			(6.6	)		—		(9.3	)
Change in intercompany accounts		254.6			(84.6	)		(170.0	)		—		—
Net cash used in financing activities		(363.3	)		(84.6	)		(191.4	)		—		(639.3	)
Effect of foreign currency translation		—			—			(8.5	)		—		(8.5	)
Net Change in Cash and Cash Equivalents		(326.8	)		—			(234.3	)		—		(561.1	)
Cash and Cash Equivalents as of Beginning of Period		481.4			0.1			920.7			—		1,402.2
Cash and Cash Equivalents as of End of Period	$	154.6		$	0.1		$	686.4		$	—	$	841.1

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):

	June 28, 2014		December 31, 2013
Senior notes	$	1,068.6	$	1,057.1