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Segment Reporting
 9 Months Ended
Sep. 28, 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 September 28, 2013  
     Seating      EPMS      Other     Consolidated  

Revenues from external customers

    $ 2,891.7       $ 1,026.0       $ —        $ 3,917.7   

Segment earnings (1)

      142.8         111.6         (61.4 )      193.0   

Depreciation and amortization

      46.7         24.1         2.1        72.9   

Capital expenditures

      67.3         33.9         1.6        102.8   

Total assets

      4,862.5         1,728.9         1,872.8        8,464.2   
     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   

 

     Nine Months Ended September 28, 2013  
     Seating      EPMS      Other     Consolidated  

Revenues from external customers

    $ 8,872.6       $ 3,105.3       $ —        $ 11,977.9   

Segment earnings (1)

      450.7         295.5         (177.8 )      568.4   

Depreciation and amortization

      133.4         69.2         5.7        208.3   

Capital expenditures

      214.8         107.4         7.0        329.2   

Total assets

      4,862.5         1,728.9         1,872.8        8,464.2   
     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   

 

(1)  See definition above.

For the three months ended September 28, 2013, segment earnings include restructuring charges of $10.9 million, $0.6 million and $0.2 million in the seating and EPMS segments and in the other category, respectively. For the nine months ended September 28, 2013, segment earnings include restructuring charges of $29.8 million, $7.8 million and $5.3 million in the seating and EPMS segments and in the other category, respectively. 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. 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      Nine Months Ended  
     September 28,
2013		      September 29,
2012		      September 28,
2013		      September 29,
2012		  

Segment earnings

    $ 193.0       $ 169.6       $ 568.4       $ 546.4   

Interest expense

      17.5         13.7         51.6         40.2   

Other expense, net

      16.8         1.5         37.8         12.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Consolidated income before provision for income taxes and equity in net income of affiliates

    $ 158.7       $ 154.4       $ 479.0       $ 494.2