Supplemental Guarantor Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2013


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


December 31, 2012
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(in millions)
Assets
Current Assets:
Cash and cash equivalents	$	481.4	$	0.1	$	920.7	$	—		$	1,402.2
Accounts receivable		47.7		358.4		1,634.6		—			2,040.7
Inventories		5.2		264.3		457.6		—			727.1
Other		162.9		70.2		470.4		—			703.5

Total current assets		697.2		693.0		3,483.3		—			4,873.5

Long-Term Assets:
Property, plant and equipment, net		91.5		273.3		1,038.3		—			1,403.1
Goodwill		23.5		400.8		322.2		—			746.5
Investments in subsidiaries		1,494.7		1,504.2		—		(2,998.9	)		—
Intercompany accounts, net		1,471.3		—		—		(1,471.3	)		—
Other		769.9		67.5		333.6		—			1,171.0

Total long-term assets		3,850.9		2,245.8		1,694.1		(4,470.2	)		3,320.6

Total assets	$	4,548.1	$	2,938.8	$	5,177.4	$	(4,470.2	)	$	8,194.1


Liabilities and Equity
Current Liabilities:
Accounts payable and drafts	$	114.3	$	555.2	$	1,563.5	$	—		$	2,233.0
Accrued liabilities		124.7		192.8		666.4		—			983.9

Total current liabilities		239.0		748.0		2,229.9		—			3,216.9

Long-Term Liabilities:
Long-term debt		626.3		—		—		—			626.3
Intercompany accounts, net		—		447.6		1,023.7		(1,471.3	)		—
Other		195.7		179.5		363.5		—			738.7

Total long-term liabilities		822.0		627.1		1,387.2		(1,471.3	)		1,365.0

Equity:
Lear Corporation stockholders’ equity		3,487.1		1,563.7		1,435.2		(2,998.9	)		3,487.1
Noncontrolling interests		—		—		125.1		—			125.1

Equity		3,487.1		1,563.7		1,560.3		(2,998.9	)		3,612.2

Total liabilities and equity	$	4,548.1	$	2,938.8	$	5,177.4	$	(4,470.2	)	$	8,194.1

Schedule of Condensed Income Statement

Year Ended December 31, 2013
	Lear			Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	449.0		$	6,261.1		$	14,042.2		$	(4,518.3	)	$	16,234.0
Cost of sales		573.4			5,699.7			13,179.5			(4,518.3	)		14,934.3
Selling, general and administrative expenses		170.1			61.9			296.7			—			528.7
Intercompany operating (income) expense, net		(283.9	)		180.9			103.0			—			—
Amortization of intangible assets		1.7			4.7			28.0			—			34.4
Interest expense		52.0			19.3			(2.9	)		—			68.4
Other expense, net		6.5			7.6			44.0			—			58.1


Consolidated income (loss) before provision (benefit) for income taxes and equity in net income of affiliates and subsidiaries		(70.8	)		287.0			393.9			—			610.1
Provision (benefit) for income taxes		(33.9	)		113.6			113.0			—			192.7
Equity in net income of affiliates		0.7			(2.0	)		(37.1	)		—			(38.4	)
Equity in net income of subsidiaries		(469.0	)		(144.4	)		—			613.4			—


Consolidated net income		431.4			319.8			318.0			(613.4	)		455.8
Less: Net income attributable to noncontrolling interests		—			—			24.4			—			24.4


Net income attributable to Lear	$	431.4		$	319.8		$	293.6		$	(613.4	)	$	431.4


Consolidated comprehensive income	$	566.1		$	347.0		$	379.0		$	(700.1	)	$	592.0
Less: Comprehensive income attributable to noncontrolling interests		—			—			25.9			—			25.9


Comprehensive income attributable to Lear	$	566.1		$	347.0		$	353.1		$	(700.1	)	$	566.1


Year Ended December 31, 2012
	Lear			Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	483.7		$	5,850.1		$	12,484.6		$	(4,251.4	)	$	14,567.0
Cost of sales		555.6			5,295.3			11,750.0			(4,251.4	)		13,349.5
Selling, general and administrative expenses		213.8			38.0			227.5			—			479.3
Intercompany operating (income) expense, net		(247.9	)		118.3			129.6			—			—
Amortization of intangible assets		1.7			2.8			28.5			—			33.0
Interest expense		2.3			21.8			25.8			—			49.9
Other expense, net		2.9			2.4			1.1			—			6.4


Consolidated income (loss) before provision (benefit) for income taxes and equity in net income of affiliates and subsidiaries		(44.7	)		371.5			322.1			—			648.9
Provision (benefit) for income taxes		(724.5	)		(0.5	)		87.0			—			(638.0	)
Equity in net income of affiliates		(6.1	)		(3.6	)		(20.6	)		—			(30.3	)
Equity in net income of subsidiaries		(596.9	)		(182.6	)		—			779.5			—


Consolidated net income		1,282.8			558.2			255.7			(779.5	)		1,317.2
Less: Net income attributable to noncontrolling interests		—			—			34.4			—			34.4


Net income attributable to Lear	$	1,282.8		$	558.2		$	221.3		$	(779.5	)	$	1,282.8


Consolidated comprehensive income	$	1,314.0		$	607.8		$	259.1		$	(831.3	)	$	1,349.6
Less: Comprehensive income attributable to noncontrolling interests		—			—			35.6			—			35.6


Comprehensive income attributable to Lear	$	1,314.0		$	607.8		$	223.5		$	(831.3	)	$	1,314.0


Year Ended December 31, 2011
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	389.5		$	5,231.9		$	12,668.7		$	(4,133.6	)	$	14,156.5
Cost of sales		489.0			4,764.2			11,843.7			(4,133.6	)		12,963.3
Selling, general and administrative expenses		189.7			12.8			283.1			—			485.6
Intercompany operating (income) expense, net		(390.8	)		206.2			184.6			—			—
Amortization of intangible assets		1.7			—			26.3			—			28.0
Interest expense		—			24.5			15.2			—			39.7
Other expense, net		3.4			15.3			5.5			—			24.2


Consolidated income (loss) before provision (benefit) for income taxes and equity in net income of affiliates and subsidiaries		96.5			208.9			310.3			—			615.7
Provision (benefit) for income taxes		17.0			4.7			47.1			—			68.8
Equity in net income of affiliates		1.1			(3.0	)		(21.6	)		—			(23.5	)
Equity in net income of subsidiaries		(462.3	)		(257.6	)		—			719.9			—


Consolidated net income		540.7			464.8			284.8			(719.9	)		570.4
Less: Net income attributable to noncontrolling interests		—			—			29.7			—			29.7


Net income attributable to Lear	$	540.7		$	464.8		$	255.1		$	(719.9	)	$	540.7


Consolidated comprehensive income	$	286.7		$	383.8		$	179.9		$	(531.5	)	$	318.9
Less: Comprehensive income attributable to noncontrolling interests		—			—			32.2			—			32.2


Comprehensive income attributable to Lear	$	286.7		$	383.8		$	147.7		$	(531.5	)	$	286.7

Schedule of Condensed Cash Flow Statement

Year Ended December 31, 2013
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(in millions)
Net Cash Provided by Operating Activities	$	135.2		$	189.7		$	495.2		$	—	$	820.1


Cash Flows from Investing Activities:
Additions to property, plant and equipment		(17.9	)		(110.6	)		(332.1	)		—		(460.6	)
Insurance proceeds		—			—			7.1			—		7.1
Other, net		43.0			3.8			2.8			—		49.6

Net cash used in investing activities		25.1			(106.8	)		(322.2	)		—		(403.9	)


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		(58.4	)		—			—			—		(58.4	)
Dividends paid to noncontrolling interests		—			—			(44.0	)		—		(44.0	)
Change in intercompany accounts		349.7			(82.9	)		(266.8	)		—		—
Other, net		(3.9	)		—			(6.6	)		—		(10.5	)

Net cash used in financing activities		(298.2	)		(82.9	)		(317.4	)		—		(698.5	)


Effect of foreign currency translation		—			—			17.8			—		17.8

Net Change in Cash and Cash Equivalents		(137.9	)		—			(126.6	)		—		(264.5	)
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	$	343.5		$	0.1		$	794.1		$	—	$	1,137.7


Year Ended December 31, 2012
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(in millions)
Net Cash Provided by Operating Activities	$	(25.8	)	$	476.2		$	279.4		$	—	$	729.8


Cash Flows from Investing Activities:
Additions to property, plant and equipment		(11.3	)		(97.4	)		(349.6	)		—		(458.3	)
Insurance proceeds		—			—			19.2			—		19.2
Cash paid for acquisitions, net of cash acquired		(243.9	)		—			—			—		(243.9	)
Other, net		0.4			6.3			(11.6	)		—		(4.9	)

Net cash used in investing activities		(254.8	)		(91.1	)		(342.0	)		—		(687.9	)


Cash Flows from Financing Activities:
Repurchase of senior notes		(72.1	)		—			—			—		(72.1	)
Repurchase of common stock		(222.8	)		—			—			—		(222.8	)
Dividends paid to Lear Corporation stockholders		(54.6	)		—			—			—		(54.6	)
Dividends paid to noncontrolling interests		—			—			(23.1	)		—		(23.1	)
Change in intercompany accounts		297.3			(385.1	)		87.8			—		—
Other, net		(6.1	)		—			(17.4	)		—		(23.5	)

Net cash used in financing activities		(58.3	)		(385.1	)		47.3			—		(396.1	)


Effect of foreign currency translation		—			—			2.1			—		2.1

Net Change in Cash and Cash Equivalents		(338.9	)		—			(13.2	)		—		(352.1	)
Cash and Cash Equivalents as of Beginning of Period		820.3			0.1			933.9			—		1,754.3

Cash and Cash Equivalents as of End of Period	$	481.4		$	0.1		$	920.7		$	—	$	1,402.2


Year Ended December 31, 2011
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(in millions)
Net Cash Provided by Operating Activities	$	180.4		$	212.4		$	397.5		$	—	$	790.3


Cash Flows from Investing Activities:
Additions to property, plant and equipment		(10.5	)		(57.8	)		(261.2	)		—		(329.5	)
Insurance proceeds		—			—			3.5			—		3.5
Cash paid for acquisitions, net of cash acquired		—			—			(8.4	)		—		(8.4	)
Other, net		23.2			1.9			6.1			—		31.2

Net cash used in investing activities		12.7			(55.9	)		(260.0	)		—		(303.2	)


Cash Flows from Financing Activities:
Payment of debt issuance and other financing costs		(4.8	)		—			—			—		(4.8	)
Other long-term debt repayments, net		—			—			(1.1	)		—		(1.1	)
Short-term repayments, net		—			—			(4.0	)		—		(4.0	)
Repurchase of common stock		(279.1	)		—			—			—		(279.1	)
Dividends paid to Lear Corporation stockholders		(51.1	)		—			—			—		(51.1	)
Dividends paid to noncontrolling interests		—			—			(18.5	)		—		(18.5	)
Change in intercompany accounts		167.1			(156.8	)		(10.3	)		—		—
Other, net		(13.7	)		—			—			—		(13.7	)

Net cash used in financing activities		(181.6	)		(156.8	)		(33.9	)		—		(372.3	)


Effect of foreign currency translation		—			—			(14.6	)		—		(14.6	)

Net Change in Cash and Cash Equivalents		11.5			(0.3	)		89.0			—		100.2
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	$	820.3		$	0.1		$	933.9		$	—	$	1,754.3

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):


December 31,	2013		2012
Senior notes	$	1,057.1	$	626.3