Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 29, 2014


	March 29, 2014
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	220.7	$	0.1	$	698.6	$	—		$	919.4
Accounts receivable		67.5		555.8		2,404.5		—			3,027.8
Inventories		4.4		313.5		554.1		—			872.0
Other		151.2		70.0		520.6		—			741.8

Total current assets		443.8		939.4		4,177.8		—			5,561.0

LONG-TERM ASSETS:
Property, plant and equipment, net		93.0		321.8		1,220.5		—			1,635.3
Goodwill		23.5		401.0		331.1		—			755.6
Investments in subsidiaries		1,926.0		1,966.6		—		(3,892.6	)		—
Intercompany accounts, net		1,493.8		—		—		(1,493.8	)		—
Other		585.6		70.2		390.5		—			1,046.3

Total long-term assets		4,121.9		2,759.6		1,942.1		(5,386.4	)		3,437.2

Total assets	$	4,565.7	$	3,699.0	$	6,119.9	$	(5,386.4	)	$	8,998.2


LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	122.7	$	672.5	$	2,086.8	$	—		$	2,882.0
Accrued liabilities		123.4		182.3		981.7		—			1,287.4

Total current liabilities		246.1		854.8		3,068.5		—			4,169.4

LONG-TERM LIABILITIES:
Long-term debt		1,068.6		—		—		—			1,068.6
Intercompany accounts, net		—		545.2		948.6		(1,493.8	)		—
Other		108.7		142.0		267.0		—			517.7

Total long-term liabilities		1,177.3		687.2		1,215.6		(1,493.8	)		1,586.3

EQUITY:
Lear Corporation stockholders’ equity		3,142.3		2,157.0		1,735.6		(3,892.6	)		3,142.3
Noncontrolling interests		—		—		100.2		—			100.2

Equity		3,142.3		2,157.0		1,835.8		(3,892.6	)		3,242.5

Total liabilities and equity	$	4,565.7	$	3,699.0	$	6,119.9	$	(5,386.4	)	$	8,998.2


	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


	For the Three Months Ended March 29, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)

Net sales	$	103.1		$	1,634.6		$	3,791.1		$	(1,169.0	)	$	4,359.8

Cost of sales		153.3			1,484.0			3,531.0			(1,169.0	)		3,999.3
Selling, general and administrative expenses		62.6			5.3			68.8			—			136.7
Intercompany operating (income) expense, net		(129.2	)		69.7			59.5			—			—
Amortization of intangible assets		0.4			1.2			6.9			—			8.5
Interest expense		13.5			4.8			(1.5	)		—			16.8
Other expense, net		17.3			(0.3	)		12.2			—			29.2


Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(14.8	)		69.9			114.2			—			169.3
Provision for income taxes		(6.6	)		30.2			29.1			—			52.7
Equity in net income of affiliates		0.1			(0.5	)		(11.6	)		—			(12.0	)
Equity in net income of subsidiaries		(130.3	)		(52.0	)		—			182.3			—

Consolidated net income		122.0			92.2			96.7			(182.3	)		128.6
Less: Net income attributable to noncontrolling interests		—			—			6.6			—			6.6


Net income attributable to Lear	$	122.0		$	92.2		$	90.1		$	(182.3	)	$	122.0


Consolidated comprehensive income	$	113.0		$	93.3		$	84.4		$	(172.9	)	$	117.8
Less: Comprehensive income attributable to noncontrolling interests		—			—			4.8			—			4.8


Comprehensive income attributable to Lear	$	113.0		$	93.3		$	79.6		$	(172.9	)	$	113.0


	For the Three Months Ended March 30, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)

Net sales	$	121.6		$	1,527.7		$	3,437.3		$	(1,139.5	)	$	3,947.1

Cost of sales		153.1			1,386.9			3,234.2			(1,139.5	)		3,634.7
Selling, general and administrative expenses		40.4			17.7			71.5			—			129.6
Intercompany operating (income) expense, net		(54.3	)		31.3			23.0			—			—
Amortization of intangible assets		0.4			1.2			7.0			—			8.6
Interest expense		15.0			3.3			(1.6	)		—			16.7
Other expense, net		4.4			0.5			5.8			—			10.7


Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(37.4	)		86.8			97.4			—			146.8
Provision for income taxes		(16.6	)		31.9			22.6			—			37.9
Equity in net income of affiliates		—			0.3			(8.3	)		—			(8.0	)
Equity in net income of subsidiaries		(129.3	)		(42.5	)		—			171.8			—

Consolidated net income		108.5			97.1			83.1			(171.8	)		116.9
Less: Net income attributable to noncontrolling interests		—			—			8.4			—			8.4


Net income attributable to Lear	$	108.5		$	97.1		$	74.7		$	(171.8	)	$	108.5


Consolidated comprehensive income	$	85.9		$	113.9		$	49.6		$	(154.7	)	$	94.7
Less: Comprehensive income attributable to noncontrolling interests		—			—			8.8			—			8.8


Comprehensive income attributable to Lear	$	85.9		$	113.9		$	40.8		$	(154.7	)	$	85.9


	For the Three Months Ended March 29, 2014
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)

Net cash provided by (used in) operating activities	$	43.1		$	(44.3	)	$	(53.0	)	$	—	$	(54.2	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(1.5	)		(21.4	)		(73.5	)		—		(96.4	)
Other, net		0.2			4.4			(18.6	)		—		(14.0	)

Net cash used in investing activities		(1.3	)		(17.0	)		(92.1	)		—		(110.4	)

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	)
Dividends paid to Lear Corporation stockholders		(17.5	)		—			—			—		(17.5	)
Dividends paid to noncontrolling interests		—			—			(5.8	)		—		(5.8	)
Other		(18.9	)		—			(2.2	)		—		(21.1	)
Change in intercompany accounts		(122.3	)		61.3			61.0			—		—

Net cash provided by (used in) financing activities		(164.6	)		61.3			53.0			—		(50.3	)

Effect of foreign currency translation		—			—			(3.4	)		—		(3.4	)

Net Change in Cash and Cash Equivalents		(122.8	)		—			(95.5	)		—		(218.3	)
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	$	220.7		$	0.1		$	698.6		$	—	$	919.4


	For the Three Months Ended March 30, 2013
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)

Net cash provided by (used in) operating activities	$	12.6		$	47.1		$	4.1		$	—	$	63.8
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(5.4	)		(27.3	)		(66.0	)		—		(98.7	)
Insurance proceeds		—			—			7.1			—		7.1
Other, net		54.0			0.1			(2.8	)		—		51.3

Net cash used in investing activities		48.6			(27.2	)		(61.7	)		—		(40.3	)

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		(200.1	)		—			—			—		(200.1	)
Dividends paid to Lear Corporation stockholders		(16.2	)		—			—			—		(16.2	)
Dividends paid to noncontrolling interests		—			—			(3.9	)		—		(3.9	)
Other		(1.8	)		—			(3.3	)		—		(5.1	)
Change in intercompany accounts		(76.3	)		(19.9	)		96.2			—		—

Net cash provided by (used in) financing activities		120.1			(19.9	)		89.0			—		189.2

Effect of foreign currency translation		—			—			(13.6	)		—		(13.6	)

Net Change in Cash and Cash Equivalents		181.3			—			17.8			—		199.1
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	$	662.7		$	0.1		$	938.5		$	—	$	1,601.3

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):