Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 27, 2014



	September 27, 2014
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	291.7	$	0.1	$	580.9	$	—		$	872.7
Accounts receivable	70.1		635.0		2,137.9		—			2,843.0
Inventories	2.8		343.5		552.8		—			899.1
Other	158.1		64.9		495.2		—			718.2
Total current assets	522.7		1,043.5		3,766.8		—			5,333.0
LONG-TERM ASSETS:
Property, plant and equipment, net	94.7		321.7		1,198.0		—			1,614.4
Goodwill	23.5		401.0		315.7		—			740.2
Investments in subsidiaries	1,840.2		1,891.2		—		(3,731.4		)	—
Intercompany accounts, net	1,394.2		—		—		(1,394.2		)	—
Other	596.7		56.4		350.5		—			1,003.6
Total long-term assets	3,949.3		2,670.3		1,864.2		(5,125.6		)	3,358.2
Total assets	$	4,472.0	$	3,713.8	$	5,631.0	$	(5,125.6	)	$	8,691.2
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	93.8	$	742.2	$	1,778.6	$	—		$	2,614.6
Accrued liabilities	110.1		205.4		1,020.8		—			1,336.3
Total current liabilities	203.9		947.6		2,799.4		—			3,950.9
LONG-TERM LIABILITIES:
Long-term debt	1,068.7		—		—		—			1,068.7
Intercompany accounts, net	—		762.2		632.0		(1,394.2		)	—
Other	117.5		142.1		256.2		—			515.8
Total long-term liabilities	1,186.2		904.3		888.2		(1,394.2		)	1,584.5
EQUITY:
Lear Corporation stockholders’ equity	3,081.9		1,861.9		1,869.5		(3,731.4		)	3,081.9
Noncontrolling interests	—		—		73.9		—			73.9
Equity	3,081.9		1,861.9		1,943.4		(3,731.4		)	3,155.8
Total liabilities and equity	$	4,472.0	$	3,713.8	$	5,631.0	$	(5,125.6	)	$	8,691.2



	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

Schedule of Condensed Income Statement



	For the Three Months Ended September 27, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	120.5		$	1,802.7		$	3,503.3		$	(1,193.8	)	$	4,232.7
Cost of sales	147.8			1,660.7			3,256.8			(1,193.8		)	3,871.5
Selling, general and administrative expenses	35.0			26.9			66.2			—			128.1
Intercompany operating (income) expense, net	(52.5		)	42.6			9.9			—			—
Amortization of intangible assets	0.5			1.2			6.9			—			8.6
Interest expense	10.6			6.6			(1.5		)	—			15.7
Other expense, net	0.9			0.4			9.8			—			11.1
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	(21.8		)	64.3			155.2			—			197.7
Provision for income taxes	(8.1		)	27.0			38.7			—			57.6
Equity in net income of affiliates	0.1			(0.5		)	(7.4		)	—			(7.8		)
Equity in net income of subsidiaries	(153.9		)	(84.8		)	—			238.7			—
Consolidated net income	140.1			122.6			123.9			(238.7		)	147.9
Less: Net income attributable to noncontrolling interests	—			—			7.8			—			7.8
Net income attributable to Lear	$	140.1		$	122.6		$	116.1		$	(238.7	)	$	140.1

Consolidated comprehensive income	$	41.7		$	113.9		$	35.5		$	(140.2	)	$	50.9
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.2			—			9.2
Comprehensive income attributable to Lear	$	41.7		$	113.9		$	26.3		$	(140.2	)	$	41.7



	For the Three Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	105.2		$	1,557.8		$	3,351.6		$	(1,096.9	)	$	3,917.7
Cost of sales	132.6			1,411.2			3,140.6			(1,096.9		)	3,587.5
Selling, general and administrative expenses	43.0			17.3			68.3			—			128.6
Intercompany operating (income) expense, net	(45.5		)	33.6			11.9			—			—
Amortization of intangible assets	0.5			1.2			6.9			—			8.6
Interest expense	11.9			6.0			(0.4		)	—			17.5
Other expense, net	0.6			0.2			16.0			—			16.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	(37.9		)	88.3			108.3			—			158.7
Provision for income taxes	(11.2		)	31.7			30.7			—			51.2
Equity in net income of affiliates	(0.1		)	(0.3		)	(8.8		)	—			(9.2		)
Equity in net income of subsidiaries	(139.4		)	(37.0		)	—			176.4			—
Consolidated net income	112.8			93.9			86.4			(176.4		)	116.7
Less: Net income attributable to noncontrolling interests	—			—			3.9			—			3.9
Net income attributable to Lear	$	112.8		$	93.9		$	82.5		$	(176.4	)	$	112.8

Consolidated comprehensive income	$	144.2		$	88.9		$	122.8		$	(207.6	)	$	148.3
Less: Comprehensive income attributable to noncontrolling interests	—			—			4.1			—			4.1
Comprehensive income attributable to Lear	$	144.2		$	88.9		$	118.7		$	(207.6	)	$	144.2



	For the Nine Months Ended September 27, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	351.3		$	5,252.5		$	11,189.0		$	(3,615.2	)	$	13,177.6
Cost of sales	443.2			4,842.8			10,406.0			(3,615.2		)	12,076.8
Selling, general and administrative expenses	125.9			71.4			205.5			—			402.8
Intercompany operating (income) expense, net	(241.0		)	122.2			118.8			—			—
Amortization of intangible assets	1.3			3.6			20.5			—			25.4
Interest expense	34.8			17.8			(5.5		)	—			47.1
Other expense, net	20.8			0.8			35.5			—			57.1
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	(33.7		)	193.9			408.2			—			568.4
Provision for income taxes	(13.4		)	80.1			96.4			—			163.1
Equity in net income of affiliates	0.7			(1.0		)	(28.7		)	—			(29.0		)
Equity in net income of subsidiaries	(431.6		)	(217.8		)	—			649.4			—
Consolidated net income	410.6			332.6			340.5			(649.4		)	434.3
Less: Net income attributable to noncontrolling interests	—			—			23.7			—			23.7
Net income attributable to Lear	$	410.6		$	332.6		$	316.8		$	(649.4	)	$	410.6

Consolidated comprehensive income	$	309.2		$	328.9		$	241.9		$	(547.8	)	$	332.2
Less: Comprehensive income attributable to noncontrolling interests	—			—			23.0			—			23.0
Comprehensive income attributable to Lear	$	309.2		$	328.9		$	218.9		$	(547.8	)	$	309.2



	For the Nine Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	352.4		$	4,701.3		$	10,326.7		$	(3,402.5	)	$	11,977.9
Cost of sales	429.9			4,277.4			9,692.8			(3,402.5		)	10,997.6
Selling, general and administrative expenses	121.7			49.2			215.2			—			386.1
Intercompany operating (income) expense, net	(169.9		)	98.0			71.9			—			—
Amortization of intangible assets	1.3			3.6			20.9			—			25.8
Interest expense	36.0			18.1			(2.5		)	—			51.6
Other expense, net	6.8			1.0			30.0			—			37.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	(73.4		)	254.0			298.4			—			479.0
Provision for income taxes	(23.6		)	92.3			61.5			—			130.2
Equity in net income of affiliates	(0.8		)	(0.4		)	(25.9		)	—			(27.1		)
Equity in net income of subsidiaries	(407.6		)	(122.9		)	—			530.5			—
Consolidated net income	358.6			285.0			262.8			(530.5		)	375.9
Less: Net income attributable to noncontrolling interests	—			—			17.3			—			17.3
Net income attributable to Lear	$	358.6		$	285.0		$	245.5		$	(530.5	)	$	358.6

Consolidated comprehensive income	$	338.5		$	273.0		$	254.7		$	(509.5	)	$	356.7
Less: Comprehensive income attributable to noncontrolling interests	—			—			18.2			—			18.2
Comprehensive income attributable to Lear	$	338.5		$	273.0		$	236.5		$	(509.5	)	$	338.5

Schedule of Condensed Cash Flow Statement



	For the Nine Months Ended September 27, 2014
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	28.4		$	44.6		$	338.7		$	—	$	411.7
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(10.0		)	(57.2		)	(213.6		)	—		(280.8		)
Other, net	(5.9		)	15.3			(18.4		)	—		(9.0		)
Net cash used in investing activities	(15.9		)	(41.9		)	(232.0		)	—		(289.8		)
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	(259.4		)	—			—			—		(259.4		)
Dividends paid to Lear Corporation stockholders	(49.6		)	—			—			—		(49.6		)
Dividends paid to noncontrolling interests	—			—			(17.5		)	—		(17.5		)
Other	(21.7		)	—			(17.5		)	—		(39.2		)
Change in intercompany accounts	272.3			(2.7		)	(269.6		)	—		—
Net cash used in financing activities	(64.3		)	(2.7		)	(304.6		)	—		(371.6		)
Effect of foreign currency translation	—			—			(15.3		)	—		(15.3		)
Net Change in Cash and Cash Equivalents	(51.8		)	—			(213.2		)	—		(265.0		)
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	$	291.7		$	0.1		$	580.9		$	—	$	872.7



	For the Nine Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	0.8		$	161.6		$	267.2		$	—	$	429.6
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(13.4		)	(83.7		)	(232.1		)	—		(329.2		)
Insurance proceeds	—			—			7.1			—		7.1
Other, net	44.1			0.1			(3.5		)	—		40.7
Net cash used in investing activities	30.7			(83.6		)	(228.5		)	—		(281.4		)
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	(44.8		)	—			—			—		(44.8		)
Dividends paid to noncontrolling interests	—			—			(33.4		)	—		(33.4		)
Other	(6.3		)	—			(3.4		)	—		(9.7		)
Change in intercompany accounts	334.6			(78.0		)	(256.6		)	—		—
Net cash used in financing activities	(302.1		)	(78.0		)	(293.4		)	—		(673.5		)
Effect of foreign currency translation	—			—			7.1			—		7.1
Net Change in Cash and Cash Equivalents	(270.6		)	—			(247.6		)	—		(518.2		)
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	$	210.8		$	0.1		$	673.1		$	—	$	884.0

Long-Term Debt

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):



	September 27, 2014		December 31, 2013
Senior notes	$	1,068.7	$	1,057.1