Supplemental Guarantor Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014



	December 31, 2014
(in millions)	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	377.8	$	—	$	716.3	$	—		$	1,094.1
Accounts receivable	53.9		459.0		1,958.8		—			2,471.7
Inventories	1.8		348.1		503.8		—			853.7
Intercompany accounts	49.6		40.7		—		(90.3		)	—
Other	416.9		76.2		467.0		—			960.1
Total current assets	900.0		924.0		3,645.9		(90.3		)	5,379.6
Long-Term Assets:
Property, plant and equipment, net	106.4		334.5		1,183.8		—			1,624.7
Goodwill	23.5		401.0		301.7		—			726.2
Investments in subsidiaries	2,010.6		1,815.7		—		(3,826.3		)	—
Intercompany loans receivable	1,268.1		168.6		212.6		(1,649.3		)	—
Other	928.8		65.9		475.2		(50.2		)	1,419.7
Total long-term assets	4,337.4		2,785.7		2,173.3		(5,525.8		)	3,770.6
Total assets	$	5,237.4	$	3,709.7	$	5,819.2	$	(5,616.1	)	$	9,150.2
Liabilities and Equity
Current Liabilities:
Accounts payable and drafts	$	91.1	$	687.7	$	1,746.5	$	—		$	2,525.3
Accrued liabilities	138.1		203.9		846.8		—			1,188.8
Intercompany accounts	—		—		90.3		(90.3		)	—
Current portion of long-term debt	243.7		—		—		—			243.7
Total current liabilities	472.9		891.6		2,683.6		(90.3		)	3,957.8
Long-Term Liabilities:
Long-term debt	1,475.0		—		—		—			1,475.0
Intercompany loans payable	138.9		698.8		811.6		(1,649.3		)	—
Other	191.8		198.0		348.5		(50.2		)	688.1
Total long-term liabilities	1,805.7		896.8		1,160.1		(1,699.5		)	2,163.1
Equity:
Lear Corporation stockholders’ equity	2,958.8		1,921.3		1,905.0		(3,826.3		)	2,958.8
Noncontrolling interests	—		—		70.5		—			70.5
Equity	2,958.8		1,921.3		1,975.5		(3,826.3		)	3,029.3
Total liabilities and equity	$	5,237.4	$	3,709.7	$	5,819.2	$	(5,616.1	)	$	9,150.2



	December 31, 2013
(in millions)	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
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
Intercompany accounts	66.0		—		—		(66.0		)	—
Other	147.7		77.3		462.8		—			687.8
Total current assets	603.2		725.0		3,660.3		(66.0		)	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	1,791.4		1,898.6		—		(3,690.0		)	—
Intercompany loans receivable	1,441.1		129.7		166.3		(1,737.1		)	—
Other	591.5		71.5		454.1		(53.1		)	1,064.0
Total long-term assets	3,943.0		2,816.8		2,128.8		(5,480.2		)	3,408.4
Total assets	$	4,546.2	$	3,541.8	$	5,789.1	$	(5,546.2	)	$	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
Intercompany accounts	—		1.6		64.4		(66.0		)	—
Total current liabilities	201.7		740.1		2,703.3		(66.0		)	3,579.1
Long-Term Liabilities:
Long-term debt	1,057.1		—		—		—			1,057.1
Intercompany loans payable	123.0		654.3		959.8		(1,737.1		)	—
Other	118.5		143.0		336.8		(53.1		)	545.2
Total long-term liabilities	1,298.6		797.3		1,296.6		(1,790.2		)	1,602.3
Equity:
Lear Corporation stockholders’ equity	3,045.9		2,004.4		1,685.6		(3,690.0		)	3,045.9
Noncontrolling interests	—		—		103.6		—			103.6
Equity	3,045.9		2,004.4		1,789.2		(3,690.0		)	3,149.5
Total liabilities and equity	$	4,546.2	$	3,541.8	$	5,789.1	$	(5,546.2	)	$	8,330.9

Schedule of Condensed Income Statement



	Year Ended December 31, 2012
(in millions)	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
Net sales	$	483.7		$	5,850.1		$	12,484.6		$	(4,251.4	)	$	14,567.0
Cost of sales	576.7			5,274.2			11,750.0			(4,251.4		)	13,349.5
Selling, general and administrative expenses	230.8			21.0			227.5			—			479.3
Intercompany operating (income) expense, net	(286.0		)	156.4			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		)	(197.1		)	—			794.0			—
Consolidated net income	1,282.8			572.7			255.7			(794.0		)	1,317.2
Less: Net income attributable to noncontrolling interests	—			—			34.4			—			34.4
Net income attributable to Lear	$	1,282.8		$	572.7		$	221.3		$	(794.0	)	$	1,282.8

Consolidated comprehensive income	$	1,314.0		$	622.3		$	259.1		$	(845.8	)	$	1,349.6
Less: Comprehensive income attributable to noncontrolling interests	—			—			35.6			—			35.6
Comprehensive income attributable to Lear	$	1,314.0		$	622.3		$	223.5		$	(845.8	)	$	1,314.0



	Year Ended December 31, 2014
(in millions)	Lear			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	467.1		$	7,086.4		$	14,996.5		$	(4,822.7	)	$	17,727.3
Cost of sales	662.7			6,468.6			13,925.9			(4,822.7		)	16,234.5
Selling, general and administrative expenses	227.3			36.4			266.2			—			529.9
Intercompany operating (income) expense, net	(448.2		)	287.2			161.0			—			—
Amortization of intangible assets	1.7			4.7			27.3			—			33.7
Interest expense	49.0			24.9			(6.4		)	—			67.5
Other expense, net	26.5			1.0			46.8			—			74.3
Consolidated income (loss) before provision (benefit) for income taxes and equity in net income of affiliates and subsidiaries	(51.9		)	263.6			575.7			—			787.4
Provision (benefit) for income taxes	(21.6		)	93.3			49.7			—			121.4
Equity in net income of affiliates	0.4			(1.5		)	(35.2		)	—			(36.3		)
Equity in net income of subsidiaries	(703.1		)	(390.3		)	—			1,093.4			—
Consolidated net income	672.4			562.1			561.2			(1,093.4		)	702.3
Less: Net income attributable to noncontrolling interests	—			—			29.9			—			29.9
Net income attributable to Lear	$	672.4		$	562.1		$	531.3		$	(1,093.4	)	$	672.4

Consolidated comprehensive income	$	336.5		$	502.1		$	320.4		$	(794.5	)	$	364.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			28.0			—			28.0
Comprehensive income attributable to Lear	$	336.5		$	502.1		$	292.4		$	(794.5	)	$	336.5



	Year Ended December 31, 2013
(in millions)	Lear			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	449.0		$	6,261.1		$	14,042.2		$	(4,518.3	)	$	16,234.0
Cost of sales	643.6			5,629.5			13,179.5			(4,518.3		)	14,934.3
Selling, general and administrative expenses	211.4			20.6			296.7			—			528.7
Intercompany operating (income) expense, net	(395.4		)	292.4			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		)	(138.2		)	—			607.2			—
Consolidated net income	431.4			313.6			318.0			(607.2		)	455.8
Less: Net income attributable to noncontrolling interests	—			—			24.4			—			24.4
Net income attributable to Lear	$	431.4		$	313.6		$	293.6		$	(607.2	)	$	431.4

Consolidated comprehensive income	$	566.1		$	340.8		$	379.0		$	(693.9	)	$	592.0
Less: Comprehensive income attributable to noncontrolling interests	—			—			25.9			—			25.9
Comprehensive income attributable to Lear	$	566.1		$	340.8		$	353.1		$	(693.9	)	$	566.1

Schedule of Condensed Cash Flow Statement



	Year Ended December 31, 2014
(in millions)	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	165.4		$	177.5		$	597.5		$	(12.6	)	$	927.8

Cash Flows from Investing Activities:
Additions to property, plant and equipment	(25.6		)	(88.2		)	(310.9		)	—			(424.7		)
Cash restricted for use — acquisition of Eagle Ottawa	(350.0		)	—			—			—			(350.0		)
Intercompany transactions	352.5			(38.9		)	(46.3		)	(267.3		)	—
Other, net	(6.8		)	15.1			(14.2		)	—			(5.9		)
Net cash used in investing activities	(29.9		)	(112.0		)	(371.4		)	(267.3		)	(780.6		)

Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes	975.0			—			—			—			975.0
Repurchase of senior notes	(327.1		)	—			—			—			(327.1		)
Payment of debt issuance and other financing costs	(18.1		)	—			—			—			(18.1		)
Cash restricted for use - repurchase of senior notes	(250.0		)	—			—			—			(250.0		)
Repurchase of common stock	(411.4		)	—			—			—			(411.4		)
Dividends paid to Lear Corporation stockholders	(65.3		)	—			—			—			(65.3		)
Dividends paid to noncontrolling interests	—			—			(25.9		)	—			(25.9		)
Intercompany transactions	15.9			(65.6		)	(230.2		)	279.9			—
Other, net	(20.2		)	—			(17.8		)	—			(38.0		)
Net cash used in financing activities	(101.2		)	(65.6		)	(273.9		)	279.9			(160.8		)

Effect of foreign currency translation	—			—			(30.0		)	—			(30.0		)
Net Change in Cash and Cash Equivalents	34.3			(0.1		)	(77.8		)	—			(43.6		)
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	$	377.8		$	—		$	716.3		$	—		$	1,094.1



	Year Ended December 31, 2013
(in millions)	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	174.3		$	226.0		$	480.1		$	(60.3	)	$	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
Intercompany transactions	304.1			(2.4		)	1,090.9			(1,392.6		)	—
Other, net	43.0			3.8			2.8			—			49.6
Net cash used in investing activities	329.2			(109.2		)	768.7			(1,392.6		)	(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		)
Intercompany transactions	6.5			(116.8		)	(1,342.6		)	1,452.9			—
Other, net	(3.9		)	—			(6.6		)	—			(10.5		)
Net cash used in financing activities	(641.4		)	(116.8		)	(1,393.2		)	1,452.9			(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
(in millions)	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	54.8		$	521.2		$	174.9		$	(21.1	)	$	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 acquisition of Guilford, net of cash acquired	(243.9		)	—			—			—			(243.9		)
Intercompany transactions	181.8			10.8			(1,162.0		)	969.4			—
Other, net	0.4			6.3			(11.6		)	—			(4.9		)
Net cash used in investing activities	(73.0		)	(80.3		)	(1,504.0		)	969.4			(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		)
Intercompany transactions	34.9			(440.9		)	1,354.3			(948.3		)	—
Other, net	(6.1		)	—			(17.4		)	—			(23.5		)
Net cash used in financing activities	(320.7		)	(440.9		)	1,313.8			(948.3		)	(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

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,	2014			2013
Senior notes	$	1,718.7		$	1,057.1
Less — Current portion	(243.7		)	—
Long-term debt	$	1,475.0		$	1,057.1