Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 28, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	March 28, 2015
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	199.8	$	0.1	$	548.3	$	—		$	748.2
Accounts receivable	67.4		649.5		2,453.6		—			3,170.5
Inventories	2.8		352.9		630.1		—			985.8
Intercompany accounts	71.0		178.9		—		(249.9		)	—
Other	184.3		74.1		479.5		—			737.9
Total current assets	525.3		1,255.5		4,111.5		(249.9		)	5,642.4
LONG-TERM ASSETS:
Property, plant and equipment, net	106.5		335.7		1,272.4		—			1,714.6
Goodwill	23.5		401.0		633.4		—			1,057.9
Investments in subsidiaries	3,047.4		1,463.7		—		(4,511.1		)	—
Intercompany loans receivable	1,079.6		170.3		186.5		(1,436.4		)	—
Other	583.1		67.5		603.1		(50.2		)	1,203.5
Total long-term assets	4,840.1		2,438.2		2,695.4		(5,997.7		)	3,976.0
Total assets	$	5,365.4	$	3,693.7	$	6,806.9	$	(6,247.6	)	$	9,618.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	97.0	$	742.0	$	1,922.3	$	—		$	2,761.3
Accrued liabilities	123.9		237.3		926.8		—			1,288.0
Intercompany accounts	—		—		249.9		(249.9		)	—
Current portion of long-term debt	9.4		—		1.2		—			10.6
Total current liabilities	230.3		979.3		3,100.2		(249.9		)	4,059.9
LONG-TERM LIABILITIES:
Long-term debt	1,965.6		—		6.8		—			1,972.4
Intercompany loans payable	180.6		632.6		623.2		(1,436.4		)	—
Other	176.8		208.1		359.6		(50.2		)	694.3
Total long-term liabilities	2,323.0		840.7		989.6		(1,486.6		)	2,666.7
EQUITY:
Lear Corporation stockholders’ equity	2,812.1		1,873.7		2,637.4		(4,511.1		)	2,812.1
Noncontrolling interests	—		—		79.7		—			79.7
Equity	2,812.1		1,873.7		2,717.1		(4,511.1		)	2,891.8
Total liabilities and equity	$	5,365.4	$	3,693.7	$	6,806.9	$	(6,247.6	)	$	9,618.4



	December 31, 2014
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
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

Schedule of Condensed Income Statement



	For the Three Months Ended March 28, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	96.8		$	1,828.9		$	3,886.6		$	(1,290.9	)	$	4,521.4
Cost of sales	148.3			1,664.6			3,573.7			(1,290.9		)	4,095.7
Selling, general and administrative expenses	61.2			10.5			80.0			—			151.7
Intercompany operating (income) expense, net	(147.9		)	70.4			77.5			—			—
Amortization of intangible assets	0.4			1.2			11.7			—			13.3
Interest expense	20.8			6.2			(2.6		)	—			24.4
Other expense, net	14.2			(2.1		)	17.9			—			30.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	(0.2		)	78.1			128.4			—			206.3
Provision for income taxes	2.8			32.9			27.2			—			62.9
Equity in net income of affiliates	(0.3		)	(0.7		)	(12.3		)	—			(13.3		)
Equity in net income of subsidiaries	(150.0		)	(65.4		)	—			215.4			—
Consolidated net income	147.3			111.3			113.5			(215.4		)	156.7
Less: Net income attributable to noncontrolling interests	—			—			9.4			—			9.4
Net income attributable to Lear	$	147.3		$	111.3		$	104.1		$	(215.4	)	$	147.3

Consolidated comprehensive income	$	19.5		$	94.6		$	(8.7	)	$	(76.6	)	$	28.8
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.3			—			9.3
Comprehensive income attributable to Lear	$	19.5		$	94.6		$	(18.0	)	$	(76.6	)	$	19.5



	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 28, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Used in Operating Activities	$	9.2		$	(179.4	)	$	178.6		$	(75.0	)	$	(66.6	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(3.7		)	(22.5		)	(72.6		)	—			(98.8		)
Acquisition of Eagle Ottawa, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below) (Note 2)	(493.5		)	—			20.2			—			(473.3		)
Intercompany transactions	(42.0		)	(1.7		)	26.1			17.6			—
Other, net	(2.3		)				10.2			—			7.9
Net cash used in investing activities	(541.5		)	(24.2		)	(16.1		)	17.6			(564.2		)
Cash Flows from Financing Activities:
Credit agreement borrowings	500.0			—			—			—			500.0
Repurchase of senior notes, net of use of $250 million restricted cash in 2015 (see non-cash financing activities below) (Note 8)	(5.0		)	—			—			—			(5.0		)
Repurchase of common stock	(112.4		)	—			—			—			(112.4		)
Dividends paid to Lear Corporation stockholders	(22.0		)	—			—			—			(22.0		)
Dividends paid to noncontrolling interests	—			—			(0.1		)	—			(0.1		)
Intercompany transactions	41.7			203.7			(302.8		)	57.4			—
Other, net	(48.0		)	—			2.0			—			(46.0		)
Net cash used in financing activities	354.3			203.7			(300.9		)	57.4			314.5

Effect of foreign currency translation	—			—			(29.6		)	—			(29.6		)
Net Change in Cash and Cash Equivalents	(178.0		)	0.1			(168.0		)	—			(345.9		)
Cash and Cash Equivalents as of Beginning of Period	377.8			—			716.3			—			1,094.1
Cash and Cash Equivalents as of End of Period	$	199.8		$	0.1		$	548.3		$	—		$	748.2

Non-cash Investing Activities:
Cash restricted for use — acquisition of Eagle Ottawa	$	(350.0	)	$	—		$	—		$	—		$	(350.0	)

Non-cash Financing Activities:
Cash restricted for use — repurchase of senior notes	$	(250.0	)	$	—		$	—		$	—		$	(250.0	)



	For the Three Months Ended March 29, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Used in Operating Activities	$	17.0		$	(125.9	)	$	59.9		$	(5.2	)	$	(54.2	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1.5		)	(21.4		)	(73.5		)	—			(96.4		)
Intercompany transactions	(179.1		)	(12.4		)	(78.3		)	269.8			—
Other, net	0.2			4.4			(18.6		)	—			(14.0		)
Net cash used in investing activities	(180.4		)	(29.4		)	(170.4		)	269.8			(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		)
Intercompany transactions	82.9			155.3			26.4			(264.6		)	—
Other, net	(18.9		)	—			(2.2		)	—			(21.1		)
Net cash used in financing activities	40.6			155.3			18.4			(264.6		)	(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

Schedule of Condensed Cash Flow Statement



	For the Three Months Ended March 28, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Used in Operating Activities	$	9.2		$	(179.4	)	$	178.6		$	(75.0	)	$	(66.6	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(3.7		)	(22.5		)	(72.6		)	—			(98.8		)
Acquisition of Eagle Ottawa, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below) (Note 2)	(493.5		)	—			20.2			—			(473.3		)
Intercompany transactions	(42.0		)	(1.7		)	26.1			17.6			—
Other, net	(2.3		)				10.2			—			7.9
Net cash used in investing activities	(541.5		)	(24.2		)	(16.1		)	17.6			(564.2		)
Cash Flows from Financing Activities:
Credit agreement borrowings	500.0			—			—			—			500.0
Repurchase of senior notes, net of use of $250 million restricted cash in 2015 (see non-cash financing activities below) (Note 8)	(5.0		)	—			—			—			(5.0		)
Repurchase of common stock	(112.4		)	—			—			—			(112.4		)
Dividends paid to Lear Corporation stockholders	(22.0		)	—			—			—			(22.0		)
Dividends paid to noncontrolling interests	—			—			(0.1		)	—			(0.1		)
Intercompany transactions	41.7			203.7			(302.8		)	57.4			—
Other, net	(48.0		)	—			2.0			—			(46.0		)
Net cash used in financing activities	354.3			203.7			(300.9		)	57.4			314.5

Effect of foreign currency translation	—			—			(29.6		)	—			(29.6		)
Net Change in Cash and Cash Equivalents	(178.0		)	0.1			(168.0		)	—			(345.9		)
Cash and Cash Equivalents as of Beginning of Period	377.8			—			716.3			—			1,094.1
Cash and Cash Equivalents as of End of Period	$	199.8		$	0.1		$	548.3		$	—		$	748.2

Non-cash Investing Activities:
Cash restricted for use — acquisition of Eagle Ottawa	$	(350.0	)	$	—		$	—		$	—		$	(350.0	)

Non-cash Financing Activities:
Cash restricted for use — repurchase of senior notes	$	(250.0	)	$	—		$	—		$	—		$	(250.0	)



	For the Three Months Ended March 29, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Used in Operating Activities	$	17.0		$	(125.9	)	$	59.9		$	(5.2	)	$	(54.2	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1.5		)	(21.4		)	(73.5		)	—			(96.4		)
Intercompany transactions	(179.1		)	(12.4		)	(78.3		)	269.8			—
Other, net	0.2			4.4			(18.6		)	—			(14.0		)
Net cash used in investing activities	(180.4		)	(29.4		)	(170.4		)	269.8			(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		)
Intercompany transactions	82.9			155.3			26.4			(264.6		)	—
Other, net	(18.9		)	—			(2.2		)	—			(21.1		)
Net cash used in financing activities	40.6			155.3			18.4			(264.6		)	(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

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):



	March 28, 2015			December 31, 2014
Credit agreement — Term Loan Facility	$	500.0		$	—
Senior notes	1,475.0			1,718.7
	1,975.0			1,718.7
Less — Current portion	(9.4		)	(243.7		)
Long-term debt	$	1,965.6		$	1,475.0