Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 27, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	June 27, 2015
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	393.2	$	1.9	$	572.8	$	—		$	967.9
Accounts receivable	67.8		703.0		2,334.7		—			3,105.5
Inventories	4.6		419.3		584.7		—			1,008.6
Intercompany accounts	77.4		132.4		—		(209.8		)	—
Other	170.6		90.5		469.7		(5.2		)	725.6
Total current assets	713.6		1,347.1		3,961.9		(215.0		)	5,807.6
LONG-TERM ASSETS:
Property, plant and equipment, net	110.2		398.5		1,263.8		—			1,772.5
Goodwill	23.5		692.8		338.5		—			1,054.8
Investments in subsidiaries	3,024.5		1,923.7		—		(4,948.2		)	—
Intercompany loans receivable	973.5		181.1		147.0		(1,301.6		)	—
Other	579.5		233.2		488.1		(110.3		)	1,190.5
Total long-term assets	4,711.2		3,429.3		2,237.4		(6,360.1		)	4,017.8
Total assets	$	5,424.8	$	4,776.4	$	6,199.3	$	(6,575.1	)	$	9,825.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	80.9	$	771.9	$	1,899.2	$	—		$	2,752.0
Accrued liabilities	156.9		283.7		973.8		(5.2		)	1,409.2
Intercompany accounts	—		—		209.8		(209.8		)	—
Current portion of long-term debt	12.5		—		1.2		—			13.7
Total current liabilities	250.3		1,055.6		3,084.0		(215.0		)	4,174.9
LONG-TERM LIABILITIES:
Long-term debt	1,962.5		—		6.6		—			1,969.1
Intercompany loans payable	133.7		639.9		528.0		(1,301.6		)	—
Other	178.9		269.4		365.1		(110.3		)	703.1
Total long-term liabilities	2,275.1		909.3		899.7		(1,411.9		)	2,672.2
EQUITY:
Lear Corporation stockholders’ equity	2,899.4		2,811.5		2,136.7		(4,948.2		)	2,899.4
Noncontrolling interests	—		—		78.9		—			78.9
Equity	2,899.4		2,811.5		2,215.6		(4,948.2		)	2,978.3
Total liabilities and equity	$	5,424.8	$	4,776.4	$	6,199.3	$	(6,575.1	)	$	9,825.4



	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 June 27, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	116.1		$	2,119.3		$	3,764.7		$	(1,365.0	)	$	4,635.1
Cost of sales	169.9			1,912.7			3,467.3			(1,365.0		)	4,184.9
Selling, general and administrative expenses	61.8			24.0			65.7			—			151.5
Intercompany operating (income) expense, net	(109.5		)	83.7			25.8			—			—
Amortization of intangible assets	0.4			5.2			7.6			—			13.2
Interest expense	17.3			6.3			(3.1		)	—			20.5
Other expense, net	(0.8		)	0.8			8.7			—			8.7
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(23.0		)	86.6			192.7			—			256.3
Provision for income taxes	(8.6		)	31.5			49.0			—			71.9
Equity in net income of affiliates	1.7			(0.4		)	(9.8		)	—			(8.5		)
Equity in net income of subsidiaries	(198.0		)	(107.5		)	—			305.5			—
Consolidated net income	181.9			163.0			153.5			(305.5		)	192.9
Less: Net income attributable to noncontrolling interests	—			—			11.0			—			11.0
Net income attributable to Lear	$	181.9		$	163.0		$	142.5		$	(305.5	)	$	181.9

Consolidated comprehensive income	$	211.5		$	166.0		$	180.0		$	(335.0	)	$	222.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			11.0			—			11.0
Comprehensive income attributable to Lear	$	211.5		$	166.0		$	169.0		$	(335.0	)	$	211.5



	For the Three Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	127.7		$	1,815.2		$	3,894.6		$	(1,252.4	)	$	4,585.1
Cost of sales	177.3			1,662.9			3,618.2			(1,252.4		)	4,206.0
Selling, general and administrative expenses	52.8			14.7			70.5			—			138.0
Intercompany operating (income) expense, net	(119.0		)	69.6			49.4			—			—
Amortization of intangible assets	0.4			1.2			6.7			—			8.3
Interest expense	10.7			6.4			(2.5		)	—			14.6
Other expense, net	2.6			0.7			13.5			—			16.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries	2.9			59.7			138.8			—			201.4
Provision for income taxes	1.3			22.9			28.6			—			52.8
Equity in net income of affiliates	0.5			—			(9.7		)	—			(9.2		)
Equity in net income of subsidiaries	(147.4		)	(81.0		)	—			228.4			—
Consolidated net income	148.5			117.8			119.9			(228.4		)	157.8
Less: Net income attributable to noncontrolling interests	—			—			9.3			—			9.3
Net income attributable to Lear	$	148.5		$	117.8		$	110.6		$	(228.4	)	$	148.5

Consolidated comprehensive income	$	154.5		$	121.7		$	122.0		$	(234.7	)	$	163.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.0			—			9.0
Comprehensive income attributable to Lear	$	154.5		$	121.7		$	113.0		$	(234.7	)	$	154.5



	For the Six Months Ended June 27, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	212.9		$	4,107.2		$	7,492.3		$	(2,655.9	)	$	9,156.5
Cost of sales	318.2			3,724.7			6,893.6			(2,655.9		)	8,280.6
Selling, general and administrative expenses	123.0			47.8			132.4			—			303.2
Intercompany operating (income) expense, net	(257.4		)	154.1			103.3			—			—
Amortization of intangible assets	0.8			10.4			15.3			—			26.5
Interest expense	38.1			12.2			(5.4		)	—			44.9
Other expense, net	13.4			(1.3		)	26.6			—			38.7
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(23.2		)	159.3			326.5			—			462.6
Provision for income taxes	(5.8		)	63.0			77.6			—			134.8
Equity in net income of affiliates	1.4			(1.1		)	(22.1		)	—			(21.8		)
Equity in net income of subsidiaries	(348.0		)	(172.2		)	—			520.2			—
Consolidated net income	329.2			269.6			271.0			(520.2		)	349.6
Less: Net income attributable to noncontrolling interests	—			—			20.4			—			20.4
Net income attributable to Lear	$	329.2		$	269.6		$	250.6		$	(520.2	)	$	329.2

Consolidated comprehensive income	$	231.0		$	255.9		$	175.5		$	(411.1	)	$	251.3
Less: Comprehensive income attributable to noncontrolling interests	—			—			20.3			—			20.3
Comprehensive income attributable to Lear	$	231.0		$	255.9		$	155.2		$	(411.1	)	$	231.0



	For the Six Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	230.8		$	3,449.8		$	7,685.7		$	(2,421.4	)	$	8,944.9
Cost of sales	330.6			3,146.9			7,149.2			(2,421.4		)	8,205.3
Selling, general and administrative expenses	115.4			20.0			139.3			—			274.7
Intercompany operating (income) expense, net	(248.2		)	139.3			108.9			—			—
Amortization of intangible assets	0.8			2.4			13.6			—			16.8
Interest expense	24.2			11.2			(4.0		)	—			31.4
Other expense, net	19.9			0.4			25.7			—			46.0
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(11.9		)	129.6			253.0			—			370.7
Provision for income taxes	(5.3		)	53.1			57.7			—			105.5
Equity in net income of affiliates	0.6			(0.5		)	(21.3		)	—			(21.2		)
Equity in net income of subsidiaries	(277.7		)	(133.0		)	—			410.7			—
Consolidated net income	270.5			210.0			216.6			(410.7		)	286.4
Less: Net income attributable to noncontrolling interests	—			—			15.9			—			15.9
Net income attributable to Lear	$	270.5		$	210.0		$	200.7		$	(410.7	)	$	270.5

Consolidated comprehensive income	$	267.5		$	215.0		$	206.4		$	(407.6	)	$	281.3
Less: Comprehensive income attributable to noncontrolling interests	—			—			13.8			—			13.8
Comprehensive income attributable to Lear	$	267.5		$	215.0		$	192.6		$	(407.6	)	$	267.5

Schedule of Condensed Cash Flow Statement



	For the Six Months Ended June 27, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by (Used in) Operating Activities	$	81.1		$	(4.1	)	$	442.4		$	(111.4	)	$	408.0
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(11.1		)	(51.5		)	(150.3		)	—			(212.9		)
Acquisition of Eagle Ottawa, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below) (Note 2)	(485.5		)	1.2			19.0			—			(465.3		)
Intercompany transactions	270.9			(12.5		)	65.6			(324.0		)	—
Other, net	(5.3		)	0.6			13.0			—			8.3
Net cash used in investing activities	(231.0		)	(62.2		)	(52.7		)	(324.0		)	(669.9		)
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	(234.8		)	—			—			—			(234.8		)
Dividends paid to Lear Corporation stockholders	(41.1		)	—			—			—			(41.1		)
Dividends paid to noncontrolling interests	—			—			(11.9		)	—			(11.9		)
Intercompany transactions	(5.2		)	68.2			(498.4		)	435.4			—
Other, net	(48.6		)	—			—			—			(48.6		)
Net cash provided by (used in) financing activities	165.3			68.2			(510.3		)	435.4			158.6

Effect of foreign currency translation	—			—			(22.9		)	—			(22.9		)
Net Change in Cash and Cash Equivalents	15.4			1.9			(143.5		)	—			(126.2		)
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	$	393.2		$	1.9		$	572.8		$	—		$	967.9

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 Six Months Ended June 28, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by (Used in) Operating Activities	$	31.6		$	(37.8	)	$	186.4		$	(5.2	)	$	175.0
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(4.6		)	(37.5		)	(147.0		)	—			(189.1		)
Intercompany transactions	31.5			(43.1		)	17.3			(5.7		)	—
Other, net	(2.5		)	14.9			(27.3		)	—			(14.9		)
Net cash used in investing activities	24.4			(65.7		)	(157.0		)	(5.7		)	(204.0		)
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	(156.0		)	—			—			—			(156.0		)
Dividends paid to Lear Corporation stockholders	(33.6		)	—			—			—			(33.6		)
Dividends paid to noncontrolling interests	—			—			(6.8		)	—			(6.8		)
Intercompany transactions	(17.5		)	103.4			(96.8		)	10.9			—
Other, net	(20.4		)	—			(17.8		)	—			(38.2		)
Net cash provided by (used in) financing activities	(233.4		)	103.4			(121.4		)	10.9			(240.5		)

Effect of foreign currency translation	—			—			(3.1		)	—			(3.1		)
Net Change in Cash and Cash Equivalents	(177.4		)	(0.1		)	(95.1		)	—			(272.6		)
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	$	166.1		$	—		$	699.0		$	—		$	865.1

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):



	June 27, 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	(12.5		)	(243.7		)
Long-term debt	$	1,962.5		$	1,475.0