Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 26, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	September 26, 2015
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	355.3	$	0.1	$	567.4	$	—		$	922.8
Accounts receivable	64.8		729.6		2,165.5		—			2,959.9
Inventories	3.6		439.9		599.8		—			1,043.3
Intercompany accounts	49.2		117.4		—		(166.6		)	—
Other	163.1		92.3		456.6		(6.2		)	705.8
Total current assets	636.0		1,379.3		3,789.3		(172.8		)	5,631.8
LONG-TERM ASSETS:
Property, plant and equipment, net	121.6		407.5		1,252.8		—			1,781.9
Goodwill	39.9		691.6		329.6		—			1,061.1
Investments in subsidiaries	3,054.7		1,986.6		—		(5,041.3		)	—
Intercompany loans receivable	945.6		190.5		188.4		(1,324.5		)	—
Other	587.1		222.2		464.9		(110.3		)	1,163.9
Total long-term assets	4,748.9		3,498.4		2,235.7		(6,476.1		)	4,006.9
Total assets	$	5,384.9	$	4,877.7	$	6,025.0	$	(6,648.9	)	$	9,638.7
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	77.0	$	761.3	$	1,738.1	$	—		$	2,576.4
Accrued liabilities	147.2		304.3		1,017.6		(6.2		)	1,462.9
Intercompany accounts	—		—		166.6		(166.6		)	—
Current portion of long-term debt	15.6		—		1.3		—			16.9
Total current liabilities	239.8		1,065.6		2,923.6		(172.8		)	4,056.2
LONG-TERM LIABILITIES:
Long-term debt	1,956.3		—		6.3		—			1,962.6
Intercompany loans payable	169.3		645.7		509.5		(1,324.5		)	—
Other	179.2		271.6		354.6		(110.3		)	695.1
Total long-term liabilities	2,304.8		917.3		870.4		(1,434.8		)	2,657.7
EQUITY:
Lear Corporation stockholders’ equity	2,840.3		2,894.8		2,146.5		(5,041.3		)	2,840.3
Noncontrolling interests	—		—		84.5		—			84.5
Equity	2,840.3		2,894.8		2,231.0		(5,041.3		)	2,924.8
Total liabilities and equity	$	5,384.9	$	4,877.7	$	6,025.0	$	(6,648.9	)	$	9,638.7



	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



	Three Months Ended September 26, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	106.3		$	2,044.1		$	3,433.1		$	(1,253.2	)	$	4,330.3
Cost of sales	146.9			1,824.3			3,159.1			(1,253.2		)	3,877.1
Selling, general and administrative expenses	74.5			2.9			60.2			—			137.6
Intercompany operating (income) expense, net	(73.7		)	50.0			23.7			—			—
Amortization of intangible assets	0.5			5.2			7.3			—			13.0
Interest expense	16.4			6.5			(1.5		)	—			21.4
Other expense, net	12.6			2.8			6.3			—			21.7
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(70.9		)	152.4			178.0			—			259.5
Provision for income taxes	(26.3		)	53.5			48.9			—			76.1
Equity in net income of affiliates	(0.4		)	(1.0		)	(8.5		)	—			(9.9		)
Equity in net income of subsidiaries	(225.2		)	(101.9		)	—			327.1			—
Consolidated net income	181.0			201.8			137.6			(327.1		)	193.3
Less: Net income attributable to noncontrolling interests	—			—			12.3			—			12.3
Net income attributable to Lear	$	181.0		$	201.8		$	125.3		$	(327.1	)	$	181.0

Consolidated comprehensive income	$	94.8		$	187.5		$	63.0		$	(240.6	)	$	104.7
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.9			—			9.9
Comprehensive income attributable to Lear	$	94.8		$	187.5		$	53.1		$	(240.6	)	$	94.8



	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	165.9			1,642.6			3,256.8			(1,193.8		)	3,871.5
Selling, general and administrative expenses	47.6			14.3			66.2			—			128.1
Intercompany operating (income) expense, net	(83.2		)	73.3			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 (loss) 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



	Nine Months Ended September 26, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	319.2		$	6,151.3		$	10,925.4		$	(3,909.1	)	$	13,486.8
Cost of sales	465.1			5,549.0			10,052.7			(3,909.1		)	12,157.7
Selling, general and administrative expenses	197.5			50.7			192.6			—			440.8
Intercompany operating (income) expense, net	(331.1		)	204.1			127.0			—			—
Amortization of intangible assets	1.3			15.6			22.6			—			39.5
Interest expense	54.5			18.7			(6.9		)	—			66.3
Other expense, net	26.0			1.5			32.9			—			60.4
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(94.1		)	311.7			504.5			—			722.1
Provision for income taxes	(32.1		)	116.5			126.5			—			210.9
Equity in net income of affiliates	1.0			(2.1		)	(30.6		)	—			(31.7		)
Equity in net income of subsidiaries	(573.2		)	(274.1		)	—			847.3			—
Consolidated net income	510.2			471.4			408.6			(847.3		)	542.9
Less: Net income attributable to noncontrolling interests	—			—			32.7			—			32.7
Net income attributable to Lear	$	510.2		$	471.4		$	375.9		$	(847.3	)	$	510.2

Consolidated comprehensive income	$	325.8		$	443.4		$	238.5		$	(651.7	)	$	356.0
Less: Comprehensive income attributable to noncontrolling interests	—			—			30.2			—			30.2
Comprehensive income attributable to Lear	$	325.8		$	443.4		$	208.3		$	(651.7	)	$	325.8



	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	496.5			4,789.5			10,406.0			(3,615.2		)	12,076.8
Selling, general and administrative expenses	163.0			34.3			205.5			—			402.8
Intercompany operating (income) expense, net	(331.4		)	212.6			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 (loss) 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

Schedule of Condensed Cash Flow Statement



	Nine Months Ended September 26, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by (Used in) Operating Activities	$	109.3		$	86.4		$	623.8		$	(133.5	)	$	686.0
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(26.4		)	(79.8		)	(221.5		)	—			(327.7		)
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	385.4			(21.9		)	24.2			(387.7		)	—
Other, net	(31.1		)	7.8			12.7			—			(10.6		)
Net cash used in investing activities	(157.6		)	(92.7		)	(165.6		)	(387.7		)	(803.6		)
Cash Flows from Financing Activities:
Credit agreement borrowings	500.0			—			—			—			500.0
Credit agreement repayments	(3.1		)	—			—			—			(3.1		)
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	(383.0		)	—			—			—			(383.0		)
Dividends paid to Lear Corporation stockholders	(60.0		)	—			—			—			(60.0		)
Dividends paid to noncontrolling interests	—			—			(16.2		)	—			(16.2		)
Intercompany transactions	30.4			6.4			(558.0		)	521.2			—
Other, net	(53.5		)	—			(0.1		)				(53.6		)
Net cash provided by (used in) financing activities	25.8			6.4			(574.3		)	521.2			(20.9		)

Effect of foreign currency translation	—			—			(32.8		)	—			(32.8		)
Net Change in Cash and Cash Equivalents	(22.5		)	0.1			(148.9		)	—			(171.3		)
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	$	355.3		$	0.1		$	567.4		$	—		$	922.8

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	)



	Nine Months Ended September 27, 2014
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by (Used in) Operating Activities	$	53.3		$	14.2		$	350.1		$	(5.9	)	$	411.7
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(10.0		)	(57.2		)	(213.6		)	—			(280.8		)
Intercompany transactions	255.5			(35.3		)	1.9			(222.1		)	—
Other, net	(5.9		)	15.3			(18.4		)	—			(9.0		)
Net cash provided by (used in) investing activities	239.6			(77.2		)	(230.1		)	(222.1		)	(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		)
Intercompany transactions	(8.1		)	63.0			(282.9		)	228.0			—
Other, net	(21.7		)	—			(17.5		)	—			(39.2		)
Net cash provided by (used in) financing activities	(344.7		)	63.0			(317.9		)	228.0			(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

Long-Term Debt

A summary of long-term debt of Lear and the Guarantors on a combined basis is shown below (in millions):



	September 26, 2015			December 31, 2014
Credit agreement — Term Loan Facility	$	496.9		$	—
Senior notes	1,475.0			1,718.7
	1,971.9			1,718.7
Less — Current portion	(15.6		)	(243.7		)
Long-term debt	$	1,956.3		$	1,475.0