Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

A summary of inventories is shown below (in millions):



December 31,	2015		2014
Raw materials	$	706.8	$	668.3
Work-in-process	90.2		45.6
Finished goods	150.6		139.8
Inventories	$	947.6	$	853.7

Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements

The classification of recoverable customer E&D and tooling costs related to long-term supply agreements is shown below (in millions):



December 31,	2015		2014
Current	$	162.0	$	121.1
Long-term	53.7		47.6
Recoverable customer E&D and tooling	$	215.7	$	168.7

Property, Plant and Equipment

Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method as follows:



Buildings and improvements	10 to 40 years
Machinery and equipment	5 to 10 years

A summary of property, plant and equipment is shown below (in millions):



December 31,	2015			2014
Land	$	97.9		$	105.2
Buildings and improvements	560.4			523.5
Machinery and equipment	2,125.8			1,847.0
Construction in progress	274.9			186.9
Total property, plant and equipment	3,059.0			2,662.6
Less – accumulated depreciation	(1,232.5		)	(1,037.9		)
Net property, plant and equipment	$	1,826.5		$	1,624.7

Summary of Changes in Carrying Amount of Goodwill

A summary of the changes in the carrying amount of goodwill for each of the periods in the two years ended December 31, 2015, is shown below (in millions):



	Seating			Electrical		Total
Balance as of December 31, 2013	$	757.2		$	—	$	757.2
Foreign currency translation and other	(31.0		)	—		(31.0		)
Balance as of December 31, 2014	726.2			—		726.2
Acquisitions	343.7			27.0		370.7
Foreign currency translation and other	(43.1		)	—		(43.1		)
Balance as of December 31, 2015	$	1,026.8		$	27.0	$	1,053.8

Summary of Intangible Assets

A summary of intangible assets as of December 31, 2015 and 2014, is shown below (in millions):



	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Technology	$	31.1	$	(19.4	)	$	11.7	7.7
Customer-based	406.0		(172.4		)	233.6		8.8
Other	10.9		—			10.9		5.7
Balance as of December 31, 2015	$	448.0	$	(191.8	)	$	256.2	8.7



	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Technology	$	31.4	$	(16.3	)	$	15.1	9.0
Customer-based	214.9		(137.5		)	77.4		8.2
Balance as of December 31, 2014	$	246.3	$	(153.8	)	$	92.5	8.4

Estimated Annual Intangible Asset Amortization Expense

Excluding the impact of any future acquisitions, the Company’s estimated annual amortization expense for the five succeeding years is shown below (in millions):



Year	Expense
2016	$	49.7
2017	30.5
2018	28.7
2019	28.4
2020	26.6

Summary of Other Expense, Net

A summary of other expense, net is shown below (in millions):



For the year ended December 31,	2015			2014			2013
Other expense	$	71.4		$	82.4		$	59.9
Other income	(2.8		)	(8.1		)	(1.8		)
Other expense, net	$	68.6		$	74.3		$	58.1

Summary of Information Used to Compute Basic and Diluted Net Income Per Share

A summary of information used to compute basic net income per share attributable to Lear is shown below (in millions, except share and per share data):



For the year ended December 31,	2015		2014		2013
Net income attributable to Lear	$	745.5	$	672.4	$	431.4

Average common shares outstanding	76,754,270		80,187,516		85,094,889

Basic net income per share attributable to Lear	$	9.71	$	8.39	$	5.07

A summary of information used to compute diluted net income per share attributable to Lear is shown below (in millions, except share and per share data):



For the year ended December 31,	2015		2014		2013
Net income attributable to Lear	$	745.5	$	672.4	$	431.4

Average common shares outstanding	76,754,270		80,187,516		85,094,889
Dilutive effect of common stock equivalents	1,012,747		1,540,963		1,320,897
Average diluted shares outstanding	77,767,017		81,728,479		86,415,786

Diluted net income per share attributable to Lear	$	9.59	$	8.23	$	4.99

Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax

A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below (in millions):



For the year ended December 31,	2015			2014			2013
Defined benefit plans:
Balance at beginning of year	$	(219.2	)	$	(104.5	)	$	(249.9	)
Reclassification adjustments (net of tax expense of $1.4 million, $— million and $4.4 million in 2015, 2014 and 2013, respectively)	4.2			0.1			11.0
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of ($6.9) million, $56.5 million and ($65.7) million in 2015, 2014 and 2013, respectively)	20.4			(114.8		)	134.4
Balance at end of year	$	(194.6	)	$	(219.2	)	$	(104.5	)
Derivative instruments and hedging activities:
Balance at beginning of year	$	(33.2	)	$	(5.3	)	$	2.7
Reclassification adjustments (net of tax benefit (expense) of ($14.9) million, $1.8 million and $11.3 million in 2015, 2014 and 2013, respectively)	23.7			(6.4		)	(20.9		)
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $18.4 million, $13.0 million and ($6.0) million in 2015, 2014 and 2013, respectively)	(29.2		)	(21.5		)	12.9
Balance at end of year	$	(38.7	)	$	(33.2	)	$	(5.3	)
Cumulative translation adjustments:
Balance at beginning of year	$	(249.6	)	$	(56.3	)	$	(53.6	)
Other comprehensive loss recognized during the period (net of tax benefit (expense) of $6.0 million, $7.4 million and ($0.5) million in 2015, 2014 and 2013, respectively)	(247.2		)	(193.3		)	(2.7		)
Balance at end of year	$	(496.8	)	$	(249.6	)	$	(56.3	)