Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Apr. 02, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	April 2, 2016
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	496.4	$	—	$	677.7	$	—		$	1,174.1
Accounts receivable	58.5		657.3		2,333.0		—			3,048.8
Inventories	2.5		425.7		581.5		—			1,009.7
Intercompany accounts	81.3		108.1		—		(189.4		)	—
Other	118.9		16.2		408.0		—			543.1
Total current assets	757.6		1,207.3		4,000.2		(189.4		)	5,775.7
LONG-TERM ASSETS:
Property, plant and equipment, net	158.5		401.0		1,314.5		—			1,874.0
Goodwill	39.9		651.3		374.1		—			1,065.3
Investments in subsidiaries	3,307.6		2,228.7		—		(5,536.3		)	—
Intercompany loans receivable	1,040.6		168.7		523.7		(1,733.0		)	—
Other	563.0		199.6		509.5		(27.6		)	1,244.5
Total long-term assets	5,109.6		3,649.3		2,721.8		(7,296.9		)	4,183.8
Total assets	$	5,867.2	$	4,856.6	$	6,722.0	$	(7,486.3	)	$	9,959.5
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—	$	—	$	2.6	$	—		$	2.6
Accounts payable and drafts	77.0		798.8		1,914.2		—			2,790.0
Accrued liabilities	144.9		323.4		982.2		—			1,450.5
Intercompany accounts	—		—		189.4		(189.4		)	—
Current portion of long-term debt	25.0		—		1.4		—			26.4
Total current liabilities	246.9		1,122.2		3,089.8		(189.4		)	4,269.5
LONG-TERM LIABILITIES:
Long-term debt	1,919.8		—		8.7		—			1,928.5
Intercompany loans payable	501.9		656.2		574.9		(1,733.0		)	—
Other	161.0		164.4		319.3		(27.6		)	617.1
Total long-term liabilities	2,582.7		820.6		902.9		(1,760.6		)	2,545.6
EQUITY:
Lear Corporation stockholders’ equity	3,037.6		2,913.8		2,622.5		(5,536.3		)	3,037.6
Noncontrolling interests	—		—		106.8		—			106.8
Equity	3,037.6		2,913.8		2,729.3		(5,536.3		)	3,144.4
Total liabilities and equity	$	5,867.2	$	4,856.6	$	6,722.0	$	(7,486.3	)	$	9,959.5



	December 31, 2015
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	526.4	$	0.3	$	669.9	$	—		$	1,196.6
Accounts receivable	46.4		534.5		2,009.1		—			2,590.0
Inventories	4.0		407.0		536.6		—			947.6
Intercompany accounts	45.9		79.5		—		(125.4		)	—
Other	114.0		25.8		412.6		—			552.4
Total current assets	736.7		1,047.1		3,628.2		(125.4		)	5,286.6
LONG-TERM ASSETS:
Property, plant and equipment, net	134.2		417.6		1,274.7		—			1,826.5
Goodwill	39.9		651.3		362.6		—			1,053.8
Investments in subsidiaries	3,101.3		2,109.6		—		(5,210.9		)	—
Intercompany loans receivable	904.1		184.5		245.1		(1,333.7		)	—
Other	566.3		203.9		493.8		(25.1		)	1,238.9
Total long-term assets	4,745.8		3,566.9		2,376.2		(6,569.7		)	4,119.2
Total assets	$	5,482.5	$	4,614.0	$	6,004.4	$	(6,695.1	)	$	9,405.8
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	78.0	$	681.2	$	1,745.2	$	—		$	2,504.4
Accrued liabilities	144.0		277.0		891.1		—			1,312.1
Intercompany accounts	—		—		125.4		(125.4		)	—
Current portion of long-term debt	21.9		—		1.2		—			23.1
Total current liabilities	243.9		958.2		2,762.9		(125.4		)	3,839.6
LONG-TERM LIABILITIES:
Long-term debt	1,925.3		—		6.4		—			1,931.7
Intercompany loans payable	221.6		650.1		462.0		(1,333.7		)	—
Other	164.3		164.9		312.7		(25.1		)	616.8
Total long-term liabilities	2,311.2		815.0		781.1		(1,358.8		)	2,548.5
EQUITY:
Lear Corporation stockholders’ equity	2,927.4		2,840.8		2,370.1		(5,210.9		)	2,927.4
Noncontrolling interests	—		—		90.3		—			90.3
Equity	2,927.4		2,840.8		2,460.4		(5,210.9		)	3,017.7
Total liabilities and equity	$	5,482.5	$	4,614.0	$	6,004.4	$	(6,695.1	)	$	9,405.8

Schedule of Condensed Income Statement



	Three Months Ended April 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	105.6		$	2,038.4		$	3,841.2		$	(1,322.3	)	$	4,662.9
Cost of sales	158.5			1,797.5			3,493.5			(1,322.3		)	4,127.2
Selling, general and administrative expenses	73.7			5.1			70.2			—			149.0
Intercompany operating (income) expense, net	(129.9		)	74.5			55.4			—			—
Amortization of intangible assets	0.7			5.2			7.3			—			13.2
Interest expense	16.2			6.9			(2.0		)	—			21.1
Other expense, net	10.3			(0.4		)	(1.4		)	—			8.5
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(23.9		)	149.6			218.2			—			343.9
Provision for income taxes	(9.5		)	60.2			47.5			—			98.2
Equity in net income of affiliates	0.1			(0.5		)	(16.4		)	—			(16.8		)
Equity in net income of subsidiaries	(262.9		)	(132.3		)	—			395.2			—
Consolidated net income	248.4			222.2			187.1			(395.2		)	262.5
Less: Net income attributable to noncontrolling interests	—			—			14.1			—			14.1
Net income attributable to Lear	$	248.4		$	222.2		$	173.0		$	(395.2	)	$	248.4

Consolidated comprehensive income	$	317.9		$	228.1		$	248.7		$	(462.5	)	$	332.2
Less: Comprehensive income attributable to noncontrolling interests	—			—			14.3			—			14.3
Comprehensive income attributable to Lear	$	317.9		$	228.1		$	234.4		$	(462.5	)	$	317.9



	Three Months Ended March 28, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	96.8		$	1,987.9		$	3,727.6		$	(1,290.9	)	$	4,521.4
Cost of sales	148.3			1,812.0			3,426.3			(1,290.9		)	4,095.7
Selling, general and administrative expenses	61.2			23.8			66.7			—			151.7
Intercompany operating (income) expense, net	(147.9		)	70.4			77.5			—			—
Amortization of intangible assets	0.4			5.2			7.7			—			13.3
Interest expense	20.8			5.9			(2.3		)	—			24.4
Other expense, net	14.2			(2.1		)	17.9			—			30.0
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(0.2		)	72.7			133.8			—			206.3
Provision for income taxes	2.8			31.5			28.6			—			62.9
Equity in net income of affiliates	(0.3		)	(0.7		)	(12.3		)	—			(13.3		)
Equity in net income of subsidiaries	(150.0		)	(63.4		)	—			213.4			—
Consolidated net income	147.3			105.3			117.5			(213.4		)	156.7
Less: Net income attributable to noncontrolling interests	—			—			9.4			—			9.4
Net income attributable to Lear	$	147.3		$	105.3		$	108.1		$	(213.4	)	$	147.3

Consolidated comprehensive income	$	19.5		$	88.6		$	(4.5	)	$	(74.8	)	$	28.8
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.3			—			9.3
Comprehensive income attributable to Lear	$	19.5		$	88.6		$	(13.8	)	$	(74.8	)	$	19.5

Schedule of Condensed Cash Flow Statement



	Three Months Ended April 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	(31.2	)	$	123.9		$	195.9		$	—		$	288.6
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(9.8		)	(25.9		)	(52.4		)	—			(88.1		)
Intercompany transactions	(32.4		)	15.8			(278.6		)	295.2			—
Other, net	(3.2		)	0.1			1.3			—			(1.8		)
Net cash used in investing activities	(45.4		)	(10.0		)	(329.7		)	295.2			(89.9		)
Cash Flows from Financing Activities:
Credit agreement repayments	(3.1		)	—			—			—			(3.1		)
Short-term borrowings	—			—			2.6			—			2.6
Repurchase of common stock	(154.7		)	—			—			—			(154.7		)
Dividends paid to Lear Corporation stockholders	(25.3		)	—			—			—			(25.3		)
Intercompany transactions	280.3			(114.2		)	129.1			(295.2		)	—
Other, net	(50.6		)	—			(0.4		)				(51.0		)
Net cash used in financing activities	46.6			(114.2		)	131.3			(295.2		)	(231.5		)

Effect of foreign currency translation	—			—			10.3			—			10.3
Net Change in Cash and Cash Equivalents	(30.0		)	(0.3		)	7.8			—			(22.5		)
Cash and Cash Equivalents as of Beginning of Period	526.4			0.3			669.9			—			1,196.6
Cash and Cash Equivalents as of End of Period	$	496.4		$	—		$	677.7		$	—		$	1,174.1



	Three Months Ended March 28, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Used in Operating Activities	$	9.2		$	(216.8	)	$	216.0		$	(75.0	)	$	(66.6	)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(3.7		)	(23.9		)	(71.2		)	—			(98.8		)
Acquisitions, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below)	(493.5		)	1.2			19.0			—			(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		)	(24.4		)	(15.9		)	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 (see non-cash financing activities below) (Note 7)	(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			241.9			(341.0		)	57.4			—
Other, net	(48.0		)	—			2.0			—			(46.0		)
Net cash provided by financing activities	354.3			241.9			(339.1		)	57.4			314.5

Effect of foreign currency translation	—			—			(29.6		)	—			(29.6		)
Net Change in Cash and Cash Equivalents	(178.0		)	0.7			(168.6		)	—			(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		$	0.7		$	547.7		$	—		$	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	)

Long-Term Debt

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



	April 2, 2016			December 31, 2015
Credit agreement	$	485.5		$	488.4
Senior notes	1,459.3			1,458.8
	1,944.8			1,947.2
Less — Current portion	(25.0		)	(21.9		)
Long-term debt	$	1,919.8		$	1,925.3