Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jul. 02, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	July 2, 2016
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	520.5	$	—	$	874.2	$	—		$	1,394.7
Accounts receivable	62.1		642.9		2,282.3		—			2,987.3
Inventories	1.7		409.8		599.8		—			1,011.3
Intercompany accounts	75.7		106.7		—		(182.4		)	—
Other	102.6		16.2		424.1		—			542.9
Total current assets	762.6		1,175.6		4,180.4		(182.4		)	5,936.2
LONG-TERM ASSETS:
Property, plant and equipment, net	164.2		402.1		1,324.0		—			1,890.3
Goodwill	39.9		651.3		379.9		—			1,071.1
Investments in subsidiaries	3,384.3		2,338.7		—		(5,723.0		)	—
Intercompany loans receivable	1,053.3		147.6		548.9		(1,749.8		)	—
Other	559.4		194.7		513.7		(24.9		)	1,242.9
Total long-term assets	5,201.1		3,734.4		2,766.5		(7,497.7		)	4,204.3
Total assets	$	5,963.7	$	4,910.0	$	6,946.9	$	(7,680.1	)	$	10,140.5
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—	$	—	$	5.0	$	—		$	5.0
Accounts payable and drafts	76.8		780.8		1,909.5		—			2,767.1
Accrued liabilities	261.5		333.0		1,035.3		—			1,629.8
Intercompany accounts	—		—		182.4		(182.4		)	—
Current portion of long-term debt	28.1		—		1.3		—			29.4
Total current liabilities	366.4		1,113.8		3,133.5		(182.4		)	4,431.3
LONG-TERM LIABILITIES:
Long-term debt	1,911.1		—		5.3		—			1,916.4
Intercompany loans payable	508.2		681.8		559.8		(1,749.8		)	—
Other	165.2		165.6		330.8		(24.9		)	636.7
Total long-term liabilities	2,584.5		847.4		895.9		(1,774.7		)	2,553.1
EQUITY:
Lear Corporation stockholders’ equity	3,012.8		2,948.8		2,774.2		(5,723.0		)	3,012.8
Noncontrolling interests	—		—		143.3		—			143.3
Equity	3,012.8		2,948.8		2,917.5		(5,723.0		)	3,156.1
Total liabilities and equity	$	5,963.7	$	4,910.0	$	6,946.9	$	(7,680.1	)	$	10,140.5



	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		2,110.7		—		(5,212.0		)	—
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		3,568.0		2,376.2		(6,570.8		)	4,119.2
Total assets	$	5,482.5	$	4,615.1	$	6,004.4	$	(6,696.2	)	$	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		2,841.9		2,370.1		(5,212.0		)	2,927.4
Noncontrolling interests	—		—		90.3		—			90.3
Equity	2,927.4		2,841.9		2,460.4		(5,212.0		)	3,017.7
Total liabilities and equity	$	5,482.5	$	4,615.1	$	6,004.4	$	(6,696.2	)	$	9,405.8

Schedule of Condensed Income Statement



	Three Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	105.0		$	2,081.7		$	3,883.5		$	(1,345.4	)	$	4,724.8
Cost of sales	164.7			1,825.5			3,539.6			(1,345.4		)	4,184.4
Selling, general and administrative expenses	78.0			5.1			71.2			—			154.3
Intercompany operating (income) expense, net	(103.2		)	73.7			29.5			—			—
Amortization of intangible assets	0.8			5.2			7.3			—			13.3
Interest expense	16.3			7.0			(3.0		)	—			20.3
Other (income) expense, net	9.3			0.4			(33.2		)	—			(23.5		)
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(60.9		)	164.8			272.1			—			376.0
Provision for income taxes	(22.0		)	56.4			66.6			—			101.0
Equity in net income of affiliates	(0.6		)	(0.5		)	(18.4		)	—			(19.5		)
Equity in net income of subsidiaries	(320.7		)	(157.3		)	—			478.0			—
Consolidated net income	282.4			266.2			223.9			(478.0		)	294.5
Less: Net income attributable to noncontrolling interests	—			—			12.1			—			12.1
Net income attributable to Lear	$	282.4		$	266.2		$	211.8		$	(478.0	)	$	282.4

Consolidated comprehensive income	$	229.2		$	254.8		$	179.2		$	(424.7	)	$	238.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.3			—			9.3
Comprehensive income attributable to Lear	$	229.2		$	254.8		$	169.9		$	(424.7	)	$	229.2



	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		)	(108.3		)	—			306.3			—
Consolidated net income	181.9			163.8			153.5			(306.3		)	192.9
Less: Net income attributable to noncontrolling interests	—			—			11.0			—			11.0
Net income attributable to Lear	$	181.9		$	163.8		$	142.5		$	(306.3	)	$	181.9

Consolidated comprehensive income	$	211.5		$	166.8		$	180.0		$	(335.8	)	$	222.5
Less: Comprehensive income attributable to noncontrolling interests	—			—			11.0			—			11.0
Comprehensive income attributable to Lear	$	211.5		$	166.8		$	169.0		$	(335.8	)	$	211.5



	Six Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	210.6		$	4,120.1		$	7,724.7		$	(2,667.7	)	$	9,387.7
Cost of sales	323.2			3,623.0			7,033.1			(2,667.7		)	8,311.6
Selling, general and administrative expenses	151.7			10.2			141.4			—			303.3
Intercompany operating (income) expense, net	(233.1		)	148.2			84.9			—			—
Amortization of intangible assets	1.5			10.4			14.6			—			26.5
Interest expense	32.5			13.9			(5.0		)	—			41.4
Other (income) expense, net	19.6			—			(34.6		)	—			(15.0		)
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(84.8		)	314.4			490.3			—			719.9
Provision for income taxes	(31.5		)	116.6			114.1			—			199.2
Equity in net income of affiliates	(0.5		)	(1.0		)	(34.8		)	—			(36.3		)
Equity in net income of subsidiaries	(583.6		)	(289.6		)	—			873.2			—
Consolidated net income	530.8			488.4			411.0			(873.2		)	557.0
Less: Net income attributable to noncontrolling interests	—			—			26.2			—			26.2
Net income attributable to Lear	$	530.8		$	488.4		$	384.8		$	(873.2	)	$	530.8

Consolidated comprehensive income	$	547.1		$	482.9		$	427.9		$	(887.2	)	$	570.7
Less: Comprehensive income attributable to noncontrolling interests	—			—			23.6			—			23.6
Comprehensive income attributable to Lear	$	547.1		$	482.9		$	404.3		$	(887.2	)	$	547.1



	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		)	(172.0		)	—			520.0			—
Consolidated net income	329.2			269.4			271.0			(520.0		)	349.6
Less: Net income attributable to noncontrolling interests	—			—			20.4			—			20.4
Net income attributable to Lear	$	329.2		$	269.4		$	250.6		$	(520.0	)	$	329.2

Consolidated comprehensive income	$	231.0		$	255.7		$	175.5		$	(410.9	)	$	251.3
Less: Comprehensive income attributable to noncontrolling interests	—			—			20.3			—			20.3
Comprehensive income attributable to Lear	$	231.0		$	255.7		$	155.2		$	(410.9	)	$	231.0

Schedule of Condensed Cash Flow Statement



	Six Months Ended July 2, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	70.9		$	275.1		$	482.2		$	(10.6	)	$	817.6
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(21.1		)	(47.2		)	(113.4		)	—			(181.7		)
Intercompany transactions	135.9			36.9			(303.8		)	131.0			—
Other, net	(4.0		)	0.6			53.9			—			50.5
Net cash used in investing activities	110.8			(9.7		)	(363.3		)	131.0			(131.2		)
Cash Flows from Financing Activities:
Credit agreement repayments	(9.4		)	—			—			—			(9.4		)
Short-term borrowings	—			—			5.2			—			5.2
Repurchase of common stock	(367.1		)	—			—			—			(367.1		)
Dividends paid to Lear Corporation stockholders	(47.0		)	—			—			—			(47.0		)
Dividends paid to noncontrolling interests	—			—			(14.3		)	—			(14.3		)
Intercompany transactions	286.6			(265.7		)	99.5			(120.4		)	—
Other, net	(50.7		)	—			(0.6		)				(51.3		)
Net cash used in financing activities	(187.6		)	(265.7		)	89.8			(120.4		)	(483.9		)

Effect of foreign currency translation	—			—			(4.4		)	—			(4.4		)
Net Change in Cash and Cash Equivalents	(5.9		)	(0.3		)	204.3			—			198.1
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	$	520.5		$	—		$	874.2		$	—		$	1,394.7



	Six Months Ended June 27, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by 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		)
Acquisitions, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below)	(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 (see non-cash financing activities below) (Note 7)	(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 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	)

Long-Term Debt

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



	July 2, 2016			December 31, 2015
Credit agreement	$	479.3		$	488.4
Senior notes	1,459.9			1,458.8
	1,939.2			1,947.2
Less — Current portion	(28.1		)	(21.9		)
Long-term debt	$	1,911.1		$	1,925.3