Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Oct. 01, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	October 1, 2016
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	408.7	$	0.3	$	932.6	$	—		$	1,341.6
Accounts receivable	65.7		655.0		2,388.8		—			3,109.5
Inventories	1.6		434.2		627.2		—			1,063.0
Intercompany accounts	38.2		150.5		—		(188.7		)	—
Other	90.7		14.1		434.9		—			539.7
Total current assets	604.9		1,254.1		4,383.5		(188.7		)	6,053.8
LONG-TERM ASSETS:
Property, plant and equipment, net	166.8		405.6		1,348.5		—			1,920.9
Goodwill	39.9		651.3		378.2		—			1,069.4
Investments in subsidiaries	3,590.2		1,189.2		—		(4,779.4		)	—
Intercompany loans receivable	1,054.0		1,389.5		109.1		(2,552.6		)	—
Other	560.2		189.9		506.9		(23.7		)	1,233.3
Total long-term assets	5,411.1		3,825.5		2,342.7		(7,355.7		)	4,223.6
Total assets	$	6,016.0	$	5,079.6	$	6,726.2	$	(7,544.4	)	$	10,277.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—	$	—	$	8.7	$	—		$	8.7
Accounts payable and drafts	77.2		810.9		1,885.1		—			2,773.2
Accrued liabilities	245.2		337.5		1,086.1		—			1,668.8
Intercompany accounts	—		—		188.7		(188.7		)	—
Current portion of long-term debt	31.3		—		1.3		—			32.6
Total current liabilities	353.7		1,148.4		3,169.9		(188.7		)	4,483.3
LONG-TERM LIABILITIES:
Long-term debt	1,902.2		—		5.1		—			1,907.3
Intercompany loans payable	511.0		687.0		1,354.5		(2,552.5		)	—
Other	170.6		168.5		328.4		(23.7		)	643.8
Total long-term liabilities	2,583.8		855.5		1,688.0		(2,576.2		)	2,551.1
EQUITY:
Lear Corporation stockholders’ equity	3,078.5		3,075.7		1,703.8		(4,779.5		)	3,078.5
Noncontrolling interests	—		—		164.5		—			164.5
Equity	3,078.5		3,075.7		1,868.3		(4,779.5		)	3,243.0
Total liabilities and equity	$	6,016.0	$	5,079.6	$	6,726.2	$	(7,544.4	)	$	10,277.4



	December 31, 2015
	Lear		Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	526.4	$	0.4	$	669.8	$	—		$	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		1,047.2		3,628.1		(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		1,458.5		—		(4,559.8		)	—
Intercompany loans receivable	904.1		836.7		77.7		(1,818.5		)	—
Other	566.3		203.9		493.8		(25.1		)	1,238.9
Total long-term assets	4,745.8		3,568.0		2,208.8		(6,403.4		)	4,119.2
Total assets	$	5,482.5	$	4,615.2	$	5,836.9	$	(6,528.8	)	$	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		946.8		(1,818.5		)	—
Other	164.3		164.9		312.7		(25.1		)	616.8
Total long-term liabilities	2,311.2		815.0		1,265.9		(1,843.6		)	2,548.5
EQUITY:
Lear Corporation stockholders’ equity	2,927.4		2,842.0		1,717.8		(4,559.8		)	2,927.4
Noncontrolling interests	—		—		90.3		—			90.3
Equity	2,927.4		2,842.0		1,808.1		(4,559.8		)	3,017.7
Total liabilities and equity	$	5,482.5	$	4,615.2	$	5,836.9	$	(6,528.8	)	$	9,405.8

Schedule of Condensed Income Statement



	Three Months Ended October 1, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	106.9		$	1,991.1		$	3,742.9		$	(1,314.5	)	$	4,526.4
Cost of sales	163.5			1,744.1			3,419.4			(1,314.5		)	4,012.5
Selling, general and administrative expenses	77.3			4.7			71.6			—			153.6
Intercompany operating (income) expense, net	(79.8		)	62.1			17.7			—			—
Amortization of intangible assets	0.7			5.2			9.3			—			15.2
Interest expense	16.5			6.1			(2.0		)	—			20.6
Other (income) expense, net	10.6			(0.7		)	4.3			—			14.2
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(81.9		)	169.6			222.6			—			310.3
Provision for income taxes	(30.9		)	64.4			54.7			—			88.2
Equity in net income of affiliates	(1.1		)	0.3			(12.1		)	—			(12.9		)
Equity in net income of subsidiaries	(264.3		)	(115.7		)	—			380.0			—
Consolidated net income	214.4			220.6			180.0			(380.0		)	235.0
Less: Net income attributable to noncontrolling interests	—			—			20.6			—			20.6
Net income attributable to Lear	$	214.4		$	220.6		$	159.4		$	(380.0	)	$	214.4

Consolidated comprehensive income	$	224.7		$	215.9		$	194.6		$	(389.9	)	$	245.3
Less: Comprehensive income attributable to noncontrolling interests	—			—			20.6			—			20.6
Comprehensive income attributable to Lear	$	224.7		$	215.9		$	174.0		$	(389.9	)	$	224.7



	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			6.1			(1.1		)	—			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		)	152.8			177.6			—			259.5
Provision for income taxes	(26.3		)	53.8			48.6			—			76.1
Equity in net income of affiliates	(0.4		)	(1.0		)	(8.5		)	—			(9.9		)
Equity in net income of subsidiaries	(225.2		)	(100.9		)	—			326.1			—
Consolidated net income	181.0			200.9			137.5			(326.1		)	193.3
Less: Net income attributable to noncontrolling interests	—			—			12.3			—			12.3
Net income attributable to Lear	$	181.0		$	200.9		$	125.2		$	(326.1	)	$	181.0

Consolidated comprehensive income	$	94.8		$	186.6		$	62.9		$	(239.6	)	$	104.7
Less: Comprehensive income attributable to noncontrolling interests	—			—			9.9			—			9.9
Comprehensive income attributable to Lear	$	94.8		$	186.6		$	53.0		$	(239.6	)	$	94.8



	Nine Months Ended October 1, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	317.5		$	6,111.2		$	11,467.6		$	(3,982.2	)	$	13,914.1
Cost of sales	486.7			5,367.1			10,452.5			(3,982.2		)	12,324.1
Selling, general and administrative expenses	229.0			14.9			213.0			—			456.9
Intercompany operating (income) expense, net	(312.9		)	210.3			102.6			—			—
Amortization of intangible assets	2.2			15.6			23.9			—			41.7
Interest expense	49.0			18.0			(5.0		)	—			62.0
Other (income) expense, net	30.2			(0.7		)	(30.3		)	—			(0.8		)
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(166.7		)	486.0			710.9			—			1,030.2
Provision for income taxes	(62.4		)	181.8			168.0			—			287.4
Equity in net income of affiliates	(1.6		)	(0.7		)	(46.9		)	—			(49.2		)
Equity in net income of subsidiaries	(847.9		)	(403.0		)	—			1,250.9			—
Consolidated net income	745.2			707.9			589.8			(1,250.9		)	792.0
Less: Net income attributable to noncontrolling interests	—			—			46.8			—			46.8
Net income attributable to Lear	$	745.2		$	707.9		$	543.0		$	(1,250.9	)	$	745.2

Consolidated comprehensive income	$	771.8		$	697.7		$	621.3		$	(1,274.8	)	$	816.0
Less: Comprehensive income attributable to noncontrolling interests	—			—			44.2			—			44.2
Comprehensive income attributable to Lear	$	771.8		$	697.7		$	577.1		$	(1,274.8	)	$	771.8



	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			17.3			(5.5		)	—			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		)	313.1			503.1			—			722.1
Provision for income taxes	(32.1		)	117.1			125.9			—			210.9
Equity in net income of affiliates	1.0			(2.1		)	(30.6		)	—			(31.7		)
Equity in net income of subsidiaries	(573.2		)	(271.9		)	—			845.1			—
Consolidated net income	510.2			470.0			407.8			(845.1		)	542.9
Less: Net income attributable to noncontrolling interests	—			—			32.7			—			32.7
Net income attributable to Lear	$	510.2		$	470.0		$	375.1		$	(845.1	)	$	510.2

Consolidated comprehensive income	$	325.8		$	442.0		$	237.7		$	(649.5	)	$	356.0
Less: Comprehensive income attributable to noncontrolling interests	—			—			30.2			—			30.2
Comprehensive income attributable to Lear	$	325.8		$	442.0		$	207.5		$	(649.5	)	$	325.8

Schedule of Condensed Cash Flow Statement



	Nine Months Ended October 1, 2016
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	122.6		$	380.6		$	614.8		$	(24.1	)	$	1,093.9
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(29.2		)	(77.0		)	(194.1		)	—			(300.3		)
Intercompany transactions	202.1			32.2			(31.4		)	(202.9		)	—
Other, net	(10.2		)	0.8			61.2			—			51.8
Net cash used in investing activities	162.7			(44.0		)	(164.3		)	(202.9		)	(248.5		)
Cash Flows from Financing Activities:
Credit agreement repayments	(15.6		)	—			—			—			(15.6		)
Short-term borrowings	—			—			8.9			—			8.9
Repurchase of common stock	(557.7		)	—			—			—			(557.7		)
Dividends paid to Lear Corporation stockholders	(68.1		)	—			—			—			(68.1		)
Dividends paid to noncontrolling interests	—			—			(14.8		)	—			(14.8		)
Intercompany transactions	289.4			(336.7		)	(179.7		)	227.0			—
Other, net	(51.0		)	—			(1.1		)				(52.1		)
Net cash used in financing activities	(403.0		)	(336.7		)	(186.7		)	227.0			(699.4		)

Effect of foreign currency translation	—			—			(1.0		)	—			(1.0		)
Net Change in Cash and Cash Equivalents	(117.7		)	(0.1		)	262.8			—			145.0
Cash and Cash Equivalents as of Beginning of Period	526.4			0.4			669.8			—			1,196.6
Cash and Cash Equivalents as of End of Period	$	408.7		$	0.3		$	932.6		$	—		$	1,341.6



	Nine Months Ended September 26, 2015
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net Cash Provided by Operating Activities	$	109.3		$	87.2		$	623.0		$	(133.5	)	$	686.0
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(26.4		)	(79.8		)	(221.5		)	—			(327.7		)
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	385.4			(23.3		)	126.4			(488.5		)	—
Other, net	(31.1		)	7.8			12.7			—			(10.6		)
Net cash used in investing activities	(157.6		)	(94.1		)	(63.4		)	(488.5		)	(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 (see non-cash financing activities below) (Note 7)	(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			7.0			(659.4		)	622.0			—
Other, net	(53.5		)	—			(0.1		)	—			(53.6		)
Net cash provided by (used in) financing activities	25.8			7.0			(675.7		)	622.0			(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			0.1			716.2			—			1,094.1
Cash and Cash Equivalents as of End of Period	$	355.3		$	0.2		$	567.3		$	—		$	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	)

Long-Term Debt

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



	October 1, 2016			December 31, 2015
Credit agreement	$	473.2		$	488.4
Senior notes	1,460.3			1,458.8
	1,933.5			1,947.2
Less — Current portion	(31.3		)	(21.9		)
Long-term debt	$	1,902.2		$	1,925.3