Segment Reporting

The Company has two reportable operating segments: Seating, which includes complete seat systems and all major seat components, including seat covers and surface materials such as leather and fabric, seat structures and mechanisms, seat foam and headrests, and E-Systems, which includes complete electrical distribution systems, electronic control modules and associated software and wireless communication modules. Key components in the electrical distribution system include wire harnesses, terminals and connectors and junction boxes, including components and systems for high power battery electric vehicle and hybrid electric vehicle power management and distribution systems. The other category includes unallocated costs related to corporate headquarters, regional headquarters and the elimination of intercompany activities, none of which meets the requirements for being classified as an operating segment.

The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before equity in net income of affiliates, interest expense and other expense, net, ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization.

A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions):



	Three Months Ended March 31, 2018
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	4,329.9	$	1,403.8	$	—		$	5,733.7
Segment earnings ⁽¹⁾	339.5		190.8		(67.4		)	462.9
Depreciation and amortization	80.0		36.6		3.6			120.2
Capital expenditures	112.3		48.2		2.3			162.8
Total assets	7,901.5		2,631.3		2,148.4			12,681.2



	Three Months Ended April 1, 2017
	Seating		E-Systems		Other			Consolidated
Revenues from external customers	$	3,868.0	$	1,130.5	$	—		$	4,998.5
Segment earnings ⁽¹⁾	320.3		164.9		(68.5		)	416.7
Depreciation and amortization	65.0		28.3		3.6			96.9
Capital expenditures	82.7		29.5		8.6			120.8
Total assets	6,824.5		1,835.7		1,940.3			10,600.5

⁽¹⁾See definition above

For the three months ended March 31, 2018, segment earnings include restructuring charges of $14.4 million, $1.9 million and $2.1 million in the Seating and E-Systems segments and in the other category, respectively (Note 2, "Restructuring").

For the three months ended April 1, 2017, segment earnings include restructuring charges of $6.7 million, $1.7 million and $0.1 million in the Seating and E-Systems segments and in the other category, respectively (Note 2, "Restructuring").

A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions):



	Three Months Ended
	March 31, 2018			April 1, 2017
Segment earnings	$	462.9		$	416.7
Interest expense	20.7			20.8
Other (income) expense, net	(5.6		)	3.7
Consolidated income before provision for income taxes and equity in net income of affiliates	$	447.8		$	392.2