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v3.19.3.a.u2

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Accounting Policies [Abstract] |
Summary of Inventories | A summary of inventories is shown below (in millions):
December 31, | 2019 |  | 2018
Raw materials | $ | 906.3 |  |  | $ | 859.4 |
Work-in-process | 107.0 |  |  | 104.6 |
Finished goods | 380.4 |  |  | 346.0 |
Reserves | (135.5 | ) |  | (113.2 | )
Inventories | $ | 1,258.2 |  |  | $ | 1,196.8 |
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, | 2019 |  | 2018
Current | $ | 157.2 |  |  | $ | 160.9 |
Long-term | 113.8 |  |  | 80.4 |
Recoverable customer E&D and tooling | $ | 271.0 |  |  | $ | 241.3 |
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, | 2019 |  | 2018
Land | $ | 113.1 |  |  | $ | 116.8 |
Buildings and improvements | 831.3 |  |  | 809.3 |
Machinery and equipment | 3,844.1 |  |  | 3,463.3 |
Construction in progress | 382.4 |  |  | 389.3 |
Total property, plant and equipment | 5,170.9 |  |  | 4,778.7 |
Less – accumulated depreciation | (2,466.7 | ) |  | (2,180.6 | )
Net property, plant and equipment | $ | 2,704.2 |  |  | $ | 2,598.1 |
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, 2019, is shown below (in millions):
| Seating |  | E-Systems |  | Total
Balance as of December 31, 2017 | $ | 1,274.4 |  |  | $ | 126.9 |  |  | $ | 1,401.3 |
Affiliate transaction | — |  |  | 22.4 |  |  | 22.4 |
Foreign currency translation and other | (30.1 | ) |  | 11.7 |  |  | (18.4 | )
Balance as of December 31, 2018 | 1,244.3 |  |  | 161.0 |  |  | 1,405.3 |
Acquisition | — |  |  | 219.0 |  |  | 219.0 |
Foreign currency translation and other | (8.9 | ) |  | (1.1 | ) |  | (10.0 | )
Balance as of December 31, 2019 | $ | 1,235.4 |  |  | $ | 378.9 |  |  | $ | 1,614.3 |
Summary of Finite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2019 and 2018, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 531.9 |  |  | $ | (203.0 | ) |  | $ | 328.9 |  |  | 11.6
Licensing agreements | 75.0 |  |  | (10.2 | ) |  | 64.8 |  |  | 5.0
Technology | 35.0 |  |  | (15.9 | ) |  | 19.1 |  |  | 7.0
Other | 1.4 |  |  | (1.3 | ) |  | 0.1 |  |  | 2.5
| $ | 643.3 |  |  | $ | (230.4 | ) |  | $ | 412.9 |  |  | 10.5
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 10.8 |  |  | — |  |  | 10.8 |  |  |
Balance as of December 31, 2019 | $ | 654.1 |  |  | $ | (230.4 | ) |  | $ | 423.7 |  |  |
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 533.4 |  |  | $ | (156.3 | ) |  | $ | 377.1 |  |  | 11.6
Technology | 20.1 |  |  | (11.8 | ) |  | 8.3 |  |  | 8.5
Other | 1.4 |  |  | (1.1 | ) |  | 0.3 |  |  | 2.5
| $ | 554.9 |  |  | $ | (169.2 | ) |  | $ | 385.7 |  |  | 11.5
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 10.8 |  |  | — |  |  | 10.8 |  |  |
Balance as of December 31, 2018 | $ | 565.7 |  |  | $ | (169.2 | ) |  | $ | 396.5 |  |  |
Summary of Indefinite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2019 and 2018, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 531.9 |  |  | $ | (203.0 | ) |  | $ | 328.9 |  |  | 11.6
Licensing agreements | 75.0 |  |  | (10.2 | ) |  | 64.8 |  |  | 5.0
Technology | 35.0 |  |  | (15.9 | ) |  | 19.1 |  |  | 7.0
Other | 1.4 |  |  | (1.3 | ) |  | 0.1 |  |  | 2.5
| $ | 643.3 |  |  | $ | (230.4 | ) |  | $ | 412.9 |  |  | 10.5
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 10.8 |  |  | — |  |  | 10.8 |  |  |
Balance as of December 31, 2019 | $ | 654.1 |  |  | $ | (230.4 | ) |  | $ | 423.7 |  |  |
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
2020 | $ | 66.2 |
2021 | 64.5 |
2022 | 63.7 |
2023 | 62.1 |
2024 | 46.8 |
Schedule of Accrued Liabilities | A summary of accrued liabilities as of December 31, 2019 and 2018, is shown below (in millions):
December 31, | 2019 |  | 2018
Compensation and employee benefits | $ | 319.2 |  |  | $ | 321.2 |
Income and other taxes payable | 256.6 |  |  | 279.3 |
Restructuring | 157.7 |  |  | 108.7 |
Current portion of lease obligations | 113.9 |  |  | — |
Other | 963.8 |  |  | 905.8 |
Accrued liabilities | $ | 1,811.2 |  |  | $ | 1,615.0 |
Summary of Other (Income) Expense, Net | A summary of other (income) expense, net is shown below (in millions):
For the year ended December 31, | 2019 |  | 2018 |  | 2017
Other expense | $ | 52.2 |  |  | $ | 43.8 |  |  | $ | 57.2 |
Other income | (27.6 | ) |  | (12.2 | ) |  | (61.3 | )
Other (income) expense, net | $ | 24.6 |  |  | $ | 31.6 |  |  | $ | (4.1 | )
Summary of Information Used to Compute Basic and Diluted Net Income Per Share | A summary of information used to compute basic and diluted net income per share available to Lear common stockholders is shown below (in millions, except share and per share data):
For the year ended December 31, | 2019 |  | 2018 |  | 2017
Net income attributable to Lear | $ | 753.6 |  |  | $ | 1,149.8 |  |  | $ | 1,313.4 |
Redeemable noncontrolling interest adjustment | 35.9 |  |  | (10.4 | ) |  | (25.5 | )
Net income available to Lear common stockholders | $ | 789.5 |  |  | $ | 1,139.4 |  |  | $ | 1,287.9 |
Average common shares outstanding | 61,697,192 |  |  | 65,672,164 |  |  | 68,542,363 |
Dilutive effect of common stock equivalents | 226,336 |  |  | 489,652 |  |  | 735,618 |
Average diluted shares outstanding | 61,923,528 |  |  | 66,161,816 |  |  | 69,277,981 |
Basic net income per share available to Lear common stockholders | $ | 12.80 |  |  | $ | 17.35 |  |  | $ | 18.79 |
Diluted net income per share available to Lear common stockholders | $ | 12.75 |  |  | $ | 17.22 |  |  | $ | 18.59 |

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