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Comprehensive Income (Loss) and Equity | 9 Months Ended
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Oct. 03, 2020
Equity [Abstract] |
Comprehensive Income (Loss) and Equity | (15) Comprehensive Income (Loss) and Equity Comprehensive Income (Loss) Comprehensive income (loss) is defined as all changes in the Company’s net assets except changes resulting from transactions with stockholders. It differs from net income (loss) in that certain items recorded in equity are included in comprehensive income (loss). Accumulated Other Comprehensive Loss A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 3, 2020, is shown below (in millions):
|  | Three Months Ended October 3, 2020 |  |  | Nine Months Ended October 3, 2020 |
Defined benefit plans: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (211.7 | ) |  | $ | (217.6 | )
Reclassification adjustments (net of tax expense of $0.6 million and $1.3 million in the three and nine months ended October 3, 2020, respectively) |  |  | 11.0 |  |  |  | 13.1 |
Other comprehensive loss recognized during the period (net of tax benefit of $5.4 million in the three and nine months ended October 3, 2020) |  |  | (29.7 | ) |  |  | (25.9 | )
Balance at end of period |  | $ | (230.4 | ) |  | $ | (230.4 | )
Derivative instruments and hedging: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (50.4 | ) |  | $ | 9.8 |
Reclassification adjustments (net of tax expense of $0.1 million and $1.8 million in the three and nine months ended October 3, 2020, respectively) |  |  | 3.9 |  |  |  | 9.2 |
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of ($6.3) million and $9.6 million in the three and nine months ended October 3, 2020, respectively) |  |  | 14.8 |  |  |  | (50.7 | )
Balance at end of period |  | $ | (31.7 | ) |  | $ | (31.7 | )
Foreign currency translation: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (660.9 | ) |  | $ | (564.9 | )
Other comprehensive income (loss) recognized during the period (net of tax benefit of $2.9 million and $0.7 million in the three and nine months ended October 3, 2020, respectively) |  |  | 83.3 |  |  |  | (12.7 | )
Balance at end of period |  | $ | (577.6 | ) |  | $ | (577.6 | )
Total accumulated other comprehensive loss |  | $ | (839.7 | ) |  | $ | (839.7 | )
In the three months ended October 3, 2020, foreign currency translation adjustments are primarily related to the strengthening of the Euro and the Chinese renminbi, partially offset by the weakening of the Brazilian real, relative to the U.S. dollar. In the nine months ended October 3, 2020, foreign currency translation adjustments are primarily related to the weakening of the Brazilian real, largely offset by the strengthening of the Euro and the Chinese renminbi, relative to the U.S. dollar. In the three and nine months ended October 3, 2020, foreign currency translation adjustments include pretax (gains) losses of ($0.5) million and $0.5 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended September 28, 2019, is shown below (in millions):
|  | Three Months Ended September 28, 2019 |  |  | Nine Months Ended September 28, 2019 |
Defined benefit plans: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (173.9 | ) |  | $ | (172.8 | )
Reclassification adjustments (net of tax expense of $0.4 million and $0.8 million in the three and nine months ended September 28, 2019, respectively) |  |  | 1.5 |  |  |  | 4.7 |
Other comprehensive loss recognized during the period (net of tax benefit of $1.6 million in the three and nine months ended September 28, 2019) |  |  | (4.6 | ) |  |  | (8.9 | )
Balance at end of period |  | $ | (177.0 | ) |  | $ | (177.0 | )
Derivative instruments and hedging: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1.2 | ) |  | $ | (9.7 | )
Reclassification adjustments (net of tax benefit of $2.4 million and $7.2 million in the three and nine months ended September 28, 2019, respectively) |  |  | (8.4 | ) |  |  | (25.5 | )
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $1.1 million and ($6.2) million in the three and nine months ended September 28, 2019, respectively) |  |  | (3.9 | ) |  |  | 21.7 |
Balance at end of period |  | $ | (13.5 | ) |  | $ | (13.5 | )
Foreign currency translation: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (523.1 | ) |  | $ | (523.3 | )
Other comprehensive loss recognized during the period (net of tax impact of $— million in the three and nine months ended September 28, 2019) |  |  | (115.7 | ) |  |  | (115.5 | )
Balance at end of period |  | $ | (638.8 | ) |  | $ | (638.8 | )
Total accumulated other comprehensive loss |  | $ | (829.3 | ) |  | $ | (829.3 | )
In the three and nine months ended September 28, 2019, foreign currency translation adjustments are primarily related to the weakening of the Euro and the Chinese renminbi relative to the U.S. dollar and include pretax losses of $0.3 million and $0.2 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. For further information regarding reclassification adjustments related to the Company's defined benefit plans, see Note 10, "Pension and Other Postretirement Benefit Plans." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 18, "Financial Instruments." Lear Corporation Stockholders’ Equity Common Stock Share Repurchase Program In March 2020, as a proactive measure in response to the COVID-19 pandemic, the Company suspended share repurchases under its share repurchase program. Share repurchases prior to the suspension are shown below (in millions except for shares and per share amounts):
Nine Months Ended |  |  | As of |
October 3, 2020 |  |  | October 3, 2020 |
Aggregate Repurchases |  |  | Cash paid for Repurchases |  |  | Number of Shares |  |  | Average Price per Share(1) |  |  | Remaining Purchase Authorization |
$ | 70.0 |  |  | $ | 70.0 |  |  |  | 641,149 |  |  | $ | 109.22 |  |  | $ | 1,430.0 |
(1) | Excludes commissions
Since the first quarter of 2011, the Company's Board of Directors has authorized $6.1 billion in share repurchases under the common stock share repurchase program. As of the end of the third quarter of 2020, the Company has repurchased, in aggregate, $4.7 billion of its outstanding common stock, at an average price of $90.07 per share, excluding commissions and related fees. The Company may implement share repurchases through a variety of methods, including, but not limited to, open market purchases, accelerated stock repurchase programs and structured repurchase transactions. The extent to which the Company will repurchase its outstanding common stock and the timing of such repurchases will depend upon its financial condition, prevailing market conditions, alternative uses of capital and other factors. In addition to shares repurchased under the Company’s common stock share repurchase program described above, the Company classified shares withheld from the settlement of the Company’s restricted stock unit and performance share awards to cover tax withholding requirements as common stock held in treasury in the accompanying condensed consolidated balance sheets as of October 3, 2020 and December 31, 2019. Quarterly Dividend In March 2020, as a proactive measure in response to the COVID-19 pandemic, the Company suspended its quarterly cash dividend. Prior to the suspension, the Company’s Board of Directors declared a cash dividend of $0.77 per share of common stock in the first quarter of 2020 and quarterly cash dividends of $0.75 per share of common stock in the first nine months of 2019. Dividends declared and paid are shown below (in millions):
|  | Nine Months Ended |
|  | October 3, 2020 |  |  | September 28, 2019 |
Dividends declared |  | $ | 46.8 |  |  | $ | 140.3 |
Dividends paid |  |  | 52.0 |  |  |  | 141.1 |
Dividends payable on common shares to be distributed under the Company’s stock-based compensation program will be paid when such common shares are distributed. Redeemable Noncontrolling Interest In accordance with GAAP, the Company records redeemable noncontrolling interests at the greater of (1) the initial carrying amount adjusted for the noncontrolling interest holder’s share of total comprehensive income or loss and dividends ("noncontrolling interest carrying value") or (2) the redemption value as of and based on conditions existing as of the reporting date. Required redeemable noncontrolling interest adjustments are recorded as an increase to redeemable noncontrolling interests, with an offsetting adjustment to retained earnings. The redeemable noncontrolling interest is classified in mezzanine equity in the accompanying condensed consolidated balance sheets as of October 3, 2020 and December 31, 2019. In the second quarter of 2020, the noncontrolling interest holder in Shanghai Lear STEC Automotive Parts Co., Ltd. exercised its option requiring the Company to purchase its 45% redeemable noncontrolling interest for RMB 626.0 million ($92.2 million at October 3, 2020) plus undistributed retained earnings of RMB 175.5 million ($25.8 million at October 3, 2020). The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2020. Approximately 50% of the purchase price and undistributed retained earnings is expected to be paid at closing, with remaining amounts paid in 2021. For further information related to the redeemable noncontrolling interest adjustment, see Note 14, "Net Income (Loss) Per Share Attributable to Lear," herein, as well as Note 5, "Investments in Affiliates and Other Related Party Transactions," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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