XML 36 R24.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Reporting | 9 Months Ended
--- | ---
Oct. 03, 2020
Segment Reporting [Abstract] |
Segment Reporting | (17) 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, as well as sophisticated electronic control modules, electrification products and connectivity products. Key components in the Company's electrical distribution portfolio include wire harnesses, terminals and connectors and junction boxes for both internal combustion engine and electrification architectures that require management of higher voltage and power. Key components in the Company's electronic control module portfolio include body control modules, wireless receiver and transmitter technology and lighting and audio control modules, as well as products specific to electrification and connectivity trends. Electrification products include charging systems (onboard charging modules and cord set charging equipment), battery electronics (battery disconnect units, cell monitoring supervisory systems and integrated total battery control modules) and other power management modules, including converter and inverter systems. Connectivity products include gateway modules and communication modules to manage both wired and wireless networks and data in vehicles. 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. Corporate and regional headquarters costs include various support functions, such as information technology, advanced research and development, corporate finance, legal, executive administration and human resources, as well as advanced engineering expenses. Each of the Company’s operating segments reports its results from operations and makes its requests for capital expenditures directly to the chief operating decision maker. The economic performance of each operating segment is driven primarily by automotive production volumes in the geographic regions in which it operates, as well as by the success of the vehicle platforms for which it supplies products. Also, each operating segment operates in the competitive Tier 1 automotive supplier environment and is continually working with its customers to manage costs and improve quality. The Company’s production processes generally make use of hourly labor, dedicated facilities, sequential manufacturing and assembly processes and commodity raw materials. The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income (loss) before equity in net income of affiliates, interest expense and other (income) expense ("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 October 3, 2020 |
|  | Seating |  |  | E-Systems |  |  | Other |  |  | Consolidated |
Revenues from external customers |  | $ | 3,691.6 |  |  | $ | 1,208.5 |  |  | $ | - |  |  | $ | 4,900.1 |
Segment earnings(1) |  |  | 250.7 |  |  |  | 86.0 |  |  |  | (57.9 | ) |  |  | 278.8 |
Depreciation and amortization |  |  | 87.8 |  |  |  | 44.8 |  |  |  | 3.7 |  |  |  | 136.3 |
Capital expenditures |  |  | 48.8 |  |  |  | 40.2 |  |  |  | 1.1 |  |  |  | 90.1 |
Total assets |  |  | 7,574.2 |  |  |  | 3,232.4 |  |  |  | 2,088.1 |  |  |  | 12,894.7 |
|  | Three Months Ended September 28, 2019 |
|  | Seating |  |  | E-Systems |  |  | Other |  |  | Consolidated |
Revenues from external customers |  | $ | 3,715.0 |  |  | $ | 1,110.0 |  |  | $ | - |  |  | $ | 4,825.0 |
Segment earnings(1) |  |  | 281.5 |  |  |  | 74.3 |  |  |  | (55.1 | ) |  |  | 300.7 |
Depreciation and amortization |  |  | 82.1 |  |  |  | 42.5 |  |  |  | 3.9 |  |  |  | 128.5 |
Capital expenditures |  |  | 86.0 |  |  |  | 59.8 |  |  |  | 5.0 |  |  |  | 150.8 |
Total assets |  |  | 7,575.3 |  |  |  | 3,078.8 |  |  |  | 2,099.2 |  |  |  | 12,753.3 |
|  | Nine Months Ended October 3, 2020 |
|  | Seating |  |  | E-Systems |  |  | Other |  |  | Consolidated |
Revenues from external customers |  | $ | 8,813.1 |  |  | $ | 2,989.2 |  |  | $ | - |  |  | $ | 11,802.3 |
Segment earnings(1) |  |  | 320.4 |  |  |  | 5.0 |  |  |  | (167.5 | ) |  |  | 157.9 |
Depreciation and amortization |  |  | 255.1 |  |  |  | 130.5 |  |  |  | 11.5 |  |  |  | 397.1 |
Capital expenditures |  |  | 162.0 |  |  |  | 119.0 |  |  |  | 4.3 |  |  |  | 285.3 |
|  | Nine Months Ended September 28, 2019 |
|  | Seating |  |  | E-Systems |  |  | Other |  |  | Consolidated |
Revenues from external customers |  | $ | 11,468.1 |  |  | $ | 3,524.6 |  |  | $ | - |  |  | $ | 14,992.7 |
Segment earnings(1) |  |  | 817.0 |  |  |  | 287.3 |  |  |  | (186.2 | ) |  |  | 918.1 |
Depreciation and amortization |  |  | 248.4 |  |  |  | 120.2 |  |  |  | 11.8 |  |  |  | 380.4 |
Capital expenditures |  |  | 246.2 |  |  |  | 151.4 |  |  |  | 12.5 |  |  |  | 410.1 |
(1) | See definition above
For the three months ended October 3, 2020, segment earnings include restructuring charges of $33.6 million, $5.0 million and $0.3 million in the Seating and E-Systems segments and in the other category, respectively. For the nine months ended October 3, 2020, segment earnings include restructuring charges of $59.3 million, $46.2 million and $0.9 million in the Seating and E-Systems segments and in the other category, respectively. The Company expects to incur approximately $23 million and $7 million of additional restructuring costs in the Seating and E-Systems segments, respectively, related to activities initiated as of October 3, 2020, and expects that the components of such costs will be consistent with its historical experience. For the three months ended September 28, 2019, segment earnings include restructuring charges of $18.2 million, $9.0 million and $0.7 million in the Seating and E-Systems segments and in the other category, respectively. For the nine months ended September 28, 2019, segment earnings include restructuring charges of $91.7 million, $26.2 million and $1.0 million in the Seating and E-Systems segments and in the other category, respectively. For further information, see Note 3, "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 |  |  | Nine Months Ended |
|  | October 3, 2020 |  |  | September 28, 2019 |  |  | October 3, 2020 |  |  | September 28, 2019 |
Segment earnings |  | $ | 278.8 |  |  | $ | 300.7 |  |  | $ | 157.9 |  |  | $ | 918.1 |
Interest expense |  |  | 26.5 |  |  |  | 24.0 |  |  |  | 78.1 |  |  |  | 69.4 |
Other expense, net |  |  | 17.1 |  |  |  | 9.7 |  |  |  | 54.4 |  |  |  | 27.9 |
Consolidated income before provision for income taxes and equity in net income of affiliates |  | $ | 235.2 |  |  | $ | 267.0 |  |  | $ | 25.4 |  |  | $ | 820.8 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration