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v3.20.4

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2020
Accounting Policies [Abstract] |
Summary of Inventories | A summary of inventories is shown below (in millions):
December 31, | 2020 |  | 2019
Raw materials | $ | 1,051.6 |  |  | $ | 906.3 |
Work-in-process | 109.8 |  |  | 107.0 |
Finished goods | 396.9 |  |  | 380.4 |
Reserves | (157.2) |  |  | (135.5) |
Inventories | $ | 1,401.1 |  |  | $ | 1,258.2 |
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, | 2020 |  | 2019
Current | $ | 212.0 |  |  | $ | 157.2 |
Long-term | 121.4 |  |  | 113.8 |
Recoverable customer E&D and tooling | $ | 333.4 |  |  | $ | 271.0 |
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, | 2020 |  | 2019
Land | $ | 114.1 |  |  | $ | 113.1 |
Buildings and improvements | 880.7 |  |  | 831.3 |
Machinery and equipment | 4,339.2 |  |  | 3,844.1 |
Construction in progress | 311.1 |  |  | 382.4 |
Total property, plant and equipment | 5,645.1 |  |  | 5,170.9 |
Less – accumulated depreciation | (2,908.9) |  |  | (2,466.7) |
Net property, plant and equipment | $ | 2,736.2 |  |  | $ | 2,704.2 |
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, 2020, is shown below (in millions):
| Seating |  | E-Systems |  | Total
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 |
Foreign currency translation and other | 33.4 |  |  | 8.1 |  |  | 41.5 |
Balance as of December 31, 2020 | $ | 1,268.8 |  |  | $ | 387.0 |  |  | $ | 1,655.8 |
Summary of Finite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2020, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 528.0 |  |  | $ | (232.0) |  |  | $ | 296.0 |  |  | 11.8
Licensing agreements | 71.9 |  |  | (24.4) |  |  | 47.5 |  |  | 5.0
Technology | 35.1 |  |  | (21.2) |  |  | 13.9 |  |  | 7.2
| $ | 635.0 |  |  | $ | (277.6) |  |  | $ | 357.4 |  |  | 10.8
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 10.8 |  |  | — |  |  | 10.8 |  |  |
Balance as of December 31, 2020 | $ | 645.8 |  |  | $ | (277.6) |  |  | $ | 368.2 |  |  |
A summary of intangible assets as of December 31, 2019, 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 |  |  |
Summary of Indefinite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2020, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 528.0 |  |  | $ | (232.0) |  |  | $ | 296.0 |  |  | 11.8
Licensing agreements | 71.9 |  |  | (24.4) |  |  | 47.5 |  |  | 5.0
Technology | 35.1 |  |  | (21.2) |  |  | 13.9 |  |  | 7.2
| $ | 635.0 |  |  | $ | (277.6) |  |  | $ | 357.4 |  |  | 10.8
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 10.8 |  |  | — |  |  | 10.8 |  |  |
Balance as of December 31, 2020 | $ | 645.8 |  |  | $ | (277.6) |  |  | $ | 368.2 |  |  |
A summary of intangible assets as of December 31, 2019, 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
2021 | $ | 65.3 |
2022 | 64.4 |
2023 | 62.9 |
2024 | 47.4 |
2025 | 19.8 |
Schedule of Accrued Liabilities | A summary of accrued liabilities as of December 31, 2020 and 2019, is shown below (in millions):
December 31, | 2020 |  | 2019
Compensation and employee benefits | $ | 297.7 |  |  | $ | 319.2 |
Income and other taxes payable | 287.7 |  |  | 256.6 |
Restructuring | 139.0 |  |  | 157.7 |
Current portion of lease obligations | 116.3 |  |  | 113.9 |
Other | 1,080.2 |  |  | 963.8 |
Accrued liabilities | $ | 1,920.9 |  |  | $ | 1,811.2 |
Summary of Other (Income) Expense, Net | A summary of other expense, net is shown below (in millions):
For the year ended December 31, | 2020 |  | 2019 |  | 2018
Other expense | $ | 72.2 |  |  | $ | 52.2 |  |  | $ | 43.8 |
Other income | (17.0) |  |  | (27.6) |  |  | (12.2) |
Other expense, net | $ | 55.2 |  |  | $ | 24.6 |  |  | $ | 31.6 |
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, | 2020 |  | 2019 |  | 2018
Net income attributable to Lear | $ | 158.5 |  |  | $ | 753.6 |  |  | $ | 1,149.8 |
Redeemable noncontrolling interest adjustment | — |  |  | 35.9 |  |  | (10.4) |
Net income available to Lear common stockholders | $ | 158.5 |  |  | $ | 789.5 |  |  | $ | 1,139.4 |
Average common shares outstanding | 60,254,380 |  | 61,697,192 |  | 65,672,164
Dilutive effect of common stock equivalents | 172,582 |  | 226,336 |  | 489,652
Average diluted shares outstanding | 60,426,962 |  | 61,923,528 |  | 66,161,816
Basic net income per share available to Lear common stockholders | $ | 2.63 |  |  | $ | 12.80 |  |  | $ | 17.35 |
Diluted net income per share available to Lear common stockholders | $ | 2.62 |  |  | $ | 12.75 |  |  | $ | 17.22 |

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