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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2022
Accounting Policies [Abstract] |
Summary of Inventories | A summary of inventories is shown below (in millions):
December 31, | 2022 |  | 2021
Raw materials | $ | 1,216.8 |  |  | $ | 1,171.0 |
Work-in-process | 126.6 |  |  | 119.9 |
Finished goods | 391.9 |  |  | 453.4 |
Reserves | (161.7) |  |  | (172.4) |
Inventories | $ | 1,573.6 |  |  | $ | 1,571.9 |
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, | 2022 |  | 2021
Current | $ | 175.7 |  |  | $ | 207.4 |
Long-term | 161.3 |  |  | 143.5 |
Recoverable customer E&D and tooling | $ | 337.0 |  |  | $ | 350.9 |
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, | 2022 |  | 2021
Land | $ | 104.6 |  |  | $ | 108.7 |
Buildings and improvements | 868.6 |  |  | 850.3 |
Machinery and equipment | 4,871.5 |  |  | 4,497.7 |
Construction in progress | 378.0 |  |  | 345.6 |
Total property, plant and equipment | 6,222.7 |  |  | 5,802.3 |
Less – accumulated depreciation | (3,368.7) |  |  | (3,082.2) |
Net property, plant and equipment | $ | 2,854.0 |  |  | $ | 2,720.1 |
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, 2022, is shown below (in millions):
| Seating |  | E-Systems |  | Total
Balance as of December 31, 2020 | $ | 1,268.8 |  |  | $ | 387.0 |  |  | $ | 1,655.8 |
Foreign currency translation and other | (19.5) |  |  | 21.6 |  |  | 2.1 |
Balance as of December 31, 2021 | 1,249.3 |  |  | 408.6 |  |  | 1,657.9 |
Acquisition | 27.9 |  |  | — |  |  | 27.9 |
Foreign currency translation and other | (16.1) |  |  | (9.1) |  |  | (25.2) |
Balance as of December 31, 2022 | $ | 1,261.1 |  |  | $ | 399.5 |  |  | $ | 1,660.6 |
Summary of Finite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2022, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 514.9 |  |  | $ | (313.3) |  |  | $ | 201.6 |  |  | 11.7
Licensing agreements | 71.0 |  |  | (52.0) |  |  | 19.0 |  |  | 5.0
Technology | 16.2 |  |  | (1.7) |  |  | 14.5 |  |  | 13.3
Other | 0.4 |  |  | (0.1) |  |  | 0.3 |  |  | 5.0
Balance as of December 31, 2022 | $ | 602.5 |  |  | $ | (367.1) |  |  | $ | 235.4 |  |  | 11.0
A summary of intangible assets as of December 31, 2021, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 534.4 |  |  | $ | (277.6) |  |  | $ | 256.8 |  |  | 11.7
Licensing agreements | 70.9 |  |  | (37.8) |  |  | 33.1 |  |  | 5.0
Technology | 21.8 |  |  | (18.4) |  |  | 3.4 |  |  | 8.5
Other | 0.4 |  |  | (0.1) |  |  | 0.3 |  |  | 5.0
| 627.5 |  |  | (333.9) |  |  | 293.6 |  |  | 10.8
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 8.9 |  |  | — |  |  | 8.9 |  |  |
Balance as of December 31, 2021 | $ | 636.4 |  |  | $ | (333.9) |  |  | $ | 302.5 |  |  |
Summary of Indefinite-Lived Intangible Assets | A summary of intangible assets as of December 31, 2022, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 514.9 |  |  | $ | (313.3) |  |  | $ | 201.6 |  |  | 11.7
Licensing agreements | 71.0 |  |  | (52.0) |  |  | 19.0 |  |  | 5.0
Technology | 16.2 |  |  | (1.7) |  |  | 14.5 |  |  | 13.3
Other | 0.4 |  |  | (0.1) |  |  | 0.3 |  |  | 5.0
Balance as of December 31, 2022 | $ | 602.5 |  |  | $ | (367.1) |  |  | $ | 235.4 |  |  | 11.0
A summary of intangible assets as of December 31, 2021, is shown below (in millions):
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted Average Useful Life (years)
Amortized intangible assets: |  |  |  |  |  |  |
Customer-based | $ | 534.4 |  |  | $ | (277.6) |  |  | $ | 256.8 |  |  | 11.7
Licensing agreements | 70.9 |  |  | (37.8) |  |  | 33.1 |  |  | 5.0
Technology | 21.8 |  |  | (18.4) |  |  | 3.4 |  |  | 8.5
Other | 0.4 |  |  | (0.1) |  |  | 0.3 |  |  | 5.0
| 627.5 |  |  | (333.9) |  |  | 293.6 |  |  | 10.8
Unamortized intangible assets: |  |  |  |  |  |  |
In-process research and development | 8.9 |  |  | — |  |  | 8.9 |  |  |
Balance as of December 31, 2021 | $ | 636.4 |  |  | $ | (333.9) |  |  | $ | 302.5 |  |  |
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
2023 | $ | 60.6 |
2024 | 47.9 |
2025 | 21.1 |
2026 | 20.7 |
2027 | 20.3 |
Schedule of Accrued Liabilities | A summary of accrued liabilities as of December 31, 2022 and 2021, is shown below (in millions):
December 31, | 2022 |  | 2021
Compensation and employee benefits | $ | 404.3 |  |  | $ | 353.8 |
Income and other taxes payable | 300.3 |  |  | 290.7 |
Current portion of lease obligations | 136.8 |  |  | 125.6 |
Other | 1,120.1 |  |  | 1,036.6 |
Accrued liabilities | $ | 1,961.5 |  |  | $ | 1,806.7 |
Summary of Other (Income) Expense, Net | A summary of other expense, net is shown below (in millions):
For the year ended December 31, | 2022 |  | 2021 |  | 2020
Other expense | $ | 57.2 |  |  | $ | 65.4 |  |  | $ | 72.2 |
Other income | (10.8) |  |  | (65.3) |  |  | (17.0) |
Other expense, net | $ | 46.4 |  |  | $ | 0.1 |  |  | $ | 55.2 |
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 attributable to Lear is shown below (in millions, except share and per share data):
For the year ended December 31, | 2022 |  | 2021 |  | 2020
Net income attributable to Lear | $ | 327.7 |  |  | $ | 373.9 |  |  | $ | 158.5 |
Average common shares outstanding | 59,674,488 |  | 60,082,833 |  | 60,254,380
Dilutive effect of common stock equivalents | 246,041 |  | 337,651 |  | 175,582
Average diluted shares outstanding | 59,920,529 |  | 60,420,484 |  | 60,429,962
Basic net income per share attributable to Lear | $ | 5.49 |  |  | $ | 6.22 |  |  | $ | 2.63 |
Diluted net income per share attributable to Lear | $ | 5.47 |  |  | $ | 6.19 |  |  | $ | 2.62 |

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