XML 50 R36.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Summary of Consolidated Income Before Provision for Income Taxes and Equity in Net Income of Affiliates and Components of Provision for Income Taxes | A summary of consolidated income before provision for income taxes and equity in net income of affiliates and the components of provision for income taxes is shown below (in millions):
For the year ended December 31, | 2022 |  | 2021 |  | 2020
Consolidated income before provision for income taxes and equity in net income of affiliates: |  |  |  |  |
Domestic | $ | 87.6 |  |  | $ | (110.9) |  |  | $ | (145.0) |
Foreign | 421.7 |  |  | 694.4 |  |  | 444.3 |
| $ | 509.3 |  |  | $ | 583.5 |  |  | $ | 299.3 |
Domestic benefit for income taxes: |  |  |  |  |
Current provision | $ | 35.3 |  |  | $ | 38.4 |  |  | $ | 29.0 |
Deferred benefit | (41.4) |  |  | (76.6) |  |  | (106.2) |
Total domestic benefit | $ | (6.1) |  |  | $ | (38.2) |  |  | $ | (77.2) |
Foreign provision for income taxes: |  |  |  |  |
Current provision | $ | 147.8 |  |  | $ | 154.8 |  |  | $ | 149.6 |
Deferred (benefit) provision | (8.0) |  |  | 21.1 |  |  | 21.5 |
Total foreign provision | $ | 139.8 |  |  | $ | 175.9 |  |  | $ | 171.1 |
Provision for income taxes | $ | 133.7 |  |  | $ | 137.7 |  |  | $ | 93.9 |
Summary of Difference Between Provision for Income Taxes Calculated at United States Federal Statutory Income Tax Rate and Consolidated Provision for Income Taxes | A summary of the differences between the provision for income taxes calculated at the United States federal statutory income tax rate of 21% and the consolidated provision for income taxes is shown below (in millions):
For the year ended December 31, | 2022 |  | 2021 |  | 2020
Consolidated income before provision for income taxes and equity in net income of affiliates multiplied by the United States federal statutory income tax rate | $ | 107.0 |  |  | $ | 122.5 |  |  | $ | 62.9 |
Differences in income taxes on foreign earnings, losses and remittances | 24.5 |  |  | 30.4 |  |  | 20.7 |
Valuation allowance adjustments (1) | 45.2 |  |  | 29.0 |  |  | 47.7 |
Research and development and other tax credits | (15.0) |  |  | (19.0) |  |  | (11.8) |
FDII deduction | (16.9) |  |  | (6.0) |  |  | (14.6) |
U.S. tax impact of foreign earnings (2) | (6.3) |  |  | (9.8) |  |  | (21.1) |
Tax audits and assessments | 3.2 |  |  | 3.2 |  |  | 8.9 |
Other | (8.0) |  |  | (12.6) |  |  | 1.2 |
Provision for income taxes | $ | 133.7 |  |  | $ | 137.7 |  |  | $ | 93.9 |
(1) Relates primarily to changes in valuation allowances on the deferred tax assets of foreign subsidiaries. (2) Reflects the impact on the domestic provision for income taxes related to foreign source income, including foreign branch earnings net of the applicable foreign tax credits in the general, foreign branch, GILTI and passive separate limitation categories. This amount includes the U.S. tax impact of apportioning U.S. expenses against the GILTI basket in calculating the foreign tax credit limitation resulting in no tax benefit for these expenses due to the Company's excess foreign tax credit position in the GILTI basket for 2021 and 2020. In 2020, as a result of the change in the foreign branch basket limitation, the Company recognized tax benefits of $15.5 million related to the U.S. deferred tax effect of the foreign branches.
Summary of Components of Net Deferred Income Tax Asset | A summary of the components of the net deferred income tax asset is shown below (in millions):
December 31, | 2022 |  | 2021
Deferred income tax assets (liabilities): |  |  |
Tax loss carryforwards | $ | 397.4 |  |  | $ | 396.9 |
Tax credit carryforwards | 243.9 |  |  | 266.4 |
Retirement benefit plans | 22.6 |  |  | 55.8 |
Accrued liabilities | 208.7 |  |  | 193.9 |
Self-insurance reserves | 5.5 |  |  | 6.7 |
Current asset basis differences | 42.0 |  |  | 41.4 |
Long-term asset basis differences | 3.5 |  |  | (24.2) |
Deferred compensation | 25.8 |  |  | 25.4 |
Capitalized engineering, research and development | 169.6 |  |  | 138.3 |
Undistributed earnings of foreign subsidiaries | (71.7) |  |  | (74.0) |
Derivative instruments and hedging activities | (10.7) |  |  | 2.0 |
Other | 1.8 |  |  | (12.3) |
Net deferred income tax asset before valuation allowance | 1,038.4 |  |  | 1,016.3 |
Valuation allowance | (417.9) |  |  | (406.9) |
Net deferred income tax asset | $ | 620.5 |  |  | $ | 609.4 |
Classification of Net Deferred Income Tax Asset | The classification of the net deferred income tax asset is shown below (in millions):
December 31, | 2022 |  | 2021
Long-term deferred income tax assets | $ | 709.2 |  |  | $ | 701.4 |
Long-term deferred income tax liabilities | (88.7) |  |  | (92.0) |
Net deferred income tax asset | $ | 620.5 |  |  | $ | 609.4 |
Summary of Changes in Gross Unrecognized Tax Benefits | A summary of the changes in gross unrecognized tax benefits is shown below (in millions):
For the year ended December 31, | 2022 |  | 2021 |  | 2020
Balance at beginning of period | $ | 34.9 |  |  | $ | 36.4 |  |  | $ | 31.6 |
Additions based on tax positions related to current year | 4.8 |  |  | 7.7 |  |  | 4.9 |
Additions (reductions) based on tax positions related to prior years | — |  |  | (4.0) |  |  | 3.6 |
Settlements | (1.9) |  |  | (0.3) |  |  | (1.2) |
Statute expirations | (6.3) |  |  | (5.2) |  |  | (4.7) |
Foreign currency translation | 1.2 |  |  | 0.3 |  |  | 2.2 |
Balance at end of period | $ | 32.7 |  |  | $ | 34.9 |  |  | $ | 36.4 |

X
- Definition Tabular disclosure of the current or long-term nature of net deferred tax assets or liabilities recognized in the statement financial position. + References No definition available. + Details
Name: | lear_ClassificationOfNetDeferredTaxesTableTextBlock
Namespace Prefix: | lear_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration