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Segment Reporting | 9 Months Ended
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Sep. 27, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company is organized under two reportable operating segments: Seating and E-Systems. Each of these segments has a varied product and technology portfolio across a number of component categories. Further, the Company continuously evaluates this portfolio, aligning it with industry trends while balancing risk-adjusted returns, which allows the Company to offer value-added solutions to its customers. Our Seating segment consists of the design, development, engineering and manufacture of complete seat systems and key seat components. The Company's capabilities in operations and supply chain management enable synchronized assembly and just-in-time delivery of complex complete seat systems at high volumes to its customers. Key seat components include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat foam; headrests; and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Our E-Systems segment consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems; high-voltage power distribution products, including battery disconnect units ("BDUs"); and low-voltage power distribution products and electronic controllers. •Electrical distribution and connection systems utilize low-voltage and high-voltage wire, high-speed data cables and flat wiring to connect networks and electrical signals and manage electrical power within the vehicle for all types of powertrains – from traditional ICE architectures to the full range of electrified powertrains that require management of higher voltage and power. Key components of the Company's electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components. •High-voltage battery connection systems include intercell connect boards, bus bars and main battery connection systems. High-voltage power distribution products control the flow and distribution of high-voltage power throughout electrified vehicles and include BDUs which control all electrical energy flowing into and out of high-voltage batteries in electrified vehicles. •Low-voltage power distribution products and electronic controllers facilitate signal, data and/or power management within the vehicle and include the associated software required to facilitate these functions. Key components of this portfolio include zonal controllers, body domain control modules and low-voltage and high-voltage power distribution modules. The Company's software offerings include embedded control, cybersecurity software and software to control hardware devices. The Company's customers traditionally have sourced the Company's electronic hardware together with the software that the Company integrates and embeds in it. The other category includes unallocated costs related to corporate headquarters, regional headquarters and the elimination of intercompany activities, including intersegment revenues and cost of sales, 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. Such costs are reflected in the operating segment results to the extent they are directly attributable to an operating segment. The Company's chief operating decision maker ("CODM") is Raymond E. Scott, President and Chief Executive Officer. Each of the Company's operating segments reports its results from operations and makes its requests for capital expenditures directly to the CODM. The CODM assesses the operating performance of each segment based on segment earnings (as defined below), which 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 an hourly workforce, dedicated facilities, sequential manufacturing and assembly processes and commodity raw materials. The CODM evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before equity in net income of affiliates, interest expense, net and other expense, net ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. The accounting policies of the Company's operating segments are the same as those described in this note to the consolidated financial statements. 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 September 27, 2025
| Seating |  | E-Systems |  | Other |  | Consolidated
Revenues from external customers | $ | 4,249.6 |  |  | $ | 1,430.2 |  |  | $ | — |  |  | $ | 5,679.8 |
Intersegment revenues (1) | 0.8 |  |  | 67.1 |  |  | (67.9) |  |  | — |
Less (2): |  |  |  |  |  |  |
Cost of sales | 3,926.7 |  |  | 1,416.3 |  |  | (26.9) |  |  | 5,316.1 |
Gross margin | 323.7 |  |  | 81.0 |  |  | (41.0) |  |  | 363.7 |
Selling, general and administrative | 80.7 |  |  | 35.6 |  |  | 50.1 |  |  | 166.4 |
Amortization of intangibles | 3.0 |  |  | 1.8 |  |  | — |  |  | 4.8 |
Intersegment support activities | 2.4 |  |  | 2.6 |  |  | (5.0) |  |  | — |
Segment earnings (3) | $ | 237.6 |  |  | $ | 41.0 |  |  | $ | (86.1) |  |  | 192.5 |
Reconciliation of segment earnings: |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  | 24.6 |
Other expense, net |  |  |  |  |  |  | 8.5 |
Consolidated income before provision for income taxes and equity in net income of affiliates |  |  |  |  |  |  | $ | 159.4 |
| Three Months Ended September 28, 2024
| Seating |  | E-Systems |  | Other |  | Consolidated
Revenues from external customers | $ | 4,111.8 |  |  | $ | 1,472.6 |  |  | $ | — |  |  | $ | 5,584.4 |
Intersegment revenues (1) | 0.9 |  |  | 57.4 |  |  | (58.3) |  |  | — |
Less (2): |  |  |  |  |  |  |
Cost of sales | 3,771.2 |  |  | 1,424.2 |  |  | (16.3) |  |  | 5,179.1 |
Gross margin | 341.5 |  |  | 105.8 |  |  | (42.0) |  |  | 405.3 |
Selling, general and administrative | 88.7 |  |  | 36.6 |  |  | 48.8 |  |  | 174.1 |
Amortization of intangibles | 8.9 |  |  | 1.8 |  |  | — |  |  | 10.7 |
Intersegment support activities | 1.5 |  |  | 2.1 |  |  | (3.6) |  |  | — |
Segment earnings (3) | $ | 242.4 |  |  | $ | 65.3 |  |  | $ | (87.2) |  |  | 220.5 |
Reconciliation of segment earnings: |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  | 26.5 |
Other expense, net |  |  |  |  |  |  | 3.4 |
Consolidated income before provision for income taxes and equity in net income of affiliates |  |  |  |  |  |  | $ | 190.6 |
| Nine Months Ended September 27, 2025
| Seating |  | E-Systems |  | Other |  | Consolidated
Revenues from external customers | $ | 12,874.6 |  |  | $ | 4,395.9 |  |  | $ | — |  |  | $ | 17,270.5 |
Intersegment revenues (1) | 4.9 |  |  | 199.2 |  |  | (204.1) |  |  | — |
Less (2): |  |  |  |  |  |  |
Cost of sales | 11,864.6 |  |  | 4,322.3 |  |  | (78.4) |  |  | 16,108.5 |
Gross margin | 1,014.9 |  |  | 272.8 |  |  | (125.7) |  |  | 1,162.0 |
Selling, general and administrative | 262.0 |  |  | 108.3 |  |  | 154.8 |  |  | 525.1 |
Amortization of intangibles | 9.3 |  |  | 5.4 |  |  | — |  |  | 14.7 |
Intersegment support activities | 5.8 |  |  | 7.4 |  |  | (13.2) |  |  | — |
Segment earnings (3) | $ | 737.8 |  |  | $ | 151.7 |  |  | $ | (267.3) |  |  | 622.2 |
Reconciliation of segment earnings: |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  | 75.8 |
Other expense, net |  |  |  |  |  |  | 34.1 |
Consolidated income before provision for income taxes and equity in net income of affiliates |  |  |  |  |  |  | $ | 512.3 |
| Nine Months Ended September 28, 2024
| Seating |  | E-Systems |  | Other |  | Consolidated
Revenues from external customers | $ | 13,036.4 |  |  | $ | 4,555.0 |  |  | $ | — |  |  | $ | 17,591.4 |
Intersegment revenues (1) | 2.3 |  |  | 173.6 |  |  | (175.9) |  |  | — |
Less (2): |  |  |  |  |  |  |
Cost of sales | 11,983.0 |  |  | 4,406.0 |  |  | (49.8) |  |  | 16,339.2 |
Gross margin | 1,055.7 |  |  | 322.6 |  |  | (126.1) |  |  | 1,252.2 |
Selling, general and administrative | 262.9 |  |  | 117.5 |  |  | 155.5 |  |  | 535.9 |
Amortization of intangibles | 28.4 |  |  | 10.1 |  |  | — |  |  | 38.5 |
Intersegment support activities | 4.4 |  |  | 6.1 |  |  | (10.5) |  |  | — |
Segment earnings (3) | $ | 760.0 |  |  | $ | 188.9 |  |  | $ | (271.1) |  |  | 677.8 |
Reconciliation of segment earnings: |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  | 79.5 |
Other expense, net |  |  |  |  |  |  | 24.3 |
Consolidated income before provision for income taxes and equity in net income of affiliates |  |  |  |  |  |  | $ | 574.0 |
(1) Intersegment transactions are accounted for at values comparable to unaffiliated third-party transactions (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown (3) See definition above Other segment related disclosures are shown below (in millions):
| Three Months Ended September 27, 2025
| Seating |  | E-Systems |  | Other |  | Consolidated
Depreciation | $ | 95.5 |  |  | $ | 46.3 |  |  | $ | 5.7 |  |  | $ | 147.5 |
Capital expenditures | 92.2 |  |  | 40.1 |  |  | 5.1 |  |  | 137.4 |
| Three Months Ended September 28, 2024
| Seating |  | E-Systems |  | Other |  | Consolidated
Depreciation | $ | 91.0 |  |  | $ | 45.5 |  |  | $ | 5.2 |  |  | $ | 141.7 |
Capital expenditures | 91.6 |  |  | 38.1 |  |  | 2.5 |  |  | 132.2 |
| Nine Months Ended September 27, 2025
| Seating |  | E-Systems |  | Other |  | Consolidated
Depreciation | $ | 278.6 |  |  | $ | 138.4 |  |  | $ | 16.5 |  |  | $ | 433.5 |
Capital expenditures | 249.0 |  |  | 104.1 |  |  | 13.7 |  |  | 366.8 |
Inventories | 892.8 |  |  | 870.0 |  |  | — |  |  | 1,762.8 |
Total assets | 8,872.5 |  |  | 4,091.2 |  |  | 2,194.0 |  |  | 15,157.7 |
| Nine Months Ended September 28, 2024
| Seating |  | E-Systems |  | Other |  | Consolidated
Depreciation | $ | 273.0 |  |  | $ | 134.7 |  |  | $ | 15.4 |  |  | $ | 423.1 |
Capital expenditures | 237.5 |  |  | 118.5 |  |  | 10.6 |  |  | 366.6 |
Inventories | 929.6 |  |  | 838.5 |  |  | — |  |  | 1,768.1 |
Total assets | 8,745.0 |  |  | 4,183.4 |  |  | 1,889.7 |  |  | 14,818.1 |

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- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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