(Mark One) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to . |
Delaware | 13-3386776 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
21557 Telegraph Road, Southfield, MI (Address of principal executive offices) | 48034 (Zip |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $0.01 per share | New York Stock Exchange |
(1) | Certain information is incorporated by reference, as indicated below, to the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement for its Annual Meeting of Stockholders to be held on May | |
(2) | A portion of the information required is incorporated by reference to the Proxy Statement sections entitled “Election of Directors” and “Directors and Beneficial Ownership.” | |
(3) | Incorporated by reference to Proxy Statement sections entitled “Executive Compensation,” “Compensation Committee Interlocks and Insider Participation,” “Compensation Committee Report” and “Performance Graph.” | |
(4) | Incorporated by reference to Proxy Statement section entitled “Directors and Beneficial Ownership — Security Ownership of Certain Beneficial Owners and Management.” | |
(5) | Incorporated by reference to Proxy Statement section entitled “Certain Transactions.” | |
(6) | Incorporated by reference to Proxy Statement section entitled “Fees of Independent Accountants.” |
• | Enhance Strong Relationships with our Customers by Focusing on Customer Service, Quality and Cost. We seek to |
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customers allow us to identify business opportunities and anticipate the needs of our customers in the early stages of vehicle design. Working closely with our customers in the early stages of designing and engineering automotive interior systems gives us a competitive advantage in securing new business. |
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quality major seat |
• | Expand our Business in Asian Markets and with Asian Automotive Manufacturers Worldwide. We believe that it is important to have a manufacturing footprint that aligns with our customers’ global presence. Our |
• | Expansion in Asian Markets. The Asian markets present growth opportunities, as all major global automotive manufacturers expand production in this region to meet increasing demand. In particular, the Chinese automotive market is expanding rapidly, with an estimated | |
• | Asian Automotive Manufacturers. Asian automotive manufacturers are continuing to invest and expand their manufacturing operations in Asia (especially China), North America and Europe. In |
• | Improve European Business Structure and Expand European Market |
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market for automotive manufacturers and suppliers alike. We are continuing to improve our financial results in Europe by focusing significant new product initiatives on seating | ||
• | ||
Leverage Electronic Capabilities and Invest in Product |
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as well as our new product development efforts. The focus of our research and development efforts is to identify new interior features that make vehicles safer, more comfortable and more attractive to consumers. |
• | Maintain |
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• |
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For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Seating | 67 | % | 68 | % | 68 | % | ||||||
Interior | 17 | 18 | 18 | |||||||||
Electronic and electrical | 16 | 14 | 14 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Seating | 65 | % | 67 | % | 68 | % | ||||||
Interior | 18 | 17 | 18 | |||||||||
Electronic and electrical | 17 | 16 | 14 |
• | Seating. The seating segment consists of the manufacture, assembly and supply of vehicle seating requirements. Seat systems typically represent 30% to 40% of the total cost of an automotive interior. We produce seat systems for automobiles and light trucks that are fully assembled and ready for installation. In most cases, seat systems are designed and engineered for specific vehicle models or platforms. We have recently developed Lear Flexible Seat Architecture, whereby we can assist our customers in achieving a fastertime-to-market by building a program-specific seat incorporating the latest performance requirements and safety technology in a shorter period of time. Seat systems are designed to achieve maximum passenger comfort by adding a wide range of manual and power features, such as lumbar supports, cushion and back bolsters and leg supports. |
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• | Interior. The interior segment consists of the manufacture, assembly and supply of interior systems and components. Interior products are designed to provide a harmonious and comfortable interior for |
• | Instrument Panels and Cockpit Systems. The instrument panel is a complex system of coverings and foam, as well as plastic and metal parts designed to house various components and to act as a safety device for the vehicle occupant. The cockpit system consists of, among other things, the instrument panel trim/pad, structural subsystem, electrical distribution system, climate control, driver control pedals, steering controls and driver and passenger safety systems. Specific components of the cockpit system include the instrument cluster/gauges, cross car structure, electronic and electrical components, wire harness, audio system, heating, ventilation and air conditioning module, air distribution ducts, air vents, steering column and wheel and glove compartment assemblies. Airbag technologies also continue to be an important component of cockpit systems. As a result of our research and development efforts, we have introduced cost-effective, integrated, seamless airbag covers, which |
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• | Headliners and Overhead Systems. Overhead systems consist of a headliner, lighting, visors, consoles, wiring and electronics, as well as all other products located in the interior of the vehicle roof. Headliners consist of a substrate, as well as a finished interior layer made of a variety of fabrics and materials. While headliners are an important contributor to interior aesthetics, they also provide insulation from road noise and can serve as carriers for a variety of other components, such as visors, overhead consoles, grab handles, coat hooks, electrical wiring, speakers, lighting and other electronic and electrical products. As the amount of electronic and electrical content available in vehicles has increased, headliners have emerged as an important carrier of technology since electronic features ranging from garage door openers to lighting systems are often optimally situated in the headliner. In addition, headliners provide an important safety function by mitigating the effects of head impact. We have developed a system that molds the protective foam directly onto the back of the headliner. This system will be used on several vehicle models that are being launched in 2006. | |
• | Door Panels. Door panels consist of several component parts, which are attached to a substrate by various methods. Specific components include vinyl or cloth-covered appliqués, armrests, radio speaker grilles, map pocket compartments, carpet and sound-reducing insulation. In addition, door systems often incorporate electronic products and electrical distribution systems, including lock and latch, window glass, window regulators and audio systems, as well as wire harnesses for the control of power seats, windows, mirrors and door locks. We have recently introduced a two-shot molding process that allows a door panel with multiple materials to be produced in a single injection molding machine. This technology, which results in improved craftsmanship and lower costs, will be used on several vehicle models that are being launched in 2006. | |
• | Flooring and Acoustic Systems. We have an extensive and comprehensive portfolio of |
• | Electronic and Electrical. The migration from conventional electrical distribution systems to electronic products and electrical distribution systems is facilitating the integration of wiring |
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required for a conventional electrical distribution system. Our umbrella technology, |
• | Electrical Distribution Systems. Wire harness assemblies are a collection of terminals, connectors and wires that connect all of the various electronic/electrical devices in the vehicle to each otherand/or to a power source. Terminals and connectors are components of wire harnesses and other electronic/electrical devices that connect wire harnesses and electronic/electrical devices. Fuse boxes are centrally located boxes in the vehicle that contain fusesand/or relays for circuit and device protection, as well as power distribution. Junction boxes serve as a connection point for multiple wire harnesses. They may also contain fuses and relays for circuit and device protection. Smart junction boxes are junction boxes with integrated electronic functions, which eliminate interconnections and increase overall system reliability. Certain vehicles may have two or three smart junction boxes linked as a multiplexed buss line. |
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• | Interior Control and Entertainment Systems. The instrument panel center console module provides a control panel for the entertainment system, accessory switch functions, heating, ventilation and air conditioning. | |
• | Wireless systems. Wireless products send and receive signals using radio frequency technology. Our wireless systems include passive entry systems, dual range/dual function remote keyless entry systems and tire pressure monitoring systems. Passive entry systems allow the vehicle operator to unlock the door without using a key or physically activating a remote keyless fob. Dual range/dual function remote keyless entry systems allow a single transmitter to perform multiple |
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• | Seating. Our seating facilities generally usejust-in-time manufacturing techniques, and products are delivered to the automotive manufacturers on ajust-in-time basis. These facilities are typically located near our customers’ manufacturing and assembly sites. Our seating facilities utilize a variety of methods whereby foam and fabric are affixed to an underlying seat frame. Raw materials used in our seat systems, including steel, aluminum and foam chemicals, are generally available and obtained from multiple suppliers under various types of supply agreements. Leather, fabric and certain components are also purchased from multiple suppliers under various types of supply agreements. The majority of our steel purchases are comprised of engineered parts that are integrated into a seat system, such as seat frames, mechanisms and mechanical components. Therefore, our exposure to changes in steel prices is primarily indirect, through the supply base. | |
• | Interior. Our interior systems process capabilities include injection molding, low-pressure injection molding, blow molding, compression molding, rotational molding, urethane foaming and vacuum forming, as well as various trimming and finishing methods. Raw materials, including resin and chemical products, and finished components are assembled into end products and are obtained from multiple suppliers, under supply agreements which typically last for up to one year. In addition, we produce carpet at one North American plant. | |
• | Electronic and Electrical. Electrical distribution systems are networks of wiring and associated control devices that route electrical power and signals throughout the vehicle. Wire harness assemblies consist of raw, coiled wire, which is automatically cut to length and terminated. Individual circuits are assembled together on a jig or table, inserted into connectors and wrapped or taped to form wire harness assemblies. All materials are purchased from suppliers, with the exception of a portion of the terminals and connectors that are produced internally. Certain materials are available from a limited number of suppliers. Supply agreements typically last for up to one year. The assembly process is labor intensive, and as a result, |
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production is generally performed in low-cost labor sites in Mexico, Honduras, the Philippines, Eastern Europe and Northern Africa. |
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• First Autoworks | |||||||
• Honda | |||||||
• Mahindra & Mahindra | |||||||
• Renault-Nissan | |||||||
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• | Seating. We are one of two primary independent suppliers in the outsourced North American seat systems market. Our primary independent competitor in this market is Johnson Controls. Intier Automotive (the automotive interior segment of Magna International Inc.) and Faurecia also have a presence in this market. Our major independent competitors | |
• | Interior. We are one of three primary independent suppliers in the outsourced North American flooring and acoustic systems market, as well as one of the largest global suppliers of door panels and headliners and overhead systems. Our primary independent competitors in the flooring and acoustic systems market are Collins & Aikman and Rieter Automotive. Our major independent competitors in the remaining interior markets include Johnson Controls, Intier, Faurecia, Collins & Aikman, Visteon, Delphi and a large number of smaller operations. | |
• | Electronic and Electrical. We are one of the leading independent suppliers of automotive electrical distribution systems in North America and Europe. Our major competitors in this market include Delphi, Yazaki, Sumitomo, Alcoa-Fujikura and Valeo. However, the automotive electronic products industry remains highly fragmented. Participants in this segment include Alps, Bosch, Cherry, Delphi, Denso, Kostal, Methode, Niles, Omron, Siemens VDO, TRW, Tokai Rika, Valeo, Visteon and others. |
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• | A decline in the production levels of our major customers could reduce our sales and harm our profitability. |
• | The discontinuation of, the loss of business with respect to or a lack of commercial success of a particular vehicle model for which we are a significant supplier could reduce our sales and harm our profitability. |
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• | Our substantial international operations make us vulnerable to risks associated with doing business in foreign countries. |
• | exposure to local economic conditions; | |
• | expropriation and nationalization; | |
• | foreign exchange rate fluctuations and currency controls; | |
• | withholding and other taxes on remittances and other payments by subsidiaries; | |
• | investment restrictions or requirements; | |
• | export and import restrictions; and | |
• | increases in working capital requirements related to long supply chains. |
• | High raw material costs may continue to have a significant adverse impact on our profitability. |
• | A significant labor dispute involving us or one or more of our customers or suppliers or that could otherwise affect our operations could reduce our sales and harm our profitability. |
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• | Adverse developments affecting one or more of our major suppliers could harm our profitability. |
• | A significant product liability lawsuit, warranty claim or product recall involving us or one of our major customers could harm our profitability. |
• | We are involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and consolidated financial position. |
• | We depend upon cash from our subsidiaries. Therefore, if we do not receive dividends or other distributions from our subsidiaries, it could be more difficult for us to make payments under our indebtedness. |
• | Risks related to Arthur Andersen LLP. |
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E — | Electronic and electrical |
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Name | Age | Position | |||||
Shari L. Burgess | Vice President and Treasurer | ||||||
Douglas G. DelGrosso | President and Chief Operating Officer | ||||||
Roger A. Jackson | Senior Vice President — Human Resources | ||||||
James L. Murawski | 54 | Vice President and Corporate Controller | |||||
Daniel A. Ninivaggi | Senior Vice President, Secretary and General Counsel | ||||||
Robert E. Rossiter | Chairman and Chief Executive Officer | ||||||
Senior Vice President and | |||||||
Matthew J. Simoncini | 45 | Vice President of Global Finance | |||||
James H. Vandenberghe | Vice Chairman | ||||||
David C. Wajsgras | Executive Vice President and Chief Financial Officer | ||||||
P. Joseph Zimmer | 47 | Senior Vice President and |
Shari L. Burgess | Ms. Burgess is our Vice President and Treasurer, a position she has held since August 2002. Previously, she served as our Assistant Treasurer since July 2000 and in various financial positions since November 1992. | |
Douglas G. DelGrosso | Mr. DelGrosso is our President and Chief Operating Officer, |
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Roger A. Jackson | Mr. Jackson is our Senior Vice President — Human Resources, a position he has held since October 1995. Prior to joining Lear, he was employed as Vice President — Human Resources at Allen Bradley, a | |
James L. Murawski | Mr. Murawski is our Vice President and Corporate Controller, a position he has held since March 2005. Previously, he served as our Vice President of Internal Audit since June 2003. Prior to joining Lear, Mr. Murawski was employed in public accounting at Deloitte & Touche for fourteen years and in various financial positions at Collins & Aikman Corporation, TRW Automotive and LucasVarity. | |
Daniel A. Ninivaggi | Mr. Ninivaggi is our Senior Vice President, Secretary and General Counsel. He has been Senior Vice President since June 2004 and |
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joined Lear as our Vice President, Secretary and General Counsel in July 2003. Prior to joining Lear, Mr. Ninivaggi was a partner since 1998 in the New York office of Winston & Strawn LLP, specializing in corporate finance, securities law and mergers and acquisitions. | ||
Robert E. Rossiter | Mr. Rossiter is our Chairman and Chief Executive Officer, a position he has held since January 2003. Mr. Rossiter has served as our Chief Executive Officer since October 2000, as our President from 1984 until December 2002 and as our Chief Operating Officer from 1988 until April 1997 and from November 1998 until October 2000. Mr. Rossiter also served as our Chief Operating Officer — International Operations from April 1997 until November 1998. Mr. Rossiter has been a director of Lear since 1988. | |
Mr. | ||
Matthew J. Simoncini | Mr. Simoncini is our Vice President of Global Finance, a position he has held since February 2006. Previously, he served as our Vice President of Operational Finance since June 2004, our Vice President of Finance — Europe since 2001 and | |
James H. Vandenberghe | Mr. Vandenberghe is our Vice Chairman, a position he has held since November |
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David C. Wajsgras | Mr. Wajsgras is our |
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P. Joseph Zimmer | Mr. Zimmer is our Senior Vice President and President, Global Seating Systems Product Group, a position he has held since August 2005. Previously, he served as our President, Interior Products Division —Europe since December 2003 and our President, Seating Systems Division since October 2000. |
ITEM 5 — | MARKET FOR THE COMPANY’S COMMON |
Price Range of | ||||||||||||
Common Stock | Cash Dividend | |||||||||||
For the Year Ended December 31, 2005: | High | Low | per Share | |||||||||
4th Quarter | $ | 33.50 | $ | 27.09 | $ | 0.25 | ||||||
3rd Quarter | $ | 42.77 | $ | 32.43 | $ | 0.25 | ||||||
2nd Quarter | $ | 44.29 | $ | 33.89 | $ | 0.25 | ||||||
1st Quarter | $ | 60.05 | $ | 43.96 | $ | 0.25 |
Price Range of | ||||||||||||
Common Stock | Cash Dividend | |||||||||||
For the Year Ended December 31, 2004: | High | Low | per Share | |||||||||
4th Quarter | $ | 61.26 | $ | 49.73 | $ | 0.20 | ||||||
3rd Quarter | $ | 58.24 | $ | 52.08 | $ | 0.20 | ||||||
2nd Quarter | $ | 65.90 | $ | 54.60 | $ | 0.20 | ||||||
1st Quarter | $ | 68.88 | $ | 58.15 | $ | 0.20 |
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Maximum Number of Shares | ||||||||||||||||
Total Number | Average | Total Number of Shares | that May Yet be | |||||||||||||
of Shares | Price Paid | Repurchased as Part of Publicly | Repurchased Under the | |||||||||||||
Period | Repurchased | per Share | Announced Plans or Programs | Prior Program | ||||||||||||
October 3, 2004 through October 30, 2004 | 899,400 | $ | 52.31 | * | 899,400 | 1,433,900 | ||||||||||
October 31, 2004 through November 27, 2004 | — | N/A | — | — | ||||||||||||
November 28, 2004 through December 31, 2004 | — | N/A | — | — | ||||||||||||
Total | 899,400 | $ | 52.31 | 899,400 | — | |||||||||||
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Price Range of | ||||||||
Common Stock | ||||||||
For the Year Ended December 31, 2004: | High | Low | ||||||
4th Quarter | $ | 61.26 | $ | 49.73 | ||||
3rd Quarter | $ | 58.24 | $ | 52.08 | ||||
2nd Quarter | $ | 65.90 | $ | 54.60 | ||||
1st Quarter | $ | 68.88 | $ | 58.15 |
Price Range of | ||||||||
Common Stock | ||||||||
For the Year Ended December 31, 2003: | High | Low | ||||||
4th Quarter | $ | 63.12 | $ | 52.64 | ||||
3rd Quarter | $ | 56.47 | $ | 46.02 | ||||
2nd Quarter | $ | 47.56 | $ | 35.35 | ||||
1st Quarter | $ | 41.66 | $ | 33.06 |
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For the Year Ended December 31, | |||||||||||||||||||||
2004 | 2003 | 2002 | 2001 (1) | 2000 (2) | |||||||||||||||||
(In millions (3)) | |||||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||
Net sales | $ | 16,960.0 | $ | 15,746.7 | $ | 14,424.6 | $ | 13,624.7 | $ | 14,072.8 | |||||||||||
Gross profit | 1,402.1 | 1,346.4 | 1,260.3 | 1,034.8 | 1,450.1 | ||||||||||||||||
Selling, general and administrative expenses | 633.7 | 573.6 | 517.2 | 514.2 | 524.8 | ||||||||||||||||
Amortization of goodwill | — | — | — | 90.2 | 89.9 | ||||||||||||||||
Interest expense | 165.5 | 186.6 | 210.5 | 254.7 | 316.2 | ||||||||||||||||
Other expense, net (4) | 52.7 | 52.0 | 64.1 | 85.8 | 47.2 | ||||||||||||||||
Income before provision for income taxes and cumulative effect of a change in accounting principle | 550.2 | 534.2 | 468.5 | 89.9 | 472.0 | ||||||||||||||||
Provision for income taxes | 128.0 | 153.7 | 157.0 | 63.6 | 197.3 | ||||||||||||||||
Income before cumulative effect of a change in accounting principle | 422.2 | 380.5 | 311.5 | 26.3 | 274.7 | ||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax (5) | — | — | 298.5 | — | — | ||||||||||||||||
Net income | $ | 422.2 | $ | 380.5 | $ | 13.0 | $ | 26.3 | $ | 274.7 | |||||||||||
Basic net income per share | $ | 6.18 | $ | 5.71 | $ | 0.20 | $ | 0.41 | $ | 4.21 | |||||||||||
Diluted net income per share (6) | $ | 5.77 | $ | 5.31 | $ | 0.29 | $ | 0.40 | $ | 4.17 | |||||||||||
Weighted average shares outstanding — basic | 68,278,858 | 66,689,757 | 65,365,218 | 63,977,391 | 65,176,499 | ||||||||||||||||
Weighted average shares outstanding — diluted (6) | 74,727,263 | 73,346,568 | 71,289,991 | 65,305,034 | 65,840,964 | ||||||||||||||||
Dividends per share | $ | 0.80 | $ | 0.20 | $ | — | $ | — | $ | — | |||||||||||
Balance Sheet Data: | |||||||||||||||||||||
Current assets | $ | 4,372.0 | $ | 3,375.4 | $ | 2,507.7 | $ | 2,366.8 | $ | 2,828.0 | |||||||||||
Total assets | 9,944.4 | 8,571.0 | 7,483.0 | 7,579.2 | 8,375.5 | ||||||||||||||||
Current liabilities | 4,647.9 | 3,582.1 | 3,045.2 | 3,182.8 | 3,371.6 | ||||||||||||||||
Long-term debt | 1,866.9 | 2,057.2 | 2,132.8 | 2,293.9 | 2,852.1 | ||||||||||||||||
Stockholders’ equity | 2,730.1 | 2,257.5 | 1,662.3 | 1,559.1 | 1,600.8 | ||||||||||||||||
Statement of Cash Flows Data: | |||||||||||||||||||||
Cash flows from operating activities | $ | 675.9 | $ | 586.3 | $ | 545.1 | $ | 829.8 | $ | 753.1 | |||||||||||
Cash flows from investing activities | $ | (472.5 | ) | $ | (346.8 | ) | $ | (259.3 | ) | $ | (201.1 | ) | $ | (225.1 | ) | ||||||
Cash flows from financing activities | $ | 166.1 | $ | (158.6 | ) | $ | (295.8 | ) | $ | (645.5 | ) | $ | (523.8 | ) | |||||||
Capital expenditures | $ | 429.0 | $ | 375.6 | $ | 272.6 | $ | 267.0 | $ | 322.3 | |||||||||||
Other Data (unaudited): | |||||||||||||||||||||
Ratio of earnings to fixed charges (7) | 3.7 | x | 3.4 | x | 3.0 | x | 1.3 | x | 2.4 | x | |||||||||||
Employees as of year end | 110,083 | 111,022 | 114,694 | 113,577 | 121,636 | ||||||||||||||||
North American content per vehicle (8) | $ | 588 | $ | 593 | $ | 579 | $ | 572 | $ | 553 | |||||||||||
North American vehicle production (9) | 15.7 | 15.9 | 16.4 | 15.5 | 17.2 | ||||||||||||||||
European content per vehicle (10) | $ | 354 | $ | 310 | $ | 247 | $ | 233 | $ | 224 | |||||||||||
European vehicle production (11) | 18.7 | 18.2 | 18.1 | 18.3 | 18.4 | ||||||||||||||||
Western European content per vehicle (12) | $ | 379 | $ | 324 | $ | 257 | $ | 240 | $ | 235 | |||||||||||
Western European vehicle production (13) | 16.3 | 16.3 | 16.4 | 16.7 | 16.5 |
For the Year Ended December 31, | 2005(1) | 2004 | 2003 | 2002 | 2001(2) | |||||||||||||||
(In millions(3)) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Net sales | $ | 17,089.2 | $ | 16,960.0 | $ | 15,746.7 | $ | 14,424.6 | $ | 13,624.7 | ||||||||||
Gross profit | 736.0 | 1,402.1 | 1,346.4 | 1,260.3 | 1,034.8 | |||||||||||||||
Selling, general and administrative expenses | 630.6 | 633.7 | 573.6 | 517.2 | 514.2 | |||||||||||||||
Goodwill impairment charges | 1,012.8 | — | — | — | — | |||||||||||||||
Amortization of goodwill | — | — | — | — | 90.2 | |||||||||||||||
Interest expense | 183.2 | 165.5 | 186.6 | 210.5 | 254.7 | |||||||||||||||
Other expense, net(4) | 38.0 | 38.6 | 51.8 | 52.1 | 78.3 | |||||||||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | (1,128.6 | ) | 564.3 | 534.4 | 480.5 | 97.4 | ||||||||||||||
Provision for income taxes | 194.3 | 128.0 | 153.7 | 157.0 | 63.6 | |||||||||||||||
Minority interests in consolidated subsidiaries | 7.2 | 16.7 | 8.8 | 13.3 | 11.5 | |||||||||||||||
Equity in net (income) loss of affiliates | 51.4 | (2.6 | ) | (8.6 | ) | (1.3 | ) | (4.0 | ) | |||||||||||
Income (loss) before cumulative effect of a change in accounting principle | (1,381.5 | ) | 422.2 | 380.5 | 311.5 | 26.3 | ||||||||||||||
Cumulative effect of a change in accounting principle, net of tax(5) | — | — | — | 298.5 | — | |||||||||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | $ | 13.0 | $ | 26.3 | |||||||||
Basic net income (loss) per share | $ | (20.57 | ) | $ | 6.18 | $ | 5.71 | $ | 0.20 | $ | 0.41 | |||||||||
Diluted net income (loss) per share(6) | $ | (20.57 | ) | $ | 5.77 | $ | 5.31 | $ | 0.29 | $ | 0.40 | |||||||||
Weighted average shares outstanding — basic | 67,166,668 | 68,278,858 | 66,689,757 | 65,365,218 | 63,977,391 | |||||||||||||||
Weighted average shares outstanding — diluted(6) | 67,166,668 | 74,727,263 | 73,346,568 | 71,289,991 | 65,305,034 | |||||||||||||||
Dividends per share | $ | 1.00 | $ | 0.80 | $ | 0.20 | $ | — | $ | — |
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For the Year Ended December 31, | 2005(1) | 2004 | 2003 | 2002 | 2001(2) | |||||||||||||||
(In millions(3)) | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Current assets | $ | 3,846.4 | $ | 4,372.0 | $ | 3,375.4 | $ | 2,507.7 | $ | 2,366.8 | ||||||||||
Total assets | 8,288.4 | 9,944.4 | 8,571.0 | 7,483.0 | 7,579.2 | |||||||||||||||
Current liabilities | 4,106.7 | 4,647.9 | 3,582.1 | 3,045.2 | 3,182.8 | |||||||||||||||
Long-term debt | 2,243.1 | 1,866.9 | 2,057.2 | 2,132.8 | 2,293.9 | |||||||||||||||
Stockholders’ equity | 1,111.0 | 2,730.1 | 2,257.5 | 1,662.3 | 1,559.1 | |||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||
Cash flows from operating activities | $ | 560.8 | $ | 675.9 | $ | 586.3 | $ | 545.1 | $ | 829.8 | ||||||||||
Cash flows from investing activities | (531.3 | ) | (472.5 | ) | (346.8 | ) | (259.3 | ) | (201.1 | ) | ||||||||||
Cash flows from financing activities | (347.0 | ) | 166.1 | (158.6 | ) | (295.8 | ) | (645.5 | ) | |||||||||||
Capital expenditures | 568.4 | 429.0 | 375.6 | 272.6 | 267.0 | |||||||||||||||
Other Data (unaudited): | ||||||||||||||||||||
Ratio of earnings to fixed charges(7) | — | 3.7 | x | 3.4 | x | 3.0 | x | 1.3 | x | |||||||||||
Employees as of year end | 115,113 | 110,083 | 111,022 | 114,694 | 113,577 | |||||||||||||||
North American content per vehicle(8) | $ | 586 | $ | 588 | $ | 593 | $ | 579 | $ | 572 | ||||||||||
North American vehicle production(9) | 15.8 | 15.7 | 15.9 | 16.4 | 15.5 | |||||||||||||||
European content per vehicle(10) | $ | 347 | $ | 351 | $ | 310 | $ | 247 | $ | 233 | ||||||||||
European vehicle production(11) | 18.9 | 18.9 | 18.2 | 18.1 | 18.3 |
(1) | Results include the effect of $1,012.8 million of goodwill impairment charges, $82.3 million of fixed asset impairment charges, $104.4 million of restructuring and related manufacturing inefficiency charges (including $15.1 million of fixed asset impairment charges), $39.2 of litigation-related charges, $46.7 million of charges related to the divestitureand/or capital restructuring of joint ventures, $300.3 million of tax charges, consisting of a U.S. deferred tax asset valuation allowance of $255.0 million and an increase in related tax reserves of $45.3 million, and a tax benefit related to a tax law change in Poland of $17.8 million. | |
(2) | Results include the effect of $149.2 million of restructuring and other charges, |
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(3) | Except per share data, weighted average shares outstanding, ratio of earnings to fixed charges, employees as of year end | |
(4) | Includes state and local non-income related taxes, foreign exchange gains and losses, | |
(5) | The cumulative effect of a change in accounting principle results from goodwill impairment charges recorded in conjunction with the adoption of Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.” | |
(6) | On December 15, 2004, |
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(7) | “Fixed charges” consist of interest on debt, amortization of deferred financing fees and that portion of rental expenses representative of interest. “Earnings” consist of income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in the undistributed net | |
(8) | “North American content per vehicle” is our net sales in North America divided by estimated total North American vehicle production. Content per vehicle data excludes business conducted through non-consolidated joint ventures. Content per vehicle data for | |
(9) | “North American vehicle production” includes car and light truck production in the United States, Canada and Mexico as provided by |
(10) | “European content per vehicle” is our net sales in Europe divided by estimated total European vehicle production. Content per vehicle data excludes business conducted through non-consolidated joint ventures. Content per vehicle data for | |
(11) | “European vehicle production” includes car and light truck production in Austria, Belgium, Bosnia, Czech Republic, Finland, France, Germany, Hungary, Italy, Kazakhstan, | |
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ITEM 7 — | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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For the Year Ended December 31, | |||||||||||||||||||||||||
2004 | 2003 | 2002 | |||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||
Seating | $ | 11,314.7 | 66.7 | % | $ | 10,743.9 | 68.2 | % | $ | 9,853.5 | 68.3 | % | |||||||||||||
Interior | 2,965.0 | 17.5 | 2,817.2 | 17.9 | 2,550.4 | 17.7 | |||||||||||||||||||
Electronic and electrical | 2,680.3 | 15.8 | 2,185.6 | 13.9 | 2,020.7 | 14.0 | |||||||||||||||||||
Net sales | 16,960.0 | 100.0 | 15,746.7 | 100.0 | 14,424.6 | 100.0 | |||||||||||||||||||
Gross profit | 1,402.1 | 8.3 | 1,346.4 | 8.6 | 1,260.3 | 8.7 | |||||||||||||||||||
Selling, general and administrative expenses | 633.7 | 3.7 | 573.6 | 3.6 | 517.2 | 3.6 | |||||||||||||||||||
Interest expense | 165.5 | 1.0 | 186.6 | 1.2 | 210.5 | 1.5 | |||||||||||||||||||
Other expense, net | 38.6 | 0.2 | 51.8 | 0.3 | 52.1 | 0.4 | |||||||||||||||||||
Net income | 422.2 | 2.5 | 380.5 | 2.4 | 13.0 | 0.1 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Seating | $ | 11,035.0 | 64.6 | % | $ | 11,314.6 | 66.7 | % | $ | 10,743.8 | 68.2 | % | ||||||||||||
Interior | 3,097.6 | 18.1 | 2,965.0 | 17.5 | 2,817.1 | 17.9 | ||||||||||||||||||
Electronic and electrical | 2,956.6 | 17.3 | 2,680.4 | 15.8 | 2,185.8 | 13.9 | ||||||||||||||||||
Net sales | 17,089.2 | 100.0 | 16,960.0 | 100.0 | 15,746.7 | 100.0 | ||||||||||||||||||
Gross profit | 736.0 | 4.3 | 1,402.1 | 8.3 | 1,346.4 | 8.6 | ||||||||||||||||||
Selling, general and administrative expenses | 630.6 | 3.7 | 633.7 | 3.7 | 573.6 | 3.6 | ||||||||||||||||||
Goodwill impairment charges | 1,012.8 | 5.9 | — | — | — | — | ||||||||||||||||||
Interest expense | 183.2 | 1.1 | 165.5 | 1.0 | 186.6 | 1.2 | ||||||||||||||||||
Other expense, net | 38.0 | 0.2 | 38.6 | 0.2 | 51.8 | 0.3 | ||||||||||||||||||
Provision for income taxes | 194.3 | 1.1 | 128.0 | 0.8 | 153.7 | 1.0 | ||||||||||||||||||
Equity in net (income) loss of affiliates | 51.4 | 0.3 | (2.6 | ) | — | (8.6 | ) | (0.1 | ) | |||||||||||||||
Net income (loss) | (1,381.5 | ) | (8.1 | ) | 422.2 | 2.5 | 380.5 | 2.4 |
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For the Year Ended December 31, | 2005 | 2004 | ||||||
Net sales | $ | 11,035.0 | $ | 11,314.6 | ||||
Segment earnings(1) | 323.3 | 682.1 | ||||||
Margin | 2.9 | % | 6.0 | % |
(1) | See definition above. |
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For the Year Ended December 31, | 2005 | 2004 | ||||||
Net sales | $ | 3,097.6 | $ | 2,965.0 | ||||
Segment earnings(1) | (191.1 | ) | 85.1 | |||||
Margin | (6.2 | )% | 2.9 | % |
(1) | See definition above. |
For the Year Ended December 31, | 2005 | 2004 | ||||||
Net sales | $ | 2,956.6 | $ | 2,680.4 | ||||
Segment earnings(1) | 180.0 | 210.9 | ||||||
Margin | 6.1 | % | 7.9 | % |
(1) | See definition above. |
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For the Year Ended | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 11,314.7 | $ | 10,743.9 | ||||
Income before interest, other expense and income taxes | 684.9 | 698.1 | ||||||
Margin | 6.1 | % | 6.5 | % |
For the Year Ended December 31, | 2004 | 2003 | ||||||
Net sales | $ | 11,314.6 | $ | 10,743.8 | ||||
Segment earnings(1) | 682.1 | 696.7 | ||||||
Margin | 6.0 | % | 6.5 | % |
(1) | See definition above. |
For the Year Ended | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 2,965.0 | $ | 2,817.2 | ||||
Income before interest, other expense and income taxes | 85.1 | 104.0 | ||||||
Margin | 2.9 | % | 3.7 | % |
For the Year Ended December 31, | 2004 | 2003 | ||||||
Net sales | $ | 2,965.0 | $ | 2,817.1 | ||||
Segment earnings(1) | 85.1 | 104.0 | ||||||
Margin | 2.9 | % | 3.7 | % |
(1) | See definition above. |
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For the Year Ended | ||||||||
December 31, | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 2,680.3 | $ | 2,185.6 | ||||
Income before interest, other expense and income taxes | 207.5 | 197.8 | ||||||
Margin | 7.7 | % | 9.1 | % |
For the Year Ended December 31, | 2004 | 2003 | ||||||
Net sales | $ | 2,680.4 | $ | 2,185.8 | ||||
Segment earnings(1) | 210.9 | 200.2 | ||||||
Margin | 7.9 | % | 9.2 | % |
(1) | See definition above. |
Restructuring |
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For the Year Ended | ||||||||
December 31, | ||||||||
2003 | 2002 | |||||||
Net sales | $ | 10,743.9 | $ | 9,853.5 | ||||
Income before interest, other expense and income taxes | 698.1 | 545.9 | ||||||
Margin | 6.5 | % | 5.5 | % |
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For the Year Ended | ||||||||
December 31, | ||||||||
2003 | 2002 | |||||||
Net sales | $ | 2,817.2 | $ | 2,550.4 | ||||
Income before interest, other expense and income taxes | 104.0 | 141.2 | ||||||
Margin | 3.7 | % | 5.5 | % |
For the Year Ended | ||||||||
December 31, | ||||||||
2003 | 2002 | |||||||
Net sales | $ | 2,185.6 | $ | 2,020.7 | ||||
Income before interest, other expense and income taxes | 197.8 | 231.5 | ||||||
Margin | 9.1 | % | 11.5 | % |
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2005 | 2006 | 2007 | 2008 | 2009 | Thereafter | Total | ||||||||||||||||||||||
Long-term debt maturities | $ | 632.8 | $ | 6.8 | $ | 9.2 | $ | 342.3 | $ | 805.4 | $ | 703.2 | $ | 2,499.7 | ||||||||||||||
Interest payments on our public debt | 138.8 | 115.1 | 115.1 | 101.5 | 55.4 | 115.0 | 640.9 | |||||||||||||||||||||
Lease commitments | 88.4 | 97.5 | 59.2 | 51.6 | 39.9 | 113.0 | 449.6 | |||||||||||||||||||||
Total | $ | 860.0 | $ | 219.4 | $ | 183.5 | $ | 495.4 | $ | 900.7 | $ | 931.2 | $ | 3,590.2 | ||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | Thereafter | Total | ||||||||||||||||||||||
Long-term debt maturities | $ | 9.4 | $ | 722.0 | (1) | $ | 300.4 | $ | 799.8 | $ | 2.8 | $ | 418.1 | $ | 2,252.5 | |||||||||||||
Interest payments on our outstanding debt | 111.9 | 111.9 | 99.9 | 55.4 | 23.0 | 92.0 | 494.1 | |||||||||||||||||||||
Lease commitments | 113.5 | 68.7 | 58.4 | 51.0 | 43.4 | 49.7 | 384.7 | |||||||||||||||||||||
Total | $ | 234.8 | $ | 902.6 | $ | 458.7 | $ | 906.2 | $ | 69.2 | $ | 559.8 | $ | 3,131.3 | ||||||||||||||
(1) | Our zero-coupon convertible senior notes are reflected in the contractual obligations table above at their book value of $300 million as of December 31, 2005. Their accreted value as of February 20, 2007 (the first date at which holders may require us to purchase their notes) will be $317 million. |
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Guarantees and Commitments — |
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Standard & Poor’s | Moody’s | Fitch | ||||
Ratings Services | Investors Service | Ratings | ||||
Credit rating of senior unsecured debt | ||||||
Ratings outlook |
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Legal and Environmental Matters |
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Accrual as of | ||||||||||||
Original | Adjustments/ | Dec. 31, | ||||||||||
Accrual | Utilized | 2004 | ||||||||||
Lear-Donnelly | $ | 8.7 | $ | (8.7 | ) | $ | — | |||||
UT Automotive | 19.7 | (19.3 | ) | 0.4 | ||||||||
Peregrine | 18.4 | (18.4 | ) | — | ||||||||
Delphi | 53.3 | (53.3 | ) | — |
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• | general economic conditions in the markets in which we | |
• | fluctuations in the production of vehicles for which we are a supplier; | |
• | labor disputes involving us or our significant customers or suppliers or that otherwise affect us; | |
• | our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions; | |
• | the outcome of customer productivity negotiations; | |
• | the impact and timing of program launch costs; | |
• | the costs and timing of facility closures, business realignment or similar actions; | |
• | increases in our warranty or product liability costs; | |
• | risks associated with conducting business in foreign countries; | |
• | competitive conditions impacting our key |
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• | raw material | |
• | our ability to mitigate the significant impact of recent increases in raw material, | |
• | the outcome of legal or regulatory proceedings to which we are or may become a party; | |
• | unanticipated changes in cash flow; | |
• | the finalization of our restructuring strategy; | |
• | the outcome of various strategic alternatives being evaluated with respect to our interior segment; and | |
• | other risks, described |
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ITEM 8 — |
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December 31, | ||||||||||
2004 | 2003 | |||||||||
(In millions, except | ||||||||||
share data) | ||||||||||
ASSETS | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | $ | 584.9 | $ | 169.3 | ||||||
Accounts receivable | 2,584.9 | 2,200.3 | ||||||||
Inventories | 621.2 | 550.2 | ||||||||
Recoverable customer engineering and tooling | 205.8 | 169.0 | ||||||||
Other | 375.2 | 286.6 | ||||||||
Total current assets | 4,372.0 | 3,375.4 | ||||||||
Long-Term Assets: | ||||||||||
Property, plant and equipment, net | 2,019.8 | 1,817.8 | ||||||||
Goodwill, net | 3,039.4 | 2,940.1 | ||||||||
Other | 513.2 | 437.7 | ||||||||
Total long-term assets | 5,572.4 | 5,195.6 | ||||||||
$ | 9,944.4 | $ | 8,571.0 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current Liabilities: | ||||||||||
Short-term borrowings | $ | 35.4 | $ | 17.1 | ||||||
Accounts payable and drafts | 2,777.6 | 2,444.1 | ||||||||
Accrued salaries and wages | 205.4 | 185.2 | ||||||||
Accrued employee benefits | 244.3 | 208.2 | ||||||||
Other accrued liabilities | 752.4 | 723.5 | ||||||||
Current portion of long-term debt | 632.8 | 4.0 | ||||||||
Total current liabilities | 4,647.9 | 3,582.1 | ||||||||
Long-Term Liabilities: | ||||||||||
Long-term debt | 1,866.9 | 2,057.2 | ||||||||
Other | 699.5 | 674.2 | ||||||||
Total long-term liabilities | 2,566.4 | 2,731.4 | ||||||||
Stockholders’ Equity: | ||||||||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 73,147,178 shares and 72,453,683 shares issued as of December 31, 2004 and 2003, respectively | 0.7 | 0.7 | ||||||||
Additional paid-in capital | 1,064.4 | 1,027.7 | ||||||||
Common stock held in treasury, 5,730,476 shares and 4,291,302 shares as of December 31, 2004 and 2003, respectively, at cost | (204.1 | ) | (110.8 | ) | ||||||
Retained earnings | 1,810.5 | 1,441.8 | ||||||||
Accumulated other comprehensive income (loss) | 58.6 | (101.9 | ) | |||||||
Total stockholders’ equity | 2,730.1 | 2,257.5 | ||||||||
$ | 9,944.4 | $ | 8,571.0 | |||||||
December 31, | 2005 | 2004 | ||||||
(In millions, except | ||||||||
share data) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 207.6 | $ | 584.9 | ||||
Accounts receivable | 2,337.6 | 2,584.9 | ||||||
Inventories | 688.2 | 621.2 | ||||||
Recoverable customer engineering and tooling | 317.7 | 205.8 | ||||||
Other | 295.3 | 375.2 | ||||||
Total current assets | 3,846.4 | 4,372.0 | ||||||
Long-Term Assets: | ||||||||
Property, plant and equipment, net | 2,019.3 | 2,019.8 | ||||||
Goodwill, net | 1,939.8 | 3,039.4 | ||||||
Other | 482.9 | 513.2 | ||||||
Total long-term assets | 4,442.0 | 5,572.4 | ||||||
$ | 8,288.4 | $ | 9,944.4 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term borrowings | $ | 23.4 | $ | 35.4 | ||||
Accounts payable and drafts | 2,993.5 | 2,777.6 | ||||||
Accrued employee benefits | 168.5 | 244.3 | ||||||
Other accrued liabilities | 911.9 | 957.8 | ||||||
Current portion of long-term debt | 9.4 | 632.8 | ||||||
Total current liabilities | 4,106.7 | 4,647.9 | ||||||
Long-Term Liabilities: | ||||||||
Long-term debt | 2,243.1 | 1,866.9 | ||||||
Other | 827.6 | 699.5 | ||||||
Total long-term liabilities | 3,070.7 | 2,566.4 | ||||||
Stockholders’ Equity: | ||||||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 73,281,653 shares and 73,147,178 shares issued as of December 31, 2005 and 2004, respectively | 0.7 | 0.7 | ||||||
Additional paid-in capital | 1,108.6 | 1,064.4 | ||||||
Common stock held in treasury, 6,094,847 shares and 5,730,476 shares as of December 31, 2005 and 2004, respectively, at cost | (225.5 | ) | (204.1 | ) | ||||
Retained earnings | 361.8 | 1,810.5 | ||||||
Accumulated other comprehensive income (loss) | (134.6 | ) | 58.6 | |||||
Total stockholders’ equity | 1,111.0 | 2,730.1 | ||||||
$ | 8,288.4 | $ | 9,944.4 | |||||
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For the Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions, except per share data) | |||||||||||||
Net sales | $ | 16,960.0 | $ | 15,746.7 | $ | 14,424.6 | |||||||
Cost of sales | 15,557.9 | 14,400.3 | 13,164.3 | ||||||||||
Selling, general and administrative expenses | 633.7 | 573.6 | 517.2 | ||||||||||
Interest expense | 165.5 | 186.6 | 210.5 | ||||||||||
Other expense, net | 38.6 | 51.8 | 52.1 | ||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle | 564.3 | 534.4 | 480.5 | ||||||||||
Provision for income taxes | 128.0 | 153.7 | 157.0 | ||||||||||
Minority interests in consolidated subsidiaries | 16.7 | 8.8 | 13.3 | ||||||||||
Equity in net income of affiliates | (2.6 | ) | (8.6 | ) | (1.3 | ) | |||||||
Income before cumulative effect of a change in accounting principle | 422.2 | 380.5 | 311.5 | ||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | 298.5 | ||||||||||
Net income | $ | 422.2 | $ | 380.5 | $ | 13.0 | |||||||
Basic net income per share | |||||||||||||
Income before cumulative effect of a change in accounting principle | $ | 6.18 | $ | 5.71 | $ | 4.77 | |||||||
Cumulative effect of a change in accounting principle | — | — | 4.57 | ||||||||||
Basic net income per share | $ | 6.18 | $ | 5.71 | $ | 0.20 | |||||||
Diluted net income per share | |||||||||||||
Income before cumulative effect of a change in accounting principle | $ | 5.77 | $ | 5.31 | $ | 4.47 | |||||||
Cumulative effect of a change in accounting principle | — | — | 4.18 | ||||||||||
Diluted net income per share | $ | 5.77 | $ | 5.31 | $ | 0.29 | |||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
(In millions, except per share data) | ||||||||||||
Net sales | $ | 17,089.2 | $ | 16,960.0 | $ | 15,746.7 | ||||||
Cost of sales | 16,353.2 | 15,557.9 | 14,400.3 | |||||||||
Selling, general and administrative expenses | 630.6 | 633.7 | 573.6 | |||||||||
Goodwill impairment charges | 1,012.8 | — | — | |||||||||
Interest expense | 183.2 | 165.5 | 186.6 | |||||||||
Other expense, net | 38.0 | 38.6 | 51.8 | |||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates | (1,128.6 | ) | 564.3 | 534.4 | ||||||||
Provision for income taxes | 194.3 | 128.0 | 153.7 | |||||||||
Minority interests in consolidated subsidiaries | 7.2 | 16.7 | 8.8 | |||||||||
Equity in net (income) loss of affiliates | 51.4 | (2.6 | ) | (8.6 | ) | |||||||
Net income (loss) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | |||||
Basic net income (loss) per share | $ | (20.57 | ) | $ | 6.18 | $ | 5.71 | |||||
Diluted net income (loss) per share | $ | (20.57 | ) | $ | 5.77 | $ | 5.31 | |||||
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December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(In millions, except share data) | ||||||||||||
Common Stock | ||||||||||||
Balance at beginning and end of period | $ | 0.7 | $ | 0.7 | $ | 0.7 | ||||||
Additional Paid-in Capital | ||||||||||||
Balance at beginning of period | $ | 1,027.7 | $ | 943.6 | $ | 888.3 | ||||||
Stock options exercised | 24.4 | 66.4 | 47.4 | |||||||||
Tax benefit of stock options exercised | 10.3 | 17.5 | 7.9 | |||||||||
Settlement of stock-based compensation | 2.0 | 0.2 | — | |||||||||
Balance at end of period | $ | 1,064.4 | $ | 1,027.7 | $ | 943.6 | ||||||
Notes Receivable from Sale of Common Stock | ||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | (0.1 | ) | |||||
Notes receivable payment received | — | — | 0.1 | |||||||||
Balance at end of period | $ | — | $ | — | $ | — | ||||||
Treasury Stock | ||||||||||||
Balance at beginning of period | $ | (110.8 | ) | $ | (111.4 | ) | $ | (111.4 | ) | |||
Purchases of 1,834,300 shares at an average price of $53.29 per share | (97.7 | ) | — | — | ||||||||
Issuances of 395,126 shares at an average price of $11.12 per share in settlement of stock-based compensation | 4.4 | — | — | |||||||||
Purchases of 31,800 shares at an average price of $34.07 per share | — | (1.1 | ) | — | ||||||||
Issuances of 102,828 shares at an average price of $17.08 per share in settlement of stock-based compensation | — | 1.7 | — | |||||||||
Balance at end of period | $ | (204.1 | ) | $ | (110.8 | ) | $ | (111.4 | ) | |||
Retained Earnings | ||||||||||||
Balance at beginning of period | $ | 1,441.8 | $ | 1,075.8 | $ | 1,062.8 | ||||||
Net income | 422.2 | 380.5 | 13.0 | |||||||||
Dividends declared of $0.80 per share in 2004 and $0.20 per share in 2003 | (53.5 | ) | (14.5 | ) | — | |||||||
Balance at end of period | $ | 1,810.5 | $ | 1,441.8 | $ | 1,075.8 | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Minimum Pension Liability | ||||||||||||
Balance at beginning of period | $ | (62.2 | ) | $ | (48.9 | ) | $ | (20.6 | ) | |||
Minimum pension liability adjustments | (10.4 | ) | (13.3 | ) | (28.3 | ) | ||||||
Balance at end of period | $ | (72.6 | ) | $ | (62.2 | ) | $ | (48.9 | ) | |||
Derivative Instruments and Hedging Activities | ||||||||||||
Balance at beginning of period | $ | (13.7 | ) | $ | (26.5 | ) | $ | (13.1 | ) | |||
Derivative instruments and hedging activities adjustments | 31.1 | 12.8 | (13.4 | ) | ||||||||
Balance at end of period | $ | 17.4 | $ | (13.7 | ) | $ | (26.5 | ) | ||||
Cumulative Translation Adjustments | ||||||||||||
Balance at beginning of period | $ | (61.5 | ) | $ | (187.5 | ) | $ | (255.1 | ) | |||
Cumulative translation adjustments | 127.1 | 126.0 | 67.6 | |||||||||
Balance at end of period | $ | 65.6 | $ | (61.5 | ) | $ | (187.5 | ) | ||||
Deferred Income Tax Asset | ||||||||||||
Balance at beginning of period | $ | 35.5 | $ | 16.5 | $ | 7.6 | ||||||
Deferred income tax asset adjustments | 12.7 | 19.0 | 8.9 | |||||||||
Balance at end of period | $ | 48.2 | $ | 35.5 | $ | 16.5 | ||||||
Accumulated other comprehensive income (loss) | $ | 58.6 | $ | (101.9 | ) | $ | (246.4 | ) | ||||
Total Stockholders’ Equity | $ | 2,730.1 | $ | 2,257.5 | $ | 1,662.3 | ||||||
Comprehensive Income | ||||||||||||
Net income | $ | 422.2 | $ | 380.5 | $ | 13.0 | ||||||
Minimum pension liability adjustments | (10.4 | ) | (13.3 | ) | (28.3 | ) | ||||||
Derivative instruments and hedging activities adjustments | 31.1 | 12.8 | (13.4 | ) | ||||||||
Cumulative translation adjustments | 127.1 | 126.0 | 67.6 | |||||||||
Deferred income tax asset adjustments | 12.7 | 19.0 | 8.9 | |||||||||
Comprehensive Income | $ | 582.7 | $ | 525.0 | $ | 47.8 | ||||||
December 31, | 2005 | 2004 | 2003 | |||||||||
(In millions, except share data) | ||||||||||||
Common Stock | ||||||||||||
Balance at beginning and end of period | $ | 0.7 | $ | 0.7 | $ | 0.7 | ||||||
Additional Paid-in Capital | ||||||||||||
Balance at beginning of period | $ | 1,064.4 | $ | 1,027.7 | $ | 943.6 | ||||||
Stock-based compensation | 43.8 | 26.4 | 66.6 | |||||||||
Tax benefit of stock options exercised | 0.4 | 10.3 | 17.5 | |||||||||
Balance at end of period | $ | 1,108.6 | $ | 1,064.4 | $ | 1,027.7 | ||||||
Treasury Stock | ||||||||||||
Balance at beginning of period | $ | (204.1 | ) | $ | (110.8 | ) | $ | (111.4 | ) | |||
Purchases of 490,900 shares at an average price of $51.75 | (25.4 | ) | — | — | ||||||||
Issuances of 126,529 shares at an average price of $31.99 | 4.0 | |||||||||||
Purchases of 1,834,300 shares at an average price of $53.29 per share | — | (97.7 | ) | — | ||||||||
Issuances of 395,126 shares at an average price of $11.12 per share in settlement ofstock-based compensation | — | 4.4 | — | |||||||||
Purchases of 31,800 shares at an average price of $34.07 per share | — | — | (1.1 | ) | ||||||||
Issuances of 102,828 shares at an average price of $17.08 per share in settlement ofstock-based compensation | — | — | 1.7 | |||||||||
Balance at end of period | $ | (225.5 | ) | $ | (204.1 | ) | $ | (110.8 | ) | |||
Retained Earnings | ||||||||||||
Balance at beginning of period | $ | 1,810.5 | $ | 1,441.8 | $ | 1,075.8 | ||||||
Net income (loss) | (1,381.5 | ) | 422.2 | 380.5 | ||||||||
Dividends declared of $1.00 per share in 2005, $0.80 per share in 2004 and $0.20 per share in 2003 | (67.2 | ) | (53.5 | ) | (14.5 | ) | ||||||
Balance at end of period | $ | 361.8 | $ | 1,810.5 | $ | 1,441.8 | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Minimum Pension Liability | ||||||||||||
Balance at beginning of period | $ | (72.6 | ) | $ | (62.2 | ) | $ | (48.9 | ) | |||
Minimum pension liability adjustments | (42.4 | ) | (10.4 | ) | (13.3 | ) | ||||||
Balance at end of period | $ | (115.0 | ) | $ | (72.6 | ) | $ | (62.2 | ) | |||
Derivative Instruments and Hedging Activities | ||||||||||||
Balance at beginning of period | $ | 17.4 | $ | (13.7 | ) | $ | (26.5 | ) | ||||
Derivative instruments and hedging activities adjustments | (8.4 | ) | 31.1 | 12.8 | ||||||||
Balance at end of period | $ | 9.0 | $ | 17.4 | $ | (13.7 | ) | |||||
Cumulative Translation Adjustments | ||||||||||||
Balance at beginning of period | $ | 65.6 | $ | (61.5 | ) | $ | (187.5 | ) | ||||
Cumulative translation adjustments | (152.4 | ) | 127.1 | 126.0 | ||||||||
Balance at end of period | $ | (86.8 | ) | $ | 65.6 | $ | (61.5 | ) | ||||
Deferred Income Tax Asset | ||||||||||||
Balance at beginning of period | $ | 48.2 | $ | 35.5 | $ | 16.5 | ||||||
Deferred income tax asset adjustments | 10.0 | 12.7 | 19.0 | |||||||||
Balance at end of period | $ | 58.2 | $ | 48.2 | $ | 35.5 | ||||||
Accumulated other comprehensive income (loss) | $ | (134.6 | ) | $ | 58.6 | $ | (101.9 | ) | ||||
Total Stockholders’ Equity | $ | 1,111.0 | $ | 2,730.1 | $ | 2,257.5 | ||||||
Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | |||||
Minimum pension liability adjustments | (42.4 | ) | (10.4 | ) | (13.3 | ) | ||||||
Derivative instruments and hedging activities adjustments | (8.4 | ) | 31.1 | 12.8 | ||||||||
Cumulative translation adjustments | (152.4 | ) | 127.1 | 126.0 | ||||||||
Deferred income tax asset adjustments | 10.0 | 12.7 | 19.0 | |||||||||
Comprehensive Income (Loss) | $ | (1,574.7 | ) | $ | 582.7 | $ | 525.0 | |||||
58
53
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
(In millions) | ||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net income | $ | 422.2 | $ | 380.5 | $ | 13.0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities- | ||||||||||||||
Cumulative effect of a change in accounting principle | — | — | 298.5 | |||||||||||
Depreciation and amortization | 355.1 | 321.8 | 301.0 | |||||||||||
Net change in recoverable customer engineering and tooling | (32.5 | ) | (7.6 | ) | 46.5 | |||||||||
Net change in working capital items | (28.3 | ) | 124.2 | (51.4 | ) | |||||||||
Other, net | 29.8 | 65.5 | 59.7 | |||||||||||
Net cash provided by operating activities before net change in sold accounts receivable | 746.3 | 884.4 | 667.3 | |||||||||||
Net change in sold accounts receivable | (70.4 | ) | (298.1 | ) | (122.2 | ) | ||||||||
Net cash provided by operating activities | 675.9 | 586.3 | 545.1 | |||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Additions to property, plant and equipment | (429.0 | ) | (375.6 | ) | (272.6 | ) | ||||||||
Cost of acquisitions, net of cash acquired | (103.0 | ) | (13.7 | ) | (15.2 | ) | ||||||||
Net proceeds from disposition of businesses and other assets | 56.3 | 33.7 | 22.5 | |||||||||||
Other, net | 3.2 | 8.8 | 6.0 | |||||||||||
Net cash used in investing activities | (472.5 | ) | (346.8 | ) | (259.3 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Issuance of senior notes | 399.2 | — | 250.3 | |||||||||||
Long-term revolving credit repayments, net | — | (132.8 | ) | (583.4 | ) | |||||||||
Other long-term debt borrowings (repayments), net | (49.4 | ) | (10.3 | ) | 1.4 | |||||||||
Short-term debt repayments, net | (29.8 | ) | (24.0 | ) | (31.4 | ) | ||||||||
Dividends paid | (68.0 | ) | — | — | ||||||||||
Proceeds from exercise of stock options | 24.4 | 66.4 | 47.4 | |||||||||||
Repurchase of common stock | (97.7 | ) | (1.1 | ) | — | |||||||||
Increase (decrease) in drafts | (12.6 | ) | (56.8 | ) | 19.8 | |||||||||
Other, net | — | — | 0.1 | |||||||||||
Net cash provided by (used in) financing activities | 166.1 | (158.6 | ) | (295.8 | ) | |||||||||
Effect of foreign currency translation | 46.1 | (3.3 | ) | 14.1 | ||||||||||
Net Change in Cash and Cash Equivalents | 415.6 | 77.6 | 4.1 | |||||||||||
Cash and Cash Equivalents at Beginning of Year | 169.3 | 91.7 | 87.6 | |||||||||||
Cash and Cash Equivalents at End of Year | $ | 584.9 | $ | 169.3 | $ | 91.7 | ||||||||
Changes in Working Capital: | ||||||||||||||
Accounts receivable | $ | (147.7 | ) | $ | (196.5 | ) | $ | 118.0 | ||||||
Inventories | (7.0 | ) | (27.4 | ) | (34.2 | ) | ||||||||
Accounts payable | 189.8 | 318.0 | (171.3 | ) | ||||||||||
Accrued liabilities and other | (63.4 | ) | 30.1 | 36.1 | ||||||||||
Net change in working capital items | $ | (28.3 | ) | $ | 124.2 | $ | (51.4 | ) | ||||||
Supplementary Disclosure: | ||||||||||||||
Cash paid for interest | $ | 153.5 | $ | 177.3 | $ | 203.1 | ||||||||
Cash paid for income taxes, net of refunds received of $52.7, $52.5 and $41.3 in 2004, 2003 and 2002, respectively | $ | 140.0 | $ | 203.7 | $ | 131.1 | ||||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
(In millions) | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | |||||
Adjustments to reconcile net income to net cash provided by operating activities — Goodwill impairment charges | 1,012.8 | — | — | |||||||||
Fixed asset impairment charges | 97.4 | 3.0 | 11.2 | |||||||||
Deferred tax provision (benefit) | 44.7 | 8.7 | (33.1 | ) | ||||||||
Equity in net (income) loss of affiliates | 51.4 | (2.6 | ) | (8.6 | ) | |||||||
Depreciation and amortization | 393.4 | 355.1 | 321.8 | |||||||||
Net change in recoverable customer engineering and tooling | (112.5 | ) | (32.5 | ) | (7.6 | ) | ||||||
Net change in working capital items | 9.7 | (62.4 | ) | 158.0 | ||||||||
Other, net | 34.3 | 54.8 | 62.2 | |||||||||
Net cash provided by operating activities before net change in sold accounts receivable | 149.7 | 746.3 | 884.4 | |||||||||
Net change in sold accounts receivable | 411.1 | (70.4 | ) | (298.1 | ) | |||||||
Net cash provided by operating activities | 560.8 | 675.9 | 586.3 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Additions to property, plant and equipment | (568.4 | ) | (429.0 | ) | (375.6 | ) | ||||||
Cost of acquisitions, net of cash acquired | (11.8 | ) | (103.0 | ) | (13.7 | ) | ||||||
Net proceeds from disposition of businesses and other assets | 43.6 | 56.3 | 33.7 | |||||||||
Other, net | 5.3 | 3.2 | 8.8 | |||||||||
Net cash used in investing activities | (531.3 | ) | (472.5 | ) | (346.8 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Issuance (repayment) of senior notes | (600.0 | ) | 399.2 | — | ||||||||
Primary credit facility borrowings (repayments), net | 400.0 | — | (132.8 | ) | ||||||||
Other long-term debt borrowings (repayments), net | (32.7 | ) | (49.4 | ) | (10.3 | ) | ||||||
Short-term debt repayments, net | (23.8 | ) | (29.8 | ) | (24.0 | ) | ||||||
Dividends paid | (67.2 | ) | (68.0 | ) | — | |||||||
Proceeds from exercise of stock options | 4.7 | 24.4 | 66.4 | |||||||||
Repurchase of common stock | (25.4 | ) | (97.7 | ) | (1.1 | ) | ||||||
Decrease in drafts | (3.3 | ) | (12.6 | ) | (56.8 | ) | ||||||
Other, net | 0.7 | — | — | |||||||||
Net cash provided by (used in) financing activities | (347.0 | ) | 166.1 | (158.6 | ) | |||||||
Effect of foreign currency translation | (59.8 | ) | 46.1 | (3.3 | ) | |||||||
Net Change in Cash and Cash Equivalents | (377.3 | ) | 415.6 | 77.6 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 584.9 | 169.3 | 91.7 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 207.6 | $ | 584.9 | $ | 169.3 | ||||||
Changes in Working Capital: | ||||||||||||
Accounts receivable | $ | (250.3 | ) | $ | (147.7 | ) | $ | (196.5 | ) | |||
Inventories | (76.9 | ) | (7.0 | ) | (27.4 | ) | ||||||
Accounts payable | 298.1 | 189.8 | 318.0 | |||||||||
Accrued liabilities and other | 38.8 | (97.5 | ) | 63.9 | ||||||||
Net change in working capital items | $ | 9.7 | $ | (62.4 | ) | $ | 158.0 | |||||
Supplementary Disclosure: | ||||||||||||
Cash paid for interest | $ | 172.6 | $ | 153.5 | $ | 177.3 | ||||||
Cash paid for income taxes, net of refunds received of $76.7 in 2005, $52.7 in 2004 and $52.5 in 2003 | $ | 112.7 | $ | 140.0 | $ | 203.7 | ||||||
59
54
(1) | Basis of Presentation |
(2) | Summary of Significant Accounting Policies |
December 31, | ||||||||
2004 | 2003 | |||||||
Raw materials | $ | 487.8 | $ | 399.1 | ||||
Work-in-process | 43.8 | 37.6 | ||||||
Finished goods | 89.6 | 113.5 | ||||||
Inventories | $ | 621.2 | $ | 550.2 | ||||
December 31, | 2005 | 2004 | ||||||
Raw materials | $ | 511.3 | $ | 487.8 | ||||
Work-in-process | 47.8 | 43.8 | ||||||
Finished goods | 129.1 | 89.6 | ||||||
Inventories | $ | 688.2 | $ | 621.2 | ||||
55
60
December 31, | ||||||||
2004 | 2003 | |||||||
Current | $ | 205.8 | $ | 169.0 | ||||
Long-term | 245.1 | 233.5 | ||||||
Recoverable customer engineering and tooling | $ | 450.9 | $ | 402.5 | ||||
December 31, | 2005 | 2004 | ||||||
Current | $ | 317.7 | $ | 205.8 | ||||
Long-term | 223.2 | 245.1 | ||||||
Recoverable customer engineering and tooling | $ | 540.9 | $ | 450.9 | ||||
Buildings and improvements | 20 to | |||
Machinery and equipment | 5 to 15 years |
December 31, | ||||||||
2004 | 2003 | |||||||
Land | $ | 138.6 | $ | 124.6 | ||||
Buildings and improvements | 759.2 | 673.7 | ||||||
Machinery and equipment | 2,844.7 | 2,501.5 | ||||||
Construction in progress | 52.8 | 61.3 | ||||||
Total property, plant and equipment | 3,795.3 | 3,361.1 | ||||||
Less — accumulated depreciation | (1,775.5 | ) | (1,543.3 | ) | ||||
Net property, plant and equipment | $ | 2,019.8 | $ | 1,817.8 | ||||
December 31, | 2005 | 2004 | ||||||
Land | $ | 140.3 | $ | 138.6 | ||||
Buildings and improvements | 701.1 | 759.2 | ||||||
Machinery and equipment | 3,006.3 | 2,844.7 | ||||||
Construction in progress | 70.5 | 52.8 | ||||||
Total property, plant and equipment | 3,918.2 | 3,795.3 | ||||||
Less — accumulated depreciation | (1,898.9 | ) | (1,775.5 | ) | ||||
Net property, plant and equipment | $ | 2,019.3 | $ | 2,019.8 | ||||
56
61
Electronic and | |||||||||||||||||
Seating | Interior | Electrical | Total | ||||||||||||||
Balance as of December 31, 2002 | $ | 971.6 | $ | 1,023.2 | $ | 865.6 | $ | 2,860.4 | |||||||||
Foreign currency translation and other | 51.8 | (0.3 | ) | 28.2 | 79.7 | ||||||||||||
Balance as of December 31, 2003 | $ | 1,023.4 | $ | 1,022.9 | $ | 893.8 | $ | 2,940.1 | |||||||||
Acquisition | — | — | 35.0 | 35.0 | |||||||||||||
Foreign currency translation and other | 52.3 | (5.1 | ) | 17.1 | 64.3 | ||||||||||||
Balance as of December 31, 2004 | $ | 1,075.7 | $ | 1,017.8 | $ | 945.9 | $ | 3,039.4 | |||||||||
Electronic and | ||||||||||||||||
Seating | Interior | Electrical | Total | |||||||||||||
Balance as of January 1, 2004 | $ | 1,023.4 | $ | 1,022.9 | $ | 893.8 | $ | 2,940.1 | ||||||||
Acquisition | — | — | 35.0 | 35.0 | ||||||||||||
Foreign currency translation and other | 52.3 | (5.1 | ) | 17.1 | 64.3 | |||||||||||
Balance as of December 31, 2004 | $ | 1,075.7 | $ | 1,017.8 | $ | 945.9 | $ | 3,039.4 | ||||||||
Goodwill impairment charges | — | (1,012.8 | ) | — | (1,012.8 | ) | ||||||||||
Foreign currency translation and other | (41.5 | ) | (5.0 | ) | (40.3 | ) | (86.8 | ) | ||||||||
Balance as of December 31, 2005 | $ | 1,034.2 | $ | — | $ | 905.6 | $ | 1,939.8 | ||||||||
62
Weighted Average | ||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Life | |||||||||||||
Value | Amortization | Value | (Years) | |||||||||||||
Technology | $ | 2.2 | $ | (0.1 | ) | $ | 2.1 | 10.0 | ||||||||
Customer contracts | 24.8 | (3.2 | ) | 21.6 | 7.7 | |||||||||||
Customer relationships | 28.2 | (1.2 | ) | 27.0 | 20.0 | |||||||||||
Balance as of December 31, 2004 | $ | 55.2 | $ | (4.5 | ) | $ | 50.7 | 14.4 | ||||||||
Weighted Average | ||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Life | |||||||||||||
Value | Amortization | Value | (years) | |||||||||||||
Technology | $ | 2.8 | $ | (0.4 | ) | $ | 2.4 | 10.0 | ||||||||
Customer contracts | 20.8 | (4.9 | ) | 15.9 | 7.7 | |||||||||||
Customer relationships | 27.2 | (2.4 | ) | 24.8 | 18.8 | |||||||||||
Balance as of December 31, 2005 | $ | 50.8 | $ | (7.7 | ) | $ | 43.1 | 14.2 | ||||||||
Weighted Average | ||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Life | |||||||||||||
Value | Amortization | Value | (years) | |||||||||||||
Technology | $ | 2.2 | $ | (0.1 | ) | $ | 2.1 | 10.0 | ||||||||
Customer contracts | 24.8 | (3.2 | ) | 21.6 | 7.7 | |||||||||||
Customer relationships | 28.2 | (1.2 | ) | 27.0 | 20.0 | |||||||||||
Balance as of December 31, 2004 | $ | 55.2 | $ | (4.5 | ) | $ | 50.7 | 14.4 | ||||||||
57
63
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Other expense | $ | 38.6 | $ | 51.8 | $ | 52.1 | ||||||
Other income | — | — | — | |||||||||
Other expense, net | $ | 38.6 | $ | 51.8 | $ | 52.1 | ||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Other expense | $ | 41.8 | $ | 38.6 | $ | 51.8 | ||||||
Other income | (3.8 | ) | — | — | ||||||||
Other expense, net | $ | 38.0 | $ | 38.6 | $ | 51.8 | ||||||
64
58
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Income before cumulative effect of a change in accounting principle | $ | 422.2 | $ | 380.5 | $ | 311.5 | ||||||
Add: After-tax interest expense on convertible debt | 9.3 | 9.0 | 7.4 | |||||||||
Income before cumulative effect of a change in accounting principle, for diluted net income per share | 431.5 | 389.5 | 318.9 | |||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | (298.5 | ) | ||||||||
Net income, for diluted net income per share | $ | 431.5 | $ | 389.5 | $ | 20.4 | ||||||
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
(Restated) | (Restated) | |||||||||||
Weighted average common shares outstanding | 68,278,858 | 66,689,757 | 65,365,218 | |||||||||
Dilutive effect of common stock equivalents | 1,635,349 | 1,843,755 | 1,691,921 | |||||||||
Shares issuable upon conversion of convertible debt | 4,813,056 | 4,813,056 | 4,232,852 | |||||||||
Diluted shares outstanding | 74,727,263 | 73,346,568 | 71,289,991 | |||||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | |||||
Add: After-tax interest expense on convertible debt | — | 9.3 | 9.0 | |||||||||
Net income (loss), for diluted net income (loss) per share | $ | (1,381.5 | ) | $ | 431.5 | $ | 389.5 | |||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
(Restated) | ||||||||||||
Weighted average common shares outstanding | 67,166,668 | 68,278,858 | 66,689,757 | |||||||||
Dilutive effect of common stock equivalents | — | 1,635,349 | 1,843,755 | |||||||||
Shares issuable upon conversion of convertible debt | — | 4,813,056 | 4,813,056 | |||||||||
Diluted shares outstanding | 67,166,668 | 74,727,263 | 73,346,568 | |||||||||
59
65
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Antidilutive options | — | 505,200 | 554,750 | |||||||||
Exercise prices | — | $54.22-$55.33 | $54.22 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Options | ||||||||||||
Antidilutive options | 2,983,405 | — | 505,200 | |||||||||
Exercise prices | $ | 22.12 - $55.33 | — | $ | 54.22 - $55.33 | |||||||
Restricted stock units | 2,234,122 | — | — | |||||||||
Performance units | 123,672 | — | — | |||||||||
Stock appreciation rights | 1,215,046 | — | — |
Stock Options | Price Range | ||||||||
Outstanding as of December 31, 2001 | 6,354,889 | $ | 5.00-$54.22 | ||||||
Granted | 1,883,875 | $ | 39.83-$41.83 | ||||||
Expired or cancelled | (404,024 | ) | $ | 14.06-$54.22 | |||||
Exercised | (1,484,321 | ) | $ | 5.00-$39.00 | |||||
Outstanding as of December 31, 2002 | 6,350,419 | $ | 15.50-$54.22 | ||||||
Granted | 16,000 | $ | 55.33 | ||||||
Expired or cancelled | (10,099 | ) | $ | 20.41-$54.22 | |||||
Exercised | (2,353,695 | ) | $ | 15.50-$54.22 | |||||
Outstanding as of December 31, 2003 | 4,002,625 | $ | 15.50-$55.33 | ||||||
Expired or cancelled | (14,450 | ) | $ | 15.50-$54.22 | |||||
Exercised | (693,495 | ) | $ | 15.50-$54.22 | |||||
Outstanding as of December 31, 2004 | 3,294,680 | $ | 22.12-$55.33 | ||||||
Stock | ||||||||
Options | Price Range | |||||||
Outstanding as of January 1, 2003 | 6,350,419 | $ | 15.50 - $54.22 | |||||
Granted | 16,000 | $55.33 | ||||||
Expired or cancelled | (10,099 | ) | $ | 20.41 - $54.22 | ||||
Exercised | (2,353,695 | ) | $ | 15.50 - $54.22 | ||||
Outstanding as of December 31, 2003 | 4,002,625 | $ | 15.50 - $55.33 | |||||
Expired or cancelled | (14,450 | ) | $ | 15.50 - $54.22 | ||||
Exercised | (693,495 | ) | $ | 15.50 - $54.22 | ||||
Outstanding as of December 31, 2004 | 3,294,680 | $ | 22.12 - $55.33 | |||||
Expired or cancelled | (176,800 | ) | $ | 22.12 - $54.22 | ||||
Exercised | (134,475 | ) | $ | 22.12 - $54.22 | ||||
Outstanding as of December 31, 2005 | 2,983,405 | $ | 22.12 - $55.33 |
66
Range of exercise prices | $ | 22.12-27.25 | $ | 33.00-39.83 | $ | 41.83-42.32 | $ | 54.22-55.33 | |||||||||
Options outstanding: | |||||||||||||||||
Number outstanding | 254,050 | 953,880 | 1,648,550 | 438,200 | |||||||||||||
Weighted average remaining contractual life (years) | 5.17 | 5.48 | 7.42 | 3.53 | |||||||||||||
Weighted average exercise price | $ | 22.60 | $ | 36.90 | $ | 41.83 | $ | 54.26 | |||||||||
Options exercisable: | |||||||||||||||||
Number exercisable | 254,050 | 933,880 | — | 422,200 | |||||||||||||
Weighted average exercise price | $ | 22.60 | $ | 36.84 | N/A | $ | 54.22 |
Range of Exercise Prices | $22.12 – 27.25 | $33.00 – 39.83 | $41.83 – 42.32 | $54.22 – 55.33 | ||||||||||||
Options outstanding: | ||||||||||||||||
Number outstanding | 228,175 | 829,980 | 1,517,050 | 408,200 | ||||||||||||
Weighted average remaining contractual life (years) | 4.16 | 4.50 | 6.42 | 2.55 | ||||||||||||
Weighted average exercise price | $ | 22.55 | $ | 36.91 | $ | 41.83 | $ | 54.26 | ||||||||
Options exercisable: | ||||||||||||||||
Number exercisable | 228,175 | 829,980 | 1,517,050 | 392,200 | ||||||||||||
Weighted average exercise price | $ | 22.55 | $ | 36.91 | $ | 41.83 | $ | 54.22 |
60
67
Stock Appreciation | Restricted Stock | Performance | ||||||||||
Rights(1) | Units | Shares(2) | ||||||||||
Outstanding as of January 1, 2003 | — | 663,496 | 207,642 | |||||||||
Granted | — | 882,294 | 82,108 | |||||||||
Expired or cancelled | — | (3 | ) | (1,282 | ) | |||||||
Distributed | — | (151,071 | ) | (32,310 | )(3) | |||||||
Outstanding as of December 31, 2003 | — | 1,394,716 | 256,158 | |||||||||
Granted | — | 954,637 | 53,193 | |||||||||
Expired or cancelled | — | (39,332 | ) | (6,664 | ) | |||||||
Distributed | — | (476,337 | ) | (93,660 | ) | |||||||
Outstanding as of December 31, 2004 | — | 1,833,684 | 209,027 | |||||||||
Granted | 1,215,046 | 605,811 | 56,733 | |||||||||
Expired or cancelled | — | (74,528 | ) | (67,452 | ) | |||||||
Distributed | — | (130,845 | ) | (74,636 | ) | |||||||
Outstanding as of December 31, 2005 | 1,215,046 | 2,234,122 | 123,672 | |||||||||
(1) | Does not include cash-settled stock appreciation rights. | |
(2) | Performance shares reflected as “granted” are notional shares granted at the beginning of a three-year performance period whose eventual payout is subject to satisfaction of performance criteria. Performance shares reflected as “distributed” are those that are paid out in cash or shares of common stock upon satisfaction of the performance criteria at the end of the three-year performance period. | |
(3) | The amount of performance shares reflected as “distributed” in 2003 includes distributions of cash and shares of common stock upon satisfaction of the applicable performance criteria. Of the 32,310 performance shares distributed in 2003, 21,688 shares were distributed in cash and 10,622 shares were distributed in shares of common stock. The amounts of performance shares reflected as “distributed” in 2004 and 2005 were distributed solely in shares of common stock. |
68
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Net income, as reported | $ | 422.2 | $ | 380.5 | $ | 13.0 | |||||||
Add: Stock-based employee compensation expense included in reported net income, net of tax | 10.9 | 5.5 | 2.2 | ||||||||||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of tax | (21.6 | ) | (23.3 | ) | (19.8 | ) | |||||||
Net income (loss), pro forma | $ | 411.5 | $ | 362.7 | $ | (4.6 | ) | ||||||
Net income (loss) per share: | |||||||||||||
Basic — as reported | $ | 6.18 | $ | 5.71 | $ | 0.20 | |||||||
Basic — pro forma | $ | 6.03 | $ | 5.44 | $ | (0.07 | ) | ||||||
Diluted — as reported | $ | 5.77 | $ | 5.31 | $ | 0.29 | |||||||
Diluted — pro forma | $ | 5.63 | $ | 5.07 | $ | 0.04 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Net income (loss), as reported | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | |||||
Add: Stock-based employee compensation expense included in reported net income (loss), net of tax | 14.7 | 10.9 | 5.5 | |||||||||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of tax | (18.1 | ) | (21.6 | ) | (23.3 | ) | ||||||
Net income (loss), pro forma | $ | (1,384.9 | ) | $ | 411.5 | $ | 362.7 | |||||
Net income (loss) per share: | ||||||||||||
Basic — as reported | $ | (20.57 | ) | $ | 6.18 | $ | 5.71 | |||||
Basic — pro forma | $ | (20.62 | ) | $ | 6.03 | $ | 5.44 | |||||
Diluted — as reported | $ | (20.57 | ) | $ | 5.77 | $ | 5.31 | |||||
Diluted — pro forma | $ | (20.62 | ) | $ | 5.63 | $ | 5.07 |
61
(3) |
69
Utilization | Accrual as of | |||||||||||||||
Charges | Cash | Non-Cash | December 31, 2005 | |||||||||||||
Employee termination benefits | $ | 56.5 | $ | (41.4 | ) | $ | — | $ | 15.1 | |||||||
Asset impairments | 15.1 | — | (15.1 | ) | — | |||||||||||
Contract termination costs | 11.4 | (6.4 | ) | — | 5.0 | |||||||||||
Other related costs | 3.8 | (3.8 | ) | — | — | |||||||||||
Total | $ | 86.8 | $ | (51.6 | ) | $ | (15.1 | ) | $ | 20.1 | ||||||
(4) | Acquisition |
Consideration paid to former owner | $ | 73.9 | ||
Debt assumed | 86.3 | |||
Fees and expenses | 3.2 | |||
Cost of acquisition | $ | 163.4 | ||
Property, plant and equipment | $ | 101.4 | ||
Net working capital | 32.6 | |||
Restructuring accrual | (18.8 | ) | ||
Other assets purchased and liabilities assumed, net | (25.1 | ) | ||
Goodwill | 35.0 | |||
Intangible assets | 38.3 | |||
Total cost allocation | $ | 163.4 | ||
62
70
(5) | Investments in Affiliates and Other Related Party Transactions |
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras) | 60 | % | — | % | — | % | ||||||
Lear-Kyungshin Sales and Engineering LLC | 60 | — | — | |||||||||
Shenyang Lear Automotive Seating and Interior Systems Co., Ltd. (China) | 60 | 60 | — | |||||||||
Shanghai Lear STEC Automotive Parts Co., Ltd. (China) | 55 | 55 | — | |||||||||
Lear Furukawa Corporation | 51 | 51 | 51 | |||||||||
Industrias Cousin Freres, S.L. (Spain) | 50 | 50 | 50 | |||||||||
Hanil Lear India Private Ltd. (India) | 50 | 50 | 50 | |||||||||
Lear Diamond Electro-Circuit Systems Co., Ltd. (Japan) | 50 | 50 | 50 | |||||||||
Lear-NHK Seating and Interior Co., Ltd. (Japan) | 50 | 50 | 50 | |||||||||
Nanjing Lear Xindi Automotive Interiors Systems Co., Ltd. (China) | 50 | 50 | 50 | |||||||||
Lear Dongfeng Automotive Seating Co., Ltd. (China) | 50 | 50 | — | |||||||||
Beijing Lear Dymos Automotive Seating and Interior Co., Ltd. (China) | 50 | — | — | |||||||||
Dong Kwang Lear Yuhan Hoesa (Korea) | 50 | — | — | |||||||||
Bing Assembly Systems, L.L.C | 49 | 49 | 49 | |||||||||
JL Automotive, LLC | 49 | 49 | 49 | |||||||||
Precision Fabrics Group, Inc. | 43 | 41 | 40 | |||||||||
Jiangxi Jiangling Lear Interior Systems Co., Ltd. (China) | 41 | 41 | 41 | |||||||||
Klingel Italiana S.R.L. (Italy) | 40 | — | — | |||||||||
Total Interior Systems — America, LLC | 39 | 39 | 39 | |||||||||
UPM S.r.L. (Italy) | 39 | 39 | 39 | |||||||||
Markol Otomotiv Yan Sanayi VE Ticaret A.S. (Turkey) | 35 | 35 | 35 | |||||||||
RecepTec Holdings, L.L.C | 21 | 21 | — | |||||||||
Corporate Eagle Two, L.L.C | — | 50 | 50 | |||||||||
Saturn Electronics Texas, L.L.C | — | 45 | 45 | |||||||||
Nawon Ind. Co., Ltd. (Korea) | — | 40 | — | |||||||||
Lear Motorola Integrated Solutions, L.L.C | — | — | 50 | |||||||||
Hanyil Co., Ltd. (Korea) | — | — | 29 | |||||||||
NTTF Industries, Ltd. (India) | — | — | 23 |
63
December 31, | 2005 | 2004 | 2003 | |||||||||
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras) | 60 | % | 60 | % | — | |||||||
Lear-Kyungshin Sales and Engineering LLC | 60 | 60 | — | |||||||||
Shanghai Lear STEC Automotive Parts Co., Ltd. (China) | 55 | 55 | 55 | |||||||||
Lear Shurlok Electronics (Proprietary) Limited (South Africa) | 51 | — | — | |||||||||
Industrias Cousin Freres, S.L. (Spain) | 50 | 50 | 50 | |||||||||
Hanil Lear India Private Limited (India) | 50 | 50 | 50 | |||||||||
Lear Diamond Electro-Circuit Systems Co., Ltd. (Japan) | 50 | 50 | 50 | |||||||||
Nanjing Lear Xindi Automotive Interiors Systems Co., Ltd. (China) | 50 | 50 | 50 | |||||||||
Lear Dongfeng Automotive Seating Co., Ltd. (China) | 50 | 50 | 50 | |||||||||
Dong Kwang Lear Yuhan Hoesa (Korea) | 50 | 50 | — | |||||||||
Jiangxi Jiangling Lear Interior Systems Co. Ltd. (China) | 41 | 41 | 41 | |||||||||
Beijing Lear Dymos Automotive Seating and Interior Co., Ltd. (China) | 40 | 50 | — | |||||||||
Total Interior Systems — America, LLC | 39 | 39 | 39 | |||||||||
UPM S.r.L. (Italy) | 39 | 39 | 39 | |||||||||
Markol Otomotiv Yan Sanayi VE Ticaret A.S. (Turkey) | 35 | 35 | 35 | |||||||||
RecepTec Holdings, L.L.C. | 21 | 21 | 21 | |||||||||
Shenyang Lear Automotive Seating and Interior Systems Co., Ltd. (China) | — | 60 | 60 | |||||||||
Lear Furukawa Corporation | — | 51 | 51 | |||||||||
Lear-NHK Seating and Interior Co., Ltd. (Japan) | — | 50 | 50 | |||||||||
Bing Assembly Systems, L.L.C. | — | 49 | 49 | |||||||||
JL Automotive, LLC | — | 49 | 49 | |||||||||
Precision Fabrics Group, Inc. | — | 43 | 41 | |||||||||
Klingel Italiana S.R.L. (Italy) | — | 40 | — | |||||||||
Corporate Eagle Two, L.L.C. | — | — | 50 | |||||||||
Saturn Electronics Texas, L.L.C. | — | — | 45 | |||||||||
Nawon Ind. Co., Ltd. (Korea) | — | — | 40 |
December 31, | |||||||||
2004 | 2003 | ||||||||
Balance sheet data: | |||||||||
Current assets | $ | 277.5 | $ | 227.3 | |||||
Non-current assets | 117.6 | 101.2 | |||||||
Current liabilities | 279.4 | 218.0 | |||||||
Non-current liabilities | 25.8 | 20.5 |
For the Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Income statement data: | |||||||||||||
Net sales | $ | 1,127.1 | $ | 779.6 | $ | 728.0 | |||||||
Gross profit | 87.7 | 92.9 | 76.4 | ||||||||||
Income before provision for income taxes | 16.0 | 22.2 | 14.7 | ||||||||||
Net income | 11.3 | 17.4 | 9.6 |
December 31, | 2005 | 2004 | ||||||
Balance sheet data: | ||||||||
Current assets | $ | 183.8 | $ | 277.5 | ||||
Non-current assets | 64.5 | 117.6 | ||||||
Current liabilities | 186.0 | 279.4 | ||||||
Non-current liabilities | 16.5 | 25.8 |
71
2005 2004 2003 Income statement data: Net sales $ 1,248.4 $ 1,127.1 $ 779.6 Gross profit 56.1 87.7 92.9 Income before provision for income taxes 0.9 16.0 22.2 Net income (loss) (4.2 ) 11.3 17.4
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Sales to affiliates | $ | 140.3 | $ | 144.7 | $ | 73.2 | ||||||
Purchases from affiliates | 120.9 | 96.1 | 74.9 | |||||||||
Purchases from other related parties (1) | 12.5 | 12.0 | 9.2 | |||||||||
Management and other fees for services provided to affiliates | 3.3 | 7.6 | 13.5 | |||||||||
Dividends received from affiliates | 3.2 | 8.7 | 5.9 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Sales to affiliates | $ | 144.9 | $ | 140.3 | $ | 144.7 | ||||||
Purchases from affiliates | 224.9 | 120.9 | 96.1 | |||||||||
Purchases from other related parties(1) | 13.6 | 12.5 | 12.0 | |||||||||
Management and other fees for services provided to affiliates | 0.6 | 3.3 | 7.6 | |||||||||
Dividends received from affiliates | 5.3 | 3.2 | 8.7 |
(1) | Includes $4.3 million, $3.5 million and $3.9 million in 2005, 2004 and |
64
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65
(6) |
66
(7) | Long-Term Debt |
December 31, | ||||||||||||
2004 | 2003 | |||||||||||
Long-Term | Weighted Average | Long-Term | Weighted Average | |||||||||
Debt Instrument | Debt | Interest Rate | Debt | Interest Rate | ||||||||
5.75% Senior Notes, due 2014 | $ | 399.2 | 5.635% | $ | — | — | ||||||
Zero-coupon Convertible Senior Notes, due 2022 | 286.3 | 4.75 % | 273.2 | 4.75 % | ||||||||
8.125% Senior Notes, due 2008 | 338.5 | 8.125% | 313.8 | 8.125% | ||||||||
8.11% Senior Notes, due 2009 | 800.0 | 7.74 % | 800.0 | 7.18 % | ||||||||
7.96% Senior Notes, due 2005 | 600.0 | 6.95 % | 600.0 | 6.36 % | ||||||||
Other | 75.7 | 4.22 % | 74.2 | 4.34 % | ||||||||
2,499.7 | 2,061.2 | |||||||||||
Less — current portion | (632.8 | ) | (4.0 | ) | ||||||||
Long-term debt | $ | 1,866.9 | $ | 2,057.2 | ||||||||
2005 | 2004 | |||||||||||||||
Long-Term | Weighted Average | Long-Term | Weighted Average | |||||||||||||
December 31, | Debt | Interest Rate | Debt | Interest Rate | ||||||||||||
Debt Instrument | ||||||||||||||||
Amended and Restated Primary Credit Facility | $ | 400.0 | 5.67 | % | $ | — | — | |||||||||
5.75% Senior Notes, due 2014 | 399.3 | 5.635 | % | 399.2 | 5.635 | % | ||||||||||
Zero-Coupon Convertible Senior Notes, due 2022 | 300.1 | 4.75 | % | 286.3 | 4.75 | % | ||||||||||
8.125% Senior Notes, due 2008 | 295.6 | 8.125 | % | 338.5 | 8.125 | % | ||||||||||
8.11% Senior Notes, due 2009 | 800.0 | 8.35 | % | 800.0 | 7.74 | % | ||||||||||
7.96% Senior Notes, due 2005 | — | — | 600.0 | 6.95 | % | |||||||||||
Other | 57.5 | 6.34 | % | 75.7 | 4.22 | % | ||||||||||
2,252.5 | 2,499.7 | |||||||||||||||
Less — current portion | (9.4 | ) | (632.8 | ) | ||||||||||||
Long-term debt | $ | 2,243.1 | $ | 1,866.9 | ||||||||||||
74
Year | Borrowings | Repayments | ||||||
2004 | $ | 4,153.1 | $ | 4,153.1 | ||||
2003 | 6,084.7 | 6,217.5 | ||||||
2002 | 7,557.0 | 8,138.5 |
Year | Borrowings | Repayments | ||||||
2005 | $ | 8,942.4 | $ | 8,542.4 | ||||
2004 | 4,153.1 | 4,153.1 | ||||||
2003 | 6,084.7 | 6,217.5 |
67
75
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69
Year | Maturities | |||
2005 | $ | 632.8 | ||
2006 | 6.8 | |||
2007 | 9.2 | |||
2008 | 342.3 | |||
2009 | 805.4 |
Year | Maturities | |||
2006 | $ | 9.4 | ||
2007 | 722.0 | (1) | ||
2008 | 300.4 | |||
2009 | 799.8 | |||
2010 | 2.8 |
The Company’s zero-coupon convertible senior notes are reflected in the scheduled maturities table above at their book value of $300.1 million as of December 31, 2005. Their accreted value as of February 20, 2007 (the first date at which holders may require the Company to purchase the notes) will be $316.5 million. |
77
(8) | Income Taxes |
For the Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle: | |||||||||||||||
Domestic | $ | 47.7 | $ | 240.9 | $ | 234.0 | |||||||||
Foreign | 516.6 | 293.5 | 246.5 | ||||||||||||
$ | 564.3 | $ | 534.4 | $ | 480.5 | ||||||||||
Domestic provision (benefit) for income taxes: | |||||||||||||||
Current provision | $ | 7.2 | $ | 48.9 | $ | 101.1 | |||||||||
Deferred benefit | (4.0 | ) | (38.4 | ) | (15.3 | ) | |||||||||
Total domestic provision | 3.2 | 10.5 | 85.8 | ||||||||||||
Foreign provision (benefit) for income taxes: | |||||||||||||||
Current provision | 112.1 | 137.9 | 85.9 | ||||||||||||
Deferred — | |||||||||||||||
Deferred provision (benefit) | 18.4 | 7.6 | (6.8 | ) | |||||||||||
Benefit of prior unrecognized net operating loss carryforwards | (5.7 | ) | (2.3 | ) | (7.9 | ) | |||||||||
Total foreign deferred provision (benefit) | 12.7 | 5.3 | (14.7 | ) | |||||||||||
Total foreign provision | 124.8 | 143.2 | 71.2 | ||||||||||||
Provision for income taxes | $ | 128.0 | $ | 153.7 | $ | 157.0 | |||||||||
70
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates | ||||||||||||
Domestic | $ | (1,520.8 | ) | $ | 47.7 | $ | 240.9 | |||||
Foreign | 392.2 | 516.6 | 293.5 | |||||||||
$ | (1,128.6 | ) | $ | 564.3 | $ | 534.4 | ||||||
Domestic provision for income taxes: | ||||||||||||
Current provision (benefit) | $ | (12.9 | ) | $ | 7.2 | $ | 48.9 | |||||
Deferred provision (benefit) | 65.3 | (4.0 | ) | (38.4 | ) | |||||||
Total domestic provision | 52.4 | 3.2 | 10.5 | |||||||||
Foreign provision for income taxes: | ||||||||||||
Current provision | 162.5 | 112.1 | 137.9 | |||||||||
Deferred provision (benefit) | (20.6 | ) | 12.7 | 5.3 | ||||||||
Total foreign provision | 141.9 | 124.8 | 143.2 | |||||||||
Provision for income taxes | $ | 194.3 | $ | 128.0 | $ | 153.7 | ||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle multiplied by the United States federal statutory rate | $ | 197.5 | $ | 187.0 | $ | 168.2 | ||||||
Differences in income taxes on foreign earnings, losses and remittances | (46.5 | ) | (47.7 | ) | 18.3 | |||||||
Valuation adjustments | 13.3 | 19.1 | 49.3 | |||||||||
Research and development credits | (16.6 | ) | (12.8 | ) | (25.0 | ) | ||||||
Change in enacted tax rates on prior divestiture | — | — | (14.5 | ) | ||||||||
Other | (19.7 | ) | 8.1 | (39.3 | ) | |||||||
$ | 128.0 | $ | 153.7 | $ | 157.0 | |||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates multiplied by the United States federal statutory rate | $ | (395.0 | ) | $ | 197.5 | $ | 187.0 | |||||
Differences in income taxes on foreign earnings, losses and remittances | (34.0 | ) | (46.5 | ) | (47.7 | ) | ||||||
Valuation adjustments | 275.2 | 13.3 | 19.1 | |||||||||
Research and development credits | (22.6 | ) | (16.6 | ) | (12.8 | ) | ||||||
Goodwill impairment | 354.4 | — | — | |||||||||
Investment credit/grants | (22.8 | ) | (7.4 | ) | — | |||||||
Other | 39.1 | (12.3 | ) | 8.1 | ||||||||
Provision for income taxes | $ | 194.3 | $ | 128.0 | $ | 153.7 | ||||||
78
December 31, | |||||||||
2004 | 2003 | ||||||||
Deferred income tax liabilities: | |||||||||
Long-term asset basis differences | $ | 146.8 | $ | 125.3 | |||||
Recoverable customer engineering and tooling | 44.8 | 59.5 | |||||||
Undistributed earnings of foreign subsidiaries | 83.4 | 84.5 | |||||||
Other | 2.7 | 1.2 | |||||||
$ | 277.7 | $ | 270.5 | ||||||
Deferred income tax assets: | |||||||||
Tax loss carryforwards | $ | (277.0 | ) | $ | (231.1 | ) | |||
Tax credit carryforwards | (26.6 | ) | — | ||||||
Retirement benefit plans | (95.5 | ) | (70.3 | ) | |||||
Accrued liabilities | (37.0 | ) | (59.7 | ) | |||||
Reserves related to current assets | (35.2 | ) | (50.9 | ) | |||||
Self-insurance reserves | (22.7 | ) | (18.1 | ) | |||||
Minimum pension liability | (26.2 | ) | (21.4 | ) | |||||
Derivative instruments and hedging | (34.0 | ) | (36.3 | ) | |||||
(554.2 | ) | (487.8 | ) | ||||||
Valuation allowance | 277.7 | 220.8 | |||||||
$ | (276.5 | ) | $ | (267.0 | ) | ||||
Net deferred income tax liability | $ | 1.2 | $ | 3.5 | |||||
71
December 31, | 2005 | 2004 | ||||||
Deferred income tax assets: | ||||||||
Tax loss carryforwards | $ | 259.0 | $ | 277.0 | ||||
Tax credit carryforwards | 85.7 | 26.6 | ||||||
Retirement benefit plans | 90.1 | 85.1 | ||||||
Accrued liabilities | 71.7 | 38.4 | ||||||
Reserves related to current assets | 29.7 | 35.2 | ||||||
Self-insurance reserves | 20.6 | 22.7 | ||||||
Minimum pension liability | 39.5 | 26.2 | ||||||
Deferred compensation | 20.2 | 9.0 | ||||||
Recoverable customer engineering and tooling | 57.5 | — | ||||||
Derivative instruments and hedging | 22.0 | 34.0 | ||||||
696.0 | 554.2 | |||||||
Valuation allowance | (478.3 | ) | (277.7 | ) | ||||
$ | 217.7 | $ | 276.5 | |||||
Deferred income tax liabilities: | ||||||||
Long-term asset basis differences | $ | (137.4 | ) | $ | (146.8 | ) | ||
Recoverable customer engineering and tooling | — | (44.8 | ) | |||||
Undistributed earnings of foreign subsidiaries | (86.8 | ) | (83.4 | ) | ||||
Other | (4.3 | ) | (2.7 | ) | ||||
$ | (228.5 | ) | $ | (277.7 | ) | |||
Net deferred income tax liability | $ | (10.8 | ) | $ | (1.2 | ) | ||
December 31, | |||||||||
2004 | 2003 | ||||||||
Deferred income tax assets: | |||||||||
Current | $ | (148.1 | ) | $ | (140.6 | ) | |||
Long-term | (50.4 | ) | (41.5 | ) | |||||
Deferred income tax liabilities: | |||||||||
Current | 38.4 | 30.3 | |||||||
Long-term | 161.3 | 155.3 | |||||||
Net deferred income tax liability | $ | 1.2 | $ | 3.5 | |||||
December 31, | 2005 | 2004 | ||||||
Deferred income tax assets: | ||||||||
Current | $ | 138.6 | $ | 148.1 | ||||
Long-term | 76.0 | 50.4 | ||||||
Deferred income tax liabilities: | ||||||||
Current | (33.3 | ) | (38.4 | ) | ||||
Long-term | (192.1 | ) | (161.3 | ) | ||||
Net deferred income tax liability | $ | (10.8 | ) | $ | (1.2 | ) | ||
79
(9) | Pension and Other Postretirement Benefit Plans |
72
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December 31, | ||||||||||||||||
Pension | Other Postretirement | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 509.4 | $ | 397.2 | $ | 199.5 | $ | 181.5 | ||||||||
Service cost | 36.7 | 33.4 | 13.1 | 14.5 | ||||||||||||
Interest cost | 32.2 | 28.2 | 12.3 | 12.2 | ||||||||||||
Amendments | 8.5 | 4.4 | (10.5 | ) | (35.2 | ) | ||||||||||
Actuarial loss | 27.8 | 25.5 | 7.0 | 22.5 | ||||||||||||
Benefits paid | (18.6 | ) | (15.6 | ) | (6.9 | ) | (5.4 | ) | ||||||||
Curtailment (gain) loss | (1.7 | ) | (0.5 | ) | 1.4 | 0.5 | ||||||||||
Special termination benefits | 1.0 | 2.3 | 0.2 | 0.2 | ||||||||||||
Settlements | (0.9 | ) | (0.9 | ) | — | — | ||||||||||
New plans | 0.7 | 0.2 | — | — | ||||||||||||
Acquisitions | 15.2 | — | — | — | ||||||||||||
Transfers out | — | (0.2 | ) | — | — | |||||||||||
Translation adjustment | 20.5 | 35.4 | 6.0 | 8.7 | ||||||||||||
Benefit obligation at end of year | $ | 630.8 | $ | 509.4 | $ | 222.1 | $ | 199.5 | ||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 327.2 | $ | 219.6 | $ | — | $ | — | ||||||||
Actual return on plan assets | 37.1 | 31.6 | — | — | ||||||||||||
Employer contributions | 35.7 | 67.4 | 6.9 | 5.4 | ||||||||||||
Benefits paid | (18.6 | ) | (15.6 | ) | (6.9 | ) | (5.4 | ) | ||||||||
Settlements | (0.9 | ) | (0.9 | ) | — | — | ||||||||||
Transfers out | — | (0.2 | ) | — | — | |||||||||||
Translation adjustment | 14.0 | 25.3 | — | — | ||||||||||||
Fair value of plan assets at end of year | $ | 394.5 | $ | 327.2 | $ | — | $ | — | ||||||||
Funded status | $ | (236.3 | ) | $ | (182.2 | ) | $ | (222.1 | ) | $ | (199.5 | ) | ||||
Unrecognized net actuarial loss | 106.1 | 93.0 | 78.9 | 71.9 | ||||||||||||
Unrecognized net transition (asset) obligation | (0.4 | ) | (0.7 | ) | 12.7 | 13.4 | ||||||||||
Unrecognized prior service cost | 49.4 | 43.9 | (29.3 | ) | (29.3 | ) | ||||||||||
Contributions between September 30 and December 31 | 10.2 | 5.6 | 1.8 | 1.3 | ||||||||||||
Net amount recognized | $ | (71.0 | ) | $ | (40.4 | ) | $ | (158.0 | ) | $ | (142.2 | ) | ||||
Pension | Other Postretirement | |||||||||||||||
December 31, | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 630.8 | $ | 509.4 | $ | 222.1 | $ | 199.5 | ||||||||
Service cost | 41.0 | 36.7 | 11.7 | 13.1 | ||||||||||||
Interest cost | 37.6 | 32.2 | 13.5 | 12.3 | ||||||||||||
Amendments | 5.6 | 8.5 | (1.0 | ) | (10.5 | ) | ||||||||||
Actuarial loss | 96.0 | 27.8 | 22.4 | 7.0 | ||||||||||||
Benefits paid | (21.6 | ) | (18.6 | ) | (7.8 | ) | (6.9 | ) | ||||||||
Curtailment (gain) loss | (1.7 | ) | (1.7 | ) | 0.1 | 1.4 | ||||||||||
Special termination benefits | 0.1 | 1.0 | 0.3 | 0.2 | ||||||||||||
Settlements | (1.5 | ) | (0.9 | ) | — | — | ||||||||||
New plans | 0.1 | 0.7 | — | — | ||||||||||||
Acquisitions | 0.4 | 15.2 | — | — | ||||||||||||
Translation adjustment | 1.5 | 20.5 | 4.2 | 6.0 | ||||||||||||
Benefit obligation at end of year | $ | 788.3 | $ | 630.8 | $ | 265.5 | $ | 222.1 | ||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 394.5 | $ | 327.2 | $ | — | $ | — | ||||||||
Actual return on plan assets | 45.6 | 37.1 | — | — | ||||||||||||
Employer contributions | 48.7 | 35.7 | 7.8 | 6.9 | ||||||||||||
Benefits paid | (21.6 | ) | (18.6 | ) | (7.8 | ) | (6.9 | ) | ||||||||
Settlements | (1.5 | ) | (0.9 | ) | — | — | ||||||||||
Acquisitions | 0.2 | — | — | — | ||||||||||||
Translation adjustment | 8.3 | 14.0 | — | — | ||||||||||||
Fair value of plan assets at end of year | $ | 474.2 | $ | 394.5 | $ | — | $ | — | ||||||||
Funded status | $ | (314.1 | ) | $ | (236.3 | ) | $ | (265.5 | ) | $ | (222.1 | ) | ||||
Unrecognized net actuarial loss | 182.9 | 106.1 | 111.3 | 78.9 | ||||||||||||
Unrecognized net transition (asset) obligation | (0.2 | ) | (0.4 | ) | 8.9 | 12.7 | ||||||||||
Unrecognized prior service cost | 50.5 | 49.4 | (37.1 | ) | (29.3 | ) | ||||||||||
Contributions between September 30 and December 31 | 15.8 | 10.2 | 1.8 | 1.8 | ||||||||||||
Net amount recognized | $ | (65.1 | ) | $ | (71.0 | ) | $ | (180.6 | ) | $ | (158.0 | ) | ||||
Amounts recognized in the consolidated balance sheets: | ||||||||||||||||
Accrued benefit liability | $ | (228.6 | ) | $ | (187.4 | ) | $ | (180.6 | ) | $ | (158.0 | ) | ||||
Intangible asset | 48.5 | 43.8 | — | — | ||||||||||||
Accumulated other comprehensive loss | 115.0 | 72.6 | — | — | ||||||||||||
Net amount recognized | $ | (65.1 | ) | $ | (71.0 | ) | $ | (180.6 | ) | $ | (158.0 | ) | ||||
73
81
December 31, | ||||||||||||||||
Pension | Other Postretirement | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Amounts recognized in the consolidated balance sheets: | ||||||||||||||||
Prepaid benefit cost | $ | — | $ | 0.7 | $ | — | $ | — | ||||||||
Accrued benefit liability | (187.4 | ) | (140.4 | ) | (158.0 | ) | (142.2 | ) | ||||||||
Intangible asset | 43.8 | 37.1 | — | — | ||||||||||||
Deferred tax asset | 26.2 | 21.4 | — | — | ||||||||||||
Accumulated other comprehensive loss | 46.4 | 40.8 | — | — | ||||||||||||
Net amount recognized | $ | (71.0 | ) | $ | (40.4 | ) | $ | (158.0 | ) | $ | (142.2 | ) | ||||
For the Year Ended December 31, | ||||||||||||||||||||||||
Pension | Other Postretirement | |||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | |||||||||||||||||||
Service cost | $ | 36.7 | $ | 33.4 | $ | 29.5 | $ | 13.1 | $ | 14.5 | $ | 11.0 | ||||||||||||
Interest cost | 32.2 | 28.2 | 23.1 | 12.3 | 12.2 | 9.3 | ||||||||||||||||||
Expected return on plan assets | (24.3 | ) | (17.6 | ) | (17.5 | ) | — | — | — | |||||||||||||||
Amortization of actuarial loss | 2.8 | 2.6 | 0.4 | 3.9 | 2.8 | 0.6 | ||||||||||||||||||
Amortization of transition (asset) obligation | (0.3 | ) | (0.4 | ) | (0.4 | ) | 1.2 | 1.8 | 1.7 | |||||||||||||||
Amortization of prior service cost | 4.3 | 3.9 | 3.3 | (2.8 | ) | (0.5 | ) | (0.1 | ) | |||||||||||||||
Special termination benefits | 0.1 | 2.3 | 0.9 | 0.2 | 0.2 | 0.4 | ||||||||||||||||||
Curtailment (gain) loss | 2.4 | 1.2 | 1.9 | (7.7 | ) | 1.3 | (0.8 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 53.9 | $ | 53.6 | $ | 41.2 | $ | 20.2 | $ | 32.3 | $ | 22.1 | ||||||||||||
Pension | Other Postretirement | |||||||||||||||||||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | 2005 | 2004 | 2003 | ||||||||||||||||||
Service cost | $ | 41.0 | $ | 36.7 | $ | 33.4 | $ | 11.7 | $ | 13.1 | $ | 14.5 | ||||||||||||
Interest cost | 37.6 | 32.2 | 28.2 | 13.5 | 12.3 | 12.2 | ||||||||||||||||||
Expected return on plan assets | (30.2 | ) | (24.3 | ) | (17.6 | ) | — | — | — | |||||||||||||||
Amortization of actuarial loss | 3.0 | 2.8 | 2.6 | 3.6 | 3.9 | 2.8 | ||||||||||||||||||
Amortization of transition (asset) obligation | (0.2 | ) | (0.3 | ) | (0.4 | ) | 1.1 | 1.2 | 1.8 | |||||||||||||||
Amortization of prior service cost | 5.4 | 4.3 | 3.9 | (3.1 | ) | (2.8 | ) | (0.5 | ) | |||||||||||||||
Special termination benefits | — | 0.1 | 2.3 | 0.3 | 0.2 | 0.2 | ||||||||||||||||||
Settlement loss | 1.0 | 0.5 | — | — | — | — | ||||||||||||||||||
Curtailment (gain) loss | 0.5 | 1.9 | 1.2 | 1.4 | (7.7 | ) | 1.3 | |||||||||||||||||
Net periodic benefit cost | $ | 58.1 | $ | 53.9 | $ | 53.6 | $ | 28.5 | $ | 20.2 | $ | 32.3 | ||||||||||||
December 31, | |||||||||||||||||
Other | |||||||||||||||||
Pension | Postretirement | ||||||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||||||
Discount rate: | |||||||||||||||||
Domestic plans | 6 | % | 61/4 | % | 6 | % | 61/4 | % | |||||||||
Foreign plans | 6 | % | 61/4 | % | 61/2 | % | 61/2 | % | |||||||||
Rate of compensation increase: | |||||||||||||||||
Domestic plans | 3 | % | 3 | % | N/A | N/A | |||||||||||
Foreign plans | 31/4 | % | 31/2 | % | N/A | N/A |
Other | ||||||||||||||||
Pension | Postretirement | |||||||||||||||
December 31, | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Discount rate: | ||||||||||||||||
Domestic plans | 5.75 | % | 6.00 | % | 5.70 | % | 6.00 | % | ||||||||
Foreign plans | 5.00 | % | 6.00 | % | 5.30 | % | 6.50 | % | ||||||||
Rate of compensation increase: | ||||||||||||||||
Domestic plans | 3.75 | % | 3.00 | % | N/A | N/A | ||||||||||
Foreign plans | 3.25 | % | 3.25 | % | N/A | N/A |
74
82
For the Year Ended December 31, | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | ||||||||||||||||||||
Discount rate: | |||||||||||||||||||||||||
Domestic plans | 61/4 | % | 63/4 | % | 71/2 | % | 61/4 | % | 63/4 | % | 71/2 | % | |||||||||||||
Foreign plans | 61/4 | % | 7 | % | 7 | % | 61/2 | % | 7 | % | 7 | % | |||||||||||||
Expected return on plan assets: | |||||||||||||||||||||||||
Domestic plans | 73/4 | % | 73/4 | % | 9 | % | N/A | N/A | N/A | ||||||||||||||||
Foreign plans | 7 | % | 7 | % | 7 | % | N/A | N/A | N/A | ||||||||||||||||
Rate of compensation increase: | |||||||||||||||||||||||||
Domestic plans | 3 | % | 33/4 | % | 41/2 | % | N/A | N/A | N/A | ||||||||||||||||
Foreign plans | 31/4 | % | 31/2 | % | 31/4 | % | N/A | N/A | N/A |
Pension | Other Postretirement | |||||||||||||||||||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | 2005 | 2004 | 2003 | ||||||||||||||||||
Discount rate: | ||||||||||||||||||||||||
Domestic plans | 6.00 | % | 6.25 | % | 6.75 | % | 6.00 | % | 6.25 | % | 6.75 | % | ||||||||||||
Foreign plans | 6.00 | % | 6.25 | % | 7.00 | % | 6.50 | % | 6.50 | % | 7.00 | % | ||||||||||||
Expected return on plan assets: | ||||||||||||||||||||||||
Domestic plans | 7.75 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||||||||
Foreign plans | 7.00 | % | 7.00 | % | 7.00 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase: | ||||||||||||||||||||||||
Domestic plans | 3.00 | % | 3.00 | % | 3.75 | % | N/A | N/A | N/A | |||||||||||||||
Foreign plans | 3.25 | % | 3.25 | % | 3.50 | % | N/A | N/A | N/A |
December 31, | |||||||||
2004 | 2003 | ||||||||
Equity securities: | |||||||||
Domestic plans | 70 | % | 68 | % | |||||
Foreign plans | 61 | % | 59 | % | |||||
Debt securities: | |||||||||
Domestic plans | 26 | % | 28 | % | |||||
Foreign plans | 37 | % | 37 | % | |||||
Cash and other: | |||||||||
Domestic plans | 4 | % | 4 | % | |||||
Foreign plans | 2 | % | 4 | % |
75
December 31, | 2005 | 2004 | ||||||
Equity securities: | ||||||||
Domestic plans | 71 | % | 70 | % | ||||
Foreign plans | 59 | % | 61 | % | ||||
Debt securities: | ||||||||
Domestic plans | 27 | % | 26 | % | ||||
Foreign plans | 38 | % | 37 | % | ||||
Cash and other: | ||||||||
Domestic plans | 2 | % | 4 | % | ||||
Foreign plans | 3 | % | 2 | % |
83
Pension | Other Postretirement | |||||||
2005 | $ | 21.0 | $ | 8.2 | ||||
2006 | 21.5 | 8.4 | ||||||
2007 | 23.4 | 9.1 | ||||||
2008 | 25.7 | 9.9 | ||||||
2009 | 27.8 | 10.6 | ||||||
Five years thereafter | 185.6 | 63.4 |
76
Other | ||||||||
Pension | Postretirement | |||||||
2006 | $ | 23.2 | $ | 9.4 | ||||
2007 | 24.5 | 10.0 | ||||||
2008 | 27.1 | 10.5 | ||||||
2009 | 29.2 | 11.3 | ||||||
2010 | 31.7 | 11.9 | ||||||
Five years thereafter | 211.4 | 68.4 |
84
(10) |
85
77
Balance as of December 31, 2002 | $ | 36.9 | |||
Expense, net | 3.3 | ||||
Settlements | (3.6 | ) | |||
Foreign currency translation and other | 3.1 | ||||
Balance as of December 31, 2003 | 39.7 | ||||
Expense, net | 7.9 | ||||
Settlements | (4.7 | ) | |||
Foreign currency translation and other | 0.5 | ||||
Balance as of December 31, 2004 | $ | 43.4 | |||
Balance as of January 1, 2004 | $ | 39.7 | ||
Expense, net | 7.9 | |||
Settlements | (4.7 | ) | ||
Foreign currency translation and other | 0.5 | |||
Balance as of December 31, 2004 | 43.4 | |||
Expense, net | 16.7 | |||
Settlements | (26.0 | ) | ||
Foreign currency translation and other | (0.2 | ) | ||
Balance as of December 31, 2005 | $ | 33.9 | ||
86
78
87
79
88
2005 | $ | 88.4 | ||
2006 | 97.5 | |||
2007 | 59.2 | |||
2008 | 51.6 | |||
2009 | 39.9 | |||
2010 and thereafter | 113.0 | |||
Total | $ | 449.6 | ||
2006 | $ | 113.5 | ||
2007 | 68.7 | |||
2008 | 58.4 | |||
2009 | 51.0 | |||
2010 | 43.4 | |||
2011 and thereafter | 49.7 | |||
Total | $ | 384.7 | ||
(11) | Segment Reporting |
80
89
2004 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,314.7 | $ | 2,965.0 | $ | 2,680.3 | $ | — | $ | 16,960.0 | ||||||||||
Income before interest, other expense and income taxes | 684.9 | 85.1 | 207.5 | (209.1 | ) | 768.4 | ||||||||||||||
Depreciation and amortization | 134.3 | 108.9 | 89.1 | 22.8 | 355.1 | |||||||||||||||
Capital expenditures | 210.0 | 86.9 | 115.7 | 16.4 | 429.0 | |||||||||||||||
Total assets | 4,480.8 | 2,449.4 | 2,624.1 | 390.1 | 9,944.4 |
2003 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 10,743.9 | $ | 2,817.2 | $ | 2,185.6 | $ | — | $ | 15,746.7 | ||||||||||
Income before interest, other expense and income taxes | 698.1 | 104.0 | 197.8 | (227.1 | ) | 772.8 | ||||||||||||||
Depreciation and amortization | 129.7 | 108.1 | 70.1 | 13.9 | 321.8 | |||||||||||||||
Capital expenditures | 123.3 | 113.5 | 107.3 | 31.5 | 375.6 | |||||||||||||||
Total assets | 3,764.9 | 2,434.8 | 2,177.7 | 193.6 | 8,571.0 |
2002 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 9,853.5 | $ | 2,550.4 | $ | 2,020.7 | $ | — | $ | 14,424.6 | ||||||||||
Income before interest, other expense, income taxes and cumulative effect of a change in accounting principle | 545.9 | 141.2 | 231.5 | (175.5 | ) | 743.1 | ||||||||||||||
Depreciation and amortization | 135.3 | 101.2 | 67.7 | (3.2 | ) | 301.0 | ||||||||||||||
Capital expenditures | 91.5 | 90.4 | 82.5 | 8.2 | 272.6 | |||||||||||||||
Total assets | 3,177.9 | 2,301.9 | 1,623.1 | 380.1 | 7,483.0 |
81
2005 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,035.0 | $ | 3,097.6 | $ | 2,956.6 | $ | — | $ | 17,089.2 | ||||||||||
Segment earnings(1) | 323.3 | (191.1 | ) | 180.0 | (206.8 | ) | 105.4 | |||||||||||||
Depreciation and amortization | 150.7 | 116.6 | 106.0 | 20.1 | 393.4 | |||||||||||||||
Capital expenditures | 229.2 | 190.9 | 102.9 | 45.4 | 568.4 | |||||||||||||||
Total assets | 3,946.3 | 1,506.8 | 2,161.3 | 674.0 | 8,288.4 | |||||||||||||||
2004 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,314.6 | $ | 2,965.0 | $ | 2,680.4 | $ | — | $ | 16,960.0 | ||||||||||
Segment earnings(1) | 682.1 | 85.1 | 210.9 | (209.7 | ) | 768.4 | ||||||||||||||
Depreciation and amortization | 133.4 | 108.9 | 89.9 | 22.9 | 355.1 | |||||||||||||||
Capital expenditures | 208.6 | 86.9 | 116.4 | 17.1 | 429.0 | |||||||||||||||
Total assets | 4,172.7 | 2,403.6 | 2,297.3 | 1,070.8 | 9,944.4 | |||||||||||||||
2003 | ||||||||||||||||||||
Electronic | ||||||||||||||||||||
Seating | Interior | and Electrical | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 10,743.8 | $ | 2,817.1 | $ | 2,185.8 | $ | — | $ | 15,746.7 | ||||||||||
Segment earnings(1) | 696.7 | 104.0 | 200.2 | (228.1 | ) | 772.8 | ||||||||||||||
Depreciation and amortization | 129.1 | 108.1 | 70.7 | 13.9 | 321.8 | |||||||||||||||
Capital expenditures | 122.4 | 113.5 | 108.2 | 31.5 | 375.6 | |||||||||||||||
Total assets | 3,588.7 | 2,414.3 | 1,954.2 | 613.8 | 8,571.0 | |||||||||||||||
(1) | See definition above. |
90
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Income before interest, other expense, provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle | $ | 768.4 | $ | 772.8 | $ | 743.1 | ||||||
Interest expense | 165.5 | 186.6 | 210.5 | |||||||||
Other expense, net | 38.6 | 51.8 | 52.1 | |||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle | $ | 564.3 | $ | 534.4 | $ | 480.5 | ||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Income before goodwill impairment charges, interest, other expense, provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates | $ | 105.4 | $ | 768.4 | $ | 772.8 | ||||||
Goodwill impairment charges | 1,012.8 | — | — | |||||||||
Interest expense | 183.2 | 165.5 | 186.6 | |||||||||
Other expense, net | 38.0 | 38.6 | 51.8 | |||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates | $ | (1,128.6 | ) | $ | 564.3 | $ | 534.4 | |||||
For the Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Revenues from external customers: | |||||||||||||
United States | $ | 6,200.7 | $ | 6,361.9 | $ | 6,288.1 | |||||||
Canada | 1,317.8 | 1,331.6 | 1,392.5 | ||||||||||
Germany | 2,026.0 | 1,705.9 | 1,478.0 | ||||||||||
Other countries | 7,415.5 | 6,347.3 | 5,266.0 | ||||||||||
Total | $ | 16,960.0 | $ | 15,746.7 | $ | 14,424.6 | |||||||
December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Tangible long-lived assets: | |||||||||||||
United States | $ | 846.5 | $ | 814.2 | $ | 789.6 | |||||||
Canada | 65.5 | 59.2 | 57.8 | ||||||||||
Germany | 238.6 | 159.6 | 128.3 | ||||||||||
Other countries | 869.2 | 784.8 | 734.9 | ||||||||||
Total | $ | 2,019.8 | $ | 1,817.8 | $ | 1,710.6 | |||||||
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Revenues from external customers: | ||||||||||||
United States | $ | 6,252.2 | $ | 6,200.7 | $ | 6,361.9 | ||||||
Canada | 1,374.1 | 1,317.8 | 1,331.6 | |||||||||
Germany | 2,123.4 | 2,026.0 | 1,705.9 | |||||||||
Other countries | 7,339.5 | 7,415.5 | 6,347.3 | |||||||||
Total | $ | 17,089.2 | $ | 16,960.0 | $ | 15,746.7 | ||||||
December 31, | 2005 | 2004 | 2003 | |||||||||
Tangible long-lived assets: | ||||||||||||
United States | $ | 889.0 | $ | 846.5 | $ | 814.2 | ||||||
Canada | 69.0 | 65.5 | 59.2 | |||||||||
Germany | 185.1 | 238.6 | 159.6 | |||||||||
Other countries | 876.2 | 869.2 | 784.8 | |||||||||
Total | $ | 2,019.3 | $ | 2,019.8 | $ | 1,817.8 | ||||||
82
91
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
General Motors Corporation | 31.4 | % | 35.7 | % | 34.8 | % | ||||||
Ford Motor Company | 24.1 | 23.6 | 25.2 | |||||||||
DaimlerChrysler | 11.8 | 11.1 | 12.0 | |||||||||
BMW | 7.5 | 7.0 | 6.5 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
General Motors Corporation | 28.3 | % | 31.4 | % | 35.7 | % | ||||||
Ford Motor Company | 24.7 | 24.1 | 23.6 | |||||||||
DaimlerChrysler | 11.4 | 11.8 | 11.1 | |||||||||
BMW | 7.6 | 7.5 | 7.0 |
(12) | Financial Instruments |
92
83
For the Year Ended December 31, | ||||||||||||
2004 | 2003 | 2002 | ||||||||||
Repayments of securitizations | $ | — | $ | (189.0 | ) | $ | (71.7 | ) | ||||
Proceeds from collections reinvested in securitizations | 4,664.4 | 4,584.6 | 4,525.3 | |||||||||
Servicing fees received | 5.5 | 5.3 | 5.6 |
For the Year Ended December 31, | 2005 | 2004 | 2003 | |||||||||
Proceeds from (repayments of) securitizations | $ | 150.0 | $ | — | $ | (189.0 | ) | |||||
Proceeds from collections reinvested in securitizations | 4,288.1 | 4,664.4 | 4,584.6 | |||||||||
Servicing fees received | 5.3 | 5.5 | 5.3 |
93
84
85
94
(13) | Quarterly Financial Data (unaudited) |
Thirteen Weeks Ended | ||||||||||||||||
April 3, | July 3, | October 2, | December 31, | |||||||||||||
2004 | 2004 | 2004 | 2004 | |||||||||||||
Net sales | $ | 4,492.1 | $ | 4,284.0 | $ | 3,897.8 | $ | 4,286.1 | ||||||||
Gross profit | 346.9 | 371.6 | 320.2 | 363.4 | ||||||||||||
Net income | 91.4 | 116.1 | 91.7 | 123.0 | ||||||||||||
Basic net income per share | 1.34 | 1.69 | 1.34 | 1.82 | ||||||||||||
Diluted net income per share (restated — Note 2) | 1.24 | 1.58 | 1.26 | 1.70 |
Thirteen Weeks Ended | ||||||||||||||||
March 29, | June 28, | September 27, | December 31, | |||||||||||||
2003 | 2003 | 2003 | 2003 | |||||||||||||
Net sales | $ | 3,898.7 | $ | 4,101.2 | $ | 3,491.5 | $ | 4,255.3 | ||||||||
Gross profit | 308.6 | 353.2 | 303.7 | 380.9 | ||||||||||||
Net income | 67.9 | 104.1 | 76.1 | 132.4 | ||||||||||||
Basic net income per share | 1.03 | 1.58 | 1.13 | 1.95 | ||||||||||||
Diluted net income per share (restated — Note 2) | 0.97 | 1.47 | 1.06 | 1.81 |
Thirteen Weeks Ended | ||||||||||||||||
April 2, | July 2, | October 1, | December 31, | |||||||||||||
2005 | 2005 | 2005 | 2005 | |||||||||||||
Net sales | $ | 4,286.0 | $ | 4,419.3 | $ | 3,986.6 | $ | 4,397.3 | ||||||||
Gross profit | 199.9 | 220.8 | 86.4 | 228.9 | ||||||||||||
Goodwill impairment charges | — | — | 670.0 | 342.8 | ||||||||||||
Net income (loss) | 15.6 | (44.4 | ) | (750.1 | ) | (602.6 | ) | |||||||||
Basic net income (loss) per share | 0.23 | (0.66 | ) | (11.17 | ) | (8.97 | ) | |||||||||
Diluted net income (loss) per share | 0.23 | (0.66 | ) | (11.17 | ) | (8.97 | ) |
Thirteen Weeks Ended | ||||||||||||||||
April 3, | July 3, | October 2, | December 31, | |||||||||||||
2004 | 2004 | 2004 | 2004 | |||||||||||||
Net sales | $ | 4,492.1 | $ | 4,284.0 | $ | 3,897.8 | $ | 4,286.1 | ||||||||
Gross profit | 346.9 | 371.6 | 320.2 | 363.4 | ||||||||||||
Net income | 91.4 | 116.1 | 91.7 | 123.0 | ||||||||||||
Basic net income per share | 1.34 | 1.69 | 1.34 | 1.82 | ||||||||||||
Diluted net income per share (restated — Note 2) | 1.24 | 1.58 | 1.26 | 1.70 |
(14) | Accounting Pronouncements |
86
95
87
96
(15) | Supplemental Guarantor Condensed Consolidating Financial Statements |
December 31, 2004 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 123.5 | $ | 3.8 | $ | 457.6 | $ | — | $ | 584.9 | ||||||||||
Accounts receivable | 54.6 | 443.2 | 2,087.1 | — | 2,584.9 | |||||||||||||||
Inventories | 17.5 | 193.2 | 410.5 | — | 621.2 | |||||||||||||||
Recoverable customer engineering and tooling | 9.8 | 110.5 | 85.5 | — | 205.8 | |||||||||||||||
Other | 116.7 | 64.8 | 193.7 | — | 375.2 | |||||||||||||||
Total current assets | 322.1 | 815.5 | 3,234.4 | — | 4,372.0 | |||||||||||||||
Long-Term Assets: | ||||||||||||||||||||
Property, plant and equipment, net | 156.3 | 759.2 | 1,104.3 | — | 2,019.8 | |||||||||||||||
Goodwill, net | 105.0 | 1,920.5 | 1,013.9 | — | 3,039.4 | |||||||||||||||
Investments in subsidiaries | 4,556.1 | 2,543.8 | — | (7,099.9 | ) | — | ||||||||||||||
Other | 119.3 | 90.8 | 303.1 | — | 513.2 | |||||||||||||||
Total long-term assets | 4,936.7 | 5,314.3 | 2,421.3 | (7,099.9 | ) | 5,572.4 | ||||||||||||||
$ | 5,258.8 | $ | 6,129.8 | $ | 5,655.7 | $ | (7,099.9 | ) | $ | 9,944.4 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 35.4 | $ | — | $ | 35.4 | ||||||||||
Accounts payable and drafts | 229.5 | 810.8 | 1,737.3 | — | 2,777.6 | |||||||||||||||
Accrued salaries and wages | 10.6 | 50.0 | 144.8 | — | 205.4 | |||||||||||||||
Accrued employee benefits | 122.7 | 57.1 | 64.5 | — | 244.3 | |||||||||||||||
Other accrued liabilities | 57.3 | 188.6 | 506.5 | — | 752.4 | |||||||||||||||
Current portion of long-term debt | 626.5 | 2.4 | 3.9 | — | 632.8 | |||||||||||||||
Total current liabilities | 1,046.6 | 1,108.9 | 2,492.4 | — | 4,647.9 | |||||||||||||||
Long-Term Liabilities: | ||||||||||||||||||||
Long-term debt | 1,826.1 | 12.0 | 28.8 | — | 1,866.9 | |||||||||||||||
Intercompany accounts, net | (549.6 | ) | 1,222.7 | (673.1 | ) | — | — | |||||||||||||
Other | 205.6 | 190.0 | 303.9 | — | 699.5 | |||||||||||||||
Total long-term liabilities | 1,482.1 | 1,424.7 | (340.4 | ) | — | 2,566.4 | ||||||||||||||
Stockholders’ Equity | 2,730.1 | 3,596.2 | 3,503.7 | (7,099.9 | ) | 2,730.1 | ||||||||||||||
$ | 5,258.8 | $ | 6,129.8 | $ | 5,655.7 | $ | (7,099.9 | ) | $ | 9,944.4 | ||||||||||
December 31, 2005 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 38.6 | $ | 4.8 | $ | 164.2 | $ | — | $ | 207.6 | ||||||||||
Accounts receivable | 111.3 | 398.3 | 1,828.0 | — | 2,337.6 | |||||||||||||||
Inventories | 32.4 | 244.3 | 411.5 | — | 688.2 | |||||||||||||||
Recoverable customer engineering and tooling | 188.9 | 19.3 | 109.5 | — | 317.7 | |||||||||||||||
Other | 118.2 | 56.5 | 120.6 | — | 295.3 | |||||||||||||||
Total current assets | 489.4 | 723.2 | 2,633.8 | — | 3,846.4 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Property, plant and equipment, net | 248.7 | 743.3 | 1,027.3 | — | 2,019.3 | |||||||||||||||
Goodwill, net | 454.5 | 536.5 | 948.8 | — | 1,939.8 | |||||||||||||||
Investments in subsidiaries | 3,274.0 | 3,090.5 | — | (6,364.5 | ) | — | ||||||||||||||
Other | 181.4 | 30.7 | 270.8 | — | 482.9 | |||||||||||||||
Total long-term assets | 4,158.6 | 4,401.0 | 2,246.9 | (6,364.5 | ) | 4,442.0 | ||||||||||||||
$ | 4,648.0 | $ | 5,124.2 | $ | 4,880.7 | $ | (6,364.5 | ) | $ | 8,288.4 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 23.4 | $ | — | $ | 23.4 | ||||||||||
Accounts payable and drafts | 388.7 | 785.6 | 1,819.2 | ��� | 2,993.5 | |||||||||||||||
Accrued employee benefits | 87.2 | 32.7 | 48.6 | — | 168.5 | |||||||||||||||
Other accrued liabilities | 155.5 | 178.8 | 577.6 | — | 911.9 | |||||||||||||||
Current portion of long-term debt | 2.1 | 2.1 | 5.2 | — | 9.4 | |||||||||||||||
Total current liabilities | 633.5 | 999.2 | 2,474.0 | — | 4,106.7 | |||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt | 2,194.7 | 8.4 | 40.0 | — | 2,243.1 | |||||||||||||||
Intercompany accounts, net | 410.0 | 1,237.4 | (1,647.4 | ) | — | — | ||||||||||||||
Other | 298.8 | 158.0 | 370.8 | — | 827.6 | |||||||||||||||
Total long-term liabilities | 2,903.5 | 1,403.8 | (1,236.6 | ) | — | 3,070.7 | ||||||||||||||
STOCKHOLDERS’ EQUITY | 1,111.0 | 2,721.2 | 3,643.3 | (6,364.5 | ) | 1,111.0 | ||||||||||||||
$ | 4,648.0 | $ | 5,124.2 | $ | 4,880.7 | $ | (6,364.5 | ) | $ | 8,288.4 | ||||||||||
88
97
December 31, 2003 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 40.9 | $ | 9.7 | $ | 118.7 | $ | — | $ | 169.3 | ||||||||||
Accounts receivable | 17.9 | 331.0 | 1,851.4 | — | 2,200.3 | |||||||||||||||
Inventories | 10.2 | 188.0 | 352.0 | — | 550.2 | |||||||||||||||
Recoverable customer engineering and tooling | (11.1 | ) | 86.5 | 93.6 | — | 169.0 | ||||||||||||||
Other | 97.3 | 57.8 | 131.5 | — | 286.6 | |||||||||||||||
Total current assets | 155.2 | 673.0 | 2,547.2 | — | 3,375.4 | |||||||||||||||
Long-Term Assets: | ||||||||||||||||||||
Property, plant and equipment, net | 127.4 | 765.8 | 924.6 | — | 1,817.8 | |||||||||||||||
Goodwill, net | 100.2 | 1,906.7 | 933.2 | — | 2,940.1 | |||||||||||||||
Investments in subsidiaries | 3,320.4 | 2,051.4 | — | (5,371.8 | ) | — | ||||||||||||||
Other | 96.9 | 70.4 | 270.4 | — | 437.7 | |||||||||||||||
Total long-term assets | 3,644.9 | 4,794.3 | 2,128.2 | (5,371.8 | ) | 5,195.6 | ||||||||||||||
$ | 3,800.1 | $ | 5,467.3 | $ | 4,675.4 | $ | (5,371.8 | ) | $ | 8,571.0 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Short-term borrowings | $ | 0.3 | $ | 0.1 | $ | 16.7 | $ | — | $ | 17.1 | ||||||||||
Accounts payable and drafts | 128.7 | 749.1 | 1,566.3 | — | 2,444.1 | |||||||||||||||
Accrued salaries and wages | 13.1 | 42.1 | 130.0 | — | 185.2 | |||||||||||||||
Accrued employee benefits | 93.2 | 56.9 | 58.1 | — | 208.2 | |||||||||||||||
Other accrued liabilities | 42.0 | 280.9 | 400.6 | — | 723.5 | |||||||||||||||
Current portion of long-term debt | — | 1.6 | 2.4 | — | 4.0 | |||||||||||||||
Total current liabilities | 277.3 | 1,130.7 | 2,174.1 | — | 3,582.1 | |||||||||||||||
Long-Term Liabilities: | ||||||||||||||||||||
Long-term debt | 2,027.0 | 12.8 | 17.4 | — | 2,057.2 | |||||||||||||||
Intercompany accounts, net | (1,024.8 | ) | 1,496.8 | (472.0 | ) | — | — | |||||||||||||
Other | 263.1 | 180.6 | 230.5 | — | 674.2 | |||||||||||||||
Total long-term liabilities | 1,265.3 | 1,690.2 | (224.1 | ) | — | 2,731.4 | ||||||||||||||
Stockholders’ Equity | 2,257.5 | 2,646.4 | 2,725.4 | (5,371.8 | ) | 2,257.5 | ||||||||||||||
$ | 3,800.1 | $ | 5,467.3 | $ | 4,675.4 | $ | (5,371.8 | ) | $ | 8,571.0 | ||||||||||
December 31, 2004 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) Cash and cash equivalents $ 123.5 $ 3.8 $ 457.6 $ — $ 584.9 Accounts receivable 58.3 439.5 2,087.1 — 2,584.9 Inventories 20.8 189.9 410.5 — 621.2 Recoverable customer engineering and tooling 117.6 2.7 85.5 — 205.8 Other 119.0 62.5 193.7 — 375.2 Total current assets 439.2 698.4 3,234.4 — 4,372.0 Property, plant and equipment, net 180.1 735.4 1,104.3 — 2,019.8 Goodwill, net 456.0 1,569.5 1,013.9 — 3,039.4 Investments in subsidiaries 3,685.7 3,241.5 — (6,927.2 ) — Other 174.6 35.5 303.1 — 513.2 Total long-term assets 4,496.4 5,581.9 2,421.3 (6,927.2 ) 5,572.4 $ 4,935.6 $ 6,280.3 $ 5,655.7 $ (6,927.2 ) $ 9,944.4 Short-term borrowings $ — $ — $ 35.4 $ — $ 35.4 Accounts payable and drafts 326.3 714.0 1,737.3 — 2,777.6 Accrued employee benefits 143.0 36.8 64.5 — 244.3 Other accrued liabilities 76.6 229.9 651.3 — 957.8 Current portion of long-term debt 626.5 2.4 3.9 — 632.8 Total current liabilities 1,172.4 983.1 2,492.4 — 4,647.9 Long-term debt 1,826.1 12.0 28.8 — 1,866.9 Intercompany accounts, net (1,014.8 ) 1,687.9 (673.1 ) — — Other 221.8 173.8 303.9 — 699.5 Total long-term liabilities 1,033.1 1,873.7 (340.4 ) — 2,566.4 2,730.1 3,423.5 3,503.7 (6,927.2 ) 2,730.1 $ 4,935.6 $ 6,280.3 $ 5,655.7 $ (6,927.2 ) $ 9,944.4
8998
For the Year Ended December 31, 2004 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,100.4 | $ | 7,489.4 | $ | 10,990.3 | $ | (2,620.1 | ) | $ | 16,960.0 | |||||||||
Cost of sales | 1,214.0 | 6,796.0 | 10,168.0 | (2,620.1 | ) | 15,557.9 | ||||||||||||||
Selling, general and administrative expenses | 152.2 | 182.5 | 299.0 | — | 633.7 | |||||||||||||||
Interest expense | 33.2 | 97.6 | 34.7 | — | 165.5 | |||||||||||||||
Intercompany charges, net | (317.2 | ) | 377.6 | (60.4 | ) | — | — | |||||||||||||
Other (income) expense, net | (14.9 | ) | 26.8 | 26.7 | — | 38.6 | ||||||||||||||
Income before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | 33.1 | 8.9 | 522.3 | — | 564.3 | |||||||||||||||
Provision (benefit) for income taxes | (17.9 | ) | 18.4 | 127.5 | — | 128.0 | ||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 16.7 | — | 16.7 | |||||||||||||||
Equity in net (income) loss of affiliates | 0.3 | (3.3 | ) | 0.4 | — | (2.6 | ) | |||||||||||||
Equity in net income of subsidiaries | (371.5 | ) | (206.2 | ) | — | 577.7 | — | |||||||||||||
Net income | $ | 422.2 | $ | 200.0 | $ | 377.7 | $ | (577.7 | ) | $ | 422.2 | |||||||||
For the Year Ended December 31, 2003 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,027.4 | $ | 7,780.7 | $ | 9,404.2 | $ | (2,465.6 | ) | $ | 15,746.7 | |||||||||
Cost of sales | 1,020.1 | 7,054.4 | 8,791.4 | (2,465.6 | ) | 14,400.3 | ||||||||||||||
Selling, general and administrative expenses | 150.2 | 192.8 | 230.6 | — | 573.6 | |||||||||||||||
Interest expense | 31.8 | 103.0 | 51.8 | — | 186.6 | |||||||||||||||
Intercompany charges, net | (370.8 | ) | 326.0 | 44.8 | — | — | ||||||||||||||
Other (income) expense, net | (0.3 | ) | 40.8 | 11.3 | — | 51.8 | ||||||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries and equity in net income of affiliates and subsidiaries | 196.4 | 63.7 | 274.3 | — | 534.4 | |||||||||||||||
Provision for income taxes | 6.9 | 39.8 | 107.0 | — | 153.7 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 8.8 | — | 8.8 | |||||||||||||||
Equity in net income of affiliates | (0.4 | ) | (2.4 | ) | (5.8 | ) | — | (8.6 | ) | |||||||||||
Equity in net income of subsidiaries | (190.6 | ) | (145.0 | ) | — | 335.6 | — | |||||||||||||
Net income | $ | 380.5 | $ | 171.3 | $ | 164.3 | $ | (335.6 | ) | $ | 380.5 | |||||||||
For the Year Ended December 31, 2005 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) Net sales $ 1,657.2 $ 6,599.0 $ 11,350.1 $ (2,517.1 ) $ 17,089.2 Cost of sales 1,727.4 6,568.4 10,574.5 (2,517.1 ) 16,353.2 Selling, general and administrative expenses 309.6 2.8 318.2 — 630.6 Goodwill impairment charges — 1,012.8 — — 1.012.8 Interest expense 45.9 105.0 32.3 — 183.2 Intercompany (income) expense, net (373.7 ) 308.2 65.5 — — Other expense, net 6.4 19.1 12.5 — 38.0 Income (loss) before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries (58.4 ) (1,417.3 ) 347.1 — (1,128.6 ) Provision (benefit) for income taxes 270.2 (136.4 ) 60.5 — 194.3 Minority interests in consolidated subsidiaries — — 7.2 — 7.2 Equity in net (income) loss of affiliates 40.6 (3.5 ) 14.3 — 51.4 Equity in net (income) loss of subsidiaries 1,012.3 (224.5 ) — (787.8 ) — Net income (loss) $ (1,381.5 ) $ (1,052.9 ) $ 265.1 $ 787.8 $ (1,381.5 )
9099
For the Year Ended December 31, 2002 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,051.4 | $ | 7,682.4 | $ | 7,987.8 | $ | (2,297.0 | ) | $ | 14,424.6 | |||||||||
Cost of sales | 1,145.4 | 6,860.2 | 7,455.7 | (2,297.0 | ) | 13,164.3 | ||||||||||||||
Selling, general and administrative expenses | 84.2 | 208.9 | 224.1 | — | 517.2 | |||||||||||||||
Interest expense | 91.0 | 67.6 | 51.9 | — | 210.5 | |||||||||||||||
Intercompany charges, net | (447.2 | ) | 460.4 | (13.2 | ) | — | — | |||||||||||||
Other (income) expense, net | 31.1 | 44.1 | (23.1 | ) | — | 52.1 | ||||||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and subsidiaries and cumulative effect of a change in accounting principle | 146.9 | 41.2 | 292.4 | — | 480.5 | |||||||||||||||
Provision for income taxes | 15.4 | 60.9 | 80.7 | — | 157.0 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 13.3 | — | 13.3 | |||||||||||||||
Equity in net (income) loss of affiliates | (0.4 | ) | 0.6 | (1.5 | ) | — | (1.3 | ) | ||||||||||||
Equity in net (income) loss of subsidiaries | 118.9 | (96.6 | ) | — | (22.3 | ) | — | |||||||||||||
Income before cumulative effect of a change in accounting principle | 13.0 | 76.3 | 199.9 | 22.3 | 311.5 | |||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | 181.2 | 117.3 | — | 298.5 | |||||||||||||||
Net income (loss) | $ | 13.0 | $ | (104.9 | ) | $ | 82.6 | $ | 22.3 | $ | 13.0 | |||||||||
For the Year Ended December 31, 2004 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 181.7 | $ | (48.2 | ) | $ | 542.4 | $ | — | $ | 675.9 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (67.4 | ) | (150.4 | ) | (211.2 | ) | — | (429.0 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | (14.1 | ) | (3.3 | ) | (85.6 | ) | — | (103.0 | ) | |||||||||||
Net proceeds from disposition of businesses and other assets | 13.9 | 14.6 | 27.8 | — | 56.3 | |||||||||||||||
Other, net | 0.8 | 0.1 | 2.3 | — | 3.2 | |||||||||||||||
Net cash used in investing activities | (66.8 | ) | (139.0 | ) | (266.7 | ) | — | (472.5 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Issuance of senior notes | 399.2 | — | — | — | 399.2 | |||||||||||||||
Other long-term debt repayments, net | (11.4 | ) | 1.0 | (39.0 | ) | — | (49.4 | ) | ||||||||||||
Short-term debt repayments, net | (0.3 | ) | (0.1 | ) | (29.4 | ) | — | (29.8 | ) | |||||||||||
Change in intercompany accounts | (275.2 | ) | 184.0 | 91.2 | — | — | ||||||||||||||
Dividends paid | (68.0 | ) | — | — | — | (68.0 | ) | |||||||||||||
Proceeds from exercise of stock options | 24.4 | — | — | — | 24.4 | |||||||||||||||
Repurchase of common stock | (97.7 | ) | — | — | — | (97.7 | ) | |||||||||||||
Decrease in drafts | (3.3 | ) | (8.1 | ) | (1.2 | ) | — | (12.6 | ) | |||||||||||
Net cash provided by financing activities | (32.3 | ) | 176.8 | 21.6 | — | 166.1 | ||||||||||||||
Effect of foreign currency translation | — | 4.5 | 41.6 | — | 46.1 | |||||||||||||||
Net Change in Cash and Cash Equivalents | 82.6 | (5.9 | ) | 338.9 | — | 415.6 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 40.9 | 9.7 | 118.7 | — | 169.3 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 123.5 | $ | 3.8 | $ | 457.6 | $ | — | $ | 584.9 | ||||||||||
For the Year Ended December 31, 2004 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) Net sales $ 1,652.1 $ 6,937.7 $ 10,990.3 $ (2,620.1 ) $ 16,960.0 Cost of sales 1,739.9 6,270.1 10,168.0 (2,620.1 ) 15,557.9 Selling, general and administrative expenses 205.3 129.4 299.0 — 633.7 Interest expense 30.2 100.6 34.7 — 165.5 Intercompany (income) expense, net (317.2 ) 377.6 (60.4 ) — — Other (income) expense, net (17.8 ) 29.7 26.7 — 38.6 Income before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries 11.7 30.3 522.3 — 564.3 Provision (benefit) for income taxes (17.9 ) 18.4 127.5 — 128.0 Minority interests in consolidated subsidiaries — — 16.7 — 16.7 Equity in net (income) loss of affiliates 0.3 (3.3 ) 0.4 — (2.6 ) Equity in net income of subsidiaries (392.9 ) (301.2 ) — 694.1 — Net income $ 422.2 $ 316.4 $ 377.7 $ (694.1 ) $ 422.2
For the Year Ended December 31, 2003 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,651.2 | $ | 7,156.9 | $ | 9,404.2 | $ | (2,465.6 | ) | $ | 15,746.7 | |||||||||
Cost of sales | 1,648.5 | 6,426.0 | 8,791.4 | (2,465.6 | ) | 14,400.3 | ||||||||||||||
Selling, general and administrative expenses | 211.9 | 131.1 | 230.6 | — | 573.6 | |||||||||||||||
Interest expense | 30.4 | 104.4 | 51.8 | — | 186.6 | |||||||||||||||
Intercompany (income) expense, net | (382.7 | ) | 337.9 | 44.8 | — | — | ||||||||||||||
Other expense, net | 2.9 | 37.6 | 11.3 | — | 51.8 | |||||||||||||||
Income before provision for income taxes, minority interests in consolidated subsidiaries and equity in net income of affiliates and subsidiaries | 140.2 | 119.9 | 274.3 | — | 534.4 | |||||||||||||||
Provision for income taxes | 6.9 | 39.8 | 107.0 | — | 153.7 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 8.8 | — | 8.8 | |||||||||||||||
Equity in net income of affiliates | (0.4 | ) | (2.4 | ) | (5.8 | ) | — | (8.6 | ) | |||||||||||
Equity in net income of subsidiaries | (246.8 | ) | (127.3 | ) | — | 374.1 | — | |||||||||||||
Net income | $ | 380.5 | $ | 209.8 | $ | 164.3 | $ | (374.1 | ) | $ | 380.5 | |||||||||
91100
For the Year Ended December 31, 2003 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 283.1 | $ | 322.1 | $ | (18.9 | ) | $ | — | $ | 586.3 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (60.0 | ) | (151.3 | ) | (164.3 | ) | — | (375.6 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | (0.6 | ) | — | (13.1 | ) | — | (13.7 | ) | ||||||||||||
Net proceeds from disposition of businesses and other assets | 0.2 | 3.9 | 29.6 | — | 33.7 | |||||||||||||||
Other, net | — | 6.8 | 2.0 | — | 8.8 | |||||||||||||||
Net cash used in investing activities | (60.4 | ) | (140.6 | ) | (145.8 | ) | — | (346.8 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Long-term revolving credit repayments, net | (132.8 | ) | — | — | — | (132.8 | ) | |||||||||||||
Other long-term debt repayments, net | (4.3 | ) | 4.1 | (10.1 | ) | — | (10.3 | ) | ||||||||||||
Short-term debt repayments, net | (4.2 | ) | (0.2 | ) | (19.6 | ) | — | (24.0 | ) | |||||||||||
Change in intercompany accounts | (58.3 | ) | (139.6 | ) | 197.9 | — | — | |||||||||||||
Proceeds from exercise of stock options | 66.4 | — | — | — | 66.4 | |||||||||||||||
Repurchase of common stock | (1.1 | ) | — | — | — | (1.1 | ) | |||||||||||||
Decrease in drafts | (48.0 | ) | 4.6 | (13.4 | ) | — | (56.8 | ) | ||||||||||||
Net cash used in financing activities | (182.3 | ) | (131.1 | ) | 154.8 | — | (158.6 | ) | ||||||||||||
Effect of foreign currency translation | — | (43.7 | ) | 40.4 | — | (3.3 | ) | |||||||||||||
Net Change in Cash and Cash Equivalents | 40.4 | 6.7 | 30.5 | — | 77.6 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 0.5 | 3.0 | 88.2 | — | 91.7 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 40.9 | $ | 9.7 | $ | 118.7 | $ | — | $ | 169.3 | ||||||||||
For the Year Ended December 31, 2005 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) $ (260.7 ) $ (30.5 ) $ 852.0 $ — $ 560.8 Additions to property, plant and equipment (123.0 ) (235.9 ) (209.5 ) — (568.4 ) Cost of acquisitions, net of cash acquired — — (11.8 ) — (11.8 ) Net proceeds from disposition of businesses and other assets 7.8 16.1 19.7 — 43.6 Other, net 1.9 0.6 2.8 — 5.3 Net cash used in investing activities (113.3 ) (219.2 ) (198.8 ) — (531.3 ) Repayment of senior notes (600.0 ) — — — (600.0 ) Primary credit facility borrowings 400.0 — — — 400.0 Other long-term debt repayments, net (17.7 ) (2.2 ) (12.8 ) — (32.7 ) Short-term debt repayments, net — — (23.8 ) — (23.8 ) Change in intercompany accounts 601.1 249.2 (850.3 ) — — Dividends paid (67.2 ) — — — (67.2 ) Proceeds from exercise of stock options 4.7 — — — 4.7 Repurchase of common stock (25.4 ) — — — (25.4 ) Decrease in drafts (7.1 ) 1.5 2.3 — (3.3 ) Other, net 0.7 — — — 0.7 Net cash used in financing activities 289.1 248.5 (884.6 ) — (347.0 ) Effect of foreign currency translation — 2.2 (62.0 ) — (59.8 ) (84.9 ) 1.0 (293.4 ) — (377.3 ) 123.5 3.8 457.6 — 584.9 $ 38.6 $ 4.8 $ 164.2 $ — $ 207.6
92101
For the Year Ended December 31, 2002 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 199.9 | $ | 214.2 | $ | 131.0 | $ | — | $ | 545.1 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (22.4 | ) | (128.2 | ) | (122.0 | ) | — | (272.6 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | (3.5 | ) | (3.8 | ) | (7.9 | ) | — | (15.2 | ) | |||||||||||
Net proceeds from disposition of businesses and other assets | — | 3.4 | 19.1 | — | 22.5 | |||||||||||||||
Other, net | (29.0 | ) | 34.8 | 0.2 | — | 6.0 | ||||||||||||||
Net cash used in investing activities | (54.9 | ) | (93.8 | ) | (110.6 | ) | — | (259.3 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Issuance of senior notes | 250.3 | — | — | — | 250.3 | |||||||||||||||
Long-term revolving credit repayments, net | (583.4 | ) | — | — | — | (583.4 | ) | |||||||||||||
Other long-term debt borrowings, net | 12.2 | (1.9 | ) | (8.9 | ) | — | 1.4 | |||||||||||||
Short-term debt repayments, net | (25.5 | ) | 0.3 | (6.2 | ) | — | (31.4 | ) | ||||||||||||
Change in intercompany accounts | 113.0 | (89.0 | ) | (24.0 | ) | — | — | |||||||||||||
Proceeds from exercise of stock options | 47.4 | — | — | — | 47.4 | |||||||||||||||
Increase in drafts | 43.5 | (19.8 | ) | (3.9 | ) | — | 19.8 | |||||||||||||
Other, net | 0.1 | — | — | — | 0.1 | |||||||||||||||
Net cash used in financing activities | (142.4 | ) | (110.4 | ) | (43.0 | ) | — | (295.8 | ) | |||||||||||
Effect of foreign currency translation | — | (13.8 | ) | 27.9 | — | 14.1 | ||||||||||||||
Net Change in Cash and Cash Equivalents | 2.6 | (3.8 | ) | 5.3 | — | 4.1 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | (2.1 | ) | 6.8 | 82.9 | — | 87.6 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 0.5 | $ | 3.0 | $ | 88.2 | $ | — | $ | 91.7 | ||||||||||
For the Year Ended December 31, 2004 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) $ 100.6 $ 32.9 $ 542.4 $ — $ 675.9 Additions to property, plant and equipment (71.6 ) (146.2 ) (211.2 ) — (429.0 ) Cost of acquisitions, net of cash acquired (14.1 ) (3.3 ) (85.6 ) — (103.0 ) Net proceeds from disposition of businesses and other assets 15.3 13.2 27.8 — 56.3 Other, net 0.8 0.1 2.3 — 3.2 Net cash used in investing activities (69.6 ) (136.2 ) (266.7 ) — (472.5 ) Issuance of senior notes 399.2 — — — 399.2 Other long-term debt repayments, net (11.4 ) 1.0 (39.0 ) — (49.4 ) Short-term debt repayments, net (0.3 ) (0.1 ) (29.4 ) — (29.8 ) Change in intercompany accounts (189.1 ) 97.9 91.2 — — Dividends paid (68.0 ) — — — (68.0 ) Proceeds from exercise of stock options 24.4 — — — 24.4 Repurchase of common stock (97.7 ) — — — (97.7 ) Decrease in drafts (6.1 ) (5.3 ) (1.2 ) — (12.6 ) Net cash provided by financing activities 51.0 93.5 21.6 — 166.1 Effect of foreign currency translation — 4.5 41.6 — 46.1 82.0 (5.3 ) 338.9 — 415.6 41.5 9.1 118.7 — 169.3 $ 123.5 $ 3.8 $ 457.6 $ — $ 584.9
102
For the Year Ended December 31, 2003 Non- Parent Guarantors Guarantors Eliminations Consolidated (In millions) $ 261.9 $ 343.3 $ (18.9 ) $ — $ 586.3 Additions to property, plant and equipment (69.6 ) (141.7 ) (164.3 ) — (375.6 ) Cost of acquisitions, net of cash acquired (0.6 ) — (13.1 ) — (13.7 ) Net proceeds from disposition of businesses and other assets 0.6 3.5 29.6 — 33.7 Other, net — 6.8 2.0 — 8.8 Net cash used in investing activities (69.6 ) (131.4 ) (145.8 ) — (346.8 ) Primary credit facility repayments, net (132.8 ) — — — (132.8 ) Other long-term debt repayments, net (4.3 ) 4.1 (10.1 ) — (10.3 ) Short-term debt repayments, net (4.2 ) (0.2 ) (19.6 ) — (24.0 ) Change in intercompany accounts (30.9 ) (167.0 ) 197.9 — — Proceeds from exercise of stock options 66.4 — — — 66.4 Repurchase of common stock (1.1 ) — — — (1.1 ) Decrease in drafts (45.1 ) 1.7 (13.4 ) — (56.8 ) Net cash used in financing activities (152.0 ) (161.4 ) 154.8 — (158.6 ) Effect of foreign currency translation — (43.7 ) 40.4 — (3.3 ) 40.3 6.8 30.5 — 77.6 1.2 2.3 88.2 — 91.7 $ 41.5 $ 9.1 $ 118.7 $ — $ 169.3
103
93
December 31, | ||||||||
2004 | 2003 | |||||||
Senior notes | $ | 2,424.0 | $ | 1,987.0 | ||||
Other long-term debt | 43.0 | 54.4 | ||||||
2,467.0 | 2,041.4 | |||||||
Less — current portion | (628.9 | ) | (1.6 | ) | ||||
$ | 1,838.1 | $ | 2,039.8 | |||||
December 31, | 2005 | 2004 | ||||||
Amended and restated primary credit facility | $ | 400.0 | $ | — | ||||
Senior notes | 1,795.0 | 2,424.0 | ||||||
Other long-term debt | 12.3 | 43.0 | ||||||
2,207.3 | 2,467.0 | |||||||
Less — current portion | (4.2 | ) | (628.9 | ) | ||||
$ | 2,203.1 | $ | 1,838.1 | |||||
Year | Maturities | |||
2005 | $ | 628.9 | ||
2006 | 2.4 | |||
2007 | 2.4 | |||
2008 | 340.8 | |||
2009 | 803.9 |
Year | Maturities | |||
2006 | $ | 4.2 | ||
2007 | 702.2 | |||
2008 | 297.6 | |||
2009 | 796.3 | |||
2010 | 1.4 |
94
104
Balance as of | Balance | |||||||||||||||||||||
Beginning of | Other | as of End | ||||||||||||||||||||
Year | Additions | Retirements | Changes | of Year | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2004: | ||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 30.6 | $ | 11.7 | $ | (16.0 | ) | $ | 0.4 | $ | 26.7 | |||||||||||
Reserve for unmerchantable inventories | 55.8 | 32.1 | (16.0 | ) | 1.1 | 73.0 | ||||||||||||||||
Restructuring reserves | 8.1 | 18.8 | (6.0 | ) | — | 20.9 | ||||||||||||||||
$ | 94.5 | $ | 62.6 | $ | (38.0 | ) | $ | 1.5 | $ | 120.6 | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2003: | ||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 31.5 | $ | 16.6 | $ | (17.2 | ) | $ | (0.3 | ) | $ | 30.6 | ||||||||||
Reserve for unmerchantable inventories | 44.5 | 29.7 | (21.0 | ) | 2.6 | 55.8 | ||||||||||||||||
Restructuring reserves | 30.3 | — | (22.2 | ) | — | 8.1 | ||||||||||||||||
$ | 106.3 | $ | 46.3 | $ | (60.4 | ) | $ | 2.3 | $ | 94.5 | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2002: | ||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 26.7 | $ | 19.2 | $ | (14.7 | ) | $ | 0.3 | $ | 31.5 | |||||||||||
Reserve for unmerchantable inventories | 35.8 | 17.5 | (16.3 | ) | 7.5 | 44.5 | ||||||||||||||||
Restructuring reserves | 96.2 | — | (65.9 | ) | — | 30.3 | ||||||||||||||||
$ | 158.7 | $ | 36.7 | $ | (96.9 | ) | $ | 7.8 | $ | 106.3 | ||||||||||||
Balance | Balance | |||||||||||||||||||
as of Beginning | Other | as of End | ||||||||||||||||||
of Year | Additions | Retirements | Changes | of Year | ||||||||||||||||
(In millions) | ||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2005: | ||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 26.7 | $ | 12.5 | $ | (15.8 | ) | $ | (0.1 | ) | $ | 23.3 | ||||||||
Reserve for unmerchantable inventories | 86.4 | 33.8 | (23.3 | ) | (3.3 | ) | 93.6 | |||||||||||||
Restructuring reserves | 20.9 | 86.8 | (80.3 | ) | (1.9 | ) | 25.5 | |||||||||||||
Allowance for deferred tax assets | 277.7 | 276.3 | (44.5 | ) | (31.2 | ) | 478.3 | |||||||||||||
$ | 411.7 | $ | 409.4 | $ | (163.9 | ) | $ | (36.5 | ) | $ | 620.7 | |||||||||
FOR THE YEAR ENDED DECEMBER 31, 2004: | ||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 30.6 | $ | 11.7 | $ | (16.0 | ) | $ | 0.4 | $ | 26.7 | |||||||||
Reserve for unmerchantable inventories | 55.8 | 45.5 | (16.0 | ) | 1.1 | 86.4 | ||||||||||||||
Restructuring reserves | 8.1 | 18.8 | (6.0 | ) | — | 20.9 | ||||||||||||||
Allowance for deferred tax assets | 220.8 | 84.4 | (27.5 | ) | — | 277.7 | ||||||||||||||
$ | 315.3 | $ | 160.4 | $ | (65.5 | ) | $ | 1.5 | $ | 411.7 | ||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2003: | ||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 31.5 | $ | 16.6 | $ | (17.2 | ) | $ | (0.3 | ) | $ | 30.6 | ||||||||
Reserve for unmerchantable inventories | 44.5 | 29.7 | (21.0 | ) | 2.6 | 55.8 | ||||||||||||||
Restructuring reserves | 30.3 | — | (22.2 | ) | — | 8.1 | ||||||||||||||
Allowance for deferred tax assets | 190.3 | 76.6 | (46.1 | ) | — | 220.8 | ||||||||||||||
$ | 296.6 | $ | 122.9 | $ | (106.5 | ) | $ | 2.3 | $ | 315.3 | ||||||||||
105
95
ITEM 9 — | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A — | CONTROLS AND PROCEDURES |
106
96
As of December 31, 2004 | ||||||||||||
Number of Securities | ||||||||||||
Available for Future | ||||||||||||
Number of Securities to be | Weighted Average | Issuance Under Equity | ||||||||||
Issued upon Exercise of | Exercise Price of | Compensation Plans | ||||||||||
Outstanding Options, | Outstanding Options, | (Excluding Securities | ||||||||||
Warrants and Rights | Warrants and Rights | Reflected in Column(a)) | ||||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders (1) | 5,334,856 | (2) | $ | 29.43 | (3) | 1,896,625 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 5,334,856 | $ | 29.43 | 1,896,625 | ||||||||
Number of Securities | ||||||||||||
Available for Future | ||||||||||||
Number of Securities to be | Weighted Average | Issuance Under Equity | ||||||||||
Issued Upon Exercise of | Exercise Price of | Compensation Plans | ||||||||||
Outstanding Options, | Outstanding Options, | (Excluding Securities | ||||||||||
Warrants and Rights | Warrants and Rights | Reflected in Column (a)) | ||||||||||
As of December 31, 2005 | (a) | (b) | (c) | |||||||||
Equity compensation plans approved by security holders(1) | 6,556,245 | (2) | $ | 28.73 | (3) | 351,494 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 6,556,245 | $ | 28.73 | 351,494 | ||||||||
107
(1) | Includes the 1994 Stock Option Plan, the 1996 Stock Option Plan and the Long-Term Stock Incentive Plan. | |
(2) | Includes | |
(3) | Reflects outstanding options at a weighted average exercise price of |
97
ITEM 13 — | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS |
ITEM 14 — | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15 — | EXHIBITS AND FINANCIAL STATEMENT SCHEDULE |
108
98
By: | /s/ Robert E. Rossiter |
/s/ Robert E. Rossiter Robert E. Rossiter Chairman of the Board of Directors and Chief Executive Officer and a Director (Principal Executive Officer) | /s/ Larry W. McCurdy Larry W. McCurdy a Director | |
/s/ James H. Vandenberghe James H. Vandenberghe Vice Chairman | /s/ Roy E. Parrott Roy E. Parrott a Director | |
/s/ David C. Wajsgras David C. Wajsgras Executive Vice President and Chief Financial Officer (Principal Financial Officer) | /s/ David P. Spalding David P. Spalding a Director | |
/s/ Matthew J. Simoncini Matthew J. Simoncini Vice President of Global Finance (Principal Accounting Officer) | /s/ James A. Stern James A. Stern a Director | |
/s/ Anne K. Bingaman Anne K. Bingaman a Director | /s/ Henry D.G. Wallace Henry D.G. Wallace a Director | |
/s/ Dr. David E. Fry Dr. David E. Fry a Director | /s/ Richard F. Wallman Richard F. Wallman a Director | |
/s/ Justice Conrad L. Mallett Justice Conrad L. Mallett a Director |
109
99
Exhibit | ||||
Number | Exhibit | |||
3 | .1 | Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 30, 1996). | ||
3 | .2 | Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated August 8, 2002). | ||
3 | .3 | Certificate of Incorporation of Lear Operations Corporation (incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form S-4 filed on June 22, 1999). | ||
3 | .4 | By-laws of Lear Operations Corporation (incorporated by reference to Exhibit 3.4 to the Company’s Registration Statement on Form S-4 filed on June 22, 1999). | ||
3 | .5 | Certificate of Incorporation of Lear Corporation EEDS and Interiors (incorporated by reference to Exhibit 3.7 to the Company’s Registration Statement on Form S-4/ A filed on June 6, 2001). | ||
3 | .6 | By-laws of Lear Corporation EEDS and Interiors (incorporated by reference to Exhibit 3.8 to the Company’s Registration Statement on Form S-4/ A filed on June 6, 2001). | ||
3 | .7 | Certificate of Incorporation of Lear Seating Holdings Corp. #50 (incorporated by reference to Exhibit 3.9 to the Company’s Registration Statement on Form S-4/ A filed on June 6, 2001). | ||
3 | .8 | By-laws of Lear Seating Holdings Corp. #50 (incorporated by reference to Exhibit 3.10 to the Company’s Registration Statement on Form S-4/ A filed on June 6, 2001). | ||
3 | .9 | Certificate of Formation of Lear Technologies, L.L.C. (incorporated by reference to Exhibit 3.11 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
3 | .10 | Limited Liability Company Agreement of Lear Technologies, L.L.C. (incorporated by reference to Exhibit 3.12 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
3 | .11 | Certificate of Limited Partnership of Lear Midwest Automotive, Limited Partnership (incorporated by reference to Exhibit 3.13 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
3 | .12 | Agreement of Limited Partnership of Lear Midwest Automotive, Limited Partnership, including First and Second Amendments thereto (incorporated by reference to Exhibit 3.14 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
3 | .13 | Third Amendment to Agreement of Limited Partnership of Lear Midwest Automotive, Limited Partnership (incorporated by reference to Exhibit 3.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003). | ||
3 | .14 | Deed of Transformation of Lear Automotive (EEDS) Spain S.L. (Unofficial English Translation) (incorporated by reference to Exhibit 3.17 to the Company’s Registration Statement on Form S-3 filed on May 8, 2002). | ||
3 | .15 | By-laws of Lear Automotive (EEDS) Spain S.L. (Unofficial English Translation) (incorporated by reference to Exhibit 3.18 to the Company’s Registration Statement on Form S-3 filed on May 8, 2002). | ||
3 | .16 | Articles of Incorporation of Lear Corporation Mexico, S.A. de C.V. (Unofficial English Translation) (incorporated by reference to Exhibit 3.19 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
3 | .17 | By-laws of Lear Corporation Mexico, S.A. de C.V. (Unofficial English Translation) (incorporated by reference to Exhibit 3.20 to the Company’s Registration Statement on Form S-3 filed on March 28, 2002). | ||
4 | .1 | Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q for the quarter ended April 3, 1999). |
Exhibit | ||||
Number | Exhibit | |||
3 | .1 | Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended March 30, 1996). | ||
3 | .2 | Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Current Report onForm 8-K dated August 8, 2002). | ||
3 | .3 | Certificate of Incorporation of Lear Operations Corporation (incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement onForm S-4 filed on June 22, 1999). | ||
3 | .4 | By-laws of Lear Operations Corporation (incorporated by reference to Exhibit 3.4 to the Company’s Registration Statement onForm S-4 filed on June 22, 1999). | ||
3 | .5 | Certificate of Incorporation of Lear Corporation EEDS and Interiors (incorporated by reference to Exhibit 3.7 to the Company’s Registration Statement onForm S-4/A filed on June 6, 2001). | ||
3 | .6 | By-laws of Lear Corporation EEDS and Interiors (incorporated by reference to Exhibit 3.8 to the Company’s Registration Statement onForm S-4/A filed on June 6, 2001). | ||
3 | .7 | Certificate of Incorporation of Lear Seating Holdings Corp. #50 (incorporated by reference to Exhibit 3.9 to the Company’s Registration Statement onForm S-4/A filed on June 6, 2001). | ||
3 | .8 | By-laws of Lear Seating Holdings Corp. #50 (incorporated by reference to Exhibit 3.10 to the Company’s Registration Statement onForm S-4/A filed on June 6, 2001). | ||
3 | .9 | Deed of Transformation of Lear Automotive (EEDS) Spain S.L. (Unofficial English Translation) (incorporated by reference to Exhibit 3.17 to the Company’s Registration Statement onForm S-3 filed on May 8, 2002). | ||
3 | .10 | By-laws of Lear Automotive (EEDS) Spain S.L. (Unofficial English Translation) (incorporated by reference to Exhibit 3.18 to the Company’s Registration Statement onForm S-3 filed on May 8, 2002). | ||
3 | .11 | Articles of Incorporation of Lear Corporation Mexico, S.A. de C.V. (Unofficial English Translation) (incorporated by reference to Exhibit 3.19 to the Company’s Registration Statement onForm S-3 filed on March 28, 2002). | ||
3 | .12 | By-laws of Lear Corporation Mexico, S.A. de C.V. (Unofficial English Translation) (incorporated by reference to Exhibit 3.20 to the Company’s Registration Statement onForm S-3 filed on March 28, 2002). | ||
**3 | .13 | Certificate of Incorporation of Lear Corporation (Germany) Ltd. | ||
**3 | .14 | Certificate of Amendment of Certificate of Incorporation of Lear Corporation (Germany) Ltd. | ||
**3 | .15 | Amended and Restated By-laws of Lear Corporation (Germany) Ltd. | ||
4 | .1 | Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report onForm 10-Q for the quarter ended April 3, 1999). | ||
4 | .2 | Supplemental Indenture No. 1 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 1, 2000). | ||
4 | .3 | Supplemental Indenture No. 2 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.3 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2001). | ||
4 | .4 | Supplemental Indenture No. 3 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.4 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2001). |
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Exhibit | ||||
Number | Exhibit | |||
4 | .2 | Supplemental Indenture No. 1 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2000). | ||
4 | .3 | Supplemental Indenture No. 2 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001). | ||
4 | .4 | Supplemental Indenture No. 3 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.4 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001). | ||
4 | .5 | Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee, relating to the 81/8% Senior Notes due 2008, including the form of exchange note attached thereto (incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-4 filed on April 23, 2001). | ||
4 | .6 | Supplemental Indenture No. 1 to Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001). | ||
4 | .7 | Supplemental Indenture No. 2 to Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.7 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001). | ||
4 | .8 | Indenture dated as of February 20, 2002, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 4.8 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001). | ||
4 | .9 | Supplemental Indenture No. 1 to Indenture dated as of February 20, 2002, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the Bank of New York as Trustee (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K dated August 26, 2004). | ||
4 | .10 | Indenture dated as of August 3, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and the BNY Midwest Trust Company as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated August 3, 2004). | ||
10 | .1 | Third Amended and Restated Credit and Guarantee Agreement dated as of March 26, 2001, among Lear Corporation, Lear Canada, the Foreign Subsidiary Borrowers (as defined therein), the Lenders Party thereto, Bank of America, N.A., Citibank, N.A. and Deutsche Banc Alex Brown Inc., as Syndication Agent, The Bank of Nova Scotia, as Documentation Agent and Canadian Administrative Agent, The Other Agents Named in Schedule IX thereto and The Chase Manhattan Bank, as General Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-4 filed on April 23, 2001). | ||
10 | .2 | Stock Purchase Agreement dated as of March 16, 1999, by and between Nevada Bond Investment Corp. II and Lear Corporation (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K dated March 16, 1999). | ||
10 | .3 | Stock Purchase Agreement dated as of May 7, 1999, between Lear Corporation and Johnson Electric Holdings Limited (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 7, 1999). | ||
10 | .4 | Purchase and Transfer Agreement dated as of April 5, 2004, among Lear Corporation Holding GmbH, Lear Corporation GmbH & Co. KG and the Sellers named therein (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on From 10-Q for the quarter ended April 3, 2004). |
Exhibit | ||||
Number | Exhibit | |||
4 | .5 | Supplemental Indenture No. 4 to Indenture dated as of May 15, 1999, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York Trust Company, N.A. (as successor to The Bank of New York), as Trustee (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated December 15, 2005). | ||
4 | .6 | Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee, relating to the 81/8% Senior Notes due 2008, including the form of exchange note attached thereto (incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement onForm S-4 filed on April 23, 2001). | ||
4 | .7 | Supplemental Indenture No. 1 to Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.6 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2001). | ||
4 | .8 | Supplemental Indenture No. 2 to Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.7 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2001). | ||
4 | .9 | Supplemental Indenture No. 3 to Indenture dated as of March 20, 2001, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated December 15, 2005). | ||
4 | .10 | Indenture dated as of February 20, 2002, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.8 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2001). | ||
4 | .11 | Supplemental Indenture No. 1 to Indenture dated as of February 20, 2002, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York as Trustee (incorporated by reference to Exhibit 99.1 to the Company’s Current Report onForm 8-K dated August 26, 2004). | ||
4 | .12 | Supplemental Indenture No. 2 to Indenture dated as of February 20, 2002, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York Trust Company, N.A. (as successor to The Bank of New York), as Trustee (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated December 15, 2005). | ||
4 | .13 | Indenture dated as of August 3, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and BNY Midwest Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report onForm 8-K dated August 3, 2004). | ||
4 | .14 | Supplemental Indenture No. 1 to Indenture dated as of August 3, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto from time to time and The Bank of New York Trust Company, N.A. (as successor to BNY Midwest Trust Company, N.A.), as Trustee (incorporated by reference to Exhibit 10.4 to the Company’s Current Report onForm 8-K dated December 15, 2005). | ||
10 | .1 | Credit and Guarantee Agreement, dated as of March 23, 2005, among the Company, Lear Canada, each Foreign Subsidiary Borrower (as defined therein), the Lenders party thereto, Bank of America, N.A., as syndication agent, Citibank, N.A. and Deutsche Bank Securities Inc., as documentation agents, The Bank of Nova Scotia, as documentation agent and Canadian administrative agent, the other Agents named therein and JPMorgan Chase Bank, N.A., as general administrative agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated March 23, 2005). | ||
10 | .2 | Amended and Restated Credit and Guarantee Agreement, dated as of August 11, 2005, among the Company, Lear Canada, each Foreign Subsidiary Borrower (as defined therein), the Lenders party thereto, Bank of America, N.A., as syndication agent, Citibank, N.A. and Deutsche Bank Securities Inc., as documentation agents, The Bank of Nova Scotia, as documentation agent and Canadian administrative agent, the other Agents named therein and JPMorgan Chase Bank, N.A., as general administrative agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated August 11, 2005). |
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101
Exhibit | ||||
Number | Exhibit | |||
10 | .5 | Purchase Agreement dated as of July 29, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto and the Purchasers (as defined therein) (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2004). | ||
10 | .6 | Registration Rights Agreement dated as of August 3, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto and the Initial Purchasers (as defined therein) (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2004). | ||
10 | .7* | Employment Agreement dated July 5, 2000, between the Company and Robert E. Rossiter (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2000). | ||
10 | .8* | Employment Agreement dated July 5, 2000, between the Company and James H. Vandenberghe (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2000). | ||
10 | .9* | Employment Agreement dated July 5, 2000, between the Company and Donald J. Stebbins (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2000). | ||
10 | .10* | Employment Agreement dated July 5, 2000, between the Company and Douglas G. DelGrosso (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2000). | ||
10 | .11* | Employment Agreement dated July 5, 2000, between the Company and David C. Wajsgras (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002). | ||
10 | .12* | Employment Agreement dated July 28, 2003, between the Company and Daniel A. Ninivaggi (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 27, 2003). | ||
10 | .13* | Performance Share Award Agreement dated June 22, 2004, between the Company and Robert E. Rossiter (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .14* | Performance Share Award Agreement dated June 22, 2004, between the Company and James H. Vandenberghe (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .15* | Performance Share Award Agreement dated June 22, 2004, between the Company and Douglas G. DelGrosso (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .16* | Performance Share Award Agreement dated June 22, 2004, between the Company and Donald J. Stebbins (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .17* | Performance Share Award Agreement dated June 22, 2004, between the Company and David C. Wajsgras (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .18* | Performance Share Award Agreement dated June 22, 2004, between the Company and Roger A. Jackson (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .19* | Performance Share Award Agreement dated June 22, 2004, between the Company and Daniel A. Ninivaggi (incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). | ||
10 | .20* | Lear Corporation 1994 Stock Option Plan (incorporated by reference to Exhibit 10.27 to the Company’s Transition Report on Form 10-K filed on March 31, 1994). |
Exhibit | ||||
Number | Exhibit | |||
10 | .3 | Stock Purchase Agreement, dated as of March 16, 1999, by and between Nevada Bond Investment Corp. II and Lear Corporation (incorporated by reference to Exhibit 99.1 to the Company’s Current Report onForm 8-K dated March 16, 1999). | ||
10 | .4 | Stock Purchase Agreement, dated as of May 7, 1999, between Lear Corporation and Johnson Electric Holdings Limited (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated May 7, 1999). | ||
10 | .5 | Purchase and Transfer Agreement, dated as of April 5, 2004, among Lear Corporation Holding GmbH, Lear Corporation GmbH & Co. KG and the Sellers named therein (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on From10-Q for the quarter ended April 3, 2004). | ||
10 | .6 | Purchase Agreement, dated as of July 29, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto and the Purchasers (as defined therein) (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 2, 2004). | ||
10 | .7 | Registration Rights Agreement, dated as of August 3, 2004, by and among Lear Corporation as Issuer, the Guarantors party thereto and the Initial Purchasers (as defined therein) (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 2, 2004). | ||
10 | .8* | Employment Agreement, dated March 15, 2005, between the Company and Robert E. Rossiter (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .9* | Employment Agreement, dated March 15, 2005, between the Company and James H. Vandenberghe (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .10* | Employment Agreement, dated March 15, 2005, between the Company and Douglas G. DelGrosso (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .11* | Employment Agreement, dated March 15, 2005, between the Company and David C. Wajsgras (incorporated by reference to Exhibit 10.5 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .12* | Employment Agreement, dated March 15, 2005, between the Company and Daniel A. Ninivaggi (incorporated by reference to Exhibit 10.6 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .13* | Employment Agreement, dated March 15, 2005, between the Company and Roger A. Jackson (incorporated by reference to Exhibit 10.7 to the Company’s Current Report onForm 8-K dated March 15, 2005). | ||
10 | .14* | Employment Agreement, dated as of March 15, 2005, between the Company and Paul Joseph Zimmer (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 1, 2005). | ||
10 | .15* | Employment Agreement, dated as of March 15, 2005, between the Company and Raymond E. Scott (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 1, 2005). | ||
10 | .16* | Lear Corporation 1994 Stock Option Plan (incorporated by reference to Exhibit 10.27 to the Company’s Transition Report onForm 10-K filed on March 31, 1994). | ||
10 | .17* | Lear Corporation 1994 Stock Option Plan, Second Amendment effective January 1, 1996 (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report onForm 10-K for the year ended December 31, 1998). | ||
10 | .18* | Lear Corporation 1994 Stock Option Plan, Third Amendment effective March 14, 1997 (incorporated by reference to Exhibit 10.29 to the Company’s Annual Report onForm 10-K for the year ended December 31, 1998). | ||
10 | .19* | Lear Corporation 1996 Stock Option Plan, as amended and restated (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended June 28, 1997). |
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102
Exhibit | |||||
Number | Exhibit | ||||
10 | |||||
Form of the Lear Corporation 1996 Stock Option Plan Stock Option Agreement (incorporated by reference to Exhibit 10.30 to the Company’s Annual Report onForm 10-K for the year ended December 31, 1997). | |||||
10 | Lear Corporation Long-Term Stock Incentive Plan, as amended and restated | ||||
**10 | .22* | Second Amendment to the Lear Corporation Long-Term Stock Incentive Plan, dated as of November 10, 2005. | |||
10 | Form of the Long-Term Stock Incentive Plan 2002 Nontransferable Nonqualified Stock Option Terms and Conditions (incorporated by reference to Exhibit 10.12 | ||||
10 | Form of the Long-Term Stock Incentive Plan 2003 Director Nonqualified, Nontransferable Stock Option Terms and Conditions (incorporated by reference to Exhibit 10.14 | ||||
10 | .25* | Performance Share Award Agreement dated June 22, 2004, between the Company and Robert E. Rossiter (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .26* | Performance Share Award Agreement dated June 22, 2004, between the Company and James H. Vandenberghe (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .27* | Performance Share Award Agreement dated June 22, 2004, between the Company and Douglas G. DelGrosso (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .28* | Performance Share Award Agreement dated June 22, 2004, between the Company and David C. Wajsgras (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .29* | Performance Share Award Agreement dated June 22, 2004, between the Company and Roger A. Jackson (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .30* | Performance Share Award Agreement dated June 22, 2004, between the Company and Daniel A. Ninivaggi (incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 3, 2004). | |||
10 | .31* | Form of Performance Share Award Agreement for the three-year period ending December 31, 2007 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated February 10, 2005). | |||
10 | .32* | Form of the Long-Term Stock Incentive Plan 2003 Restricted Stock Unit Terms and Conditions for Management (incorporated by reference to Exhibit 10.15 | |||
10 | Form of the Long-Term Stock Incentive Plan 2003 Deferral and Restricted Stock Unit Agreement — MSPP (U.S.) (incorporated by reference to Exhibit 10.16 | ||||
10 | Form of the Long-Term Stock Incentive Plan 2003 Deferral and Restricted Stock Unit Agreement — MSPP(Non-U.S.) (incorporated by reference to Exhibit 10.17 | ||||
10 | Form of the Long-Term Stock Incentive Plan 2004 Restricted Stock Unit Terms and Conditions for Management (incorporated by reference to Exhibit 10.1 | ||||
2005 Management Stock Purchase Plan (U.S.) Terms and | |||||
Conditions (incorporated by reference to Exhibit 10.32 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2004). | |||||
10 | |||||
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103
Exhibit | ||||
Number | Exhibit | |||
10 | .38* | Long-Term Stock Incentive Plan 2005 Restricted Stock Unit Terms and Conditions (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 1, 2005). | ||
10 | .39* | Long-Term Stock Incentive Plan Supplemental Restricted Stock Unit Terms and Conditions (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 1, 2005). | ||
10 | .40* | Long-Term Stock Incentive Plan Stock Appreciation Rights Terms and Conditions (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q for the quarter ended October 1, 2005). | ||
**10 | .41* | 2006 Management Stock Purchase Plan (U.S.) Terms and Conditions. | ||
**10 | .42* | 2006 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions. | ||
10 | .43* | Lear Corporation Outside Directors Compensation Plan, effective January 1, 2005 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated December 7, 2004). | ||
10 | .44* | Lear Corporation Estate Preservation Plan (incorporated by reference to Exhibit 10.35 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2004). | ||
10 | .45* | Lear Corporation Pension Equalization Program, as amended through August 15, 2003 (incorporated by reference to Exhibit 10.37 to the Company’s Annual Report onForm 10-Kfor the year ended December 31, 2004). | ||
10 | .46* | Lear Corporation Annual Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated February 10, 2005). | ||
10 | .47* | Lear Corporation Executive Supplemental Savings Plan, as amended and restated (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated May 4, 2005). | ||
**10 | .48* | First Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of November 10, 2005. | ||
10 | .49 | Form of Indemnity Agreement between the Company and each of its directors (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report onForm 10-Q for the quarter ended July 2, 2005). | ||
**11 | .1 | Computation of net income per share. | ||
**12 | .1 | Computation of ratios of earnings to fixed charges. | ||
**21 | .1 | List of subsidiaries of the Company. | ||
**23 | .1 | Consent of Ernst & Young LLP. | ||
**31 | .1 | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer. | ||
**31 | .2 | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer. | ||
**32 | .1 | Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
**32 | .2 | Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
* | Compensatory plan or arrangement. |
** | Filed herewith. |
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104