(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 | 48033 | |
(Address of principal executive offices) | (Zip code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $0.01 per share | New York Stock Exchange | |
Preferred Share Purchase Right | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(1) | Certain information is incorporated by reference, as indicated below, to the registrant’s Notice of Annual Meeting of Stockholders and Definitive Proxy Statement on Schedule 14A 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 | |
(3) | Incorporated by reference to the Proxy Statement sections entitled “Directors and Beneficial Ownership — Director Compensation,” “Compensation Discussion and Analysis,” “Executive Compensation,” “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report.” | |
(4) | A portion of the information required is incorporated by reference to the Proxy Statement section entitled “Directors and Beneficial Ownership — Security Ownership of Certain Beneficial Owners and Management.” | |
(5) | Incorporated by reference to the Proxy Statement sections entitled “Certain Relationships and Related-Party Transactions” and “Directors and Beneficial Ownership — Independence of Directors.” | |
(6) | Incorporated by reference to the Proxy Statement section entitled “Fees of Independent Accountants.” |
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ITEM 1 — | BUSINESS |
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• | Leverage Core Product Lines. |
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the lowest total cost. We can offer our customers both complete seat integration capabilities, managing the supply of the entire seat system from development tojust-in-time assembly and delivery, as well as key seat component capabilities, leveraging Lear’s proprietary technologies and low-cost manufacturing footprint. In our electrical and electronic segment, we believe that by leveraging our expertise in electrical and electronic architectures, |
• | Invest in New Technology. |
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materials and superior quality. Our product development efforts are focused on providing the latest advances in technology, which meet or exceed the requirements of automotive manufacturers and their customers, at affordable cost levels. Within our seating segment, we provide industry-leading safety features, such as ProTec |
• | Enhance Strong Customer Relationships. We believe that the long-standing and strong relationships we have built with our customers allow us to act as integral partners in identifying business opportunities and to anticipate the needs of our customers in the early stages of vehicle design. Quality continues to be a differentiating factor in the eyes of the consumer and a competitive cost factor for our customers. We are dedicated to providing superior customer service and to maintaining an excellent reputation for providing world-class quality at competitive prices. | |
• | Maintain Operational Excellence. To withstand fluctuations in industry demand, we continue to be proactive by maintaining an intense focus on the efficiency of our manufacturing operations and identifying opportunities to reduce our overall cost structure. We are organized in two global business units, seating and electrical and electronic, to maximize efficiencies across our global network and to leverage the benefits of our global scale. We manage our cost structure, in part, through ongoing continuous improvement and productivity initiatives throughout the organization, as well as initiatives to promote and enhance the sharing of technology, engineering, purchasing and capital investments across customer |
• | Restructuring Program: In |
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initiated the closure of |
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• | ||
• | Low-Cost Country Footprint: Our low-cost country strategy is designed to increase our global competitiveness from |
• | Expand in Asia and with Asian Automotive Manufacturers Worldwide. We believe that it is important to have a manufacturing footprint that |
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Seating | 76 | % | 65 | % | 65 | % | 79 | % | 76 | % | 65 | % | ||||||||||||
Electrical and electronic | 20 | 17 | 17 | 21 | 20 | 17 | ||||||||||||||||||
Interior | 4 | 18 | 18 | — | 4 | 18 |
• | 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 |
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bolsters and leg supports. We also produce components that comprise the seat assemblies, such as seat structures and mechanisms, cut and sewn seat trim covers, headrests and seat foam. |
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• | Electrical and Electronic. The electrical and electronic segment consists of the manufacture, assembly and supply of electrical and electronic systems and components for the vehicle. With the increase in the number of electrical and electronically-controlled functions and features on the vehicle, there is an increasing focus on improving the functionality of the vehicle’s electrical and electronic architecture. We are able to provide our customers with engineering and design solutions and manufactured |
• | 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 other 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 and Body Control Modules. Smart junction boxes are junction boxes with integrated electronic functionality often contained in other body control modules. Smart junction boxes eliminate interconnections, increase overall system reliability and can |
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multiplexed buss line. Body control modules control various interior comfort and convenience features. These body control modules may consolidate multiple functions into a single module or may focus on a specific function or part of the car interior, such as the integrated seat adjuster module or the integrated door module. The integrated seat adjuster module combines seat adjustment, power lumbar support, memory function and seat |
• | 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 |
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systems allow a single transmitter to perform multiple functions. For example, our Car2Utm remote keyless entry system can control and display the status of the vehicle, such as starting the engine, locking and unlocking the doors, opening the trunk and setting the cabin temperature. In addition, dual range/dual function remote keyless entry systems combine remote keyless operations with vehicle immobilizer capability. Our tire pressure monitoring system, known as the Lear Intellitire® Tire Pressure Monitoring System, alerts drivers when a tire has low pressure. We have received production awards for Intellitire® from Ford for many of their North American vehicles and from Hyundai for several of their models. Automotive manufacturers |
• | Specialty Electronics. Our lighting control module integrates electronic control logic and diagnostics with the headlamp switch. Entertainment products include sound systems, in-vehicle television tuner modules and floor-, seat- or center console-mounted Media Console with aflip-up screen that provides DVD and video game viewing for back-seat passengers. |
• | Seating. Our | |
• | Electrical and Electronic. 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. |
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generally performed in low-cost labor sites in Mexico, Honduras, |
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• BMW | • ChangAn | • Chery | • Chrysler | ||||
• Daimler | • Dongfeng | ||||||
• Fiat | • First Autoworks | ||||||
• Ford | • GAZ | ||||||
• General Motors | • Honda | ||||||
• Hyundai | • Isuzu | ||||||
• Mahindra & Mahindra | • Mazda | ||||||
• Mitsubishi | • Nissan | ||||||
• Porsche | • PSA | ||||||
• Renault | • Subaru | ||||||
• Suzuki | • Tata | ||||||
• Toyota | • Volkswagen |
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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. Magna International Inc., Faurecia, TS Tech Co., Ltd. and Toyota Boshoku also have a presence in this market. Our major independent competitors are Johnson Controls and Faurecia in Europe and Johnson Controls, TS Tech Co., Ltd. and Toyota Boshoku in Asia. | |
• | Electrical and Electronic. We are one of the leading independent suppliers of automotive electrical distribution systems in North America and Europe. Our major competitors include Delphi, Yazaki, Sumitomo and Leoni. The automotive electronic products industry remains highly fragmented. Participants in this segment include Alps, Bosch, Cherry, Continental, Delphi, Denso, Kostal, Methode, Niles, Omron, |
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ITEM 1A — | RISK FACTORS |
• | In the event that we are unable to achieve an acceptable negotiated restructuring of our indebtedness, we may be forced to seek reorganization under the U.S. Bankruptcy Code. |
• | Our independent registered public accounting firm has included an explanatory paragraph with respect to our ability to continue as a going concern in its report on our consolidated financial statements for the year ended December 31, 2008. |
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• | A decline in the production levels of our major customers could reduce our sales and harm our profitability. |
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• | The financial distress of our major customers and within the supply base could significantly affect our operating performance. |
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• | 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; |
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• | export and import restrictions; and | |
• | increases in working capital requirements related to long supply chains. |
• | High raw material costs |
• | 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. |
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• | We have substantial indebtedness, which could restrict our business activities. |
• | make it more difficult for us to satisfy our obligations under our indebtedness; | |
• | limit our ability to borrow money for working capital, capital expenditures, debt service requirements or other corporate purposes; | |
• | require us to dedicate a substantial portion of our cash flow to payments on our indebtedness, which would reduce the amount of cash flow available to fund working capital, capital expenditures, product development and other corporate requirements; | |
• | increase our vulnerability to general adverse economic and industry conditions; | |
• | limit our ability to respond to business opportunities; and | |
• | subject us to financial and other restrictive covenants, the failure of which |
• | Significant changes in discount rates, the actual investment return on pension assets and other factors could affect our earnings, equity and pension contributions. |
• | Impairment charges relating to our goodwill and long-lived assets may have a material adverse effect on our earnings and results of operations. |
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• | Our failure to execute our strategic objectives would negatively impact our business. |
• | A significant product liability lawsuit, warranty claim or product recall involving us or one of our major customers could harm our profitability. |
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• | 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 |
• | If we cannot continue to meet the New York Stock Exchange (“NYSE”) continued listing requirements, the NYSE may suspend or delist our common stock. |
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ITEM 1B — | UNRESOLVED STAFF COMMENTS |
ITEM 2 — | PROPERTIES |
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Argentina | Germany | Japan | Slovakia | United States | (1) Legend | |||||||
Escobar, BA (S) Pacheco, BA (E) Australia Flemington (A/T) Austria Koeflach (S) Belgium Genk (S) Brazil Betim (S) Caçapava (A/T) Camaçari (S) Gravatai (S) São Paulo (A/T) Canada Ajax, ON (S) Kitchener, ON (S) St. Thomas, ON (S) Whitby, ON (S) China Beijing (A/T) Changchun (S) Chongqing (S, E) Liuzhou (S) Nanjing (S) Ningbo (S) Ruian (S) Shanghai (S, E, A/T) Shenyang (S) Wuhan Wuhu (S) Czech Republic Kolin (S) Vyskov (E) France Cergy (S) Feignies (S) Guipry (S) Hordain (E) Lagny-Le-Sec (S) Rueil-Malmaison (A/T) Velizy-Villacoublay (A/T) | Allershausen- Leonhardsbuch (A/T) Bersenbrueck (E) Besigheim Boeblingen (A/T) Bremen (S) Eisenach (S) Garching-Hochbrueck (A/T) Ginsheim-Gustavsburg Kranzberg (A/T) Kronach (E) Munich (A/T) Quakenbrueck (S) Remscheid (E) Rietberg (S) Saarlouis (E) Wackersdorf (S) Wismar (E) Wolfsburg (A/T) Honduras Naco (E) San Pedro Sula (E) Hungary Gödöllö (E) Gyöngyös (E) Györ (S) Mór (S) India Chakan (S) Chennai (S) Halol (S) Nasik (S) New Delhi (A/T) Pune Thane (A/T) Italy Caivano, NA (S) Cassino, FR (S) Grugliasco, TO (S) Melfi, PZ (S) Pozzo d’Adda, MI (S) Termini Imerese, PA (S) | Hiroshima (A/T) Utsunomiya (A/T) Mexico Apodaca, NL (E) Chihuahua, CH (E) Cuautlancingo, PU (S) Hermosillo, SO (S) Juarez, CH (S, Mexico City, DF (S) Monclova, CO (S) Nuevo Casas Grandes, CH (S) Piedras Negras, CO (S) Ramos Arizpe, CO (S) Saltillo, CO (S) San Felipe, GU (S) San Luis Potosi, SL (S) Silao, GO (S) Villa Ahumada, CH (S) Morocco Tangier Netherlands Weesp (A/T) Philippines LapuLapu City (E, A/T) Poland Jaroslaw (S) Mielec (E) Tychy (S) Portugal Palmela (S) Romania Campulung (E) Pitesti Russia Nizhny Novgorod (S) Singapore Wisma Atria (A/T) | Presov (S) Senec (S) | South Africa East London (S) Port Elizabeth (S) Rosslyn (S) South Korea Gyeongju (S) Seoul (A/T) Spain Almussafes Epila (S) Logrono (S) Roquetes (E) Valdemoro (S) Valls Sweden Gothenburg Trollhattan Thailand Bangkok (A/T) Mueang Nakhon Ratchasima (S) Rayong (S) Tunisia Bir El Bey (E) Turkey Bostanci-Istanbul (E) Gemlik (S) United Kingdom Coventry (S, A/T) Sunderland (S) | Arlington, TX (S) Berne, IN Brownstown, MI (S) Columbia City, IN (S) Duncan, SC (S) El Paso, TX (E) Farwell, MI (S) Fenton, MI (S) Hammond, IN (S) Hebron, OH Lordstown, OH (S) Louisville, KY (S) Mason, MI (S) Montgomery, AL (S) Morristown, TN (S) Newark, DE (S) Plymouth, IN (E) Rochester Hills, MI (S) Roscommon, MI (S) Selma, AL (S) Southfield, MI (A/T) Tampa, FL (E) Taylor, MI (E) Traverse City, MI (E) Wentzville, MO (S) Zanesville, OH (E) Venezuela Valencia (S) Vietnam Hai Phong City (S) | S — Seating E — Electrical and electronic A/T — Administrative/ technical |
ITEM 3 — | LEGAL PROCEEDINGS |
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ITEM 4 — | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
Name | Age | Position | ||||
Shari L. Burgess | Vice President and Treasurer | |||||
Wendy L. Foss | Vice President and Corporate Controller | |||||
Terrence B. Larkin | Senior Vice President, General Counsel and Corporate Secretary | |||||
Daniel A. Ninivaggi | Executive Vice President | |||||
Robert E. Rossiter | Chairman, Chief Executive Officer and President | |||||
Louis R. Salvatore | Senior Vice President and President, Global Seating Systems | |||||
Raymond E. Scott | Senior Vice President and President, Global Electrical and Electronic Systems | |||||
Matthew J. Simoncini | Senior Vice President and Chief Financial Officer | |||||
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. | |
Wendy L. Foss | Ms. Foss is our Vice President and Corporate Controller, |
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positions | ||
Terrence B. Larkin | Mr. Larkin is our Senior Vice President, General Counsel and Corporate Secretary, a position he has held since January 2008. Prior to joining Lear, Mr. Larkin was a partner since 1986 of Bodman LLP, a Detroit-based law firm. Mr. Larkin served on the executive committee of Bodman LLP and was the chairman of | |
Daniel A. Ninivaggi | Mr. Ninivaggi is our Executive Vice President, |
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Robert E. Rossiter | Mr. Rossiter is our Chairman, Chief Executive Officer and President, a position he has held since August 2007. Mr. Rossiter has served as our Chairman since January 2003, our Chief Executive Officer since October 2000, our President since August 2007 and from 1984 until December 2002 and 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. | |
Louis R. Salvatore | Mr. Salvatore is our Senior Vice President and President, Global Seating Systems, a position he has held since February 2008. Previously, he served as our Senior Vice President and President — Global Asian Operations/Customers since August 2005, our President — Ford, Electrical/Electronics and Interior Divisions since July 2004, our President — Global Ford Division since July 2000 and our President — DaimlerChrysler Division since December 1998. Prior to joining Lear, Mr. Salvatore worked with Ford Motor Company for fourteen years and held various increasingly senior positions within Ford’s manufacturing, finance, engineering and purchasing activities. | |
Raymond E. Scott | Mr. Scott is our Senior Vice President and President, Global Electrical and Electronic Systems, a position he has held since February 2008. Previously, he served as our Senior Vice President and President, North American Seating Systems Group since August 2006, our Senior Vice President and President, North American Customer Group |
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since June 2005, our President, European Customer Focused Division since June 2004 and our President, General Motors Division since November 2000. | ||
Matthew J. Simoncini | Mr. Simoncini is our Senior Vice President and Chief Financial Officer, a position he has held since October 2007. Previously, he served as our Senior Vice President, Finance and Chief Accounting Officer, since August 2006, our Vice President, Global Finance since February 2006, our Vice President of Operational Finance since June 2004, our Vice President of Finance — Europe since 2001 and prior to 2001, in various senior financial positions for both Lear and | |
ITEM 5 — | MARKET FOR THE COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Price Range of | Price Range of | |||||||||||||||||||||||
Common Stock | Cash Dividend | Common Stock | Cash Dividend | |||||||||||||||||||||
For the Year Ended December 31, 2007: | High | Low | per Share | |||||||||||||||||||||
For the Year Ended December 31, 2008: | High | Low | Per Share | |||||||||||||||||||||
4th Quarter | $ | 36.36 | $ | 27.37 | $ | — | $ | 10.55 | $ | 1.00 | $ | — | ||||||||||||
3rd Quarter | $ | 40.58 | $ | 27.45 | $ | — | $ | 17.45 | $ | 11.58 | $ | — | ||||||||||||
2nd Quarter | $ | 37.76 | $ | 35.61 | $ | — | $ | 31.50 | $ | 15.15 | $ | — | ||||||||||||
1st Quarter | $ | 40.62 | $ | 27.79 | $ | — | $ | 31.40 | $ | 22.82 | $ | — |
Price Range of | ||||||||||||
Common Stock | Cash Dividend | |||||||||||
For the Year Ended December 31, 2006: | High | Low | per Share | |||||||||
4th Quarter | $ | 34.01 | $ | 20.70 | $ | — | ||||||
3rd Quarter | $ | 24.41 | $ | 18.30 | $ | — | ||||||
2nd Quarter | $ | 28.00 | $ | 16.24 | $ | — | ||||||
1st Quarter | $ | 29.73 | $ | 16.01 | $ | 0.25 |
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Price Range of | ||||||||||||
Common Stock | Cash Dividend | |||||||||||
For the Year Ended December 31, 2007: | High | Low | Per Share | |||||||||
4th Quarter | $ | 36.36 | $ | 27.37 | $ | — | ||||||
3rd Quarter | $ | 40.58 | $ | 27.45 | $ | — | ||||||
2nd Quarter | $ | 37.76 | $ | 35.61 | $ | — | ||||||
1st Quarter | $ | 40.62 | $ | 27.79 | $ | — |
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Total Number | ||||||||||||||||
of Shares | Maximum | |||||||||||||||
Purchased | Number of Shares | |||||||||||||||
Average | as Part of Publicly | that May yet | ||||||||||||||
Total Number of | Price Paid | Announced | be Purchased | |||||||||||||
Period | Shares Purchased | per Share | Program | Under the Program | ||||||||||||
September 30, 2007 — October 27, 2007 | — | — | — | — | ||||||||||||
October 28, 2007 — November 24, 2007 | — | — | — | 1,500,000 | ||||||||||||
November 25, 2007 — December 31, 2007 | 154,258 | $ | 28.18 | * | 154,258 | 1,345,742 | ||||||||||
Total | 154,258 | $ | 28.18 | * | 154,258 | 1,345,742 |
Total Number | Maximum | |||||||||||||||
of | Number of Shares | |||||||||||||||
Average | as Part of Publicly | that May yet | ||||||||||||||
Total Number of | Price Paid | Announced | be Purchased | |||||||||||||
Period | Shares Purchased | per | Program | Under the Program | ||||||||||||
September 28, 2008 — October 25, 2008 | — | — | — | 2,586,542 | ||||||||||||
October 26, 2008 — November 22, 2008 | — | — | — | 2,586,542 | ||||||||||||
November 23, 2008 — December 31, 2008 | — | — | — | 2,586,542 | ||||||||||||
Total | — | — | — | 2,586,542 | ||||||||||||
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12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | |||||||||||||||||||||||||||||||||||||||||||||||||
LEAR CORPORATION | $ | 100.00 | $ | 184.89 | $ | 186.33 | $ | 89.97 | $ | 94.15 | $ | 88.19 | $ | 100.00 | $ | 100.78 | $ | 48.67 | $ | 50.92 | $ | 47.70 | $ | 2.43 | ||||||||||||||||||||||||||||||||||||
S&P 500 | $ | 100.00 | $ | 128.36 | $ | 142.14 | $ | 149.01 | $ | 172.27 | $ | 181.72 | $ | 100.00 | $ | 110.74 | $ | 116.09 | $ | 134.21 | $ | 141.57 | $ | 89.82 | ||||||||||||||||||||||||||||||||||||
PEER GROUP(1) | $ | 100.00 | $ | 148.14 | $ | 164.99 | $ | 164.90 | $ | 185.81 | $ | 226.19 | $ | 100.00 | $ | 111.37 | $ | 111.29 | $ | 125.43 | $ | 152.69 | $ | 74.33 | ||||||||||||||||||||||||||||||||||||
(1) | We do not believe that there is a single published industry or line of business index that is appropriate for comparing stockholder returns. The current Peer Group, as referenced in the graph above, that we have selected is comprised of representative independent |
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ITEM 6 — | SELECTED FINANCIAL DATA |
For the Year Ended December 31, | 2007(1) | 2006(2) | 2005(3) | 2004 | 2003 | 2008(1) | 2007(2) | 2006(3) | 2005(4) | 2004 | ||||||||||||||||||||||||||||||
(In millions (4)) | (In millions (5)) | |||||||||||||||||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 15,995.0 | $ | 17,838.9 | $ | 17,089.2 | $ | 16,960.0 | $ | 15,746.7 | $ | 13,570.5 | $ | 15,995.0 | $ | 17,838.9 | $ | 17,089.2 | $ | 16,960.0 | ||||||||||||||||||||
Gross profit | 1,148.5 | 927.7 | 736.0 | 1,402.1 | 1,346.4 | 744.0 | 1,148.5 | 927.7 | 736.0 | 1,402.1 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 574.7 | 646.7 | 630.6 | 633.7 | 573.6 | 513.2 | 574.7 | 646.7 | 630.6 | 633.7 | ||||||||||||||||||||||||||||||
Goodwill impairment charges | — | 2.9 | 1,012.8 | — | — | 530.0 | — | 2.9 | 1,012.8 | — | ||||||||||||||||||||||||||||||
Divestiture of Interior business | 10.7 | 636.0 | — | — | — | — | 10.7 | 636.0 | — | — | ||||||||||||||||||||||||||||||
Interest expense | 199.2 | 209.8 | 183.2 | 165.5 | 186.6 | 190.3 | 199.2 | 209.8 | 183.2 | 165.5 | ||||||||||||||||||||||||||||||
Other expense, net | 40.7 | 85.7 | 38.0 | 38.6 | 51.8 | 51.9 | 40.7 | 85.7 | 38.0 | 38.6 | ||||||||||||||||||||||||||||||
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 | 323.2 | (653.4 | ) | (1,128.6 | ) | 564.3 | 534.4 | (541.4 | ) | 323.2 | (653.4 | ) | (1,128.6 | ) | 564.3 | |||||||||||||||||||||||||
Provision for income taxes | 89.9 | 54.9 | 194.3 | 128.0 | 153.7 | 85.8 | 89.9 | 54.9 | 194.3 | 128.0 | ||||||||||||||||||||||||||||||
Minority interests in consolidated subsidiaries | 25.6 | 18.3 | 7.2 | 16.7 | 8.8 | 25.5 | 25.6 | 18.3 | 7.2 | 16.7 | ||||||||||||||||||||||||||||||
Equity in net (income) loss of affiliates | (33.8 | ) | (16.2 | ) | 51.4 | (2.6 | ) | (8.6 | ) | 37.2 | (33.8 | ) | (16.2 | ) | 51.4 | (2.6 | ) | |||||||||||||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | 241.5 | (710.4 | ) | (1,381.5 | ) | 422.2 | 380.5 | (689.9 | ) | 241.5 | (710.4 | ) | (1,381.5 | ) | 422.2 | |||||||||||||||||||||||||
Cumulative effect of a change in accounting principle | — | 2.9 | — | — | — | — | — | 2.9 | — | — | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | $ | 380.5 | $ | (689.9 | ) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | |||||||||||||||
Basic net income (loss) per share | $ | 3.14 | $ | (10.31 | ) | $ | (20.57 | ) | $ | 6.18 | $ | 5.71 | $ | (8.93 | ) | $ | 3.14 | $ | (10.31 | ) | $ | (20.57 | ) | $ | 6.18 | |||||||||||||||
Diluted net income (loss) per share | $ | 3.09 | $ | (10.31 | ) | $ | (20.57 | ) | $ | 5.77 | $ | 5.31 | $ | (8.93 | ) | $ | 3.09 | $ | (10.31 | ) | $ | (20.57 | ) | $ | 5.77 | |||||||||||||||
Weighted average shares outstanding — basic | 76,826,765 | 68,607,262 | 67,166,668 | 68,278,858 | 66,689,757 | 77,242,360 | 76,826,765 | 68,607,262 | 67,166,668 | 68,278,858 | ||||||||||||||||||||||||||||||
Weighted average shares outstanding — diluted | 78,214,248 | 68,607,262 | 67,166,668 | 74,727,263 | 73,346,568 | 77,242,360 | 78,214,248 | 68,607,262 | 67,166,668 | 74,727,263 | ||||||||||||||||||||||||||||||
Dividends per share | $ | — | $ | 0.25 | $ | 1.00 | $ | 0.80 | $ | 0.20 | $ | — | $ | — | $ | 0.25 | $ | 1.00 | $ | 0.80 | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||||
Current assets | $ | 3,718.0 | $ | 3,890.3 | $ | 3,846.4 | $ | 4,372.0 | $ | 3,375.4 | $ | 3,674.2 | $ | 3,718.0 | $ | 3,890.3 | $ | 3,846.4 | $ | 4,372.0 | ||||||||||||||||||||
Total assets | 7,800.4 | 7,850.5 | 8,288.4 | 9,944.4 | 8,571.0 | 6,872.9 | 7,800.4 | 7,850.5 | 8,288.4 | 9,944.4 | ||||||||||||||||||||||||||||||
Current liabilities | 3,603.9 | 3,887.3 | 4,106.7 | 4,647.9 | 3,582.1 | 4,609.8 | 3,603.9 | 3,887.3 | 4,106.7 | 4,647.9 | ||||||||||||||||||||||||||||||
Long-term debt | 2,344.6 | 2,434.5 | 2,243.1 | 1,866.9 | 2,057.2 | 1,303.0 | 2,344.6 | 2,434.5 | 2,243.1 | 1,866.9 | ||||||||||||||||||||||||||||||
Stockholders’ equity | 1,090.7 | 602.0 | 1,111.0 | 2,730.1 | 2,257.5 | 198.9 | 1,090.7 | 602.0 | 1,111.0 | 2,730.1 | ||||||||||||||||||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 466.9 | $ | 285.3 | $ | 560.8 | $ | 675.9 | $ | 586.3 | $ | 144.2 | $ | 466.9 | $ | 285.3 | $ | 560.8 | $ | 675.9 | ||||||||||||||||||||
Cash flows from investing activities | (340.0 | ) | (312.2 | ) | (541.6 | ) | (472.5 | ) | (346.8 | ) | (144.4 | ) | (340.0 | ) | (312.2 | ) | (541.6 | ) | (472.5 | ) | ||||||||||||||||||||
Cash flows from financing activities | (49.8 | ) | 277.4 | (347.0 | ) | 166.1 | (158.6 | ) | 1,006.7 | (49.8 | ) | 277.4 | (347.0 | ) | 166.1 | |||||||||||||||||||||||||
Capital expenditures | 202.2 | 347.6 | 568.4 | 429.0 | 375.6 | 167.7 | 202.2 | 347.6 | 568.4 | 429.0 | ||||||||||||||||||||||||||||||
Other Data (unaudited): | ||||||||||||||||||||||||||||||||||||||||
Ratio of earnings to fixed charges | 2.4 | x | — | — | 3.7 | x | 3.4 | x | — | 2.4 | x | — | — | 3.7 | x | |||||||||||||||||||||||||
Employees as of year end | 91,455 | 104,276 | 115,113 | 110,083 | 111,022 | 80,112 | 91,455 | 104,276 | 115,113 | 110,083 | ||||||||||||||||||||||||||||||
North American content per vehicle(9) | $ | 484 | $ | 645 | $ | 586 | $ | 588 | $ | 593 | ||||||||||||||||||||||||||||||
North American vehicle production(10) | 15.0 | 15.2 | 15.8 | 15.7 | 15.9 | |||||||||||||||||||||||||||||||||||
European content per vehicle(11) | $ | 344 | $ | 338 | $ | 350 | $ | 355 | $ | 312 | ||||||||||||||||||||||||||||||
European vehicle production(12) | 20.0 | 19.0 | 18.7 | 18.7 | 18.1 | |||||||||||||||||||||||||||||||||||
North American content per vehicle(10) | $ | 391 | $ | 483 | $ | 645 | $ | 586 | $ | 588 | ||||||||||||||||||||||||||||||
North American vehicle production(11) | 12.6 | 15.0 | 15.2 | 15.8 | 15.7 | |||||||||||||||||||||||||||||||||||
European content per vehicle(12) | $ | 348 | $ | 342 | $ | 338 | $ | 350 | $ | 355 | ||||||||||||||||||||||||||||||
European vehicle production(13) | 18.9 | 20.2 | 19.0 | 18.7 | 18.7 |
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(1) | Results include $530.0 million of goodwill impairment charges, $193.9 million of restructuring and related manufacturing inefficiency charges (including $17.5 million of fixed asset impairment charges), $7.5 million of gains related to the extinguishment of debt, $22.2 million of gains related to the sales of our interests in two affiliates and $8.5 million of net tax benefits related to a reduction in recorded tax reserves, the reversal of a valuation allowance in a European subsidiary and the establishment of a valuation allowance in another European subsidiary. | |
(2) | Results include $20.7 million of charges related to the divestiture of our interior business, $181.8 million of restructuring and related manufacturing inefficiency charges (including $16.8 million of fixed asset impairment charges), $36.4 million of a curtailment gain related to the freeze of the U.S. salaried pension plan, $34.9 million of merger transaction costs, $3.9 million of losses related to the acquisition of the minority interest in an affiliate and $24.8 million of net tax benefits related to changes in valuation allowances in several foreign jurisdictions, tax rates and various other tax items. | |
Results include $636.0 million of charges related to the divestiture of our interior business, $2.9 million of goodwill impairment charges, $10.0 million of fixed asset impairment charges, $99.7 million of restructuring and related manufacturing inefficiency charges (including $5.8 million of fixed asset impairment charges), $47.9 million of charges related to the extinguishment of debt, $26.9 million of gains related to the sales of our interests in two affiliates and $19.5 million of net tax benefits related to the expiration of the statute of limitations in a foreign taxing jurisdiction, a tax audit resolution, a favorable tax ruling and several other tax items. | ||
Results include $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 million of litigation-related charges, $46.7 million of charges related to the divestiture and/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 | ||
Except per share data, weighted average shares outstanding, ratio of earnings to fixed charges, employees as of year end and content per vehicle information. | ||
Includes non-income related taxes, foreign exchange gains and losses, discounts and expenses associated with our asset-backed securitization and factoring facilities, gains and losses related to derivative instruments and hedging activities, gains and losses on the extinguishment of debt, gains and losses on the sales of fixed assets and other miscellaneous income and expense. | ||
The cumulative effect of a change in accounting principle in 2006 resulted from the adoption of Statement of Financial Accounting Standards No. 123(R), “Share Based Payment.” | ||
For 2008, includes obligations outstanding under our primary credit facility of $2,177.0 million. As of December 31, 2008, we were not in compliance with the leverage ratio covenant contained in our primary credit facility. On | ||
“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 (income) loss of affiliates, fixed charges and cumulative effect of a change in accounting principle. Earnings in 2008, 2006 and 2005 were insufficient to cover fixed charges by $537.3 million, $651.8 million and $1,123.3 million, respectively. Accordingly, such ratio is not presented for these years. |
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“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 | ||
“North American vehicle production” includes car and light truck production in the United States, Canada and Mexico as provided by Ward’s Automotive. Production data for | ||
“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 2007 has been updated to reflect actual production levels. | ||
“European vehicle production” includes car and light truck production in Austria, Belgium, Bosnia, Czech Republic, Finland, France, Germany, Hungary, Italy, Netherlands, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Turkey, Ukraine and the United Kingdom as provided by CSM Worldwide. Production data for 2007 has been updated to reflect actual production levels. |
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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, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Goodwill impairment charges | $ | 530 | $ | — | $ | 3 | ||||||||||||||||||
Costs related to divestiture of interior business | $ | 21 | $ | 636 | $ | — | — | 21 | 636 | |||||||||||||||
Goodwill impairment charges related to interior business | — | 3 | 1,013 | |||||||||||||||||||||
Fixed asset impairment charges related to interior business | — | 10 | 82 | — | — | 10 | ||||||||||||||||||
Costs of restructuring actions, including manufacturing inefficiencies of $13 million in 2007, $7 million in 2006 and $15 million in 2005 | 182 | 100 | 104 | |||||||||||||||||||||
Impairment of investment in affiliate | 34 | — | — | |||||||||||||||||||||
Costs of restructuring actions, including manufacturing inefficiencies of $17 million in 2008, $13 million in 2007 and $7 million in 2006 | 194 | 182 | 100 | |||||||||||||||||||||
U.S. salaried pension plan curtailment gain | (36 | ) | — | — | — | (36 | ) | — | ||||||||||||||||
Costs related to merger transaction | 35 | — | — | — | 35 | — | ||||||||||||||||||
Loss on the extinguishment of debt | — | 48 | — | |||||||||||||||||||||
(Gains) losses on the extinguishment of debt | (8 | ) | — | 48 | ||||||||||||||||||||
(Gains) losses related to affiliate transactions | 4 | (27 | ) | 47 | (22 | ) | 4 | (27 | ) | |||||||||||||||
Tax benefits | (25 | ) | (20 | ) | (18 | ) | (9 | ) | (25 | ) | (20 | ) | ||||||||||||
Tax charge related to U.S. deferred tax asset valuation allowance | — | — | 300 |
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||||||||||
Seating | $ | 12,206.1 | 76.3 | % | $ | 11,624.8 | 65.2 | % | $ | 11,035.0 | 64.6 | % | $ | 10,726.9 | 79.0 | % | $ | 12,206.1 | 76.3 | % | $ | 11,624.8 | 65.2 | % | ||||||||||||||||||||||||
Electrical and electronic | 3,100.0 | 19.4 | 2,996.9 | 16.8 | 2,956.6 | 17.3 | 2,843.6 | 21.0 | 3,100.0 | 19.4 | 2,996.9 | 16.8 | ||||||||||||||||||||||||||||||||||||
Interior | 688.9 | 4.3 | 3,217.2 | 18.0 | 3,097.6 | 18.1 | — | — | 688.9 | 4.3 | 3,217.2 | 18.0 | ||||||||||||||||||||||||||||||||||||
Net sales | 15,995.0 | 100.0 | 17,838.9 | 100.0 | 17,089.2 | 100.0 | 13,570.5 | 100.0 | 15,995.0 | 100.0 | 17,838.9 | 100.0 | ||||||||||||||||||||||||||||||||||||
Gross profit | 1,148.5 | 7.2 | 927.7 | 5.2 | 736.0 | 4.3 | 744.0 | 5.5 | 1,148.5 | 7.2 | 927.7 | 5.2 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 574.7 | 3.6 | 646.7 | 3.6 | 630.6 | 3.7 | 513.2 | 3.8 | 574.7 | 3.6 | 646.7 | 3.6 | ||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | — | — | 2.9 | — | 1,012.8 | 5.9 | 530.0 | 3.9 | — | — | 2.9 | — | ||||||||||||||||||||||||||||||||||||
Divestiture of Interior business | 10.7 | 0.1 | 636.0 | 3.5 | — | — | — | — | 10.7 | 0.1 | 636.0 | 3.6 | ||||||||||||||||||||||||||||||||||||
Interest expense | 199.2 | 1.2 | 209.8 | 1.2 | 183.2 | 1.1 | 190.3 | 1.4 | 199.2 | 1.2 | 209.8 | 1.2 | ||||||||||||||||||||||||||||||||||||
Other expense, net | 40.7 | 0.3 | 85.7 | 0.5 | 38.0 | 0.2 | 51.9 | 0.4 | 40.7 | 0.3 | 85.7 | 0.5 | ||||||||||||||||||||||||||||||||||||
Provision for income taxes | 89.9 | 0.6 | 54.9 | 0.3 | 194.3 | 1.2 | 85.8 | 0.6 | 89.9 | 0.6 | 54.9 | 0.3 | ||||||||||||||||||||||||||||||||||||
Minority interests in consolidated subsidiaries | 25.5 | 0.2 | 25.6 | 0.1 | 18.3 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
Equity in net (income) loss of affiliates | (33.8 | ) | (0.2 | ) | (16.2 | ) | — | 51.4 | 0.3 | 37.2 | 0.3 | (33.8 | ) | (0.2 | ) | (16.2 | ) | (0.1 | ) | |||||||||||||||||||||||||||||
Minority interests in consolidated subsidiaries | 25.6 | 0.1 | 18.3 | 0.1 | 7.2 | — | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 241.5 | 1.5 | (707.5 | ) | (4.0 | ) | (1,381.5 | ) | (8.1 | ) | (689.9 | ) | (5.1 | ) | 241.5 | 1.5 | (707.5 | ) | (4.0 | ) |
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For the Year Ended December 31, | 2008 | 2007 | ||||||
Net sales | $ | 10,726.9 | $ | 12,206.1 | ||||
Segment earnings(1) | 386.7 | 758.7 | ||||||
Margin | 3.6 | % | 6.2 | % |
(1) | See definition above. |
For the Year Ended December 31, | 2008 | 2007 | ||||||
Net sales | $ | 2,843.6 | $ | 3,100.0 | ||||
Segment earnings(1) | 44.7 | 40.8 | ||||||
Margin | 1.6 | % | 1.3 | % |
(1) | See definition above. |
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For the Year Ended December 31, | 2008 | 2007 | ||||||
Net sales | $ | — | $ | 688.9 | ||||
Segment earnings(1) | — | 8.2 | ||||||
Margin | N/A | 1.2 | % |
(1) | See definition above. |
For the Year Ended December 31, | 2008 | 2007 | ||||||
Net sales | $ | — | $ | — | ||||
Segment earnings(1) | (200.6 | ) | (233.9 | ) | ||||
Margin | N/A | N/A |
(1) | See definition above. |
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For the Year Ended December 31, | 2007 | 2006 | ||||||
Net sales | $ | 12,206.1 | $ | 11,624.8 | ||||
Segment earnings(1) | 758.7 | 604.0 | ||||||
Margin | 6.2 | % | 5.2 | % |
(1) | See definition above. |
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For the Year Ended December 31, | 2007 | 2006 | ||||||
Net sales | $ | 3,100.0 | $ | 2,996.9 | ||||
Segment earnings(1) | 40.8 | 102.5 | ||||||
Margin | 1.3 | % | 3.4 | % |
(1) | See definition above. |
For the Year Ended December 31, | 2007 | 2006 | ||||||
Net sales | $ | 688.9 | $ | 3,217.2 | ||||
Segment earnings(1) | 8.2 | (183.8 | ) | |||||
Margin | 1.2 | % | (5.7 | )% |
(1) | See definition above. |
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For the Year Ended December 31, | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | — | ||||||||
Segment earnings(1) | (233.9 | ) | (241.7 | ) | (233.9 | ) | (241.7 | ) | ||||||||
Margin | N/A | N/A | N/A | N/A |
(1) | See definition above. |
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For the Year Ended December 31, | 2006 | 2005 | ||||||
Net sales | $ | 11,624.8 | $ | 11,035.0 | ||||
Segment earnings(1) | 604.0 | 323.3 | ||||||
Margin | 5.2 | % | 2.9 | % |
For the Year Ended December 31, | 2006 | 2005 | ||||||
Net sales | $ | 2,996.9 | $ | 2,956.6 | ||||
Segment earnings(1) | 102.5 | 180.0 | ||||||
Margin | 3.4 | % | 6.1 | % |
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For the Year Ended December 31, | 2006 | 2005 | ||||||
Net sales | $ | 3,217.2 | $ | 3,097.6 | ||||
Segment earnings(1) | (183.8 | ) | (191.1 | ) | ||||
Margin | (5.7 | )% | (6.2 | )% |
For the Year Ended December 31, | 2006 | 2005 | ||||||
Net sales | $ | — | $ | — | ||||
Segment earnings(1) | (241.7 | ) | (206.8 | ) | ||||
Margin | N/A | N/A |
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December 31, 2007 | ||||
Consolidated indebtedness | $ | 1,853.3 | ||
Cash and cash equivalents | 601.3 | |||
Reported debt | $ | 2,454.6 | ||
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Year Ended | ||||
December 31, 2007 | ||||
Consolidated operating profit | $ | 990.6 | ||
Depreciation and amortization | (296.9 | ) | ||
Consolidated interest expense | (181.2 | ) | ||
Costs related to divestiture of interior business | (20.7 | ) | ||
Other expense, net (excluding certain amounts related to asset-backed securitization facility) | (41.5 | ) | ||
Restructuring charges (subject to $285 million limitation) | (73.3 | ) | ||
Other excluded items | 1.4 | |||
Other non-cash items | (55.2 | ) | ||
Income 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 | $ | 323.2 | ||
Consolidated interest expense | $ | 181.2 | ||
Certain amounts related to asset-backed securitization facility | 0.8 | |||
Amortization of deferred financing fees | 8.8 | |||
Bank facility and other fees | 8.4 | |||
Reported interest expense | $ | 199.2 | ||
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2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
Long-term debt maturities | $ | 96.1 | $ | 53.2 | $ | 10.4 | $ | 8.1 | $ | 968.2 | $ | 1,304.7 | $ | 2,440.7 | $ | 4.3 | $ | 7.5 | $ | 1.8 | $ | 1.3 | $ | 301.7 | $ | 990.7 | $ | 1,307.3 | ||||||||||||||||||||||||||||
Interest payments on our outstanding debt | 166.2 | 160.9 | 158.9 | 158.5 | 120.1 | 281.5 | 1,046.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Primary credit facility | 2,177.0 | — | — | — | — | — | 2,177.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest payments on our senior notes | 101.0 | 101.0 | 101.0 | 101.0 | 101.0 | 180.5 | 685.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Lease commitments | 86.0 | 70.7 | 53.1 | 40.3 | 32.0 | 75.9 | 358.0 | 77.3 | 61.1 | 46.1 | 33.5 | 29.1 | 58.2 | 305.3 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 348.3 | $ | 284.8 | $ | 222.4 | $ | 206.9 | $ | 1,120.3 | $ | 1,662.1 | $ | 3,844.8 | $ | 2,359.6 | $ | 169.6 | $ | 148.9 | $ | 135.8 | $ | 431.8 | $ | 1,229.4 | $ | 4,475.1 | ||||||||||||||||||||||||||||
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Standard & Poor’s | Moody’s | |||||||
Ratings Services | Investors Service | |||||||
Credit rating of senior secured debt | ||||||||
Corporate rating | ||||||||
Credit rating of senior unsecured debt | ||||||||
Ratings outlook | Negative |
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• | general economic conditions in the markets in which we operate, including changes in interest rates or currency exchange rates; | |
• | the financial condition of our customers or suppliers; | |
• | changes in actual industry vehicle production levels from our current | |
• | fluctuations in the production of vehicles for which we are a supplier; | |
• | the loss of business with respect to, or the lack of commercial success of, a vehicle model for which we are a significant | |
• | disruptions in the relationships with our suppliers; | |
• | 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 | |
• | the impact and timing of program launch costs; | |
• | the costs, timing and success of restructuring actions; | |
• | increases in our warranty or product liability costs; | |
• | risks associated with conducting business in foreign countries; | |
• | competitive conditions impacting our key customers and suppliers; | |
• | the cost and availability of raw materials and energy; | |
• | our ability to mitigate | |
• | the outcome of legal or regulatory proceedings to which we are or may become a party; | |
• | unanticipated changes in cash flow, including our ability to align our vendor payment terms with those of our customers; | |
• | our ability to access capital markets on commercially reasonable terms; | |
• | further impairment charges initiated by adverse industry or market developments; | |
• | our ability to restructure our capital structure; | |
• | the possibility that we may be forced to seek protection under the U.S. Bankruptcy Code; and | |
• | other risks, described in Part I — Item 1A, “Risk Factors,” and from time to time in our other SEC filings. |
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ITEM 8 — | CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
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December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
(In millions, except share data) | (In millions, except share data) | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 601.3 | $ | 502.7 | $ | 1,592.1 | $ | 601.3 | ||||||||
Accounts receivable | 2,147.6 | 2,006.9 | 1,210.7 | 2,147.6 | ||||||||||||
Inventories | 605.5 | 581.5 | 532.2 | 605.5 | ||||||||||||
Current assets of business held for sale | — | 427.8 | ||||||||||||||
Other | 363.6 | 371.4 | 339.2 | 363.6 | ||||||||||||
Total current assets | 3,718.0 | 3,890.3 | 3,674.2 | 3,718.0 | ||||||||||||
Long-Term Assets: | ||||||||||||||||
Property, plant and equipment, net | 1,392.7 | 1,471.7 | 1,213.5 | 1,392.7 | ||||||||||||
Goodwill, net | 2,054.0 | 1,996.7 | 1,480.6 | 2,054.0 | ||||||||||||
Other | 635.7 | 491.8 | 504.6 | 635.7 | ||||||||||||
Total long-term assets | 4,082.4 | 3,960.2 | 3,198.7 | 4,082.4 | ||||||||||||
$ | 7,800.4 | $ | 7,850.5 | $ | 6,872.9 | $ | 7,800.4 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current Liabilities: | ||||||||||||||||
Short-term borrowings | $ | 13.9 | $ | 39.3 | $ | 42.5 | $ | 13.9 | ||||||||
Primary credit facility | 2,177.0 | — | ||||||||||||||
Accounts payable and drafts | 2,263.8 | 2,317.4 | 1,453.9 | 2,263.8 | ||||||||||||
Accrued liabilities | 1,230.1 | 1,099.3 | 932.1 | 1,230.1 | ||||||||||||
Current liabilities of business held for sale | — | 405.7 | ||||||||||||||
Current portion of long-term debt | 96.1 | 25.6 | 4.3 | 96.1 | ||||||||||||
Total current liabilities | 3,603.9 | 3,887.3 | 4,609.8 | 3,603.9 | ||||||||||||
Long-Term Liabilities: | ||||||||||||||||
Long-term debt | 2,344.6 | 2,434.5 | 1,303.0 | 2,344.6 | ||||||||||||
Long-term liabilities of business held for sale | — | 48.5 | ||||||||||||||
Other | 761.2 | 878.2 | 761.2 | 761.2 | ||||||||||||
Total long-term liabilities | 3,105.8 | 3,361.2 | 2,064.2 | 3,105.8 | ||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 82,547,651 shares and 81,984,306 shares issued as of December 31, 2007 and 2006, respectively | 0.8 | 0.7 | ||||||||||||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 82,549,501 shares and 82,547,651 shares issued as of December 31, 2008 and 2007, respectively | 0.8 | 0.8 | ||||||||||||||
Additional paid-in capital | 1,373.3 | 1,338.1 | 1,371.7 | 1,373.3 | ||||||||||||
Common stock held in treasury, 5,357,686 shares and 5,732,316 shares as of December 31, 2007 and 2006, respectively, at cost | (194.5 | ) | (210.2 | ) | ||||||||||||
Common stock held in treasury, 5,145,642 shares and 5,357,686 shares as of December 31, 2008 and 2007, respectively, at cost | (176.1 | ) | (194.5 | ) | ||||||||||||
Retained deficit | (116.5 | ) | (362.5 | ) | (818.2 | ) | (116.5 | ) | ||||||||
Accumulated other comprehensive income (loss) | 27.6 | (164.1 | ) | (179.3 | ) | 27.6 | ||||||||||
Total stockholders’ equity | 1,090.7 | 602.0 | 198.9 | 1,090.7 | ||||||||||||
$ | 7,800.4 | $ | 7,850.5 | $ | 6,872.9 | $ | 7,800.4 | |||||||||
63
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions, except per share data) | ||||||||||||
Net sales | $ | 13,570.5 | $ | 15,995.0 | $ | 17,838.9 | ||||||
Cost of sales | 12,826.5 | 14,846.5 | 16,911.2 | |||||||||
Selling, general and administrative expenses | 513.2 | 574.7 | 646.7 | |||||||||
Goodwill impairment charges | 530.0 | — | 2.9 | |||||||||
Divestiture of Interior business | — | 10.7 | 636.0 | |||||||||
Interest expense | 190.3 | 199.2 | 209.8 | |||||||||
Other expense, net | 51.9 | 40.7 | 85.7 | |||||||||
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 | (541.4 | ) | 323.2 | (653.4 | ) | |||||||
Provision for income taxes | 85.8 | 89.9 | 54.9 | |||||||||
Minority interests in consolidated subsidiaries | 25.5 | 25.6 | 18.3 | |||||||||
Equity in net (income) loss of affiliates | 37.2 | (33.8 | ) | (16.2 | ) | |||||||
Income (loss) before cumulative effect of a change in accounting principle | (689.9 | ) | 241.5 | (710.4 | ) | |||||||
Cumulative effect of a change in accounting principle | — | — | 2.9 | |||||||||
Net income (loss) | $ | (689.9 | ) | $ | 241.5 | $ | (707.5 | ) | ||||
Basic net income (loss) per share: | ||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | (8.93 | ) | $ | 3.14 | $ | (10.35 | ) | ||||
Cumulative effect of change in accounting principle | — | — | 0.04 | |||||||||
Basic net income (loss) per share | $ | (8.93 | ) | $ | 3.14 | $ | (10.31 | ) | ||||
Diluted net income (loss) per share: | ||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | (8.93 | ) | $ | 3.09 | $ | (10.35 | ) | ||||
Cumulative effect of change in accounting principle | — | — | 0.04 | |||||||||
Diluted net income (loss) per share | $ | (8.93 | ) | $ | 3.09 | $ | (10.31 | ) | ||||
64
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions, except share data) | ||||||||||||
Common Stock | ||||||||||||
Balance at beginning of period | $ | 0.8 | $ | 0.7 | $ | 0.7 | ||||||
Issuance of common stock and stock-based compensation | — | 0.1 | — | |||||||||
Balance at end of period | $ | 0.8 | $ | 0.8 | $ | 0.7 | ||||||
Additional Paid-in Capital | ||||||||||||
Balance at beginning of period | $ | 1,373.3 | $ | 1,338.1 | $ | 1,108.6 | ||||||
Net proceeds from issuance of 8,695,653 shares of common stock | — | — | 199.2 | |||||||||
Issuance of common stock as part of merger termination fee | — | 12.5 | — | |||||||||
Stock-based compensation | (1.6 | ) | 22.7 | 30.7 | ||||||||
Cumulative effect of a change in accounting principle | — | — | (0.4 | ) | ||||||||
Balance at end of period | $ | 1,371.7 | $ | 1,373.3 | $ | 1,338.1 | ||||||
Treasury Stock | ||||||||||||
Balance at beginning of period | $ | (194.5 | ) | $ | (210.2 | ) | $ | (225.5 | ) | |||
Issuances of 471,244 shares at an average price of $48.03 | 22.6 | — | — | |||||||||
Purchases of 259,200 shares at an average price of $16.21 | (4.2 | ) | — | — | ||||||||
Issuances of 528,888 shares at an average price of $38.00 | — | 20.1 | — | |||||||||
Purchases of 154,258 shares at an average price of $28.21 | — | (4.4 | ) | — | ||||||||
Issuances of 362,531 shares at an average price of $42.40 | — | — | 15.3 | |||||||||
Balance at end of period | $ | (176.1 | ) | $ | (194.5 | ) | $ | (210.2 | ) | |||
Retained Earnings (Deficit) | ||||||||||||
Balance at beginning of period | $ | (116.5 | ) | $ | (362.5 | ) | $ | 361.8 | ||||
Net income (loss) | (689.9 | ) | 241.5 | (707.5 | ) | |||||||
Adoption of EITF06-4 | (4.9 | ) | — | — | ||||||||
Adoption of FASB Statement No. 158 | (6.9 | ) | — | — | ||||||||
Adoption of FASB Interpretation No. 48 | — | 4.5 | — | |||||||||
Dividends declared and paid of $0.25 per share | — | — | (16.8 | ) | ||||||||
Balance at end of period | $ | (818.2 | ) | $ | (116.5 | ) | $ | (362.5 | ) | |||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Defined Benefit Plans | ||||||||||||
Balance at beginning of period | $ | (160.1 | ) | $ | (264.2 | ) | $ | (115.0 | ) | |||
Defined benefit plan adjustments | (46.1 | ) | 104.1 | 17.4 | ||||||||
Adoption of FASB Statement No. 158 | 1.5 | — | (166.6 | ) | ||||||||
Balance at end of period | $ | (204.7 | ) | $ | (160.1 | ) | $ | (264.2 | ) | |||
Derivative Instruments and Hedging Activities | ||||||||||||
Balance at beginning of period | $ | (5.5 | ) | $ | 14.7 | $ | 9.0 | |||||
Derivative instruments and hedging activities adjustments | (75.3 | ) | (20.2 | ) | 5.7 | |||||||
Balance at end of period | $ | (80.8 | ) | $ | (5.5 | ) | $ | 14.7 | ||||
Cumulative Translation Adjustments | ||||||||||||
Balance at beginning of period | $ | 120.0 | $ | 3.9 | $ | (86.8 | ) | |||||
Cumulative translation adjustments | (64.8 | ) | 116.1 | 90.7 | ||||||||
Balance at end of period | $ | 55.2 | $ | 120.0 | $ | 3.9 | ||||||
Deferred Income Tax Asset | ||||||||||||
Balance at beginning of period | $ | 73.2 | $ | 81.5 | $ | 58.2 | ||||||
Deferred income tax asset adjustments | (21.7 | ) | (8.3 | ) | 23.3 | |||||||
Adoption of FASB Statement No. 158 | (0.5 | ) | — | — | ||||||||
Balance at end of period | $ | 51.0 | $ | 73.2 | $ | 81.5 | ||||||
Accumulated other comprehensive income (loss) | $ | (179.3 | ) | $ | 27.6 | $ | (164.1 | ) | ||||
Total Stockholders’ Equity | $ | 198.9 | $ | 1,090.7 | $ | 602.0 | ||||||
Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | $ | (689.9 | ) | $ | 241.5 | $ | (707.5 | ) | ||||
Defined benefit plan adjustments | (46.1 | ) | 104.1 | 17.4 | ||||||||
Derivative instruments and hedging activities adjustments | (75.3 | ) | (20.2 | ) | 5.7 | |||||||
Cumulative translation adjustments | (64.8 | ) | 116.1 | 90.7 | ||||||||
Deferred income tax asset adjustments | (21.7 | ) | (8.3 | ) | 23.3 | |||||||
Comprehensive Income (Loss) | $ | (897.8 | ) | $ | 433.2 | $ | (570.4 | ) | ||||
65
For the Year Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(In millions, except per share data) | ||||||||||||
Net sales | $ | 15,995.0 | $ | 17,838.9 | $ | 17,089.2 | ||||||
Cost of sales | 14,846.5 | 16,911.2 | 16,353.2 | |||||||||
Selling, general and administrative expenses | 574.7 | 646.7 | 630.6 | |||||||||
Goodwill impairment charges | — | 2.9 | 1,012.8 | |||||||||
Divestiture of Interior business | 10.7 | 636.0 | — | |||||||||
Interest expense | 199.2 | 209.8 | 183.2 | |||||||||
Other expense, net | 40.7 | 85.7 | 38.0 | |||||||||
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 | 323.2 | (653.4 | ) | (1,128.6 | ) | |||||||
Provision for income taxes | 89.9 | 54.9 | 194.3 | |||||||||
Minority interests in consolidated subsidiaries | 25.6 | 18.3 | 7.2 | |||||||||
Equity in net (income) loss of affiliates | (33.8 | ) | (16.2 | ) | 51.4 | |||||||
Income (loss) before cumulative effect of a change in accounting principle | 241.5 | (710.4 | ) | (1,381.5 | ) | |||||||
Cumulative effect of a change in accounting principle | — | 2.9 | — | |||||||||
Net income (loss) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | ||||
Basic net income (loss) per share: | ||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | 3.14 | $ | (10.35 | ) | $ | (20.57 | ) | ||||
Cumulative effect of change in accounting principle | — | 0.04 | — | |||||||||
Basic net income (loss) per share | $ | 3.14 | $ | (10.31 | ) | $ | (20.57 | ) | ||||
Diluted net income (loss) per share: | ||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | 3.09 | $ | (10.35 | ) | $ | (20.57 | ) | ||||
Cumulative effect of change in accounting principle | — | 0.04 | — | |||||||||
Diluted net income (loss) per share | $ | 3.09 | $ | (10.31 | ) | $ | (20.57 | ) | ||||
For the Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions) | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | $ | (689.9 | ) | $ | 241.5 | $ | (707.5 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities — | ||||||||||||
Cumulative effect of a change in accounting principle | — | — | (2.9 | ) | ||||||||
Goodwill impairment charges | 530.0 | — | 2.9 | |||||||||
Divestiture of Interior business | — | 10.7 | 636.0 | |||||||||
Equity in net (income) loss of affiliates | 37.2 | (33.8 | ) | (16.2 | ) | |||||||
(Gain) loss on extinguishment of debt | (7.5 | ) | — | 47.9 | ||||||||
Fixed asset impairment charges | 17.5 | 16.8 | 15.8 | |||||||||
Deferred tax provision (benefit) | 30.4 | (43.9 | ) | (55.0 | ) | |||||||
Depreciation and amortization | 299.3 | 296.9 | 392.2 | |||||||||
Stock-based compensation | 19.2 | 24.4 | 31.7 | |||||||||
Net change in recoverable customer engineering and tooling | 45.0 | 47.1 | 194.9 | |||||||||
Net change in working capital items | (196.9 | ) | (67.3 | ) | (110.1 | ) | ||||||
Net change in sold accounts receivable | 47.2 | (168.9 | ) | (178.0 | ) | |||||||
Changes in other long-term liabilities | (17.0 | ) | 85.3 | 47.3 | ||||||||
Changes in other long-term assets | 0.2 | 12.6 | 6.0 | |||||||||
Other, net | 29.5 | 45.5 | (19.7 | ) | ||||||||
Net cash provided by operating activities | 144.2 | 466.9 | 285.3 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Additions to property, plant and equipment | (167.7 | ) | (202.2 | ) | (347.6 | ) | ||||||
Cost of acquisitions, net of cash acquired | (27.9 | ) | (33.4 | ) | (30.5 | ) | ||||||
Divestiture of Interior business | — | (100.9 | ) | (16.2 | ) | |||||||
Net proceeds from disposition of businesses and other assets | 51.9 | 10.0 | 82.1 | |||||||||
Other, net | (0.7 | ) | (13.5 | ) | — | |||||||
Net cash used in investing activities | (144.4 | ) | (340.0 | ) | (312.2 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Issuance of senior notes | — | — | 900.0 | |||||||||
Repayment/repurchase of senior notes | (133.5 | ) | (2.9 | ) | (1,356.9 | ) | ||||||
Primary credit facility borrowings (repayments), net | 1,186.0 | (6.0 | ) | 597.0 | ||||||||
Other long-term debt repayments, net | (22.9 | ) | (21.5 | ) | (36.5 | ) | ||||||
Short-term debt borrowings (repayments), net | 12.6 | (10.2 | ) | (11.8 | ) | |||||||
Net proceeds from the issuance of common stock | — | — | 199.2 | |||||||||
Proceeds from the exercise of stock options | — | 7.6 | 0.2 | |||||||||
Other, net | (35.5 | ) | (16.8 | ) | (13.8 | ) | ||||||
Net cash provided by (used in) financing activities | 1,006.7 | (49.8 | ) | 277.4 | ||||||||
Effect of foreign currency translation | (15.7 | ) | 21.5 | 54.9 | ||||||||
Net Change in Cash and Cash Equivalents | 990.8 | 98.6 | 305.4 | |||||||||
Cash and Cash Equivalents at Beginning of Year | 601.3 | 502.7 | 197.3 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 1,592.1 | $ | 601.3 | $ | 502.7 | ||||||
Changes in Working Capital: | ||||||||||||
Accounts receivable | $ | 867.6 | $ | 78.9 | $ | 153.2 | ||||||
Inventories | 55.6 | (6.9 | ) | 29.4 | ||||||||
Accounts payable | (779.2 | ) | (125.9 | ) | (358.9 | ) | ||||||
Accrued liabilities and other | (340.9 | ) | (13.4 | ) | 66.2 | |||||||
Net change in working capital items | $ | (196.9 | ) | $ | (67.3 | ) | $ | (110.1 | ) | |||
Supplementary Disclosure: | ||||||||||||
Cash paid for interest | $ | 195.9 | $ | 207.1 | $ | 218.5 | ||||||
Cash paid for income taxes, net of refunds received of $10.4 in 2008, $13.8 in 2007 and $30.7 in 2006 | $ | 103.5 | $ | 107.1 | $ | 84.8 | ||||||
66
December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(In millions, except share data) | ||||||||||||
Common Stock | ||||||||||||
Balance at beginning of period | $ | 0.7 | $ | 0.7 | $ | 0.7 | ||||||
Issuance of common stock and stock-based compensation | 0.1 | — | — | |||||||||
Balance at end of period | $ | 0.8 | $ | 0.7 | $ | 0.7 | ||||||
Additional Paid-in Capital | ||||||||||||
Balance at beginning of period | $ | 1,338.1 | $ | 1,108.6 | $ | 1,064.4 | ||||||
Net proceeds from the issuance of 8,695,653 shares of common stock | — | 199.2 | — | |||||||||
Stock issued as part of merger termination fee | 12.5 | — | — | |||||||||
Stock-based compensation | 22.7 | 30.7 | 43.8 | |||||||||
Cumulative effect of a change in accounting principle | — | (0.4 | ) | — | ||||||||
Tax benefit of stock options exercised | — | — | 0.4 | |||||||||
Balance at end of period | $ | 1,373.3 | $ | 1,338.1 | $ | 1,108.6 | ||||||
Treasury Stock | ||||||||||||
Balance at beginning of period | $ | (210.2 | ) | $ | (225.5 | ) | $ | (204.1 | ) | |||
Issuances of 528,888 shares at an average price of $38.00 | 20.1 | — | — | |||||||||
Purchases of 154,258 shares at an average price of $28.21 | (4.4 | ) | — | — | ||||||||
Issuances of 362,531 shares at an average price of $42.40 | — | 15.3 | — | |||||||||
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 | |||||||||
Balance at end of period | $ | (194.5 | ) | $ | (210.2 | ) | $ | (225.5 | ) | |||
Retained Earnings (Deficit) | ||||||||||||
Balance at beginning of period | $ | (362.5 | ) | $ | 361.8 | $ | 1,810.5 | |||||
Net income (loss) | 241.5 | (707.5 | ) | (1,381.5 | ) | |||||||
Adoption of FASB Interpretation No. 48 | 4.5 | — | — | |||||||||
Dividends declared of $0.25 per share in 2006 and $1.00 per share in 2005 | — | (16.8 | ) | (67.2 | ) | |||||||
Balance at end of period | $ | (116.5 | ) | $ | (362.5 | ) | $ | 361.8 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Defined Benefit Plans | ||||||||||||
Balance at beginning of period | $ | (264.2 | ) | $ | (115.0 | ) | $ | (72.6 | ) | |||
Defined benefit plan adjustments | 104.1 | 17.4 | (42.4 | ) | ||||||||
Adoption of SFAS No. 158 | — | (166.6 | ) | — | ||||||||
Balance at end of period | $ | (160.1 | ) | $ | (264.2 | ) | $ | (115.0 | ) | |||
Derivative Instruments and Hedging Activities | ||||||||||||
Balance at beginning of period | $ | 14.7 | $ | 9.0 | $ | 17.4 | ||||||
Derivative instruments and hedging activities adjustments | (20.2 | ) | 5.7 | (8.4 | ) | |||||||
Balance at end of period | $ | (5.5 | ) | $ | 14.7 | $ | 9.0 | |||||
Cumulative Translation Adjustments | ||||||||||||
Balance at beginning of period | $ | 3.9 | $ | (86.8 | ) | $ | 65.6 | |||||
Cumulative translation adjustments | 116.1 | 90.7 | (152.4 | ) | ||||||||
Balance at end of period | $ | 120.0 | $ | 3.9 | $ | (86.8 | ) | |||||
Deferred Income Tax Asset | ||||||||||||
Balance at beginning of period | $ | 81.5 | $ | 58.2 | $ | 48.2 | ||||||
Deferred income tax asset adjustments | (8.3 | ) | 23.3 | 10.0 | ||||||||
Balance at end of period | $ | 73.2 | $ | 81.5 | $ | 58.2 | ||||||
Accumulated other comprehensive income (loss) | $ | 27.6 | $ | (164.1 | ) | $ | (134.6 | ) | ||||
Total Stockholders’ Equity | $ | 1,090.7 | $ | 602.0 | $ | 1,111.0 | ||||||
Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | ||||
Defined benefit plan adjustments | 104.1 | 17.4 | (42.4 | ) | ||||||||
Derivative instruments and hedging activities adjustments | (20.2 | ) | 5.7 | (8.4 | ) | |||||||
Cumulative translation adjustments | 116.1 | 90.7 | (152.4 | ) | ||||||||
Deferred income tax asset adjustments | (8.3 | ) | 23.3 | 10.0 | ||||||||
Comprehensive Income (Loss) | $ | 433.2 | $ | (570.4 | ) | $ | (1,574.7 | ) | ||||
67
For the Year Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(In millions) | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities — | ||||||||||||
Cumulative effect of a change in accounting principle | — | (2.9 | ) | — | ||||||||
Goodwill impairment charges | — | 2.9 | 1,012.8 | |||||||||
Divestiture of Interior business | 10.7 | 636.0 | — | |||||||||
Fixed asset impairment charges | 16.8 | 15.8 | 97.4 | |||||||||
Deferred tax provision (benefit) | (43.9 | ) | (55.0 | ) | 44.7 | |||||||
Equity in net (income) loss of affiliates | (33.8 | ) | (16.2 | ) | 51.4 | |||||||
Depreciation and amortization | 296.9 | 392.2 | 393.4 | |||||||||
Net change in recoverable customer engineering and tooling | 47.1 | 194.9 | (112.5 | ) | ||||||||
Net change in working capital items | (67.3 | ) | (110.1 | ) | 9.7 | |||||||
Net change in sold accounts receivable | (168.9 | ) | (178.0 | ) | 411.1 | |||||||
Other, net | 167.8 | 113.2 | 34.3 | |||||||||
Net cash provided by operating activities | 466.9 | 285.3 | 560.8 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Additions to property, plant and equipment | (202.2 | ) | (347.6 | ) | (568.4 | ) | ||||||
Cost of acquisitions, net of cash acquired | (33.4 | ) | (30.5 | ) | (11.8 | ) | ||||||
Divestiture of Interior business | (100.9 | ) | (16.2 | ) | — | |||||||
Net proceeds from disposition of businesses and other assets | 10.0 | 82.1 | 33.3 | |||||||||
Other, net | (13.5 | ) | — | 5.3 | ||||||||
Net cash used in investing activities | (340.0 | ) | (312.2 | ) | (541.6 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Issuance of senior notes | — | 900.0 | — | |||||||||
Repayment of senior notes | (2.9 | ) | (1,356.9 | ) | (600.0 | ) | ||||||
Primary credit facility borrowings (repayments), net | (6.0 | ) | 597.0 | 400.0 | ||||||||
Other long-term debt repayments, net | (21.5 | ) | (36.5 | ) | (32.7 | ) | ||||||
Short-term debt repayments, net | (10.2 | ) | (11.8 | ) | (23.8 | ) | ||||||
Net proceeds from the sale of common stock | — | 199.2 | — | |||||||||
Dividends paid | — | (16.8 | ) | (67.2 | ) | |||||||
Proceeds from exercise of stock options | 7.6 | 0.2 | 4.7 | |||||||||
Repurchase of common stock | (4.4 | ) | — | (25.4 | ) | |||||||
Increase (decrease) in drafts | (12.4 | ) | 3.0 | (3.3 | ) | |||||||
Other, net | — | — | 0.7 | |||||||||
Net cash provided by (used in) financing activities | (49.8 | ) | 277.4 | (347.0 | ) | |||||||
Effect of foreign currency translation | 21.5 | 54.9 | (59.8 | ) | ||||||||
Net Change in Cash and Cash Equivalents | 98.6 | 305.4 | (387.6 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Year | 502.7 | 197.3 | 584.9 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 601.3 | $ | 502.7 | $ | 197.3 | ||||||
Changes in Working Capital: | ||||||||||||
Accounts receivable | $ | 78.9 | $ | 153.2 | $ | (250.3 | ) | |||||
Inventories | (6.9 | ) | 29.4 | (76.9 | ) | |||||||
Accounts payable | (125.9 | ) | (358.9 | ) | 298.1 | |||||||
Accrued liabilities and other | (13.4 | ) | 66.2 | 38.8 | ||||||||
Net change in working capital items | $ | (67.3 | ) | $ | (110.1 | ) | $ | 9.7 | ||||
Supplementary Disclosure: | ||||||||||||
Cash paid for interest | $ | 207.1 | $ | 218.5 | $ | 172.6 | ||||||
Cash paid for income taxes, net of refunds received of $13.8 in 2007, $30.7 in 2006, and $76.7 in 2005 | $ | 107.1 | $ | 84.8 | $ | 112.7 | ||||||
68
(1) | Basis of Presentation |
67
(2) | Summary of Significant Accounting Policies |
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Raw materials | $ | 463.9 | $ | 439.9 | $ | 417.4 | $ | 463.9 | ||||||||
Work-in-process | 37.5 | 35.6 | 29.8 | 37.5 | ||||||||||||
Finished goods | 104.1 | 106.0 | 85.0 | 104.1 | ||||||||||||
Inventories | $ | 605.5 | $ | 581.5 | $ | 532.2 | $ | 605.5 | ||||||||
69
68
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Current | $ | 73.0 | $ | 87.7 | $ | 51.9 | $ | 73.0 | ||||||||
Long-term | 94.5 | 116.2 | 66.8 | 94.5 | ||||||||||||
Recoverable customer engineering and tooling | $ | 167.5 | $ | 203.9 | $ | 118.7 | $ | 167.5 | ||||||||
Buildings and improvements | 20 to 40 years | |||||||
Machinery and equipment | 5 to 15 years | |||||||
70
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||||||
Land | $ | 138.8 | $ | 133.5 | $ | 143.0 | $ | 138.8 | ||||||||||||
Buildings and improvements | 619.9 | 559.1 | 594.9 | 619.9 | ||||||||||||||||
Machinery and equipment | 2,055.2 | 2,081.3 | 2,002.1 | 2,055.2 | ||||||||||||||||
Construction in progress | 6.9 | 12.0 | 5.0 | 6.9 | ||||||||||||||||
Total property, plant and equipment | 2,820.8 | 2,785.9 | 2,745.0 | 2,820.8 | ||||||||||||||||
Less — accumulated depreciation | (1,428.1 | ) | (1,314.2 | ) | (1,531.5 | ) | (1,428.1 | ) | ||||||||||||
Property, plant and equipment, net | $ | 1,392.7 | $ | 1,471.7 | $ | 1,213.5 | $ | 1,392.7 | ||||||||||||
69
71
Electrical and | Electrical and | |||||||||||||||||||||||||||
Seating | Electronic | Interior | Total | Seating | Electronic | Total | ||||||||||||||||||||||
Balance as of January 1, 2006 | $ | 1,034.2 | $ | 905.6 | $ | — | $ | 1,939.8 | ||||||||||||||||||||
Purchase price adjustment | — | 16.1 | 2.9 | 19.0 | ||||||||||||||||||||||||
Goodwill impairment charges | — | — | (2.9 | ) | (2.9 | ) | ||||||||||||||||||||||
Foreign currency translation and other | 26.5 | 14.3 | — | 40.8 | ||||||||||||||||||||||||
Balance as of December 31, 2006 | $ | 1,060.7 | $ | 936.0 | $ | — | $ | 1,996.7 | ||||||||||||||||||||
Balance as of January 1, 2007 | $ | 1,060.7 | $ | 936.0 | $ | 1,996.7 | ||||||||||||||||||||||
Foreign currency translation and other | 36.8 | 20.5 | — | 57.3 | 36.8 | 20.5 | 57.3 | |||||||||||||||||||||
Balance as of December 31, 2007 | $ | 1,097.5 | $ | 956.5 | $ | — | $ | 2,054.0 | $ | 1,097.5 | $ | 956.5 | $ | 2,054.0 | ||||||||||||||
Goodwill impairment charges | — | (530.0 | ) | (530.0 | ) | |||||||||||||||||||||||
Foreign currency translation and other | (20.6 | ) | (22.8 | ) | (43.4 | ) | ||||||||||||||||||||||
Balance as of December 31, 2008 | $ | 1,076.9 | $ | 403.7 | $ | 1,480.6 | ||||||||||||||||||||||
70
Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Life | Gross Carrying | Accumulated | Net Carrying | Useful Life | |||||||||||||||||||||||||
Value | Amortization | Value | (Years) | Value | Amortization | Value | (Years) | |||||||||||||||||||||||||
Technology | $ | 2.8 | $ | (1.0 | ) | $ | 1.8 | 10.0 | $ | 2.8 | $ | (1.3 | ) | $ | 1.5 | 10.0 | ||||||||||||||||
Customer contracts | 24.6 | (12.1 | ) | 12.5 | 7.8 | 22.1 | (13.6 | ) | 8.5 | 7.8 | ||||||||||||||||||||||
Customer relationships | 32.0 | (6.9 | ) | 25.1 | 19.2 | 29.5 | (8.0 | ) | 21.5 | 19.2 | ||||||||||||||||||||||
Balance as of December 31, 2007 | $ | 59.4 | $ | (20.0 | ) | $ | 39.4 | 15.2 | ||||||||||||||||||||||||
Balance as of December 31, 2008 | $ | 54.4 | $ | (22.9 | ) | $ | 31.5 | 15.7 | ||||||||||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Life | Gross Carrying | Accumulated | Net Carrying | Useful Life | |||||||||||||||||||||||||||||
Value | Amortization | Value | (Years) | Value | Amortization | Value | (Years) | |||||||||||||||||||||||||||||
Technology | $ | 2.8 | $ | (0.8 | ) | $ | 2.0 | 10.0 | $ | 2.8 | $ | (1.0 | ) | $ | 1.8 | 10.0 | ||||||||||||||||||||
Customer contracts | 23.0 | (8.4 | ) | 14.6 | 7.7 | 24.6 | (12.1 | ) | 12.5 | 7.8 | ||||||||||||||||||||||||||
Customer relationships | 29.8 | (4.5 | ) | 25.3 | 19.0 | 32.0 | (6.9 | ) | 25.1 | 19.2 | ||||||||||||||||||||||||||
Balance as of December 31, 2006 | $ | 55.6 | $ | (13.7 | ) | $ | 41.9 | 14.7 | ||||||||||||||||||||||||||||
Balance as of December 31, 2007 | $ | 59.4 | $ | (20.0 | ) | $ | 39.4 | 15.2 | ||||||||||||||||||||||||||||
Year | Expense | |||
2009 | $ | 4.8 | ||
2010 | 4.7 | |||
2011 | 4.0 | |||
2012 | 2.7 | |||
2013 | 1.9 |
72
71
73
72
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Other expense | $ | 47.0 | $ | 101.3 | $ | 41.8 | $ | 82.7 | $ | 47.0 | $ | 101.3 | ||||||||||||
Other income | (6.3 | ) | (15.6 | ) | (3.8 | ) | (30.8 | ) | (6.3 | ) | (15.6 | ) | ||||||||||||
Other expense, net | $ | 40.7 | $ | 85.7 | $ | 38.0 | $ | 51.9 | $ | 40.7 | $ | 85.7 | ||||||||||||
74
For the Year Ended December 31, | 2005 | |||
Net loss, as reported | $ | (1,381.5 | ) | |
Add: Stock-based employee compensation expense included in reported net loss | 14.7 | |||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards | (18.1 | ) | ||
Net loss, pro forma | $ | (1,384.9 | ) | |
Net loss per share: | ||||
Basic and diluted — as reported | $ | (20.57 | ) | |
Basic and diluted — pro forma | $ | (20.62 | ) | |
73
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Net income (loss) | $ | 241.5 | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | (689.9 | ) | $ | 241.5 | $ | (707.5 | ) | ||||||||
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Weighted average common shares outstanding | 76,826,765 | 68,607,262 | 67,166,668 | 77,242,360 | 76,826,765 | 68,607,262 | ||||||||||||||||||
Dilutive effect of common stock equivalents | 1,387,483 | — | — | — | 1,387,483 | — | ||||||||||||||||||
Diluted shares outstanding | 78,214,248 | 68,607,262 | 67,166,668 | 77,242,360 | 78,214,248 | 68,607,262 | ||||||||||||||||||
75
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Options | ||||||||||||||||||||||||
Antidilutive options | 1,805,530 | 2,790,305 | 2,983,405 | 1,268,180 | 1,805,530 | 2,790,305 | ||||||||||||||||||
Exercise prices | $ | 35.93 - $55.33 | $ | 22.12 - $55.33 | $ | 22.12 - $55.33 | $ | 22.12 - $55.33 | $ | 35.93 - $55.33 | $ | 22.12 - $55.33 | ||||||||||||
Restricted stock units | — | 1,964,571 | 2,234,122 | 1,040,740 | — | 1,964,571 | ||||||||||||||||||
Performance units | — | 169,909 | 123,672 | 168,696 | — | 169,909 | ||||||||||||||||||
Stock appreciation rights | 1,301,922 | 1,751,854 | 1,215,046 | 2,432,745 | 1,301,922 | 1,751,854 | ||||||||||||||||||
74
(3) | Merger Agreement |
76
(4) | Divestiture of Interior Business |
75
77
December 31, | ||||
2006 | ||||
Cash and cash equivalents | $ | 19.2 | ||
Accounts receivable | 284.5 | |||
Inventories | 69.2 | |||
Other current assets | 54.9 | |||
Current assets of business held for sale | $ | 427.8 | ||
Accounts payable and drafts | $ | 323.7 | ||
Accrued liabilities | 79.8 | |||
Current portion of long-term debt | 2.2 | |||
Current liabilities of business held for sale | 405.7 | |||
Long-term debt | 19.6 | |||
Other long-term liabilities | 28.9 | |||
Long-term liabilities of business held for sale | 48.5 | |||
Total liabilities of business held for sale | $ | 454.2 | ||
78
76
(5) | Stockholder Rights Plan and Sale of Common Stock |
(6) | Restructuring |
77
Accrual as of | Utilization | Accrual as of | ||||||||||||||||||
January 1, 2008 | Charges | Cash | Non-Cash | December 31, 2008 | ||||||||||||||||
Employee termination benefits | $ | 68.7 | $ | 23.7 | $ | (65.4 | ) | $ | — | $ | 27.0 | |||||||||
Asset impairments | — | 3.4 | — | (3.4 | ) | — | ||||||||||||||
Contract termination costs | 5.9 | — | — | — | 5.9 | |||||||||||||||
Other related costs | — | 16.9 | (16.9 | ) | — | — | ||||||||||||||
Total | $ | 74.6 | $ | 44.0 | $ | (82.3 | ) | $ | (3.4 | ) | $ | 32.9 | ||||||||
Utilization | Accrual as of | |||||||||||||||
Charges | Cash | Non-Cash | December 31, 2008 | |||||||||||||
Employee termination benefits | $ | 104.2 | $ | (58.1 | ) | $ | — | $ | 46.1 | |||||||
Asset impairments | 14.1 | — | (14.1 | ) | — | |||||||||||
Contract termination costs | 1.7 | (0.1 | ) | — | 1.6 | |||||||||||
Other related costs | 5.9 | (5.9 | ) | — | — | |||||||||||
Total | $ | 125.9 | $ | (64.1 | ) | $ | (14.1 | ) | $ | 47.7 | ||||||
7978
Accrual as of | Utilization | Accrual as of | Accrual as of | Utilization | Accrual as of | |||||||||||||||||||||||||||||||||||
December 31, 2006 | Charges | Cash | Non-Cash | December 31, 2007 | January 1, 2007 | Charges | Cash | Non-Cash | December 31, 2007 | |||||||||||||||||||||||||||||||
Employee termination benefits | $ | 36.4 | $ | 115.5 | $ | (83.2 | ) | $ | — | $ | 68.7 | $ | 36.4 | $ | 115.5 | $ | (83.2 | ) | $ | — | $ | 68.7 | ||||||||||||||||||
Asset impairments | — | 16.8 | — | (16.8 | ) | — | — | 16.8 | — | (16.8 | ) | — | ||||||||||||||||||||||||||||
Contract termination costs | 3.4 | 6.0 | (3.5 | ) | — | 5.9 | 3.4 | 6.0 | (3.5 | ) | — | 5.9 | ||||||||||||||||||||||||||||
Other related costs | — | 11.7 | (11.7 | ) | — | — | — | 11.7 | (11.7 | ) | — | — | ||||||||||||||||||||||||||||
Total | $ | 39.8 | $ | 150.0 | $ | (98.4 | ) | $ | (16.8 | ) | $ | 74.6 | $ | 39.8 | $ | 150.0 | $ | (98.4 | ) | $ | (16.8 | ) | $ | 74.6 | ||||||||||||||||
Accrual as of | Utilization | Accrual as of | Accrual as of | Utilization | Accrual as of | |||||||||||||||||||||||||||||||||||
December 31, 2005 | Charges | Cash | Non-Cash | December 31, 2006 | January 1, 2006 | Charges | Cash | Non-Cash | December 31, 2006 | |||||||||||||||||||||||||||||||
Employee termination benefits | $ | 15.1 | $ | 79.3 | $ | (58.0 | ) | $ | — | $ | 36.4 | $ | 15.1 | $ | 79.3 | $ | (58.0 | ) | $ | — | $ | 36.4 | ||||||||||||||||||
Asset impairments | — | 5.8 | — | (5.8 | ) | — | — | 5.8 | — | (5.8 | ) | — | ||||||||||||||||||||||||||||
Contract termination costs | 5.0 | 5.6 | (7.2 | ) | — | 3.4 | 5.0 | 5.6 | (7.2 | ) | — | 3.4 | ||||||||||||||||||||||||||||
Other related costs | — | 1.6 | (1.6 | ) | — | — | — | 1.6 | (1.6 | ) | — | — | ||||||||||||||||||||||||||||
Total | $ | 20.1 | $ | 92.3 | $ | (66.8 | ) | $ | (5.8 | ) | $ | 39.8 | $ | 20.1 | $ | 92.3 | $ | (66.8 | ) | $ | (5.8 | ) | $ | 39.8 | ||||||||||||||||
8079
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 | ||||||
(7) | Investments in Affiliates and Other Related Party Transactions |
December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras) | 60 | % | 60 | % | 60 | % | ||||||||||||||||||
Lear-Kyungshin Sales and Engineering LLC | 60 | 60 | 60 | |||||||||||||||||||||
Shanghai Lear STEC Automotive Parts Co., Ltd. (China) | 55 | 55 | 55 | 55 | % | 55 | % | 55 | % | |||||||||||||||
Chongqing Lear Chang’an Automotive Trim, Co., Ltd. (China) | 55 | — | — | |||||||||||||||||||||
Lear Changan (Chongqing) Automotive System Co., Ltd. (China) | 55 | — | — | |||||||||||||||||||||
Lear Shurlok Electronics (Proprietary) Limited (South Africa) | 51 | 51 | 51 | 51 | 51 | 51 | ||||||||||||||||||
Industrias Cousin Freres, S.L. (Spain) | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||
Hanil Lear India Private Limited (India) | 50 | 50 | 50 | |||||||||||||||||||||
Nanjing Lear Xindi Automotive Interiors Systems Co., Ltd. (China) | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||
Lear Dongfeng Automotive Seating Co., Ltd. (China) | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||
Dong Kwang Lear Yuhan Hoesa (Korea) | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||
Lear Jiangling (Jiangxi) Interior Systems Co. Ltd. (China) | 50 | 41 | 41 | 50 | 50 | 41 | ||||||||||||||||||
Beijing BAI Lear Automotive Systems Co., Ltd. (China) | 50 | — | — | 50 | 50 | — | ||||||||||||||||||
Beijing BAIC Lear Automotive Electronics and Electrical Products Co., Ltd. (China) | 50 | — | — | |||||||||||||||||||||
Beijing Lear Automotive Electronics and Electrical Products Co., Ltd. (China) | 50 | 50 | — | |||||||||||||||||||||
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras) | 49 | 60 | 60 | |||||||||||||||||||||
Kyungshin-Lear Sales and Engineering LLC | 49 | 60 | 60 | |||||||||||||||||||||
Tacle Seating USA, LLC | 49 | 49 | — | 49 | 49 | 49 | ||||||||||||||||||
TS Lear Automotive Sdn Bhd. (Malaysia) | 46 | — | — | 46 | 46 | — | ||||||||||||||||||
Beijing Lear Dymos Automotive Seating and Interior Co., Ltd. (China) | 40 | 40 | 40 | |||||||||||||||||||||
Total Interior Systems — America, LLC | 39 | 39 | 39 | |||||||||||||||||||||
Beijing Lear Dymos Automotive Systems Co., Ltd. (China) | 40 | 40 | 40 | |||||||||||||||||||||
UPM S.r.L. (Italy) | 39 | 39 | 39 | 39 | 39 | 39 | ||||||||||||||||||
Hanil Lear India Private Limited (India) | 35 | 50 | 50 | |||||||||||||||||||||
Markol Otomotiv Yan Sanayi VE Ticaret A.S. (Turkey) | 35 | 35 | 35 | 35 | 35 | 35 | ||||||||||||||||||
International Automotive Components Group, LLC (Europe) | 34 | 33 | — | 34 | 34 | 33 | ||||||||||||||||||
International Automotive Components Group North America, LLC | 19 | — | — | 19 | 19 | — | ||||||||||||||||||
Lear Diamond Electro-Circuit Systems Co., Ltd. (Japan) | — | — | 50 | |||||||||||||||||||||
RecepTec Holdings, L.L.C. | — | — | 21 | |||||||||||||||||||||
Chongqing Lear Chang’an Automotive Trim, Co., Ltd. (China) | — | 55 | — | |||||||||||||||||||||
Lear Changan (Chongqing) Automotive System Co., Ltd. (China) | — | 55 | — | |||||||||||||||||||||
Total Interior Systems — America, LLC | — | 39 | 39 |
December 31, | 2008 | 2007 | ||||||
Balance sheet data: | ||||||||
Current assets | $ | 970.2 | $ | 1,564.6 | ||||
Non-current assets | 863.7 | 898.7 | ||||||
Current liabilities | 852.7 | 1,184.5 | ||||||
Non-current liabilities | 278.7 | 399.7 |
For the Year Ended December 31, | 2008 | 2007 | 2006 | |||||||||
Income statement data: | ||||||||||||
Net sales | $ | 5,053.9 | $ | 4,738.0 | $ | 956.8 | ||||||
Gross profit | 248.9 | 317.3 | 50.7 | |||||||||
Income (loss) before provision for income taxes | (107.0 | ) | 135.2 | 16.3 | ||||||||
Net income (loss) | (111.9 | ) | 104.9 | 11.5 |
8180
December 31, | 2007 | 2006 | ||||||
Balance sheet data: | ||||||||
Current assets | $ | 1,564.6 | $ | 580.1 | ||||
Non-current assets | 898.7 | 317.2 | ||||||
Current liabilities | 1,184.5 | 610.0 | ||||||
Non-current liabilities | 399.7 | 12.9 |
For the Year Ended December 31, | 2007 | 2006 | 2005 | |||||||||
Income statement data: | ||||||||||||
Net sales | $ | 4,738.0 | $ | 956.8 | $ | 1,248.4 | ||||||
Gross profit | 317.3 | 50.7 | 56.1 | |||||||||
Income before provision for income taxes | 135.2 | 16.3 | 0.9 | |||||||||
Net income (loss) | 104.9 | 11.5 | (4.2 | ) |
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Sales to affiliates | $ | 82.4 | $ | 35.8 | $ | 144.9 | $ | 95.8 | $ | 82.4 | $ | 35.8 | ||||||||||||
Purchases from affiliates | 250.1 | 51.1 | 224.9 | 250.8 | 250.1 | 51.1 | ||||||||||||||||||
Purchases from other related parties(1) | 8.8 | 13.2 | 16.0 | 9.2 | 10.0 | 13.2 | ||||||||||||||||||
Management and other fees for services provided to affiliates | 8.6 | — | 0.6 | 8.5 | 8.6 | — | ||||||||||||||||||
Dividends received from affiliates | 13.5 | 1.6 | 5.3 | 4.1 | 13.5 | 1.6 |
(1) | Includes |
82
81
(8) | Short-Term Borrowings |
8382
84
(9) | Long-Term Debt |
December 31, | December 31, | |||||||||||||||||||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||||||||||||||||||
Long-Term | Weighted Average | Long-Term | Weighted Average | Long-Term | Weighted Average | Long-Term | Weighted Average | |||||||||||||||||||||||||
Debt Instrument | Debt | Interest Rate | Debt | Interest Rate | Debt | Interest Rate | Debt | Interest Rate | ||||||||||||||||||||||||
Primary Credit Facility | $ | 991.0 | 7.619 | % | $ | 997.0 | 7.49 | % | ||||||||||||||||||||||||
Primary Credit Facility — Revolver | $ | 1,192.0 | 4.09 | % | $ | — | N/A | |||||||||||||||||||||||||
Primary Credit Facility — Term Loan | 985.0 | 5.46 | % | 991.0 | 7.61 | % | ||||||||||||||||||||||||||
8.50% Senior Notes, due 2013 | 300.0 | 8.50 | % | 300.0 | 8.50 | % | 298.0 | 8.50 | % | 300.0 | 8.50 | % | ||||||||||||||||||||
8.75% Senior Notes, due 2016 | 600.0 | 8.75 | % | 600.0 | 8.75 | % | 589.3 | 8.75 | % | 600.0 | 8.75 | % | ||||||||||||||||||||
5.75% Senior Notes, due 2014 | 399.4 | 5.635 | % | 399.3 | 5.635 | % | 399.5 | 5.635 | % | 399.4 | 5.635 | % | ||||||||||||||||||||
Zero-Coupon Convertible Senior Notes, due 2022 | 0.8 | 4.75 | % | 3.6 | 4.75 | % | 0.8 | 4.75 | % | 0.8 | 4.75 | % | ||||||||||||||||||||
8.125% Euro-denominated Senior Notes, due 2008 | 81.0 | 8.125 | % | 73.3 | 8.125 | % | — | 8.125 | % | 81.0 | 8.125 | % | ||||||||||||||||||||
8.11% Senior Notes, due 2009 | 41.4 | 8.11 | % | 41.4 | 8.11 | % | — | 8.11 | % | 41.4 | 8.11 | % | ||||||||||||||||||||
Other | 27.1 | 7.04 | % | 45.5 | 7.06 | % | 19.7 | 4.27 | % | 27.1 | 7.04 | % | ||||||||||||||||||||
2,440.7 | 2,460.1 | 3,484.3 | 2,440.7 | |||||||||||||||||||||||||||||
Less — current portion | (96.1 | ) | (25.6 | ) | ||||||||||||||||||||||||||||
Less — Current portion | (4.3 | ) | (96.1 | ) | ||||||||||||||||||||||||||||
Primary Credit Facility | (2,177.0 | ) | N/A | |||||||||||||||||||||||||||||
Long-term debt | $ | 2,344.6 | $ | 2,434.5 | $ | 1,303.0 | $ | 2,344.6 | ||||||||||||||||||||||||
Year | Borrowings | Repayments | ||||||
2007 | $ | 1,134.8 | $ | 1,140.8 | ||||
2006 | 11,978.2 | 11,381.2 | ||||||
2005 | 8,942.4 | 8,542.4 |
8583
Year | Borrowings | Repayments | ||||||
2008 | $ | 1,418.9 | $ | 232.9 | ||||
2007 | 1,134.8 | 1,140.8 | ||||||
2006 | 11,978.2 | 11,381.2 |
84
Twelve-Month Period Commencing December 1, | 2013 Notes | 2016 Notes | 2013 Notes | 2016 Notes | ||||||||||||
2010 | 104.250 | % | N/A | 104.250 | % | N/A | ||||||||||
2011 | 102.125 | % | 104.375 | % | 102.125 | % | 104.375 | % | ||||||||
2012 | 100.0 | % | 102.917 | % | 100.0 | % | 102.917 | % | ||||||||
2013 | 100.0 | % | 101.458 | % | 100.0 | % | 101.458 | % | ||||||||
2014 and thereafter | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
86
85
87
December 31, | ||||
2007 | ||||
Consolidated indebtedness | $ | 1,853.3 | ||
Cash and cash equivalents | 601.3 | |||
Reported debt | $ | 2,454.6 | ||
Year Ended | ||||
December 31, | ||||
2007 | ||||
Consolidated operating profit | $ | 990.6 | ||
Depreciation and amortization | (296.9 | ) | ||
Consolidated interest expense | (181.2 | ) | ||
Costs related to divestiture of interior business | (20.7 | ) | ||
Other expense, net (excluding certain amounts related to asset-backed securitization facility) | (41.5 | ) | ||
Restructuring charges (subject to $285 million limitation) | (73.3 | ) | ||
Other excluded items | 1.4 | |||
Other non-cash items | (55.2 | ) | ||
Income 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 | $ | 323.2 | ||
Consolidated interest expense | $ | 181.2 | ||
Certain amounts related to asset-backed securitization facility | 0.8 | |||
Amortization of deferred financing fees | 8.8 | |||
Bank facility and other fees | 8.4 | |||
Reported interest expense | $ | 199.2 | ||
88
Year | Maturities | Maturities | ||||||
2008 | $ | 96.1 | ||||||
2009 | 53.2 | $ | 4.3 | |||||
2010 | 10.4 | 7.5 | ||||||
2011 | 8.1 | 1.8 | ||||||
2012 | 968.2 | 1.3 | ||||||
2013 | 301.7 |
8986
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
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 | ||||||||||||||||||||||||
Domestic | $ | (5.7 | ) | $ | (785.3 | ) | $ | (1,520.8 | ) | $ | (665.6 | ) | $ | (5.7 | ) | $ | (785.3 | ) | ||||||
Foreign | 328.9 | 131.9 | 392.2 | 124.2 | 328.9 | 131.9 | ||||||||||||||||||
$ | 323.2 | $ | (653.4 | ) | $ | (1,128.6 | ) | $ | (541.4 | ) | $ | 323.2 | $ | (653.4 | ) | |||||||||
Domestic provision for income taxes: | ||||||||||||||||||||||||
Current provision (benefit) | $ | 20.5 | $ | 30.6 | $ | (12.9 | ) | |||||||||||||||||
Deferred provision (benefit) | — | (1.6 | ) | 65.3 | ||||||||||||||||||||
Current provision | $ | 3.4 | $ | 20.5 | $ | 30.6 | ||||||||||||||||||
Deferred benefit | — | — | (1.6 | ) | ||||||||||||||||||||
Total domestic provision | 20.5 | 29.0 | 52.4 | 3.4 | 20.5 | 29.0 | ||||||||||||||||||
Foreign provision for income taxes: | ||||||||||||||||||||||||
Current provision | 113.3 | 79.3 | 162.5 | 52.0 | 113.3 | 79.3 | ||||||||||||||||||
Deferred benefit | (43.9 | ) | (53.4 | ) | (20.6 | ) | ||||||||||||||||||
Deferred provision (benefit) | 30.4 | (43.9 | ) | (53.4 | ) | |||||||||||||||||||
Total foreign provision | 69.4 | 25.9 | 141.9 | 82.4 | 69.4 | 25.9 | ||||||||||||||||||
Provision for income taxes | $ | 89.9 | $ | 54.9 | $ | 194.3 | $ | 85.8 | $ | 89.9 | $ | 54.9 | ||||||||||||
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
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 multiplied by the United States federal statutory rate | $ | 113.1 | $ | (228.7 | ) | $ | (395.0 | ) | ||||||||||||||||
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 multiplied by the United States federal statutory income tax rate | $ | (189.5 | ) | $ | 113.1 | $ | (228.7 | ) | ||||||||||||||||
Differences in income taxes on foreign earnings, losses and remittances | 16.7 | 10.2 | (34.0 | ) | (15.3 | ) | 16.7 | 10.2 | ||||||||||||||||
Valuation allowance adjustments | (64.2 | ) | 259.4 | 275.2 | 138.1 | (64.2 | ) | 259.4 | ||||||||||||||||
Research and development credits | (3.2 | ) | (11.4 | ) | (22.6 | ) | ||||||||||||||||||
Goodwill impairment | — | 1.0 | 354.4 | |||||||||||||||||||||
Investment credit/grants | (0.7 | ) | (6.7 | ) | (22.8 | ) | ||||||||||||||||||
Tax credits | (0.5 | ) | (3.9 | ) | (18.1 | ) | ||||||||||||||||||
Goodwill impairment charges | 181.6 | — | 1.0 | |||||||||||||||||||||
Other | 28.2 | 31.1 | 39.1 | (28.6 | ) | 28.2 | 31.1 | |||||||||||||||||
Provision for income taxes | $ | 89.9 | $ | 54.9 | $ | 194.3 | $ | 85.8 | $ | 89.9 | $ | 54.9 | ||||||||||||
9087
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Deferred income tax assets: | ||||||||||||||||
Tax loss carryforwards | $ | 623.5 | $ | 451.1 | $ | 580.5 | $ | 623.5 | ||||||||
Tax credit carryforwards | 192.2 | 140.1 | 218.9 | 169.9 | ||||||||||||
Retirement benefit plans | 85.9 | 113.5 | 106.1 | 85.9 | ||||||||||||
Accrued liabilities | 122.5 | 66.7 | 92.2 | 122.5 | ||||||||||||
Self-insurance reserves | 15.9 | 12.0 | ||||||||||||||
Reserves related to current assets | — | 41.1 | — | 9.0 | ||||||||||||
Self-insurance reserves | 12.0 | 19.6 | ||||||||||||||
Defined benefit plan liability adjustments | 44.0 | 84.0 | 13.8 | 44.0 | ||||||||||||
Deferred compensation | 11.9 | 15.3 | 20.8 | 11.9 | ||||||||||||
Recoverable customer engineering and tooling | 19.6 | — | 15.7 | 9.6 | ||||||||||||
Long-term asset basis differences | — | 102.2 | ||||||||||||||
Derivative instruments and hedging | 13.6 | 8.2 | 18.7 | 13.6 | ||||||||||||
Other | 0.4 | 0.2 | — | 0.4 | ||||||||||||
1,125.6 | 1,042.0 | 1,082.6 | 1,102.3 | |||||||||||||
Valuation allowance | (769.4 | ) | (843.9 | ) | (928.3 | ) | (769.4 | ) | ||||||||
$ | 356.2 | $ | 198.1 | $ | 154.3 | $ | 332.9 | |||||||||
Deferred income tax liabilities: | ||||||||||||||||
Long-term asset basis differences | $ | (108.1 | ) | $ | — | $ | (84.3 | ) | $ | (108.1 | ) | |||||
Recoverable customer engineering and tooling | — | (14.7 | ) | |||||||||||||
Undistributed earnings of foreign subsidiaries | (124.3 | ) | (106.4 | ) | (9.0 | ) | (102.0 | ) | ||||||||
Current asset basis differences | (7.1 | ) | — | |||||||||||||
Other | (1.0 | ) | — | (1.9 | ) | — | ||||||||||
$ | (233.4 | ) | $ | (121.1 | ) | $ | (102.3 | ) | $ | (210.1 | ) | |||||
Net deferred income tax asset | $ | 122.8 | $ | 77.0 | $ | 52.0 | $ | 122.8 | ||||||||
9188
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Deferred income tax assets: | ||||||||||||||||
Current | $ | 108.8 | $ | 83.3 | $ | 62.3 | $ | 108.8 | ||||||||
Long-term | 131.2 | 110.5 | 74.4 | 131.2 | ||||||||||||
Deferred income tax liabilities: | ||||||||||||||||
Current | (13.0 | ) | (20.8 | ) | (4.4 | ) | (13.0 | ) | ||||||||
Long-term | (104.2 | ) | (96.0 | ) | (80.3 | ) | (104.2 | ) | ||||||||
Net deferred income tax asset | $ | 122.8 | $ | 77.0 | $ | 52.0 | $ | 122.8 | ||||||||
9289
Balance as of January 1, 2007 | $ | 120.0 | ||||||||||
2008 | 2007 | |||||||||||
Balance as of January 1, | $ | 135.8 | $ | 120.0 | ||||||||
Additions based on tax positions related to the current year | 9.6 | 10.3 | 9.6 | |||||||||
Additions based on tax positions of prior years | 6.0 | 0.7 | 6.0 | |||||||||
Settlements | (3.5 | ) | (0.2 | ) | (3.5 | ) | ||||||
Statute expirations | (1.9 | ) | (30.1 | ) | (1.9 | ) | ||||||
Foreign currency translation | 5.6 | (16.7 | ) | 5.6 | ||||||||
Balance as of December 31, 2007 | $ | 135.8 | ||||||||||
Balance as of December 31, | $ | 99.8 | $ | 135.8 | ||||||||
(11) | Pension and Other Postretirement Benefit Plans |
9390
Pension | Other Postretirement | Pension | Other Postretirement | |||||||||||||||||||||||||||||
December 31, | 2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 860.9 | $ | 788.3 | $ | 267.9 | $ | 265.5 | $ | 887.4 | $ | 860.9 | $ | 273.9 | $ | 267.9 | ||||||||||||||||
Adoption of FASB Statement No. 158 | 14.9 | — | 6.1 | — | ||||||||||||||||||||||||||||
Service cost | 26.2 | 50.3 | 10.6 | 12.7 | 16.0 | 26.2 | 7.2 | 10.6 | ||||||||||||||||||||||||
Interest cost | 44.9 | 44.2 | 15.0 | 15.0 | 48.0 | 44.9 | 15.4 | 15.0 | ||||||||||||||||||||||||
Amendments | 20.3 | 3.5 | 0.3 | — | — | 20.3 | (23.2 | ) | 0.3 | |||||||||||||||||||||||
Actuarial gain | (41.3 | ) | (30.5 | ) | (13.1 | ) | (16.3 | ) | (38.9 | ) | (41.3 | ) | (68.8 | ) | (13.1 | ) | ||||||||||||||||
Benefits paid | (33.5 | ) | (24.9 | ) | (10.4 | ) | (9.1 | ) | (70.0 | ) | (33.5 | ) | (13.0 | ) | (10.4 | ) | ||||||||||||||||
Curtailment gain | (60.0 | ) | (4.6 | ) | (20.9 | ) | — | (4.1 | ) | (60.0 | ) | (3.6 | ) | (20.9 | ) | |||||||||||||||||
Special termination benefits | 5.9 | 1.7 | 1.2 | 0.4 | 3.4 | 5.9 | 0.4 | 1.2 | ||||||||||||||||||||||||
Acquisitions, new plans and other | — | 22.5 | — | — | ||||||||||||||||||||||||||||
Translation adjustment | 64.0 | 10.4 | 23.3 | (0.3 | ) | (78.2 | ) | 64.0 | (22.0 | ) | 23.3 | |||||||||||||||||||||
Benefit obligation at end of year | $ | 887.4 | $ | 860.9 | $ | 273.9 | $ | 267.9 | $ | 778.5 | $ | 887.4 | $ | 172.4 | $ | 273.9 | ||||||||||||||||
Pension | Other Postretirement | |||||||||||||||||||||||||||||||
December 31, | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 728.3 | $ | 573.6 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | (149.2 | ) | 66.5 | — | — | |||||||||||||||||||||||||||
Employer contributions | 81.5 | 69.6 | 13.0 | 10.4 | ||||||||||||||||||||||||||||
Benefits paid | (70.0 | ) | (33.5 | ) | (13.0 | ) | (10.4 | ) | ||||||||||||||||||||||||
Translation adjustment | (66.8 | ) | 52.1 | — | — | |||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 523.8 | $ | 728.3 | $ | — | $ | — | ||||||||||||||||||||||||
Funded status | $ | (254.7 | ) | $ | (159.1 | ) | $ | (172.4 | ) | $ | (273.9 | ) | ||||||||||||||||||||
Contributions between September 30 and December 31 | N/A | 29.6 | N/A | 2.3 | ||||||||||||||||||||||||||||
$ | (254.7 | ) | $ | (129.5 | ) | $ | (172.4 | ) | $ | (271.6 | ) | |||||||||||||||||||||
Amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||||||||||||||
Other long-term assets | $ | 27.5 | $ | 32.9 | $ | — | $ | — | ||||||||||||||||||||||||
Accrued liabilities | (11.0 | ) | (14.1 | ) | (11.3 | ) | (11.1 | ) | ||||||||||||||||||||||||
Other long-term liabilities | (271.2 | ) | (148.3 | ) | (161.1 | ) | (260.5 | ) |
Pension | Other Postretirement | |||||||||||||||
December 31, | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 573.6 | $ | 474.2 | $ | — | $ | — | ||||||||
Actual return on plan assets | 66.5 | 42.7 | — | — | ||||||||||||
Employer contributions | 69.6 | 69.5 | 10.4 | 9.1 | ||||||||||||
Benefits paid | (33.5 | ) | (24.9 | ) | (10.4 | ) | (9.1 | ) | ||||||||
Acquisitions, new plans and other | — | 11.5 | — | — | ||||||||||||
Translation adjustment | 52.1 | 0.6 | — | — | ||||||||||||
Fair value of plan assets at end of year | $ | 728.3 | $ | 573.6 | $ | — | $ | — | ||||||||
Funded status | $ | (159.1 | ) | $ | (287.3 | ) | $ | (273.9 | ) | $ | (267.9 | ) | ||||
Contributions between September 30 and December 31 | 29.6 | 11.9 | 2.3 | 2.1 | ||||||||||||
$ | (129.5 | ) | $ | (275.4 | ) | $ | (271.6 | ) | $ | (265.8 | ) | |||||
Amounts recognized in the consolidated balance sheets: | ||||||||||||||||
Other long-term assets | $ | 32.9 | $ | — | $ | — | $ | — | ||||||||
Accrued liabilities | (14.1 | ) | (4.9 | ) | (11.1 | ) | (10.0 | ) | ||||||||
Other long-term liabilities | (148.3 | ) | (270.5 | ) | (260.5 | ) | (255.8 | ) | ||||||||
91
94
Before Adoption of | After Adoption of | |||||||||||
SFAS No. 158 | Adjustments | SFAS No. 158 | ||||||||||
Intangible assets (other long-term assets) | $ | 45.7 | $ | (45.7 | ) | $ | — | |||||
Liability for defined benefit plan obligations (current and long-term liabilities) | (420.3 | ) | (120.9 | ) | (541.2 | ) | ||||||
Accumulated other comprehensive loss — (stockholders’ equity) | 97.6 | 166.6 | 264.2 |
Other | ||||||||
Pension | Postretirement | |||||||
Actuarial gains recognized: | ||||||||
Reclassification adjustments | $ | 49.9 | $ | 10.9 | ||||
Actuarial gain arising during the period | 61.1 | 13.1 | ||||||
Prior service (cost) credit recognized: | ||||||||
Reclassification adjustments | 15.7 | (3.7 | ) | |||||
Prior service cost arising during the period | (20.3 | ) | (0.3 | ) | ||||
Transition asset (obligation) | ||||||||
Reclassification adjustments | (0.1 | ) | 2.5 | |||||
Translation adjustment | (15.1 | ) | (9.6 | ) | ||||
$ | 91.2 | $ | 12.9 | |||||
9592
Other | ||||||||
For the Year Ended December 31, 2008 | Pension | Postretirement | ||||||
SFAS No. 158 transition adjustment, before tax | $ | 1.3 | $ | 0.2 | ||||
Actuarial gains recognized: | ||||||||
Reclassification adjustments | 1.5 | 3.9 | ||||||
Actuarial gain (loss) arising during the period | (174.2 | ) | 69.7 | |||||
Prior service (cost) credit recognized: | ||||||||
Reclassification adjustments | 15.0 | (4.0 | ) | |||||
Prior service cost arising during the period | — | 22.6 | ||||||
Transition asset (obligation) recognized: | ||||||||
Reclassification adjustments | (0.1 | ) | 1.5 | |||||
Translation adjustment | 17.1 | 0.9 | ||||||
$ | (139.4 | ) | $ | 94.8 | ||||
Pension | Other Postretirement | |||||||||||||||
December 31, | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Net actuarial loss | $ | (193.8 | ) | $ | (47.9 | ) | $ | (1.9 | ) | $ | (76.5 | ) | ||||
Net transition obligation | (0.1 | ) | — | (3.7 | ) | (6.3 | ) | |||||||||
Prior service (cost) credit | (52.2 | ) | (58.8 | ) | 47.0 | 29.4 | ||||||||||
$ | (246.1 | ) | $ | (106.7 | ) | $ | 41.4 | $ | (53.4 | ) | ||||||
Other | Other | |||||||||||||||
Pension | Postretirement | |||||||||||||||
For the Year Ended December 31, 2009 | Pension | Postretirement | ||||||||||||||
Amortization of actuarial loss | $ | 0.6 | $ | 3.7 | $ | 6.3 | $ | 0.4 | ||||||||
Amortization of net transition obligation | — | 0.8 | — | 0.6 | ||||||||||||
Amortization of prior service cost (credit) | 5.0 | (3.6 | ) | 5.6 | (7.1 | ) | ||||||||||
$ | 5.6 | $ | 0.9 | $ | 11.9 | $ | (6.1 | ) | ||||||||
93
Pension | Other Postretirement | |||||||||||||||
December 31, | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Net actuarial loss | $ | (47.9 | ) | $ | (150.1 | ) | $ | (76.5 | ) | $ | (91.8 | ) | ||||
Net transition (asset) obligation | — | 0.1 | (6.3 | ) | (7.8 | ) | ||||||||||
Prior service (cost) credit | (58.8 | ) | (47.9 | ) | 29.4 | 33.3 | ||||||||||
$ | (106.7 | ) | $ | (197.9 | ) | $ | (53.4 | ) | $ | (66.3 | ) | |||||
Pension | Other Postretirement | Pension | Other Postretirement | |||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 26.2 | $ | 50.3 | $ | 41.0 | $ | 10.6 | $ | 12.7 | $ | 11.7 | $ | 16.0 | $ | 26.2 | $ | 50.3 | $ | 7.2 | $ | 10.6 | $ | 12.7 | ||||||||||||||||||||||||
Interest cost | 44.9 | 44.2 | 37.6 | 15.0 | 15.0 | 13.5 | 48.0 | 44.9 | 44.2 | 15.4 | 15.0 | 15.0 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (46.7 | ) | (39.4 | ) | (30.2 | ) | — | — | — | (54.7 | ) | (46.7 | ) | (39.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
Amortization of actuarial loss | 3.0 | 7.1 | 3.0 | 4.7 | 5.8 | 3.6 | 0.4 | 3.0 | 7.1 | 3.4 | 4.7 | 5.8 | ||||||||||||||||||||||||||||||||||||
Amortization of transition (asset) obligation | (0.2 | ) | (0.1 | ) | (0.2 | ) | 0.9 | 1.0 | 1.1 | (0.1 | ) | (0.2 | ) | (0.1 | ) | 0.8 | 0.9 | 1.0 | ||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 4.9 | 5.4 | 5.4 | (3.6 | ) | (3.7 | ) | (3.1 | ) | 6.8 | 4.9 | 5.4 | (3.5 | ) | (3.6 | ) | (3.7 | ) | ||||||||||||||||||||||||||||||
Settlement loss | — | — | 1.0 | — | — | — | 1.2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Special termination benefits | 5.9 | 1.7 | — | 1.1 | 0.4 | 0.3 | 2.9 | 5.9 | 1.7 | 0.3 | 1.1 | 0.4 | ||||||||||||||||||||||||||||||||||||
Curtailment (gain) loss | (0.8 | ) | 0.9 | 0.5 | (13.5 | ) | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||
Curtailment (gain) loss, net | 7.4 | (0.8 | ) | 0.9 | (2.8 | ) | (13.5 | ) | — | |||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 37.2 | $ | 70.1 | $ | 58.1 | $ | 15.2 | $ | 31.2 | $ | 28.5 | $ | 27.9 | $ | 37.2 | $ | 70.1 | $ | 20.8 | $ | 15.2 | $ | 31.2 | ||||||||||||||||||||||||
96
Other | ||||||||||||||||||||||||||||||||
Pension | Postretirement | Pension | Other Postretirement | |||||||||||||||||||||||||||||
December 31, | 2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||
Discount rate: | ||||||||||||||||||||||||||||||||
Domestic plans | 6.25 | % | 6.00 | % | 6.10 | % | 5.90 | % | 5.73 | % | 6.25 | % | 5.75 | % | 6.10 | % | ||||||||||||||||
Foreign plans | 5.40 | % | 5.00 | % | 5.60 | % | 5.30 | % | 6.25 | % | 5.40 | % | 7.50 | % | 5.60 | % | ||||||||||||||||
Rate of compensation increase: | ||||||||||||||||||||||||||||||||
Domestic plans | N/A | 3.75 | % | N/A | N/A | |||||||||||||||||||||||||||
Foreign plans | 4.00 | % | 4.00 | % | N/A | N/A | 3.25 | % | 4.00 | % | N/A | N/A |
94
Pension | Other Postretirement | Pension | Other Postretirement | |||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Discount rate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic plans | 6.00 | % | 5.75 | % | 6.00 | % | 5.90 | % | 5.70 | % | 6.00 | % | 6.25 | % | 6.00 | % | 5.75 | % | 6.10 | % | 5.90 | % | 5.70 | % | ||||||||||||||||||||||||
Foreign plans | 5.00 | % | 5.00 | % | 6.00 | % | 5.30 | % | 5.30 | % | 6.50 | % | 5.40 | % | 5.00 | % | 5.00 | % | 5.60 | % | 5.30 | % | 5.30 | % | ||||||||||||||||||||||||
Expected return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic plans | 8.25 | % | 8.25 | % | 7.75 | % | N/A | N/A | N/A | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Foreign plans | 6.90 | % | 6.90 | % | 7.00 | % | N/A | N/A | N/A | 6.90 | % | 6.90 | % | 6.90 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Rate of compensation increase: | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic plans | N/A | 3.75 | % | 3.00 | % | N/A | N/A | N/A | N/A | N/A | 3.75 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Foreign plans | 3.90 | % | 3.90 | % | 3.25 | % | N/A | N/A | N/A | 3.90 | % | 3.90 | % | 3.90 | % | N/A | N/A | N/A |
97
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Equity securities: | ||||||||||||||||
Domestic plans | 70 | % | 69 | % | 66 | % | 70 | % | ||||||||
Foreign plans | 58 | % | 58 | % | 57 | % | 58 | % | ||||||||
Debt securities: | ||||||||||||||||
Domestic plans | 28 | % | 28 | % | 32 | % | 28 | % | ||||||||
Foreign plans | 37 | % | 36 | % | 38 | % | 37 | % | ||||||||
Cash and other: | ||||||||||||||||
Domestic plans | 2 | % | 3 | % | 2 | % | 2 | % | ||||||||
Foreign plans | 5 | % | 6 | % | 5 | % | 5 | % |
95
98
Other | Other | |||||||||||||||
Pension | Postretirement | Pension | Postretirement | |||||||||||||
2008 | $ | 54.6 | $11.1 | |||||||||||||
2009 | 37.3 | 11.9 | $ | 44.0 | $ | 11.3 | ||||||||||
2010 | 38.3 | 12.8 | 59.7 | 10.6 | ||||||||||||
2011 | 39.8 | 13.3 | 36.4 | 10.9 | ||||||||||||
2012 | 38.9 | 14.1 | 34.6 | 11.2 | ||||||||||||
2013 | �� | 31.6 | 11.5 | |||||||||||||
Five years thereafter | 201.0 | 81.3 | 189.5 | 60.2 |
96
(12) | Stock-Based Compensation |
Stock Options | Price Range | |||||||
Outstanding as of January 1, 2005 | 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 | |||||
Expired or cancelled | (186,100 | ) | $ | 22.12 - $54.22 | ||||
Exercised | (7,000 | ) | $22.12 | |||||
Outstanding as of December 31, 2006 | 2,790,305 | $ | 22.12 - $55.33 | |||||
Expired or cancelled | (690,675 | ) | $ | 22.12 - $55.33 | ||||
Exercised | (228,400 | ) | $ | 22.12 - $39.00 | ||||
Outstanding as of December 31, 2007 | 1,871,230 |
Stock Options | Price Range | |||||||
Outstanding as of January 1, 2006 | 2,983,405 | $ | 22.12 - $55.33 | |||||
Expired or cancelled | (186,100 | ) | $ | 22.12 - $54.22 | ||||
Exercised | (7,000 | ) | $22.12 | |||||
Outstanding as of December 31, 2006 | 2,790,305 | $ | 22.12 - $55.33 | |||||
Expired or cancelled | (690,675 | ) | $ | 22.12 - $55.33 | ||||
Exercised | (228,400 | ) | $ | 22.12 - $39.00 | ||||
Outstanding as of December 31, 2007 | 1,871,230 | $ | 22.12 - $55.33 | |||||
Expired or cancelled | (601,200 | ) | $ | 22.12 - $54.22 | ||||
Exercised | (1,850 | ) | $22.12 | |||||
Outstanding as of December 31, 2008 | 1,268,180 | $ | 22.12 - $55.33 | |||||
9997
Range of exercise prices | $ | 22.12 - 27.25 | $ | 35.93 - 39.83 | $ | 41.83 - 42.32 | $ | 54.22 - 55.33 | $ | 22.12 - 27.25 | $ | 35.93 - 39.83 | $ | 41.83 - 42.32 | $ | 55.33 | ||||||||||||||||
Options outstanding and exercisable: | ||||||||||||||||||||||||||||||||
Number outstanding and exercisable | 65,700 | 499,305 | 1,052,575 | 255,650 | 61,750 | 390,255 | 802,175 | 14,000 | ||||||||||||||||||||||||
Weighted average remaining contractual life (years) | 2.15 | 2.54 | 4.42 | 0.64 | 1.16 | 1.76 | 3.42 | 4.83 | ||||||||||||||||||||||||
Weighted average exercise price | $ | 22.50 | $ | 37.25 | $ | 41.83 | $ | 54.22 | $ | 22.53 | $ | 37.00 | $ | 41.83 | $ | 55.33 |
10098
Stock Appreciation | Restricted Stock | Performance | Stock Appreciation | Restricted Stock | Performance | |||||||||||||||||||
Rights(1) | Units | Shares(2) | Rights(1) | Units | Shares(2) | |||||||||||||||||||
Outstanding as of January 1, 2005 | — | 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 | |||||||||||||||||||||
Outstanding as of January 1, 2006 | 1,215,046 | 2,234,122 | 123,672 | |||||||||||||||||||||
Granted | 642,285 | 406,086 | 130,655 | 642,285 | 406,086 | 130,655 | ||||||||||||||||||
Expired or cancelled | (91,002 | ) | (146,045 | ) | (84,418 | ) | (91,002 | ) | (146,045 | ) | (84,418 | ) | ||||||||||||
Distributed or exercised | (14,475 | ) | (529,592 | ) | — | (14,475 | ) | (529,592 | ) | — | ||||||||||||||
Outstanding as of December 31, 2006 | 1,751,854 | 1,964,571 | 169,909 | 1,751,854 | 1,964,571 | 169,909 | ||||||||||||||||||
Granted | 685,179 | 468,823 | 104,928 | 685,179 | 468,823 | 104,928 | ||||||||||||||||||
Expired or cancelled | (48,149 | ) | (68,705 | ) | (16,812 | ) | (48,149 | ) | (68,705 | ) | (16,812 | ) | ||||||||||||
Distributed or exercised | (209,209 | ) | (732,702 | ) | — | (209,209 | ) | (732,702 | ) | — | ||||||||||||||
Outstanding as of December 31, 2007 | 2,179,675 | 1,631,987 | 258,025 | 2,179,675 | 1,631,987 | 258,025 | ||||||||||||||||||
Granted | 510,550 | 286,030 | — | |||||||||||||||||||||
Expired or cancelled(3) | (158,515 | ) | (162,779 | ) | (47,316 | ) | ||||||||||||||||||
Distributed or exercised | (98,965 | ) | (714,498 | ) | (42,013 | ) | ||||||||||||||||||
Outstanding as of December 31, 2008 | 2,432,745 | 1,040,740 | 168,696 | |||||||||||||||||||||
(1) | ||
(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 performance shares that are paid out in shares of common stock upon satisfaction of the performance criteria at the end of the three-year performance period. | |
(3) | In 2008, eligible plan participants were provided the opportunity to exchange up to 50% of certain of their existing restricted stock units, in 25% increments, for either notional cash account credits or cash-settled stock appreciation rights. With respect to the notional cash account credit alternative, each eligible restricted stock unit was exchanged for a notional cash account credit in the amount of the closing stock price on the date of exchange. With respect to the cash-settled stock appreciation right alternative, each eligible restricted stock unit was exchanged for cash-settled stock appreciation rights covering three to four shares of the Company’s common stock. The notional cash account credits and the cash-settled stock appreciation rights vest in accordance with the terms of the original restricted stock units, generally three years from the original grant date. In connection with these transactions, restricted stock units reflected as “expired or cancelled” in 2008 include 75,084 of exchanged units. |
Stock Appreciation | Weighed Average Grant | Stock Appreciation | Weighed Average Grant | |||||||||||||
Rights | Date Fair Value | Rights | Date Fair Value | |||||||||||||
Nonvested as of January 1, 2007 | 1,390,998 | $ | 11.11 | |||||||||||||
Nonvested as of January 1, 2008 | 1,668,742 | $ | 12.59 | |||||||||||||
Granted | 685,179 | 13.80 | 510,550 | 1.13 | ||||||||||||
Vested | (374,357 | ) | 9.30 | (323,973 | ) | 9.31 | ||||||||||
Expired or cancelled | (33,078 | ) | 12.31 | (158,515 | ) | 12.33 | ||||||||||
Outstanding as of December 31, 2007 | 1,668,742 | 12.59 | ||||||||||||||
Nonvested as of December 31, 2008 | 1,696,804 | 9.80 | ||||||||||||||
99
101
(13) | Commitments and Contingencies |
100
102
101
Balance as of January 1, 2006 | $ | 32.4 | ||||||
Expense, net | 17.5 | |||||||
Settlements | (12.4 | ) | ||||||
Foreign currency translation and other | 3.4 | |||||||
Balance as of December 31, 2006 | 40.9 | |||||||
Balance as of January 1, 2007 | $ | 40.9 | ||||||
Expense, net | 12.5 | 12.5 | ||||||
Settlements | (14.2 | ) | (14.2 | ) | ||||
Foreign currency translation and other | 1.5 | 1.5 | ||||||
Balance as of December 31, 2007 | $ | 40.7 | 40.7 | |||||
Expense, net and changes in estimates | (3.4 | ) | ||||||
Settlements | (12.0 | ) | ||||||
Foreign currency translation and other | (3.7 | ) | ||||||
Balance as of December 31, 2008 | $ | 21.6 | ||||||
103
104
102
105
103
106
2008 | $ | 86.0 | ||||||
2009 | 70.7 | $ | 77.3 | |||||
2010 | 53.1 | 61.1 | ||||||
2011 | 40.3 | 46.1 | ||||||
2012 | 32.0 | 33.5 | ||||||
2013 and thereafter | 75.9 | |||||||
2013 | 29.1 | |||||||
2014 and thereafter | 58.2 | |||||||
Total | $ | 358.0 | $ | 305.3 | ||||
104
(14) | Segment Reporting |
107
2007 | 2008 | |||||||||||||||||||||||||||||||||||
Electrical | Electrical | |||||||||||||||||||||||||||||||||||
Seating | and Electronic | Interior | Other | Consolidated | Seating | and Electronic | Other | Consolidated | ||||||||||||||||||||||||||||
Revenues from external customers | $ | 12,206.1 | $ | 3,100.0 | $ | 688.9 | $ | — | $ | 15,995.0 | $ | 10,726.9 | $ | 2,843.6 | $ | — | $ | 13,570.5 | ||||||||||||||||||
Segment earnings(1) | 758.7 | 40.8 | 8.2 | (233.9 | ) | 573.8 | 386.7 | 44.7 | (200.6 | ) | 230.8 | |||||||||||||||||||||||||
Depreciation and amortization | 169.7 | 110.3 | 2.3 | 14.6 | 296.9 | 176.2 | 108.7 | 14.4 | 299.3 | |||||||||||||||||||||||||||
Capital expenditures | 114.9 | 80.3 | 1.2 | 5.8 | 202.2 | 106.3 | 60.8 | 0.6 | 167.7 | |||||||||||||||||||||||||||
Total assets | 4,292.6 | 2,241.8 | — | 1,266.0 | 7,800.4 | 3,349.5 | 1,385.7 | 2,137.7 | 6,872.9 |
2006 | ||||||||||||||||||||
Electrical | ||||||||||||||||||||
Seating | and Electronic | Interior | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,624.8 | $ | 2,996.9 | $ | 3,217.2 | $ | — | $ | 17,838.9 | ||||||||||
Segment earnings(1) | 604.0 | 102.5 | (183.8 | ) | (241.7 | ) | 281.0 | |||||||||||||
Depreciation and amortization | 167.3 | 110.1 | 93.8 | 21.0 | 392.2 | |||||||||||||||
Capital expenditures | 161.1 | 77.0 | 98.7 | 10.8 | 347.6 | |||||||||||||||
Total assets | 4,040.1 | 2,214.4 | 515.3 | 1,080.7 | 7,850.5 |
105
2005 | ||||||||||||||||||||
Electrical | ||||||||||||||||||||
Seating | and Electronic | Interior | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,035.0 | $ | 2,956.6 | $ | 3,097.6 | $ | — | $ | 17,089.2 | ||||||||||
Segment earnings(1) | 323.3 | 180.0 | (191.1 | ) | (206.8 | ) | 105.4 | |||||||||||||
Depreciation and amortization | 150.7 | 106.0 | 116.6 | 20.1 | 393.4 | |||||||||||||||
Capital expenditures | 229.2 | 102.9 | 190.9 | 45.4 | 568.4 | |||||||||||||||
Total assets | 3,985.2 | 2,122.4 | 1,506.8 | 674.0 | 8,288.4 |
2007 | ||||||||||||||||||||
Electrical | ||||||||||||||||||||
Seating | and Electronic | Interior | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 12,206.1 | $ | 3,100.0 | $ | 688.9 | $ | — | $ | 15,995.0 | ||||||||||
Segment earnings(1) | 758.7 | 40.8 | 8.2 | (233.9 | ) | 573.8 | ||||||||||||||
Depreciation and amortization | 169.7 | 110.3 | 2.3 | 14.6 | 296.9 | |||||||||||||||
Capital expenditures | 114.9 | 80.3 | 1.2 | 5.8 | 202.2 | |||||||||||||||
Total assets | 4,292.6 | 2,241.8 | — | 1,266.0 | 7,800.4 | |||||||||||||||
2006 | ||||||||||||||||||||
Electrical | ||||||||||||||||||||
Seating | and Electronic | Interior | Other | Consolidated | ||||||||||||||||
Revenues from external customers | $ | 11,624.8 | $ | 2,996.9 | $ | 3,217.2 | $ | — | $ | 17,838.9 | ||||||||||
Segment earnings(1) | 604.0 | 102.5 | (183.8 | ) | (241.7 | ) | 281.0 | |||||||||||||
Depreciation and amortization | 167.3 | 110.1 | 93.8 | 21.0 | 392.2 | |||||||||||||||
Capital expenditures | 161.1 | 77.0 | 98.7 | 10.8 | 347.6 | |||||||||||||||
Total assets | 4,040.1 | 2,214.4 | 515.3 | 1,080.7 | 7,850.5 |
(1) | See definition above. |
108
For the Year Ended December 31, | 2007 | 2006 | 2005 | |||||||||
Segment earnings | $ | 807.7 | $ | 522.7 | $ | 312.2 | ||||||
Corporate and geographic headquarters and elimination of intercompany activity (“Other”) | (233.9 | ) | (241.7 | ) | (206.8 | ) | ||||||
Income before goodwill impairment charges, divestiture of Interior business, interest, other expense, 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 | 573.8 | 281.0 | 105.4 | |||||||||
Goodwill impairment charges | — | 2.9 | 1,012.8 | |||||||||
Divestiture of Interior business | 10.7 | 636.0 | — | |||||||||
Interest expense | 199.2 | 209.8 | 183.2 | |||||||||
Other expense, net | 40.7 | 85.7 | 38.0 | |||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | $ | 323.2 | $ | (653.4 | ) | $ | (1,128.6 | ) | ||||
109106
For the Year Ended December 31, | 2008 | 2007 | 2006 | |||||||||
Segment earnings | $ | 431.4 | $ | 807.7 | $ | 522.7 | ||||||
Corporate and geographic headquarters and elimination of intercompany activity (“Other”) | (200.6 | ) | (233.9 | ) | (241.7 | ) | ||||||
Income before goodwill impairment charges, divestiture of Interior business, interest expense, other expense, 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 | 230.8 | 573.8 | 281.0 | |||||||||
Goodwill impairment charges | 530.0 | — | 2.9 | |||||||||
Divestiture of Interior business | — | 10.7 | 636.0 | |||||||||
Interest expense | 190.3 | 199.2 | 209.8 | |||||||||
Other expense, net | 51.9 | 40.7 | 85.7 | |||||||||
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 | $ | (541.4 | ) | $ | 323.2 | $ | (653.4 | ) | ||||
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Revenues from external customers: | ||||||||||||||||||||||||
United States | $ | 4,526.8 | $ | 6,624.3 | $ | 6,252.2 | $ | 2,820.0 | $ | 4,526.8 | $ | 6,624.3 | ||||||||||||
Canada | 1,148.8 | 1,375.3 | 1,374.1 | 716.3 | 1,148.8 | 1,375.3 | ||||||||||||||||||
Germany | 2,336.9 | 2,034.3 | 2,123.4 | 2,516.0 | 2,336.9 | 2,034.3 | ||||||||||||||||||
Mexico | 1,542.8 | 1,789.5 | 1,595.6 | 1,337.4 | 1,542.8 | 1,789.5 | ||||||||||||||||||
Other countries | 6,439.7 | 6,015.5 | 5,743.9 | 6,180.8 | 6,439.7 | 6,015.5 | ||||||||||||||||||
Total | $ | 15,995.0 | $ | 17,838.9 | $ | 17,089.2 | $ | 13,570.5 | $ | 15,995.0 | $ | 17,838.9 | ||||||||||||
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Tangible long-lived assets: | ||||||||||||||||
United States | $ | 406.6 | $ | 472.6 | $ | 311.7 | $ | 406.6 | ||||||||
Canada | 42.4 | 51.5 | 26.0 | 42.4 | ||||||||||||
Germany | 175.4 | 161.3 | 158.3 | 175.4 | ||||||||||||
Mexico | 184.1 | 168.2 | 173.6 | 184.1 | ||||||||||||
Other countries | 584.2 | 618.1 | 543.9 | 584.2 | ||||||||||||
Total | $ | 1,392.7 | $ | 1,471.7 | $ | 1,213.5 | $ | 1,392.7 | ||||||||
107
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
General Motors Corporation | 28.8 | % | 31.9 | % | 28.3 | % | 23.1 | % | 28.8 | % | 31.9 | % | ||||||||||||
Ford Motor Company | 20.6 | 22.6 | 24.7 | 19.1 | 20.6 | 22.6 | ||||||||||||||||||
DaimlerChrysler | N/A | 10.3 | 11.4 | N/A | N/A | 10.3 | ||||||||||||||||||
BMW | 9.9 | 7.4 | 7.6 | 11.5 | 9.9 | 7.4 |
(1) | ||
(2) | Chrysler was divested by |
(15) | Financial Instruments |
110
108
For the Year Ended December 31, | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
Proceeds from (repayments of) securitizations | $ | — | $ | (150.0 | ) | $ | 150.0 | |||||||||||||||||
Repayments of securitizations | $ | — | $ | — | $ | (150.0 | ) | |||||||||||||||||
Proceeds from collections reinvested in securitizations | 3,509.8 | 4,476.2 | 4,288.1 | 1,214.4 | 3,509.8 | 4,476.2 | ||||||||||||||||||
Servicing fees received | 4.8 | 6.1 | 5.3 | 1.7 | 4.8 | 6.1 |
111
109
112
110
Thirteen Weeks Ended | ||||||||||||||||
March 31, | June 30, | September 29, | December 31, | |||||||||||||
2007 | 2007 | 2007 | 2007 | |||||||||||||
(In millions except per share data) | ||||||||||||||||
Net sales | $ | 4,406.1 | $ | 4,155.3 | $ | 3,574.6 | $ | 3,859.0 | ||||||||
Gross profit | 310.9 | 337.6 | 267.3 | 232.7 | ||||||||||||
Divestiture of Interior business | 25.6 | (0.7 | ) | (17.1 | ) | 2.9 | ||||||||||
Net income | 49.9 | 123.6 | 41.0 | 27.0 | ||||||||||||
Basic net income per share | 0.65 | 1.61 | 0.53 | 0.35 | ||||||||||||
Diluted net income per share | 0.64 | 1.58 | 0.52 | 0.34 |
113
Thirteen Weeks Ended | ||||||||||||||||
April 1, | July 1, | September 30, | December 31, | |||||||||||||
2006 | 2006 | 2006 | 2006 | |||||||||||||
Net sales | $ | 4,678.5 | $ | 4,810.2 | $ | 4,069.7 | $ | 4,280.5 | ||||||||
Gross profit | 219.2 | 284.1 | 186.8 | 237.6 | ||||||||||||
Goodwill impairment charges | — | 2.9 | — | — | ||||||||||||
Divestiture of Interior business | — | — | 28.7 | 607.3 | ||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | 15.0 | (6.4 | ) | (74.0 | ) | (645.0 | ) | |||||||||
Net income (loss) | 17.9 | (6.4 | ) | (74.0 | ) | (645.0 | ) | |||||||||
Basic net income (loss) per share before cumulative effect of a change in accounting principle | 0.22 | (0.10 | ) | (1.10 | ) | (8.90 | ) | |||||||||
Basic net income (loss) per share | 0.27 | (0.10 | ) | (1.10 | ) | (8.90 | ) | |||||||||
Diluted net income (loss) per share before cumulative effect of a change in accounting principle | 0.22 | (0.10 | ) | (1.10 | ) | (8.90 | ) | |||||||||
Diluted net income (loss) per share | 0.26 | (0.10 | ) | (1.10 | ) | (8.90 | ) |
111
2008 | ||||||||||||||||||||
Asset | Valuation | |||||||||||||||||||
Frequency | (Liability) | Technique | Level 1 | Level 2 | Level 3 | |||||||||||||||
Derivative instruments | Recurring | $ | (94.6 | ) | Market/Income | $ | — | $ | 7.1 | $ | (101.7 | ) | ||||||||
Equity method investment | Non-recurring | 16.6 | Income | — | — | 16.6 | ||||||||||||||
Goodwill | Non-recurring | 232.3 | Income | — | — | 232.3 |
Balance as of January 1, 2008 | $ | — | ||
Transfers into Level 3 | (101.7 | ) | ||
Balance as of December 31, 2008 | $ | (101.7 | ) | |
(16) | Quarterly Financial Data (unaudited) |
Thirteen Weeks Ended | ||||||||||||||||
March 29, | June 28, | September 27, | December 31, | |||||||||||||
2008 | 2008 | 2008 | 2008 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Net sales | $ | 3,857.6 | $ | 3,979.0 | $ | 3,133.5 | $ | 2,600.4 | ||||||||
Gross profit | 296.1 | 261.1 | 128.7 | 58.1 | ||||||||||||
Goodwill impairment charges | — | — | — | 530.0 | ||||||||||||
Net income (loss) | 78.2 | 18.3 | (98.2 | ) | (688.2 | ) | ||||||||||
Basic net income (loss) per share | 1.01 | 0.24 | (1.27 | ) | (8.91 | ) | ||||||||||
Diluted net income (loss) per share | 1.00 | 0.23 | (1.27 | ) | (8.91 | ) | ||||||||||
Thirteen Weeks Ended | ||||||||||||||||
March 31, | June 30, | September 29, | December 31, | |||||||||||||
2007 | 2007 | 2007 | 2007 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Net sales | $ | 4,406.1 | $ | 4,155.3 | $ | 3,574.6 | $ | 3,859.0 | ||||||||
Gross profit | 310.9 | 337.6 | 267.3 | 232.7 | ||||||||||||
Divestiture of Interior business | 25.6 | (0.7 | ) | (17.1 | ) | 2.9 | ||||||||||
Net income | 49.9 | 123.6 | 41.0 | 27.0 | ||||||||||||
Basic net income per share | 0.65 | 1.61 | 0.53 | 0.35 | ||||||||||||
Diluted net income per share | 0.64 | 1.58 | 0.52 | 0.34 |
112
(17) | Accounting Pronouncements |
114
113
(18) | Supplemental Guarantor Condensed Consolidating Financial Statements |
December 31, 2008 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,310.6 | $ | 3.9 | $ | 277.6 | $ | — | $ | 1,592.1 | ||||||||||
Accounts receivable | 0.9 | 155.4 | 1,054.4 | — | 1,210.7 | |||||||||||||||
Inventories | 5.6 | 111.5 | 415.1 | — | 532.2 | |||||||||||||||
Other | 30.3 | 23.3 | 285.6 | — | 339.2 | |||||||||||||||
Total current assets | 1,347.4 | 294.1 | 2,032.7 | — | 3,674.2 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Property, plant and equipment, net | 131.3 | 165.3 | 916.9 | — | 1,213.5 | |||||||||||||||
Goodwill, net | 454.5 | 290.1 | 736.0 | — | 1,480.6 | |||||||||||||||
Investments in subsidiaries | 3,607.6 | 3,940.6 | — | (7,548.2 | ) | — | ||||||||||||||
Other | 218.8 | 23.1 | 262.7 | — | 504.6 | |||||||||||||||
Total long-term assets | 4,412.2 | 4,419.1 | 1,915.6 | (7,548.2 | ) | 3,198.7 | ||||||||||||||
$ | 5,759.6 | $ | 4,713.2 | $ | 3,948.3 | $ | (7,548.2 | ) | $ | 6,872.9 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | 2.1 | $ | 40.4 | $ | — | $ | 42.5 | ||||||||||
Primary credit facility | 2,177.0 | — | — | — | 2,177.0 | |||||||||||||||
Accounts payable and drafts | 68.7 | 163.9 | 1,221.3 | — | 1,453.9 | |||||||||||||||
Accrued liabilities | 129.7 | 188.7 | 613.7 | — | 932.1 | |||||||||||||||
Current portion of long-term debt | — | — | 4.3 | — | 4.3 | |||||||||||||||
Total current liabilities | 2,375.4 | 354.7 | 1,879.7 | — | 4,609.8 | |||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt | 1,291.8 | — | 11.2 | — | 1,303.0 | |||||||||||||||
Intercompany accounts, net | 1,728.5 | 933.1 | (2,661.6 | ) | — | — | ||||||||||||||
Other | 165.0 | 155.7 | 440.5 | — | 761.2 | |||||||||||||||
Total long-term liabilities | 3,185.3 | 1,088.8 | (2,209.9 | ) | — | 2,064.2 | ||||||||||||||
STOCKHOLDERS’ EQUITY | 198.9 | 3,269.7 | 4,278.5 | (7,548.2 | ) | 198.9 | ||||||||||||||
$ | 5,759.6 | $ | 4,713.2 | $ | 3,948.3 | $ | (7,548.2 | ) | $ | 6,872.9 | ||||||||||
114
December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 189.9 | $ | 6.1 | $ | 405.3 | $ | — | $ | 601.3 | ||||||||||
Accounts receivable | 10.0 | 229.8 | 1,907.8 | — | 2,147.6 | |||||||||||||||
Inventories | 11.7 | 104.8 | 489.0 | — | 605.5 | |||||||||||||||
Other | 67.4 | 36.3 | 259.9 | — | 363.6 | |||||||||||||||
Total current assets | 279.0 | 377.0 | 3,062.0 | — | 3,718.0 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Property, plant and equipment, net | 170.5 | 220.5 | 1,001.7 | — | 1,392.7 | |||||||||||||||
Goodwill, net | 454.5 | 551.2 | 1,048.3 | — | 2,054.0 | |||||||||||||||
Investments in subsidiaries | 4,558.7 | 3,703.2 | — | (8,261.9 | ) | — | ||||||||||||||
Other | 240.1 | 17.3 | 378.3 | — | 635.7 | |||||||||||||||
Total long-term assets | 5,423.8 | 4,492.2 | 2,428.3 | (8,261.9 | ) | 4,082.4 | ||||||||||||||
$ | 5,702.8 | $ | 4,869.2 | $ | 5,490.3 | $ | (8,261.9 | ) | $ | 7,800.4 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | 2.1 | $ | 11.8 | $ | — | $ | 13.9 | ||||||||||
Accounts payable and drafts | 117.3 | 291.7 | 1,854.8 | — | 2,263.8 | |||||||||||||||
Accrued liabilities | 202.3 | 219.1 | 808.7 | — | 1,230.1 | |||||||||||||||
Current portion of long-term debt | 87.0 | — | 9.1 | — | 96.1 | |||||||||||||||
Total current liabilities | 406.6 | 512.9 | 2,684.4 | — | 3,603.9 | |||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt | 2,331.0 | — | 13.6 | — | 2,344.6 | |||||||||||||||
Intercompany accounts, net | 1,751.8 | (7.1 | ) | (1,744.7 | ) | — | — | |||||||||||||
Other | 122.7 | 124.7 | 513.8 | — | 761.2 | |||||||||||||||
Total long-term liabilities | 4,205.5 | 117.6 | (1,217.3 | ) | — | 3,105.8 | ||||||||||||||
STOCKHOLDERS’ EQUITY | 1,090.7 | 4,238.7 | 4,023.2 | (8,261.9 | ) | 1,090.7 | ||||||||||||||
$ | 5,702.8 | $ | 4,869.2 | $ | 5,490.3 | $ | (8,261.9 | ) | $ | 7,800.4 | ||||||||||
115
For the Year Ended December 31, 2008 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 479.7 | $ | 3,392.1 | $ | 13,317.3 | $ | (3,618.6 | ) | $ | 13,570.5 | |||||||||
Cost of sales | 565.1 | 3,331.9 | 12,548.1 | (3,618.6 | ) | 12,826.5 | ||||||||||||||
Selling, general and administrative expenses | 153.3 | 22.5 | 337.4 | — | 513.2 | |||||||||||||||
Goodwill impairment charges | — | 261.0 | 269.0 | — | 530.0 | |||||||||||||||
Interest (income) expense | 157.7 | 69.3 | (36.7 | ) | — | 190.3 | ||||||||||||||
Intercompany (income) expense, net | (193.7 | ) | 16.6 | 177.1 | — | — | ||||||||||||||
Other (income) expense, net | (5.4 | ) | 6.7 | 50.6 | — | 51.9 | ||||||||||||||
Loss before provision for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | (197.3 | ) | (315.9 | ) | (28.2 | ) | — | (541.4 | ) | |||||||||||
Provision for income taxes | 11.5 | 11.0 | 63.3 | — | 85.8 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 25.5 | — | 25.5 | |||||||||||||||
Equity in net (income) loss of affiliates | 4.4 | (4.1 | ) | 36.9 | — | 37.2 | ||||||||||||||
Equity in net (income) loss of subsidiaries | 476.7 | (76.7 | ) | — | (400.0 | ) | — | |||||||||||||
Net loss | $ | (689.9 | ) | $ | (246.1 | ) | $ | (153.9 | ) | $ | 400.0 | $ | (689.9 | ) | ||||||
December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 189.9 | $ | 6.1 | $ | 405.3 | $ | — | $ | 601.3 | ||||||||||
Accounts receivable | 10.0 | 229.8 | 1,907.8 | — | 2,147.6 | |||||||||||||||
Inventories | 11.7 | 104.8 | 489.0 | — | 605.5 | |||||||||||||||
Other | 67.4 | 36.3 | 259.9 | — | 363.6 | |||||||||||||||
Total current assets | 279.0 | 377.0 | 3,062.0 | — | 3,718.0 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Property, plant and equipment, net | 170.5 | 220.5 | 1,001.7 | — | 1,392.7 | |||||||||||||||
Goodwill, net | 454.5 | 551.2 | 1,048.3 | — | 2,054.0 | |||||||||||||||
Investments in subsidiaries | 4,558.7 | 3,599.2 | — | (8,157.9 | ) | — | ||||||||||||||
Other | 240.1 | 17.3 | 378.3 | — | 635.7 | |||||||||||||||
Total long-term assets | 5,423.8 | 4,388.2 | 2,428.3 | (8,157.9 | ) | 4,082.4 | ||||||||||||||
$ | 5,702.8 | $ | 4,765.2 | $ | 5,490.3 | $ | (8,157.9 | ) | $ | 7,800.4 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | 2.1 | $ | 11.8 | $ | — | $ | 13.9 | ||||||||||
Accounts payable and drafts | 117.3 | 291.7 | 1,854.8 | — | 2,263.8 | |||||||||||||||
Other accrued liabilities | 202.3 | 219.1 | 808.7 | — | 1,230.1 | |||||||||||||||
Current portion of long-term debt | 87.0 | — | 9.1 | — | 96.1 | |||||||||||||||
Total current liabilities | 406.6 | 512.9 | 2,684.4 | — | 3,603.9 | |||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt | 2,331.0 | — | 13.6 | — | 2,344.6 | |||||||||||||||
Intercompany accounts, net | 1,751.8 | (7.1 | ) | (1,744.7 | ) | — | — | |||||||||||||
Other | 122.7 | 124.7 | 513.8 | — | 761.2 | |||||||||||||||
Total long-term liabilities | 4,205.5 | 117.6 | (1,217.3 | ) | — | 3,105.8 | ||||||||||||||
STOCKHOLDERS’ EQUITY | 1,090.7 | 4,134.7 | 4,023.2 | (8,157.9 | ) | 1,090.7 | ||||||||||||||
$ | 5,702.8 | $ | 4,765.2 | $ | 5,490.3 | $ | (8,157.9 | ) | $ | 7,800.4 | ||||||||||
For the Year Ended December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 963.2 | $ | 5,004.7 | $ | 14,150.3 | $ | (4,123.2 | ) | $ | 15,995.0 | |||||||||
Cost of sales | 970.1 | 4,819.3 | 13,180.3 | (4,123.2 | ) | 14,846.5 | ||||||||||||||
Selling, general and administrative expenses | 195.4 | 29.7 | 349.6 | — | 574.7 | |||||||||||||||
Divestiture of Interior business | (31.8 | ) | 28.1 | 14.4 | — | 10.7 | ||||||||||||||
Interest (income) expense | 99.1 | 112.3 | (12.2 | ) | — | 199.2 | ||||||||||||||
Intercompany (income) expense, net | (160.8 | ) | 30.0 | 130.8 | — | — | ||||||||||||||
Other (income) expense, net | 10.0 | 39.3 | (8.6 | ) | — | 40.7 | ||||||||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net income of affiliates and subsidiaries | (118.8 | ) | (54.0 | ) | 496.0 | — | 323.2 | |||||||||||||
Provision for income taxes | 20.7 | 1.5 | 67.7 | — | 89.9 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | 0.8 | 24.8 | — | 25.6 | |||||||||||||||
Equity in net income of affiliates | (7.2 | ) | (1.5 | ) | (25.1 | ) | — | (33.8 | ) | |||||||||||
Equity in net income of subsidiaries | (373.8 | ) | (176.4 | ) | — | 550.2 | — | |||||||||||||
Net income | $ | 241.5 | $ | 121.6 | $ | 428.6 | $ | (550.2 | ) | $ | 241.5 | |||||||||
116
December 31, 2006 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 | ||||||||||
Accounts receivable | 12.7 | 243.5 | 1,750.7 | — | 2,006.9 | |||||||||||||||
Inventories | 15.2 | 136.9 | 429.4 | — | 581.5 | |||||||||||||||
Current assets of business held for sale | 77.1 | 217.1 | 133.6 | — | 427.8 | |||||||||||||||
Other | 45.9 | 29.9 | 295.6 | — | 371.4 | |||||||||||||||
Total current assets | 346.7 | 631.4 | 2,912.2 | — | 3,890.3 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Property, plant and equipment, net | 230.9 | 284.1 | 956.7 | — | 1,471.7 | |||||||||||||||
Goodwill, net | 454.5 | 551.1 | 991.1 | — | 1,996.7 | |||||||||||||||
Investments in subsidiaries | 3,691.2 | 3,258.7 | — | (6,949.9 | ) | — | ||||||||||||||
Other | 233.7 | 24.1 | 234.0 | — | 491.8 | |||||||||||||||
Total long-term assets | 4,610.3 | 4,118.0 | 2,181.8 | (6,949.9 | ) | 3,960.2 | ||||||||||||||
$ | 4,957.0 | $ | 4,749.4 | $ | 5,094.0 | $ | (6,949.9 | ) | $ | 7,850.5 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 39.3 | $ | — | $ | 39.3 | ||||||||||
Accounts payable and drafts | 157.0 | 395.7 | 1,764.7 | — | 2,317.4 | |||||||||||||||
Other accrued liabilities | 322.3 | 145.8 | 631.2 | — | 1,099.3 | |||||||||||||||
Current liabilities of business held for sale | 60.4 | 226.1 | 119.2 | — | 405.7 | |||||||||||||||
Current portion of long-term debt | 6.0 | — | 19.6 | — | 25.6 | |||||||||||||||
Total current liabilities | 545.7 | 767.6 | 2,574.0 | — | 3,887.3 | |||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt | 2,413.2 | — | 21.3 | — | 2,434.5 | |||||||||||||||
Long-term liabilities of business held for sale | — | 0.1 | 48.4 | — | 48.5 | |||||||||||||||
Intercompany accounts, net | 1,193.7 | 503.1 | (1,696.8 | ) | — | — | ||||||||||||||
Other | 202.4 | 176.5 | 499.3 | — | 878.2 | |||||||||||||||
Total long-term liabilities | 3,809.3 | 679.7 | (1,127.8 | ) | — | 3,361.2 | ||||||||||||||
STOCKHOLDERS’ EQUITY | 602.0 | 3,302.1 | 3,647.8 | (6,949.9 | ) | 602.0 | ||||||||||||||
$ | 4,957.0 | $ | 4,749.4 | $ | 5,094.0 | $ | (6,949.9 | ) | $ | 7,850.5 | ||||||||||
For the Year Ended December 31, 2006 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,580.3 | $ | 6,889.8 | $ | 12,729.4 | $ | (3,360.6 | ) | $ | 17,838.9 | |||||||||
Cost of sales | 1,691.5 | 6,755.6 | 11,824.7 | (3,360.6 | ) | 16,911.2 | ||||||||||||||
Selling, general and administrative expenses | 240.5 | 75.0 | 331.2 | — | 646.7 | |||||||||||||||
Goodwill impairment charges | — | 2.9 | — | — | 2.9 | |||||||||||||||
Divestiture of Interior business | 240.4 | 259.6 | 136.0 | — | 636.0 | |||||||||||||||
Interest (income) expense | (114.4 | ) | 126.1 | 198.1 | — | 209.8 | ||||||||||||||
Intercompany (income) expense, net | (281.2 | ) | 77.4 | 203.8 | — | — | ||||||||||||||
Other expense, net | 27.6 | 48.8 | 9.3 | — | 85.7 | |||||||||||||||
Income (loss) before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | (224.1 | ) | (455.6 | ) | 26.3 | — | (653.4 | ) | ||||||||||||
Provision (benefit) for income taxes | 5.4 | (67.4 | ) | 116.9 | — | 54.9 | ||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 18.3 | — | 18.3 | |||||||||||||||
Equity in net (income) loss of affiliates | (12.7 | ) | (5.2 | ) | 1.7 | — | (16.2 | ) | ||||||||||||
Equity in net (income) loss of subsidiaries | 493.6 | (21.8 | ) | — | (471.8 | ) | — | |||||||||||||
Loss before cumulative effect of a change in accounting principle | (710.4 | ) | (361.2 | ) | (110.6 | ) | 471.8 | (710.4 | ) | |||||||||||
Cumulative effect of a change in accounting principle | 2.9 | — | — | — | 2.9 | |||||||||||||||
Net loss | $ | (707.5 | ) | $ | (361.2 | ) | $ | (110.6 | ) | $ | 471.8 | $ | (707.5 | ) | ||||||
117
For the Year Ended December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 963.2 | $ | 5,004.7 | $ | 14,150.3 | $ | (4,123.2 | ) | $ | 15,995.0 | |||||||||
Cost of sales | 970.1 | 4,819.3 | 13,180.3 | (4,123.2 | ) | 14,846.5 | ||||||||||||||
Selling, general and administrative expenses | 195.4 | 29.7 | 349.6 | — | 574.7 | |||||||||||||||
Divestiture of Interior business | (31.8 | ) | 28.1 | 14.4 | — | 10.7 | ||||||||||||||
Interest (income) expense | 99.1 | 112.3 | (12.2 | ) | — | 199.2 | ||||||||||||||
Intercompany (income) expense, net | (160.8 | ) | 30.0 | 130.8 | — | — | ||||||||||||||
Other (income) expense, net | 10.0 | 39.3 | (8.6 | ) | — | 40.7 | ||||||||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net income of affiliates and subsidiaries | (118.8 | ) | (54.0 | ) | 496.0 | — | 323.2 | |||||||||||||
Provision for income taxes | 20.7 | 1.5 | 67.7 | — | 89.9 | |||||||||||||||
Minority interests in consolidated subsidiaries | — | 0.8 | 24.8 | — | 25.6 | |||||||||||||||
Equity in net income of affiliates | (7.2 | ) | (1.5 | ) | (25.1 | ) | — | (33.8 | ) | |||||||||||
Equity in net income of subsidiaries | (373.8 | ) | (158.0 | ) | — | 531.8 | — | |||||||||||||
Net income | $ | 241.5 | $ | 103.2 | $ | 428.6 | $ | (531.8 | ) | $ | 241.5 | |||||||||
For the Year Ended December 31, 2006 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | 1,580.3 | $ | 6,889.8 | $ | 12,729.4 | $ | (3,360.6 | ) | $ | 17,838.9 | |||||||||
Cost of sales | 1,691.5 | 6,755.6 | 11,824.7 | (3,360.6 | ) | 16,911.2 | ||||||||||||||
Selling, general and administrative expenses | 240.5 | 75.0 | 331.2 | — | 646.7 | |||||||||||||||
Goodwill impairment charges | — | 2.9 | — | — | 2.9 | |||||||||||||||
Divestiture of Interior business | 240.4 | 259.6 | 136.0 | — | 636.0 | |||||||||||||||
Interest (income) expense | (114.4 | ) | 126.1 | 198.1 | — | 209.8 | ||||||||||||||
Intercompany (income) expense, net | (281.2 | ) | 77.4 | 203.8 | — | — | ||||||||||||||
Other expense, net | 27.6 | 48.8 | 9.3 | — | 85.7 | |||||||||||||||
Income (loss) before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | (224.1 | ) | (455.6 | ) | 26.3 | — | (653.4 | ) | ||||||||||||
Provision (benefit) for income taxes | 5.4 | (67.4 | ) | 116.9 | — | 54.9 | ||||||||||||||
Minority interests in consolidated subsidiaries | — | — | 18.3 | — | 18.3 | |||||||||||||||
Equity in net (income) loss of affiliates | (12.7 | ) | (5.2 | ) | 1.7 | — | (16.2 | ) | ||||||||||||
Equity in net (income) loss of subsidiaries | 493.6 | (80.9 | ) | — | (412.7 | ) | — | |||||||||||||
Loss before cumulative effect of a change in accounting principle | (710.4 | ) | (302.1 | ) | (110.6 | ) | 412.7 | (710.4 | ) | |||||||||||
Cumulative effect of a change in accounting principle | 2.9 | — | — | — | 2.9 | |||||||||||||||
Net loss | $ | (707.5 | ) | $ | (302.1 | ) | $ | (110.6 | ) | $ | 412.7 | $ | (707.5 | ) | ||||||
For the Year Ended December 31, 2008 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (182.7 | ) | $ | (154.6 | ) | $ | 481.5 | $ | — | $ | 144.2 | ||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (5.9 | ) | (12.4 | ) | (149.4 | ) | — | (167.7 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | — | (4.8 | ) | (23.1 | ) | — | (27.9 | ) | ||||||||||||
Net proceeds from disposition of businesses and other assets | 3.7 | 41.3 | 6.9 | — | 51.9 | |||||||||||||||
Other, net | (10.2 | ) | (14.1 | ) | 23.6 | — | (0.7 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (12.4 | ) | 10.0 | (142.0 | ) | — | (144.4 | ) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Repayment/repurchase of senior notes | (133.5 | ) | — | — | — | (133.5 | ) | |||||||||||||
Primary credit facility borrowings, net | 1,186.0 | — | — | — | 1,186.0 | |||||||||||||||
Other long-term debt repayments, net | (17.8 | ) | — | (5.1 | ) | — | (22.9 | ) | ||||||||||||
Short-term debt borrowings, net | — | — | 12.6 | — | 12.6 | |||||||||||||||
Change in intercompany accounts | 313.4 | 127.4 | (440.8 | ) | — | — | ||||||||||||||
Other, net | (32.3 | ) | (1.1 | ) | (2.1 | ) | — | (35.5 | ) | |||||||||||
Net cash provided by (used in) financing activities | 1,315.8 | 126.3 | (435.4 | ) | — | 1,006.7 | ||||||||||||||
Effect of foreign currency translation | — | 16.1 | (31.8 | ) | — | (15.7 | ) | |||||||||||||
Net Change in Cash and Cash Equivalents | 1,120.7 | (2.2 | ) | (127.7 | ) | — | 990.8 | |||||||||||||
Cash and Cash Equivalents at Beginning of Year | 189.9 | 6.1 | 405.3 | — | 601.3 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 1,310.6 | $ | 3.9 | $ | 277.6 | $ | — | $ | 1,592.1 | ||||||||||
118
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 | 94.2 | 43.1 | — | 183.2 | |||||||||||||||
Intercompany (income) expense, net | (373.7 | ) | 308.2 | 65.5 | — | — | ||||||||||||||
Other expense, net | 6.4 | 19.4 | 12.2 | — | 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 | ) | (1,406.8 | ) | 336.6 | — | (1,128.6 | ) | ||||||||||||
Provision (benefit) for income taxes | 270.2 | (140.6 | ) | 64.7 | — | 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 | (190.8 | ) | — | (821.5 | ) | — | |||||||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | (1,071.9 | ) | $ | 250.4 | $ | 821.5 | $ | (1,381.5 | ) | |||||||
For the Year Ended December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (202.0 | ) | $ | 27.3 | $ | 641.6 | $ | — | $ | 466.9 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (12.8 | ) | (32.0 | ) | (157.4 | ) | — | (202.2 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | — | (9.3 | ) | (24.1 | ) | — | (33.4 | ) | ||||||||||||
Divestiture of Interior business | (34.4 | ) | (12.9 | ) | (53.6 | ) | — | (100.9 | ) | |||||||||||
Net proceeds from disposition of businesses and other assets | 2.4 | 2.0 | 5.6 | — | 10.0 | |||||||||||||||
Other, net | — | — | (13.5 | ) | — | (13.5 | ) | |||||||||||||
Net cash used in investing activities | (44.8 | ) | (52.2 | ) | (243.0 | ) | — | (340.0 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Repurchase of senior notes | (2.9 | ) | — | — | — | (2.9 | ) | |||||||||||||
Primary credit facility repayments, net | (6.0 | ) | — | — | — | (6.0 | ) | |||||||||||||
Other long-term debt borrowings (repayments), net | 1.3 | — | (22.8 | ) | — | (21.5 | ) | |||||||||||||
Short-term debt borrowings (repayments), net | — | 2.1 | (12.3 | ) | — | (10.2 | ) | |||||||||||||
Proceeds from the exercise of stock options | 7.6 | — | — | — | 7.6 | |||||||||||||||
Change in intercompany accounts | 244.0 | 27.9 | (271.9 | ) | — | — | ||||||||||||||
Other, net | (3.1 | ) | (1.6 | ) | (12.1 | ) | — | (16.8 | ) | |||||||||||
Net cash provided by (used in) financing activities | 240.9 | 28.4 | (319.1 | ) | — | (49.8 | ) | |||||||||||||
Effect of foreign currency translation | — | (1.4 | ) | 22.9 | — | 21.5 | ||||||||||||||
Net Change in Cash and Cash Equivalents | (5.9 | ) | 2.1 | 102.4 | — | 98.6 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 195.8 | 4.0 | 302.9 | — | 502.7 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 189.9 | $ | 6.1 | $ | 405.3 | $ | — | $ | 601.3 | ||||||||||
119
For the Year Ended December 31, 2007 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | (202.0 | ) | $ | 27.3 | $ | 641.6 | $ | — | $ | 466.9 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (12.8 | ) | (32.0 | ) | (157.4 | ) | — | (202.2 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | — | (9.3 | ) | (24.1 | ) | — | (33.4 | ) | ||||||||||||
Divestiture of Interior business | (34.4 | ) | (12.9 | ) | (53.6 | ) | — | (100.9 | ) | |||||||||||
Net proceeds from disposition of businesses and other assets | 2.4 | 2.0 | 5.6 | — | 10.0 | |||||||||||||||
Other, net | — | — | (13.5 | ) | — | (13.5 | ) | |||||||||||||
Net cash used in investing activities | (44.8 | ) | (52.2 | ) | (243.0 | ) | — | (340.0 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Repayment of senior notes | (2.9 | ) | — | — | — | (2.9 | ) | |||||||||||||
Primary credit facility repayments, net | (6.0 | ) | — | — | — | (6.0 | ) | |||||||||||||
Other long-term debt borrowings (repayments), net | 1.3 | — | (22.8 | ) | — | (21.5 | ) | |||||||||||||
Short-term debt borrowings (repayments), net | — | 2.1 | (12.3 | ) | — | (10.2 | ) | |||||||||||||
Change in intercompany accounts | 244.0 | 27.9 | (271.9 | ) | — | — | ||||||||||||||
Proceeds from exercise of stock options | 7.6 | — | — | — | 7.6 | |||||||||||||||
Repurchase of common stock | (4.4 | ) | — | — | — | (4.4 | ) | |||||||||||||
Increase (decrease) in drafts | 1.3 | (1.6 | ) | (12.1 | ) | — | (12.4 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 240.9 | 28.4 | (319.1 | ) | — | (49.8 | ) | |||||||||||||
Effect of foreign currency translation | — | (1.4 | ) | 22.9 | — | 21.5 | ||||||||||||||
Net Change in Cash and Cash Equivalents | (5.9 | ) | 2.1 | 102.4 | — | 98.6 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 195.8 | 4.0 | 302.9 | — | 502.7 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 189.9 | $ | 6.1 | $ | 405.3 | $ | — | $ | 601.3 | ||||||||||
120
For the Year Ended December 31, 2006 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 28.9 | $ | (102.0 | ) | $ | 358.4 | $ | — | $ | 285.3 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (47.8 | ) | (94.8 | ) | (205.0 | ) | — | (347.6 | ) | |||||||||||
Cost of acquisitions, net of cash acquired | — | (24.9 | ) | (5.6 | ) | — | (30.5 | ) | ||||||||||||
Divestiture of Interior business | (3.7 | ) | (4.7 | ) | (7.8 | ) | — | (16.2 | ) | |||||||||||
Net proceeds from disposition of businesses and other assets | 2.3 | 27.2 | 52.6 | — | 82.1 | |||||||||||||||
Net cash used in investing activities | (49.2 | ) | (97.2 | ) | (165.8 | ) | — | (312.2 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Issuance of senior notes | 900.0 | — | — | — | 900.0 | |||||||||||||||
Repayment of senior notes | (1,356.9 | ) | — | — | — | (1,356.9 | ) | |||||||||||||
Primary credit facility borrowings, net | 597.0 | — | — | — | 597.0 | |||||||||||||||
Other long-term debt repayments, net | (44.8 | ) | (10.5 | ) | 18.8 | — | (36.5 | ) | ||||||||||||
Short-term debt repayments, net | — | — | (11.8 | ) | — | (11.8 | ) | |||||||||||||
Change in intercompany accounts | (102.0 | ) | 192.6 | (90.6 | ) | — | — | |||||||||||||
Net proceeds from the sale of common stock | 199.2 | — | — | — | 199.2 | |||||||||||||||
Dividends paid | (16.8 | ) | — | — | — | (16.8 | ) | |||||||||||||
Proceeds from exercise of stock options | 0.2 | — | — | — | 0.2 | |||||||||||||||
Increase (decrease) in drafts | 1.6 | (2.3 | ) | 3.7 | — | 3.0 | ||||||||||||||
Net cash provided by (used in) financing activities | 177.5 | 179.8 | (79.9 | ) | — | 277.4 | ||||||||||||||
Effect of foreign currency translation | — | 18.6 | 36.3 | — | 54.9 | |||||||||||||||
Net Change in Cash and Cash Equivalents | 157.2 | (0.8 | ) | 149.0 | — | 305.4 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 38.6 | 4.8 | 153.9 | — | 197.3 | |||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 | ||||||||||
121
For the Year Ended December 31, 2005 | For the Year Ended December 31, 2006 | |||||||||||||||||||||||||||||||||||||||
Non- | Non- | |||||||||||||||||||||||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | (260.7 | ) | $ | (15.8 | ) | $ | 837.3 | $ | — | $ | 560.8 | ||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | 28.9 | $ | (102.0 | ) | $ | 358.4 | $ | — | $ | 285.3 | |||||||||||||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||||||||||||||||||
Additions to property, plant and equipment | (123.0 | ) | (235.9 | ) | (209.5 | ) | — | (568.4 | ) | (47.8 | ) | (94.8 | ) | (205.0 | ) | — | (347.6 | ) | ||||||||||||||||||||||
Cost of acquisitions, net of cash acquired | — | — | (11.8 | ) | — | (11.8 | ) | — | (24.9 | ) | (5.6 | ) | — | (30.5 | ) | |||||||||||||||||||||||||
Divestiture of Interior business | (3.7 | ) | (4.7 | ) | (7.8 | ) | — | (16.2 | ) | |||||||||||||||||||||||||||||||
Net proceeds from disposition of businesses and other assets | 7.8 | 16.1 | 9.4 | — | 33.3 | 2.3 | 27.2 | 52.6 | — | 82.1 | ||||||||||||||||||||||||||||||
Other, net | 1.9 | 0.6 | 2.8 | — | 5.3 | |||||||||||||||||||||||||||||||||||
Net cash used in investing activities | (113.3 | ) | (219.2 | ) | (209.1 | ) | — | (541.6 | ) | (49.2 | ) | (97.2 | ) | (165.8 | ) | — | (312.2 | ) | ||||||||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||||||||||||||||||
Repayment of senior notes | (600.0 | ) | — | — | — | (600.0 | ) | |||||||||||||||||||||||||||||||||
Issuance of senior notes | 900.0 | — | — | — | 900.0 | |||||||||||||||||||||||||||||||||||
Repurchase of senior notes | (1,356.9 | ) | — | — | — | (1,356.9 | ) | |||||||||||||||||||||||||||||||||
Primary credit facility borrowings, net | 400.0 | — | — | — | 400.0 | 597.0 | — | — | — | 597.0 | ||||||||||||||||||||||||||||||
Other long-term debt repayments, net | (17.7 | ) | (2.2 | ) | (12.8 | ) | — | (32.7 | ) | |||||||||||||||||||||||||||||||
Other long-term debt borrowings (repayments), net | (44.8 | ) | (10.5 | ) | 18.8 | — | (36.5 | ) | ||||||||||||||||||||||||||||||||
Short-term debt repayments, net | — | — | (23.8 | ) | — | (23.8 | ) | — | — | (11.8 | ) | — | (11.8 | ) | ||||||||||||||||||||||||||
Net proceeds from the issuance of common stock | 199.2 | — | — | — | 199.2 | |||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||||||||||||||
Change in intercompany accounts | 601.1 | 234.5 | (835.6 | ) | — | — | (102.0 | ) | 192.6 | (90.6 | ) | — | — | |||||||||||||||||||||||||||
Dividends paid | (67.2 | ) | — | — | — | (67.2 | ) | |||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 4.7 | — | — | — | 4.7 | |||||||||||||||||||||||||||||||||||
Repurchase of common stock | (25.4 | ) | — | — | — | (25.4 | ) | |||||||||||||||||||||||||||||||||
Increase (decrease) in drafts | (7.1 | ) | 1.5 | 2.3 | — | (3.3 | ) | |||||||||||||||||||||||||||||||||
Other, net | 0.7 | — | — | — | 0.7 | (15.2 | ) | (2.3 | ) | 3.7 | — | (13.8 | ) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 289.1 | 233.8 | (869.9 | ) | — | (347.0 | ) | 177.5 | 179.8 | (79.9 | ) | — | 277.4 | |||||||||||||||||||||||||||
Effect of foreign currency translation | — | 2.2 | (62.0 | ) | — | (59.8 | ) | — | 18.6 | 36.3 | — | 54.9 | ||||||||||||||||||||||||||||
Net Change in Cash and Cash Equivalents | (84.9 | ) | 1.0 | (303.7 | ) | — | (387.6 | ) | 157.2 | (0.8 | ) | 149.0 | — | 305.4 | ||||||||||||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 123.5 | 3.8 | 457.6 | — | 584.9 | 38.6 | 4.8 | 153.9 | — | 197.3 | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 38.6 | $ | 4.8 | $ | 153.9 | $ | — | $ | 197.3 | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 | ||||||||||||||||||||
120
122
December 31, | 2007 | 2006 | 2008 | 2007 | ||||||||||||
Primary credit facility | $ | 991.0 | $ | 997.0 | ||||||||||||
Primary credit facility — revolver | $ | 1,192.0 | $ | — | ||||||||||||
Primary credit facility — term loan | 985.0 | 991.0 | ||||||||||||||
Senior notes | 1,422.6 | 1,417.6 | 1,287.6 | 1,422.6 | ||||||||||||
Other long-term debt | 4.4 | 4.6 | 4.2 | 4.4 | ||||||||||||
2,418.0 | 2,419.2 | 3,468.8 | 2,418.0 | |||||||||||||
Less — current portion | (87.0 | ) | (6.0 | ) | ||||||||||||
Less — Current portion | — | (87.0 | ) | |||||||||||||
Primary credit facility | 2,177.0 | N/A | ||||||||||||||
$ | 2,331.0 | $ | 2,413.2 | $ | 1,291.8 | $ | 2,331.0 | |||||||||
Year | Maturities | |||
2008 | $ | 87.0 | ||
2009 | 47.4 | |||
2010 | 6.0 | |||
2011 | 6.0 | |||
2012 | 967.0 |
Year | Maturities | |||
2009 | $ | — | ||
2010 | 0.3 | |||
2011 | 0.3 | |||
2012 | 0.3 | |||
2013 | 301.4 |
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Balance | Balance | Balance | Balance | |||||||||||||||||||||||||||||||||||||
as of Beginning | Other | as of End | as of Beginning | Other | as of End | |||||||||||||||||||||||||||||||||||
of Year | Additions | Retirements | Changes | of Year | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2008: | ||||||||||||||||||||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 16.9 | $ | 6.8 | $ | (6.0 | ) | $ | (1.7 | ) | $ | 16.0 | ||||||||||||||||||||||||||||
Reserve for unmerchantable inventories | 83.4 | 28.3 | (16.6 | ) | (1.4 | ) | 93.7 | |||||||||||||||||||||||||||||||||
Restructuring reserves | 74.6 | 152.4 | (146.4 | ) | — | 80.6 | ||||||||||||||||||||||||||||||||||
Allowance for deferred tax assets | 769.4 | 221.6 | (28.7 | ) | (34.0 | ) | 928.3 | |||||||||||||||||||||||||||||||||
of Year | Additions | Retirements | Changes | of Year | ||||||||||||||||||||||||||||||||||||
(In millions) | $ | 944.3 | $ | 409.1 | $ | (197.7 | ) | $ | (37.1 | ) | $ | 1,118.6 | ||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2007: | ||||||||||||||||||||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 14.9 | $ | 8.7 | $ | (6.1 | ) | $ | (0.6 | ) | $ | 16.9 | $ | 14.9 | $ | 8.7 | $ | (6.1 | ) | $ | (0.6 | ) | $ | 16.9 | ||||||||||||||||
Reserve for unmerchantable inventories | 87.1 | 18.9 | (27.2 | ) | 4.6 | 83.4 | 87.1 | 18.9 | (27.2 | ) | 4.6 | 83.4 | ||||||||||||||||||||||||||||
Restructuring reserves | 41.9 | 150.0 | (117.3 | ) | — | 74.6 | 41.9 | 150.0 | (117.3 | ) | — | 74.6 | ||||||||||||||||||||||||||||
Allowance for deferred tax assets | 843.9 | 65.2 | (165.3 | ) | 25.6 | 769.4 | 843.9 | 65.2 | (165.3 | ) | 25.6 | 769.4 | ||||||||||||||||||||||||||||
$ | 987.8 | $ | 242.8 | $ | (315.9 | ) | $ | 29.6 | $ | 944.3 | $ | 987.8 | $ | 242.8 | $ | (315.9 | ) | $ | 29.6 | $ | 944.3 | |||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2006: | ||||||||||||||||||||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 20.4 | $ | 7.7 | $ | (12.2 | ) | $ | (1.0 | ) | $ | 14.9 | $ | 20.4 | $ | 7.7 | $ | (12.2 | ) | $ | (1.0 | ) | $ | 14.9 | ||||||||||||||||
Reserve for unmerchantable inventories | 85.7 | 28.4 | (23.3 | ) | (3.7 | ) | 87.1 | 85.7 | 28.4 | (23.3 | ) | (3.7 | ) | 87.1 | ||||||||||||||||||||||||||
Restructuring reserves | 25.5 | 92.3 | (75.9 | ) | — | 41.9 | 25.5 | 92.3 | (75.9 | ) | — | 41.9 | ||||||||||||||||||||||||||||
Allowance for deferred tax assets | 478.3 | 364.6 | (28.4 | ) | 29.4 | 843.9 | 478.3 | 364.6 | (28.4 | ) | 29.4 | 843.9 | ||||||||||||||||||||||||||||
$ | 609.9 | $ | 493.0 | $ | (139.8 | ) | $ | 24.7 | $ | 987.8 | $ | 609.9 | $ | 493.0 | $ | (139.8 | ) | $ | 24.7 | $ | 987.8 | |||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2005: | ||||||||||||||||||||||||||||||||||||||||
Valuation of accounts deducted from related assets: | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 26.7 | $ | 12.5 | $ | (15.8 | ) | $ | (3.0 | ) | $ | 20.4 | ||||||||||||||||||||||||||||
Reserve for unmerchantable inventories | 86.4 | 33.8 | (23.3 | ) | (11.2 | ) | 85.7 | |||||||||||||||||||||||||||||||||
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 | ) | $ | (47.3 | ) | $ | 609.9 | |||||||||||||||||||||||||||||
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ITEM 9 — | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A — | CONTROLS AND PROCEDURES |
(a) | Disclosure Controls and Procedures |
(b) | Management’s Annual Report on Internal Control Over Financial Reporting |
(c) | Attestation Report of the Registered Public Accounting Firm |
(d) | Changes in Internal Control over Financial Reporting |
ITEM 9B — | OTHER INFORMATION |
123
ITEM 10 — | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
125
ITEM 11 — | EXECUTIVE COMPENSATION |
ITEM 12 — | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Number of Securities | Number of Securities | |||||||||||||||||||||||
Available for Future | Available for Future | |||||||||||||||||||||||
Number of Securities to be | Weighted Average | Issuance Under Equity | Number of Securities to be | Weighted Average | Issuance Under Equity | |||||||||||||||||||
Issued Upon Exercise of | Exercise Price of | Compensation Plans | Issued Upon Exercise of | Exercise Price of | Compensation Plans | |||||||||||||||||||
Outstanding Options, | Outstanding Options, | (Excluding Securities | Outstanding Options, | Outstanding Options, | (Excluding Securities | |||||||||||||||||||
warrants and Rights | Warrants and Rights | Reflected in Column (a)) | warrants and Rights | Warrants and Rights | Reflected in Column (a)) | |||||||||||||||||||
As of December 31, 2007 | (a) | (b) | (c) | |||||||||||||||||||||
As of December 31, 2008 | (a) | (b) | (c) | |||||||||||||||||||||
Equity compensation plans approved by security holders(1) | 5,940,917 | (2) | $ | 27.23 | (3) | 2,640,910 | 4,910,361 | (2) | $ | 24.30 | (3) | 2,477,442 | ||||||||||||
Equity compensation plans not approved by security holders | — | — | — | — | — | — | ||||||||||||||||||
Total | 5,940,917 | $ | 27.23 | 2,640,910 | 4,910,361 | $ | 24.30 | 2,477,442 | ||||||||||||||||
(1) | Includes the 1996 Stock Option Plan and the Long-Term Stock Incentive Plan. | |
(2) | Includes |
124
(3) | Reflects outstanding options at a weighted average exercise price of |
126
ITEM 13 — | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14 — | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15 — | EXHIBITS AND FINANCIAL STATEMENT SCHEDULE |
3. | The exhibits listed on the “Index to Exhibits” on pages 127 through 133 are filed with thisForm 10-K or incorporated by reference as set forth below. |
(b) | The exhibits listed on the “Index to Exhibits” on pages 127 through 133 are filed with thisForm 10-K or incorporated by reference as set forth below. |
127125
By: | /s/ Robert E. Rossiter |
/s/ Robert E. Rossiter | /s/ Roy E. Parrott | |||
Robert E. | Roy E. Parrott | |||
Chairman of the Board of Directors, Chief Executive Officer and President and a Director (Principal Executive Officer) | a Director | |||
/s/ Matthew J. Simoncini | /s/ David P. Spalding | |||
Matthew J. Simoncini | David P. Spalding | |||
Senior Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | a Director | |||
/s/ Dr. David E. Fry | /s/ James A. Stern | |||
Dr. David E. Fry a Director | James A. Stern a Director | |||
/s/ Conrad L. Mallett | /s/ Henry D.G. Wallace | |||
Conrad L. Mallett a Director | Henry D.G. Wallace a Director | |||
/s/ Larry W. McCurdy | /s/ Richard F. Wallman | |||
Larry W. McCurdy a Director | Richard F. Wallman a Director |
128126
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Exhibit | Number | Exhibit | ||||
2 | .1 | Agreement and Plan of Merger, dated February 9, 2007, by and among AREP Car Holdings Corp., AREP Car Acquisition Corp. and Lear Corporation (incorporated by reference to Exhibit 2.1 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 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). | |||
2 | .2 | Voting Agreement, dated February 9, 2007, by an among Lear Corporation, Icahn Partners LP, Icahn Partners Master Fund LP, Koala Holding LLC and High River Limited Partnership (incorporated by reference to Exhibit 2.2 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 3 | .2 | Certificate of Amendment to Amended and Restated Certificate of Incorporation of Lear Corporation, dated July 17, 2007 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report onForm 8-K dated July 16, 2007). | |||
2 | .3 | Guaranty of Payment, dated February 9, 2007, by American Real Estate Partners, L.P. in favor of Lear Corporation (incorporated by reference to Exhibit 2.3 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 3 | .3 | By-laws of Lear Corporation, amended as of February 12, 2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report onForm 8-K dated February 12, 2009). | |||
2 | .4 | Amendment No. 1 to Employment Agreement, dated February 9, 2007, between Lear Corporation and Douglas G. DelGrosso (incorporated by reference to Exhibit 2.4 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 3 | .4 | 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). | |||
2 | .5 | Amendment No. 1 to Employment Agreement, dated February 9, 2007, between Lear Corporation and Robert E. Rossiter (incorporated by reference to Exhibit 2.5 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 3 | .5 | 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). | |||
2 | .6 | Amendment No. 1 to Employment Agreement, dated February 9, 2007, between Lear Corporation and James H. Vandenberghe (incorporated by reference to Exhibit 2.6 to the Company’s Current Report onForm 8-K/A dated February 9, 2007). | 3 | .6 | 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). | |||
2 | .7 | Amendment No. 1, dated July 9, 2007, to the Agreement and Plan of Merger, dated February 9, 2007, by and among AREP Car Holdings Corp., AREP Car Acquisition Corp. and Lear Corporation (incorporated by reference to Exhibit 2.1 to the Company’s Current Report onForm 8-K dated July 9, 2007). | 3 | .7 | 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 | .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 | .8 | 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 | .2 | Certificate of Amendment to Amended and Restated Certificate of Incorporation of Lear Corporation, dated July 17, 2007 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report onForm 8-K dated July 16, 2007). | 3 | .9 | 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 | .3 | By-laws of Lear Corporation, amended as of November 14, 2007 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report onForm 8-K dated November 14, 2007). | 3 | .10 | Certificate of Incorporation of Lear Automotive Dearborn, Inc., as amended (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended April 1, 2006). | |||
3 | .4 | 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 | .11 | By-laws of Lear Automotive Dearborn, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended April 1, 2006). | |||
3 | .5 | 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 | .12 | Certificate of Incorporation of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.13 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
3 | .6 | 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 | .13 | Certificate of Amendment of Certificate of Incorporation of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.14 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
3 | .7 | 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 | .14 | Amended and Restated By-laws of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.15 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
3 | .8 | 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 | .15 | 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 | .9 | 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 | .16 | 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 | .10 | Certificate of Incorporation of Lear Automotive Dearborn, Inc., as amended (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended April 1, 2006). | 3 | .17 | 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 | .11 | Bylaws of Lear Automotive Dearborn, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q for the quarter ended April 1, 2006). | 3 | .18 | 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 | .12 | Certificate of Incorporation of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.13 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | 3 | .19 | By-laws of Lear Corporation Mexico, S. de R.L. de C.V., showing the change of Lear Corporation Mexico, S.A. de C.V. from a corporation to a limited liability, variable capital partnership (Unofficial English Translation) (incorporated by reference to Exhibit 3.18 to the Company’s Registration Statement onForm S-4 filed on December 8, 2006). | |||
3 | .20 | Certificate of Designation of Series A Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on December 23, 2008 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report onForm 8-K dated December 23, 2008). |
129127
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Exhibit | Number | Exhibit | ||||
3 | .13 | Certificate of Amendment of Certificate of Incorporation of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.14 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | 4 | .1 | 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). | |||
3 | .14 | Amended and Restated By-laws of Lear Corporation (Germany) Ltd. (incorporated by reference to Exhibit 3.15 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | 4 | .2 | 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 4.1 to the Company’s Current Report onForm 8-K dated August 26, 2004). | |||
3 | .15 | 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). | 4 | .3 | 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). | |||
3 | .16 | 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). | 4 | .4 | Supplemental Indenture No. 3 to Indenture dated as of February 20, 2002, among Lear Corporation, the Guarantors set forth therein 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 10.4 to the Company’s Current Report onForm 8-K dated April 25, 2006). | |||
3 | .17 | 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). | 4 | .5 | Supplemental Indenture No. 4 to Indenture dated as of February 20, 2002, among Lear Corporation, the Guarantors set forth therein 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 June 14, 2006). | |||
3 | .18 | 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). | 4 | .6 | 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). | |||
3 | .19 | By-laws of Lear Corporation Mexico, S. de R.L. de C.V., showing the change of Lear Corporation Mexico, S.A. de C.V. from a corporation to a limited liability, variable capital partnership (Unofficial English Translation) (incorporated by reference to Exhibit 3.18 to the Company’s Registration Statement onForm S-4 filed on December 8, 2006). | 4 | .7 | 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). | |||
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 | .8 | Supplemental Indenture No. 2 to Indenture dated as of August 3, 2004, among Lear Corporation, the Guarantors set forth therein 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 10.5 to the Company’s Current Report onForm 8-K dated April 25, 2006). | |||
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 | .9 | Indenture dated as of November 24, 2006, by and among Lear Corporation, certain Subsidiary Guarantors (as defined therein) and The Bank of New York Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report onForm 8-K dated November 24, 2006). | |||
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 | .10 | Rights Agreement dated as of December 23, 2008, by and between the Company and Mellon Investor Services LLC, which includes as Exhibit A, the Form of Certificate of Designation of Series A Junior Participating Preferred Stock, as Exhibit B, the Form of Rights Certificate, and as Exhibit C, the Summary of Rights to Purchase Shares of Preferred Stock of Lear Corporation (incorporated by reference to Exhibit 4.1 to the Company’s Current Report onForm 8-K dated December 23, 2008). | |||
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). | 10 | .1 | Amended and Restated Credit and Guarantee Agreement, dated as of April 25, 2006, 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 April 25, 2006). | |||
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). | 10 | .2 | First Amendment, dated as of June 27, 2008, to the Amended and Restated Credit and Guarantee Agreement, dated as of April 25, 2006, among Lear, certain subsidiaries of Lear, the several lenders from time to time parties thereto, the several agents parties thereto and JPMorgan Chase Bank, N.A., as general administrative agent (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report onForm 10-Q for the quarter ended June 28, 2008). | |||
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). |
130
Exhibit | ||||
Number | Exhibit | |||
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 4.1 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 The Bank of New York 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). | ||
4 | .15 | Supplemental Indenture No. 5 to Indenture dated as of May 15, 1999, among Lear Corporation, the Guarantors set forth therein 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 10.2 to the Company’s Current Report ofForm 8-K dated April 25, 2006). | ||
4 | .16 | Supplemental Indenture No. 4 to Indenture dated as of March 20, 2001, among Lear Corporation, the Guarantors set forth therein and the Bank of New York, as trustee (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated April 25, 2006). | ||
4 | .17 | Supplemental Indenture No. 3 to Indenture dated as of February 20, 2002, among Lear Corporation, the Guarantors set forth therein 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 10.4 to the Company’s Current Report onForm 8-K dated April 25, 2006). | ||
4 | .18 | Supplemental Indenture No. 4 to Indenture dated as of February 20, 2002, among Lear Corporation, the Guarantors set forth therein 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 June 14, 2006). | ||
4 | .19 | Supplemental Indenture No. 2 to Indenture dated as of August 3, 2004, among Lear Corporation, the Guarantors set forth therein 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 10.5 to the Company’s Current Report onForm 8-K dated April 25, 2006). | ||
4 | .20 | Indenture dated as of November 24, 2006, by and among Lear Corporation, certain Subsidiary Guarantors (as defined therein) and The Bank of New York Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report onForm 8-K dated November 24, 2006). | ||
10 | .1 | Amended and Restated Credit and Guarantee Agreement, dated as of April 25, 2006, 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 April 25, 2006). |
131128
Exhibit | ||||
Number | Exhibit | |||
**10 | Second Amendment and Waiver, dated as of March 17, 2009, to the Amended and Restated Credit and Guarantee Agreement, dated as of April 25, 2006, as amended, among Lear, certain subsidiaries of Lear, the several lenders from time to time parties thereto, the several agents parties thereto and JPMorgan Chase Bank, N.A., as general administrative agent. | |||
10 | .4* | Employment Agreement, dated November 15, 2007, between the Company and Robert E. Rossiter (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated November 14, 2007). | ||
10 | 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 | Consulting Agreement, dated | |||
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 | Separation Agreement, dated October 3, 2007, between the Company and Douglas G. DelGrosso (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated October 1, 2007). | |||
10 | 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 | Employment Agreement, dated | |||
10 | Employment Agreement, dated | |||
10 | Employment Agreement, dated March 3, 2006, between the Company and Matthew J. Simoncini (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q for the quarter ended September 29, 2007). | |||
Employment Agreement, dated | ||||
Employment Agreement, effective as of January 1, 2008, between the Company and Terrence B. | ||||
10 | 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). | |||
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 | .17* | Lear Corporation Long-Term Stock Incentive Plan, as amended and restated, Conformed Copy through Fourth Amendment (incorporated by reference to Exhibit 4.1 of Post-Effective Amendment No. 3 to the Company’s Registration Statement onForm S-8 filed on November 3, 2006). | ||
10 | Fifth Amendment to the Lear Corporation Long-Term Stock Incentive Plan, effective November 1, 2006 (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | |||
10 | Form of the Long-Term Stock Incentive Plan 2002 Nontransferable Nonqualified Stock Option Terms and Conditions (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2003). | |||
132
Exhibit | ||||
Number | Exhibit | |||
10 | .20* | Form of the Long-Term Stock Incentive Plan 2003 Director Nonqualified, Nontransferable Stock Option Terms and Conditions (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2003). | ||
10 | .21* | Form of the Long-Term Stock Incentive Plan 2003 Restricted Stock Unit Terms and Conditions for Management (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2003). | ||
10 | .22* | 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 | .23 | 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 | .24 | 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 | .25 | Registration Rights Agreement dated as of November 24, 2006, among Lear Corporation, certain Subsidiary Guarantors (as defined therein) and Citigroup Global Markets Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 24, 2006). | ||
10 | .26* | 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 | .27* | First Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of November 10, 2005 (incorporated by reference to Exhibit 10.48 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | ||
10 | .28* | Second Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of December 21, 2006 (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
**10 | .29* | Third Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of May 9, 2007. | ||
10 | .30* | Fourth Amendment to the Lear Corporation Executive Supplemental Savings Plan, effective as of December 18, 2007 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated December 18, 2007). | ||
10 | .31* | 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 | .32* | 2005 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2004). | ||
10 | .33* | 2006 Management Stock Purchase Plan (U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.41 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | ||
10 | .34* | 2006 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | ||
10 | .35* | 2007 Management Stock Purchase Plan (U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
10 | .36* | 2007 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.34 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
**10 | .37* | 2008 Management Stock Purchase Plan (U.S.) Terms and Conditions. | ||
**10 | .38* | 2008 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions. |
133
Exhibit | ||||
Number | Exhibit | |||
10 | .39* | 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 | .40* | 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 | .41* | Long-Term Stock Incentive Plan 2006 Restricted Stock Unit Terms and Conditions (incorporated by reference to Exhibit 10.40 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
**10 | .42* | Long-Term Stock Incentive Plan 2007 Restricted Stock Unit Terms and Conditions. | ||
10 | .43* | Long-Term Stock Incentive Plan 2005 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 | .44* | Long-Term Stock Incentive Plan 2006 and 2007 Stock Appreciation Rights Terms and Conditions (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
**10 | .45* | Long-Term Stock Incentive Plan Restricted Stock Unit Terms and Conditions for James H. Vandenberghe. | ||
10 | .46* | 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 | .47* | 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-K for the year ended December 31, 2004). | ||
10 | .48* | First Amendment to the Lear Corporation Pension Equalization Program, dated as of December 21, 2006 (incorporated by reference to Exhibit 10.45 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
**10 | .49* | Second Amendment to the Lear Corporation Pension Equalization Program, dated as of May 9, 2007. | ||
10 | .50* | Third Amendment to the Lear Corporation Pension Equalization Program, effective as of December 18, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated December 18, 2007). | ||
10 | .51* | 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 | .52 | Form of Amended and Restated Indemnity Agreement between the Company and each of its directors (incorporated by reference to Exhibit 10.47 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
10 | .53* | Form of the Long-Term Stock Incentive Plan 2004 Restricted Stock Unit Terms & Conditions for Management (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 11, 2004). | ||
10 | .54 | Sale and Purchase Agreement dated as of July 20, 2006, by and among the Company, Lear East European Operations S.a.r.l., Lear Holdings (Hungary) Kft, Lear Corporation GmbH, Lear Corporation Sweden AB, Lear Corporation Poland Sp.zo.o., International Automotive Components Group LLC, International Automotive Components Group SARL, International Automotive Components Group Limited, International Automotive Components Group GmbH and International Automotive Components Group AB (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated July 20, 2006). | ||
10 | .55 | Stock Purchase Agreement dated as of October 17, 2006, among the Company, Icahn Partners LP, Icahn Partners Master Fund LP and Koala Holding LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated October 17, 2006). | ||
10 | .56* | Form of Performance Share Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated March 23, 2006). |
134
Exhibit | ||||
Number | Exhibit | |||
10 | .57* | Restricted Stock Award Agreement dated as of November 9, 2006, by and between the Company and Daniel A. Ninivaggi (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 9, 2006). | ||
10 | .58* | Form of Cash-Settled Performance Unit Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan for the2007-2009 Performance Period (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated February 8, 2007). | ||
10 | .59* | Form of Cash-Settled Performance Unit Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan for the2008-2010 Performance Period (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 14, 2007). | ||
10 | .60 | Asset Purchase Agreement dated as of November 30, 2006, by and among Lear Corporation, International Automotive Components Group North America, Inc., WL Ross & Co. LLC, Franklin Mutual Advisers, LLC and International Automotive Components Group North America, LLC. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 30, 2006). | ||
10 | .61 | Form of Limited Liability Company Agreement of International Automotive Components Group North America, LLC. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated November 30, 2006). | ||
10 | .62 | Limited Liability Company Agreement of International Automotive Components Group North America, LLC dated as of March 31, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated March 31, 2007). | ||
10 | .63 | Amendment No. 1 to the Asset Purchase Agreement dated as of March 31, 2007, by and among Lear Corporation, International Automotive Components Group North America, Inc., WL Ross & Co. LLC, Franklin Mutual Advisers, LLC and International Automotive Components Group North America, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated March 31, 2007). | ||
10 | .64 | Amendment No. 1, dated July 9, 2007, to the Stock Purchase Agreement, dated October 17, 2006, among Lear Corporation, Icahn Partners LP, Icahn Master Fund LP and Koala Holding LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated July 9, 2007). | ||
10 | .65 | Registration Rights Agreement, dated as of July 9, 2007, by and among Lear Corporation and AREP Car Holdings Corp. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated July 9, 2007). | ||
10 | .66 | Amended and Restated Limited Liability Company Agreement of International Automotive Components Group North America, LLC, dated as of October 11, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated October 11, 2007). | ||
** 10 | .67* | Form of Performance Share Award Agreement for the three-year period ending December 31, 2009. | ||
** 10 | .68* | Fifth Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as February 14, 2008. | ||
** 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. | ||
135129
Exhibit | |||||
Number | Exhibit | ||||
.20* | |||||
.21* | Form of the Long-Term Stock Incentive Plan 2004 Restricted Stock Unit Terms & Conditions for Management (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 11, 2004). | ||||
.22* | Form of Performance Share Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company���s Current Report onForm 8-K dated March 23, 2006). | ||||
10 | .23* | Form of Performance Share Award Agreement for the three-year period ending December 31, 2009 (incorporated by reference to Exhibit 10.67 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | |||
10 | .24* | Form of Cash-Settled Performance Unit Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan for the2007-2009 Performance Period (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated February 8, 2007). | |||
10 | .25* | Form of Cash-Settled Performance Unit Award Agreement under the Lear Corporation Long-Term Stock Incentive Plan for the2008-2010 Performance Period (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 14, 2007). | |||
10 | .26* | 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 | .27* | First Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of November 10, 2005 (incorporated by reference to Exhibit 10.48 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
10 | .28* | Second Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of December 21, 2006 (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | |||
10 | .29* | Third Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of May 9, 2007 (incorporated by reference to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | |||
10 | .30* | Fourth Amendment to the Lear Corporation Executive Supplemental Savings Plan, effective as of December 18, 2007 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated December 18, 2007). | |||
10 | .31* | Fifth Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of February 14, 2008 (incorporated by reference to Exhibit 10.68 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | |||
10 | .32* | Sixth Amendment to the Lear Corporation Executive Supplemental Savings Plan, effective as of July 1, 2008 (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q for the quarter ended June 28, 2008). | |||
10 | .33* | Seventh Amendment to the Lear Corporation Executive Supplemental Savings Plan, dated as of November 5, 2008 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated November 5, 2008). | |||
10 | .34* | 2006 Management Stock Purchase Plan (U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.41 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
10 | .35* | 2006 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2005). | |||
10 | .36* | 2007 Management Stock Purchase Plan (U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | |||
10 | .37* | 2007 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.34 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). |
130
Exhibit | ||||
Number | Exhibit | |||
10 | .38* | 2008 Management Stock Purchase Plan (U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.37 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | ||
10 | .39* | 2008 Management Stock Purchase Plan(Non-U.S.) Terms and Conditions (incorporated by reference to Exhibit 10.38 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | ||
10 | .40* | Supplement to the 2006, 2007 and 2008 Management Stock Purchase Plan Terms and Conditions (incorporated by reference to Exhibit (a)(7) of the Company’s Tender Offer Statement on Schedule TO filed August 14, 2008). | ||
10 | .41* | 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 | .42* | Long-Term Stock Incentive Plan 2006 Restricted Stock Unit Terms and Conditions (incorporated by reference to Exhibit 10.40 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
10 | .43* | Long-Term Stock Incentive Plan 2007 Restricted Stock Unit Terms and Conditions (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | ||
10 | .44* | Long-Term Stock Incentive Plan Restricted Stock Unit Terms and Conditions for James H. Vandenberghe (incorporated by reference to Exhibit 10.45 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | ||
10 | .45* | Long-Term Stock Incentive Plan 2005 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 | .46* | Long-Term Stock Incentive Plan 2006 and 2007 Stock Appreciation Rights Terms and Conditions (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
10 | .47* | Long-Term Stock Incentive Plan 2008 Stock-Settled Stock Appreciation Rights Terms and Conditions (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated November 5, 2008). | ||
10 | .48* | Cash-Settled Appreciation Rights Terms and Conditions for James H. Vandenberghe (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated May 5, 2008). | ||
10 | .49* | 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 | .50* | 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-K for the year ended December 31, 2004). | ||
10 | .51* | First Amendment to the Lear Corporation Pension Equalization Program, dated as of December 21, 2006 (incorporated by reference to Exhibit 10.45 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). | ||
10 | .52* | Second Amendment to the Lear Corporation Pension Equalization Program, dated as of May 9, 2007 (incorporated by reference to Exhibit 10.49 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007). | ||
10 | .53* | Third Amendment to the Lear Corporation Pension Equalization Program, effective as of December 18, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated December 18, 2007). | ||
10 | .54* | 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 | .55 | Form of Amended and Restated Indemnity Agreement between the Company and each of its directors (incorporated by reference to Exhibit 10.47 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006). |
131
Exhibit | ||||
Number | Exhibit | |||
**10 | .56* | Lear Corporation Outside Directors Compensation Plan, amended and restated effective January 1, 2009. | ||
10 | .57 | 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 | .58 | 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 | .59 | Registration Rights Agreement dated as of November 24, 2006, among Lear Corporation, certain Subsidiary Guarantors (as defined therein) and Citigroup Global Markets Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 24, 2006). | ||
10 | .60 | Sale and Purchase Agreement dated as of July 20, 2006, by and among the Company, Lear East European Operations S.a.r.l., Lear Holdings (Hungary) Kft, Lear Corporation GmbH, Lear Corporation Sweden AB, Lear Corporation Poland Sp.zo.o., International Automotive Components Group LLC, International Automotive Components Group SARL, International Automotive Components Group Limited, International Automotive Components Group GmbH and International Automotive Components Group AB (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated July 20, 2006). | ||
10 | .61 | Asset Purchase Agreement dated as of November 30, 2006, by and among Lear Corporation, International Automotive Components Group North America, Inc., WL Ross & Co. LLC, Franklin Mutual Advisers, LLC and International Automotive Components Group North America, LLC. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated November 30, 2006). | ||
10 | .62 | Form of Limited Liability Company Agreement of International Automotive Components Group North America, LLC. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated November 30, 2006). | ||
10 | .63 | Limited Liability Company Agreement of International Automotive Components Group North America, LLC dated as of March 31, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated March 31, 2007). | ||
10 | .64 | Amendment No. 1 to the Asset Purchase Agreement dated as of March 31, 2007, by and among Lear Corporation, International Automotive Components Group North America, Inc., WL Ross & Co. LLC, Franklin Mutual Advisers, LLC and International Automotive Components Group North America, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated March 31, 2007). | ||
10 | .65 | Amended and Restated Limited Liability Company Agreement of International Automotive Components Group North America, LLC dated as of October 11, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated October 11, 2007). | ||
10 | .66 | Stock Purchase Agreement dated as of October 17, 2006, among the Company, Icahn Partners LP, Icahn Partners Master Fund LP and Koala Holding LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated October 17, 2006). | ||
10 | .67 | Amendment No. 1, dated July 9, 2007, to the Stock Purchase Agreement, dated October 17, 2006, among Lear Corporation, Icahn Partners LP, Icahn Master Fund LP and Koala Holding LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated July 9, 2007). | ||
10 | .68 | Registration Rights Agreement, dated as of July 9, 2007, by and among Lear Corporation and AREP Car Holdings Corp. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated July 9, 2007). | ||
10 | .69 | Master Contract for the Regular Factoring of Claims á forfeit between Lear Corporation GmbH and Dresdner Bank Aktiengesellschaft in Frankfurt am Main, dated June 20, 2008 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated June 26, 2008). |
132
Exhibit | ||||
Number | Exhibit | |||
10 | .70 | Master Contract for the Regular Factoring of Claims á forfeit between Lear Corporation Austria GmbH and Dresdner Bank Aktiengesellschaft in Frankfurt am Main, dated June 20, 2008 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report onForm 8-K dated June 26, 2008). | ||
10 | .71 | Master Contract for the Regular Factoring of Claims á forfeit between Lear Automotive Services (Netherlands) B.V. and Dresdner Bank Aktiengesellschaft in Frankfurt am Main, dated June 20, 2008 (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated June 26, 2008). | ||
**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. |
136133