Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LEA | |
Entity Registrant Name | LEAR CORP | |
Entity Central Index Key | 842,162 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,321,719 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | [1] | Dec. 31, 2017 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,268.5 | $ 1,500.4 | |
Accounts receivable | 3,795.2 | 3,230.8 | |
Inventories | 1,266.3 | 1,205.7 | |
Other | 769.7 | 676.1 | |
Total current assets | 7,099.7 | 6,613 | |
LONG-TERM ASSETS: | |||
Property, plant and equipment, net | 2,560.9 | 2,459.4 | |
Goodwill | 1,464.7 | 1,401.3 | |
Other | 1,555.9 | 1,472.2 | |
Total long-term assets | 5,581.5 | 5,332.9 | |
Total assets | 12,681.2 | 11,945.9 | |
CURRENT LIABILITIES: | |||
Short-term borrowings | 2.9 | 0 | |
Accounts payable and drafts | 3,483 | 3,167.2 | |
Accrued liabilities | 1,801.4 | 1,678.1 | |
Current portion of long-term debt | 9.1 | 9 | |
Total current liabilities | 5,296.4 | 4,854.3 | |
LONG-TERM LIABILITIES: | |||
Long-term debt | 1,950 | 1,951.5 | |
Other | 709.9 | 694.1 | |
Total long-term liabilities | 2,659.9 | 2,645.6 | |
Redeemable noncontrolling interest | 170.3 | 153.4 | |
EQUITY: | |||
Preferred stock, 100,000,000 shares authorized (including 10,896,250 Series A convertible preferred stock authorized); no shares outstanding | 0 | 0 | |
Common stock, $0.01 par value, 300,000,000 shares authorized; 72,563,291 shares issued as of March 31, 2018 and December 31, 2017 | 0.7 | 0.7 | |
Additional paid-in capital | 1,156.4 | 1,215.4 | |
Common stock held in treasury, 6,191,389 and 5,689,527 shares as of March 31, 2018 and December 31, 2017, respectively, at cost | (851.7) | (724.1) | |
Retained earnings | 4,474.8 | 4,171.9 | |
Accumulated other comprehensive loss | (380.8) | (513.4) | |
Lear Corporation stockholders’ equity | 4,399.4 | 4,150.5 | |
Noncontrolling interests | 155.2 | 142.1 | |
Equity | 4,554.6 | 4,292.6 | |
Total liabilities and equity | $ 12,681.2 | $ 11,945.9 | |
[1] | Unaudited. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 72,563,291 | 72,563,291 |
Common stock held in treasury, shares (in shares) | 6,191,389 | 5,689,527 |
Series A convertible preferred stock | ||
Preferred stock, shares authorized (in shares) | 10,896,250 | 10,896,250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 5,733.7 | $ 4,998.5 |
Cost of sales | 5,102.3 | 4,416 |
Selling, general and administrative expenses | 155.4 | 155.7 |
Amortization of intangible assets | 13.1 | 10.1 |
Interest expense | 20.7 | 20.8 |
Other (income) expense, net | (5.6) | 3.7 |
Consolidated income before provision for income taxes and equity in net income of affiliates | 447.8 | 392.2 |
Provision for income taxes | 77.7 | 89.1 |
Equity in net income of affiliates | (4.1) | (15.4) |
Consolidated net income | 374.2 | 318.5 |
Less: Net income attributable to noncontrolling interests | 20.5 | 12.7 |
Net income attributable to Lear | $ 353.7 | $ 305.8 |
Basic net income per share available to Lear common stockholders (in dollars per share) | $ 5.19 | $ 4.39 |
Diluted net income per share available to Lear common stockholders (in dollars per share) | 5.16 | 4.35 |
Cash dividends declared per share (in dollars per share) | $ 0.70 | $ 0.50 |
Average common shares outstanding (in shares) | 67,086,326 | 69,658,368 |
Average diluted shares outstanding (in shares) | 67,562,452 | 70,327,348 |
Consolidated comprehensive income | $ 520 | $ 422.1 |
Less: Comprehensive income attributable to noncontrolling interests | 33.7 | 13.8 |
Comprehensive income attributable to Lear | $ 486.3 | $ 408.3 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash Flows from Operating Activities: | ||
Consolidated net income | $ 374.2 | $ 318.5 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 120.2 | 96.9 |
Net change in recoverable customer engineering, development and tooling | 22.5 | 7.4 |
Net change in working capital items (see below) | (252.6) | (145.3) |
Other, net | (27.5) | 1.4 |
Net cash provided by operating activities | 236.8 | 278.9 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (162.8) | (120.8) |
Other, net | (25.3) | (7.9) |
Net cash used in investing activities | (188.1) | (128.7) |
Cash Flows from Financing Activities: | ||
Credit agreement repayments | (1.5) | (6.2) |
Short-term borrowings, net | 0 | 1.4 |
Repurchase of common stock | (145.4) | (115.6) |
Dividends paid to Lear Corporation stockholders | (50.7) | (36.7) |
Dividends paid to noncontrolling interests | (19.2) | (26.5) |
Other, net | (55.8) | (41.7) |
Net cash used in financing activities | (272.6) | (225.3) |
Effect of foreign currency translation | 18 | 13.2 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (205.9) | (61.9) |
Cash, Cash Equivalents and Restricted Cash as of Beginning of Period | 1,500.4 | 1,271.6 |
Cash, Cash Equivalents and Restricted Cash as of End of Period | 1,294.5 | 1,209.7 |
Changes in Working Capital Items: | ||
Accounts receivable | (460.7) | (526.6) |
Inventories | (35) | (35.4) |
Accounts payable | 227.9 | 374.7 |
Accrued liabilities and other | 15.2 | 42 |
Net change in working capital items | (252.6) | (145.3) |
Supplementary Disclosure | ||
Cash paid for interest | 45.6 | 42.6 |
Cash paid for income taxes, net of refunds received | $ 63.6 | $ 65.1 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Lear Corporation ("Lear," and together with its consolidated subsidiaries, the "Company") and its affiliates design and manufacture automotive seating and electrical distribution systems and related components. The Company’s main customers are automotive original equipment manufacturers. The Company operates facilities worldwide. The accompanying condensed consolidated financial statements include the accounts of Lear, a Delaware corporation, and the wholly owned and less than wholly owned subsidiaries controlled by Lear. In addition, Lear consolidates all entities, including variable interest entities, in which it has a controlling financial interest. Investments in affiliates in which Lear does not have control but does have the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. In the second quarter of 2017, the Company completed the acquisition of Grupo Antolin's automotive seating business ("Antolin Seating"). The acquisition was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated financial statements from the date of acquisition. For further information on the acquisition of Antolin Seating, see Note 3, "Acquisition," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company’s annual financial results are reported on a calendar year basis, and quarterly interim results are reported using a thirteen week reporting calendar. Certain amounts in the prior period’s financial statements have been reclassified to conform to the presentation used in the quarter ended March 31, 2018 . |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs include employee termination benefits, fixed asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. These incremental costs principally include equipment and personnel relocation costs. In addition to restructuring costs, the Company incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company’s condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded as restructuring actions are approved and/or implemented. In the first quarter of 2018 , the Company recorded charges of $18.4 million in connection with its restructuring actions. These charges consist of $14.9 million recorded as cost of sales and $3.5 million recorded as selling, general and administrative expenses. The restructuring charges consist of employee termination costs of $16.3 million , fixed asset impairment charges of $0.9 million and contract termination costs of $0.3 million , as well as other related costs of $0.9 million . Employee termination benefits were recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Fixed asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $0.9 million in excess of related estimated fair values. The Company expects to incur approximately $30 million of additional restructuring costs related to activities initiated as of March 31, 2018 , and expects that the components of such costs will be consistent with its historical experience. Any future restructuring actions will depend upon market conditions, customer actions and other factors. A summary of 2018 activity is shown below (in millions): Accrual as of 2018 Utilization Accrual as of January 1, 2018 Charges Cash Non-cash March 31, 2018 Employee termination benefits $ 93.0 $ 16.3 $ (13.8 ) $ — $ 95.5 Asset impairment charges — 0.9 — (0.9 ) — Contract termination costs 5.0 0.3 (0.2 ) — 5.1 Other related costs — 0.9 (0.9 ) — — Total $ 98.0 $ 18.4 $ (14.9 ) $ (0.9 ) $ 100.6 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. A summary of inventories is shown below (in millions): March 31, December 31, 2017 Raw materials $ 918.8 $ 869.3 Work-in-process 129.0 120.8 Finished goods 334.6 324.8 Reserves (116.1 ) (109.2 ) Inventories $ 1,266.3 $ 1,205.7 |
Pre-Production Costs Related to
Pre-Production Costs Related to Long-Term Supply Agreements | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Pre-Production Costs Related to Long-Term Supply Agreements | Pre-Production Costs Related to Long-Term Supply Agreements The Company incurs pre-production engineering and development ("E&D") and tooling costs related to the products produced for its customers under long-term supply agreements. The Company expenses all pre-production E&D costs for which reimbursement is not contractually guaranteed by the customer. In addition, the Company expenses all pre-production tooling costs related to customer-owned tools for which reimbursement is not contractually guaranteed by the customer or for which the Company does not have a non-cancelable right to use the tooling. During the first quarters of 2018 and 2017 , the Company capitalized $33.5 million and $62.9 million , respectively, of pre-production E&D costs for which reimbursement is contractually guaranteed by the customer. During the first quarters of 2018 and 2017 , the Company also capitalized $31.8 million and $33.6 million , respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the Company has a non-cancelable right to use the tooling. These amounts are included in other current and long-term assets in the accompanying condensed consolidated balance sheets. During the first quarters of 2018 and 2017 , the Company collected $79.0 million and $87.6 million , respectively, of cash related to E&D and tooling costs. The classification of recoverable customer E&D and tooling costs related to long-term supply agreements is shown below (in millions): March 31, December 31, 2017 Current $ 225.1 $ 248.1 Long-term 66.8 59.3 Recoverable customer E&D and tooling $ 291.9 $ 307.4 |
Long-Term Assets
Long-Term Assets | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Long-Term Assets | Long-Term Assets Property, Plant and Equipment Property, plant and equipment is stated at cost. Costs associated with the repair and maintenance of the Company’s property, plant and equipment are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency or safety of the Company’s property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method. A summary of property, plant and equipment is shown below (in millions): March 31, December 31, 2017 Land $ 120.4 $ 118.8 Buildings and improvements 821.6 797.7 Machinery and equipment 3,244.2 3,077.4 Construction in progress 384.6 355.6 Total property, plant and equipment 4,570.8 4,349.5 Less – accumulated depreciation (2,009.9 ) (1,890.1 ) Property, plant and equipment, net $ 2,560.9 $ 2,459.4 Depreciation expense was $107.1 million and $86.8 million in the three months ended March 31, 2018 and April 1, 2017 , respectively. The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. Except as discussed below, the Company does not believe that there were any indicators that would have resulted in long-lived asset impairment charges as of March 31, 2018 . The Company will, however, continue to assess the impact of any significant industry events on the realization of its long-lived assets. In the first quarters of 2018 and 2017 , the Company recognized fixed asset impairment charges of $0.9 million and $0.1 million , respectively, in conjunction with its restructuring actions (Note 2 , " Restructuring "). Investments in Affiliates In January 2018, the Company gained control of Changchun Lear FAWSN Automotive Electrical and Electronics Co., Ltd. ("Lear FAWSN") by acquiring an additional 20% interest from a joint venture partner and by amending the joint venture agreement to eliminate the substantive participating rights of the remaining joint venture partner. Prior to the amendment, Lear FAWSN was accounted for under the equity method. This transaction was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated balance sheet as of March 31, 2018 . The operating results and cash flows of Lear FAWSN are included in the accompanying condensed consolidated financial statements from the effective date of the amended joint venture agreement and are reflected in the Company’s E-Systems segment. A preliminary summary of the fair value of the assets acquired and liabilities assumed in conjunction with the transaction is shown below (in millions): Property, plant and equipment $ 10.5 Other assets and liabilities assumed, net 7.2 Goodwill 21.4 Intangible assets 7.5 $ 46.6 Recognized goodwill is attributable to the assembled workforce, expected synergies and other intangible assets that do not qualify for separate recognition. Intangible assets consist of amounts recognized for the fair value of customer-based assets and were based on an independent appraisal. Customer-based assets include Lear FAWSN's established relationships with its customers and the ability of these customers to generate future economic profits for the Company. It is currently estimated that these intangible assets have a weighted average useful life of approximately ten years . The fair values of the assets acquired and liabilities assumed in conjunction with the transaction contain preliminary estimates that may be revised as a result of additional information regarding such assets and liabilities. As of the effective date of the transaction, the fair value of the Company’s previously held equity interest in Lear FAWSN was $ 23.0 million , and the fair value of the noncontrolling interest in Lear FAWSN was $14.0 million . As a result of valuing the Company’s previously held equity interest in Lear FAWSN at fair value, the Company recognized a gain of $10.0 million , which is included in other (income) expense, net in the accompanying condensed consolidated statements of comprehensive income for the three months ended March 31, 2018 . Lear FAWSN’s annual sales are approximately $100 million . The pro forma effects of this consolidation would not materially impact the Company’s reported results for any period presented. For further information related to acquired assets measured at fair value, see Note 16 , " Financial Instruments ." |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, in the three months ended March 31, 2018 , is shown below (in millions): Seating E-Systems Total Balance at January 1, 2018 $ 1,274.4 $ 126.9 $ 1,401.3 Affiliate transaction — 21.4 21.4 Foreign currency translation and other 19.3 22.7 42.0 Balance at March 31, 2018 $ 1,293.7 $ 171.0 $ 1,464.7 Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company conducts its annual impairment testing as of the first day of its fourth quarter. The Company does not believe that there were any indicators that would have resulted in goodwill impairment charges as of March 31, 2018 . The Company will, however, continue to assess the impact of significant events or circumstances on its recorded goodwill. For further information related to the affiliate transaction, see Note 5 , " Long-Term Assets ." |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of long-term debt, net of unamortized debt issuance costs, and the related weighted average interest rates is shown below (in millions): March 31, 2018 December 31, 2017 Debt Instrument Long-Term Debt Debt Issuance Costs (2) Long-Term Debt, Net Weighted Average Interest Rate Long-Term Debt Debt Issuance Costs (2) Long-Term Debt, Net Weighted Average Interest Rate Credit Agreement — Term Loan Facility $ 246.9 $ (1.8 ) $ 245.1 3.24% $ 248.4 $ (1.8 ) $ 246.6 3.0% 5.375% Senior Notes due 2024 ("2024 Notes") 325.0 (2.3 ) 322.7 5.375% 325.0 (2.4 ) 322.6 5.375% 5.25% Senior Notes due 2025 ("2025 Notes") 650.0 (5.6 ) 644.4 5.25% 650.0 (5.8 ) 644.2 5.25% 3.8% Senior Notes due 2027 ("2027 Notes") (1) 745.0 (5.8 ) 739.2 3.885% 744.9 (5.9 ) 739.0 3.885% Other 7.7 — 7.7 N/A 8.1 — 8.1 N/A $ 1,974.6 $ (15.5 ) 1,959.1 $ 1,976.4 $ (15.9 ) 1,960.5 Less — Current portion (9.1 ) (9.0 ) Long-term debt $ 1,950.0 $ 1,951.5 (1) Net of unamortized original issue discount of $5.0 million and $5.1 million as of March 31, 2018 and December 31, 2017 , respectively (2) Unamortized portion Senior Notes The issuance date, maturity date and interest payable dates of the Company's senior unsecured 2024 Notes, 2025 Notes and 2027 Notes (together, the "Notes") are as shown below: Note Issuance Date Maturity Date Interest Payable Dates 2024 Notes March 2014 March 15, 2024 March 15 and September 15 2025 Notes November 2014 January 15, 2025 January 15 and July 15 2027 Notes August 2017 September 15, 2027 March 15 and September 15 Covenants Subject to certain exceptions, the indentures governing the Notes contain restrictive covenants that, among other things, limit the ability of the Company to: (i) create or permit certain liens and (ii) consolidate, merge or sell all or substantially all of the Company’s assets. The indenture governing the 2024 Notes limits the ability of the Company to enter into sale and leaseback transactions. The indentures governing the Notes also provide for customary events of default. As of March 31, 2018 , the Company was in compliance with all covenants under the indentures governing the Notes. Credit Agreement The Company's unsecured credit agreement (the "Credit Agreement"), dated August 8, 2017, consists of a $1.75 billion revolving credit facility (the "Revolving Credit Facility") and a $250.0 million term loan facility (the "Term Loan Facility"), both of which mature on August 8, 2022. As of March 31, 2018 and December 31, 2017 , there were no borrowings outstanding under the Revolving Credit Facility and $246.9 million and $248.4 million , respectively, of borrowings outstanding under the Term Loan Facility. In the first quarter of 2018, the Company made required principal payments of $1.5 million under the Term Loan Facility. In the first quarter of 2017, the Company made required principal payments of $6.2 million under the Company's prior term loan facility. Advances under the Revolving Credit Facility and the Term Loan Facility generally bear interest based on (i) the Eurocurrency Rate (as defined in the Credit Agreement) or (ii) the Base Rate (as defined in the Credit Agreement) plus a margin, determined in accordance with a pricing grid. The range and the rate as of March 31, 2018 , are shown below (in percentages): Eurocurrency Rate Base Rate Minimum Maximum Rate as of Minimum Maximum Rate as of Revolving Credit Agreement 1.00 % 1.60 % 1.30 % 0.00 % 0.60 % 0.30 % Term Loan Facility 1.125 % 1.90 % 1.50 % 0.125 % 0.90 % 0.50 % A facility fee, which ranges from 0.125% to 0.30% of the total amount committed under the Revolving Credit Facility, is payable quarterly. Covenants The Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens. As of March 31, 2018 , the Company was in compliance with all covenants under the Credit Agreement. Other As of March 31, 2018 , other long-term debt consists of amounts outstanding under capital leases. For further information related to the Company's debt, see Note 6, "Debt," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company sponsors defined benefit pension plans and other postretirement benefit plans (primarily for the continuation of medical benefits) for eligible employees in the United States and certain other countries. Net Periodic Pension and Other Postretirement Benefit (Credit) Cost The components of the Company’s net periodic pension benefit (credit) cost are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 U.S. Foreign U.S. Foreign Service cost $ — $ 1.7 $ — $ 1.7 Interest cost 5.0 3.8 5.4 3.8 Expected return on plan assets (6.9 ) (5.9 ) (5.9 ) (5.6 ) Amortization of actuarial loss 0.5 1.6 0.6 1.2 Settlement loss 0.2 — 0.2 0.8 Net periodic benefit (credit) cost $ (1.2 ) $ 1.2 $ 0.3 $ 1.9 In the three months ended April 1, 2017 , the Company recognized a pension settlement loss of $0.8 million related to its restructuring actions. The components of the Company’s net periodic other postretirement benefit (credit) cost are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 U.S. Foreign U.S. Foreign Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.5 0.4 0.6 0.4 Amortization of actuarial (gain) loss (0.6 ) — (0.6 ) 0.1 Amortization of prior service credit — (0.1 ) — (0.1 ) Net periodic benefit (credit) cost $ (0.1 ) $ 0.4 $ — $ 0.5 Contributions In the three months ended March 31, 2018 , employer contributions to the Company’s domestic and foreign defined benefit pension plans were $4.1 million . The Company expects contributions to its domestic and foreign defined benefit pension plans to be approximately $10 million to $15 million in 2018 . The Company may elect to make contributions in excess of minimum funding requirements in response to investment performance or changes in interest rates or when the Company believes that it is financially advantageous to do so and based on its other cash requirements. Accounting Standards Update On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The new standard requires the classification of the non-service cost components of net periodic benefit cost in other (income) expense, net and the classification of the service cost component in the same line item as other current employee compensation costs. The provisions of the standard were applied retrospectively, and the effects of adoption were not significant. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning on or after January 1, 2018, are presented in accordance with ASC 606. Comparative financial information for reporting periods beginning prior to January 1, 2018, has not been adjusted and continues to be reported in accordance with the Company's revenue recognition policies prior to the adoption of ASC 606. The Company did not record a cumulative adjustment related to the adoption of ASC 606, and the effects of adoption were not significant. The Company enters into contracts with its customers to provide production parts at the beginning of a vehicle’s life cycle. Contracts do not provide for a specified quantity of products, but once entered into, the Company is generally required to fulfill its customers’ purchasing requirements for the production life of the vehicle. These contracts may be terminated by the Company’s customers at any time. Historically, terminations of these contracts have been minimal. The Company receives annual purchase orders from its customers, which provide the annual terms for a particular production part, including price (but not quantities). Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors. Revenue is recognized at a point in time when control of the product is transferred to the customer under standard commercial terms, as the Company does not have an enforceable right to payment prior to such transfer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on the annual purchase orders, annual price reductions and ongoing price adjustments (some of which is accounted for as variable consideration). The Company does not believe that there will be significant changes to its estimates of variable consideration. The Company's customers pay for products received in accordance with payment terms that are customary within the industry. The Company's contracts with its customers do not have significant financing components. The Company records a contract liability for advances received from its customers. As of March 31, 2018, there were no significant contract liabilities recorded. Further, there were no significant contract liabilities recognized in revenue during the first quarter of 2018. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales in the condensed consolidated statements of comprehensive income. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. A summary of the Company’s revenue by reportable operating segment and geography is shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 Seating E-Systems Total Seating E-Systems Total North America $ 1,740.1 $ 315.0 $ 2,055.1 $ 1,707.8 $ 281.4 $ 1,989.2 Europe and Africa 1,752.2 691.0 2,443.2 1,339.0 576.4 1,915.4 Asia 686.1 358.0 1,044.1 691.1 232.2 923.3 South America 151.5 39.8 191.3 130.1 40.5 170.6 $ 4,329.9 $ 1,403.8 $ 5,733.7 $ 3,868.0 $ 1,130.5 $ 4,998.5 |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net includes non-income related taxes, foreign exchange gains and losses, gains and losses related to certain derivative instruments and hedging activities, gains and losses on the disposal of fixed assets, the non-service cost components of net periodic benefit cost and other miscellaneous income and expense. A summary of other (income) expense, net is shown below (in millions): Three Months Ended March 31, April 1, Other expense $ 5.5 $ 8.0 Other income (11.1 ) (4.3 ) Other (income) expense, net $ (5.6 ) $ 3.7 In the three months ended March 31, 2018 , other income includes a gain of $ 10.0 million related to gaining control of an affiliate (Note 5 , "Long-Term Assets"). In the three months ended April 1, 2017 , other income includes net foreign currency transaction gains of $5.6 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A summary of the provision for income taxes and the corresponding effective tax rate for the three months ended March 31, 2018 and April 1, 2017 , is shown below (in millions, except effective tax rates): Three Months Ended March 31, April 1, Provision for income taxes $ 77.7 $ 89.1 Pretax income before equity in net income of affiliates $ 447.8 $ 392.2 Effective tax rate 17.4 % 22.7 % The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21% , requires companies to pay a one-time transition tax on all offshore earnings that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of December 31, 2017, the Company had not completed its accounting for the tax effects of the Act. In March 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-05, "Income Taxes - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." The guidance provides for a provisional one year measurement period for entities to finalize their accounting for certain tax effects related to the Act. In the first quarter of 2018, the Company recognized a $1.3 million tax benefit adjustment to the provisional income tax expense related to the remeasurement of the December 31, 2017 deferred tax balances. The Company expects to finalize its provisional amounts by the fourth quarter of 2018. On January 1, 2018, the Company adopted ASU 2016-16, " Income Taxes - Intra-Entity Transfers of Assets Other than Inventory." The new standard requires the recognition of the income tax effects of intercompany sales and transfers of assets other than inventory, in the period in which the transfer occurs. The standard also required modified retrospective adoption. Accordingly, the Company recognized a deferred tax asset of $2.3 million and a corresponding credit to retained earnings in conjunction with the adoption. The effects of adopting the other provisions of ASU 2016-16 were not significant. In the first quarters of 2018 and 2017 , the provision for income taxes was primarily impacted by the level and mix of earnings among tax jurisdictions. The provision for income taxes was also impacted by the reduction in the U.S. federal corporate income tax rate in the first quarter of 2018. In the first quarter of 2018 , the Company recognized tax benefits of $35.1 million related to the reversal of valuation allowances on the deferred tax assets of a certain foreign subsidiary, $10.1 million related to share-based compensation and $4.1 million related to restructuring charges and various other items, offset by tax expense of $22.0 million related to an increase in foreign withholding tax on certain undistributed foreign earnings. In addition, the Company recognized a gain of $10.0 million related to obtaining control of an affiliate, for which no tax expense was provided. In the first quarter of 2017 , the Company recognized net tax benefits of $19.1 million , of which $15.5 million related to share-based compensation and $3.6 million related to restructuring charges and various other items. Excluding these items, the effective tax rate for the first quarters of 2018 and 2017 approximated the U.S. federal statutory income tax rate of 21% and 35% , respectively, adjusted for income taxes on foreign earnings, losses and remittances, valuation allowances, tax credits, income tax incentives and other permanent items. As of March 31, 2018 , the Company made its best estimate of the annual effective tax rate ("EAETR") for the full year of 2018. The Company continues to examine the potential impact of certain provisions of the Act that could affect its 2018 EAETR, including the provisions related to global intangible low-taxed income ("GILTI"), foreign derived intangible income ("FDII") and the base erosion and anti-abuse tax ("BEAT"). Accordingly, the Company's 2018 EAETR may change in subsequent interim periods as additional analysis is completed. The Company’s current and future provision for income taxes is impacted by the initial recognition of and changes in valuation allowances in certain countries. The Company intends to maintain these allowances until it is more likely than not that the deferred tax assets will be realized. The Company’s future provision for income taxes will include no tax benefit with respect to losses incurred and, except for certain jurisdictions, no tax expense with respect to income generated in these countries until the respective valuation allowances are eliminated. Accordingly, income taxes are impacted by changes in valuation allowances and the mix of earnings among jurisdictions. The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets is necessary. Such evidence includes historical results, future reversals of existing taxable temporary differences and expectations for future taxable income (exclusive of the reversal of temporary differences and carryforwards), as well as the implementation of feasible and prudent tax planning strategies. If, based on the weight of the evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or decline on a continual basis in a particular jurisdiction, the Company’s decision regarding the need for a valuation allowance could change, resulting in either the initial recognition or reversal of a valuation allowance in that jurisdiction, which could have a significant impact on income tax expense in the period recognized and subsequent periods. For further information related to obtaining control of an affiliate, see Note 5 , " Long-Term Assets ." For further information related to the Company's income taxes, see Note 7, "Income Taxes," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Net Income Per Share Attributab
Net Income Per Share Attributable to Lear | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Lear | Net Income Per Share Attributable to Lear Basic net income per share available to Lear common stockholders is computed using the two-class method by dividing net income attributable to Lear, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement are considered common shares outstanding and are included in the computation of basic net income per share available to Lear common stockholders. Diluted net income per share available to Lear common stockholders is computed using the two-class method by dividing net income attributable to Lear, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period. A summary of information used to compute basic and diluted net income per share available to Lear common stockholders is shown below (in millions, except share and per share data): Three Months Ended March 31, April 1, Net income attributable to Lear $ 353.7 $ 305.8 Less: Redeemable noncontrolling interest adjustment (5.4 ) — Net income available to Lear common stockholders $ 348.3 $ 305.8 Average common shares outstanding 67,086,326 69,658,368 Dilutive effect of common stock equivalents 476,126 668,980 Average diluted shares outstanding 67,562,452 70,327,348 Basic net income per share available to Lear common stockholders $ 5.19 $ 4.39 Diluted net income per share available to Lear common stockholders $ 5.16 $ 4.35 For further information related to the redeemable noncontrolling interest adjustment, see Note 13 , " Comprehensive Income and Equity ." |
Comprehensive Income and Equity
Comprehensive Income and Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income and Equity | Comprehensive Income and Equity Comprehensive Income Comprehensive income is defined as all changes in the Company’s net assets except changes resulting from transactions with stockholders. It differs from net income in that certain items recorded in equity are included in comprehensive income. A summary of comprehensive income and reconciliations of equity, Lear Corporation stockholders’ equity and noncontrolling interests for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended March 31, 2018 Equity Lear Corporation Stockholders' Equity Non- controlling Interests Beginning equity balance $ 4,292.6 $ 4,150.5 $ 142.1 Stock-based compensation transactions (31.2 ) (31.2 ) — Repurchase of common stock (155.4 ) (155.4 ) — Dividends declared to Lear Corporation stockholders (47.7 ) (47.7 ) — Dividends declared to noncontrolling interest holders (19.7 ) — (19.7 ) Adoption of ASU 2016-16 (Note 11, "Taxes") 2.3 2.3 — Affiliate transaction 14.0 — 14.0 Redeemable non-controlling interest adjustment (5.4 ) (5.4 ) — Acquisition of outstanding non-controlling interest (3.4 ) — (3.4 ) Comprehensive income: Net income 370.7 353.7 17.0 Other comprehensive income, net of tax: Defined benefit plan adjustments 2.3 2.3 — Derivative instruments and hedging activities 37.4 37.4 — Foreign currency translation adjustments 98.1 92.9 5.2 Other comprehensive income 137.8 132.6 5.2 Comprehensive income 508.5 486.3 22.2 Ending equity balance $ 4,554.6 $ 4,399.4 $ 155.2 A summary of comprehensive income and a reconciliation of Lear's redeemable non-controlling interests for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended Beginning redeemable noncontrolling interest balance $ 153.4 Redeemable noncontrolling interest adjustment 5.4 Comprehensive income: Net income 3.5 Foreign currency translation adjustments 8.0 Comprehensive income 11.5 Ending redeemable noncontrolling interest balance $ 170.3 In accordance with GAAP, the Company records redeemable noncontrolling interests at the greater of (1) the initial carrying amount adjusted for the noncontrolling interest holder’s share of total comprehensive income or loss and dividends ("noncontrolling interest carrying value") or (2) the redemption value as of and based on conditions existing as of the reporting date. Required redeemable noncontrolling interest adjustments are recorded as an increase to redeemable noncontrolling interests, with an offsetting adjustment to retained earnings. The redeemable noncontrolling interest is classified in mezzanine equity in the accompanying condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 . For further information related to the redeemable noncontrolling interest adjustment, see Note 12 , " Net Income Per Share Attributable to Lear ," as well as Note 5, "Investments in Affiliates and Other Related Party Transactions," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended Defined benefit plans: Balance at beginning of period $ (184.0 ) Reclassification adjustments (net of tax expense of $0.3 million) 1.3 Other comprehensive income recognized during the period (net of tax impact of $— million) 1.0 Balance at end of period $ (181.7 ) Derivative instruments and hedging: Balance at beginning of period $ (22.9 ) Reclassification adjustments (net of tax benefit of $0.7 million) (2.4 ) Other comprehensive income recognized during the period (net of tax expense of $11.0 million) 39.8 Balance at end of period $ 14.5 Foreign currency translation: Balance at beginning of period $ (306.5 ) Other comprehensive income recognized during the period (net of tax impact of $— million) 92.9 Balance at end of period $ (213.6 ) In the three months ended March 31, 2018 , foreign currency translation adjustments are related primarily to the strengthening of the Chinese renminbi and the Euro relative to the U.S. dollar and include pretax losses of $0.3 million related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. A summary of comprehensive income and reconciliations of equity, Lear Corporation stockholders’ equity and noncontrolling interests for the three months ended April 1, 2017 , is shown below (in millions): Three Months Ended April 1, 2017 Equity Lear Corporation Stockholders' Equity Non- controlling Interests Beginning equity balance $ 3,192.9 $ 3,057.2 $ 135.7 Stock-based compensation transactions (25.8 ) (25.8 ) — Repurchase of common stock (127.5 ) (127.5 ) — Dividends declared to Lear Corporation stockholders (35.7 ) (35.7 ) — Dividends declared to noncontrolling interest holders (17.0 ) — (17.0 ) Adoption of ASU 2016-09 54.5 54.5 — Comprehensive income: Net income 318.5 305.8 12.7 Other comprehensive income, net of tax: Defined benefit plan adjustments 0.7 0.7 — Derivative instruments and hedging activities 52.1 52.1 — Foreign currency translation adjustments 50.8 49.7 1.1 Other comprehensive income 103.6 102.5 1.1 Comprehensive income 422.1 408.3 13.8 Ending equity balance $ 3,463.5 $ 3,331.0 $ 132.5 A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended April 1, 2017 , is shown below (in millions): Three Months Ended Defined benefit plans: Balance at beginning of period $ (192.8 ) Reclassification adjustments (net of tax expense of $0.5 million) 1.7 Other comprehensive loss recognized during the period (net of tax impact of $— million) (1.0 ) Balance at end of period $ (192.1 ) Derivative instruments and hedging: Balance at beginning of period $ (45.1 ) Reclassification adjustments (net of tax expense of $3.0 million) 8.8 Other comprehensive income recognized during the period (net of tax expense of $14.7 million) 43.3 Balance at end of period $ 7.0 Foreign currency translation: Balance at beginning of period $ (597.7 ) Other comprehensive income recognized during the period (net of tax impact of $— million) 49.7 Balance at end of period $ (548.0 ) In the three months ended April 1, 2017 , foreign currency translation adjustments are related primarily to the strengthening of the Euro, the Chinese renminbi and the Brazilian real relative to the U.S. dollar and include pretax losses of $0.6 million related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. For further information regarding reclassification adjustments related to the Company's defined benefit plans, see Note 8 , " Pension and Other Postretirement Benefit Plans ." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 16 , " Financial Instruments ." Lear Corporation Stockholders’ Equity Common Stock Share Repurchase Program On February 13, 2018, the Company's Board of Directors authorized an increase to the existing common stock share repurchase program to provide for a remaining aggregate repurchase authorization of $1.5 billion and extended the term of the program to December 31, 2020. Share repurchases in the first three months of 2018 are shown below (in millions except for shares and per share amounts): Three Months Ended As of March 31, 2018 Aggregate Repurchases (1) Cash paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 155.4 $ 145.4 829,360 $ 187.41 $ 1,349.6 (1) Includes $5.1 million of purchases prior to the increased authorization (2) Excludes commissions Since the first quarter of 2011, the Company's Board of Directors has authorized $5.0 billion in share repurchases under the common stock share repurchase program. As of the end of the first quarter of 2018 , the Company has repurchased, in aggregate, $3.7 billion of its outstanding common stock, at an average price of $81.72 per share, excluding commissions and related fees. The Company may implement these share repurchases through a variety of methods, including, but not limited to, open market purchases, accelerated stock repurchase programs and structured repurchase transactions. The extent to which the Company will repurchase its outstanding common stock and the timing of such repurchases will depend upon its financial condition, prevailing market conditions, alternative uses of capital and other factors. In addition to shares repurchased under the Company’s common stock share repurchase program described above, the Company classified shares withheld from the settlement of the Company’s restricted stock unit and performance share awards to cover tax withholding requirements as common stock held in treasury in the accompanying condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 . Quarterly Dividend In the first three months of 2018 and 2017 , the Company’s Board of Directors declared quarterly cash dividends of $0.70 and $0.50 per share of common stock, respectively. Dividends declared and paid are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 Dividends declared $ 47.7 $ 35.7 Dividends paid 50.7 36.7 Dividends payable on common shares to be distributed under the Company’s stock-based compensation program and common shares contemplated as part of the Company’s emergence from Chapter 11 bankruptcy proceedings will be paid when such common shares are distributed. Noncontrolling Interests In the first three months of 2018 , the Company gained control of an affiliate and acquired the outstanding non-controlling interest of another affiliate. For further information related to the affiliate transaction, see Note 5 , " Long-Term Assets ." |
Legal and Other Contingencies
Legal and Other Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Other Contingencies | Legal and Other Contingencies As of March 31, 2018 and December 31, 2017 , the Company had recorded reserves for pending legal disputes, including commercial disputes and other matters, of $25.6 million and $25.8 million , respectively. Such reserves reflect amounts recognized in accordance with GAAP and exclude the cost of legal representation. Product liability and warranty reserves are recorded separately from legal reserves, as described below. Commercial Disputes The Company is involved from time to time in legal proceedings and claims, including, without limitation, commercial or contractual disputes with its customers, suppliers and competitors. These disputes vary in nature and are usually resolved by negotiations between the parties. Product Liability and Warranty Matters In the event that use of the Company’s products results in, or is alleged to result in, bodily injury and/or property damage or other losses, the Company may be subject to product liability lawsuits and other claims. Such lawsuits generally seek compensatory damages, punitive damages and attorneys’ fees and costs. In addition, if any of the Company’s products are, or are alleged to be, defective, the Company may be required or requested by its customers to participate in a recall or other corrective action involving such products. Certain of the Company’s customers have asserted claims against the Company for costs related to recalls or other corrective actions involving its products. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend such claims. To a lesser extent, the Company is a party to agreements with certain of its customers, whereby these customers may pursue claims against the Company for contribution of all or a portion of the amounts sought in connection with product liability and warranty claims. In certain instances, allegedly defective products may be supplied by Tier 2 suppliers. The Company may seek recovery from its suppliers of materials or services included within the Company’s products that are associated with product liability and warranty claims. The Company carries insurance for certain legal matters, including product liability claims, but such coverage may be limited. The Company does not maintain insurance for product warranty or recall matters. Future dispositions with respect to the Company’s product liability claims that were subject to compromise under the Chapter 11 bankruptcy proceedings will be satisfied out of a common stock and warrant reserve established for that purpose. The Company records product warranty reserves when liability is probable and related amounts are reasonably estimable. A summary of the changes in reserves for product liability and warranty claims for the three months ended March 31, 2018 , is shown below (in millions): Balance at January 1, 2018 $ 46.5 Expense, net (including changes in estimates) 3.4 Settlements (9.5 ) Foreign currency translation and other 0.5 Balance at March 31, 2018 $ 40.9 Environmental Matters The Company is subject to local, state, federal and foreign laws, regulations and ordinances which govern activities or operations that may have adverse environmental effects and which impose liability for clean-up costs resulting from past spills, disposals or other releases of hazardous wastes and environmental compliance. The Company’s policy is to comply with all applicable environmental laws and to maintain an environmental management program based on ISO 14001 to ensure compliance with this standard. However, the Company currently is, has been and in the future may become the subject of formal or informal enforcement actions or procedures. As of March 31, 2018 and December 31, 2017 , the Company had recorded environmental reserves of $8.9 million and $9.0 million , respectively. The Company does not believe that the environmental liabilities associated with its current and former properties will have a material adverse impact on its business, financial condition, results of operations or cash flows; however, no assurances can be given in this regard. Other Matters The Company is involved from time to time in various other legal proceedings and claims, including, without limitation, intellectual property matters, tax claims and employment matters. Although the outcome of any legal matter cannot be predicted with certainty, the Company does not believe that any of the other legal proceedings or claims in which the Company is currently involved, either individually or in the aggregate, will have a material adverse impact on its business, financial condition, results of operations or cash flows. However, no assurances can be given in this regard. Although the Company records reserves for legal disputes, product liability and warranty claims and environmental and other matters in accordance with GAAP, the ultimate outcomes of these matters are inherently uncertain. Actual results may differ significantly from current estimates. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has two reportable operating segments: Seating, which includes complete seat systems and all major seat components, including seat covers and surface materials such as leather and fabric, seat structures and mechanisms, seat foam and headrests, and E-Systems, which includes complete electrical distribution systems, electronic control modules and associated software and wireless communication modules. Key components in the electrical distribution system include wire harnesses, terminals and connectors and junction boxes, including components and systems for high power battery electric vehicle and hybrid electric vehicle power management and distribution systems. The other category includes unallocated costs related to corporate headquarters, regional headquarters and the elimination of intercompany activities, none of which meets the requirements for being classified as an operating segment. The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before equity in net income of affiliates, interest expense and other expense, net, ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions): Three Months Ended March 31, 2018 Seating E-Systems Other Consolidated Revenues from external customers $ 4,329.9 $ 1,403.8 $ — $ 5,733.7 Segment earnings (1) 339.5 190.8 (67.4 ) 462.9 Depreciation and amortization 80.0 36.6 3.6 120.2 Capital expenditures 112.3 48.2 2.3 162.8 Total assets 7,901.5 2,631.3 2,148.4 12,681.2 Three Months Ended April 1, 2017 Seating E-Systems Other Consolidated Revenues from external customers $ 3,868.0 $ 1,130.5 $ — $ 4,998.5 Segment earnings (1) 320.3 164.9 (68.5 ) 416.7 Depreciation and amortization 65.0 28.3 3.6 96.9 Capital expenditures 82.7 29.5 8.6 120.8 Total assets 6,824.5 1,835.7 1,940.3 10,600.5 (1) See definition above For the three months ended March 31, 2018 , segment earnings include restructuring charges of $14.4 million , $1.9 million and $2.1 million in the Seating and E-Systems segments and in the other category, respectively (Note 2 , " Restructuring "). For the three months ended April 1, 2017 , segment earnings include restructuring charges of $6.7 million , $1.7 million and $0.1 million in the Seating and E-Systems segments and in the other category, respectively (Note 2 , " Restructuring "). A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions): Three Months Ended March 31, April 1, Segment earnings $ 462.9 $ 416.7 Interest expense 20.7 20.8 Other (income) expense, net (5.6 ) 3.7 Consolidated income before provision for income taxes and equity in net income of affiliates $ 447.8 $ 392.2 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Instruments The carrying values of the Company’s debt instruments vary from their fair values. The fair values were determined by reference to the quoted market prices of these securities (Level 2 input based on the GAAP fair value hierarchy). The estimated fair value, as well as the carrying value, of the Company's debt instruments are shown below (in millions): March 31, December 31, 2017 Estimated aggregate fair value (1) $ 1,994.8 $ 2,033.5 Aggregate carrying value (1) (2) 1,971.9 1,973.4 (1) Credit agreement and senior notes (excludes "other" debt) (2) Excludes the impact of unamortized original issue discount and debt issuance costs Cash, Cash Equivalents and Restricted Cash On January 1, 2018, the Company adopted ASU 2016-18, "Restricted Cash." The new standard requires that changes in restricted cash be reflected with changes in cash and cash equivalents on the statement of cash flows and that a reconciliation between cash and cash equivalents presented on the balance sheet and to cash, cash equivalents and restricted cash presented on the statement of cash flows be provided. The provisions of the standard were applied retrospectively, and the effects of adoption were not significant. The Company has on deposit with banks cash that is legally restricted as to use or withdrawal. A reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the condensed consolidated statements of cash flows is shown below (in millions): March 31, April 1, 2017 Balance sheet - cash and cash equivalents $ 1,268.5 $ 1,209.7 Restricted cash included in other current assets 8.4 — Restricted cash included in other long-term assets 17.6 — Statement of cash flows - cash, cash equivalents and restricted cash $ 1,294.5 $ 1,209.7 Marketable Equity Securities Marketable equity securities, which the Company accounts for under the fair value option, are included in the accompanying condensed consolidated balance sheets as shown below (in millions): March 31, December 31, 2017 Current assets $ — $ 3.2 Other long-term assets 45.6 40.6 $ 45.6 $ 43.8 Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in the accompanying condensed consolidated statement of comprehensive income as a component of other (income) expense, net. The fair value of the marketable equity securities is determined by reference to quoted market prices in active markets (Level 1 input based on the GAAP fair value hierarchy). Derivative Instruments and Hedging Activities The Company has used derivative financial instruments, including forwards, futures, options, swaps and other derivative contracts to reduce the effects of fluctuations in foreign exchange rates and interest rates and the resulting variability of the Company’s operating results. The Company is not a party to leveraged derivatives. The Company’s derivative financial instruments are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. On the date that a derivative contract for a hedging instrument is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge), (3) a hedge of a net investment in a foreign operation (a net investment hedge) or (4) a contract not designated as a hedging instrument. For a fair value hedge, the change in the fair value of the derivative is recorded in earnings and reflected in the condensed consolidated statement of comprehensive income on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a cash flow hedge, the change in the fair value of the derivative is recorded in accumulated other comprehensive loss in the condensed consolidated balance sheet. When the underlying hedged transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in the condensed consolidated statement of comprehensive income on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a net investment hedge, the change in the fair value of the derivative is recorded in cumulative translation adjustment, which is a component of accumulated other comprehensive loss in the condensed consolidated balance sheet. Changes in the fair value of contracts not designated as hedging instruments are recorded in earnings and reflected in the condensed consolidated statement of comprehensive income as other expense, net. On January 1, 2018, the Company early adopted ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities." The new standard eliminates the requirement to separately measure and report hedge ineffectiveness, due to a difference between the economic terms of the hedge instrument and the underlying transaction, and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same line as the hedged item in the condensed consolidated statement of comprehensive income. The standard also modifies the accounting for components excluded from the assessment of hedge effectiveness and simplifies the application of hedge accounting in certain situations. The provisions of the standard were applied on a modified retrospective basis, and the effects of adoption were not significant. Foreign Exchange The Company uses forwards, swaps and other derivative contracts to reduce the effects of fluctuations in foreign exchange rates on known foreign currency exposures. Gains and losses on the derivative instruments are intended to offset gains and losses on the hedged transaction in an effort to reduce exposure to fluctuations in foreign exchange rates. The principal currencies hedged by the Company include the Mexican peso, various European currencies, the Thai baht, the Japanese yen, the Chinese renminbi and the Philippine peso. The notional amount, estimated fair value and related balance sheet classification of the Company's foreign currency derivative contracts are shown below (in millions, except for maturities): March 31, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 39.4 $ 16.9 Other long-term assets 6.4 1.3 Other current liabilities (15.5 ) (28.4 ) Other long-term liabilities (0.7 ) (8.0 ) 29.6 (18.2 ) Notional amount $ 1,408.0 $ 1,538.5 Outstanding maturities in months, not to exceed 24 24 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 6.5 $ 1.8 Other current liabilities (5.0 ) (6.4 ) 1.5 (4.6 ) Notional amount $ 1,229.9 $ 681.1 Outstanding maturities in months, not to exceed 9 12 Total fair value $ 31.1 $ (22.8 ) Total notional amount $ 2,637.9 $ 2,219.6 Foreign currency derivative contracts not designated as hedging instruments consist principally of hedges of cash transactions, intercompany loans and certain other balance sheet exposures. Accumulated Other Comprehensive Loss - Derivative Instruments and Hedging Pretax amounts related to foreign currency derivative contracts designated as cash flow hedges that were recognized in and reclassified from accumulated other comprehensive loss are shown below (in millions): Three Months Ended March 31, April 1, Gains recognized in accumulated other comprehensive loss: $ 50.9 $ 58.1 (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales 1.7 0.1 Cost of sales (4.8 ) 11.7 (3.1 ) 11.8 Comprehensive income $ 47.8 $ 69.9 As of March 31, 2018 and December 31, 2017 , pretax net gains (losses) of approximately $29.6 million and ($18.2) million , respectively, related to the Company’s derivative instruments and hedging activities were recorded in accumulated other comprehensive loss. During the next twelve month period, the Company expects to reclassify into earnings net gains of approximately $24.0 million recorded in accumulated other comprehensive loss as of March 31, 2018 . Such gains will be reclassified at the time that the underlying hedged transactions are realized. Fair Value Measurements GAAP provides that fair value is an exit price, defined as a market-based measurement that represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are based on one or more of the following three valuation techniques: Market: This approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income : This approach uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost: This approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). Further, GAAP prioritizes the inputs and assumptions used in the valuation techniques described above into a three-tier fair value hierarchy as follows: Level 1: Observable inputs, such as quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Inputs, other than quoted market prices included in Level 1, that are observable either directly or indirectly for the asset or liability. Level 3: Unobservable inputs that reflect the entity’s own assumptions about the exit price of the asset or liability. Unobservable inputs may be used if there is little or no market data for the asset or liability at the measurement date. The Company discloses fair value measurements and the related valuation techniques and fair value hierarchy level for its assets and liabilities that are measured or disclosed at fair value. Items Measured at Fair Value on a Recurring Basis Fair value measurements and the related valuation techniques and fair value hierarchy level for the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 , are shown below (in millions): March 31, 2018 Frequency Asset (Liability) Valuation Technique Level 1 Level 2 Level 3 Foreign currency derivative contracts, net Recurring $ 31.1 Market/ Income $ — $ 31.1 $ — Marketable equity securities Recurring $ 45.6 Market $ 45.6 $ — $ — December 31, 2017 Frequency Asset (Liability) Valuation Technique Level 1 Level 2 Level 3 Foreign currency derivative contracts, net Recurring $ (22.8 ) Market/ Income $ — $ (22.8 ) $ — Marketable equity securities Recurring $ 43.8 Market $ 43.8 $ — $ — The Company determines the fair value of its derivative contracts using quoted market prices to calculate the forward values and then discounts such forward values to the present value. The discount rates used are based on quoted bank deposit or swap interest rates. If a derivative contract is in a net liability position, the Company adjusts these discount rates, if required, by an estimate of the credit spread that would be applied by market participants purchasing these contracts from the Company’s counterparties. If an estimate of the credit spread is required, the Company uses significant assumptions and factors other than quoted market rates, which would result in the classification of its derivative liabilities within Level 3 of the fair value hierarchy. As of March 31, 2018 and December 31, 2017 , there were no derivative contracts that were classified within Level 3 of the fair value hierarchy. In addition, there were no transfers in or out of Level 3 of the fair value hierarchy in 2018 . Items Measured at Fair Value on a Non-Recurring Basis The Company measures certain assets and liabilities at fair value on a non-recurring basis, which are not included in the table above. As these non-recurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. In 2018, as a result of the Lear FAWSN transaction, Level 3 fair value estimates of $10.5 million related to property, plant and equipment, $7.5 million related to intangible assets and $14.0 million of noncontrolling interests are recorded in the accompanying condensed consolidated balance sheet as of March 31, 2018 . In addition, the Lear FAWSN transaction required a Level 3 fair value estimate related to the Company's previously held equity interest of $23.0 million . These Level 3 fair value estimates were determined as of the effective date of the transaction. Fair value estimates of property, plant and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were based on a combination of market and cost approaches, as appropriate. Fair value estimates of customer-based intangible assets were based on the present value of future earnings attributable to the asset group after recognition of required returns to other contributory assets. Fair value estimates of noncontrolling and equity interests were based on the present value of future cash flows and a value to earnings multiple approach and reflect discounts for the lack of control and the lack of marketability associated with noncontrolling and equity interests. As of March 31, 2018 , there were no additional significant assets or liabilities measured at fair value on a non-recurring basis. For further information related to assets and liabilities measured at fair value on a non-recurring basis, see Note 5 , " Long-Term Assets ." |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Standards Adopted in 2018 On January 1, 2018, the Company adopted the ASUs summarized below: Standard Adopted Description Effective Date ASU 2014-09, Revenue from Contracts with Customers The standard replaces existing revenue recognition guidance and requires additional financial statement disclosures. See Note 9, "Revenue Recognition." January 1, 2018 ASU 2016-01 and ASU 2018-03, Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires equity investments and other ownership interests in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value through earnings. A practicability exception exists for equity investments without readily determinable fair values. The effects of adoption were not significant. January 1, 2018 ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments The standard addresses the classification of cash flows related to various transactions, including debt prepayment and extinguishment costs, contingent consideration and proceeds from insurance claims. The effects of adoption were not significant. January 1, 2018 ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other than Inventory The standard requires the recognition of the income tax effects of intercompany sales and transfers (other than inventory) when the sales and transfers occur. See Note 11, "Income Taxes." January 1, 2018 ASU 2016-18, Restricted Cash The standard provides guidance on the presentation of restricted cash on the statement of cash flows. See Note 16, "Financial Instruments." January 1, 2018 ASU 2017-01, Clarifying the Definition of a Business The standard provides a new framework to use when determining if a set of assets and activities is a business. The effects of adoption were not significant. January 1, 2018 ASU 2017-05, Gains and Losses from the Derecognition of Nonfinancial Assets The standard provides guidance for recognizing gains and losses on nonfinancial assets (including land, buildings and intangible assets) to noncustomers. Adoption must coincide with ASU 2014-09. The effects of adoption were not significant. January 1, 2018 ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The standard was issued to address the net presentation of the components of net benefit cost. The standard requires that service cost be presented in the same line item as other current employee compensation costs and that the remaining components of net benefit cost be presented in a separate line item outside of any subtotal for income from operations. See Note 8, "Pension and Other Postretirement Benefit Plans." January 1, 2018 ASU 2017-09, Stock Compensation - Scope of Modification Accounting The standard provides guidance intended to reduce diversity in practice when accounting for a modification to the terms and conditions of a share-based payment award. The effects of adoption were not significant. January 1, 2018 ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities The standard contains changes intended to better portray the economic results of hedging activities, as well as targeted improvements to simplify hedge accounting. The Company elected to early adopt the standard effective January 1, 2018. See Note 16, "Financial Instruments." January 1, 2018 (early adopted) ASU 2018-05, Income Taxes - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 The standard provides guidance for companies that may not have completed their accounting for the income tax effects of the Act in the period of enactment. See Note 11, "Income Taxes." January 1, 2018 Standards Effective After 2018 The Company has considered the ASUs summarized below, effective after 2018, which could significantly impact its financial statements: Standards Pending Adoption Description Anticipated Impact Effective Date ASU 2016-02 and 2018-01, Leases The standard requires that a lessee recognize on its balance sheet right-of-use assets and corresponding liabilities resulting from leasing transactions, as well as additional financial statement disclosures. Currently, GAAP only requires balance sheet recognition for leases classified as capital leases. The provisions of this update apply to substantially all leased assets. The Company is currently evaluating the impact of this update. For additional information on the Company’s operating lease commitments, see Note 11, "Commitments and Contingencies," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. January 1, 2019 The Company has considered the ASUs summarized below, effective after 2018, none of which are expected to significantly impact its financial statements: Standards Pending Adoption Description Effective Date ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The new standard allows for the reclassification from accumulated other comprehensive income to retained earnings, "stranded" tax effects resulting from the Act. January 1, 2019 ASU 2016-13, Measurement of Credit Losses on Financial Instruments The standard changes the impairment model for most financial instruments to an "expected loss" model. The new model will generally result in earlier recognition of credit losses. January 1, 2020 ASU 2017-04, Simplifying the Test for Goodwill Impairment The standard simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based on the amount of a reporting unit's carrying value in excess of its fair value. This eliminates the requirement to calculate the implied fair value of goodwill or what is known as "Step 2" under the current guidance. January 1, 2020 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The accompanying condensed consolidated financial statements include the accounts of Lear, a Delaware corporation, and the wholly owned and less than wholly owned subsidiaries controlled by Lear. In addition, Lear consolidates all entities, including variable interest entities, in which it has a controlling financial interest. Investments in affiliates in which Lear does not have control but does have the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. |
Fiscal period reporting | The Company’s annual financial results are reported on a calendar year basis, and quarterly interim results are reported using a thirteen week reporting calendar. |
Reclassifications | Certain amounts in the prior period’s financial statements have been reclassified to conform to the presentation used in the quarter ended March 31, 2018 |
Restructuring costs | Restructuring costs include employee termination benefits, fixed asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. These incremental costs principally include equipment and personnel relocation costs. In addition to restructuring costs, the Company incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company’s condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded as restructuring actions are approved and/or implemented. |
Inventories | Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. |
Pre-production costs related to long-term supply arrangement | The Company incurs pre-production engineering and development ("E&D") and tooling costs related to the products produced for its customers under long-term supply agreements. The Company expenses all pre-production E&D costs for which reimbursement is not contractually guaranteed by the customer. In addition, the Company expenses all pre-production tooling costs related to customer-owned tools for which reimbursement is not contractually guaranteed by the customer or for which the Company does not have a non-cancelable right to use the tooling. |
Property, plant and equipment | Property, plant and equipment is stated at cost. Costs associated with the repair and maintenance of the Company’s property, plant and equipment are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency or safety of the Company’s property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method. |
Impairment of long-lived assets | The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. Except as discussed below, the Company does not believe that there were any indicators that would have resulted in long-lived asset impairment charges as of March 31, 2018 . The Company will, however, continue to assess the impact of any significant industry events on the realization of its long-lived assets. |
Impairment of goodwill | Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company conducts its annual impairment testing as of the first day of its fourth quarter. |
Revenue recognition | The Company enters into contracts with its customers to provide production parts at the beginning of a vehicle’s life cycle. Contracts do not provide for a specified quantity of products, but once entered into, the Company is generally required to fulfill its customers’ purchasing requirements for the production life of the vehicle. These contracts may be terminated by the Company’s customers at any time. Historically, terminations of these contracts have been minimal. The Company receives annual purchase orders from its customers, which provide the annual terms for a particular production part, including price (but not quantities). Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors. Revenue is recognized at a point in time when control of the product is transferred to the customer under standard commercial terms, as the Company does not have an enforceable right to payment prior to such transfer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on the annual purchase orders, annual price reductions and ongoing price adjustments (some of which is accounted for as variable consideration). The Company does not believe that there will be significant changes to its estimates of variable consideration. The Company's customers pay for products received in accordance with payment terms that are customary within the industry. The Company's contracts with its customers do not have significant financing components. The Company records a contract liability for advances received from its customers. As of March 31, 2018, there were no significant contract liabilities recorded. Further, there were no significant contract liabilities recognized in revenue during the first quarter of 2018. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales in the condensed consolidated statements of comprehensive income. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. |
Net income per share attributable to Lear | Basic net income per share available to Lear common stockholders is computed using the two-class method by dividing net income attributable to Lear, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement are considered common shares outstanding and are included in the computation of basic net income per share available to Lear common stockholders. Diluted net income per share available to Lear common stockholders is computed using the two-class method by dividing net income attributable to Lear, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period. |
Redeemable noncontrolling interest | In accordance with GAAP, the Company records redeemable noncontrolling interests at the greater of (1) the initial carrying amount adjusted for the noncontrolling interest holder’s share of total comprehensive income or loss and dividends ("noncontrolling interest carrying value") or (2) the redemption value as of and based on conditions existing as of the reporting date. Required redeemable noncontrolling interest adjustments are recorded as an increase to redeemable noncontrolling interests, with an offsetting adjustment to retained earnings. |
Marketable equity securities | Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in the accompanying condensed consolidated statement of comprehensive income as a component of other (income) expense, net. The fair value of the marketable equity securities is determined by reference to quoted market prices in active markets (Level 1 input based on the GAAP fair value hierarchy). |
Fair value of financial instruments | The Company measures certain assets and liabilities at fair value on a non-recurring basis, which are not included in the table above. As these non-recurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. GAAP provides that fair value is an exit price, defined as a market-based measurement that represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are based on one or more of the following three valuation techniques: Market: This approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income : This approach uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost: This approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). Further, GAAP prioritizes the inputs and assumptions used in the valuation techniques described above into a three-tier fair value hierarchy as follows: Level 1: Observable inputs, such as quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Inputs, other than quoted market prices included in Level 1, that are observable either directly or indirectly for the asset or liability. Level 3: Unobservable inputs that reflect the entity’s own assumptions about the exit price of the asset or liability. Unobservable inputs may be used if there is little or no market data for the asset or liability at the measurement date. The Company discloses fair value measurements and the related valuation techniques and fair value hierarchy level for its assets and liabilities that are measured or disclosed at fair value. |
Derivative instruments and hedging activities | The Company has used derivative financial instruments, including forwards, futures, options, swaps and other derivative contracts to reduce the effects of fluctuations in foreign exchange rates and interest rates and the resulting variability of the Company’s operating results. The Company is not a party to leveraged derivatives. The Company’s derivative financial instruments are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. On the date that a derivative contract for a hedging instrument is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge), (3) a hedge of a net investment in a foreign operation (a net investment hedge) or (4) a contract not designated as a hedging instrument. For a fair value hedge, the change in the fair value of the derivative is recorded in earnings and reflected in the condensed consolidated statement of comprehensive income on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a cash flow hedge, the change in the fair value of the derivative is recorded in accumulated other comprehensive loss in the condensed consolidated balance sheet. When the underlying hedged transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in the condensed consolidated statement of comprehensive income on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a net investment hedge, the change in the fair value of the derivative is recorded in cumulative translation adjustment, which is a component of accumulated other comprehensive loss in the condensed consolidated balance sheet. Changes in the fair value of contracts not designated as hedging instruments are recorded in earnings and reflected in the condensed consolidated statement of comprehensive income as other expense, net. The Company determines the fair value of its derivative contracts using quoted market prices to calculate the forward values and then discounts such forward values to the present value. The discount rates used are based on quoted bank deposit or swap interest rates. If a derivative contract is in a net liability position, the Company adjusts these discount rates, if required, by an estimate of the credit spread that would be applied by market participants purchasing these contracts from the Company’s counterparties. If an estimate of the credit spread is required, the Company uses significant assumptions and factors other than quoted market rates, which would result in the classification of its derivative liabilities within Level 3 of the fair value hierarchy. The Company uses forwards, swaps and other derivative contracts to reduce the effects of fluctuations in foreign exchange rates on known foreign currency exposures. Gains and losses on the derivative instruments are intended to offset gains and losses on the hedged transaction in an effort to reduce exposure to fluctuations in foreign exchange rates. |
New accounting pronouncements | Standards Adopted in 2018 On January 1, 2018, the Company adopted the ASUs summarized below: Standard Adopted Description Effective Date ASU 2014-09, Revenue from Contracts with Customers The standard replaces existing revenue recognition guidance and requires additional financial statement disclosures. See Note 9, "Revenue Recognition." January 1, 2018 ASU 2016-01 and ASU 2018-03, Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires equity investments and other ownership interests in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value through earnings. A practicability exception exists for equity investments without readily determinable fair values. The effects of adoption were not significant. January 1, 2018 ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments The standard addresses the classification of cash flows related to various transactions, including debt prepayment and extinguishment costs, contingent consideration and proceeds from insurance claims. The effects of adoption were not significant. January 1, 2018 ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other than Inventory The standard requires the recognition of the income tax effects of intercompany sales and transfers (other than inventory) when the sales and transfers occur. See Note 11, "Income Taxes." January 1, 2018 ASU 2016-18, Restricted Cash The standard provides guidance on the presentation of restricted cash on the statement of cash flows. See Note 16, "Financial Instruments." January 1, 2018 ASU 2017-01, Clarifying the Definition of a Business The standard provides a new framework to use when determining if a set of assets and activities is a business. The effects of adoption were not significant. January 1, 2018 ASU 2017-05, Gains and Losses from the Derecognition of Nonfinancial Assets The standard provides guidance for recognizing gains and losses on nonfinancial assets (including land, buildings and intangible assets) to noncustomers. Adoption must coincide with ASU 2014-09. The effects of adoption were not significant. January 1, 2018 ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The standard was issued to address the net presentation of the components of net benefit cost. The standard requires that service cost be presented in the same line item as other current employee compensation costs and that the remaining components of net benefit cost be presented in a separate line item outside of any subtotal for income from operations. See Note 8, "Pension and Other Postretirement Benefit Plans." January 1, 2018 ASU 2017-09, Stock Compensation - Scope of Modification Accounting The standard provides guidance intended to reduce diversity in practice when accounting for a modification to the terms and conditions of a share-based payment award. The effects of adoption were not significant. January 1, 2018 ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities The standard contains changes intended to better portray the economic results of hedging activities, as well as targeted improvements to simplify hedge accounting. The Company elected to early adopt the standard effective January 1, 2018. See Note 16, "Financial Instruments." January 1, 2018 (early adopted) ASU 2018-05, Income Taxes - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 The standard provides guidance for companies that may not have completed their accounting for the income tax effects of the Act in the period of enactment. See Note 11, "Income Taxes." January 1, 2018 Standards Effective After 2018 The Company has considered the ASUs summarized below, effective after 2018, which could significantly impact its financial statements: Standards Pending Adoption Description Anticipated Impact Effective Date ASU 2016-02 and 2018-01, Leases The standard requires that a lessee recognize on its balance sheet right-of-use assets and corresponding liabilities resulting from leasing transactions, as well as additional financial statement disclosures. Currently, GAAP only requires balance sheet recognition for leases classified as capital leases. The provisions of this update apply to substantially all leased assets. The Company is currently evaluating the impact of this update. For additional information on the Company’s operating lease commitments, see Note 11, "Commitments and Contingencies," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. January 1, 2019 The Company has considered the ASUs summarized below, effective after 2018, none of which are expected to significantly impact its financial statements: Standards Pending Adoption Description Effective Date ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The new standard allows for the reclassification from accumulated other comprehensive income to retained earnings, "stranded" tax effects resulting from the Act. January 1, 2019 ASU 2016-13, Measurement of Credit Losses on Financial Instruments The standard changes the impairment model for most financial instruments to an "expected loss" model. The new model will generally result in earlier recognition of credit losses. January 1, 2020 ASU 2017-04, Simplifying the Test for Goodwill Impairment The standard simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based on the amount of a reporting unit's carrying value in excess of its fair value. This eliminates the requirement to calculate the implied fair value of goodwill or what is known as "Step 2" under the current guidance. January 1, 2020 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activity | A summary of 2018 activity is shown below (in millions): Accrual as of 2018 Utilization Accrual as of January 1, 2018 Charges Cash Non-cash March 31, 2018 Employee termination benefits $ 93.0 $ 16.3 $ (13.8 ) $ — $ 95.5 Asset impairment charges — 0.9 — (0.9 ) — Contract termination costs 5.0 0.3 (0.2 ) — 5.1 Other related costs — 0.9 (0.9 ) — — Total $ 98.0 $ 18.4 $ (14.9 ) $ (0.9 ) $ 100.6 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is shown below (in millions): March 31, December 31, 2017 Raw materials $ 918.8 $ 869.3 Work-in-process 129.0 120.8 Finished goods 334.6 324.8 Reserves (116.1 ) (109.2 ) Inventories $ 1,266.3 $ 1,205.7 |
Pre-Production Costs Related 26
Pre-Production Costs Related to Long-Term Supply Agreements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements | The classification of recoverable customer E&D and tooling costs related to long-term supply agreements is shown below (in millions): March 31, December 31, 2017 Current $ 225.1 $ 248.1 Long-term 66.8 59.3 Recoverable customer E&D and tooling $ 291.9 $ 307.4 |
Long-Term Assets (Tables)
Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment is shown below (in millions): March 31, December 31, 2017 Land $ 120.4 $ 118.8 Buildings and improvements 821.6 797.7 Machinery and equipment 3,244.2 3,077.4 Construction in progress 384.6 355.6 Total property, plant and equipment 4,570.8 4,349.5 Less – accumulated depreciation (2,009.9 ) (1,890.1 ) Property, plant and equipment, net $ 2,560.9 $ 2,459.4 |
Preliminary Summary of the Fair Value of Assets Acquired and Liabilities Assumed | A preliminary summary of the fair value of the assets acquired and liabilities assumed in conjunction with the transaction is shown below (in millions): Property, plant and equipment $ 10.5 Other assets and liabilities assumed, net 7.2 Goodwill 21.4 Intangible assets 7.5 $ 46.6 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | A summary of the changes in the carrying amount of goodwill, by operating segment, in the three months ended March 31, 2018 , is shown below (in millions): Seating E-Systems Total Balance at January 1, 2018 $ 1,274.4 $ 126.9 $ 1,401.3 Affiliate transaction — 21.4 21.4 Foreign currency translation and other 19.3 22.7 42.0 Balance at March 31, 2018 $ 1,293.7 $ 171.0 $ 1,464.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt, net of unamortized debt issuance costs, and the related weighted average interest rates is shown below (in millions): March 31, 2018 December 31, 2017 Debt Instrument Long-Term Debt Debt Issuance Costs (2) Long-Term Debt, Net Weighted Average Interest Rate Long-Term Debt Debt Issuance Costs (2) Long-Term Debt, Net Weighted Average Interest Rate Credit Agreement — Term Loan Facility $ 246.9 $ (1.8 ) $ 245.1 3.24% $ 248.4 $ (1.8 ) $ 246.6 3.0% 5.375% Senior Notes due 2024 ("2024 Notes") 325.0 (2.3 ) 322.7 5.375% 325.0 (2.4 ) 322.6 5.375% 5.25% Senior Notes due 2025 ("2025 Notes") 650.0 (5.6 ) 644.4 5.25% 650.0 (5.8 ) 644.2 5.25% 3.8% Senior Notes due 2027 ("2027 Notes") (1) 745.0 (5.8 ) 739.2 3.885% 744.9 (5.9 ) 739.0 3.885% Other 7.7 — 7.7 N/A 8.1 — 8.1 N/A $ 1,974.6 $ (15.5 ) 1,959.1 $ 1,976.4 $ (15.9 ) 1,960.5 Less — Current portion (9.1 ) (9.0 ) Long-term debt $ 1,950.0 $ 1,951.5 (1) Net of unamortized original issue discount of $5.0 million and $5.1 million as of March 31, 2018 and December 31, 2017 , respectively (2) Unamortized portion Senior Notes The issuance date, maturity date and interest payable dates of the Company's senior unsecured 2024 Notes, 2025 Notes and 2027 Notes (together, the "Notes") are as shown below: Note Issuance Date Maturity Date Interest Payable Dates 2024 Notes March 2014 March 15, 2024 March 15 and September 15 2025 Notes November 2014 January 15, 2025 January 15 and July 15 2027 Notes August 2017 September 15, 2027 March 15 and September 15 The range and the rate as of March 31, 2018 , are shown below (in percentages): Eurocurrency Rate Base Rate Minimum Maximum Rate as of Minimum Maximum Rate as of Revolving Credit Agreement 1.00 % 1.60 % 1.30 % 0.00 % 0.60 % 0.30 % Term Loan Facility 1.125 % 1.90 % 1.50 % 0.125 % 0.90 % 0.50 % |
Pension and Other Postretirem30
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of net periodic benefit (credit) cost | The components of the Company’s net periodic pension benefit (credit) cost are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 U.S. Foreign U.S. Foreign Service cost $ — $ 1.7 $ — $ 1.7 Interest cost 5.0 3.8 5.4 3.8 Expected return on plan assets (6.9 ) (5.9 ) (5.9 ) (5.6 ) Amortization of actuarial loss 0.5 1.6 0.6 1.2 Settlement loss 0.2 — 0.2 0.8 Net periodic benefit (credit) cost $ (1.2 ) $ 1.2 $ 0.3 $ 1.9 |
Other postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of net periodic benefit (credit) cost | The components of the Company’s net periodic other postretirement benefit (credit) cost are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 U.S. Foreign U.S. Foreign Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.5 0.4 0.6 0.4 Amortization of actuarial (gain) loss (0.6 ) — (0.6 ) 0.1 Amortization of prior service credit — (0.1 ) — (0.1 ) Net periodic benefit (credit) cost $ (0.1 ) $ 0.4 $ — $ 0.5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Reportable Segment and Geography | A summary of the Company’s revenue by reportable operating segment and geography is shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 Seating E-Systems Total Seating E-Systems Total North America $ 1,740.1 $ 315.0 $ 2,055.1 $ 1,707.8 $ 281.4 $ 1,989.2 Europe and Africa 1,752.2 691.0 2,443.2 1,339.0 576.4 1,915.4 Asia 686.1 358.0 1,044.1 691.1 232.2 923.3 South America 151.5 39.8 191.3 130.1 40.5 170.6 $ 4,329.9 $ 1,403.8 $ 5,733.7 $ 3,868.0 $ 1,130.5 $ 4,998.5 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Summary of Other (Income) Expense, Net | A summary of other (income) expense, net is shown below (in millions): Three Months Ended March 31, April 1, Other expense $ 5.5 $ 8.0 Other income (11.1 ) (4.3 ) Other (income) expense, net $ (5.6 ) $ 3.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes and Corresponding Effective Tax Rate | A summary of the provision for income taxes and the corresponding effective tax rate for the three months ended March 31, 2018 and April 1, 2017 , is shown below (in millions, except effective tax rates): Three Months Ended March 31, April 1, Provision for income taxes $ 77.7 $ 89.1 Pretax income before equity in net income of affiliates $ 447.8 $ 392.2 Effective tax rate 17.4 % 22.7 % |
Net Income Per Share Attribut34
Net Income Per Share Attributable to Lear (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Information Used to Compute Basic and Diluted Net Income Per Share | A summary of information used to compute basic and diluted net income per share available to Lear common stockholders is shown below (in millions, except share and per share data): Three Months Ended March 31, April 1, Net income attributable to Lear $ 353.7 $ 305.8 Less: Redeemable noncontrolling interest adjustment (5.4 ) — Net income available to Lear common stockholders $ 348.3 $ 305.8 Average common shares outstanding 67,086,326 69,658,368 Dilutive effect of common stock equivalents 476,126 668,980 Average diluted shares outstanding 67,562,452 70,327,348 Basic net income per share available to Lear common stockholders $ 5.19 $ 4.39 Diluted net income per share available to Lear common stockholders $ 5.16 $ 4.35 |
Comprehensive Income and Equi35
Comprehensive Income and Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Comprehensive Income and Reconciliations of Equity | A summary of comprehensive income and reconciliations of equity, Lear Corporation stockholders’ equity and noncontrolling interests for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended March 31, 2018 Equity Lear Corporation Stockholders' Equity Non- controlling Interests Beginning equity balance $ 4,292.6 $ 4,150.5 $ 142.1 Stock-based compensation transactions (31.2 ) (31.2 ) — Repurchase of common stock (155.4 ) (155.4 ) — Dividends declared to Lear Corporation stockholders (47.7 ) (47.7 ) — Dividends declared to noncontrolling interest holders (19.7 ) — (19.7 ) Adoption of ASU 2016-16 (Note 11, "Taxes") 2.3 2.3 — Affiliate transaction 14.0 — 14.0 Redeemable non-controlling interest adjustment (5.4 ) (5.4 ) — Acquisition of outstanding non-controlling interest (3.4 ) — (3.4 ) Comprehensive income: Net income 370.7 353.7 17.0 Other comprehensive income, net of tax: Defined benefit plan adjustments 2.3 2.3 — Derivative instruments and hedging activities 37.4 37.4 — Foreign currency translation adjustments 98.1 92.9 5.2 Other comprehensive income 137.8 132.6 5.2 Comprehensive income 508.5 486.3 22.2 Ending equity balance $ 4,554.6 $ 4,399.4 $ 155.2 A summary of comprehensive income and reconciliations of equity, Lear Corporation stockholders’ equity and noncontrolling interests for the three months ended April 1, 2017 , is shown below (in millions): Three Months Ended April 1, 2017 Equity Lear Corporation Stockholders' Equity Non- controlling Interests Beginning equity balance $ 3,192.9 $ 3,057.2 $ 135.7 Stock-based compensation transactions (25.8 ) (25.8 ) — Repurchase of common stock (127.5 ) (127.5 ) — Dividends declared to Lear Corporation stockholders (35.7 ) (35.7 ) — Dividends declared to noncontrolling interest holders (17.0 ) — (17.0 ) Adoption of ASU 2016-09 54.5 54.5 — Comprehensive income: Net income 318.5 305.8 12.7 Other comprehensive income, net of tax: Defined benefit plan adjustments 0.7 0.7 — Derivative instruments and hedging activities 52.1 52.1 — Foreign currency translation adjustments 50.8 49.7 1.1 Other comprehensive income 103.6 102.5 1.1 Comprehensive income 422.1 408.3 13.8 Ending equity balance $ 3,463.5 $ 3,331.0 $ 132.5 A summary of comprehensive income and a reconciliation of Lear's redeemable non-controlling interests for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended Beginning redeemable noncontrolling interest balance $ 153.4 Redeemable noncontrolling interest adjustment 5.4 Comprehensive income: Net income 3.5 Foreign currency translation adjustments 8.0 Comprehensive income 11.5 Ending redeemable noncontrolling interest balance $ 170.3 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended April 1, 2017 , is shown below (in millions): Three Months Ended Defined benefit plans: Balance at beginning of period $ (192.8 ) Reclassification adjustments (net of tax expense of $0.5 million) 1.7 Other comprehensive loss recognized during the period (net of tax impact of $— million) (1.0 ) Balance at end of period $ (192.1 ) Derivative instruments and hedging: Balance at beginning of period $ (45.1 ) Reclassification adjustments (net of tax expense of $3.0 million) 8.8 Other comprehensive income recognized during the period (net of tax expense of $14.7 million) 43.3 Balance at end of period $ 7.0 Foreign currency translation: Balance at beginning of period $ (597.7 ) Other comprehensive income recognized during the period (net of tax impact of $— million) 49.7 Balance at end of period $ (548.0 ) A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended March 31, 2018 , is shown below (in millions): Three Months Ended Defined benefit plans: Balance at beginning of period $ (184.0 ) Reclassification adjustments (net of tax expense of $0.3 million) 1.3 Other comprehensive income recognized during the period (net of tax impact of $— million) 1.0 Balance at end of period $ (181.7 ) Derivative instruments and hedging: Balance at beginning of period $ (22.9 ) Reclassification adjustments (net of tax benefit of $0.7 million) (2.4 ) Other comprehensive income recognized during the period (net of tax expense of $11.0 million) 39.8 Balance at end of period $ 14.5 Foreign currency translation: Balance at beginning of period $ (306.5 ) Other comprehensive income recognized during the period (net of tax impact of $— million) 92.9 Balance at end of period $ (213.6 ) |
Common Stock Repurchase Program | Share repurchases in the first three months of 2018 are shown below (in millions except for shares and per share amounts): Three Months Ended As of March 31, 2018 Aggregate Repurchases (1) Cash paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 155.4 $ 145.4 829,360 $ 187.41 $ 1,349.6 (1) Includes $5.1 million of purchases prior to the increased authorization (2) Excludes commissions |
Dividends Declared and Paid | Dividends declared and paid are shown below (in millions): Three Months Ended March 31, 2018 April 1, 2017 Dividends declared $ 47.7 $ 35.7 Dividends paid 50.7 36.7 |
Legal and Other Contingencies (
Legal and Other Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Reserves for Product Liability and Warranty Claims | A summary of the changes in reserves for product liability and warranty claims for the three months ended March 31, 2018 , is shown below (in millions): Balance at January 1, 2018 $ 46.5 Expense, net (including changes in estimates) 3.4 Settlements (9.5 ) Foreign currency translation and other 0.5 Balance at March 31, 2018 $ 40.9 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenues from External Customers and Other Financial Information by Reportable Operating Segment | A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions): Three Months Ended March 31, 2018 Seating E-Systems Other Consolidated Revenues from external customers $ 4,329.9 $ 1,403.8 $ — $ 5,733.7 Segment earnings (1) 339.5 190.8 (67.4 ) 462.9 Depreciation and amortization 80.0 36.6 3.6 120.2 Capital expenditures 112.3 48.2 2.3 162.8 Total assets 7,901.5 2,631.3 2,148.4 12,681.2 Three Months Ended April 1, 2017 Seating E-Systems Other Consolidated Revenues from external customers $ 3,868.0 $ 1,130.5 $ — $ 4,998.5 Segment earnings (1) 320.3 164.9 (68.5 ) 416.7 Depreciation and amortization 65.0 28.3 3.6 96.9 Capital expenditures 82.7 29.5 8.6 120.8 Total assets 6,824.5 1,835.7 1,940.3 10,600.5 (1) See definition above |
Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity | A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions): Three Months Ended March 31, April 1, Segment earnings $ 462.9 $ 416.7 Interest expense 20.7 20.8 Other (income) expense, net (5.6 ) 3.7 Consolidated income before provision for income taxes and equity in net income of affiliates $ 447.8 $ 392.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Aggregate Fair Value and Aggregate Carrying Value of Debt Instruments | The estimated fair value, as well as the carrying value, of the Company's debt instruments are shown below (in millions): March 31, December 31, 2017 Estimated aggregate fair value (1) $ 1,994.8 $ 2,033.5 Aggregate carrying value (1) (2) 1,971.9 1,973.4 (1) Credit agreement and senior notes (excludes "other" debt) (2) Excludes the impact of unamortized original issue discount and debt issuance costs |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the condensed consolidated statements of cash flows is shown below (in millions): March 31, April 1, 2017 Balance sheet - cash and cash equivalents $ 1,268.5 $ 1,209.7 Restricted cash included in other current assets 8.4 — Restricted cash included in other long-term assets 17.6 — Statement of cash flows - cash, cash equivalents and restricted cash $ 1,294.5 $ 1,209.7 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the condensed consolidated statements of cash flows is shown below (in millions): March 31, April 1, 2017 Balance sheet - cash and cash equivalents $ 1,268.5 $ 1,209.7 Restricted cash included in other current assets 8.4 — Restricted cash included in other long-term assets 17.6 — Statement of cash flows - cash, cash equivalents and restricted cash $ 1,294.5 $ 1,209.7 |
Marketable Equity Securities | Marketable equity securities, which the Company accounts for under the fair value option, are included in the accompanying condensed consolidated balance sheets as shown below (in millions): March 31, December 31, 2017 Current assets $ — $ 3.2 Other long-term assets 45.6 40.6 $ 45.6 $ 43.8 |
Notional Amount, Estimated Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts | The notional amount, estimated fair value and related balance sheet classification of the Company's foreign currency derivative contracts are shown below (in millions, except for maturities): March 31, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 39.4 $ 16.9 Other long-term assets 6.4 1.3 Other current liabilities (15.5 ) (28.4 ) Other long-term liabilities (0.7 ) (8.0 ) 29.6 (18.2 ) Notional amount $ 1,408.0 $ 1,538.5 Outstanding maturities in months, not to exceed 24 24 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 6.5 $ 1.8 Other current liabilities (5.0 ) (6.4 ) 1.5 (4.6 ) Notional amount $ 1,229.9 $ 681.1 Outstanding maturities in months, not to exceed 9 12 Total fair value $ 31.1 $ (22.8 ) Total notional amount $ 2,637.9 $ 2,219.6 |
Pretax Amounts Related to Foreign Currency Derivative Contracts | Pretax amounts related to foreign currency derivative contracts designated as cash flow hedges that were recognized in and reclassified from accumulated other comprehensive loss are shown below (in millions): Three Months Ended March 31, April 1, Gains recognized in accumulated other comprehensive loss: $ 50.9 $ 58.1 (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales 1.7 0.1 Cost of sales (4.8 ) 11.7 (3.1 ) 11.8 Comprehensive income $ 47.8 $ 69.9 |
Fair Value Measurements and Related Valuation Techniques and Fair Value Hierarchy Level | Fair value measurements and the related valuation techniques and fair value hierarchy level for the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 , are shown below (in millions): March 31, 2018 Frequency Asset (Liability) Valuation Technique Level 1 Level 2 Level 3 Foreign currency derivative contracts, net Recurring $ 31.1 Market/ Income $ — $ 31.1 $ — Marketable equity securities Recurring $ 45.6 Market $ 45.6 $ — $ — December 31, 2017 Frequency Asset (Liability) Valuation Technique Level 1 Level 2 Level 3 Foreign currency derivative contracts, net Recurring $ (22.8 ) Market/ Income $ — $ (22.8 ) $ — Marketable equity securities Recurring $ 43.8 Market $ 43.8 $ — $ — |
Accounting Pronouncements (Tabl
Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Recent Accounting Standards Updates | Standards Adopted in 2018 On January 1, 2018, the Company adopted the ASUs summarized below: Standard Adopted Description Effective Date ASU 2014-09, Revenue from Contracts with Customers The standard replaces existing revenue recognition guidance and requires additional financial statement disclosures. See Note 9, "Revenue Recognition." January 1, 2018 ASU 2016-01 and ASU 2018-03, Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires equity investments and other ownership interests in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value through earnings. A practicability exception exists for equity investments without readily determinable fair values. The effects of adoption were not significant. January 1, 2018 ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments The standard addresses the classification of cash flows related to various transactions, including debt prepayment and extinguishment costs, contingent consideration and proceeds from insurance claims. The effects of adoption were not significant. January 1, 2018 ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other than Inventory The standard requires the recognition of the income tax effects of intercompany sales and transfers (other than inventory) when the sales and transfers occur. See Note 11, "Income Taxes." January 1, 2018 ASU 2016-18, Restricted Cash The standard provides guidance on the presentation of restricted cash on the statement of cash flows. See Note 16, "Financial Instruments." January 1, 2018 ASU 2017-01, Clarifying the Definition of a Business The standard provides a new framework to use when determining if a set of assets and activities is a business. The effects of adoption were not significant. January 1, 2018 ASU 2017-05, Gains and Losses from the Derecognition of Nonfinancial Assets The standard provides guidance for recognizing gains and losses on nonfinancial assets (including land, buildings and intangible assets) to noncustomers. Adoption must coincide with ASU 2014-09. The effects of adoption were not significant. January 1, 2018 ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The standard was issued to address the net presentation of the components of net benefit cost. The standard requires that service cost be presented in the same line item as other current employee compensation costs and that the remaining components of net benefit cost be presented in a separate line item outside of any subtotal for income from operations. See Note 8, "Pension and Other Postretirement Benefit Plans." January 1, 2018 ASU 2017-09, Stock Compensation - Scope of Modification Accounting The standard provides guidance intended to reduce diversity in practice when accounting for a modification to the terms and conditions of a share-based payment award. The effects of adoption were not significant. January 1, 2018 ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities The standard contains changes intended to better portray the economic results of hedging activities, as well as targeted improvements to simplify hedge accounting. The Company elected to early adopt the standard effective January 1, 2018. See Note 16, "Financial Instruments." January 1, 2018 (early adopted) ASU 2018-05, Income Taxes - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 The standard provides guidance for companies that may not have completed their accounting for the income tax effects of the Act in the period of enactment. See Note 11, "Income Taxes." January 1, 2018 Standards Effective After 2018 The Company has considered the ASUs summarized below, effective after 2018, which could significantly impact its financial statements: Standards Pending Adoption Description Anticipated Impact Effective Date ASU 2016-02 and 2018-01, Leases The standard requires that a lessee recognize on its balance sheet right-of-use assets and corresponding liabilities resulting from leasing transactions, as well as additional financial statement disclosures. Currently, GAAP only requires balance sheet recognition for leases classified as capital leases. The provisions of this update apply to substantially all leased assets. The Company is currently evaluating the impact of this update. For additional information on the Company’s operating lease commitments, see Note 11, "Commitments and Contingencies," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. January 1, 2019 The Company has considered the ASUs summarized below, effective after 2018, none of which are expected to significantly impact its financial statements: Standards Pending Adoption Description Effective Date ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The new standard allows for the reclassification from accumulated other comprehensive income to retained earnings, "stranded" tax effects resulting from the Act. January 1, 2019 ASU 2016-13, Measurement of Credit Losses on Financial Instruments The standard changes the impairment model for most financial instruments to an "expected loss" model. The new model will generally result in earlier recognition of credit losses. January 1, 2020 ASU 2017-04, Simplifying the Test for Goodwill Impairment The standard simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based on the amount of a reporting unit's carrying value in excess of its fair value. This eliminates the requirement to calculate the implied fair value of goodwill or what is known as "Step 2" under the current guidance. January 1, 2020 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 18.4 | |
Carrying values in excess of estimated fair values | 0.9 | |
Expected restructuring cost | 30 | |
Employee termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 16.3 | |
Asset impairment charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.9 | $ 0.1 |
Contract termination costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.3 | |
Other related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.9 | |
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 14.9 | |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3.5 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Accrual as of beginning of period | $ 98 | |
2018 charges | 18.4 | |
Utilization cash | (14.9) | |
Utilization, Non-cash | (0.9) | |
Accrual as of end of period | 100.6 | |
Employee termination benefits | ||
Restructuring Reserve [Roll Forward] | ||
Accrual as of beginning of period | 93 | |
2018 charges | 16.3 | |
Utilization cash | (13.8) | |
Utilization, Non-cash | 0 | |
Accrual as of end of period | 95.5 | |
Asset impairment charges | ||
Restructuring Reserve [Roll Forward] | ||
Accrual as of beginning of period | 0 | |
2018 charges | 0.9 | $ 0.1 |
Utilization cash | 0 | |
Utilization, Non-cash | (0.9) | |
Accrual as of end of period | 0 | |
Contract termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrual as of beginning of period | 5 | |
2018 charges | 0.3 | |
Utilization cash | (0.2) | |
Utilization, Non-cash | 0 | |
Accrual as of end of period | 5.1 | |
Other related costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrual as of beginning of period | 0 | |
2018 charges | 0.9 | |
Utilization cash | (0.9) | |
Utilization, Non-cash | 0 | |
Accrual as of end of period | $ 0 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 918.8 | $ 869.3 | |
Work-in-process | 129 | 120.8 | |
Finished goods | 334.6 | 324.8 | |
Reserves | (116.1) | (109.2) | |
Inventories | $ 1,266.3 | [1] | $ 1,205.7 |
[1] | Unaudited. |
Pre-Production Costs Related 43
Pre-Production Costs Related to Long-Term Supply Agreements (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | |
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | |||
Pre-production E&D costs for which reimbursement is contractually guaranteed by the customer | $ 33.5 | $ 62.9 | |
Pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer | 31.8 | 33.6 | |
Cash collected related to E&D and tooling costs | 79 | $ 87.6 | |
Recoverable customer E&D and tooling | 291.9 | $ 307.4 | |
Current | |||
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | |||
Recoverable customer E&D and tooling | 225.1 | 248.1 | |
Long-term | |||
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | |||
Recoverable customer E&D and tooling | $ 66.8 | $ 59.3 |
Long-Term Assets - Property, Pl
Long-Term Assets - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 120.4 | $ 118.8 | |
Buildings and improvements | 821.6 | 797.7 | |
Machinery and equipment | 3,244.2 | 3,077.4 | |
Construction in progress | 384.6 | 355.6 | |
Total property, plant and equipment | 4,570.8 | 4,349.5 | |
Less – accumulated depreciation | (2,009.9) | (1,890.1) | |
Property, plant and equipment, net | $ 2,560.9 | [1] | $ 2,459.4 |
[1] | Unaudited. |
Long-Term Assets - Property, 45
Long-Term Assets - Property, Plant and Equipment Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 107.1 | $ 86.8 |
Restructuring charges | 18.4 | |
Asset impairment charges | ||
Property, Plant and Equipment [Line Items] | ||
Restructuring charges | $ 0.9 | $ 0.1 |
Long-Term Assets - Investment i
Long-Term Assets - Investment in Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2018 | [1] | Jan. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,464.7 | $ 1,401.3 | ||
Lear FAWSN | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | $ 10.5 | |||
Other assets and liabilities assumed, net | 7.2 | |||
Goodwill | 21.4 | |||
Intangible assets | 7.5 | |||
Preliminary purchase price allocation | $ 46.6 | |||
[1] | Unaudited. |
Long-Term Assets - Investment47
Long-Term Assets - Investment in Affiliates Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Annual sales | $ 5,733.7 | $ 4,998.5 | ||
Lear FAWSN | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 20.00% | |||
Fair value of previously held equity interest | 23 | |||
Lear FAWSN | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets, weighted average useful life | 10 years | |||
Other Income And Expense | Lear FAWSN | ||||
Business Acquisition [Line Items] | ||||
Consolidation of affiliate, revaluation gain | $ 10 | |||
Lear FAWSN | ||||
Business Acquisition [Line Items] | ||||
Fair value of previously held equity interest | $ 23 | |||
Fair value of the noncontrolling interest | $ 14 | |||
Annual sales | $ 100 |
Goodwill (Detail)
Goodwill (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2018 | $ 1,401.3 | |
Affiliate transaction | 21.4 | |
Foreign currency translation and other | 42 | |
Balance at March 31, 2018 | 1,464.7 | [1] |
Operating segments | Seating | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2018 | 1,274.4 | |
Affiliate transaction | 0 | |
Foreign currency translation and other | 19.3 | |
Balance at March 31, 2018 | 1,293.7 | |
Operating segments | E-Systems | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2018 | 126.9 | |
Foreign currency translation and other | 22.7 | |
Balance at March 31, 2018 | 171 | |
Operating segments | E-Systems | Lear FAWSN | ||
Goodwill [Roll Forward] | ||
Affiliate transaction | $ 21.4 | |
[1] | Unaudited. |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,971.9 | $ 1,973.4 | |
Long-term debt and other | 1,974.6 | 1,976.4 | |
Debt issuance costs | (15.5) | (15.9) | |
Long-term debt and other, net | 1,959.1 | 1,960.5 | |
Less — Current portion | (9.1) | [1] | (9) |
Long-term debt | 1,950 | [1] | 1,951.5 |
Credit agreement | Term Loan Facility | Credit Agreement — Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 246.9 | 248.4 | |
Debt issuance costs | (1.8) | (1.8) | |
Long-term debt, net | $ 245.1 | $ 246.6 | |
Debt instrument, interest rate, stated percentage | 3.24% | 3.00% | |
Senior notes | 5.375% Senior Notes due 2024 (2024 Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 325 | $ 325 | |
Debt issuance costs | (2.3) | (2.4) | |
Long-term debt, net | $ 322.7 | $ 322.6 | |
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | |
Senior notes | 5.25% Senior Notes due 2025 (2025 Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 650 | $ 650 | |
Debt issuance costs | (5.6) | (5.8) | |
Long-term debt, net | $ 644.4 | $ 644.2 | |
Debt instrument, interest rate, stated percentage | 5.25% | 5.25% | |
Senior notes | 3.8% Senior Notes due 2027 (2027 Notes) (1) | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount before debt issuance costs | $ 745 | $ 744.9 | |
Debt issuance costs | (5.8) | (5.9) | |
Long-term debt, net | $ 739.2 | $ 739 | |
Debt instrument, interest rate, stated percentage | 3.80% | ||
Weighted Average Interest Rate | 3.885% | 3.885% | |
Unamortized discount | $ 5 | $ 5.1 | |
Other | Other | |||
Debt Instrument [Line Items] | |||
Other | 7.7 | 8.1 | |
Debt issuance costs | $ 0 | $ 0 | |
[1] | Unaudited. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | Aug. 08, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,971,900,000 | $ 1,973,400,000 | ||
Repayments of Long-term Lines of Credit | $ 1,500,000 | $ 6,200,000 | ||
Credit Agreement — Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, facility fee | 0.125% | |||
Credit Agreement — Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, facility fee | 0.30% | |||
Credit agreement | Credit Agreement — Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,750,000,000 | |||
Borrowings outstanding under revolving credit facility | $ 0 | 0 | ||
Credit agreement | Credit Agreement — Term Loan Facility | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Long-term debt, gross | 246,900,000 | $ 248,400,000 | ||
Repayments of Long-term Lines of Credit | $ 1,500,000 | $ 6,200,000 |
Debt - Interest Rates (Details)
Debt - Interest Rates (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Eurocurrency Rate | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate at period end | 1.30% |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Eurocurrency Rate | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.00% |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Eurocurrency Rate | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.60% |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Base Rate | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate at period end | 0.30% |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.00% |
Revolving Credit Facility | Credit Agreement — Revolving Credit Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.60% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Eurocurrency Rate | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate at period end | 1.50% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Eurocurrency Rate | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.125% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Eurocurrency Rate | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.90% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Base Rate | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate at period end | 0.50% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.125% |
Term Loan Facility | Credit Agreement- Term Loan Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.90% |
Pension and Other Postretirem52
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit (Credit) Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Pension | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 5 | 5.4 |
Expected return on plan assets | (6.9) | (5.9) |
Amortization of actuarial (gain) loss | 0.5 | 0.6 |
Settlement loss | 0.2 | 0.2 |
Net periodic benefit (credit) cost | (1.2) | 0.3 |
Pension | Foreign | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 1.7 | 1.7 |
Interest cost | 3.8 | 3.8 |
Expected return on plan assets | (5.9) | (5.6) |
Amortization of actuarial (gain) loss | 1.6 | 1.2 |
Settlement loss | 0 | 0.8 |
Net periodic benefit (credit) cost | 1.2 | 1.9 |
Other postretirement | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.5 | 0.6 |
Amortization of actuarial (gain) loss | (0.6) | (0.6) |
Amortization of prior service credit | 0 | 0 |
Net periodic benefit (credit) cost | (0.1) | 0 |
Other postretirement | Foreign | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.4 | 0.4 |
Amortization of actuarial (gain) loss | 0 | 0.1 |
Amortization of prior service credit | (0.1) | (0.1) |
Net periodic benefit (credit) cost | $ 0.4 | $ 0.5 |
Pension and Other Postretirem53
Pension and Other Postretirement Benefit Plans - Additional Information (Detail) - Pension - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer's contribution towards defined benefit plan | $ 4.1 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated employer's contribution towards defined benefit plan in current year | 10 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated employer's contribution towards defined benefit plan in current year | 15 | |
Foreign | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | $ 0 | $ 0.8 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Significant contract liabilities recorded | $ 0 | |
Significant contract liabilities recognized in revenue | 0 | |
Revenue from contract with customer | 5,733,700,000 | $ 4,998,500,000 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2,055,100,000 | 1,989,200,000 |
Europe and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2,443,200,000 | 1,915,400,000 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,044,100,000 | 923,300,000 |
South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 191,300,000 | 170,600,000 |
Seating | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 4,329,900,000 | 3,868,000,000 |
Seating | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,740,100,000 | 1,707,800,000 |
Seating | Europe and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,752,200,000 | 1,339,000,000 |
Seating | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 686,100,000 | 691,100,000 |
Seating | South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 151,500,000 | 130,100,000 |
E-Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,403,800,000 | 1,130,500,000 |
E-Systems | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 315,000,000 | 281,400,000 |
E-Systems | Europe and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 691,000,000 | 576,400,000 |
E-Systems | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 358,000,000 | 232,200,000 |
E-Systems | South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 39,800,000 | $ 40,500,000 |
Other (Income) Expense, Net - S
Other (Income) Expense, Net - Summary of Other (Income) Expense, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Other Income and Expenses [Abstract] | ||
Other expense | $ 5.5 | $ 8 |
Other income | (11.1) | (4.3) |
Other (income) expense, net | $ (5.6) | $ 3.7 |
Other (Income) Expense, Net - A
Other (Income) Expense, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Other Income and Expenses [Line Items] | ||
Net foreign currency transaction gains (losses) | $ 5.6 | |
Other Income And Expense | Lear FAWSN | ||
Other Income and Expenses [Line Items] | ||
Consolidation of affiliate, revaluation gain | $ 10 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 77.7 | $ 89.1 |
Pretax income before equity in net income of affiliates | $ 447.8 | $ 392.2 |
Effective tax rate | 17.40% | 22.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | ||
Income Tax Contingency [Line Items] | ||||
Tax benefit adjustment to the provisional income tax expense | $ 1.3 | |||
Retained earnings | 4,474.8 | [1] | $ 4,171.9 | |
Tax benefits | $ 19.1 | |||
Tax benefits, release of valuation allowances with respect to deferred tax assets of certain foreign subsidiaries | 35.1 | |||
Tax benefits, share-based compensation | 10.1 | 15.5 | ||
Tax benefits, restructuring charges and various other items | 4.1 | $ 3.6 | ||
Tax expense related to an increase in foreign withholding tax | $ 22 | |||
U.S. federal statutory income tax rate | 21.00% | 35.00% | ||
Accounting Standards Update 2016-16 | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax asset as a result of ASU adoption | 2.3 | |||
Retained earnings | $ 2.3 | |||
Other Income And Expense | Lear FAWSN | ||||
Income Tax Contingency [Line Items] | ||||
Consolidation of affiliate, revaluation gain | $ 10 | |||
[1] | Unaudited. |
Net Income Per Share Attribut59
Net Income Per Share Attributable to Lear (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Lear | $ 353.7 | $ 305.8 |
Less: Redeemable noncontrolling interest adjustment | (5.4) | 0 |
Net income available to Lear common stockholders | $ 348.3 | $ 305.8 |
Average common shares outstanding (in shares) | 67,086,326 | 69,658,368 |
Dilutive effect of common stock equivalents (in shares) | 476,126 | 668,980 |
Average diluted shares outstanding (in shares) | 67,562,452 | 70,327,348 |
Basic net income per share available to Lear common stockholders (in dollars per share) | $ 5.19 | $ 4.39 |
Diluted net income per share available to Lear common stockholders (in dollars per share) | $ 5.16 | $ 4.35 |
Comprehensive Income and Equi60
Comprehensive Income and Equity - Summary of Comprehensive Income and Reconciliations of Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | $ 4,292.6 | $ 3,192.9 | ||||
Stock-based compensation transactions | (31.2) | (25.8) | ||||
Repurchase of common stock | (155.4) | (127.5) | ||||
Dividends declared to Lear Corporation stockholders | (47.7) | (35.7) | ||||
Dividends declared to noncontrolling interest holders | (19.7) | (17) | ||||
Adoption of ASU | $ 2.3 | $ 54.5 | ||||
Affiliate transaction | 14 | |||||
Redeemable non-controlling interest adjustment | (5.4) | |||||
Acquisition of outstanding non-controlling interest | (3.4) | |||||
Comprehensive income | ||||||
Net income | 370.7 | 318.5 | ||||
Other comprehensive income (loss), net of tax | ||||||
Defined benefit plan adjustments | 2.3 | 0.7 | ||||
Derivative instruments and hedging activities | 37.4 | 52.1 | ||||
Foreign currency translation adjustments | 98.1 | 50.8 | ||||
Other comprehensive income (loss) | 137.8 | 103.6 | ||||
Comprehensive income | 508.5 | 422.1 | ||||
Balance at end of period | 4,554.6 | [1] | 3,463.5 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Balance at beginning of period | 153.4 | |||||
Redeemable non-controlling interest adjustment | (5.4) | |||||
Comprehensive income | ||||||
Balance at end of period | [1] | 170.3 | ||||
Lear Corporation Stockholders' Equity | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 4,150.5 | 3,057.2 | ||||
Stock-based compensation transactions | (31.2) | (25.8) | ||||
Repurchase of common stock | (155.4) | (127.5) | ||||
Dividends declared to Lear Corporation stockholders | (47.7) | (35.7) | ||||
Dividends declared to noncontrolling interest holders | 0 | 0 | ||||
Adoption of ASU | 2.3 | 54.5 | ||||
Affiliate transaction | 0 | |||||
Redeemable non-controlling interest adjustment | (5.4) | |||||
Acquisition of outstanding non-controlling interest | 0 | |||||
Comprehensive income | ||||||
Net income | 353.7 | 305.8 | ||||
Other comprehensive income (loss), net of tax | ||||||
Defined benefit plan adjustments | 2.3 | 0.7 | ||||
Derivative instruments and hedging activities | 37.4 | 52.1 | ||||
Foreign currency translation adjustments | 92.9 | 49.7 | ||||
Other comprehensive income (loss) | 132.6 | 102.5 | ||||
Comprehensive income | 486.3 | 408.3 | ||||
Balance at end of period | 4,399.4 | 3,331 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Redeemable non-controlling interest adjustment | (5.4) | |||||
Non- controlling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 142.1 | 135.7 | ||||
Stock-based compensation transactions | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Dividends declared to Lear Corporation stockholders | 0 | 0 | ||||
Dividends declared to noncontrolling interest holders | (19.7) | (17) | ||||
Adoption of ASU | $ 0 | $ 0 | ||||
Affiliate transaction | 14 | |||||
Redeemable non-controlling interest adjustment | 0 | |||||
Acquisition of outstanding non-controlling interest | (3.4) | |||||
Comprehensive income | ||||||
Net income | 17 | 12.7 | ||||
Other comprehensive income (loss), net of tax | ||||||
Defined benefit plan adjustments | 0 | 0 | ||||
Derivative instruments and hedging activities | 0 | 0 | ||||
Foreign currency translation adjustments | 5.2 | 1.1 | ||||
Other comprehensive income (loss) | 5.2 | 1.1 | ||||
Comprehensive income | 22.2 | 13.8 | ||||
Balance at end of period | 155.2 | $ 132.5 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Redeemable non-controlling interest adjustment | 0 | |||||
Redeemable Non-controlling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Redeemable non-controlling interest adjustment | 5.4 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Balance at beginning of period | 153.4 | |||||
Redeemable non-controlling interest adjustment | 5.4 | |||||
Comprehensive income | ||||||
Net income | 3.5 | |||||
Foreign currency translation adjustments | 8 | |||||
Comprehensive income | 11.5 | |||||
Balance at end of period | $ 170.3 | |||||
[1] | Unaudited. |
Comprehensive Income and Equi61
Comprehensive Income and Equity - Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | $ 4,292.6 | $ 3,192.9 | |
Balance at end of period | 4,554.6 | [1] | 3,463.5 |
Defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (184) | (192.8) | |
Reclassification adjustments | 1.3 | 1.7 | |
Other comprehensive income (loss) recognized during the period | 1 | (1) | |
Balance at end of period | (181.7) | (192.1) | |
Comprehensive income (loss), tax | |||
Reclassification adjustments, tax expense (benefit) | 0.3 | 0.5 | |
Other comprehensive income (loss), tax expense (benefit) | 0 | 0 | |
Derivative instruments and hedging | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (22.9) | (45.1) | |
Reclassification adjustments | (2.4) | 8.8 | |
Other comprehensive income (loss) recognized during the period | 39.8 | 43.3 | |
Balance at end of period | 14.5 | 7 | |
Comprehensive income (loss), tax | |||
Reclassification adjustments, tax expense (benefit) | (0.7) | 3 | |
Other comprehensive income (loss), tax expense (benefit) | 11 | 14.7 | |
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (306.5) | (597.7) | |
Other comprehensive income (loss) recognized during the period | 92.9 | 49.7 | |
Balance at end of period | (213.6) | (548) | |
Comprehensive income (loss), tax | |||
Other comprehensive income (loss), tax expense (benefit) | $ 0 | $ 0 | |
[1] | Unaudited. |
Comprehensive Income and Equi62
Comprehensive Income and Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 87 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 30, 2018 | Feb. 28, 2018 | |
Equity [Abstract] | ||||
Foreign currency translation gains (losses) related to intercompany transactions, long-term gain (loss) | $ (300,000) | $ (600,000) | ||
Aggregate purchases authorized under common stock share repurchase program | 5,000,000,000 | $ 1,500,000,000 | ||
Aggregate Repurchases (1) | $ 155,400,000 | $ 3,700,000,000 | ||
Common stock repurchased, average price per share (in dollars per share) | $ 187.41 | $ 81.72 | ||
Cash dividends declared per share (in dollars per share) | $ 0.70 | $ 0.50 |
Comprehensive Income and Equi63
Comprehensive Income and Equity - Common Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 87 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 30, 2018 | |
Equity [Abstract] | |||
Aggregate Repurchases (1) | $ 155.4 | $ 3,700 | |
Cash paid for Repurchases | $ 145.4 | $ 115.6 | |
Number of Shares (in shares) | 829,360 | ||
Average Price per Share (in dollars per share) | $ 187.41 | $ 81.72 | |
Remaining Purchase Authorization | $ 1,349.6 | ||
Stock repurchased during period, prior to increased authorization, amount | $ 5.1 |
Comprehensive Income and Equi64
Comprehensive Income and Equity - Dividends Declared and Paid (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Equity [Abstract] | ||
Dividends declared | $ 47.7 | $ 35.7 |
Dividends paid | $ 50.7 | $ 36.7 |
Legal and Other Contingencies -
Legal and Other Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Reserves for pending legal disputes, including commercial disputes and other matters | $ 25.6 | $ 25.8 |
Environmental reserves | $ 8.9 | $ 9 |
Legal and Other Contingencies66
Legal and Other Contingencies - Summary of Product Liability and Warranty Claims (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 46.5 |
Expense, net (including changes in estimates) | 3.4 |
Settlements | (9.5) |
Foreign currency translation and other | 0.5 |
Ending balance | $ 40.9 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)reportable_operating_segment | Apr. 01, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Reportable operating segments | reportable_operating_segment | 2 | |
Restructuring charges | $ 18.4 | |
Operating segments | Seating | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 14.4 | $ 6.7 |
Operating segments | E-Systems | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 1.9 | 1.7 |
Other | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | $ 2.1 | $ 0.1 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | $ 5,733.7 | $ 4,998.5 | ||
Segment earnings | 462.9 | 416.7 | ||
Depreciation and amortization | 120.2 | 96.9 | ||
Capital expenditures | 162.8 | 120.8 | ||
Total assets | 12,681.2 | [1] | 10,600.5 | $ 11,945.9 |
Operating segments | Seating | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 4,329.9 | 3,868 | ||
Segment earnings | 339.5 | 320.3 | ||
Depreciation and amortization | 80 | 65 | ||
Capital expenditures | 112.3 | 82.7 | ||
Total assets | 7,901.5 | 6,824.5 | ||
Operating segments | E-Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 1,403.8 | 1,130.5 | ||
Segment earnings | 190.8 | 164.9 | ||
Depreciation and amortization | 36.6 | 28.3 | ||
Capital expenditures | 48.2 | 29.5 | ||
Total assets | 2,631.3 | 1,835.7 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 0 | 0 | ||
Segment earnings | (67.4) | (68.5) | ||
Depreciation and amortization | 3.6 | 3.6 | ||
Capital expenditures | 2.3 | 8.6 | ||
Total assets | $ 2,148.4 | $ 1,940.3 | ||
[1] | Unaudited. |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Earnings to Income Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Segment Reporting [Abstract] | ||
Segment earnings | $ 462.9 | $ 416.7 |
Interest expense | 20.7 | 20.8 |
Other (income) expense, net | (5.6) | 3.7 |
Consolidated income before provision for income taxes and equity in net income of affiliates | $ 447.8 | $ 392.2 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Estimated aggregate fair value (1) | $ 1,994.8 | $ 2,033.5 |
Aggregate carrying value | $ 1,971.9 | $ 1,973.4 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Apr. 01, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Balance sheet - cash and cash equivalents | $ 1,268.5 | [1] | $ 1,500.4 | $ 1,209.7 |
Restricted cash included in other current assets | 8.4 | 0 | ||
Restricted cash included in other long-term assets | 17.6 | 0 | ||
Statement of cash flows - cash, cash equivalents and restricted cash | $ 1,294.5 | $ 1,209.7 | ||
[1] | Unaudited. |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments [Line Items] | ||
Gain (loss) expected to be reclassified into earnings from accumulated other comprehensive loss | $ 24,000,000 | |
Derivative contracts classified within Level 3 of fair value hierarchy | 0 | $ 0 |
Derivative contracts transfers in to Level 3 fair value hierarchy | 0 | |
Lear FAWSN | ||
Financial Instruments [Line Items] | ||
Previously held equity interest, fair value | 23,000,000 | |
Level 3 | Lear FAWSN | ||
Financial Instruments [Line Items] | ||
Property, plant and equipment, fair value | 10,500,000 | |
Noncontrolling interest, fair value | 14,000,000 | |
Intangible assets, fair value | 7,500,000 | |
Foreign currency contract | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Designated as hedging instrument | ||
Financial Instruments [Line Items] | ||
Pretax gains (losses) related to derivative instruments and hedging activities in accumulated other comprehensive loss | $ 29,600,000 | $ (18,200,000) |
Financial Instruments - Marketa
Financial Instruments - Marketable Equity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Current assets | $ 0 | $ 3.2 |
Other long-term assets | 45.6 | 40.6 |
Marketable equity securities | $ 45.6 | $ 43.8 |
Financial Instruments - Notiona
Financial Instruments - Notional Amount, Estimated Fair Value and Related Classification of Derivatives (Detail) - Foreign currency contract - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Contracts balance sheet classification: | ||
Derivative, fair value, asset (liability), net | $ 31.1 | $ (22.8) |
Notional amount | 2,637.9 | 2,219.6 |
Designated as hedging instrument | Cash flow hedge | ||
Contracts balance sheet classification: | ||
Other current assets | 39.4 | 16.9 |
Other long-term assets | 6.4 | 1.3 |
Other current liabilities | (15.5) | (28.4) |
Other long-term liabilities | (0.7) | (8) |
Derivative, fair value, asset (liability), net | 29.6 | (18.2) |
Notional amount | $ 1,408 | $ 1,538.5 |
Designated as hedging instrument | Cash flow hedge | Maximum | ||
Contracts balance sheet classification: | ||
Outstanding maturities in months, not to exceed | 24 months | 24 months |
Not designated as hedging instrument | ||
Contracts balance sheet classification: | ||
Other current assets | $ 6.5 | $ 1.8 |
Other current liabilities | (5) | (6.4) |
Notional amount | 1,229.9 | 681.1 |
Other derivatives not designated as hedging instruments at fair value, net | $ 1.5 | $ (4.6) |
Not designated as hedging instrument | Maximum | ||
Contracts balance sheet classification: | ||
Outstanding maturities in months, not to exceed | 9 months | 12 months |
Financial Instruments - Other C
Financial Instruments - Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Derivative [Line Items] | ||
Comprehensive income | $ 47.8 | $ 69.9 |
Foreign currency contract | ||
Derivative [Line Items] | ||
Gains recognized in accumulated other comprehensive loss: | 50.9 | 58.1 |
(Gains) losses reclassified from accumulated other comprehensive loss to: | (3.1) | 11.8 |
Foreign currency contract | Net sales | ||
Derivative [Line Items] | ||
(Gains) losses reclassified from accumulated other comprehensive loss to: | 1.7 | 0.1 |
Foreign currency contract | Cost of sales | ||
Derivative [Line Items] | ||
(Gains) losses reclassified from accumulated other comprehensive loss to: | $ (4.8) | $ 11.7 |
Financial Instruments - Valuati
Financial Instruments - Valuation Techniques and Fair Value Hierarchy Level (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable Securities, Equity Securities | $ 45.6 | $ 43.8 |
Foreign currency contract | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Foreign currency derivative contracts, net | 31.1 | (22.8) |
Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable Securities, Equity Securities | 45.6 | 43.8 |
Recurring | Foreign currency contract | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Foreign currency derivative contracts, net | 31.1 | (22.8) |
Level 1 | Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable Securities, Equity Securities | 45.6 | 43.8 |
Level 1 | Recurring | Foreign currency contract | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Foreign currency derivative contracts, net | 0 | 0 |
Level 2 | Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable Securities, Equity Securities | 0 | 0 |
Level 2 | Recurring | Foreign currency contract | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Foreign currency derivative contracts, net | 31.1 | (22.8) |
Level 3 | Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable Securities, Equity Securities | 0 | 0 |
Level 3 | Recurring | Foreign currency contract | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Foreign currency derivative contracts, net | $ 0 | $ 0 |