Cover
Cover - shares | 9 Months Ended | |
Oct. 02, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-11311 | |
Entity Registrant Name | LEAR CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3386776 | |
Entity Address, Address Line One | 21557 Telegraph Road | |
Entity Address, City or Town | Southfield | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48033 | |
City Area Code | 248 | |
Local Phone Number | 447-1500 | |
Title of 12(b) Security | Common stock, par value $0.01 | |
Trading Symbol | LEA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,616,561 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000842162 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 02, 2021 | [1] | Dec. 31, 2020 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,099.1 | $ 1,306.7 | |
Accounts receivable | 2,865.1 | 3,269.2 | |
Inventories | 1,766 | 1,401.1 | |
Other | 863.8 | 799.7 | |
Total current assets | 6,594 | 6,776.7 | |
LONG-TERM ASSETS: | |||
Property, plant and equipment, net | 2,696.3 | 2,736.2 | |
Goodwill | 1,660.4 | 1,655.8 | |
Other | 2,095.3 | 2,029.9 | |
Total long-term assets | 6,452 | 6,421.9 | |
Total assets | 13,046 | 13,198.6 | |
CURRENT LIABILITIES: | |||
Accounts payable and drafts | 2,870 | 3,141.6 | |
Accrued liabilities | 1,875.5 | 1,920.9 | |
Current portion of long-term debt | 206 | 14.2 | |
Total current liabilities | 4,951.5 | 5,076.7 | |
LONG-TERM LIABILITIES: | |||
Long-term debt | 2,095.8 | 2,300.3 | |
Other | 1,241.2 | 1,206.7 | |
Total long-term liabilities | 3,337 | 3,507 | |
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; 64,571,405 shares issued as of October 2, 2021 and December 31, 2020 | 0.6 | 0.6 | |
Additional paid-in capital | 1,006.9 | 963.6 | |
Common stock held in treasury, 4,957,867 and 4,519,891 shares as of October 2, 2021 and December 31, 2020, respectively, at cost | (680.6) | (598.6) | |
Retained earnings | 5,098.1 | 4,806.8 | |
Accumulated other comprehensive loss | (802.6) | (705.1) | |
Lear Corporation stockholders’ equity | 4,622.4 | 4,467.3 | |
Noncontrolling interests | 135.1 | 147.6 | |
Equity | 4,757.5 | 4,614.9 | |
Total liabilities and equity | $ 13,046 | $ 13,198.6 | |
[1] | Unaudited. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 02, 2021 | Dec. 31, 2020 |
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) | 64,571,405 | 64,571,405 |
Common stock held in treasury, shares (in shares) | 4,957,867 | 4,519,891 |
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 (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,268.2 | $ 4,900.1 | $ 14,383.3 | $ 11,802.3 |
Cost of sales | 4,041.5 | 4,457.3 | 13,262.4 | 11,152.7 |
Selling, general and administrative expenses | 163.3 | 147.7 | 503 | 442.3 |
Amortization of intangible assets | 15.8 | 16.3 | 57.4 | 49.4 |
Interest expense | 22.6 | 26.5 | 67.2 | 78.1 |
Other (income) expense, net | 11.1 | 17.1 | (28.7) | 54.4 |
Consolidated income before provision for income taxes and equity in net (income) loss of affiliates | 13.9 | 235.2 | 522 | 25.4 |
Provision for income taxes | 20.9 | 44.6 | 119.1 | 30.1 |
Equity in net (income) loss of affiliates | 1.7 | (6.5) | (9.1) | (15.9) |
Consolidated net income (loss) | (8.7) | 197.1 | 412 | 11.2 |
Less: Net income attributable to noncontrolling interests | 17.8 | 22.7 | 59.6 | 54.3 |
Net income (loss) attributable to Lear | $ (26.5) | $ 174.4 | $ 352.4 | $ (43.1) |
Basic net income (loss) per share available to Lear common stockholders (in dollars per share) | $ (0.44) | $ 2.90 | $ 5.86 | $ (0.72) |
Diluted net income (loss) per share available to Lear common stockholders (in dollars per share) | (0.44) | 2.89 | 5.83 | (0.72) |
Cash dividends declared per share (in dollars per share) | $ 0.50 | $ 0 | $ 1 | $ 0.77 |
Average common shares outstanding (in shares) | 59,906,531 | 60,159,356 | 60,171,402 | 60,260,886 |
Average diluted shares outstanding (in shares) | 59,906,531 | 60,330,941 | 60,463,401 | 60,260,886 |
Consolidated comprehensive income (loss) (Condensed Consolidated Statements of Equity) | $ (83) | $ 290.7 | $ 315.8 | $ (49.2) |
Less: Comprehensive income attributable to noncontrolling interests | 18.3 | 33 | 60.9 | 60.9 |
Comprehensive income (loss) attributable to Lear | $ (101.3) | $ 257.7 | $ 254.9 | $ (110.1) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Common Stock Held in Treasury | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Lear Corporation Stockholders' Equity | Non-controlling Interests | Redeemable Non-controlling Interests | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings | Cumulative Effect, Period of Adoption, AdjustmentLear Corporation Stockholders' Equity | |
Balance at beginning of period at Dec. 31, 2019 | $ 4,501.1 | $ 0.6 | $ 969.1 | $ (563.1) | $ 4,715.8 | $ (772.7) | $ 4,349.7 | $ 151.4 | $ (0.8) | $ (0.8) | $ (0.8) | ||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | 14.4 | (43.1) | (43.1) | 57.5 | |||||||||
Other comprehensive income (loss) | (63.4) | (67) | (67) | 3.6 | |||||||||
Total comprehensive income (loss) | (49) | (43.1) | (67) | (110.1) | 61.1 | ||||||||
Stock-based compensation | 25.5 | 25.5 | 25.5 | ||||||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (13.6) | (37.1) | 26.8 | (3.3) | (13.6) | ||||||||
Repurchase of shares of common stock | (70) | (70) | (70) | ||||||||||
Dividends declared to Lear Corporation stockholders | (46.8) | (46.8) | (46.8) | ||||||||||
Dividends declared to noncontrolling interest holders | (69.2) | 0 | 0 | 0 | (69.2) | ||||||||
Redeemable noncontrolling interest adjustment | (1.1) | (1.1) | (1.1) | ||||||||||
Balance at end of period at Oct. 03, 2020 | 4,276.1 | 0.6 | 957.5 | (606.3) | 4,620.7 | (839.7) | 4,132.8 | 143.3 | |||||
Balance at beginning of year at Dec. 31, 2019 | $ 118.4 | ||||||||||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | (3.2) | ||||||||||||
Other comprehensive income (loss) | 3 | ||||||||||||
Total comprehensive income (loss) | (0.2) | ||||||||||||
Redeemable noncontrolling interest adjustment | 1.1 | ||||||||||||
Balance at end of year at Oct. 03, 2020 | 119.3 | ||||||||||||
Balance at beginning of period at Jul. 04, 2020 | 3,983.2 | 0.6 | 955.6 | (612.6) | 4,447.1 | (923) | 3,867.7 | 115.5 | |||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | 196.8 | 174.4 | 174.4 | 22.4 | |||||||||
Other comprehensive income (loss) | 88.9 | 83.3 | 83.3 | 5.6 | |||||||||
Total comprehensive income (loss) | 285.7 | 174.4 | 83.3 | 257.7 | 28 | ||||||||
Stock-based compensation | 9.1 | 9.1 | 9.1 | ||||||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (1.7) | (7.2) | 6.3 | (0.8) | (1.7) | ||||||||
Dividends declared to noncontrolling interest holders | (0.2) | 0 | 0 | 0 | (0.2) | ||||||||
Balance at end of period at Oct. 03, 2020 | 4,276.1 | 0.6 | 957.5 | (606.3) | 4,620.7 | (839.7) | 4,132.8 | 143.3 | |||||
Balance at beginning of year at Jul. 04, 2020 | 114.3 | ||||||||||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | 0.3 | ||||||||||||
Other comprehensive income (loss) | 4.7 | ||||||||||||
Total comprehensive income (loss) | 5 | ||||||||||||
Balance at end of year at Oct. 03, 2020 | $ 119.3 | ||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 4,614.9 | 0.6 | 963.6 | (598.6) | 4,806.8 | (705.1) | 4,467.3 | 147.6 | |||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | 412 | 352.4 | 352.4 | 59.6 | |||||||||
Other comprehensive income (loss) | (96.2) | (97.5) | (97.5) | 1.3 | |||||||||
Total comprehensive income (loss) | 315.8 | 352.4 | (97.5) | 254.9 | 60.9 | ||||||||
Stock-based compensation | 45.5 | 45.5 | 45.5 | ||||||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (12.5) | (30.8) | 18.3 | (12.5) | |||||||||
Repurchase of shares of common stock | (100.3) | (100.3) | (100.3) | ||||||||||
Dividends declared to Lear Corporation stockholders | (61.1) | (61.1) | (61.1) | ||||||||||
Dividends declared to noncontrolling interest holders | (81) | 0 | 0 | 0 | (81) | ||||||||
Affiliate transaction | 36.2 | 28.6 | 28.6 | 7.6 | |||||||||
Balance at end of period at Oct. 02, 2021 | 4,757.5 | [1] | 0.6 | 1,006.9 | (680.6) | 5,098.1 | (802.6) | 4,622.4 | 135.1 | ||||
Balance at beginning of period at Jul. 03, 2021 | 4,892.1 | 0.6 | 973.6 | (618.6) | 5,155.1 | (727.8) | 4,782.9 | 109.2 | |||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | (8.7) | (26.5) | (26.5) | 17.8 | |||||||||
Other comprehensive income (loss) | (74.3) | (74.8) | (74.8) | 0.5 | |||||||||
Total comprehensive income (loss) | (83) | (26.5) | (74.8) | (101.3) | 18.3 | ||||||||
Stock-based compensation | 15.6 | 15.6 | 15.6 | ||||||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (3.8) | (10.9) | 7.1 | (3.8) | |||||||||
Repurchase of shares of common stock | (69.1) | (69.1) | (69.1) | ||||||||||
Dividends declared to Lear Corporation stockholders | (30.5) | (30.5) | (30.5) | ||||||||||
Dividends declared to noncontrolling interest holders | 0 | 0 | 0 | 0 | 0 | ||||||||
Affiliate transaction | 36.2 | 28.6 | 28.6 | 7.6 | |||||||||
Balance at end of period at Oct. 02, 2021 | $ 4,757.5 | [1] | $ 0.6 | $ 1,006.9 | $ (680.6) | $ 5,098.1 | $ (802.6) | $ 4,622.4 | $ 135.1 | ||||
[1] | Unaudited. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net issuances of shares held in treasury in settlement of stock-based compensation (in shares) | 55,882 | 45,531 | 151,741 | 190,978 |
Number of shares repurchased (in shares) | 419,903 | 589,717 | 641,149 | |
Average Price per Share (in dollars per share) | $ 164.56 | $ 170.03 | $ 109.22 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Cash Flows from Operating Activities: | ||
Consolidated net income | $ 412 | $ 11.2 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 431.4 | 397.1 |
Net change in recoverable customer engineering, development and tooling | (78.2) | (63.4) |
Net change in working capital items (see below) | (329.7) | (138.1) |
Loss on extinguishment of debt | 0 | 21.1 |
Other, net | 67.7 | 34.4 |
Net cash provided by operating activities | 503.2 | 262.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (405.5) | (285.3) |
Other, net | (72.3) | (11.8) |
Net cash used in investing activities | (477.8) | (297.1) |
Cash Flows from Financing Activities: | ||
Term loan repayments | (14.1) | (9.4) |
Revolving credit facility borrowings | 0 | 1,000 |
Revolving credit facility repayments | 0 | (1,000) |
Proceeds from the issuance of senior notes | 0 | 669.1 |
Redemption of senior notes | 0 | (667.1) |
Short-term repayments, net | 0 | (14.9) |
Payment of debt issuance and other financing costs | 0 | (6.9) |
Repurchase of common stock | (99.3) | (70) |
Dividends paid to Lear Corporation stockholders | (60.7) | (52) |
Dividends paid to noncontrolling interests | (81.1) | (45.8) |
Other, net | 23.2 | (14.8) |
Net cash used in financing activities | (232) | (211.8) |
Effect of foreign currency translation | (5.8) | (5.6) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (212.4) | (252.2) |
Cash, Cash Equivalents and Restricted Cash as of Beginning of Period | 1,314.5 | 1,510.4 |
Cash, Cash Equivalents and Restricted Cash as of End of Period | 1,102.1 | 1,258.2 |
Changes in Working Capital Items: | ||
Accounts receivable | 356.3 | (416.9) |
Inventories | (393.2) | (13.6) |
Accounts payable | (225.1) | 124 |
Accrued liabilities and other | (67.7) | 168.4 |
Net change in working capital items | (329.7) | (138.1) |
Supplementary Disclosure: | ||
Cash paid for interest | 59.8 | 83.7 |
Cash paid for income taxes, net of refunds received | $ 116.3 | $ 85.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 02, 2021 | |
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. 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. |
Current Operating Environment
Current Operating Environment | 9 Months Ended |
Oct. 02, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Current Operating Environment | Current Operating Environment In 2020, unprecedented industry disruptions related to the COVID-19 pandemic, particularly in the first half of the year, impacted the Company's operations in every region of the world. Although industry production has improved in the first nine months of 2021 relative to 2020, production remains below recent historic levels, and third quarter 2021 production decreased as compared to the third quarter of 2020. This is largely due to the continuing impact of the COVID-19 pandemic in 2021, particularly through supply shortages. The most significant supply shortage relates to semiconductor chips, which is impacting global industry production and resulting in cancellations of planned production. In addition, the Company is experiencing increased costs related to labor shortages and inefficiencies and ongoing costs related to personal protective equipment, all of which are likely to continue for a period of time. Increases in certain commodity costs, as well as transportation and logistics costs, are also impacting, and will continue to impact, the Company's operating results for the foreseeable future. Further, a resurgence of the COVID-19 virus or its variants, including corresponding "stay at home" or similar government orders impacting industry production, could impact the Company's financial results. The accompanying condensed consolidated financial statements reflect estimates and assumptions made by management as of October 2, 2021, and for the nine months then ended. Such estimates and assumptions affect, among other things, the Company's goodwill; long-lived asset and indefinite-lived intangible asset valuations; inventory valuations; valuations of deferred income taxes and income tax contingencies; and credit losses related to the Company's financial instruments. Events and circumstances arising after October 2, 2021, including those resulting from the impact of the COVID-19 pandemic, will be reflected in management's estimates and assumptions in future periods. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. Employee termination benefits are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Other 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 when restructuring actions are approved and/or implemented. In the first nine months of 2021, the Company recorded charges of $78.0 million in connection with its restructuring actions. These charges consist of $52.3 million recorded as cost of sales and $25.7 million recorded as selling, general and administrative expenses. The restructuring charges consist of employee termination costs of $60.1 million, asset impairment charges of $8.1 million and contract termination costs of $0.1 million, as well as other related costs of $9.7 million. Employee termination benefits were recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $1.0 million in excess of related estimated fair values and the impairment of right-of-use assets of $7.1 million. The Company expects to incur approximately $37 million of additional restructuring costs related to activities initiated as of October 2, 2021, 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 2021 activity is shown below (in millions): Accrual at January 1, 2021 2021 Utilization Accrual at October 2, 2021 Charges Cash Non-cash Employee termination benefits $ 134.8 $ 60.1 $ (65.6) $ (5.1) $ 124.2 Asset impairment charges — 8.1 — (8.1) — Contract termination costs 4.2 0.1 (0.8) — 3.5 Other related costs — 9.7 (9.7) — — Total $ 139.0 $ 78.0 $ (76.1) $ (13.2) $ 127.7 |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. 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): October 2, December 31, Raw materials $ 1,250.1 $ 1,051.6 Work-in-process 124.7 109.8 Finished goods 545.5 396.9 Reserves (154.3) (157.2) Inventories $ 1,766.0 $ 1,401.1 |
Pre-Production Costs Related to
Pre-Production Costs Related to Long-Term Supply Agreements | 9 Months Ended |
Oct. 02, 2021 | |
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 nine months of 2021 and 2020, the Company capitalized $197.2 million and $111.1 million, respectively, of pre-production E&D costs for which reimbursement is contractually guaranteed by the customer. During the first nine months of 2021 and 2020, the Company also capitalized $115.1 million and $130.2 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 condensed consolidated balance sheets. During the first nine months of 2021 and 2020, the Company collected $253.7 million and $184.5 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 included in the accompanying condensed consolidated balance sheets is shown below (in millions): October 2, December 31, Current $ 276.2 $ 212.0 Long-term 127.6 121.4 Recoverable customer E&D and tooling $ 403.8 $ 333.4 |
Long-Lived Assets
Long-Lived Assets | 9 Months Ended |
Oct. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets 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. The Company will continue to assess the impact of significant industry and other events on the realization of its long-lived 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): October 2, December 31, Land $ 110.1 $ 114.1 Buildings and improvements 848.7 880.7 Machinery and equipment 4,445.6 4,339.2 Construction in progress 351.1 311.1 Total property, plant and equipment 5,755.5 5,645.1 Less – accumulated depreciation (3,059.2) (2,908.9) Property, plant and equipment, net $ 2,696.3 $ 2,736.2 Depreciation expense was $124.6 million and $120.0 million in the three months ended October 2, 2021 and October 3, 2020, respectively, and $374.0 million and $347.7 million in the nine months ended October 2, 2021 and October 3, 2020, respectively. In the first nine months of 2021 and 2020, the Company recognized fixed asset impairment charges of $1.0 million and $12.5 million, respectively, in conjunction with its restructuring actions (Note 3, "Restructuring"). In the first nine months of 2021 and 2020, the Company recognized additional asset impairment charges of $2.0 million and $3.4 million, respectively. Intangible Assets Amortization expense was $15.8 million and $16.3 million in the three months ended October 2, 2021 and October 3, 2020, respectively, and $57.4 million and $49.4 million in the nine months ended October 2, 2021 and October 3, 2020, respectively. In the first nine months of 2021, the Company recognized an impairment charge of $8.5 million related to certain intangible assets of its E-Systems segment resulting from a change in the intended use of the assets. The impairment charge is included in amortization of intangible assets in the accompanying condensed consolidated statement of comprehensive income (loss) for the nine months ended October 2, 2021. Investment in Affiliates On September 6, 2021, the Company acquired a 49% interest in Shenyang Jinbei Lear Auto Parts Co., Ltd. ("Shenyang Jinbei") for $41.3 million. The investment is accounted for under the equity method as the Company does not control Shenyang Jinbei but does have the ability to exercise significant influence over certain operating and financial policies of Shenyang Jinbei. The acquisition cost is classified within cash flows used in investing activities in the accompanying condensed consolidated statement of cash flows for the nine months ended October 2, 2021. In the first nine months of 2021, the Company recognized an impairment charge of $1.0 million related to an affiliate. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, in the nine months ended October 2, 2021, is shown below (in millions): Seating E-Systems Total Balance at January 1, 2021 $ 1,268.8 $ 387.0 $ 1,655.8 Foreign currency translation and other (15.4) 20.0 4.6 Balance at October 2, 2021 $ 1,253.4 $ 407.0 $ 1,660.4 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 recognized in an amount equal to that excess, limited to the total amount of goodwill recorded. The Company conducts its annual impairment testing as of the first day of its fourth quarte r. During the first and second quarters of 2021, an interim goodwill impairment analysis related to one of the Company’s reporting units within its Seating operating segment was performed. The results of the quantitative analysis indicated that the fair value of the reporting unit exceeded the related carrying value. The quantitative analysis reflected the Company’s best estimates of the COVID-19 pandemic’s ultimate impact on industry conditions, including consumer demand and economic recovery. As of October 2, 2021, the Company does not believe that any of its reporting units are at risk for impairment. There was no impairment of goodwill in the first nine months of 2021 and 2020. The Company will, however, continue to assess the impact of significant industry and other events on its recorded goodwill. |
Debt
Debt | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions): October 2, 2021 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Credit Agreement — Term Loan Facility $ 206.3 $ (0.4) $ — $ 205.9 1.330% 3.8% Senior Notes due 2027 (the "2027 Notes") 750.0 (3.6) (3.1) 743.3 3.885% 4.25% Senior Notes due 2029 (the "2029 Notes") 375.0 (2.4) (0.9) 371.7 4.288% 3.5% Senior Notes due 2030 (the "2030 Notes") 350.0 (2.4) (0.7) 346.9 3.525% 5.25% Senior Notes due 2049 (the "2049 Notes") 625.0 (6.1) 13.8 632.7 5.103% Other 1.3 — — 1.3 N/A $ 2,307.6 $ (14.9) $ 9.1 $ 2,301.8 Less — Current portion (206.0) Long-term debt $ 2,095.8 December 31, 2020 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Credit Agreement — Term Loan Facility $ 220.3 $ (0.6) $ — $ 219.7 1.360% 2027 Notes 750.0 (4.1) (3.5) 742.4 3.885% 2029 Notes 375.0 (2.6) (1.0) 371.4 4.288% 2030 Notes 350.0 (2.6) (0.7) 346.7 3.525% 2049 Notes 625.0 (6.3) 14.2 632.9 5.103% Other 1.4 — — 1.4 N/A $ 2,321.7 $ (16.2) $ 9.0 2,314.5 Less — Current portion (14.2) Long-term debt $ 2,300.3 Senior Notes The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes and 2049 Notes (collectively, the "Notes") are shown below: Note Issuance Date(s) Maturity Date Interest Payment Dates 2027 Notes August 2017 September 15, 2027 March 15 and September 15 2029 Notes May 2019 May 15, 2029 May 15 and November 15 2030 Notes February 2020 May 30, 2030 May 30 and November 30 2049 Notes May 2019 and February 2020 May 15, 2049 May 15 and November 15 In February 2020, the Company issued $350.0 million in aggregate principal amount at maturity of 2030 Notes and an additional $300.0 million in aggregate principal amount at maturity of 2049 Notes. The 2030 Notes have a stated coupon rate of 3.5% and were issued at 99.774% of par, resulting in a yield to maturity of 3.525%. The 2049 Notes have a stated coupon rate of 5.25% and were issued at 106.626% of par, resulting in a yield to maturity of 4.821%. The net proceeds from the offering were $669.1 million after original issue discount. The proceeds were used to redeem $650.0 million in aggregate principal amount of outstanding 5.25% senior notes due 2025 (the "2025 Notes") at a redemption price equal to 102.625% of the principal amount of such 2025 Notes, plus accrued interest. In connection with these transactions, the Company recognized a loss of $21.1 million on the extinguishment of debt and paid related issuance costs of $5.9 million in the nine months ended October 3, 2020. Covenants Subject to certain exceptions, the indentures governing the Notes contain certain 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 indentures governing the Notes also provide for customary events of default. As of October 2, 2021, 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"). In February 2020, the Company entered into an agreement to extend the maturity date of the Revolving Credit Facility by one year to August 8, 2024. The maturity date of the Term Loan Facility is August 8, 2022. In connection with the extension agreement, the Company paid related issuance costs of $1.0 million. As of October 2, 2021 and December 31, 2020, there were $206.3 million and $220.3 million, respectively, of borrowings outstanding under the Term Loan Facility. In March 2020, as a proactive measure in response to the COVID-19 pandemic, the Company borrowed $1.0 billion under the Revolving Credit Facility, which was repaid in full in September 2020. As of October 2, 2021 and December 31, 2020, there were no borrowings outstanding under the Revolving Credit Facility. In the first nine months of 2021, the Company made required principal payments of $14.1 million under the 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 ranges and rates as of October 2, 2021, are shown below (in percentages): Eurocurrency Rate Base Rate Rate as of Rate as of Minimum Maximum October 2, 2021 Minimum Maximum October 2, 2021 Revolving Credit Facility 1.00 % 1.60 % 1.10 % 0.00 % 0.60 % 0.10 % Term Loan Facility 1.125 % 1.90 % 1.25 % 0.125 % 0.90 % 0.25 % 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 October 2, 2021, the Company was in compliance with all covenants under the Credit Agreement. Subsequent Event On October 28, 2021, the Company entered into an amended and restated unsecured credit agreement which increases available borrowings under the revolving credit facility to $2.0 billion and extends the maturity date to October 28, 2026. The amended and restated unsecured credit agreement maintains the Company's $250 million term loan facility maturing on August 8, 2022. Other As of October 2, 2021 and December 31, 2020, other long-term debt consists of amounts outstanding under a finance lease agreement. For further information related to the Company's debt, see Note 7, "Debt," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Leases
Leases | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles. Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions): October 2, December 31, 2020 Right-of-use assets under operating leases: Other long-term assets $ 614.3 $ 540.3 Lease obligations under operating leases: Accrued liabilities $ 127.4 $ 116.3 Other long-term liabilities 508.4 438.9 $ 635.8 $ 555.2 Maturities of lease obligations as of October 2, 2021, are shown below (in millions): October 2, 2021 2021 (1) $ 40.7 2022 137.5 2023 109.8 2024 92.7 2025 78.8 Thereafter 253.3 Total undiscounted cash flows 712.8 Less: Imputed interest (77.0) Lease obligations under operating leases $ 635.8 (1) For the remaining three months Cash flow information related to operating leases is shown below (in millions): Nine Months Ended October 2, October 3, Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 200.0 $ 116.2 Operating cash flows: Cash paid related to operating lease obligations $ 121.7 $ 106.3 Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Operating lease expense $ 40.7 $ 38.6 $ 119.6 $ 110.2 Short-term lease expense 5.0 3.3 13.6 11.3 Variable lease expense 1.7 2.2 6.1 5.9 Total lease expense $ 47.4 $ 44.1 $ 139.3 $ 127.4 In the nine months ended October 2, 2021 and October 3, 2020, the Company recognized impairment charges of $7.1 million and $2.0 million, respectively, related to its right-of-use assets in conjunction with its restructuring actions. The weighted average lease term and discount rate for operating leases are shown below: October 2, Weighted average remaining lease term Seven years Weighted average discount rate 3.2 % The Company is party to a finance lease agreement, which is not material to the accompanying condensed consolidated financial statements (Note 8, "Debt"). For further information related to the Company's leases, see Note 8, "Leases," to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Oct. 02, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company sponsors defined benefit pension plans covering certain eligible employees in the United States and certain foreign countries. The Company also sponsors postretirement benefit plans (primarily for the continuation of medical benefits) covering certain eligible retirees in the United States and Canada. 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 Nine Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Service cost $ — $ 1.2 $ 0.1 $ 1.2 $ — $ 3.9 $ 0.1 $ 3.6 Interest cost 3.7 2.6 4.1 3.1 10.9 7.9 12.3 9.2 Expected return on plan assets (5.9) (4.9) (5.4) (4.9) (17.7) (14.7) (16.0) (14.8) Amortization of actuarial loss 1.0 1.5 0.6 1.2 2.9 4.6 1.7 3.5 Settlement loss — — — 10.2 0.4 — 0.3 10.2 Net periodic benefit (credit) cost $ (1.2) $ 0.4 $ (0.6) $ 10.8 $ (3.5) $ 1.7 $ (1.6) $ 11.7 In the three and nine months ended October 3, 2020, the Company recognized a pension benefit plan settlement loss of $10.2 million related to its restructuring actions. The components of the Company’s net periodic other postretirement benefit cost are shown below (in millions): Three Months Ended Nine Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Interest cost $ 0.3 $ 0.1 $ 0.5 $ 0.2 $ 1.0 $ 0.5 $ 1.3 $ 0.6 Amortization of actuarial gain (0.2) — (0.4) — (0.8) — (1.2) — Amortization of prior service credit — — — — (0.1) — (0.1) — Net periodic benefit cost $ 0.1 $ 0.1 $ 0.1 $ 0.2 $ 0.1 $ 0.5 $ — $ 0.6 Contributions |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company enters into contracts with its customers to provide production parts generally at the beginning of a vehicle’s life cycle. Typically, these contracts do not provide for a specified quantity of products, but once entered into, the Company is often expected to fulfill its customers’ purchasing requirements for the production life of the vehicle. Many of these contracts may be terminated by the Company’s customers at any time. Historically, terminations of these contracts have been infrequent. The Company receives purchase orders from its customers, which provide the commercial 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 may be 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. In the first nine months of 2021 and 2020, revenue recognized related to prior years represented approximately 1% of consolidated net sales. 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 October 2, 2021 and December 31, 2020, there were no significant contract liabilities recorded. Further, in the first nine months of 2021 and 2020, there were no significant contract liabilities recognized in revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income (loss). 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 (loss). 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 October 2, 2021 October 3, 2020 Seating E-Systems Total Seating E-Systems Total North America $ 1,457.0 $ 332.3 $ 1,789.3 $ 1,706.2 $ 333.5 $ 2,039.7 Europe and Africa 945.1 388.3 1,333.4 1,214.0 491.1 1,705.1 Asia 622.0 340.0 962.0 661.1 343.3 1,004.4 South America 142.1 41.4 183.5 110.3 40.6 150.9 $ 3,166.2 $ 1,102.0 $ 4,268.2 $ 3,691.6 $ 1,208.5 $ 4,900.1 Nine Months Ended October 2, 2021 October 3, 2020 Seating E-Systems Total Seating E-Systems Total North America $ 4,698.3 $ 959.2 $ 5,657.5 $ 3,894.7 $ 766.1 $ 4,660.8 Europe and Africa 3,645.8 1,491.6 5,137.4 3,000.1 1,281.2 4,281.3 Asia 2,003.4 1,041.3 3,044.7 1,676.4 845.2 2,521.6 South America 422.9 120.8 543.7 241.9 96.7 338.6 $ 10,770.4 $ 3,612.9 $ 14,383.3 $ 8,813.1 $ 2,989.2 $ 11,802.3 |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Oct. 02, 2021 | |
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, losses on the extinguishment of debt, gains and losses on the disposal of fixed assets, gains and losses on the consolidation and deconsolidation of affiliates, 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 Nine Months Ended October 2, October 3, October 2, October 3, Other expense $ 12.5 $ 20.3 $ 26.5 $ 61.2 Other income (1.4) (3.2) (55.2) (6.8) Other (income) expense, net $ 11.1 $ 17.1 $ (28.7) $ 54.4 In May 2021, the Brazilian Supreme Court ruled on certain matters, including the method of determining the amount of indirect tax credits that taxpayers are entitled to monetize in future periods. As a result of the ruling, other income includes a gain of $46.0 million in the nine months ended October 2, 2021. In the three and nine months ended October 2, 2021, other expense includes net foreign currency transaction losses of $6.9 million and $13.6 million, respectively. In the nine months ended October 2, 2021, other expense also includes a loss of $1.0 million related to the impairment of an affiliate (Note 6, "Long-Lived Assets"). |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2021 | |
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 and nine months ended October 2, 2021 and October 3, 2020, is shown below (in millions, except effective tax rates): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Provision for income taxes $ 20.9 $ 44.6 $ 119.1 $ 30.1 Pretax income before equity in net (income) loss of affiliates $ 13.9 $ 235.2 $ 522.0 $ 25.4 Effective tax rate 150.4 % 19.0 % 22.8 % 118.5 % The Company’s provision for income taxes is impacted by the level and mix of earnings among tax jurisdictions. Pretax income before equity in net (income) loss of affiliates was $13.9 million in the third quarter of 2021, as compared to $235.2 million in the third quarter 2020. As a result of third quarter 2021 pretax losses in certain jurisdictions largely related to supply shortages, an effective tax rate comparison between third quarter 2021 and third quarter 2020 is not meaningful. Pretax income before equity in net (income) loss of affiliates was $522.0 million in the first nine months of 2021, as compared to $25.4 million in the first nine months of 2020. As a result of COVID-related pretax losses in the first nine months of 2020 in certain jurisdictions, an effective tax rate comparison between the first nine months of 2021 and the first nine months of 2020 is not meaningful. The Company's discrete tax benefit (expense) on significant items is shown below (in millions): Nine Months Ended October 2, October 3, Restructuring charges and various other items $ 25.5 $ 20.7 Valuation allowances on deferred tax assets (13.4) (12.2) Release of tax reserves 1.3 — Favorable indirect tax ruling in a foreign jurisdiction (9.2) — Research and development tax credits — 5.0 $ 4.2 $ 13.5 Excluding the items above, the effective tax rate for the first nine months of 2021 and 2020 approximated the U.S. federal statutory income tax rate of 21%, adjusted for income taxes on foreign earnings, losses and remittances, valuation allowances, tax credits, income tax incentives and other permanent items. 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. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments, which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Lear | 9 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Lear | Net Income (Loss) Per Share Attributable to Lear Basic net income (loss) per share available to Lear common stockholders is computed using the two-class method by dividing net income (loss) available to Lear 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 (loss) 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 available to Lear 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. The computation of diluted net loss per share available to Lear common stockholders excludes the effect of common stock equivalents as such effect would be anti-dilutive. A summary of information used to compute basic and diluted net income (loss) per share available to Lear common stockholders is shown below (in millions, except share and per share data): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Net income (loss) available to Lear $ (26.5) $ 174.4 $ 352.4 $ (43.1) Average common shares outstanding 59,906,531 60,159,356 60,171,402 60,260,886 Dilutive effect of common stock equivalents — 171,585 291,999 — Average diluted shares outstanding 59,906,531 60,330,941 60,463,401 60,260,886 Basic net income (loss) per share available to Lear common stockholders $ (0.44) $ 2.90 $ 5.86 $ (0.72) Diluted net income (loss) per share available to Lear common stockholders $ (0.44) $ 2.89 $ 5.83 $ (0.72) |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Equity | 9 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) and Equity | Comprehensive Income (Loss) and Equity Comprehensive Income (Loss) Comprehensive income (loss) 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 (loss). Accumulated Other Comprehensive Loss A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 2, 2021, is shown below (in millions): Three Months Ended October 2, 2021 Nine Months Ended October 2, 2021 Defined benefit plans: Balance at beginning of period $ (276.3) $ (276.9) Reclassification adjustments (net of tax expense of $0.3 million and $1.0 million in the three and nine months ended October 2, 2021, respectively) 2.0 6.0 Other comprehensive income (loss) recognized during the period (net of tax impact of $— million in the three and nine months ended October 2, 2021) 2.5 (0.9) Balance at end of period $ (271.8) $ (271.8) Derivative instruments and hedging: Balance at beginning of period $ 20.2 $ 12.6 Reclassification adjustments (net of tax benefit of $3.6 million and $6.9 million in the three and nine months ended October 2, 2021, respectively) (13.9) (27.3) Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $3.5 million and ($1.7) million in the three and nine months ended October 2, 2021, respectively) (14.3) 6.7 Balance at end of period $ (8.0) $ (8.0) Foreign currency translation: Balance at beginning of period $ (471.7) $ (440.8) Other comprehensive loss recognized during the period (net of tax expense of $1.4 million and $2.9 million in the three and nine months ended October 2, 2021, respectively) (51.1) (82.0) Balance at end of period $ (522.8) $ (522.8) Total accumulated other comprehensive loss $ (802.6) $ (802.6) In the three months ended October 2, 2021, foreign currency translation adjustments are primarily related to the weakening of the Euro and the Brazilian real relative to the U.S. dollar. In the nine months ended October 2, 2021, foreign currency translation adjustments are primarily related to the weakening of the Euro, and to a lesser extent, the Brazilian real, partially offset by the strengthening of the Chinese renminbi, relative to the U.S. dollar. In the three and nine months ended October 2, 2021, foreign currency translation adjustments include pretax gains (losses) of $0.2 million and ($0.4) million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 3, 2020, is shown below (in millions): Three Months Ended October 3, 2020 Nine Months Ended October 3, 2020 Defined benefit plans: Balance at beginning of period $ (211.7) $ (217.6) Reclassification adjustments (net of tax expense of $0.6 million and $1.3 million in the three and nine months ended October 3, 2020, respectively) 11.0 13.1 Other comprehensive loss recognized during the period (net of tax benefit of $5.4 million in the three and nine months ended October 3, 2020) (29.7) (25.9) Balance at end of period $ (230.4) $ (230.4) Derivative instruments and hedging: Balance at beginning of period $ (50.4) $ 9.8 Reclassification adjustments (net of tax expense of $0.1 million and $1.8 million in the three and nine months ended October 3, 2020, respectively) 3.9 9.2 Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of ($6.3) million and $9.6 million in the three and nine months ended October 3, 2020, respectively) 14.8 (50.7) Balance at end of period $ (31.7) $ (31.7) Foreign currency translation: Balance at beginning of period $ (660.9) $ (564.9) Other comprehensive income (loss) recognized during the period (net of tax benefit of $2.9 million and $0.7 million in the three and nine months ended October 3, 2020, respectively) 83.3 (12.7) Balance at end of period $ (577.6) $ (577.6) Total accumulated other comprehensive loss $ (839.7) $ (839.7) In the three months ended October 3, 2020, foreign currency translation adjustments are primarily related to the strengthening of the Euro and Chinese renminbi, partially offset by the weakening of the Brazilian real, relative to the U.S. dollar. In the nine months ended October 3, 2020, foreign currency translation adjustments are primarily related to the weakening of the Brazilian real, largely offset by the strengthening of the Euro and the Chinese renminbi, relative to the U.S. dollar. In the three and nine months ended October 3, 2020, foreign currency translation adjustments include pretax gains (losses) of $0.5 million and ($0.5) million, respectively, 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 10, "Pension and Other Postretirement Benefit Plans." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 18, "Financial Instruments." Lear Corporation Stockholders’ Equity Common Stock Share Repurchase Program The Company may implement 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 may 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. The Company has a common stock share repurchase program (the "Repurchase Program") which permits the discretionary repurchase of its common stock. Since its inception in the first quarter of 2011, the Company's Board of Directors has authorized $6.1 billion in share repurchases under the Repurchase Program. The current authorization expires on December 31, 2022. In March 2020, as a proactive measure in response to the COVID-19 pandemic, the Company suspended share repurchases under the Repurchase Program. Share repurchases were reinstated in the second quarter of 2021. Share repurchases since the reinstatement through October 2, 2021, are shown below (in millions except for shares and per share amounts): Nine Months Ended As of October 2, 2021 October 2, 2021 (1) Aggregate Repurchases Cash Paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 100.3 $ 99.3 589,717 $ 170.03 $ 1,329.7 (1) From reinstatement through October 2, 2021 (2) Excludes commissions Since the inception of the Repurchase Program, the Company repurchased, in aggregate, $4.8 billion of its outstanding common stock, at an average price of $90.97 per share, excluding commissions and related fees. In addition to shares repurchased under the Repurchase Program described above, the Company classifies 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 condensed consolidated balance sheets. Quarterly Dividend In March 2020, as a proactive measure in response to the COVID-19 pandemic, the Company suspended its quarterly cash dividend. Prior to the suspension, the Company’s Board of Directors declared a quarterly cash dividend of $0.77 per share of common stock. In the fourth quarter of 2020, the Company reinstated a quarterly cash dividend of $0.25 per share of common stock. The Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock in the first and second quarters of 2021 and a quarterly cash dividend of $0.50 per share of common stock in the third quarter of 2021. Dividends declared and paid are shown below (in millions): Nine Months Ended October 2, October 3, 2020 (1) Dividends declared $ 61.1 $ 46.8 Dividends paid 60.7 52.0 (1) Prior to March 2020 suspension Dividends payable on common shares to be distributed under the Company’s stock-based compensation program will be paid when such common shares are distributed. Noncontrolling Interest On September 6, 2021, the Company sold a 49% equity interest in its wholly owned consolidated subsidiary, Shenyang Lear Automotive Seating and Interior Systems Co., Ltd. ("Shenyang Lear"), for $36.2 million. The Company continues to control Shenyang Lear, and as a result, the operating results and cash flows of Shenyang Lear continue to be included in the Company's condensed consolidated financial statements. Noncontrolling interest of $7.6 million was recorded in conjunction with the transaction. The difference between the consideration paid and the carrying value of the noncontrolling interest recorded is reflected in additional paid-in capital in the accompanying condensed consolidated balance sheet as of October 2, 2021. The proceeds from the sale are classified within cash flows used in financing activities in the accompanying condensed consolidated statement of cash flows for the nine months ended October 2, 2021. |
Legal and Other Contingencies
Legal and Other Contingencies | 9 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Other Contingencies | Legal and Other Contingencies As of October 2, 2021 and December 31, 2020, the Company had recorded reserves for pending legal disputes, including commercial disputes and other matters, of $17.5 million and $17.2 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically 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 related to 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. 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 nine months ended October 2, 2021, is shown below (in millions): Balance at January 1, 2021 $ 48.7 Expense, net (including changes in estimates) 6.3 Settlements (10.3) Foreign currency translation and other (1.1) Balance at October 2, 2021 $ 43.6 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 October 2, 2021 and December 31, 2020, the Company had recorded environmental reserves of $8.4 million and $8.9 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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company is organized under two reportable operating segments: Seating, which consists of the design, development, engineering and manufacture of complete seat systems, seat subsystems and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, electronic systems, and software. Key components in the Company's complete seat system and subsystem solutions are advanced comfort, wellness, safety and sound offerings, as well as configurable seating product technologies, all of which are compatible with traditional internal combustion engine ("ICE") architectures and the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers, surface materials such as leather and fabric, seat mechanisms, seat foam and headrests. Key components in the Company's electrical distribution portfolio include wire harnesses, terminals and connectors, and engineered components for both ICE and electrified vehicle architectures that require management of higher voltage and power. Key components in the Company's electronic systems portfolio include body domain control modules and products specific to electrification and connectivity trends. Electrification products include on-board battery chargers, power conversion modules, high voltage battery management systems and high voltage power distribution systems. Connectivity products include gateway modules and communication modules to manage both wired and wireless networks and data in vehicles. In addition to electronic modules, the Company offers software that includes cybersecurity, advanced vehicle positioning for automated and autonomous driving applications and full capabilities in both dedicated short-range communication and cellular protocols for vehicle connectivity. The Company's software offerings include embedded control software and cloud and mobile device-based software and services. 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. Corporate and regional headquarters costs include various support functions, such as information technology, advanced research and development, corporate finance, legal, executive administration and human resources. Each of the Company’s operating segments reports its results from operations and makes its requests for capital expenditures directly to the chief operating decision maker. The economic performance of each operating segment is driven primarily by automotive production volumes in the geographic regions in which it operates, as well as by the success of the vehicle platforms for which it supplies products. Also, each operating segment operates in the competitive Tier 1 automotive supplier environment and is continually working with its customers to manage costs and improve quality. The Company’s production processes generally make use of hourly labor, dedicated facilities, sequential manufacturing and assembly processes and commodity raw materials. The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income (loss) before equity in net income of affiliates, interest expense and other (income) 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 October 2, 2021 Seating E-Systems Other Consolidated Revenues from external customers $ 3,166.2 $ 1,102.0 $ — $ 4,268.2 Segment earnings (1) 126.7 (7.5) (71.6) 47.6 Depreciation and amortization 90.3 46.2 3.9 140.4 Capital expenditures 85.2 58.9 8.5 152.6 Total assets 7,405.4 3,597.3 2,043.3 13,046.0 Three Months Ended October 3, 2020 Seating E-Systems Other Consolidated Revenues from external customers $ 3,691.6 $ 1,208.5 $ — $ 4,900.1 Segment earnings (1) 250.7 86.0 (57.9) 278.8 Depreciation and amortization 87.8 44.8 3.7 136.3 Capital expenditures 48.8 40.2 1.1 90.1 Total assets 7,574.2 3,232.4 2,088.1 12,894.7 Nine Months Ended October 2, 2021 Seating E-Systems Other Consolidated Revenues from external customers $ 10,770.4 $ 3,612.9 $ — $ 14,383.3 Segment earnings (1) 670.9 108.4 (218.8) 560.5 Depreciation and amortization 270.8 149.1 11.5 431.4 Capital expenditures 231.7 153.9 19.9 405.5 Nine Months Ended October 3, 2020 Seating E-Systems Other Consolidated Revenues from external customers $ 8,813.1 $ 2,989.2 $ — $ 11,802.3 Segment earnings (1) 320.4 5.0 (167.5) 157.9 Depreciation and amortization 255.1 130.5 11.5 397.1 Capital expenditures 162.0 119.0 4.3 285.3 (1) See definition above For the three months ended October 2, 2021, segment earnings include restructuring charges of $15.2 million, $28.9 million and $1.3 million in the Seating and E-Systems segments and in the other category, respectively. For the nine months ended October 2, 2021, segment earnings include restructuring charges of $35.2 million, $37.3 million and $5.5 million in the Seating and E-Systems segments and in the other category, respectively. The Company expects to incur approximately $18 million and $19 million of additional restructuring costs in the Seating and E-Systems segments, respectively, related to activities initiated as of October 2, 2021, and expects that the components of such costs will be consistent with its historical experience. For the three months ended October 3, 2020, segment earnings include restructuring charges of $33.6 million, $5.0 million and $0.3 million in the Seating and E-Systems segments and in the other category, respectively. For the nine months ended October 3, 2020, segment earnings include restructuring charges of $59.3 million, $46.2 million and $0.9 million in the Seating and E-Systems segments and in the other category, respectively. For further information, see Note 3, "Restructuring." A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net (income) loss of affiliates is shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Segment earnings $ 47.6 $ 278.8 $ 560.5 $ 157.9 Interest expense 22.6 26.5 67.2 78.1 Other (income) expense, net 11.1 17.1 (28.7) 54.4 Consolidated income before provision for income taxes and equity in net (income) loss of affiliates $ 13.9 $ 235.2 $ 522.0 $ 25.4 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Instruments The carrying values of the Notes vary from their fair values. The fair values of the Notes were determined by reference to the quoted market prices of these securities (Level 2 input based on the GAAP fair value hierarchy). The carrying value of the Company’s Term Loan Facility approximates its fair value (Level 3 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): October 2, December 31, Estimated aggregate fair value (1) $ 2,612.0 $ 2,633.3 Aggregate carrying value (1) (2) 2,306.3 2,320.3 (1) Includes Term Loan Facility and Notes (excludes "other" debt) (2) Excludes the impact of unamortized debt issuance costs and unamortized original issue premium (discount) Cash, Cash Equivalents and Restricted Cash The Company has cash on deposit that is legally restricted as to use or withdrawal. A reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets and the accompanying condensed consolidated statements of cash flows is shown below (in millions): October 2, October 3, Balance sheet: Cash and cash equivalents $ 1,099.1 $ 1,250.4 Restricted cash included in other current assets 1.4 5.1 Restricted cash included in other long-term assets 1.6 2.7 Statement of cash flows: Cash, cash equivalents and restricted cash $ 1,102.1 $ 1,258.2 Accounts Receivable The Company’s allowance for credit losses on financial assets measured at amortized cost, primarily accounts receivable, reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. The Company also considers geographic and segment specific risk factors in the development of expected credit losses. As of October 2, 2021 and December 31, 2020, accounts receivable are reflected net of reserves of $33.3 million and $35.3 million, respectively. Changes in expected credit losses were not significant in the first nine months of 2021. 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): October 2, December 31, Current assets $ 2.7 $ 9.3 Other long-term assets 55.1 49.4 $ 57.8 $ 58.7 Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in other (income) expense, net in the condensed consolidated statements of comprehensive income (loss). 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). Equity Securities Without Readily Determinable Fair Values As of October 2, 2021 and December 31, 2020, investments in equity securities without readily determinable fair values of $15.4 million and $11.2 million, respectively, are included in other long-term assets in the accompanying condensed consolidated balance sheets. Such investments are valued at cost, less cumulative impairments of $10.0 million. During the nine months ended October 2, 2021, the Company recognized an impairment charge of $1.0 million related to an investment in equity securities without a readily determinable 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 hedge 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 hedge 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 statements of comprehensive income (loss) 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 sheets. 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 statements of comprehensive income (loss) 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 sheets. When the related currency translation adjustment is required to be reclassified, usually upon the sale or liquidation of the investment, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in other expense, net in the condensed consolidated statements of comprehensive income (loss). Changes in the fair value of contracts not designated as hedge instruments are recorded in earnings and reflected in other expense, net in the condensed consolidated statements of comprehensive income (loss). Cash flows attributable to derivatives used to manage foreign currency risks are classified on the same line as the hedged item attributable to the hedged risk in the condensed consolidated statements of cash flows. Upon settlement, cash flows attributable to derivatives designated as net investment hedges are classified as investing activities in the condensed consolidated statements of cash flows. Cash flows attributable to forward starting interest rate swaps are classified as financing activities in the condensed consolidated statements of cash flows. The Company formally documents its hedge relationships, including the identification of the hedge instruments and the related hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. Derivatives are recorded at fair value in other current and long-term assets and other current and long-term liabilities in the condensed consolidated balance sheets. The Company also formally assesses whether a derivative used in a hedge transaction is highly effective in offsetting changes in either the fair value or the cash flows of the hedged item. When it is determined that a hedged transaction is no longer probable to occur, the Company discontinues hedge accounting. 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 Chinese renminbi, the Japanese yen, the Philippine peso and the Thai baht. Foreign currency derivative contracts not designated as hedging instruments consist principally of hedges of cash transactions, intercompany loans and certain other balance sheet exposures. Net Investment Hedges The Company uses cross-currency interest rate swaps, which are designated as net investment hedges of the foreign currency rate exposure of its investment in certain Euro-denominated subsidiaries. In the nine months ended October 2, 2021 and October 3, 2020, contra interest expense on net investment hedges of $4.9 million is included in interest expense in the accompanying condensed consolidated statements of comprehensive income (loss). Balance Sheet Classification The notional amount, estimated aggregate fair value and related balance sheet classification of the Company's foreign currency and net investment hedge contracts are shown below (in millions, except for maturities): October 2, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 30.7 $ 49.7 Other long-term assets 0.7 13.0 Other current liabilities (7.7) (14.1) Other long-term liabilities (3.6) (0.8) 20.1 47.8 Notional amount $ 1,173.4 $ 1,353.3 Outstanding maturities in months, not to exceed 24 24 Fair value of derivatives designated as net investment hedges: Other long-term liabilities $ (8.7) $ (22.6) Notional amount $ 300.0 $ 300.0 Outstanding maturities in months, not to exceed 36 45 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 5.5 $ 5.8 Other current liabilities (5.4) (6.1) 0.1 (0.3) Notional amount $ 1,288.3 $ 1,140.8 Outstanding maturities in months, not to exceed 12 12 Total fair value $ 11.5 $ 24.9 Total notional amount $ 2,761.7 $ 2,794.1 Accumulated Other Comprehensive Loss — Derivative Instruments and Hedging Pretax amounts related to foreign currency and net investment hedge contracts that were recognized in and reclassified from accumulated other comprehensive loss are shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Gains (losses) recognized in accumulated other comprehensive loss: Foreign currency contracts $ (17.8) $ 21.1 $ 8.4 $ (60.3) Net investment hedge contracts 6.6 (13.9) 13.9 (3.5) (11.2) 7.2 22.3 (63.8) (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales (1.9) (0.2) (2.5) (0.7) Cost of sales (16.2) 3.5 (33.5) 10.0 Interest expense 0.6 0.6 1.8 1.8 Other (income) expense, net — 0.1 — (0.1) (17.5) 4.0 (34.2) 11.0 Comprehensive income (loss) $ (28.7) $ 11.2 $ (11.9) $ (52.8) As of October 2, 2021 and December 31, 2020, pretax net gains (losses) of ($7.2) million and $4.7 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, net gains (losses) expected to be reclassified into earnings are shown below (in millions): Foreign currency contracts $ 23.0 Interest rate swap contracts (2.4) Total $ 20.6 Such gains and losses 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 October 2, 2021 and December 31, 2020, are shown below (in millions): October 2, 2021 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 20.2 Market/ Income $ — $ 20.2 $ — Net investment hedges Recurring (8.7) Market/ Income — (8.7) — Marketable equity securities Recurring 57.8 Market 57.8 — — December 31, 2020 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 47.5 Market/ Income $ — $ 47.5 $ — Net investment hedges Recurring (22.6) Market/ Income — (22.6) — Marketable equity securities Recurring 58.7 Market 58.7 — — 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 October 2, 2021 and December 31, 2020, 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 the first nine months of 2021. 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 the first and second quarters of 2021, the Company completed a quantitative goodwill impairment assessment for one of its reporting units. The fair value estimate of the reporting unit was based on management's estimates using a discounted cash flow method. In the second quarter of 2021, the Company completed an impairment assessment related to certain of its intangible assets. The fair value estimate of the related asset group was based on management's estimates using a discounted cash flow method. Fair value estimates of property, plant and equipment and right-of-use assets are 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. As of October 2, 2021, there were no additional significant assets or liabilities measured at fair value on a non-recurring basis. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB") as summarized below. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The standard simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. The standard was effective January 1, 2021, and the adoption did not have a significant impact on the Company's financial statements. Reference Rate Reform The FASB issued ASU 2020-04 and ASU 2021-01, "Reference Rate Reform (Topic 848)." The guidance provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of this guidance is not expected to have a significant impact on the Company's financial statements. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Acquisition On October 28, 2021, the Company entered into a definitive agreement to acquire substantially all of Kongsberg Automotive's Interior Comfort Systems business unit ("Kongsberg"). Kongsberg specializes in comfort seating solutions, including massage, lumber, seat heat and ventilation. The transaction is valued at approximately €175 million, on a cash and debt free basis. The acquisition, subject to regulatory approvals and customary closing conditions and adjustments, is expected to close in the first quarter of 2022. Credit Agreement See Note 8, "Debt — Credit Agreement — Subsequent Event." |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 02, 2021 | |
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. |
Restructuring | Restructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. Employee termination benefits are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Other 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 when restructuring actions are approved and/or implemented. |
Inventories | Inventories are stated at the lower of cost or net realizable value. 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 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. |
Long-Term Assets | 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. |
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 recognized in an amount equal to that excess, limited to the total amount of goodwill recorded. The Company conducts its annual impairment testing as of the first day of its fourth quarte r. |
Revenue Recognition | The Company enters into contracts with its customers to provide production parts generally at the beginning of a vehicle’s life cycle. Typically, these contracts do not provide for a specified quantity of products, but once entered into, the Company is often expected to fulfill its customers’ purchasing requirements for the production life of the vehicle. Many of these contracts may be terminated by the Company’s customers at any time. Historically, terminations of these contracts have been infrequent. The Company receives purchase orders from its customers, which provide the commercial 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 may be 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. In the first nine months of 2021 and 2020, revenue recognized related to prior years represented approximately 1% of consolidated net sales. 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 October 2, 2021 and December 31, 2020, there were no significant contract liabilities recorded. Further, in the first nine months of 2021 and 2020, there were no significant contract liabilities recognized in revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income (loss). 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 (loss). 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. |
Income Taxes | 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. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments, which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. |
Net Income (Loss) Per Share Attributable to Lear | Basic net income (loss) per share available to Lear common stockholders is computed using the two-class method by dividing net income (loss) available to Lear 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 (loss) 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 available to Lear 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. The computation of diluted net loss per share available to Lear common stockholders excludes the effect of common stock equivalents as such effect would be anti-dilutive. |
Redeemable Noncontrolling Interest | As of October 3, 2020, the accompanying condensed consolidated statements of equity include the Company's redeemable noncontrolling interest in Shanghai Lear STEC Automotive Parts Co., Ltd. ("STEC"). 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. In 2020, the noncontrolling interest holder in STEC exercised its option requiring the Company to purchase its redeemable noncontrolling interest. The transaction was completed in the fourth quarter of 2020 |
Segment Reporting | The Company is organized under two reportable operating segments: Seating, which consists of the design, development, engineering and manufacture of complete seat systems, seat subsystems and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, electronic systems, and software. Key components in the Company's complete seat system and subsystem solutions are advanced comfort, wellness, safety and sound offerings, as well as configurable seating product technologies, all of which are compatible with traditional internal combustion engine ("ICE") architectures and the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers, surface materials such as leather and fabric, seat mechanisms, seat foam and headrests. Key components in the Company's electrical distribution portfolio include wire harnesses, terminals and connectors, and engineered components for both ICE and electrified vehicle architectures that require management of higher voltage and power. Key components in the Company's electronic systems portfolio include body domain control modules and products specific to electrification and connectivity trends. Electrification products include on-board battery chargers, power conversion modules, high voltage battery management systems and high voltage power distribution systems. Connectivity products include gateway modules and communication modules to manage both wired and wireless networks and data in vehicles. In addition to electronic modules, the Company offers software that includes cybersecurity, advanced vehicle positioning for automated and autonomous driving applications and full capabilities in both dedicated short-range communication and cellular protocols for vehicle connectivity. The Company's software offerings include embedded control software and cloud and mobile device-based software and services. 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. Corporate and regional headquarters costs include various support functions, such as information technology, advanced research and development, corporate finance, legal, executive administration and human resources. Each of the Company’s operating segments reports its results from operations and makes its requests for capital expenditures directly to the chief operating decision maker. The economic performance of each operating segment is driven primarily by automotive production volumes in the geographic regions in which it operates, as well as by the success of the vehicle platforms for which it supplies products. Also, each operating segment operates in the competitive Tier 1 automotive supplier environment and is continually working with its customers to manage costs and improve quality. The Company’s production processes generally make use of hourly labor, dedicated facilities, sequential manufacturing and assembly processes and commodity raw materials. The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income (loss) before equity in net income of affiliates, interest expense and other (income) expense, net ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. |
Accounts Receivable | The Company’s allowance for credit losses on financial assets measured at amortized cost, primarily accounts receivable, reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. The Company also considers geographic and segment specific risk factors in the development of expected credit losses. |
Marketable Equity Securities | Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in other (income) expense, net in the condensed consolidated statements of comprehensive income (loss). 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 hedge 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 hedge 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 statements of comprehensive income (loss) 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 sheets. 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 statements of comprehensive income (loss) 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 sheets. When the related currency translation adjustment is required to be reclassified, usually upon the sale or liquidation of the investment, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in other expense, net in the condensed consolidated statements of comprehensive income (loss). Changes in the fair value of contracts not designated as hedge instruments are recorded in earnings and reflected in other expense, net in the condensed consolidated statements of comprehensive income (loss). Cash flows attributable to derivatives used to manage foreign currency risks are classified on the same line as the hedged item attributable to the hedged risk in the condensed consolidated statements of cash flows. Upon settlement, cash flows attributable to derivatives designated as net investment hedges are classified as investing activities in the condensed consolidated statements of cash flows. Cash flows attributable to forward starting interest rate swaps are classified as financing activities in the condensed consolidated statements of cash flows. The Company formally documents its hedge relationships, including the identification of the hedge instruments and the related hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. Derivatives are recorded at fair value in other current and long-term assets and other current and long-term liabilities in the condensed |
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. |
Accounting Pronouncements | The Company considers the applicability and impact of all Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB") as summarized below. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The standard simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. The standard was effective January 1, 2021, and the adoption did not have a significant impact on the Company's financial statements. Reference Rate Reform The FASB issued ASU 2020-04 and ASU 2021-01, "Reference Rate Reform (Topic 848)." The guidance provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of this guidance is not expected to have a significant impact on the Company's financial statements. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activity | A summary of 2021 activity is shown below (in millions): Accrual at January 1, 2021 2021 Utilization Accrual at October 2, 2021 Charges Cash Non-cash Employee termination benefits $ 134.8 $ 60.1 $ (65.6) $ (5.1) $ 124.2 Asset impairment charges — 8.1 — (8.1) — Contract termination costs 4.2 0.1 (0.8) — 3.5 Other related costs — 9.7 (9.7) — — Total $ 139.0 $ 78.0 $ (76.1) $ (13.2) $ 127.7 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is shown below (in millions): October 2, December 31, Raw materials $ 1,250.1 $ 1,051.6 Work-in-process 124.7 109.8 Finished goods 545.5 396.9 Reserves (154.3) (157.2) Inventories $ 1,766.0 $ 1,401.1 |
Pre-Production Costs Related _2
Pre-Production Costs Related to Long-Term Supply Agreements (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Classification of Recoverable Customer E&D 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 included in the accompanying condensed consolidated balance sheets is shown below (in millions): October 2, December 31, Current $ 276.2 $ 212.0 Long-term 127.6 121.4 Recoverable customer E&D and tooling $ 403.8 $ 333.4 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment is shown below (in millions): October 2, December 31, Land $ 110.1 $ 114.1 Buildings and improvements 848.7 880.7 Machinery and equipment 4,445.6 4,339.2 Construction in progress 351.1 311.1 Total property, plant and equipment 5,755.5 5,645.1 Less – accumulated depreciation (3,059.2) (2,908.9) Property, plant and equipment, net $ 2,696.3 $ 2,736.2 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 nine months ended October 2, 2021, is shown below (in millions): Seating E-Systems Total Balance at January 1, 2021 $ 1,268.8 $ 387.0 $ 1,655.8 Foreign currency translation and other (15.4) 20.0 4.6 Balance at October 2, 2021 $ 1,253.4 $ 407.0 $ 1,660.4 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions): October 2, 2021 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Credit Agreement — Term Loan Facility $ 206.3 $ (0.4) $ — $ 205.9 1.330% 3.8% Senior Notes due 2027 (the "2027 Notes") 750.0 (3.6) (3.1) 743.3 3.885% 4.25% Senior Notes due 2029 (the "2029 Notes") 375.0 (2.4) (0.9) 371.7 4.288% 3.5% Senior Notes due 2030 (the "2030 Notes") 350.0 (2.4) (0.7) 346.9 3.525% 5.25% Senior Notes due 2049 (the "2049 Notes") 625.0 (6.1) 13.8 632.7 5.103% Other 1.3 — — 1.3 N/A $ 2,307.6 $ (14.9) $ 9.1 $ 2,301.8 Less — Current portion (206.0) Long-term debt $ 2,095.8 December 31, 2020 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Credit Agreement — Term Loan Facility $ 220.3 $ (0.6) $ — $ 219.7 1.360% 2027 Notes 750.0 (4.1) (3.5) 742.4 3.885% 2029 Notes 375.0 (2.6) (1.0) 371.4 4.288% 2030 Notes 350.0 (2.6) (0.7) 346.7 3.525% 2049 Notes 625.0 (6.3) 14.2 632.9 5.103% Other 1.4 — — 1.4 N/A $ 2,321.7 $ (16.2) $ 9.0 2,314.5 Less — Current portion (14.2) Long-term debt $ 2,300.3 Senior Notes The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes and 2049 Notes (collectively, the "Notes") are shown below: Note Issuance Date(s) Maturity Date Interest Payment Dates 2027 Notes August 2017 September 15, 2027 March 15 and September 15 2029 Notes May 2019 May 15, 2029 May 15 and November 15 2030 Notes February 2020 May 30, 2030 May 30 and November 30 2049 Notes May 2019 and February 2020 May 15, 2049 May 15 and November 15 |
Credit Agreement Interest Rate Ranges | The ranges and rates as of October 2, 2021, are shown below (in percentages): Eurocurrency Rate Base Rate Rate as of Rate as of Minimum Maximum October 2, 2021 Minimum Maximum October 2, 2021 Revolving Credit Facility 1.00 % 1.60 % 1.10 % 0.00 % 0.60 % 0.10 % Term Loan Facility 1.125 % 1.90 % 1.25 % 0.125 % 0.90 % 0.25 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Right-of-Use Assets and Lease Obligations | Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions): October 2, December 31, 2020 Right-of-use assets under operating leases: Other long-term assets $ 614.3 $ 540.3 Lease obligations under operating leases: Accrued liabilities $ 127.4 $ 116.3 Other long-term liabilities 508.4 438.9 $ 635.8 $ 555.2 |
Maturity of Lease Obligations | Maturities of lease obligations as of October 2, 2021, are shown below (in millions): October 2, 2021 2021 (1) $ 40.7 2022 137.5 2023 109.8 2024 92.7 2025 78.8 Thereafter 253.3 Total undiscounted cash flows 712.8 Less: Imputed interest (77.0) Lease obligations under operating leases $ 635.8 (1) For the remaining three months |
Cash Flow Information, Lease Expense, Weighted Average Lease Term and Discount Rate | Cash flow information related to operating leases is shown below (in millions): Nine Months Ended October 2, October 3, Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 200.0 $ 116.2 Operating cash flows: Cash paid related to operating lease obligations $ 121.7 $ 106.3 Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Operating lease expense $ 40.7 $ 38.6 $ 119.6 $ 110.2 Short-term lease expense 5.0 3.3 13.6 11.3 Variable lease expense 1.7 2.2 6.1 5.9 Total lease expense $ 47.4 $ 44.1 $ 139.3 $ 127.4 The weighted average lease term and discount rate for operating leases are shown below: October 2, Weighted average remaining lease term Seven years Weighted average discount rate 3.2 % |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Retirement Benefits [Abstract] | |
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 Nine Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Service cost $ — $ 1.2 $ 0.1 $ 1.2 $ — $ 3.9 $ 0.1 $ 3.6 Interest cost 3.7 2.6 4.1 3.1 10.9 7.9 12.3 9.2 Expected return on plan assets (5.9) (4.9) (5.4) (4.9) (17.7) (14.7) (16.0) (14.8) Amortization of actuarial loss 1.0 1.5 0.6 1.2 2.9 4.6 1.7 3.5 Settlement loss — — — 10.2 0.4 — 0.3 10.2 Net periodic benefit (credit) cost $ (1.2) $ 0.4 $ (0.6) $ 10.8 $ (3.5) $ 1.7 $ (1.6) $ 11.7 In the three and nine months ended October 3, 2020, the Company recognized a pension benefit plan settlement loss of $10.2 million related to its restructuring actions. The components of the Company’s net periodic other postretirement benefit cost are shown below (in millions): Three Months Ended Nine Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Interest cost $ 0.3 $ 0.1 $ 0.5 $ 0.2 $ 1.0 $ 0.5 $ 1.3 $ 0.6 Amortization of actuarial gain (0.2) — (0.4) — (0.8) — (1.2) — Amortization of prior service credit — — — — (0.1) — (0.1) — Net periodic benefit cost $ 0.1 $ 0.1 $ 0.1 $ 0.2 $ 0.1 $ 0.5 $ — $ 0.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 October 3, 2020 Seating E-Systems Total Seating E-Systems Total North America $ 1,457.0 $ 332.3 $ 1,789.3 $ 1,706.2 $ 333.5 $ 2,039.7 Europe and Africa 945.1 388.3 1,333.4 1,214.0 491.1 1,705.1 Asia 622.0 340.0 962.0 661.1 343.3 1,004.4 South America 142.1 41.4 183.5 110.3 40.6 150.9 $ 3,166.2 $ 1,102.0 $ 4,268.2 $ 3,691.6 $ 1,208.5 $ 4,900.1 Nine Months Ended October 2, 2021 October 3, 2020 Seating E-Systems Total Seating E-Systems Total North America $ 4,698.3 $ 959.2 $ 5,657.5 $ 3,894.7 $ 766.1 $ 4,660.8 Europe and Africa 3,645.8 1,491.6 5,137.4 3,000.1 1,281.2 4,281.3 Asia 2,003.4 1,041.3 3,044.7 1,676.4 845.2 2,521.6 South America 422.9 120.8 543.7 241.9 96.7 338.6 $ 10,770.4 $ 3,612.9 $ 14,383.3 $ 8,813.1 $ 2,989.2 $ 11,802.3 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 Nine Months Ended October 2, October 3, October 2, October 3, Other expense $ 12.5 $ 20.3 $ 26.5 $ 61.2 Other income (1.4) (3.2) (55.2) (6.8) Other (income) expense, net $ 11.1 $ 17.1 $ (28.7) $ 54.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 and nine months ended October 2, 2021 and October 3, 2020, is shown below (in millions, except effective tax rates): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Provision for income taxes $ 20.9 $ 44.6 $ 119.1 $ 30.1 Pretax income before equity in net (income) loss of affiliates $ 13.9 $ 235.2 $ 522.0 $ 25.4 Effective tax rate 150.4 % 19.0 % 22.8 % 118.5 % |
Schedule of Tax Benefits (Expense) | The Company's discrete tax benefit (expense) on significant items is shown below (in millions): Nine Months Ended October 2, October 3, Restructuring charges and various other items $ 25.5 $ 20.7 Valuation allowances on deferred tax assets (13.4) (12.2) Release of tax reserves 1.3 — Favorable indirect tax ruling in a foreign jurisdiction (9.2) — Research and development tax credits — 5.0 $ 4.2 $ 13.5 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Lear (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Information Used to Compute Basic and Diluted Net Income (Loss) Per Share | A summary of information used to compute basic and diluted net income (loss) per share available to Lear common stockholders is shown below (in millions, except share and per share data): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Net income (loss) available to Lear $ (26.5) $ 174.4 $ 352.4 $ (43.1) Average common shares outstanding 59,906,531 60,159,356 60,171,402 60,260,886 Dilutive effect of common stock equivalents — 171,585 291,999 — Average diluted shares outstanding 59,906,531 60,330,941 60,463,401 60,260,886 Basic net income (loss) per share available to Lear common stockholders $ (0.44) $ 2.90 $ 5.86 $ (0.72) Diluted net income (loss) per share available to Lear common stockholders $ (0.44) $ 2.89 $ 5.83 $ (0.72) |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Equity (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Summary of Changes, Net of Tax, in Accumulated Other Comprehensive Loss | A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 2, 2021, is shown below (in millions): Three Months Ended October 2, 2021 Nine Months Ended October 2, 2021 Defined benefit plans: Balance at beginning of period $ (276.3) $ (276.9) Reclassification adjustments (net of tax expense of $0.3 million and $1.0 million in the three and nine months ended October 2, 2021, respectively) 2.0 6.0 Other comprehensive income (loss) recognized during the period (net of tax impact of $— million in the three and nine months ended October 2, 2021) 2.5 (0.9) Balance at end of period $ (271.8) $ (271.8) Derivative instruments and hedging: Balance at beginning of period $ 20.2 $ 12.6 Reclassification adjustments (net of tax benefit of $3.6 million and $6.9 million in the three and nine months ended October 2, 2021, respectively) (13.9) (27.3) Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $3.5 million and ($1.7) million in the three and nine months ended October 2, 2021, respectively) (14.3) 6.7 Balance at end of period $ (8.0) $ (8.0) Foreign currency translation: Balance at beginning of period $ (471.7) $ (440.8) Other comprehensive loss recognized during the period (net of tax expense of $1.4 million and $2.9 million in the three and nine months ended October 2, 2021, respectively) (51.1) (82.0) Balance at end of period $ (522.8) $ (522.8) Total accumulated other comprehensive loss $ (802.6) $ (802.6) A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 3, 2020, is shown below (in millions): Three Months Ended October 3, 2020 Nine Months Ended October 3, 2020 Defined benefit plans: Balance at beginning of period $ (211.7) $ (217.6) Reclassification adjustments (net of tax expense of $0.6 million and $1.3 million in the three and nine months ended October 3, 2020, respectively) 11.0 13.1 Other comprehensive loss recognized during the period (net of tax benefit of $5.4 million in the three and nine months ended October 3, 2020) (29.7) (25.9) Balance at end of period $ (230.4) $ (230.4) Derivative instruments and hedging: Balance at beginning of period $ (50.4) $ 9.8 Reclassification adjustments (net of tax expense of $0.1 million and $1.8 million in the three and nine months ended October 3, 2020, respectively) 3.9 9.2 Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of ($6.3) million and $9.6 million in the three and nine months ended October 3, 2020, respectively) 14.8 (50.7) Balance at end of period $ (31.7) $ (31.7) Foreign currency translation: Balance at beginning of period $ (660.9) $ (564.9) Other comprehensive income (loss) recognized during the period (net of tax benefit of $2.9 million and $0.7 million in the three and nine months ended October 3, 2020, respectively) 83.3 (12.7) Balance at end of period $ (577.6) $ (577.6) Total accumulated other comprehensive loss $ (839.7) $ (839.7) |
Schedule of Share Repurchases | Share repurchases since the reinstatement through October 2, 2021, are shown below (in millions except for shares and per share amounts): Nine Months Ended As of October 2, 2021 October 2, 2021 (1) Aggregate Repurchases Cash Paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 100.3 $ 99.3 589,717 $ 170.03 $ 1,329.7 (1) From reinstatement through October 2, 2021 (2) Excludes commissions Dividends declared and paid are shown below (in millions): Nine Months Ended October 2, October 3, 2020 (1) Dividends declared $ 61.1 $ 46.8 Dividends paid 60.7 52.0 (1) Prior to March 2020 suspension |
Legal and Other Contingencies (
Legal and Other Contingencies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 nine months ended October 2, 2021, is shown below (in millions): Balance at January 1, 2021 $ 48.7 Expense, net (including changes in estimates) 6.3 Settlements (10.3) Foreign currency translation and other (1.1) Balance at October 2, 2021 $ 43.6 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 Seating E-Systems Other Consolidated Revenues from external customers $ 3,166.2 $ 1,102.0 $ — $ 4,268.2 Segment earnings (1) 126.7 (7.5) (71.6) 47.6 Depreciation and amortization 90.3 46.2 3.9 140.4 Capital expenditures 85.2 58.9 8.5 152.6 Total assets 7,405.4 3,597.3 2,043.3 13,046.0 Three Months Ended October 3, 2020 Seating E-Systems Other Consolidated Revenues from external customers $ 3,691.6 $ 1,208.5 $ — $ 4,900.1 Segment earnings (1) 250.7 86.0 (57.9) 278.8 Depreciation and amortization 87.8 44.8 3.7 136.3 Capital expenditures 48.8 40.2 1.1 90.1 Total assets 7,574.2 3,232.4 2,088.1 12,894.7 Nine Months Ended October 2, 2021 Seating E-Systems Other Consolidated Revenues from external customers $ 10,770.4 $ 3,612.9 $ — $ 14,383.3 Segment earnings (1) 670.9 108.4 (218.8) 560.5 Depreciation and amortization 270.8 149.1 11.5 431.4 Capital expenditures 231.7 153.9 19.9 405.5 Nine Months Ended October 3, 2020 Seating E-Systems Other Consolidated Revenues from external customers $ 8,813.1 $ 2,989.2 $ — $ 11,802.3 Segment earnings (1) 320.4 5.0 (167.5) 157.9 Depreciation and amortization 255.1 130.5 11.5 397.1 Capital expenditures 162.0 119.0 4.3 285.3 (1) See definition above |
Reconciliation of Segment Earnings to Consolidated Income (Loss) Before Provision (Benefit) for Income Taxes and Equity | A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net (income) loss of affiliates is shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Segment earnings $ 47.6 $ 278.8 $ 560.5 $ 157.9 Interest expense 22.6 26.5 67.2 78.1 Other (income) expense, net 11.1 17.1 (28.7) 54.4 Consolidated income before provision for income taxes and equity in net (income) loss of affiliates $ 13.9 $ 235.2 $ 522.0 $ 25.4 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Aggregate Fair Value and 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): October 2, December 31, Estimated aggregate fair value (1) $ 2,612.0 $ 2,633.3 Aggregate carrying value (1) (2) 2,306.3 2,320.3 (1) Includes Term Loan Facility and Notes (excludes "other" debt) (2) Excludes the impact of unamortized debt issuance costs and unamortized original issue premium (discount) |
Reconciliation of Cash, Cash Equivalents | A reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets and the accompanying condensed consolidated statements of cash flows is shown below (in millions): October 2, October 3, Balance sheet: Cash and cash equivalents $ 1,099.1 $ 1,250.4 Restricted cash included in other current assets 1.4 5.1 Restricted cash included in other long-term assets 1.6 2.7 Statement of cash flows: Cash, cash equivalents and restricted cash $ 1,102.1 $ 1,258.2 |
Reconciliation of Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets and the accompanying condensed consolidated statements of cash flows is shown below (in millions): October 2, October 3, Balance sheet: Cash and cash equivalents $ 1,099.1 $ 1,250.4 Restricted cash included in other current assets 1.4 5.1 Restricted cash included in other long-term assets 1.6 2.7 Statement of cash flows: Cash, cash equivalents and restricted cash $ 1,102.1 $ 1,258.2 |
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): October 2, December 31, Current assets $ 2.7 $ 9.3 Other long-term assets 55.1 49.4 $ 57.8 $ 58.7 |
Notional Amount, Estimated Aggregate Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts | The notional amount, estimated aggregate fair value and related balance sheet classification of the Company's foreign currency and net investment hedge contracts are shown below (in millions, except for maturities): October 2, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 30.7 $ 49.7 Other long-term assets 0.7 13.0 Other current liabilities (7.7) (14.1) Other long-term liabilities (3.6) (0.8) 20.1 47.8 Notional amount $ 1,173.4 $ 1,353.3 Outstanding maturities in months, not to exceed 24 24 Fair value of derivatives designated as net investment hedges: Other long-term liabilities $ (8.7) $ (22.6) Notional amount $ 300.0 $ 300.0 Outstanding maturities in months, not to exceed 36 45 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 5.5 $ 5.8 Other current liabilities (5.4) (6.1) 0.1 (0.3) Notional amount $ 1,288.3 $ 1,140.8 Outstanding maturities in months, not to exceed 12 12 Total fair value $ 11.5 $ 24.9 Total notional amount $ 2,761.7 $ 2,794.1 |
Pretax Amounts Recognized in and Reclassified from Accumulated Other Comprehensive Loss and Net Gains (Losses) Expected to be Reclassified into Earnings | Pretax amounts related to foreign currency and net investment hedge contracts that were recognized in and reclassified from accumulated other comprehensive loss are shown below (in millions): Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, Gains (losses) recognized in accumulated other comprehensive loss: Foreign currency contracts $ (17.8) $ 21.1 $ 8.4 $ (60.3) Net investment hedge contracts 6.6 (13.9) 13.9 (3.5) (11.2) 7.2 22.3 (63.8) (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales (1.9) (0.2) (2.5) (0.7) Cost of sales (16.2) 3.5 (33.5) 10.0 Interest expense 0.6 0.6 1.8 1.8 Other (income) expense, net — 0.1 — (0.1) (17.5) 4.0 (34.2) 11.0 Comprehensive income (loss) $ (28.7) $ 11.2 $ (11.9) $ (52.8) During the next twelve month period, net gains (losses) expected to be reclassified into earnings are shown below (in millions): Foreign currency contracts $ 23.0 Interest rate swap contracts (2.4) Total $ 20.6 |
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 October 2, 2021 and December 31, 2020, are shown below (in millions): October 2, 2021 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 20.2 Market/ Income $ — $ 20.2 $ — Net investment hedges Recurring (8.7) Market/ Income — (8.7) — Marketable equity securities Recurring 57.8 Market 57.8 — — December 31, 2020 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 47.5 Market/ Income $ — $ 47.5 $ — Net investment hedges Recurring (22.6) Market/ Income — (22.6) — Marketable equity securities Recurring 58.7 Market 58.7 — — |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 78 | |
Impairment of long-lived assets to be disposed of | 1 | |
Impairment of right of use assets | 7.1 | $ 2 |
Expected restructuring costs | 37 | |
Employee Termination Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 60.1 | |
Fixed Asset Impairment Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 8.1 | |
Contract Termination Credits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.1 | |
Other Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 9.7 | |
Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 52.3 | |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 25.7 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Activities (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual as of beginning of period | $ 139 |
Charges | 78 |
Utilization cash | (76.1) |
Utilization, non-cash | (13.2) |
Accrual as of end of period | 127.7 |
Employee termination benefits | |
Restructuring Reserve [Roll Forward] | |
Accrual as of beginning of period | 134.8 |
Charges | 60.1 |
Utilization cash | (65.6) |
Utilization, non-cash | (5.1) |
Accrual as of end of period | 124.2 |
Asset impairment charges | |
Restructuring Reserve [Roll Forward] | |
Accrual as of beginning of period | 0 |
Charges | 8.1 |
Utilization cash | 0 |
Utilization, non-cash | (8.1) |
Accrual as of end of period | 0 |
Contract termination costs | |
Restructuring Reserve [Roll Forward] | |
Accrual as of beginning of period | 4.2 |
Charges | 0.1 |
Utilization cash | (0.8) |
Utilization, non-cash | 0 |
Accrual as of end of period | 3.5 |
Other related costs | |
Restructuring Reserve [Roll Forward] | |
Accrual as of beginning of period | 0 |
Charges | 9.7 |
Utilization cash | (9.7) |
Utilization, non-cash | 0 |
Accrual as of end of period | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 1,250.1 | $ 1,051.6 | |
Work-in-process | 124.7 | 109.8 | |
Finished goods | 545.5 | 396.9 | |
Reserves | (154.3) | (157.2) | |
Inventories | $ 1,766 | [1] | $ 1,401.1 |
[1] | Unaudited. |
Pre-Production Costs Related _3
Pre-Production Costs Related to Long-Term Supply Agreements - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pre-production E&D costs for which reimbursement is contractually guaranteed by the customer | $ 197.2 | $ 111.1 |
Pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer | 115.1 | 130.2 |
Cash collected related to E&D and tooling costs | $ 253.7 | $ 184.5 |
Pre-Production Costs Related _4
Pre-Production Costs Related to Long-Term Supply Agreements - Classification of Recoverable Customer E&D and Tooling Costs Related to Long-term Supply Agreements (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | ||
Recoverable customer E&D and tooling | $ 403.8 | $ 333.4 |
Current | ||
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | ||
Recoverable customer E&D and tooling | 276.2 | 212 |
Long-term | ||
Pre Production Costs Related to Long Term Supply Arrangements [Line Items] | ||
Recoverable customer E&D and tooling | $ 127.6 | $ 121.4 |
Long-Lived Assets - Property, P
Long-Lived Assets - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 110.1 | $ 114.1 | |
Buildings and improvements | 848.7 | 880.7 | |
Machinery and equipment | 4,445.6 | 4,339.2 | |
Construction in progress | 351.1 | 311.1 | |
Total property, plant and equipment | 5,755.5 | 5,645.1 | |
Less – accumulated depreciation | (3,059.2) | (2,908.9) | |
Property, plant and equipment, net | $ 2,696.3 | [1] | $ 2,736.2 |
[1] | Unaudited. |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | Sep. 06, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 124.6 | $ 120 | $ 374 | $ 347.7 | |
Asset impairment charges | 2 | 3.4 | |||
Amortization of intangible assets | $ 15.8 | $ 16.3 | 57.4 | 49.4 | |
Impairment loss | 1 | ||||
Affiliated Entity | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment loss | 1 | ||||
Shenyang Jinbei Lear Auto Parts Co., Ltd | |||||
Property, Plant and Equipment [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | ||||
Payments to acquire equity method investments | $ 41.3 | ||||
E-Systems | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | 8.5 | ||||
Restructuring Charges | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 1 | $ 12.5 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended | |
Oct. 02, 2021USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2021 | $ 1,655.8 | |
Foreign currency translation and other | 4.6 | |
Balance at October 2, 2021 | 1,660.4 | [1] |
Seating | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2021 | 1,268.8 | |
Foreign currency translation and other | (15.4) | |
Balance at October 2, 2021 | 1,253.4 | |
E-Systems | ||
Goodwill [Roll Forward] | ||
Balance at January 1, 2021 | 387 | |
Foreign currency translation and other | 20 | |
Balance at October 2, 2021 | $ 407 | |
[1] | Unaudited. |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, impairment | $ 0 | $ 0 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | |
Debt Instrument [Line Items] | ||||
Long-Term Debt | $ 2,307.6 | $ 2,321.7 | ||
Other | 1.3 | 1.4 | ||
Unamortized Debt Issuance Costs | (14.9) | (16.2) | ||
Unamortized Original Issue Premium (Discount) | 9.1 | 9 | ||
Debt and lease obligation | 2,301.8 | 2,314.5 | ||
Less — Current portion | (206) | [1] | (14.2) | |
Long-term debt | 2,095.8 | [1] | 2,300.3 | |
Unsecured Debt | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt | 206.3 | 220.3 | ||
Unamortized Debt Issuance Costs | (0.4) | (0.6) | ||
Unamortized Original Issue Premium (Discount) | 0 | 0 | ||
Long-Term Debt, Net | $ 205.9 | $ 219.7 | ||
Weighted Average Interest Rate | 1.33% | 1.36% | ||
Senior Notes | 3.8% Senior Notes due 2027 (the "2027 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt | $ 750 | $ 750 | ||
Unamortized Debt Issuance Costs | (3.6) | (4.1) | ||
Unamortized Original Issue Premium (Discount) | (3.1) | (3.5) | ||
Long-Term Debt, Net | $ 743.3 | $ 742.4 | ||
Weighted Average Interest Rate | 3.885% | 3.885% | ||
Stated interest rate | 3.80% | |||
Senior Notes | 4.25% Senior Notes due 2029 (the "2029 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt | $ 375 | $ 375 | ||
Unamortized Debt Issuance Costs | (2.4) | (2.6) | ||
Unamortized Original Issue Premium (Discount) | (0.9) | (1) | ||
Long-Term Debt, Net | $ 371.7 | $ 371.4 | ||
Weighted Average Interest Rate | 4.288% | 4.288% | ||
Stated interest rate | 4.25% | |||
Senior Notes | 3.5% Senior Notes due 2030 (the "2030 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt | $ 350 | $ 350 | ||
Unamortized Debt Issuance Costs | (2.4) | (2.6) | ||
Unamortized Original Issue Premium (Discount) | (0.7) | (0.7) | ||
Long-Term Debt, Net | $ 346.9 | $ 346.7 | ||
Weighted Average Interest Rate | 3.525% | 3.525% | ||
Stated interest rate | 3.50% | 3.50% | ||
Senior Notes | 5.25% Senior Notes due 2049 (the "2049 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt | $ 625 | $ 625 | ||
Unamortized Debt Issuance Costs | (6.1) | (6.3) | ||
Unamortized Original Issue Premium (Discount) | 13.8 | 14.2 | ||
Long-Term Debt, Net | $ 632.7 | $ 632.9 | ||
Weighted Average Interest Rate | 5.103% | 5.103% | ||
Stated interest rate | 5.25% | |||
[1] | Unaudited. |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Feb. 29, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Proceeds from offering | $ 0 | $ 669,100,000 | ||
Long-term debt, gross | 2,307,600,000 | $ 2,321,700,000 | ||
Loss on extinguishment of debt | 0 | 21,100,000 | ||
Payments of related issuance costs | $ 0 | 6,900,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Proceeds from offering | $ 669,100,000 | |||
Loss on extinguishment of debt | 21,100,000 | |||
Payments of related issuance costs | $ 5,900,000 | |||
Senior Notes | 2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 350,000,000 | |||
Stated coupon rate | 3.50% | 3.50% | ||
Redemption price | 99.774% | |||
Yield to maturity | 3.525% | |||
Long-term debt, gross | $ 350,000,000 | $ 350,000,000 | ||
Senior Notes | 2049 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 300,000,000 | |||
Stated coupon rate | 5.25% | |||
Redemption price | 106.626% | |||
Yield to maturity | 4.821% | |||
Senior Notes | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated coupon rate | 5.25% | |||
Redemption price | 102.625% | |||
Long-term debt, gross | $ 650,000,000 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Aug. 08, 2022 | Oct. 29, 2021 | Dec. 31, 2020 | Aug. 08, 2017 | |
Debt Instrument [Line Items] | |||||||||
Debt instrument extension term | 1 year | ||||||||
Payments of related issuance costs | $ 0 | $ 6,900,000 | |||||||
Term loan repayments | 14,100,000 | $ 9,400,000 | |||||||
Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments of related issuance costs | $ 1,000,000 | ||||||||
Credit Agreement | 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 | |||||||
Revolving credit facility repayments | $ 1,000,000,000 | ||||||||
Revolving credit facility borrowings | $ 1,000,000,000 | ||||||||
Credit Agreement | Revolving Credit Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||
Credit Agreement | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Facility fee | 0.125% | ||||||||
Credit Agreement | Revolving Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Facility fee | 0.30% | ||||||||
Credit Agreement | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||
Borrowings outstanding under revolving credit facility | $ 206,300,000 | $ 220,300,000 | |||||||
Credit Agreement | Term Loan Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 250,000,000 |
Debt - Credit Agreement Interes
Debt - Credit Agreement Interest Rate Ranges (Details) - Credit Agreement | 9 Months Ended |
Oct. 02, 2021 | |
Revolving Credit Facility | Eurocurrency Rate | |
Debt Instrument [Line Items] | |
Interest rate as of period end | 1.10% |
Revolving Credit Facility | Eurocurrency Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Revolving Credit Facility | Eurocurrency Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.60% |
Revolving Credit Facility | Base Rate | |
Debt Instrument [Line Items] | |
Interest rate as of period end | 0.10% |
Revolving Credit Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.00% |
Revolving Credit Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.60% |
Term Loan Facility | Eurocurrency Rate | |
Debt Instrument [Line Items] | |
Interest rate as of period end | 1.25% |
Term Loan Facility | Eurocurrency Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.125% |
Term Loan Facility | Eurocurrency Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.90% |
Term Loan Facility | Base Rate | |
Debt Instrument [Line Items] | |
Interest rate as of period end | 0.25% |
Term Loan Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.125% |
Term Loan Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.90% |
Leases - Right-of-Use Assets an
Leases - Right-of-Use Assets and Lease Obligations (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Right-of-use assets under operating leases: | ||
Other long-term assets | $ 614.3 | $ 540.3 |
Lease obligations under operating leases: | ||
Accrued liabilities | 127.4 | 116.3 |
Other long-term liabilities | 508.4 | 438.9 |
Lease obligations under operating leases | $ 635.8 | $ 555.2 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other | Other |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other | Other |
Leases - Maturity of Lease Obli
Leases - Maturity of Lease Obligations (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 40.7 | |
2022 | 137.5 | |
2023 | 109.8 | |
2024 | 92.7 | |
2025 | 78.8 | |
Thereafter | 253.3 | |
Total undiscounted cash flows | 712.8 | |
Less: Imputed interest | (77) | |
Lease obligations under operating leases | $ 635.8 | $ 555.2 |
Leases - Cash Flow Information
Leases - Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Non-cash activity: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 200 | $ 116.2 |
Operating cash flows: | ||
Cash paid related to operating lease obligations | $ 121.7 | $ 106.3 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 40.7 | $ 38.6 | $ 119.6 | $ 110.2 |
Short-term lease expense | 5 | 3.3 | 13.6 | 11.3 |
Variable lease expense | 1.7 | 2.2 | 6.1 | 5.9 |
Total lease expense | $ 47.4 | $ 44.1 | $ 139.3 | $ 127.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Leases [Abstract] | ||
Impairment of right of use assets | $ 7.1 | $ 2 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Discount Rate (Details) | Oct. 02, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term | 7 years |
Weighted average discount rate | 3.20% |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit (Credit) Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Settlement loss | $ 10.2 | $ 10.2 | ||
Pension | U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | 0.1 | $ 0 | 0.1 |
Interest cost | 3.7 | 4.1 | 10.9 | 12.3 |
Expected return on plan assets | (5.9) | (5.4) | (17.7) | (16) |
Amortization of actuarial gain (loss) | 1 | 0.6 | 2.9 | 1.7 |
Settlement loss | 0 | 0 | 0.4 | 0.3 |
Net periodic benefit cost | (1.2) | (0.6) | (3.5) | (1.6) |
Pension | Foreign | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1.2 | 1.2 | 3.9 | 3.6 |
Interest cost | 2.6 | 3.1 | 7.9 | 9.2 |
Expected return on plan assets | (4.9) | (4.9) | (14.7) | (14.8) |
Amortization of actuarial gain (loss) | 1.5 | 1.2 | 4.6 | 3.5 |
Settlement loss | 0 | 10.2 | 0 | 10.2 |
Net periodic benefit cost | 0.4 | 10.8 | 1.7 | 11.7 |
Other Postretirement | U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 0.3 | 0.5 | 1 | 1.3 |
Amortization of actuarial gain (loss) | (0.2) | (0.4) | (0.8) | (1.2) |
Amortization of prior service credit | 0 | 0 | (0.1) | (0.1) |
Net periodic benefit cost | 0.1 | 0.1 | 0.1 | 0 |
Other Postretirement | Foreign | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 0.1 | 0.2 | 0.5 | 0.6 |
Amortization of actuarial gain (loss) | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.1 | $ 0.2 | $ 0.5 | $ 0.6 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Narrative (Details) - Pension $ in Millions | 9 Months Ended |
Oct. 02, 2021USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer's contribution towards defined benefit plan | $ 6.4 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated employer's contribution towards defined benefit plan in current year | 5 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated employer's contribution towards defined benefit plan in current year | $ 10 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Percentage of net sales to prior years revenue | 1.00% | 1.00% | |
Significant contract liabilities recorded | $ 0 | $ 0 | |
Significant contract liabilities recognized in revenue | $ 0 | $ 0 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue by Reportable Operating Segment and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | $ 4,268.2 | $ 4,900.1 | $ 14,383.3 | $ 11,802.3 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 1,789.3 | 2,039.7 | 5,657.5 | 4,660.8 |
Europe and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 1,333.4 | 1,705.1 | 5,137.4 | 4,281.3 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 962 | 1,004.4 | 3,044.7 | 2,521.6 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 183.5 | 150.9 | 543.7 | 338.6 |
Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 3,166.2 | 3,691.6 | 10,770.4 | 8,813.1 |
Seating | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 1,457 | 1,706.2 | 4,698.3 | 3,894.7 |
Seating | Europe and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 945.1 | 1,214 | 3,645.8 | 3,000.1 |
Seating | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 622 | 661.1 | 2,003.4 | 1,676.4 |
Seating | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 142.1 | 110.3 | 422.9 | 241.9 |
E-Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 1,102 | 1,208.5 | 3,612.9 | 2,989.2 |
E-Systems | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 332.3 | 333.5 | 959.2 | 766.1 |
E-Systems | Europe and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 388.3 | 491.1 | 1,491.6 | 1,281.2 |
E-Systems | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 340 | 343.3 | 1,041.3 | 845.2 |
E-Systems | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | $ 41.4 | $ 40.6 | $ 120.8 | $ 96.7 |
Other (Income) Expense, Net - S
Other (Income) Expense, Net - Summary of Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Other Income and Expenses [Abstract] | ||||
Other expense | $ 12.5 | $ 20.3 | $ 26.5 | $ 61.2 |
Other income | (1.4) | (3.2) | (55.2) | (6.8) |
Other (income) expense, net | $ 11.1 | $ 17.1 | $ (28.7) | $ 54.4 |
Other (Income) Expense, Net - N
Other (Income) Expense, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Other Income and Expenses [Abstract] | ||||
Indirect tax credit | $ 46 | |||
Foreign currency transaction loss | $ 6.9 | $ 5.5 | 13.6 | $ 22.2 |
Impairment loss | 1 | |||
Settlement loss | $ 10.2 | 10.2 | ||
Loss on extinguishment of debt | $ 0 | $ 21.1 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 20.9 | $ 44.6 | $ 119.1 | $ 30.1 |
Pretax income before equity in net (income) loss of affiliates | $ 13.9 | $ 235.2 | $ 522 | $ 25.4 |
Effective tax rate | 150.40% | 19.00% | 22.80% | 118.50% |
Income Taxes - Tax Benefits (Ex
Income Taxes - Tax Benefits (Expense) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | ||
Restructuring charges and various other items | $ 25.5 | $ 20.7 |
Valuation allowances on deferred tax assets | (13.4) | (12.2) |
Release of tax reserves | 1.3 | 0 |
Favorable indirect tax ruling in a foreign jurisdiction | (9.2) | 0 |
Research and development tax credits | 0 | 5 |
Income tax benefits (expense) related to significant discrete items | $ 4.2 | $ 13.5 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Lear (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) available to Lear | $ (26.5) | $ 174.4 | $ 352.4 | $ (43.1) |
Average common shares outstanding (in shares) | 59,906,531 | 60,159,356 | 60,171,402 | 60,260,886 |
Dilutive effect of common stock equivalents (in shares) | 0 | 171,585 | 291,999 | 0 |
Average diluted shares outstanding (in shares) | 59,906,531 | 60,330,941 | 60,463,401 | 60,260,886 |
Basic net income (loss) per share available to Lear common stockholders (in dollars per share) | $ (0.44) | $ 2.90 | $ 5.86 | $ (0.72) |
Diluted net income (loss) per share available to Lear common stockholders (in dollars per share) | $ (0.44) | $ 2.89 | $ 5.83 | $ (0.72) |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Equity - Summary of Changes, Net of Tax, in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | $ 4,892.1 | $ 3,983.2 | $ 4,614.9 | $ 4,501.1 | ||
Balance at end of period | 4,757.5 | [1] | 4,276.1 | 4,757.5 | [1] | 4,276.1 |
Defined benefit plans: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | (276.3) | (211.7) | (276.9) | (217.6) | ||
Reclassification adjustments | 2 | 11 | 6 | 13.1 | ||
Other comprehensive income (loss) recognized during the period | 2.5 | (29.7) | (0.9) | (25.9) | ||
Balance at end of period | (271.8) | (230.4) | (271.8) | (230.4) | ||
Reclassification adjustments, tax expense (benefit) | 0.3 | 0.6 | 1 | 1.3 | ||
Other comprehensive income (loss) recognized during the period, tax (expense) benefit | 0 | 5.4 | 0 | 5.4 | ||
Derivative instruments and hedging: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 20.2 | (50.4) | 12.6 | 9.8 | ||
Reclassification adjustments | (13.9) | 3.9 | (27.3) | 9.2 | ||
Other comprehensive income (loss) recognized during the period | (14.3) | 14.8 | 6.7 | (50.7) | ||
Balance at end of period | (8) | (31.7) | (8) | (31.7) | ||
Reclassification adjustments, tax expense (benefit) | (3.6) | 0.1 | (6.9) | 1.8 | ||
Other comprehensive income (loss) recognized during the period, tax (expense) benefit | 3.5 | (6.3) | (1.7) | 9.6 | ||
Foreign currency translation: | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | (471.7) | (660.9) | (440.8) | (564.9) | ||
Other comprehensive income (loss) recognized during the period | (51.1) | 83.3 | (82) | (12.7) | ||
Balance at end of period | (522.8) | (577.6) | (522.8) | (577.6) | ||
Other comprehensive income (loss) recognized during the period, tax (expense) benefit | (1.4) | 2.9 | (2.9) | 0.7 | ||
Accumulated Other Comprehensive Loss, Net of Tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | (727.8) | (923) | (705.1) | (772.7) | ||
Balance at end of period | $ (802.6) | $ (839.7) | $ (802.6) | $ (839.7) | ||
[1] | Unaudited. |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Equity - Narrative (Details) - USD ($) | Sep. 06, 2021 | Mar. 31, 2020 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2020 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Apr. 02, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Foreign currency translation adjustments related to intercompany transactions gains (losses) | $ 200,000 | $ 500,000 | $ (400,000) | $ (500,000) | |||||||
Aggregate purchases authorized under common stock share repurchase program | $ 6,100,000,000 | ||||||||||
Aggregate repurchases | $ 69,100,000 | $ 100,300,000 | $ 70,000,000 | $ 4,800,000,000 | |||||||
Average price (in dollars per share) | $ 164.56 | $ 170.03 | $ 109.22 | $ 90.97 | |||||||
Cash dividends declared per share (in dollars per share) | $ 0.77 | $ 0.50 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0 | $ 1 | $ 0.77 | |||
Shenyang Lear Automotive Seating and Interior Systems Co., Ltd | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Sale of stock percentage of ownership | 49.00% | ||||||||||
Proceeds from sale of equity method investments | $ 36,200,000 | ||||||||||
Equity method investment | $ 7,600,000 |
Comprehensive Income (Loss) a_5
Comprehensive Income (Loss) and Equity - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 129 Months Ended | |
Oct. 02, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | |
Equity [Abstract] | ||||
Aggregate Repurchases | $ 69.1 | $ 100.3 | $ 70 | $ 4,800 |
Cash Paid for Repurchases | $ 99.3 | $ 70 | ||
Number of Shares (in shares) | 419,903 | 589,717 | 641,149 | |
Average Price per Share (in dollars per share) | $ 164.56 | $ 170.03 | $ 109.22 | $ 90.97 |
Remaining Purchase Authorization | $ 1,329.7 | $ 1,329.7 | $ 1,329.7 |
Comprehensive Income (Loss) a_6
Comprehensive Income (Loss) and Equity - Dividends Declared and Paid (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 02, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | |
Equity [Abstract] | |||
Dividends declared | $ 30.5 | $ 61.1 | $ 46.8 |
Dividends paid | $ 60.7 | $ 52 |
Legal and Other Contingencies -
Legal and Other Contingencies - Narrative (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Reserves for pending legal disputes, including commercial disputes and other matters | $ 17.5 | $ 17.2 |
Environmental reserves | $ 8.4 | $ 8.9 |
Legal and Other Contingencies_2
Legal and Other Contingencies - Summary of Product Liability and Warranty Claims (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2021USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at January 1, 2021 | $ 48.7 |
Expense, net (including changes in estimates) | 6.3 |
Settlements | (10.3) |
Foreign currency translation and other | (1.1) |
Balance at October 2, 2021 | $ 43.6 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021USD ($) | Oct. 03, 2020USD ($) | Oct. 02, 2021USD ($)segment | Oct. 03, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Reportable operating segments | segment | 2 | |||
Restructuring charges | $ 78 | |||
Seating | ||||
Segment Reporting Information [Line Items] | ||||
Additional restructuring costs expected to occur | $ 18 | 18 | ||
E-Systems | ||||
Segment Reporting Information [Line Items] | ||||
Additional restructuring costs expected to occur | 19 | 19 | ||
Operating segments | Seating | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 15.2 | $ 33.6 | 35.2 | $ 59.3 |
Operating segments | E-Systems | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 28.9 | 5 | 37.3 | 46.2 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 1.3 | $ 0.3 | $ 5.5 | $ 0.9 |
Segment Reporting - Summary of
Segment Reporting - Summary of Revenues from External Customers and Other Financial Information by Reportable Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Dec. 31, 2020 | |||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | $ 4,268.2 | $ 4,900.1 | $ 14,383.3 | $ 11,802.3 | |||
Segment earnings | 47.6 | 278.8 | 560.5 | 157.9 | |||
Depreciation and amortization | 140.4 | 136.3 | 431.4 | 397.1 | |||
Capital expenditures | 152.6 | 90.1 | 405.5 | 285.3 | |||
Total assets | 13,046 | [1] | 12,894.7 | 13,046 | [1] | 12,894.7 | $ 13,198.6 |
Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | 0 | 0 | 0 | 0 | |||
Segment earnings | (71.6) | (57.9) | (218.8) | (167.5) | |||
Depreciation and amortization | 3.9 | 3.7 | 11.5 | 11.5 | |||
Capital expenditures | 8.5 | 1.1 | 19.9 | 4.3 | |||
Total assets | 2,043.3 | 2,088.1 | 2,043.3 | 2,088.1 | |||
Seating | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | 3,166.2 | 3,691.6 | 10,770.4 | 8,813.1 | |||
Seating | Operating segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | 3,166.2 | 3,691.6 | 10,770.4 | 8,813.1 | |||
Segment earnings | 126.7 | 250.7 | 670.9 | 320.4 | |||
Depreciation and amortization | 90.3 | 87.8 | 270.8 | 255.1 | |||
Capital expenditures | 85.2 | 48.8 | 231.7 | 162 | |||
Total assets | 7,405.4 | 7,574.2 | 7,405.4 | 7,574.2 | |||
E-Systems | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | 1,102 | 1,208.5 | 3,612.9 | 2,989.2 | |||
E-Systems | Operating segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from external customers | 1,102 | 1,208.5 | 3,612.9 | 2,989.2 | |||
Segment earnings | (7.5) | 86 | 108.4 | 5 | |||
Depreciation and amortization | 46.2 | 44.8 | 149.1 | 130.5 | |||
Capital expenditures | 58.9 | 40.2 | 153.9 | 119 | |||
Total assets | $ 3,597.3 | $ 3,232.4 | $ 3,597.3 | $ 3,232.4 | |||
[1] | Unaudited. |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Segment Reporting [Abstract] | ||||
Segment earnings | $ 47.6 | $ 278.8 | $ 560.5 | $ 157.9 |
Interest expense | 22.6 | 26.5 | 67.2 | 78.1 |
Other (income) expense, net | 11.1 | 17.1 | (28.7) | 54.4 |
Consolidated income before provision for income taxes and equity in net (income) loss of affiliates | $ 13.9 | $ 235.2 | $ 522 | $ 25.4 |
Financial Instruments - Estimat
Financial Instruments - Estimated Aggregate Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Estimated aggregate fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 2,612 | $ 2,633.3 |
Aggregate carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 2,306.3 | $ 2,320.3 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 | Oct. 03, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||||
Cash and cash equivalents | $ 1,099.1 | [1] | $ 1,306.7 | $ 1,250.4 | |
Restricted cash included in other current assets | 1.4 | 5.1 | |||
Restricted cash included in other long-term assets | 1.6 | 2.7 | |||
Cash, cash equivalents and restricted cash | $ 1,102.1 | $ 1,314.5 | $ 1,258.2 | $ 1,510.4 | |
[1] | Unaudited. |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2021USD ($) | Jul. 03, 2021segment | Apr. 03, 2021segment | Oct. 03, 2020USD ($) | Oct. 02, 2021USD ($) | Oct. 03, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||||
Accounts receivable, reserves | $ 33,300,000 | $ 33,300,000 | $ 35,300,000 | ||||
Investments in equity securities without readily determinable fair values | 15,400,000 | 15,400,000 | 11,200,000 | ||||
Cumulative impairment | 10,000,000 | 10,000,000 | |||||
Impairment loss | 1,000,000 | ||||||
Interest expense | 22,600,000 | $ 26,500,000 | 67,200,000 | $ 78,100,000 | |||
Derivative contracts classified within Level 3 of fair value hierarchy | 0 | 0 | 0 | ||||
Derivative contracts transfers in to Level 3 fair value hierarchy | 0 | ||||||
Number of reporting units assessed for goodwill impairment | segment | 1 | 1 | |||||
Foreign currency contracts | Derivative Instruments and Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Pretax gains (losses) related to derivative instruments and hedging activities in accumulated other comprehensive loss | $ (7,200,000) | (7,200,000) | $ 4,700,000 | ||||
Net investment hedges | Interest Rate Swap | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Interest expense | $ 4,900,000 | $ 4,900,000 |
Financial Instruments - Marketa
Financial Instruments - Marketable Equity Securities (Details) - Marketable Equity Securities - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Current assets | $ 2.7 | $ 9.3 |
Other long-term assets | 55.1 | 49.4 |
Marketable equity securities | $ 57.8 | $ 58.7 |
Financial Instruments - Notiona
Financial Instruments - Notional Amount, Estimated Aggregate Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 02, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||
Total fair value | $ 11.5 | $ 24.9 |
Notional amount | 2,761.7 | 2,794.1 |
Designated as Hedging Instrument | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Other long-term liabilities | (8.7) | (22.6) |
Notional amount | $ 300 | $ 300 |
Designated as Hedging Instrument | Net investment hedges | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding maturities in months, not to exceed | 36 months | 45 months |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedge | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets | $ 30.7 | $ 49.7 |
Other long-term assets | 0.7 | 13 |
Other current liabilities | (7.7) | (14.1) |
Other long-term liabilities | (3.6) | (0.8) |
Total fair value | 20.1 | 47.8 |
Notional amount | $ 1,173.4 | $ 1,353.3 |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedge | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding maturities in months, not to exceed | 24 months | 24 months |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets | $ 5.5 | $ 5.8 |
Other current liabilities | (5.4) | (6.1) |
Total fair value | 0.1 | (0.3) |
Notional amount | $ 1,288.3 | $ 1,140.8 |
Foreign currency contracts | Not Designated as Hedging Instrument | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding maturities in months, not to exceed | 12 months | 12 months |
Financial Instruments - Pretax
Financial Instruments - Pretax Amounts Recognized in and Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Derivative [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | $ (11.2) | $ 7.2 | $ 22.3 | $ (63.8) |
(Gains) losses reclassified from accumulated other comprehensive loss | (17.5) | 4 | (34.2) | 11 |
Comprehensive income (loss) | (28.7) | 11.2 | (11.9) | (52.8) |
Net sales | ||||
Derivative [Line Items] | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | (1.9) | (0.2) | (2.5) | (0.7) |
Cost of sales | ||||
Derivative [Line Items] | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | (16.2) | 3.5 | (33.5) | 10 |
Interest expense | ||||
Derivative [Line Items] | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | 0.6 | 0.6 | 1.8 | 1.8 |
Other (income) expense, net | ||||
Derivative [Line Items] | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | 0 | 0.1 | 0 | (0.1) |
Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | (17.8) | 21.1 | 8.4 | (60.3) |
Net investment hedge contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | $ 6.6 | $ (13.9) | $ 13.9 | $ (3.5) |
Financial Instruments - Net Gai
Financial Instruments - Net Gains (Losses) Expected to be Reclassified into Earnings (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2021USD ($) | |
Fair Value Disclosures [Abstract] | |
Foreign currency contracts | $ 23 |
Interest rate swap contracts | (2.4) |
Total | $ 20.6 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements and Related Valuation Techniques and Fair Value Hierarchy Level (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | $ 11.5 | $ 24.9 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable equity securities | 57.8 | 58.7 |
Recurring | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable equity securities | 57.8 | 58.7 |
Recurring | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable equity securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable equity securities | 0 | 0 |
Recurring | Foreign currency contracts, net | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | 20.2 | 47.5 |
Recurring | Foreign currency contracts, net | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | 0 | 0 |
Recurring | Foreign currency contracts, net | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | 20.2 | 47.5 |
Recurring | Foreign currency contracts, net | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | 0 | 0 |
Recurring | Net investment hedges | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | (8.7) | (22.6) |
Recurring | Net investment hedges | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | 0 | 0 |
Recurring | Net investment hedges | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | (8.7) | (22.6) |
Recurring | Net investment hedges | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset (Liability) | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) € in Millions | Oct. 28, 2021EUR (€) |
Subsequent Event | Kongsberg Automotive's Interior Comfort Division | |
Subsequent Event [Line Items] | |
Business combination, consideration transferred | € 175 |
Uncategorized Items - lear-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |