Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.01 | |
Trading Symbol | LEA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,259,871 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Entity Central Index Key | 0000842162 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | [1] | Dec. 31, 2022 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 979.7 | $ 1,114.9 | |
Accounts receivable | 4,041.2 | 3,451.9 | |
Inventories | 1,788.3 | 1,573.6 | |
Other | 928.5 | 853.7 | |
Total current assets | 7,737.7 | 6,994.1 | |
LONG-TERM ASSETS: | |||
Property, plant and equipment, net | 2,886 | 2,854 | |
Goodwill | 1,714.1 | 1,660.6 | |
Other | 2,275.9 | 2,254.3 | |
Total long-term assets | 6,876 | 6,768.9 | |
Total assets | 14,613.7 | 13,763 | |
CURRENT LIABILITIES: | |||
Short-term borrowings | 26.7 | 9.9 | |
Accounts payable and drafts | 3,556.5 | 3,206.1 | |
Accrued liabilities | 2,117.9 | 1,961.5 | |
Current portion of long-term debt | 0.3 | 10.8 | |
Total current liabilities | 5,701.4 | 5,188.3 | |
LONG-TERM LIABILITIES: | |||
Long-term debt | 2,742.1 | 2,591.2 | |
Other | 1,186.9 | 1,153.2 | |
Total long-term liabilities | 3,929 | 3,744.4 | |
EQUITY: | |||
Preferred stock, 100,000,000 shares authorized (including 10,896,250 Series A convertible preferred stock authorized); no shares outstanding | 0 | 0 | |
Common stock, $0.01 par value, 300,000,000 shares authorized; 64,571,405 shares issued as of September 30, 2023 and December 31, 2022 | 0.6 | 0.6 | |
Additional paid-in capital | 1,037.2 | 1,023.1 | |
Common stock held in treasury, 6,315,867 and 5,493,211 shares as of September 30, 2023 and December 31, 2022, respectively, at cost | (869.8) | (753.9) | |
Retained earnings | 5,519.3 | 5,214.1 | |
Accumulated other comprehensive loss | (828.5) | (805.1) | |
Lear Corporation stockholders' equity | 4,858.8 | 4,678.8 | |
Noncontrolling interests | 124.5 | 151.5 | |
Equity | 4,983.3 | 4,830.3 | |
Total liabilities and equity | $ 14,613.7 | $ 13,763 | |
[1]Unaudited |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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 (in shares) | 6,315,867 | 5,493,211 |
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 | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,781 | $ 5,241.2 | $ 17,625.7 | $ 15,520.6 |
Cost of sales | 5,362.8 | 4,864.3 | 16,320.5 | 14,482.3 |
Selling, general and administrative expenses | 182.5 | 163.9 | 542.1 | 512.4 |
Amortization of intangible assets | 15.5 | 15.2 | 47.4 | 55.5 |
Interest expense | 25.7 | 24.8 | 76.1 | 74.6 |
Other expense, net | 5.8 | 18.1 | 39 | 59.8 |
Consolidated income before provision for income taxes and equity in net income of affiliates | 188.7 | 154.9 | 600.6 | 336 |
Provision for income taxes | 47 | 41.7 | 134.1 | 85.6 |
Equity in net income of affiliates | (10.4) | (6) | (36.2) | (21) |
Consolidated net income | 152.1 | 119.2 | 502.7 | 271.4 |
Less: Net income attributable to noncontrolling interests | 19.2 | 26.9 | 57.5 | 61.2 |
Net income attributable to Lear | $ 132.9 | $ 92.3 | $ 445.2 | $ 210.2 |
Basic net income per share attributable to Lear (in dollars per share) | $ 2.26 | $ 1.55 | $ 7.54 | $ 3.52 |
Diluted net income per share attributable to Lear (in dollars per share) | 2.25 | 1.54 | 7.50 | 3.50 |
Cash dividends declared per share (in dollars per share) | $ 0.77 | $ 0.77 | $ 2.31 | $ 2.31 |
Average common shares outstanding (in shares) | 58,766,586 | 59,551,765 | 59,072,189 | 59,794,788 |
Average diluted shares outstanding (in shares) | 59,075,638 | 59,785,860 | 59,333,590 | 60,031,484 |
Consolidated comprehensive income (loss) (Condensed Consolidated Statements of Equity) | $ 4.6 | $ (57.2) | $ 472.8 | $ (96) |
Less: Comprehensive income attributable to noncontrolling interests | 18.5 | 19.3 | 51 | 46.6 |
Comprehensive income (loss) attributable to Lear | $ (13.9) | $ (76.5) | $ 421.8 | $ (142.6) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Lear Corporation Stockholders' Equity | Common Stock | Additional Paid-In Capital | Common Stock Held in Treasury | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Non-controlling Interests | |
Balance at beginning of period at Dec. 31, 2021 | $ 4,808.4 | $ 4,643.4 | $ 0.6 | $ 1,019.4 | $ (679.2) | $ 5,072.8 | $ (770.2) | $ 165 | |
Comprehensive income (loss): | |||||||||
Net income | 271.4 | 210.2 | 210.2 | 61.2 | |||||
Other comprehensive loss | (367.4) | (352.8) | (352.8) | (14.6) | |||||
Total comprehensive income (loss) | (96) | (142.6) | 210.2 | (352.8) | 46.6 | ||||
Stock-based compensation | 38.1 | 38.1 | 38.1 | ||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (20.6) | (20.6) | (42.7) | 22.3 | (0.2) | ||||
Repurchase of shares of common stock | (75.2) | (75.2) | (75.2) | ||||||
Dividends declared to Lear Corporation stockholders | (139.8) | (139.8) | (139.8) | ||||||
Dividends declared to noncontrolling interest holders | (87.6) | (87.6) | |||||||
Change in noncontrolling interests | 0.6 | 0.6 | |||||||
Balance at end of period at Oct. 01, 2022 | 4,427.9 | 4,303.3 | 0.6 | 1,014.8 | (732.1) | 5,143 | (1,123) | 124.6 | |
Balance at beginning of period at Jul. 02, 2022 | 4,547.9 | 4,440.6 | 0.6 | 1,008 | (710.9) | 5,097.1 | (954.2) | 107.3 | |
Comprehensive income (loss): | |||||||||
Net income | 119.2 | 92.3 | 92.3 | 26.9 | |||||
Other comprehensive loss | (176.4) | (168.8) | (168.8) | (7.6) | |||||
Total comprehensive income (loss) | (57.2) | (76.5) | 92.3 | (168.8) | 19.3 | ||||
Stock-based compensation | 12.8 | 12.8 | 12.8 | ||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (2.2) | (2.2) | (6) | 3.8 | |||||
Repurchase of shares of common stock | (25) | (25) | (25) | ||||||
Dividends declared to Lear Corporation stockholders | (46.4) | (46.4) | (46.4) | ||||||
Dividends declared to noncontrolling interest holders | (2) | (2) | |||||||
Balance at end of period at Oct. 01, 2022 | 4,427.9 | 4,303.3 | 0.6 | 1,014.8 | (732.1) | 5,143 | (1,123) | 124.6 | |
Balance at beginning of period at Dec. 31, 2022 | 4,830.3 | 4,678.8 | 0.6 | 1,023.1 | (753.9) | 5,214.1 | (805.1) | 151.5 | |
Comprehensive income (loss): | |||||||||
Net income | 502.7 | 445.2 | 445.2 | 57.5 | |||||
Other comprehensive loss | (29.9) | (23.4) | (23.4) | (6.5) | |||||
Total comprehensive income (loss) | 472.8 | 421.8 | 445.2 | (23.4) | 51 | ||||
Stock-based compensation | 51.2 | 51.2 | 51.2 | ||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (14.8) | (14.8) | (37.1) | 23.3 | (1) | ||||
Repurchase of shares of common stock | (139.2) | (139.2) | (139.2) | ||||||
Dividends declared to Lear Corporation stockholders | (139) | (139) | (139) | ||||||
Dividends declared to noncontrolling interest holders | (78) | 0 | (78) | ||||||
Balance at end of period at Sep. 30, 2023 | 4,983.3 | [1] | 4,858.8 | 0.6 | 1,037.2 | (869.8) | 5,519.3 | (828.5) | 124.5 |
Balance at beginning of period at Jul. 01, 2023 | 5,091.3 | 4,980.5 | 0.6 | 1,027.1 | (797.8) | 5,432.3 | (681.7) | 110.8 | |
Comprehensive income (loss): | |||||||||
Net income | 152.1 | 132.9 | 132.9 | 19.2 | |||||
Other comprehensive loss | (147.5) | (146.8) | (146.8) | (0.7) | |||||
Total comprehensive income (loss) | 4.6 | (13.9) | 132.9 | (146.8) | 18.5 | ||||
Stock-based compensation | 16.1 | 16.1 | 16.1 | ||||||
Net issuance of shares held in treasury in settlement of stock-based compensation | (2.2) | (2.2) | (6) | 3.7 | 0.1 | ||||
Repurchase of shares of common stock | (75.7) | (75.7) | (75.7) | ||||||
Dividends declared to Lear Corporation stockholders | (46) | (46) | (46) | ||||||
Dividends declared to noncontrolling interest holders | (4.8) | (4.8) | |||||||
Balance at end of period at Sep. 30, 2023 | $ 4,983.3 | [1] | $ 4,858.8 | $ 0.6 | $ 1,037.2 | $ (869.8) | $ 5,519.3 | $ (828.5) | $ 124.5 |
[1]Unaudited |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net issuances of shares held in treasury in settlement of stock-based compensation (in shares) | 27,590 | 27,990 | 168,428 | 190,862 |
Number of shares repurchased (in shares) | 521,552 | 187,192 | 991,084 | 567,412 |
Average price per share (in dollars per share) | $ 143.57 | $ 133.65 | $ 139.22 | $ 132.49 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Cash Flows from Operating Activities: | ||
Consolidated net income | $ 502.7 | $ 271.4 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 450.3 | 434.3 |
Net change in recoverable customer engineering, development and tooling | (65.3) | (84.1) |
Net change in working capital items | (254) | (214.9) |
Other, net | 45.9 | 77.5 |
Net cash provided by operating activities | 679.6 | 484.2 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (433.3) | (442.9) |
Acquisitions, net of cash acquired | (174.5) | (184.2) |
Other, net | 4.7 | 10.4 |
Net cash used in investing activities | (603.1) | (616.7) |
Cash Flows from Financing Activities: | ||
Short-term borrowings, net | 17.6 | 7.6 |
Term loan borrowings | 150 | 0 |
Repurchases of common stock | (138) | (75.2) |
Dividends paid to Lear Corporation stockholders | (137.3) | (139.4) |
Dividends paid to noncontrolling interests | (73.8) | (84.6) |
Other, net | (26.3) | (21.6) |
Net cash used in financing activities | (207.8) | (313.2) |
Effect of foreign currency translation | (2.9) | (31.3) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (134.2) | (477) |
Cash, Cash Equivalents and Restricted Cash as of Beginning of Period | 1,117.4 | 1,321.3 |
Cash, Cash Equivalents and Restricted Cash as of End of Period | 983.2 | 844.3 |
Changes in Working Capital Items: | ||
Accounts receivable | (614.7) | (796.7) |
Inventories | (185.4) | (111.7) |
Accounts payable (including $15.4 million of cash paid in 2023 in conjunction with the acquisition of IGB to settle pre-existing accounts payable) | 370.9 | 570.9 |
Accrued liabilities and other | 175.2 | 122.6 |
Net change in working capital items | (254) | (214.9) |
Supplementary Disclosure: | ||
Cash paid for interest | 78.5 | 64.8 |
Cash paid for income taxes, net of refunds received | $ 165.8 | $ 156.6 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Decrease in accounts payable | $ (370.9) |
I.G. Bauerhin | |
Decrease in accounts payable | $ 15.4 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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 |
Sep. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Current Operating Environment | Current Operating Environment Since 2020, the automotive industry has experienced a decline in global production volumes. Alth ough industry production has recovered modestly and is expected to return to 2019 pre-pandemic levels in 2023, industry production remains below 2017 peak levels. Further, the global economy, as well as the automotive industry, have been influenced directly and indirectly by macroeconomic events resulting in unfavorable conditions, including shortages of semiconductor chips and other components, elevated inflation levels, higher interest rates, and labor and energy shortages in certain markets. Beginning in the third quarter of 2023 and continuing into the fourth quarter, the automotive industry has also been impacted by labor strikes and related disruptions at certain of the Company's customers' facilities in the United States. These factors, amongst others, continue to impact consumer demand as well as the ability of automotive manufactures to produce vehicles to meet demand. The accompanying condensed consolidated financial statements reflect estimates and assumptions made by management as of September 30, 2023, and for the nine months then ended. Such estimates and assumptions affect, among other things, the Company's goodwill; long-lived 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 September 30, 2023, will be reflected in management's estimates and assumptions in future periods. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions I.G. Bauerhin On April 26, 2023, the Company completed the acquisition of I.G. Bauerhin ("IGB"), a privately held supplier of automotive seat heating, ventilation, active cooling, steering wheel heating, seat sensors and electronic control modules, headquartered in Grundau-Rothenbergen, Germany. IGB has more than 4,600 employees at nine manufacturing plants in seven countries. The acquisition of IGB furthers the Company's comprehensive strategy to develop and integrate a complete portfolio of thermal comfort systems for automotive seating. The acquisition of IGB was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated balance sheet as of September 30, 2023. The operating results and cash flows of IGB are included in the accompanying condensed consolidated financial statements from the date of acquisition in the Company's Seating segment. The preliminary purchase price and related allocation are shown below (in millions): July 1, Adjustments September 30, Preliminary purchase price, net of acquired cash $ 174.5 $ — $ 174.5 Property, plant and equipment 49.7 (1.3) 48.4 Other assets purchased and liabilities assumed, net 37.9 (2.2) 35.7 Goodwill 69.9 5.1 75.0 Intangible assets 17.0 (1.6) 15.4 Preliminary purchase price allocation $ 174.5 $ — $ 174.5 Goodwill recognized is primarily attributable to the assembled workforce and expected synergies related to future growth. Intangible assets consist of amounts recognized for the fair value of developed technology and customer-based assets which were both based on an independent appraisal. Developed technology assets have a weighted average useful life of approximately nine years. Customer-based assets include IGB's established relationships with its customers and the ability of these customers to generate future economic profits for the Company and have a weighted average useful life of approximately thirteen years. The purchase price and related allocation are preliminary and may be revised as a result of further adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, certain tax attributes and contingent liabilities, and revisions of provisional estimates of fair values resulting from the completion of independent appraisals and valuations of property, plant and equipment and intangible assets. The Company incurred transaction costs of $0.6 million and $1.2 million in the first nine months of 2023 and 2022, respectively. These costs were expensed as incurred and are recorded in selling, general and administrative expenses. The pro-forma effects of this acquisition do not materially impact the Company's reported results for any period presented. For further information related to acquired assets measured at fair value, see Note 19, "Financial Instruments." Kongsberg ICS On February 28, 2022, the Company completed the acquisition of substantially all of Kongsberg Automotive's Interior Comfort Systems business unit ("Kongsberg ICS"). The acquisition of Kongsberg ICS was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated balance sheets. The operating results and cash flows of Kongsberg ICS are included in the condensed consolidated financial statements from the date of acquisition in the Company's Seating segment. For further information related to the acquisition of Kongsberg ICS, see Note 4, "Acquisition of Kongsberg ICS," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringRestructuring 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, communicated and/or implemented. A summary of the changes in the Company's restructuring reserves is shown below (in millions): Balance at January 1, 2023 $ 82.9 Provision for employee termination benefits 73.1 Payments, utilizations and foreign currency (50.8) Balance at September 30, 2023 $ 105.2 Charges recorded in connection with the Company's restructuring actions are shown below (in millions): Nine Months Ended September 30, October 1, Employee termination benefits $ 73.1 $ 69.1 Asset impairments Property, plant and equipment 2.8 1.7 Right-of-use assets 9.6 6.4 Contract termination costs 2.5 2.4 Other related costs 8.3 9.4 $ 96.3 $ 89.0 Restructuring charges by income statement line item are shown below (in millions): Nine Months Ended September 30, October 1, Cost of sales $ 85.9 $ 69.8 Selling, general and administrative expenses 10.4 19.2 $ 96.3 $ 89.0 Restructuring charges by operating segment are shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Seating $ 28.5 $ 12.0 $ 65.4 $ 46.8 E-Systems 19.7 5.2 29.7 37.1 Other — 0.1 1.2 5.1 $ 48.2 $ 17.3 $ 96.3 $ 89.0 The Company expects to incur approximately $20 million and approximately $3 million of additional restructuring costs in its Seating and E-Systems segments, respectively, related to activities initiated as of September 30, 2023, and expects that the components of such costs will be consistent with its historical experience. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
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): September 30, December 31, Raw materials $ 1,290.4 $ 1,216.8 Work-in-process 145.8 126.6 Finished goods 512.8 391.9 Reserves (160.7) (161.7) Inventories $ 1,788.3 $ 1,573.6 |
Pre-Production Costs Related to
Pre-Production Costs Related to Long-Term Supply Agreements | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 and 2022, the Company capitalized $215.5 million and $181.4 million, respectively, of pre-production E&D costs for which reimbursement is contractually guaranteed by the customer. During the first nine months of 2023 and 2022, the Company also capitalized $121.3 million and $128.0 million, respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the Company has a non-cancelable right to use the tooling. These amounts are included in other current and long-term assets in the accompanying condensed consolidated balance sheets. During the first nine months of 2023 and 2022, the Company collected $273.5 million and $245.5 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): September 30, December 31, Current $ 235.7 $ 175.7 Long-term 161.2 161.3 Recoverable customer E&D and tooling $ 396.9 $ 337.0 |
Long-Lived Assets
Long-Lived Assets | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | 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): September 30, December 31, Land $ 106.3 $ 104.6 Buildings and improvements 899.8 868.6 Machinery and equipment 5,117.2 4,871.5 Construction in progress 407.3 378.0 Total property, plant and equipment 6,530.6 6,222.7 Less – accumulated depreciation (3,644.6) (3,368.7) Property, plant and equipment, net $ 2,886.0 $ 2,854.0 Depreciation expense was $136.4 million and $124.1 million in the three months ended September 30, 2023 and October 1, 2022, respectively, and $402.9 million and $378.8 million in the nine months ended September 30, 2023 and October 1, 2022, respectively. The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value estimates of long-lived assets are based on independent appraisals or discounted cash flows, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals are based on a combination of market and cost approaches, as appropriate. In the first nine months of 2023 and 2022, the Company recognized property, plant and equipment impairment charges of $2.8 million and $1.7 million, respectively, in conjunction with its restructuring actions (Note 4, "Restructuring"). In the first nine months of 2023 and 2022, the Company recognized additional property, plant and equipment impairment charges of $2.6 million and $5.7 million, respectively. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income (loss). Definite-Lived Intangible Assets |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, in the nine months ended September 30, 2023, is shown below (in millions): Seating E-Systems Total Balance at January 1, 2023 $ 1,261.1 $ 399.5 $ 1,660.6 Acquisition 75.0 — 75.0 Foreign currency translation and other (15.4) (6.1) (21.5) Balance at September 30, 2023 $ 1,320.7 $ 393.4 $ 1,714.1 Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit's fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The annual goodwill impairment assessment is completed as of the first day of the Company's fourth quarter. There was no impairment of goodwill in the first nine months of 2023 and 2022. The Company will, however, continue to assess the impact of significant industry and other events on its recorded goodwill. For further information related to the acquisition, see Note 3, "Acquisitions." Indefinite-Lived Intangible Assets In the nine months ended October 1, 2022, the Company recognized an impairment charge of $8.9 million related to an intangible asset of its E-Systems segment resulting from a change in the intended use of such asset. The impairment charge is included in amortization of intangible assets in the accompanying condensed consolidated statement of comprehensive income (loss). |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Borrowings The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of September 30, 2023 and December 31, 2022, the Company had lines of credit from banks totaling $272.4 million and $298.2 million, respectively. As of September 30, 2023 and December 31, 2022, the Company had short-term debt balances outstanding related to draws on the lines of credit of $26.7 million and $9.9 million, respectively. 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): September 30, 2023 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Delayed-Draw Term Loan Facility (the "Term Loan") $ 150.0 $ (0.6) $ — $ 149.4 6.635% 3.8% Senior Notes due 2027 (the "2027 Notes") 550.0 (1.8) (1.5) 546.7 3.885% 4.25% Senior Notes due 2029 (the "2029 Notes") 375.0 (1.7) (0.7) 372.6 4.288% 3.5% Senior Notes due 2030 (the "2030 Notes") 350.0 (1.8) (0.5) 347.7 3.525% 2.6% Senior Notes due 2032 (the "2032 Notes") 350.0 (2.6) (0.6) 346.8 2.624% 5.25% Senior Notes due 2049 (the "2049 Notes") 625.0 (5.7) 12.8 632.1 5.103% 3.55% Senior Notes due 2052 (the "2052 Notes") 350.0 (3.7) (0.5) 345.8 3.558% Other 1.3 — — 1.3 N/A $ 2,751.3 $ (17.9) $ 9.0 $ 2,742.4 Less — Current portion (0.3) Long-term debt $ 2,742.1 December 31, 2022 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted 2027 Notes $ 550.0 $ (2.1) $ (1.8) $ 546.1 3.885% 2029 Notes 375.0 (2.0) (0.7) 372.3 4.288% 2030 Notes 350.0 (2.0) (0.6) 347.4 3.525% 2032 Notes 350.0 (2.8) (0.7) 346.5 2.624% 2049 Notes 625.0 (6.0) 13.2 632.2 5.103% 2052 Notes 350.0 (3.8) (0.5) 345.7 3.558% Other 11.8 — — 11.8 N/A $ 2,611.8 $ (18.7) $ 8.9 2,602.0 Less — Current portion (10.8) Long-term debt $ 2,591.2 Senior Notes The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes, 2032 Notes, 2049 Notes and 2052 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 2032 Notes November 2021 January 15, 2032 January 15 and July 15 2049 Notes May 2019 and February 2020 May 15, 2049 May 15 and November 15 2052 Notes November 2021 January 15, 2052 January 15 and July 15 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 September 30, 2023, the Company was in compliance with all covenants under the indentures governing the Notes. Credit Agreement The Company's $2.0 billion amended and restated unsecured revolving credit agreement (the "Credit Agreement") expires on October 28, 2026. On June 14, 2023, the Company amended the Credit Agreement to implement the transition from the London Interbank Offered Rate to the Secured Overnight Financing Rate ("SOFR") in accordance with the existing terms of the Credit Agreement, adopting SOFR as the reference rate for certain U.S. dollar-denominated borrowings. As of September 30, 2023 and December 31, 2022, there were no borrowings outstanding under the Credit Agreement. Advances under the Credit Agreement generally bear interest based on (i) Term Benchmark, Central Bank Rate and Risk Free Rate ("RFR") (in each case, as defined in the Credit Agreement) or (ii) Alternate Base Rate ("ABR") and Canadian Prime Rate (in each case, as defined in the Credit Agreement). As of September 30, 2023, the ranges and rates are as follows: Term Benchmark, Central Bank Rate ABR and Canadian Prime Rate Loans Rate as of Rate as of Minimum Maximum September 30, 2023 Minimum Maximum September 30, 2023 Credit Agreement 0.925 % 1.450 % 1.125 % 0.000 % 0.450 % 0.125 % A facility fee, which ranges from 0.075% to 0.20% of the total amount committed under the Credit Agreement, is payable quarterly. 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 September 30, 2023, the Company was in compliance with all covenants under the Credit Agreement. Term Loan On May 1, 2023, the Company borrowed $150 million under its Term Loan to finance, in part, the acquisition of IGB (Note 3, "Acquisitions"). The Term Loan matures on May 1, 2026, three years after the funding date. Advances under the Term Loan generally bear interest based on the Daily or Term SOFR (as defined in the Term Loan agreement) plus a margin determined in accordance with a pricing grid that ranges from 1.00% to 1.525%. The Term Loan contains the same covenants as the Credit Agreement. As of September 30, 2023, the Company was in compliance with all covenants under the Term Loan. Other Long-Term Debt As of September 30, 2023, other long-term debt, including the current portion, consists of amounts outstanding under finance lease agreements. As of December 31, 2022, other long-term debt, including the current portion, consists of amounts outstanding under an unsecured working capital loan and 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, 2022. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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): September 30, December 31, 2022 Right-of-use assets under operating leases: Other long-term assets $ 731.9 $ 701.8 Lease obligations under operating leases: Accrued liabilities $ 149.2 $ 136.8 Other long-term liabilities 620.7 595.1 $ 769.9 $ 731.9 Maturities of lease obligations as of September 30, 2023, are shown below (in millions): September 30, 2023 2023 (1) $ 46.4 2024 170.5 2025 146.8 2026 123.7 2027 102.2 Thereafter 290.7 Total undiscounted cash flows 880.3 Less: Imputed interest (110.4) Lease obligations under operating leases $ 769.9 (1) For the remaining three months Cash flow information related to operating leases is shown below (in millions): Nine Months Ended September 30, October 1, Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 152.4 $ 166.6 Operating cash flows: Cash paid related to operating lease obligations $ 137.0 $ 121.5 In addition to the right-of-use assets obtained in exchange for operating lease obligations shown above, in the nine months ended September 30, 2023, the Company acquired $14.3 million of right-of-use assets and related lease obligations in conjunction with its acquisition of IGB (Note 3, "Acquisitions"). Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Operating lease expense $ 46.5 $ 40.5 $ 136.0 $ 122.8 Short-term lease expense 5.2 5.7 15.4 16.5 Variable lease expense 2.3 2.1 7.3 6.2 Total lease expense $ 54.0 $ 48.3 $ 158.7 $ 145.5 In the nine months ended September 30, 2023 and October 1, 2022, the Company recognized impairment charges of $9.6 million and $6.4 million, respectively, related to its right-of-use assets in conjunction with its restructuring actions (see Note 4, "Restructuring"). In the three and nine months ended October 1, 2022, the Company recognized additional right-of-use asset impairment charges of $7.0 million related to its Russian operations. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income (loss). The weighted average lease term and discount rate for operating leases are shown below: September 30, Weighted average remaining lease term Seven years Weighted average discount rate 3.9 % The Company is party to finance lease agreements, which are not material to the accompanying condensed consolidated financial statements (Note 9, "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, 2022. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Service cost $ — $ 0.8 $ — $ 1.0 $ — $ 2.4 $ — $ 3.1 Interest cost 5.2 4.3 3.9 2.8 15.6 12.6 11.6 8.6 Expected return on plan assets (5.0) (4.1) (6.0) (4.3) (15.2) (12.2) (17.9) (13.1) Amortization of actuarial loss 0.2 0.4 0.5 1.0 0.7 1.4 1.5 3.1 Settlement (gain) loss — — — — (0.1) — 0.4 — Net periodic benefit (credit) cost $ 0.4 $ 1.4 $ (1.6) $ 0.5 $ 1.0 $ 4.2 $ (4.4) $ 1.7 The components of the Company's net periodic other postretirement benefit (credit) cost are shown below (in millions): Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Interest cost $ 0.3 $ 0.2 $ 0.3 $ 0.1 $ 1.1 $ 0.7 $ 1.1 $ 0.5 Amortization of actuarial gain (0.8) — (0.3) — (2.5) (0.1) (0.9) — Amortization of prior service credit — — — — (0.1) — (0.1) — Net periodic benefit (credit) cost $ (0.5) $ 0.2 $ — $ 0.1 $ (1.5) $ 0.6 $ 0.1 $ 0.5 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
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 current purchase orders, annual price reductions and ongoing price adjustments. In the first nine months of 2023 and 2022, 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 September 30, 2023 and December 31, 2022, there were no significant contract liabilities recorded. Further, in the first nine months of 2023 and 2022, 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 September 30, 2023 October 1, 2022 Seating E-Systems Total Seating E-Systems Total North America $ 1,916.2 $ 465.2 $ 2,381.4 $ 1,888.8 $ 395.4 $ 2,284.2 Europe and Africa 1,437.0 578.4 2,015.4 1,116.7 472.1 1,588.8 Asia 761.8 380.7 1,142.5 719.7 423.2 1,142.9 South America 169.9 71.8 241.7 162.6 62.7 225.3 $ 4,284.9 $ 1,496.1 $ 5,781.0 $ 3,887.8 $ 1,353.4 $ 5,241.2 Nine Months Ended September 30, 2023 October 1, 2022 Seating E-Systems Total Seating E-Systems Total North America $ 5,929.5 $ 1,301.7 $ 7,231.2 $ 5,553.4 $ 1,122.1 $ 6,675.5 Europe and Africa 4,601.5 1,837.4 6,438.9 3,650.3 1,474.4 5,124.7 Asia 2,187.2 1,083.9 3,271.1 2,013.3 1,075.7 3,089.0 South America 487.8 196.7 684.5 457.4 174.0 631.4 $ 13,206.0 $ 4,419.7 $ 17,625.7 $ 11,674.4 $ 3,846.2 $ 15,520.6 |
Other Expense, Net
Other Expense, Net | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net includes non-income related taxes, foreign exchange gains and losses, gains and losses related to certain derivative instruments and hedging activities, gains and losses on the disposal of fixed assets, the non-service cost components of net periodic benefit cost and other miscellaneous income and expense. A summary of other expense, net is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Other expense $ 9.1 $ 20.3 $ 43.2 $ 66.2 Other income (3.3) (2.2) (4.2) (6.4) Other expense, net $ 5.8 $ 18.1 $ 39.0 $ 59.8 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and October 1, 2022, is shown below (in millions, except effective tax rates): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Provision for income taxes $ 47.0 $ 41.7 $ 134.1 $ 85.6 Pretax income before equity in net income of affiliates $ 188.7 $ 154.9 $ 600.6 $ 336.0 Effective tax rate 24.9 % 26.9 % 22.3 % 25.5 % The Company's provision for income taxes is impacted by the level and mix of earnings among tax jurisdictions. In addition, the Company recognized discrete tax benefits (expense) on the significant items shown below (in millions): Nine Months Ended September 30, October 1, Restructuring charges and various other items $ 17.0 $ 25.0 Release of tax reserves 2.3 4.7 Share-based compensation (0.5) 1.3 Valuation allowances on deferred tax assets 5.7 (2.6) $ 24.5 $ 28.4 Excluding the items above, the effective tax rate for the first nine months of 2023 and 2022 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. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum tax and a 1% excise tax on share repurchases, which are |
Net Income Per Share Attributab
Net Income Per Share Attributable to Lear | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Lear | Net Income Per Share Attributable to Lear Basic net income per share attributable to Lear is computed by dividing net income attributable 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 per share attributable to Lear. Diluted net income per share attributable to Lear is computed using the treasury stock method by dividing net income attributable to Lear by the average number of common shares outstanding, including the dilutive effect of common stock equivalents using the average share price during the period. A summary of information used to compute basic and diluted net income per share attributable to Lear is shown below (in millions, except share and per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Net income attributable to Lear $ 132.9 $ 92.3 $ 445.2 $ 210.2 Average common shares outstanding 58,766,586 59,551,765 59,072,189 59,794,788 Dilutive effect of common stock equivalents 309,052 234,095 261,401 236,696 Average diluted shares outstanding 59,075,638 59,785,860 59,333,590 60,031,484 Basic net income per share attributable to Lear $ 2.26 $ 1.55 $ 7.54 $ 3.52 Diluted net income per share attributable to Lear $ 2.25 $ 1.54 $ 7.50 $ 3.50 |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Equity | 9 Months Ended |
Sep. 30, 2023 | |
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 months ended September 30, 2023, is shown below (in millions): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Defined benefit plans: Balance at beginning of period $ (96.3) $ (95.7) Reclassification adjustments (net of tax expense of $0.1 million in the nine months ended September 30, 2023) (0.2) (0.8) Other comprehensive income recognized during the period 1.2 1.2 Balance at end of period $ (95.3) $ (95.3) Derivative instruments and hedging: Balance at beginning of period $ 133.0 $ 33.4 Reclassification adjustments (net of tax benefit of $11.1 million and $24.8 million in the three and nine months ended September 30, 2023, respectively) (45.2) (98.8) Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $2.3 million and ($36.5) million in the three and nine months ended September 30, 2023, respectively) (6.5) 146.7 Balance at end of period $ 81.3 $ 81.3 Foreign currency translation: Balance at beginning of period $ (718.4) $ (742.8) Other comprehensive loss recognized during the period (net of tax expense of $0.7 million three months ended September 30, 2023) (96.1) (71.7) Balance at end of period $ (814.5) $ (814.5) Total accumulated other comprehensive loss $ (828.5) $ (828.5) In the three months ended September 30, 2023, foreign currency translation adjustments are primarily related to the weakening of the Euro and, to a lesser extent, the Brazilian real relative to the U.S. dollar. In the nine months ended September 30, 2023, foreign currency translation adjustments are primarily related to the weakening of the Chinese renminbi and, to a lesser extent, the Euro, partially offset by the strengthening of the Brazilian real, relative to the U.S. dollar. In the three and nine months ended September 30, 2023, foreign currency translation adjustments include pretax losses of $0.3 million and $0.1 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. In the three months ended September 30, 2023, foreign currency translation adjustments also include derivative net investment hedge losses of $3.3 million. A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 1, 2022, is shown below (in millions): Three Months Ended October 1, 2022 Nine Months Ended October 1, 2022 Defined benefit plans: Balance at beginning of period $ (194.5) $ (199.4) Reclassification adjustments (net of tax expense of $0.2 million and $0.7 million in the three and nine months ended October 1, 2022, respectively) 1.0 3.3 Other comprehensive income recognized during the period 5.2 7.8 Balance at end of period $ (188.3) $ (188.3) Derivative instruments and hedging: Balance at beginning of period $ (7.2) $ (18.6) Reclassification adjustments (net of tax benefit of $2.3 million and $5.6 million in the three and nine months ended October 1, 2022, respectively) (9.2) (23.6) Other comprehensive income recognized during the period (net of tax expense of $3.8 million and $10.0 million in the three and nine months ended October 1, 2022, respectively) 16.1 41.9 Balance at end of period $ (0.3) $ (0.3) Foreign currency translation: Balance at beginning of period $ (752.5) $ (552.2) Other comprehensive loss recognized during the period (net of tax expense of $2.7 million and $7.1 million in the three and nine months ended October 1, 2022, respectively) (181.9) (382.2) Balance at end of period $ (934.4) $ (934.4) Total accumulated other comprehensive loss $ (1,123.0) $ (1,123.0) In the three and nine months ended October 1, 2022, foreign currency translation adjustments are primarily related to the weakening of the Euro and, to a lesser extent, the Chinese renminbi, relative to the U.S. dollar. In the three and nine months ended October 1, 2022, foreign currency translation adjustments include pretax losses of $0.7 million and $2.0 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future. In the three and nine months ended October 1, 2022, foreign currency translation adjustments also include derivative net investment hedge gains of $14.8 million and $34.2 million, respectively. For further information regarding reclassification adjustments related to the Company's defined benefit plans, see Note 11, "Pension and Other Postretirement Benefit Plans." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 19, "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, results of operations, capital requirements, 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 (the "Board") has authorized $6.1 billion in share repurchases under the Repurchase Program, and the Company has repurchased, in aggregate, $5.0 billion of its outstanding common stock, at an average price of $92.42 per share, excluding commissions and related fees. As of September 30, 2023, the Company had a remaining purchase authorization of $1.1 billion under the Repurchase Program, which expires on December 31, 2024. Share repurchases in the first nine months of 2023 and the remaining purchase authorization as of September 30, 2023, are shown below (in millions, except for share and per share amounts): Nine Months Ended September 30, 2023 As of September 30, 2023 Aggregate Repurchases (1) Cash Paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 138.0 $ 138.0 991,084 $ 139.22 $ 1,091.4 (1) Excludes excise tax (2) Excludes commissions 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 The Board declared a quarterly cash dividend of $0.77 per share of common stock in the first, second and third quarters of 2023 and 2022. Dividends declared and paid are shown below (in millions): Nine Months Ended September 30, October 1, Dividends declared $ 139.0 $ 139.8 Dividends paid 137.3 139.4 Dividends payable on shares of common stock to be distributed under the Company's stock-based compensation program will be paid when such shares are distributed. |
Legal and Other Contingencies
Legal and Other Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Other Contingencies | Legal and Other Contingencies As of September 30, 2023 and December 31, 2022, the Company had recorded reserves for pending legal disputes, including commercial disputes, product liability claims and other legal matters, of $14.8 million and $15.9 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically exclude the cost of legal representation. Reserves for warranty and recall matters are recorded separately from legal reserves, as described below. Commercial Disputes The Company is involved from time to time in legal proceedings and claims, including, without limitation, commercial or contractual disputes with its customers, suppliers and competitors. These disputes vary in nature and are usually resolved by negotiations between the parties. Product Liability, Warranty and Recall 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 warranty and recall matters. In certain instances, allegedly defective products may be supplied by the Company's 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 claims or warranty and recall matters. 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 warranty and recall matters. The Company records reserves for warranty and recall matters when liability is probable and related amounts are reasonably estimable. A summary of the changes in reserves for warranty and recall matters for the nine months ended September 30, 2023, is shown below (in millions): Balance at January 1, 2023 $ 30.4 Expense, net (including changes in estimates) 5.6 Settlements (10.7) Foreign currency translation and other 4.7 Balance at September 30, 2023 $ 30.0 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 September 30, 2023 and December 31, 2022, the Company had recorded environmental reserves of $6.0 million and $7.9 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 |
Sep. 30, 2023 | |
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 and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, battery disconnect units and other electronic products. Key components of the Company's complete seat systems and components are advanced comfort solutions, including thermal, safety and wellness products, as well as configurable seating product technologies. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat foam; thermal comfort systems such as seat massage, lumbar, heat, ventilation and active cooling products; and headrests. Key components of the Company's electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher voltage and power. High voltage battery connection systems include intercell connect boards, bus bars and main battery connection systems. Key components of the other electronic products portfolio include zone control modules, body domain control modules and low voltage and high voltage power distribution modules. The Company's software offerings include embedded control, cybersecurity software and software to control hardware devices. The Company's customers traditionally have sourced its electronic hardware together with the software that the Company embeds in it. 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 before equity in net income of affiliates, interest expense and other expense, net ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions): Three Months Ended September 30, 2023 Seating E-Systems Other Consolidated Revenues from external customers $ 4,284.9 $ 1,496.1 $ — $ 5,781.0 Segment earnings (1) 244.7 60.4 (84.9) 220.2 Depreciation and amortization 98.7 47.9 5.3 151.9 Capital expenditures 85.5 62.6 5.1 153.2 Total assets 8,570.6 4,056.6 1,986.5 14,613.7 Three Months Ended October 1, 2022 Seating E-Systems Other Consolidated Revenues from external customers $ 3,887.8 $ 1,353.4 $ — $ 5,241.2 Segment earnings (1) 222.6 46.8 (71.6) 197.8 Depreciation and amortization 90.2 44.2 4.9 139.3 Capital expenditures 77.9 57.6 4.9 140.4 Total assets 7,879.7 3,642.7 1,856.8 13,379.2 Nine Months Ended September 30, 2023 Seating E-Systems Other Consolidated Revenues from external customers $ 13,206.0 $ 4,419.7 $ — $ 17,625.7 Segment earnings (1) 823.4 155.6 (263.3) 715.7 Depreciation and amortization 293.2 141.5 15.6 450.3 Capital expenditures 238.4 179.9 15.0 433.3 Nine Months Ended October 1, 2022 Seating E-Systems Other Consolidated Revenues from external customers $ 11,674.4 $ 3,846.2 $ — $ 15,520.6 Segment earnings (1) 636.6 64.7 (230.9) 470.4 Depreciation and amortization 276.5 143.8 14.0 434.3 Capital expenditures 260.8 163.7 18.4 442.9 (1) See definition above A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Segment earnings $ 220.2 $ 197.8 $ 715.7 $ 470.4 Interest expense 25.7 24.8 76.1 74.6 Other expense, net 5.8 18.1 39.0 59.8 Consolidated income before provision for income taxes and equity in net income of affiliates $ 188.7 $ 154.9 $ 600.6 $ 336.0 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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 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): September 30, December 31, Estimated aggregate fair value (1) $ 2,280.7 $ 2,142.3 Aggregate carrying value (1) (2) 2,750.0 2,600.0 (1) 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 and cash equivalents reported on the accompanying condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the accompanying condensed consolidated statements of cash flows is shown below (in millions): September 30, October 1, Balance sheet: Cash and cash equivalents $ 979.7 $ 842.2 Restricted cash included in other current assets 1.9 — Restricted cash included in other long-term assets 1.6 2.1 Statement of cash flows: Cash, cash equivalents and restricted cash $ 983.2 $ 844.3 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 September 30, 2023 and December 31, 2022, accounts receivable are reflected net of reserves of $31.7 million and $35.3 million, respectively. Changes in expected credit losses were not significant in the first nine months of 2023. 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): September 30, December 31, Current assets $ 1.7 $ 3.6 Other long-term assets 62.6 53.6 $ 64.3 $ 57.2 Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in other 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 September 30, 2023 and December 31, 2022, investments in equity securities without readily determinable fair values of $13.2 million and $18.2 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 $15.0 million and $10.0 million as of September 30, 2023 and December 31, 2022, respectively. During the nine months ended September 30, 2023, the Company recognized an impairment charge of $5.0 million related to its investment in an affiliate. 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 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 Philippine peso and the Japanese yen. 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 September 30, 2023 and October 1, 2022, contra interest expense on net investment hedges of $1.7 million and $4.1 million, respectively, 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): September 30, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 117.7 $ 63.4 Other long-term assets 13.7 10.3 Other current liabilities (3.4) (6.7) Other long-term liabilities (3.4) (0.2) 124.6 66.8 Notional amount $ 1,738.9 $ 1,546.9 Outstanding maturities in months, not to exceed 24 24 Fair value of derivatives designated as net investment hedges: Other long-term assets $ 4.8 $ 4.8 Notional amount $ 150.0 $ 150.0 Outstanding maturities in months, not to exceed 30 39 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 4.0 $ 9.5 Other current liabilities (2.1) (13.4) 1.9 (3.9) Notional amount $ 585.0 $ 758.6 Outstanding maturities in months, not to exceed 4 7 Total fair value $ 131.3 $ 67.7 Total notional amount $ 2,473.9 $ 2,455.5 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 September 30, October 1, September 30, October 1, Gains (losses) recognized in accumulated other comprehensive loss: Foreign currency contracts $ (8.8) $ 19.9 $ 183.2 $ 51.9 Net investment hedge contracts 3.3 14.8 — 34.2 (5.5) 34.7 183.2 86.1 (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales (0.9) (4.3) (0.5) (9.2) Cost of sales (56.0) (7.8) (125.3) (21.8) Interest expense 0.6 0.6 1.8 1.8 Other expense, net — — 0.4 — (56.3) (11.5) (123.6) (29.2) Comprehensive income (loss) $ (61.8) $ 23.2 $ 59.6 $ 56.9 As of September 30, 2023 and December 31, 2022, pretax net gains of $131.4 million and $71.8 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 $ 114.3 Interest rate swap contracts (2.4) Total $ 111.9 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 September 30, 2023 and December 31, 2022, are shown below (in millions): September 30, 2023 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 126.5 Market/ Income $ — $ 126.5 $ — Net investment hedges Recurring 4.8 Market/ Income — 4.8 — Marketable equity securities Recurring 64.3 Market 64.3 — — December 31, 2022 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 62.9 Market/ Income $ — $ 62.9 $ — Net investment hedges Recurring 4.8 Market/ Income — 4.8 — Marketable equity securities Recurring 57.2 Market 57.2 — — 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 September 30, 2023 and December 31, 2022, 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 2023. 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. As a result of the acquisition of IGB (Note 3, "Acquisitions"), Level 3 fair value estimates related to property, plant and equipment of $48.4 million, developed technology and customer-based intangible assets of $15.4 million and right-of-use assets of $14.3 million are recorded in the accompanying condensed consolidated balance sheet as of September 30, 2023. Fair value estimates of property, plant and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were based on a combination of market and cost approaches, as appropriate. Fair value estimates of developed technology intangible assets were based on the relief from royalty approach. Fair value estimates of customer-based intangible assets were based on the multi-period excess earnings method. Fair value estimates of right-of-use assets were based on a market approach. In the nine months ended September 30, 2023, the Company completed impairment assessments related to certain of its intangible assets resulting from changes in the intended use of such assets and recorded impairment charges of $1.9 million. The fair value estimate of the related asset group was based on management's estimates using a discounted cash flow method. In the nine months ended September 30, 2023, the Company completed an impairment assessment related to certain right-of-assets in conjunction with its restructuring actions and recorded an impairment charge of $9.6 million (Note 4, "Restructuring"). The fair value estimates of the related assets were based on management's estimates using a discounted cash flow method. As of September 30, 2023, there were no additional significant assets or liabilities measured at fair value on a non-recurring basis. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. ASUs effective in 2023 and ASUs effective in subsequent years that have been issued but not yet adopted were assessed and determined to be either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Lear | $ 132.9 | $ 92.3 | $ 445.2 | $ 210.2 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Raymond E. Scott [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Raymond E. Scott, President and Chief Executive Officer, entered into a pre-arranged stock trading plan on September 14, 2023. Mr. Scott's plan provides for potential sales of up to 23,528 shares of Lear Corporation common stock through June 28, 2024. The trading plan was entered into during an open insider window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended, and the Company's policies regarding transactions in its securities. |
Name | Raymond E. Scott |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 14, 2023 |
Arrangement Duration | 318 days |
Aggregate Available | 23,528 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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, communicated 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. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost. Costs associated with the repair and maintenance of the Company's property, plant and equipment are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency or safety of the Company's property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method. |
Impairment of Long-Lived Assets | The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value estimates of long-lived assets are based on independent appraisals or discounted cash flows, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals are based on a combination of market and cost approaches, as appropriate. |
Goodwill | Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit's fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The annual goodwill impairment assessment is completed as of the first day of the Company's fourth quarter. |
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 current purchase orders, annual price reductions and ongoing price adjustments. In the first nine months of 2023 and 2022, 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 September 30, 2023 and December 31, 2022, there were no significant contract liabilities recorded. Further, in the first nine months of 2023 and 2022, 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. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum tax and a 1% excise tax on share repurchases, which are |
Net Income Per Share Attributable to Lear | Basic net income per share attributable to Lear is computed by dividing net income attributable 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 per share attributable to Lear. Diluted net income per share attributable to Lear is computed using the treasury stock method by dividing net income attributable to Lear by the average number of common shares outstanding, including the dilutive effect of common stock equivalents using the average share price during the period. |
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 and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, battery disconnect units and other electronic products. Key components of the Company's complete seat systems and components are advanced comfort solutions, including thermal, safety and wellness products, as well as configurable seating product technologies. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat foam; thermal comfort systems such as seat massage, lumbar, heat, ventilation and active cooling products; and headrests. Key components of the Company's electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher voltage and power. High voltage battery connection systems include intercell connect boards, bus bars and main battery connection systems. Key components of the other electronic products portfolio include zone control modules, body domain control modules and low voltage and high voltage power distribution modules. The Company's software offerings include embedded control, cybersecurity software and software to control hardware devices. The Company's customers traditionally have sourced its electronic hardware together with the software that the Company embeds in it. 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 before equity in net income of affiliates, interest expense and other expense, net ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. |
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 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 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. |
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 ("ASUs") issued by the Financial Accounting Standards Board. ASUs effective in 2023 and ASUs effective in subsequent years that have been issued but not yet adopted were assessed and determined to be either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price and Related Allocation | The preliminary purchase price and related allocation are shown below (in millions): July 1, Adjustments September 30, Preliminary purchase price, net of acquired cash $ 174.5 $ — $ 174.5 Property, plant and equipment 49.7 (1.3) 48.4 Other assets purchased and liabilities assumed, net 37.9 (2.2) 35.7 Goodwill 69.9 5.1 75.0 Intangible assets 17.0 (1.6) 15.4 Preliminary purchase price allocation $ 174.5 $ — $ 174.5 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activity | A summary of the changes in the Company's restructuring reserves is shown below (in millions): Balance at January 1, 2023 $ 82.9 Provision for employee termination benefits 73.1 Payments, utilizations and foreign currency (50.8) Balance at September 30, 2023 $ 105.2 Charges recorded in connection with the Company's restructuring actions are shown below (in millions): Nine Months Ended September 30, October 1, Employee termination benefits $ 73.1 $ 69.1 Asset impairments Property, plant and equipment 2.8 1.7 Right-of-use assets 9.6 6.4 Contract termination costs 2.5 2.4 Other related costs 8.3 9.4 $ 96.3 $ 89.0 Restructuring charges by income statement line item are shown below (in millions): Nine Months Ended September 30, October 1, Cost of sales $ 85.9 $ 69.8 Selling, general and administrative expenses 10.4 19.2 $ 96.3 $ 89.0 Restructuring charges by operating segment are shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Seating $ 28.5 $ 12.0 $ 65.4 $ 46.8 E-Systems 19.7 5.2 29.7 37.1 Other — 0.1 1.2 5.1 $ 48.2 $ 17.3 $ 96.3 $ 89.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | A summary of inventories is shown below (in millions): September 30, December 31, Raw materials $ 1,290.4 $ 1,216.8 Work-in-process 145.8 126.6 Finished goods 512.8 391.9 Reserves (160.7) (161.7) Inventories $ 1,788.3 $ 1,573.6 |
Pre-Production Costs Related _2
Pre-Production Costs Related to Long-Term Supply Agreements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements | The classification of recoverable customer E&D and tooling costs related to long-term supply agreements included in the accompanying condensed consolidated balance sheets is shown below (in millions): September 30, December 31, Current $ 235.7 $ 175.7 Long-term 161.2 161.3 Recoverable customer E&D and tooling $ 396.9 $ 337.0 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of property, plant and equipment is shown below (in millions): September 30, December 31, Land $ 106.3 $ 104.6 Buildings and improvements 899.8 868.6 Machinery and equipment 5,117.2 4,871.5 Construction in progress 407.3 378.0 Total property, plant and equipment 6,530.6 6,222.7 Less – accumulated depreciation (3,644.6) (3,368.7) Property, plant and equipment, net $ 2,886.0 $ 2,854.0 |
Goodwill and Indefinite-Lived_2
Goodwill and Indefinite-Lived Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule 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 September 30, 2023, is shown below (in millions): Seating E-Systems Total Balance at January 1, 2023 $ 1,261.1 $ 399.5 $ 1,660.6 Acquisition 75.0 — 75.0 Foreign currency translation and other (15.4) (6.1) (21.5) Balance at September 30, 2023 $ 1,320.7 $ 393.4 $ 1,714.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt and Related Weighted Average Interest Rates | 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): September 30, 2023 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted Delayed-Draw Term Loan Facility (the "Term Loan") $ 150.0 $ (0.6) $ — $ 149.4 6.635% 3.8% Senior Notes due 2027 (the "2027 Notes") 550.0 (1.8) (1.5) 546.7 3.885% 4.25% Senior Notes due 2029 (the "2029 Notes") 375.0 (1.7) (0.7) 372.6 4.288% 3.5% Senior Notes due 2030 (the "2030 Notes") 350.0 (1.8) (0.5) 347.7 3.525% 2.6% Senior Notes due 2032 (the "2032 Notes") 350.0 (2.6) (0.6) 346.8 2.624% 5.25% Senior Notes due 2049 (the "2049 Notes") 625.0 (5.7) 12.8 632.1 5.103% 3.55% Senior Notes due 2052 (the "2052 Notes") 350.0 (3.7) (0.5) 345.8 3.558% Other 1.3 — — 1.3 N/A $ 2,751.3 $ (17.9) $ 9.0 $ 2,742.4 Less — Current portion (0.3) Long-term debt $ 2,742.1 December 31, 2022 Debt Instrument Long-Term Debt Unamortized Debt Issuance Costs Unamortized Original Issue Premium (Discount) Long-Term Weighted 2027 Notes $ 550.0 $ (2.1) $ (1.8) $ 546.1 3.885% 2029 Notes 375.0 (2.0) (0.7) 372.3 4.288% 2030 Notes 350.0 (2.0) (0.6) 347.4 3.525% 2032 Notes 350.0 (2.8) (0.7) 346.5 2.624% 2049 Notes 625.0 (6.0) 13.2 632.2 5.103% 2052 Notes 350.0 (3.8) (0.5) 345.7 3.558% Other 11.8 — — 11.8 N/A $ 2,611.8 $ (18.7) $ 8.9 2,602.0 Less — Current portion (10.8) Long-term debt $ 2,591.2 Senior Notes The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes, 2032 Notes, 2049 Notes and 2052 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 2032 Notes November 2021 January 15, 2032 January 15 and July 15 2049 Notes May 2019 and February 2020 May 15, 2049 May 15 and November 15 2052 Notes November 2021 January 15, 2052 January 15 and July 15 |
Schedule of Credit Agreement Interest Rate Ranges | As of September 30, 2023, the ranges and rates are as follows: Term Benchmark, Central Bank Rate ABR and Canadian Prime Rate Loans Rate as of Rate as of Minimum Maximum September 30, 2023 Minimum Maximum September 30, 2023 Credit Agreement 0.925 % 1.450 % 1.125 % 0.000 % 0.450 % 0.125 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of 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): September 30, December 31, 2022 Right-of-use assets under operating leases: Other long-term assets $ 731.9 $ 701.8 Lease obligations under operating leases: Accrued liabilities $ 149.2 $ 136.8 Other long-term liabilities 620.7 595.1 $ 769.9 $ 731.9 |
Schedule of Maturity of Lease Obligations | Maturities of lease obligations as of September 30, 2023, are shown below (in millions): September 30, 2023 2023 (1) $ 46.4 2024 170.5 2025 146.8 2026 123.7 2027 102.2 Thereafter 290.7 Total undiscounted cash flows 880.3 Less: Imputed interest (110.4) Lease obligations under operating leases $ 769.9 (1) For the remaining three months |
Schedule of 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 September 30, October 1, Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 152.4 $ 166.6 Operating cash flows: Cash paid related to operating lease obligations $ 137.0 $ 121.5 Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Operating lease expense $ 46.5 $ 40.5 $ 136.0 $ 122.8 Short-term lease expense 5.2 5.7 15.4 16.5 Variable lease expense 2.3 2.1 7.3 6.2 Total lease expense $ 54.0 $ 48.3 $ 158.7 $ 145.5 The weighted average lease term and discount rate for operating leases are shown below: September 30, Weighted average remaining lease term Seven years Weighted average discount rate 3.9 % |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of 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 September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Service cost $ — $ 0.8 $ — $ 1.0 $ — $ 2.4 $ — $ 3.1 Interest cost 5.2 4.3 3.9 2.8 15.6 12.6 11.6 8.6 Expected return on plan assets (5.0) (4.1) (6.0) (4.3) (15.2) (12.2) (17.9) (13.1) Amortization of actuarial loss 0.2 0.4 0.5 1.0 0.7 1.4 1.5 3.1 Settlement (gain) loss — — — — (0.1) — 0.4 — Net periodic benefit (credit) cost $ 0.4 $ 1.4 $ (1.6) $ 0.5 $ 1.0 $ 4.2 $ (4.4) $ 1.7 The components of the Company's net periodic other postretirement benefit (credit) cost are shown below (in millions): Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Interest cost $ 0.3 $ 0.2 $ 0.3 $ 0.1 $ 1.1 $ 0.7 $ 1.1 $ 0.5 Amortization of actuarial gain (0.8) — (0.3) — (2.5) (0.1) (0.9) — Amortization of prior service credit — — — — (0.1) — (0.1) — Net periodic benefit (credit) cost $ (0.5) $ 0.2 $ — $ 0.1 $ (1.5) $ 0.6 $ 0.1 $ 0.5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule 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 September 30, 2023 October 1, 2022 Seating E-Systems Total Seating E-Systems Total North America $ 1,916.2 $ 465.2 $ 2,381.4 $ 1,888.8 $ 395.4 $ 2,284.2 Europe and Africa 1,437.0 578.4 2,015.4 1,116.7 472.1 1,588.8 Asia 761.8 380.7 1,142.5 719.7 423.2 1,142.9 South America 169.9 71.8 241.7 162.6 62.7 225.3 $ 4,284.9 $ 1,496.1 $ 5,781.0 $ 3,887.8 $ 1,353.4 $ 5,241.2 Nine Months Ended September 30, 2023 October 1, 2022 Seating E-Systems Total Seating E-Systems Total North America $ 5,929.5 $ 1,301.7 $ 7,231.2 $ 5,553.4 $ 1,122.1 $ 6,675.5 Europe and Africa 4,601.5 1,837.4 6,438.9 3,650.3 1,474.4 5,124.7 Asia 2,187.2 1,083.9 3,271.1 2,013.3 1,075.7 3,089.0 South America 487.8 196.7 684.5 457.4 174.0 631.4 $ 13,206.0 $ 4,419.7 $ 17,625.7 $ 11,674.4 $ 3,846.2 $ 15,520.6 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense, Net | A summary of other expense, net is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Other expense $ 9.1 $ 20.3 $ 43.2 $ 66.2 Other income (3.3) (2.2) (4.2) (6.4) Other expense, net $ 5.8 $ 18.1 $ 39.0 $ 59.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of 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 September 30, 2023 and October 1, 2022, is shown below (in millions, except effective tax rates): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Provision for income taxes $ 47.0 $ 41.7 $ 134.1 $ 85.6 Pretax income before equity in net income of affiliates $ 188.7 $ 154.9 $ 600.6 $ 336.0 Effective tax rate 24.9 % 26.9 % 22.3 % 25.5 % |
Schedule of Tax Benefits (Expense) | In addition, the Company recognized discrete tax benefits (expense) on the significant items shown below (in millions): Nine Months Ended September 30, October 1, Restructuring charges and various other items $ 17.0 $ 25.0 Release of tax reserves 2.3 4.7 Share-based compensation (0.5) 1.3 Valuation allowances on deferred tax assets 5.7 (2.6) $ 24.5 $ 28.4 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Lear (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Information Used to Compute Basic and Diluted Net Income Per Share | A summary of information used to compute basic and diluted net income per share attributable to Lear is shown below (in millions, except share and per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Net income attributable to Lear $ 132.9 $ 92.3 $ 445.2 $ 210.2 Average common shares outstanding 58,766,586 59,551,765 59,072,189 59,794,788 Dilutive effect of common stock equivalents 309,052 234,095 261,401 236,696 Average diluted shares outstanding 59,075,638 59,785,860 59,333,590 60,031,484 Basic net income per share attributable to Lear $ 2.26 $ 1.55 $ 7.54 $ 3.52 Diluted net income per share attributable to Lear $ 2.25 $ 1.54 $ 7.50 $ 3.50 |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule 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 months ended September 30, 2023, is shown below (in millions): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Defined benefit plans: Balance at beginning of period $ (96.3) $ (95.7) Reclassification adjustments (net of tax expense of $0.1 million in the nine months ended September 30, 2023) (0.2) (0.8) Other comprehensive income recognized during the period 1.2 1.2 Balance at end of period $ (95.3) $ (95.3) Derivative instruments and hedging: Balance at beginning of period $ 133.0 $ 33.4 Reclassification adjustments (net of tax benefit of $11.1 million and $24.8 million in the three and nine months ended September 30, 2023, respectively) (45.2) (98.8) Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $2.3 million and ($36.5) million in the three and nine months ended September 30, 2023, respectively) (6.5) 146.7 Balance at end of period $ 81.3 $ 81.3 Foreign currency translation: Balance at beginning of period $ (718.4) $ (742.8) Other comprehensive loss recognized during the period (net of tax expense of $0.7 million three months ended September 30, 2023) (96.1) (71.7) Balance at end of period $ (814.5) $ (814.5) Total accumulated other comprehensive loss $ (828.5) $ (828.5) A summary of changes, net of tax, in accumulated other comprehensive loss for the three and nine months ended October 1, 2022, is shown below (in millions): Three Months Ended October 1, 2022 Nine Months Ended October 1, 2022 Defined benefit plans: Balance at beginning of period $ (194.5) $ (199.4) Reclassification adjustments (net of tax expense of $0.2 million and $0.7 million in the three and nine months ended October 1, 2022, respectively) 1.0 3.3 Other comprehensive income recognized during the period 5.2 7.8 Balance at end of period $ (188.3) $ (188.3) Derivative instruments and hedging: Balance at beginning of period $ (7.2) $ (18.6) Reclassification adjustments (net of tax benefit of $2.3 million and $5.6 million in the three and nine months ended October 1, 2022, respectively) (9.2) (23.6) Other comprehensive income recognized during the period (net of tax expense of $3.8 million and $10.0 million in the three and nine months ended October 1, 2022, respectively) 16.1 41.9 Balance at end of period $ (0.3) $ (0.3) Foreign currency translation: Balance at beginning of period $ (752.5) $ (552.2) Other comprehensive loss recognized during the period (net of tax expense of $2.7 million and $7.1 million in the three and nine months ended October 1, 2022, respectively) (181.9) (382.2) Balance at end of period $ (934.4) $ (934.4) Total accumulated other comprehensive loss $ (1,123.0) $ (1,123.0) |
Schedule of Common Stock Repurchase Program | Share repurchases in the first nine months of 2023 and the remaining purchase authorization as of September 30, 2023, are shown below (in millions, except for share and per share amounts): Nine Months Ended September 30, 2023 As of September 30, 2023 Aggregate Repurchases (1) Cash Paid for Repurchases Number of Shares Average Price per Share (2) Remaining Purchase Authorization $ 138.0 $ 138.0 991,084 $ 139.22 $ 1,091.4 (1) Excludes excise tax (2) Excludes commissions |
Schedule of Dividends Declared and Paid | Dividends declared and paid are shown below (in millions): Nine Months Ended September 30, October 1, Dividends declared $ 139.0 $ 139.8 Dividends paid 137.3 139.4 |
Legal and Other Contingencies (
Legal and Other Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Reserves for Product Liability and Warranty Claims | A summary of the changes in reserves for warranty and recall matters for the nine months ended September 30, 2023, is shown below (in millions): Balance at January 1, 2023 $ 30.4 Expense, net (including changes in estimates) 5.6 Settlements (10.7) Foreign currency translation and other 4.7 Balance at September 30, 2023 $ 30.0 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule 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 September 30, 2023 Seating E-Systems Other Consolidated Revenues from external customers $ 4,284.9 $ 1,496.1 $ — $ 5,781.0 Segment earnings (1) 244.7 60.4 (84.9) 220.2 Depreciation and amortization 98.7 47.9 5.3 151.9 Capital expenditures 85.5 62.6 5.1 153.2 Total assets 8,570.6 4,056.6 1,986.5 14,613.7 Three Months Ended October 1, 2022 Seating E-Systems Other Consolidated Revenues from external customers $ 3,887.8 $ 1,353.4 $ — $ 5,241.2 Segment earnings (1) 222.6 46.8 (71.6) 197.8 Depreciation and amortization 90.2 44.2 4.9 139.3 Capital expenditures 77.9 57.6 4.9 140.4 Total assets 7,879.7 3,642.7 1,856.8 13,379.2 Nine Months Ended September 30, 2023 Seating E-Systems Other Consolidated Revenues from external customers $ 13,206.0 $ 4,419.7 $ — $ 17,625.7 Segment earnings (1) 823.4 155.6 (263.3) 715.7 Depreciation and amortization 293.2 141.5 15.6 450.3 Capital expenditures 238.4 179.9 15.0 433.3 Nine Months Ended October 1, 2022 Seating E-Systems Other Consolidated Revenues from external customers $ 11,674.4 $ 3,846.2 $ — $ 15,520.6 Segment earnings (1) 636.6 64.7 (230.9) 470.4 Depreciation and amortization 276.5 143.8 14.0 434.3 Capital expenditures 260.8 163.7 18.4 442.9 (1) See definition above |
Schedule of Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity | A reconciliation of segment earnings to consolidated income before provision for income taxes and equity in net income of affiliates is shown below (in millions): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Segment earnings $ 220.2 $ 197.8 $ 715.7 $ 470.4 Interest expense 25.7 24.8 76.1 74.6 Other expense, net 5.8 18.1 39.0 59.8 Consolidated income before provision for income taxes and equity in net income of affiliates $ 188.7 $ 154.9 $ 600.6 $ 336.0 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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): September 30, December 31, Estimated aggregate fair value (1) $ 2,280.7 $ 2,142.3 Aggregate carrying value (1) (2) 2,750.0 2,600.0 (1) Excludes "other" debt (2) Excludes the impact of unamortized debt issuance costs and unamortized original issue premium (discount) |
Schedule of Reconciliation of Cash, Cash Equivalents | A reconciliation of cash and cash equivalents reported on the accompanying condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the accompanying condensed consolidated statements of cash flows is shown below (in millions): September 30, October 1, Balance sheet: Cash and cash equivalents $ 979.7 $ 842.2 Restricted cash included in other current assets 1.9 — Restricted cash included in other long-term assets 1.6 2.1 Statement of cash flows: Cash, cash equivalents and restricted cash $ 983.2 $ 844.3 |
Schedule of Reconciliation of Restricted Cash | A reconciliation of cash and cash equivalents reported on the accompanying condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the accompanying condensed consolidated statements of cash flows is shown below (in millions): September 30, October 1, Balance sheet: Cash and cash equivalents $ 979.7 $ 842.2 Restricted cash included in other current assets 1.9 — Restricted cash included in other long-term assets 1.6 2.1 Statement of cash flows: Cash, cash equivalents and restricted cash $ 983.2 $ 844.3 |
Schedule of 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): September 30, December 31, Current assets $ 1.7 $ 3.6 Other long-term assets 62.6 53.6 $ 64.3 $ 57.2 |
Schedule of 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): September 30, December 31, Fair value of foreign currency contracts designated as cash flow hedges: Other current assets $ 117.7 $ 63.4 Other long-term assets 13.7 10.3 Other current liabilities (3.4) (6.7) Other long-term liabilities (3.4) (0.2) 124.6 66.8 Notional amount $ 1,738.9 $ 1,546.9 Outstanding maturities in months, not to exceed 24 24 Fair value of derivatives designated as net investment hedges: Other long-term assets $ 4.8 $ 4.8 Notional amount $ 150.0 $ 150.0 Outstanding maturities in months, not to exceed 30 39 Fair value of foreign currency contracts not designated as hedging instruments: Other current assets $ 4.0 $ 9.5 Other current liabilities (2.1) (13.4) 1.9 (3.9) Notional amount $ 585.0 $ 758.6 Outstanding maturities in months, not to exceed 4 7 Total fair value $ 131.3 $ 67.7 Total notional amount $ 2,473.9 $ 2,455.5 |
Schedule of 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 September 30, October 1, September 30, October 1, Gains (losses) recognized in accumulated other comprehensive loss: Foreign currency contracts $ (8.8) $ 19.9 $ 183.2 $ 51.9 Net investment hedge contracts 3.3 14.8 — 34.2 (5.5) 34.7 183.2 86.1 (Gains) losses reclassified from accumulated other comprehensive loss to: Net sales (0.9) (4.3) (0.5) (9.2) Cost of sales (56.0) (7.8) (125.3) (21.8) Interest expense 0.6 0.6 1.8 1.8 Other expense, net — — 0.4 — (56.3) (11.5) (123.6) (29.2) Comprehensive income (loss) $ (61.8) $ 23.2 $ 59.6 $ 56.9 During the next twelve-month period, net gains (losses) expected to be reclassified into earnings are shown below (in millions): Foreign currency contracts $ 114.3 Interest rate swap contracts (2.4) Total $ 111.9 |
Schedule of 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 September 30, 2023 and December 31, 2022, are shown below (in millions): September 30, 2023 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 126.5 Market/ Income $ — $ 126.5 $ — Net investment hedges Recurring 4.8 Market/ Income — 4.8 — Marketable equity securities Recurring 64.3 Market 64.3 — — December 31, 2022 Frequency Asset Valuation Level 1 Level 2 Level 3 Foreign currency contracts, net Recurring $ 62.9 Market/ Income $ — $ 62.9 $ — Net investment hedges Recurring 4.8 Market/ Income — 4.8 — Marketable equity securities Recurring 57.2 Market 57.2 — — |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - I.G. Bauerhin $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Apr. 26, 2023 employee plant country | |
Business Acquisition | |||
Number of employees (more than) | employee | 4,600 | ||
Number of manufacturing plants | plant | 9 | ||
Number of countries operated | country | 7 | ||
Transaction costs | $ | $ 0.6 | $ 1.2 | |
Developed Technology Rights | |||
Business Acquisition | |||
Weighted average useful life (years) | 9 years | ||
Customer Relationships | |||
Business Acquisition | |||
Weighted average useful life (years) | 13 years |
Acquisitions - Purchase Price a
Acquisitions - Purchase Price and Related Allocation (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2023 | Jul. 01, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |||
Business Acquisition | ||||||
Goodwill | $ 1,714.1 | [1] | $ 1,714.1 | [1] | $ 1,660.6 | |
I.G. Bauerhin | ||||||
Business Acquisition | ||||||
Preliminary purchase price, net of acquired cash | 174.5 | $ 174.5 | ||||
Property, plant and equipment | 48.4 | 49.7 | 48.4 | |||
Other assets purchased and liabilities assumed, net | 35.7 | 37.9 | 35.7 | |||
Goodwill | 75 | 69.9 | 75 | |||
Intangible assets | 15.4 | 17 | 15.4 | |||
Preliminary purchase price allocation | $ 174.5 | $ 174.5 | 174.5 | |||
Adjustments | ||||||
Preliminary purchase price, net of acquired cash | 0 | |||||
Property, plant and equipment | (1.3) | |||||
Other assets purchased and liabilities assumed, net | (2.2) | |||||
Goodwill | 5.1 | |||||
Intangible assets | (1.6) | |||||
Preliminary purchase price allocation | $ 0 | |||||
[1]Unaudited |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Reserves (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve | |
Accrual as of beginning of period | $ 82.9 |
Provision for employee termination benefits | 73.1 |
Payments, utilizations and foreign currency | (50.8) |
Accrual as of end of period | $ 105.2 |
Restructuring - Summary of Re_2
Restructuring - Summary of Restructuring Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Restructuring Cost and Reserve | ||||
Employee termination benefits | $ 73.1 | $ 69.1 | ||
Contract termination costs | 2.5 | 2.4 | ||
Other related costs | 8.3 | 9.4 | ||
Restructuring costs and asset impairment charges | $ 48.2 | $ 17.3 | 96.3 | 89 |
Property, plant and equipment | ||||
Restructuring Cost and Reserve | ||||
Asset impairment charges | 2.8 | 1.7 | ||
Right-of-use assets | ||||
Restructuring Cost and Reserve | ||||
Asset impairment charges | $ 9.6 | $ 6.4 |
Restructuring - Summary of Inco
Restructuring - Summary of Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | $ 48.2 | $ 17.3 | $ 96.3 | $ 89 |
Cost of sales | ||||
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | 85.9 | 69.8 | ||
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | $ 10.4 | $ 19.2 |
Restructuring - Summary of Segm
Restructuring - Summary of Segment Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | $ 48.2 | $ 17.3 | $ 96.3 | $ 89 |
Operating segments | Seating | ||||
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | 28.5 | 12 | 65.4 | 46.8 |
Operating segments | E-Systems | ||||
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | 19.7 | 5.2 | 29.7 | 37.1 |
Other | ||||
Restructuring Cost and Reserve | ||||
Restructuring costs and asset impairment charges | $ 0 | $ 0.1 | $ 1.2 | $ 5.1 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Seating | |
Restructuring Cost and Reserve | |
Expected restructuring costs | $ 20 |
E-Systems | |
Restructuring Cost and Reserve | |
Expected restructuring costs | $ 3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 1,290.4 | $ 1,216.8 | |
Work-in-process | 145.8 | 126.6 | |
Finished goods | 512.8 | 391.9 | |
Reserves | (160.7) | (161.7) | |
Inventories | $ 1,788.3 | [1] | $ 1,573.6 |
[1]Unaudited |
Pre-Production Costs Related _3
Pre-Production Costs Related to Long-Term Supply Agreements - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Capitalized pre-production E&D costs | $ 215.5 | $ 181.4 |
Capitalized pre-production tooling costs related to customer-owned tools | 121.3 | 128 |
Cash collected related to E&D and tooling costs | $ 273.5 | $ 245.5 |
Pre-Production Costs Related _4
Pre-Production Costs Related to Long-Term Supply Agreements - Summary of Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Pre Production Costs Related to Long Term Supply Arrangements | ||
Recoverable customer E&D and tooling | $ 396.9 | $ 337 |
Current | ||
Pre Production Costs Related to Long Term Supply Arrangements | ||
Recoverable customer E&D and tooling | 235.7 | 175.7 |
Long-term | ||
Pre Production Costs Related to Long Term Supply Arrangements | ||
Recoverable customer E&D and tooling | $ 161.2 | $ 161.3 |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | |||
Total property, plant and equipment | $ 6,530.6 | $ 6,222.7 | |
Less – accumulated depreciation | (3,644.6) | (3,368.7) | |
Property, plant and equipment, net | 2,886 | [1] | 2,854 |
Land | |||
Property, Plant and Equipment | |||
Total property, plant and equipment | 106.3 | 104.6 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Total property, plant and equipment | 899.8 | 868.6 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Total property, plant and equipment | 5,117.2 | 4,871.5 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Total property, plant and equipment | $ 407.3 | $ 378 | |
[1]Unaudited |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Property, Plant and Equipment | ||||
Depreciation expense | $ 136.4 | $ 124.1 | $ 402.9 | $ 378.8 |
E-Systems | ||||
Property, Plant and Equipment | ||||
Impairment of intangible assets, finite lived | 1.9 | |||
Additional property plant and equipment | ||||
Property, Plant and Equipment | ||||
Asset impairment charges | 2.6 | 5.7 | ||
Property, plant and equipment | ||||
Property, Plant and Equipment | ||||
Asset impairment charges | $ 2.8 | $ 1.7 |
Goodwill and Indefinite-Lived_3
Goodwill and Indefinite-Lived Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) | ||
Goodwill | ||
Balance at January 1, 2023 | $ 1,660.6 | |
Acquisition | 75 | |
Foreign currency translation and other | (21.5) | |
Balance at September 30, 2023 | 1,714.1 | [1] |
Seating | ||
Goodwill | ||
Balance at January 1, 2023 | 1,261.1 | |
Acquisition | 75 | |
Foreign currency translation and other | (15.4) | |
Balance at September 30, 2023 | 1,320.7 | |
E-Systems | ||
Goodwill | ||
Balance at January 1, 2023 | 399.5 | |
Acquisition | 0 | |
Foreign currency translation and other | (6.1) | |
Balance at September 30, 2023 | $ 393.4 | |
[1]Unaudited |
Goodwill and Indefinite-Lived_4
Goodwill and Indefinite-Lived Intangible Assets - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Goodwill | ||
Goodwill, impairment | $ 0 | $ 0 |
E-Systems | ||
Goodwill | ||
Impairment charges of intangible assets | $ 8,900,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
May 01, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Sep. 30, 2023 | Oct. 28, 2021 | ||
Debt Instrument | ||||||
Short-term borrowings | $ 9,900,000 | $ 26,700,000 | [1] | |||
Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (as a percent) | 1.525% | 1% | ||||
Term Loan | I.G. Bauerhin | ||||||
Debt Instrument | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
Debt instrument term (years) | 3 years | |||||
Line of Credit | ||||||
Debt Instrument | ||||||
Line of credit facility, maximum borrowing capacity | $ 298,200,000 | $ 272,400,000 | ||||
Credit Agreement | Minimum | ||||||
Debt Instrument | ||||||
Line of credit facility, facility fee (as a percent) | 0.075% | |||||
Credit Agreement | Maximum | ||||||
Debt Instrument | ||||||
Line of credit facility, facility fee (as a percent) | 0.20% | |||||
Credit Agreement | Credit Agreement — Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | |||||
Borrowings outstanding under revolving credit facility | $ 0 | $ 0 | ||||
[1]Unaudited |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument | |||
Other | $ 1.3 | $ 11.8 | |
Debt and lease obligation, gross | 2,751.3 | 2,611.8 | |
Unamortized Debt Issuance Costs | (17.9) | (18.7) | |
Unamortized Original Issue Premium (Discount) | 9 | 8.9 | |
Debt and lease obligation | 2,742.4 | 2,602 | |
Less — Current portion | (0.3) | [1] | (10.8) |
Long-term debt | $ 2,742.1 | [1] | $ 2,591.2 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt | |
Delayed-Draw Term Loan Facility (the "Term Loan") | |||
Debt Instrument | |||
Long-Term Debt | $ 150 | ||
Unamortized Debt Issuance Costs | (0.6) | ||
Unamortized Original Issue Premium (Discount) | 0 | ||
Long-Term Debt, Net | $ 149.4 | ||
Weighted Average Interest Rate | 6.635% | ||
Senior Notes | 3.8% Senior Notes due 2027 (the "2027 Notes") | |||
Debt Instrument | |||
Stated interest rate | 3.80% | ||
Long-Term Debt | $ 550 | $ 550 | |
Unamortized Debt Issuance Costs | (1.8) | (2.1) | |
Unamortized Original Issue Premium (Discount) | (1.5) | (1.8) | |
Long-Term Debt, Net | $ 546.7 | $ 546.1 | |
Weighted Average Interest Rate | 3.885% | 3.885% | |
Senior Notes | 4.25% Senior Notes due 2029 (the "2029 Notes") | |||
Debt Instrument | |||
Stated interest rate | 4.25% | ||
Long-Term Debt | $ 375 | $ 375 | |
Unamortized Debt Issuance Costs | (1.7) | (2) | |
Unamortized Original Issue Premium (Discount) | (0.7) | (0.7) | |
Long-Term Debt, Net | $ 372.6 | $ 372.3 | |
Weighted Average Interest Rate | 4.288% | 4.288% | |
Senior Notes | 3.5% Senior Notes due 2030 (the "2030 Notes") | |||
Debt Instrument | |||
Stated interest rate | 3.50% | ||
Long-Term Debt | $ 350 | $ 350 | |
Unamortized Debt Issuance Costs | (1.8) | (2) | |
Unamortized Original Issue Premium (Discount) | (0.5) | (0.6) | |
Long-Term Debt, Net | $ 347.7 | $ 347.4 | |
Weighted Average Interest Rate | 3.525% | 3.525% | |
Senior Notes | 2.6% Senior Notes due 2032 (the "2032 Notes") | |||
Debt Instrument | |||
Stated interest rate | 2.60% | ||
Long-Term Debt | $ 350 | $ 350 | |
Unamortized Debt Issuance Costs | (2.6) | (2.8) | |
Unamortized Original Issue Premium (Discount) | (0.6) | (0.7) | |
Long-Term Debt, Net | $ 346.8 | $ 346.5 | |
Weighted Average Interest Rate | 2.624% | 2.624% | |
Senior Notes | 5.25% Senior Notes due 2049 (the "2049 Notes") | |||
Debt Instrument | |||
Stated interest rate | 5.25% | ||
Long-Term Debt | $ 625 | $ 625 | |
Unamortized Debt Issuance Costs | (5.7) | (6) | |
Unamortized Original Issue Premium (Discount) | 12.8 | 13.2 | |
Long-Term Debt, Net | $ 632.1 | $ 632.2 | |
Weighted Average Interest Rate | 5.103% | 5.103% | |
Senior Notes | 3.55% Senior Notes due 2052 (the "2052 Notes") | |||
Debt Instrument | |||
Stated interest rate | 3.55% | ||
Long-Term Debt | $ 350 | $ 350 | |
Unamortized Debt Issuance Costs | (3.7) | (3.8) | |
Unamortized Original Issue Premium (Discount) | (0.5) | (0.5) | |
Long-Term Debt, Net | $ 345.8 | $ 345.7 | |
Weighted Average Interest Rate | 3.558% | 3.558% | |
[1]Unaudited |
Debt - Summary of Credit Agreem
Debt - Summary of Credit Agreement Interest Rate Ranges (Details) - Credit Agreement - Credit Agreement — Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2023 | |
Term Benchmark, Central Bank Rate and RFR Loans | |
Debt Instrument | |
Interest rate (as a percent) | 1.125% |
Term Benchmark, Central Bank Rate and RFR Loans | Minimum | |
Debt Instrument | |
Basis spread on variable rate (as a percent) | 0.925% |
Term Benchmark, Central Bank Rate and RFR Loans | Maximum | |
Debt Instrument | |
Basis spread on variable rate (as a percent) | 1.45% |
ABR and Canadian Prime Rate Loans | |
Debt Instrument | |
Interest rate (as a percent) | 0.125% |
ABR and Canadian Prime Rate Loans | Minimum | |
Debt Instrument | |
Basis spread on variable rate (as a percent) | 0% |
ABR and Canadian Prime Rate Loans | Maximum | |
Debt Instrument | |
Basis spread on variable rate (as a percent) | 0.45% |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets and Lease Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Right-of-use assets under operating leases: | ||
Other long-term assets | $ 731.9 | $ 701.8 |
Lease obligations under operating leases: | ||
Accrued liabilities | 149.2 | 136.8 |
Other long-term liabilities | 620.7 | 595.1 |
Lease obligations under operating leases | $ 769.9 | $ 731.9 |
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 - Summary of Maturity of
Leases - Summary of Maturity of Lease Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 46.4 | |
2024 | 170.5 | |
2025 | 146.8 | |
2026 | 123.7 | |
2027 | 102.2 | |
Thereafter | 290.7 | |
Total undiscounted cash flows | 880.3 | |
Less: Imputed interest | (110.4) | |
Lease obligations under operating leases | $ 769.9 | $ 731.9 |
Leases - Summary of Cash Flow I
Leases - Summary of Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Non-cash activity: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 152.4 | $ 166.6 |
Operating cash flows: | ||
Cash paid related to operating lease obligations | $ 137 | $ 121.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Right-of-use assets | |||
Lessee, Lease, Description | |||
Asset impairment charges | $ 9.6 | $ 6.4 | |
Right-of-use assets | RUSSIA | |||
Lessee, Lease, Description | |||
Asset impairment charges | $ 7 | $ 7 | |
I.G. Bauerhin | Level 3 | Estimated aggregate fair value | |||
Lessee, Lease, Description | |||
Right of use asset | $ 14.3 |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 46.5 | $ 40.5 | $ 136 | $ 122.8 |
Short-term lease expense | 5.2 | 5.7 | 15.4 | 16.5 |
Variable lease expense | 2.3 | 2.1 | 7.3 | 6.2 |
Total lease expense | $ 54 | $ 48.3 | $ 158.7 | $ 145.5 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Lease Term and Discount Rate (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term | 7 years |
Weighted average discount rate | 3.90% |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Summary of Components of Net Periodic Benefit (Credit) Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Pension | U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 5.2 | 3.9 | 15.6 | 11.6 |
Expected return on plan assets | (5) | (6) | (15.2) | (17.9) |
Amortization of actuarial gain (loss) | 0.2 | 0.5 | 0.7 | 1.5 |
Settlement (gain) loss | 0 | 0 | (0.1) | 0.4 |
Net periodic benefit (credit) cost | 0.4 | (1.6) | 1 | (4.4) |
Pension | Foreign | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | ||||
Service cost | 0.8 | 1 | 2.4 | 3.1 |
Interest cost | 4.3 | 2.8 | 12.6 | 8.6 |
Expected return on plan assets | (4.1) | (4.3) | (12.2) | (13.1) |
Amortization of actuarial gain (loss) | 0.4 | 1 | 1.4 | 3.1 |
Settlement (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 1.4 | 0.5 | 4.2 | 1.7 |
Other Postretirement | U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | ||||
Interest cost | 0.3 | 0.3 | 1.1 | 1.1 |
Amortization of actuarial gain (loss) | (0.8) | (0.3) | (2.5) | (0.9) |
Amortization of prior service credit | 0 | 0 | (0.1) | (0.1) |
Net periodic benefit (credit) cost | (0.5) | 0 | (1.5) | 0.1 |
Other Postretirement | Foreign | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | ||||
Interest cost | 0.2 | 0.1 | 0.7 | 0.5 |
Amortization of actuarial gain (loss) | 0 | 0 | (0.1) | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Percentage of net sales to prior years revenue (as a percent) | 1% | 1% | |
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 | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Disaggregation of Revenue | ||||
Revenues from external customers | $ 5,781 | $ 5,241.2 | $ 17,625.7 | $ 15,520.6 |
North America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 2,381.4 | 2,284.2 | 7,231.2 | 6,675.5 |
Europe and Africa | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 2,015.4 | 1,588.8 | 6,438.9 | 5,124.7 |
Asia | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 1,142.5 | 1,142.9 | 3,271.1 | 3,089 |
South America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 241.7 | 225.3 | 684.5 | 631.4 |
Seating | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 4,284.9 | 3,887.8 | 13,206 | 11,674.4 |
Seating | North America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 1,916.2 | 1,888.8 | 5,929.5 | 5,553.4 |
Seating | Europe and Africa | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 1,437 | 1,116.7 | 4,601.5 | 3,650.3 |
Seating | Asia | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 761.8 | 719.7 | 2,187.2 | 2,013.3 |
Seating | South America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 169.9 | 162.6 | 487.8 | 457.4 |
E-Systems | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 1,496.1 | 1,353.4 | 4,419.7 | 3,846.2 |
E-Systems | North America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 465.2 | 395.4 | 1,301.7 | 1,122.1 |
E-Systems | Europe and Africa | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 578.4 | 472.1 | 1,837.4 | 1,474.4 |
E-Systems | Asia | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | 380.7 | 423.2 | 1,083.9 | 1,075.7 |
E-Systems | South America | ||||
Disaggregation of Revenue | ||||
Revenues from external customers | $ 71.8 | $ 62.7 | $ 196.7 | $ 174 |
Other Expense, Net - Summary of
Other Expense, Net - Summary of Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Other Income and Expenses [Abstract] | ||||
Other expense | $ 9.1 | $ 20.3 | $ 43.2 | $ 66.2 |
Other income | (3.3) | (2.2) | (4.2) | (6.4) |
Other expense, net | $ 5.8 | $ 18.1 | $ 39 | $ 59.8 |
Other Expense, Net - Narrative
Other Expense, Net - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 01, 2022 EUR (€) | |
Unusual or Infrequent Item, or Both | ||||||
Foreign currency transaction gains (losses) | $ 0.2 | $ (12.8) | $ (20.8) | $ (38.6) | ||
Impairment loss | 5 | |||||
Notional amount | $ 2,473.9 | $ 2,473.9 | $ 2,455.5 | |||
Foreign currency contracts | ||||||
Unusual or Infrequent Item, or Both | ||||||
Foreign currency transaction gains (losses) | (0.8) | $ (14.5) | ||||
I.G. Bauerhin | Foreign currency contracts | ||||||
Unusual or Infrequent Item, or Both | ||||||
Foreign currency transaction gains (losses) | $ (10.6) | |||||
Notional amount | € | € 140 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 47 | $ 41.7 | $ 134.1 | $ 85.6 |
Pretax income before equity in net income of affiliates | $ 188.7 | $ 154.9 | $ 600.6 | $ 336 |
Effective tax rate (in percent) | 24.90% | 26.90% | 22.30% | 25.50% |
Income Taxes - Summary of Tax B
Income Taxes - Summary of Tax Benefits (Expense) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Restructuring charges and various other items | $ 17 | $ 25 |
Release of tax reserves | 2.3 | 4.7 |
Share-based compensation | (0.5) | 1.3 |
Valuation allowances on deferred tax assets | 5.7 | (2.6) |
Income tax benefits (expense) related to significant discrete items | $ 24.5 | $ 28.4 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Lear (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Lear | $ 132.9 | $ 92.3 | $ 445.2 | $ 210.2 |
Average common shares outstanding (in shares) | 58,766,586 | 59,551,765 | 59,072,189 | 59,794,788 |
Dilutive effect of common stock equivalents (in shares) | 309,052 | 234,095 | 261,401 | 236,696 |
Average diluted shares outstanding (in shares) | 59,075,638 | 59,785,860 | 59,333,590 | 60,031,484 |
Basic net income per share attributable to Lear (in dollars per share) | $ 2.26 | $ 1.55 | $ 7.54 | $ 3.52 |
Diluted net income per share attributable to Lear (in dollars per share) | $ 2.25 | $ 1.54 | $ 7.50 | $ 3.50 |
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 | ||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |||
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at beginning of period | $ 5,091.3 | $ 4,547.9 | $ 4,830.3 | $ 4,808.4 | ||
Balance at end of period | 4,983.3 | [1] | 4,427.9 | 4,983.3 | [1] | 4,427.9 |
Defined benefit plans: | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at beginning of period | (96.3) | (194.5) | (95.7) | (199.4) | ||
Reclassification adjustments | (0.2) | 1 | (0.8) | 3.3 | ||
Other comprehensive income (loss) recognized during the period | 1.2 | 5.2 | 1.2 | 7.8 | ||
Balance at end of period | (95.3) | (188.3) | (95.3) | (188.3) | ||
Reclassification adjustments, tax expense (benefit) | 0.2 | 0.1 | 0.7 | |||
Derivative instruments and hedging: | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at beginning of period | 133 | (7.2) | 33.4 | (18.6) | ||
Reclassification adjustments | (45.2) | (9.2) | (98.8) | (23.6) | ||
Other comprehensive income (loss) recognized during the period | (6.5) | 16.1 | 146.7 | 41.9 | ||
Balance at end of period | 81.3 | (0.3) | 81.3 | (0.3) | ||
Reclassification adjustments, tax expense (benefit) | (11.1) | (2.3) | (24.8) | (5.6) | ||
Other comprehensive income (loss) recognized during the period, tax expense (benefit) | (2.3) | 3.8 | 36.5 | 10 | ||
Foreign currency translation: | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at beginning of period | (718.4) | (752.5) | (742.8) | (552.2) | ||
Other comprehensive income (loss) recognized during the period | (96.1) | (181.9) | (71.7) | (382.2) | ||
Balance at end of period | (814.5) | (934.4) | (814.5) | (934.4) | ||
Other comprehensive income (loss) recognized during the period, tax expense (benefit) | 0.7 | 2.7 | 7.1 | |||
Accumulated Other Comprehensive Loss, Net of Tax | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at beginning of period | (681.7) | (954.2) | (805.1) | (770.2) | ||
Balance at end of period | $ (828.5) | $ (1,123) | $ (828.5) | $ (1,123) | ||
[1]Unaudited |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 150 Months Ended | ||||||
Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | |
Equity [Abstract] | |||||||||
Foreign currency translation adjustments related to intercompany transactions losses | $ 300,000 | $ 700,000 | $ 100,000 | $ 2,000,000 | |||||
Foreign currency translation adjustments related to derivatives in net investment hedge losses | 3,300,000 | (14,800,000) | (34,200,000) | ||||||
Aggregate purchases authorized under common stock share repurchase program | 6,100,000,000 | 6,100,000,000 | $ 6,100,000,000 | ||||||
Aggregate repurchases | $ 75,700,000 | $ 25,000,000 | $ 139,200,000 | $ 75,200,000 | $ 5,000,000,000 | ||||
Average price (in dollars per share) | $ 143.57 | $ 133.65 | $ 139.22 | $ 132.49 | $ 92.42 | ||||
Remaining repurchase authorization | $ 1,091,400,000 | $ 1,091,400,000 | $ 1,091,400,000 | ||||||
Cash dividends declared per share (in dollars per share) | $ 0.77 | $ 0.77 | $ 0.77 | $ 0.77 | $ 0.77 | $ 0.77 | $ 2.31 | $ 2.31 |
Comprehensive Income (Loss) a_5
Comprehensive Income (Loss) and Equity - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 150 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | |
Equity [Abstract] | |||||
Aggregate Repurchases | $ 138 | ||||
Cash Paid for Repurchases | $ 138 | $ 75.2 | |||
Number of shares repurchased (in shares) | 521,552 | 187,192 | 991,084 | 567,412 | |
Average price per share (in dollars per share) | $ 143.57 | $ 133.65 | $ 139.22 | $ 132.49 | $ 92.42 |
Remaining Purchase Authorization | $ 1,091.4 | $ 1,091.4 | $ 1,091.4 |
Comprehensive Income (Loss) a_6
Comprehensive Income (Loss) and Equity - Summary of Dividends Declared and Paid (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Equity [Abstract] | ||||
Dividends declared | $ 46 | $ 46.4 | $ 139 | $ 139.8 |
Dividends paid | $ 137.3 | $ 139.4 |
Legal and Other Contingencies -
Legal and Other Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Reserves for pending legal disputes, including commercial disputes and other matters | $ 14.8 | $ 15.9 |
Environmental reserves | $ 6 | $ 7.9 |
Legal and Other Contingencies_2
Legal and Other Contingencies - Summary of Product Liability and Warranty Claims (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Movement in Standard Product Warranty Accrual | |
Balance at January 1, 2023 | $ 30.4 |
Expense, net (including changes in estimates) | 5.6 |
Settlements | (10.7) |
Foreign currency translation and other | 4.7 |
Balance at September 30, 2023 | $ 30 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Reportable operating segments | 2 |
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 | |||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |||
Segment Reporting Information | |||||||
Revenues from external customers | $ 5,781 | $ 5,241.2 | $ 17,625.7 | $ 15,520.6 | |||
Segment earnings | 220.2 | 197.8 | 715.7 | 470.4 | |||
Depreciation and amortization | 151.9 | 139.3 | 450.3 | 434.3 | |||
Capital expenditures | 153.2 | 140.4 | 433.3 | 442.9 | |||
Total assets | 14,613.7 | [1] | 13,379.2 | 14,613.7 | [1] | 13,379.2 | $ 13,763 |
Other | |||||||
Segment Reporting Information | |||||||
Revenues from external customers | 0 | 0 | 0 | 0 | |||
Segment earnings | (84.9) | (71.6) | (263.3) | (230.9) | |||
Depreciation and amortization | 5.3 | 4.9 | 15.6 | 14 | |||
Capital expenditures | 5.1 | 4.9 | 15 | 18.4 | |||
Total assets | 1,986.5 | 1,856.8 | 1,986.5 | 1,856.8 | |||
Seating | |||||||
Segment Reporting Information | |||||||
Revenues from external customers | 4,284.9 | 3,887.8 | 13,206 | 11,674.4 | |||
Seating | Operating segments | |||||||
Segment Reporting Information | |||||||
Revenues from external customers | 4,284.9 | 3,887.8 | 13,206 | 11,674.4 | |||
Segment earnings | 244.7 | 222.6 | 823.4 | 636.6 | |||
Depreciation and amortization | 98.7 | 90.2 | 293.2 | 276.5 | |||
Capital expenditures | 85.5 | 77.9 | 238.4 | 260.8 | |||
Total assets | 8,570.6 | 7,879.7 | 8,570.6 | 7,879.7 | |||
E-Systems | |||||||
Segment Reporting Information | |||||||
Revenues from external customers | 1,496.1 | 1,353.4 | 4,419.7 | 3,846.2 | |||
E-Systems | Operating segments | |||||||
Segment Reporting Information | |||||||
Revenues from external customers | 1,496.1 | 1,353.4 | 4,419.7 | 3,846.2 | |||
Segment earnings | 60.4 | 46.8 | 155.6 | 64.7 | |||
Depreciation and amortization | 47.9 | 44.2 | 141.5 | 143.8 | |||
Capital expenditures | 62.6 | 57.6 | 179.9 | 163.7 | |||
Total assets | $ 4,056.6 | $ 3,642.7 | $ 4,056.6 | $ 3,642.7 | |||
[1]Unaudited |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Segment Reporting [Abstract] | ||||
Segment earnings | $ 220.2 | $ 197.8 | $ 715.7 | $ 470.4 |
Interest expense | 25.7 | 24.8 | 76.1 | 74.6 |
Other expense, net | 5.8 | 18.1 | 39 | 59.8 |
Consolidated income before provision for income taxes and equity in net income of affiliates | $ 188.7 | $ 154.9 | $ 600.6 | $ 336 |
Financial Instruments - Summary
Financial Instruments - Summary of Estimated Aggregate Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Estimated aggregate fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instruments | $ 2,280.7 | $ 2,142.3 |
Aggregate carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instruments | $ 2,750 | $ 2,600 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||||
Cash and cash equivalents | $ 979.7 | [1] | $ 1,114.9 | $ 842.2 | |
Restricted cash included in other current assets | 1.9 | 0 | |||
Restricted cash included in other long-term assets | 1.6 | 2.1 | |||
Cash, cash equivalents and restricted cash | $ 983.2 | $ 1,117.4 | $ 844.3 | $ 1,321.3 | |
[1]Unaudited |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Jul. 01, 2023 | Dec. 31, 2022 | |
Financial Instruments | ||||||
Accounts receivable, reserves | $ 31,700,000 | $ 31,700,000 | $ 35,300,000 | |||
Investments in equity securities without readily determinable fair values | 13,200,000 | 13,200,000 | 18,200,000 | |||
Cumulative impairment | 15,000,000 | 15,000,000 | 10,000,000 | |||
Impairment loss | 5,000,000 | |||||
Interest expense | 25,700,000 | $ 24,800,000 | 76,100,000 | $ 74,600,000 | ||
Derivative contracts classified within Level 3 of fair value hierarchy | 0 | 0 | 0 | |||
Derivative contracts transfers in to Level 3 fair value hierarchy | 0 | |||||
Right-of-use assets | ||||||
Financial Instruments | ||||||
Asset impairment charges | 9,600,000 | 6,400,000 | ||||
I.G. Bauerhin | ||||||
Financial Instruments | ||||||
Property, plant and equipment | 48,400,000 | 48,400,000 | $ 49,700,000 | |||
Intangible assets | 15,400,000 | 15,400,000 | $ 17,000,000 | |||
I.G. Bauerhin | Estimated aggregate fair value | Level 3 | ||||||
Financial Instruments | ||||||
Property, plant and equipment | 48,400,000 | 48,400,000 | ||||
Right of use asset | 14,300,000 | 14,300,000 | ||||
I.G. Bauerhin | Developed Technology And customer Based Intangible Assets | Estimated aggregate fair value | Level 3 | ||||||
Financial Instruments | ||||||
Intangible assets | 15,400,000 | 15,400,000 | ||||
E-Systems | ||||||
Financial Instruments | ||||||
Impairment of intangible assets, finite lived | 1,900,000 | |||||
Interest Rate Swap | Net investment hedge contracts | Designated as Hedging Instrument | ||||||
Financial Instruments | ||||||
Interest expense | 1,700,000 | $ 4,100,000 | ||||
Foreign currency contracts | Designated as Hedging Instrument | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||||
Financial Instruments | ||||||
Pretax gains (losses) related to derivative instruments and hedging activities in accumulated other comprehensive loss | $ 131,400,000 | $ 131,400,000 | $ 71,800,000 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Marketable Equity Securities (Details) - Marketable Equity Securities - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI | ||
Current assets | $ 1.7 | $ 3.6 |
Other long-term assets | 62.6 | 53.6 |
Marketable equity securities | $ 64.3 | $ 57.2 |
Financial Instruments - Summa_4
Financial Instruments - Summary of Notional Amount, Estimated Aggregate Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value | ||
Total fair value | $ 131.3 | $ 67.7 |
Notional amount | 2,473.9 | 2,455.5 |
Designated as Hedging Instrument | Net investment hedges | ||
Derivatives, Fair Value | ||
Notional amount | $ 150 | $ 150 |
Designated as Hedging Instrument | Net investment hedges | Maximum | ||
Derivatives, Fair Value | ||
Outstanding maturities in months, not to exceed | 30 months | 39 months |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedge | ||
Derivatives, Fair Value | ||
Other current assets | $ 117.7 | $ 63.4 |
Other long-term assets | 13.7 | 10.3 |
Other current liabilities | (3.4) | (6.7) |
Other long-term liabilities | (3.4) | (0.2) |
Total fair value | 124.6 | 66.8 |
Notional amount | $ 1,738.9 | $ 1,546.9 |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedge | Maximum | ||
Derivatives, Fair Value | ||
Outstanding maturities in months, not to exceed | 24 months | 24 months |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Other current assets | $ 4 | $ 9.5 |
Other current liabilities | (2.1) | (13.4) |
Total fair value | 1.9 | (3.9) |
Notional amount | $ 585 | $ 758.6 |
Foreign currency contracts | Not Designated as Hedging Instrument | Maximum | ||
Derivatives, Fair Value | ||
Outstanding maturities in months, not to exceed | 4 months | 7 months |
Cross currency interest rate contract | Designated as Hedging Instrument | Net investment hedges | ||
Derivatives, Fair Value | ||
Other long-term assets | $ 4.8 | $ 4.8 |
Financial Instruments - Summa_5
Financial Instruments - Summary of Pretax Amounts Recognized in and Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Financial Instruments | ||||
Net investment hedge contracts | $ (3.3) | $ 14.8 | $ 34.2 | |
Gains (losses) recognized in accumulated other comprehensive loss | (5.5) | 34.7 | $ 183.2 | 86.1 |
(Gains) losses reclassified from accumulated other comprehensive loss | (56.3) | (11.5) | (123.6) | (29.2) |
Comprehensive income (loss) | (61.8) | 23.2 | 59.6 | 56.9 |
Net sales | ||||
Financial Instruments | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | (0.9) | (4.3) | (0.5) | (9.2) |
Cost of sales | ||||
Financial Instruments | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | (56) | (7.8) | (125.3) | (21.8) |
Interest expense | ||||
Financial Instruments | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | 0.6 | 0.6 | 1.8 | 1.8 |
Other expense, net | ||||
Financial Instruments | ||||
(Gains) losses reclassified from accumulated other comprehensive loss | 0 | 0 | 0.4 | 0 |
Foreign currency contracts | ||||
Financial Instruments | ||||
Foreign currency contracts | (8.8) | 19.9 | 183.2 | 51.9 |
Net investment hedge contracts | ||||
Financial Instruments | ||||
Net investment hedge contracts | $ 3.3 | $ 14.8 | $ 0 | $ 34.2 |
Financial Instruments - Summa_6
Financial Instruments - Summary of Net Gains (Losses) Expected to be Reclassified into Earnings (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Foreign currency contracts | $ 114.3 |
Interest rate swap contracts | (2.4) |
Total | $ 111.9 |
Financial Instruments - Summa_7
Financial Instruments - Summary of Fair Value Measurements and Related Valuation Techniques and Fair Value Hierarchy Level (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | $ 131.3 | $ 67.7 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Marketable equity securities | 64.3 | 57.2 |
Recurring | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Marketable equity securities | 64.3 | 57.2 |
Recurring | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Marketable equity securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Marketable equity securities | 0 | 0 |
Recurring | Foreign currency contracts, net | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 126.5 | 62.9 |
Recurring | Foreign currency contracts, net | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 0 | 0 |
Recurring | Foreign currency contracts, net | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 126.5 | 62.9 |
Recurring | Foreign currency contracts, net | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 0 | 0 |
Recurring | Net investment hedges | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 4.8 | 4.8 |
Recurring | Net investment hedges | Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 0 | 0 |
Recurring | Net investment hedges | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | 4.8 | 4.8 |
Recurring | Net investment hedges | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Asset (Liability) | $ 0 | $ 0 |