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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lear Corp | NYSE:LEA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.55 | 0.43% | 127.15 | 128.20 | 125.805 | 127.85 | 568,998 | 01:00:00 |
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
13-3386776
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
||
21557 Telegraph Road, Southfield, MI
|
|
48033
|
(Address of principal executive offices)
|
|
(Zip code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
|
|
(Do not check if a smaller reporting company)
|
|
|
|
Page No.
|
|
|
|
|
Item 3 – Quantitative and Qualitative Disclosures about Market Risk (included in Item 2)
|
|
|
|
(1)
|
Unaudited.
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Net sales
|
$
|
4,662.9
|
|
|
$
|
4,521.4
|
|
|
|
|
|
||||
Cost of sales
|
4,127.2
|
|
|
4,095.7
|
|
||
Selling, general and administrative expenses
|
149.0
|
|
|
151.7
|
|
||
Amortization of intangible assets
|
13.2
|
|
|
13.3
|
|
||
Interest expense
|
21.1
|
|
|
24.4
|
|
||
Other expense, net
|
8.5
|
|
|
30.0
|
|
||
Consolidated income before provision for income taxes and equity in net income of affiliates
|
343.9
|
|
|
206.3
|
|
||
Provision for income taxes
|
98.2
|
|
|
62.9
|
|
||
Equity in net income of affiliates
|
(16.8
|
)
|
|
(13.3
|
)
|
||
Consolidated net income
|
262.5
|
|
|
156.7
|
|
||
Less: Net income attributable to noncontrolling interests
|
14.1
|
|
|
9.4
|
|
||
Net income attributable to Lear
|
$
|
248.4
|
|
|
$
|
147.3
|
|
|
|
|
|
||||
Basic net income per share attributable to Lear
|
$
|
3.33
|
|
|
$
|
1.88
|
|
|
|
|
|
||||
Diluted net income per share attributable to Lear
|
$
|
3.29
|
|
|
$
|
1.86
|
|
|
|
|
|
||||
Cash dividends declared per share
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
|
|
|
||||
Average common shares outstanding
|
74,689,475
|
|
|
78,250,590
|
|
||
|
|
|
|
||||
Average diluted shares outstanding
|
75,474,339
|
|
|
79,079,598
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Consolidated comprehensive income (Note 12)
|
$
|
332.2
|
|
|
$
|
28.8
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
14.3
|
|
|
9.3
|
|
||
Comprehensive income attributable to Lear
|
$
|
317.9
|
|
|
$
|
19.5
|
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Consolidated net income
|
$
|
262.5
|
|
|
$
|
156.7
|
|
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
90.2
|
|
|
84.5
|
|
||
Net change in recoverable customer engineering, development and tooling
|
5.2
|
|
|
(7.8
|
)
|
||
Net change in working capital items (see below)
|
(77.5
|
)
|
|
(344.2
|
)
|
||
Other, net
|
8.2
|
|
|
44.2
|
|
||
Net cash provided by (used in) operating activities
|
288.6
|
|
|
(66.6
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Additions to property, plant and equipment
|
(88.1
|
)
|
|
(98.8
|
)
|
||
Acquisition of Eagle Ottawa, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below) (Note 7)
|
—
|
|
|
(473.3
|
)
|
||
Other, net
|
(1.8
|
)
|
|
7.9
|
|
||
Net cash used in investing activities
|
(89.9
|
)
|
|
(564.2
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Credit agreement borrowings
|
—
|
|
|
500.0
|
|
||
Credit agreement repayments
|
(3.1
|
)
|
|
—
|
|
||
Short-term borrowings
|
2.6
|
|
|
—
|
|
||
Repurchase of senior notes, net of use of $250 million restricted cash in 2015 (see non-cash financing activities below) (Note 7)
|
—
|
|
|
(5.0
|
)
|
||
Repurchase of common stock
|
(154.7
|
)
|
|
(112.4
|
)
|
||
Dividends paid to Lear Corporation stockholders
|
(25.3
|
)
|
|
(22.0
|
)
|
||
Dividends paid to noncontrolling interests
|
—
|
|
|
(0.1
|
)
|
||
Other, net
|
(51.0
|
)
|
|
(46.0
|
)
|
||
Net cash provided by (used in) financing activities
|
(231.5
|
)
|
|
314.5
|
|
||
Effect of foreign currency translation
|
10.3
|
|
|
(29.6
|
)
|
||
Net Change in Cash and Cash Equivalents
|
(22.5
|
)
|
|
(345.9
|
)
|
||
Cash and Cash Equivalents as of Beginning of Period
|
1,196.6
|
|
|
1,094.1
|
|
||
Cash and Cash Equivalents as of End of Period
|
$
|
1,174.1
|
|
|
$
|
748.2
|
|
|
|
|
|
||||
Changes in Working Capital Items:
|
|
|
|
||||
Accounts receivable
|
$
|
(410.5
|
)
|
|
$
|
(677.1
|
)
|
Inventories
|
(41.8
|
)
|
|
(9.5
|
)
|
||
Accounts payable (including $45.7 million of cash paid in 2015 in conjunction with the acquisition of Eagle Ottawa to settle pre-existing accounts payable)
|
240.8
|
|
|
278.2
|
|
||
Accrued liabilities and other
|
134.0
|
|
|
64.2
|
|
||
Net change in working capital items
|
$
|
(77.5
|
)
|
|
$
|
(344.2
|
)
|
|
|
|
|
||||
Supplementary Disclosure:
|
|
|
|
||||
Cash paid for interest
|
$
|
40.9
|
|
|
$
|
32.2
|
|
Cash paid for income taxes, net of refunds received
|
$
|
41.4
|
|
|
$
|
40.2
|
|
|
|
|
|
||||
Non-cash Investing Activities:
|
|
|
|
||||
Cash restricted for use - acquisition of Eagle Ottawa
|
$
|
—
|
|
|
$
|
(350.0
|
)
|
|
|
|
|
||||
Non-cash Financing Activities:
|
|
|
|
||||
Cash restricted for use - repurchase of senior notes
|
$
|
—
|
|
|
$
|
(250.0
|
)
|
|
Accrual as of
|
|
2016
|
|
Utilization
|
|
Accrual as of
|
||||||||
|
January 1, 2016
|
|
Charges
|
|
Cash
|
|
April 2, 2016
|
||||||||
Employee termination benefits
|
$
|
66.5
|
|
|
$
|
9.7
|
|
|
$
|
(23.3
|
)
|
|
$
|
52.9
|
|
Contract termination costs
|
5.3
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
5.3
|
|
||||
Other related costs
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
—
|
|
||||
Total
|
$
|
71.8
|
|
|
$
|
10.2
|
|
|
$
|
(23.8
|
)
|
|
$
|
58.2
|
|
|
April 2,
2016 |
|
December 31, 2015
|
||||
Raw materials
|
$
|
746.3
|
|
|
$
|
706.8
|
|
Work-in-process
|
103.7
|
|
|
90.2
|
|
||
Finished goods
|
159.7
|
|
|
150.6
|
|
||
Inventories
|
$
|
1,009.7
|
|
|
$
|
947.6
|
|
|
April 2,
2016 |
|
December 31, 2015
|
||||
Current
|
$
|
162.2
|
|
|
$
|
162.0
|
|
Long-term
|
52.9
|
|
|
53.7
|
|
||
Recoverable customer E&D and tooling
|
$
|
215.1
|
|
|
$
|
215.7
|
|
|
April 2,
2016 |
|
December 31, 2015
|
||||
Land
|
$
|
105.2
|
|
|
$
|
97.9
|
|
Buildings and improvements
|
594.4
|
|
|
560.4
|
|
||
Machinery and equipment
|
2,281.5
|
|
|
2,125.8
|
|
||
Construction in progress
|
222.1
|
|
|
274.9
|
|
||
Total property, plant and equipment
|
3,203.2
|
|
|
3,059.0
|
|
||
Less – accumulated depreciation
|
(1,329.2
|
)
|
|
(1,232.5
|
)
|
||
Property, plant and equipment, net
|
$
|
1,874.0
|
|
|
$
|
1,826.5
|
|
|
Seating
|
|
Electrical
|
|
Total
|
||||||
Balance at January 1, 2016
|
$
|
1,026.8
|
|
|
$
|
27.0
|
|
|
$
|
1,053.8
|
|
Foreign currency translation and other
|
11.5
|
|
|
—
|
|
|
11.5
|
|
|||
Balance at April 2, 2016
|
$
|
1,038.3
|
|
|
$
|
27.0
|
|
|
$
|
1,065.3
|
|
|
April 2, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||
Debt Instrument
|
Long-Term Debt
|
|
Debt Issuance Costs
(1)
|
|
Long-Term
Debt, Net
|
|
Weighted
Average
Interest
Rate
|
|
Long-Term Debt
|
|
Debt Issuance Costs
(1)
|
|
Long-Term
Debt, Net
|
|
Weighted
Average
Interest
Rate
|
||||||||||||
Credit Agreement — Term Loan Facility
|
$
|
487.5
|
|
|
$
|
(2.0
|
)
|
|
$
|
485.5
|
|
|
1.78%
|
|
$
|
490.6
|
|
|
$
|
(2.2
|
)
|
|
$
|
488.4
|
|
|
1.78%
|
4.75% Senior Notes due 2023
|
500.0
|
|
|
(5.3
|
)
|
|
494.7
|
|
|
4.75%
|
|
500.0
|
|
|
(5.5
|
)
|
|
494.5
|
|
|
4.75%
|
||||||
5.375% Senior Notes due 2024
|
325.0
|
|
|
(3.1
|
)
|
|
321.9
|
|
|
5.375%
|
|
325.0
|
|
|
(3.2
|
)
|
|
321.8
|
|
|
5.375%
|
||||||
5.25% Senior Notes due 2025
|
650.0
|
|
|
(7.3
|
)
|
|
642.7
|
|
|
5.25%
|
|
650.0
|
|
|
(7.5
|
)
|
|
642.5
|
|
|
5.25%
|
||||||
Other
|
10.1
|
|
|
—
|
|
|
10.1
|
|
|
N/A
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
|
N/A
|
||||||
|
$
|
1,972.6
|
|
|
$
|
(17.7
|
)
|
|
1,954.9
|
|
|
|
|
$
|
1,973.2
|
|
|
$
|
(18.4
|
)
|
|
1,954.8
|
|
|
|
||
Less — Current portion
|
|
|
|
|
(26.4
|
)
|
|
|
|
|
|
|
|
(23.1
|
)
|
|
|
||||||||||
Long-term debt
|
|
|
|
|
$
|
1,928.5
|
|
|
|
|
|
|
|
|
$
|
1,931.7
|
|
|
|
|
Three Months Ended
|
||||||||||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||||||||||
|
U.S.
|
|
Foreign
|
|
U.S.
|
|
Foreign
|
||||||||
Service cost
|
$
|
1.4
|
|
|
$
|
1.5
|
|
|
$
|
1.2
|
|
|
$
|
2.1
|
|
Interest cost
|
7.4
|
|
|
3.9
|
|
|
7.2
|
|
|
3.9
|
|
||||
Expected return on plan assets
|
(9.5
|
)
|
|
(5.6
|
)
|
|
(9.9
|
)
|
|
(5.9
|
)
|
||||
Amortization of actuarial loss
|
0.7
|
|
|
0.7
|
|
|
0.6
|
|
|
1.1
|
|
||||
Settlement loss
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Net periodic benefit cost (credit)
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
(0.8
|
)
|
|
$
|
1.2
|
|
|
Three Months Ended
|
||||||||||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||||||||||
|
U.S.
|
|
Foreign
|
|
U.S.
|
|
Foreign
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
Interest cost
|
0.8
|
|
|
0.4
|
|
|
0.8
|
|
|
0.4
|
|
||||
Amortization of actuarial (gain) loss
|
(0.3
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
|
0.1
|
|
||||
Amortization of prior service credit
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Net periodic benefit cost
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Net income attributable to Lear
|
$
|
248.4
|
|
|
$
|
147.3
|
|
|
|
|
|
||||
Average common shares outstanding
|
74,689,475
|
|
|
78,250,590
|
|
||
Dilutive effect of common stock equivalents
|
784,864
|
|
|
829,008
|
|
||
Average diluted shares outstanding
|
75,474,339
|
|
|
79,079,598
|
|
||
|
|
|
|
||||
Basic net income per share attributable to Lear
|
$
|
3.33
|
|
|
$
|
1.88
|
|
|
|
|
|
||||
Diluted net income per share attributable to Lear
|
$
|
3.29
|
|
|
$
|
1.86
|
|
|
Three Months Ended April 2, 2016
|
||||||||||
|
Equity
|
|
Lear
Corporation
Stockholders'
Equity
|
|
Non-
controlling
Interests
|
||||||
Beginning equity balance
|
$
|
3,017.7
|
|
|
$
|
2,927.4
|
|
|
$
|
90.3
|
|
Stock-based compensation transactions
|
(27.7
|
)
|
|
(27.7
|
)
|
|
—
|
|
|||
Repurchase of common stock
|
(154.7
|
)
|
|
(154.7
|
)
|
|
—
|
|
|||
Dividends declared to Lear Corporation stockholders
|
(23.1
|
)
|
|
(23.1
|
)
|
|
—
|
|
|||
Non-controlling interests — other
|
—
|
|
|
(2.2
|
)
|
|
2.2
|
|
|||
Comprehensive income:
|
|
|
|
|
|
|
|||||
Net income
|
262.5
|
|
|
248.4
|
|
|
14.1
|
|
|||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|||||
Defined benefit plan adjustments
|
(2.8
|
)
|
|
(2.8
|
)
|
|
—
|
|
|||
Derivative instruments and hedging activities
|
2.0
|
|
|
2.0
|
|
|
—
|
|
|||
Foreign currency translation adjustments
|
70.5
|
|
|
70.3
|
|
|
0.2
|
|
|||
Other comprehensive income
|
69.7
|
|
|
69.5
|
|
|
0.2
|
|
|||
Comprehensive income
|
332.2
|
|
|
317.9
|
|
|
14.3
|
|
|||
Ending equity balance
|
$
|
3,144.4
|
|
|
$
|
3,037.6
|
|
|
$
|
106.8
|
|
|
Three Months Ended
April 2, 2016 |
||
Defined benefit plans:
|
|
||
Balance at beginning of period
|
$
|
(194.6
|
)
|
Reclassification adjustments (net of tax expense of $0.2 million)
|
1.1
|
|
|
Other comprehensive loss recognized during the period (net of tax impact of $— million)
|
(3.9
|
)
|
|
Balance at end of period
|
$
|
(197.4
|
)
|
|
|
||
Derivative instruments and hedging:
|
|
||
Balance at beginning of period
|
$
|
(38.7
|
)
|
Reclassification adjustments (net of tax expense of $4.9 million)
|
13.6
|
|
|
Other comprehensive loss recognized during the period (net of tax benefit of $4.2 million)
|
(11.6
|
)
|
|
Balance at end of period
|
$
|
(36.7
|
)
|
|
|
||
Foreign currency translation:
|
|
||
Balance at beginning of period
|
$
|
(496.8
|
)
|
Other comprehensive income recognized during the period (net of tax impact of $— million)
|
70.3
|
|
|
Balance at end of period
|
$
|
(426.5
|
)
|
|
Three Months Ended March 28, 2015
|
||||||||||
|
Equity
|
|
Lear
Corporation
Stockholders'
Equity
|
|
Non-
controlling
Interests
|
||||||
Beginning equity balance
|
$
|
3,029.3
|
|
|
$
|
2,958.8
|
|
|
$
|
70.5
|
|
Stock-based compensation transactions
|
(33.5
|
)
|
|
(33.5
|
)
|
|
—
|
|
|||
Repurchase of common stock
|
(112.4
|
)
|
|
(112.4
|
)
|
|
—
|
|
|||
Dividends declared to Lear Corporation stockholders
|
(20.3
|
)
|
|
(20.3
|
)
|
|
—
|
|
|||
Dividends paid to noncontrolling interests
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
156.7
|
|
|
147.3
|
|
|
9.4
|
|
|||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Defined benefit plan adjustments
|
7.7
|
|
|
7.7
|
|
|
—
|
|
|||
Derivative instruments and hedging activities
|
5.7
|
|
|
5.7
|
|
|
—
|
|
|||
Foreign currency translation adjustments
|
(141.3
|
)
|
|
(141.2
|
)
|
|
(0.1
|
)
|
|||
Other comprehensive loss
|
(127.9
|
)
|
|
(127.8
|
)
|
|
(0.1
|
)
|
|||
Comprehensive income
|
28.8
|
|
|
19.5
|
|
|
9.3
|
|
|||
Ending equity balance
|
$
|
2,891.8
|
|
|
$
|
2,812.1
|
|
|
$
|
79.7
|
|
|
Three Months Ended
March 28, 2015 |
||
Defined benefit plans:
|
|
||
Balance at beginning of period
|
$
|
(219.2
|
)
|
Reclassification adjustments (net of tax expense of $0.4 million)
|
1.1
|
|
|
Other comprehensive income recognized during the period (net of tax impact of $— million)
|
6.6
|
|
|
Balance at end of period
|
$
|
(211.5
|
)
|
|
|
||
Derivative instruments and hedging:
|
|
||
Balance at beginning of period
|
$
|
(33.2
|
)
|
Reclassification adjustments (net of tax expense of $1.3 million)
|
3.4
|
|
|
Other comprehensive income recognized during the period (net of tax expense of $1.1 million)
|
2.3
|
|
|
Balance at end of period
|
$
|
(27.5
|
)
|
|
|
||
Foreign currency translation:
|
|
||
Balance at beginning of period
|
$
|
(249.6
|
)
|
Other comprehensive loss recognized during the period (net of tax benefit of $4.1 million)
|
(141.2
|
)
|
|
Balance at end of period
|
$
|
(390.8
|
)
|
Balance at January 1, 2016
|
$
|
33.0
|
|
Expense, net (including changes in estimates)
|
6.6
|
|
|
Settlements
|
(1.0
|
)
|
|
Foreign currency translation and other
|
0.5
|
|
|
Balance at April 2, 2016
|
$
|
39.1
|
|
|
Three Months Ended April 2, 2016
|
||||||||||||||
|
Seating
|
|
Electrical
|
|
Other
|
|
Consolidated
|
||||||||
Revenues from external customers
|
$
|
3,602.0
|
|
|
$
|
1,060.9
|
|
|
$
|
—
|
|
|
$
|
4,662.9
|
|
Segment earnings
(1)
|
291.6
|
|
|
149.8
|
|
|
(67.9
|
)
|
|
373.5
|
|
||||
Depreciation and amortization
|
61.3
|
|
|
26.1
|
|
|
2.8
|
|
|
90.2
|
|
||||
Capital expenditures
|
62.4
|
|
|
20.2
|
|
|
5.5
|
|
|
88.1
|
|
||||
Total assets
|
6,241.5
|
|
|
1,745.9
|
|
|
1,972.1
|
|
|
9,959.5
|
|
|
Three Months Ended March 28, 2015
|
||||||||||||||
|
Seating
|
|
Electrical
|
|
Other
|
|
Consolidated
|
||||||||
Revenues from external customers
|
$
|
3,485.0
|
|
|
$
|
1,036.4
|
|
|
$
|
—
|
|
|
$
|
4,521.4
|
|
Segment earnings
(1)
|
196.1
|
|
|
137.0
|
|
|
(72.4
|
)
|
|
260.7
|
|
||||
Depreciation and amortization
|
58.3
|
|
|
24.1
|
|
|
2.1
|
|
|
84.5
|
|
||||
Capital expenditures
|
71.5
|
|
|
25.3
|
|
|
2.0
|
|
|
98.8
|
|
||||
Total assets
|
6,314.6
|
|
|
1,689.8
|
|
|
1,614.0
|
|
|
9,618.4
|
|
(1)
|
See definition above.
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Segment earnings
|
$
|
373.5
|
|
|
$
|
260.7
|
|
Interest expense
|
21.1
|
|
|
24.4
|
|
||
Other expense, net
|
8.5
|
|
|
30.0
|
|
||
Consolidated income before provision for income taxes and
equity in net income of affiliates
|
$
|
343.9
|
|
|
$
|
206.3
|
|
|
April 2,
2016 |
|
December 31, 2015
|
||||
Estimated aggregate fair value
|
$
|
2,021.0
|
|
|
$
|
1,992.3
|
|
Aggregate carrying value
|
1,962.5
|
|
|
1,965.6
|
|
|
April 2,
2016 |
|
December 31, 2015
|
||||
Contracts designated as cash flow hedges:
|
|
|
|
||||
Notional amount
|
$
|
1,234.1
|
|
|
$
|
1,394.6
|
|
Fair value
|
$
|
(43.6
|
)
|
|
$
|
(46.4
|
)
|
Outstanding maturities in months, not to exceed
|
24
|
|
|
24
|
|
||
|
|
|
|
||||
Contracts not designated as hedging instruments:
|
|
|
|
||||
Notional amount
|
$
|
960.3
|
|
|
$
|
423.4
|
|
Fair value
|
$
|
1.1
|
|
|
$
|
(4.5
|
)
|
Outstanding maturities in months, not to exceed
|
12
|
|
|
12
|
|
||
|
|
|
|
||||
Total outstanding notional amount
|
$
|
2,194.4
|
|
|
$
|
1,818.0
|
|
|
April 2,
2016 |
|
December 31,
2015 |
||||
Contracts designated as cash flow hedges:
|
|
|
|
||||
Other current assets
|
$
|
3.2
|
|
|
$
|
8.2
|
|
Other long-term assets
|
3.1
|
|
|
0.3
|
|
||
Other current liabilities
|
(47.0
|
)
|
|
(51.5
|
)
|
||
Other long-term liabilities
|
(2.9
|
)
|
|
(3.4
|
)
|
||
|
(43.6
|
)
|
|
(46.4
|
)
|
||
Contracts not designated as hedging instruments:
|
|
|
|
||||
Other current assets
|
9.0
|
|
|
3.6
|
|
||
Other current liabilities
|
(7.9
|
)
|
|
(8.1
|
)
|
||
|
1.1
|
|
|
(4.5
|
)
|
||
|
$
|
(42.5
|
)
|
|
$
|
(50.9
|
)
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Contracts designated as cash flow hedges:
|
|
|
|
||||
Gains (losses) recognized in accumulated other comprehensive loss
|
$
|
(15.7
|
)
|
|
$
|
3.4
|
|
Losses reclassified from accumulated other comprehensive loss
|
18.5
|
|
|
4.7
|
|
||
Comprehensive income
|
$
|
2.8
|
|
|
$
|
8.1
|
|
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).
|
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.
|
|
April 2, 2016
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Unaudited; in millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
496.4
|
|
|
$
|
—
|
|
|
$
|
677.7
|
|
|
$
|
—
|
|
|
$
|
1,174.1
|
|
Accounts receivable
|
58.5
|
|
|
657.3
|
|
|
2,333.0
|
|
|
—
|
|
|
3,048.8
|
|
|||||
Inventories
|
2.5
|
|
|
425.7
|
|
|
581.5
|
|
|
—
|
|
|
1,009.7
|
|
|||||
Intercompany accounts
|
81.3
|
|
|
108.1
|
|
|
—
|
|
|
(189.4
|
)
|
|
—
|
|
|||||
Other
|
118.9
|
|
|
16.2
|
|
|
408.0
|
|
|
—
|
|
|
543.1
|
|
|||||
Total current assets
|
757.6
|
|
|
1,207.3
|
|
|
4,000.2
|
|
|
(189.4
|
)
|
|
5,775.7
|
|
|||||
LONG-TERM ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Property, plant and equipment, net
|
158.5
|
|
|
401.0
|
|
|
1,314.5
|
|
|
—
|
|
|
1,874.0
|
|
|||||
Goodwill
|
39.9
|
|
|
651.3
|
|
|
374.1
|
|
|
—
|
|
|
1,065.3
|
|
|||||
Investments in subsidiaries
|
3,307.6
|
|
|
2,228.7
|
|
|
—
|
|
|
(5,536.3
|
)
|
|
—
|
|
|||||
Intercompany loans receivable
|
1,040.6
|
|
|
168.7
|
|
|
523.7
|
|
|
(1,733.0
|
)
|
|
—
|
|
|||||
Other
|
563.0
|
|
|
199.6
|
|
|
509.5
|
|
|
(27.6
|
)
|
|
1,244.5
|
|
|||||
Total long-term assets
|
5,109.6
|
|
|
3,649.3
|
|
|
2,721.8
|
|
|
(7,296.9
|
)
|
|
4,183.8
|
|
|||||
Total assets
|
$
|
5,867.2
|
|
|
$
|
4,856.6
|
|
|
$
|
6,722.0
|
|
|
$
|
(7,486.3
|
)
|
|
$
|
9,959.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
Accounts payable and drafts
|
77.0
|
|
|
798.8
|
|
|
1,914.2
|
|
|
—
|
|
|
2,790.0
|
|
|||||
Accrued liabilities
|
144.9
|
|
|
323.4
|
|
|
982.2
|
|
|
—
|
|
|
1,450.5
|
|
|||||
Intercompany accounts
|
—
|
|
|
—
|
|
|
189.4
|
|
|
(189.4
|
)
|
|
—
|
|
|||||
Current portion of long-term debt
|
25.0
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
26.4
|
|
|||||
Total current liabilities
|
246.9
|
|
|
1,122.2
|
|
|
3,089.8
|
|
|
(189.4
|
)
|
|
4,269.5
|
|
|||||
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
1,919.8
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
|
1,928.5
|
|
|||||
Intercompany loans payable
|
501.9
|
|
|
656.2
|
|
|
574.9
|
|
|
(1,733.0
|
)
|
|
—
|
|
|||||
Other
|
161.0
|
|
|
164.4
|
|
|
319.3
|
|
|
(27.6
|
)
|
|
617.1
|
|
|||||
Total long-term liabilities
|
2,582.7
|
|
|
820.6
|
|
|
902.9
|
|
|
(1,760.6
|
)
|
|
2,545.6
|
|
|||||
EQUITY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lear Corporation stockholders’ equity
|
3,037.6
|
|
|
2,913.8
|
|
|
2,622.5
|
|
|
(5,536.3
|
)
|
|
3,037.6
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
106.8
|
|
|
—
|
|
|
106.8
|
|
|||||
Equity
|
3,037.6
|
|
|
2,913.8
|
|
|
2,729.3
|
|
|
(5,536.3
|
)
|
|
3,144.4
|
|
|||||
Total liabilities and equity
|
$
|
5,867.2
|
|
|
$
|
4,856.6
|
|
|
$
|
6,722.0
|
|
|
$
|
(7,486.3
|
)
|
|
$
|
9,959.5
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
526.4
|
|
|
$
|
0.3
|
|
|
$
|
669.9
|
|
|
$
|
—
|
|
|
$
|
1,196.6
|
|
Accounts receivable
|
46.4
|
|
|
534.5
|
|
|
2,009.1
|
|
|
—
|
|
|
2,590.0
|
|
|||||
Inventories
|
4.0
|
|
|
407.0
|
|
|
536.6
|
|
|
—
|
|
|
947.6
|
|
|||||
Intercompany accounts
|
45.9
|
|
|
79.5
|
|
|
—
|
|
|
(125.4
|
)
|
|
—
|
|
|||||
Other
|
114.0
|
|
|
25.8
|
|
|
412.6
|
|
|
—
|
|
|
552.4
|
|
|||||
Total current assets
|
736.7
|
|
|
1,047.1
|
|
|
3,628.2
|
|
|
(125.4
|
)
|
|
5,286.6
|
|
|||||
LONG-TERM ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Property, plant and equipment, net
|
134.2
|
|
|
417.6
|
|
|
1,274.7
|
|
|
—
|
|
|
1,826.5
|
|
|||||
Goodwill
|
39.9
|
|
|
651.3
|
|
|
362.6
|
|
|
—
|
|
|
1,053.8
|
|
|||||
Investments in subsidiaries
|
3,101.3
|
|
|
2,109.6
|
|
|
—
|
|
|
(5,210.9
|
)
|
|
—
|
|
|||||
Intercompany loans receivable
|
904.1
|
|
|
184.5
|
|
|
245.1
|
|
|
(1,333.7
|
)
|
|
—
|
|
|||||
Other
|
566.3
|
|
|
203.9
|
|
|
493.8
|
|
|
(25.1
|
)
|
|
1,238.9
|
|
|||||
Total long-term assets
|
4,745.8
|
|
|
3,566.9
|
|
|
2,376.2
|
|
|
(6,569.7
|
)
|
|
4,119.2
|
|
|||||
Total assets
|
$
|
5,482.5
|
|
|
$
|
4,614.0
|
|
|
$
|
6,004.4
|
|
|
$
|
(6,695.1
|
)
|
|
$
|
9,405.8
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and drafts
|
$
|
78.0
|
|
|
$
|
681.2
|
|
|
$
|
1,745.2
|
|
|
$
|
—
|
|
|
$
|
2,504.4
|
|
Accrued liabilities
|
144.0
|
|
|
277.0
|
|
|
891.1
|
|
|
—
|
|
|
1,312.1
|
|
|||||
Intercompany accounts
|
—
|
|
|
—
|
|
|
125.4
|
|
|
(125.4
|
)
|
|
—
|
|
|||||
Current portion of long-term debt
|
21.9
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
23.1
|
|
|||||
Total current liabilities
|
243.9
|
|
|
958.2
|
|
|
2,762.9
|
|
|
(125.4
|
)
|
|
3,839.6
|
|
|||||
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
1,925.3
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
|
1,931.7
|
|
|||||
Intercompany loans payable
|
221.6
|
|
|
650.1
|
|
|
462.0
|
|
|
(1,333.7
|
)
|
|
—
|
|
|||||
Other
|
164.3
|
|
|
164.9
|
|
|
312.7
|
|
|
(25.1
|
)
|
|
616.8
|
|
|||||
Total long-term liabilities
|
2,311.2
|
|
|
815.0
|
|
|
781.1
|
|
|
(1,358.8
|
)
|
|
2,548.5
|
|
|||||
EQUITY:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lear Corporation stockholders’ equity
|
2,927.4
|
|
|
2,840.8
|
|
|
2,370.1
|
|
|
(5,210.9
|
)
|
|
2,927.4
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
90.3
|
|
|
—
|
|
|
90.3
|
|
|||||
Equity
|
2,927.4
|
|
|
2,840.8
|
|
|
2,460.4
|
|
|
(5,210.9
|
)
|
|
3,017.7
|
|
|||||
Total liabilities and equity
|
$
|
5,482.5
|
|
|
$
|
4,614.0
|
|
|
$
|
6,004.4
|
|
|
$
|
(6,695.1
|
)
|
|
$
|
9,405.8
|
|
|
Three Months Ended April 2, 2016
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Unaudited; in millions)
|
||||||||||||||||||
Net sales
|
$
|
105.6
|
|
|
$
|
2,038.4
|
|
|
$
|
3,841.2
|
|
|
$
|
(1,322.3
|
)
|
|
$
|
4,662.9
|
|
Cost of sales
|
158.5
|
|
|
1,797.5
|
|
|
3,493.5
|
|
|
(1,322.3
|
)
|
|
4,127.2
|
|
|||||
Selling, general and administrative expenses
|
73.7
|
|
|
5.1
|
|
|
70.2
|
|
|
—
|
|
|
149.0
|
|
|||||
Intercompany operating (income) expense, net
|
(129.9
|
)
|
|
74.5
|
|
|
55.4
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of intangible assets
|
0.7
|
|
|
5.2
|
|
|
7.3
|
|
|
—
|
|
|
13.2
|
|
|||||
Interest expense
|
16.2
|
|
|
6.9
|
|
|
(2.0
|
)
|
|
—
|
|
|
21.1
|
|
|||||
Other expense, net
|
10.3
|
|
|
(0.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
8.5
|
|
|||||
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries
|
(23.9
|
)
|
|
149.6
|
|
|
218.2
|
|
|
—
|
|
|
343.9
|
|
|||||
Provision for income taxes
|
(9.5
|
)
|
|
60.2
|
|
|
47.5
|
|
|
—
|
|
|
98.2
|
|
|||||
Equity in net income of affiliates
|
0.1
|
|
|
(0.5
|
)
|
|
(16.4
|
)
|
|
—
|
|
|
(16.8
|
)
|
|||||
Equity in net income of subsidiaries
|
(262.9
|
)
|
|
(132.3
|
)
|
|
—
|
|
|
395.2
|
|
|
—
|
|
|||||
Consolidated net income
|
248.4
|
|
|
222.2
|
|
|
187.1
|
|
|
(395.2
|
)
|
|
262.5
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
14.1
|
|
|
—
|
|
|
14.1
|
|
|||||
Net income attributable to Lear
|
$
|
248.4
|
|
|
$
|
222.2
|
|
|
$
|
173.0
|
|
|
$
|
(395.2
|
)
|
|
$
|
248.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated comprehensive income
|
$
|
317.9
|
|
|
$
|
228.1
|
|
|
$
|
248.7
|
|
|
$
|
(462.5
|
)
|
|
$
|
332.2
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
14.3
|
|
|
—
|
|
|
14.3
|
|
|||||
Comprehensive income attributable to Lear
|
$
|
317.9
|
|
|
$
|
228.1
|
|
|
$
|
234.4
|
|
|
$
|
(462.5
|
)
|
|
$
|
317.9
|
|
|
Three Months Ended March 28, 2015
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Unaudited; in millions)
|
||||||||||||||||||
Net sales
|
$
|
96.8
|
|
|
$
|
1,987.9
|
|
|
$
|
3,727.6
|
|
|
$
|
(1,290.9
|
)
|
|
$
|
4,521.4
|
|
Cost of sales
|
148.3
|
|
|
1,812.0
|
|
|
3,426.3
|
|
|
(1,290.9
|
)
|
|
4,095.7
|
|
|||||
Selling, general and administrative expenses
|
61.2
|
|
|
23.8
|
|
|
66.7
|
|
|
—
|
|
|
151.7
|
|
|||||
Intercompany operating (income) expense, net
|
(147.9
|
)
|
|
70.4
|
|
|
77.5
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of intangible assets
|
0.4
|
|
|
5.2
|
|
|
7.7
|
|
|
—
|
|
|
13.3
|
|
|||||
Interest expense
|
20.8
|
|
|
5.9
|
|
|
(2.3
|
)
|
|
—
|
|
|
24.4
|
|
|||||
Other expense, net
|
14.2
|
|
|
(2.1
|
)
|
|
17.9
|
|
|
—
|
|
|
30.0
|
|
|||||
Consolidated income (loss) before income taxes and equity in net income of affiliates and subsidiaries
|
(0.2
|
)
|
|
72.7
|
|
|
133.8
|
|
|
—
|
|
|
206.3
|
|
|||||
Provision for income taxes
|
2.8
|
|
|
31.5
|
|
|
28.6
|
|
|
—
|
|
|
62.9
|
|
|||||
Equity in net income of affiliates
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(12.3
|
)
|
|
—
|
|
|
(13.3
|
)
|
|||||
Equity in net income of subsidiaries
|
(150.0
|
)
|
|
(63.4
|
)
|
|
—
|
|
|
213.4
|
|
|
—
|
|
|||||
Consolidated net income
|
147.3
|
|
|
105.3
|
|
|
117.5
|
|
|
(213.4
|
)
|
|
156.7
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|||||
Net income attributable to Lear
|
$
|
147.3
|
|
|
$
|
105.3
|
|
|
$
|
108.1
|
|
|
$
|
(213.4
|
)
|
|
$
|
147.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated comprehensive income
|
$
|
19.5
|
|
|
$
|
88.6
|
|
|
$
|
(4.5
|
)
|
|
$
|
(74.8
|
)
|
|
$
|
28.8
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
9.3
|
|
|||||
Comprehensive income attributable to Lear
|
$
|
19.5
|
|
|
$
|
88.6
|
|
|
$
|
(13.8
|
)
|
|
$
|
(74.8
|
)
|
|
$
|
19.5
|
|
|
Three Months Ended April 2, 2016
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Unaudited; in millions)
|
||||||||||||||||||
Net Cash Provided by Operating Activities
|
$
|
(31.2
|
)
|
|
$
|
123.9
|
|
|
$
|
195.9
|
|
|
$
|
—
|
|
|
$
|
288.6
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property, plant and equipment
|
(9.8
|
)
|
|
(25.9
|
)
|
|
(52.4
|
)
|
|
—
|
|
|
(88.1
|
)
|
|||||
Intercompany transactions
|
(32.4
|
)
|
|
15.8
|
|
|
(278.6
|
)
|
|
295.2
|
|
|
—
|
|
|||||
Other, net
|
(3.2
|
)
|
|
0.1
|
|
|
1.3
|
|
|
—
|
|
|
(1.8
|
)
|
|||||
Net cash used in investing activities
|
(45.4
|
)
|
|
(10.0
|
)
|
|
(329.7
|
)
|
|
295.2
|
|
|
(89.9
|
)
|
|||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit agreement repayments
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|||||
Repurchase of common stock
|
(154.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154.7
|
)
|
|||||
Dividends paid to Lear Corporation stockholders
|
(25.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.3
|
)
|
|||||
Intercompany transactions
|
280.3
|
|
|
(114.2
|
)
|
|
129.1
|
|
|
(295.2
|
)
|
|
—
|
|
|||||
Other, net
|
(50.6
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
|
|
|
(51.0
|
)
|
|||||
Net cash used in financing activities
|
46.6
|
|
|
(114.2
|
)
|
|
131.3
|
|
|
(295.2
|
)
|
|
(231.5
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of foreign currency translation
|
—
|
|
|
—
|
|
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|||||
Net Change in Cash and Cash Equivalents
|
(30.0
|
)
|
|
(0.3
|
)
|
|
7.8
|
|
|
—
|
|
|
(22.5
|
)
|
|||||
Cash and Cash Equivalents as of Beginning of Period
|
526.4
|
|
|
0.3
|
|
|
669.9
|
|
|
—
|
|
|
1,196.6
|
|
|||||
Cash and Cash Equivalents as of End of Period
|
$
|
496.4
|
|
|
$
|
—
|
|
|
$
|
677.7
|
|
|
$
|
—
|
|
|
$
|
1,174.1
|
|
|
Three Months Ended March 28, 2015
|
||||||||||||||||||
|
Lear
|
|
Guarantors
|
|
Non-
guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Unaudited; in millions)
|
||||||||||||||||||
Net Cash Used in Operating Activities
|
$
|
9.2
|
|
|
$
|
(216.8
|
)
|
|
$
|
216.0
|
|
|
$
|
(75.0
|
)
|
|
$
|
(66.6
|
)
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property, plant and equipment
|
(3.7
|
)
|
|
(23.9
|
)
|
|
(71.2
|
)
|
|
—
|
|
|
(98.8
|
)
|
|||||
Acquisitions, net of cash acquired and use of $350 million restricted cash (see non-cash investing activities below)
|
(493.5
|
)
|
|
1.2
|
|
|
19.0
|
|
|
—
|
|
|
(473.3
|
)
|
|||||
Intercompany transactions
|
(42.0
|
)
|
|
(1.7
|
)
|
|
26.1
|
|
|
17.6
|
|
|
—
|
|
|||||
Other, net
|
(2.3
|
)
|
|
—
|
|
|
10.2
|
|
|
—
|
|
|
7.9
|
|
|||||
Net cash used in investing activities
|
(541.5
|
)
|
|
(24.4
|
)
|
|
(15.9
|
)
|
|
17.6
|
|
|
(564.2
|
)
|
|||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit agreement borrowings
|
500.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500.0
|
|
|||||
Repurchase of senior notes, net of use of $250 million restricted cash (see non-cash financing activities below) (Note 7)
|
(5.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|||||
Repurchase of common stock
|
(112.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112.4
|
)
|
|||||
Dividends paid to Lear Corporation stockholders
|
(22.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.0
|
)
|
|||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Intercompany transactions
|
41.7
|
|
|
241.9
|
|
|
(341.0
|
)
|
|
57.4
|
|
|
—
|
|
|||||
Other, net
|
(48.0
|
)
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
(46.0
|
)
|
|||||
Net cash provided by financing activities
|
354.3
|
|
|
241.9
|
|
|
(339.1
|
)
|
|
57.4
|
|
|
314.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of foreign currency translation
|
—
|
|
|
—
|
|
|
(29.6
|
)
|
|
—
|
|
|
(29.6
|
)
|
|||||
Net Change in Cash and Cash Equivalents
|
(178.0
|
)
|
|
0.7
|
|
|
(168.6
|
)
|
|
—
|
|
|
(345.9
|
)
|
|||||
Cash and Cash Equivalents as of Beginning of Period
|
377.8
|
|
|
—
|
|
|
716.3
|
|
|
—
|
|
|
1,094.1
|
|
|||||
Cash and Cash Equivalents as of End of Period
|
$
|
199.8
|
|
|
$
|
0.7
|
|
|
$
|
547.7
|
|
|
$
|
—
|
|
|
$
|
748.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-cash Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash restricted for use — acquisition of Eagle Ottawa
|
$
|
(350.0
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(350.0
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-cash Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash restricted for use — repurchase of senior notes
|
$
|
(250.0
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(250.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
2016 |
|
December 31,
2015 |
||||
Credit agreement
|
$
|
485.5
|
|
|
$
|
488.4
|
|
Senior notes
|
1,459.3
|
|
|
1,458.8
|
|
||
|
1,944.8
|
|
|
1,947.2
|
|
||
Less — Current portion
|
(25.0
|
)
|
|
(21.9
|
)
|
||
Long-term debt
|
$
|
1,919.8
|
|
|
$
|
1,925.3
|
|
|
First Quarter
|
|
|
|||||
|
2016
|
|
2015
|
|
% Change
|
|||
North America
|
4.5
|
|
|
4.3
|
|
|
5
|
%
|
Europe and Africa
|
5.7
|
|
|
5.6
|
|
|
3
|
%
|
Asia
|
11.4
|
|
|
11.2
|
|
|
1
|
%
|
South America
|
0.5
|
|
|
0.8
|
|
|
(28
|
)%
|
Other
|
0.4
|
|
|
0.4
|
|
|
(1
|
)%
|
Global light vehicle production
|
22.5
|
|
|
22.2
|
|
|
1
|
%
|
|
Percentage
|
|
North America
|
41
|
%
|
Europe and Africa
|
39
|
%
|
Asia
|
18
|
%
|
South America
|
2
|
%
|
Total
|
100
|
%
|
|
Three Months Ended
|
||||||
|
April 2,
2016 |
|
March 28,
2015 |
||||
Costs related to restructuring actions, including manufacturing inefficiencies of $2 million and $1 million in the three months ended April 2, 2016 and March 28, 2015, respectively
|
$
|
12
|
|
|
$
|
8
|
|
Acquisition and other related costs
|
—
|
|
|
8
|
|
||
Acquisition-related inventory fair value adjustment
|
—
|
|
|
16
|
|
||
Loss on redemption of bonds
|
—
|
|
|
14
|
|
||
Tax benefits, net
|
(5
|
)
|
|
(14
|
)
|
|
Three Months Ended
|
||||||||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||||||||
Net sales
|
|
|
|
|
|
|
|
||||||
Seating
|
$
|
3,602.0
|
|
|
77.2
|
%
|
|
$
|
3,485.0
|
|
|
77.1
|
%
|
Electrical
|
1,060.9
|
|
|
22.8
|
|
|
1,036.4
|
|
|
22.9
|
|
||
Net sales
|
4,662.9
|
|
|
100.0
|
|
|
4,521.4
|
|
|
100.0
|
|
||
Cost of sales
|
4,127.2
|
|
|
88.5
|
|
|
4,095.7
|
|
|
90.6
|
|
||
Gross profit
|
535.7
|
|
|
11.5
|
|
|
425.7
|
|
|
9.4
|
|
||
Selling, general and administrative expenses
|
149.0
|
|
|
3.2
|
|
|
151.7
|
|
|
3.4
|
|
||
Amortization of intangible assets
|
13.2
|
|
|
0.3
|
|
|
13.3
|
|
|
0.3
|
|
||
Interest expense
|
21.1
|
|
|
0.5
|
|
|
24.4
|
|
|
0.5
|
|
||
Other expense, net
|
8.5
|
|
|
0.2
|
|
|
30.0
|
|
|
0.7
|
|
||
Provision for income taxes
|
98.2
|
|
|
2.1
|
|
|
62.9
|
|
|
1.3
|
|
||
Equity in net income of affiliates
|
(16.8
|
)
|
|
(0.4
|
)
|
|
(13.3
|
)
|
|
(0.3
|
)
|
||
Net income attributable to noncontrolling interests
|
14.1
|
|
|
0.3
|
|
|
9.4
|
|
|
0.2
|
|
||
Net income attributable to Lear
|
$
|
248.4
|
|
|
5.3
|
%
|
|
$
|
147.3
|
|
|
3.3
|
%
|
(in millions)
|
|
Cost of Sales
|
||
First quarter of 2015
|
|
$
|
4,095.7
|
|
Material cost
|
|
6.5
|
|
|
Labor and other
|
|
19.5
|
|
|
Depreciation
|
|
5.5
|
|
|
First quarter of 2016
|
|
$
|
4,127.2
|
|
|
Three Months Ended
|
||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||
Net sales
|
$
|
3,602.0
|
|
|
$
|
3,485.0
|
|
Segment earnings
(1)
|
291.6
|
|
|
196.1
|
|
||
Margin
|
8.1
|
%
|
|
5.6
|
%
|
(1)
|
See definition above.
|
|
Three Months Ended
|
||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||
Net sales
|
$
|
1,060.9
|
|
|
$
|
1,036.4
|
|
Segment earnings
(1)
|
149.8
|
|
|
137.0
|
|
||
Margin
|
14.1
|
%
|
|
13.2
|
%
|
(1)
|
See definition above.
|
|
Three Months Ended
|
||||||
|
April 2, 2016
|
|
March 28, 2015
|
||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
Segment earnings
(1)
|
(67.9
|
)
|
|
(72.4
|
)
|
||
Margin
|
N/A
|
|
|
N/A
|
|
(1)
|
See definition above.
|
|
April 2,
2016 |
|
December 31,
2015 |
||||
Notional amount (contract maturities of less than 24 months)
|
$
|
2,194
|
|
|
$
|
1,818
|
|
Fair value
|
(43
|
)
|
|
(51
|
)
|
Potential earnings benefit (adverse earnings impact) due to a hypothetical 10% strengthening of the:
|
April 2,
2016 |
|
December 31,
2015 |
||||
U.S. dollar
(1)
|
$
|
(21
|
)
|
|
$
|
(18
|
)
|
Euro
(1)
|
9
|
|
|
10
|
|
Estimated change in aggregate fair value of foreign exchange contracts due to a 10% change in the value of the:
|
April 2,
2016 |
|
December 31,
2015 |
||||
U.S. dollar
(2)
|
$
|
42
|
|
|
$
|
38
|
|
Euro
(2)
|
53
|
|
|
63
|
|
•
|
general economic conditions in the markets in which we operate, including changes in interest rates or currency exchange rates;
|
•
|
currency controls and the ability to economically hedge currencies;
|
•
|
the financial condition and restructuring actions of our customers and suppliers;
|
•
|
changes in actual industry vehicle production levels from our current estimates;
|
•
|
fluctuations in the production of vehicles or the loss of business with respect to, or the lack of commercial success of, a vehicle model for which we are a significant supplier;
|
•
|
disruptions in the relationships with our suppliers;
|
•
|
labor disputes involving us or our significant customers or suppliers or that otherwise affect us;
|
•
|
the outcome of customer negotiations and the impact of customer-imposed price reductions;
|
•
|
the impact and timing of program launch costs and our management of new program launches;
|
•
|
the costs, timing and success of restructuring actions;
|
•
|
increases in our warranty, product liability or recall costs;
|
•
|
risks associated with conducting business in foreign countries;
|
•
|
the impact of regulations on our foreign operations;
|
•
|
the operational and financial success of our joint ventures;
|
•
|
competitive conditions impacting us and our key customers and suppliers;
|
•
|
disruptions to our information technology systems, including those related to cybersecurity;
|
•
|
the cost and availability of raw materials, energy, commodities and product components and our ability to mitigate such costs;
|
•
|
the outcome of legal or regulatory proceedings to which we are or may become a party;
|
•
|
the impact of pending legislation and regulations or changes in existing federal, state, local or foreign laws or regulations;
|
•
|
unanticipated changes in cash flow, including our ability to align our vendor payment terms with those of our customers;
|
•
|
limitations imposed by our existing indebtedness and our ability to access capital markets on commercially reasonable terms;
|
•
|
impairment charges initiated by adverse industry or market developments;
|
•
|
our ability to execute our strategic objectives;
|
•
|
changes in discount rates and the actual return on pension assets;
|
•
|
costs associated with compliance with environmental laws and regulations;
|
•
|
developments or assertions by or against us relating to intellectual property rights;
|
•
|
our ability to utilize our net operating loss, capital loss and tax credit carryforwards;
|
•
|
global sovereign fiscal matters and creditworthiness, including potential defaults and the related impacts on economic activity, including the possible effects on credit markets, currency values, monetary unions, international treaties and fiscal policies; and
|
•
|
other risks described in Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended
December 31, 2015
, and our other Securities and Exchange Commission ("SEC") filings.
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Changes in Internal Controls over Financial Reporting
|
Period
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number of
Shares Purchased
as Part of
Publicly Announced
Plans or Programs
|
|
Approximate Dollar
Value of Shares that
May Yet be
Purchased Under
the Program
(in millions)
|
||||
January 1, 2016 through January 30, 2016
|
—
|
|
|
N/A
|
|
N/A
|
|
|
$
|
512.6
|
|
January 31, 2016 through February 27, 2016
(1)
|
242,930
|
|
|
$100.95
|
|
242,930
|
|
|
975.5
|
|
|
February 28, 2016 through April 2, 2016
|
1,193,812
|
|
|
$109.08
|
|
1,193,812
|
|
|
845.3
|
|
|
Total
|
1,436,742
|
|
|
$107.70
|
|
1,436,742
|
|
|
$
|
845.3
|
|
LEAR CORPORATION
|
|
|
|
|
|
|
|
Dated:
|
April 27, 2016
|
By:
|
/s/ Matthew J. Simoncini
|
|
|
|
Matthew J. Simoncini
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
By:
|
/s/ Jeffrey H. Vanneste
|
|
|
|
Jeffrey H. Vanneste
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
Exhibit
Number
|
|
Exhibit
|
*
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.
|
*
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
|
*
|
32.1
|
|
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
*
|
32.2
|
|
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
**
|
101.INS
|
|
XBRL Instance Document.
|
**
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
**
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
**
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
**
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
**
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
*
|
Filed herewith.
|
**
|
Submitted electronically with the Report.
|
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