Investments in Affiliates and Other Related Party Transactions

The Company’s beneficial ownership in affiliates accounted for under the equity method is shown below:



December 31,	2016	2015	2014
Shanghai Lear STEC Automotive Parts Co., Ltd. (China)	55%	55%	55%
Beijing BHAP Lear Automotive Systems Co., Ltd. (China)	50	50	50
Dong Kwang Lear Yuhan Hoesa (Korea)	50	50	50
Industrias Cousin Freres, S.L. (Spain)	50	50	50
Jiangxi Jiangling Lear Interior Systems Co., Ltd. (China)	50	50	50
Lear Dongfeng Automotive Seating Co., Ltd. (China)	50	50	50
Changchun Lear FAWSN Automotive Electrical and Electronics Co., Ltd. (China)	49	49	49
Changchun Lear FAWSN Automotive Seat Systems Co., Ltd. (China)	49	49	49
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras)	49	49	49
Kyungshin-Lear Sales and Engineering LLC	49	49	49
eLumigen, LLC	46	30	30
Beijing Lear Dymos Automotive Systems Co., Ltd. (China)	40	40	40
Dymos Lear Automotive India Private Limited (India)	35	35	35
RevoLaze, LLC	20	20	20
HB Polymer Company, LLC	10	10	10
Beijing BAI Lear Automotive Systems Co., Ltd. (China)	—	50	50

Summarized group financial information for affiliates accounted for under the equity method as of December 31, 2016 and 2015, and for the years ended December 31, 2016, 2015 and 2014, is shown below (unaudited; in millions):



December 31,	2016		2015
Balance sheet data:
Current assets	$	1,011.0	$	977.7
Non-current assets	197.3		211.5
Current liabilities	850.5		823.2
Non-current liabilities	26.6		34.2



For the year ended December 31,	2016		2015		2014
Income statement data:
Net sales	$	2,186.4	$	2,087.8	$	2,074.4
Gross profit	200.6		155.5		123.4
Income before provision for income taxes	195.3		127.4		112.3
Net income attributable to affiliates	155.4		96.0		85.6

A summary of amounts recorded in the Company's consolidated balance sheets related to its affiliates is shown below (in millions):



December 31,	2016		2015
Aggregate investment in affiliates	$	153.5	$	156.5
Receivables due from affiliates (including notes and advances)	121.8		95.5
Payables due to affiliates	4.3		7.7

A summary of transactions with affiliates accounted for under the equity method and other related parties is shown below (in millions):



For the year ended December 31,	2016		2015		2014
Sales to affiliates	$	147.0	$	198.5	$	292.5
Purchases from affiliates	17.8		26.3		32.1
Management and other fees for services provided to affiliates	25.3		36.8		26.9
Dividends received from affiliates	35.6		54.1		25.0

The Company’s investment in Shanghai Lear STEC Automotive Parts Co., Ltd. is accounted for under the equity method as the result of certain approval rights granted to the minority shareholders, including approval of the annual budget, business plan and the appointment or dismissal of management. The Company’s investment in HB Polymer Company, LLC is accounted for under the equity method as the Company’s interest in this entity is similar to a partnership interest.

2016

On June 21, 2016, the Company gained control of Beijing BAI Lear Automotive Systems Co., Ltd. (“Beijing BAI”) by amending the existing joint venture agreement to eliminate the substantive participating rights of its joint venture partner. Prior to the amendment, Beijing BAI was accounted for under the equity method. The consolidation of Beijing BAI was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying consolidated balance sheet as of December 31, 2016. The operating results and cash flows of Beijing BAI are included in the accompanying consolidated financial statements from the date of the amended joint venture agreement and in the Company's seating segment.

A summary of the fair value of the assets acquired and liabilities assumed in conjunction with the consolidation is shown below (in millions):



Property, plant and equipment	$	20.7
Other assets and liabilities assumed, net	40.4
Goodwill	8.9
Intangible assets	34.0
	$	104.0

Recognized goodwill is attributable to the assembled workforce, expected synergies and other intangible assets that do not qualify for separate recognition.

Intangible assets consist of amounts recognized for the fair value of customer-based assets and were based on an independent appraisal. Customer-based assets include Beijing BAI’s established relationships with its customers and the ability of these customers to generate future economic profits for the Company. It is estimated that these intangible assets have a weighted average useful life of approximately eight years.

As of the date of consolidation, the fair value of the Company’s previously held equity interest in Beijing BAI was $63.0 million, and the fair value of the noncontrolling interest in Beijing BAI was $41.0 million. As a result of valuing the Company’s previously held equity interest in Beijing BAI at fair value, the Company recognized a gain of $30.3 million, which is included in other expense, net in the accompanying consolidated statement of income for the year ended December 31, 2016.

Also in 2016, the Company acquired an additional ownership interest in eLumigen LLC, thereby increasing its ownership interest to 46% from 30%.

2014

In April 2014, the Company sold its 49% ownership interest in Tacle Seating USA, LLC. The Company did not recognize a significant gain or loss related to this transaction. Also in 2014, the Company acquired an additional ownership interest in eLumigen, LLC, thereby increasing its ownership interest to 30% from 15%.