Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Inventories

A summary of inventories is shown below (in millions):

December 31,	2016		2015
Raw materials	$	746.3	$	706.8
Work-in-process	106.4		90.2
Finished goods	167.9		150.6
Inventories	$	1,020.6	$	947.6

Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements

The classification of recoverable customer E&D and tooling costs related to long-term supply agreements is shown below (in millions):

December 31,	2016		2015
Current	$	185.9	$	162.0
Long-term	43.4		53.7
Recoverable customer E&D and tooling	$	229.3	$	215.7

Property, Plant and Equipment

Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method as follows:

Buildings and improvements	10 to 40 years
Machinery and equipment	5 to 10 years

A summary of property, plant and equipment is shown below (in millions):

December 31,	2016			2015
Land	$	101.7		$	97.9
Buildings and improvements	648.1			560.4
Machinery and equipment	2,459.6			2,125.8
Construction in progress	296.4			274.9
Total property, plant and equipment	3,505.8			3,059.0
Less – accumulated depreciation	(1,486.5		)	(1,232.5		)
Net property, plant and equipment	$	2,019.3		$	1,826.5

Summary of Changes in Carrying Amount of Goodwill

A summary of the changes in the carrying amount of goodwill for each of the periods in the two years ended December 31, 2016, is shown below (in millions):

	Seating			E-Systems		Total
Balance as of December 31, 2014	$	726.2		$	—	$	726.2
Acquisitions	343.7			27.0		370.7
Foreign currency translation and other	(43.1		)	—		(43.1		)
Balance as of December 31, 2015	1,026.8			27.0		1,053.8
Acquisitions	72.0			2.6		74.6
Consolidation of affiliate	8.9			—		8.9
Foreign currency translation and other	(16.5		)	0.5		(16.0		)
Balance as of December 31, 2016	$	1,091.2		$	30.1	$	1,121.3

Summary of Intangible Assets

A summary of intangible assets as of December 31, 2016 and 2015, is shown below (in millions):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Technology	$	24.6	$	(16.4	)	$	8.2	8.6
Customer-based	338.2		(68.3		)	269.9		7.4
Other	10.7		(1.7		)	9.0		5.8
Balance as of December 31, 2016	$	373.5	$	(86.4	)	$	287.1	7.5

Intangible assets with a gross carrying value of $153.6 million became fully amortized in 2016 and are no longer included in the intangible asset gross carrying value or accumulated amortization as of December 31, 2016.

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Technology	$	31.1	$	(19.4	)	$	11.7	7.7
Customer-based	406.0		(172.4		)	233.6		8.8
Other	10.9		—			10.9		5.7
Balance as of December 31, 2015	$	448.0	$	(191.8	)	$	256.2	8.7

Estimated Annual Intangible Asset Amortization Expense

Excluding the impact of any future acquisitions, the Company’s estimated annual amortization expense for the five succeeding years is shown below (in millions):

Year	Expense
2017	$	40.2
2018	36.2
2019	35.7
2020	34.0
2021	32.2

Summary of Other Expense, Net

A summary of other expense, net is shown below (in millions):

For the year ended December 31,	2016			2015			2014
Other expense	$	42.2		$	71.4		$	82.4
Other income	(35.8		)	(2.8		)	(8.1		)
Other expense, net	$	6.4		$	68.6		$	74.3

Summary of Information Used to Compute Basic and Diluted Net Income Per Share

A summary of information used to compute basic net income per share attributable to Lear is shown below (in millions, except share and per share data):

For the year ended December 31,	2016		2015		2014
Net income attributable to Lear	$	975.1	$	745.5	$	672.4
Average common shares outstanding	72,345,436		76,754,270		80,187,516
Basic net income per share attributable to Lear	$	13.48	$	9.71	$	8.39

A summary of information used to compute diluted net income per share attributable to Lear is shown below (in millions, except share and per share data):

For the year ended December 31,	2016		2015		2014
Net income attributable to Lear	$	975.1	$	745.5	$	672.4
Average common shares outstanding	72,345,436		76,754,270		80,187,516
Dilutive effect of common stock equivalents	779,513		1,012,747		1,540,963
Average diluted shares outstanding	73,124,949		77,767,017		81,728,479
Diluted net income per share attributable to Lear	$	13.33	$	9.59	$	8.23