Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Inventories

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

December 31,	2019			2018
Raw materials	$	906.3		$	859.4
Work-in-process	107.0			104.6
Finished goods	380.4			346.0
Reserves	(135.5		)	(113.2		)
Inventories	$	1,258.2		$	1,196.8

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,	2019		2018
Current	$	157.2	$	160.9
Long-term	113.8		80.4
Recoverable customer E&D and tooling	$	271.0	$	241.3

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,	2019			2018
Land	$	113.1		$	116.8
Buildings and improvements	831.3			809.3
Machinery and equipment	3,844.1			3,463.3
Construction in progress	382.4			389.3
Total property, plant and equipment	5,170.9			4,778.7
Less – accumulated depreciation	(2,466.7		)	(2,180.6		)
Net property, plant and equipment	$	2,704.2		$	2,598.1

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, 2019, is shown below (in millions):

	Seating			E-Systems			Total
Balance as of December 31, 2017	$	1,274.4		$	126.9		$	1,401.3
Affiliate transaction	—			22.4			22.4
Foreign currency translation and other	(30.1		)	11.7			(18.4		)
Balance as of December 31, 2018	1,244.3			161.0			1,405.3
Acquisition	—			219.0			219.0
Foreign currency translation and other	(8.9		)	(1.1		)	(10.0		)
Balance as of December 31, 2019	$	1,235.4		$	378.9		$	1,614.3

Summary of Finite-Lived Intangible Assets

A summary of intangible assets as of December 31, 2019 and 2018, is shown below (in millions):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Amortized intangible assets:
Customer-based	$	531.9	$	(203.0	)	$	328.9	11.6
Licensing agreements	75.0		(10.2		)	64.8		5.0
Technology	35.0		(15.9		)	19.1		7.0
Other	1.4		(1.3		)	0.1		2.5
	$	643.3	$	(230.4	)	$	412.9	10.5
Unamortized intangible assets:
In-process research and development	10.8		—			10.8
Balance as of December 31, 2019	$	654.1	$	(230.4	)	$	423.7

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Amortized intangible assets:
Customer-based	$	533.4	$	(156.3	)	$	377.1	11.6
Technology	20.1		(11.8		)	8.3		8.5
Other	1.4		(1.1		)	0.3		2.5
	$	554.9	$	(169.2	)	$	385.7	11.5
Unamortized intangible assets:
In-process research and development	10.8		—			10.8
Balance as of December 31, 2018	$	565.7	$	(169.2	)	$	396.5

Summary of Indefinite-Lived Intangible Assets

A summary of intangible assets as of December 31, 2019 and 2018, is shown below (in millions):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (years)
Amortized intangible assets:
Customer-based	$	531.9	$	(203.0	)	$	328.9	11.6
Licensing agreements	75.0		(10.2		)	64.8		5.0
Technology	35.0		(15.9		)	19.1		7.0
Other	1.4		(1.3		)	0.1		2.5
	$	643.3	$	(230.4	)	$	412.9	10.5
Unamortized intangible assets:
In-process research and development	10.8		—			10.8
Balance as of December 31, 2019	$	654.1	$	(230.4	)	$	423.7

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
2020	$	66.2
2021	64.5
2022	63.7
2023	62.1
2024	46.8

Schedule of Accrued Liabilities

A summary of accrued liabilities as of December 31, 2019 and 2018, is shown below (in millions):

December 31,	2019		2018
Compensation and employee benefits	$	319.2	$	321.2
Income and other taxes payable	256.6		279.3
Restructuring	157.7		108.7
Current portion of lease obligations	113.9		—
Other	963.8		905.8
Accrued liabilities	$	1,811.2	$	1,615.0

Summary of Other (Income) Expense, Net

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

For the year ended December 31,	2019			2018			2017
Other expense	$	52.2		$	43.8		$	57.2
Other income	(27.6		)	(12.2		)	(61.3		)
Other (income) expense, net	$	24.6		$	31.6		$	(4.1	)

Summary 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 available to Lear common stockholders is shown below (in millions, except share and per share data):

For the year ended December 31,	2019		2018			2017
Net income attributable to Lear	$	753.6	$	1,149.8		$	1,313.4
Redeemable noncontrolling interest adjustment	35.9		(10.4		)	(25.5		)
Net income available to Lear common stockholders	$	789.5	$	1,139.4		$	1,287.9
Average common shares outstanding	61,697,192		65,672,164			68,542,363
Dilutive effect of common stock equivalents	226,336		489,652			735,618
Average diluted shares outstanding	61,923,528		66,161,816			69,277,981
Basic net income per share available to Lear common stockholders	$	12.80	$	17.35		$	18.79
Diluted net income per share available to Lear common stockholders	$	12.75	$	17.22		$	18.59