Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 29, 2013

Schedule of Condensed Balance Sheet

	June 29, 2013
		Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
		(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	154.6		$	0.1	$	686.4	$	—		$	841.1
Accounts receivable			65.8			425.9		1,976.3		—			2,468.0
Inventories			4.7			262.5		520.7		—			787.9
Other			137.7			71.5		486.2		—			695.4
Total current assets			362.8			760.0		3,669.6		—			4,792.4
LONG-TERM ASSETS:
Property, plant and equipment, net			91.4			302.6		1,087.3		—			1,481.3
Goodwill			23.5			401.0		320.6		—			745.1
Investments in subsidiaries			1,628.4			1,212.5		—		(2,840.9	)		—
Other			728.1			65.3		354.6		—			1,148.0
Total long-term assets			2,471.4			1,981.4		1,762.5		(2,840.9	)		3,374.4
		$	2,834.2		$	2,741.4	$	5,432.1	$	(2,840.9	)	$	8,166.8
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts		$	104.8		$	624.2	$	1,766.1	$	—		$	2,495.1
Accrued liabilities			113.4			142.0		842.4		—			1,097.8
Total current liabilities			218.2			766.2		2,608.5		—			3,592.9
LONG-TERM LIABILITIES:
Long-term debt			1,056.9			—		—		—			1,056.9
Intercompany accounts, net			(1,294.0	)		426.0		868.0		—			—
Other			183.8			245.7		297.2		—			726.7
Total long-term liabilities			(53.3	)		671.7		1,165.2		—			1,783.6
EQUITY:
Lear Corporation stockholders’ equity			2,669.3			1,303.5		1,537.4		(2,840.9	)		2,669.3
Noncontrolling interests			—			—		121.0		—			121.0
Equity			2,669.3			1,303.5		1,658.4		(2,840.9	)		2,790.3
Total liabilities and equity		$	2,834.2		$	2,741.4	$	5,432.1	$	(2,840.9	)	$	8,166.8

	December 31, 2012
	Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	481.4		$	0.1	$	920.7	$	—		$	1,402.2
Accounts receivable		47.7			358.4		1,634.6		—			2,040.7
Inventories		5.2			264.3		457.6		—			727.1
Other		162.9			70.2		470.4		—			703.5
Total current assets		697.2			693.0		3,483.3		—			4,873.5
LONG-TERM ASSETS:
Property, plant and equipment, net		91.5			273.3		1,038.3		—			1,403.1
Goodwill		23.5			400.8		322.2		—			746.5
Investments in subsidiaries		1,494.7			1,287.8		—		(2,782.5	)		—
Other		769.9			67.5		333.6		—			1,171.0
Total long-term assets		2,379.6			2,029.4		1,694.1		(2,782.5	)		3,320.6
Total assets	$	3,076.8		$	2,722.4	$	5,177.4	$	(2,782.5	)	$	8,194.1
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	114.3		$	555.2	$	1,563.5	$	—		$	2,233.0
Accrued liabilities		124.7			192.8		666.4		—			983.9
Total current liabilities		239.0			748.0		2,229.9		—			3,216.9
LONG-TERM LIABILITIES:
Long-term debt		626.3			—		—		—			626.3
Intercompany accounts, net		(1,471.3	)		447.6		1,023.7		—			—
Other		195.7			179.5		363.5		—			738.7
Total long-term liabilities		(649.3	)		627.1		1,387.2		—			1,365.0
EQUITY:
Lear Corporation stockholders’ equity		3,487.1			1,347.3		1,435.2		(2,782.5	)		3,487.1
Noncontrolling interests		—			—		125.1		—			125.1
Equity		3,487.1			1,347.3		1,560.3		(2,782.5	)		3,612.2
Total liabilities and equity	$	3,076.8		$	2,722.4	$	5,177.4	$	(2,782.5	)	$	8,194.1

Schedule of Condensed Income Statement

	For the Three Months Ended June 29, 2013
		Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
		(Unaudited; in millions)
Net sales		$	125.6		$	1,615.8		$	3,537.8		$	(1,166.1	)	$	4,113.1
Cost of sales			144.2			1,479.3			3,318.0			(1,166.1	)		3,775.4
Selling, general and administrative expenses			38.3			14.2			75.4			—			127.9
Amortization of intangible assets			0.4			1.2			7.0			—			8.6
Intercompany charges			0.3			0.2			(0.5	)		—			—
Interest expense			9.1			8.8			(0.5	)		—			17.4
Other intercompany (income) expense, net			(70.4	)		32.9			37.5			—			—
Other expense, net			1.8			0.3			8.2			—			10.3
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries			1.9			78.9			92.7			—			173.5
Provision for income taxes			4.2			51.4			(14.5	)		—			41.1
Equity in net income of affiliates			(0.7	)		(0.4	)		(8.8	)		—			(9.9	)
Equity in net income of subsidiaries			(138.9	)		(40.0	)		—			178.9			—
Consolidated net income			137.3			67.9			116.0			(178.9	)		142.3
Less: Net income attributable to noncontrolling interests			—			—			5.0			—			5.0
Net income attributable to Lear		$	137.3		$	67.9		$	111.0		$	(178.9	)	$	137.3
Consolidated comprehensive income		$	108.4		$	44.1		$	105.0		$	(143.8	)	$	113.7
Less: Comprehensive income attributable to noncontrolling interests			—			—			5.3			—			5.3
Comprehensive income attributable to Lear		$	108.4		$	44.1		$	99.7		$	(143.8	)	$	108.4

	For the Three Months Ended June 30, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	125.6		$	1,446.2		$	3,130.4		$	(1,037.2	)	$	3,665.0
Cost of sales		129.1			1,500.6			2,757.9			(1,037.2	)		3,350.4
Selling, general and administrative expenses		33.2			19.5			64.6			—			117.3
Amortization of intangible assets		0.4			0.5			6.4			—			7.3
Intercompany charges		0.8			0.6			(1.4	)		—			—
Interest expense		2.7			5.8			5.5			—			14.0
Other intercompany (income) expense, net		(89.3	)		(103.8	)		193.1			—			—
Other expense, net		(0.1	)		0.7			9.6			—			10.2
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		48.8			22.3			94.7			—			165.8
Provision for income taxes		3.2			0.8			27.8			—			31.8
Equity in net income of affiliates		(13.5	)		(1.5	)		(5.6	)		—			(20.6	)
Equity in net income of subsidiaries		(86.3	)		(49.6	)		—			135.9			—
Consolidated net income		145.4			72.6			72.5			(135.9	)		154.6
Less: Net income attributable to noncontrolling interests		—			—			9.2			—			9.2
Net income attributable to Lear	$	145.4		$	72.6		$	63.3		$	(135.9	)	$	145.4
Consolidated comprehensive income	$	67.2		$	68.4		$	(5.5	)	$	(55.1	)	$	75.0
Less: Comprehensive income attributable to noncontrolling interests		—			—			7.8			—			7.8
Comprehensive income attributable to Lear	$	67.2		$	68.4		$	(13.3	)	$	(55.1	)	$	67.2

	For the Six Months Ended June 29, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	247.2		$	3,143.5		$	6,975.1		$	(2,305.6	)	$	8,060.2
Cost of sales		297.3			2,866.2			6,552.2			(2,305.6	)		7,410.1
Selling, general and administrative expenses		78.7			31.9			146.9			—			257.5
Amortization of intangible assets		0.8			2.4			14.0			—			17.2
Intercompany charges		0.7			0.3			(1.0	)		—			—
Interest expense		24.1			12.1			(2.1	)		—			34.1
Other intercompany (income) expense, net		(125.1	)		64.1			61.0			—			—
Other expense, net		6.2			0.8			14.0			—			21.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(35.5	)		165.7			190.1			—			320.3
Provision for income taxes		(12.4	)		60.6			30.8			—			79.0
Equity in net income of affiliates		(0.7	)		(0.1	)		(17.1	)		—			(17.9	)
Equity in net income of subsidiaries		(268.2	)		(81.2	)		—			349.4			—
Consolidated net income		245.8			186.4			176.4			(349.4	)		259.2
Less: Net income attributable to noncontrolling interests		—			—			13.4			—			13.4
Net income attributable to Lear	$	245.8		$	186.4		$	163.0		$	(349.4	)	$	245.8
Consolidated comprehensive income	$	194.3		$	179.4		$	131.9		$	(297.2	)	$	208.4
Less: Comprehensive income attributable to noncontrolling interests		—			—			14.1			—			14.1
Comprehensive income attributable to Lear	$	194.3		$	179.4		$	117.8		$	(297.2	)	$	194.3

	For the Six Months Ended June 30, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	260.8		$	2,888.8		$	6,347.9		$	(2,188.5	)	$	7,309.0
Cost of sales		297.3			2,648.4			5,927.4			(2,188.5	)		6,684.6
Selling, general and administrative expenses		72.9			24.8			135.7			—			233.4
Amortization of intangible assets		0.8			0.5			12.9			—			14.2
Intercompany charges		3.1			1.0			(4.1	)		—			—
Interest expense		2.2			11.8			12.5			—			26.5
Other intercompany (income) expense, net		(187.8	)		123.8			64.0			—			—
Other expense, net		(1.1	)		0.5			11.1			—			10.5
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		73.4			78.0			188.4			—			339.8
Provision for income taxes		5.9			1.5			63.7			—			71.1
Equity in net income of affiliates		(17.6	)		(1.4	)		(11.3	)		—			(30.3	)
Equity in net income of subsidiaries		(194.4	)		(105.8	)		—			300.2			—
Consolidated net income		279.5			183.7			136.0			(300.2	)		299.0
Less: Net income attributable to noncontrolling interests		—			—			19.5			—			19.5
Net income attributable to Lear	$	279.5		$	183.7		$	116.5		$	(300.2	)	$	279.5
Consolidated comprehensive income	$	268.2		$	210.7		$	95.3		$	(287.4	)	$	286.8
Less: Comprehensive income attributable to noncontrolling interests		—			—			18.6			—			18.6
Comprehensive income attributable to Lear	$	268.2		$	210.7		$	76.7		$	(287.4	)	$	268.2

Schedule of Condensed Cash Flow Statement

	For the Six Months Ended June 29, 2013
		Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
		(Unaudited; in millions)
Net cash provided by operating activities		$	(3.5	)	$	143.0		$	125.9		$	—	$	265.4
Cash Flows from Investing Activities:
Additions to property, plant and equipment			(6.9	)		(58.5	)		(161.0	)		—		(226.4	)
Insurance proceeds			—			—			7.1			—		7.1
Other, net			46.9			0.1			(6.4	)		—		40.6
Net cash used in investing activities			40.0			(58.4	)		(160.3	)		—		(178.7	)
Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes			500.0			—			—			—		500.0
Repurchase of senior notes			(72.1	)		—			—			—		(72.1	)
Payment of debt issuance and other financing costs			(13.4	)		—			—			—		(13.4	)
Repurchase of common stock			(1,000.1	)		—			—			—		(1,000.1	)
Dividends paid to Lear Corporation stockholders			(29.6	)		—			—			—		(29.6	)
Dividends paid to noncontrolling interests			—			—			(14.8	)		—		(14.8	)
Other			(2.7	)		—			(6.6	)		—		(9.3	)
Change in intercompany accounts			254.6			(84.6	)		(170.0	)		—		—
Net cash used in financing activities			(363.3	)		(84.6	)		(191.4	)		—		(639.3	)
Effect of foreign currency translation			—			—			(8.5	)		—		(8.5	)
Net Change in Cash and Cash Equivalents			(326.8	)		—			(234.3	)		—		(561.1	)
Cash and Cash Equivalents as of Beginning of Period			481.4			0.1			920.7			—		1,402.2
Cash and Cash Equivalents as of End of Period		$	154.6		$	0.1		$	686.4		$	—	$	841.1

	For the Six Months Ended June 30, 2012
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	30.5		$	126.1		$	3.2		$	—	$	159.8
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(6.5	)		(37.5	)		(136.4	)		—		(180.4	)
Insurance proceeds		—			—			4.5					4.5
Cash paid for acquisitions, net of cash acquired		(243.9	)		—			—			—		(243.9	)
Other, net		(1.4	)		3.8			(4.5	)		—		(2.1	)
Net cash used in investing activities		(251.8	)		(33.7	)		(136.4	)		—		(421.9	)
Cash Flows from Financing Activities:
Repurchase of common stock		(122.5	)		—			—			—		(122.5	)
Dividends paid to Lear Corporation stockholders		(27.6	)		—			—			—		(27.6	)
Dividends paid to noncontrolling interests		—			—			(4.3	)		—		(4.3	)
Other		2.0			—			—			—		2.0
Change in intercompany accounts		32.4			(46.9	)		14.5			—		—
Net cash used in financing activities		(115.7	)		(46.9	)		10.2			—		(152.4	)
Effect of foreign currency translation		—			—			(7.4	)		—		(7.4	)
Net Change in Cash and Cash Equivalents		(337.0	)		45.5			(130.4	)		—		(421.9	)
Cash and Cash Equivalents as of Beginning of Period		820.3			0.1			933.9			—		1,754.3
Cash and Cash Equivalents as of End of Period	$	483.3		$	45.6		$	803.5		$	—	$	1,332.4

Long-Term Debt of Lear and Guarantors

Long-Term Debt of Lear and the Guarantors — A summary of long-term debt of Lear and the Guarantors on a combined basis is shown below (in millions):

	June 29, 2013		December 31, 2012
Senior notes	$	1,056.9	$	626.3