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Document and Entity Information - USD ($)	3 Months Ended
Document and Entity Information - USD ($)	Apr. 02, 2011	Apr. 22, 2011	Jul. 03, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	LEAR CORP
Entity Central Index Key	0000842162
Document Type	10-Q
Document Period End Date	Apr. 02, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,072,697,530
Entity Common Stock, Shares Outstanding		105,139,704

Condensed Consolidated Balance Sheets - USD ($)
$ in Millions

Apr. 02, 2011

Dec. 31, 2010

CURRENT ASSETS:

Cash and cash equivalents

$ 1,707.1

$ 1,654.1

Accounts receivable

2,258.4

1,758.4

Inventories

627.0

554.2

Other

458.1

418.8

Total current assets

5,050.6

4,385.5

LONG-TERM ASSETS:

Property, plant and equipment, net

1,044.8

994.7

Goodwill

642.0

614.6

Other

625.6

626.3

Total long-term assets

2,312.4

2,235.6

Total Assets

7,363.0

6,621.1

CURRENT LIABILITIES:

Short-term borrowings

3.6

4.1

Accounts payable and drafts

2,246.7

1,838.4

Accrued liabilities

1,107.2

976.0

Total current liabilities

3,357.5

2,818.5

LONG-TERM LIABILITIES:

Long-term debt

695.0

694.9

Other

546.8

538.9

Total long-term liabilities

1,241.8

1,233.8

EQUITY:

Series A convertible preferred stock, 100,000,000 shares authorized; 10,896,250 shares issued as of April 2, 2011 and December 31, 2010; and no shares outstanding as of April 2, 2011 and December 31, 2010

0.0

Common stock, $0.01 par value, 300,000,000 shares authorized; 105,606,842 and 105,498,880 shares issued as of April 2, 2011 and December 31, 2010, respectively (1)

^[1]

1.1

Additional paid-in capital, including warrants to purchase common stock

2,125.1

2,116.0

Common stock held in treasury, 869,980 and 322,130 shares as of April 2, 2011 and December 31, 2010, respectively, at cost (1)

^[1]

(41.8)

(13.4)

Retained earnings

577.1

434.5

Accumulated other comprehensive loss

(6.2)

(78.0)

Lear Corporation stockholders' equity

2,655.3

2,460.2

Noncontrolling interests

108.4

108.6

Equity

2,763.7

2,568.8

Total Liabilities and Equity

$ 7,363.0

$ 6,621.1

[1]	Share data as of December 31, 2010, has been retroactively adjusted to reflect the two-for-one stock split described in Note 13, "Comprehensive Income (Loss) and Equity," to these condensed consolidated financial statements.

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 02, 2011	Dec. 31, 2010
EQUITY:
Series A convertible preferred stock, shares authorized	100,000,000	100,000,000
Series A convertible preferred stock, shares issued	10,896,250	10,896,250
Series A convertible preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	105,606,842	105,498,880
Treasury stock, shares	869,980	322,130

Condensed Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions

3 Months Ended

Apr. 02, 2011

Apr. 03, 2010

Condensed Consolidated Statements of Income [Abstract]

Net sales

$ 3,511.7

$ 2,938.5

Cost of sales

3,188.3

2,683.7

Selling, general and administrative expenses

117.5

127.9

Amortization of intangible assets

6.8

6.7

Interest expense

3.3

19.0

Other (income) expense, net

(6.9)

21.0

Consolidated income before provision for income taxes

202.7

80.2

Provision for income taxes

40.0

6.4

Consolidated net income

162.7

73.8

Less: Net income attributable to noncontrolling interests

6.7

7.7

Net income attributable to Lear

$ 156.0

$ 66.1

Basic net income per share attributable to Lear (1)

^[1]

$ 1.48

$ 0.68

Diluted net income per share attributable to Lear (1)

^[1]

$ 1.44

$ 0.61

[1]	2010 per share data has been retroactively adjusted to reflect the two-for-one stock split described in Note 13, "Comprehensive Income (Loss) and Equity," to these condensed consolidated financial statements.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2011	Apr. 03, 2010
Cash Flows from Operating Activities:
Consolidated net income	$ 162.7	$ 73.8
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	61.5	58.5
Net change in recoverable customer engineering, development and tooling	15.3	2.0
Net change in working capital items	(89.2)	(99.5)
Other, net	3.9	4.1
Net cash provided by operating activities	154.2	38.9
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(70.5)	(34.8)
Other, net	(6.6)	4.1
Net cash used in investing activities	(77.1)	(30.7)
Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes		694.5
First lien credit agreement repayments		(375.0)
Second lien credit agreement repayments		(550.0)
Other long-term debt repayments, net	(1.1)	(1.7)
Short-term debt borrowings (repayments), net	(0.5)	5.6
Payment of debt issuance costs		(16.3)
Repurchase of common stock	(27.4)
Dividends paid to Lear Corporation stockholders	(12.8)
Dividends paid to noncontrolling interests	(10.0)
Other	(1.4)	0.4
Net cash used in financing activities	(53.2)	(242.5)
Effect of foreign currency translation	29.1	(19.3)
Net Change in Cash and Cash Equivalents	53.0	(253.6)
Cash and Cash Equivalents as of Beginning of Period	1,654.1	1,554.0
Cash and Cash Equivalents as of End of Period	1,707.1	1,300.4
Changes in Working Capital Items:
Accounts receivable	(448.4)	(418.3)
Inventories	(57.8)	(60.0)
Accounts payable	343.0	291.9
Accrued liabilities and other	74.0	86.9
Net change in working capital items	(89.2)	(99.5)
Supplementary Disclosure:
Cash paid for interest	28.2	29.1
Cash paid for income taxes	$ 10.2	$ 5.2

Restructuring Activities

3 Months Ended

Apr. 02, 2011

Restructuring Activities [Abstract]

Restructuring Activities

(2) Restructuring Activities

In 2005, the Company initiated a multi-year operational restructuring strategy to (i) eliminate excess capacity and lower the operating costs of the Company, (ii) streamline the Company’s organizational structure and reposition its business for improved long-term profitability and (iii) better align the Company’s manufacturing footprint with the changing needs of its customers. In light of industry conditions and customer announcements, the Company expanded this strategy, and through the end of 2010, the Company incurred pretax restructuring costs of $736.1 million. The Company expects elevated restructuring actions and related investments to continue in 2011 and to moderate thereafter.

Restructuring costs include employee termination benefits, fixed asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. These incremental costs principally include equipment and personnel relocation costs. Although each restructuring action is unique, based upon the nature of the Company’s operations, the Company expects that the allocation of future restructuring costs will be consistent with historical experience. The Company also incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company’s consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Generally, charges are recorded as restructuring actions are approved and/or implemented.

In the first quarter of 2011, the Company recorded charges of $1.6 million in connection with its restructuring actions. These charges consist of $1.5 million recorded as cost of sales and $0.1 million recorded as selling, general and administrative expenses. The 2011 charges consist of employee termination benefits of $0.4 million and other related costs of $1.2 million. Employee termination benefits were recorded based on existing union and employee contracts, statutory requirements and completed negotiations.

A summary of 2011 activity is shown below (in millions):



	Accrual as of		2011		Utilization					Accrual as of
	January 1, 2011		Charges		Cash			Non-cash		April 2, 2011
Employee termination benefits	$	38.4	$	0.4	$	(4.7	)	$	—	$	34.1
Contract termination costs		3.7		—		—			—		3.7
Other related costs		—		1.2		(1.2	)		—		—

Total	$	42.1	$	1.6	$	(5.9	)	$	—	$	37.8

Pre-Production Costs Related to Long-Term Supply Agreements

3 Months Ended

Apr. 02, 2011

Pre-Production Costs Related to Long-Term Supply Agreements [Abstract]

Pre-Production Costs Related to Long-Term Supply Agreements

(4) Pre-Production Costs Related to Long-Term Supply Agreements

The Company incurs pre-production engineering and development (“E&D”) and tooling costs related to the products produced for its customers under long-term supply agreements. The Company expenses all pre-production E&D costs for which reimbursement is not contractually guaranteed by the customer. In addition, the Company expenses all pre-production tooling costs related to customer-owned tools for which reimbursement is not contractually guaranteed by the customer or for which the Company does not have a non-cancelable right to use the tooling. During the first quarters of 2011 and 2010, the Company capitalized $43.0 million and $31.3 million, respectively, of pre-production E&D costs for which reimbursement is contractually guaranteed by the customer. In addition, during the first quarters of 2011 and 2010, the Company capitalized $38.7 million and $33.1 million, respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the Company has a non-cancelable right to use the tooling. These amounts are included in other current and long-term assets in the accompanying condensed consolidated balance sheets. During the first quarters of 2011 and 2010, the Company collected $96.7 million and $69.3 million, respectively, of cash related to E&D and tooling costs.

The classification of recoverable customer engineering, development and tooling costs related to long-term supply agreements is shown below (in millions):


	April 2,		December 31,
	2011		2010
Current	$	66.0	$	77.9
Long-term		76.2		75.3

Recoverable customer engineering, development and tooling	$	142.2	$	153.2

Long-Term Debt

3 Months Ended

Apr. 02, 2011

Long-Term Debt [Abstract]

Long-Term Debt

(7) Long-Term Debt

A summary of long-term debt and the related weighted average interest rates is shown below (in millions):


	April 2, 2011					December 31, 2010
	Long-Term		Weighted Average			Long-Term		Weighted Average
	Debt		Interest Rate			Debt		Interest Rate
7.875% Senior Notes due 2018	$	347.7		8.00	%	$	347.7		8.00	%
8.125% Senior Notes due 2020		347.3		8.25	%		347.2		8.25	%

Long-term debt	$	695.0				$	694.9

Senior Notes

The Company’s long-term debt consists of $350 million in aggregate principal amount at maturity of senior unsecured notes due 2018 with a stated coupon rate of 7.875% (the “2018 Notes”) and $350 million in aggregate principal amount at maturity of senior unsecured notes due 2020 with a stated coupon rate of 8.125% (the “2020 Notes” and together with the 2018 Notes, the “Notes”). The 2018 Notes were priced at 99.276% of par, resulting in a yield to maturity of 8.00%, and the 2020 Notes were priced at 99.164% of par, resulting in a yield to maturity of 8.25%. The Notes were issued on March 26, 2010, and the net proceeds, together with existing cash on hand, were used to repay in full an aggregate amount of $925.0 million of term loans provided under the Company’s first and second lien credit agreements.

Interest is payable on the Notes on March 15 and September 15 of each year, beginning September 15, 2010. The 2018 Notes mature on March 15, 2018, and the 2020 Notes mature on March 15, 2020.

The Notes are senior unsecured obligations. Obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of Lear’s domestic subsidiaries, which are directly or indirectly 100% owned by Lear (see Note 18, “Supplemental Guarantor Condensed Consolidating Financial Statements”).

The indenture governing the Notes contains restrictive covenants that, among other things, limit the ability of the Company and its subsidiaries to: (i) incur additional debt, (ii) pay dividends and make other restricted payments, (iii) create or permit certain liens, (iv) issue or sell capital stock of the Company’s restricted subsidiaries, (v) use the proceeds from sales of assets and subsidiary stock, (vi) create or permit restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other distributions to the Company, (vii) enter into transactions with affiliates, (viii) enter into sale and leaseback transactions and (ix) consolidate or merge or sell all or substantially all of the Company’s assets. The foregoing limitations are subject to exceptions as set forth in the Notes. In addition, if in the future the Notes have an investment grade credit rating from both Moody’s Investors Service and Standard & Poor’s Ratings Services and no default has occurred and is continuing, certain of these covenants will, thereafter, no longer apply to the Notes for so long as the Notes have an investment grade credit rating by both rating agencies.

The indenture governing the Notes contains customary events of default that include, among other things (subject in certain cases to customary grace and cure periods): (i) non-payment of principal or interest, (ii) breach of certain covenants contained in the indenture governing the Notes, (iii) failure to pay certain other indebtedness or the acceleration of certain other indebtedness prior to maturity if the total amount of such indebtedness unpaid or accelerated exceeds $100 million or its foreign currency equivalent, (iv) the rendering of a final and nonappealable judgment for the payment of money in excess of $100 million or its foreign currency equivalent that is not timely paid or its enforcement stayed, (v) the failure of the guarantees by the subsidiary guarantors to be in full force and effect in all material respects and (vi) certain events of bankruptcy or insolvency. Generally, if an event of default occurs (subject to certain exceptions), the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes of any series may declare all of the Notes of such series to be due and payable immediately.

As of April 2, 2011, the Company was in compliance with all covenants under the indenture governing the Notes.

Revolving Credit Facility

The Company’s amended and restated first lien credit agreement provides for a $110 million revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility permits borrowings for general corporate and working capital purposes and the issuance of letters of credit. The commitments under the Revolving Credit Facility expire on March 18, 2013. As of April 2, 2011, there were no borrowings outstanding under the Revolving Credit Facility.

Obligations under the Revolving Credit Facility are secured on a first priority basis by a lien on substantially all of the U.S. assets of Lear and its domestic subsidiaries, as well as 100% of the stock of Lear’s domestic subsidiaries and 65% of the stock of certain of Lear’s foreign subsidiaries. In addition, obligations under the Revolving Credit Facility are guaranteed, jointly and severally, on a first priority basis, by certain of Lear’s domestic subsidiaries, which are directly or indirectly 100% owned by Lear (see Note 18, “Supplemental Guarantor Condensed Consolidating Financial Statements”).

Advances under the Revolving Credit Facility bear interest at a variable rate per annum equal to (i) LIBOR, as adjusted for certain statutory reserves, plus an adjustable margin based on the Company’s corporate rating, 3.25% as of the date of this Report, payable on the last day of each applicable interest period but in no event less frequently than quarterly, or (ii) the Adjusted Base Rate (as defined in the first lien credit agreement) plus an adjustable margin based on the Company’s corporate rating, 2.25% as of the date of this Report, payable quarterly.

The Revolving Credit Facility contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage and minimum interest coverage, (ii) limitations on the amount of capital expenditures, (iii) limitations on fundamental changes involving the Company or its subsidiaries and (iv) limitations on indebtedness and liens. As of April 2, 2011, the Company was in compliance with all covenants under the agreement governing the Revolving Credit Facility.

As discussed above, in 2010, the Company used the net proceeds from the issuance of the Notes, together with existing cash on hand, to repay in full all amounts outstanding under the term loans provided under the Company’s first and second lien credit agreements. In connection with the issuance of the Notes, the repayment of the term loans and the related amendments to the first lien credit agreement, the Company recognized a loss on the extinguishment of debt of $11.8 million, resulting from the write-off of unamortized debt issuance costs, and paid debt issuance costs of $16.3 million in the first quarter of 2010. The debt issuance costs are being amortized over the life of the related debt. The loss on the extinguishment of debt is recorded in other (income) expense, net. See Note 10, “Other (Income) Expense, Net.”

For further information on the Notes and the Revolving Credit Facility, see Note 8, “Long-Term Debt,” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Pension and Other Postretirement Benefit Plans

3 Months Ended

Apr. 02, 2011

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

(8) Pension and Other Postretirement Benefit Plans

Net Periodic Pension and Other Postretirement Benefit Cost

The components of the Company’s net periodic pension benefit cost are shown below (in millions):


	Three Months Ended
	April 2, 2011						April 3, 2010
	U.S.			Foreign			U.S.			Foreign
Service cost	$	0.7		$	1.8		$	0.8		$	1.3
Interest cost		5.8			6.6			5.8			6.6
Expected return on plan assets		(6.6	)		(8.1	)		(5.9	)		(7.8	)
Amortization of actuarial loss		—			0.1			—			—
Settlement gain		(0.1	)		—			(0.1	)		—

Net periodic benefit cost	$	(0.2	)	$	0.4		$	0.6		$	0.1

The components of the Company’s net periodic other postretirement benefit cost are shown below (in millions):


	Three Months Ended
	April 2, 2011				April 3, 2010
	U.S.		Foreign		U.S.		Foreign
Service cost	$	0.1	$	0.3	$	0.1	$	0.2
Interest cost		1.3		1.0		1.4		0.8
Amortization of actuarial loss		0.1		—		—		—

Net periodic benefit cost	$	1.5	$	1.3	$	1.5	$	1.0

Contributions

Employer contributions to the Company’s domestic and foreign pension plans for the three months ended April 2, 2011, were $0.1 million, in aggregate. Based on minimum funding requirements, the Company expects total required contributions of $10 to $15 million to its domestic and foreign pension plans, in aggregate, in 2011. The Company may elect to make contributions in excess of minimum funding requirements in response to investment performance or changes in interest rates or when the Company believes that it is financially advantageous to do so and based on its other cash requirements.

Employer contributions to the Company’s defined contribution retirement program for its salaried employees, determined as a percentage of each covered employee’s eligible compensation for the three months ended April 2, 2011, were $2.0 million. The Company expects total contributions of approximately $13 million to this program in 2011.

New Legislation

In March 2010, the Patient Protection and Affordable Care Act and the Health Care Education and Affordability Reconciliation Act (the “Acts”) were signed into law. The Acts contain provisions which impact the Company’s accounting for retiree medical benefits. The impact of these provisions was not significant and was included in the determination of the Company’s other postretirement benefit plan obligation as of December 31, 2010. The Company will continue to assess the provisions of the Acts and may consider plan amendments to respond to the provisions of the Acts.

Income Taxes	3 Months Ended
Income Taxes	Apr. 02, 2011
Income Taxes [Abstract]
Income Taxes	(11) Income Taxes The provision for income taxes was $40.0 million in the first quarter of 2011, representing an effective tax rate of 19.7% on pretax income of $202.7 million, as compared to $6.4 million in the first quarter of 2010, representing an effective tax rate of 8.0% on pretax income of $80.2 million. In the first quarter of 2011, the provision for income taxes was primarily impacted by the mix of earnings among tax jurisdictions. The provision was also impacted by a portion of the Company’s restructuring charges and other expenses, for which no tax benefit was provided as the charges were incurred in certain countries for which no tax benefit is likely to be realized due to a history of operating losses in those countries. In the first quarter of 2010, the provision for income taxes was impacted by the mix of earnings among tax jurisdictions, as well as a tax benefit of $17.7 million, including interest, related to reductions in recorded tax reserves. The provision was also impacted by a portion of the Company’s restructuring charges and other expenses, for which no tax benefit was provided as the charges were incurred in certain countries for which no tax benefit is likely to be realized due to a history of operating losses in those countries. Excluding these items, the effective tax rate in the first quarters of 2011 and 2010 approximated the U.S. federal statutory income tax rate of 35% adjusted for income taxes on foreign earnings, losses and remittances, foreign and U.S. valuation allowances, tax credits, income tax incentives and other permanent items. Further, the Company’s current and future provision for income taxes is significantly impacted by the initial recognition of and changes in valuation allowances in certain countries, particularly the United States. The Company intends to maintain these allowances until it is more likely than not that the deferred tax assets will be realized. The Company’s future income taxes will include no tax benefit with respect to losses incurred and no tax expense with respect to income generated in these countries until the respective valuation allowances are eliminated. Accordingly, income taxes are impacted by the U.S. and foreign valuation allowances and the mix of earnings among jurisdictions. The Company was profitable in 2010 and 2009 in several international jurisdictions for which it has provided a full valuation allowance against the deferred tax assets. If the Company continues to experience sustained levels of profitability in these jurisdictions, its assessment of the need for a full valuation allowance with respect to the deferred tax assets in those jurisdictions could change. Any reduction to a valuation allowance will reduce the Company’s tax expense in the quarter in which such reduction occurs. In connection with the Company’s emergence from Chapter 11 bankruptcy proceedings, the Company increased its U.S. net operating loss carryforwards and retained its capital loss and tax credit carryforwards (collectively, the “Tax Attributes”). However, Internal Revenue Code (“IRC”) Sections 382 and 383 provide an annual limitation with respect to the ability of a corporation to utilize its Tax Attributes, as well as certain built-in-losses, against future U.S. taxable income in the event of a change in ownership. The Company’s emergence from Chapter 11 bankruptcy proceedings is considered a change in ownership for purposes of IRC Section 382. The limitation under the IRC is based on the value of the corporation as of the emergence date. As a result, the Company’s future U.S. taxable income may not be fully offset by the Tax Attributes if such income exceeds its annual limitation, and the Company may incur a tax liability with respect to such income. In addition, subsequent changes in ownership for purposes of the IRC could further limit the Company’s ability to use its Tax Attributes. The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign tax authorities. During the next twelve months, it is reasonably possible that, as a result of audit settlements, the conclusion of current examinations and the expiration of the statute of limitations in several jurisdictions, the Company may decrease the amount of its gross unrecognized tax benefits, excluding interest and penalties, by approximately $11.1 million. The gross unrecognized tax benefits subject to potential decrease involve issues related to transfer pricing and various other tax items in several jurisdictions. However, as a result of ongoing examinations, tax proceedings in certain countries, additions to the gross unrecognized tax benefits for positions taken and interest and penalties, if any, arising in the future, it is not possible to estimate the potential net increase or decrease to the Company’s gross unrecognized tax benefits during the next twelve months.

Net Income Per Share Attributable to Lear

3 Months Ended

Apr. 02, 2011

Net Income Per Share Attributable to Lear [Abstract]

Net Income Per Share Attributable to Lear

(12) Net Income Per Share Attributable to Lear

Basic net income per share attributable to Lear was computed using the two-class method by dividing net income attributable to Lear, after deducting undistributed earnings allocated to participating securities, by the average number of common shares outstanding during the period. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement, such as those common shares contemplated as part of the Company’s emergence from Chapter 11 bankruptcy proceedings, are considered common shares outstanding and are included in the computation of basic net income per share attributable to Lear. The Company’s preferred shares that were outstanding during a portion of 2010 were considered participating securities. There were no preferred shares outstanding during 2011 as all of the Company’s remaining preferred shares outstanding were converted into shares of common stock on November 10, 2010. For the three months ended April 3, 2010, average participating securities outstanding were 6,990,210 (such securities were convertible into 13,980,420 shares of common stock after giving effect to the two-for-one stock split described in Note 13, “Comprehensive Income (Loss) and Equity”). A summary of information used to compute basic net income per share attributable to Lear is shown below (in millions, except share data):


	Three Months Ended
	April 2, 2011		April 3, 2010

Net income attributable to Lear	$	156.0	$	66.1
Less: Undistributed earnings allocated to participating securities		—		(9.5	)

Net income available to Lear common shareholders	$	156.0	$	56.6


Average common shares outstanding ⁽¹⁾		105,060,428		83,761,954


Basic net income per share attributable to Lear ⁽¹⁾	$	1.48	$	0.68


⁽¹⁾		2010 share and per share data has been retroactively adjusted to reflect the two-for-one stock split described in Note 13, “Comprehensive Income (Loss) and Equity.”

Diluted net income per share attributable to Lear was computed using the treasury stock method by dividing net income attributable to Lear by the average number of common shares outstanding, including the dilutive effect of common stock equivalents using the average share price during the period. A summary of information used to compute diluted net income per share attributable to Lear is shown below (in millions, except share data):


	Three Months Ended
	April 2, 2011		April 3, 2010

Net income attributable to Lear	$	156.0	$	66.1

Average common shares outstanding ⁽¹⁾		105,060,428		83,761,954
Dilutive effect of common stock equivalents ⁽¹⁾		3,181,911		24,239,570


Average diluted shares outstanding ⁽¹⁾		108,242,339		108,001,524


Diluted net income per share attributable to Lear ⁽¹⁾	$	1.44	$	0.61


⁽¹⁾		2010 share and per share data has been retroactively adjusted to reflect the two-for-one stock split described in Note 13, “Comprehensive Income (Loss) and Equity.”

The Company’s participating securities were convertible into common stock on a one-for-one basis and participated ratably with common stock on dividends. Accordingly, diluted net income per share attributable to Lear computed using the two-class method produced the same result.

Comprehensive Income (Loss) and Equity

3 Months Ended

Apr. 02, 2011

Comprehensive Income (Loss) and Equity [Abstract]

Comprehensive Income (Loss) and Equity

(13) Comprehensive Income (Loss) and Equity

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as all changes in the Company’s net assets except changes resulting from transactions with stockholders. It differs from net income in that certain items recorded in equity are included in comprehensive income (loss).

A summary of comprehensive income (loss) and reconciliations of equity, Lear Corporation stockholders’ equity and noncontrolling interests for the three months ended April 2, 2011 and April 3, 2010, are shown below (in millions):


	Three Months Ended April 2, 2011									Three Months Ended April 3, 2010
				Attributable									Attributable
				to Lear									to Lear
				Corporation			Non-controlling						Corporation			Non-controlling
	Equity			Stockholders			Interests			Equity			Stockholders			Interests
Beginning equity balance	$	2,568.8		$	2,460.2		$	108.6		$	2,181.8		$	2,089.1		$	92.7
Stock-based compensation transactions		8.0			8.0			—			4.8			4.8			—
Issuance of common stock		0.1			0.1			—			—			—			—
Repurchase of common stock		(27.4	)		(27.4	)		—			—			—			—
Dividends declared to Lear Corporation stockholders		(13.4	)		(13.4	)		—			—			—			—
Dividends paid to noncontrolling interests		(10.0	)		—			(10.0	)		—			—			—
Transactions with affiliates		2.4			—			2.4			6.5			—			6.5
Comprehensive income:
Net income		162.7			156.0			6.7			73.8			66.1			7.7
Other comprehensive income (loss), net of tax:
Defined benefit plan adjustments		0.1			0.1			—			0.1			0.1			—
Derivative instruments and hedging activities		4.7			4.7			—			14.3			14.3			—
Foreign currency translation adjustment		67.7			67.0			0.7			(40.0	)		(39.7	)		(0.3	)

Other comprehensive income (loss)		72.5			71.8			0.7			(25.6	)		(25.3	)		(0.3	)

Comprehensive income		235.2			227.8			7.4			48.2			40.8			7.4

Ending equity balance	$	2,763.7		$	2,655.3		$	108.4		$	2,241.3		$	2,134.7		$	106.6

Lear Corporation Stockholders’ Equity

Common Stock Share Repurchase Program — On February 16, 2011, the Company’s Board of Directors authorized a three year, $400 million common stock share repurchase program. Under this program, the Company will repurchase shares of common stock from time to time in open market or privately negotiated transactions at prices, times and amounts to be determined by the Company. The common stock repurchase authorization expires on February 16, 2014. In the first quarter of 2011, the Company repurchased 528,998 shares of its outstanding common stock (share amounts have been retroactively adjusted to reflect the two-for-one stock split discussed below) at an average purchase price of $51.84 per share, including commissions, for an aggregate purchase price of $27.4 million, and may repurchase an additional $372.6 million in shares of its outstanding common stock under this program. The extent to which the Company will repurchase its outstanding common stock and the timing of such repurchases will depend upon its financial condition, prevailing market conditions, alternative uses of capital and other factors. In addition, the Company’s existing credit facility and bond indentures place certain limitations on the repurchase of common shares.

In addition to shares repurchased under the Company’s common stock share repurchase program described above, the Company classified shares withheld from the settlement of the Company’s restricted stock unit awards to cover minimum tax withholding requirements as common stock held in treasury in the accompanying condensed consolidated balance sheets as of April 2, 2011 and December 31, 2010.

Stock Split — On February 16, 2011, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock. On March 17, 2011, as a result of the stock split, stockholders of record as of the close of business on March 4, 2011, received one additional share of common stock for every one share of the common stock held by the stockholders of record. The additional shares of common stock were distributed on March 17, 2011. In addition, the Company recorded a transfer from additional paid-in-capital to common stock of $0.5 million, representing $0.01 par value of each share of common stock issued as a result of the stock split. Except as otherwise expressly stated, all issued common stock shares and per share amounts presented in the accompanying condensed consolidated financial statements have been retroactively adjusted to reflect the stock split for all periods presented.

Quarterly Dividend — On February 16, 2011, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock, on a pre-split basis. In the first quarter of 2011, declared dividends totaled $13.4 million, of which $12.8 million was paid on March 16, 2011, to shareholders of record at the close of business on March 4, 2011. Dividends payable on common shares to be distributed under the Company’s stock-based compensation program and common shares contemplated as part of the Company’s emergence from Chapter 11 bankruptcy proceedings will be paid when such common shares are distributed.

Noncontrolling Interests

The acquisition of a controlling interest in an affiliate previously accounted for under the equity method in the first quarter of 2011, and the sale of noncontrolling interests in two previously wholly owned subsidiaries in the first quarter of 2010 have been included in transactions with affiliates in the above table.

Legal and Other Contingencies

3 Months Ended

Apr. 02, 2011

Legal and Other Contingencies [Abstract]

Legal and Other Contingencies

(14) Legal and Other Contingencies

As of April 2, 2011 and December 31, 2010, the Company had recorded reserves for pending legal disputes, including commercial disputes and other matters, of $20.1 million and $23.4 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically exclude the cost of legal representation. Product liability and warranty reserves are recorded separately from legal reserves, as described below.

Commercial Disputes

The Company is involved from time to time in legal proceedings and claims, including, without limitation, commercial or contractual disputes with its customers, suppliers and competitors. These disputes vary in nature and are usually resolved by negotiations between the parties.

On January 26, 2004, the Company filed a patent infringement lawsuit against Johnson Controls Inc. and Johnson Controls Interiors LLC (together, the “JCI Parties”) in the U.S. District Court for the Eastern District of Michigan alleging that the JCI Parties’ garage door opener products infringed certain of the Company’s radio frequency transmitter patents (which complaint was dismissed and subsequently re-filed by the Company in September 2004). The Company sought a declaration that the JCI Parties infringe its patents and an order enjoining the JCI Parties from further infringing those patents by making, selling or offering to sell their garage door opener products, as well as an award of compensatory damages, attorney fees and costs. The JCI Parties counterclaimed seeking a declaration that the subject patents are invalid and unenforceable and that the JCI Parties are not infringing these patents, as well as an award of attorney fees and costs. The JCI Parties also filed motions for summary judgment asserting that their garage door opener products do not infringe the Company’s patents and that one of the Company’s patents is invalid and unenforceable. In November 2007, the court issued an opinion and order granting in part and denying in part the JCI Parties’ motion for summary judgment on one of the Company’s patents and denying the JCI Parties’ motion to hold the patent unenforceable. The court’s opinion did not address the other two patents involved in this matter. On March 11, 2010, the court issued an opinion and order granting the JCI Parties’ motion for summary judgment on two of the three patents-in-suit, U.S. Patent No. Re 36,181 and U.S. Patent No. Re 36,752. This order left for trial by jury the issue of whether the JCI Parties infringed the third patent-in-suit, U.S. Patent No. 5,731,756. Trial of this matter began on January 25, 2011. On February 10, 2011, the jury returned a verdict against the JCI Parties on the issue of infringement and validity and awarded damages of $0.2 million to the Company. On March 16, 2011, the court dismissed the JCI Parties’ remaining counterclaims and issued an amended judgment on the jury verdict adding prejudgment interest, for a final judgment of $0.4 million. Each side then filed post-judgment motions (the JCI Parties for a new trial and judgment as a matter of law and the Company for a permanent injunction). This matter is subject to dismissal with prejudice as part of the settlement of the Chamberlain Matter described below. This matter has now been resolved, except for formatting the agreed dismissal in a manner acceptable to the court, and accordingly, the Company will not describe this matter in its future periodic reports.

On June 13, 2005, The Chamberlain Group (“Chamberlain”) filed a lawsuit against the Company and Ford Motor Company (“Ford”) in the U.S. District Court for the Northern District of Illinois alleging patent infringement (from which Ford was subsequently dismissed) (the “Chamberlain Matter”). Two counts were asserted against the Company based upon two Chamberlain rolling-code garage door opener system patents (Patent Nos. 6,154,544 and 6,810,123). The Company denies that it has infringed these patents and further contends that these patents are invalid and/or unenforceable. The Chamberlain lawsuit was filed in connection with the marketing of the Company’s universal garage door opener system, which competes with a product offered by Johnson Controls Interiors LLC (“JCI”). JCI obtained technology from Chamberlain to operate its product. In October 2005, Chamberlain filed an amended complaint and joined JCI as a plaintiff. The Company filed an answer and counterclaim seeking a declaration that the patents were not infringed and were invalid, as well as an award of attorney fees and costs. Chamberlain and JCI are seeking a declaration that the Company infringes Chamberlain’s patents and an order enjoining the Company from making, selling or offering to sell products which, they allege, infringe Chamberlain’s patents, as well as an award of compensatory and treble damages and attorney fees and costs. On August 12, 2008, a new patent (Patent No. 7,412,056) was issued to Chamberlain relating to the same technology as the patents disputed in this lawsuit. On August 19, 2008, Chamberlain and JCI filed a second amended complaint against the Company alleging patent infringement with respect to the new patent and seeking the same types of relief. The Company filed an answer and counterclaim seeking a declaration that its products are non-infringing and that the new patent is invalid and unenforceable due to inequitable conduct, as well as an award of attorney fees and costs. On April 16, 2009, the court denied the Company’s motions for summary judgment with respect to the three patents and ordered the Company to produce additional discovery related to infringement. On June 19, 2009, the Company moved for a protective order from further discovery requested by Chamberlain and JCI. On June 26, 2009, JCI moved for summary judgment with respect to the ‘544 and ‘056 patents, and on July 9, 2009, the court denied these motions without prejudice as a result of the Company’s Chapter 11 bankruptcy proceedings.

Pursuant to the Company’s joint plan of reorganization and a stipulation among the Company, Chamberlain and JCI filed with the bankruptcy court in the Company’s Chapter 11 bankruptcy proceedings, the Company agreed to reserve common stock and warrants issued under the joint plan of reorganization, sufficient to provide recoveries for an allowed claim of up to $50 million for pre-petition damages. This reserve is not a loss contingency reserve determined in accordance with GAAP and does not reflect a determination by the Company or the Bankruptcy Court that Chamberlain or JCI is entitled to any recovery. Following the Company’s emergence from Chapter 11 bankruptcy proceedings, litigation in the Chamberlain Matter resumed. The Company filed motions for summary judgment on non-infringement and on certain validity issues, and Chamberlain and JCI filed motions for summary judgment on infringement and on certain validity issues. In November 2010, the court granted in part and denied in part the Company’s motions for summary judgment and granted in part and denied in part the plaintiffs’ motions for summary judgment. In December 2010, the court denied the Company’s motion for summary judgment on the accrual of damages.

The Chamberlain Matter subsequently was reassigned to Judge Richard Posner of the U.S. Court of Appeals for the Seventh Circuit sitting by designation as a trial judge in the Northern District of Illinois. Following this reassignment, the court denied (i) the parties’ motions to exclude various expert testimony, (ii) plaintiffs’ motion for reconsideration of the prior decisions on summary judgment, (iii) JCI’s objections to the prior order granting the Company’s motion for sanctions and (iv) JCI’s motion to compel. On February 4, 2011, Judge Posner reconsidered and reversed the prior judge’s opinion granting the Company partial summary judgment of non-infringement on two independent claims of the patents.

On March 31, 2011, Chamberlain, JCI and the Company entered into a settlement agreement with respect to the Chamberlain Matter, and Chamberlain, JCI and the Company filed a stipulated order of dismissal with prejudice, which the court subsequently entered. The settlement amount attributable to the Company will be paid using a portion of the common stock and warrant reserve established under the joint plan of reorganization for this purpose and will have no future impact on the Company. This matter has now been resolved, and accordingly, the Company will not describe this matter in its future periodic reports.

On September 12, 2008, a consultant to the Company filed an arbitration action against the Company seeking royalties under the parties’ Joint Development Agreement (“JDA”) for the Company’s sales of its garage door opener products. The Company denies that it owes the consultant any royalty payments under the JDA. If the Company is deemed liable to the consultant, the total amount of the compensable damages must be allocated between the pre-petition period and the post-petition period. No dates have been set in this matter, and the Company intends to vigorously defend this matter.

Product Liability and Warranty Matters

In the event that use of the Company’s products results in, or is alleged to result in, bodily injury and/or property damage or other losses, the Company may be subject to product liability lawsuits and other claims. Such lawsuits generally seek compensatory damages, punitive damages and attorney fees and costs. In addition, the Company is a party to warranty-sharing and other agreements with certain of its customers related to its products. These customers may pursue claims against the Company for contribution of all or a portion of the amounts sought in connection with product liability and warranty claims. The Company can provide no assurance that it will not experience material claims in the future or that it will not incur significant costs to defend such claims. In addition, if any of the Company’s products are, or are alleged to be, defective, the Company may be required or requested by its customers to participate in a recall or other corrective action involving such products. Certain of the Company’s customers have asserted claims against the Company for costs related to recalls or other corrective actions involving its products.

In certain instances, allegedly defective products may be supplied by tier 2 suppliers. The Company may seek recovery from its suppliers of materials or services included within the Company’s products that are associated with product liability and warranty claims. The Company carries insurance for certain legal matters, including product liability claims, but such coverage may be limited. The Company does not maintain insurance for product warranty or recall matters. Future dispositions with respect to the Company’s product liability claims that were subject to compromise under the Chapter 11 bankruptcy proceedings will be satisfied out of a common stock and warrant reserve established for that purpose.

The Company records product warranty reserves based on its individual customer agreements. Product warranty reserves are recorded for known warranty issues when liability for such issues is probable and related amounts are reasonably estimable.

A summary of the changes in reserves for product liability and warranty claims for the three months ended April 2, 2011, is shown below (in millions):


Balance as of January 1, 2011	$	43.6
Income, net (including changes in estimates)		(1.2	)
Settlements		(3.3	)
Foreign currency translation and other		1.1

Balance as of April 2, 2011	$	40.2

Environmental Matters

The Company is subject to local, state, federal and foreign laws, regulations and ordinances which govern activities or operations that may have adverse environmental effects and which impose liability for clean-up costs resulting from past spills, disposals or other releases of hazardous wastes and environmental compliance. The Company’s policy is to comply with all applicable environmental laws and to maintain an environmental management program based on ISO 14001 to ensure compliance with this standard. However, the Company currently is, has been and in the future may become the subject of formal or informal enforcement actions or procedures.

The Company has been named as a potentially responsible party at several third-party landfill sites and is engaged in the cleanup of hazardous waste at certain sites owned, leased or operated by the Company, including several properties acquired in its 1999 acquisition of UT Automotive, Inc. (“UT Automotive”). Certain present and former properties of UT Automotive are subject to environmental liabilities which may be significant. The Company obtained agreements and indemnities with respect to certain environmental liabilities from United Technologies Corporation (“UTC”) in connection with its acquisition of UT Automotive. UTC manages and directly funds these environmental liabilities pursuant to its agreements and indemnities with the Company.

As of April 2, 2011 and December 31, 2010, the Company had recorded environmental reserves of $2.6 million and $2.7 million, respectively. While the Company does not believe that the environmental liabilities associated with its current and former properties will have a material adverse impact on its business, financial condition, results of operations or cash flows, no assurance can be given in this regard.

Other Matters

Although the Company records reserves for legal disputes, product liability and warranty claims and environmental and other matters in accordance with GAAP, the ultimate outcomes of these matters are inherently uncertain. Actual results may differ significantly from current estimates.

The Company is involved from time to time in various other legal proceedings and claims, including, without limitation, commercial and contractual disputes, intellectual property matters, personal injury claims, tax claims and employment matters. Although the outcome of any legal matter cannot be predicted with certainty, the Company does not believe that any of these other legal proceedings or claims in which the Company is currently involved, either individually or in the aggregate, will have a material adverse impact on its business, financial condition, results of operations or cash flows. However, no assurance can be given in this regard.

Segment Reporting

3 Months Ended

Apr. 02, 2011

Segment Reporting [Abstract]

Segment Reporting

(15) Segment Reporting

The Company has two reportable operating segments: seating, which includes seat systems and related components, such as seat frames, recliner mechanisms, seat tracks, seat trim covers, headrests and seat foam, and electrical power management systems (“EPMS”), which includes wiring, connectors, junction boxes and various other components of electrical distribution systems for traditional powertrain vehicles, as well as for hybrid and electric vehicles. The Other category includes unallocated costs related to corporate headquarters, geographic headquarters and the elimination of intercompany activities, none of which meets the requirements of being classified as an operating segment.

The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before interest and other (income) expense, net (“segment earnings”) and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization. A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions):


	Three Months Ended April 2, 2011
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,725.0	$	786.7	$	—		$	3,511.7
Segment earnings ⁽¹⁾		208.5		44.1		(53.5	)		199.1
Depreciation and amortization		37.1		22.6		1.8			61.5
Capital expenditures		33.1		37.0		0.4			70.5
Total assets		4,023.4		1,246.4		2,093.2			7,363.0


	Three Months Ended April 3, 2010
	Seating		EPMS		Other			Consolidated
Revenues from external customers	$	2,313.5	$	625.0	$	—		$	2,938.5
Segment earnings ⁽¹⁾		149.6		25.6		(55.0	)		120.2
Depreciation and amortization		36.2		20.9		1.4			58.5
Capital expenditures		22.3		11.7		0.8			34.8
Total assets		3,554.8		1,047.7		1,630.8			6,233.3


⁽¹⁾		See definition above

For the three months ended April 2, 2011, segment earnings include restructuring charges of $1.5 million and $0.1 million in the seating and EPMS segments, respectively. There were no restructuring charges in the other category for the three months ended April 2, 2011. For the three months ended April 3, 2010, segment earnings include restructuring charges of $7.2 million, $5.2 million and $0.3 million in the seating and EPMS segments and in the other category, respectively. See Note 2, “Restructuring Activities.”

A reconciliation of consolidated segment earnings to consolidated income before provision for income taxes is shown below (in millions):


	Three Months Ended
	April 2,			April 3,
	2011			2010
Segment earnings	$	199.1		$	120.2
Interest expense		3.3			19.0
Other (income) expense, net		(6.9	)		21.0

Consolidated income before provision for income taxes	$	202.7		$	80.2

Financial Instruments

3 Months Ended

Apr. 02, 2011

Financial Instruments [Abstract]

Financial Instruments

(16) Financial Instruments

The carrying values of the Company’s debt instruments vary from their fair values. The fair values were determined by reference to the quoted market prices of these securities. As of April 2, 2011, the aggregate carrying value of the Company’s Notes was $695.0 million, as compared to an estimated aggregate fair value of $765.5 million. As of December 31, 2010, the aggregate carrying value of the Company’s Notes was $694.9 million, as compared to an estimated aggregate fair value of $755.6 million.

Derivative Instruments and Hedging Activities

The Company has used derivative financial instruments, including forwards, futures, options, swaps and other derivative contracts to reduce the effects of fluctuations in foreign exchange rates, interest rates and commodity prices and the resulting variability of the Company’s operating results. The Company is not a party to leveraged derivatives. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge) or (3) a hedge of a net investment in a foreign operation (a net investment hedge).

Foreign exchange — The Company uses forward foreign exchange, futures and option contracts to reduce the effect of fluctuations in foreign exchange rates on known foreign currency exposures. Gains and losses on the derivative instruments are intended to offset gains and losses on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuations in foreign exchange rates. The principal currencies hedged by the Company include the Mexican peso, various European currencies, the Chinese renminbi, the Canadian dollar and the Japanese yen. Forward foreign exchange, futures and option contracts are accounted for as cash flow hedges when the hedged item is a forecasted transaction or relates to the variability of cash flows to be received or paid. As of April 2, 2011 and December 31, 2010, contracts designated as cash flow hedges with $338.6 million and $174.7 million, respectively, of notional amount were outstanding with maturities of less than nine months and 12 months, respectively. As of April 2, 2011 and December 31, 2010, the fair value of these contracts was approximately $3.6 million and ($1.3) million, respectively. As of April 2, 2011 and December 31, 2010, other foreign currency derivative contracts that did not qualify for hedge accounting with $139.9 million and $140.6 million, respectively, of notional amount were outstanding. These foreign currency derivative contracts consist principally of cash transactions of up to 12 months, hedges of intercompany loans and hedges of certain other balance sheet exposures. As of April 2, 2011 and December 31, 2010, the fair value of these contracts was $5.1 million and $0.4 million, respectively.

The fair value of outstanding foreign currency derivative contracts and the related classification in the accompanying condensed consolidated balance sheets as of April 2, 2011 and December 31, 2010, are shown below (in millions):


	April 2,			December 31,
	2011			2010

Contracts qualifying for hedge accounting:
Other current assets	$	7.2		$	0.2
Other current liabilities		(3.6	)		(1.5	)

		3.6			(1.3	)

Contracts not qualifying for hedge accounting:
Other current assets		5.4			0.7
Other current liabilities		(0.3	)		(0.3	)

		5.1			0.4

	$	8.7		$	(0.9	)

Pretax amounts related to foreign currency derivative contracts that were recognized in and reclassified from accumulated other comprehensive loss are shown below (in millions):


	April 2,			April 3,
	2011			2010
Contracts qualifying for hedge accounting:
Gains recognized in accumulated other comprehensive loss	$	5.3		$	16.1
Gains reclassified from accumulated other comprehensive loss		(0.4	)		(1.8	)

Comprehensive income	$	4.9		$	14.3

Interest rate— Historically, the Company used interest rate swap and other derivative contracts to manage its exposure to fluctuations in interest rates. Interest rate swap and other derivative contracts which fix the interest payments of certain variable rate debt instruments or fix the market rate component of anticipated fixed rate debt instruments were accounted for as cash flow hedges. Interest rate swap contracts which hedge the change in fair value of certain fixed rate debt instruments were accounted for as fair value hedges. As of April 2, 2011 and December 31, 2010, there were no interest rate contracts outstanding. The Company will continue to evaluate, and may use derivative financial instruments, including forwards, futures, options, swaps and other derivative contracts to manage its exposures to fluctuations in interest rates in the future.

Commodity prices — The Company uses derivative instruments to reduce its exposure to fluctuations in copper prices. These derivative instruments are utilized to hedge forecasted inventory purchases and to the extent that they qualify and meet hedge accounting criteria, they are accounted for as cash flow hedges. Commodity swap contracts that are not designated as cash flow hedges are marked to market with changes in fair value recognized immediately in the condensed consolidated statements of income. See Note 10, “Other (Income) Expense, Net.” As of April 2, 2011, commodity swap contracts with $5.2 million of notional amount were outstanding with maturities of less than nine months. As of April 2, 2011, the fair market value of these contracts was ($0.2) million. As of December 31, 2010, there were no commodity swap contracts outstanding.

The fair value of outstanding commodity swap contracts and the related classification in the accompanying condensed consolidated balance sheet as of April 2, 2011, are shown below (in millions):


	April 2,
	2011
Contracts qualifying for hedge accounting:
Other current liabilities	$	(0.2	)

Pretax amounts related to commodity swap contracts that were recognized in accumulated other comprehensive loss are shown below (in millions):


	April 2,
	2011
Contracts qualifying for hedge accounting:
Losses recognized in accumulated other comprehensive loss	$	(0.2	)

Comprehensive loss	$	(0.2	)

As of April 2, 2011 and December 31, 2010, net gains (losses) of approximately $3.4 million and ($1.3) million, respectively, related to the Company’s derivative instruments and hedging activities were recorded in accumulated other comprehensive loss. During the three months ended April 2, 2011 and April 3, 2010, net gains of approximately $0.4 million and $1.8 million, respectively, related to the Company’s hedging activities were reclassified from accumulated other comprehensive loss into earnings. During the twelve month period ending April 1, 2012, the Company expects to reclassify into earnings net gains of approximately $3.4 million recorded in accumulated other comprehensive loss as of April 2, 2011. Such gains will be reclassified at the time that the underlying hedged transactions are realized. During the three months ended April 2, 2011 and April 3, 2010, amounts recognized in the accompanying condensed consolidated statements of income related to changes in the fair value of cash flow and fair value hedges excluded from the Company’s effectiveness assessments and the ineffective portion of changes in the fair value of cash flow and fair value hedges were not material.

Fair Value Measurements

GAAP provides that fair value is an exit price, defined as a market-based measurement that represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are based on one or more of the following three valuation techniques:

	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).

Further, GAAP prioritizes the inputs and assumptions used in the valuation techniques described above into a three-tier fair value hierarchy as follows:

	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.

The Company discloses fair value measurements and the related valuation techniques and fair value hierarchy level for its assets and liabilities that are measured or disclosed at fair value.

Items measured at fair value on a recurring basis — Fair value measurements and the related valuation techniques and fair value hierarchy level for the Company’s assets and liabilities measured or disclosed at fair value on a recurring basis as of April 2, 2011 and December 31, 2010, are shown below (in millions):


	April 2, 2011
					Valuation
	Frequency	Asset (Liability)			Technique	Level 1		Level 2			Level 3
Foreign currency derivative contracts	Recurring	$	8.7		Market/Income	$	—	$	8.7		$	—
Commodity swap contracts	Recurring	$	(0.2	)	Market/Income	$	—	$	(0.2	)	$	—


	December 31, 2010
					Valuation
	Frequency	Liability			Technique	Level 1		Level 2			Level 3
Foreign currency derivative contracts	Recurring	$	(0.9	)	Market/Income	$	—	$	(0.9	)	$	—

The Company determines the fair value of its derivative contracts using quoted market prices to calculate the forward values and then discounts such forward values to the present value. The discount rates used are based on quoted bank deposit or swap interest rates. If a derivative contract is in a net liability position, these discount rates are adjusted by an estimate of the credit spread that would be applied by market participants purchasing these contracts from the Company’s counterparties. To estimate this credit spread, the Company uses significant assumptions and factors other than quoted market rates, which would result in the classification of its derivative liabilities within Level 3 of the fair value hierarchy, to the extent that such adjustment is necessary. As of April 2, 2011 and December 31, 2010, there were no derivative contracts that were classified within Level 3 of the fair value hierarchy. In addition, there were no transfers in or out of Level 3 of the fair value hierarchy during the first quarter of 2011.

Items measured at fair value on a non-recurring basis — The Company measures certain assets and liabilities at fair value on a non-recurring basis, which are not included in the table above. As these non-recurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. In the first quarter of 2011, there were no significant non-recurring fair value adjustments.

Accounting Pronouncements	3 Months Ended
Accounting Pronouncements	Apr. 02, 2011
Accounting Pronouncements [Abstract]
Accounting Pronouncements	(17) Accounting Pronouncements Goodwill Impairment The Financial Accounting Standards Board (“FASB”) amended ASC 350, “Intangibles — Goodwill and Other,” with Accounting Standards Update (“ASU”) 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” This update requires that step 2 of the goodwill impairment test (i.e., measurement and recognition of an impairment loss) be performed if a reporting unit has a carrying value equal to or less than zero and qualitative factors indicate that it is more likely than not that a goodwill impairment exists. The provisions of this update are effective for annual reporting periods beginning after December 15, 2010. The Company’s annual goodwill impairment test is conducted as of the first day of the fourth quarter. The Company does not expect the effects of adoption to be significant. Business Combinations The FASB amended ASC 805, “Business Combinations,” with ASU 2010-29, “Disclosure of Supplementary Pro Forma Information for Business Combinations,” to, among other things, require pro forma revenue and earnings disclosures in comparative financial statements that reflect the results of operations of the acquired entity as though the business combination had occurred as of the beginning of the prior year. The provisions of this update are effective for annual reporting periods beginning after December 15, 2010. The Company will evaluate the impact of this update on material future business combinations. Fair Value Measurement Disclosures The FASB amended ASC 820, “Fair Value Measurements,” with ASU 2010-06, “Improving Disclosures about Fair Value Measurements,” to require additional disclosures related to activity within Level 3 of the fair value hierarchy. The provisions of this update are effective for reporting periods beginning after December 15, 2010. The effects of adoption were not significant. For further information, see Note 16, “Financial Instruments.” Revenue Recognition The FASB amended ASC 605, “Revenue Recognition,” with ASU 2009-13, “Revenue Recognition (Topic 605) — Multiple-Deliverable Revenue Arrangements.” If a revenue arrangement has multiple deliverables, this update requires the allocation of revenue to the separate deliverables based on relative selling prices. In addition, this update requires additional ongoing disclosures about an entity’s multiple-element revenue arrangements. The provisions of this update were effective as of January 1, 2011. The effects of adoption were not significant.

Supplemental Guarantor Condensed Consolidating Financial Statements

3 Months Ended

Apr. 02, 2011

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidating Financial Statements

(18) Supplemental Guarantor Condensed Consolidating Financial Statements


	April 2, 2011
						Non-
	Lear			Guarantors		guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	787.1		$	0.1	$	919.9	$	—		$	1,707.1
Accounts receivable		52.3			358.6		1,847.5		—			2,258.4
Inventories		6.5			222.3		398.2		—			627.0
Other		110.5			27.5		320.1		—			458.1

Total current assets		956.4			608.5		3,485.7		—			5,050.6

LONG-TERM ASSETS:
Property, plant and equipment, net		94.2			156.3		794.3		—			1,044.8
Goodwill		23.5			303.9		314.6		—			642.0
Investments in subsidiaries		736.1			844.5		—		(1,580.6	)		—
Other		191.5			28.5		405.6		—			625.6

Total long-term assets		1,045.3			1,333.2		1,514.5		(1,580.6	)		2,312.4

	$	2,001.7		$	1,941.7	$	5,000.2	$	(1,580.6	)	$	7,363.0

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—		$	—	$	3.6	$	—		$	3.6
Accounts payable and drafts		102.0			506.9		1,637.8		—			2,246.7
Accrued liabilities		121.2			169.9		816.1		—			1,107.2

Total current liabilities		223.2			676.8		2,457.5		—			3,357.5

LONG-TERM LIABILITIES:
Long-term debt		695.0			—		—		—			695.0
Intercompany accounts, net		(1,720.7	)		567.4		1,153.3		—			—
Other		148.9			100.3		297.6		—			546.8

Total long-term liabilities		(876.8	)		667.7		1,450.9		—			1,241.8

EQUITY:
Lear Corporation stockholders’ equity		2,655.3			597.2		983.4		(1,580.6	)		2,655.3
Noncontrolling interests		—			—		108.4		—			108.4

Equity		2,655.3			597.2		1,091.8		(1,580.6	)		2,763.7

	$	2,001.7		$	1,941.7	$	5,000.2	$	(1,580.6	)	$	7,363.0


	December 31, 2010
						Non-
	Lear			Guarantors		guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	808.8		$	0.4	$	844.9	$	—		$	1,654.1
Accounts receivable		37.1			248.4		1,472.9		—			1,758.4
Inventories		7.5			204.7		342.0		—			554.2
Other		115.5			10.5		292.8		—			418.8

Total current assets		968.9			464.0		2,952.6		—			4,385.5

LONG-TERM ASSETS:
Property, plant and equipment, net		96.2			154.1		744.4		—			994.7
Goodwill		23.5			303.9		287.2		—			614.6
Investments in subsidiaries		599.1			783.7		—		(1,382.8	)		—
Other		194.8			28.7		402.8		—			626.3

Total long-term assets		913.6			1,270.4		1,434.4		(1,382.8	)		2,235.6

	$	1,882.5		$	1,734.4	$	4,387.0	$	(1,382.8	)	$	6,621.1

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	—		$	—	$	4.1	$	—		$	4.1
Accounts payable and drafts		97.0			395.3		1,346.1		—			1,838.4
Accrued liabilities		128.3			161.7		686.0		—			976.0

Total current liabilities		225.3			557.0		2,036.2		—			2,818.5

LONG-TERM LIABILITIES:
Long-term debt		694.9			—		—		—			694.9
Intercompany accounts, net		(1,645.6	)		553.4		1,092.2		—			—
Other		147.7			102.1		289.1		—			538.9

Total long-term liabilities		(803.0	)		655.5		1,381.3		—			1,233.8

EQUITY:
Lear Corporation stockholders’ equity		2,460.2			521.9		860.9		(1,382.8	)		2,460.2
Noncontrolling interests		—			—		108.6		—			108.6

Equity		2,460.2			521.9		969.5		(1,382.8	)		2,568.8

	$	1,882.5		$	1,734.4	$	4,387.0	$	(1,382.8	)	$	6,621.1


	For the Three Months Ended April 2, 2011
							Non-
	Lear			Guarantors			guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	93.7		$	1,266.7		$	3,162.0		$	(1,010.7	)	$	3,511.7

Cost of sales		121.7			1,148.3			2,929.0			(1,010.7	)		3,188.3
Selling, general and administrative expenses		39.3			16.3			61.9			—			117.5
Amortization of intangible assets		0.3			0.1			6.4			—			6.8
Intercompany charges		2.1			(4.3	)		2.2			—			—
Interest (income) expense		(0.7	)		5.2			(1.2	)		—			3.3
Other intercompany (income) expense, net		(85.3	)		44.0			41.3			—			—
Other (income) expense, net		(6.7	)		0.9			(1.1	)		—			(6.9	)


Consolidated income before income taxes and equity in net income of subsidiaries		23.0			56.2			123.5			—			202.7
Provision for income taxes		3.0			—			37.0			—			40.0
Equity in net income of subsidiaries		(136.0	)		(54.6	)		—			190.6			—

Consolidated net income		156.0			110.8			86.5			(190.6	)		162.7
Less: Net income attributable to noncontrolling interests		—			—			6.7			—			6.7


Net income attributable to Lear	$	156.0		$	110.8		$	79.8		$	(190.6	)	$	156.0


	For the Three Months Ended April 3, 2010
							Non-
	Lear			Guarantors			guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	57.2		$	1,070.0		$	2,662.9	$	(851.6	)	$	2,938.5

Cost of sales		71.5			975.5			2,488.3		(851.6	)		2,683.7
Selling, general and administrative expenses		46.6			18.2			63.1		—			127.9
Amortization of intangible assets		0.3			0.1			6.3		—			6.7
Intercompany charges		1.9			(3.7	)		1.8		—			—
Interest expense		6.5			4.0			8.5		—			19.0
Other intercompany (income) expense, net		(28.3	)		10.1			18.2		—			—
Other expense, net		19.6			0.3			1.1		—			21.0


Consolidated income (loss) before income taxes and equity in net income of subsidiaries		(60.9	)		65.5			75.6		—			80.2
Provision for income taxes		1.3			—			5.1		—			6.4
Equity in net income of subsidiaries		(128.3	)		(55.5	)		—		183.8			—

Consolidated net income		66.1			121.0			70.5		(183.8	)		73.8
Less: Net income attributable to noncontrolling interests		—			—			7.7		—			7.7


Net income attributable to Lear	$	66.1		$	121.0		$	62.8	$	(183.8	)	$	66.1


	For the Three Months Ended April 2, 2011
							Non-
	Lear			Guarantors			guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by (used in) operating activities	$	26.5		$	47.7		$	80.0		$	—	$	154.2
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(2.3	)		(14.1	)		(54.1	)		—		(70.5	)
Other, net		(0.1	)		0.1			(6.6	)		—		(6.6	)

Net cash used in investing activities		(2.4	)		(14.0	)		(60.7	)		—		(77.1	)

Cash Flows from Financing Activities:
Other long-term debt repayments, net		—			—			(1.1	)		—		(1.1	)
Short-term debt repayments, net		—			—			(0.5	)		—		(0.5	)
Repurchase of common stock		(27.4	)		—			—			—		(27.4	)
Dividends paid to Lear Corporation stockholders		(12.8	)		—			—			—		(12.8	)
Dividends paid to noncontrolling interests		—			—			(10.0	)		—		(10.0	)
Other		(1.4	)		—			—			—		(1.4	)
Change in intercompany accounts		(4.2	)		(34.0	)		38.2			—		—

Net cash provided by (used in) financing activities		(45.8	)		(34.0	)		26.6			—		(53.2	)

Effect of foreign currency translation		—			—			29.1			—		29.1

Net Change in Cash and Cash Equivalents		(21.7	)		(0.3	)		75.0			—		53.0
Cash and Cash Equivalents as of Beginning of Period		808.8			0.4			844.9			—		1,654.1

Cash and Cash Equivalents as of End of Period	$	787.1		$	0.1		$	919.9		$	—	$	1,707.1


	For the Three Months Ended April 3, 2010
							Non-
	Lear			Guarantors			guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by (used in) operating activities	$	(12.4	)	$	105.4		$	(54.1	)	$	—	$	38.9
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(3.4	)		(4.5	)		(26.9	)		—		(34.8	)
Other, net		(1.1	)		—			5.2			—		4.1

Net cash used in investing activities		(4.5	)		(4.5	)		(21.7	)		—		(30.7	)

Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes		694.5			—			—			—		694.5
First lien credit agreement repayments		(375.0	)		—			—			—		(375.0	)
Second lien credit agreement repayments		(550.0	)		—			—			—		(550.0	)
Other long-term debt repayments, net		—			—			(1.7	)		—		(1.7	)
Short-term debt borrowings, net		—			—			5.6			—		5.6
Payment of debt issuance costs		(16.3	)		—			—			—		(16.3	)
Other		0.1			—			0.3			—		0.4
Change in intercompany accounts		355.2			(100.9	)		(254.3	)		—		—

Net cash provided by (used in) financing activities		108.5			(100.9	)		(250.1	)		—		(242.5	)

Effect of foreign currency translation		—			—			(19.3	)		—		(19.3	)

Net Change in Cash and Cash Equivalents		91.6			—			(345.2	)		—		(253.6	)
Cash and Cash Equivalents as of Beginning of Period		584.9			0.1			969.0			—		1,554.0

Cash and Cash Equivalents as of End of Period	$	676.5		$	0.1		$	623.8		$	—	$	1,300.4

Basis of Presentation — Certain of Lear’s domestic 100% owned subsidiaries (the “Guarantors”) have jointly and severally unconditionally guaranteed, on a senior unsecured basis, the performance and the full and punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Company’s obligations under the Revolving Credit Facility and the indenture governing the Notes, including the Company’s obligations to pay principal, premium, if any, and interest with respect to the Notes. The Notes consist of $350 million in aggregate principal amount at maturity of 7.875% senior unsecured notes due 2018 and $350 million in aggregate principal amount at maturity of 8.125% senior unsecured notes due 2020. The Guarantors include Lear #50 Holdings, LLC, Lear Automotive Dearborn, Inc., Lear Automotive Manufacturing, LLC, Lear Corporation EEDS and Interiors, Lear Corporation Global Development, Inc., Lear European Operations Corporation, Lear Mexican Holdings Corporation, Lear Mexican Holdings, L.L.C., Lear Mexican Seating Corporation, Lear Operations Corporation, Lear South American Holdings Corporation and Lear Trim L.P. In lieu of providing separate financial statements for the Guarantors, the Company has included the supplemental guarantor condensed consolidating financial statements above. These financial statements reflect the Guarantors listed above for all periods presented. Management does not believe that separate financial statements of the Guarantors are material to investors. Therefore, separate financial statements and other disclosures concerning the Guarantors are not presented.

The 2010 supplemental guarantor condensed consolidating financial statements have been restated to reflect certain changes to the equity investments of the Guarantors.

Distributions — There are no significant restrictions on the ability of the Guarantors to make distributions to the Company.

Selling, General and Administrative Expenses — Corporate and division selling, general and administrative expenses are allocated to the operating subsidiaries based on various factors, which estimate usage of particular corporate and division functions, and in certain instances, other relevant factors, such as the revenues or the number of employees of the Company’s subsidiaries. During the three months ended April 2, 2011 and April 3, 2010, $5.4 million and $(0.6) million, respectively, of selling, general and administrative expenses were allocated (to) from Lear.

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):


	April 2,		December 31,
	2011		2010
Senior notes	$	695.0	$	694.9

Basis of Presentation	3 Months Ended
Basis of Presentation	Apr. 02, 2011
Basis of Presentation [Abstract]
Basis of Presentation	(1) Basis of Presentation Lear Corporation (“Lear,” and together with its consolidated subsidiaries, the “Company”) and its affiliates design and manufacture complete automotive seat systems and related components, as well as electrical distribution systems and related components. The Company’s main customers are automotive original equipment manufacturers. The Company operates facilities worldwide. On November 9, 2009, Lear and certain of its U.S. and Canadian subsidiaries emerged from bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code (“Chapter 11”). In accordance with the provisions of FASB Accounting Standards Codification^TM (“ASC”) 852, “Reorganizations,” Lear adopted fresh-start accounting upon its emergence from Chapter 11 bankruptcy proceedings and became a new entity for financial reporting purposes as of November 7, 2009. For further information, see Note 1, “Basis of Presentation,” and Note 2, “Reorganization under Chapter 11,” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The accompanying condensed consolidated financial statements include the accounts of Lear, a Delaware corporation, and the wholly owned and less than wholly owned subsidiaries controlled by Lear. In addition, Lear consolidates variable interest entities in which it has a controlling financial interest. Investments in affiliates in which Lear does not have control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. The Company’s annual financial results are reported on a calendar year basis and quarterly interim results are reported using a thirteen week reporting calendar. Certain amounts in the prior period’s financial statements have been reclassified to conform to the presentation used in the quarter ended April 2, 2011.

Cost of Sales and Selling, General and Administrative Expenses	3 Months Ended
	Apr. 02, 2011
Cost of Sales and Selling, General and Administrative Expenses [Abstract]
Cost of Sales and Selling, General and Administrative Expenses	(9) Cost of Sales and Selling, General and Administrative Expenses Cost of sales includes material, labor and overhead costs associated with the manufacture and distribution of the Company’s products. Distribution costs include inbound freight costs, purchasing and receiving costs, inspection costs, warehousing costs and other costs of the Company’s distribution network. Selling, general and administrative expenses include selling, engineering and development and administrative costs not directly associated with the manufacture and distribution of the Company’s products.