0000842162-23-000045 | 10-Q | XBRL Viewer

Basis of Presentation (Policies)

6 Months Ended

Jul. 01, 2023

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 all entities, including 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.

Fiscal Period Reporting

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.

Restructuring

Restructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. Employee termination benefits are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Other incremental costs principally include equipment and personnel relocation costs. In addition to restructuring costs, the Company 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 condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded when restructuring actions are approved, communicated and/or implemented.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.

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.

Property, Plant and Equipment

Property, plant and equipment is stated at cost. Costs associated with the repair and maintenance of the Company's property, plant and equipment are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency or safety of the Company's property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method.

Impairment of Long-Lived Assets

The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. The Company will continue to assess the impact of significant industry and other events on the realization of its long-lived assets.

Goodwill

Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit's fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The annual goodwill impairment assessment is completed as of the first day of the Company's fourth quarter.

Revenue Recognition

The Company enters into contracts with its customers to provide production parts generally at the beginning of a vehicle's life cycle. Typically, these contracts do not provide for a specified quantity of products, but once entered into, the Company is often expected to fulfill its customers' purchasing requirements for the production life of the vehicle. Many of these contracts may be terminated by the Company's customers at any time. Historically, terminations of these contracts have been infrequent. The Company receives purchase orders from its customers, which provide the commercial terms for a particular production part, including price (but not quantities). Contracts may also provide for annual price reductions over the production life of the vehicle, and prices may be adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors.

Revenue is recognized at a point in time when control of the product is transferred to the customer under standard commercial terms, as the Company does not have an enforceable right to payment prior to such transfer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on the current purchase orders, annual price reductions and ongoing price adjustments. In the first six months of 2023 and 2022, revenue recognized related to prior years represented less than 2% of consolidated net sales. The Company's customers pay for products received in accordance with payment terms that are customary within the industry. The Company's contracts with its customers do not have significant financing components.

The Company records a contract liability for advances received from its customers. As of July 1, 2023 and December 31, 2022, there were no significant contract liabilities recorded. Further, in the first six months of 2023 and 2022, there were no significant contract liabilities recognized in revenue.

Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income (loss). Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales in the condensed consolidated statements of comprehensive income (loss).

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue.

Income Taxes

The Company's current and future provision for income taxes is impacted by the initial recognition of and changes in valuation allowances in certain countries. 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 provision for income taxes will include no tax benefit with respect to losses incurred and, except for certain jurisdictions, no tax expense with respect to income generated in these countries until the respective valuation allowances are eliminated. Accordingly, income taxes are impacted by changes in valuation allowances and the mix of earnings among jurisdictions. The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets is necessary. Such evidence includes historical results, future reversals of existing taxable temporary differences and expectations for future taxable income (exclusive of the reversal of temporary differences and carryforwards), as well as the implementation of feasible and prudent tax planning strategies. If, based on the weight of the evidence, it is more likely than not that all or a portion of the Company's deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or decline on a continual basis in a particular jurisdiction, the Company's decision regarding the need for a valuation allowance could change, resulting in either the initial recognition or reversal of a valuation allowance in that jurisdiction, which could have a significant impact on income tax expense in the period recognized and subsequent periods. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments, which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities.

On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum tax and a 1% excise tax on share repurchases, which are effective for tax years beginning after December 31, 2022. The tax-related provisions of the IRA did not have a material impact on the Company's consolidated financial statements.

Net Income Per Share Attributable to Lear

Basic net income per share attributable to Lear is computed by dividing net income attributable to Lear 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 are considered common shares outstanding and are included in the computation of basic net income per share attributable to Lear.

Diluted net income per share attributable to Lear is 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.

Segment Reporting

The Company is organized under two reportable operating segments: Seating, which consists of the design, development, engineering and manufacture of complete seat systems and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, battery disconnect units and other electronic products. Key components of the Company's complete seat systems and components are advanced comfort solutions, including thermal, safety and wellness products, as well as configurable seating product technologies. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat foam; thermal comfort systems such as seat massage, lumbar, heat, ventilation and active cooling products; and headrests. Key components of the Company's electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher

voltage and power. High voltage battery connection systems include intercell connect boards, bus bars and main battery connection systems. Key components of the other electronic products portfolio include zone control modules, body domain control modules and low voltage and high voltage power distribution modules. The Company's software offerings include embedded control, cybersecurity software and software to control hardware devices. The Company's customers traditionally have sourced its electronic hardware together with the software that the Company embeds in it. The other category includes unallocated costs related to corporate headquarters, regional headquarters and the elimination of intercompany activities, none of which meets the requirements for being classified as an operating segment. Corporate and regional headquarters costs include various support functions, such as information technology, advanced research and development, corporate finance, legal, executive administration and human resources.

Each of the Company's operating segments reports its results from operations and makes its requests for capital expenditures directly to the chief operating decision maker. The economic performance of each operating segment is driven primarily by automotive production volumes in the geographic regions in which it operates, as well as by the success of the vehicle platforms for which it supplies products. Also, each operating segment operates in the competitive Tier 1 automotive supplier environment and is continually working with its customers to manage costs and improve quality. The Company's production processes generally make use of hourly labor, dedicated facilities, sequential manufacturing and assembly processes and commodity raw materials.

The Company evaluates the performance of its operating segments based primarily on (i) revenues from external customers, (ii) pretax income before equity in net income of affiliates, interest expense and other expense, net ("segment earnings") and (iii) cash flows, being defined as segment earnings less capital expenditures plus depreciation and amortization.

Accounts Receivable

The Company's allowance for credit losses on financial assets measured at amortized cost, primarily accounts receivable, reflects management's estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. The Company also considers geographic and segment specific risk factors in the development of expected credit losses.

Marketable Equity Securities

Unrealized gains and losses arising from changes in the fair value of the marketable equity securities are recognized in other expense, net in the condensed consolidated statements of comprehensive income (loss). The fair value of the marketable equity securities is determined by reference to quoted market prices in active markets (Level 1 input based on the GAAP fair value hierarchy).

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 and interest rates and the resulting variability of the Company's operating results. The Company is not a party to leveraged derivatives. The Company's derivative financial instruments are subject to master arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. On the date that a derivative contract for a hedge instrument is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge), (3) a hedge of a net investment in a foreign operation (a net investment hedge) or (4) a contract not designated as a hedge instrument.

For a fair value hedge, the change in the fair value of the derivative is recorded in earnings and reflected in the condensed consolidated statements of comprehensive income (loss) on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a cash flow hedge, the change in the fair value of the derivative is recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets. When the underlying hedged transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in the condensed consolidated statements of comprehensive income (loss) on the same line as the gain or loss on the hedged item attributable to the hedged risk. For a net investment hedge, the change in the fair value of the derivative is recorded in cumulative translation adjustment, which is a component of accumulated other comprehensive loss in the condensed consolidated balance sheets. When the related currency translation adjustment is required to be reclassified, usually upon the sale or liquidation of the investment, the gain or loss included in accumulated other comprehensive loss is recorded in earnings and reflected in other expense, net in the condensed consolidated statements of comprehensive income (loss). Changes in the fair value of contracts not designated as hedge instruments are recorded in earnings and reflected in other expense, net in the condensed consolidated statements of

comprehensive income (loss). Cash flows attributable to derivatives used to manage foreign currency risks are classified on the same line as the hedged item attributable to the hedged risk in the condensed consolidated statements of cash flows. Upon settlement, cash flows attributable to derivatives designated as net investment hedges are classified as investing activities in the condensed consolidated statements of cash flows. Cash flows attributable to forward starting interest rate swaps are classified as financing activities in the condensed consolidated statements of cash flows.

The Company formally documents its hedge relationships, including the identification of the hedge instruments and the related hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. Derivatives are recorded at fair value in other current and long-term assets and other current and long-term liabilities in the condensed consolidated balance sheets. The Company also formally assesses whether a derivative used in a hedge transaction is highly effective in offsetting changes in either the fair value or the cash flows of the hedged item. When it is determined that a hedged transaction is no longer probable to occur, the Company discontinues hedge accounting.

The Company uses forwards, swaps and other derivative contracts to reduce the effects 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 exposure to fluctuations in foreign exchange rates. The principal currencies hedged by the Company include the Mexican peso, various European currencies, the Chinese renminbi, the Philippine peso and the Japanese yen.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, the Company adjusts these discount rates, if required, by an estimate of the credit spread that would be applied by market participants purchasing these contracts from the Company's counterparties. If an estimate of the credit spread is required, 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.

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.

Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. ASUs effective in 2023 and ASUs effective in subsequent years that have been issued but not yet adopted were assessed and determined to be either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

Comprehensive Income (Loss) and Equity - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended		147 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Apr. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Apr. 01, 2023
Equity [Abstract]
Foreign currency translation adjustments related to intercompany transactions (losses) gains	$ 100,000		$ (1,000,000)		$ 200,000	$ (1,500,000)
Foreign currency translation adjustments related to derivatives in net investment hedge	(2,500,000)		19,100,000		(3,300,000)	19,400,000
Aggregate purchases authorized under common stock share repurchase program	6,100,000,000				6,100,000,000
Aggregate repurchases	$ 38,400,000		$ 50,200,000		$ 63,500,000	$ 50,200,000	$ 4,900,000,000
Average price (in dollars per share)	$ 132.58		$ 131.92		$ 134.39	$ 131.92	$ 91.93
Remaining repurchase authorization	$ 1,166,300,000				$ 1,166,300,000
Cash dividends declared per share (in dollars per share)	$ 0.77	$ 0.77	$ 0.77	$ 0.77	$ 1.54	$ 1.54

Pre-Production Costs Related to Long-Term Supply Agreements

6 Months Ended

Jul. 01, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Pre-Production Costs Related to Long-Term Supply Agreements

During the first six months of 2023 and 2022, the Company capitalized $115.7 million and $133.9 million, respectively, of pre-production E&D costs for which reimbursement is contractually guaranteed by the customer. During the first six months of 2023 and 2022, the Company also capitalized $80.0 million and $104.5 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 six months of 2023 and 2022, the Company collected $151.0 million and $167.5 million, respectively, of cash related to E&D and tooling costs.

The classification of recoverable customer E&D and tooling costs related to long-term supply agreements included in the accompanying condensed consolidated balance sheets is shown below (in millions):


	July 1, 2023		December 31, 2022
Current	$	218.5	$	175.7
Long-term	169.5		161.3
Recoverable customer E&D and tooling	$	388.0	$	337.0

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Lessee, Lease, Description
Asset impairment charges			$ 2.2	$ 1.1
Right-of-use assets
Lessee, Lease, Description
Asset impairment charges	$ 9.6	$ 6.4	9.6	$ 6.4
I.G. Bauerhin
Lessee, Lease, Description
Right of use asset	$ 14.3		$ 14.3

Financial Instruments - Summary of Estimated Aggregate Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Estimated aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instruments	$ 2,365.6	$ 2,142.3
Aggregate carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instruments	$ 2,750.0	$ 2,600.0

Leases - Summary of Maturity of Lease Obligations (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 90.5
2024	162.5
2025	139.1
2026	115.5
2027	95.8
Thereafter	262.4
Total undiscounted cash flows	865.8
Less: Imputed interest	(98.4)
Lease obligations under operating leases	$ 767.4	$ 731.9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Cash Flows from Operating Activities:
Consolidated net income	$ 350.6	$ 152.2
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	298.4	295.0
Net change in recoverable customer engineering, development and tooling	(49.7)	(74.3)
Net change in working capital items	(328.1)	(178.4)
Other, net	4.6	37.6
Net cash provided by operating activities	275.8	232.1
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(280.1)	(302.5)
Acquisitions, net of cash acquired	(174.5)	(184.2)
Other, net	4.7	1.8
Net cash used in investing activities	(449.9)	(484.9)
Cash Flows from Financing Activities:
Short-term borrowings, net	17.6	0.0
Term loan borrowings	150.0	0.0
Repurchases of common stock	(53.3)	(50.2)
Dividends paid to Lear Corporation stockholders	(92.1)	(93.5)
Dividends paid to noncontrolling interests	(46.2)	(52.5)
Other, net	(23.9)	(25.3)
Net cash used in financing activities	(47.9)	(221.5)
Effect of foreign currency translation	9.9	(16.1)
Net Change in Cash, Cash Equivalents and Restricted Cash	(212.1)	(490.4)
Cash, Cash Equivalents and Restricted Cash as of Beginning of Period	1,117.4	1,321.3
Cash, Cash Equivalents and Restricted Cash as of End of Period	905.3	830.9
Changes in Working Capital Items:
Accounts receivable	(774.9)	(469.2)
Inventories	(74.4)	(75.7)
Accounts payable (including $15.4 million of cash paid in 2023 in conjunction with the acquisition of IGB to settle pre-existing accounts payable)	409.6	289.2
Accrued liabilities and other	111.6	77.3
Net change in working capital items	(328.1)	(178.4)
Supplementary Disclosure:
Cash paid for interest	54.9	39.6
Cash paid for income taxes, net of refunds received	$ 110.3	$ 111.6

Restructuring - Narrative (Details) $ in Millions	Jul. 01, 2023 USD ($)
Seating
Restructuring Cost and Reserve
Expected restructuring costs	$ 20
E-Systems
Restructuring Cost and Reserve
Expected restructuring costs	$ 1

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Other Expense, Net (Tables)

6 Months Ended

Jul. 01, 2023

Other Income and Expenses [Abstract]

Schedule of Other (Income) Expense, Net

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Other expense	$	24.2	$	17.1	$	41.0	$	47.1
Other income	(4.7)		(2.7)		(7.8)		(5.4)
Other expense, net	$	19.5	$	14.4	$	33.2	$	41.7

Leases - Summary of Right-of-Use Assets and Lease Obligations (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Lease obligations under operating leases:
Accrued liabilities	$ 149.8	$ 136.8
Other long-term liabilities	617.6	595.1
Lease obligations under operating leases	767.4	731.9
Right-of-use assets under operating leases:
Other long-term assets	$ 725.0	$ 701.8
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other	Other
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other	Other

Net Income Per Share Attributable to Lear (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Earnings Per Share [Abstract]
Net income attributable to Lear	$ 168.7	$ 68.5	$ 312.3	$ 117.9
Average common shares outstanding (in shares)	59,133,427	59,899,061	59,224,991	59,915,636
Dilutive effect of common stock equivalents (in shares)	232,740	196,580	237,575	237,989
Average diluted shares outstanding (in shares)	59,366,167	60,095,641	59,462,566	60,153,625
Basic net income per share attributable to Lear (in dollars per share)	$ 2.85	$ 1.14	$ 5.27	$ 1.97
Diluted net income per share attributable to Lear (in dollars per share)	$ 2.84	$ 1.14	$ 5.25	$ 1.96

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Paragraph 11
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
-Paragraph 7
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-7

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-Name Accounting Standards Codification
-Section 45
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-10

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Long-Lived Assets - Summary of Property, Plant and Equipment (Details) - USD ($)
$ in Millions

Jul. 01, 2023

Dec. 31, 2022

Property, Plant and Equipment

Total property, plant and equipment

$ 6,492.0

$ 6,222.7

Less – accumulated depreciation

(3,578.9)

(3,368.7)

Property, plant and equipment, net

2,913.1

^[1]

2,854.0

Land

Property, Plant and Equipment

Total property, plant and equipment

106.5

104.6

Buildings and improvements

Property, Plant and Equipment

Total property, plant and equipment

901.6

868.6

Machinery and equipment

Property, Plant and Equipment

Total property, plant and equipment

5,089.3

4,871.5

Construction in progress

Property, Plant and Equipment

Total property, plant and equipment

$ 394.6

$ 378.0

[1]

Unaudited

Financial Instruments - Summary of Marketable Equity Securities (Details) - Marketable Equity Securities - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Debt and Equity Securities, FV-NI
Current assets	$ 1.8	$ 3.6
Other long-term assets	62.2	53.6
Marketable equity securities	$ 64.0	$ 57.2

Acquisitions (Tables)

6 Months Ended

Jul. 01, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Price and Related Allocation

The preliminary purchase price and related allocation are shown below (in millions):


	July 1, 2023
Preliminary purchase price, net of acquired cash	$	174.5

Property, plant and equipment	49.7
Other assets purchased and liabilities assumed, net	37.9
Goodwill	69.9
Intangible assets	17.0
Preliminary purchase price allocation	$	174.5

Leases - Summary of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Leases [Abstract]
Operating lease expense	$ 45.3	$ 40.9	$ 89.5	$ 82.3
Short-term lease expense	5.1	5.4	10.2	10.8
Variable lease expense	2.4	2.1	5.0	4.1
Total lease expense	$ 52.8	$ 48.4	$ 104.7	$ 97.2

Goodwill and Indefinite-Lived Intangible Assets (Tables)

6 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

A summary of the changes in the carrying amount of goodwill, by operating segment, in the six months ended July 1, 2023, is shown below (in millions):


	Seating		E-Systems		Total
Balance at January 1, 2023	$	1,261.1	$	399.5	$	1,660.6
Acquisition	69.9		—		69.9
Foreign currency translation and other	10.7		(5.4)		5.3
Balance at July 1, 2023	$	1,341.7	$	394.1	$	1,735.8

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

Leases - Summary of Weighted Average Lease Term and Discount Rate (Details)	Jul. 01, 2023
Leases [Abstract]
Weighted average remaining lease term	7 years
Weighted average discount rate	3.80%

Goodwill and Indefinite-Lived Intangible Assets

6 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-Lived Intangible Assets

Goodwill

A summary of the changes in the carrying amount of goodwill, by operating segment, in the six months ended July 1, 2023, is shown below (in millions):


	Seating		E-Systems		Total
Balance at January 1, 2023	$	1,261.1	$	399.5	$	1,660.6
Acquisition	69.9		—		69.9
Foreign currency translation and other	10.7		(5.4)		5.3
Balance at July 1, 2023	$	1,341.7	$	394.1	$	1,735.8

There was no impairment of goodwill in the first six months of 2023 and 2022. The Company will, however, continue to assess the impact of significant industry and other events on its recorded goodwill.

For further information related to the acquisition, see Note 3, "Acquisitions."

Indefinite-Lived Intangible Assets

In the three and six months ended July 2, 2022, the Company recognized an impairment charge of $8.9 million related to an intangible asset of its E-Systems segment resulting from a change in the intended use of such asset. The impairment charge is included in amortization of intangible assets in the accompanying condensed consolidated statements of comprehensive income (loss).

Pre-Production Costs Related to Long-Term Supply Agreements - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized pre-production E&D costs	$ 115.7	$ 133.9
Capitalized pre-production tooling costs related to customer-owned tools	80.0	104.5
Cash collected related to E&D and tooling costs	$ 151.0	$ 167.5

Income Taxes

6 Months Ended

Jul. 01, 2023

Income Tax Disclosure [Abstract]

Income Taxes

A summary of the provision for income taxes and the corresponding effective tax rate for the three and six months ended July 1, 2023 and July 2, 2022, is shown below (in millions, except effective tax rates):


	Three Months Ended						Six Months Ended
	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
Provision for income taxes	$	41.5		$	23.5		$	87.1		$	43.9
Pretax income before equity in net income of affiliates	$	212.5		$	104.8		$	411.9		$	181.1
Effective tax rate	19.5		%	22.4		%	21.1		%	24.2		%

The Company's provision for income taxes is impacted by the level and mix of earnings among tax jurisdictions. In addition, the Company recognized discrete tax benefits (expense) on the significant items shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Restructuring charges and various other items	$	10.2	$	18.8
Release of tax reserves	2.3		4.7
Share-based compensation	(0.5)		1.4
Valuation allowances on deferred tax assets	5.1		0.5
	$	17.1	$	25.4

Excluding the items above, the effective tax rate for the first six months of 2023 and 2022 approximated the U.S. federal statutory income tax rate of 21%, adjusted for income taxes on foreign earnings, losses and remittances, valuation allowances, tax credits, income tax incentives and other permanent items.

For further information related to the Company's income taxes, see Note 9, "Income Taxes," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Acquisitions

6 Months Ended

Jul. 01, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

I.G. Bauerhin

On April 26, 2023, the Company completed the acquisition of I.G. Bauerhin ("IGB"), a privately held supplier of automotive seat heating, ventilation, active cooling, steering wheel heating, seat sensors and electronic control modules, headquartered in Grundau-Rothenbergen, Germany. IGB has more than 4,600 employees at nine manufacturing plants in seven countries. The acquisition of IGB furthers the Company's comprehensive strategy to develop and integrate a complete portfolio of thermal comfort systems for automotive seating.

The acquisition of IGB was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated balance sheet as of July 1, 2023. The operating results and cash flows of IGB are included in the accompanying condensed consolidated financial statements from the date of acquisition in the Company's Seating segment.

The preliminary purchase price and related allocation are shown below (in millions):


	July 1, 2023
Preliminary purchase price, net of acquired cash	$	174.5

Property, plant and equipment	49.7
Other assets purchased and liabilities assumed, net	37.9
Goodwill	69.9
Intangible assets	17.0
Preliminary purchase price allocation	$	174.5

Goodwill recognized is primarily attributable to the assembled workforce and expected synergies related to future growth.

Intangible assets consist of amounts recognized for the fair value of developed technology and customer-based assets which were both based on an independent appraisal. Developed technology assets have a weighted average useful life of approximately nine years. Customer-based assets include IGB's established relationships with its customers and the ability of these customers to generate future economic profits for the Company and have a weighted average useful life of approximately thirteen years.

The purchase price and related allocation are preliminary and may be revised as a result of further adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, certain tax attributes and contingent liabilities, and revisions of provisional estimates of fair values resulting from the completion of independent appraisals and valuations of property, plant and equipment and intangible assets.

The Company incurred transaction costs of $0.2 million and $1.4 million in the first six months of 2023 and 2022, respectively. These costs were expensed as incurred and are recorded in selling, general and administrative expenses.

The pro-forma effects of this acquisition do not materially impact the Company's reported results for any period presented.

For further information related to acquired assets measured at fair value, see Note 19, "Financial Instruments."

Kongsberg ICS

On February 28, 2022, the Company completed the acquisition of substantially all of Kongsberg Automotive's Interior Comfort Systems business unit ("Kongsberg ICS"). The acquisition of Kongsberg ICS was accounted for as a business combination, and accordingly, the assets acquired and liabilities assumed are included in the accompanying condensed consolidated balance sheets. The operating results and cash flows of Kongsberg ICS are included in the condensed consolidated financial statements from the date of acquisition in the Company's Seating segment. For further information related to the acquisition of Kongsberg ICS, see Note 4, "Acquisition of Kongsberg ICS," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Acquisitions - Narrative (Details) - I.G. Bauerhin $ in Millions	6 Months Ended
	Jul. 01, 2023 USD ($)	Jul. 02, 2022 USD ($)	Apr. 26, 2023 employee plant segment
Business Acquisition
Number of employees (more than) \| employee			4,600
Number of manufacturing plants \| plant			9
Number of countries operated \| segment			7
Transaction costs \| $	$ 0.2	$ 1.4
Developed Technology Rights
Business Acquisition
Weighted average useful life (years)	9 years
Customer Relationships
Business Acquisition
Weighted average useful life (years)	13 years

Debt - Narrative (Details) - USD ($)

1 Months Ended

6 Months Ended

Dec. 31, 2022

Nov. 30, 2022

Jul. 01, 2023

May 01, 2023

Oct. 28, 2021

Debt Instrument

Short-term borrowings

$ 9,900,000

$ 26,900,000

^[1]

Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument

Basis spread on variable rate (as a percent)

1.525%

1.00%

Term Loan | I.G. Bauerhin

Debt Instrument

Line of credit facility, maximum borrowing capacity

$ 150,000,000

Line of Credit

Debt Instrument

Line of credit facility, maximum borrowing capacity

$ 298,200,000

$ 297,200,000

Credit Agreement | Minimum

Debt Instrument

Line of credit facility, facility fee (as a percent)

0.075%

Credit Agreement | Maximum

Debt Instrument

Line of credit facility, facility fee (as a percent)

0.20%

Credit Agreement | Credit Agreement — Revolving Credit Facility

Debt Instrument

Line of credit facility, maximum borrowing capacity

$ 2,000,000,000

Borrowings outstanding under revolving credit facility

$ 0

[1]

Unaudited

Legal and Other Contingencies - Narrative (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Reserves for pending legal disputes, including commercial disputes and other matters	$ 15.1	$ 15.9
Environmental reserves	$ 8.1	$ 7.9

Legal and Other Contingencies (Tables)

6 Months Ended

Jul. 01, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Changes in Reserves for Product Liability and Warranty Claims

A summary of the changes in reserves for product warranty and recall matters for the six months ended July 1, 2023, is shown below (in millions):


Balance at January 1, 2023	$	30.4
Expense, net (including changes in estimates)	2.9
Settlements	(8.8)
Foreign currency translation and other	4.9
Balance at July 1, 2023	$	29.4

Current Operating Environment	6 Months Ended
Current Operating Environment	Jul. 01, 2023
Unusual or Infrequent Items, or Both [Abstract]
Current Operating Environment	Current Operating Environment Since 2020, the automotive industry has experienced a decline in global production volumes. Although industry production has recovered modestly, production remains below recent historic levels. Further, the global economy, as well as the automotive industry, have been influenced directly and indirectly by macroeconomic events resulting in unfavorable conditions, including shortages of semiconductor chips and other components, elevated inflation levels, higher interest rates, and labor and energy shortages in certain markets. These factors, amongst others, continue to impact consumer demand as well as the ability of automotive manufactures to produce vehicles to meet demand. The accompanying condensed consolidated financial statements reflect estimates and assumptions made by management as of July 1, 2023, and for the six months then ended. Such estimates and assumptions affect, among other things, the Company's goodwill; long-lived asset valuations; inventory valuations; valuations of deferred income taxes and income tax contingencies; and credit losses related to the Company's financial instruments. Events and circumstances arising after July 1, 2023, will be reflected in management's estimates and assumptions in future periods.

Restructuring - Summary of Restructuring Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Restructuring Cost and Reserve
Employee termination benefits			$ 33.0	$ 57.4
Asset impairment charges			2.2	1.1
Contract termination costs			1.3	1.9
Other related costs			4.1	4.9
Restructuring costs and asset impairment charges	$ 33.5	$ 41.8	48.1	71.7
Property, plant and equipment
Restructuring Cost and Reserve
Asset impairment charges			0.1	1.1
Right-of-use assets
Restructuring Cost and Reserve
Asset impairment charges	$ 9.6	$ 6.4	$ 9.6	$ 6.4

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pay vs Performance Disclosure
Net income attributable to Lear	$ 168.7	$ 68.5	$ 312.3	$ 117.9

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Property, Plant and Equipment
Depreciation expense	$ 135.2	$ 127.0	$ 266.5	$ 254.7
Asset impairment charges			2.2	1.1
Property, plant and equipment
Property, Plant and Equipment
Asset impairment charges			0.1	$ 1.1
E-Systems
Property, Plant and Equipment
Impairment of intangible assets, finite lived	$ 1.0		$ 1.9

Financial Instruments - Summary of Notional Amount, Estimated Aggregate Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Derivatives, Fair Value
Total fair value	$ 201.4	$ 67.7
Notional amount	2,365.3	2,455.5
Designated as Hedging Instrument \| Net investment hedges
Derivatives, Fair Value
Notional amount	$ 150.0	$ 150.0
Designated as Hedging Instrument \| Net investment hedges \| Maximum
Derivatives, Fair Value
Outstanding maturities in months, not to exceed	33 months	39 months
Foreign currency contracts \| Designated as Hedging Instrument \| Cash Flow Hedge
Derivatives, Fair Value
Other current assets	$ 160.1	$ 63.4
Other long-term assets	30.8	10.3
Other current liabilities	(0.5)	(6.7)
Other long-term liabilities	(0.1)	(0.2)
Total fair value	190.3	66.8
Notional amount	$ 1,582.4	$ 1,546.9
Foreign currency contracts \| Designated as Hedging Instrument \| Cash Flow Hedge \| Maximum
Derivatives, Fair Value
Outstanding maturities in months, not to exceed	24 months	24 months
Foreign currency contracts \| Not Designated as Hedging Instrument
Derivatives, Fair Value
Other current assets	$ 10.2	$ 9.5
Other current liabilities	(0.6)	(13.4)
Total fair value	9.6	(3.9)
Notional amount	$ 632.9	$ 758.6
Foreign currency contracts \| Not Designated as Hedging Instrument \| Maximum
Derivatives, Fair Value
Outstanding maturities in months, not to exceed	4 months	7 months
Cross currency interest rate contract \| Designated as Hedging Instrument \| Net investment hedges
Derivatives, Fair Value
Other long-term assets	$ 1.5	$ 4.8

Financial Instruments - Summary of Pretax Amounts Recognized in and Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Financial Instruments
Net investment hedge contracts	$ (2.5)	$ 19.1	$ (3.3)	$ 19.4
Gains (losses) recognized in accumulated other comprehensive loss	93.8	11.6	188.7	51.4
(Gains) losses reclassified from accumulated other comprehensive loss	(44.9)	(9.7)	(67.3)	(17.7)
Comprehensive income	48.9	1.9	121.4	33.7
Net sales
Financial Instruments
(Gains) losses reclassified from accumulated other comprehensive loss	(0.3)	(3.3)	0.4	(4.9)
Cost of sales
Financial Instruments
(Gains) losses reclassified from accumulated other comprehensive loss	(45.2)	(7.0)	(69.3)	(14.0)
Interest expense
Financial Instruments
(Gains) losses reclassified from accumulated other comprehensive loss	0.6	0.6	1.2	1.2
Other expense, net
Financial Instruments
(Gains) losses reclassified from accumulated other comprehensive loss	0.0	0.0	0.4	0.0
Foreign currency contracts
Financial Instruments
Foreign currency contracts	96.3	(7.5)	192.0	32.0
Net investment hedge contracts
Financial Instruments
Net investment hedge contracts	$ (2.5)	$ 19.1	$ (3.3)	$ 19.4

Segment Reporting - Summary of Revenues from External Customers and Other Financial Information by Reportable Operating Segment (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jul. 01, 2023

Jul. 02, 2022

Jul. 01, 2023

Jul. 02, 2022

Dec. 31, 2022

Segment Reporting Information

Revenues from external customers

$ 5,999.2

$ 5,071.0

$ 11,844.7

$ 10,279.4

Segment earnings

258.2

144.1

495.5

272.6

Depreciation and amortization

151.2

151.6

298.4

295.0

Capital expenditures

168.3

172.2

280.1

302.5

Total assets

14,798.5

^[1]

13,345.4

14,798.5

^[1]

13,345.4

$ 13,763.0

Other

Segment Reporting Information

Revenues from external customers

0.0

Segment earnings

(87.6)

(71.8)

(178.4)

(159.3)

Depreciation and amortization

5.2

4.7

10.3

9.1

Capital expenditures

5.3

6.4

9.9

13.5

Total assets

1,892.2

1,827.3

1,892.2

1,827.3

Seating

Segment Reporting Information

Revenues from external customers

4,468.1

3,874.1

8,921.1

7,786.6

Seating | Operating segments

Segment Reporting Information

Revenues from external customers

4,468.1

3,874.1

8,921.1

7,786.6

Segment earnings

292.9

213.9

578.7

414.0

Depreciation and amortization

98.6

93.5

194.5

186.3

Capital expenditures

89.3

105.8

152.9

182.9

Total assets

8,852.3

7,987.2

8,852.3

7,987.2

E-Systems

Segment Reporting Information

Revenues from external customers

1,531.1

1,196.9

2,923.6

2,492.8

E-Systems | Operating segments

Segment Reporting Information

Revenues from external customers

1,531.1

1,196.9

2,923.6

2,492.8

Segment earnings

52.9

2.0

95.2

17.9

Depreciation and amortization

47.4

53.4

93.6

99.6

Capital expenditures

73.7

60.0

117.3

106.1

Total assets

$ 4,054.0

$ 3,530.9

$ 4,054.0

$ 3,530.9

[1]

Unaudited

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions	6 Months Ended
	Jul. 01, 2023 USD ($)
Decrease in accounts payable	$ (409.6)
I.G. Bauerhin
Decrease in accounts payable	$ 15.4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Statement of Stockholders' Equity [Abstract]
Net issuances of shares held in treasury in settlement of stock-based compensation (in shares)	15,172	22,160	140,838	162,872
Number of shares repurchased (in shares)	286,630	380,220	469,532	380,220
Average price per share (in dollars per share)	$ 132.58	$ 131.92	$ 134.39	$ 131.92

Restructuring - Summary of Restructuring Reserves (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Restructuring Reserve
Accrual as of beginning of period	$ 82.9
Provision for employee termination benefits	33.0	$ 57.4
Payments, utilizations and foreign currency	(35.4)
Accrual as of end of period	$ 80.5

Leases

6 Months Ended

Jul. 01, 2023

Leases [Abstract]

Leases

The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles. Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions):


	July 1, 2023		December 31, 2022
Right-of-use assets under operating leases:
Other long-term assets	$	725.0	$	701.8
Lease obligations under operating leases:
Accrued liabilities	$	149.8	$	136.8
Other long-term liabilities	617.6		595.1
	$	767.4	$	731.9

Maturities of lease obligations as of July 1, 2023, are shown below (in millions):


	July 1, 2023
2023 (1)	$	90.5
2024	162.5
2025	139.1
2026	115.5
2027	95.8
Thereafter	262.4
Total undiscounted cash flows	865.8
Less: Imputed interest	(98.4)
Lease obligations under operating leases	$	767.4

(1) For the remaining six months

Cash flow information related to operating leases is shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	100.9	$	101.2
Operating cash flows:
Cash paid related to operating lease obligations	$	89.6	$	81.2

In addition to the right-of-use assets obtained in exchange for operating lease obligations shown above, in the three and six months ended July 1, 2023, the Company acquired $14.3 million of right-of-use assets and related lease obligations in conjunction with its acquisition of IGB (Note 3, "Acquisitions").

Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions):


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Operating lease expense	$	45.3	$	40.9	$	89.5	$	82.3
Short-term lease expense	5.1		5.4		10.2		10.8
Variable lease expense	2.4		2.1		5.0		4.1
Total lease expense	$	52.8	$	48.4	$	104.7	$	97.2

In the three and six months ended July 1, 2023 and July 2, 2022, the Company recognized impairment charges of $9.6 million and $6.4 million, respectively, related to its right-of-use assets in conjunction with its restructuring actions (see Note 4, "Restructuring").

The weighted average lease term and discount rate for operating leases are shown below:


	July 1, 2023
Weighted average remaining lease term	Seven years
Weighted average discount rate	3.8	%

The Company is party to finance lease agreements, which are not material to the accompanying condensed consolidated financial statements (Note 9, "Debt").

For further information related to the Company's leases, see Note 8, "Leases," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Comprehensive Income (Loss) and Equity - Summary of Dividends Declared and Paid (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Equity [Abstract]
Dividends declared	$ 46.3	$ 46.6	$ 93.0	$ 93.4
Dividends paid			$ 92.1	$ 93.5

Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 41.5	$ 23.5	$ 87.1	$ 43.9
Pretax income before equity in net income of affiliates	$ 212.5	$ 104.8	$ 411.9	$ 181.1
Effective tax rate (in percent)	19.50%	22.40%	21.10%	24.20%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Comprehensive Income (Loss) and Equity - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		147 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Apr. 01, 2023
Equity [Abstract]
Aggregate Repurchases			$ 63.1
Cash Paid for Repurchases			$ 53.3	$ 50.2
Number of shares repurchased (in shares)	286,630	380,220	469,532	380,220
Average price per share (in dollars per share)	$ 132.58	$ 131.92	$ 134.39	$ 131.92	$ 91.93
Remaining Purchase Authorization	$ 1,166.3		$ 1,166.3

Restructuring - Summary of Segment Location (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges	$ 33.5	$ 41.8	$ 48.1	$ 71.7
Operating segments \| Seating
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges	24.9	18.2	36.9	34.8
Operating segments \| E-Systems
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges	7.7	18.6	10.0	31.9
Other
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges	$ 0.9	$ 5.0	$ 1.2	$ 5.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Pension and Other Postretirement Benefit Plans - Narrative (Details) - Pension $ in Millions	6 Months Ended
	Jul. 01, 2023 USD ($)
Defined Benefit Plan Disclosure
Employer's contribution towards defined benefit plan	$ 5.3
Minimum
Defined Benefit Plan Disclosure
Estimated employer's contribution towards defined benefit plan in current year	6.0
Maximum
Defined Benefit Plan Disclosure
Estimated employer's contribution towards defined benefit plan in current year	$ 10.0

Pre-Production Costs Related to Long-Term Supply Agreements - Summary of Classification of Recoverable Customer Engineering, Development and Tooling Costs Related to Long-term Supply Agreements (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Pre Production Costs Related to Long Term Supply Arrangements
Recoverable customer E&D and tooling	$ 388.0	$ 337.0
Current
Pre Production Costs Related to Long Term Supply Arrangements
Recoverable customer E&D and tooling	218.5	175.7
Long-term
Pre Production Costs Related to Long Term Supply Arrangements
Recoverable customer E&D and tooling	$ 169.5	$ 161.3

Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jul. 01, 2023

Retirement Benefits [Abstract]

Schedule of Net Periodic Pension and Other Postretirement Benefit (Credit) Cost

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


	Three Months Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
	U.S.		Foreign		U.S.		Foreign		U.S.		Foreign		U.S.		Foreign
Service cost	$	—	$	0.8	$	—	$	1.1	$	—	$	1.6	$	—	$	2.1
Interest cost	5.2		4.2		3.8		2.9		10.4		8.3		7.7		5.8
Expected return on plan assets	(5.2)		(4.1)		(5.9)		(4.4)		(10.2)		(8.1)		(11.9)		(8.8)
Amortization of actuarial loss	0.3		0.5		0.5		1.0		0.5		1.0		1.0		2.1


Settlement (gain) loss	—		—		—		—		(0.1)		—		0.4		—
Net periodic benefit (credit) cost	$	0.3	$	1.4	$	(1.6)	$	0.6	$	0.6	$	2.8	$	(2.8)	$	1.2

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


	Three Months Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
	U.S.		Foreign		U.S.		Foreign		U.S.		Foreign		U.S.		Foreign

Interest cost	$	0.4	$	0.3	$	0.4	$	0.2	$	0.8	$	0.5	$	0.8	$	0.4
Amortization of actuarial gain	(0.8)		(0.1)		(0.3)		—		(1.7)		(0.1)		(0.6)		—
Amortization of prior service credit	(0.1)		—		(0.1)		—		(0.1)		—		(0.1)		—


Net periodic benefit (credit) cost	$	(0.5)	$	0.2	$	—	$	0.2	$	(1.0)	$	0.4	$	0.1	$	0.4

Financial Instruments - Summary of Net Gains (Losses) Expected to be Reclassified into Earnings (Details) $ in Millions	6 Months Ended
	Jul. 01, 2023 USD ($)
Fair Value Disclosures [Abstract]
Foreign currency contracts	$ 159.6
Interest rate swap contracts	(2.4)
Total	$ 157.2

Comprehensive Income (Loss) and Equity - Summary of Changes, Net of Tax, in Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jul. 01, 2023

Jul. 02, 2022

Jul. 01, 2023

Jul. 02, 2022

Accumulated Other Comprehensive Income (Loss)

Balance at beginning of period

$ 5,029.4

$ 4,825.9

$ 4,830.3

$ 4,808.4

Balance at end of period

5,091.3

^[1]

4,547.9

5,091.3

^[1]

4,547.9

Defined benefit plans:

Accumulated Other Comprehensive Income (Loss)

Balance at beginning of period

(95.7)

(198.5)

(95.7)

(199.4)

Reclassification adjustments

(0.3)

0.9

(0.6)

2.3

Other comprehensive income (loss) recognized during the period

(0.3)

3.1

0.0

2.6

Balance at end of period

(96.3)

(194.5)

(96.3)

(194.5)

Reclassification adjustments, tax expense (benefit)

0.1

0.2

0.1

0.5

Derivative instruments and hedging:

Accumulated Other Comprehensive Income (Loss)

Balance at beginning of period

91.8

6.4

33.4

(18.6)

Reclassification adjustments

(35.8)

(7.8)

(53.6)

(14.4)

Other comprehensive income (loss) recognized during the period

77.0

(5.8)

153.2

25.8

Balance at end of period

133.0

(7.2)

133.0

(7.2)

Reclassification adjustments, tax expense (benefit)

(9.1)

(1.9)

(13.7)

(3.3)

Other comprehensive income (loss) recognized during the period, tax expense (benefit)

19.3

(1.7)

38.8

6.2

Foreign currency translation:

Accumulated Other Comprehensive Income (Loss)

Balance at beginning of period

(700.9)

(570.5)

(742.8)

(552.2)

Other comprehensive income (loss) recognized during the period

(17.5)

(182.0)

24.4

(200.3)

Balance at end of period

(718.4)

(752.5)

(718.4)

(752.5)

Other comprehensive income (loss) recognized during the period, tax expense (benefit)

(0.5)

4.0

(0.7)

4.4

Accumulated Other Comprehensive Loss, Net of Tax

Accumulated Other Comprehensive Income (Loss)

Balance at beginning of period

(704.8)

(762.6)

(805.1)

(770.2)

Balance at end of period

$ (681.7)

$ (954.2)

$ (681.7)

$ (954.2)

[1]

Unaudited

Net Income Per Share Attributable to Lear

6 Months Ended

Jul. 01, 2023

Earnings Per Share [Abstract]

Net Income Per Share Attributable to Lear

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Net income attributable to Lear	$	168.7	$	68.5	$	312.3	$	117.9

Average common shares outstanding	59,133,427		59,899,061		59,224,991		59,915,636
Dilutive effect of common stock equivalents	232,740		196,580		237,575		237,989
Average diluted shares outstanding	59,366,167		60,095,641		59,462,566		60,153,625

Basic net income per share attributable to Lear	$	2.85	$	1.14	$	5.27	$	1.97

Diluted net income per share attributable to Lear	$	2.84	$	1.14	$	5.25	$	1.96

Legal and Other Contingencies - Summary of Product Liability and Warranty Claims (Details) $ in Millions	6 Months Ended
	Jul. 01, 2023 USD ($)
Movement in Standard Product Warranty Accrual
Balance at January 1, 2023	$ 30.4
Expense, net (including changes in estimates)	2.9
Settlements	(8.8)
Foreign currency translation and other	4.9
Balance at July 1, 2023	$ 29.4

Restructuring

6 Months Ended

Jul. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring

RestructuringRestructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. Employee termination benefits are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Other incremental costs principally include equipment and personnel relocation costs. In addition to restructuring costs, the Company 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 condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded when restructuring actions are approved, communicated and/or implemented.

A summary of the changes in the Company's restructuring reserves is shown below (in millions):


Balance at January 1, 2023	$	82.9
Provision for employee termination benefits	33.0
Payments, utilizations and foreign currency	(35.4)
Balance at July 1, 2023	$	80.5

Charges recorded in connection with the Company's restructuring actions are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Employee termination benefits	$	33.0	$	57.4
Asset impairments -
Property, plant and equipment	0.1		1.1
Right-of-use assets	9.6		6.4
Contract termination costs	1.3		1.9
Other related costs	4.1		4.9
	$	48.1	$	71.7

Restructuring charges by income statement line item are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Cost of sales	$	41.2	$	54.4
Selling, general and administrative expenses	6.9		17.3

	$	48.1	$	71.7

Restructuring charges by operating segment are shown below (in millions):


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Seating	$	24.9	$	18.2	$	36.9	$	34.8
E-Systems	7.7		18.6		10.0		31.9
Other	0.9		5.0		1.2		5.0
	$	33.5	$	41.8	$	48.1	$	71.7

The Company expects to incur approximately $20 million and approximately $1 million of additional restructuring costs in its Seating and E-Systems segments, respectively, related to activities initiated as of July 1, 2023, and expects that the components of such costs will be consistent with its historical experience.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Income Statement [Abstract]
Net sales	$ 5,999.2	$ 5,071.0	$ 11,844.7	$ 10,279.4
Cost of sales	5,542.2	4,731.1	10,957.7	9,618.0
Selling, general and administrative expenses	182.8	171.2	359.6	348.5
Amortization of intangible assets	16.0	24.6	31.9	40.3
Interest expense	26.2	24.9	50.4	49.8
Other expense, net	19.5	14.4	33.2	41.7
Consolidated income before provision for income taxes and equity in net income of affiliates	212.5	104.8	411.9	181.1
Provision for income taxes	41.5	23.5	87.1	43.9
Equity in net income of affiliates	(16.2)	(4.3)	(25.8)	(15.0)
Consolidated net income	187.2	85.6	350.6	152.2
Less: Net income attributable to noncontrolling interests	18.5	17.1	38.3	34.3
Net income attributable to Lear	$ 168.7	$ 68.5	$ 312.3	$ 117.9
Basic net income per share attributable to Lear (in dollars per share)	$ 2.85	$ 1.14	$ 5.27	$ 1.97
Diluted net income per share attributable to Lear (in dollars per share)	2.84	1.14	5.25	1.96
Cash dividends declared per share (in dollars per share)	$ 0.77	$ 0.77	$ 1.54	$ 1.54
Average common shares outstanding (in shares)	59,133,427	59,899,061	59,224,991	59,915,636
Average diluted shares outstanding (in shares)	59,366,167	60,095,641	59,462,566	60,153,625
Consolidated comprehensive income (loss) (Condensed Consolidated Statements of Equity)	$ 204.1	$ (112.8)	$ 468.2	$ (38.8)
Less: Comprehensive income attributable to noncontrolling interests	12.3	10.3	32.5	27.3
Comprehensive income (loss) attributable to Lear	$ 191.8	$ (123.1)	$ 435.7	$ (66.1)

Revenue Recognition (Tables)

6 Months Ended

Jul. 01, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Reportable Segment and Geography

A summary of the Company's revenue by reportable operating segment and geography is shown below (in millions):


	Three Months Ended
	July 1, 2023						July 2, 2022
	Seating		E-Systems		Total		Seating		E-Systems		Total
North America	$	2,001.4	$	468.4	$	2,469.8	$	1,822.7	$	370.8	$	2,193.5
Europe and Africa	1,567.8		624.7		2,192.5		1,264.1		480.6		1,744.7
Asia	737.1		372.0		1,109.1		631.0		285.0		916.0
South America	161.8		66.0		227.8		156.3		60.5		216.8
	$	4,468.1	$	1,531.1	$	5,999.2	$	3,874.1	$	1,196.9	$	5,071.0


	Six Months Ended
	July 1, 2023						July 2, 2022
	Seating		E-Systems		Total		Seating		E-Systems		Total
North America	$	4,013.3	$	836.5	$	4,849.8	$	3,664.6	$	726.7	$	4,391.3
Europe and Africa	3,164.5		1,259.0		4,423.5		2,533.6		1,002.3		3,535.9
Asia	1,425.4		703.2		2,128.6		1,293.6		652.5		1,946.1
South America	317.9		124.9		442.8		294.8		111.3		406.1
	$	8,921.1	$	2,923.6	$	11,844.7	$	7,786.6	$	2,492.8	$	10,279.4

Other Expense, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Unusual or Infrequent Item, or Both
Foreign currency transaction losses	$ 16.3	$ 5.8	$ 21.1	$ 25.7
Impairment loss			$ 5.0
RUSSIA
Unusual or Infrequent Item, or Both
Foreign currency transaction losses		$ 2.3		$ 13.7

Comprehensive Income (Loss) and Equity

6 Months Ended

Jul. 01, 2023

Equity [Abstract]

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).

Accumulated Other Comprehensive Loss

A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended July 1, 2023, is shown below (in millions):


	Three Months Ended July 1, 2023		Six Months Ended July 1, 2023
Defined benefit plans:
Balance at beginning of period	$	(95.7)	$	(95.7)
Reclassification adjustments (net of tax expense of $0.1 million in the three and six months ended July 1, 2023)	(0.3)		(0.6)
Other comprehensive loss recognized during the period	(0.3)		—
Balance at end of period	$	(96.3)	$	(96.3)
Derivative instruments and hedging:
Balance at beginning of period	$	91.8	$	33.4
Reclassification adjustments (net of tax benefit of $9.1 million and $13.7 million in the three and six months ended July 1, 2023, respectively)	(35.8)		(53.6)
Other comprehensive income recognized during the period (net of tax expense of $19.3 million and $38.8 million in the three and six months ended July 1, 2023, respectively)	77.0		153.2
Balance at end of period	$	133.0	$	133.0
Foreign currency translation:
Balance at beginning of period	$	(700.9)	$	(742.8)
Other comprehensive income (loss) recognized during the period (net of tax benefit of $0.5 million and $0.7 million in the three and six months ended July 1, 2023, respectively)	(17.5)		24.4
Balance at end of period	$	(718.4)	$	(718.4)

Total accumulated other comprehensive loss	$	(681.7)	$	(681.7)

In the three months ended July 1, 2023, foreign currency translation adjustments are primarily related to the weakening of the Chinese renminbi, partially offset by the strengthening of the Euro and the Brazilian real, relative to the U.S. dollar. In the six months ended July 1, 2023, foreign currency translation adjustments are primarily related to the strengthening of the Euro and the Brazilian real, partially offset by the weakening of the Chinese renminbi, relative to the U.S. dollar. In the three and six months ended July 1, 2023, foreign currency translation adjustments include pretax gains of $0.1 million and $0.2 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future.

In the three and six months ended July 1, 2023, foreign currency translation adjustments also include derivative net investment hedge losses of $2.5 million and $3.3 million, respectively.

A summary of changes, net of tax, in accumulated other comprehensive loss for the three and six months ended July 2, 2022, is shown below (in millions):


	Three Months Ended July 2, 2022		Six Months Ended July 2, 2022
Defined benefit plans:
Balance at beginning of period	$	(198.5)	$	(199.4)
Reclassification adjustments (net of tax expense of $0.2 million and $0.5 million in the three and six months ended July 2, 2022, respectively)	0.9		2.3
Other comprehensive income recognized during the period	3.1		2.6
Balance at end of period	$	(194.5)	$	(194.5)
Derivative instruments and hedging:
Balance at beginning of period	$	6.4	$	(18.6)
Reclassification adjustments (net of tax benefit of $1.9 million and $3.3 million in the three and six months ended July 2, 2022, respectively)	(7.8)		(14.4)
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $1.7 million and ($6.2) million in the three and six months ended July 2, 2022, respectively)	(5.8)		25.8
Balance at end of period	$	(7.2)	$	(7.2)
Foreign currency translation:
Balance at beginning of period	$	(570.5)	$	(552.2)
Other comprehensive loss recognized during the period (net of tax expense of $4.0 million and $4.4 million in the three and six months ended July 2, 2022, respectively)	(182.0)		(200.3)
Balance at end of period	$	(752.5)	$	(752.5)

Total accumulated other comprehensive loss	$	(954.2)	$	(954.2)

In the three months ended July 2, 2022, foreign currency translation adjustments are primarily related to the weakening of the Euro and, to a lesser extent, the Chinese renminbi and the Brazilian real, relative to the U.S. dollar. In the six months ended July 2, 2022, foreign currency translation adjustments are primarily related to the weakening of the Euro, and to a lesser extent the Chinese renminbi, relative to the U.S. dollar.

In the three and six months ended July 2, 2022, foreign currency translation adjustments include pretax losses of $1.0 million and $1.5 million, respectively, related to intercompany transactions for which settlement is not planned or anticipated in the foreseeable future.

In the three and six months ended July 2, 2022, foreign currency translation adjustments also include derivative net investment hedge gains of $19.1 million and $19.4 million, respectively.

For further information regarding reclassification adjustments related to the Company's defined benefit plans, see Note 11, "Pension and Other Postretirement Benefit Plans." For further information regarding reclassification adjustments related to the Company's derivative and hedging activities, see Note 19, "Financial Instruments."

Lear Corporation Stockholders' Equity

Common Stock Share Repurchase Program

The Company may implement share repurchases through a variety of methods, including, but not limited to, open market purchases, accelerated stock repurchase programs and structured repurchase transactions. The extent to which the Company may repurchase its outstanding common stock and the timing of such repurchases will depend upon its financial condition, results of operations, capital requirements, prevailing market conditions, alternative uses of capital and other factors.

The Company has a common stock share repurchase program (the "Repurchase Program") which permits the discretionary repurchase of its common stock. Since its inception in the first quarter of 2011, the Company's Board of Directors (the "Board") has authorized $6.1 billion in share repurchases under the Repurchase Program, and the Company has repurchased, in aggregate, $4.9 billion of its outstanding common stock, at an average price of $91.93 per share, excluding commissions and

related fees. As of July 1, 2023, the Company had a remaining purchase authorization of $1.2 billion under the Repurchase Program, which expires on December 31, 2024.

Share repurchases in the first six months of 2023 and the remaining purchase authorization as of July 1, 2023, are shown below (in millions, except for share and per share amounts):


Six Months Ended July 1, 2023							As of July 1, 2023
Aggregate Repurchases (1)		Cash Paid for Repurchases		Number of Shares	Average Price per Share (2)		Remaining Purchase Authorization
$	63.1	$	53.3	469,532	$	134.39	$	1,166.3

(1) Excludes excise tax

(2) Excludes commissions

In addition to shares repurchased under the Repurchase Program described above, the Company classifies shares withheld from the settlement of the Company's restricted stock unit and performance share awards to cover tax withholding requirements as common stock held in treasury in the condensed consolidated balance sheets.

Quarterly Dividend

The Board declared quarterly cash dividends of $0.77 per share of common stock in the first and second quarters of 2023 and 2022.

Dividends declared and paid are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Dividends declared	$	93.0	$	93.4
Dividends paid	92.1		93.5

Dividends payable on common shares to be distributed under the Company's stock-based compensation program will be paid when such common shares are distributed.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
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+ Details

Segment Reporting (Tables)

6 Months Ended

Jul. 01, 2023

Segment Reporting [Abstract]

Schedule of Revenues from External Customers and Other Financial Information by Reportable Operating Segment

A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions):


	Three Months Ended July 1, 2023
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	4,468.1	$	1,531.1	$	—	$	5,999.2
Segment earnings (1)	292.9		52.9		(87.6)		258.2
Depreciation and amortization	98.6		47.4		5.2		151.2
Capital expenditures	89.3		73.7		5.3		168.3
Total assets	8,852.3		4,054.0		1,892.2		14,798.5


	Three Months Ended July 2, 2022
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	3,874.1	$	1,196.9	$	—	$	5,071.0
Segment earnings (1)	213.9		2.0		(71.8)		144.1
Depreciation and amortization	93.5		53.4		4.7		151.6
Capital expenditures	105.8		60.0		6.4		172.2
Total assets	7,987.2		3,530.9		1,827.3		13,345.4


	Six Months Ended July 1, 2023
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	8,921.1	$	2,923.6	$	—	$	11,844.7
Segment earnings (1)	578.7		95.2		(178.4)		495.5
Depreciation and amortization	194.5		93.6		10.3		298.4
Capital expenditures	152.9		117.3		9.9		280.1


	Six Months Ended July 2, 2022
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	7,786.6	$	2,492.8	$	—	$	10,279.4
Segment earnings (1)	414.0		17.9		(159.3)		272.6
Depreciation and amortization	186.3		99.6		9.1		295.0
Capital expenditures	182.9		106.1		13.5		302.5

(1) See definition above

Schedule of Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Segment earnings	$	258.2	$	144.1	$	495.5	$	272.6
Interest expense	26.2		24.9		50.4		49.8
Other expense, net	19.5		14.4		33.2		41.7
Consolidated income before provision for income taxes and equity in net income of affiliates	$	212.5	$	104.8	$	411.9	$	181.1

Debt (Tables)

6 Months Ended

Jul. 01, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Debt and Related Weighted Average Interest Rates

A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions):


	July 1, 2023
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
Delayed-Draw Term Loan Facility (the "Term Loan")	$	150.0	$	(0.7)	$	—	$	149.3	6.505%
3.8% Senior Notes due 2027 (the "2027 Notes")	550.0		(1.9)		(1.6)		546.5		3.885%
4.25% Senior Notes due 2029 (the "2029 Notes")	375.0		(1.8)		(0.7)		372.5		4.288%
3.5% Senior Notes due 2030 (the "2030 Notes")	350.0		(1.9)		(0.5)		347.6		3.525%
2.6% Senior Notes due 2032 (the "2032 Notes")	350.0		(2.6)		(0.7)		346.7		2.624%
5.25% Senior Notes due 2049 (the "2049 Notes")	625.0		(5.7)		12.9		632.2		5.103%
3.55% Senior Notes due 2052 (the "2052 Notes")	350.0		(3.8)		(0.5)		345.7		3.558%
Other	1.0		—		—		1.0		N/A
	$	2,751.0	$	(18.4)	$	8.9	$	2,741.5
Less — Current portion							(0.1)
Long-term debt							$	2,741.4


	December 31, 2022
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
2027 Notes	$	550.0	$	(2.1)	$	(1.8)	$	546.1	3.885%
2029 Notes	375.0		(2.0)		(0.7)		372.3		4.288%
2030 Notes	350.0		(2.0)		(0.6)		347.4		3.525%
2032 Notes	350.0		(2.8)		(0.7)		346.5		2.624%
2049 Notes	625.0		(6.0)		13.2		632.2		5.103%
2052 Notes	350.0		(3.8)		(0.5)		345.7		3.558%
Other	11.8		—		—		11.8		N/A
	$	2,611.8	$	(18.7)	$	8.9	2,602.0
Less — Current portion							(10.8)
Long-term debt							$	2,591.2

Senior Notes

The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes, 2032 Notes, 2049 Notes and 2052 Notes (collectively, the "Notes") are shown below:

Note

Issuance Date(s)

Maturity Date

Interest Payment Dates

2027 Notes

August 2017

September 15, 2027

March 15 and September 15

2029 Notes

May 2019

May 15, 2029

May 15 and November 15

2030 Notes

February 2020

May 30, 2030

May 30 and November 30

2032 Notes

November 2021

January 15, 2032

January 15 and July 15

2049 Notes

May 2019 and February 2020

May 15, 2049

May 15 and November 15

2052 Notes

November 2021

January 15, 2052

January 15 and July 15

Schedule of Credit Agreement Interest Rate Ranges

As of July 1, 2023, the ranges and rates are as follows:


	Term Benchmark, Central Bank Rate and RFR Loans						ABR and Canadian Prime Rate Loans
					Rate as of						Rate as of
	Minimum		Maximum		July 1, 2023		Minimum		Maximum		July 1, 2023
Credit Agreement	0.925	%	1.450	%	1.125	%	0.000	%	0.450	%	0.125	%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Leases (Tables)

6 Months Ended

Jul. 01, 2023

Leases [Abstract]

Schedule of Right-of-Use Assets and Lease Obligations

Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions):


	July 1, 2023		December 31, 2022
Right-of-use assets under operating leases:
Other long-term assets	$	725.0	$	701.8
Lease obligations under operating leases:
Accrued liabilities	$	149.8	$	136.8
Other long-term liabilities	617.6		595.1
	$	767.4	$	731.9

Schedule of Maturity of Lease Obligations

Maturities of lease obligations as of July 1, 2023, are shown below (in millions):


	July 1, 2023
2023 (1)	$	90.5
2024	162.5
2025	139.1
2026	115.5
2027	95.8
Thereafter	262.4
Total undiscounted cash flows	865.8
Less: Imputed interest	(98.4)
Lease obligations under operating leases	$	767.4

(1) For the remaining six months

Schedule of Cash Flow Information, Lease Expense, Weighted Average Lease Term and Discount Rate

Cash flow information related to operating leases is shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	100.9	$	101.2
Operating cash flows:
Cash paid related to operating lease obligations	$	89.6	$	81.2

Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions):


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Operating lease expense	$	45.3	$	40.9	$	89.5	$	82.3
Short-term lease expense	5.1		5.4		10.2		10.8
Variable lease expense	2.4		2.1		5.0		4.1
Total lease expense	$	52.8	$	48.4	$	104.7	$	97.2

The weighted average lease term and discount rate for operating leases are shown below:


	July 1, 2023
Weighted average remaining lease term	Seven years
Weighted average discount rate	3.8	%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jul. 01, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Goodwill and Indefinite-Lived Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Goodwill [Line Items]
Goodwill, impairment		$ 0	$ 0
E-Systems
Goodwill [Line Items]
Impairment charges of intangible assets	$ 8,900,000		$ 8,900,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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-Topic 350
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+ Details

Financial Instruments

6 Months Ended

Jul. 01, 2023

Fair Value Disclosures [Abstract]

Financial Instruments

Debt Instruments

The carrying values of the Notes vary from their fair values. The fair values of the Notes were determined by reference to the quoted market prices of these securities (Level 2 input based on the GAAP fair value hierarchy). The carrying value of the Company's Term Loan approximates its fair value (Level 3 input based on the GAAP fair value hierarchy). The estimated fair value, as well as the carrying value, of the Company's debt instruments are shown below (in millions):


	July 1, 2023		December 31, 2022
Estimated aggregate fair value (1)	$	2,365.6	$	2,142.3
Aggregate carrying value (1) (2)	2,750.0		2,600.0

(1) Excludes "other" debt

(2) Excludes the impact of unamortized debt issuance costs and unamortized original issue premium (discount)

Cash, Cash Equivalents and Restricted Cash

The Company has cash on deposit that is legally restricted as to use or withdrawal. A reconciliation of cash and cash equivalents reported on the accompanying condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the accompanying condensed consolidated statements of cash flows is shown below (in millions):


	July 1, 2023		July 2, 2022
Balance sheet:
Cash and cash equivalents	$	901.9	$	828.0
Restricted cash included in other current assets	1.4		—
Restricted cash included in other long-term assets	2.0		2.9
Statement of cash flows:
Cash, cash equivalents and restricted cash	$	905.3	$	830.9

Accounts Receivable

Marketable Equity Securities

Marketable equity securities, which the Company accounts for under the fair value option, are included in the accompanying condensed consolidated balance sheets as shown below (in millions):


	July 1, 2023		December 31, 2022
Current assets	$	1.8	$	3.6
Other long-term assets	62.2		53.6
	$	64.0	$	57.2

Equity Securities Without Readily Determinable Fair Values

As of July 1, 2023 and December 31, 2022, investments in equity securities without readily determinable fair values of $13.2 million and $18.2 million, respectively, are included in other long-term assets in the accompanying condensed consolidated balance sheets. Such investments are valued at cost, less cumulative impairments of $15.0 million and $10.0 million as of July 1, 2023 and December 31, 2022, respectively. During the six months ended July 1, 2023, the Company recognized an impairment charge of $5.0 million related to its investment in an affiliate.

Derivative Instruments and Hedging Activities

Foreign Exchange

Foreign currency derivative contracts not designated as hedging instruments consist principally of hedges of cash transactions, intercompany loans and certain other balance sheet exposures.

Net Investment Hedges

The Company uses cross-currency interest rate swaps, which are designated as net investment hedges of the foreign currency rate exposure of its investment in certain Euro-denominated subsidiaries. In the six months ended July 1, 2023 and July 2, 2022, contra interest expense on net investment hedges of $1.2 million and $3.0 million, respectively, is included in interest expense in the accompanying condensed consolidated statements of comprehensive income (loss).

Balance Sheet Classification

The notional amount, estimated aggregate fair value and related balance sheet classification of the Company's foreign currency and net investment hedge contracts are shown below (in millions, except for maturities):


	July 1, 2023		December 31, 2022
Fair value of foreign currency contracts designated as cash flow hedges:
Other current assets	$	160.1	$	63.4
Other long-term assets	30.8		10.3
Other current liabilities	(0.5)		(6.7)
Other long-term liabilities	(0.1)		(0.2)
	190.3		66.8
Notional amount	$	1,582.4	$	1,546.9
Outstanding maturities in months, not to exceed	24		24
Fair value of derivatives designated as net investment hedges:

Other long-term assets	$	1.5	$	4.8



Notional amount	$	150.0	$	150.0
Outstanding maturities in months, not to exceed	33		39
Fair value of foreign currency contracts not designated as hedging instruments:
Other current assets	$	10.2	$	9.5
Other current liabilities	(0.6)		(13.4)
	9.6		(3.9)
Notional amount	$	632.9	$	758.6
Outstanding maturities in months, not to exceed	4		7
Total fair value	$	201.4	$	67.7
Total notional amount	$	2,365.3	$	2,455.5

Accumulated Other Comprehensive Loss — Derivative Instruments and Hedging

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Gains (losses) recognized in accumulated other comprehensive loss:
Foreign currency contracts	$	96.3	$	(7.5)	$	192.0	$	32.0
Net investment hedge contracts	(2.5)		19.1		(3.3)		19.4
	93.8		11.6		188.7		51.4
(Gains) losses reclassified from accumulated other comprehensive loss to:
Net sales	(0.3)		(3.3)		0.4		(4.9)
Cost of sales	(45.2)		(7.0)		(69.3)		(14.0)
Interest expense	0.6		0.6		1.2		1.2
Other expense, net	—		—		0.4		—
	(44.9)		(9.7)		(67.3)		(17.7)
Comprehensive income	$	48.9	$	1.9	$	121.4	$	33.7

As of July 1, 2023 and December 31, 2022, pretax net gains of $193.2 million and $71.8 million, respectively, related to the Company's derivative instruments and hedging activities were recorded in accumulated other comprehensive loss.

During the next twelve-month period, net gains (losses) expected to be reclassified into earnings are shown below (in millions):


Foreign currency contracts	$	159.6
Interest rate swap contracts	(2.4)

Total	$	157.2

Such gains and losses will be reclassified at the time that the underlying hedged transactions are realized.

Fair Value Measurements


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 at fair value on a recurring basis as of July 1, 2023 and December 31, 2022, are shown below (in millions):


	July 1, 2023
	Frequency	Asset (Liability)		Valuation Technique	Level 1		Level 2		Level 3
Foreign currency contracts, net	Recurring	$	199.9	Market/ Income	$	—	$	199.9	$	—
Net investment hedges	Recurring	1.5		Market/ Income	—		1.5		—
Marketable equity securities	Recurring	64.0		Market	64.0		—		—


	December 31, 2022
	Frequency	Asset (Liability)		Valuation Technique	Level 1		Level 2		Level 3
Foreign currency contracts, net	Recurring	$	62.9	Market/ Income	$	—	$	62.9	$	—
Net investment hedges	Recurring	4.8		Market/ Income	—		4.8		—
Marketable equity securities	Recurring	57.2		Market	57.2		—		—

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, the Company adjusts these discount rates, if required, by an estimate of the credit spread that would be applied by market participants purchasing these contracts from the Company's counterparties. If an estimate of the credit spread is required, 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. As of July 1, 2023 and December 31, 2022, 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 in the first six months of 2023.

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.

As a result of the acquisition of IGB (Note 3, "Acquisitions"), Level 3 fair value estimates related to property, plant and equipment of $49.7 million, developed technology and customer-based intangible assets of $17.0 million and right-of-use assets of $14.3 million are recorded in the accompanying condensed consolidated balance sheet as of July 1, 2023. Fair value estimates of property, plant and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were based on a combination of market and cost approaches, as appropriate. Fair value estimates of developed technology intangible assets were based on the relief from royalty approach. Fair value estimates of customer-based intangible assets were based on the multi-period excess earnings method. Fair value estimates of right-of-use assets were based on a market approach.

In the six months ended July 1, 2023, the Company completed impairment assessments related to certain of its intangible assets resulting from changes in the intended use of such assets and recorded impairment charges of $1.9 million. The fair value estimate of the related asset group was based on management's estimates using a discounted cash flow method.

In the six months ended July 1, 2023, the Company completed an impairment assessment related to certain right-of-assets in conjunction with its restructuring actions and recorded an impairment charge of $9.6 million (Note 4, "Restructuring"). The fair value estimates of the related assets were based on management's estimates using a discounted cash flow method.

As of July 1, 2023, there were no additional significant assets or liabilities measured at fair value on a non-recurring basis.

Inventories (Tables)

6 Months Ended

Jul. 01, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

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


	July 1, 2023		December 31, 2022
Raw materials	$	1,281.5	$	1,216.8
Work-in-process	143.3		126.6
Finished goods	442.8		391.9
Reserves	(165.0)		(161.7)
Inventories	$	1,702.6	$	1,573.6

Revenue Recognition - Narrative (Details) - USD ($)	6 Months Ended
Revenue Recognition - Narrative (Details) - USD ($)	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Percentage of net sales to prior years revenue (as a percent)	2.00%	2.00%
Significant contract liabilities recorded	$ 0		$ 0
Significant contract liabilities recognized in revenue	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Jul. 01, 2023

^[1]

Dec. 31, 2022

CURRENT ASSETS:

Cash and cash equivalents

$ 901.9

$ 1,114.9

Accounts receivable

4,259.7

3,451.9

Inventories

1,702.6

1,573.6

Other

967.4

853.7

Total current assets

7,831.6

6,994.1

LONG-TERM ASSETS:

Property, plant and equipment, net

2,913.1

2,854.0

Goodwill

1,735.8

1,660.6

Other

2,318.0

2,254.3

Total long-term assets

6,966.9

6,768.9

Total assets

14,798.5

13,763.0

CURRENT LIABILITIES:

Short-term borrowings

26.9

9.9

Accounts payable and drafts

3,641.3

3,206.1

Accrued liabilities

2,106.9

1,961.5

Current portion of long-term debt

0.1

10.8

Total current liabilities

5,775.2

5,188.3

LONG-TERM LIABILITIES:

Long-term debt

2,741.4

2,591.2

Other

1,190.6

1,153.2

Total long-term liabilities

3,932.0

3,744.4

EQUITY:

Preferred stock, 100,000,000 shares authorized (including 10,896,250 Series A convertible preferred stock authorized); no shares outstanding

0.0

Common stock, $0.01 par value, 300,000,000 shares authorized; 64,571,405 shares issued as of July 1, 2023 and December 31, 2022

0.6

Additional paid-in capital

1,027.1

1,023.1

Common stock held in treasury, 5,821,905 and 5,493,211 shares as of July 1, 2023 and December 31, 2022, respectively, at cost

(797.8)

(753.9)

Retained earnings

5,432.3

5,214.1

Accumulated other comprehensive loss

(681.7)

(805.1)

Lear Corporation stockholders' equity

4,980.5

4,678.8

Noncontrolling interests

110.8

151.5

Equity

5,091.3

4,830.3

Total liabilities and equity

$ 14,798.5

$ 13,763.0

[1]

Unaudited

Inventories

6 Months Ended

Jul. 01, 2023

Inventory Disclosure [Abstract]

Inventories

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


	July 1, 2023		December 31, 2022
Raw materials	$	1,281.5	$	1,216.8
Work-in-process	143.3		126.6
Finished goods	442.8		391.9
Reserves	(165.0)		(161.7)
Inventories	$	1,702.6	$	1,573.6

Acquisitions - Purchase Price and Related Allocation (Details) - USD ($)
$ in Millions

6 Months Ended

Jul. 01, 2023

Dec. 31, 2022

Business Acquisition

Goodwill

$ 1,735.8

^[1]

$ 1,660.6

I.G. Bauerhin

Business Acquisition

Preliminary purchase price, net of acquired cash

174.5

Property, plant and equipment

49.7

Other assets purchased and liabilities assumed, net

37.9

Goodwill

69.9

Intangible assets

17.0

Preliminary purchase price allocation

$ 174.5

[1]

Unaudited

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Inventories (Details) - USD ($)
$ in Millions

Jul. 01, 2023

Dec. 31, 2022

Inventory Disclosure [Abstract]

Raw materials

$ 1,281.5

$ 1,216.8

Work-in-process

143.3

126.6

Finished goods

442.8

391.9

Reserves

(165.0)

(161.7)

Inventories

$ 1,702.6

^[1]

$ 1,573.6

[1]

Unaudited

Debt - Summary of Credit Agreement Interest Rate Ranges (Details) - Credit Agreement - Credit Agreement — Revolving Credit Facility	6 Months Ended
	Jul. 01, 2023
Term Benchmark, Central Bank Rate and RFR Loans
Debt Instrument
Interest rate (as a percent)	1.125%
Term Benchmark, Central Bank Rate and RFR Loans \| Minimum
Debt Instrument
Basis spread on variable rate (as a percent)	0.925%
Term Benchmark, Central Bank Rate and RFR Loans \| Maximum
Debt Instrument
Basis spread on variable rate (as a percent)	1.45%
ABR and Canadian Prime Rate Loans
Debt Instrument
Interest rate (as a percent)	0.125%
ABR and Canadian Prime Rate Loans \| Minimum
Debt Instrument
Basis spread on variable rate (as a percent)	0.00%
ABR and Canadian Prime Rate Loans \| Maximum
Debt Instrument
Basis spread on variable rate (as a percent)	0.45%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Revenue Recognition

6 Months Ended

Jul. 01, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

A summary of the Company's revenue by reportable operating segment and geography is shown below (in millions):


	Three Months Ended
	July 1, 2023						July 2, 2022
	Seating		E-Systems		Total		Seating		E-Systems		Total
North America	$	2,001.4	$	468.4	$	2,469.8	$	1,822.7	$	370.8	$	2,193.5
Europe and Africa	1,567.8		624.7		2,192.5		1,264.1		480.6		1,744.7
Asia	737.1		372.0		1,109.1		631.0		285.0		916.0
South America	161.8		66.0		227.8		156.3		60.5		216.8
	$	4,468.1	$	1,531.1	$	5,999.2	$	3,874.1	$	1,196.9	$	5,071.0


	Six Months Ended
	July 1, 2023						July 2, 2022
	Seating		E-Systems		Total		Seating		E-Systems		Total
North America	$	4,013.3	$	836.5	$	4,849.8	$	3,664.6	$	726.7	$	4,391.3
Europe and Africa	3,164.5		1,259.0		4,423.5		2,533.6		1,002.3		3,535.9
Asia	1,425.4		703.2		2,128.6		1,293.6		652.5		1,946.1
South America	317.9		124.9		442.8		294.8		111.3		406.1
	$	8,921.1	$	2,923.6	$	11,844.7	$	7,786.6	$	2,492.8	$	10,279.4

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Goodwill and Indefinite-Lived Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details)
$ in Millions

6 Months Ended

Jul. 01, 2023

USD ($)

Goodwill

Balance at January 1, 2023

$ 1,660.6

Acquisition

69.9

Foreign currency translation and other

5.3

Balance at July 1, 2023

1,735.8

^[1]

Seating

Goodwill

Balance at January 1, 2023

1,261.1

Acquisition

69.9

Foreign currency translation and other

10.7

Balance at July 1, 2023

1,341.7

E-Systems

Goodwill

Balance at January 1, 2023

399.5

Acquisition

0.0

Foreign currency translation and other

(5.4)

Balance at July 1, 2023

$ 394.1

[1]

Unaudited

- Definition

+ References + Details

Comprehensive Income (Loss) and Equity (Tables)

6 Months Ended

Jul. 01, 2023

Equity [Abstract]

Schedule of Changes, Net of Tax, in Accumulated Other Comprehensive Loss

A summary of changes, net of tax, in accumulated other comprehensive loss for the three months ended July 1, 2023, is shown below (in millions):


	Three Months Ended July 1, 2023		Six Months Ended July 1, 2023
Defined benefit plans:
Balance at beginning of period	$	(95.7)	$	(95.7)
Reclassification adjustments (net of tax expense of $0.1 million in the three and six months ended July 1, 2023)	(0.3)		(0.6)
Other comprehensive loss recognized during the period	(0.3)		—
Balance at end of period	$	(96.3)	$	(96.3)
Derivative instruments and hedging:
Balance at beginning of period	$	91.8	$	33.4
Reclassification adjustments (net of tax benefit of $9.1 million and $13.7 million in the three and six months ended July 1, 2023, respectively)	(35.8)		(53.6)
Other comprehensive income recognized during the period (net of tax expense of $19.3 million and $38.8 million in the three and six months ended July 1, 2023, respectively)	77.0		153.2
Balance at end of period	$	133.0	$	133.0
Foreign currency translation:
Balance at beginning of period	$	(700.9)	$	(742.8)
Other comprehensive income (loss) recognized during the period (net of tax benefit of $0.5 million and $0.7 million in the three and six months ended July 1, 2023, respectively)	(17.5)		24.4
Balance at end of period	$	(718.4)	$	(718.4)

Total accumulated other comprehensive loss	$	(681.7)	$	(681.7)

A summary of changes, net of tax, in accumulated other comprehensive loss for the three and six months ended July 2, 2022, is shown below (in millions):


	Three Months Ended July 2, 2022		Six Months Ended July 2, 2022
Defined benefit plans:
Balance at beginning of period	$	(198.5)	$	(199.4)
Reclassification adjustments (net of tax expense of $0.2 million and $0.5 million in the three and six months ended July 2, 2022, respectively)	0.9		2.3
Other comprehensive income recognized during the period	3.1		2.6
Balance at end of period	$	(194.5)	$	(194.5)
Derivative instruments and hedging:
Balance at beginning of period	$	6.4	$	(18.6)
Reclassification adjustments (net of tax benefit of $1.9 million and $3.3 million in the three and six months ended July 2, 2022, respectively)	(7.8)		(14.4)
Other comprehensive income (loss) recognized during the period (net of tax benefit (expense) of $1.7 million and ($6.2) million in the three and six months ended July 2, 2022, respectively)	(5.8)		25.8
Balance at end of period	$	(7.2)	$	(7.2)
Foreign currency translation:
Balance at beginning of period	$	(570.5)	$	(552.2)
Other comprehensive loss recognized during the period (net of tax expense of $4.0 million and $4.4 million in the three and six months ended July 2, 2022, respectively)	(182.0)		(200.3)
Balance at end of period	$	(752.5)	$	(752.5)

Total accumulated other comprehensive loss	$	(954.2)	$	(954.2)

Schedule of Common Stock Repurchase Program

Share repurchases in the first six months of 2023 and the remaining purchase authorization as of July 1, 2023, are shown below (in millions, except for share and per share amounts):


Six Months Ended July 1, 2023							As of July 1, 2023
Aggregate Repurchases (1)		Cash Paid for Repurchases		Number of Shares	Average Price per Share (2)		Remaining Purchase Authorization
$	63.1	$	53.3	469,532	$	134.39	$	1,166.3

(1) Excludes excise tax

(2) Excludes commissions

Schedule of Dividends Declared and Paid

Dividends declared and paid are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Dividends declared	$	93.0	$	93.4
Dividends paid	92.1		93.5

Other Expense, Net - Summary of Other Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Other Income and Expenses [Abstract]
Other expense	$ 24.2	$ 17.1	$ 41.0	$ 47.1
Other income	(4.7)	(2.7)	(7.8)	(5.4)
Other expense, net	$ 19.5	$ 14.4	$ 33.2	$ 41.7

Accounting Pronouncements	6 Months Ended
Accounting Pronouncements	Jul. 01, 2023
Accounting Changes and Error Corrections [Abstract]
Accounting Pronouncements	Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. ASUs effective in 2023 and ASUs effective in subsequent years that have been issued but not yet adopted were assessed and determined to be either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480016/944-40-65-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Section 65
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
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-URI https://asc.fasb.org//1943274/2147480016/944-40-65-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480016/944-40-65-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 65
-Paragraph 2
-Subparagraph (h)(2)
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-URI https://asc.fasb.org//1943274/2147480016/944-40-65-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480530/250-10-S99-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (b)(4)
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 65
-Paragraph 6
-Subparagraph (i)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480528/815-20-65-6

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 5
-Subparagraph (f)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479832/842-10-65-5

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 5
-Subparagraph (f)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479832/842-10-65-5

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Section 65
-Paragraph 2
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483550/848-10-65-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479343/105-10-65-6

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 65
-Paragraph 8
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482615/740-10-65-8

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 65
-Paragraph 8
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482615/740-10-65-8

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 8
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-URI https://asc.fasb.org//1943274/2147482615/740-10-65-8

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147479654/326-10-65-4

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479654/326-10-65-4

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 926
-SubTopic 20
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483194/926-20-65-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 926
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483194/926-20-65-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 926
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483194/926-20-65-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480530/250-10-S99-6

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//250/tableOfContent

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481925/310-20-65-2

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-SubTopic 20
-Topic 310
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481925/310-20-65-2

+ Details

Income Taxes (Tables)

6 Months Ended

Jul. 01, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes and Corresponding Effective Tax Rate


	Three Months Ended						Six Months Ended
	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
Provision for income taxes	$	41.5		$	23.5		$	87.1		$	43.9
Pretax income before equity in net income of affiliates	$	212.5		$	104.8		$	411.9		$	181.1
Effective tax rate	19.5		%	22.4		%	21.1		%	24.2		%

Schedule of Tax Benefits (Expense)

In addition, the Company recognized discrete tax benefits (expense) on the significant items shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Restructuring charges and various other items	$	10.2	$	18.8
Release of tax reserves	2.3		4.7
Share-based compensation	(0.5)		1.4
Valuation allowances on deferred tax assets	5.1		0.5
	$	17.1	$	25.4

Long-Lived Assets

6 Months Ended

Jul. 01, 2023

Property, Plant and Equipment [Abstract]

Long-Lived Assets

Property, Plant and Equipment

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


	July 1, 2023		December 31, 2022
Land	$	106.5	$	104.6
Buildings and improvements	901.6		868.6
Machinery and equipment	5,089.3		4,871.5
Construction in progress	394.6		378.0
Total property, plant and equipment	6,492.0		6,222.7
Less – accumulated depreciation	(3,578.9)		(3,368.7)
Property, plant and equipment, net	$	2,913.1	$	2,854.0

Depreciation expense was $135.2 million and $127.0 million in the three months ended July 1, 2023 and July 2, 2022, respectively, and $266.5 million and $254.7 million in the six months ended July 1, 2023 and July 2, 2022, respectively.

In the first six months of 2023 and 2022, the Company recognized property, plant and equipment impairment charges of $0.1 million and $1.1 million, respectively, in conjunction with its restructuring actions (Note 4, "Restructuring"). In the first six months of 2023 and 2022, the Company recognized additional property, plant and equipment impairment charges of $2.2 million and $1.1 million, respectively. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income (loss).

Definite-Lived Intangible Assets

In the three and six months ended July 1, 2023, the Company recognized impairment charges of $1.0 million and $1.9 million, respectively, related to certain intangible assets of its E-Systems segment resulting from a change in the intended use of such assets. The impairment charges are included in amortization of intangible assets in the accompanying condensed consolidated statements of comprehensive income (loss)

Net Income Per Share Attributable to Lear (Tables)

6 Months Ended

Jul. 01, 2023

Earnings Per Share [Abstract]

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

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Net income attributable to Lear	$	168.7	$	68.5	$	312.3	$	117.9

Average common shares outstanding	59,133,427		59,899,061		59,224,991		59,915,636
Dilutive effect of common stock equivalents	232,740		196,580		237,575		237,989
Average diluted shares outstanding	59,366,167		60,095,641		59,462,566		60,153,625

Basic net income per share attributable to Lear	$	2.85	$	1.14	$	5.27	$	1.97

Diluted net income per share attributable to Lear	$	2.84	$	1.14	$	5.25	$	1.96

Financial Instruments - Summary of Fair Value Measurements and Related Valuation Techniques and Fair Value Hierarchy Level (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	$ 201.4	$ 67.7
Recurring
Fair Value Measurement Inputs and Valuation Techniques
Marketable equity securities	64.0	57.2
Recurring \| Level 1
Fair Value Measurement Inputs and Valuation Techniques
Marketable equity securities	64.0	57.2
Recurring \| Level 2
Fair Value Measurement Inputs and Valuation Techniques
Marketable equity securities	0.0	0.0
Recurring \| Level 3
Fair Value Measurement Inputs and Valuation Techniques
Marketable equity securities	0.0	0.0
Recurring \| Foreign currency contracts, net
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	199.9	62.9
Recurring \| Foreign currency contracts, net \| Level 1
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	0.0	0.0
Recurring \| Foreign currency contracts, net \| Level 2
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	199.9	62.9
Recurring \| Foreign currency contracts, net \| Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	0.0	0.0
Recurring \| Net investment hedges
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	1.5	4.8
Recurring \| Net investment hedges \| Level 1
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	0.0	0.0
Recurring \| Net investment hedges \| Level 2
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	1.5	4.8
Recurring \| Net investment hedges \| Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset (Liability)	$ 0.0	$ 0.0

Long-Lived Assets (Tables)

6 Months Ended

Jul. 01, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

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


	July 1, 2023		December 31, 2022
Land	$	106.5	$	104.6
Buildings and improvements	901.6		868.6
Machinery and equipment	5,089.3		4,871.5
Construction in progress	394.6		378.0
Total property, plant and equipment	6,492.0		6,222.7
Less – accumulated depreciation	(3,578.9)		(3,368.7)
Property, plant and equipment, net	$	2,913.1	$	2,854.0

Basis of Presentation	6 Months Ended
Basis of Presentation	Jul. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Lear Corporation ("Lear," and together with its consolidated subsidiaries, the "Company") and its affiliates design and manufacture automotive seating and electrical distribution systems and related components. The Company's main customers are automotive original equipment manufacturers. The Company operates facilities worldwide. 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 all entities, including 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.

Other Expense, Net

6 Months Ended

Jul. 01, 2023

Other Income and Expenses [Abstract]

Other Expense, Net

Other expense, net includes non-income related taxes, foreign exchange gains and losses, gains and losses related to certain derivative instruments and hedging activities, gains and losses on the disposal of fixed assets, the non-service cost components of net periodic benefit cost and other miscellaneous income and expense.

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Other expense	$	24.2	$	17.1	$	41.0	$	47.1
Other income	(4.7)		(2.7)		(7.8)		(5.4)
Other expense, net	$	19.5	$	14.4	$	33.2	$	41.7

In the three and six months ended July 1, 2023, other expense includes net foreign currency transaction losses of $16.3 million and $21.1 million, respectively. In the six months ended July 1, 2023, other expense includes a loss of $5.0 million related to the impairment of an affiliate.

In the three and six months ended July 2, 2022, other expense includes net foreign currency transaction losses of $5.8 million and $25.7 million, respectively, including losses of $2.3 million and $13.7 million, respectively, related to foreign exchange rate volatility in Russia

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

6 Months Ended

Jul. 01, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

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


	July 1, 2023		December 31, 2022
Current	$	218.5	$	175.7
Long-term	169.5		161.3
Recoverable customer E&D and tooling	$	388.0	$	337.0

Debt - Summary of Long-Term Debt (Details) - USD ($)
$ in Millions

Jul. 01, 2023

Dec. 31, 2022

Debt Instrument

Other

$ 1.0

$ 11.8

Debt and lease obligation, gross

2,751.0

2,611.8

Unamortized Debt Issuance Costs

(18.4)

(18.7)

Unamortized Original Issue Premium (Discount)

8.9

Debt and lease obligation

2,741.5

2,602.0

Less — Current portion

(0.1)

^[1]

(10.8)

Long-term debt

$ 2,741.4

^[1]

$ 2,591.2

Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]

Long-term debt

Delayed-Draw Term Loan Facility (the "Term Loan")

Debt Instrument

Long-Term Debt

$ 150.0

Unamortized Debt Issuance Costs

(0.7)

Unamortized Original Issue Premium (Discount)

0.0

Long-Term Debt, Net

$ 149.3

Weighted Average Interest Rate

6.505%

Senior Notes | 3.8% Senior Notes due 2027 (the "2027 Notes")

Debt Instrument

Stated interest rate

3.80%

Long-Term Debt

$ 550.0

Unamortized Debt Issuance Costs

(1.9)

(2.1)

Unamortized Original Issue Premium (Discount)

(1.6)

(1.8)

Long-Term Debt, Net

$ 546.5

$ 546.1

Weighted Average Interest Rate

3.885%

Senior Notes | 4.25% Senior Notes due 2029 (the "2029 Notes")

Debt Instrument

Stated interest rate

4.25%

Long-Term Debt

$ 375.0

Unamortized Debt Issuance Costs

(1.8)

(2.0)

Unamortized Original Issue Premium (Discount)

(0.7)

Long-Term Debt, Net

$ 372.5

$ 372.3

Weighted Average Interest Rate

4.288%

Senior Notes | 3.5% Senior Notes due 2030 (the "2030 Notes")

Debt Instrument

Stated interest rate

3.50%

Long-Term Debt

$ 350.0

Unamortized Debt Issuance Costs

(1.9)

(2.0)

Unamortized Original Issue Premium (Discount)

(0.5)

(0.6)

Long-Term Debt, Net

$ 347.6

$ 347.4

Weighted Average Interest Rate

3.525%

Senior Notes | 2.6% Senior Notes due 2032 (the "2032 Notes")

Debt Instrument

Stated interest rate

2.60%

Long-Term Debt

$ 350.0

Unamortized Debt Issuance Costs

(2.6)

(2.8)

Unamortized Original Issue Premium (Discount)

(0.7)

Long-Term Debt, Net

$ 346.7

$ 346.5

Weighted Average Interest Rate

2.624%

Senior Notes | 5.25% Senior Notes due 2049 (the "2049 Notes")

Debt Instrument

Stated interest rate

5.25%

Long-Term Debt

$ 625.0

Unamortized Debt Issuance Costs

(5.7)

(6.0)

Unamortized Original Issue Premium (Discount)

12.9

13.2

Long-Term Debt, Net

$ 632.2

Weighted Average Interest Rate

5.103%

Senior Notes | 3.55% Senior Notes due 2052 (the "2052 Notes")

Debt Instrument

Stated interest rate

3.55%

Long-Term Debt

$ 350.0

Unamortized Debt Issuance Costs

(3.8)

Unamortized Original Issue Premium (Discount)

(0.5)

Long-Term Debt, Net

$ 345.7

Weighted Average Interest Rate

3.558%

[1]

Unaudited

Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Financial Instruments - Narrative (Details) - USD ($)	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Accounts receivable, reserves	$ 32,500,000		$ 32,500,000		$ 35,300,000
Financial Instruments
Accounts receivable, reserves	32,500,000		32,500,000		35,300,000
Investments in equity securities without readily determinable fair values	13,200,000		13,200,000		18,200,000
Cumulative impairment	15,000,000		15,000,000		10,000,000
Impairment loss			(5,000,000)
Interest expense	26,200,000	$ 24,900,000	50,400,000	$ 49,800,000
Derivative contracts classified within Level 3 of fair value hierarchy	0		0		0
Derivative contracts transfers in to Level 3 fair value hierarchy			0
Asset impairment charges			2,200,000	1,100,000
Right-of-use assets
Financial Instruments
Asset impairment charges	9,600,000	$ 6,400,000	9,600,000	6,400,000
I.G. Bauerhin
Financial Instruments
Property, plant and equipment	49,700,000		49,700,000
Right of use asset	14,300,000		14,300,000
Intangible assets	17,000,000.0		17,000,000.0
I.G. Bauerhin \| Developed Technology And customer Based Intangible Assets
Financial Instruments
Intangible assets	17,000,000		17,000,000
E-Systems
Financial Instruments
Impairment of intangible assets, finite lived	1,000,000		1,900,000
Interest Rate Swap \| Net investment hedge contracts \| Designated as Hedging Instrument
Financial Instruments
Interest expense			1,200,000	$ 3,000,000
Foreign currency contracts \| Designated as Hedging Instrument \| Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Financial Instruments
Pretax gains (losses) related to derivative instruments and hedging activities in accumulated other comprehensive loss	$ 193,200,000		$ 193,200,000		$ 71,800,000

Pension and Other Postretirement Benefit Plans

6 Months Ended

Jul. 01, 2023

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefit Plans

The Company sponsors defined benefit pension plans covering certain eligible employees in the United States and certain foreign countries. The Company also sponsors postretirement benefit plans (primarily for the continuation of medical benefits) covering certain eligible retirees in the United States and Canada.

Net Periodic Pension and Other Postretirement Benefit (Credit) Cost

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


	Three Months Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
	U.S.		Foreign		U.S.		Foreign		U.S.		Foreign		U.S.		Foreign
Service cost	$	—	$	0.8	$	—	$	1.1	$	—	$	1.6	$	—	$	2.1
Interest cost	5.2		4.2		3.8		2.9		10.4		8.3		7.7		5.8
Expected return on plan assets	(5.2)		(4.1)		(5.9)		(4.4)		(10.2)		(8.1)		(11.9)		(8.8)
Amortization of actuarial loss	0.3		0.5		0.5		1.0		0.5		1.0		1.0		2.1


Settlement (gain) loss	—		—		—		—		(0.1)		—		0.4		—
Net periodic benefit (credit) cost	$	0.3	$	1.4	$	(1.6)	$	0.6	$	0.6	$	2.8	$	(2.8)	$	1.2

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


	Three Months Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
	U.S.		Foreign		U.S.		Foreign		U.S.		Foreign		U.S.		Foreign

Interest cost	$	0.4	$	0.3	$	0.4	$	0.2	$	0.8	$	0.5	$	0.8	$	0.4
Amortization of actuarial gain	(0.8)		(0.1)		(0.3)		—		(1.7)		(0.1)		(0.6)		—
Amortization of prior service credit	(0.1)		—		(0.1)		—		(0.1)		—		(0.1)		—


Net periodic benefit (credit) cost	$	(0.5)	$	0.2	$	—	$	0.2	$	(1.0)	$	0.4	$	0.1	$	0.4

Contributions

In the six months ended July 1, 2023, employer contributions to the Company's domestic and foreign defined benefit pension plans were $5.3 million. The Company expects contributions to its funded pension plans and benefit payments related to its unfunded pension plans to be $6 million to $10 million in 2023.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (d)(i)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (d)(iii)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (r)(2)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Segment Reporting

6 Months Ended

Jul. 01, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting The Company is organized under two reportable operating segments: Seating, which consists of the design, development, engineering and manufacture of complete seat systems and key seat components, and E-Systems, which consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, battery disconnect units and other electronic products. Key components of the Company's complete seat systems and components are advanced comfort solutions, including thermal, safety and wellness products, as well as configurable seating product technologies. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat foam; thermal comfort systems such as seat massage, lumbar, heat, ventilation and active cooling products; and headrests. Key components of the Company's electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher

A summary of revenues from external customers and other financial information by reportable operating segment is shown below (in millions):


	Three Months Ended July 1, 2023
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	4,468.1	$	1,531.1	$	—	$	5,999.2
Segment earnings (1)	292.9		52.9		(87.6)		258.2
Depreciation and amortization	98.6		47.4		5.2		151.2
Capital expenditures	89.3		73.7		5.3		168.3
Total assets	8,852.3		4,054.0		1,892.2		14,798.5


	Three Months Ended July 2, 2022
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	3,874.1	$	1,196.9	$	—	$	5,071.0
Segment earnings (1)	213.9		2.0		(71.8)		144.1
Depreciation and amortization	93.5		53.4		4.7		151.6
Capital expenditures	105.8		60.0		6.4		172.2
Total assets	7,987.2		3,530.9		1,827.3		13,345.4


	Six Months Ended July 1, 2023
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	8,921.1	$	2,923.6	$	—	$	11,844.7
Segment earnings (1)	578.7		95.2		(178.4)		495.5
Depreciation and amortization	194.5		93.6		10.3		298.4
Capital expenditures	152.9		117.3		9.9		280.1


	Six Months Ended July 2, 2022
	Seating		E-Systems		Other		Consolidated
Revenues from external customers	$	7,786.6	$	2,492.8	$	—	$	10,279.4
Segment earnings (1)	414.0		17.9		(159.3)		272.6
Depreciation and amortization	186.3		99.6		9.1		295.0
Capital expenditures	182.9		106.1		13.5		302.5

(1) See definition above

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Segment earnings	$	258.2	$	144.1	$	495.5	$	272.6
Interest expense	26.2		24.9		50.4		49.8
Other expense, net	19.5		14.4		33.2		41.7
Consolidated income before provision for income taxes and equity in net income of affiliates	$	212.5	$	104.8	$	411.9	$	181.1

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Thousands

Total

Lear Corporation Stockholders' Equity

Common Stock

Additional Paid-In Capital

Common Stock Held in Treasury

Retained Earnings

Accumulated Other Comprehensive Loss, Net of Tax

Non-controlling Interests

Balance at beginning of period at Dec. 31, 2021

$ 4,808,400

$ 4,643,400

$ 600

$ 1,019,400

$ (679,200)

$ 5,072,800

$ (770,200)

$ 165,000

Comprehensive income:

Net income

152,200

117,900

34,300

Other comprehensive income (loss)

(191,000)

(184,000)

(7,000)

Total comprehensive income (loss)

(38,800)

(66,100)

117,900

(184,000)

27,300

Stock-based compensation

25,300

Net issuance of shares held in treasury in settlement of stock-based compensation

(18,400)

(36,700)

18,500

(200)

Repurchase of shares of common stock

(50,200)

Dividends declared to Lear Corporation stockholders

(93,400)

Dividends declared to noncontrolling interest holders

(85,600)

Affiliate transaction

600

Balance at end of period at Jul. 02, 2022

4,547,900

4,440,600

600

1,008,000

(710,900)

5,097,100

(954,200)

107,300

Balance at beginning of period at Apr. 02, 2022

4,825,900

4,650,000

600

1,000,400

(663,800)

5,075,400

(762,600)

175,900

Comprehensive income:

Net income

85,600

68,500

17,100

Other comprehensive income (loss)

(198,400)

(191,600)

(6,800)

Total comprehensive income (loss)

(112,800)

(123,100)

68,500

(191,600)

10,300

Stock-based compensation

11,400

Net issuance of shares held in treasury in settlement of stock-based compensation

(900)

(3,800)

3,100

(200)

Repurchase of shares of common stock

(50,200)

Dividends declared to Lear Corporation stockholders

(46,600)

Dividends declared to noncontrolling interest holders

(78,900)

Balance at end of period at Jul. 02, 2022

4,547,900

4,440,600

600

1,008,000

(710,900)

5,097,100

(954,200)

107,300

Balance at beginning of period at Dec. 31, 2022

4,830,300

4,678,800

600

1,023,100

(753,900)

5,214,100

(805,100)

151,500

Comprehensive income:

Net income

350,600

312,300

38,300

Other comprehensive income (loss)

117,600

123,400

(5,800)

Total comprehensive income (loss)

468,200

435,700

312,300

123,400

32,500

Stock-based compensation

35,100

Net issuance of shares held in treasury in settlement of stock-based compensation

(12,600)

(31,100)

19,600

(1,100)

Repurchase of shares of common stock

(63,500)

Dividends declared to Lear Corporation stockholders

(93,000)

Dividends declared to noncontrolling interest holders

(73,200)

Balance at end of period at Jul. 01, 2023

5,091,300

^[1]

4,980,500

600

1,027,100

(797,800)

5,432,300

(681,700)

110,800

Balance at beginning of period at Apr. 01, 2023

5,029,400

4,857,700

600

1,013,400

(761,500)

5,310,000

(704,800)

171,700

Comprehensive income:

Net income

187,200

168,700

18,500

Other comprehensive income (loss)

16,900

23,100

(6,200)

Total comprehensive income (loss)

204,100

191,800

168,700

23,100

12,300

Stock-based compensation

16,200

Net issuance of shares held in treasury in settlement of stock-based compensation

(500)

(2,500)

2,100

(100)

Repurchase of shares of common stock

(38,400)

Dividends declared to Lear Corporation stockholders

(46,300)

Dividends declared to noncontrolling interest holders

(73,200)

Balance at end of period at Jul. 01, 2023

$ 5,091,300

^[1]

$ 4,980,500

$ 600

$ 1,027,100

$ (797,800)

$ 5,432,300

$ (681,700)

$ 110,800

[1]

Unaudited

Segment Reporting - Narrative (Details)	6 Months Ended
Segment Reporting - Narrative (Details)	Jul. 01, 2023 segment
Segment Reporting [Abstract]
Reportable operating segments	2

Leases - Summary of Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$ 100.9	$ 101.2
Operating cash flows:
Cash paid related to operating lease obligations	$ 89.6	$ 81.2

Legal and Other Contingencies

6 Months Ended

Jul. 01, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal and Other Contingencies

As of July 1, 2023 and December 31, 2022, the Company had recorded reserves for pending legal disputes, including commercial disputes, product liability claims and other legal matters, of $15.1 million and $15.9 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically exclude the cost of legal representation. Product warranty and recall 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.

Product Warranty and Recall 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 attorneys' fees and costs. 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. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend such claims.

To a lesser extent, the Company is a party to agreements with certain of its customers, whereby these customers may pursue claims against the Company for contribution of all or a portion of the amounts sought in connection with product warranty and recall matters.

In certain instances, allegedly defective products may be supplied by the Company's 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 claims or product warranty or recall matters. 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.

The Company records reserves for product warranty and recall matters when liability is probable and related amounts are reasonably estimable.

A summary of the changes in reserves for product warranty and recall matters for the six months ended July 1, 2023, is shown below (in millions):


Balance at January 1, 2023	$	30.4
Expense, net (including changes in estimates)	2.9
Settlements	(8.8)
Foreign currency translation and other	4.9
Balance at July 1, 2023	$	29.4

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.

As of July 1, 2023 and December 31, 2022, the Company had recorded environmental reserves of $8.1 million and $7.9 million, respectively. 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; however, no assurances can be given in this regard.

Other Matters

The Company is involved from time to time in various other legal proceedings and claims, including, without limitation, intellectual property matters, 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 the 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 assurances can be given in this regard.

Although the Company records reserves for legal disputes, product warranty and recall matters 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

Pension and Other Postretirement Benefit Plans - Summary of Components of Net Periodic Benefit (Credit) Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pension \| U.S.
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
Service cost	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Interest cost	5.2	3.8	10.4	7.7
Expected return on plan assets	(5.2)	(5.9)	(10.2)	(11.9)
Amortization of actuarial gain (loss)	0.3	0.5	0.5	1.0
Settlement (gain) loss	0.0	0.0	(0.1)	0.4
Net periodic benefit (credit) cost	0.3	(1.6)	0.6	(2.8)
Pension \| Foreign
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
Service cost	0.8	1.1	1.6	2.1
Interest cost	4.2	2.9	8.3	5.8
Expected return on plan assets	(4.1)	(4.4)	(8.1)	(8.8)
Amortization of actuarial gain (loss)	0.5	1.0	1.0	2.1
Settlement (gain) loss	0.0	0.0	0.0	0.0
Net periodic benefit (credit) cost	1.4	0.6	2.8	1.2
Other Postretirement \| U.S.
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
Interest cost	0.4	0.4	0.8	0.8
Amortization of actuarial gain (loss)	(0.8)	(0.3)	(1.7)	(0.6)
Amortization of prior service credit	(0.1)	(0.1)	(0.1)	(0.1)
Net periodic benefit (credit) cost	(0.5)	0.0	(1.0)	0.1
Other Postretirement \| Foreign
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
Interest cost	0.3	0.2	0.5	0.4
Amortization of actuarial gain (loss)	(0.1)	0.0	(0.1)	0.0
Amortization of prior service credit	0.0	0.0	0.0	0.0
Net periodic benefit (credit) cost	$ 0.2	$ 0.2	$ 0.4	$ 0.4

Cover - shares	6 Months Ended
Cover - shares	Jul. 01, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2023
Document Transition Report	false
Entity File Number	001-11311
Entity Registrant Name	LEAR CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3386776
Entity Address, Address Line One	21557 Telegraph Road
Entity Address, City or Town	Southfield
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48033
City Area Code	248
Local Phone Number	447-1500
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	LEA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		58,747,010
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q2
Entity Central Index Key	0000842162
Current Fiscal Year End Date	--12-31

Income Taxes - Summary of Tax Benefits (Expense) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Restructuring charges and various other items	$ 10.2	$ 18.8
Release of tax reserves	2.3	4.7
Share-based compensation	(0.5)	1.4
Valuation allowances on deferred tax assets	5.1	0.5
Income tax benefits (expense) related to significant discrete items	$ 17.1	$ 25.4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 01, 2023	Dec. 31, 2022
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	64,571,405	64,571,405
Common stock held in treasury (in shares)	5,821,905	5,493,211
Series A convertible preferred stock
Preferred stock, shares authorized (in shares)	10,896,250	10,896,250

Financial Instruments - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Millions

Jul. 01, 2023

Dec. 31, 2022

Jul. 02, 2022

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Cash and cash equivalents

$ 901.9

^[1]

$ 1,114.9

$ 828.0

Restricted cash included in other current assets

1.4

0.0

Restricted cash included in other long-term assets

2.0

2.9

Cash, cash equivalents and restricted cash

$ 905.3

$ 1,117.4

$ 830.9

$ 1,321.3

[1]

Unaudited

Restructuring (Tables)

6 Months Ended

Jul. 01, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Activity

A summary of the changes in the Company's restructuring reserves is shown below (in millions):


Balance at January 1, 2023	$	82.9
Provision for employee termination benefits	33.0
Payments, utilizations and foreign currency	(35.4)
Balance at July 1, 2023	$	80.5

Charges recorded in connection with the Company's restructuring actions are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Employee termination benefits	$	33.0	$	57.4
Asset impairments -
Property, plant and equipment	0.1		1.1
Right-of-use assets	9.6		6.4
Contract termination costs	1.3		1.9
Other related costs	4.1		4.9
	$	48.1	$	71.7

Restructuring charges by income statement line item are shown below (in millions):


	Six Months Ended
	July 1, 2023		July 2, 2022
Cost of sales	$	41.2	$	54.4
Selling, general and administrative expenses	6.9		17.3

	$	48.1	$	71.7

Restructuring charges by operating segment are shown below (in millions):


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Seating	$	24.9	$	18.2	$	36.9	$	34.8
E-Systems	7.7		18.6		10.0		31.9
Other	0.9		5.0		1.2		5.0
	$	33.5	$	41.8	$	48.1	$	71.7

Revenue Recognition - Summary of Revenue by Reportable Operating Segment and Geography (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Disaggregation of Revenue
Revenues from external customers	$ 5,999.2	$ 5,071.0	$ 11,844.7	$ 10,279.4
North America
Disaggregation of Revenue
Revenues from external customers	2,469.8	2,193.5	4,849.8	4,391.3
Europe and Africa
Disaggregation of Revenue
Revenues from external customers	2,192.5	1,744.7	4,423.5	3,535.9
Asia
Disaggregation of Revenue
Revenues from external customers	1,109.1	916.0	2,128.6	1,946.1
South America
Disaggregation of Revenue
Revenues from external customers	227.8	216.8	442.8	406.1
Seating
Disaggregation of Revenue
Revenues from external customers	4,468.1	3,874.1	8,921.1	7,786.6
Seating \| North America
Disaggregation of Revenue
Revenues from external customers	2,001.4	1,822.7	4,013.3	3,664.6
Seating \| Europe and Africa
Disaggregation of Revenue
Revenues from external customers	1,567.8	1,264.1	3,164.5	2,533.6
Seating \| Asia
Disaggregation of Revenue
Revenues from external customers	737.1	631.0	1,425.4	1,293.6
Seating \| South America
Disaggregation of Revenue
Revenues from external customers	161.8	156.3	317.9	294.8
E-Systems
Disaggregation of Revenue
Revenues from external customers	1,531.1	1,196.9	2,923.6	2,492.8
E-Systems \| North America
Disaggregation of Revenue
Revenues from external customers	468.4	370.8	836.5	726.7
E-Systems \| Europe and Africa
Disaggregation of Revenue
Revenues from external customers	624.7	480.6	1,259.0	1,002.3
E-Systems \| Asia
Disaggregation of Revenue
Revenues from external customers	372.0	285.0	703.2	652.5
E-Systems \| South America
Disaggregation of Revenue
Revenues from external customers	$ 66.0	$ 60.5	$ 124.9	$ 111.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Segment Reporting - Summary of Reconciliation of Segment Earnings to Consolidated Income Before Provision for Income Taxes and Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting [Abstract]
Segment earnings	$ 258.2	$ 144.1	$ 495.5	$ 272.6
Interest expense	26.2	24.9	50.4	49.8
Other expense, net	19.5	14.4	33.2	41.7
Consolidated income before provision for income taxes and equity in net income of affiliates	$ 212.5	$ 104.8	$ 411.9	$ 181.1

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

Financial Instruments (Tables)

6 Months Ended

Jul. 01, 2023

Fair Value Disclosures [Abstract]

Schedule of Estimated Aggregate Fair Value and Carrying Value of Debt Instruments

The estimated fair value, as well as the carrying value, of the Company's debt instruments are shown below (in millions):


	July 1, 2023		December 31, 2022
Estimated aggregate fair value (1)	$	2,365.6	$	2,142.3
Aggregate carrying value (1) (2)	2,750.0		2,600.0

(1) Excludes "other" debt

(2) Excludes the impact of unamortized debt issuance costs and unamortized original issue premium (discount)

Schedule of Reconciliation of Cash, Cash Equivalents

A reconciliation of cash and cash equivalents reported on the accompanying condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported on the accompanying condensed consolidated statements of cash flows is shown below (in millions):


	July 1, 2023		July 2, 2022
Balance sheet:
Cash and cash equivalents	$	901.9	$	828.0
Restricted cash included in other current assets	1.4		—
Restricted cash included in other long-term assets	2.0		2.9
Statement of cash flows:
Cash, cash equivalents and restricted cash	$	905.3	$	830.9

Schedule of Reconciliation of Restricted Cash


	July 1, 2023		July 2, 2022
Balance sheet:
Cash and cash equivalents	$	901.9	$	828.0
Restricted cash included in other current assets	1.4		—
Restricted cash included in other long-term assets	2.0		2.9
Statement of cash flows:
Cash, cash equivalents and restricted cash	$	905.3	$	830.9

Schedule of Marketable Equity Securities

Marketable equity securities, which the Company accounts for under the fair value option, are included in the accompanying condensed consolidated balance sheets as shown below (in millions):


	July 1, 2023		December 31, 2022
Current assets	$	1.8	$	3.6
Other long-term assets	62.2		53.6
	$	64.0	$	57.2

Schedule of Notional Amount, Estimated Aggregate Fair Value and Related Balance Sheet Classification of Foreign Currency Derivative Contracts


	July 1, 2023		December 31, 2022
Fair value of foreign currency contracts designated as cash flow hedges:
Other current assets	$	160.1	$	63.4
Other long-term assets	30.8		10.3
Other current liabilities	(0.5)		(6.7)
Other long-term liabilities	(0.1)		(0.2)
	190.3		66.8
Notional amount	$	1,582.4	$	1,546.9
Outstanding maturities in months, not to exceed	24		24
Fair value of derivatives designated as net investment hedges:

Other long-term assets	$	1.5	$	4.8



Notional amount	$	150.0	$	150.0
Outstanding maturities in months, not to exceed	33		39
Fair value of foreign currency contracts not designated as hedging instruments:
Other current assets	$	10.2	$	9.5
Other current liabilities	(0.6)		(13.4)
	9.6		(3.9)
Notional amount	$	632.9	$	758.6
Outstanding maturities in months, not to exceed	4		7
Total fair value	$	201.4	$	67.7
Total notional amount	$	2,365.3	$	2,455.5

Schedule of Pretax Amounts Recognized in and Reclassified from Accumulated Other Comprehensive Loss and Net Gains (Losses) Expected to be Reclassified into Earnings

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Gains (losses) recognized in accumulated other comprehensive loss:
Foreign currency contracts	$	96.3	$	(7.5)	$	192.0	$	32.0
Net investment hedge contracts	(2.5)		19.1		(3.3)		19.4
	93.8		11.6		188.7		51.4
(Gains) losses reclassified from accumulated other comprehensive loss to:
Net sales	(0.3)		(3.3)		0.4		(4.9)
Cost of sales	(45.2)		(7.0)		(69.3)		(14.0)
Interest expense	0.6		0.6		1.2		1.2
Other expense, net	—		—		0.4		—
	(44.9)		(9.7)		(67.3)		(17.7)
Comprehensive income	$	48.9	$	1.9	$	121.4	$	33.7

During the next twelve-month period, net gains (losses) expected to be reclassified into earnings are shown below (in millions):


Foreign currency contracts	$	159.6
Interest rate swap contracts	(2.4)

Total	$	157.2

Schedule of Fair Value Measurements and Related Valuation Techniques and Fair Value Hierarchy Level


	July 1, 2023
	Frequency	Asset (Liability)		Valuation Technique	Level 1		Level 2		Level 3
Foreign currency contracts, net	Recurring	$	199.9	Market/ Income	$	—	$	199.9	$	—
Net investment hedges	Recurring	1.5		Market/ Income	—		1.5		—
Marketable equity securities	Recurring	64.0		Market	64.0		—		—


	December 31, 2022
	Frequency	Asset (Liability)		Valuation Technique	Level 1		Level 2		Level 3
Foreign currency contracts, net	Recurring	$	62.9	Market/ Income	$	—	$	62.9	$	—
Net investment hedges	Recurring	4.8		Market/ Income	—		4.8		—
Marketable equity securities	Recurring	57.2		Market	57.2		—		—

Restructuring - Summary of Income Statement Location (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges	$ 33.5	$ 41.8	$ 48.1	$ 71.7
Cost of sales
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges			41.2	54.4
Selling, general and administrative expenses
Restructuring Cost and Reserve
Restructuring costs and asset impairment charges			$ 6.9	$ 17.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Debt

6 Months Ended

Jul. 01, 2023

Debt Disclosure [Abstract]

Debt

Short-Term Borrowings

The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of July 1, 2023 and December 31, 2022, the Company had lines of credit from banks totaling $297.2 million and $298.2 million, respectively. As of July 1, 2023 and December 31, 2022, the Company had short-term debt balances outstanding related to draws on the lines of credit of $26.9 million and $9.9 million, respectively.

Long-Term Debt

A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions):


	July 1, 2023
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
Delayed-Draw Term Loan Facility (the "Term Loan")	$	150.0	$	(0.7)	$	—	$	149.3	6.505%
3.8% Senior Notes due 2027 (the "2027 Notes")	550.0		(1.9)		(1.6)		546.5		3.885%
4.25% Senior Notes due 2029 (the "2029 Notes")	375.0		(1.8)		(0.7)		372.5		4.288%
3.5% Senior Notes due 2030 (the "2030 Notes")	350.0		(1.9)		(0.5)		347.6		3.525%
2.6% Senior Notes due 2032 (the "2032 Notes")	350.0		(2.6)		(0.7)		346.7		2.624%
5.25% Senior Notes due 2049 (the "2049 Notes")	625.0		(5.7)		12.9		632.2		5.103%
3.55% Senior Notes due 2052 (the "2052 Notes")	350.0		(3.8)		(0.5)		345.7		3.558%
Other	1.0		—		—		1.0		N/A
	$	2,751.0	$	(18.4)	$	8.9	$	2,741.5
Less — Current portion							(0.1)
Long-term debt							$	2,741.4


	December 31, 2022
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
2027 Notes	$	550.0	$	(2.1)	$	(1.8)	$	546.1	3.885%
2029 Notes	375.0		(2.0)		(0.7)		372.3		4.288%
2030 Notes	350.0		(2.0)		(0.6)		347.4		3.525%
2032 Notes	350.0		(2.8)		(0.7)		346.5		2.624%
2049 Notes	625.0		(6.0)		13.2		632.2		5.103%
2052 Notes	350.0		(3.8)		(0.5)		345.7		3.558%
Other	11.8		—		—		11.8		N/A
	$	2,611.8	$	(18.7)	$	8.9	2,602.0
Less — Current portion							(10.8)
Long-term debt							$	2,591.2

Senior Notes

Note

Issuance Date(s)

Maturity Date

Interest Payment Dates

2027 Notes

August 2017

September 15, 2027

March 15 and September 15

2029 Notes

May 2019

May 15, 2029

May 15 and November 15

2030 Notes

February 2020

May 30, 2030

May 30 and November 30

2032 Notes

November 2021

January 15, 2032

January 15 and July 15

2049 Notes

May 2019 and February 2020

May 15, 2049

May 15 and November 15

2052 Notes

November 2021

January 15, 2052

January 15 and July 15

Covenants

Subject to certain exceptions, the indentures governing the Notes contain certain restrictive covenants that, among other things, limit the ability of the Company to: (i) create or permit certain liens and (ii) consolidate, merge or sell all or substantially all of the Company's assets. The indentures governing the Notes also provide for customary events of default.

As of July 1, 2023, the Company was in compliance with all covenants under the indentures governing the Notes.

Credit Agreement

The Company's $2.0 billion amended and restated unsecured revolving credit agreement (the "Credit Agreement") expires on October 28, 2026. On June 14, 2023, the Company amended the Credit Agreement to implement the transition from the London Interbank Offered Rate to the Secured Overnight Financing Rate ("SOFR") in accordance with the existing terms of the Credit Agreement, adopting SOFR as the reference rate for certain U.S. dollar-denominated borrowings.

As of July 1, 2023 and December 31, 2022, there were no borrowings outstanding under the Credit Agreement.

Advances under the Credit Agreement generally bear interest based on (i) Term Benchmark, Central Bank Rate and Risk Free Rate ("RFR") (in each case, as defined in the Credit Agreement) or (ii) Alternate Base Rate ("ABR") and Canadian Prime Rate (in each case, as defined in the Credit Agreement). As of July 1, 2023, the ranges and rates are as follows:


	Term Benchmark, Central Bank Rate and RFR Loans						ABR and Canadian Prime Rate Loans
					Rate as of						Rate as of
	Minimum		Maximum		July 1, 2023		Minimum		Maximum		July 1, 2023
Credit Agreement	0.925	%	1.450	%	1.125	%	0.000	%	0.450	%	0.125	%

A facility fee, which ranges from 0.075% to 0.20% of the total amount committed under the Credit Agreement, is payable quarterly.

Covenants

The Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens.

As of July 1, 2023, the Company was in compliance with all covenants under the Credit Agreement.

Term Loan

On May 1, 2023, the Company borrowed $150 million under its Term Loan to finance, in part, the acquisition of IGB (Note 3, "Acquisitions"). The Term Loan matures on May 1, 2026, three years after the funding date. Advances under the Term Loan generally bear interest based on the Daily or Term SOFR (as defined in the Term Loan agreement) plus a margin determined in accordance with a pricing grid that ranges from 1.00% to 1.525%.

Covenants

The Term Loan contains the same covenants as the Credit Agreement. As of July 1, 2023, the Company was in compliance with all covenants under the Term Loan.

Other Long-Term Debt

As of July 1, 2023, other long-term debt, including the current portion, consists of amounts outstanding under finance lease agreements. As of December 31, 2022, other long-term debt, including the current portion, consists of amounts outstanding under an unsecured working capital loan and a finance lease agreement.

For further information related to the Company's debt, see Note 7, "Debt," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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+ Details