Financial Analysis

"Legal and Other Contingencies Legal and Other Contingencies As of December 31, 2025 and 2024, the Company had recorded reserves for pending legal disputes, including commercial disputes, product liability claims and other legal matters, of $13.8 million and $13.2 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically exclude the cost of legal representation. Reserves for warranty and recall matters 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 Liability, 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 support warranty costs or to participate in a recall or other corrective action involving such products. The Company is party to agreements with certain of its customers, whereb …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt Short-Term Borrowings The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of December 31, 2025 and 2024, the Company had lines of credit from banks totaling $382.5 million and $342.5 million, respectively. As of December 31, 2025 and 2024, the Company had short-term debt balances outstanding related to draws on its lines of credit of $27.9 million and $26.7 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): December 31, 2025 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"") $ 50.0 $ $ $ 50.0 4.772% 3.8% Senior Notes due 2027 (the ""2027 Notes"") 550.0 (0.7) (0.7) 548.6 3.885% 4.25% Senior Notes due 2029 (the ""2029 Notes"") 375.0 (1.1) (0.4) 373.5 4.288% 3.5% Senior Notes due 2030 (the ""2030 Notes"") 350.0 (1.2) (0.3) 348.5 3.525% 2.6% Senior Notes due 2032 (the ""2032 Notes"") 350.0 (1.9) (0.5) 347.6 2.624% 5.25% Senior Notes due 2049 (the ""2049 Notes"") 625.0 (5.2) 11.7 631.5 5.103% 3.55% Senior Notes due 2052 (the ""2052 Notes"") 350.0 (3.4) (0.5) 346.1 3.558% Other 69.4 69.4 N/A $ 2,719.4 $ (13.5) $ 9.3 2,715.2 Less Current portion (3.7) Long-term debt $ 2,711.5 Decem …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

A summary of the Company's revenue by reportable operating segment and geography is shown below (in millions): For the year ended December 31, 2025 Seating E-Systems Total North America $ 7,767.4 $ 2,042.0 $ 9,809.4 Europe and Africa 5,582.3 2,447.0 8,029.3 Asia 3,352.9 1,203.6 4,556.5 South America 580.4 283.5 863.9 $ 17,283.0 $ 5,976.1 $ 23,259.1 For the year ended December 31, 2024 Seating E-Systems Total North America $ 7,747.7 $ 2,001.4 $ 9,749.1 Europe and Africa 5,853.9 2,444.5 8,298.4 Asia 3,055.3 1,337.1 4,392.4 South America 565.2 300.9 866.1 $ 17,222.1 $ 6,083.9 $ 23,306.0 For the year ended December 31, 2023 Seating E-Systems Total North America $ 7,797.9 $ 1,705.5 $ 9,503.4 Europe and Africa 6,167.9 2,444.7 8,612.6 Asia 2,947.5 1,497.5 4,445.0 South America 635.5 270.4 905.9 $ 17,548.8 $ 5,918.1 $ 23,466.9

DisaggregationOfRevenueTableTextBlock

"Stock-Based Compensation As of November 9, 2009, the Company adopted the Lear Corporation 2009 Long-Term Stock Incentive Plan (as amended, the ""2009 LTSIP""). The 2009 LTSIP reserved 11,815,748 shares of common stock for issuance under stock option, restricted stock, restricted stock unit, restricted unit, performance share, performance unit and stock appreciation right awards. As of May 16, 2019, the Company adopted the Lear Corporation 2019 Long-Term Stock Incentive Plan (the ""2019 LTSIP,"" and together with the 2009 LTSIP, the ""Plans""), after which no awards will be issued under the 2009 LTSIP. The 2019 LTSIP reserves 4,226,858 shares of common stock plus shares of common stock awarded under the 2009 LTSIP that are cancelled subsequent to May 16, 2019, for issuance under stock option, restricted stock, restricted stock unit, restricted unit, performance share, performance unit and stock appreciation right awards. Under the Plans, the Company has granted restricted stock units, performance shares and stock options to certain of its employees, all of which generally vest in one to three years following the grant date. For the years ended December 31, 2025, 2024 and 2023, the Company recognized compensation expense related to these awards of $64.2 million, $62.8 million and $65.8 million, respectively. Unrecognized compensation expense related to these awards of $58.5 million will be recognized over th e next 1.5 years on a weighted average basis. In accordance with the …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Income Taxes A summary of consolidated income before provision for income taxes and equity in net income of affiliates and the components of provision for income taxes is shown below (in millions): For the year ended December 31, 2025 2024 2023 Consolidated income before provision for income taxes and equity in net income of affiliates: Domestic $ (105.9) $ (31.7) $ 59.9 Foreign 731.0 764.6 717.3 $ 625.1 $ 732.9 $ 777.2 Current income tax expense: U.S. federal $ 50.8 $ 37.6 $ 40.7 U.S. state and local 8.1 2.4 2.3 Foreign 208.1 208.0 196.6 Total current income tax expense $ 267.0 $ 248.0 $ 239.6 Deferred income tax expense (benefit): U.S. federal $ (97.7) $ (66.0) $ (26.7) U.S. state and local (10.7) (4.6) (2.7) Foreign (8.6) 13.7 (29.4) Total deferred income tax benefit: $ (117.0) $ (56.9) $ (58.8) Provision for income taxes $ 150.0 $ 191.1 $ 180.8 The U.S. federal current income tax expense includes foreign withholding taxes related to dividends and royalties paid by the Company's foreign subsidiaries. In 2025, 2024 and 2023, the provision for income taxes includes the benefit of prior unrecognized net operating loss carryforwards of $3.3 million, $5.1 million and $8.0 million, respectively. Effective January 1, 2025, the Company adopted ASU 2023-09, ""Improvements to Income Tax Disclosures,"" on a prospective basis. In accordance with the categories required by the update, the reconciliation between the provision for income taxes calculated at the United States federal sta …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"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 consolidated balance sheet are shown below (in millions): December 31, 2025 2024 Right-of-use assets under operating leases: Other long-term assets $ 722.4 $ 699.8 Lease obligations under operating leases: Accrued liabilities $ 169.4 $ 152.6 Other long-term liabilities 594.9 582.5 $ 764.3 $ 735.1 Maturities of lease obligations as of December 31, 2025, are shown below (in millions): 2026 $ 193.9 2027 167.3 2028 134.5 2029 97.9 2030 79.0 Thereafter 183.0 Total undiscounted cash flows 855.6 Less: Imputed interest (91.3) Lease obligations under operating leases $ 764.3 In 2025, the Company entered into an operating lease with a lease term of fifteen years that is expected to commence in the fourth quarter of 2026. The right-of-use asset and related lease obligation are expected to be approximately $11 million. Cash flow information related to operating leases is shown below (in millions): For the year ended December 31, 2025 2024 2023 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 172.6 $ 171.1 $ 181.6 Operating cash flows: Cash paid related to operating lease obligations $ 199.9 $ 195.4 $ 183.2 Lease expense included in the accompanying consolidated statement of income is shown below (in millions): For the year ended December 31 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Pronouncements ASUs Issued But Not Yet Adopted: ASU 2024-03 (issued November 2024), ""Disaggregation of Income Statement Expenses."" The ASU requires the disaggregation of certain expenses presented on the face of the income statement in a tabular footnote disclosure. The expense categories include purchases of inventory, employee compensation, depreciation and amortization. It also requires the definition and disclosure of selling expense, a qualitative description of expense amounts not disaggregated and inclusion of existing expense disclosures within the same tabular footnote disclosure. The update is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The update is to be adopted prospectively; however, retrospective application is permitted. The ASU will modify the Company's financial statement disclosures but is not expected to have a significant impact on its consolidated financial statements. ASU 2025-06 (issued September 2025), ""Targeted Improvements to the Accounting for Internal-Use Software."" The ASU removes all references to project development stages and provides new guidance on evaluating whether the recognition threshold to capitalize software costs has been met. The update is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The update may be adopted prospectively, retrospectively or using a modified transition approach. The ASU will not have a significant impact …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Pension and Other Postretirement Benefit Plans The Company has noncontributory defined benefit pension plans covering certain domestic employees and certain employees in foreign countries, principally Canada. The Company's domestic salaried pension plans provide benefits based on final average earnings formulas. The Company's domestic hourly pension plans provide benefits under flat benefit and cash balance formulas. The Company also has contractual arrangements with certain employees which provide for supplemental retirement benefits. In general, the Company's policy is to fund its pension benefit obligation based on legal requirements, tax and liquidity considerations and local practices. The Company has postretirement benefit plans covering certain domestic and Canadian retirees. The Company's postretirement benefit plans generally provide for the continuation of medical benefits for eligible retirees. The Company does not fund its postretirement benefit obligation. Rather, payments are made as costs are incurred by covered retirees. Obligation A reconciliation of the change in benefit obligation for the years ended December 31, 2025 and 2024, is shown below (in millions): Pension Other Postretirement December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Change in benefit obligation: Benefit obligation at beginning of period $ 328.1 $ 341.0 $ 405.3 $ 373.8 $ 27.9 $ 14.7 $ 29.1 $ 15.7 Service cost 4.2 4. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Charges recorded in connection with the Company's restructuring actions are shown below (in millions): For the year ended December 31, 2025 2024 2023 Employee termination benefits $ 194.7 $ 129.0 $ 119.2 Asset impairments Property, plant and equipment 38.7 2.9 5.1 Right-of-use assets 7.6 2.3 10.9 Contract termination costs 4.9 3.7 5.7 Other related net costs 7.2 1.0 (8.2) $ 253.1 $ 138.9 $ 132.7 Restructuring charges by income statement account are shown below (in millions): For the year ended December 31, 2025 2024 2023 Cost of sales $ 224.9 $ 133.1 $ 130.2 Selling, general and administrative expenses 31.0 19.3 20.7 Other income, net (2.8) (13.5) (18.2) $ 253.1 $ 138.9 $ 132.7 Restructuring charges by operating segment are shown below (in millions): For the year ended December 31, 2025 2024 2023 Seating $ 146.1 $ 100.8 $ 99.5 E-Systems 98.3 30.1 30.5 Other 8.7 8.0 2.7 $ 253.1 $ 138.9 $ 132.7 The Company expects to incur approximately $23 million and approximately $13 million of additional restructuring charges in its Seating and E-Systems segments, respectively, related to activities initiated as of December 31, 2025, and expects that the components of such costs will be consistent with its historical experience. A summary of the changes in the Company's restructuring reserves is shown below (in millions): 2025 2024 Balance as of January 1, $ 100.0 $ 121.6 Provision for employee termination benefits 194.7 129.0 Payments, utilizations and foreign currency (203.7 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition A summary of the Company's revenue by reportable operating segment and geography is shown below (in millions): For the year ended December 31, 2025 Seating E-Systems Total North America $ 7,767.4 $ 2,042.0 $ 9,809.4 Europe and Africa 5,582.3 2,447.0 8,029.3 Asia 3,352.9 1,203.6 4,556.5 South America 580.4 283.5 863.9 $ 17,283.0 $ 5,976.1 $ 23,259.1 For the year ended December 31, 2024 Seating E-Systems Total North America $ 7,747.7 $ 2,001.4 $ 9,749.1 Europe and Africa 5,853.9 2,444.5 8,298.4 Asia 3,055.3 1,337.1 4,392.4 South America 565.2 300.9 866.1 $ 17,222.1 $ 6,083.9 $ 23,306.0 For the year ended December 31, 2023 Seating E-Systems Total North America $ 7,797.9 $ 1,705.5 $ 9,503.4 Europe and Africa 6,167.9 2,444.7 8,612.6 Asia 2,947.5 1,497.5 4,445.0 South America 635.5 270.4 905.9 $ 17,548.8 $ 5,918.1 $ 23,466.9

RevenueFromContractWithCustomerTextBlock

"Segment Reporting 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): Year Ended December 31, 2025 Seating E-Systems Other Consolidated Revenues from external customers $ 17,283.0 $ 5,976.1 $ $ 23,259.1 Intersegment revenues (1) 5.4 265.8 (271.2) Less (2) : Cost of sales 15,964.3 5,893.9 (103.5) 21,754.7 Gross margin 1,324.1 348.0 (167.7) 1,504.4 Selling, general and administrative 355.2 144.9 207.5 707.6 Amortization of intangible assets 12.3 7.2 19.5 Intersegment support activities 7.8 9.7 (17.5) Segment earnings (3) $ 948.8 $ 186.2 $ (357.7) 777.3 Reconciliation of segment earnings: Interest expense, net 100.8 Other expense, net 51.4 Consolidated income before provision for income taxes and equity in net income of affiliates $ 625.1 Year Ended December 31, 2024 Seating E-Systems Other Consolidated Revenues from external customers $ 17,222.1 $ 6,083.9 $ $ 23,306.0 Intersegment revenues (1) 3.4 230.1 (233.5) Less (2) : Cost of sales 15,845.5 5,892.2 (71.0) 21,666.7 Gross margin 1,380.0 421.8 (162.5) 1,639.3 Selling, general and administrative 348.7 154.6 199.2 702.5 Amortization of intangible assets 37.2 11.9 49.1 Intersegment support activities 5.6 7.9 (13.5) Segment earnings (3) $ 988.5 $ 247.4 $ (348.2) 887.7 Reconciliation of segment earnings: Interest expense, net 106.2 Other expense, net 48.6 Consolidated income before provision for income taxes and equity in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Consolidation 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 (Note 4, ""Investments in Affiliates and Other Related Party Transactions""). 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. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments with original maturities of ninety days or less. Restricted cash includes cash that is legally restricted as to use or withdrawal. Accounts Receivable The Company records accounts receivable 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 Company's customers are the world's major automotive manufacturers. Generally, the Company does not require collateral for its 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 su …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Capital Stock, Accumulated Other Comprehensive Loss and Equity Common Stock The Company is authorized to issue up to 300,000,000 shares of Common Stock. The Company's Common Stock is listed on the New York Stock Exchange under the symbol ""LEA"" and has the following rights and privileges: Voting Rights All shares of the Company's common stock have identical rights and privileges. With limited exceptions, holders of common stock are entitled to one vote for each outstanding share of common stock held of record by each shareholder on all matters properly submitted for the vote of the Company's shareholders. Dividend Rights Subject to applicable law, any contractual restrictions and the rights of the holders of outstanding preferred stock, if any, holders of common stock are entitled to receive ratably such dividends and other distributions that the Company's Board of Directors (the ""Board""), in its discretion, declares from time to time. Liquidation Rights Upon the dissolution, liquidation or winding up of the Company, subject to the rights of the holders of outstanding preferred stock, if any, holders of common stock are entitled to receive ratably the assets of the Company available for distribution to the Company's shareholders in proportion to the number of shares of common stock held by each shareholder. Conversion, Redemption and Preemptive Rights Holders of common stock have no conversion, redemption, sinking fund, preemptive, subscription or similar rights. Common S …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Legal and Other Contingencies As of July 4, 2026 and December 31, 2025, the Company had recorded reserves for pending legal disputes, including commercial disputes, product liability claims and other legal matters, of $15.5 million and $13.8 million, respectively. Such reserves reflect amounts recognized in accordance with GAAP and typically exclude the cost of legal representation. Reserves for warranty and recall matters 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 Liability, 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 support warranty costs or to participate in a recall or other corrective action involving such products. The Company is party to agreements with certain of its customers, whereby these customers may p …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt Short-Term Borrowings The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of July 4, 2026 and December 31, 2025, the Company had lines of credit from banks totaling $376.4 million and $382.5 million, respectively. As of July 4, 2026 and December 31, 2025, the Company had short-term debt balances outstanding related to draws on its lines of credit of $28.8 million and $27.9 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 4, 2026 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"") $ 50.0 $ $ $ 50.0 4.625% 3.8% Senior Notes due 2027 (the ""2027 Notes"") 550.0 (0.5) (0.5) 549.0 3.885% 4.25% Senior Notes due 2029 (the ""2029 Notes"") 375.0 (0.9) (0.3) 373.8 4.288% 3.5% Senior Notes due 2030 (the ""2030 Notes"") 350.0 (1.1) (0.3) 348.6 3.525% 2.6% Senior Notes due 2032 (the ""2032 Notes"") 350.0 (1.8) (0.4) 347.8 2.624% 5.25% Senior Notes due 2049 (the ""2049 Notes"") 625.0 (5.0) 11.4 631.4 5.103% 3.55% Senior Notes due 2052 (the ""2052 Notes"") 350.0 (3.4) (0.5) 346.1 3.558% Other 70.7 70.7 N/A $ 2,720.7 $ (12.7) $ 9.4 2,717.4 Less Current portion (4.0) Long-term debt $ 2 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

A summary of the Company's revenue by reportable operating segment and geography is shown below (in millions): Three Months Ended July 4, 2026 June 28, 2025 Seating E-Systems Total Seating E-Systems Total North America $ 2,039.1 $ 459.3 $ 2,498.4 $ 1,989.4 $ 529.9 $ 2,519.3 Europe and Africa 1,611.6 714.8 2,326.4 1,513.6 649.6 2,163.2 Asia 811.0 314.4 1,125.4 834.7 309.9 1,144.6 South America 162.4 96.8 259.2 136.2 67.1 203.3 $ 4,624.1 $ 1,585.3 $ 6,209.4 $ 4,473.9 $ 1,556.5 $ 6,030.4 Six Months Ended July 4, 2026 June 28, 2025 Seating E-Systems Total Seating E-Systems Total North America $ 3,948.3 $ 773.7 $ 4,722.0 $ 3,795.3 $ 972.8 $ 4,768.1 Europe and Africa 3,194.7 1,432.6 4,627.3 2,962.0 1,263.3 4,225.3 Asia 1,575.4 634.9 2,210.3 1,611.0 605.2 2,216.2 South America 310.1 162.5 472.6 256.7 124.4 381.1 $ 9,028.5 $ 3,003.7 $ 12,032.2 $ 8,625.0 $ 2,965.7 $ 11,590.7

DisaggregationOfRevenueTableTextBlock

Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, in the six months ended July 4, 2026, is shown below (in millions): Seating E-Systems Total Balance at January 1, 2026 $ 1,375.2 $ 402.6 $ 1,777.8 Foreign currency translation and other (5.0) 4.3 (0.7) Balance at July 4, 2026 $ 1,370.2 $ 406.9 $ 1,777.1 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. There was no impairment of goodwill in the first six months of 2026 and 2025. The Company will, however, continue to assess the impact of significan …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes A summary of the provision for income taxes and the corresponding effective tax rate for the three and six months ended July 4, 2026 and June 28, 2025, is shown below (in millions, except effective tax rates): Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Provision for income taxes $ 48.5 $ 41.6 $ 86.9 $ 86.8 Pretax income before equity in net income of affiliates $ 240.9 $ 217.5 $ 457.6 $ 352.9 Effective tax rate 20.1 % 19.1 % 19.0 % 24.6 % 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 4, 2026 June 28, 2025 Restructuring charges and various other items $ 23.4 $ 22.9 Tax reserves and audit settlements 2.7 3.4 Valuation allowances on deferred tax assets 0.8 (0.6) Share-based compensation 0.3 (1.5) $ 27.2 $ 24.2 Excluding the items above, the effective tax rate for the first six months of 2026 and 2025 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. 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 allowa …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"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 4, 2026 December 31, 2025 Right-of-use assets under operating leases: Other long-term assets $ 732.2 $ 722.4 Lease obligations under operating leases: Accrued liabilities $ 172.5 $ 169.4 Other long-term liabilities 597.0 594.9 $ 769.5 $ 764.3 Maturities of lease obligations are shown below (in millions): July 4, 2026 2026 (1) $ 103.0 2027 187.7 2028 152.9 2029 112.4 2030 89.5 Thereafter 230.2 Total undiscounted cash flows 875.7 Less: Imputed interest (106.2) Lease obligations under operating leases $ 769.5 (1) For the remaining six months. In the second quarter of 2026, the Company entered into an operating lease with a lease term of ten years that is expected to commence in the second quarter of 2027. The right-of-use asset and related lease obligation are expected to be approximately $46 million. In 2025, the Company entered into an operating lease with a lease term of fifteen years that is expected to commence in the fourth quarter of 2026. The right-of-use asset and related lease obligation are expected to be approximately $11 million. Cash flow information related to operating leases is shown below (in millions): Six Months Ended July 4, 2026 June 28, 2025 Non-cash activity: Right-of-use assets …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Pronouncements Accounting Standards Updates (""ASU"") Issued But Not Yet Adopted: ASU 2024-03 (issued November 2024), ""Disaggregation of Income Statement Expenses."" The ASU requires the disaggregation of certain expenses presented on the face of the income statement in a tabular footnote disclosure. The expense categories include purchases of inventory, employee compensation, depreciation and amortization. It also requires the definition and disclosure of selling expense, a qualitative description of expense amounts not disaggregated and inclusion of existing expense disclosures within the same tabular footnote disclosure. The update is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The update is to be adopted prospectively; however, retrospective application is permitted. The ASU will modify the Company's financial statement disclosures but is not expected to have a significant impact on its consolidated financial statements. ASU 2025-06 (issued September 2025), ""Targeted Improvements to the Accounting for Internal-Use Software."" The ASU removes all references to project development stages and provides new guidance on evaluating whether the recognition threshold to capitalize software costs has been met. The update is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The update may be adopted prospectively, retrospectively or using a modified transition approach. The ASU …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Pension and Other Postretirement Benefit Plans The Company has noncontributory defined benefit pension plans covering certain domestic employees and certain employees in foreign countries, principally Canada. The Company also has postretirement benefit plans covering certain domestic and Canadian retirees. The Company's postretirement benefit plans generally provide for the continuation of medical benefits for eligible retirees. Net Periodic Pension Benefit Cost and Other Postretirement Benefit (Credit) Cost The components of the Company's net periodic pension benefit cost are shown below (in millions): Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Service cost $ $ 0.8 $ $ 1.0 $ $ 1.7 $ $ 1.9 Interest cost 4.5 4.0 4.5 3.9 8.8 7.9 9.0 7.6 Expected return on plan assets (4.2) (3.6) (4.1) (3.9) (8.3) (7.2) (8.2) (7.6) Amortization of actuarial loss 0.3 0.4 0.3 0.4 0.4 0.8 0.3 0.8 Settlement gain (0.1) (0.1) Net periodic benefit cost $ 0.6 $ 1.6 $ 0.7 $ 1.4 $ 0.8 $ 3.2 $ 1.0 $ 2.7 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 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign Interest cost $ 0.4 $ 0.2 $ 0.3 $ 0.1 $ 0.7 $ 0.4 $ 0.7 $ 0.3 Amortization of actuarial gain (0.6) (0.7) (1.2) (1.4) (0.1) Amortization of prior servi …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Restructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental net 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 net costs principally include equipment and personnel relocation costs and gains and losses on the sales of facilities. In addition to restructuring costs, the Company also incurs incremental manufacturing inefficiency and other charges 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 as 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, 2026 $ 91.0 Provision for employee termination benefits 61.9 Payments, utilizations and foreign currency (113.1) Balance at July 4, 2026 $ 39.8 Charges recorded in connection with the Company's restructuring actions are shown below (in millions): Six Months Ended July 4, 2026 June 28, 2025 Employee termination benefits $ 61.9 $ 107.7 Asset impairments: Property, plant and equipment 2.3 3.9 Right-of-use assets …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 2026 and 2025, revenue recognized related to prior years represented approximately 1% of consolidated net sales (excludi …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting The Company is organized under two reportable operating segments: Seating and E-Systems. Each of these segments has a varied product and technology portfolio across a number of component categories. Further, the Company continuously evaluates this portfolio, aligning it with industry trends while balancing risk-adjusted returns, which allows the Company to offer value-added solutions to its customers. The Seating segment consists of the design, development, engineering and manufacture of complete seat systems and key seat components. The Company's capabilities in operations and supply chain management enable synchronized assembly and just-in-time delivery of complex complete seat systems at high volumes to its customers. Key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat cushioning; headrests; and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products. 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. Thermal comfort systems are facilitated by the Company's seat system, component and integration capabilities, together with the Company's competencies in electronics, sensors, software and algorithms. The E-Systems segment consists of the design, developmen …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Comprehensive Income and Equity Comprehensive Income Comprehensive income is defined as all changes in the Company's net assets except changes resulting from transactions with shareholders. It differs from net income in that certain items recorded in equity are included in comprehensive income. Accumulated Other Comprehensive Loss A summary of changes in accumulated other comprehensive loss, net of tax, in the three and six months ended July 4, 2026, is shown below (in millions): Three Months Ended July 4, 2026 Six Months Ended July 4, 2026 Defined benefit plans: Balance at beginning of period $ (99.9) $ (100.7) Reclassification adjustments (0.1) (0.2) Other comprehensive income recognized during the period 0.8 1.7 Balance at end of period $ (99.2) $ (99.2) Derivative instruments and hedging: Balance at beginning of period $ 147.3 $ 146.2 Reclassification adjustments (net of tax benefit of $9.7 million and $17.3 million in the three and six months ended July 4, 2026, respectively) (39.7) (69.0) Other comprehensive income recognized during the period (net of tax expense of $17.7 million and $25.6 million in the three and six months ended July 4, 2026, respectively) 70.4 100.8 Balance at end of period $ 178.0 $ 178.0 Foreign currency translation: Balance at beginning of period $ (597.3) $ (589.8) Other comprehensive loss recognized during the period (net of tax expense of $1.9 million and $1.5 million in the three and six months ended July 4, 2026, respectively) (3.9) (11.4) B …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing