LEAR CORPLEA
LEAR CORP Segments Disclosure
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 net income of affiliates | $ | 732.9 | |||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Seating | E-Systems | Other | Consolidated | ||||||||||||||||||||
| Revenues from external customers | $ | 17,548.8 | $ | 5,918.1 | $ | — | $ | 23,466.9 | |||||||||||||||
Intersegment revenues(1) | 0.6 | 224.9 | (225.5) | — | |||||||||||||||||||
Less(2): | |||||||||||||||||||||||
| Cost of sales | 16,090.0 | 5,730.4 | (63.9) | 21,756.5 | |||||||||||||||||||
| Gross margin | 1,459.4 | 412.6 | (161.6) | 1,710.4 | |||||||||||||||||||
| Selling, general and administrative | 346.5 | 156.6 | 211.6 | 714.7 | |||||||||||||||||||
| Amortization of intangible assets | 39.0 | 23.5 | — | 62.5 | |||||||||||||||||||
| Intersegment support activities | 7.0 | 3.6 | (10.6) | — | |||||||||||||||||||
Segment earnings(3) | $ | 1,066.9 | $ | 228.9 | $ | (362.6) | 933.2 | ||||||||||||||||
| Reconciliation of segment earnings: | |||||||||||||||||||||||
| Interest expense, net | 101.1 | ||||||||||||||||||||||
| Other expense, net | 54.9 | ||||||||||||||||||||||
| Consolidated income before provision for income taxes and equity in net income of affiliates | $ | 777.2 | |||||||||||||||||||||
(1) Intersegment transactions are accounted for at values comparable to unaffiliated third-party transactions.
(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(3) For a definition of segment earnings, see Note 2, "Summary of Significant Accounting Policies — Segment Reporting."
Other segment related disclosures are shown below (in millions):
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Seating | E-Systems | Other | Consolidated | ||||||||||||||||||||
| Depreciation | $ | 375.3 | $ | 187.7 | $ | 21.6 | $ | 584.6 | |||||||||||||||
| Capital expenditures | 370.3 | 171.2 | 20.1 | 561.6 | |||||||||||||||||||
| Inventories | 873.4 | 819.8 | — | 1,693.2 | |||||||||||||||||||
| Total assets | 8,579.6 | 3,962.6 | 2,300.9 | 14,843.1 | |||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||
| Seating | E-Systems | Other | Consolidated | ||||||||||||||||||||
| Depreciation | $ | 370.9 | $ | 180.1 | $ | 20.6 | $ | 571.6 | |||||||||||||||
| Capital expenditures | 375.0 | 166.7 | 17.0 | 558.7 | |||||||||||||||||||
| Inventories | 828.1 | 773.0 | — | 1,601.1 | |||||||||||||||||||
| Total assets | 7,974.4 | 3,799.1 | 2,254.0 | 14,027.5 | |||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||
| Seating | E-Systems | Other | Consolidated | ||||||||||||||||||||
| Depreciation | $ | 355.4 | $ | 165.8 | $ | 20.7 | $ | 541.9 | |||||||||||||||
| Capital expenditures | 344.6 | 261.3 | 20.6 | 626.5 | |||||||||||||||||||
Revenues from external customers and tangible long-lived assets for each of the geographic areas in which the Company operates is shown below (in millions):
| For the year ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Revenues from external customers | |||||||||||||||||
| United States | $ | 5,293.0 | $ | 5,050.4 | $ | 4,863.8 | |||||||||||
| Mexico | 3,557.6 | 3,673.7 | 3,434.4 | ||||||||||||||
| China | 3,041.1 | 2,969.5 | 3,044.9 | ||||||||||||||
| Germany | 1,175.3 | 1,364.4 | 1,402.2 | ||||||||||||||
| Morocco | 1,297.4 | 1,219.8 | 1,085.8 | ||||||||||||||
| Other countries | 8,894.7 | 9,028.2 | 9,635.8 | ||||||||||||||
| Total | $ | 23,259.1 | $ | 23,306.0 | $ | 23,466.9 | |||||||||||
| December 31, | 2025 | 2024 | |||||||||
Tangible long-lived assets(1) | |||||||||||
| Mexico | $ | 672.1 | $ | 723.1 | |||||||
| United States | 655.8 | 700.2 | |||||||||
| China | 400.6 | 404.1 | |||||||||
| Morocco | 297.8 | 242.0 | |||||||||
| Poland | 209.0 | 203.5 | |||||||||
| Spain | 187.2 | 161.8 | |||||||||
| Other countries | 1,213.0 | 1,098.5 | |||||||||
| Total | $ | 3,635.5 | $ | 3,533.2 | |||||||
(1) Tangible long-lived assets include property, plant and equipment and right-of-use assets.
A summary of revenues from major customers is shown below:
| For the year ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| General Motors | 21.7% | 21.8% | 19.8% | ||||||||||||||
| Ford | 11.5% | 11.1% | 11.4% | ||||||||||||||
| Mercedes-Benz | 9.9% | 10.5% | 10.4% | ||||||||||||||
| Volkswagen | 9.8% | 10.5% | 11.0% | ||||||||||||||
| Stellantis | 8.9% | 8.6% | 10.2% | ||||||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.