Restructuring

6 Months Ended

Jun. 28, 2025

Restructuring and Related Activities [Abstract]

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 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 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, 2025	$	100.0
Provision for employee termination benefits	107.7
Payments, utilizations and foreign currency	(112.3)
Balance at June 28, 2025	$	95.4

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


	Six Months Ended
	June 28, 2025		June 29, 2024
Employee termination benefits	$	107.7	$	75.3
Asset impairments:
Property, plant and equipment	3.9		1.5
Right-of-use assets	0.1		—
Contract termination costs	2.4		2.1
Other related costs	3.7		4.8
	$	117.8	$	83.7

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


	Six Months Ended
	June 28, 2025		June 29, 2024
Cost of sales	$	104.3	$	75.7
Selling, general and administrative expenses	15.0		9.6
Other expense, net	(1.5)		(1.6)
	$	117.8	$	83.7

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


	Three Months Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Seating	$	15.1	$	19.3	$	76.3	$	62.7
E-Systems	17.4		10.0		33.7		18.4
Other	1.7		0.8		7.8		2.6
	$	34.2	$	30.1	$	117.8	$	83.7

The Company expects to incur approximately $19 million and approximately $6 million of additional restructuring charges in its Seating and E-Systems segments, respectively, related to activities initiated as of June 28, 2025, and expects that the components of such costs will be consistent with its historical experience.