Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Entity Registrant Name | MAGNA INTERNATIONAL INC |
Entity Central Index Key | 0000749098 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 303,250,520 |
Title of 12(b) Security | Common Shares |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 39,431 | $ 40,827 |
Costs and expenses | ||
Cost of goods sold | 34,022 | 35,055 |
Depreciation and amortization | 1,345 | 1,278 |
Selling, general and administrative | 1,697 | 1,664 |
Interest expense, net | 82 | 93 |
Equity income | (178) | (277) |
Other expense, net | 240 | 63 |
Income from operations before income taxes | 2,223 | 2,951 |
Income taxes | 591 | 619 |
Net income | 1,632 | 2,332 |
Loss (income) attributable to non-controlling interests | 133 | (36) |
Net income attributable to Magna International Inc. | $ 1,765 | $ 2,296 |
Earnings per Common Share: | ||
Basic | $ 5.61 | $ 6.65 |
Diluted | $ 5.59 | $ 6.61 |
Weighted average number of Common Shares outstanding during the year [in millions]: | ||
Basic | 314.7 | 345.4 |
Diluted | 315.8 | 347.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,632 | $ 2,332 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized loss on translation of net investment in foreign operations | (25) | (515) |
Net unrealized gain (loss) on cash flow hedges | 102 | (106) |
Reclassification of net loss (gain) on cash flow hedges to net income | 4 | (1) |
Reclassification of net loss on pensions to net income | 8 | 6 |
Pension and post-retirement benefits | (47) | (13) |
Other comprehensive income (loss) | 42 | (629) |
Comprehensive income | 1,674 | 1,703 |
Comprehensive loss (income) attributable to non-controlling interests | 140 | (11) |
Comprehensive income attributable to Magna International Inc. | $ 1,814 | $ 1,692 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,276 | $ 684 |
Accounts receivable | 5,927 | 6,548 |
Inventories | 3,304 | 3,403 |
Prepaid expenses and other | 238 | 193 |
Income taxes receivable | 57 | |
Assets held for sale | 949 | |
Total current assets | 10,745 | 11,834 |
Investments | 1,210 | 2,189 |
Fixed assets, net | 8,260 | 8,095 |
Operating lease right of use assets | 1,811 | |
Intangible assets, net | 484 | 560 |
Goodwill | 1,976 | 1,979 |
Deferred tax assets | 308 | 300 |
Other assets | 996 | 988 |
Consolidated total assets | 25,790 | 25,945 |
Current liabilities | ||
Short-term borrowings | 0 | 1,098 |
Accounts payable | 5,628 | 6,094 |
Accrued salaries and wages | 753 | 769 |
Other accrued liabilities | 1,800 | 1,734 |
Income taxes payable | 17 | |
Long-term debt due within one year | 106 | 201 |
Current portion of operating lease liabilities | 225 | |
Liabilities held for sale | 408 | |
Total current liability | 8,529 | 10,304 |
Long-term debt | 3,062 | 3,084 |
Operating lease liabilities | 1,601 | |
Long-term employee benefit liabilities | 677 | 597 |
Other long-term liabilities | 371 | 400 |
Deferred tax liabilities | 419 | 401 |
Total liability | 14,659 | 14,786 |
Shareholders' equity | ||
Common Shares [issued: 2019 – 303,250,415; 2018 – 327,339,095] | 3,198 | 3,380 |
Contributed surplus | 127 | 120 |
Retained earnings | 8,596 | 8,376 |
Accumulated other comprehensive loss | (1,090) | (1,175) |
Stockholders equity attributable to Magna International Inc | 10,831 | 10,701 |
Non-controlling interests | 300 | 458 |
Total stockholder's equity | 11,131 | 11,159 |
Total liability and stockholders' equity | 25,790 | 25,945 |
Commitments and contingencies [notes 18, 23 and 24] |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 303,250,415 | 327,339,095 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,632 | $ 2,332 |
Items not involving current cash flows | 1,976 | 1,539 |
Profit loss after adjustment of non cash items | 3,608 | 3,871 |
Changes in operating assets and liabilities | 352 | (153) |
Cash provided from operating activities | 3,960 | 3,718 |
INVESTMENT ACTIVITIES | ||
Fixed asset additions | (1,441) | (1,650) |
Proceeds from sale of (investment in) Lyft, Inc. | 231 | (220) |
Increase in investments, other assets and intangible assets | (394) | (481) |
Proceeds from dispositions | 185 | 223 |
Acquisitions | (147) | (148) |
Proceeds on sale of business | 1,132 | |
Cash used for investing activities | (434) | (2,276) |
FINANCING ACTIVITIES | ||
Issues of debt | 47 | 172 |
(Decrease) increase in short-term borrowings | (1,124) | 866 |
Repayments of debt | (149) | (171) |
Issue of Common Share on exercise of stock options | 44 | 50 |
Shares repurchased for tax withholdings on vesting of equity awards | (9) | (16) |
Repurchase of Common Shares | (1,289) | (1,831) |
Contributions to subsidiaries by non-controlling interests | 4 | 4 |
Dividends paid to non-controlling interests | (22) | (69) |
Dividends paid | (449) | (448) |
Cash used for financing activities | (2,947) | (1,443) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | 11 | (36) |
Net increase (decrease) in cash, cash equivalents and restricted cash equivalents during the year | 590 | (37) |
Cash, cash equivalents and restricted cash equivalents beginning of period | 802 | 839 |
Cash, cash equivalents and restricted cash equivalents, end of period | $ 1,392 | $ 802 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Shares [Member] | Contributed Surplus [Member] | Retained Earnings [Member] | AOCL [Member] | [1] | Noncontrolling Interest [Member] | |||
Beginning Balance at Dec. 31, 2017 | $ 11,715 | $ 3,617 | $ 119 | $ 8,077 | $ (600) | $ 502 | ||||
Beginning Balance, shares at Dec. 31, 2017 | 358.1 | |||||||||
Net income | 2,332 | 2,296 | 36 | |||||||
Other comprehensive income (loss) | (629) | (604) | (25) | |||||||
Shares issued on exercise of stock options | 50 | $ 60 | (10) | |||||||
Shares issued on exercise of stock options, shares | 1.3 | |||||||||
Release of stock and stock units | $ 30 | (30) | ||||||||
Release of stock and stock units, shares | 0.6 | |||||||||
Shares repurchased for tax withholdings on vesting of equity awards | (16) | $ (3) | (13) | |||||||
Shares repurchased for tax withholdings on vesting of equity awards, shares | (0.3) | |||||||||
Repurchase and cancellation under normal course issuer bids [note 20] | (1,831) | $ (334) | (1,526) | 29 | ||||||
Repurchase and cancellation under normal course issuer bid, shares | (32.6) | |||||||||
Stock-based compensation expense | 41 | 41 | ||||||||
Contribution by non-controlling interests | 4 | 4 | ||||||||
Acquisitions | 10 | 10 | ||||||||
Dividends paid to non-controlling interests | (69) | (69) | ||||||||
Dividends paid | (448) | $ 10 | (458) | |||||||
Dividends paid, shares | 0.2 | |||||||||
Ending Balance at Dec. 31, 2018 | 11,159 | $ 3,380 | 120 | 8,376 | (1,175) | 458 | ||||
Ending Balance, shares at Dec. 31, 2018 | 327.3 | |||||||||
Adoption of ASU | Accounting Standards Update 2016-02 [Member] | (25) | (25) | ||||||||
Balance as adjusted | 11,134 | $ 3,380 | 120 | 8,351 | (1,175) | 458 | ||||
Balance as adjusted, shares | 327.3 | |||||||||
Net income | 1,632 | $ 0 | 0 | 1,765 | 0 | (133) | ||||
Other comprehensive income (loss) | 42 | 0 | 0 | 0 | 49 | (7) | ||||
Shares issued on exercise of stock options | 44 | $ 53 | (9) | 0 | 0 | 0 | ||||
Shares issued on exercise of stock options, shares | 1.2 | |||||||||
Release of stock and stock units | $ 20 | (20) | 0 | 0 | 0 | |||||
Release of stock and stock units, shares | 0.3 | |||||||||
Shares repurchased for tax withholdings on vesting of equity awards | (9) | $ (2) | 0 | (7) | 0 | 0 | ||||
Shares repurchased for tax withholdings on vesting of equity awards, shares | (0.1) | |||||||||
Repurchase and cancellation under normal course issuer bids [note 20] | (1,289) | $ (268) | 0 | (1,049) | 28 | 0 | ||||
Repurchase and cancellation under normal course issuer bid, shares | (25.8) | |||||||||
Stock-based compensation expense | 36 | $ 0 | 36 | 0 | 0 | 0 | ||||
Contribution by non-controlling interests | 4 | 0 | 0 | 0 | 0 | 4 | ||||
Sale of business [note 3] | 8 | 0 | [1] | 0 | [1] | 0 | [1] | 8 | 0 | |
Dividends paid to non-controlling interests | (22) | 0 | 0 | 0 | 0 | (22) | ||||
Dividends paid | (449) | $ 15 | 0 | (464) | 0 | 0 | ||||
Dividends paid, shares | 0.3 | |||||||||
Ending Balance at Dec. 31, 2019 | $ 11,131 | $ 3,198 | $ 127 | $ 8,596 | $ (1,090) | $ 300 | ||||
Ending Balance, shares at Dec. 31, 2019 | 303.2 | |||||||||
[1] | AOCL is Accumulated Other Comprehensive Loss. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share | $ 1.46 | $ 1.32 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. SIGNIFICANT ACCOUNTING POLICIES Magna International Inc. [collectively “Magna” or the “Company”] is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mirrors & lighting, mechatronics and roof systems. Magna also has electronic and software capabilities across many of these areas. The consolidated financial statements have been prepared in U.S. dollars following accounting principles generally accepted in the United States [“GAAP”]. Principles of consolidation The Consolidated Financial Statements include the accounts of Magna and its subsidiaries in which Magna has a controlling financial interest and non-controlling Foreign currency translation The Company operates globally, which gives rise to a risk that its earnings and cash flows may be adversely impacted by fluctuations in foreign exchange rates. Assets and liabilities of the Company’s operations having a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate in effect at year end, and revenues and expenses are translated at the average rate during the year. Exchange gains or losses on translation of the Company’s net investment in these operations are included in comprehensive income and are deferred in accumulated other comprehensive loss. Foreign exchange gains or losses on debt that was designated as a hedge of the Company’s net investment in these operations are also recorded in accumulated other comprehensive loss. Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. Most of the Company’s foreign exchange contracts are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded on a gross basis in prepaid expenses and other, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive loss If the Company’s foreign exchange forward contracts cease to be effective as hedges, for example if projected foreign cash inflows or outflows declined significantly, gains or losses pertaining to the portion of the hedging transactions in excess of projected foreign currency denominated cash flows would be recognized in income at the time this condition was identified. Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and short-term investments with remaining maturities of less than three months at acquisition. Inventories Production inventories and tooling inventories manufactured in-house first-in, first-out Investments The Company accounts for investments in companies over which it has the ability to exercise significant influence, but does not hold a controlling financial interest, under the equity method [“Equity method investments”]. The Company monitors its equity method investments for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the book value and the fair value of the investment. Fair value is generally determined using an income approach based on discounted cash flows. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, “Fair Value Measurement” and primarily consist of expected investee revenue and costs, estimated production volumes and discount rates. The Company also has investments in private and publicly traded technology companies over which it does not have the ability to exercise significant influence. The Company has elected to use the measurement alternative, defined as cost, less impairments, adjusted by observable price changes to measure the private equity investments. The Company values its investments in publicly traded equity securities using the closing price on the measurement date, as reported on the stock exchange on which the securities are traded. Private equity investments are subject to impairment reviews conducted on a quarterly basis. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant impact on the investee’s fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value. An impairment is recognized immediately if the carrying value exceeds the fair value. Long-lived assets Fixed assets are recorded at historical cost. Depreciation is provided on a straight-line basis over the estimated useful lives of fixed assets at annual rates of 2 1 2 Finite-lived intangible assets, which have arisen principally through acquisitions, include customer relationship intangibles and patents and licences. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 4 to 15 years. The Company assesses fixed and finite-lived intangible assets for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of fixed and finite-lived intangible assets is generally determined using estimated discounted future cash flows. Goodwill Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent write-downs for impairment. Goodwill is reviewed for impairment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, an impairment is recognized based on that difference. The fair value of a reporting unit is determined using its estimated discounted future cash flows. Tooling and Pre-Production The Company incurs pre-production pre-production Pre-production The Company expenses all pre-production non-cancelable Warranty The Company has assurance warranties and records product warranty liabilities based on its individual customer agreements. Under most customer agreements, the Company only accounts for existing or probable claims on product default issues when amounts related to such issues are probable and reasonably estimable. However, for certain complete vehicle assembly, powertrain systems and electronics contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and/or the Company’s warranty experience. Product liability and recall provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims which typically take into account: the number of units that may be returned; the cost of the product being replaced; labour to remove and replace the defective part; and the customer’s administrative costs relating to the recall. Judgement is also required as to the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. The Company monitors warranty activity on an ongoing basis and adjusts reserve balances when it is probable that future warranty costs will be different than those previously estimated. Income taxes The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are either considered to be reinvested for the foreseeable future or if they are available for repatriation and are not subject to further tax on remittance. Taxes are recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further tax on remittance. Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not more-likely-than-not Leases The Company determines if an arrangement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. The Company recognizes operating lease expense for these leases on a straight-line basis over the lease term. Operating lease right-of-use A majority of the Company’s leases for manufacturing facilities are subject to variable lease-related payments, such as escalation clauses based on consumer price index rates or other similar indices. Variable payments that are based on an index or a rate are included in the recognition of the Company’s ROU assets and lease liabilities using the index or rate at lease commencement. Subsequent changes to these lease payments due to rate or index updates are recorded as lease expense in the period incurred. The Company’s lease agreements generally exclude non-lease non-lease Employee future benefit plans The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of: [i] the accrued benefit obligation at the beginning of the year; and [ii] the fair value [or market related value] of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation [“PBO”]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans in long-term employee benefit liabilities. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next twelve months is reflected in other accrued liabilities. Revenue recognition The Company enters into contracts with its customers to provide production parts or assembled vehicles. Contracts do not commit the customer to a specified quantity of products; however, the Company is generally required to fulfill its customers’ purchasing requirements for the production life of the vehicle. Contracts do not typically become a performance obligation until the Company receives either a purchase order and/or a customer release for a specific number of parts or assembled vehicles at a specified price. While long-term supply agreements may range from five to seven years, contracts may be terminated by customers at any time. Historically, terminations have been minimal. Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are 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 parts produced or assembled vehicles are transferred to the customer according to the terms of the contract. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on purchase orders, annual price reductions and ongoing price adjustments [some of which is accounted for as variable consideration]. The Company uses the expected value method, taking into account historical data and the status of current negotiations, to estimate the amount to which it expects to be entitled. Significant changes to the Company’s estimates of variable consideration are not expected. The Company’s complete vehicle assembly contracts with customers are complex and often include promises to transfer multiple products and services to a customer, some of which may be implicitly contracted for. For these complex arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation, and whether it should be characterized as revenue or reimbursement of costs incurred. The total transaction price is then allocated to the distinct performance obligations based on the expected cost or cost plus a margin approach and recognized as revenue as discussed above. The Company also performs tooling and engineering activities for its customers that are not part of a long-term production arrangement. Tooling and engineering revenue are recognized at a point in time or over time depending, among other considerations, on whether the Company has an enforceable right to payment plus a reasonable profit, for performance completed to date. Over-time recognition utilizes costs incurred to date relative to total estimated costs at completion, to measure progress toward satisfying performance obligations. Revenue is recognized as control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Total tooling and engineering sales were $749.1 million [2018—$824.6 million] for the year ended December 31, 2019. The Company’s customers pay for products received in accordance with payment terms that are customary in the industry, typically 30 to 90 days. The Company’s contracts with its customers do not have significant financing components. Amounts billed to customers related to shipping and handling costs are included in Sales in the Consolidated Statements of Income. Shipping and handling costs are accounted for as fulfillment costs and are included in Cost of goods sold in the Consolidated Statements of Income. Taxes assessed by a governmental authority that are both imposed on , , The Company does not disclose the value of unsatisfied performance obligations for [i] contracts with an original expected length of one year or less , Contract Assets and Liabilities The Company’s contract assets include both billed and unbilled accounts receivable and are included in the Accounts Receivable balance. Unbilled amounts typically result from sales of standalone tooling and engineering activities where revenue recognized exceeds the amount billed to the customer. Amounts may not exceed their net realizable value. As at December 31, 2019, the Company’s unbilled accounts receivable balance was $318 million [2018 - $293 million]. Accounts receivable related to production, tooling and engineering sales were $4.5 billion as of December 31, 2019 [2018 - $4.3 billion]. Contract assets do not include the costs of obtaining or fulfilling a contract with a customer, as these amounts are generally expensed as incurred. Customer advances are recorded as deferred revenue [a contract liability]. For the years ended December 31, 2019 and 2018, the contract liability balances were $199 million and $ million, respectively. During the year ended December 31, 2019, the Company recognized $91 million of previously recorded contract liabilities into revenue as performance obligations were satisfied. There were no significant amounts included in contract liabilities recognized in revenue during the year ended December 31, 2018. Government assistance The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received. When a government loan is issued to the Company at a below-market rate of interest, the loan is initially recorded at its net present value, and accreted to its face value over the period of the loan. The benefit of the below-market rate of interest is accounted for like a government grant. It is measured as the difference between the initial carrying value of the loan and the cash proceeds received. Research and development Costs incurred in connection with research and development activities, to the extent not recoverable from the Company’s customers, are charged to expense as incurred. For the years ended December 31, 2019 and 2018, research and development costs charged to expense were approximately $640 million and $588 million, respectively. Earnings per Common Share Basic earnings per Common Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares outstanding during the year. Diluted earnings per Common Share are calculated on the weighted average number of Common Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method. Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Certain amounts in the prior period comparatives have been reclassified to conform with current period presentation. |
Accounting Standards
Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards | 2. ACCOUNTING STANDARDS Accounting Changes Leases In February 2016, the FASB issued ASU No. 2016-02, 2016-02)”, The most significant impact on the Consolidated Financial Statements was the recognition of ROU assets and lease liabilities for operating leases, while the accounting for finance leases remained substantially unchanged. On January 1, 2019, the Company recognized operating lease liabilities of $1.8 billion and ROU |
Sale of Business
Sale of Business | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Business | 3. SALE OF BUSINESS On March 29, 2019, the Company completed the sale of its global Fluid Pressure & Controls [“FP&C”] business to Hanon Systems for total consideration of $1.23 billion. The business was included in the Company’s Power & Vision segment and did not meet the criteria to be classified as a discontinued operation. The following table summarizes the carrying value of the major classes of assets and liabilities of the FP&C business which were reflected as held for sale in the consolidated balance sheets at December 31, 2018: December 31, Accounts receivable $ 258 Inventories 140 Prepaid expenses and other 4 Investments 4 Fixed assets, net 320 Goodwill 157 Deferred tax assets 17 Other assets 11 Intangibles 38 Assets held for sale $ 949 Accounts payable $ 226 Accrued salaries and wages 30 Other accrued liabilities 76 Income taxes payable 6 Long-term employee benefit liabilities 62 Other long-term liabilities 3 Deferred tax liabilities 5 Liabilities held for sale $ 408 During 2019, the Company recognized a gain on the sale within other expense, net as follows: Proceeds on disposal, net of transaction costs $ 1,180 Net assets disposed 656 Gain included in other expense, net [note 4] 524 Income taxes 77 Gain on divestiture, net of ta x $ 447 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | 4. OTHER EXPENSE, NET O ther expense, net consists of significant items such as: impairment charges; restructuring charges generally related to significant plant closures or consolidations; net losses (gains) on investments; gains or losses on disposal of facilities or businesses; and other items not reflective of on-going loss. Other expense, net consists of : 2019 2018 Impairment of assets [a] $ 727 $ 74 Restructuring [b] 31 45 Net losses (gains) on investments [c] 6 (56 ) Gain on sale of business [note 3] (524 ) — Other expense, net $ 240 $ 63 [a] Impairment of assets During 2019, the Company concluded that indicators of impairment were present within the Power & Vision segment related to its equity-accounted investments in Getrag (Jiangxi) Transmission Co., Ltd. and Dongfeng Getrag Transmission Co. Ltd. in China, which make both manual transmissions and dual-clutch transmissions [“DCTs”], and its equity-accounted investment Getrag Ford Transmission GmbH [“GFT”] in in-sourcing non-controlling non-cash o For year ended December 31, 2019, the Company also recorded asset impairment charges of $27 million [$20 million after tax] in its Electronics operations which are included in the Company’s Power & Vision segment. D For th e yea r million [$12 million after tax] related to a certain Body Exteriors & Structures facility. [b] Restructuring During 2019, the Company recorded net restructuring charges of $31 million [$31 million after tax] for its Body Exteriors & Structures operations . During 2018, the Company recorded net restructuring charges of $20 million, and $25 million [$20 million and $23 million after tax], respectively, for its Power & Vision and Body Exteriors & Structures operations. [c] Net losses (gains) on investments During 2019, the Company recorded net losses of $6 million [$5 million after tax]. This includes net Also, during 2019, the Company sold 5.4 million shares of its publicly traded equity securities in Lyft for proceeds of $231 million. During 2018, the Company recorded an unrealized gain of $56 million [$53 million after tax] on the revaluation of its private equity investments of which $46 million [$46 million after tax] related to its investment in Lyft. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. EARNINGS PER SHARE Earnings per share are computed as follows: 2019 2018 Basic earnings per Common Share: Net income attributable to Magna International Inc. $ 1,765 $ 2,296 Weighted average number of Common Shares outstanding during the year 314.7 345.4 Basic earnings per Common Share $ 5.61 $ 6.65 Diluted earnings per Common Share [a]: Net income attributable to Magna International Inc. $ 1,765 $ 2,296 Weighted average number of Common Shares outstanding during the year 314.7 345.4 Adjustments : Stock options and restricted stock 1.1 2.1 315.8 347.5 Diluted earnings per Common Share $ 5.59 $ 6.61 [a] Diluted earnings per Common Share exclude 4.0 million [2018 – 0.8 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. The dilutive effect of participating securities using the two-class method was excluded from the calculation of earnings per share because the effect would be immaterial. |
Details of Cash From Operating
Details of Cash From Operating Activities | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Cash From Operating Activities | 6. DETAILS OF CASH FROM OPERATING ACTIVITIES [a] Cash, cash equivalents and restricted cash equivalents consist of: 2019 2018 Bank term deposits and bankers’ acceptances $ 724 $ 314 Cash 552 370 Cash and cash equivalents $ 1,276 $ 684 Restricted cash equivalents included in prepaid expenses [note 1 7 116 118 $ 1,392 $ 802 [b] Items not involving current cash flows: 2019 2018 Depreciation and amortization $ 1,345 $ 1,278 Amortization of other assets included in cost of goods sold 257 172 Impairment charges [note 4] 727 74 Other non-cash 89 7 Deferred income taxes [note 1 2 7 31 Dividends received in excess of equity income 69 33 Non-cash [note 4] (518 ) (56 ) $ 1,976 $ 1,539 [c] Changes in operating assets and liabilities: 2019 2018 Accounts receivable $ 629 $ (351 ) Inventories 104 (92 ) Prepaid expenses and other (21 ) 9 Accounts payable (519 ) 265 Accrued salaries and wages (34 ) (3 ) Other accrued liabilities 97 105 Income taxes payable 96 (86 ) $ 352 $ (153 ) |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 7. BUSINESS ACQUISITIONS Acquisition in the year ended December 31, 2019 On April 29, 2019, the Company’s Seating Systems segment completed the acquisition of 100% of the equity interest in VIZA GECA, S.L. [“VIZA”], a Spain-based supplier of seat structures and related systems. The purchase price was $99 million [net of $13 million cash acquired] and is subject to customary purchase price adjustments , a nd was accounted for as a business combination. Adjustments were recorded in the fourth quarter of 2019 for changes in the estimated values of fixed assets, intangible assets, other assets, and deferred tax liabilities from the amounts disclosed as of June 30, 2019. The preliminary purchase price allocations may be subsequently adjusted to reflect final valuation results and other adjustments. Acquisition in the year ended December 31, 2018 On October 31, 2018, the Company’s Power & Vision segment completed the acquisition of 100% of the equity interest in OLSA S.p.A. [“OLSA”], a global company which designs, engineers and manufactures tail lamps and other lighting products. The purchase price was $152 million [net of $17 million cash acquired ] and In the fourth quarter of 2019, the Company finalized the purchase price and amounts recognized for the assets acquired and liabilities assumed. The following table summarizes the net amounts recognized for assets acquired and liabilities assumed for these and other small acquisitions at their estimated fair values: Adjustments to 2019 Allocation at Cash $ — $ 13 $ 13 Non-cash 2 10 12 Fixed assets — 113 113 Goodwill (10 ) 22 12 Other assets — 1 1 Intangibles — 12 12 Deferred tax assets — 2 2 Long-term debt — (8 ) (8 ) Other long-term liabilities — (1 ) (1 ) Deferred tax liabilities 8 (4 ) 4 Consideration paid — 160 160 Less: Cash acquired — (13 ) (13 ) Net cash outflow $ — $ 147 $ 147 The adjustments were not significant for any period presented after the acquisition dates. Recognized goodwill is attributable to the assembled workforce, expected synergies and other intangible assets that do not qualify for separate recognition. Intangible assets consist primarily of amounts recognized for the fair value of customer contracts and are being amortized on a straight-line basis over an eight to ten-year These entities have been included in our consolidated results of operations since their respective acquisition dates. Full year p |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. INVENTORIES Inventories consist of: 2019 2018 Raw materials and supplies $ 1,201 $ 1,282 Work-in-process 339 331 Finished goods 425 408 Tooling and engineering 1,339 1,382 $ 3,304 $ 3,403 Tooling and engineering inventory represents costs incurred on tooling and engineering services contracts in excess of billed and unbilled amounts included in accounts receivable. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 9. INVESTMENTS 2019 2018 Equity method investments [a] $ 1,107 $ 1,862 Private equity investments 95 323 Other 8 4 $ 1,210 $ 2,189 [a] The ownership percentages and carrying value s 2019 2018 Litens Automotive Partnership [i] 76.7 % $ 212 $ 188 Getrag (Jiangxi) Transmission Co., Ltd [i] 66.7 % $ 540 $ 1,107 Getrag Ford Transmission GmbH 50.0 % $ 100 $ 268 Dongfeng Getrag Transmission Co. Ltd [“DGT”] [ii] 50.0 % $ 47 $ 72 Hubei HAPM MAGNA Seating Systems Co., Ltd. 49.9 % $ 113 $ 117 [i] The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. [ii] DGT is a variable interest entity [“VIE”] and depends on the Company and the Dongfeng Motor Group Company for any additional cash needs. The Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of our investment balance as at December 31, 2019. A summary of the total financial results, as reported by the Company’s equity method investees, in the aggregate, at December 31 was as follows: Summarized Balance Sheets 2019 2018 Current assets $ 1,680 $ 1,914 Non-current $ 3,573 $ 3,870 Current liabilities $ 1,266 $ 1,500 Long-term liabilities $ 994 $ 1,131 Summarized Income Statements 2019 2018 Sales $ 4,142 $ 5,133 Cost of goods sold & expenses 3,949 4,765 Net income $ 193 $ 368 Sales to equity method investees were approximately $113 million and $379 million for the years ended December 31, 2019 and 2018, respectively. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 10. FIXED ASSETS Fixed assets consist of: 2019 2018 Cost Land $ 219 $ 229 Buildings 2,413 2,205 Machinery and equipment 15,368 14,396 18,000 16,830 Accumulated depreciation Buildings (945 ) (810 ) Machinery and equipment (8,795 ) (7,925 ) $ 8,260 $ 8,095 Included in the cost of fixed assets are construction in progress expenditures of $ 0.9 [2018 - $ 1.0 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. GOODWILL The following is a continuity of the Company’s goodwill by segment: Body Exteriors Power Seating Complete Total Balance, December 31, 2017 $ 463 $ 1,365 $ 153 $ 118 $ 2,099 Acquisitions 16 109 — — 125 Assets held for sale — (157 ) — — (157 ) Foreign exchange and other (20 ) (57 ) (6 ) (5 ) (88 ) Balance, December 31, 2018 459 1,260 147 113 1,979 Acquisitions [note 7] — (9 ) 21 — 12 Foreign exchange and other (1 ) (13 ) 1 (2 ) (15 ) Balance, December 31, 2019 $ 458 $ 1,238 $ 169 $ 111 $ 1,976 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 INCOME TAXES [a] The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following: 2019 2018 Canadian statutory income tax rate 26.5 % 26.5 % Impairment of investments [note 4] 8.2 0.6 Tax on repatriation of foreign earnings 1.9 2.7 Net effect of losses not benefited 0.8 0.4 Foreign rate differentials (3.3 ) (2.9 ) Non-taxable (2.5 ) (0.4 ) Research and development tax credits (2.4 ) (1.7 ) Earnings of equity accounted investees (1.3 ) (1.6 ) Reserve for uncertain tax positions (0.5 ) (1.5 ) Manufacturing and processing profits deduction (0.4 ) (0.3 ) Valuation allowance on deferred tax assets [ii] — (1.8 ) US tax reform [iii] — 0.4 Others (0.4 ) 0.6 Effective income tax rate 26.6 % 21.0 % [i] During the year ended December 31, 2019, the Company had non-taxable [note 3] [ii] GAAP requires that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more-likely-than-not” pre-tax During the year ended December 31, 2018, the Company released certain of its valuation allowance against deferred tax assets on its Canadian capital losses as a result of the anticipated capital gain from the sale of the FP&C business [note 3] [iii] On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act [the “US Tax Reform”]. At December 31, 2017, in accordance with guidance provided by Securities and Exchange Commission Staff Accounting Bulletin No. 118 [”SAB 118”], the Company made a reasonable estimate of its effects and recognized a provisional $23 million net reduction in income tax expense. In the fourth quarter of 2018, the Company completed its analysis of the tax impact and recorded a net increase of $11 million in income tax expense. [b] The details of income before income taxes by jurisdiction are as follows: 2019 2018 Canadian $ 583 $ 631 Foreign 1,640 2,320 $ 2,223 $ 2,951 [c] The details of the income tax provision are as follows: 2019 2018 Current Canadian $ 117 $ 125 Foreign 467 466 584 591 Deferred Canadian 3 24 Foreign 4 4 7 28 $ 591 $ 619 [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2019 2018 Tax depreciation in excess of book depreciation $ 7 $ 32 Book amortization (in excess of) less than tax amortization 43 (1 ) Liabilities currently not deductible for tax (43 ) — Net tax losses benefited 29 (9 ) Change in valuation allowance on deferred tax assets 1 (52 ) Tax on undistributed foreign earnings 1 34 US tax reform — 16 Others (31 ) 8 $ 7 $ 28 [e] Deferred tax assets and liabilities consist of the following temporary differences: 2019 2018 Assets Tax benefit of loss carryforwards $ 622 $ 660 Operating lease liabilities 452 — Liabilities currently not deductible for tax 234 150 Tax credit carryforwards 70 57 Unrealized loss on foreign exchange hedges and retirement liabilities 69 106 Others 41 12 1,488 985 Valuation allowance against tax benefit of loss carryforwards (515 ) (506 ) Other valuation allowance (170 ) (152 ) $ 803 $ 327 Liabilities Operating lease right-of-use assets 447 — Tax depreciation in excess of book depreciation 242 220 Tax on undistributed foreign earnings 137 141 Other assets book value in excess of tax values 66 50 Unrealized gain on foreign exchange hedges and retirement liabilities 18 8 Unrealized gain on remeasurement of investments 4 9 914 428 Net deferred tax liabilities $ (111 ) $ (101 ) The net deferred tax liabilities are presented on the consolidated balance sheet in the following categories: 2019 2018 Long-term deferred tax assets $ 308 $ 300 Long-term deferred tax liabilities (419 ) (401 ) $ (111 ) $ (101 ) [f] The Company has provided for deferred income taxes for the estimated tax cost of distributable earnings of its subsidiaries. Deferred income taxes have not been provided on approximately $5.73 billion of undistributed earnings of certain foreign subsidiaries, as the Company has concluded that such earnings should not give rise to additional tax liabilities upon repatriation or are indefinitely reinvested. A determination of the amount of the unrecognized tax liability relating to the remittance of such undistributed earnings is not practicable. [g] Income taxes paid in cash [net of refunds] were $484 million for the year ended December 31, 201 9 [h] As of December 31, 2019, the Company had domestic and foreign operating loss carryforwards of $2.43 billion and tax credit carryforwards of $70 million. Approximately $1.67 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2020 and 2039. [i] As at December 31, 2019 and 2018, the Company’s gross unrecognized tax benefits were $192 million million 2019 2018 Balance, beginning of year $ 198 $ 243 Increase based on tax positions related to current year 21 20 Decrease based on tax positions of prior years (2 ) (3 ) Increase related to acquisitions 3 8 Settlements (4 ) (13 ) Statute expirations (21 ) (50 ) Foreign currency translation (3 ) (7 ) $ 192 $ 198 The Company recognizes interest and penalties with respect to unrecognized tax benefits as income tax expense. As at December 31, 2019 and 2018, the Company had recorded interest and penalties on the unrecognized tax benefits of $46 millio n n increase million The Company operates in multiple jurisdictions, and its tax returns are periodically audited or subject to review by both domestic and foreign tax authorities. During the next twelve months, it is reasonably possible that, as a result of audit settlements, the conclusion of current examinations and the expiration of the statute of limitations in several jurisdictions, the Company may decrease the amount of its gross unrecognized tax benefits [including interest and penalties] by approximately $32 million, of which $24 million, if recognized, would affect its effective tax rate. The Company considers its significant tax jurisdictions to include Canada, the United States, Austria, Germany and Mexico. With few exceptions, the Company remains subject to income tax examination in Germany for years after 2007, Mexico for years after 201 3 4 5 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 13. INTANGIBLE ASSETS Intangible assets were as follows: Estimated weighted 2019 2018 Cost Customer relationship intangibles [note 7] 9 $ 429 $ 415 Computer software 1 396 291 Patent and licenses 11 264 340 1,089 1,046 Accumulated depreciation Customer relationship intangibles [note 7] (216 ) (191 ) Computer software (310 ) (219 ) Patent and licenses (79 ) (76 ) $ 484 $ 560 The Company recorded approximately $93 million and $84 million of amortization expense related to finite-lived intangible assets for the years ended December 31, 2019 and 2018, respectively. The Company currently estimates annual amortization expense to be $85 million for 2020, $66 million for 2021, $53 million for 2022, $47 million for 2023 and $43 million for 2024. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 1 4 OTHER ASSETS Other assets consist of: 2019 2018 Preproduction costs related to long-term supply agreements $ 683 $ 741 Long-term receivables 217 198 Pension overfunded status [note 19[a]] 22 18 Unrealized gain on cash flow hedges [note 23] 24 9 Other, net 50 22 $ 996 $ 988 |
Employee Equity and Profit Part
Employee Equity and Profit Participation Program | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity and Profit Participation Program | 1 5 EMPLOYEE EQUITY AND PROFIT PARTICIPATION PROGRAM During the year ended December 31, 2019, a trust which exists to make orderly purchases of the Company’s shares for employees for transfer to the Employee Equity and Profit Participation Program [“EEPPP”], borrowed up to $37 million [2018 - $34 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2019, the trust’s indebtedness to Magna was $37 million [2018 - $34 million]. The Company nets the receivable from the trust with the Company’s accrued EEPPP payable in accrued wages and salaries. |
Warranty
Warranty | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Warranty | 1 6 WARRANTY The following is a continuity of the Company’s warranty accruals: 2019 2018 Balance, beginning of year $ 208 $ 255 Expense, net 142 98 Settlements (105 ) (111 ) Foreign exchange and other 7 (7 ) Acquisitions — 2 Liabilities held for sale [note 3] — (29 ) $ 252 $ 208 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 1 7 DEBT Short-term borrowings The Company utilizes credit facilities and commercial paper programs as needed for its short-term working capital fluctuations. As of December 31, 2019, there were no short-term borrowings outstanding. For the year ended December 31, 2018 short-term borrowings totaled $1,098 million, consisting of $35 million in bank indebtedness and $1,063 million in commercial paper. [a] Credit Facilities The Company has an agreement for a credit facility that is drawn in euros that secured dr awn [2018 – $112 million] and the related restricted cash equivalent deposit was $116 million [2018 – $118 million]. Given that the credit agreement includes a netting arrangement that provides for the legal right of setoff , t [2018 – $6 million] is included in the prepaid expenses and other balance [note 6]. On May 24, 2019, the Company amended and restated with an a dditional one-year term- out optio n a vailable at maturity. December [b] Commercial Paper Program The Company has a U.S. commercial paper program [the “U.S. Program”] and a euro-commercial paper program [the “euro-Program”]. Under the U.S. Program, the Company may issue U.S. commercial paper notes [the “U.S. notes”] up to a maximum aggregate amount of U.S. $1 billion. The U.S. Program is supported by the Company’s existing global credit facility. The proceeds from the issuance of the U.S. notes are being used for general corporate purposes. There were no amounts outstanding as of December 31, 2019. As at December 31, 2018, $903 million of U.S. notes were outstanding, with a weighted-average interest rate of 3.00%, and maturities less than three months. Under the euro-Program, the Company may issue euro-commercial paper notes [the “euro notes”] up to a maximum aggregate amount of €500 million or its equivalent in alternative currencies. The euro notes issued are guaranteed by the Company’s existing global credit facility. There were no amounts outstanding as of December 31, 2019. 8 [ Long-term borrowings [a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following: 2019 2018 Senior Notes [note 1 7 $750 million Senior Notes due 2024 at 3.625% $ 747 $ 746 $650 million Senior Notes due 2025 at 4.150% 645 644 €550 million Senior Notes due 2023 at 1.900% 615 627 €600 million Senior Notes due 2027 at 1.500% 670 683 Cdn$425 million Senior Notes due 2022 at 3.100% 327 311 Bank term debt at a weighted average interest rate of approximately 4.97% [2018 – 4.89%], denominated primarily in Chinese renminbi, Brazilian real, euro and Indian rupee 105 153 Government loans at a weighted average interest rate of approximately 1.63% [2018 – 2.18%], denominated primarily in euro, Canadian dollar and Brazilian real 48 109 Other 11 12 3,168 3,285 Less due within one year 106 201 $ 3,062 $ 3,084 [b] Future principal repayments on long-term debt are estimated to be as follows: 2020 $ 106 2021 33 2022 338 2023 619 2024 751 Thereafter 1,321 $ 3,168 [c] All of the Senior Notes pay a fixed rate of interest semi-annually except for the €550 million and €600 million Senior Notes which pay a fixed rate of interest annually. The Senior Notes are unsecured obligations and do not include any financial covenants. The Company may redeem the Senior Notes in whole or in part at any time, at specified redemption prices determined in accordance with the terms of each of the respective indentures governing the Senior Notes. All of the Senior Notes were issued for general corporate purposes. [d] The Company’s $2.75 billion revolving credit facility matures on June 24, 2024. The facility includes a $200 million Asian tranche, a $100 million Mexican tranche and a tranche for Canada, U.S. and Europe, which is fully transferable between jurisdictions and can be drawn in U.S. dollars, Canadian dollars or euros. [e] Interest expense, net includes: 2019 2018 Interest expense Current $ 17 $ 24 Long-term 87 89 104 113 Interest income (22 ) (20 ) Interest expense, net $ 82 $ 93 [f] Interest paid in cash was $103 million |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 18. LEASES The Company has entered into leases primarily for real estate, manufacturing equipment and vehicles with terms that range from 1 year to 33 years, excluding land use rights which generally extend over 90 years. These leases often include options to extend the term of the lease for up to 12 years or to terminate the lease within 1 year. When it is reasonably certain that the option will be exercised, the impact of the option is included in the lease term for purposes of determining total future lease payments. Costs associated with the Company’s operating lease expense were as follows: 2019 Operating lease expense $ 316 Short-term lease expense 25 Variable lease expense 27 Total lease expense $ 368 Supplemental information related to the Company’s operating leases was as follows: 2019 Operating cash flows – cash paid relating to operating leases $ 344 Right-of-use 104 Weighted-average remaining lease term – operating leases, in years 11 years Weighted-average discount rate – operating leases 4.8 % At December 31, 2019, the Company had commitments under operating leases requiring annual payments as follows: Total 2020 $ 297 2021 270 2022 247 2023 221 2024 194 2025 and thereafter 1,126 2,355 Less: amount representing interest 529 Total lease liabilities $ 1,826 Current operating liabilities $ 225 Non-current 1,601 Total lease liabilities $ 1,826 As of December 31, 2019, the Company has additional operating leases, primarily for manufacturing facilities, that have not yet commenced of $22 million. These operating leases will commence during 2020 and have lease terms of 1 to 8 years. The Company’s future minimum lease commitments, as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, were as follows: Total 2019 $ 310 2020 283 2021 254 2022 230 2023 199 Thereafter 714 $ 1,990 For the year ended December 31, 2018, operating lease expense was $330 million reflected in Cost of good sold and $31 million in Selling, general and administrative expenses, respectively, in the consolidated statement of income. The Company’s finance leases were not material for any of the periods presented. |
Long-Term Employee Benefit Liab
Long-Term Employee Benefit Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Long-Term Employee Benefit Liabilities | 19. LONG-TERM EMPLOYEE BENEFIT LIABILITIES Long-term employee benefit liabilities consist of: 2019 2018 Defined benefit pension plans and other [a] $ 203 $ 184 Termination and long service arrangements [b] 437 381 Retirement medical benefits plans [c] 27 27 Other long-term employee benefits 10 5 Long-term employee benefit obligations $ 677 $ 597 [a] Defined benefit pension plans The Company sponsors a number of defined benefit pension plans and similar arrangements for its employees. All pension plans are funded to at least the minimum legal funding requirements, while European defined benefit pension plans are unfunded. The weighted average significant actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows: 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % Rate of compensation increase 2.6 % 2.5 % Net periodic benefit cost Discount rate 3.2 % 2.8 % Rate of compensation increase 2.6 % 2.5 % Expected return on plan assets 4.9 % 5.8 % Information about the Company’s defined benefit pension plans is as follows: 2019 2018 Projected benefit obligation Beginning of year $ 633 $ 687 Current service cost 11 14 Interest cost 20 18 Actuarial losses (gains) and changes in actuarial assumptions 79 (33 ) Benefits paid (21 ) (24 ) Divestiture (68 ) — Foreign exchange 5 (29 ) End of year 659 633 Plan assets at fair value [i] Beginning of year 406 443 Return on plan assets 78 (11 ) Employer contributions 11 12 Benefits paid (17 ) (19 ) Divestiture (10 ) — Foreign exchange 10 (19 ) End of year 478 406 Ending funded status $ 181 $ 227 Amounts recorded in the consolidated balance sheet Non-current [note 1 4 $ (23 ) $ (18 ) Current liability 1 1 Liabilities held for sale [note 3] — 60 Non-current 203 184 Net amount $ 181 $ 227 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (141 ) $ (134 ) Net periodic benefit cost Current service cost $ 11 $ 14 Interest cost 20 18 Return on plan assets (19 ) (25 ) Actuarial losses 4 4 Net periodic benefit cost $ 16 $ 11 [i] The asset allocation of the Company’s defined benefit pension plans at December 31, 2019 and the target allocation for 2020 is as follows: 2020 2019 Fixed income securities 55-75 % 59 % Equity securities 25-45 % 37 % Cash and cash equivalents 0-10 % 4 % 100 % 100 % Substantially all of the plan assets’ fair value has been determined using significant observable inputs [level 2] from indirect market prices on regulated financial exchanges. [ii] Includes $58 million of long-term employee benefit liabilities and $2 million of accrued salaries and wages which were reclassified to liabilities held for sale. The expected rate of return on plan assets was determined by considering the Company’s current investment mix, the historic performance of these investment categories and expected future performance of these investment categories. [b] Termination and long service arrangements Pursuant to labour laws and national labour agreements in certain European countries and Mexico, the Company is obligated to provide lump sum termination payments to employees on retirement or involuntary termination, and long service payments contingent upon persons reaching a predefined number of years of service. The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows: 2019 2018 Discount rate 2.1 % 2.8 % Rate of compensation increase 3.1 % 2.9 % Information about the Company’s termination and long service arrangements is as follows: 2019 2018 Projected benefit obligation Beginning of year $ 394 $ 378 Current service cost 29 22 Interest cost 10 8 Actuarial losses and changes in actuarial assumptions 39 14 Benefits paid (19 ) (14 ) (Divestiture) acquisition (3 ) 2 Foreign exchange (4 ) (16 ) Ending funded status $ 446 $ 394 Amounts recorded in the consolidated balance sheet Current liability $ 9 $ 9 Liabilities held for sale [note 3] — 4 Non-current 437 381 Net amount $ 446 $ 394 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (124 ) $ (88 ) Net periodic benefit cost Current service cost $ 29 $ 22 Interest cost 10 8 Actuarial losses (gains) 4 (1 ) Net periodic benefit cost $ 43 $ 29 [c] Retirement medical benefits plans The Company sponsors a number of retirement medical plans which were assumed on certain acquisitions in prior years. These plans are frozen to new employees and incur no current service costs. In addition, the Company sponsors a retirement medical benefits plan that was amended during 2009 such that substantially all employees retiring on or after August 1, 2009 no longer participate in the plan. The weighted average discount rates used in measuring the Company’s projected retirement medical benefit obligations and net periodic benefit cost are as follows: 2019 2018 Retirement medical benefit obligations 3.1 % 4.0 % Net periodic benefit cost 4.0 % 3.4 % Health care cost inflation 6.8 % 6.8 % Information about the Company’s retirement medical benefits plans are as follows: 2019 2018 Projected benefit obligation Beginning of year $ 29 $ 33 Interest cost 1 1 Actuarial gains and changes in actuarial assumptions — (3 ) Benefits paid (1 ) (1 ) Foreign exchange — (1 ) Ending funded status $ 29 $ 29 Amounts recorded in the consolidated balance sheet Current liability $ 2 $ 2 Non-current 27 27 Net amount $ 29 $ 29 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial gains 11 12 Total accumulated other comprehensive income $ 11 $ 12 Net periodic benefit cost Interest cost $ 1 $ 1 Actuarial gains (1 ) (1 ) Net periodic benefit cos t $ — $ — The effect of a one-percentage [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2020 $ 11 $ 9 $ 2 $ 22 Expected benefit payments: 2020 $ 22 $ 10 $ 1 $ 33 2021 22 11 2 35 2022 23 11 2 35 2023 23 14 2 39 2024 24 18 2 43 Thereafter 131 119 8 250 $ 245 $ 183 $ 17 $ 435 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 20. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of: 2019 2018 Long-term portion of fair value of hedges [note 23] $ 8 $ 40 Long-term portion of income taxes payable 234 205 Asset retirement obligation 34 33 Deferred revenue 74 106 Long-term lease inducements [note 18] — 16 Other 21 — $ 371 $ 400 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | 21. CAPITAL STOCK [a] At December 31, 2019, the Company’s authorized, issued and outstanding capital stock are as follows: Preference shares - issuable in series - The Company’s authorized capital stock includes 99,760,000 preference shares, issuable in series. None of these shares are currently issued or outstanding. Common Shares - Common Shares without par value [unlimited amount authorized] have the following attributes: [i] Each share is entitled to one vote per share at all meetings of shareholders. [ii] Each share shall participate equally as to dividends. [b] On November 12, 2019, the Toronto Stock Exchange [“TSX”] accepted the Company’s Notice of Intention to Make a Normal Course Issuer Bid relating to the purchase for cancellation, as well as purchases to fund the Company’s stock-based compensation awards or programs and/or the Company’s obligations to its deferred profit sharing plans, of up to 30.3 million Magna Common Shares [the “2019 Bid”], representing approximately 10% of the Company’s public float of Common Shares. The Bid commenced on November 15, 2019 and will terminate no later than November 14, 2020. Previously, the Company had Normal Course Issuer Bids in place for the 12 month periods beginning in November 2018 and 2017. The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: Maximum 2019 2018 number Shares purchased Cash amount Shares Cash 2017 Bid 35,800,000 — — 26,630,243 $ 1,544 2018 Bid 33,200,000 23,401,457 1,159 6,014,041 287 2019 Bid 30,283,500 2,367,106 130 — — 25,768,563 $ 1,289 32,644,284 $ 1,831 [c] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 5, 2020 were exercised or converted: Common Shares 301,768,927 Stock options (i) 9,745,110 311,514,037 (i) Options to purchase Common Shares are exercisable by the holder in accordance with the vesting provisions and upon payment of the exercise price as may be determined from time to time pursuant to the Company’s stock option plans. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 22. ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a continuity schedule of accumulated other comprehensive loss: 2019 2018 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (917 ) $ (456 ) Net unrealized loss (18 ) (490 ) Repurchase of shares under normal course issuer bids [note 21] 28 29 Balance, end of year (907 ) (917 ) Accumulated net unrealized gain (loss) on cash flow hedges [b] Balance, beginning of year (68 ) 39 Net unrealized gain (loss) 102 (106 ) Reclassification of net loss (gain) to net income [a] 4 (1 ) Balance, end of year 38 (68 ) Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (190 ) (183 ) Net unrealized loss (47 ) (13 ) Reclassification of net loss to net income [a] 8 6 Sale of business 8 — Balance, end of year (221 ) (190 ) Total accumulated other comprehensive loss [ c $ (1,090 ) $ (1,175 ) [a] The effects on net income of amounts reclassified from AOCL, with presentation location, were as follows: 2019 2018 Cash flow hedges Sales $ (38 ) $ (6 ) Cost of sales 33 7 Income tax 1 — Net of tax (4 ) 1 Other long-term liabilities Cost of sales (9 ) (7 ) Income tax 1 1 Net of tax (8 ) (6 ) Total loss reclassified to net income $ (12 ) $ (5 ) [b] The amount of income tax benefit that has been allocated to each component of other comprehensive loss is as follows: 2019 2018 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, end of year $ 7 $ 7 Accumulated net unrealized (gain) loss on cash flow hedges Balance, beginning of year 23 (12 ) Net unrealized (gain) loss (36 ) 35 Reclassification of net loss to net income (1 ) — Balance, end of year (14 ) 23 Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 21 17 Net unrealized loss 15 5 Reclassification of net loss to net income (1 ) (1 ) Balance, end of year 35 21 Total income tax benefit $ 28 $ 51 [c] The amount of other comprehensive loss that is expected to be reclassified to net income during 2020 is $37 million. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 23. FINANCIAL INSTRUMENTS [a] Foreign exchange contracts At December 31, 2019, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows: For Canadian dollars For U.S. dollars Buy (Sell) U.S. Weighted Peso Weighted 2020 173 1.31238 6,271 0.04824 2020 (759 ) 0.76562 (25 ) 20.37835 2021 19 1.31855 2,749 0.04624 2021 (479 ) 0.76856 — — 2022 6 1.32105 1,074 0.04675 2022 (263 ) 0.76649 — — 2023 (52 ) 0.76140 — — 2024 (14 ) 0.75235 — — (1,369 ) 10,069 For euros Buy (Sell) U.S Weighted Czech Weighted 2020 196 0.85601 4,582 0.03834 2020 (117 ) 1.15358 — — 2021 89 0.82944 2,576 0.03757 2021 (34 ) 1.21681 — — 2022 48 0.81676 468 0.03762 2022 (4 ) 1.21233 — — 2023 23 0.81607 — — 2023 (2 ) 1.19193 — — 2024 7 0.83511 — — 206 7,626 Based on forward foreign exchange rates as at December 31, 2019 for contracts with similar remaining terms to maturity, the gains and losses relating to the Company’s foreign exchange forward contracts recognized in other comprehensive income are approximately $70 million and $18 million, respectively [note 22] The Company does not enter into foreign exchange forward contracts for speculative purposes. [b] Financial assets and liabilities The Company’s financial assets and liabilities consist of the following: 2019 2018 Financial assets Cash and cash equivalents $ 1,276 $ 684 Restricted cash equivalents 116 118 Accounts receivable 5,927 6,548 Publicly traded and private equity investments 99 323 Severance investments 1 3 Long-term receivables included in other assets [note 1 4 217 198 Financial assets held for sale [note 3] Accounts receivable held for sale — 258 Severance investments held for sale — 1 $ 7,636 $ 8,133 Financial liabilities Bank indebtedness [note 1 7 $ — $ 35 Commercial paper [note 1 7 — 1,063 Long-term debt (including portion due within one year) 3,168 3,285 Accounts payable 5,628 6,094 Financial liabilities held for sale [note 3] Accounts payable held for sale — 226 $ 8,796 $ 10,703 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses and other $ 46 $ 25 Other assets 24 9 Other accrued liabilities (10 ) (61 ) Other long-term liabilities (8 ) (40 ) $ 52 $ (67 ) [c] Derivatives designated as effective hedges, measured at fair value The Company presents derivatives that are designated as effective hedges at gross fair values in the consolidated balance sheets. However, master netting and other similar arrangements allow net settlements under certain conditions. The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the consolidated balance sheets and the unrecognized impacts of master netting arrangements: Gross Gross amounts amounts presented not offset in consolidated in consolidated Net balance sheets balance sheets amounts December 31, 2019 Assets $ 70 $ 15 $ 55 Liabilities $ (18 ) $ (15 ) $ (3 ) December 31, 2018 Assets $ 34 $ 33 $ 1 Liabilities $ (101 ) $ (33 ) $ (68 ) [d] Fair value The Company determined the estimated fair values of its financial instruments based on valuation methodologies it believes are appropriate; however, considerable judgment is required to develop these estimates. Accordingly, these estimated fair values are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below: Cash and cash equivalents, restricted cash equivalents, accounts receivable, short-term borrowings and accounts payable. Due to the short period to maturity of the instruments, the carrying values as presented in the consolidated balance sheets are reasonable estimates of fair values. Publicly traded and private equity securities The fair value of the Company’s investments in publicly traded equity securities is determined using the closing price on the measurement date, as reported on the stock exchange on which the securities are traded. [Level 1 input based on the GAAP fair value hierarchy.] The Company estimates the value of its private equity securities based on valuation methods using the observable transaction price at the transaction date and other observable inputs including rights and obligations of the securities held by the Company. [Level 3 input based on the GAAP fair value hierarchy.] Term debt The Company’s term debt includes $106 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value. Senior Notes The fair value of our Senior Notes are classified as Level 1 when we use quoted prices in active markets and Level 2 when the quoted prices are from less active markets or when other observable inputs are used to determine fair value. At December 31, 2019, the net book value of the Company’s Senior Notes was $3.02 billion and the estimated fair value was $3.20 billion, determined using Level 2 inputs . [e] Credit risk The Company’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents , [ net of the euro drawn amount held-to-maturity Cash and cash equivalents and restricted cash equivalents, which consist of short-term investments, are only invested in bank term deposits and bank commercial paper with an investment grade credit rating. Credit risk is further reduced by limiting the amount which is invested in certain governments or any major financial institution. The Company is also exposed to credit risk from the potential default by any of its counterparties on its foreign exchange forward contracts. The Company mitigates this credit risk by dealing with counterparties who are major financial institutions that the Company anticipates will satisfy their obligations under the contracts. In the normal course of business, the Company is exposed to credit risk from its customers, substantially all of which are in the automotive industry and are subject to credit risks associated with the automotive industry. For the year ended December 31, 2019, sales to the Company’s six largest customers represented 77% [2018—77%] of the Company’s total sales; and substantially all of its sales are to customers in which the Company has ongoing contractual relationships. [f] Currency risk The Company is exposed to fluctuations in foreign exchange rates when manufacturing facilities have committed to the delivery of products for which the selling price has been quoted in currencies other than the facilities’ functional currency, and when materials and equipment are purchased in currencies other than the facilities’ functional currency. In an effort to manage this net foreign exchange exposure, the Company employs hedging programs, primarily through the use of foreign exchange forward contracts [note 23[a]] [g] Interest rate risk The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities. In particular, the amount of interest income earned on cash and cash equivalents is impacted more by investment decisions made and the demands to have available cash on hand, than by movements in interest rates over a given period. In addition, the Company is not exposed to interest rate risk on its term debt and Senior Notes as the interest rates on these instruments are fixed. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 24. CONTINGENCIES From time to time, the Company may become involved in regulatory proceedings, or become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees, class action plaintiffs and others. On an ongoing basis, the Company attempts to assess the likelihood of any adverse judgments or outcomes to these proceedings or claims, together with potential ranges of probable costs and losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. [a] In September 2014, the Conselho Administrativo de Defesa Economica [“CADE”], Brazil’s Federal competition authority, attended at one of the Company’s operating divisions in Brazil to obtain information in connection with an ongoing antitrust investigation relating to suppliers of automotive door latches and related products [“access mechanisms”]. In May 2019, CADE informed the Company that it completed its preliminary investigation and, based on a review of the evidence, has commenced a formal administrative proceeding into alleged anticompetitive behaviour relating to access mechanisms involving the Company. Administrative proceedings of this nature can often continue for several years. At this time, management is unable to predict the duration or outcome of the Brazilian administrative proceeding, including whether any operating divisions of the Company will be found liable for any violation of law or the extent or magnitude of any liability, if any. In the event that wrongful conduct is found, CADE may impose administrative penalties or fines taking into account several mitigating and aggravating factors. Administrative fines are tied to the sales in Brazil of the applicable Magna companies in the fiscal year prior to the commencement of the formal administrative proceeding. Magna could also be subject to restitution settlements, civil proceedings and other consequences, including reputational damage. The Company’s policy is to comply with all applicable laws, including antitrust and competition laws. The Company has completed its previously announced global review focused on antitrust risk and does not currently anticipate any material liabilities in connection with the review. [b] The Company is at risk for product warranty costs, which include product liability and recall costs, and is currently experiencing increased customer pressure to assume greater warranty responsibility. For most types of products, the Company only accounts for existing or probable product warranty claims. However, for certain complete vehicle assembly, powertrain systems and electronics contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and/or the Company’s warranty experience. Product liability and recall provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims, which typically take into account: the number of units that may be returned; the cost of the product being replaced; labour to remove and replace the defective part; and the customer’s administrative costs relating to the recall. Where applicable, such provisions are booked net of recoveries from sub-suppliers [note 16] |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segmented Information | 25. SEGMENTED INFORMATION [a] Magna is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mirrors & lighting, mechatronics and roof systems. Magna also has electronic and software capabilities across many of these areas. The Company is organized under four operating segments: Body Exteriors & Structures, Power & Vision, Seating System s The Company’s chief operating decision maker uses Adjusted Earnings before Interest and Income Taxes [“Adjusted EBIT”] as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. Adjusted EBIT is calculated by taking net income and adding back income taxes, interest expense, net, and other expense, net. The accounting policies of each segment are the same as those set out under “Significant Accounting Policies” [note 1] [a] The following tables show segment information for the Company’s reporting segments and a reconciliation of Adjusted EBIT to the Company’s consolidated income before income taxes: 2019 Depreciation Equity Total External Adjusted and ( income sales sales EBIT amortization loss Body Exteriors & Structures $ 16,458 $ 16,110 $ 1,299 $ 710 $ (3 ) Power & Vision 11,312 11,103 747 464 (174 ) Seating Systems 5,577 5,548 312 66 (4 ) Complete Vehicles 6,707 6,661 144 84 (1 ) Corporate & Other [i] (623 ) 9 43 21 4 Total Reportable Segments $ 39,431 $ 39,431 $ 2,545 $ 1,345 $ (178 ) 2018 Depreciation Total External Adjusted and Equity sales sales EBIT amortization income Body Exteriors & Structures $ 17,527 $ 17,220 $ 1,413 $ 701 $ (12 ) Power & Vision 12,321 12,086 1,171 435 (261 ) Seating Systems 5,548 5,546 426 57 (3 ) Complete Vehicles 6,018 5,968 68 65 — Corporate & Other [i] (587 ) 7 29 20 (1 ) Total Reportable Segments $ 40,827 $ 40,827 $ 3,107 $ 1,278 $ (277 ) 2019 Fixed Fixed Net asset, asset assets Investments Goodwill net additions Body Exteriors & Structure $ 7,906 $ 31 $ 458 $ 4,827 $ 713 Power & Vision 5,626 899 1,238 2,299 577 Seating Systems 1,219 134 169 412 76 Complete Vehicles 735 2 111 593 69 Corporate & Other [i] 468 144 — 129 6 Total Reportable Segments $ 15,954 $ 1,210 $ 1,976 $ 8,260 $ 1,441 2018 Fixed Fixed Net asset, asset assets Investments Goodwill net additions Body Exteriors & Structure $ 7,142 $ 34 $ 459 $ 4,825 $ 730 Power & Vision [ii] 6,703 1,680 1,260 2,151 655 Seating Systems 815 135 147 330 78 Complete Vehicles 605 2 113 622 170 Corporate & Other [i] 563 338 — 167 17 Total Reportable Segments $ 15,828 $ 2,189 $ 1,979 $ 8,095 $ 1,650 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. [ii] Includes $541 million of net assets held for sale. [b] The following table reconciles Net income from operations to Adjusted EBIT: 2019 2018 Net Income $ 1,632 $ 2,332 Add: Interest expense, net 82 93 Other expense, net 240 63 Income taxes 591 619 Adjusted EBIT $ 2,545 $ 3,107 [c] The following table shows Net Assets for the Company’s reporting segments: 2019 2018 Total Assets $ 25,790 $ 25,945 Deduct assets not included in segment net assets: Cash and cash equivalents (1,276 ) (684 ) Deferred tax assets (308 ) (300 ) Long-term receivables from joint venture partners (71 ) (71 ) Income taxes receivable — (57 ) Deduct liabilities included in segment net assets: Accounts Payable (5,628 ) (6,094 ) Accrued salaries and wages (753 ) (769 ) Other accrued liabilities (1,800 ) (1,734 ) Liabilities held for sale — (408 ) Segment Net Assets $ 15,954 $ 15,828 [d] The following table aggregates external revenues by customer as follows: 2019 2018 General Motors $ 5,732 $ 6,303 BMW 5,469 4,826 Ford Motor Company 5,270 5,721 Fiat Chrysler Automobiles 5,173 5,693 Daimler AG 4,887 4,687 Volkswagen 4,001 4,128 Other 8,899 9,469 $ 39,431 $ 40,827 [e] The following table summarizes external revenues and long-lived assets by geographic region: External Sales Fixed Assets, Net 2019 2018 2019 2018 North America United States $ 9,702 $ 10,043 $ 1,661 $ 1,359 Canada 5,353 5,886 993 1,001 Mexico 4,294 4,618 1,287 1,275 19,349 20,547 3,941 3,635 Europe Austria 8,279 7,750 872 938 Germany 4,878 4,893 1,090 1,271 Czech Republic 899 764 276 257 Poland 689 694 201 200 Italy 527 850 244 288 United Kingdom 422 517 209 191 Russia 434 424 134 138 Spain 431 382 79 47 Turkey 293 291 10 8 France 201 219 55 46 Slovakia 139 127 223 71 Other Europe 139 144 215 221 17,331 17,055 3,608 3,676 Asia Pacific China 1,947 2,152 528 588 India 144 180 98 106 Korea 44 158 1 21 Other Asia Pacific 29 50 4 3 2,164 2,540 631 718 Rest of World 587 685 80 66 $ 39,431 $ 40,827 $ 8,260 $ 8,095 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 26. SUBSEQUENT EVENT Normal Course Issuer Bid Subsequent to December 31, 2019, the Company purchased 1,955,518 Common Shares for cancellation and 177,103 Common Shares to satisfy stock-based compensation awards, each under an existing normal course issuer bid for cash consideration of $101 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The Consolidated Financial Statements include the accounts of Magna and its subsidiaries in which Magna has a controlling financial interest and non-controlling |
Foreign currency translation | Foreign currency translation The Company operates globally, which gives rise to a risk that its earnings and cash flows may be adversely impacted by fluctuations in foreign exchange rates. Assets and liabilities of the Company’s operations having a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate in effect at year end, and revenues and expenses are translated at the average rate during the year. Exchange gains or losses on translation of the Company’s net investment in these operations are included in comprehensive income and are deferred in accumulated other comprehensive loss. Foreign exchange gains or losses on debt that was designated as a hedge of the Company’s net investment in these operations are also recorded in accumulated other comprehensive loss. Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. Most of the Company’s foreign exchange contracts are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded on a gross basis in prepaid expenses and other, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive loss If the Company’s foreign exchange forward contracts cease to be effective as hedges, for example if projected foreign cash inflows or outflows declined significantly, gains or losses pertaining to the portion of the hedging transactions in excess of projected foreign currency denominated cash flows would be recognized in income at the time this condition was identified. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and short-term investments with remaining maturities of less than three months at acquisition. |
Inventories | Inventories Production inventories and tooling inventories manufactured in-house first-in, first-out |
Investments | Investments The Company accounts for investments in companies over which it has the ability to exercise significant influence, but does not hold a controlling financial interest, under the equity method [“Equity method investments”]. The Company monitors its equity method investments for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the book value and the fair value of the investment. Fair value is generally determined using an income approach based on discounted cash flows. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, “Fair Value Measurement” and primarily consist of expected investee revenue and costs, estimated production volumes and discount rates. The Company also has investments in private and publicly traded technology companies over which it does not have the ability to exercise significant influence. The Company has elected to use the measurement alternative, defined as cost, less impairments, adjusted by observable price changes to measure the private equity investments. The Company values its investments in publicly traded equity securities using the closing price on the measurement date, as reported on the stock exchange on which the securities are traded. Private equity investments are subject to impairment reviews conducted on a quarterly basis. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant impact on the investee’s fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value. An impairment is recognized immediately if the carrying value exceeds the fair value. |
Long-lived assets | Long-lived assets Fixed assets are recorded at historical cost. Depreciation is provided on a straight-line basis over the estimated useful lives of fixed assets at annual rates of 2 1 2 Finite-lived intangible assets, which have arisen principally through acquisitions, include customer relationship intangibles and patents and licences. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 4 to 15 years. The Company assesses fixed and finite-lived intangible assets for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of fixed and finite-lived intangible assets is generally determined using estimated discounted future cash flows. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent write-downs for impairment. Goodwill is reviewed for impairment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, an impairment is recognized based on that difference. The fair value of a reporting unit is determined using its estimated discounted future cash flows. |
Preproduction costs related to long-term supply agreements | Tooling and Pre-Production The Company incurs pre-production pre-production Pre-production The Company expenses all pre-production non-cancelable |
Warranty | Warranty The Company has assurance warranties and records product warranty liabilities based on its individual customer agreements. Under most customer agreements, the Company only accounts for existing or probable claims on product default issues when amounts related to such issues are probable and reasonably estimable. However, for certain complete vehicle assembly, powertrain systems and electronics contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and/or the Company’s warranty experience. Product liability and recall provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims which typically take into account: the number of units that may be returned; the cost of the product being replaced; labour to remove and replace the defective part; and the customer’s administrative costs relating to the recall. Judgement is also required as to the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. The Company monitors warranty activity on an ongoing basis and adjusts reserve balances when it is probable that future warranty costs will be different than those previously estimated. |
Income taxes | Income taxes The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are either considered to be reinvested for the foreseeable future or if they are available for repatriation and are not subject to further tax on remittance. Taxes are recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further tax on remittance. Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not more-likely-than-not |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. The Company recognizes operating lease expense for these leases on a straight-line basis over the lease term. Operating lease right-of-use A majority of the Company’s leases for manufacturing facilities are subject to variable lease-related payments, such as escalation clauses based on consumer price index rates or other similar indices. Variable payments that are based on an index or a rate are included in the recognition of the Company’s ROU assets and lease liabilities using the index or rate at lease commencement. Subsequent changes to these lease payments due to rate or index updates are recorded as lease expense in the period incurred. The Company’s lease agreements generally exclude non-lease non-lease |
Employee future benefit plans | Employee future benefit plans The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of: [i] the accrued benefit obligation at the beginning of the year; and [ii] the fair value [or market related value] of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation [“PBO”]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans in long-term employee benefit liabilities. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next twelve months is reflected in other accrued liabilities. |
Revenue recognition | Revenue recognition The Company enters into contracts with its customers to provide production parts or assembled vehicles. Contracts do not commit the customer to a specified quantity of products; however, the Company is generally required to fulfill its customers’ purchasing requirements for the production life of the vehicle. Contracts do not typically become a performance obligation until the Company receives either a purchase order and/or a customer release for a specific number of parts or assembled vehicles at a specified price. While long-term supply agreements may range from five to seven years, contracts may be terminated by customers at any time. Historically, terminations have been minimal. Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are 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 parts produced or assembled vehicles are transferred to the customer according to the terms of the contract. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on purchase orders, annual price reductions and ongoing price adjustments [some of which is accounted for as variable consideration]. The Company uses the expected value method, taking into account historical data and the status of current negotiations, to estimate the amount to which it expects to be entitled. Significant changes to the Company’s estimates of variable consideration are not expected. The Company’s complete vehicle assembly contracts with customers are complex and often include promises to transfer multiple products and services to a customer, some of which may be implicitly contracted for. For these complex arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation, and whether it should be characterized as revenue or reimbursement of costs incurred. The total transaction price is then allocated to the distinct performance obligations based on the expected cost or cost plus a margin approach and recognized as revenue as discussed above. The Company also performs tooling and engineering activities for its customers that are not part of a long-term production arrangement. Tooling and engineering revenue are recognized at a point in time or over time depending, among other considerations, on whether the Company has an enforceable right to payment plus a reasonable profit, for performance completed to date. Over-time recognition utilizes costs incurred to date relative to total estimated costs at completion, to measure progress toward satisfying performance obligations. Revenue is recognized as control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Total tooling and engineering sales were $749.1 million [2018—$824.6 million] for the year ended December 31, 2019. The Company’s customers pay for products received in accordance with payment terms that are customary in the industry, typically 30 to 90 days. The Company’s contracts with its customers do not have significant financing components. Amounts billed to customers related to shipping and handling costs are included in Sales in the Consolidated Statements of Income. Shipping and handling costs are accounted for as fulfillment costs and are included in Cost of goods sold in the Consolidated Statements of Income. Taxes assessed by a governmental authority that are both imposed on , , The Company does not disclose the value of unsatisfied performance obligations for [i] contracts with an original expected length of one year or less , |
Contract Assets and Liabilities | Contract Assets and Liabilities The Company’s contract assets include both billed and unbilled accounts receivable and are included in the Accounts Receivable balance. Unbilled amounts typically result from sales of standalone tooling and engineering activities where revenue recognized exceeds the amount billed to the customer. Amounts may not exceed their net realizable value. As at December 31, 2019, the Company’s unbilled accounts receivable balance was $318 million [2018 - $293 million]. Accounts receivable related to production, tooling and engineering sales were $4.5 billion as of December 31, 2019 [2018 - $4.3 billion]. Contract assets do not include the costs of obtaining or fulfilling a contract with a customer, as these amounts are generally expensed as incurred. Customer advances are recorded as deferred revenue [a contract liability]. For the years ended December 31, 2019 and 2018, the contract liability balances were $199 million and $ million, respectively. During the year ended December 31, 2019, the Company recognized $91 million of previously recorded contract liabilities into revenue as performance obligations were satisfied. There were no significant amounts included in contract liabilities recognized in revenue during the year ended December 31, 2018. |
Government assistance | Government assistance The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received. When a government loan is issued to the Company at a below-market rate of interest, the loan is initially recorded at its net present value, and accreted to its face value over the period of the loan. The benefit of the below-market rate of interest is accounted for like a government grant. It is measured as the difference between the initial carrying value of the loan and the cash proceeds received. |
Research and development | Research and development Costs incurred in connection with research and development activities, to the extent not recoverable from the Company’s customers, are charged to expense as incurred. For the years ended December 31, 2019 and 2018, research and development costs charged to expense were approximately $640 million and $588 million, respectively. |
Earnings per Common Share | Earnings per Common Share Basic earnings per Common Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares outstanding during the year. Diluted earnings per Common Share are calculated on the weighted average number of Common Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method. Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Certain amounts in the prior period comparatives have been reclassified to conform with current period presentation. |
Sale of Business (Tables)
Sale of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Carrying Value of Major Classes of Assets and Liabilities Classified as Held for Sale | The following table summarizes the carrying value of the major classes of assets and liabilities of the FP&C business which were reflected as held for sale in the consolidated balance sheets at December 31, 2018: December 31, Accounts receivable $ 258 Inventories 140 Prepaid expenses and other 4 Investments 4 Fixed assets, net 320 Goodwill 157 Deferred tax assets 17 Other assets 11 Intangibles 38 Assets held for sale $ 949 Accounts payable $ 226 Accrued salaries and wages 30 Other accrued liabilities 76 Income taxes payable 6 Long-term employee benefit liabilities 62 Other long-term liabilities 3 Deferred tax liabilities 5 Liabilities held for sale $ 408 |
Summary of Gain on the Sale Within Other Expense (Income) | During 2019, the Company recognized a gain on the sale within other expense, net as follows: Proceeds on disposal, net of transaction costs $ 1,180 Net assets disposed 656 Gain included in other expense, net [note 4] 524 Income taxes 77 Gain on divestiture, net of ta x $ 447 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net consists of : 2019 2018 Impairment of assets [a] $ 727 $ 74 Restructuring [b] 31 45 Net losses (gains) on investments [c] 6 (56 ) Gain on sale of business [note 3] (524 ) — Other expense, net $ 240 $ 63 [a] Impairment of assets During 2019, the Company concluded that indicators of impairment were present within the Power & Vision segment related to its equity-accounted investments in Getrag (Jiangxi) Transmission Co., Ltd. and Dongfeng Getrag Transmission Co. Ltd. in China, which make both manual transmissions and dual-clutch transmissions [“DCTs”], and its equity-accounted investment Getrag Ford Transmission GmbH [“GFT”] in in-sourcing non-controlling non-cash o For year ended December 31, 2019, the Company also recorded asset impairment charges of $27 million [$20 million after tax] in its Electronics operations which are included in the Company’s Power & Vision segment. D For th e yea r million [$12 million after tax] related to a certain Body Exteriors & Structures facility. [b] Restructuring During 2019, the Company recorded net restructuring charges of $31 million [$31 million after tax] for its Body Exteriors & Structures operations . During 2018, the Company recorded net restructuring charges of $20 million, and $25 million [$20 million and $23 million after tax], respectively, for its Power & Vision and Body Exteriors & Structures operations. [c] Net losses (gains) on investments During 2019, the Company recorded net losses of $6 million [$5 million after tax]. This includes net Also, during 2019, the Company sold 5.4 million shares of its publicly traded equity securities in Lyft for proceeds of $231 million. During 2018, the Company recorded an unrealized gain of $56 million [$53 million after tax] on the revaluation of its private equity investments of which $46 million [$46 million after tax] related to its investment in Lyft. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Earnings per share are computed as follows: 2019 2018 Basic earnings per Common Share: Net income attributable to Magna International Inc. $ 1,765 $ 2,296 Weighted average number of Common Shares outstanding during the year 314.7 345.4 Basic earnings per Common Share $ 5.61 $ 6.65 Diluted earnings per Common Share [a]: Net income attributable to Magna International Inc. $ 1,765 $ 2,296 Weighted average number of Common Shares outstanding during the year 314.7 345.4 Adjustments : Stock options and restricted stock 1.1 2.1 315.8 347.5 Diluted earnings per Common Share $ 5.59 $ 6.61 [a] Diluted earnings per Common Share exclude 4.0 million [2018 – 0.8 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. The dilutive effect of participating securities using the two-class method was excluded from the calculation of earnings per share because the effect would be immaterial. |
Details of Cash From Operatin_2
Details of Cash From Operating Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Components of Cash, Cash Equivalents and Restricted Cash Equivalents | [a] Cash, cash equivalents and restricted cash equivalents consist of: 2019 2018 Bank term deposits and bankers’ acceptances $ 724 $ 314 Cash 552 370 Cash and cash equivalents $ 1,276 $ 684 Restricted cash equivalents included in prepaid expenses [note 1 7 116 118 $ 1,392 $ 802 |
Details of Items Not Involving Current Cash Flows | [b] Items not involving current cash flows: 2019 2018 Depreciation and amortization $ 1,345 $ 1,278 Amortization of other assets included in cost of goods sold 257 172 Impairment charges [note 4] 727 74 Other non-cash 89 7 Deferred income taxes [note 1 2 7 31 Dividends received in excess of equity income 69 33 Non-cash [note 4] (518 ) (56 ) $ 1,976 $ 1,539 |
Changes in Operating Assets and Liabilities | [c] Changes in operating assets and liabilities: 2019 2018 Accounts receivable $ 629 $ (351 ) Inventories 104 (92 ) Prepaid expenses and other (21 ) 9 Accounts payable (519 ) 265 Accrued salaries and wages (34 ) (3 ) Other accrued liabilities 97 105 Income taxes payable 96 (86 ) $ 352 $ (153 ) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Amounts Recognized for Assets and Liabilities Acquired | The following table summarizes the net amounts recognized for assets acquired and liabilities assumed for these and other small acquisitions at their estimated fair values: Adjustments to 2019 Allocation at Cash $ — $ 13 $ 13 Non-cash 2 10 12 Fixed assets — 113 113 Goodwill (10 ) 22 12 Other assets — 1 1 Intangibles — 12 12 Deferred tax assets — 2 2 Long-term debt — (8 ) (8 ) Other long-term liabilities — (1 ) (1 ) Deferred tax liabilities 8 (4 ) 4 Consideration paid — 160 160 Less: Cash acquired — (13 ) (13 ) Net cash outflow $ — $ 147 $ 147 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of: 2019 2018 Raw materials and supplies $ 1,201 $ 1,282 Work-in-process 339 331 Finished goods 425 408 Tooling and engineering 1,339 1,382 $ 3,304 $ 3,403 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Investments | 2019 2018 Equity method investments [a] $ 1,107 $ 1,862 Private equity investments 95 323 Other 8 4 $ 1,210 $ 2,189 |
Summary of Total financial Results of Equity Method Investees | A summary of the total financial results, as reported by the Company’s equity method investees, in the aggregate, at December 31 was as follows: Summarized Balance Sheets 2019 2018 Current assets $ 1,680 $ 1,914 Non-current $ 3,573 $ 3,870 Current liabilities $ 1,266 $ 1,500 Long-term liabilities $ 994 $ 1,131 Summarized Income Statements 2019 2018 Sales $ 4,142 $ 5,133 Cost of goods sold & expenses 3,949 4,765 Net income $ 193 $ 368 |
Equity Method Investments [Member] | |
Ownership Percentages and Carrying Value Principal Equity Method Investments | [a] The ownership percentages and carrying value s 2019 2018 Litens Automotive Partnership [i] 76.7 % $ 212 $ 188 Getrag (Jiangxi) Transmission Co., Ltd [i] 66.7 % $ 540 $ 1,107 Getrag Ford Transmission GmbH 50.0 % $ 100 $ 268 Dongfeng Getrag Transmission Co. Ltd [“DGT”] [ii] 50.0 % $ 47 $ 72 Hubei HAPM MAGNA Seating Systems Co., Ltd. 49.9 % $ 113 $ 117 [i] The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. [ii] DGT is a variable interest entity [“VIE”] and depends on the Company and the Dongfeng Motor Group Company for any additional cash needs. The Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of our investment balance as at December 31, 2019. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Fixed Assets | Fixed assets consist of: 2019 2018 Cost Land $ 219 $ 229 Buildings 2,413 2,205 Machinery and equipment 15,368 14,396 18,000 16,830 Accumulated depreciation Buildings (945 ) (810 ) Machinery and equipment (8,795 ) (7,925 ) $ 8,260 $ 8,095 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following is a continuity of the Company’s goodwill by segment: Body Exteriors Power Seating Complete Total Balance, December 31, 2017 $ 463 $ 1,365 $ 153 $ 118 $ 2,099 Acquisitions 16 109 — — 125 Assets held for sale — (157 ) — — (157 ) Foreign exchange and other (20 ) (57 ) (6 ) (5 ) (88 ) Balance, December 31, 2018 459 1,260 147 113 1,979 Acquisitions [note 7] — (9 ) 21 — 12 Foreign exchange and other (1 ) (13 ) 1 (2 ) (15 ) Balance, December 31, 2019 $ 458 $ 1,238 $ 169 $ 111 $ 1,976 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Rate | [a] The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following: 2019 2018 Canadian statutory income tax rate 26.5 % 26.5 % Impairment of investments [note 4] 8.2 0.6 Tax on repatriation of foreign earnings 1.9 2.7 Net effect of losses not benefited 0.8 0.4 Foreign rate differentials (3.3 ) (2.9 ) Non-taxable (2.5 ) (0.4 ) Research and development tax credits (2.4 ) (1.7 ) Earnings of equity accounted investees (1.3 ) (1.6 ) Reserve for uncertain tax positions (0.5 ) (1.5 ) Manufacturing and processing profits deduction (0.4 ) (0.3 ) Valuation allowance on deferred tax assets [ii] — (1.8 ) US tax reform [iii] — 0.4 Others (0.4 ) 0.6 Effective income tax rate 26.6 % 21.0 % [i] During the year ended December 31, 2019, the Company had non-taxable [note 3] [ii] GAAP requires that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more-likely-than-not” pre-tax During the year ended December 31, 2018, the Company released certain of its valuation allowance against deferred tax assets on its Canadian capital losses as a result of the anticipated capital gain from the sale of the FP&C business [note 3] [iii] On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act [the “US Tax Reform”]. At December 31, 2017, in accordance with guidance provided by Securities and Exchange Commission Staff Accounting Bulletin No. 118 [”SAB 118”], the Company made a reasonable estimate of its effects and recognized a provisional $23 million net reduction in income tax expense. In the fourth quarter of 2018, the Company completed its analysis of the tax impact and recorded a net increase of $11 million in income tax expense. |
Details of Income before Income Taxes by Jurisdiction | [b] The details of income before income taxes by jurisdiction are as follows: 2019 2018 Canadian $ 583 $ 631 Foreign 1,640 2,320 $ 2,223 $ 2,951 |
Details of Income Tax Provision | [c] The details of the income tax provision are as follows: 2019 2018 Current Canadian $ 117 $ 125 Foreign 467 466 584 591 Deferred Canadian 3 24 Foreign 4 4 7 28 $ 591 $ 619 |
Summary of Deferred Income Taxes Provided on Temporary Differences | [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2019 2018 Tax depreciation in excess of book depreciation $ 7 $ 32 Book amortization (in excess of) less than tax amortization 43 (1 ) Liabilities currently not deductible for tax (43 ) — Net tax losses benefited 29 (9 ) Change in valuation allowance on deferred tax assets 1 (52 ) Tax on undistributed foreign earnings 1 34 US tax reform — 16 Others (31 ) 8 $ 7 $ 28 |
Summary of Deferred Tax Assets and Liabilities | [e] Deferred tax assets and liabilities consist of the following temporary differences: 2019 2018 Assets Tax benefit of loss carryforwards $ 622 $ 660 Operating lease liabilities 452 — Liabilities currently not deductible for tax 234 150 Tax credit carryforwards 70 57 Unrealized loss on foreign exchange hedges and retirement liabilities 69 106 Others 41 12 1,488 985 Valuation allowance against tax benefit of loss carryforwards (515 ) (506 ) Other valuation allowance (170 ) (152 ) $ 803 $ 327 Liabilities Operating lease right-of-use assets 447 — Tax depreciation in excess of book depreciation 242 220 Tax on undistributed foreign earnings 137 141 Other assets book value in excess of tax values 66 50 Unrealized gain on foreign exchange hedges and retirement liabilities 18 8 Unrealized gain on remeasurement of investments 4 9 914 428 Net deferred tax liabilities $ (111 ) $ (101 ) |
Net Deferred Tax Liabilities Presented on Consolidated Balance Sheet | The net deferred tax liabilities are presented on the consolidated balance sheet in the following categories: 2019 2018 Long-term deferred tax assets $ 308 $ 300 Long-term deferred tax liabilities (419 ) (401 ) $ (111 ) $ (101 ) |
Summary of Changes in Gross Unrecognized Tax Benefits | [i] As at December 31, 2019 and 2018, the Company’s gross unrecognized tax benefits were $192 million million 2019 2018 Balance, beginning of year $ 198 $ 243 Increase based on tax positions related to current year 21 20 Decrease based on tax positions of prior years (2 ) (3 ) Increase related to acquisitions 3 8 Settlements (4 ) (13 ) Statute expirations (21 ) (50 ) Foreign currency translation (3 ) (7 ) $ 192 $ 198 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets were as follows: Estimated weighted 2019 2018 Cost Customer relationship intangibles [note 7] 9 $ 429 $ 415 Computer software 1 396 291 Patent and licenses 11 264 340 1,089 1,046 Accumulated depreciation Customer relationship intangibles [note 7] (216 ) (191 ) Computer software (310 ) (219 ) Patent and licenses (79 ) (76 ) $ 484 $ 560 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | Other assets consist of: 2019 2018 Preproduction costs related to long-term supply agreements $ 683 $ 741 Long-term receivables 217 198 Pension overfunded status [note 19[a]] 22 18 Unrealized gain on cash flow hedges [note 23] 24 9 Other, net 50 22 $ 996 $ 988 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Company's Warranty Accruals | The following is a continuity of the Company’s warranty accruals: 2019 2018 Balance, beginning of year $ 208 $ 255 Expense, net 142 98 Settlements (105 ) (111 ) Foreign exchange and other 7 (7 ) Acquisitions — 2 Liabilities held for sale [note 3] — (29 ) $ 252 $ 208 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | [a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following: 2019 2018 Senior Notes [note 1 7 $750 million Senior Notes due 2024 at 3.625% $ 747 $ 746 $650 million Senior Notes due 2025 at 4.150% 645 644 €550 million Senior Notes due 2023 at 1.900% 615 627 €600 million Senior Notes due 2027 at 1.500% 670 683 Cdn$425 million Senior Notes due 2022 at 3.100% 327 311 Bank term debt at a weighted average interest rate of approximately 4.97% [2018 – 4.89%], denominated primarily in Chinese renminbi, Brazilian real, euro and Indian rupee 105 153 Government loans at a weighted average interest rate of approximately 1.63% [2018 – 2.18%], denominated primarily in euro, Canadian dollar and Brazilian real 48 109 Other 11 12 3,168 3,285 Less due within one year 106 201 $ 3,062 $ 3,084 |
Schedule of Future Principal Repayments on Long-Term Debt | [b] Future principal repayments on long-term debt are estimated to be as follows: 2020 $ 106 2021 33 2022 338 2023 619 2024 751 Thereafter 1,321 $ 3,168 |
Interest Expense, Net | [e] Interest expense, net includes: 2019 2018 Interest expense Current $ 17 $ 24 Long-term 87 89 104 113 Interest income (22 ) (20 ) Interest expense, net $ 82 $ 93 |
Leases (Table)
Leases (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Costs Associated with Operating Lease Expenses | Costs associated with the Company’s operating lease expense were as follows: 2019 Operating lease expense $ 316 Short-term lease expense 25 Variable lease expense 27 Total lease expense $ 368 |
Schedule of Supplemental Information Related To Operating Leases | Supplemental information related to the Company’s operating leases was as follows: 2019 Operating cash flows – cash paid relating to operating leases $ 344 Right-of-use 104 Weighted-average remaining lease term – operating leases, in years 11 years Weighted-average discount rate – operating leases 4.8 % |
Schedule of Commitments under Operating Leases Requiring Annual Payments | At December 31, 2019, the Company had commitments under operating leases requiring annual payments as follows: Total 2020 $ 297 2021 270 2022 247 2023 221 2024 194 2025 and thereafter 1,126 2,355 Less: amount representing interest 529 Total lease liabilities $ 1,826 Current operating liabilities $ 225 Non-current 1,601 Total lease liabilities $ 1,826 |
Schedule of Future Minimum Lease Commitments | The Company’s future minimum lease commitments, as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, were as follows: Total 2019 $ 310 2020 283 2021 254 2022 230 2023 199 Thereafter 714 $ 1,990 |
Long-Term Employee Benefit Li_2
Long-Term Employee Benefit Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Employee Benefit Liabilities | Long-term employee benefit liabilities consist of: 2019 2018 Defined benefit pension plans and other [a] $ 203 $ 184 Termination and long service arrangements [b] 437 381 Retirement medical benefits plans [c] 27 27 Other long-term employee benefits 10 5 Long-term employee benefit obligations $ 677 $ 597 |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s defined benefit pension plans is as follows: 2019 2018 Projected benefit obligation Beginning of year $ 633 $ 687 Current service cost 11 14 Interest cost 20 18 Actuarial losses (gains) and changes in actuarial assumptions 79 (33 ) Benefits paid (21 ) (24 ) Divestiture (68 ) — Foreign exchange 5 (29 ) End of year 659 633 Plan assets at fair value [i] Beginning of year 406 443 Return on plan assets 78 (11 ) Employer contributions 11 12 Benefits paid (17 ) (19 ) Divestiture (10 ) — Foreign exchange 10 (19 ) End of year 478 406 Ending funded status $ 181 $ 227 Amounts recorded in the consolidated balance sheet Non-current [note 1 4 $ (23 ) $ (18 ) Current liability 1 1 Liabilities held for sale [note 3] — 60 Non-current 203 184 Net amount $ 181 $ 227 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (141 ) $ (134 ) Net periodic benefit cost Current service cost $ 11 $ 14 Interest cost 20 18 Return on plan assets (19 ) (25 ) Actuarial losses 4 4 Net periodic benefit cost $ 16 $ 11 [i] The asset allocation of the Company’s defined benefit pension plans at December 31, 2019 and the target allocation for 2020 is as follows: 2020 2019 Fixed income securities 55-75 % 59 % Equity securities 25-45 % 37 % Cash and cash equivalents 0-10 % 4 % 100 % 100 % |
Future Benefit Payments | [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2020 $ 11 $ 9 $ 2 $ 22 Expected benefit payments: 2020 $ 22 $ 10 $ 1 $ 33 2021 22 11 2 35 2022 23 11 2 35 2023 23 14 2 39 2024 24 18 2 43 Thereafter 131 119 8 250 $ 245 $ 183 $ 17 $ 435 |
Termination and Long Service Arrangements [Member] | |
Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost | The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows: 2019 2018 Discount rate 2.1 % 2.8 % Rate of compensation increase 3.1 % 2.9 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s termination and long service arrangements is as follows: 2019 2018 Projected benefit obligation Beginning of year $ 394 $ 378 Current service cost 29 22 Interest cost 10 8 Actuarial losses and changes in actuarial assumptions 39 14 Benefits paid (19 ) (14 ) (Divestiture) acquisition (3 ) 2 Foreign exchange (4 ) (16 ) Ending funded status $ 446 $ 394 Amounts recorded in the consolidated balance sheet Current liability $ 9 $ 9 Liabilities held for sale [note 3] — 4 Non-current 437 381 Net amount $ 446 $ 394 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (124 ) $ (88 ) Net periodic benefit cost Current service cost $ 29 $ 22 Interest cost 10 8 Actuarial losses (gains) 4 (1 ) Net periodic benefit cost $ 43 $ 29 |
Retirement Medical Benefits Plans [Member] | |
Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost | The weighted average discount rates used in measuring the Company’s projected retirement medical benefit obligations and net periodic benefit cost are as follows: 2019 2018 Retirement medical benefit obligations 3.1 % 4.0 % Net periodic benefit cost 4.0 % 3.4 % Health care cost inflation 6.8 % 6.8 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s retirement medical benefits plans are as follows: 2019 2018 Projected benefit obligation Beginning of year $ 29 $ 33 Interest cost 1 1 Actuarial gains and changes in actuarial assumptions — (3 ) Benefits paid (1 ) (1 ) Foreign exchange — (1 ) Ending funded status $ 29 $ 29 Amounts recorded in the consolidated balance sheet Current liability $ 2 $ 2 Non-current 27 27 Net amount $ 29 $ 29 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial gains 11 12 Total accumulated other comprehensive income $ 11 $ 12 Net periodic benefit cost Interest cost $ 1 $ 1 Actuarial gains (1 ) (1 ) Net periodic benefit cos t $ — $ — |
Pension Plan, Defined Benefit [Member] | |
Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost | The weighted average significant actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows: 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % Rate of compensation increase 2.6 % 2.5 % Net periodic benefit cost Discount rate 3.2 % 2.8 % Rate of compensation increase 2.6 % 2.5 % Expected return on plan assets 4.9 % 5.8 % |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Particulars of Other Long-Term Liabilities | Other long-term liabilities consist of: 2019 2018 Long-term portion of fair value of hedges [note 23] $ 8 $ 40 Long-term portion of income taxes payable 234 205 Asset retirement obligation 34 33 Deferred revenue 74 106 Long-term lease inducements [note 18] — 16 Other 21 — $ 371 $ 400 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Normal Course Issuer Bids | The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: Maximum 2019 2018 number Shares purchased Cash amount Shares Cash 2017 Bid 35,800,000 — — 26,630,243 $ 1,544 2018 Bid 33,200,000 23,401,457 1,159 6,014,041 287 2019 Bid 30,283,500 2,367,106 130 — — 25,768,563 $ 1,289 32,644,284 $ 1,831 |
Maximum Number of Shares Outstanding Exercised or Converted | [c] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 5, 2020 were exercised or converted: Common Shares 301,768,927 Stock options (i) 9,745,110 311,514,037 (i) Options to purchase Common Shares are exercisable by the holder in accordance with the vesting provisions and upon payment of the exercise price as may be determined from time to time pursuant to the Company’s stock option plans. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following is a continuity schedule of accumulated other comprehensive loss: 2019 2018 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (917 ) $ (456 ) Net unrealized loss (18 ) (490 ) Repurchase of shares under normal course issuer bids [note 21] 28 29 Balance, end of year (907 ) (917 ) Accumulated net unrealized gain (loss) on cash flow hedges [b] Balance, beginning of year (68 ) 39 Net unrealized gain (loss) 102 (106 ) Reclassification of net loss (gain) to net income [a] 4 (1 ) Balance, end of year 38 (68 ) Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (190 ) (183 ) Net unrealized loss (47 ) (13 ) Reclassification of net loss to net income [a] 8 6 Sale of business 8 — Balance, end of year (221 ) (190 ) Total accumulated other comprehensive loss [ c $ (1,090 ) $ (1,175 ) |
Schedule of Net Income Amounts Reclassified from AOCL | [a] The effects on net income of amounts reclassified from AOCL, with presentation location, were as follows: 2019 2018 Cash flow hedges Sales $ (38 ) $ (6 ) Cost of sales 33 7 Income tax 1 — Net of tax (4 ) 1 Other long-term liabilities Cost of sales (9 ) (7 ) Income tax 1 1 Net of tax (8 ) (6 ) Total loss reclassified to net income $ (12 ) $ (5 ) |
Summary of Income Tax Benefit (Expense) to Component of Other Comprehensive Loss | [b] The amount of income tax benefit that has been allocated to each component of other comprehensive loss is as follows: 2019 2018 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, end of year $ 7 $ 7 Accumulated net unrealized (gain) loss on cash flow hedges Balance, beginning of year 23 (12 ) Net unrealized (gain) loss (36 ) 35 Reclassification of net loss to net income (1 ) — Balance, end of year (14 ) 23 Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 21 17 Net unrealized loss 15 5 Reclassification of net loss to net income (1 ) (1 ) Balance, end of year 35 21 Total income tax benefit $ 28 $ 51 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies | At December 31, 2019, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows: For Canadian dollars For U.S. dollars Buy (Sell) U.S. Weighted Peso Weighted 2020 173 1.31238 6,271 0.04824 2020 (759 ) 0.76562 (25 ) 20.37835 2021 19 1.31855 2,749 0.04624 2021 (479 ) 0.76856 — — 2022 6 1.32105 1,074 0.04675 2022 (263 ) 0.76649 — — 2023 (52 ) 0.76140 — — 2024 (14 ) 0.75235 — — (1,369 ) 10,069 For euros Buy (Sell) U.S Weighted Czech Weighted 2020 196 0.85601 4,582 0.03834 2020 (117 ) 1.15358 — — 2021 89 0.82944 2,576 0.03757 2021 (34 ) 1.21681 — — 2022 48 0.81676 468 0.03762 2022 (4 ) 1.21233 — — 2023 23 0.81607 — — 2023 (2 ) 1.19193 — — 2024 7 0.83511 — — 206 7,626 |
Schedule of Company's Financial Assets and Liabilities | The Company’s financial assets and liabilities consist of the following: 2019 2018 Financial assets Cash and cash equivalents $ 1,276 $ 684 Restricted cash equivalents 116 118 Accounts receivable 5,927 6,548 Publicly traded and private equity investments 99 323 Severance investments 1 3 Long-term receivables included in other assets [note 1 4 217 198 Financial assets held for sale [note 3] Accounts receivable held for sale — 258 Severance investments held for sale — 1 $ 7,636 $ 8,133 Financial liabilities Bank indebtedness [note 1 7 $ — $ 35 Commercial paper [note 1 7 — 1,063 Long-term debt (including portion due within one year) 3,168 3,285 Accounts payable 5,628 6,094 Financial liabilities held for sale [note 3] Accounts payable held for sale — 226 $ 8,796 $ 10,703 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses and other $ 46 $ 25 Other assets 24 9 Other accrued liabilities (10 ) (61 ) Other long-term liabilities (8 ) (40 ) $ 52 $ (67 ) |
Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements | The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the consolidated balance sheets and the unrecognized impacts of master netting arrangements: Gross Gross amounts amounts presented not offset in consolidated in consolidated Net balance sheets balance sheets amounts December 31, 2019 Assets $ 70 $ 15 $ 55 Liabilities $ (18 ) $ (15 ) $ (3 ) December 31, 2018 Assets $ 34 $ 33 $ 1 Liabilities $ (101 ) $ (33 ) $ (68 ) |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information for Reporting Segments | [a] The following tables show segment information for the Company’s reporting segments and a reconciliation of Adjusted EBIT to the Company’s consolidated income before income taxes: 2019 Depreciation Equity Total External Adjusted and ( income sales sales EBIT amortization loss Body Exteriors & Structures $ 16,458 $ 16,110 $ 1,299 $ 710 $ (3 ) Power & Vision 11,312 11,103 747 464 (174 ) Seating Systems 5,577 5,548 312 66 (4 ) Complete Vehicles 6,707 6,661 144 84 (1 ) Corporate & Other [i] (623 ) 9 43 21 4 Total Reportable Segments $ 39,431 $ 39,431 $ 2,545 $ 1,345 $ (178 ) 2018 Depreciation Total External Adjusted and Equity sales sales EBIT amortization income Body Exteriors & Structures $ 17,527 $ 17,220 $ 1,413 $ 701 $ (12 ) Power & Vision 12,321 12,086 1,171 435 (261 ) Seating Systems 5,548 5,546 426 57 (3 ) Complete Vehicles 6,018 5,968 68 65 — Corporate & Other [i] (587 ) 7 29 20 (1 ) Total Reportable Segments $ 40,827 $ 40,827 $ 3,107 $ 1,278 $ (277 ) 2019 Fixed Fixed Net asset, asset assets Investments Goodwill net additions Body Exteriors & Structure $ 7,906 $ 31 $ 458 $ 4,827 $ 713 Power & Vision 5,626 899 1,238 2,299 577 Seating Systems 1,219 134 169 412 76 Complete Vehicles 735 2 111 593 69 Corporate & Other [i] 468 144 — 129 6 Total Reportable Segments $ 15,954 $ 1,210 $ 1,976 $ 8,260 $ 1,441 2018 Fixed Fixed Net asset, asset assets Investments Goodwill net additions Body Exteriors & Structure $ 7,142 $ 34 $ 459 $ 4,825 $ 730 Power & Vision [ii] 6,703 1,680 1,260 2,151 655 Seating Systems 815 135 147 330 78 Complete Vehicles 605 2 113 622 170 Corporate & Other [i] 563 338 — 167 17 Total Reportable Segments $ 15,828 $ 2,189 $ 1,979 $ 8,095 $ 1,650 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. [ii] Includes $541 million of net assets held for sale. |
Schedule of Reconciliation for Adjusted EBIT to Consolidated Income Before Income Taxes | [b] The following table reconciles Net income from operations to Adjusted EBIT: 2019 2018 Net Income $ 1,632 $ 2,332 Add: Interest expense, net 82 93 Other expense, net 240 63 Income taxes 591 619 Adjusted EBIT $ 2,545 $ 3,107 |
Summary of Net Assets for Company's Reporting Segments | [c] The following table shows Net Assets for the Company’s reporting segments: 2019 2018 Total Assets $ 25,790 $ 25,945 Deduct assets not included in segment net assets: Cash and cash equivalents (1,276 ) (684 ) Deferred tax assets (308 ) (300 ) Long-term receivables from joint venture partners (71 ) (71 ) Income taxes receivable — (57 ) Deduct liabilities included in segment net assets: Accounts Payable (5,628 ) (6,094 ) Accrued salaries and wages (753 ) (769 ) Other accrued liabilities (1,800 ) (1,734 ) Liabilities held for sale — (408 ) Segment Net Assets $ 15,954 $ 15,828 |
Schedule of Aggregates External Revenues by Customer | [d] The following table aggregates external revenues by customer as follows: 2019 2018 General Motors $ 5,732 $ 6,303 BMW 5,469 4,826 Ford Motor Company 5,270 5,721 Fiat Chrysler Automobiles 5,173 5,693 Daimler AG 4,887 4,687 Volkswagen 4,001 4,128 Other 8,899 9,469 $ 39,431 $ 40,827 |
Schedule of External Revenues and Long-Lived Assets by Geographic Region | [e] The following table summarizes external revenues and long-lived assets by geographic region: External Sales Fixed Assets, Net 2019 2018 2019 2018 North America United States $ 9,702 $ 10,043 $ 1,661 $ 1,359 Canada 5,353 5,886 993 1,001 Mexico 4,294 4,618 1,287 1,275 19,349 20,547 3,941 3,635 Europe Austria 8,279 7,750 872 938 Germany 4,878 4,893 1,090 1,271 Czech Republic 899 764 276 257 Poland 689 694 201 200 Italy 527 850 244 288 United Kingdom 422 517 209 191 Russia 434 424 134 138 Spain 431 382 79 47 Turkey 293 291 10 8 France 201 219 55 46 Slovakia 139 127 223 71 Other Europe 139 144 215 221 17,331 17,055 3,608 3,676 Asia Pacific China 1,947 2,152 528 588 India 144 180 98 106 Korea 44 158 1 21 Other Asia Pacific 29 50 4 3 2,164 2,540 631 718 Rest of World 587 685 80 66 $ 39,431 $ 40,827 $ 8,260 $ 8,095 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | ||
Changes in assumptions and experience gains and losses | greater than 10% | |
Period of benefit obligation in current liabilities | next twelve months | |
Sales | $ 39,431 | $ 40,827 |
Unbilled accounts receivable | 318 | 293 |
Deferred revenue | 199 | 176 |
Deferred revenue recognized | 91 | 0 |
Research and development costs | 640 | 588 |
Tooling And Engineering [Member] | ||
Significant Accounting Policies [Line Items] | ||
Sales | 749.1 | 824.6 |
Accounts receivable | $ 4,500 | $ 4,300 |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of finite-lived intangible assets | 4 years | |
Contract with customer agreement termination period | 5 years | |
Payment term Duration | 30 days | |
Minimum [Member] | Building [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 2.50% | |
Minimum [Member] | General Purpose Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 7.00% | |
Minimum [Member] | Special Purpose Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 10.00% | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of finite-lived intangible assets | 15 years | |
Contract with customer agreement termination period | 7 years | |
Payment term Duration | 90 days | |
Maximum [Member] | Building [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 5.00% | |
Maximum [Member] | General Purpose Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 10.00% | |
Maximum [Member] | Special Purpose Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Annual rates of depreciation on fixed assets | 33.00% |
Accounting Standards - Addition
Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 |
Operating lease liabilitites | $ 1,826 | |
Operating lease right of use assets | $ 1,811 | |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative impact adjustments to retained earnings | $ 25 | |
Operating lease liabilitites | 1,800 | |
Operating lease right of use assets | $ 1,800 |
Sale of Business - Additional I
Sale of Business - Additional Information (Detail) $ in Millions | Mar. 29, 2019USD ($) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds on the sale of business | $ 1,230 |
Sale of Business - Summary of C
Sale of Business - Summary of Carrying Value of Major Classes of Assets and Liabilities Classified as Held for Sale (Detail) - Fluid Pressure & Controls Business [Member] - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Millions | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Accounts receivable | $ 258 |
Inventories | 140 |
Prepaid expenses and other | 4 |
Investments | 4 |
Fixed assets, net | 320 |
Goodwill | 157 |
Deferred tax assets | 17 |
Other assets | 11 |
Intangibles | 38 |
Assets held for sale | 949 |
Accounts payable | 226 |
Accrued salaries and wages | 30 |
Other accrued liabilities | 76 |
Income taxes payable | 6 |
Long-term employee benefit liabilities | 62 |
Other long-term liabilities | 3 |
Deferred tax liabilities | 5 |
Liabilities held for sale | $ 408 |
Sale of Business - Summary of G
Sale of Business - Summary of Gain on the Sale Within Other Expense (Income) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |
Proceeds on disposal, net of transaction costs | $ 1,180 |
Net assets disposed | 656 |
Gain included in other expense, net | 524 |
Income taxes | 77 |
Gain on divestiture, net of tax | $ 447 |
Other Expense, Net - Other Expe
Other Expense, Net - Other Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Expense, Nonoperating [Abstract] | ||
Impairment of assets | $ 727 | $ 74 |
Restructuring | 31 | 45 |
Net losses (gains) on investments | 6 | (56) |
Gain on sale of business | (524) | |
Other expense, net | $ 240 | $ 63 |
Other Expense, Net - Other Ex_2
Other Expense, Net - Other Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Other Expense (Income), Net [Line Items] | ||
Restructuring | $ 31 | $ 45 |
Impairment of assets | 727 | 74 |
Loss on investments | 6 | (56) |
Loss on investments, after tax | 5 | |
Proceeds from sale of investments | (231) | 220 |
Private Equity Investments [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Unrealized gain on investment revaluation | 17 | 56 |
Unrealized gain on investment revaluation, after tax | 15 | 53 |
Lyft [Member] | Private Equity Investments [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Unrealized gain on investment revaluation | 46 | |
Unrealized gain on investment revaluation, after tax | 46 | |
Loss on investments | 23 | |
Loss on investments, after tax | $ 20 | |
Number of shares sold of (investment in) Lyft, Inc. | 5,400,000 | |
Proceeds from sale of investments | $ 231 | |
Power & Vision [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Restructuring | 20 | |
Restructuring charges, after tax | 20 | |
Impairment of investment | 60 | |
Impairment of investment, after tax | 59 | |
Power & Vision [Member] | Getrag Jiangxi Transmission, Dongfeng Getrag Transmission And Getrag Ford Transmission [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Other than temporary impairment on equity method investments | 700 | |
Tax component of impairment losses of equity method investments | 36 | |
Impairment losses on equity method investments after tax | 537 | |
Non cash impairment losses on equity method investments | 127 | |
Power & Vision [Member] | Electronic Operations [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Impairment of assets | 27 | |
Asset impairment charges after tax | 20 | |
Body Exteriors & Structures [Member] | ||
Components of Other Expense (Income), Net [Line Items] | ||
Restructuring | 31 | 25 |
Restructuring charges, after tax | $ 31 | 23 |
Impairment of assets | 14 | |
Asset impairment charges after tax | $ 12 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per Common Share: | ||
Net income attributable to Magna International Inc. | $ 1,765 | $ 2,296 |
Weighted average number of Common Shares outstanding during the year | 314.7 | 345.4 |
Basic earnings per Common Share | $ 5.61 | $ 6.65 |
Diluted earnings per Common Share: | ||
Net income attributable to Magna International Inc. | $ 1,765 | $ 2,296 |
Weighted average number of Common Shares outstanding during the year | 314.7 | 345.4 |
Stock options and restricted stock | 1.1 | 2.1 |
Diluted | 315.8 | 347.5 |
Diluted earnings per Common Share | $ 5.59 | $ 6.61 |
Earnings Per Share - Computat_2
Earnings Per Share - Computation of Earnings Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Excluded Common Shares issuable under Company's Incentive Stock Option Plan | 4 | 0.8 |
Details of Cash From Operatin_3
Details of Cash From Operating Activities - Components of Cash, Cash Equivalents and Restricted Cash Equivalents (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | |||
Bank term deposits and bankers' acceptances | $ 724 | $ 314 | |
Cash | 552 | 370 | |
Cash and cash equivalents | 1,276 | 684 | |
Restricted cash equivalents included in prepaid expenses | 116 | 118 | |
Cash, cash equivalents and restricted cash equivalents | $ 1,392 | $ 802 | $ 839 |
Details of Cash From Operatin_4
Details of Cash From Operating Activities - Details of Items Not Involving Current Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Depreciation and amortization | $ 1,345 | $ 1,278 |
Amortization of other assets included in cost of goods sold | 257 | 172 |
Impairment charges | 727 | 74 |
Other non-cash charges | 89 | 7 |
Deferred income taxes | 7 | 31 |
Dividends received in excess of equity income | 69 | 33 |
Non-cash portion of Other expense, net | (518) | (56) |
Items not involving current cash flows | $ 1,976 | $ 1,539 |
Details of Cash From Operatin_5
Details of Cash From Operating Activities - Changes in Operating Assets and Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Accounts receivable | $ 629 | $ (351) |
Inventories | 104 | (92) |
Prepaid expenses and other | (21) | 9 |
Accounts payable | (519) | 265 |
Accrued salaries and wages | (34) | (3) |
Other accrued liabilities | 97 | 105 |
Income taxes payable | 96 | (86) |
Changes in operating assets and liabilities | $ 352 | $ (153) |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) $ in Millions | Apr. 29, 2019 | Oct. 31, 2018 | Dec. 31, 2019 |
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 15 years | ||
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 4 years | ||
OLSA [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100.00% | ||
Net cash outflow | $ 152 | ||
Cash acquired in business acquisition | $ 17 | ||
OLSA [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 10 years | ||
OLSA [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives of finite-lived intangible assets | 8 years | ||
VIZA GECA [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100.00% | ||
Net cash outflow | $ 99 | ||
Cash acquired in business acquisition | $ 13 |
Business Acquisition - Summary
Business Acquisition - Summary of Amounts Recognized for Assets and Liabilities Acquired (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,976 | $ 1,979 | $ 2,099 |
Adjustments to 2018 acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Non-cash working capital | 2 | ||
Goodwill | (10) | ||
Deferred tax liabilities | 8 | ||
2019 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 13 | ||
Non-cash working capital | 10 | ||
Fixed assets | 113 | ||
Goodwill | 22 | ||
Other assets | 1 | ||
Intangibles | 12 | ||
Deferred tax assets | 2 | ||
Long-term debt | (8) | ||
Other long-term liabilities | (1) | ||
Deferred tax liabilities | (4) | ||
Consideration paid | 160 | ||
Less: Cash acquired | (13) | ||
Net cash outflow | 147 | ||
Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 13 | ||
Non-cash working capital | 12 | ||
Fixed assets | 113 | ||
Goodwill | 12 | ||
Other assets | 1 | ||
Intangibles | 12 | ||
Deferred tax assets | 2 | ||
Long-term debt | (8) | ||
Other long-term liabilities | (1) | ||
Deferred tax liabilities | 4 | ||
Consideration paid | 160 | ||
Less: Cash acquired | (13) | ||
Net cash outflow | $ 147 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,201 | $ 1,282 |
Work-in-process | 339 | 331 |
Finished goods | 425 | 408 |
Tooling and engineering | 1,339 | 1,382 |
Inventory, net, total | $ 3,304 | $ 3,403 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 1,107 | $ 1,862 |
Private equity investments | 95 | 323 |
Other | 8 | 4 |
Investments | $ 1,210 | $ 2,189 |
Ownership Percentages and Carry
Ownership Percentages and Carrying Value Principal Equity Method Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 1,107 | $ 1,862 |
Litens Automotive Partnership [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 76.70% | |
Carrying value of equity method investments | $ 212 | 188 |
Getrag (Jiangxi) Transmission Co., Ltd [GJT] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 66.70% | |
Carrying value of equity method investments | $ 540 | 1,107 |
Getrag Ford Transmission GmbH ["GFT"] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value of equity method investments | $ 100 | 268 |
Dongfeng Getrag Transmission Co. Ltd ["DGT"] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value of equity method investments | $ 47 | 72 |
Hubei HAPM MAGNA Seating Systems Co., Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 49.90% | |
Carrying value of equity method investments | $ 113 | $ 117 |
Investments - Company's Combine
Investments - Company's Combined Proportionate Share of Major Components of Financial Statements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 1,680 | $ 1,914 |
Non-current assets | 3,573 | 3,870 |
Current liabilities | 1,266 | 1,500 |
Long-term liabilities | 994 | 1,131 |
Sales | 4,142 | 5,133 |
Cost of goods sold & expenses | 3,949 | 4,765 |
Net income | $ 193 | $ 368 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Sales to equity method investees | $ 113 | $ 379 |
Fixed Assets - Components of Fi
Fixed Assets - Components of Fixed Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 18,000 | $ 16,830 |
Property plant and equipment, net | 8,260 | 8,095 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 219 | 229 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 2,413 | 2,205 |
Accumulated depreciation | (945) | (810) |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 15,368 | 14,396 |
Accumulated depreciation | $ (8,795) | $ (7,925) |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Construction in progress expenditures | $ 0.9 | $ 1 |
Goodwill - Goodwill by Segment
Goodwill - Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $ 1,979 | $ 2,099 |
Acquisitions | 12 | 125 |
Assets held for sale | (157) | |
Foreign exchange and other | (15) | (88) |
Goodwill, Ending balance | 1,976 | 1,979 |
Body Exteriors & Structures [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 459 | 463 |
Acquisitions | 16 | |
Foreign exchange and other | (1) | (20) |
Goodwill, Ending balance | 458 | 459 |
Power & Vision [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 1,260 | 1,365 |
Acquisitions | (9) | 109 |
Assets held for sale | (157) | |
Foreign exchange and other | (13) | (57) |
Goodwill, Ending balance | 1,238 | 1,260 |
Seating Systems [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 147 | 153 |
Acquisitions | 21 | |
Foreign exchange and other | 1 | (6) |
Goodwill, Ending balance | 169 | 147 |
Complete Vehicles [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 113 | 118 |
Foreign exchange and other | (2) | (5) |
Goodwill, Ending balance | $ 111 | $ 113 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Impairment of investments | 8.20% | 0.60% |
Tax on repatriation of foreign earnings | 1.90% | 2.70% |
Net effect of losses not benefited | 0.80% | 0.40% |
Foreign rate differentials | (3.30%) | (2.90%) |
Non-taxable capital gains | (2.50%) | (0.40%) |
Research and development tax credits | (2.40%) | (1.70%) |
Earnings of equity accounted investees | (1.30%) | (1.60%) |
Reserve for uncertain tax positions | (0.50%) | (1.50%) |
Manufacturing and processing profits deduction | (0.40%) | (0.30%) |
Valuation allowance on deferred tax assets | (1.80%) | |
US tax reform | 0.40% | |
Others | (0.40%) | 0.60% |
Effective income tax rate | 26.60% | 21.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ (1) | $ 52 | |
Undistributed earnings of certain foreign subsidiaries | 5,730 | ||
Income taxes paid, net | 484 | 665 | |
Income tax loss carryforwards | 2,430 | ||
Tax credit carryforwards | 70 | ||
Total losses | 1,670 | ||
Gross unrecognized tax benefits | 192 | 198 | $ 243 |
Recognized tax benefits | 174 | 183 | |
Interest and penalties on the unrecognized tax benefits | 46 | 39 | |
Recoveries/(expenses) related to changes in reserves for interest and penalties | (7) | $ (6) | |
Decrease in gross unrecognized tax benefits | 32 | ||
Decrease in recognized tax benefits | $ 24 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of losses | 2020 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of losses | 2039 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Rate (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||
Provisional net increase (decrease) recognized in income tax expense | $ 11 | $ (23) |
Income Taxes - Details of Incom
Income Taxes - Details of Income before Income Taxes by Jurisdiction (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 583 | $ 631 |
Foreign | 1,640 | 2,320 |
Income before income taxes, Total | $ 2,223 | $ 2,951 |
Income Taxes - Details of Inc_2
Income Taxes - Details of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 117 | $ 125 |
Foreign | 467 | 466 |
Current income tax, Total | 584 | 591 |
Canadian | 3 | 24 |
Foreign | 4 | 4 |
Deferred income tax, Total | 7 | 28 |
Income tax provision, Total | $ 591 | $ 619 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Taxes Provided on Temporary Differences (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax depreciation in excess of book depreciation | $ 7 | $ 32 |
Book amortization (in excess of) less than tax amortization | 43 | (1) |
Liabilities currently not deductible for tax | (43) | |
Net tax losses benefited | 29 | (9) |
Change in valuation allowance on deferred tax assets | 1 | (52) |
Tax on undistributed foreign earnings | 1 | 34 |
US tax reform | 16 | |
Others | (31) | 8 |
Deferred income tax, Total | $ 7 | $ 28 |
Income Taxes - Summary of Def_2
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of loss carryforwards | $ 622 | $ 660 |
Operating lease liabilities | 452 | |
Liabilities currently not deductible for tax | 234 | 150 |
Tax credit carryforwards | 70 | 57 |
Unrealized loss on foreign exchange hedges and retirement liabilities | 69 | 106 |
Others | 41 | 12 |
Deferred tax assets, Gross, Total | 1,488 | 985 |
Valuation allowance against tax benefit of loss carryforwards | (515) | (506) |
Other valuation allowance | (170) | (152) |
Deferred tax assets, Net, Total | 803 | 327 |
Operating lease right-of-use assets | 447 | |
Tax depreciation in excess of book depreciation | 242 | 220 |
Other assets book value in excess of tax values | 66 | 50 |
Tax on undistributed foreign earnings | 137 | 141 |
Unrealized gain on foreign exchange hedges and retirement liabilities | 18 | 8 |
Unrealized gain on remeasurement of investments | 4 | 9 |
Deferred tax liabilities, Total | 914 | 428 |
Net deferred tax liabilities | $ (111) | $ (101) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liabilities Presented on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Long-term deferred tax assets | $ 308 | $ 300 |
Long-term deferred tax liabilities | (419) | (401) |
Net deferred tax liabilities | $ (111) | $ (101) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 198 | $ 243 |
Increase based on tax positions related to current year | 21 | 20 |
Decrease based on tax positions of prior years | (2) | (3) |
Increase related to acquisitions | 3 | 8 |
Settlements | (4) | (13) |
Statute expirations | (21) | (50) |
Foreign currency translation | (3) | (7) |
Balance, ending of year | $ 192 | $ 198 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, cost | $ 1,089 | $ 1,046 |
Intangible assets, net | $ 484 | 560 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 9 years | |
Intangible Assets, cost | $ 429 | 415 |
Intangible Assets, accumulated depreciation | $ (216) | (191) |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 1 year | |
Intangible Assets, cost | $ 396 | 291 |
Intangible Assets, accumulated depreciation | $ (310) | (219) |
Patent And License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 11 years | |
Intangible Assets, cost | $ 264 | 340 |
Intangible Assets, accumulated depreciation | $ (79) | $ (76) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Definite-lived intangible assets, amortization expense | $ 93 | $ 84 |
Estimates annual amortization expense, 2020 | 85 | |
Estimates annual amortization expense, 2021 | 66 | |
Estimates annual amortization expense, 2022 | 53 | |
Estimates annual amortization expense, 2023 | 47 | |
Estimates annual amortization expense, 2024 | $ 43 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Preproduction costs related to long-term supply agreements | $ 683 | $ 741 |
Long-term receivables | 217 | 198 |
Pension overfunded status | 22 | 18 |
Unrealized gain on cash flow hedges | 24 | 9 |
Other, net | 50 | 22 |
Total other assets | $ 996 | $ 988 |
Employee Equity and Profit Pa_2
Employee Equity and Profit Participation Program - Additional Information (Detail) - Trust for Benefit of Employees [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount borrowed from company to purchase common shares maximum | $ 37,000,000 | $ 34,000,000 |
Indebtedness receivable | $ 37,000,000 | $ 34,000,000 |
Warranty - Schedule of Company'
Warranty - Schedule of Company's Warranty Accruals (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of year | $ 208 | $ 255 |
Expense, net | 142 | 98 |
Settlements | (105) | (111) |
Foreign exchange and other | 7 | (7) |
Acquisitions | 2 | |
Liabilities held for sale | (29) | |
Balance, end of year | $ 252 | $ 208 |
Debt - Additional Information (
Debt - Additional Information (Detail) | May 24, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) |
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity | $ 2,750,000,000 | ||||
Short term borrowings | 0 | $ 1,098,000,000 | |||
Net cash deposit | $ 116,000,000 | 118,000,000 | |||
Revolving credit facility maturity date | Jun. 24, 2024 | ||||
Interest paid in cash | $ 103,000,000 | 115,000,000 | |||
One Point Nine Zero Zero Senior Notes [Member] | |||||
Short-term Debt [Line Items] | |||||
Senior Notes, face amount | € | € 550,000,000 | ||||
Asian Tranche [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit facility fully transferable amount | 200,000,000 | ||||
Mexican Tranche [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit facility fully transferable amount | 100,000,000 | ||||
One Point Five Zero Zero Senior Notes [Member] | |||||
Short-term Debt [Line Items] | |||||
Senior Notes, face amount | € | 600,000,000 | ||||
364 Day Syndicated Revolving Credit Facility [Member] | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity | $ 300,000,000 | ||||
Gross amount outstanding under the credit facility | $ 0 | ||||
Line of credit facility, expiration period | 364 days | ||||
Line of credit facility, maturity date | Jun. 22, 2020 | ||||
Bank Indebtedness [Member] | |||||
Short-term Debt [Line Items] | |||||
Short term borrowings | 35,000,000 | ||||
Gross amount outstanding under the credit facility | $ 110,000,000 | 112,000,000 | |||
Covenant percentage USD cash deposit to outstanding euro balance | 105.00% | ||||
Restricted cash deposits | $ 116,000,000 | 118,000,000 | |||
Bank Indebtedness [Member] | Prepaid Expenses and Other [Member] | |||||
Short-term Debt [Line Items] | |||||
Net cash deposit | 6,000,000 | 6,000,000 | |||
Commercial Paper [Member] | |||||
Short-term Debt [Line Items] | |||||
Short term borrowings | 1,063,000,000 | ||||
U.S. Commercial Paper Notes [Member] | |||||
Short-term Debt [Line Items] | |||||
Maximum borrowing capacity | 1,000,000,000 | ||||
Short term borrowings | $ 0 | $ 903,000,000 | |||
Weighted-average interest rate on notes outstanding | 3.00% | 3.00% | |||
Debt maturity period | maturities less than three months | ||||
Euro-Commercial Paper Notes [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt issuance description | Under the euro-Program, the Company may issue euro-commercial paper notes [the ''euro notes''] up to a maximum aggregate amount of euro 500 million or its equivalent in alternative currencies | ||||
Maximum borrowing capacity | € | € 500,000,000 | ||||
Short term borrowings | $ 160,000,000 | € 140,000,000 | |||
Weighted-average interest rate on notes outstanding | 0.24% | 0.24% | |||
Debt maturity period | maturities less than three months |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 3,168 | $ 3,285 |
Less due within one year | 106 | 201 |
Total long term non current debt | 3,062 | 3,084 |
Three Point Six Two Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 747 | 746 |
Four Point One Five Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 645 | 644 |
One Point Nine Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 615 | 627 |
One Point Five Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 670 | 683 |
Three Point One Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 327 | 311 |
Bank Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 105 | 153 |
Government Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 48 | 109 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 11 | $ 12 |
Debt - Schedule of Company's _2
Debt - Schedule of Company's Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018 | |
Three Point Six Two Five Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 750,000,000 | |||
Senior Notes, due year | 2024 | |||
Interest rate | 3.625% | 3.625% | 3.625% | |
Four Point One Five Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 650,000,000 | |||
Senior Notes, due year | 2025 | |||
Interest rate | 4.15% | 4.15% | 4.15% | |
One Point Nine Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | € | € 550,000,000 | |||
Senior Notes, due year | 2023 | |||
Interest rate | 1.90% | 1.90% | 1.90% | |
One Point Five Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | € | € 600,000,000 | |||
Senior Notes, due year | 2027 | |||
Interest rate | 1.50% | 1.50% | 1.50% | |
Three Point One Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 425,000,000 | |||
Senior Notes, due year | 2022 | |||
Interest rate | 3.10% | 3.10% | 3.10% | |
Bank Term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 4.97% | 4.97% | 4.97% | 4.89% |
Government Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 1.63% | 1.63% | 1.63% | 2.18% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Repayments on Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 106 | |
2021 | 33 | |
2022 | 338 | |
2023 | 619 | |
2024 | 751 | |
Thereafter | 1,321 | |
Total long-term debt | $ 3,168 | $ 3,285 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense | ||
Current | $ 17 | $ 24 |
Long-term | 87 | 89 |
Interest expense | 104 | 113 |
Interest income | (22) | (20) |
Interest expense, net | $ 82 | $ 93 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease Option To Extend | options to extend the term of the lease for up to 12 years | |
Operating Lease Option To Terminate | terminate the lease within 1 year | |
Cost of Sales [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 330 | |
Selling, General and Administrative Expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 31 | |
Manufacturing Facility [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liabilitites | $ 22 | |
Operating lease year of commencement | 2020 | |
Use Rights [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 90 years | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 33 years | |
Maximum [Member] | Manufacturing Facility [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 8 years | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 1 year | |
Minimum [Member] | Manufacturing Facility [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 1 year |
Leases - Schedule of Costs Asso
Leases - Schedule of Costs Associated with Operating Lease Expenses (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 316 |
Short-term lease expense | 25 |
Variable lease expense | 27 |
Total lease expense | $ 368 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related To Operating Leases (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows – cash paid relating to operating leases | $ 344 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 104 |
Weighted-average remaining lease term – operating leases, in years | 11 years |
Weighted-average discount rate – operating leases | 4.80% |
Leases - Schedule of Commitment
Leases - Schedule of Commitments under Operating Leases Requiring Annual Payments (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 297 |
2021 | 270 |
2022 | 247 |
2023 | 221 |
2024 | 194 |
2025 and thereafter | 1,126 |
Total | 2,355 |
Less: amount representing interest | 529 |
Total lease liabilities | 1,826 |
Current operating liabilities | 225 |
Non-current operating lease liabilities | 1,601 |
Total lease liabilities | $ 1,826 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Commitments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 310 |
2020 | 283 |
2021 | 254 |
2022 | 230 |
2023 | 199 |
Thereafter | 714 |
Total | $ 1,990 |
Long-Term Employee Benefit Li_3
Long-Term Employee Benefit Liabilities - Long-Term Employee Benefit Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Defined benefit pension plans and other | $ 203 | $ 184 |
Termination and long service arrangements | 437 | 381 |
Retirement medical benefits plans | 27 | 27 |
Other long-term employee benefits | 10 | 5 |
Long-term employee benefit obligations | $ 677 | $ 597 |
Long-Term Employee Benefit Li_4
Long-Term Employee Benefit Liabilities - Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost (Detail) - Pension Plan, Defined Benefit [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.50% | 3.10% |
Rate of compensation increase | 2.60% | 2.50% |
Net periodic benefit cost Discount rate | 3.20% | 2.80% |
Rate of compensation increase | 2.60% | 2.50% |
Expected return on plan assets | 4.90% | 5.80% |
Long-Term Employee Benefit Li_5
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | $ (22) | $ (18) |
Non-current liability | 677 | 597 |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 633 | 687 |
Current service cost | 11 | 14 |
Interest cost | 20 | 18 |
Actuarial losses (gains) and changes in actuarial assumptions | 79 | (33) |
Benefits paid | (21) | (24) |
Divestiture | (68) | |
Foreign exchange | 5 | (29) |
End of year | 659 | 633 |
Beginning of year | 406 | 443 |
Return on plan assets | 78 | (11) |
Employer contributions | 11 | 12 |
Benefits paid | (17) | (19) |
Divestiture | (10) | |
Foreign exchange | 10 | (19) |
End of year | 478 | 406 |
Ending funded status | 181 | 227 |
Non-current asset | (23) | (18) |
Current liability | 1 | 1 |
Liabilities held for sale | 60 | |
Non-current liability | 203 | 184 |
Net amount | 181 | 227 |
Unrecognized actuarial losses | (141) | (134) |
Current service cost | 11 | 14 |
Interest cost | 20 | 18 |
Return on plan assets | (19) | (25) |
Actuarial losses | 4 | 4 |
Net periodic benefit cost | $ 16 | $ 11 |
Long-Term Employee Benefit Li_6
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Parenthetical) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Long term employee benefit liabilities | $ 58 |
Accrued salaries and wages | $ 2 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 100.00% |
Asset allocation of defined benefit pension plans | 100.00% |
Equity Investments [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation of defined benefit pension plans | 37.00% |
Equity Investments [Member] | Minimum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 25.00% |
Equity Investments [Member] | Maximum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 45.00% |
Fixed Income Securities [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation of defined benefit pension plans | 59.00% |
Fixed Income Securities [Member] | Minimum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 55.00% |
Fixed Income Securities [Member] | Maximum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 75.00% |
Cash and Cash Equivalents [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation of defined benefit pension plans | 4.00% |
Cash and Cash Equivalents [Member] | Minimum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 0.00% |
Cash and Cash Equivalents [Member] | Maximum [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2018 | 10.00% |
Long-Term Employee Benefit Li_7
Long-Term Employee Benefit Liabilities - Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Projected Termination and Long Service Benefit Obligations and Net Periodic Benefit Cost (Detail) - Termination and Long Service Arrangements [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.10% | 2.80% |
Rate of compensation increase | 3.10% | 2.90% |
Long-Term Employee Benefit Li_8
Long-Term Employee Benefit Liabilities - Company's Termination and Long Service Arrangements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 677 | $ 597 |
Termination and Long Service Arrangements [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 394 | 378 |
Current service cost | 29 | 22 |
Interest cost | 10 | 8 |
Actuarial losses and changes in actuarial assumptions | 39 | 14 |
Benefits paid | (19) | (14) |
(Divestiture) acquisition | (3) | 2 |
Foreign exchange | (4) | (16) |
Ending funded status | 446 | 394 |
Current liability | 9 | 9 |
Liabilities held for sale | 4 | |
Non-current liability | 437 | 381 |
Net amount | 446 | 394 |
Unrecognized actuarial losses | (124) | (88) |
Current service cost | 29 | 22 |
Interest cost | 10 | 8 |
Actuarial losses (gains) | 4 | (1) |
Net periodic benefit cost | $ 43 | $ 29 |
Long-Term Employee Benefit Li_9
Long-Term Employee Benefit Liabilities - Summary of Weighted Average Discount Rates Used in Measuring Company's Projected Retirement Medical Benefit Obligations and Net Periodic Benefit Cost (Detail) - Retirement Medical Benefits Plans [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement medical benefit obligations | 3.10% | 4.00% |
Net periodic benefit cost | 4.00% | 3.40% |
Health care cost inflation | 6.80% | 6.80% |
Long-Term Employee Benefit L_10
Long-Term Employee Benefit Liabilities - Company's Retirement Medical Benefits Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 677 | $ 597 |
Retirement Medical Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 29 | 33 |
Interest cost | 1 | 1 |
Actuarial losses (gains) and changes in actuarial assumptions | (3) | |
Benefits paid | (1) | (1) |
Foreign exchange | (1) | |
Ending funded status | 29 | 29 |
Current liability | 2 | 2 |
Non-current liability | 27 | 27 |
Net amount | 29 | 29 |
Unrecognized actuarial gains | 11 | 12 |
Total accumulated other comprehensive income | 11 | 12 |
Interest cost | 1 | 1 |
Actuarial losses (gains) | (1) | (1) |
Net periodic benefit cost | $ 0 | $ 0 |
Long-Term Employee Benefit L_11
Long-Term Employee Benefit Liabilities - Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2020 | $ 22 |
2020 | 33 |
2021 | 35 |
2022 | 35 |
2023 | 39 |
2024 | 43 |
Thereafter | 250 |
Total | 435 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2020 | 11 |
2020 | 22 |
2021 | 22 |
2022 | 23 |
2023 | 23 |
2024 | 24 |
Thereafter | 131 |
Total | 245 |
Termination and Long Service Arrangements [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2020 | 9 |
2020 | 10 |
2021 | 11 |
2022 | 11 |
2023 | 14 |
2024 | 18 |
Thereafter | 119 |
Total | 183 |
Retirement Medical Benefits Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2020 | 2 |
2020 | 1 |
2021 | 2 |
2022 | 2 |
2023 | 2 |
2024 | 2 |
Thereafter | 8 |
Total | $ 17 |
Other Long-Term Liabilities - P
Other Long-Term Liabilities - Particulars of Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Long-term portion of fair value of hedges | $ 8 | $ 40 |
Long-term portion of income taxes payable | 234 | 205 |
Asset retirement obligation | 34 | 33 |
Deferred revenue | 74 | 106 |
Long-term lease inducements | 16 | |
Other | 21 | |
Total | $ 371 | $ 400 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Nov. 12, 2018shares | Dec. 31, 2019Voteshares |
Equity [Abstract] | ||
Preference shares included in authorized capital stock | 99,760,000 | |
Shares issued or outstanding | 0 | |
Number of votes per share | Vote | 1 | |
Number of common stock shares to be purchased under the Bid | 30,300,000 | |
Percentage of issued and outstanding common shares | 10.00% | |
Commencement date of Bid | Nov. 15, 2019 | |
Termination date of Bid | Nov. 14, 2020 |
Capital Stock - Summary of Norm
Capital Stock - Summary of Normal Course Issuer Bids (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 25,768,563 | 32,644,284 |
Cash amount | $ 1,289 | $ 1,831 |
2017 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 35,800,000 | |
Shares purchased | 26,630,243 | |
Cash amount | $ 1,544 | |
2018 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 33,200,000 | |
Shares purchased | 23,401,457 | 6,014,041 |
Cash amount | $ 1,159 | $ 287 |
2019 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 30,283,500 | |
Shares purchased | 2,367,106 | |
Cash amount | $ 130 |
Capital Stock - Maximum Number
Capital Stock - Maximum Number of Shares Outstanding Exercised or Converted (Detail) - Convertible Common Stock [Member] - Subsequent Event [Member] | Mar. 05, 2020shares |
Class of Stock [Line Items] | |
Common Shares | 301,768,927 |
Stock options | 9,745,110 |
Total number of shares outstanding | 311,514,037 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (1,175) | |
Net unrealized gain (loss) | 102 | $ (106) |
Net unrealized loss | (47) | (13) |
Reclassification of net loss (gain) to net income | 4 | (1) |
Reclassification of net loss to net income | 8 | 6 |
Ending Balance | (1,090) | (1,175) |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (917) | (456) |
Net unrealized loss | (18) | (490) |
Repurchase of shares under normal course issuer bids [note 21] | 28 | 29 |
Ending Balance | (907) | (917) |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (68) | 39 |
Net unrealized gain (loss) | 102 | (106) |
Reclassification of net loss (gain) to net income | 4 | (1) |
Ending Balance | 38 | (68) |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (190) | (183) |
Net unrealized loss | (47) | (13) |
Reclassification of net loss to net income | 8 | 6 |
Sale of business | 8 | |
Ending Balance | (221) | (190) |
AOCL [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,175) | |
Ending Balance | $ (1,090) | $ (1,175) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Net Income Amounts Reclassified from AOCL (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sales | $ 39,431 | $ 40,827 |
Cost of sales | 34,022 | 35,055 |
Income tax | 591 | 619 |
Net of tax | 1,765 | 2,296 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total loss reclassified to net income | (12) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sales | (38) | (6) |
Cost of sales | 33 | 7 |
Income tax | 1 | |
Net of tax | (4) | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | (9) | (7) |
Income tax | 1 | 1 |
Net of tax | $ (8) | $ (6) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Summary of Income Tax Benefit (Expense) to Component of Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | $ 51 | |
Balance, end of year | 28 | $ 51 |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | 23 | (12) |
Net unrealized (gain) loss | (36) | 35 |
Reclassification of net loss to net income | (1) | |
Balance, end of year | (14) | 23 |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | 21 | 17 |
Net unrealized (gain) loss | 15 | 5 |
Reclassification of net loss to net income | (1) | (1) |
Balance, end of year | 35 | 21 |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | 7 | |
Balance, end of year | $ 7 | $ 7 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Equity [Abstract] | |
Amount of comprehensive loss that is expected to be reclassified to net income | $ 37 |
Financial Instruments - Foreign
Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) - 12 months ended Dec. 31, 2019 Kč in Millions, $ in Millions, $ in Millions | USD ($) | CZK (Kč) | MXN ($) |
Canada, Dollars | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (1,369) | ||
Canada, Dollars | 2020 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 1.31238 | ||
Foreign exchange forward contract, Sales Exchange Rate | 0.76562 | ||
Canada, Dollars | 2020 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 173 | ||
Canada, Dollars | 2020 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (759) | ||
Canada, Dollars | 2021 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 1.31855 | ||
Foreign exchange forward contract, Sales Exchange Rate | 0.76856 | ||
Canada, Dollars | 2021 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 19 | ||
Canada, Dollars | 2021 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (479) | ||
Canada, Dollars | 2022 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 1.32105 | ||
Foreign exchange forward contract, Sales Exchange Rate | 0.76649 | ||
Canada, Dollars | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 6 | ||
Canada, Dollars | 2022 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (263) | ||
Canada, Dollars | 2023 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 0.76140 | ||
Canada, Dollars | 2023 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (52) | ||
Canada, Dollars | 2024 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 0.75235 | ||
Canada, Dollars | 2024 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (14) | ||
United States of America, Dollars | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 10,069 | ||
United States of America, Dollars | 2020 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04824 | ||
Foreign exchange forward contract, Sales Exchange Rate | 20.37835 | ||
United States of America, Dollars | 2020 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 6,271 | ||
United States of America, Dollars | 2020 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | (25) | ||
United States of America, Dollars | 2021 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04624 | ||
United States of America, Dollars | 2021 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 2,749 | ||
United States of America, Dollars | 2022 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04675 | ||
United States of America, Dollars | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,074 | ||
Euro Member Countries, Euro | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 206 | Kč 7,626 | |
Euro Member Countries, Euro | 2020 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.85601 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.15358 | ||
Euro Member Countries, Euro | 2020 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03834 | ||
Euro Member Countries, Euro | 2020 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 196 | 4,582 | |
Euro Member Countries, Euro | 2020 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (117) | ||
Euro Member Countries, Euro | 2021 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.82944 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.21681 | ||
Euro Member Countries, Euro | 2021 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03757 | ||
Euro Member Countries, Euro | 2021 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 89 | 2,576 | |
Euro Member Countries, Euro | 2021 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (34) | ||
Euro Member Countries, Euro | 2022 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.81676 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.21233 | ||
Euro Member Countries, Euro | 2022 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03762 | ||
Euro Member Countries, Euro | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 48 | Kč 468 | |
Euro Member Countries, Euro | 2022 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (4) | ||
Euro Member Countries, Euro | 2023 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.81607 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.19193 | ||
Euro Member Countries, Euro | 2023 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 23 | ||
Euro Member Countries, Euro | 2023 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ (2) | ||
Euro Member Countries, Euro | 2024 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 0.83511 | ||
Euro Member Countries, Euro | 2024 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 7 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term debt due within one year | $ 106 | $ 201 |
Debt instrument maturity period | 1 year | |
Book value of senior notes | $ 3,020 | |
Sales Revenue, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of largest customers | Customer | 6 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of sales to six largest customers | 77.00% | 77.00% |
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated fair value of notes payable | $ 3,200 | |
Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange forward contracts, gain recognized in other comprehensive loss | $ 70 | |
Foreign exchange forward contracts, loss recognized in other comprehensive loss | $ 18 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and cash equivalents | $ 1,276 | $ 684 |
Restricted cash equivalents | 116 | 118 |
Accounts receivable | 5,927 | 6,548 |
Publicly Traded and Private Equity Investments | 99 | 323 |
Severance investments | 1 | 3 |
Long-term receivables included in other assets [note 14] | 217 | 198 |
Financial assets held for sale [note 3] | ||
Total | 7,636 | 8,133 |
Financial liabilities | ||
Bank indebtedness [note 17] | 0 | 1,098 |
Long-term debt (including portion due within one year) | 3,168 | 3,285 |
Accounts payable | 5,628 | 6,094 |
Financial liabilities held for sale [note 3] | ||
Other Liabilities, Total | 8,796 | 10,703 |
Foreign currency contracts | ||
Derivative assets designated as effective hedges, measured at fair value | 70 | 34 |
Derivative liabilities designated as effective hedges, measured at fair value | (18) | (101) |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Financial assets held for sale [note 3] | ||
Severance investments held for sale | 1 | |
Fluid Pressure & Controls Business [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Financial assets held for sale [note 3] | ||
Accounts receivable held for sale | 258 | |
Financial liabilities held for sale [note 3] | ||
Accounts payable held for sale | 226 | |
Foreign Exchange Contract [Member] | ||
Foreign currency contracts | ||
Assets, Net amounts | 52 | (67) |
Prepaid Expenses and Other [Member] | Foreign Exchange Contract [Member] | ||
Foreign currency contracts | ||
Derivative assets designated as effective hedges, measured at fair value | 46 | 25 |
Other Assets [Member] | Foreign Exchange Contract [Member] | ||
Foreign currency contracts | ||
Derivative assets designated as effective hedges, measured at fair value | 24 | 9 |
Other Accrued Liabilities [Member] | Foreign Exchange Contract [Member] | ||
Foreign currency contracts | ||
Derivative liabilities designated as effective hedges, measured at fair value | (10) | (61) |
Other Long-term Liabilities [Member] | Foreign Exchange Contract [Member] | ||
Foreign currency contracts | ||
Derivative liabilities designated as effective hedges, measured at fair value | $ (8) | (40) |
Bank Indebtedness [Member] | ||
Financial liabilities | ||
Bank indebtedness [note 17] | 35 | |
Commercial Paper [Member] | ||
Financial liabilities | ||
Bank indebtedness [note 17] | $ 1,063 |
Financial Instruments - Derivat
Financial Instruments - Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Assets, Gross amounts presented in consolidated balance sheets | $ 70 | $ 34 |
Assets, Gross amounts not offset in consolidated balance sheets | 15 | 33 |
Assets, Net amounts | 55 | 1 |
Liabilities, Gross amounts presented in Consolidated Balance Sheets | (18) | (101) |
Liabilities, Gross amounts not offset in Consolidated Balance Sheets | (15) | (33) |
Liabilities, Net Amounts | $ (3) | $ (68) |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Business-Combination | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 4 |
Segmented Information - Schedul
Segmented Information - Schedule of Segment Information for Reporting Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total sales | $ 39,431 | $ 40,827 | |
External sales | 39,431 | 40,827 | |
Adjusted EBIT | 2,545 | 3,107 | |
Depreciation and amortization | 1,345 | 1,278 | |
Equity income | (178) | (277) | |
Net assets | 25,790 | 25,945 | |
Goodwill | 1,976 | 1,979 | $ 2,099 |
Fixed asset, net | 8,260 | 8,095 | |
Body Exteriors & Structures [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 458 | 459 | 463 |
Power & Vision [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 1,238 | 1,260 | 1,365 |
Seating Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 169 | 147 | 153 |
Complete Vehicles [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 111 | 113 | $ 118 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 39,431 | 40,827 | |
Net assets | 15,954 | 15,828 | |
Investments | 1,210 | 2,189 | |
Goodwill | 1,976 | 1,979 | |
Fixed asset, net | 8,260 | 8,095 | |
Fixed asset additions | 1,441 | 1,650 | |
Operating Segments [Member] | Body Exteriors & Structures [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 16,458 | 17,527 | |
External sales | 16,110 | 17,220 | |
Adjusted EBIT | 1,299 | 1,413 | |
Depreciation and amortization | 710 | 701 | |
Equity income | (3) | (12) | |
Net assets | 7,906 | 7,142 | |
Investments | 31 | 34 | |
Goodwill | 458 | 459 | |
Fixed asset, net | 4,827 | 4,825 | |
Fixed asset additions | 713 | 730 | |
Operating Segments [Member] | Power & Vision [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 11,312 | 12,321 | |
External sales | 11,103 | 12,086 | |
Adjusted EBIT | 747 | 1,171 | |
Depreciation and amortization | 464 | 435 | |
Equity income | (174) | (261) | |
Net assets | 5,626 | 6,703 | |
Investments | 899 | 1,680 | |
Goodwill | 1,238 | 1,260 | |
Fixed asset, net | 2,299 | 2,151 | |
Fixed asset additions | 577 | 655 | |
Operating Segments [Member] | Seating Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 5,577 | 5,548 | |
External sales | 5,548 | 5,546 | |
Adjusted EBIT | 312 | 426 | |
Depreciation and amortization | 66 | 57 | |
Equity income | (4) | (3) | |
Net assets | 1,219 | 815 | |
Investments | 134 | 135 | |
Goodwill | 169 | 147 | |
Fixed asset, net | 412 | 330 | |
Fixed asset additions | 76 | 78 | |
Operating Segments [Member] | Complete Vehicles [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 6,707 | 6,018 | |
External sales | 6,661 | 5,968 | |
Adjusted EBIT | 144 | 68 | |
Depreciation and amortization | 84 | 65 | |
Equity income | (1) | ||
Net assets | 735 | 605 | |
Investments | 2 | 2 | |
Goodwill | 111 | 113 | |
Fixed asset, net | 593 | 622 | |
Fixed asset additions | 69 | 170 | |
Operating Segments [Member] | Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | (623) | (587) | |
External sales | 9 | 7 | |
Adjusted EBIT | 43 | 29 | |
Depreciation and amortization | 21 | 20 | |
Equity income | 4 | (1) | |
Net assets | 468 | 563 | |
Investments | 144 | 338 | |
Fixed asset, net | 129 | 167 | |
Fixed asset additions | $ 6 | $ 17 |
Segmented Information - Sched_2
Segmented Information - Schedule of Segment Information for Reporting Segments (Parenthetical) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Power & Vision [Member] | |
Segment Reporting Information [Line Items] | |
Net assets held for sale | $ 541 |
Segmented Information - Sched_3
Segmented Information - Schedule of Reconciliation for Adjusted EBIT to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | ||
Net income | $ 1,632 | $ 2,332 |
Add (deduct): | ||
Interest expense, net | 82 | 93 |
Other expense, net | 240 | 63 |
Income taxes | 591 | 619 |
Adjusted EBIT | $ 2,545 | $ 3,107 |
Segmented Information - Summary
Segmented Information - Summary of Net Assets for Company's Reporting Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Net Assets for Company's Reporting Segments [Line Items] | ||
Segment Net Assets | $ 25,790 | $ 25,945 |
Cash and cash equivalents | 1,276 | 684 |
Deferred tax assets | 308 | 300 |
Income taxes receivable | 57 | |
Accounts payable | 5,628 | 6,094 |
Accrued salaries and wages | 753 | 769 |
Other accrued liabilities | 1,800 | 1,734 |
Segment Reconciling Items [Member] | Deduct Assets Not Included in Segment Net Assets [Member] | ||
Summary of Net Assets for Company's Reporting Segments [Line Items] | ||
Segment Net Assets | 25,790 | 25,945 |
Cash and cash equivalents | (1,276) | (684) |
Deferred tax assets | (308) | (300) |
Long-term receivables from joint venture partners | (71) | (71) |
Income taxes receivable | (57) | |
Accounts payable | (5,628) | (6,094) |
Accrued salaries and wages | (753) | (769) |
Other accrued liabilities | (1,800) | (1,734) |
Liabilities held for sale | (408) | |
Operating Segments [Member] | ||
Summary of Net Assets for Company's Reporting Segments [Line Items] | ||
Segment Net Assets | $ 15,954 | $ 15,828 |
Segmented Information - Sched_4
Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | ||
Sales | $ 39,431 | $ 40,827 |
General Motors [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,732 | 6,303 |
BMW [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,469 | 4,826 |
Ford Motor Company [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,270 | 5,721 |
Fiat Chrysler Automobiles [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,173 | 5,693 |
Daimler AG [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 4,887 | 4,687 |
Volkswagen [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 4,001 | 4,128 |
Other Customers [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 8,899 | $ 9,469 |
Segmented Information - Sched_5
Segmented Information - Schedule of External Revenues and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $ 39,431 | $ 40,827 |
Fixed assets, net | 8,260 | 8,095 |
Operating Segments [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 39,431 | 40,827 |
Fixed assets, net | 8,260 | 8,095 |
Operating Segments [Member] | North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 19,349 | 20,547 |
Fixed assets, net | 3,941 | 3,635 |
Operating Segments [Member] | North America [Member] | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 9,702 | 10,043 |
Fixed assets, net | 1,661 | 1,359 |
Operating Segments [Member] | North America [Member] | Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 5,353 | 5,886 |
Fixed assets, net | 993 | 1,001 |
Operating Segments [Member] | North America [Member] | Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 4,294 | 4,618 |
Fixed assets, net | 1,287 | 1,275 |
Operating Segments [Member] | Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 17,331 | 17,055 |
Fixed assets, net | 3,608 | 3,676 |
Operating Segments [Member] | Europe [Member] | Austria | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 8,279 | 7,750 |
Fixed assets, net | 872 | 938 |
Operating Segments [Member] | Europe [Member] | Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 4,878 | 4,893 |
Fixed assets, net | 1,090 | 1,271 |
Operating Segments [Member] | Europe [Member] | Czech Republic | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 899 | 764 |
Fixed assets, net | 276 | 257 |
Operating Segments [Member] | Europe [Member] | Poland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 689 | 694 |
Fixed assets, net | 201 | 200 |
Operating Segments [Member] | Europe [Member] | Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 527 | 850 |
Fixed assets, net | 244 | 288 |
Operating Segments [Member] | Europe [Member] | United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 422 | 517 |
Fixed assets, net | 209 | 191 |
Operating Segments [Member] | Europe [Member] | Russia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 434 | 424 |
Fixed assets, net | 134 | 138 |
Operating Segments [Member] | Europe [Member] | Spain | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 431 | 382 |
Fixed assets, net | 79 | 47 |
Operating Segments [Member] | Europe [Member] | Turkey | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 293 | 291 |
Fixed assets, net | 10 | 8 |
Operating Segments [Member] | Europe [Member] | France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 201 | 219 |
Fixed assets, net | 55 | 46 |
Operating Segments [Member] | Europe [Member] | Slovakia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 139 | 127 |
Fixed assets, net | 223 | 71 |
Operating Segments [Member] | Europe [Member] | Other Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 139 | 144 |
Fixed assets, net | 215 | 221 |
Operating Segments [Member] | Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 2,164 | 2,540 |
Fixed assets, net | 631 | 718 |
Operating Segments [Member] | Asia Pacific [Member] | China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 1,947 | 2,152 |
Fixed assets, net | 528 | 588 |
Operating Segments [Member] | Asia Pacific [Member] | India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 144 | 180 |
Fixed assets, net | 98 | 106 |
Operating Segments [Member] | Asia Pacific [Member] | Korea | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 44 | 158 |
Fixed assets, net | 1 | 21 |
Operating Segments [Member] | Asia Pacific [Member] | Other Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 29 | 50 |
Fixed assets, net | 4 | 3 |
Operating Segments [Member] | Rest Of The World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 587 | 685 |
Fixed assets, net | $ 80 | $ 66 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | |
Mar. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash consideration received in lieu of cancellation | $ 1,289 | $ 1,831 | |
Subsequent Event [Member] | |||
Cancellation of common shares | 1,955,518 | ||
Stock-based compensation awards, common shares | 177,103 | ||
Cash consideration received in lieu of cancellation | $ 101 |