Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Magna International Inc. |
Entity Central Index Key | 0000749098 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 297,871,976 |
Title of 12(b) Security | Common Shares |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Entity File Number | 001-11444 |
Entity Incorporation, State or Country Code | A6 |
Entity Address, Address Line One | 337 Magna Drive |
Entity Address, Address Line Two | Aurora |
Entity Address, State or Province | ON |
Entity Address, City or Town | Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | L4G 7K1 |
City Area Code | 905 |
Local Phone Number | 726-2462 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Auditor Name | Deloitte LLP |
Auditor Firm ID | 1208 |
Auditor Location | Toronto, Canada |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Corporation Service Company |
Entity Address, Address Line One | 19 West 44th Street |
Entity Address, Address Line Two | Suite 200 |
Entity Address, State or Province | NY |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 299-5600 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 36,242 | $ 32,647 |
Costs and expenses | ||
Cost of goods sold | 31,097 | 28,207 |
Depreciation and amortization | 1,512 | 1,366 |
Selling, general and administrative | 1,717 | 1,587 |
Interest expense, net | 78 | 86 |
Equity income | (148) | (189) |
Other expense, net | 38 | 584 |
Income from operations before income taxes | 1,948 | 1,006 |
Income taxes | 395 | 329 |
Net income | 1,553 | 677 |
(Income) loss attributable to non-controlling interests | (39) | 80 |
Net income attributable to Magna International Inc. | $ 1,514 | $ 757 |
Earnings per Common Share: | ||
Basic | $ 5.04 | $ 2.52 |
Diluted | $ 5 | $ 2.52 |
Weighted average number of Common Shares outstanding during the year [in millions]: | ||
Basic | 300.6 | 299.7 |
Diluted | 302.8 | 300.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,553 | $ 677 |
Other comprehensive income, net of tax: | ||
Net unrealized (loss) gain on translation of net investment in foreign operations | (178) | 356 |
Net unrealized gain (loss) on cash flow hedges | 34 | (34) |
Reclassification of net (gain) loss on cash flow hedges to net income | (52) | 38 |
Reclassification of net loss on pensions to net income | 9 | 8 |
Pension and post-retirement benefits | 26 | (11) |
Other comprehensive (loss) income | (161) | 357 |
Comprehensive income | 1,392 | 1,034 |
Comprehensive (income) loss attributable to non-controlling interests | (48) | 72 |
Comprehensive income attributable to Magna International Inc. | $ 1,344 | $ 1,106 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2,948 | $ 3,268 |
Accounts receivable | 6,307 | 6,394 |
Inventories | 3,969 | 3,444 |
Prepaid expenses and other | 278 | 260 |
Total current assets | 13,502 | 13,366 |
Investments | 1,593 | 947 |
Fixed assets, net | 8,293 | 8,475 |
Operating lease right-of-use assets | 1,700 | 1,906 |
Goodwill | 2,122 | 2,095 |
Intangible assets, net | 493 | 481 |
Deferred tax assets | 421 | 372 |
Other assets | 962 | 963 |
Consolidated total assets | 29,086 | 28,605 |
Current liabilities | ||
Accounts payable | 6,465 | 6,266 |
Other accrued liabilities | 2,156 | 2,254 |
Accrued salaries and wages | 851 | 815 |
Income taxes payable | 200 | 38 |
Long-term debt due within one year | 455 | 129 |
Current portion of operating lease liabilities | 274 | 241 |
Total current liability | 10,401 | 9,743 |
Long-term debt | 3,538 | 3,973 |
Operating lease liabilities | 1,406 | 1,656 |
Long-term employee benefit liabilities | 700 | 729 |
Other long-term liabilities | 376 | 332 |
Deferred tax liabilities | 440 | 452 |
Total liability | 16,861 | 16,885 |
Shareholders' equity | ||
Common Shares [issued: 2021 – 297,871,976; 2020 – 300,527,416] | 3,403 | 3,271 |
Contributed surplus | 102 | 128 |
Retained earnings | 9,231 | 8,704 |
Accumulated other comprehensive loss | (900) | (733) |
Stockholders equity attributable to Magna International Inc | 11,836 | 11,370 |
Non-controlling interests | 389 | 350 |
Total stockholder's equity | 12,225 | 11,720 |
Total liability and stockholders' equity | $ 29,086 | $ 28,605 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 297,871,976 | 300,527,416 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,553 | $ 677 |
Items not involving current cash flows | 1,576 | 1,976 |
Profit loss after adjustment of non cash items | 3,129 | 2,653 |
Changes in operating assets and liabilities | (189) | 625 |
Cash provided from operating activities | 2,940 | 3,278 |
INVESTMENT ACTIVITIES | ||
Fixed asset additions | (1,372) | (1,145) |
Increase in equity method investments | (517) | |
Increase in investments, other assets and intangible assets | (403) | (331) |
Increase in public and private equity investments | (68) | (132) |
Proceeds from dispositions | 81 | 108 |
Business Combinations | (13) | 91 |
(Funding provided for) proceeds on sale of business | (41) | 9 |
Settlement of long-term receivable from non-consolidated joint venture | 50 | |
Cash used for investing activities | (2,283) | (1,400) |
FINANCING ACTIVITIES | ||
Issues of debt | 55 | 854 |
Decrease in short-term borrowings | (101) | (31) |
Repayments of debt | (121) | (140) |
Issue of Common Share on exercise of stock options | 146 | 81 |
Tax withholdings on vesting of equity awards | (13) | (13) |
Repurchase of Common Shares | (517) | (203) |
Contributions to subsidiaries by non-controlling interests | 8 | 18 |
Dividends paid to non-controlling interests | (49) | (18) |
Dividends paid | (514) | (467) |
Cash (used for) provided from financing activities | (1,106) | 81 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | 23 | 23 |
Net (decrease) increase in cash, cash equivalents and restricted cash equivalents during the year | (426) | 1,982 |
Cash, cash equivalents and restricted cash equivalents beginning of year | 3,374 | 1,392 |
Cash, cash equivalents and restricted cash equivalents, end of year | $ 2,948 | $ 3,374 |
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, 2019 | $ 11,131 | $ 3,198 | $ 127 | $ 8,596 | $ (1,090) | $ 300 | |
Beginning Balance, shares at Dec. 31, 2019 | 303.2 | ||||||
Net income | 677 | 757 | (80) | ||||
Other comprehensive (loss) income | 357 | 349 | 8 | ||||
Shares issued on exercise of stock options | 81 | $ 98 | (17) | ||||
Shares issued on exercise of stock options, shares | 1.8 | ||||||
Contribution by non-controlling interests | 18 | 18 | |||||
Release of stock and stock units | $ 17 | (17) | |||||
Release of stock and stock units, shares | 0.5 | ||||||
Tax withholdings on vesting of equity awards | (13) | $ (3) | (10) | ||||
Tax withholdings on vesting of equity awards, shares | (0.2) | ||||||
Repurchase and cancellation under normal course issuer bids [note 19] | (203) | $ (54) | (157) | 8 | |||
Repurchase and cancellation under normal course issuer bids [note 19], shares | (5.1) | ||||||
Stock-based compensation expense | 35 | 35 | |||||
Business combination | 122 | 122 | |||||
Dividends paid to non-controlling interests | (18) | (18) | |||||
Dividends paid | (467) | $ 15 | (482) | ||||
Dividends paid, shares | 0.3 | ||||||
Ending Balance at Dec. 31, 2020 | 11,720 | $ 3,271 | 128 | 8,704 | (733) | 350 | |
Ending Balance, shares at Dec. 31, 2020 | 300.5 | ||||||
Net income | 1,553 | 1,514 | 39 | ||||
Other comprehensive (loss) income | (161) | (170) | 9 | ||||
Shares issued on exercise of stock options | 146 | $ 175 | (29) | ||||
Shares issued on exercise of stock options, shares | 3 | ||||||
Contribution by non-controlling interests | 8 | 8 | |||||
Release of stock and stock units | $ 17 | (17) | |||||
Release of stock and stock units, shares | 0.4 | ||||||
Tax withholdings on vesting of equity awards | (13) | $ (2) | (11) | ||||
Tax withholdings on vesting of equity awards, shares | (0.1) | ||||||
Repurchase and cancellation under normal course issuer bids [note 19] | (517) | $ (68) | (452) | 3 | |||
Repurchase and cancellation under normal course issuer bids [note 19], shares | (6.1) | ||||||
Stock-based compensation expense | 20 | 20 | |||||
Business combination | 32 | 32 | |||||
Dividends paid to non-controlling interests | (49) | (49) | |||||
Dividends paid | (514) | $ 10 | (524) | ||||
Dividends paid, shares | 0.2 | ||||||
Ending Balance at Dec. 31, 2021 | $ 12,225 | $ 3,403 | $ 102 | $ 9,231 | $ (900) | $ 389 | |
Ending Balance, shares at Dec. 31, 2021 | 297.9 | ||||||
[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, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share | $ 1.72 | $ 1.60 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. SIGNIFICANT ACCOUNTING POLICIES Magna International Inc. [collectively “Magna” or the “Company”] is a global supplier in the automotive space. Our systems approach to design, engineering and manufacturing touches nearly every aspect of the vehicle, including body and chassis structures, exterior systems and modules, trim and engineered glass, active aerodynamics, energy storage systems, electrified and conventional powertrain technologies, powertrain subsystems and components, ADAS and automated driving, control modules, mechatronics, mirrors and overhead consoles, lighting, complete seats, seating structural products, seat foam and seat trim. We also have complete vehicle engineering and contract manufacturing expertise. The consolidated financial statements have been prepared in U.S. dollars following accounting principles generally accepted in the United States [“GAAP”]. Certain amounts in prior periods have been reclassified to conform with current period presentation. Principles of consolidation The Consolidated Financial Statements include the accounts of Magna and its subsidiaries in which Magna has a controlling financial interest and is the primary beneficiary. The Company presents non-controlling 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. 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 net 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 derivative instruments are designated and qualify as cash flow hedges, the changes in their fair values are recorded in other comprehensive income. Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized immediately in net income based on the nature of the underlying transaction. Amounts accumulated in other comprehensive loss or income are reclassified to net income in the period in which the hedged item affects net income. 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 net 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 which 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 using the best information available, which may include cash flow projections or other available market data 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 % for buildings, % to % for general purpose equipment and % to % for special purpose equipment. 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 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 net 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. The Company assesses 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 No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are considered to be reinvested for the foreseeable future. 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 Employee future benefit plans The cost of providing benefits through defined benefit pensions, lump sum termination and long-term service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated The funded status of the plans is measured as the difference between the fair value of the plan assets and the projected benefit obligation [“PBO”]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans is recorded 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 a purchase order and 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 Revenue is recognized at the 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 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, some of which may be implicitly contracted for. For these 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 plus a margin approach and amounts related to revenue are recognized 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 is 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. For the year ended December 31, 2021, total tooling and engineering sales were $783 million [2020 - $739 million]. 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. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Contract Assets and Liabilities The Company’s contract assets relate to the right to consideration for work completed but not yet billed and are included in Accounts Receivable. Amounts may not exceed their net realizable value. As at December 31, 2021, the Company’s unbilled accounts receivable balance was $528 million [2020 - $425 million]. 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, 2021 and 2020, the contract liability balances were $273 million and $214 million, respectively. During the year ended December 31, 2021 and 2020, the Company recognized $140 million and $81 million, respectively, of previously recorded contract liabilities into revenue as performance obligations were satisfied 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 may be deferred and recognized in the consolidated statement of income over the period necessary to match them with the costs that they are intended to compensate and are presented as a reduction of the related expense. 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 similar to a government grant and 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, 2021 and 2020, research and development costs charged to expense were $634 million and $830 million, respectively. Restructuring Restructuring costs may include employee termination benefits, as well as other costs resulting from restructuring actions. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements or statutory requirements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when liabilities are determined to be probable and estimable. Additional elements of severance and termination benefits associated with nonrecurring benefits may be recognized rateably over each employee’s required future service period. All other restructuring costs are expensed as incurred. 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. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | 2. OTHER EXPENSE, NET Other expense, net consists of significant items such as: impairment charges; restructuring costs generally related to significant plant closures or consolidations; net (gains) losses on investments; gains or losses on disposal of facilities or businesses; and other items not reflective of on-going 2021 2020 Restructuring and impairments [a] $ 101 $ 269 Net losses (gains) on investments [b] 2 (32 ) Merger agreement termination fee [c] (100 ) — Gain on business combinations [d] (40 ) — Loss on sale of business [e] 75 — Impairment of equity-accounted investments [f] — 347 Other expense, net $ 38 $ 584 [a] Restructuring and impairments For the year ended December 31, 2021, the company recorded restructuring and impairment charges of $67 million [$52 million after tax] for its Power & Vision segment, $18 million [$17 million after tax] for its Seating Systems segment and $16 million [$14 million after tax] for its Body Exteriors & Structures segment . During 2020, the Company recorded restructuring and impairment charges of $123 million [$118 million after tax] for its Body Exteriors & Structures segment, $115 million [$90 million after tax] for its Power & Vision segment and $31 million [$29 million after tax] for its Seating Systems segment. Of the total charges, $168 million was related to restructuring plans implemented by the Company to right-size COVID-19 [b] Net losses (gains) on investments For the year ended December 31, 2021, the Company recorded unrealized losses of $6 million [$12 million after tax] on the revaluation of public and private equity investments and unrealized gains of $4 million [$3 million after tax] related to the revaluation of public company warrants [note 7]. During 2020, the Company recorded unrealized gains of $34 million [$29 million after tax] on the revaluation of its private equity investments and a non-cash [c] Merger agreement termination fee In the fourth quarter of 2021, Veoneer, Inc. [“Veoneer”] terminated its merger agreement with the Company. In connection with the termination of the merger agreement, Veoneer paid Magna a termination fee which, net of the Company’s associated transaction costs, amounted to $100 million [ $75 million after tax]. [d] Gain on business combinations During 2021, the Company acquired a 65% equity interest and a controlling financial interest in Chongqing Hongli Zhixin Scientific Technology Development Group LLC (“Hongli”). [note 5] The Company also recorded a gain of $18 million [$18 million after tax] in connection with the distribution of substantially all of the assets of the Company’s European joint venture, Getrag Ford Transmission GmbH [note 5]. [e] Loss on sale of business During 2021, the Company sold three Body Exteriors & Structures operations in Germany. Under the terms of the arrangement, the Company provided the buyer with $41 million of funding, resulting in a loss on disposal of $75 million [$75 million after tax]. [f] Impairment of equity-accounted investments The following table summarizes the impairment charges and loss on sale recorded for certain investments in our Power & Vision segment in 2020: 2020 Impairment of Getrag (Jiangxi) Transmission Co., Ltd. [“GJT”] (i) $ 337 Loss on sale and impairment of Dongfeng Getrag Transmission Co. Ltd. [“DGT”] (ii) 10 Total impairments and loss on sale of equity-accounted investments 347 Tax effect on Other Expense, net (53 ) Loss attributable to non-controlling (75 ) Non-cash $ 219 (i) An impairment for GJT was recorded based on pricing pressure in the China market as well as additional declines in volume and sales projections for the foreseeable future. In the fourth quarter of 2020, the governing documents related to GJT were revised, providing the Company with a controlling financial interest. As a result, the Company began consolidating GJT on December 29, 2020, the effective date of the amendments [note 5]. (ii) During 2020, we recorded a $10 million [$10 million after tax] loss on the sale of our 50% interest in DGT. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. EARNINGS PER SHARE Earnings per share are computed as follows: 2021 2020 Basic earnings per Common Share: Net income attributable to Magna International Inc. $ 1,514 $ 757 Weighted average number of Common Shares outstanding during the year 300.6 299.7 Basic earnings per Common Share $ 5.04 $ 2.52 Diluted earnings per Common Share [a]: Net income attributable to Magna International Inc. $ 1,514 $ 757 Weighted average number of Common Shares outstanding during the year 300.6 299.7 Stock options and restricted stock 2.2 0.7 302.8 300.4 Diluted earnings per Common Share $ 5.00 $ 2.52 [a] Diluted earnings per Common Share exclude 0.4 million [2020 – 4.7 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. two-class |
Details of Cash From Operating
Details of Cash From Operating Activities | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Cash From Operating Activities | 4. DETAILS OF CASH FROM OPERATING ACTIVITIES [a] Cash, cash equivalents and restricted cash equivalents consist of: 2021 2020 Bank term deposits and bankers’ acceptances $ 1,984 $ 1,987 Cash 964 1,281 Cash and cash equivalents $ 2,948 $ 3,268 Restricted cash equivalents included in prepaid expenses (i) — 106 $ 2,948 $ 3,374 (i) In connection with the repayment of the credit facility, the deposit included in prepaid expenses was released [note 1 5 ] [b] Items not involving current cash flows: 2021 2020 Depreciation and amortization $ 1,512 $ 1,366 Amortization of other assets included in cost of goods sold 255 215 Deferred revenue amortization (188 ) (89 ) Other non-cash 25 66 Future tax (recovery) expenses (76 ) 17 Equity income less than (in excess of) dividends received 11 (10 ) Impairment charges — 435 Non-cash [note 2] 37 (24 ) $ 1,576 $ 1,976 [c] Changes in operating assets and liabilities: 2021 2020 Accounts receivable $ 114 $ (42 ) Inventories (653 ) 37 Prepaid expenses and other (39 ) (12 ) Accounts payable 160 274 Accrued salaries and wages 58 (8 ) Other accrued liabilities 48 398 Income taxes payable 123 (22 ) $ (189 ) $ 625 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 5. BUSINESS COMBINATIONS On March 1, 2021, substantially all of the assets of the Company’s European joint venture with Ford Motor Company [“Ford”], GFT, were distributed to either Ford or the Company, which resulted in the Company recording an $18 million gain [note 2] non-controlling On January 1, 2021, the Company acquired a 65% equity interest and a controlling financial interest in Hongli, a China-based supplier of seat structures and related systems. The acquisition included an additional 15% equity interest in two entities that were previously equity accounted for by the Company. On the change in basis of accounting, the Company recognized a $22 million gain [note 2] During 2020, the governing documents related to GJT were revised to extend the term of the venture and grant additional rights to the Company, resulting in a controlling financial interest. Accordingly, the Company recorded a $239 million disposition of its equity method investment and began consolidating the entity on December 29, 2020. The transaction was accounted for as a business combination, which primarily resulted in the recognition of cash of $98 million, fixed assets of $211 million, minority interest of $122 million and other net assets of $52 million. The change in the method of accounting for the entity did not have an impact on the Company’s results of operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. INVENTORIES Inventories consist of: 2021 2020 Raw materials and supplies $ 1,598 $ 1,226 Work-in-process 400 340 Finished goods 506 470 Tooling and engineering 1,465 1,408 $ 3,969 $ 3,444 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, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 7. INVESTMENTS 2021 2020 Equity method investments [a] $ 1,031 $ 677 Public and private equity investments 358 270 Warrants [b] 204 — $ 1,593 $ 947 [a] The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]: 2021 2020 LG Magna e-Powertrain [i] 49.0 % $ 481 $ — Litens Automotive Partnership [ii] 76.7 % $ 291 $ 273 Hubei HAPM Magna Seating Systems Co., Ltd. 49.9 % $ 127 $ 121 [i] On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows: Equity method goodwill $ 118 Intangible assets 47 Fixed assets 47 Deferred tax liabilities (24 ) Total basis difference included in equity method investments $ 188 The basis differences for intangible and fixed assets are being amortized over an average estimated useful life of 8 years. [ii] The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. [b] In October 2020, the Company signed agreements with Fisker Inc. [“Fisker”] for the platform sharing, engineering and manufacturing of the Fisker Ocean SUV. In connection with the arrangement, Fisker issued approximately 19.5 million penny warrants to the Company to purchase common stock, which vest based on specified milestones. During was and is being Cumulative unrealized gains on equity securities were 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 2021 2020 Current assets $ 1,825 $ 1,510 Non-current $ 1,838 $ 1,748 Current liabilities $ 1,269 $ 873 Long-term liabilities $ 450 $ 835 Summarized Income Statements 2021 2020 Sales $ 3,303 $ 3,384 Cost of goods sold & expenses 3,156 3,140 Net income $ 147 $ 244 Sales to equity method investees were approximately $65 million and $104 million for the years ended December 31, 2021 and 2020, respectively. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 8. FIXED ASSETS Fixed assets consist of: 2021 2020 Cost Land $ 198 $ 195 Buildings 2,719 2,709 Machinery and equipment 17,355 17,217 20,272 20,121 Accumulated depreciation Buildings (1,223 ) (1,147 ) Machinery and equipment (10,756 ) (10,499 ) $ 8,293 $ 8,475 Included in the cost of fixed assets are construction in progress expenditures of $1.0 billion [2020 - $1.0 billion] |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. GOODWILL The following is a continuity of the Company’s goodwill by segment: Body Exteriors & Structures Power Seating Complete Total Balance, December 31, 2019 $ 453 $ 1,243 $ 169 $ 111 $ 1,976 Acquisitions 4 — 1 — 5 Foreign exchange and other 21 77 6 10 114 Balance, December 31, 2020 478 1,320 176 121 2,095 Acquisitions — 29 93 — 122 Foreign exchange and other (7 ) (80 ) 1 (9 ) (95 ) Balance, December 31, 2021 $ 471 $ 1,269 $ 270 $ 112 $ 2,122 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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: 2021 2020 Canadian statutory income tax rate 26.5 % 26.5 % Tax on repatriation of foreign earnings 2.9 4.4 Net effect of losses not benefited 1.8 8.1 Re-measurement 1.5 — Foreign exchange re-measurement 1.2 3.4 Impairment of investments [note 2] — 8.6 Manufacturing and processing profits deduction (0.2 ) (0.1 ) Valuation allowance on deferred tax assets (0.7 ) 0.6 Earnings of equity accounted investees (1.3 ) (3.6 ) Reserve for uncertain tax positions (2.5 ) (4.0 ) Research and development tax credits (3.4 ) (3.7 ) Foreign rate differentials (3.9 ) (7.3 ) Others (1.6 ) (0.2 ) Effective income tax rate 20.3 % 32.7 % [i] Re-measurement . [ii] Includes foreign exchange gains reported on U.S. dollar denominated assets for Mexican tax purposes that are not recognized for GAAP purposes and losses related to the re-measurement [b] The details of income before income taxes by jurisdiction are as follows: 2021 2020 Canadian $ 220 $ 93 Foreign 1,728 913 $ 1,948 $ 1,006 [c] The details of the income tax provision are as follows: 2021 2020 Current Canadian $ 63 $ 10 Foreign 408 302 471 312 Deferred Canadian (4 ) 17 Foreign (72 ) — (76 ) 17 $ 395 $ 329 [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2021 2020 Tax on undistributed foreign earnings $ 43 $ 23 Re-measurement 28 — Liabilities currently not deductible for tax 5 (2 ) Change in valuation allowance on deferred tax assets (13 ) 6 Net tax losses benefited (22 ) (38 ) Tax depreciation (less than) in excess of book depreciation (30 ) 50 Book amortization in excess of tax amortization (58 ) (17 ) Others (29 ) (5 ) $ (76 ) $ 17 [e] Deferred tax assets and liabilities consist of the following temporary differences: 2021 2020 Assets Tax benefit of loss carryforwards $ 766 $ 735 Operating lease liabilities 409 469 Liabilities currently not deductible for tax 219 259 Tax credit carryforwards 84 64 Unrealized loss on foreign exchange hedges and retirement liabilities 59 87 Others 30 46 1,567 1,660 Valuation allowance against tax benefit of loss carryforwards (586 ) (569 ) Other valuation allowance (125 ) (206 ) $ 856 $ 885 Liabilities Operating lease right-of-use 415 470 Tax depreciation in excess of book depreciation 228 239 Tax on undistributed foreign earnings 206 163 Unrealized gain on remeasurement of investments 12 11 Unrealized gain on foreign exchange hedges and retirement liabilities 11 17 Other assets book value in excess of tax values 3 65 875 965 Net deferred tax liabilities $ (19 ) $ (80 ) The net deferred tax liabilities are presented on the consolidated balance sheet in the following categories: 2021 2020 Long-term deferred tax assets $ 421 $ 372 Long-term deferred tax liabilities (440 ) (452 ) $ (19 ) $ (80 ) [f] Deferred income taxes have not been provided on $4.9 [g] Income taxes paid in cash [net of refunds] were $341 million for the year ended December 31, 2021 [2020 - $336 million]. [h] As of December 31, 2021, the Company had domestic and foreign operating loss carryforwards of $3.0 billion and tax credit carryforwards of $84 million. Approximately $1.9 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2022 and 2041. [i] As at December 31, 2021 and 2020, the Company’s gross unrecognized tax benefits were $142 million and $182 million, respectively [excluding interest and penalties], of which $126 million and $165 million, respectively, if recognized, would affect the Company’s effective tax rate. The gross unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate due primarily to the impact of the valuation allowance on deferred tax assets. A summary of the changes in gross unrecognized tax benefits is as follows: 2021 2020 Balance, beginning of year $ 182 $ 192 Increase based on tax positions related to current year 11 27 Increase based on tax positions of prior years 2 — Increase related to acquisitions — 11 Settlements (5 ) (1 ) Foreign currency translation (5 ) 5 Statute expirations (43 ) (52 ) $ 142 $ 182 As at December 31, 2021 and 2020, the Company had recorded interest and penalties on the unrecognized tax benefits of $26 million and $43 million, respectively, which reflects a decrease of $17 and $3 million in expenses related to changes in its reserves for interest and penalties in 2021 and 2020, respectively. 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 or 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 $73 million, of which $66 million, if recognized, would affect its effective tax rate. The Company considers its significant tax jurisdictions to include Canada, the United States, Austria, Germany, Mexico and China. With few exceptions, the Company remains subject to income tax examination in Germany for years after 2007, China, Mexico and Austria for years after 2015, Canada for years after 2016 and the |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 11. INTANGIBLE ASSETS Intangible assets consist of: Remaining weighted average useful life in years 2021 2020 Cost Customer relationship intangibles 7 $ 386 $ 348 Computer software 1 463 463 Patents and licenses 7 314 282 1,163 1,093 Accumulated depreciation Customer relationship intangibles (175 ) (150 ) Computer software (360 ) (361 ) Patents and licenses (135 ) (101 ) $ 493 $ 481 The Company recorded $114 million and $85 million of amortization expense related to finite-lived intangible assets for the years ended December 31, 2021 and 2020, respectively. The Company currently estimates annual amortization expense to be $111 million for 2022, $77 million for 2023, $59 million for 2024, $54 million for 2025 and $51 million for 2026. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 12. OTHER ASSETS Other assets consist of: 2021 2020 Preproduction costs related to long-term supply agreements $ 668 $ 694 Long-term receivables 184 209 Unrealized gain on cash flow hedges [note 21] 11 16 Pension overfunded status [note 17[a]] 41 4 Other 58 40 $ 962 $ 963 |
Employee Equity and Profit Part
Employee Equity and Profit Participation Program | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity and Profit Participation Program | 13. EMPLOYEE EQUITY AND PROFIT PARTICIPATION PROGRAM During the year ended December 31, 2021, 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 $38 million [2020 - $38 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2021, the trust’s indebtedness to Magna was $38 million [2020 - $38 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, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Warranty | 14. WARRANTY The following is a continuity of the Company’s warranty accruals: 2021 2020 Balance, beginning of year $ 284 $ 252 Expense, net 82 164 Settlements (111 ) (165 ) Business combination 2 21 Foreign exchange and other (10 ) 12 $ 247 $ 284 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 15. DEBT Short-term borrowings [a] Credit Facilities The Company had an agreement for a credit facility that was drawn in euros that was secured with a USD cash deposit of 105% of the outstanding balance. During 2021, all amounts drawn under the credit facility were repaid and the facility was terminated [note 4] On December 10, 2021, the Company amended its U.S. $750 million 364 day syndicated revolving credit facility, including an extension of the maturity date to December 9, 2022. The facility can be drawn in U.S. dollars or Canadian dollars. As of December 31, 2021, the Company has not borrowed any funds under this credit facility. [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 up to a maximum aggregate amount of U.S. $1 billion. The U.S. Program is guaranteed by the Company’s existing global credit facility. There were no amounts outstanding as at December 31, 2021 and 2020. 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 at December 31, 2021 and 2020. Long-term borrowings [a] The Company’s long-term debt, net of unamortized issuance costs, is substantially uncollateralized and consists of the following: 2021 2020 Senior Notes [note 15 [c]] Cdn$425 million Senior Notes due 2022 at 3.100% $ 336 $ 333 €550 million Senior Notes due 2023 at 1.900% 625 671 $750 million Senior Notes due 2024 at 3.625% 748 748 $650 million Senior Notes due 2025 at 4.150% 647 646 €600 million Senior Notes due 2027 at 1.500% 681 730 $750 million Senior Notes due 2030 at 2.450% 742 741 Bank term debt at a weighted average interest rate of approximately 4.86% [20 20 187 189 Government loans at a weighted average interest rate of approximately 0.13% [2020 – 1.54%], denominated primarily in euro, Canadian dollar and Brazilian real 8 32 Other 19 12 3,993 4,102 Less due within one year 455 129 $ 3,538 $ 3,973 [b] Future principal repayments on long-term debt are estimated to be as f o 2022 $ 455 2023 692 2024 771 2025 651 2026 3 Thereafter 1,437 $ 4,009 [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] On April 28, 2021, the Company amended its $2.75 billion revolving credit facility, including an extension of the maturity date for $2.6 billion from June 24, 2024 to June 24, 2026. The facility includes a $200 million Asian tranche, a $150 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. As a 21 and 2020 , and $13 million was outstandin g , respectively. [e] Interest expense, net includes: 2021 2020 Interest expense Current $ 12 $ 9 Long-term 110 96 122 105 Interest income (44 ) (19 ) Interest expense, net $ 78 $ 86 [f] Interest paid in cash was $122 million |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 16. LEASES The Company has entered into leases primarily for real estate, manufacturing equipment and vehicles with terms that range from 1 year to 8.5 years, excluding land use rights which generally extend over 90 years. These leases often include options to extend the term of the lease, most often for a period of 5 years. 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: 2021 Operating lease expense $ 325 Short-term lease expense 16 Variable lease expense 26 Total lease expense $ 367 Supplemental information related to the Company’s operating leases was as follows: 2021 Operating cash flows – cash paid $ 373 New right-of-use $ 91 Weighted-average remaining lease term 9 years Weighted-average discount rate 4.5 % At December 31, 2021, the Company had commitments under operating leases requiring annual payments as follows: Total 2022 $ 300 2023 268 2024 234 2025 205 2026 176 2027 and thereafter 835 2,018 Less: amount representing interest 338 Total lease liabilities $ 1,680 Current operating liabilities $ 274 Non-current 1,406 Total lease liabilities $ 1,680 As of December 31, 2021, the Company ha d d 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, 2021 | |
Postemployment Benefits [Abstract] | |
Long-Term Employee Benefit Liabilities | 17. LONG-TERM EMPLOYEE BENEFIT LIABILITIES Long-term employee benefit liabilities consist of: 2021 2020 Defined benefit pension plans and other [a] $ 196 $ 216 Termination and long-term service arrangements [b] 456 468 Retirement medical benefits plans [c] 26 29 Other long-term employee benefits 22 16 Long-term employee benefit obligations $ 700 $ 729 [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: 2021 2020 Projected benefit obligation Discount rate 2.4 % 2.1 % Rate of compensation increase 2.7 % 2.4 % Net periodic benefit cost Discount rate 2.3 % 2.8 % Rate of compensation increase 2.6 % 2.4 % Expected return on plan assets 4.1 % 4.6 % Information about the Company’s defined benefit pension plans is as follows: 2021 2020 Projected benefit obligation Beginning of year $ 731 $ 659 Current service cost 10 10 Interest cost 12 17 Actuarial (gains) losses and changes in actuarial assumptions (37 ) 43 Benefits paid (27 ) (23 ) Divestiture 11 — Foreign exchange (11 ) 25 End of year 689 731 Plan assets at fair value [i] Beginning of year 517 478 Return on plan assets 25 42 Employer contributions 12 9 Benefits paid (23 ) (18 ) Foreign exchange 1 6 End of year 532 517 Ending funded status – Plan deficit $ 157 $ 214 Amounts recorded in the consolidated balance sheet Non-current [note 12] $ (41 ) $ (4 ) Current liability 2 2 Non-current 196 216 Net amount $ 157 $ 214 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (112 ) $ (158 ) Net periodic benefit cost Current service cost $ 10 $ 10 Interest cost 12 17 Return on plan assets (21 ) (21 ) Actuarial losses 8 5 Net periodic benefit cost $ 9 $ 11 [i] The asset allocation of the Company’s defined benefit pension plans at December 31, 2021 and the target allocation for 2022 is as follows: 2022 2021 Fixed income securities 55-80 % 63 % Equity securities 25-50 % 33 % 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. 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-term 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-term service benefit obligations and net periodic benefit cost are as follows: 2021 2020 Discount rate 2.4 % 2.1 % Rate of compensation increase 3.1 % 3.1 % Information about the Company’s termination and long-term service arrangements is as follows: 2021 2020 Projected benefit obligation Beginning of year $ 478 $ 446 Current service cost 23 32 Interest cost 9 8 Actuarial losses (gains) and changes in actuarial assumptions 10 (13 ) Benefits paid (23 ) (27 ) Foreign exchange (30 ) 32 Ending funded status – Plan deficit $ 467 $ 478 Amounts recorded in the consolidated balance sheet Current liability $ 11 $ 10 Non-current 456 468 Net amount $ 467 $ 478 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (112 ) $ (106 ) Net periodic benefit cost Current service cost $ 23 $ 32 Interest cost 9 8 Actuarial losses 4 6 Net periodic benefit cost $ 36 $ 46 [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: 2021 2020 Retirement medical benefit obligations 2.8 % 2.4 % Net periodic benefit cost 2.4 % 3.1 % Health care cost inflation 6.4 % 6.6 % Information about the Company’s retirement medical benefits plans are as follows: 2021 2020 Projected benefit obligation Beginning of year $ 30 $ 29 Interest cost 1 1 Actuarial (gains) losses and changes in actuarial assumptions (3 ) 1 Benefits paid (1 ) (1 ) Ending funded status – Plan deficit $ 27 $ 30 Amounts recorded in the consolidated balance sheet Current liability $ 1 $ 1 Non-current 26 29 Net amount $ 27 $ 30 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial gains 10 6 Total accumulated other comprehensive income $ 10 $ 6 Net periodic benefit cost Interest cost $ 1 $ 1 Actuarial gains (1 ) (1 ) Net periodic benefit cost $ — $ — [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2022 $ 13 $ 11 $ 1 $ 25 Expected benefit payments: 2022 $ 26 $ 11 $ 1 $ 38 2023 25 14 1 40 2024 26 17 1 44 2025 27 19 2 48 2026 29 25 2 56 Thereafter 162 131 8 301 $ 295 $ 217 $ 15 $ 527 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 18. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of: 2021 2020 Long-term portion of income taxes payable $ 147 $ 199 Deferred revenue 127 52 Asset retirement obligation 37 39 Long-term portion of fair value of hedges [note 21] 8 5 Other 57 37 $ 376 $ 332 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Capital Stock | 19. CAPITAL STOCK [a] At December 31, 2021, 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 10, 2021, 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 29.9 million Magna Common Shares [the “2021 Bid”], representing approximately 10% of the Company’s public float of Common Shares. The Bid commenced on November 15, 2021 and will terminate no later than November 14, 2022. Previously, the Company had Normal Course Issuer Bids in place for the 12 month periods beginning in November 2020 and 2019. The following is a summary of the Normal Course Issuer Bids [number of shares in the table below a r 2021 2020 Shares purchased Cash amount Shares Cash 2019 Bid — $ — 5,077,882 $ 203 2020 Bid 3,318,523 301 — — 2021 Bid 2,673,800 216 — — 5,992,323 $ 517 5,077,882 $ 203 [c] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 3, 2022 were exercised or converted: Common Shares 296,643,367 Stock options [i] 6,090,512 302,733,879 [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, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 20. ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a continuity schedule of accumulated other comprehensive loss: 2021 2020 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (551 ) $ (907 ) Net unrealized (loss) gain (187 ) 348 Repurchase of shares under normal course issuer bids [note 19] 3 8 Balance, end of year (735 ) (551 ) Accumulated net unrealized gain on cash flow hedges [b] Balance, beginning of year 42 38 Net unrealized gains (loss) 34 (34 ) Reclassification of net (loss) gain to net income [a] (52 ) 38 Balance, end of year 24 42 Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (224 ) (221 ) Net unrealized gains (loss) 26 (11 ) Reclassification of net gain to net income [a] 9 8 Balance, end of year (189 ) (224 ) Total accumulated other comprehensive loss [c] $ (900 ) $ (733 ) [a] The effects on net income of amounts reclassified from AOCL, with presentation location, were as follows: 2021 2020 Cash flow hedges Sales $ 49 $ (30 ) Cost of sales 21 (21 ) Income tax (18 ) 13 Net of tax 52 (38 ) Other long-term liabilities Cost of sales (11 ) (9 ) Income tax 2 1 Net of tax (9 ) (8 ) Total gain (loss) reclassified to net income $ 43 $ (46 ) [b] The amount of income tax benefit that has been allocated to each component of other comprehensive loss is as follows: 2021 2020 Accumulated net unrealized loss on translation of net investment in foreign operations $ 4 $ 7 Accumulated net unrealized gain on cash flow hedges Balance, beginning of year (15 ) (14 ) Net unrealized (gain) loss (11 ) 12 Reclassification of net loss to net income 18 (13 ) Balance, end of year (8 ) (15 ) Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 35 35 Net unrealized loss (8 ) 1 Reclassification of net loss to net income (2 ) (1 ) Balance, end of year 25 35 Total income tax benefit $ 21 $ 27 [c] The amount of other comprehensive loss that is expected to be reclassified to net income during 2022 is $26 million. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 21. FINANCIAL INSTRUMENTS [a] Foreign exchange contracts At December 31, 2021, 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 2022 176 1.26579 7,453 0.04619 2022 (851 ) 0.78014 (6 ) 21.20347 2023 12 1.28866 4,835 0.04394 2023 (457 ) 0.78021 (8 ) 23.51812 2024 — — 1,027 0.04208 2024 (236 ) 0.77730 — — 2025 (62 ) 0.77950 — — (1,418 ) 13,301 For euros Buy (Sell) U.S Weighted Czech Weighted 2022 137 0.84650 4,952 0.03808 2022 (121 ) 1.18728 — — 2023 53 0.82876 3,196 0.03739 2023 (74 ) 1.19265 — — 2024 11 0.82746 1,227 0.03652 2024 (18 ) 1.21729 — — 2025 (3 ) 1.18615 — — (15 ) 9,375 Based on forward foreign exchange rates as at December 31, 2021 for contracts with similar remaining terms to maturity, the pre-tax were [note 20] 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: 2021 2020 Financial assets Cash, cash equivalents and restricted cash equivalents $ 2,948 $ 3,374 Accounts receivable 6,307 6,394 Warrants and public and private equity investments 561 267 Long-term receivables included in other assets [note 12] 184 209 $ 10,000 $ 10,244 Financial liabilities Long-term debt (including portion due within one year) $ 3,993 $ 4,102 Accounts payable 6,465 6,266 $ 10,458 $ 10,368 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses $ 34 $ 52 Other assets 11 16 Other accrued liabilities (12 ) (11 ) Other long-term liabilities (8 ) (5 ) $ 25 $ 52 [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 amounts in consolidated Gross amounts not offset in consolidated Net December 31, 2021 Assets $ 45 $ 14 $ 31 Liabilities $ (20 ) $ (14 ) $ (6 ) December 31, 2020 Assets $ 68 $ 13 $ 55 Liabilities $ (16 ) $ (13 ) $ (3 ) [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, accounts receivable, 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.] Warrants The Company estimates the value of its warrants based on the quoted prices in the active market for Fisker’s common shares. [Level 2 inputs based on the GAAP fair value hierarchy.] Term debt The Company’s term debt includes $455 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheets 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, 2021, the net book value of the Company’s Senior Notes was $3.8 billion and the estimated fair value was $4.0 billion. [e] Credit risk The Company’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, accounts receivable, and foreign exchange and commodity forward contracts with positive fair values. Cash and 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 major financial institutions. 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, 2021, sales to the Company’s six largest customers represented 78% [2020 - 78%] of the Company’s total sales; and substantially all of its sales are to customers in which the Company has ongoing contractual relationships. In determining the allowance for expected credit losses, the Company considers changes in customer’s credit ratings, liquidity, customer’s historical payments and loss experience, current economic conditions and the Company’s expectations of future economic conditions. [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 21[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. [h] Equity price risk Public equity securities and warrants The Company’s public equity securities and warrants are subject to market price risk due to the risk of loss in value that would result from a decline in the market price of the common shares or underlying common shares. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 22. 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, had 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. The Company’s policy is to comply with all applicable laws, including antitrust and competition laws. Based on a previously completed global review of legacy antitrust risks which led to a September 2020 settlement with the European Commission where Magna received full immunity regarding two separate bilateral cartels involving the supply of closure systems, Magna does not currently anticipate any material liabilities. However, we could be subject to restitution settlements, civil proceedings, reputational damage and other consequences, including as a result of the matters specifically referred to above. [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 14] |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segmented Information | 23. 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 Systems and Complete Vehicles. These segments have been determined on the basis of technological opportunities, product similarities, and market and operating factors, and are also the Company’s reportable segments. 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: 2021 Depreciation Equity Total External Adjusted and loss sales sales EBIT amortization (income) Body Exteriors & Structures $ 14,477 $ 14,196 $ 820 $ 743 $ 13 Power & Vision 11,342 11,129 738 554 (134 ) Seating Systems 4,891 4,851 152 92 (9 ) Complete Vehicles 6,106 6,057 287 103 (10 ) Corporate & Other [i] (574 ) 9 67 20 (8 ) Total Reportable Segments $ 36,242 $ 36,242 $ 2,064 $ 1,512 $ (148 ) 2020 Depreciation Total External Adjusted and Equity sales sales EBIT amortization income Body Exteriors & Structures $ 13,550 $ 13,292 $ 817 $ 727 $ — Power & Vision 9,722 9,553 495 464 (179 ) Seating Systems 4,455 4,433 107 73 (6 ) Complete Vehicles 5,415 5,363 274 84 (3 ) Corporate & Other [i] (495 ) 6 (17 ) 18 (1 ) Total Reportable Segments $ 32,647 $ 32,647 $ 1,676 $ 1,366 $ (189 ) 2021 Fixed Fixed Net assets, asset assets Investments Goodwill net additions Body Exteriors & Structures $ 7,349 $ 15 $ 471 $ 4,599 $ 711 Power & Vision 6,066 735 1,269 2,620 522 Seating Systems 1,379 147 270 485 73 Complete Vehicles 623 93 112 501 54 Corporate & Other [i] 813 603 — 88 12 Total Reportable Segments $ 16,230 $ 1,593 $ 2,122 $ 8,293 $ 1,372 2020 Fixed Fixed Net assets, asset assets Investments Goodwill net additions Body Exteriors & Structures $ 7,536 $ 31 $ 478 $ 4,725 $ 581 Power & Vision 5,529 371 1,320 2,666 440 Seating Systems 1,118 144 176 418 70 Complete Vehicles 671 80 121 578 34 Corporate & Other [i] 710 321 — 88 20 Total Reportable Segments $ 15,564 $ 947 $ 2,095 $ 8,475 $ 1,145 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. [b] The following table reconciles Net income from operations to Adjusted EBIT: 2021 2020 Net Income $ 1,553 $ 677 Add: Interest expense, net 78 86 Other expense, net 38 584 Income taxes 395 329 Adjusted EBIT $ 2,064 $ 1,676 [c] The following table shows Net Assets for the Company’s reporting segments: 2021 2020 Total Assets $ 29,086 $ 28,605 Deduct assets not included in segment net assets: Cash and cash equivalents (2,948 ) (3,268 ) Deferred tax assets (421 ) (372 ) Long-term receivables from joint venture partners (15 ) (66 ) Deduct liabilities included in segment net assets: Accounts payable (6,465 ) (6,266 ) Accrued salaries and wages (851 ) (815 ) Other accrued liabilities (2,156 ) (2,254 ) Segment Net Assets $ 16,230 $ 15,564 [d] The following table aggregates external revenues by customer as follows: 2021 2020 BMW $ 5,680 $ 4,714 Daimler AG 5,032 4,596 General Motors 4,884 4,921 Stellantis 4,683 3,958 Ford Motor Company 4,205 4,004 Volkswagen 3,717 3,510 Other 8,041 6,944 $36,242 $32,647 [e] The following table summarizes external revenues and long-lived assets by geographic region: External Sales Fixed Assets, Net 2021 2020 2021 2020 North America United States $ 8,612 $ 8,210 $ 1,686 $ 1,610 Canada 4,253 4,144 960 974 Mexico 3,833 3,359 1,210 1,247 16,698 15,713 3,856 3,831 Europe Austria 7,661 6,817 771 867 Germany 3,989 4,366 972 1,095 Czech Republic 931 912 274 293 Poland 610 535 220 221 Russia 371 345 110 120 Spain 331 323 79 82 United Kingdom 344 292 208 214 Italy 296 256 237 265 Turkey 293 247 6 9 France 262 142 58 62 Slovakia 204 126 273 283 Other Europe 139 111 208 222 15,431 14,472 3,416 3,733 Asia Pacific China 3,534 1,921 875 758 India 147 79 83 89 Other Asia Pacific 21 31 7 6 3,702 2,031 965 853 Rest of World 411 431 56 58 $ 36,242 $ 32,647 $ 8,293 $ 8,475 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 24. SUBSEQUENT EVENT NORMAL COURSE ISSUER BID Subsequent to December 31, 2021, we purchased 1,600,500 Common Shares for cancellation and 165,773 Common Shares to satisfy stock-based compensation awards each under our existing normal course issuer bid for cash consideration of $132 million. SENIOR NOTES REDEMPTION On February 28, 2022, the Company redeemed for cash the entire aggregate principle amount outstanding of the Cdn$425 million 3.100% Senior Notes due 2022 [“the Notes”]. The redemption price for the Notes was Cdn$430 million, resulting in a loss on early extinguishment of Cdn$5 million that reflects the payment of the premium to redeem the Notes and the write-off of the unamortized debt issuance costs. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 is the primary beneficiary. The Company presents non-controlling |
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. |
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 net 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 derivative instruments are designated and qualify as cash flow hedges, the changes in their fair values are recorded in other comprehensive income. Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized immediately in net income based on the nature of the underlying transaction. Amounts accumulated in other comprehensive loss or income are reclassified to net income in the period in which the hedged item affects net income. 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 net 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 which 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 using the best information available, which may include cash flow projections or other available market data 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 % for buildings, % to % for general purpose equipment and % to % for special purpose equipment. 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 |
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. |
Tooling and Pre-Production Engineering 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 net 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. The Company assesses 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 No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are considered to be reinvested for the foreseeable future. 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 |
Employee future benefit plans | Employee future benefit plans The cost of providing benefits through defined benefit pensions, lump sum termination and long-term service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated The funded status of the plans is measured as the difference between the fair value of the plan assets and the projected benefit obligation [“PBO”]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans is recorded 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 a purchase order and 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 Revenue is recognized at the 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 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, some of which may be implicitly contracted for. For these 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 plus a margin approach and amounts related to revenue are recognized 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 is 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. For the year ended December 31, 2021, total tooling and engineering sales were $783 million [2020 - $739 million]. 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. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. |
Contract Assets and Liabilities | Contract Assets and Liabilities The Company’s contract assets relate to the right to consideration for work completed but not yet billed and are included in Accounts Receivable. Amounts may not exceed their net realizable value. As at December 31, 2021, the Company’s unbilled accounts receivable balance was $528 million [2020 - $425 million]. 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, 2021 and 2020, the contract liability balances were $273 million and $214 million, respectively. During the year ended December 31, 2021 and 2020, the Company recognized $140 million and $81 million, respectively, of previously recorded contract liabilities into revenue as performance obligations were satisfied |
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 may be deferred and recognized in the consolidated statement of income over the period necessary to match them with the costs that they are intended to compensate and are presented as a reduction of the related expense. 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 similar to a government grant and 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, 2021 and 2020, research and development costs charged to expense were $634 million and $830 million, respectively. |
Restructuring | Restructuring Restructuring costs may include employee termination benefits, as well as other costs resulting from restructuring actions. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements or statutory requirements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when liabilities are determined to be probable and estimable. Additional elements of severance and termination benefits associated with nonrecurring benefits may be recognized rateably over each employee’s required future service period. All other restructuring costs are expensed as incurred. |
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. |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net consists of: 2021 2020 Restructuring and impairments [a] $ 101 $ 269 Net losses (gains) on investments [b] 2 (32 ) Merger agreement termination fee [c] (100 ) — Gain on business combinations [d] (40 ) — Loss on sale of business [e] 75 — Impairment of equity-accounted investments [f] — 347 Other expense, net $ 38 $ 584 |
Impairments and Loss on Sale of Equity-Accounted Investments | The following table summarizes the impairment charges and loss on sale recorded for certain investments in our Power & Vision segment in 2020: 2020 Impairment of Getrag (Jiangxi) Transmission Co., Ltd. [“GJT”] (i) $ 337 Loss on sale and impairment of Dongfeng Getrag Transmission Co. Ltd. [“DGT”] (ii) 10 Total impairments and loss on sale of equity-accounted investments 347 Tax effect on Other Expense, net (53 ) Loss attributable to non-controlling (75 ) Non-cash $ 219 (i) An impairment for GJT was recorded based on pricing pressure in the China market as well as additional declines in volume and sales projections for the foreseeable future. In the fourth quarter of 2020, the governing documents related to GJT were revised, providing the Company with a controlling financial interest. As a result, the Company began consolidating GJT on December 29, 2020, the effective date of the amendments [note 5]. (ii) During 2020, we recorded a $10 million [$10 million after tax] loss on the sale of our 50% interest in DGT. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Earnings per share are computed as follows: 2021 2020 Basic earnings per Common Share: Net income attributable to Magna International Inc. $ 1,514 $ 757 Weighted average number of Common Shares outstanding during the year 300.6 299.7 Basic earnings per Common Share $ 5.04 $ 2.52 Diluted earnings per Common Share [a]: Net income attributable to Magna International Inc. $ 1,514 $ 757 Weighted average number of Common Shares outstanding during the year 300.6 299.7 Stock options and restricted stock 2.2 0.7 302.8 300.4 Diluted earnings per Common Share $ 5.00 $ 2.52 [a] Diluted earnings per Common Share exclude 0.4 million [2020 – 4.7 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. two-class |
Details of Cash From Operatin_2
Details of Cash From Operating Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Components of Cash, Cash Equivalents and Restricted Cash Equivalents | [a] Cash, cash equivalents and restricted cash equivalents consist of: 2021 2020 Bank term deposits and bankers’ acceptances $ 1,984 $ 1,987 Cash 964 1,281 Cash and cash equivalents $ 2,948 $ 3,268 Restricted cash equivalents included in prepaid expenses (i) — 106 $ 2,948 $ 3,374 (i) In connection with the repayment of the credit facility, the deposit included in prepaid expenses was released [note 1 5 ] |
Details of Items Not Involving Current Cash Flows | [b] Items not involving current cash flows: 2021 2020 Depreciation and amortization $ 1,512 $ 1,366 Amortization of other assets included in cost of goods sold 255 215 Deferred revenue amortization (188 ) (89 ) Other non-cash 25 66 Future tax (recovery) expenses (76 ) 17 Equity income less than (in excess of) dividends received 11 (10 ) Impairment charges — 435 Non-cash [note 2] 37 (24 ) $ 1,576 $ 1,976 |
Changes in Operating Assets and Liabilities | [c] Changes in operating assets and liabilities: 2021 2020 Accounts receivable $ 114 $ (42 ) Inventories (653 ) 37 Prepaid expenses and other (39 ) (12 ) Accounts payable 160 274 Accrued salaries and wages 58 (8 ) Other accrued liabilities 48 398 Income taxes payable 123 (22 ) $ (189 ) $ 625 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of: 2021 2020 Raw materials and supplies $ 1,598 $ 1,226 Work-in-process 400 340 Finished goods 506 470 Tooling and engineering 1,465 1,408 $ 3,969 $ 3,444 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 (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Investments | 2021 2020 Equity method investments [a] $ 1,031 $ 677 Public and private equity investments 358 270 Warrants [b] 204 — $ 1,593 $ 947 [a] The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]: 2021 2020 LG Magna e-Powertrain [i] 49.0 % $ 481 $ — Litens Automotive Partnership [ii] 76.7 % $ 291 $ 273 Hubei HAPM Magna Seating Systems Co., Ltd. 49.9 % $ 127 $ 121 [i] On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows: Equity method goodwill $ 118 Intangible assets 47 Fixed assets 47 Deferred tax liabilities (24 ) Total basis difference included in equity method investments $ 188 |
Ownership Percentages and Carrying Value Principal Equity Method Investments | [a] The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]: 2021 2020 LG Magna e-Powertrain [i] 49.0 % $ 481 $ — Litens Automotive Partnership [ii] 76.7 % $ 291 $ 273 Hubei HAPM Magna Seating Systems Co., Ltd. 49.9 % $ 127 $ 121 [i] On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain |
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 2021 2020 Current assets $ 1,825 $ 1,510 Non-current $ 1,838 $ 1,748 Current liabilities $ 1,269 $ 873 Long-term liabilities $ 450 $ 835 Summarized Income Statements 2021 2020 Sales $ 3,303 $ 3,384 Cost of goods sold & expenses 3,156 3,140 Net income $ 147 $ 244 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Fixed Assets | Fixed assets consist of: 2021 2020 Cost Land $ 198 $ 195 Buildings 2,719 2,709 Machinery and equipment 17,355 17,217 20,272 20,121 Accumulated depreciation Buildings (1,223 ) (1,147 ) Machinery and equipment (10,756 ) (10,499 ) $ 8,293 $ 8,475 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following is a continuity of the Company’s goodwill by segment: Body Exteriors & Structures Power Seating Complete Total Balance, December 31, 2019 $ 453 $ 1,243 $ 169 $ 111 $ 1,976 Acquisitions 4 — 1 — 5 Foreign exchange and other 21 77 6 10 114 Balance, December 31, 2020 478 1,320 176 121 2,095 Acquisitions — 29 93 — 122 Foreign exchange and other (7 ) (80 ) 1 (9 ) (95 ) Balance, December 31, 2021 $ 471 $ 1,269 $ 270 $ 112 $ 2,122 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: 2021 2020 Canadian statutory income tax rate 26.5 % 26.5 % Tax on repatriation of foreign earnings 2.9 4.4 Net effect of losses not benefited 1.8 8.1 Re-measurement 1.5 — Foreign exchange re-measurement 1.2 3.4 Impairment of investments [note 2] — 8.6 Manufacturing and processing profits deduction (0.2 ) (0.1 ) Valuation allowance on deferred tax assets (0.7 ) 0.6 Earnings of equity accounted investees (1.3 ) (3.6 ) Reserve for uncertain tax positions (2.5 ) (4.0 ) Research and development tax credits (3.4 ) (3.7 ) Foreign rate differentials (3.9 ) (7.3 ) Others (1.6 ) (0.2 ) Effective income tax rate 20.3 % 32.7 % [i] Re-measurement . [ii] Includes foreign exchange gains reported on U.S. dollar denominated assets for Mexican tax purposes that are not recognized for GAAP purposes and losses related to the re-measurement |
Details of Income before Income Taxes by Jurisdiction | [b] The details of income before income taxes by jurisdiction are as follows: 2021 2020 Canadian $ 220 $ 93 Foreign 1,728 913 $ 1,948 $ 1,006 |
Details of Income Tax Provision | [c] The details of the income tax provision are as follows: 2021 2020 Current Canadian $ 63 $ 10 Foreign 408 302 471 312 Deferred Canadian (4 ) 17 Foreign (72 ) — (76 ) 17 $ 395 $ 329 |
Summary of Deferred Income Taxes Provided on Temporary Differences | [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2021 2020 Tax on undistributed foreign earnings $ 43 $ 23 Re-measurement 28 — Liabilities currently not deductible for tax 5 (2 ) Change in valuation allowance on deferred tax assets (13 ) 6 Net tax losses benefited (22 ) (38 ) Tax depreciation (less than) in excess of book depreciation (30 ) 50 Book amortization in excess of tax amortization (58 ) (17 ) Others (29 ) (5 ) $ (76 ) $ 17 |
Summary of Deferred Tax Assets and Liabilities | [e] Deferred tax assets and liabilities consist of the following temporary differences: 2021 2020 Assets Tax benefit of loss carryforwards $ 766 $ 735 Operating lease liabilities 409 469 Liabilities currently not deductible for tax 219 259 Tax credit carryforwards 84 64 Unrealized loss on foreign exchange hedges and retirement liabilities 59 87 Others 30 46 1,567 1,660 Valuation allowance against tax benefit of loss carryforwards (586 ) (569 ) Other valuation allowance (125 ) (206 ) $ 856 $ 885 Liabilities Operating lease right-of-use 415 470 Tax depreciation in excess of book depreciation 228 239 Tax on undistributed foreign earnings 206 163 Unrealized gain on remeasurement of investments 12 11 Unrealized gain on foreign exchange hedges and retirement liabilities 11 17 Other assets book value in excess of tax values 3 65 875 965 Net deferred tax liabilities $ (19 ) $ (80 ) |
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: 2021 2020 Long-term deferred tax assets $ 421 $ 372 Long-term deferred tax liabilities (440 ) (452 ) $ (19 ) $ (80 ) |
Summary of Changes in Gross Unrecognized Tax Benefits | [i] As at December 31, 2021 and 2020, the Company’s gross unrecognized tax benefits were $142 million and $182 million, respectively [excluding interest and penalties], of which $126 million and $165 million, respectively, if recognized, would affect the Company’s effective tax rate. The gross unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate due primarily to the impact of the valuation allowance on deferred tax assets. A summary of the changes in gross unrecognized tax benefits is as follows: 2021 2020 Balance, beginning of year $ 182 $ 192 Increase based on tax positions related to current year 11 27 Increase based on tax positions of prior years 2 — Increase related to acquisitions — 11 Settlements (5 ) (1 ) Foreign currency translation (5 ) 5 Statute expirations (43 ) (52 ) $ 142 $ 182 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consist of: Remaining weighted average useful life in years 2021 2020 Cost Customer relationship intangibles 7 $ 386 $ 348 Computer software 1 463 463 Patents and licenses 7 314 282 1,163 1,093 Accumulated depreciation Customer relationship intangibles (175 ) (150 ) Computer software (360 ) (361 ) Patents and licenses (135 ) (101 ) $ 493 $ 481 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | Other assets consist of: 2021 2020 Preproduction costs related to long-term supply agreements $ 668 $ 694 Long-term receivables 184 209 Unrealized gain on cash flow hedges [note 21] 11 16 Pension overfunded status [note 17[a]] 41 4 Other 58 40 $ 962 $ 963 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Company's Warranty Accruals | The following is a continuity of the Company’s warranty accruals: 2021 2020 Balance, beginning of year $ 284 $ 252 Expense, net 82 164 Settlements (111 ) (165 ) Business combination 2 21 Foreign exchange and other (10 ) 12 $ 247 $ 284 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | [a] The Company’s long-term debt, net of unamortized issuance costs, is substantially uncollateralized and consists of the following: 2021 2020 Senior Notes [note 15 [c]] Cdn$425 million Senior Notes due 2022 at 3.100% $ 336 $ 333 €550 million Senior Notes due 2023 at 1.900% 625 671 $750 million Senior Notes due 2024 at 3.625% 748 748 $650 million Senior Notes due 2025 at 4.150% 647 646 €600 million Senior Notes due 2027 at 1.500% 681 730 $750 million Senior Notes due 2030 at 2.450% 742 741 Bank term debt at a weighted average interest rate of approximately 4.86% [20 20 187 189 Government loans at a weighted average interest rate of approximately 0.13% [2020 – 1.54%], denominated primarily in euro, Canadian dollar and Brazilian real 8 32 Other 19 12 3,993 4,102 Less due within one year 455 129 $ 3,538 $ 3,973 |
Schedule of Future Principal Repayments on Long-Term Debt | [b] Future principal repayments on long-term debt are estimated to be as f o 2022 $ 455 2023 692 2024 771 2025 651 2026 3 Thereafter 1,437 $ 4,009 |
Interest Expense, Net | [e] Interest expense, net includes: 2021 2020 Interest expense Current $ 12 $ 9 Long-term 110 96 122 105 Interest income (44 ) (19 ) Interest expense, net $ 78 $ 86 |
Leases (Table)
Leases (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Costs Associated with Operating Lease Expenses | Costs associated with the Company’s operating lease expense were as follows: 2021 Operating lease expense $ 325 Short-term lease expense 16 Variable lease expense 26 Total lease expense $ 367 |
Schedule of Supplemental Information Related To Operating Leases | Supplemental information related to the Company’s operating leases was as follows: 2021 Operating cash flows – cash paid $ 373 New right-of-use $ 91 Weighted-average remaining lease term 9 years Weighted-average discount rate 4.5 % |
Schedule of Commitments under Operating Leases Requiring Annual Payments | At December 31, 2021, the Company had commitments under operating leases requiring annual payments as follows: Total 2022 $ 300 2023 268 2024 234 2025 205 2026 176 2027 and thereafter 835 2,018 Less: amount representing interest 338 Total lease liabilities $ 1,680 Current operating liabilities $ 274 Non-current 1,406 Total lease liabilities $ 1,680 |
Long-Term Employee Benefit Li_2
Long-Term Employee Benefit Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-Term Employee Benefit Liabilities | Long-term employee benefit liabilities consist of: 2021 2020 Defined benefit pension plans and other [a] $ 196 $ 216 Termination and long-term service arrangements [b] 456 468 Retirement medical benefits plans [c] 26 29 Other long-term employee benefits 22 16 Long-term employee benefit obligations $ 700 $ 729 |
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: 2021 2020 Projected benefit obligation Discount rate 2.4 % 2.1 % Rate of compensation increase 2.7 % 2.4 % Net periodic benefit cost Discount rate 2.3 % 2.8 % Rate of compensation increase 2.6 % 2.4 % Expected return on plan assets 4.1 % 4.6 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s defined benefit pension plans is as follows: 2021 2020 Projected benefit obligation Beginning of year $ 731 $ 659 Current service cost 10 10 Interest cost 12 17 Actuarial (gains) losses and changes in actuarial assumptions (37 ) 43 Benefits paid (27 ) (23 ) Divestiture 11 — Foreign exchange (11 ) 25 End of year 689 731 Plan assets at fair value [i] Beginning of year 517 478 Return on plan assets 25 42 Employer contributions 12 9 Benefits paid (23 ) (18 ) Foreign exchange 1 6 End of year 532 517 Ending funded status – Plan deficit $ 157 $ 214 Amounts recorded in the consolidated balance sheet Non-current [note 12] $ (41 ) $ (4 ) Current liability 2 2 Non-current 196 216 Net amount $ 157 $ 214 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (112 ) $ (158 ) Net periodic benefit cost Current service cost $ 10 $ 10 Interest cost 12 17 Return on plan assets (21 ) (21 ) Actuarial losses 8 5 Net periodic benefit cost $ 9 $ 11 [i] The asset allocation of the Company’s defined benefit pension plans at December 31, 2021 and the target allocation for 2022 is as follows: 2022 2021 Fixed income securities 55-80 % 63 % Equity securities 25-50 % 33 % Cash and cash equivalents 0-10 % 4 % 100 % 100 % |
Future Benefit Payments | [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2022 $ 13 $ 11 $ 1 $ 25 Expected benefit payments: 2022 $ 26 $ 11 $ 1 $ 38 2023 25 14 1 40 2024 26 17 1 44 2025 27 19 2 48 2026 29 25 2 56 Thereafter 162 131 8 301 $ 295 $ 217 $ 15 $ 527 |
Termination and Long-term 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-term service benefit obligations and net periodic benefit cost are as follows: 2021 2020 Discount rate 2.4 % 2.1 % Rate of compensation increase 3.1 % 3.1 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s termination and long-term service arrangements is as follows: 2021 2020 Projected benefit obligation Beginning of year $ 478 $ 446 Current service cost 23 32 Interest cost 9 8 Actuarial losses (gains) and changes in actuarial assumptions 10 (13 ) Benefits paid (23 ) (27 ) Foreign exchange (30 ) 32 Ending funded status – Plan deficit $ 467 $ 478 Amounts recorded in the consolidated balance sheet Current liability $ 11 $ 10 Non-current 456 468 Net amount $ 467 $ 478 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (112 ) $ (106 ) Net periodic benefit cost Current service cost $ 23 $ 32 Interest cost 9 8 Actuarial losses 4 6 Net periodic benefit cost $ 36 $ 46 |
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: 2021 2020 Retirement medical benefit obligations 2.8 % 2.4 % Net periodic benefit cost 2.4 % 3.1 % Health care cost inflation 6.4 % 6.6 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s retirement medical benefits plans are as follows: 2021 2020 Projected benefit obligation Beginning of year $ 30 $ 29 Interest cost 1 1 Actuarial (gains) losses and changes in actuarial assumptions (3 ) 1 Benefits paid (1 ) (1 ) Ending funded status – Plan deficit $ 27 $ 30 Amounts recorded in the consolidated balance sheet Current liability $ 1 $ 1 Non-current 26 29 Net amount $ 27 $ 30 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial gains 10 6 Total accumulated other comprehensive income $ 10 $ 6 Net periodic benefit cost Interest cost $ 1 $ 1 Actuarial gains (1 ) (1 ) Net periodic benefit cost $ — $ — |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Particulars of Other Long-Term Liabilities | Other long-term liabilities consist of: 2021 2020 Long-term portion of income taxes payable $ 147 $ 199 Deferred revenue 127 52 Asset retirement obligation 37 39 Long-term portion of fair value of hedges [note 21] 8 5 Other 57 37 $ 376 $ 332 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 a r 2021 2020 Shares purchased Cash amount Shares Cash 2019 Bid — $ — 5,077,882 $ 203 2020 Bid 3,318,523 301 — — 2021 Bid 2,673,800 216 — — 5,992,323 $ 517 5,077,882 $ 203 |
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 3, 2022 were exercised or converted: Common Shares 296,643,367 Stock options [i] 6,090,512 302,733,879 [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, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following is a continuity schedule of accumulated other comprehensive loss: 2021 2020 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (551 ) $ (907 ) Net unrealized (loss) gain (187 ) 348 Repurchase of shares under normal course issuer bids [note 19] 3 8 Balance, end of year (735 ) (551 ) Accumulated net unrealized gain on cash flow hedges [b] Balance, beginning of year 42 38 Net unrealized gains (loss) 34 (34 ) Reclassification of net (loss) gain to net income [a] (52 ) 38 Balance, end of year 24 42 Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (224 ) (221 ) Net unrealized gains (loss) 26 (11 ) Reclassification of net gain to net income [a] 9 8 Balance, end of year (189 ) (224 ) Total accumulated other comprehensive loss [c] $ (900 ) $ (733 ) |
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: 2021 2020 Cash flow hedges Sales $ 49 $ (30 ) Cost of sales 21 (21 ) Income tax (18 ) 13 Net of tax 52 (38 ) Other long-term liabilities Cost of sales (11 ) (9 ) Income tax 2 1 Net of tax (9 ) (8 ) Total gain (loss) reclassified to net income $ 43 $ (46 ) |
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: 2021 2020 Accumulated net unrealized loss on translation of net investment in foreign operations $ 4 $ 7 Accumulated net unrealized gain on cash flow hedges Balance, beginning of year (15 ) (14 ) Net unrealized (gain) loss (11 ) 12 Reclassification of net loss to net income 18 (13 ) Balance, end of year (8 ) (15 ) Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 35 35 Net unrealized loss (8 ) 1 Reclassification of net loss to net income (2 ) (1 ) Balance, end of year 25 35 Total income tax benefit $ 21 $ 27 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies | At December 31, 2021, 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 2022 176 1.26579 7,453 0.04619 2022 (851 ) 0.78014 (6 ) 21.20347 2023 12 1.28866 4,835 0.04394 2023 (457 ) 0.78021 (8 ) 23.51812 2024 — — 1,027 0.04208 2024 (236 ) 0.77730 — — 2025 (62 ) 0.77950 — — (1,418 ) 13,301 For euros Buy (Sell) U.S Weighted Czech Weighted 2022 137 0.84650 4,952 0.03808 2022 (121 ) 1.18728 — — 2023 53 0.82876 3,196 0.03739 2023 (74 ) 1.19265 — — 2024 11 0.82746 1,227 0.03652 2024 (18 ) 1.21729 — — 2025 (3 ) 1.18615 — — (15 ) 9,375 |
Schedule of Company's Financial Assets and Liabilities | The Company’s financial assets and liabilities consist of the following: 2021 2020 Financial assets Cash, cash equivalents and restricted cash equivalents $ 2,948 $ 3,374 Accounts receivable 6,307 6,394 Warrants and public and private equity investments 561 267 Long-term receivables included in other assets [note 12] 184 209 $ 10,000 $ 10,244 Financial liabilities Long-term debt (including portion due within one year) $ 3,993 $ 4,102 Accounts payable 6,465 6,266 $ 10,458 $ 10,368 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses $ 34 $ 52 Other assets 11 16 Other accrued liabilities (12 ) (11 ) Other long-term liabilities (8 ) (5 ) $ 25 $ 52 |
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 amounts in consolidated Gross amounts not offset in consolidated Net December 31, 2021 Assets $ 45 $ 14 $ 31 Liabilities $ (20 ) $ (14 ) $ (6 ) December 31, 2020 Assets $ 68 $ 13 $ 55 Liabilities $ (16 ) $ (13 ) $ (3 ) |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: 2021 Depreciation Equity Total External Adjusted and loss sales sales EBIT amortization (income) Body Exteriors & Structures $ 14,477 $ 14,196 $ 820 $ 743 $ 13 Power & Vision 11,342 11,129 738 554 (134 ) Seating Systems 4,891 4,851 152 92 (9 ) Complete Vehicles 6,106 6,057 287 103 (10 ) Corporate & Other [i] (574 ) 9 67 20 (8 ) Total Reportable Segments $ 36,242 $ 36,242 $ 2,064 $ 1,512 $ (148 ) 2020 Depreciation Total External Adjusted and Equity sales sales EBIT amortization income Body Exteriors & Structures $ 13,550 $ 13,292 $ 817 $ 727 $ — Power & Vision 9,722 9,553 495 464 (179 ) Seating Systems 4,455 4,433 107 73 (6 ) Complete Vehicles 5,415 5,363 274 84 (3 ) Corporate & Other [i] (495 ) 6 (17 ) 18 (1 ) Total Reportable Segments $ 32,647 $ 32,647 $ 1,676 $ 1,366 $ (189 ) 2021 Fixed Fixed Net assets, asset assets Investments Goodwill net additions Body Exteriors & Structures $ 7,349 $ 15 $ 471 $ 4,599 $ 711 Power & Vision 6,066 735 1,269 2,620 522 Seating Systems 1,379 147 270 485 73 Complete Vehicles 623 93 112 501 54 Corporate & Other [i] 813 603 — 88 12 Total Reportable Segments $ 16,230 $ 1,593 $ 2,122 $ 8,293 $ 1,372 2020 Fixed Fixed Net assets, asset assets Investments Goodwill net additions Body Exteriors & Structures $ 7,536 $ 31 $ 478 $ 4,725 $ 581 Power & Vision 5,529 371 1,320 2,666 440 Seating Systems 1,118 144 176 418 70 Complete Vehicles 671 80 121 578 34 Corporate & Other [i] 710 321 — 88 20 Total Reportable Segments $ 15,564 $ 947 $ 2,095 $ 8,475 $ 1,145 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. |
Schedule of Reconciliation for Adjusted EBIT to Consolidated Income Before Income Taxes | [b] The following table reconciles Net income from operations to Adjusted EBIT: 2021 2020 Net Income $ 1,553 $ 677 Add: Interest expense, net 78 86 Other expense, net 38 584 Income taxes 395 329 Adjusted EBIT $ 2,064 $ 1,676 |
Summary of Net Assets for Company's Reporting Segments | [c] The following table shows Net Assets for the Company’s reporting segments: 2021 2020 Total Assets $ 29,086 $ 28,605 Deduct assets not included in segment net assets: Cash and cash equivalents (2,948 ) (3,268 ) Deferred tax assets (421 ) (372 ) Long-term receivables from joint venture partners (15 ) (66 ) Deduct liabilities included in segment net assets: Accounts payable (6,465 ) (6,266 ) Accrued salaries and wages (851 ) (815 ) Other accrued liabilities (2,156 ) (2,254 ) Segment Net Assets $ 16,230 $ 15,564 |
Schedule of Aggregates External Revenues by Customer | [d] The following table aggregates external revenues by customer as follows: 2021 2020 BMW $ 5,680 $ 4,714 Daimler AG 5,032 4,596 General Motors 4,884 4,921 Stellantis 4,683 3,958 Ford Motor Company 4,205 4,004 Volkswagen 3,717 3,510 Other 8,041 6,944 $36,242 $32,647 |
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 2021 2020 2021 2020 North America United States $ 8,612 $ 8,210 $ 1,686 $ 1,610 Canada 4,253 4,144 960 974 Mexico 3,833 3,359 1,210 1,247 16,698 15,713 3,856 3,831 Europe Austria 7,661 6,817 771 867 Germany 3,989 4,366 972 1,095 Czech Republic 931 912 274 293 Poland 610 535 220 221 Russia 371 345 110 120 Spain 331 323 79 82 United Kingdom 344 292 208 214 Italy 296 256 237 265 Turkey 293 247 6 9 France 262 142 58 62 Slovakia 204 126 273 283 Other Europe 139 111 208 222 15,431 14,472 3,416 3,733 Asia Pacific China 3,534 1,921 875 758 India 147 79 83 89 Other Asia Pacific 21 31 7 6 3,702 2,031 965 853 Rest of World 411 431 56 58 $ 36,242 $ 32,647 $ 8,293 $ 8,475 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | ||
Changes in assumptions and experience gains and losses that are greater than | 10.00% | |
Sales | $ 36,242 | $ 32,647 |
Unbilled accounts receivable | 528 | 425 |
Deferred revenue recognized | 140 | 81 |
Deferred revenue | 273 | 214 |
Research and development costs | $ 634 | 830 |
Unrecognized income tax benefits | 50.00% | |
Leases term | 12 months | |
Tooling And Engineering [Member] | ||
Significant Accounting Policies [Line Items] | ||
Sales | $ 783 | $ 739 |
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% |
Other Expense, Net - Other Expe
Other Expense, Net - Other Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Expense, Nonoperating [Abstract] | ||
Restructuring and impairments | $ 101 | $ 269 |
Net losses (gains) on investments | 2 | (32) |
Merger agreement termination fee | (100) | |
Gain on business combinations | (40) | |
Loss on sale of business | 75 | |
Impairment of equity-accounted investment | 347 | |
Other expense, net | $ 38 | $ 584 |
Other Expense, Net - Other Ex_2
Other Expense, Net - Other Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | Jan. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Components of Other Expense (Income), Net [Line Items] | |||
Restructuring and impairment charges | $ 101 | $ 269 | |
Restructuring charges | 168 | ||
Unrealized gain on investment revaluation | 63 | 65 | |
Merger agreement termination fee | 100 | ||
Merger agreement termination fee after tax | 75 | ||
Payment to fund acquirer on sale of business operations | 41 | (9) | |
Gain (Loss) on Disposition of Business | (75) | ||
Getrag Ford Transmission GmbH [Member] | Distribution of Nonmonetary Assets to Groups of Stockholders' Pursuant to Settlement Plans [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Nonmonetary transaction, gain loss recognized on transfer | 18 | ||
Nonmonetary transaction gain loss recognized on transfer after tax | 18 | ||
Body Exteriors and Structures Operations [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Payment to fund acquirer on sale of business operations | 41 | ||
Gain (Loss) on Disposition of Business | 75 | ||
Loss on sale of business after tax | 75 | ||
Chongqing Hongli Zhixin Scientific Technology Development Group LLC [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Business acquisition percentage of voting interests acquired | 65.00% | ||
Business combination step acquisition equity interest in acquiree percentage | 15.00% | ||
Business combination step acquisition equity interest in acquiree remeasurement gain | $ 22 | ||
Business combination step acquisition equity interest In acquiree remeasurement gain after tax | $ 22 | ||
Private Equity Investments [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Unrealized gain on investment revaluation | 34 | ||
Unrealized gain on investment revaluation, after tax | 29 | ||
Equity method investment Non cash impairment loss | 2 | ||
Equity method investment Non cash impairment loss after tax | 2 | ||
Public and Private Equity Investments [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Unrealized gain on investment revaluation | 6 | ||
Unrealized gain on investment revaluation, after tax | 12 | ||
Public Company Warrants [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Unrealized gain on investment revaluation | 4 | ||
Unrealized gain on investment revaluation, after tax | 3 | ||
Power & Vision [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Restructuring and impairment charges | 67 | 115 | |
Restructuring and impairement charges net of tax | 52 | 90 | |
Seating Systems [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Restructuring and impairment charges | 18 | 31 | |
Restructuring and impairement charges net of tax | 17 | 29 | |
Body Exteriors & Structures [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Restructuring and impairment charges | 16 | 123 | |
Restructuring and impairement charges net of tax | $ 14 | $ 118 |
Other Expense, Net - Summary of
Other Expense, Net - Summary of Impairment Charges and Loss on Sale Recorded for Certain Investments (Detail) - Power & Vision [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Impairments and loss on sale of equity-accounted investments [Line Items] | |
Impairments and loss on sale of equity-accounted investments | $ 347 |
Tax effect on Other expense, net | (53) |
Loss attributable to non-controlling interests | (75) |
Non-cash impairment charge included in Net income attributable to Magna International Inc. | 219 |
Getrag (Jiangxi) Transmission Co., Ltd [GJT] [Member] | |
Impairments and loss on sale of equity-accounted investments [Line Items] | |
Impairment of equity-accounted investment | 337 |
Dongfeng Getrag Transmission Co. Ltd ["DGT"] [Member] | |
Impairments and loss on sale of equity-accounted investments [Line Items] | |
Impairments and loss on sale of equity-accounted investments | $ 10 |
Other Expense, Net - Summary _2
Other Expense, Net - Summary of Impairment Charges and Loss on Sale Recorded for Certain Investments (Parenthetical) (Detail) - Dongfeng Getrag Transmission Co. Ltd ["DGT"] [Member] - Disposal Group, Not Discontinued Operations [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Impairments and loss on sale of equity-accounted investments [Line Items] | |
Equity method investment realized gain loss on disposal | $ 10 |
Equity method investment realized gain loss on disposal after tax | $ 10 |
Percentage of equity method investment sold | 50.00% |
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, 2021 | Dec. 31, 2020 | |
Basic earnings per Common Share: | ||
Net income attributable to Magna International Inc. | $ 1,514 | $ 757 |
Weighted average number of Common Shares outstanding during the year | 300.6 | 299.7 |
Basic earnings per Common Share | $ 5.04 | $ 2.52 |
Diluted earnings per Common Share: | ||
Net income attributable to Magna International Inc. | $ 1,514 | $ 757 |
Weighted average number of Common Shares outstanding during the year | 300.6 | 299.7 |
Stock options and restricted stock | 2.2 | 0.7 |
Diluted | 302.8 | 300.4 |
Diluted earnings per Common Share | $ 5 | $ 2.52 |
Earnings Per Share - Computat_2
Earnings Per Share - Computation of Earnings Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Excluded Common Shares issuable under Company's Incentive Stock Option Plan | 0.4 | 4.7 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | |||
Bank term deposits and bankers' acceptances | $ 1,984 | $ 1,987 | |
Cash | 964 | 1,281 | |
Cash and cash equivalents | 2,948 | 3,268 | |
Restricted cash equivalents included in prepaid expenses | 106 | ||
Cash, cash equivalents and restricted cash equivalents | $ 2,948 | $ 3,374 | $ 1,392 |
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, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Depreciation and amortization | $ 1,512 | $ 1,366 |
Amortization of other assets included in cost of goods sold | 255 | 215 |
Deferred revenue amortization | (188) | (89) |
Other non-cash charges | 25 | 66 |
Future tax (recovery) expenses | (76) | 17 |
Equity income less than (in excess of) dividends received | 11 | (10) |
Impairment charges | 435 | |
Non-cash portion of Other expense, net [note 2] | 37 | (24) |
Items not involving current cash flows | $ 1,576 | $ 1,976 |
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, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Accounts receivable | $ 114 | $ (42) |
Inventories | (653) | 37 |
Prepaid expenses and other | (39) | (12) |
Accounts payable | 160 | 274 |
Accrued salaries and wages | 58 | (8) |
Other accrued liabilities | 48 | 398 |
Income taxes payable | 123 | (22) |
Changes in operating assets and liabilities | $ (189) | $ 625 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2021 | Jan. 01, 2021 | Dec. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Recognized Gain | $ 22 | ||||||
Goodwill | $ 2,122 | $ 2,095 | $ 1,976 | ||||
Recognition Intangible assets | 53 | ||||||
Recognition Debt | 45 | ||||||
Ford [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Recognized Gain | $ 18 | ||||||
Cash Acquired | $ 94 | ||||||
Business Combination [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 90 | ||||||
Hongli [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | 95 | ||||||
Cash Acquired | $ 17 | ||||||
Acquired equity interest | 65.00% | 15.00% | |||||
Getrag Transmission Co., Ltd [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from Sale of Equity Method Investments | $ 239 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 98 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 211 | ||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 122 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 52 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,598 | $ 1,226 |
Work-in-process | 400 | 340 |
Finished goods | 506 | 470 |
Tooling and engineering | 1,465 | 1,408 |
Inventory, net, total | $ 3,969 | $ 3,444 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Method Private Equity and Other Investments [Abstract] | |||
Equity method investments | [1] | $ 1,031 | $ 677 |
Public and Private equity investments | 358 | 270 | |
Warrants | [2] | 204 | 0 |
Investments | 1,593 | $ 947 | |
Equity method goodwill | 118 | ||
Intangible assets | 47 | ||
Fixed assets | 47 | ||
Deferred tax liabilities | (24) | ||
Total basis difference included in equity method investments | $ 188 | ||
[1] | The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]: 2021 2020 LG Magna e-Powertrain Co., Ltd. [i] 49.0 % $ 481 $ — Litens Automotive Partnership [ii] 76.7 % $ 291 $ 273 Hubei HAPM Magna Seating Systems Co., Ltd. 49.9 % $ 127 $ 121 [i] On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain Co., Ltd. [“LME”], for cash consideration of $517 million. LME is a variable interest entity [“VIE”] and depends on the Company and LG for funding. The Company is not considered the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of its investment balance as at December 31, 2021. The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows: Equity method goodwill $ 118 Intangible assets 47 Fixed assets 47 Deferred tax liabilities (24 ) Total basis difference included in equity method investments $ 188 The basis differences for intangible and fixed assets are being amortized over an average estimated useful life of 8 years. [ii] The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. | ||
[2] | In October 2020, the Company signed agreements with Fisker Inc. [“Fisker”] for the platform sharing, engineering and manufacturing of the Fisker Ocean SUV. In connection with the arrangement, Fisker issued approximately 19.5 million penny warrants to the Company to purchase common stock, which vest based on specified milestones. During 2021, two third of the warrants vested with a value of $201 million. The initial value attributable to the warrants was deferred within other accrued liabilities and other long-term liabilities and is being recognized in income as performance obligations are satisfied. |
Ownership Percentages and Carry
Ownership Percentages and Carrying Value Principal Equity Method Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of equity method investments | [1] | $ 1,031 | $ 677 |
LG Magna e-Powertrain Co., Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [2] | 49.00% | |
Carrying value of equity method investments | [2] | $ 481 | |
Litens Automotive Partnership [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [3] | 76.70% | |
Carrying value of equity method investments | [3] | $ 291 | 273 |
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 | $ 127 | $ 121 | |
[1] | The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]: 2021 2020 LG Magna e-Powertrain Co., Ltd. [i] 49.0 % $ 481 $ — Litens Automotive Partnership [ii] 76.7 % $ 291 $ 273 Hubei HAPM Magna Seating Systems Co., Ltd. 49.9 % $ 127 $ 121 [i] On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain Co., Ltd. [“LME”], for cash consideration of $517 million. LME is a variable interest entity [“VIE”] and depends on the Company and LG for funding. The Company is not considered the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of its investment balance as at December 31, 2021. The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows: Equity method goodwill $ 118 Intangible assets 47 Fixed assets 47 Deferred tax liabilities (24 ) Total basis difference included in equity method investments $ 188 The basis differences for intangible and fixed assets are being amortized over an average estimated useful life of 8 years. [ii] The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. | ||
[2] | On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna e-Powertrain Co., Ltd. [“LME”], for cash consideration of $517 million. LME is a variable interest entity [“VIE”] and depends on the Company and LG for funding. The Company is not considered the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of its investment balance as at December 31, 2021. The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows: Equity method goodwill $ 118 Intangible assets 47 Fixed assets 47 Deferred tax liabilities (24 ) Total basis difference included in equity method investments $ 188 The basis differences for intangible and fixed assets are being amortized over an average estimated useful life of 8 years. | ||
[3] | The Company accounts for its investments under the equity method of accounting as a result of significant participating rights that prevent control. |
Ownership Percentages and Car_2
Ownership Percentages and Carrying Value Principal Equity Method Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Unrealized Gains on Equity Securities | $ 63 | $ 65 |
Sales to equity method investees | $ 65 | $ 104 |
Equity method investment difference between carrying amount and underlying Equity accounting treatment weighted average amortization period | 8 years | |
LG Magna e-Powertrain Co., Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 188 |
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, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 13,502 | $ 13,366 |
Current liabilities | 10,401 | 9,743 |
Net income | 1,553 | 677 |
Equity Method Investee [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 1,825 | 1,510 |
Non-current assets | 1,838 | 1,748 |
Current liabilities | 1,269 | 873 |
Long-term liabilities | 450 | 835 |
Sales | 3,303 | 3,384 |
Cost of goods sold & expenses | 3,156 | 3,140 |
Net income | $ 147 | $ 244 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | Jul. 28, 2021 | Dec. 31, 2021 |
Investment Penny Warrants [Member] | Fisker Inc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment Number of warrants subscribed | 19.5 | |
Payments to Acquire Equity Securities, FV-NI | $ 201 | |
LG Magna e-Powertrain Co., Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to Acquire Investments | $ 517 |
Fixed Assets - Components of Fi
Fixed Assets - Components of Fixed Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 20,272 | $ 20,121 |
Property plant and equipment, net | 8,293 | 8,475 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 198 | 195 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 2,719 | 2,709 |
Accumulated depreciation | (1,223) | (1,147) |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 17,355 | 17,217 |
Accumulated depreciation | $ (10,756) | $ (10,499) |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Billions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Construction in progress expenditures | $ 1 | $ 1 |
Goodwill - Goodwill by Segment
Goodwill - Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $ 2,095 | $ 1,976 |
Acquisitions | 122 | 5 |
Foreign exchange and other | (95) | 114 |
Goodwill, Ending balance | 2,122 | 2,095 |
Body Exteriors & Structures [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 478 | 453 |
Acquisitions | 0 | 4 |
Foreign exchange and other | (7) | 21 |
Goodwill, Ending balance | 471 | 478 |
Power & Vision [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 1,320 | 1,243 |
Acquisitions | 29 | 0 |
Foreign exchange and other | (80) | 77 |
Goodwill, Ending balance | 1,269 | 1,320 |
Seating Systems [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 176 | 169 |
Acquisitions | 93 | 1 |
Foreign exchange and other | 1 | 6 |
Goodwill, Ending balance | 270 | 176 |
Complete Vehicles [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 121 | 111 |
Acquisitions | 0 | 0 |
Foreign exchange and other | (9) | 10 |
Goodwill, Ending balance | $ 112 | $ 121 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | |||
Canadian statutory income tax rate | 26.50% | 26.50% | |
Tax on repatriation of foreign earnings | 2.90% | 4.40% | |
Net effect of losses not benefited | 1.80% | 8.10% | |
Re-measurement of deferred tax assets | [1] | 1.50% | 0.00% |
Foreign exchange re-measurement | [2] | 1.20% | 3.40% |
Impairment of investments [note 2] | 0.00% | 8.60% | |
Manufacturing and processing profits deduction | (0.20%) | (0.10%) | |
Valuation allowance on deferred tax assets | (0.70%) | 0.60% | |
Earnings of equity accounted investees | (1.30%) | (3.60%) | |
Reserve for uncertain tax positions | (2.50%) | (4.00%) | |
Research and development tax credits | (3.40%) | (3.70%) | |
Foreign rate differentials | (3.90%) | (7.30%) | |
Others | (1.60%) | (0.20%) | |
Effective income tax rate | 20.30% | 32.70% | |
[1] | Re-measurement of deferred tax assets of a China subsidiary. | ||
[2] | Includes foreign exchange gains reported on U.S. dollar denominated assets for Mexican tax purposes that are not recognized for GAAP purposes and losses related to the re-measurement of financial statement balances of foreign subsidiaries, primarily in Mexico, that are maintained in a currency other than their functional currency. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Undistributed earnings of certain foreign subsidiaries | $ 4,900 | ||
Income taxes paid, net | 341 | $ 336 | |
Income tax loss carryforwards | 3,000 | ||
Tax credit carryforwards | 84 | ||
Total losses | 1,900 | ||
Gross unrecognized tax benefits | 142 | 182 | $ 192 |
Gross unrecognized tax benefits that would affect the Company's effective tax rate | 126 | 165 | |
Interest and penalties on the unrecognized tax benefits | 26 | 43 | |
(Decrease)/Increase in expenses related to changes in its reserves for interest and penalties | (17) | $ (3) | |
Decrease in gross unrecognized tax benefits | 73 | ||
Amount of decrease of gross unrecognized tax benefits that would affect effective tax rate if recognized | $ 66 | ||
Income tax examination in Germany | 2007 | ||
Income tax examination in China, Mexico and Austria | 2015 | ||
Income tax examination in Canada | 2016 | ||
income tax examination in US | 2017 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of operating losses and tax credit carryforwards | 2022 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of operating losses and tax credit carryforwards | 2041 |
Income Taxes - Details of Incom
Income Taxes - Details of Income before Income Taxes by Jurisdiction (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 220 | $ 93 |
Foreign | 1,728 | 913 |
Income before income taxes, Total | $ 1,948 | $ 1,006 |
Income Taxes - Details of Inc_2
Income Taxes - Details of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 63 | $ 10 |
Foreign | 408 | 302 |
Current income tax, Total | 471 | 312 |
Canadian | (4) | 17 |
Foreign | (72) | 0 |
Deferred income tax, Total | (76) | 17 |
Income tax provision, Total | $ 395 | $ 329 |
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, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax on undistributed foreign earnings | $ 43 | $ 23 |
Re-measurement of deferred tax assets | 28 | |
Liabilities currently not deductible for tax | 5 | (2) |
Change in valuation allowance on deferred tax assets | (13) | 6 |
Net tax losses benefited | (22) | (38) |
Tax depreciation (less than) in excess of book depreciation | (30) | 50 |
Book amortization in excess of tax amortization | (58) | (17) |
Others | (29) | (5) |
Deferred income tax, Total | $ (76) | $ 17 |
Income Taxes - Summary of Def_2
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of loss carryforwards | $ 766 | $ 735 |
Operating lease liabilities | 409 | 469 |
Liabilities currently not deductible for tax | 219 | 259 |
Tax credit carryforwards | 84 | 64 |
Unrealized loss on foreign exchange hedges and retirement liabilities | 59 | 87 |
Others | 30 | 46 |
Deferred tax assets, Gross, Total | 1,567 | 1,660 |
Valuation allowance against tax benefit of loss carryforwards | (586) | (569) |
Other valuation allowance | (125) | (206) |
Deferred tax assets, Net, Total | 856 | 885 |
Operating lease right-of-use assets | 415 | 470 |
Tax depreciation in excess of book depreciation | 228 | 239 |
Tax on undistributed foreign earnings | 206 | 163 |
Unrealized gain on remeasurement of investments | 12 | 11 |
Unrealized gain on foreign exchange hedges and retirement liabilities | 11 | 17 |
Other assets book value in excess of tax values | 3 | 65 |
Deferred tax liabilities, Total | 875 | 965 |
Net deferred tax liabilities | $ (19) | $ (80) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liabilities Presented on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Long-term deferred tax assets | $ 421 | $ 372 |
Long-term deferred tax liabilities | (440) | (452) |
Net deferred tax liabilities | $ (19) | $ (80) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 182 | $ 192 |
Increase based on tax positions related to current year | 11 | 27 |
Increase based on tax positions of prior years | 2 | 0 |
Increase related to acquisitions | 0 | 11 |
Settlements | (5) | (1) |
Foreign currency translation | (5) | 5 |
Statute expirations | (43) | (52) |
Balance, ending of year | $ 142 | $ 182 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, cost | $ 1,163 | $ 1,093 |
Intangible assets, net | $ 493 | 481 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 7 years | |
Intangible Assets, cost | $ 386 | 348 |
Intangible Assets, accumulated depreciation | $ (175) | (150) |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 1 year | |
Intangible Assets, cost | $ 463 | 463 |
Intangible Assets, accumulated depreciation | $ (360) | (361) |
Patent And License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 7 years | |
Intangible Assets, cost | $ 314 | 282 |
Intangible Assets, accumulated depreciation | $ (135) | $ (101) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Definite-lived intangible assets, amortization expense | $ 114 | $ 85 |
Estimated annual amortization expense, 2022 | 111 | |
Estimated annual amortization expense, 2023 | 77 | |
Estimated annual amortization expense, 2024 | 59 | |
Estimated annual amortization expense, 2025 | 54 | |
Estimated annual amortization expense, 2026 | $ 51 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Preproduction costs related to long-term supply agreements | $ 668 | $ 694 |
Long-term receivables | 184 | 209 |
Unrealized gain on cash flow hedges [note 21] | 11 | 16 |
Pension overfunded status [note 17[a]] | 41 | 4 |
Other | 58 | 40 |
Total other assets | $ 962 | $ 963 |
Employee Equity and Profit Pa_2
Employee Equity and Profit Participation Program - Additional Information (Detail) - Trust for Benefit of Employees [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount borrowed from company to purchase common shares maximum | $ 38,000,000 | $ 38,000,000 |
Indebtedness receivable | $ 38,000,000 | $ 38,000,000 |
Warranty - Schedule of Company'
Warranty - Schedule of Company's Warranty Accruals (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of year | $ 284 | $ 252 |
Expense, net | 82 | 164 |
Settlements | (111) | (165) |
Business combination | 2 | 21 |
Foreign exchange and other | (10) | 12 |
Balance, end of year | $ 247 | $ 284 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | Apr. 28, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021EUR (€) |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 2,750 | |||
Line of credit facility, maturity date | Jun. 24, 2024 | |||
Interest paid in cash | $ 122 | $ 104 | ||
One Point Nine Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | € | € 550,000,000 | |||
Asian Tranche [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200 | |||
Mexican Tranche [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150 | |||
One Point Five Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | € | 600,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross amount outstanding under the credit facility | $ 0 | |||
Line of credit facility, expiration period | 364 days | |||
Line of credit facility, maturity date | Jun. 24, 2026 | Dec. 9, 2022 | ||
Line of credit facility, remaining borrowing capacity | $ 2,600 | |||
Line of credit facility, average outstanding amount | $ 6 | 13 | ||
Current Borrowing Capacity | $ 750 | |||
Bank Indebtedness [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Covenant percentage USD cash deposit to outstanding euro balance | 105.00% | |||
U.S. Commercial Paper Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,000 | |||
Short term borrowings | $ 0 | $ 0 | ||
Euro-Commercial Paper Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | € | € 500,000,000 |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 3,993 | $ 4,102 |
Less due within one year | 455 | 129 |
Total long term non current debt | 3,538 | 3,973 |
Three Point Six Two Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 748 | 748 |
Four Point One Five Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 647 | 646 |
One Point Nine Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 625 | 671 |
One Point Five Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 681 | 730 |
Three Point One Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 336 | 333 |
Bank Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 187 | 189 |
Government Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 8 | 32 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 19 | 12 |
Two Point Four Five Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 742 | $ 741 |
Debt - Schedule of Company's _2
Debt - Schedule of Company's Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020 | |
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% | |
Two Point Four Five Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 750,000,000 | |||
Senior Notes, due year | 2030 | |||
Interest rate | 2.45% | 2.45% | 2.45% | |
Bank Term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 4.86% | 4.86% | 4.86% | 4.23% |
Government Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 0.13% | 0.13% | 0.13% | 1.54% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Repayments on Long-Term Debt (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 455 |
2023 | 692 |
2024 | 771 |
2025 | 651 |
2026 | 3 |
Thereafter | 1,437 |
Total long-term debt | $ 4,009 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense | ||
Current | $ 12 | $ 9 |
Long-term | 110 | 96 |
Interest expense | 122 | 105 |
Interest income | (44) | (19) |
Interest expense, net | $ 78 | $ 86 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years |
Operating Lease Option To Extend | options to extend the term of the lease |
Manufacturing Facility [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilitites | $ 12 |
Operating lease year of commencement | 2022 |
Use Rights [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 90 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 8 years 6 months |
Maximum [Member] | Manufacturing Facility [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 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, 2021USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 325 |
Short-term lease expense | 16 |
Variable lease expense | 26 |
Total lease expense | $ 367 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related To Operating Leases (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Operating cash flows – cash paid | $ 373 |
New right-of-use assets | $ 91 |
Weighted-average remaining lease term | 9 years |
Weighted-average discount rate | 4.50% |
Leases - Schedule of Commitment
Leases - Schedule of Commitments under Operating Leases Requiring Annual Payments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 300 | |
2023 | 268 | |
2024 | 234 | |
2025 | 205 | |
2026 | 176 | |
2027 and thereafter | 835 | |
Total | 2,018 | |
Less: amount representing interest | 338 | |
Total lease liabilities | 1,680 | |
Current operating liabilities | 274 | $ 241 |
Non-current operating lease liabilities | 1,406 | $ 1,656 |
Total lease liabilities | $ 1,680 |
Long-Term Employee Benefit Li_3
Long-Term Employee Benefit Liabilities - Long-Term Employee Benefit Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
Defined benefit pension plans and other | $ 196 | $ 216 |
Termination and long-term service arrangements | 456 | 468 |
Retirement medical benefits plans | 26 | 29 |
Other long-term employee benefits | 22 | 16 |
Long-term employee benefit obligations | $ 700 | $ 729 |
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, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.40% | 2.10% |
Rate of compensation increase | 2.70% | 2.40% |
Net periodic benefit cost Discount rate | 2.30% | 2.80% |
Rate of compensation increase | 2.60% | 2.40% |
Expected return on plan assets | 4.10% | 4.60% |
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, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | $ (41) | $ (4) |
Non-current liability | 700 | 729 |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 731 | 659 |
Current service cost | 10 | 10 |
Interest cost | 12 | 17 |
Actuarial (gains) losses and changes in actuarial assumptions | (37) | 43 |
Benefits paid | (27) | (23) |
Divestiture | 11 | |
Foreign exchange | (11) | 25 |
End of year | 689 | 731 |
Beginning of year | 517 | 478 |
Return on plan assets | 25 | 42 |
Employer contributions | 12 | 9 |
Benefits paid | (23) | (18) |
Foreign exchange | 1 | 6 |
End of year | 532 | 517 |
Ending funded status– Plan deficit | 157 | 214 |
Non-current asset | (41) | (4) |
Current liability | 2 | 2 |
Non-current liability | 196 | 216 |
Net amount | 157 | 214 |
Unrecognized actuarial losses | (112) | (158) |
Current service cost | 10 | 10 |
Interest cost | 12 | 17 |
Return on plan assets | (21) | (21) |
Actuarial losses | 8 | 5 |
Net periodic benefit cost | $ 9 | $ 11 |
Long-Term Employee Benefit Li_6
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Parenthetical) (Detail) - Pension Plan, Defined Benefit [Member] | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Asset allocation of defined benefit pension plans | 100.00% | |
Equity Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation of defined benefit pension plans | 33.00% | |
Equity Investments [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 25.00% | |
Equity Investments [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 50.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation of defined benefit pension plans | 63.00% | |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 55.00% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 80.00% | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation of defined benefit pension plans | 4.00% | |
Cash and Cash Equivalents [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0.00% | |
Cash and Cash Equivalents [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 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-term Service Benefit Obligations and Net Periodic Benefit Cost (Detail) - Termination and Long-term Service Arrangements [Member] | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.40% | 2.10% |
Rate of compensation increase | 3.10% | 3.10% |
Long-Term Employee Benefit Li_8
Long-Term Employee Benefit Liabilities - Company's Termination and Long-term Service Arrangements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 700 | $ 729 |
Termination and Long-term Service Arrangements [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 478 | 446 |
Current service cost | 23 | 32 |
Interest cost | 9 | 8 |
Actuarial losses (gains) and changes in actuarial assumptions | 10 | (13) |
Benefits paid | (23) | (27) |
Foreign exchange | (30) | 32 |
Ending funded status – Plan deficit | 467 | 478 |
Current liability | 11 | 10 |
Non-current liability | 456 | 468 |
Net amount | 467 | 478 |
Unrecognized actuarial losses | (112) | (106) |
Current service cost | 23 | 32 |
Interest cost | 9 | 8 |
Actuarial losses | 4 | 6 |
Net periodic benefit cost | $ 36 | $ 46 |
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, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement medical benefit obligations | 2.80% | 2.40% |
Net periodic benefit cost | 2.40% | 3.10% |
Health care cost inflation | 6.40% | 6.60% |
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, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 700 | $ 729 |
Retirement Medical Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 30 | 29 |
Interest cost | 1 | 1 |
Actuarial (gains) losses and changes in actuarial assumptions | (3) | 1 |
Benefits paid | (1) | (1) |
Ending funded status – Plan deficit | 27 | 30 |
Current liability | 1 | 1 |
Non-current liability | 26 | 29 |
Net amount | 27 | 30 |
Unrecognized actuarial gains | 10 | 6 |
Total accumulated other comprehensive income | 10 | 6 |
Interest cost | 1 | 1 |
Actuarial losses | (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, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2022 | $ 25 |
2022 | 38 |
2023 | 40 |
2024 | 44 |
2025 | 48 |
2026 | 56 |
Thereafter | 301 |
Total | 527 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2022 | 13 |
2022 | 26 |
2023 | 25 |
2024 | 26 |
2025 | 27 |
2026 | 29 |
Thereafter | 162 |
Total | 295 |
Termination and Long Service Arrangements [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2022 | 11 |
2022 | 11 |
2023 | 14 |
2024 | 17 |
2025 | 19 |
2026 | 25 |
Thereafter | 131 |
Total | 217 |
Retirement Medical Benefits Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2022 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
2025 | 2 |
2026 | 2 |
Thereafter | 8 |
Total | $ 15 |
Other Long-Term Liabilities - P
Other Long-Term Liabilities - Particulars of Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Long-term portion of income taxes payable | $ 147 | $ 199 |
Deferred revenue | 127 | 52 |
Asset retirement obligation | 37 | 39 |
Long-term portion of fair value of hedges [note 21] | 8 | 5 |
Other | 57 | 37 |
Total | $ 376 | $ 332 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Nov. 10, 2021shares | Dec. 31, 2021Voteshares |
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 | 29,900,000 | |
Percentage of issued and outstanding common shares | 10.00% | |
Commencement date of Bid | Nov. 15, 2021 | |
Termination date of Bid | Nov. 14, 2022 |
Capital Stock - Summary of Norm
Capital Stock - Summary of Normal Course Issuer Bids (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 5,992,323 | 5,077,882 |
Cash amount | $ 517 | $ 203 |
2019 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 0 | 5,077,882 |
Cash amount | $ 0 | $ 203 |
2020 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 3,318,523 | 0 |
Cash amount | $ 301 | $ 0 |
2021 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 2,673,800 | 0 |
Cash amount | $ 216 | $ 0 |
Capital Stock - Maximum Number
Capital Stock - Maximum Number of Shares Outstanding Exercised or Converted (Detail) - Convertible Common Stock [Member] - Subsequent Event [Member] | Mar. 03, 2022shares |
Class of Stock [Line Items] | |
Common Shares | 296,643,367 |
Stock options | 6,090,512 |
Total number of shares outstanding | 302,733,879 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (733) | |
Net unrealized gain (loss) | 34 | $ (34) |
Reclassification of net gain to net income | 9 | 8 |
Ending Balance | (900) | (733) |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (551) | (907) |
Net unrealized (loss) gain | (187) | 348 |
Repurchase of shares under normal course issuer bids [note 19] | 3 | 8 |
Ending Balance | (735) | (551) |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 42 | 38 |
Net unrealized gain (loss) | 34 | (34) |
Reclassification of net (loss) gain to net income | (52) | 38 |
Ending Balance | 24 | 42 |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (224) | (221) |
Net unrealized gains (loss) | 26 | (11) |
Reclassification of net gain to net income | 9 | 8 |
Ending Balance | (189) | (224) |
AOCL [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (733) | |
Ending Balance | $ (900) | $ (733) |
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, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sales | $ 36,242 | $ 32,647 |
Cost of sales | 31,097 | 28,207 |
Income tax | 395 | 329 |
Net of tax | 1,514 | 757 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total gain (loss) reclassified to net income | 43 | (46) |
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 | 49 | (30) |
Cost of sales | 21 | (21) |
Income tax | (18) | 13 |
Net of tax | 52 | (38) |
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 | (11) | (9) |
Income tax | 2 | 1 |
Net of tax | $ (9) | $ (8) |
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, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated net unrealized loss on translation of net investment in foreign operations | $ 4 | $ 7 |
Balance, beginning of year | 27 | |
Balance, end of year | 21 | 27 |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | (15) | (14) |
Net unrealized (gain) loss | (11) | 12 |
Reclassification of net loss to net income | 18 | (13) |
Balance, end of year | (8) | (15) |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of year | 35 | 35 |
Net unrealized (gain) loss | (8) | 1 |
Reclassification of net loss to net income | (2) | (1) |
Balance, end of year | $ 25 | $ 35 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss - Additional Information (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Equity [Abstract] | |
Amount of comprehensive loss that is expected to be reclassified to net income | $ 26 |
Financial Instruments - Foreign
Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) - 12 months ended Dec. 31, 2021 Kč in Millions, $ in Millions, $ in Millions | USD ($) | MXN ($) | CZK (Kč) |
Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | Kč | Kč 9,375 | ||
2022 [Member] | Long [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | Kč | 4,952 | ||
2023 [Member] | Long [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | Kč | 3,196 | ||
2024 [Member] | Long [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | Kč | Kč 1,227 | ||
Canada, Dollars | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (1,418) | ||
Canada, Dollars | 2022 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 1.26579 | ||
Foreign exchange forward contract, Sales Exchange Rate | 0.78014 | ||
Canada, Dollars | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 176 | ||
Canada, Dollars | 2022 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (851) | ||
Canada, Dollars | 2023 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 1.28866 | ||
Foreign exchange forward contract, Sales Exchange Rate | 0.78021 | ||
Canada, Dollars | 2023 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 12 | ||
Canada, Dollars | 2023 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (457) | ||
Canada, Dollars | 2024 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 0.77730 | ||
Canada, Dollars | 2024 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (236) | ||
Canada, Dollars | 2025 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 0.77950 | ||
Canada, Dollars | 2025 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (62) | ||
United States of America, Dollars | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 13,301 | ||
United States of America, Dollars | 2022 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04619 | ||
Foreign exchange forward contract, Sales Exchange Rate | 21.20347 | ||
United States of America, Dollars | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | 7,453 | ||
United States of America, Dollars | 2022 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | (6) | ||
United States of America, Dollars | 2023 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04394 | ||
Foreign exchange forward contract, Sales Exchange Rate | 23.51812 | ||
United States of America, Dollars | 2023 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | 4,835 | ||
United States of America, Dollars | 2023 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | (8) | ||
United States of America, Dollars | 2024 [Member] | Mexican Peso [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04208 | ||
United States of America, Dollars | 2024 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 1,027 | ||
Euro Member Countries, Euro | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 15 | ||
Euro Member Countries, Euro | 2022 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.84650 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.18728 | ||
Euro Member Countries, Euro | 2022 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03808 | ||
Euro Member Countries, Euro | 2022 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 137 | ||
Euro Member Countries, Euro | 2022 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (121) | ||
Euro Member Countries, Euro | 2023 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.82876 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.19265 | ||
Euro Member Countries, Euro | 2023 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03739 | ||
Euro Member Countries, Euro | 2023 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 53 | ||
Euro Member Countries, Euro | 2023 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (74) | ||
Euro Member Countries, Euro | 2024 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.82746 | ||
Foreign exchange forward contract, Sales Exchange Rate | 1.21729 | ||
Euro Member Countries, Euro | 2024 [Member] | Czech Koruna [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03652 | ||
Euro Member Countries, Euro | 2024 [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Buy Contracts) | $ 11 | ||
Euro Member Countries, Euro | 2024 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (18) | ||
Euro Member Countries, Euro | 2025 [Member] | US Dollar [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contract, Sales Exchange Rate | 1.18615 | ||
Euro Member Countries, Euro | 2025 [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount (Sell Contracts) | $ (3) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term debt due within one year | $ 455 | $ 129 |
Debt instrument maturity period | 1 year | |
Book value of senior notes | $ 3,800 | |
Sales Revenue, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of largest customers | Customer | 6 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Six Largest Company [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of sales to six largest customers | 78.00% | 78.00% |
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated fair value of notes payable | $ 4,000 | |
Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange forward contracts, gain recognized in other comprehensive loss | 66 | |
Foreign exchange forward contracts, loss recognized in other comprehensive loss | $ 14 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | |||
Cash, cash equivalents and restricted cash equivalents | $ 2,948 | $ 3,374 | $ 1,392 |
Accounts receivable | 6,307 | 6,394 | |
Warrants and public and private equity investments | 561 | 267 | |
Long-term receivables included in other assets [note 12] | 184 | 209 | |
Total | 10,000 | 10,244 | |
Financial liabilities | |||
Long-term debt (including portion due within one year) | 3,993 | 4,102 | |
Accounts payable | 6,465 | 6,266 | |
Total | 10,458 | 10,368 | |
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Derivative assets designated as effective hedges, measured at fair value | 45 | 68 | |
Derivative liabilities designated as effective hedges, measured at fair value | (20) | (16) | |
Foreign Exchange Contract [Member] | |||
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Assets, Net amounts | 25 | 52 | |
Prepaid Expenses and Other [Member] | Foreign Exchange Contract [Member] | |||
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Derivative assets designated as effective hedges, measured at fair value | 34 | 52 | |
Other Assets [Member] | Foreign Exchange Contract [Member] | |||
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Derivative assets designated as effective hedges, measured at fair value | 11 | 16 | |
Other Accrued Liabilities [Member] | Foreign Exchange Contract [Member] | |||
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Derivative liabilities designated as effective hedges, measured at fair value | (12) | (11) | |
Other Long-term Liabilities [Member] | Foreign Exchange Contract [Member] | |||
Foreign currency contracts designated as effective hedges, measured at fair value | |||
Derivative liabilities designated as effective hedges, measured at fair value | $ (8) | $ (5) |
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, 2021 | Dec. 31, 2020 |
Offsetting [Abstract] | ||
Assets, Gross amounts presented in consolidated balance sheets | $ 45 | $ 68 |
Assets, Gross amounts not offset in consolidated balance sheets | 14 | 13 |
Assets, Net amounts | 31 | 55 |
Liabilities, Gross amounts presented in Consolidated Balance Sheets | (20) | (16) |
Liabilities, Gross amounts not offset in Consolidated Balance Sheets | (14) | (13) |
Liabilities, Net Amounts | $ (6) | $ (3) |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Business-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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Total sales | $ 36,242 | $ 32,647 | ||
External sales | 36,242 | 32,647 | ||
Adjusted EBIT | 2,064 | 1,676 | ||
Depreciation and amortization | 1,512 | 1,366 | ||
Equity income | (148) | (189) | ||
Net assets | 29,086 | 28,605 | ||
Goodwill | 2,122 | 2,095 | $ 1,976 | |
Fixed assets, net | 8,293 | 8,475 | ||
Body Exteriors & Structures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 471 | 478 | 453 | |
Power & Vision [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 1,269 | 1,320 | 1,243 | |
Seating Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 270 | 176 | 169 | |
Complete Vehicles [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 112 | 121 | $ 111 | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 36,242 | 32,647 | ||
Net assets | 16,230 | 15,564 | ||
Investments | 1,593 | 947 | ||
Goodwill | 2,122 | 2,095 | ||
Fixed assets, net | 8,293 | 8,475 | ||
Fixed asset additions | 1,372 | 1,145 | ||
Operating Segments [Member] | Body Exteriors & Structures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 14,477 | 13,550 | ||
External sales | 14,196 | 13,292 | ||
Adjusted EBIT | 820 | 817 | ||
Depreciation and amortization | 743 | 727 | ||
Equity income | 13 | 0 | ||
Net assets | 7,349 | 7,536 | ||
Investments | 15 | 31 | ||
Goodwill | 471 | 478 | ||
Fixed assets, net | 4,599 | 4,725 | ||
Fixed asset additions | 711 | 581 | ||
Operating Segments [Member] | Power & Vision [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 11,342 | 9,722 | ||
External sales | 11,129 | 9,553 | ||
Adjusted EBIT | 738 | 495 | ||
Depreciation and amortization | 554 | 464 | ||
Equity income | (134) | (179) | ||
Net assets | 6,066 | 5,529 | ||
Investments | 735 | 371 | ||
Goodwill | 1,269 | 1,320 | ||
Fixed assets, net | 2,620 | 2,666 | ||
Fixed asset additions | 522 | 440 | ||
Operating Segments [Member] | Seating Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 4,891 | 4,455 | ||
External sales | 4,851 | 4,433 | ||
Adjusted EBIT | 152 | 107 | ||
Depreciation and amortization | 92 | 73 | ||
Equity income | (9) | (6) | ||
Net assets | 1,379 | 1,118 | ||
Investments | 147 | 144 | ||
Goodwill | 270 | 176 | ||
Fixed assets, net | 485 | 418 | ||
Fixed asset additions | 73 | 70 | ||
Operating Segments [Member] | Complete Vehicles [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 6,106 | 5,415 | ||
External sales | 6,057 | 5,363 | ||
Adjusted EBIT | 287 | 274 | ||
Depreciation and amortization | 103 | 84 | ||
Equity income | (10) | (3) | ||
Net assets | 623 | 671 | ||
Investments | 93 | 80 | ||
Goodwill | 112 | 121 | ||
Fixed assets, net | 501 | 578 | ||
Fixed asset additions | 54 | 34 | ||
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | [1] | (574) | (495) | |
External sales | [1] | 9 | 6 | |
Adjusted EBIT | [1] | 67 | (17) | |
Depreciation and amortization | [1] | 20 | 18 | |
Equity income | [1] | (8) | (1) | |
Net assets | [1] | 813 | 710 | |
Investments | [1] | 603 | 321 | |
Goodwill | [1] | |||
Fixed assets, net | [1] | 88 | 88 | |
Fixed asset additions | [1] | $ 12 | $ 20 | |
[1] | Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. |
Segmented Information - Sched_2
Segmented Information - Schedule of Reconciliation for Adjusted EBIT to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Net income | $ 1,553 | $ 677 |
Add (deduct): | ||
Interest expense, net | 78 | 86 |
Other expense, net | 38 | 584 |
Income taxes | 395 | 329 |
Adjusted EBIT | $ 2,064 | $ 1,676 |
Segmented Information - Summary
Segmented Information - Summary of Net Assets for Company's Reporting Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Net Assets for Company's Reporting Segments [Line Items] | ||
Total Assets | $ 29,086 | $ 28,605 |
Cash and cash equivalents | (2,948) | (3,268) |
Deferred tax assets | (421) | (372) |
Long-term receivables from joint venture partners | (15) | (66) |
Accounts payable | (6,465) | (6,266) |
Accrued salaries and wages | (851) | (815) |
Other accrued liabilities | (2,156) | (2,254) |
Segment Net Assets | $ 16,230 | $ 15,564 |
Segmented Information - Sched_3
Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Sales | $ 36,242 | $ 32,647 |
General Motors [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 4,884 | 4,921 |
BMW [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,680 | 4,714 |
Daimler AG [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,032 | 4,596 |
Ford Motor Company [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 4,205 | 4,004 |
Volkswagen [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 3,717 | 3,510 |
Other Customers [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 8,041 | 6,944 |
Stellantis [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 4,683 | $ 3,958 |
Segmented Information - Sched_4
Segmented Information - Schedule of External Revenues and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $ 36,242 | $ 32,647 |
Fixed assets, net | 8,293 | 8,475 |
Operating Segments [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 36,242 | 32,647 |
Fixed assets, net | 8,293 | 8,475 |
Operating Segments [Member] | North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 16,698 | 15,713 |
Fixed assets, net | 3,856 | 3,831 |
Operating Segments [Member] | North America [Member] | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 8,612 | 8,210 |
Fixed assets, net | 1,686 | 1,610 |
Operating Segments [Member] | North America [Member] | Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 4,253 | 4,144 |
Fixed assets, net | 960 | 974 |
Operating Segments [Member] | North America [Member] | Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 3,833 | 3,359 |
Fixed assets, net | 1,210 | 1,247 |
Operating Segments [Member] | Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 15,431 | 14,472 |
Fixed assets, net | 3,416 | 3,733 |
Operating Segments [Member] | Europe [Member] | Austria | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 7,661 | 6,817 |
Fixed assets, net | 771 | 867 |
Operating Segments [Member] | Europe [Member] | Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 3,989 | 4,366 |
Fixed assets, net | 972 | 1,095 |
Operating Segments [Member] | Europe [Member] | Czech Republic | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 931 | 912 |
Fixed assets, net | 274 | 293 |
Operating Segments [Member] | Europe [Member] | Poland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 610 | 535 |
Fixed assets, net | 220 | 221 |
Operating Segments [Member] | Europe [Member] | Russia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 371 | 345 |
Fixed assets, net | 110 | 120 |
Operating Segments [Member] | Europe [Member] | Spain | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 331 | 323 |
Fixed assets, net | 79 | 82 |
Operating Segments [Member] | Europe [Member] | United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 344 | 292 |
Fixed assets, net | 208 | 214 |
Operating Segments [Member] | Europe [Member] | Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 296 | 256 |
Fixed assets, net | 237 | 265 |
Operating Segments [Member] | Europe [Member] | Turkey | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 293 | 247 |
Fixed assets, net | 6 | 9 |
Operating Segments [Member] | Europe [Member] | France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 262 | 142 |
Fixed assets, net | 58 | 62 |
Operating Segments [Member] | Europe [Member] | Slovakia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 204 | 126 |
Fixed assets, net | 273 | 283 |
Operating Segments [Member] | Europe [Member] | Other Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 139 | 111 |
Fixed assets, net | 208 | 222 |
Operating Segments [Member] | Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 3,702 | 2,031 |
Fixed assets, net | 965 | 853 |
Operating Segments [Member] | Asia Pacific [Member] | China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 3,534 | 1,921 |
Fixed assets, net | 875 | 758 |
Operating Segments [Member] | Asia Pacific [Member] | India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 147 | 79 |
Fixed assets, net | 83 | 89 |
Operating Segments [Member] | Asia Pacific [Member] | Other Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 21 | 31 |
Fixed assets, net | 7 | 6 |
Operating Segments [Member] | Rest Of The World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 411 | 431 |
Fixed assets, net | $ 56 | $ 58 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Millions, $ in Millions | Feb. 28, 2022USD ($)shares | Feb. 28, 2022CAD ($)shares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Cash consideration received in lieu of cancellation | $ 517 | $ 203 | ||
Subsequent Event [Member] | ||||
Cancellation of common shares | shares | 1,600,500 | 1,600,500 | ||
Stock-based compensation awards, common shares | shares | 165,773 | 165,773 | ||
Cash consideration received in lieu of cancellation | $ 132 | |||
Subsequent Event [Member] | Senior Notes Redemption [Member] | ||||
Debt Instrument, Face Amount | $ 425 | |||
Gain (Loss) on Extinguishment of Debt | 5 | |||
Debt instrument redemption price amount | $ 430 | |||
Subsequent Event [Member] | Notes [Member] | ||||
Senior note percentage | 3.10% |