Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '40-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'MGA |
Entity Registrant Name | 'MAGNA INTERNATIONAL INC |
Entity Central Index Key | '0000749098 |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Common Stock, Shares Outstanding | 221,151,704 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $34,835 | $30,837 | $28,748 |
Costs and expenses | ' | ' | ' |
Cost of goods sold | 30,287 | 27,019 | 25,434 |
Depreciation and amortization | 1,063 | 801 | 686 |
Selling, general and administrative | 1,616 | 1,510 | 1,382 |
Interest expense (income), net | 16 | 16 | -6 |
Equity income | -196 | -151 | -121 |
Other expense (income), net | 144 | -108 | 156 |
Income from operations before income taxes | 1,905 | 1,750 | 1,217 |
Income taxes | 360 | 324 | 202 |
Net income | 1,545 | 1,426 | 1,015 |
Net loss attributable to non-controlling interests | 16 | 7 | 3 |
Net income attributable to Magna International Inc. | $1,561 | $1,433 | $1,018 |
Earnings per Common Share: | ' | ' | ' |
Basic | $6.85 | $6.17 | $4.26 |
Diluted | $6.76 | $6.09 | $4.20 |
Cash dividends paid per Common Share | $1.28 | $1.10 | $1 |
Average number of Common Shares outstanding during the year [in millions]: | ' | ' | ' |
Basic | 227.9 | 232.4 | 239.3 |
Diluted | 230.8 | 235.2 | 242.8 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $1,545 | $1,426 | $1,015 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Net unrealized (loss) gain on translation of net investment in foreign operations | -134 | 88 | -171 |
Net unrealized (loss) gain on cash flow hedges | -39 | 75 | -41 |
Reclassification of net gain on cash flow hedges to net income | -15 | -18 | -22 |
Reclassification of net loss on pensions to net income | 7 | 11 | 3 |
Pension and post-retirement benefits | 44 | -72 | -52 |
Net unrealized loss on available-for-sale investments | -5 | -4 | -6 |
Other comprehensive (loss) income | -142 | 80 | -289 |
Comprehensive income | 1,403 | 1,506 | 726 |
Comprehensive loss attributable to non-controlling interests | 17 | 5 | 3 |
Comprehensive income attributable to Magna International Inc. | $1,420 | $1,511 | $729 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $1,545 | $1,426 | $1,015 |
Items not involving current cash flows | 1,149 | 708 | 826 |
Profit loss after adjustment of non cash items | 2,694 | 2,134 | 1,841 |
Changes in non-cash operating assets and liabilities | -127 | 72 | -631 |
Cash provided from operating activities | 2,567 | 2,206 | 1,210 |
INVESTMENT ACTIVITIES | ' | ' | ' |
Fixed asset additions | -1,169 | -1,274 | -1,236 |
Purchase of subsidiaries | -9 | -525 | -120 |
Increase in investments and other assets | -192 | -122 | -196 |
Disposal of facilities | 0 | 0 | 112 |
Proceeds from disposition | 163 | 106 | 168 |
Cash used for investment activities | -1,207 | -1,815 | -1,272 |
FINANCING ACTIVITIES | ' | ' | ' |
(Decrease) increase in bank indebtedness | -18 | 42 | 38 |
Repayments of debt | -173 | -309 | -47 |
Issues of debt | 151 | 348 | 146 |
Issues of Common Shares | 63 | 14 | 59 |
Settlement of stock options | -23 | -19 | -30 |
Repurchase of Common Shares | -1,020 | -40 | -407 |
Contribution to subsidiaries by non-controlling interests | 4 | 0 | 20 |
Dividends paid | -284 | -252 | -236 |
Cash used for financing activities | -1,300 | -216 | -457 |
Effect of exchange rate changes on cash and cash equivalents | -28 | 22 | -37 |
Net increase (decrease) in cash and cash equivalents during the year | 32 | 197 | -556 |
Cash and cash equivalents, beginning of year | 1,522 | 1,325 | 1,881 |
Cash and cash equivalents, end of year | $1,554 | $1,522 | $1,325 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $1,554 | $1,522 |
Accounts receivable | 5,246 | 4,774 |
Inventories | 2,637 | 2,512 |
Deferred tax assets | 275 | 170 |
Prepaid expenses and other | 211 | 157 |
Total current assets | 9,923 | 9,135 |
Investments | 391 | 385 |
Fixed assets, net | 5,441 | 5,273 |
Goodwill | 1,440 | 1,473 |
Deferred tax assets | 120 | 90 |
Other assets | 675 | 753 |
Consolidated total assets | 17,990 | 17,109 |
Current liabilities | ' | ' |
Bank indebtedness | 41 | 71 |
Accounts payable | 4,781 | 4,450 |
Accrued salaries and wages | 704 | 617 |
Other accrued liabilities | 1,538 | 1,185 |
Income taxes payable | 6 | 93 |
Deferred tax liabilities | 9 | 19 |
Long-term debt due within one year | 230 | 249 |
Total current liability | 7,309 | 6,684 |
Long-term employee benefit liabilities | 532 | 560 |
Long-term debt | 102 | 112 |
Other long-term liabilities | 208 | 154 |
Deferred tax liabilities | 200 | 141 |
Total liability | 8,351 | 7,651 |
Shareholders' equity | ' | ' |
Common Shares [issued: 221,151,704; 2012 - 233,115,783] | 4,230 | 4,391 |
Contributed surplus | 69 | 80 |
Retained earnings | 5,011 | 4,462 |
Accumulated other comprehensive income | 313 | 496 |
Stockholders equity attributable to Magna International Inc | 9,623 | 9,429 |
Non-controlling interest | 16 | 29 |
Total stockholder's equity | 9,639 | 9,458 |
Total liability and stockholders' equity | $17,990 | $17,109 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, shares issued | 221,151,704 | 233,115,783 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Release of Restricted Stock Units [Member] | Common Shares [Member] | Common Shares [Member] | Contributed Surplus [Member] | Contributed Surplus [Member] | Retained Earnings [Member] | AOCI [Member] | Non-controlling Interests [Member] |
In Millions, except Share data | Release of Restricted Stock Units [Member] | Release of Restricted Stock Units [Member] | |||||||
Beginning Balance at Dec. 31, 2010 | $8,026 | ' | $4,500 | ' | $56 | ' | $2,715 | $752 | $3 |
Beginning Balance, shares at Dec. 31, 2010 | ' | ' | 242,600,000 | ' | ' | ' | ' | ' | ' |
Net income | 1,015 | ' | ' | ' | ' | ' | 1,018 | ' | -3 |
Other comprehensive income (loss) | -289 | ' | ' | ' | ' | ' | ' | -289 | ' |
Contribution to subsidiaries by non-controlling interests | 20 | ' | ' | ' | ' | ' | ' | ' | 20 |
Acquisition of subsidiaries | 7 | ' | ' | ' | ' | ' | ' | ' | 7 |
Shares issued on exercise of stock options | 59 | ' | 69 | ' | -10 | ' | ' | ' | ' |
Shares issued on exercise of stock options, shares | 2,737,253 | ' | 1,400,000 | ' | ' | ' | ' | ' | ' |
Release of restricted stock | 0 | ' | 6 | ' | -6 | ' | ' | ' | ' |
Repurchase and cancellation undernormal course issuer bid | -407 | ' | -204 | ' | ' | ' | -162 | -41 | ' |
Repurchase and cancellation undernormal course issuer bid, shares | ' | ' | -10,700,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 31 | ' | ' | ' | 31 | ' | ' | ' | ' |
Settlement of stock options | -24 | ' | ' | ' | -8 | ' | -16 | ' | ' |
Dividends paid | -236 | ' | 2 | ' | ' | ' | -238 | ' | ' |
Ending Balance at Dec. 31, 2011 | 8,202 | ' | 4,373 | ' | 63 | ' | 3,317 | 422 | 27 |
Ending Balance, shares at Dec. 31, 2011 | ' | ' | 233,300,000 | ' | ' | ' | ' | ' | ' |
Net income | 1,426 | ' | ' | ' | ' | ' | 1,433 | ' | -7 |
Other comprehensive income (loss) | 80 | ' | ' | ' | ' | ' | ' | 78 | 2 |
Acquisition of subsidiaries | 7 | ' | ' | ' | ' | ' | ' | ' | 7 |
Shares issued on exercise of stock options | 14 | ' | 19 | ' | -5 | ' | ' | ' | ' |
Shares issued on exercise of stock options, shares | 1,525,159 | ' | 400,000 | ' | ' | ' | ' | ' | ' |
Release of restricted stock | 0 | 0 | 5 | 5 | -5 | -5 | ' | ' | ' |
Repurchase and cancellation undernormal course issuer bid | -42 | ' | -18 | ' | ' | ' | -20 | -4 | ' |
Repurchase and cancellation undernormal course issuer bid, shares | ' | ' | -800,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 39 | ' | ' | ' | 39 | ' | ' | ' | ' |
Settlement of stock options | -16 | ' | ' | ' | -7 | ' | -9 | ' | ' |
Dividends paid | -252 | ' | 7 | ' | ' | ' | -259 | ' | ' |
Dividends paid, shares | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 9,458 | ' | 4,391 | ' | 80 | ' | 4,462 | 496 | 29 |
Ending Balance, shares at Dec. 31, 2012 | ' | ' | 233,100,000 | ' | ' | ' | ' | ' | ' |
Net income | 1,545 | ' | ' | ' | ' | ' | 1,561 | ' | -16 |
Other comprehensive income (loss) | -142 | ' | ' | ' | ' | ' | ' | -141 | -1 |
Issues of shares by subsidiaries | 4 | ' | ' | ' | ' | ' | ' | ' | 4 |
Shares issued on exercise of stock options | 63 | ' | 84 | ' | -21 | ' | ' | ' | ' |
Shares issued on exercise of stock options, shares | 2,805,969 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Release of restricted stock | 0 | 0 | 6 | 9 | -6 | -9 | ' | ' | ' |
Repurchase and cancellation undernormal course issuer bid | -1,020 | ' | -271 | ' | ' | ' | -707 | -42 | ' |
Repurchase and cancellation undernormal course issuer bid, shares | ' | ' | -14,100,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 34 | ' | ' | ' | 34 | ' | ' | ' | ' |
Settlement of stock options | -19 | ' | ' | ' | -9 | ' | -10 | ' | ' |
Dividends paid | -284 | ' | 11 | ' | ' | ' | -295 | ' | ' |
Dividends paid, shares | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $9,639 | ' | $4,230 | ' | $69 | ' | $5,011 | $313 | $16 |
Ending Balance, shares at Dec. 31, 2013 | ' | ' | 221,200,000 | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
1. SIGNIFICANT ACCOUNTING POLICIES | |
Magna International Inc. [collectively “Magna” or the “Company”] is a leading global automotive supplier with 316 manufacturing operations and 84 product development, engineering and sales centres in 29 countries. Magna has over 125,000 employees focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s product capabilities include body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. | |
The consolidated financial statements have been prepared in U.S. dollars following U.S. generally accepted accounting principles [“GAAP”]. | |
Principles of consolidation | |
The consolidated financial statements include the accounts of Magna and its subsidiaries, some of which have a non-controlling interest. | |
Financial instruments | |
The Company classifies all of its financial assets and financial liabilities as held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets, or other financial liabilities. Held-for-trading financial instruments, which include cash and cash equivalents and the Company’s investment in asset-backed commercial paper [“ABCP”] are measured at fair value and all gains and losses are included in net income in the period in which they arise. Held-to-maturity investments, which include long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements, are recorded at amortized cost using the effective interest method. Loans and receivables, which include accounts receivable, long-term receivables and accounts payable, are recorded at amortized cost using the effective interest method. Available-for-sale financial assets are recorded at cost and are subsequently measured at fair value with all revaluation gains and losses included in other comprehensive income. | |
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 income. 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 income. | |
Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. Most of the Company’s foreign exchange contracts are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded on a gross basis in prepaid expenses, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive 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 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 are valued at the lower of cost and market, with cost being determined substantially on a first-in, first-out basis. Cost includes the cost of materials plus direct labour applied to the product and the applicable share of manufacturing overhead. | |
Outsourced tooling inventories are valued at the lower of subcontracted costs and market. | |
Investments | |
The Company accounts for its investments in which it has significant influence on the equity basis. Investments also include the Company’s investment in ABCP, public company shares and long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements pursuant to local tax laws. | |
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% to 5% for buildings, 7% to 10% for general purpose equipment and 10% to 33% for special purpose equipment. | |
Definite-lived intangible assets, which have arisen principally through acquisitions, are recorded in other assets and are amortized on a straight-line basis over their estimated useful lives, typically over periods not exceeding five years. | |
The Company assesses fixed and other long-lived assets [excluding goodwill] for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the long-lived assets is generally determined using estimated discounted future cash flows. | |
Goodwill | |
Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on an annual basis. Goodwill impairment is evaluated between annual tests upon the occurrence of certain events or circumstances. 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, the fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of impairment, if any. The fair value of a reporting unit is generally determined using the estimated discounted future cash flows of the reporting unit. | |
Other assets | |
Other assets include the long-term portion of certain receivables, which represent the recognized sales value of tooling and design and engineering services provided to customers under certain long-term contracts. The receivables will be paid in full upon completion of the contracts or in instalments based on forecasted production volumes. In the event that actual production volumes are less than those forecasted, a reimbursement for any shortfall will be made. | |
Preproduction costs related to long-term supply agreements | |
Pre-operating costs incurred in establishing new facilities that require substantial time to reach commercial production capability are expensed as incurred. | |
Costs incurred [net of customer subsidies] related to design and engineering, which are paid for as part of subsequent production piece price amounts, are expensed as incurred unless a contractual guarantee for reimbursement exists. | |
Costs incurred [net of customer subsidies] related to design and development costs for moulds, dies and other tools that the Company does not own [and that will be used in, and paid for as part of the piece price amount for, subsequent production] are expensed as incurred unless the supply agreement provides a contractual guarantee for reimbursement or the non-cancellable right to use the moulds, dies and other tools during the supply agreement. | |
Where these preproduction costs are deemed to be a single unit of account combined with a subsequent parts production, the costs deferred in the above circumstances are included in other assets and amortized on a units-of-production basis to cost of goods sold over the anticipated term of the supply agreement. | |
Warranty | |
The Company 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. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience. | |
Product liability provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims on product default issues. Recall costs are costs incurred when government regulators and/or the customer decides to recall a product due to a known or suspected performance issue, and the Company is required to participate, either voluntarily or involuntarily. Costs typically include the cost of the product being replaced, the customer’s cost of the recall and labour to remove and replace the defective part. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. In making this estimate, judgment is required as to the number of units that may be returned as a result of the recall, the total cost of the recall campaign and the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company. | |
Employee future benefit plans | |
The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of the accrued benefit obligation at the beginning of the year and the fair value, or market related value, of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable. | |
The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation [PBO]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans in long-term employee benefit liabilities. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next twelve months, is reflected in accrued liabilities. This is determined on a plan by plan basis. | |
Asset retirement obligation | |
The Company recognizes its obligation to restore leased premises at the end of the lease by recording at lease inception the estimated fair value of this obligation as other long-term liabilities with a corresponding amount recognized as fixed assets. The fixed asset amount is amortized over the period from lease inception to the time the Company expects to vacate the premises, resulting in both depreciation and interest charges. The estimated fair value of the obligation is assessed for changes in the expected timing and extent of expenditures with changes related to the time value of money recorded as interest expense. | |
Revenue recognition | |
Revenue from the sale of manufactured products is recognized when the price is fixed or determinable, collectability is reasonably assured and upon shipment to [or receipt by customers, depending on contractual terms], and acceptance by customers. | |
For revenue arrangements entered into prior to January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of the subsequent parts production or vehicle assembly. For revenue arrangements entered into or materially modified on or after January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis. Revenues from significant engineering services and tooling contracts that qualify as separate revenue elements are recognized on a percentage-of-completion basis. Percentage-of-completion is generally determined based on the proportion of accumulated expenditures to date as compared to total anticipated expenditures. | |
Revenue and cost of goods sold, including amounts from engineering and tooling contracts, are presented on a gross basis in the consolidated statements of income and comprehensive income when the Company is acting as principal and is subject to significant risks and rewards in connection with the process of bringing the product to its final state and in the post-sale dealings with its customers. Otherwise, components of revenues and related costs are presented on a net basis. With respect to vehicle assembly sales, where Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. These programs are accounted for on a full-cost basis under which sales and cost of goods sold include these input costs. | |
Government assistance | |
The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received. When a government loan is issued to the Company at a below-market rate of interest, the loan is initially recorded at its net present value, and accreted to its face value over the period of the loan. The benefit of the below-market rate of interest is accounted for like a government grant. It is measured as the difference between the initial carrying value of the loan and the cash proceeds received. | |
Income taxes | |
The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | |
No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are either considered to be reinvested for the foreseeable future or if they are available for repatriation and are not subject to further tax on remittance. Taxes will be 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 significant tax on remittance. | |
Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. | |
Stock-based compensation | |
Compensation expense is recognized for stock options based upon the fair value of the options at the grant or modification date. The fair value of the options is recognized over the vesting period of the options as compensation expense in selling, general and administrative expense with a corresponding increase to contributed surplus. | |
The fair value of stock options is estimated at the grant or modification date using the Black-Scholes option pricing model. This model requires the input of a number of assumptions, including expected dividend yields, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management’s best estimates, they involve inherent uncertainties based on market conditions generally outside the Company’s control. If other assumptions are used, stock-based compensation expense could be significantly impacted. | |
As stock options are exercised, the proceeds received on exercise, in addition to the portion of the contributed surplus balance related to those stock options, is credited to Common Shares and contributed surplus is reduced accordingly. | |
The Company’s restricted stock plans and certain restricted share unit plans are measured at fair value at the date of grant or modification and amortized to compensation expense from the effective date of the grant to the final vesting date in selling, general and administrative expense with a corresponding increase to contributed surplus. As restricted stock or restricted share units are released under the plans, the portion of the contributed surplus balance relating to the restricted stock or restricted share units is credited to Common Shares and released from contributed surplus. Certain other restricted share unit plans are recorded as liabilities at the date of grant and are marked to market in selling, general and administrative expenses each period until settled. | |
Comprehensive income | |
Other comprehensive income includes unrealized gains and losses on translation of the Company’s net investment in self-sustaining foreign operations, the change in fair value of available-for-sale investments, net of taxes, change in unamortized actuarial amounts, net of taxes and to the extent that cash flow hedges are effective, the change in their fair value, net of income taxes. | |
Accumulated other comprehensive income is a separate component of shareholders’ equity which includes the accumulated balances of all components of other comprehensive income which are recognized in comprehensive income but excluded from net income. | |
Earnings per Common Share | |
Basic earnings per Common Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares outstanding during the year. | |
Diluted earnings per Common Share are calculated on the weighted average number of Common Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method. | |
Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share. | |
Use of estimates | |
The preparation of the consolidated financial statements in conformity with U.S. 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. |
Accounting_Standards
Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Accounting Standards | ' |
2. ACCOUNTING STANDARDS | |
Intangibles | |
During 2012, the Financial Accounting Standards Board [“FASB”] issued Accounting Standards Update [“ASU”] 2012-02, “Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. ASU 2012-02 provides an option to first perform a qualitative assessment to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
Accumulated Other Comprehensive Income [“AOCI”] | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, which is effective prospectively for public companies for reporting periods beginning after December 15, 2012. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of AOCI on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. The ASU was adopted effective January 1, 2013 and did not have a material impact on the Company’s consolidated financial statements. The required disclosures were added to note 20[a]. | |
Balance sheet offsetting | |
In December 2011, the FASB issued ASU 2011-11, “Disclosure about Offsetting Assets and Liabilities,” which requires additional disclosures regarding offsetting and related arrangements. In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” which clarifies that ordinary trade receivables and receivables in general are not within the scope of ASU 2011-11. The balance sheet offsetting disclosures would apply to derivatives that are subject to enforceable master netting arrangements or similar agreements. The ASU was adopted effective January 1, 2013 and did not have a material impact on the Company’s consolidated financial statements. The required disclosures were added to note 21[d]. | |
Future Accounting Standards | |
Unrecognized tax benefits | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The Company currently presents its unrecognized tax benefits in accordance with ASU 2013-11 and therefore this pronouncement will not result in a change to the Company’s consolidated financial statements. | |
Joint and several liability arrangements | |
In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. ASU 2013-04 requires reporting and disclosure about obligations resulting from joint and several liability arrangements within the scope of Subtopic 405-40 for which the total amount of the obligation is fixed at the reporting date. ASU 2013-04 is effective for fiscal years and interim periods beginning after December 15, 2013. The impact, if any, on the Company’s consolidated financial statements is currently being assessed. |
Other_Expense_Income_Net
Other Expense (Income), Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Expense (Income), Net | ' | ||||||||||||
3. OTHER EXPENSE (INCOME), NET | |||||||||||||
Other expense (income), net consists of significant items such as: restructuring charges generally related to plant closures; impairment charges; gains or losses on disposal of facilities; re-measurement gains on acquisitions; and other items not reflective of on-going operating profit or loss. Other expense (income), net consists of: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America [a] | |||||||||||||
Impairment of long-lived assets | $ | 23 | $ | 2 | $ | 7 | |||||||
Re-measurement gain of STT | 0 | (35 | ) | 0 | |||||||||
Settlement agreement | 0 | 0 | 11 | ||||||||||
Insurance proceeds | 0 | 0 | (15 | ) | |||||||||
23 | (33 | ) | 3 | ||||||||||
Europe [b] | |||||||||||||
Restructuring charges | 89 | 55 | 0 | ||||||||||
Impairment of long-lived assets | 0 | 23 | 14 | ||||||||||
Loss on disposal of facility | 0 | 0 | 129 | ||||||||||
Customer bankruptcy | 0 | 0 | 11 | ||||||||||
89 | 78 | 154 | |||||||||||
Rest of World [c] | |||||||||||||
Impairment of long-lived assets | 10 | 0 | 0 | ||||||||||
Impairment of goodwill | 22 | 0 | 0 | ||||||||||
32 | 0 | 0 | |||||||||||
Corporate [d] | |||||||||||||
Re-measurement gain of E-Car | 0 | (153 | ) | 0 | |||||||||
Write down of real estate | 0 | 0 | 9 | ||||||||||
Gain on sale of investment | 0 | 0 | (10 | ) | |||||||||
0 | (153 | ) | (1 | ) | |||||||||
$ | 144 | $ | (108 | ) | $ | 156 | |||||||
[a] | North America | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
In conjunction with its annual business planning cycle, during the fourth quarter of 2013 the Company recorded long-lived asset impairment charges of $23 million [$11 million after tax and non-controlling interests] in North America related to battery research equipment in Canada. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During 2012 the Company recorded long-lived asset impairment charges of $2 million [$1 million after tax] in North America related to specific fixed assets at a metal fabricating facility in the United States. | |||||||||||||
On October 26, 2012, the Company acquired the remaining 50% interest in STT Technologies Inc. [“STT”] for cash consideration of $55 million. STT is a manufacturer of automotive pumps with operations in Canada and Mexico. Prior to the acquisition, the Company accounted for this investment using the equity method of accounting. | |||||||||||||
The incremental investment in STT was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measures its pre-existing investment in STT at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s investment immediately before the closing date was $55 million, which resulted in the recognition of a non-cash gain of $35 million [$35 million after tax]. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During 2011, a settlement agreement was finalized in connection with the settlement of certain patent infringement and other claims. The Company recorded an $11 million expense in the third quarter of 2011 in relation to these arrangements. | |||||||||||||
During 2011, the Company recorded long-lived asset impairment charges of $7 million [$7 million after tax] related to a roof systems facility in the United States. | |||||||||||||
During 2011, the Company received proceeds pursuant to an insurance claim for fire damages related to an interior systems facility in the United States. The proceeds received were $15 million in excess of the damaged assets’ net book value and the losses previously recognized, and was recorded in income. | |||||||||||||
[b] | Europe | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
As a result of recent customer announcements related to plant closures, the profitability of certain facilities and the level of future booked business, management determined that restructuring would have to be completed in its traditional European markets in order to remain cost competitive over the long-term. As a result, during 2013, the Company recorded net restructuring charges of $89 million [$64 million after tax] in Europe at its exterior and interior systems operations related primarily to the closure of a facility in Belgium. | |||||||||||||
Substantially all of these restructuring costs will be paid subsequent to 2013. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During the fourth quarter of 2012, the Company recorded restructuring charges of $55 million [$53 million after tax] in Europe primarily at its exterior and interior systems and complete vehicle and engineering services operations. | |||||||||||||
During the fourth quarter of 2012, the Company recorded long-lived asset impairment charges of $23 million [$22 million after tax] primarily related to exterior and interior systems facilities. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During the third quarter of 2011, the Company sold an interior systems operation located in Germany and recorded a loss on disposal of $113 million. This operation, whose long-lived assets were substantially impaired in 2010, had a history of losses which were projected to continue throughout the business planning period. Under the terms of the 2011 sale arrangements [the “SPA”], the Company agreed to fund the buyer $67 million, to be satisfied with certain working capital items, cash and the assumption of certain liabilities. Final settlement of the SPA did not occur during 2011 and in the fourth quarter of 2011 an additional $16 million was accrued in relation to the ongoing disputes with the purchaser bringing the total loss on disposal to $129 million. As more fully described in note 6, on June 4, 2012, the Company re-acquired the above operation. | |||||||||||||
During 2011, the Company recorded long-lived asset impairment charges of $14 million [$13 million after tax] related to various facilities in Europe. | |||||||||||||
During 2011, the Company recorded an $11 million charge related to the insolvency of Saab. | |||||||||||||
[c] | Rest of World | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
In conjunction with its annual business planning cycle, during 2013 the Company recorded long-lived asset impairment charges of $10 million [$10 million after tax], related primarily to fixed assets at the Company’s Seating operations in South America. | |||||||||||||
In addition, during 2013 the Company recorded goodwill impairment charges of $22 million [$22 million after tax] related to the Company’s metal stamping operations. | |||||||||||||
[d] | Corporate | ||||||||||||
For the year ended December 31, 2012 | |||||||||||||
On August 31, 2012, the Company acquired the controlling 27% interest in the Magna E-Car Systems L.P. [“E-Car”] partnership from a company affiliated with the Stronach Group for cash consideration of $75 million. | |||||||||||||
Prior to the acquisition, the Company held the remaining 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting. The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measure its pre-existing investment in E-Car at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s partnership interest immediately before the closing date was $205 million, which resulted in the recognition of a non-cash gain of $153 million [$125 million after tax]. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During 2011, five excess corporate real estate assets were sold to entities associated with the Company’s Founder and Chairman, Mr. Stronach and/or the Company’s former Co-Chief Executive Officer, Siegfried Wolf. The sales were approved by the independent members of Magna’s Board of Directors based on independent fair market appraisals. The appraised fair value range for the properties was less than their carrying value and, accordingly, the Company recorded a $9 million impairment charge in 2011. | |||||||||||||
During 2011, the Company sold its 40% non-controlling interest in an equity accounted investment for proceeds of $151 million [Cdn$147 million] and recognized a $10 million gain on disposal. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
4. EARNINGS PER SHARE | |||||||||||||
Earnings per share are computed as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,561 | $ | 1,433 | $ | 1,018 | |||||||
Average number of Common Shares outstanding during the year | 227.9 | 232.4 | 239.3 | ||||||||||
Basic earnings per Common Share | $ | 6.85 | $ | 6.17 | $ | 4.26 | |||||||
Diluted earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,561 | $ | 1,433 | $ | 1,018 | |||||||
Average number of Common Shares outstanding during the year | 227.9 | 232.4 | 239.3 | ||||||||||
Adjustments | |||||||||||||
Stock options and restricted stock [a] | 2.9 | 2.8 | 3.5 | ||||||||||
230.8 | 235.2 | 242.8 | |||||||||||
Diluted earnings per Common Share | $ | 6.76 | $ | 6.09 | $ | 4.2 | |||||||
[a] | Diluted earnings per Common Share exclude 0.1 million [2012 - 2.3 million; 2011 - 2.1 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. |
Details_of_Consolidated_Statem
Details of Consolidated Statements of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Details of Consolidated Statements of Cash Flows | ' | ||||||||||||
5. DETAILS OF CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
[a] | Cash and cash equivalents consist of: | ||||||||||||
2013 | 2012 | ||||||||||||
Bank term deposits, bankers’ acceptances and government paper | $ | 1,331 | $ | 1,220 | |||||||||
Cash | 223 | 302 | |||||||||||
$ | 1,554 | $ | 1,522 | ||||||||||
[b] | Items not involving current cash flows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization | $ | 1,063 | $ | 801 | $ | 686 | |||||||
Other non-cash charges | 189 | 154 | 110 | ||||||||||
Amortization of other assets included in cost of goods sold | 138 | 113 | 80 | ||||||||||
Non-cash portion of Other expense (income), net [note 3] | 0 | (188 | ) | 147 | |||||||||
Impairment charges [note 3] | 55 | 25 | 0 | ||||||||||
Deferred income taxes [note 11] | (100 | ) | (46 | ) | (76 | ) | |||||||
Equity income | (196 | ) | (151 | ) | (121 | ) | |||||||
$ | 1,149 | $ | 708 | $ | 826 | ||||||||
[c] | Changes in non-cash operating assets and liabilities: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accounts receivable | $ | (584 | ) | $ | (46 | ) | $ | (909 | ) | ||||
Inventories | (141 | ) | (315 | ) | (282 | ) | |||||||
Prepaid expenses and other | (56 | ) | 36 | (49 | ) | ||||||||
Accounts payable | 329 | 249 | 475 | ||||||||||
Accrued salaries and wages | 87 | 37 | 80 | ||||||||||
Other accrued liabilities | 298 | 97 | 87 | ||||||||||
Income taxes payable | (56 | ) | 16 | (29 | ) | ||||||||
Deferred revenue | (4 | ) | (2 | ) | (4 | ) | |||||||
$ | (127 | ) | $ | 72 | $ | (631 | ) | ||||||
Business_Acquisitions
Business Acquisitions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Business Acquisitions | ' | ||||||||||||
6. BUSINESS ACQUISITIONS | |||||||||||||
Acquisitions in the year ended December 31, 2013 | |||||||||||||
In November 2013, the Company acquired the remaining 49% interest of Textile Competence Centre Kft, a textile plant in Germany; along with certain fixed assets and licenses employed in the business that were owned by the non-controlling shareholder, for cash consideration of $9 million. Prior to the acquisition, the Company was fully consolidating this entity and recording a non-controlling interest equal to the 49% interest not owned by the Company. | |||||||||||||
The net effect of this and other small acquisitions on the Company’s 2013 consolidated balance sheet were increases in fixed assets of $5 million, goodwill of $3 million, other assets of $2 million, and other long-term liabilities of $2 million and a reduction of non-controlling interest of $1 million. | |||||||||||||
Acquisitions in the year ended December 31, 2012 | |||||||||||||
In January 2012, the Company acquired BDW technologies group, a structural casting supplier of aluminium components, which has operations in Germany, Poland and Hungary. The acquired business has sales primarily to Volkswagen, Audi, Porsche, Mercedes-Benz, Ferrari and ZF. | |||||||||||||
As described in note 3, during the third quarter of 2011 the Company sold an interior systems operation [the “Business”] located in Germany. Subsequent to disposal, the Business continued to incur significant financial losses. By the end of the first quarter of 2012, the Business was experiencing severe liquidity issues. Although the Company had no legal obligation to do so, in light of customer relationship issues and other relevant considerations, on June 4, 2012, the Company re-acquired the Business. | |||||||||||||
As more fully described in note 3, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership for cash consideration of $56 million [net of $19 million cash acquired]. The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition which requires that all assets acquired and liabilities of E-Car be measured at fair value. The purchase equation allocated $210 million to intangible assets which are primarily technology based intangibles. Given the continuing uncertainties regarding the timing and magnitude of a viable electric vehicle industry, competing electric vehicle technologies, significantly larger competitors, and other factors, the Company determined that the intangible assets would be amortized on a straight-line basis over the period ended December 31, 2013. At December 31, 2013, these intangible assets have been fully amortized [note 12]. | |||||||||||||
As more fully described in note 3, on October 26, 2012 the Company acquired the remaining 50% interest in STT. The incremental investment in STT required that all assets acquired and liabilities of STT be measured at fair value. | |||||||||||||
In December 2012, the Company acquired ixetic Verwaltungs GmbH [“ixetic”], a manufacturer of automotive vacuum, engine and transmission pumps, which has operations in Germany, Bulgaria and China as well as representation in Brazil, India, Japan and the United States. The acquired business has sales primarily to BMW, Daimler, Volkswagen, Schaeffler, ZF, Ford, Chrysler, Renault-Nissan and Toyota. | |||||||||||||
The total consideration for these acquisitions was $525 million paid in cash [net of cash acquired]. | |||||||||||||
The net effect of the acquisitions on the Company’s 2012 consolidated balance sheet and as well as certain adjustments recorded during 2013 to the preliminary purchase price allocations are as follows: | |||||||||||||
2012 | 2013 | Final | |||||||||||
Preliminary | Adjustments | Allocation | |||||||||||
Allocation | |||||||||||||
Non-cash working capital | $ | (129 | ) | $ | (47 | ) | $ | (176 | ) | ||||
Investments | 3 | (3 | ) | 0 | |||||||||
Fixed assets | 501 | (36 | ) | 465 | |||||||||
Goodwill | 289 | (2 | ) | 287 | |||||||||
Other assets | 94 | 99 | 193 | ||||||||||
Deferred tax assets | 0 | 5 | 5 | ||||||||||
Purchase intangibles | 215 | 0 | 215 | ||||||||||
Long-term employee benefit liabilities | (49 | ) | 1 | (48 | ) | ||||||||
Long-term debt | (25 | ) | (2 | ) | (27 | ) | |||||||
Other long-term liabilities | (35 | ) | 0 | (35 | ) | ||||||||
Deferred tax liabilities | (68 | ) | (15 | ) | (83 | ) | |||||||
Non-controlling interests | (11 | ) | 0 | (11 | ) | ||||||||
Fair value of net assets (excluding cash) | $ | 785 | $ | 0 | $ | 785 | |||||||
The above adjustments had an insignificant impact on the 2013 consolidated statement of income since the adjustments related primarily to the acquisitions that were completed in the fourth quarter of 2012. | |||||||||||||
Acquisitions in the year ended December 31, 2011 | |||||||||||||
In December 2011, the Company acquired ThyssenKrupp Automotive Systems Industrial do Brasil Ltda, which consists of four manufacturing facilities in Brazil that assemble chassis structural components and modules. The acquired business has sales to Ford, Fiat, Renault-Nissan, Honda and PSA. | |||||||||||||
In August 2011, the Company acquired Grenville Castings Ltd., a structural casting supplier of aluminum components located in Canada. The acquired business has sales primarily to Ford and General Motors. | |||||||||||||
In June 2011, the Company acquired Continental Plastics Co., a supplier of interior products, mainly door panel and seat back assemblies. The acquired business is located in the United States with sales primarily to General Motors. | |||||||||||||
In May 2011, the Company acquired a 51% interest in Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd., a supplier of exterior products, mainly front and rear bumpers. The acquired business is located in China with sales primarily to Chery Automobile Co. Ltd. | |||||||||||||
In January 2011, the Company acquired Automobiltechnik Dürbheim, a manufacturer of tapping plates which assist in the fastening of bolts. The acquired business is located in Germany and has sales to various OEMs. | |||||||||||||
The total consideration for these acquisitions was $157 million, consisting of $120 million paid in cash [net of cash acquired] and $37 million of assumed debt. | |||||||||||||
The net effect of the acquisitions on the Company’s 2011 consolidated balance sheet were increases in non-cash working capital of $35 million, fixed assets of $95 million, goodwill of $29 million, deferred tax assets of $6 million, other long-term liabilities of $28 million, and non-controlling interest of $7 million. | |||||||||||||
Pro forma impact [unaudited] | |||||||||||||
If the acquisitions completed during 2013 and 2012 occurred on January 1, 2012, the Company’s unaudited pro forma consolidated sales and net income for the year ended December 31, 2013 would have been unchanged [2012 - $31.5 billion and $1.4 billion, respectively]. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
7. INVENTORIES | |||||||||
Inventories consist of: | |||||||||
2013 | 2012 | ||||||||
Raw materials and supplies | $ | 947 | $ | 911 | |||||
Work-in-process | 273 | 260 | |||||||
Finished goods | 339 | 283 | |||||||
Tooling and engineering | 1,078 | 1,058 | |||||||
$ | 2,637 | $ | 2,512 | ||||||
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, 2013 | |||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||
Investments | ' | ||||||||||||
8. INVESTMENTS | |||||||||||||
[a] | At December 31, 2013, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2012 - Cdn$107 million]. These investments did not settle at the scheduled maturity during the third quarter of 2007 due to ABCP market liquidity issues, and as a result the Company reclassified its ABCP to long-term investments from cash and cash equivalents. | ||||||||||||
On January 16, 2009, a restructuring plan was finalized and restructuring Notes [the “Notes”] were issued in exchange for existing investments. The Notes issued included: [i] notes in a Master Trust (MAV2 - A Notes), which were rated A by DBRS with a face amount value of Cdn$102 million; [ii] subordinate notes (MAV2 - B and C Notes) which were unrated with a face amount value of Cdn$9 million; and [iii] various tracking notes which were issued in exchange for assets deemed ineligible for inclusion in the Master Trust with a face amount value of Cdn$23 million. The criteria for eligibility into the Master Trust included credit quality, an expected return of the assets and arrangements with individual asset providers. The performance of the tracking notes is tied directly to actual performance of the specific assets. | |||||||||||||
The following is a continuity of the Company’s investment in ABCP: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 90 | $ | 82 | $ | 84 | |||||||
Valuation adjustment [i] | 8 | 15 | 0 | ||||||||||
Cash receipts | 0 | (9 | ) | 0 | |||||||||
Foreign exchange and other | (6 | ) | 2 | (2 | ) | ||||||||
$ | 92 | $ | 90 | $ | 82 | ||||||||
[i] | The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. During the year ended December 31, 2013, the Company recorded an $8 million [2012 - $15 million] increase in the carrying value of its investment in ABCP in selling, general and administrative expense, due to a reduction of the spread between the anticipated return on the restructured notes and current market indices. | ||||||||||||
[b] | The Company’s net income includes the proportionate share of net income or loss of its equity method investees. When a proportionate share of net income is recorded, it increases equity income in the consolidated statements of income and the carrying value of those investments. Conversely, when a proportionate share of a net loss is recorded, it decreases equity income in the consolidated statements of income and the carrying value of those investments. The following is the Company’s combined proportionate share of the major components of the financial statements of the entities in which the Company accounts for using the equity method: | ||||||||||||
Balance Sheets | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 373 | $ | 344 | |||||||||
Long-term assets | $ | 82 | $ | 74 | |||||||||
Current liabilities | $ | 167 | $ | 150 | |||||||||
Long-term liabilities | $ | 76 | $ | 60 | |||||||||
Statements of Income | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales | $ | 1,013 | $ | 967 | $ | 881 | |||||||
Cost of goods sold, expenses and income taxes | 839 | 814 | 805 | ||||||||||
Net income | $ | 174 | $ | 153 | $ | 76 | |||||||
Sales to equity method investees were approximately $144 million, $171 million and $76 million in 2013, 2012 and 2011, respectively. |
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
9. FIXED ASSETS | |||||||||
Fixed assets consist of: | |||||||||
2013 | 2012 | ||||||||
Cost | |||||||||
Land | $ | 236 | $ | 238 | |||||
Buildings | 1,592 | 1,513 | |||||||
Machinery and equipment | 11,510 | 11,047 | |||||||
13,338 | 12,798 | ||||||||
Accumulated depreciation | |||||||||
Buildings | (579 | ) | (541 | ) | |||||
Machinery and equipment | (7,318 | ) | (6,984 | ) | |||||
$ | 5,441 | $ | 5,273 | ||||||
Included in the cost of fixed assets are construction in progress expenditures of $762 million [2012 - $939 million] that have not been depreciated. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
10. GOODWILL | |||||||||||||||||||||
The following is a continuity of the Company’s goodwill by segment: | |||||||||||||||||||||
North | Europe | Asia | Rest of | Total | |||||||||||||||||
America | World | ||||||||||||||||||||
Balance, December 31, 2011 | $ | 644 | $ | 392 | $ | 74 | $ | 86 | $ | 1,196 | |||||||||||
Acquisitions [note 6] | 75 | 206 | 0 | 8 | 289 | ||||||||||||||||
Foreign exchange and other | (18 | ) | 13 | 0 | (7 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2012 | 701 | 611 | 74 | 87 | 1,473 | ||||||||||||||||
Acquisitions [note 6] | (24 | ) | 22 | 3 | 0 | 1 | |||||||||||||||
Impairments [note 3] | 0 | 0 | 0 | (22 | ) | (22 | ) | ||||||||||||||
Reallocation between reporting segments [i] | 0 | 0 | 51 | (51 | ) | 0 | |||||||||||||||
Foreign exchange and other | (21 | ) | 22 | 1 | (14 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2013 | $ | 656 | $ | 655 | $ | 129 | $ | 0 | $ | 1,440 | |||||||||||
[i] | During the fourth quarter of 2013, the Company began reporting Asia and Rest of World as separate reporting segments [note 23]. As a result, goodwill was assigned to the reporting segments using a relative fair value allocation. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
11. 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: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Canadian statutory income tax rate | 26.5 | % | 26.5 | % | 28.3 | % | |||||||
Manufacturing and processing profits deduction | (0.4 | ) | (0.7 | ) | (0.8 | ) | |||||||
Foreign rate differentials | (1.5 | ) | (1.5 | ) | (2.0 | ) | |||||||
Losses not benefited | 5.3 | 5.8 | 11.4 | ||||||||||
Utilization of losses previously not benefited | (1.0 | ) | (0.3 | ) | (10.2 | ) | |||||||
Earnings of equity accounted investees | (1.1 | ) | (1.2 | ) | (1.6 | ) | |||||||
Withholding tax | 1.4 | 0 | 0 | ||||||||||
Valuation allowance on deferred tax assets [i] | (1.1 | ) | (5.0 | ) | (6.5 | ) | |||||||
Mexican flat tax [ii] | (1.9 | ) | 0 | 0 | |||||||||
Research and development tax credits [iii] | (4.3 | ) | (2.3 | ) | (1.6 | ) | |||||||
Reserve for uncertain tax positions | (2.3 | ) | (1.0 | ) | (0.4 | ) | |||||||
Re-measurement gains | 0 | (1.1 | ) | 0 | |||||||||
Other | (0.7 | ) | (0.7 | ) | 0 | ||||||||
Effective income tax rate | 18.9 | % | 18.5 | % | 16.6 | % | |||||||
[i] | GAAP requires that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more likely than not” standard. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets. | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
The Company had valuation allowances against its deferred tax assets in certain European countries. These valuation allowances were required because of historical losses and uncertainty as to the timing of when the Company would be able to generate the necessary level of earnings to recover these deferred tax assets. Over the past few years some of the Company’s European operations have delivered sustained profits which together with forecasted profits have allowed the Company to release a portion of the valuation allowances set up against its European deferred tax assets. Additionally, during 2013, the Company released a portion of its valuation allowance in China. The effect of these valuation allowance releases in 2013 is $21 million. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
The Company had valuation allowances against its deferred tax assets in the United Kingdom and Germany. Based on financial forecasts and continued anticipated growth, the Company released a portion of the valuation allowance set up against its deferred tax assets in the United Kingdom; and in Germany, the BDW and ixetic acquisitions allowed the Company to release a portion of the valuation allowance set up against its German deferred tax assets. Additionally, during 2012 the Company released a portion of its valuation allowances in Mexico and China, which were partially offset by a new valuation allowance against all of its deferred tax assets in Brazil. The net effect of all these valuation allowance releases in 2012 was $89 million. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
The Company had valuation allowances against all of its deferred tax assets in the United States. During 2010 and 2011, the Company’s United States operations delivered sustained profits. Based on financial forecasts and the continued anticipated growth for the U.S. market, the Company released $78 million of the U.S. valuation allowance in the fourth quarter of 2011. | |||||||||||||
[ii] | During the fourth quarter of 2013, the Company recorded a tax benefit of $36 million as a result of the elimination of the Mexican flat tax, which became effective on January 1, 2014. Previously, there were two taxes in Mexico; a flat tax and an income tax and taxpayers were required to pay tax based on the greater of the two. Deferred taxes were also maintained by the Company based on calculations under one or the other of these taxes. The elimination of the flat tax allowed the Company to reverse its net deferred tax liabilities for its entities under that tax and establish a deferred tax asset under the income tax. | ||||||||||||
[iii] | For the year ended December 31, 2013, the amount includes a tax benefit of $36 million in connection with a settlement with the United States Internal Revenue Service, of claims for research and development tax credits covering years 2008 and 2009 and a resulting change in the Company’s estimate of the amount of similar claims for subsequent periods. | ||||||||||||
[b] | The details of income before income taxes by jurisdiction are as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Canadian | $ | 653 | $ | 944 | $ | 710 | |||||||
Foreign | 1,252 | 806 | 507 | ||||||||||
$ | 1,905 | $ | 1,750 | $ | 1,217 | ||||||||
[c] | The details of the income tax provision (recovery) are as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Canadian | $ | 159 | $ | 170 | $ | 115 | |||||||
Foreign | 301 | 200 | 163 | ||||||||||
460 | 370 | 278 | |||||||||||
Deferred | |||||||||||||
Canadian | (29 | ) | (6 | ) | 7 | ||||||||
Foreign | (71 | ) | (40 | ) | (83 | ) | |||||||
(100 | ) | (46 | ) | (76 | ) | ||||||||
$ | 360 | $ | 324 | $ | 202 | ||||||||
[d] | Deferred income taxes have been provided on temporary differences, which consist of the following: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax depreciation greater (less) than book depreciation | $ | (23 | ) | $ | 13 | $ | 51 | ||||||
Book amortization less than (in excess of) tax amortization | (57 | ) | 16 | 0 | |||||||||
Liabilities currently not deductible for tax | (48 | ) | (29 | ) | (28 | ) | |||||||
Net tax losses (benefited) utilized | 50 | (11 | ) | (37 | ) | ||||||||
Change in valuation allowance on deferred tax assets | (21 | ) | (89 | ) | (78 | ) | |||||||
Net tax credits utilized | 2 | 53 | 24 | ||||||||||
Other | (3 | ) | 1 | (8 | ) | ||||||||
$ | (100 | ) | $ | (46 | ) | $ | (76 | ) | |||||
[e] | Deferred tax assets and liabilities consist of the following temporary differences: | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Tax benefit of loss carryforwards | $ | 610 | $ | 628 | |||||||||
Liabilities currently not deductible for tax | 337 | 263 | |||||||||||
Tax credit carryforwards | 34 | 35 | |||||||||||
Unrealized loss on cash flow hedges and retirement liabilities | 39 | 48 | |||||||||||
Other | 11 | 0 | |||||||||||
1,031 | 974 | ||||||||||||
Valuation allowance against tax benefit of loss carryforwards | (528 | ) | (504 | ) | |||||||||
Other valuation allowance | (111 | ) | (45 | ) | |||||||||
392 | 425 | ||||||||||||
Liabilities | |||||||||||||
Tax depreciation in excess of book depreciation | 170 | 199 | |||||||||||
Other assets book value in excess of tax value | 15 | 77 | |||||||||||
Unrealized gain on cash flow hedges and retirement liabilities | 21 | 19 | |||||||||||
Other | 0 | 30 | |||||||||||
206 | 325 | ||||||||||||
Net deferred tax assets | $ | 186 | $ | 100 | |||||||||
The net deferred tax assets are presented on the consolidated balance sheet in the following categories: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 275 | $ | 170 | |||||||||
Current deferred tax liabilities | (9 | ) | (19 | ) | |||||||||
Long-term deferred tax assets | 120 | 90 | |||||||||||
Long-term deferred tax liabilities | (200 | ) | (141 | ) | |||||||||
$ | 186 | $ | 100 | ||||||||||
[f] | Income taxes paid in cash [net of refunds] were $507 million for the year ended December 31, 2013 [2012 - $347 million; 2011 - $304 million]. | ||||||||||||
[g] | As of December 31, 2013, the Company had domestic and foreign operating loss carryforwards of $2.00 billion and tax credit carryforwards of $34 million. Approximately $1.07 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2014 and 2033. | ||||||||||||
[h] | As at December 31, 2013, 2012 and 2011, the Company’s gross unrecognized tax benefits were $238 million, $279 million and $252 million, respectively [excluding interest and penalties], of which $219 million, $240 million and $222 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: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 279 | $ | 252 | $ | 257 | |||||||
Additions based on tax positions related to current year | 35 | 68 | 14 | ||||||||||
(Reductions)/additions based on tax positions of prior years | (44 | ) | (31 | ) | 13 | ||||||||
Settlements | (24 | ) | (10 | ) | (12 | ) | |||||||
Statute expirations | (7 | ) | (5 | ) | (16 | ) | |||||||
Foreign currency translation | (1 | ) | 5 | (4 | ) | ||||||||
$ | 238 | $ | 279 | $ | 252 | ||||||||
The Company recognizes interest and penalties with respect to unrecognized tax benefits as income tax expense. As at December 31, 2013, 2012 and 2011 the Company had recorded interest and penalties on the unrecognized tax benefits of $42 million, $49 million and $42 million, respectively, which reflects recoveries/(expenses) related to changes in its reserves for interest and penalties of $7 million, ($7 million) and $3 million, respectively. | |||||||||||||
The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign tax authorities. During the next twelve months, it is reasonably possible that, as a result of audit settlements, the conclusion of current examinations and the expiration of the statute of limitations in several jurisdictions, the Company may decrease the amount of its gross unrecognized tax benefits [including interest and penalties] by approximately $66 million, of which $62 million, if recognized, would affect its effective tax rate. | |||||||||||||
The Company considers its significant tax jurisdictions to include Canada, the United States, Austria, Germany and Mexico. The Company remains subject to income tax examination in Austria for years after 2005, Germany for years after 2007, Mexico for years after 2007, U.S. federal jurisdiction for years after 2007, and in Canada for years after 2008. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
12. OTHER ASSETS | |||||||||
Other assets consist of: | |||||||||
2013 | 2012 | ||||||||
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $ | 291 | $ | 297 | |||||
Long-term receivables [note 21[c]] | 111 | 95 | |||||||
Patents and licenses, net | 44 | 40 | |||||||
Unrealized gain on cash flow hedges [note 21] | 20 | 32 | |||||||
E-Car intangible [note 6] | 0 | 158 | |||||||
Customer relationship intangibles [note 6] | 143 | 93 | |||||||
Pension overfunded status [note 16[a]] | 26 | 0 | |||||||
Other, net | 40 | 38 | |||||||
$ | 675 | $ | 753 | ||||||
Employee_Equity_and_Profit_Par
Employee Equity and Profit Participation Program | 12 Months Ended |
Dec. 31, 2013 | |
Other Liabilities Disclosure [Abstract] | ' |
Employee Equity and Profit Participation Program | ' |
13. EMPLOYEE EQUITY AND PROFIT PARTICIPATION PROGRAM | |
During the year ended December 31, 2013, 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 $39 million [2012 - $18 million; 2011 - $35 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2013, the trust’s indebtedness to Magna was $39 million [2012 - $17 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, 2013 | |||||||||||||
Guarantees [Abstract] | ' | ||||||||||||
Warranty | ' | ||||||||||||
14. WARRANTY | |||||||||||||
The following is a continuity of the Company’s warranty accruals: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 94 | $ | 76 | $ | 68 | |||||||
Expense, net | 40 | 43 | 46 | ||||||||||
Settlements | (46 | ) | (46 | ) | (38 | ) | |||||||
Acquisitions [note 6] | 1 | 17 | 0 | ||||||||||
Foreign exchange and other | 2 | 4 | 0 | ||||||||||
$ | 91 | $ | 94 | $ | 76 | ||||||||
Debt_and_Commitments
Debt and Commitments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt and Commitments | ' | ||||||||||||
15. DEBT AND COMMITMENTS | |||||||||||||
[a] | The Company’s long-term debt, which is substantially uncollateralized, consists of the following: | ||||||||||||
2013 | 2012 | ||||||||||||
Bank term debt at a weighted average interest rate of approximately 6.3% [2012 – 8.0%], denominated primarily in Chinese renminbi and Brazilian real | $ | 239 | $ | 268 | |||||||||
Government loans at a weighted average interest rate of approximately 5.9% [2012 – 5.4%], denominated primarily in Brazilian real and euros | 26 | 15 | |||||||||||
Other | 67 | 78 | |||||||||||
332 | 361 | ||||||||||||
Less due within one year | 230 | 249 | |||||||||||
$ | 102 | $ | 112 | ||||||||||
[b] | Future principal repayments on long-term debt are estimated to be as follows: | ||||||||||||
2014 | $ | 230 | |||||||||||
2015 | 39 | ||||||||||||
2016 | 22 | ||||||||||||
2017 | 15 | ||||||||||||
2018 | 18 | ||||||||||||
Thereafter | 8 | ||||||||||||
$ | 332 | ||||||||||||
[c] | On June 20, 2013, the Company amended its previous $2.25 billion revolving credit facility to become a five year facility with a maturity of June 20, 2018. The facility now includes a $200 million Asian tranche, a $50 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. | ||||||||||||
[d] | Interest expense (income), net includes: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense | |||||||||||||
Current | $ | 26 | $ | 27 | $ | 16 | |||||||
Long-term | 8 | 7 | 3 | ||||||||||
34 | 34 | 19 | |||||||||||
Interest income | (18 | ) | (18 | ) | (25 | ) | |||||||
Interest expense (income), net | $ | 16 | $ | 16 | $ | (6 | ) | ||||||
[e] | Interest paid in cash was $32 million for the year ended December 31, 2013 [2012 - $32 million; 2011 - $19 million]. | ||||||||||||
[f] | At December 31, 2013, the Company had commitments under operating leases requiring annual rental payments as follows: | ||||||||||||
Total | |||||||||||||
2014 | $ | 343 | |||||||||||
2015 | 303 | ||||||||||||
2016 | 273 | ||||||||||||
2017 | 240 | ||||||||||||
2018 | 157 | ||||||||||||
Thereafter | 402 | ||||||||||||
$ | 1,718 | ||||||||||||
Prior to June 30, 2011, MI Developments Inc. [“MID”] was a considered a related party. In the normal course of business, Magna leases various land and buildings from MID under operating lease agreements, which were effected on normal commercial terms. The leases were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Lease expense related to MID for 2011 was $166 million. | |||||||||||||
[g] | The Company has agreements with Mr. Stronach and certain affiliated entities for the provision of business development, consulting and other business services. The cost of these agreements is measured at the exchange amount. The court-approved plan of arrangement in which the Company’s dual-class share structure was collapsed, set a termination date of December 31, 2014 with a declining fee schedule for the consulting, business development and business services agreements. The aggregate amount expensed under these agreements with respect to the year ended December 31, 2013 was $52 million [2012 - $47 million; 2011 - $38 million]. |
LongTerm_Employee_Benefit_Liab
Long-Term Employee Benefit Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Postemployment Benefits [Abstract] | ' | ||||||||||||||||
Long-Term Employee Benefit Liabilities | ' | ||||||||||||||||
16. LONG-TERM EMPLOYEE BENEFIT LIABILITIES | |||||||||||||||||
Long-term employee benefit liabilities consist of: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Defined benefit pension plans and other [a] | $ | 149 | $ | 212 | $ | 128 | |||||||||||
Termination and long service arrangements [b] | 343 | 304 | 244 | ||||||||||||||
Retirement medical benefits plans [c] | 34 | 39 | 37 | ||||||||||||||
Other long-term employee benefits | 6 | 5 | 10 | ||||||||||||||
Long-term employee benefit obligations | $ | 532 | $ | 560 | $ | 419 | |||||||||||
[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: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | 4.7 | % | |||||||||||
Rate of compensation increase | 2.9 | % | 2.8 | % | 2.8 | % | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Discount rate | 4.1 | % | 4.7 | % | 5.2 | % | |||||||||||
Rate of compensation increase | 2.8 | % | 2.8 | % | 2.7 | % | |||||||||||
Expected return on plan assets | 6.5 | % | 7 | % | 7.1 | % | |||||||||||
Information about the Company’s defined benefit pension plans is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 502 | $ | 388 | $ | 337 | |||||||||||
Current service cost | 13 | 11 | 10 | ||||||||||||||
Interest cost | 19 | 18 | 19 | ||||||||||||||
Actuarial (gains) losses and changes in actuarial assumptions | (56 | ) | 50 | 42 | |||||||||||||
Benefits paid | (18 | ) | (18 | ) | (13 | ) | |||||||||||
Special termination benefit | 0 | 0 | 1 | ||||||||||||||
Acquisition | 0 | 47 | 0 | ||||||||||||||
Divestitures | 0 | 0 | (3 | ) | |||||||||||||
Foreign exchange | (6 | ) | 6 | (5 | ) | ||||||||||||
End of year | 454 | 502 | 388 | ||||||||||||||
Plan assets at fair value | |||||||||||||||||
Beginning of year | 288 | 259 | 253 | ||||||||||||||
Return on plan assets | 38 | 26 | 0 | ||||||||||||||
Employer contributions | 30 | 19 | 24 | ||||||||||||||
Benefits paid | (18 | ) | (19 | ) | (14 | ) | |||||||||||
Foreign exchange | (10 | ) | 3 | (4 | ) | ||||||||||||
End of year | 328 | 288 | 259 | ||||||||||||||
Ending funded status | $ | 126 | $ | 214 | $ | 129 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Non-current asset [note 12] | $ | (26 | ) | $ | 0 | $ | (1 | ) | |||||||||
Current liability | 3 | 2 | 2 | ||||||||||||||
Non-current liability | 149 | 212 | 128 | ||||||||||||||
Net amount | $ | 126 | $ | 214 | $ | 129 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (61 | ) | $ | (141 | ) | $ | (101 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 13 | $ | 11 | $ | 10 | |||||||||||
Interest cost | 19 | 18 | 19 | ||||||||||||||
Return on plan assets | (19 | ) | (19 | ) | (19 | ) | |||||||||||
Actuarial losses | 5 | 3 | 1 | ||||||||||||||
Special termination benefit | 0 | 0 | 1 | ||||||||||||||
Net periodic benefit cost | $ | 18 | $ | 13 | $ | 12 | |||||||||||
[b] | Termination and long service arrangements | ||||||||||||||||
Pursuant to labour laws and national labour agreements in certain European countries and Mexico, the Company is obligated to provide lump sum termination payments to employees on retirement or involuntary termination, and long service payments contingent upon persons reaching a predefined number of years of service. | |||||||||||||||||
The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 3.9 | % | 4.2 | % | 5.4 | % | |||||||||||
Rate of compensation increase | 3.9 | % | 3.9 | % | 4 | % | |||||||||||
Information about the Company’s termination and long service arrangements is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 314 | $ | 252 | $ | 235 | |||||||||||
Current service cost | 24 | 16 | 15 | ||||||||||||||
Interest cost | 13 | 13 | 10 | ||||||||||||||
Actuarial losses and changes in actuarial assumptions | 12 | 41 | 14 | ||||||||||||||
Benefits paid | (21 | ) | (13 | ) | (12 | ) | |||||||||||
Acquisition | 0 | 2 | 0 | ||||||||||||||
Curtailment | 0 | (4 | ) | 0 | |||||||||||||
Foreign exchange | 12 | 7 | (10 | ) | |||||||||||||
Ending funded status | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 11 | $ | 10 | $ | 8 | |||||||||||
Non-current liability | 343 | 304 | 244 | ||||||||||||||
Net amount | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (82 | ) | $ | (74 | ) | $ | (45 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 24 | $ | 16 | $ | 15 | |||||||||||
Interest cost | 13 | 13 | 10 | ||||||||||||||
Actuarial losses | 4 | 12 | 6 | ||||||||||||||
Net periodic benefit cost | $ | 41 | $ | 41 | $ | 31 | |||||||||||
[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: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Retirement medical benefit obligations | 4.5 | % | 3.6 | % | 4.2 | % | |||||||||||
Net periodic benefit cost | 3.6 | % | 4.2 | % | 5.4 | % | |||||||||||
Health care cost inflation | 7.7 | % | 8 | % | 9.2 | % | |||||||||||
Information about the Company’s retirement medical benefits plans are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 41 | $ | 39 | $ | 36 | |||||||||||
Interest cost | 2 | 2 | 2 | ||||||||||||||
Actuarial (gains) losses and changes in actuarial assumptions | (4 | ) | 3 | 4 | |||||||||||||
Benefits paid | (2 | ) | (3 | ) | (3 | ) | |||||||||||
Foreign exchange | (1 | ) | 0 | 0 | |||||||||||||
Ending funded status | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Non-current liability | 34 | 39 | 37 | ||||||||||||||
Net amount | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized past service costs | $ | 2 | $ | 3 | $ | 3 | |||||||||||
Unrecognized actuarial gains | 10 | 8 | 12 | ||||||||||||||
Total accumulated other comprehensive income | $ | 12 | $ | 11 | $ | 15 | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Actuarial gains | (2 | ) | (1 | ) | (1 | ) | |||||||||||
Past service cost amortization | (1 | ) | 0 | (1 | ) | ||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | 1 | $ | 0 | ||||||||||
The effect of a one-percentage point increase or decrease in health care trend rates would not have a significant impact on the Company’s income. | |||||||||||||||||
[d] | Future benefit payments | ||||||||||||||||
Defined | Termination | Retirement | Total | ||||||||||||||
benefit | and long | medical | |||||||||||||||
pension plans | service | benefits plans | |||||||||||||||
arrangements | |||||||||||||||||
Expected employer contributions – 2014 | $ | 33 | $ | 11 | $ | 2 | $ | 46 | |||||||||
Expected benefit payments: | |||||||||||||||||
2014 | $ | 17 | $ | 11 | $ | 2 | $ | 30 | |||||||||
2015 | 17 | 10 | 2 | 29 | |||||||||||||
2016 | 17 | 10 | 2 | 29 | |||||||||||||
2017 | 18 | 11 | 3 | 32 | |||||||||||||
2018 | 18 | 14 | 2 | 34 | |||||||||||||
Thereafter | 104 | 104 | 12 | 220 | |||||||||||||
$ | 191 | $ | 160 | $ | 23 | $ | 374 | ||||||||||
[e] | Plan assets | ||||||||||||||||
The asset allocation of the Company’s defined benefit pension plans at December 31, 2013 and 2012, and the target allocation for 2014 is as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Equity securities | 55-75% | 58 | % | 57 | % | ||||||||||||
Fixed income securities | 25-45% | 41 | % | 42 | % | ||||||||||||
Cash and cash equivalents | 0-15% | 1 | % | 1 | % | ||||||||||||
100% | 100 | % | 100 | % | |||||||||||||
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. |
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
17. OTHER LONG-TERM LIABILITIES | |||||||||
Other long-term liabilities consist of: | |||||||||
2013 | 2012 | ||||||||
Long-term portion of income taxes payable | $ | 133 | $ | 94 | |||||
Asset retirement obligation | 40 | 39 | |||||||
Long-term portion of fair value of hedges [note 21] | 28 | 10 | |||||||
Deferred revenue | 7 | 11 | |||||||
$ | 208 | $ | 154 | ||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
18. STOCK-BASED COMPENSATION | |||||||||||||||||
[a] | Incentive Stock Option Plan | ||||||||||||||||
The Company currently has two incentive stock option plans in effect: the 2009 Stock Option Plan, which was adopted by the Company’s shareholders on May 6, 2010; and the Amended and Restated Incentive Stock Option Plan [the “1987 Stock Option Plan”], which was adopted by shareholders on December 10, 1987, and subsequently amended on May 18, 2000 and May 10, 2007. | |||||||||||||||||
Upon adoption of the 2009 Plan, new grants under the 1987 Plan were frozen, but all outstanding options were permitted to continue to vest and be exercisable in accordance with their terms. | |||||||||||||||||
2009 Stock Option Plan | |||||||||||||||||
Under the 2009 Stock Option Plan, the Company may grant options to purchase Common Shares to full-time employees and consultants of the Company and its subsidiaries. The maximum number of shares that can be reserved for issuance under the option plan is 16,000,000 shares. The number of shares available to be granted at December 31, 2013 was 7,516,831 [2012 - 8,457,666]. All options granted are for terms of up to seven years from the grant date. Options issued under the 2009 Option Plan to employees and consultants generally vest as to one-third on each of the first three anniversaries of the date of grant. All options allow the holder to purchase Common Shares at a price equal to or greater than the closing market price of such shares on the date prior to the date of the grant. | |||||||||||||||||
1987 Stock Option Plan | |||||||||||||||||
The Company previously granted options to purchase Common Shares to full-time employees, outside directors or consultants of the Company under the 1987 Stock Option Plan. Upon shareholder approval of the Company’s 2009 Stock Option Plan, the 1987 Stock Option Plan was terminated such that no future grants could be made, but previously granted options would continue to vest and be exercisable in accordance with their original terms of grant. All options granted under the 1987 Stock Option Plan are for terms of up to seven years from the grant date. All options allow the holder to purchase Common Shares at a price equal to or greater than the closing market price of such shares on the date prior to the date of the grant or modification. | |||||||||||||||||
The following is a continuity schedule of all options outstanding [number of options in the table below are expressed in whole numbers]: | |||||||||||||||||
Options outstanding | |||||||||||||||||
Number | Weighted | Number | |||||||||||||||
of options | average | of options | |||||||||||||||
exercise | exercisable | ||||||||||||||||
price | |||||||||||||||||
Outstanding at December 31, 2010 | 11,142,450 | Cdn$ | 34.22 | 3,362,116 | |||||||||||||
Exercised [i] | (2,737,253 | ) | 33.28 | (2,737,253 | ) | ||||||||||||
Cancelled | (1,537,830 | ) | 48.86 | (1,426,164 | ) | ||||||||||||
Vested | 0 | 0 | 2,868,001 | ||||||||||||||
Outstanding at December 31, 2011 | 6,867,367 | Cdn$ | 31.54 | 2,066,700 | |||||||||||||
Granted | 1,389,000 | 48.22 | 0 | ||||||||||||||
Exercised [ii] | (1,525,159 | ) | 28.46 | (1,525,159 | ) | ||||||||||||
Cancelled | (107,966 | ) | 53.14 | (58,967 | ) | ||||||||||||
Vested | 0 | 0 | 2,745,000 | ||||||||||||||
Outstanding at December 31, 2012 | 6,623,242 | Cdn$ | 35.39 | 3,227,574 | |||||||||||||
Granted | 1,060,000 | 57.02 | 0 | ||||||||||||||
Exercised [iii] | (2,805,969 | ) | 31.99 | (2,805,969 | ) | ||||||||||||
Cancelled | (119,165 | ) | 51.46 | (31,667 | ) | ||||||||||||
Vested | 0 | 0 | 2,457,171 | ||||||||||||||
Outstanding at December 31, 2013 | 4,758,108 | Cdn$ | 41.82 | 2,847,109 | |||||||||||||
The total intrinsic value of options exercised during 2013 was $56 million [2012 - $6 million; 2011 - $19 million]. | |||||||||||||||||
[i] | During 2011, 1,283,334 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $30 million were made to the stock option holders. | ||||||||||||||||
[ii] | During 2012, 1,100,001 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $19 million were made to the stock option holders. | ||||||||||||||||
[iii] | During 2013, 849,999 options were exercised on a cashless basis in accordance with the applicable stock option plans. On exercise, cash payments totalling $23 million were made to the stock option holders. | ||||||||||||||||
All cash payments were calculated using the difference between the aggregate fair market value of the Option Shares based on the closing price of the Company’s Common Shares on the Toronto Stock Exchange [“TSX”] on the date of exercise and the aggregate Exercise Price of all such options surrendered. | |||||||||||||||||
At December 31, 2013, the outstanding options consist of [number of options in the table below are expressed in whole numbers]: | |||||||||||||||||
Options outstanding | |||||||||||||||||
Number | Remaining | Number | |||||||||||||||
of options | contractual | of options | |||||||||||||||
life [years] | exercisable | ||||||||||||||||
$15 to $20 | 487,008 | 2.2 | 487,008 | ||||||||||||||
$25 to $30 | 1,398,853 | 3.2 | 1,398,853 | ||||||||||||||
$35 to $40 | 20,000 | 3.4 | 20,000 | ||||||||||||||
$45 to $50 | 1,156,324 | 4.3 | 275,325 | ||||||||||||||
$50 to $55 | 665,923 | 4 | 665,923 | ||||||||||||||
Over $55 | 1,030,000 | 6.2 | 0 | ||||||||||||||
4,758,108 | 2,847,109 | ||||||||||||||||
Weighted average exercise price | Cdn$ | 41.82 | Cdn$ | 34.33 | |||||||||||||
Weighted average life remaining [years] | 4.31 | 3.38 | |||||||||||||||
Aggregate intrinsic value at December 31, 2013 | $ | 198 | $ | 139 | |||||||||||||
The weighted average assumptions used in measuring the fair value of stock options granted are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.32 | % | 2.23 | % | 0 | ||||||||||||
Expected dividend yield | 2 | % | 2 | % | 0 | ||||||||||||
Expected volatility | 34 | % | 43 | % | 0 | ||||||||||||
Expected time until exercise | 4.5 years | 4.5 years | 0 | ||||||||||||||
Weighted average fair value of options granted in year [Cdn$] | $ | 14.02 | $ | 15.37 | $ | 0 | |||||||||||
[b] | Long-term retention program | ||||||||||||||||
The Company awarded certain executives an entitlement to Common Shares in the form of restricted stock. Such shares become available to the executives, subject to acceleration on death or disability, after an approximate four-year holding period, provided certain conditions are met, and are to be released in equal amounts over a 10-year period, subject to forfeiture under certain circumstances. The stock that has not been released to the executives is reflected as a reduction in the stated value of the Company’s Common Shares. | |||||||||||||||||
The following is a continuity of the stock that has not been released to the executives and is reflected as a reduction in the stated value of the Company’s Common Shares [number of Common Shares in the table below are expressed in whole numbers]: | |||||||||||||||||
Number | Stated | ||||||||||||||||
of shares | value | ||||||||||||||||
Awarded and not released, December 31, 2010 | 1,182,736 | $ | 40 | ||||||||||||||
Release of restricted stock | (156,432 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2011 | 1,026,304 | 35 | |||||||||||||||
Release of restricted stock | (143,316 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2012 | 882,988 | 30 | |||||||||||||||
Release of restricted stock | (152,512 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2013 | 730,476 | $ | 25 | ||||||||||||||
[c] | Restricted stock unit program | ||||||||||||||||
In a number of different circumstances, the Company awards restricted stock units [“RSUs”] to certain executives and other employees as part of the Company’s compensation program. These RSUs are notional units, each of which is equivalent to one Magna Common Share. In most cases, the RSUs are redeemable solely at the Company’s option, either by delivery of the specified number of Common Shares or the cash value on the redemption date [based on the 20-day weighted average trading price]. Redemption of the RSUs generally occurs on December 15 of the second year after the date of grant, subject to earlier redemption or cancellation in specified circumstances. In some cases, RSUs are subject to vesting and other conditions and quarterly dividend equivalents are paid to the grantees. | |||||||||||||||||
The Company maintains a Non-Employee Director Share-Based Compensation Plan [“DSU Plan”] which governs the 60% portion of the annual retainer payable to Independent Directors which is mandatorily deferred in the form of Deferred Share Units [“DSUs”]. Additionally, each Independent Director may annually elect to defer up to 100% of his or her total annual cash compensation from Magna [including committee retainers, meeting and other fees]. The amounts deferred in the DSU Plan are reflected in DSUs, which are notional units, the value of which increases or decreases in direct relation to, the New York Stock Exchange [“NYSE”] market price of Magna Common Shares. Dividend equivalents are credited on DSUs at the times and in the amounts of dividends that are declared and paid on Magna’s Common Shares. All DSUs are fully vested on the date allocated to an Independent Director under the DSU Plan and are settled in cash only upon an Independent Director’s retirement from the Board. | |||||||||||||||||
The following is a continuity schedule of restricted stock unit programs outstanding [number of stock units in the table below are expressed in whole numbers]: | |||||||||||||||||
Equity | Liability | Liability | Total | ||||||||||||||
classified | classified | classified | |||||||||||||||
RSUs | RSUs | DSUs | |||||||||||||||
Outstanding at December 31, 2010 | 181,732 | 34,242 | 186,348 | 402,322 | |||||||||||||
Granted | 208,458 | 4,150 | 22,669 | 235,277 | |||||||||||||
Dividend equivalents | 2,022 | 946 | 4,696 | 7,664 | |||||||||||||
Redeemed | (24,486 | ) | (9,532 | ) | (15,267 | ) | (49,285 | ) | |||||||||
Outstanding at December 31, 2011 | 367,726 | 29,806 | 198,446 | 595,978 | |||||||||||||
Granted | 320,131 | 15,364 | 37,456 | 372,951 | |||||||||||||
Dividend equivalents | 1,895 | 1,133 | 5,145 | 8,173 | |||||||||||||
Redeemed | (84,322 | ) | (26,204 | ) | (34,124 | ) | (144,650 | ) | |||||||||
Outstanding at December 31, 2012 | 605,430 | 20,099 | 206,923 | 832,452 | |||||||||||||
Granted | 224,841 | 13,825 | 30,716 | 269,382 | |||||||||||||
Dividend equivalents | 1,262 | 624 | 2,815 | 4,701 | |||||||||||||
Redeemed | (199,679 | ) | (4,429 | ) | (113,007 | ) | (317,115 | ) | |||||||||
Outstanding at December 31, 2013 | 631,854 | 30,119 | 127,447 | 789,420 | |||||||||||||
[d] | Compensation expense related to stock-based compensation | ||||||||||||||||
Stock-based compensation expense recorded in selling, general and administrative expenses related to the above programs is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Incentive Stock Option Plan | $ | 15 | $ | 19 | $ | 21 | |||||||||||
Long-term retention | 4 | 5 | 7 | ||||||||||||||
Restricted stock unit | 16 | 14 | 6 | ||||||||||||||
35 | 38 | 34 | |||||||||||||||
Fair value adjustment for liability classified DSUs | 5 | 4 | (3 | ) | |||||||||||||
Incentive Stock Option Plan | $ | 40 | $ | 42 | $ | 31 | |||||||||||
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||
Capital Stock | ' | ||||||||||||||||||||||||||||
19. CAPITAL STOCK | |||||||||||||||||||||||||||||
[a] | At December 31, 2013, 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 8, 2013, the 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 12,000,000 Magna Common Shares [the “2013 Bid”], representing 5.4% of the Company’s public float of Common Shares. The Bid commenced on November 13, 2013 and will terminate no later than November 12, 2014. | ||||||||||||||||||||||||||||
Previously, the Company had Normal Course Issuer Bids in place for the 12 month periods beginning in November 2012, 2011 and 2010. | |||||||||||||||||||||||||||||
The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: | |||||||||||||||||||||||||||||
Maximum | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
number | |||||||||||||||||||||||||||||
of shares | Shares | Cash | Shares | Cash | Shares | Cash | |||||||||||||||||||||||
purchased | amount | purchased | amount | purchased | amount | ||||||||||||||||||||||||
2010 Bid | 8,000,000 | 0 | $ | 0 | 0 | $ | 0 | 7,546,500 | $ | 296 | |||||||||||||||||||
2011 Bid | 12,000,000 | 0 | 0 | 467,630 | 21 | 3,200,800 | 111 | ||||||||||||||||||||||
2012 Bid | 12,000,000 | 11,572,598 | 814 | 427,402 | 19 | 0 | 0 | ||||||||||||||||||||||
2013 Bid | 12,000,000 | 2,509,723 | 199 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
14,082,321 | $ | 1,013 | 895,032 | $ | 40 | 10,747,300 | $ | 407 | |||||||||||||||||||||
Certain purchases under each of our 2013 Bid and 2012 Bid were made by way of private agreements entered into with arm’s length, third party sellers. Such private agreement purchases were made at a discount to the prevailing market price for the Company’s Common Shares and pursuant to issuer bid exemption orders issued by the Ontario Securities Commission. All other purchases of Common Shares are made at the market price at the time of purchase in accordance with the rules and policies of the TSX. Purchases may also be made on the NYSE in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934. | |||||||||||||||||||||||||||||
[c] | The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 6, 2014 were exercised or converted: | ||||||||||||||||||||||||||||
Common Shares | 221,187,872 | ||||||||||||||||||||||||||||
Stock options [note 18] | 5,455,690 | ||||||||||||||||||||||||||||
226,643,562 | |||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
20. ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||
The following is a continuity schedule of accumulated other comprehensive income: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accumulated net unrealized gain on translation of net investment in foreign operations | |||||||||||||
Balance, beginning of year | $ | 629 | $ | 547 | $ | 759 | |||||||
Net unrealized (loss) gain | (133 | ) | 86 | (171 | ) | ||||||||
Repurchase of shares under normal course issuer bids [note 19] | (42 | ) | (4 | ) | (41 | ) | |||||||
Balance, end of year | 454 | 629 | 547 | ||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges [b] | |||||||||||||
Balance, beginning of year | 34 | (23 | ) | 40 | |||||||||
Net unrealized (loss) gain | (39 | ) | 75 | (41 | ) | ||||||||
Reclassification of net gain to net income [a] | (15 | ) | (18 | ) | (22 | ) | |||||||
Balance, end of year | (20 | ) | 34 | (23 | ) | ||||||||
Accumulated net unrealized loss on other long-term liabilities [b] | |||||||||||||
Balance, beginning of year | (168 | ) | (107 | ) | (58 | ) | |||||||
Net unrealized gain (loss) | 44 | (72 | ) | (52 | ) | ||||||||
Reclassification of net loss to net income [a] | 7 | 11 | 3 | ||||||||||
Balance, end of year | (117 | ) | (168 | ) | (107 | ) | |||||||
Accumulated net unrealized (loss) gain on available-for-sale investments | |||||||||||||
Balance, beginning of year | 1 | 5 | 11 | ||||||||||
Net unrealized loss | (5 | ) | (4 | ) | (6 | ) | |||||||
Balance, end of year | (4 | ) | 1 | 5 | |||||||||
Total accumulated other comprehensive income [c] | $ | 313 | $ | 496 | $ | 422 | |||||||
[a] | The effects on net income of amounts reclassified from AOCI, with presentation location, were as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flow hedges | |||||||||||||
Sales | $ | 3 | $ | 24 | $ | 16 | |||||||
Cost of sales | 18 | (1 | ) | 15 | |||||||||
Income tax | (6 | ) | (5 | ) | (9 | ) | |||||||
Net of tax | 15 | 18 | 22 | ||||||||||
Other long-term liabilities | |||||||||||||
Cost of sales | (8 | ) | (14 | ) | (5 | ) | |||||||
Income tax | 1 | 3 | 2 | ||||||||||
Net of tax | (7 | ) | (11 | ) | (3 | ) | |||||||
Total gains reclassified to net income | $ | 8 | $ | 7 | $ | 19 | |||||||
[b] | The amount of income tax benefit (obligation) that has been allocated to each component of other comprehensive income is as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges | |||||||||||||
Balance, beginning of year | $ | (13 | ) | $ | 12 | $ | (15 | ) | |||||
Net unrealized loss (gain) | 11 | (30 | ) | 18 | |||||||||
Reclassification of net gain to net income | 6 | 5 | 9 | ||||||||||
Balance, end of year | 4 | (13 | ) | 12 | |||||||||
Accumulated net unrealized loss on other long-term liabilities | |||||||||||||
Balance, beginning of year | 36 | 24 | 1 | ||||||||||
Net unrealized (gain) loss | (21 | ) | 15 | 25 | |||||||||
Reclassification of net loss to net income | (1 | ) | (3 | ) | (2 | ) | |||||||
Balance, end of year | 14 | 36 | 24 | ||||||||||
Total income tax benefit | $ | 18 | $ | 23 | $ | 36 | |||||||
[c] | The amount of other comprehensive loss that is expected to be reclassified to net income during 2014 is $1 million [net of income tax of $1 million]. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||
21. FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||
[a] | Foreign exchange contracts | ||||||||||||||||||||||||
At December 31, 2013, 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 | Euro | Weighted | Peso | Weighted | |||||||||||||||||||
dollar | average | amount | average | amount | average | ||||||||||||||||||||
amount | rate | rate | rate | ||||||||||||||||||||||
2014 | 206 | 1.05974 | 47 | 1.34745 | 3,509 | 0.07128 | |||||||||||||||||||
2014 | (656 | ) | 1.03832 | (12 | ) | 1.40577 | (2 | ) | 0.07678 | ||||||||||||||||
2015 | 54 | 1.04289 | 12 | 1.44078 | 2,174 | 0.0717 | |||||||||||||||||||
2015 | (332 | ) | 1.04592 | (1 | ) | 1.42922 | 0 | 0 | |||||||||||||||||
2016 | 17 | 1.03766 | 0 | 0 | 510 | 0.07166 | |||||||||||||||||||
2016 | (185 | ) | 1.06735 | 0 | 0 | 0 | 0 | ||||||||||||||||||
2017 | (85 | ) | 1.07747 | 0 | 0 | 0 | 0 | ||||||||||||||||||
2018 | (2 | ) | 1.0804 | 0 | 0 | 0 | 0 | ||||||||||||||||||
(983 | ) | 46 | 6,191 | ||||||||||||||||||||||
For euros | |||||||||||||||||||||||||
Buy (Sell) | U.S. | Weighted | GBP | Weighted | Czech | Weighted | |||||||||||||||||||
dollar | average | amount | average | koruna | average | ||||||||||||||||||||
amount | rate | rate | amount | rate | |||||||||||||||||||||
2014 | 37 | 0.74048 | 31 | 1.14482 | 2,142 | 0.03956 | |||||||||||||||||||
2014 | (123 | ) | 0.75973 | (42 | ) | 1.16896 | (8 | ) | 0.0389 | ||||||||||||||||
2015 | 6 | 0.74375 | 13 | 1.1917 | 1,303 | 0.03945 | |||||||||||||||||||
2015 | (80 | ) | 0.75549 | (15 | ) | 1.16338 | 0 | 0 | |||||||||||||||||
2016 | 2 | 0.73702 | 0 | 0 | 187 | 0.03904 | |||||||||||||||||||
2016 | (34 | ) | 0.7506 | (1 | ) | 1.17217 | 0 | 0 | |||||||||||||||||
2017 | (16 | ) | 0.73141 | 0 | 0 | 0 | 0 | ||||||||||||||||||
(208 | ) | (14 | ) | 3,624 | |||||||||||||||||||||
Based on forward foreign exchange rates as at December 31, 2013 for contracts with similar remaining terms to maturity, the gains and losses relating to the Company’s foreign exchange forward contracts recognized in other comprehensive income are approximately $62 million and $65 million, respectively [note 20]. | |||||||||||||||||||||||||
The Company does not enter into foreign exchange forward contracts for speculative purposes. | |||||||||||||||||||||||||
[b] | Natural gas swap contracts | ||||||||||||||||||||||||
The Company uses natural gas swap contracts to manage the cash flow risk of a portion of its forecasted natural gas swap contracts purchases in Canada and the United States. The Company does not enter into natural gas swap contracts for speculative purposes. | |||||||||||||||||||||||||
The natural gas swap contracts outstanding at December 31, 2013 have a total volume of 0.2 million Gigajoule [“GJ”] and a fixed price of $6.50 per GJ for Canada and a total volume of 0.2 million MMBTU [“Million British Thermal Units”] and a fixed price of $7.06 per MMBTU for the United States. These natural gas swap contracts extend through to December 2014. | |||||||||||||||||||||||||
The unrealized losses on these natural gas swap contracts at December 31, 2013 were $1 million [2012 - $4 million] and are recognized in other comprehensive income [note 20]. | |||||||||||||||||||||||||
[c] | Financial assets and liabilities | ||||||||||||||||||||||||
The Company’s financial assets and liabilities consist of the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Held-for-trading | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,554 | $ | 1,522 | |||||||||||||||||||||
Investment in ABCP [note 8] | 92 | 90 | |||||||||||||||||||||||
$ | 1,646 | $ | 1,612 | ||||||||||||||||||||||
Held-to-maturity investments | |||||||||||||||||||||||||
Severance investments | $ | 5 | $ | 8 | |||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||
Equity investments | $ | 4 | $ | 9 | |||||||||||||||||||||
Loans and receivables | |||||||||||||||||||||||||
Accounts receivable | $ | 5,246 | $ | 4,774 | |||||||||||||||||||||
Long-term receivables included in other assets [note 12] | 111 | 95 | |||||||||||||||||||||||
$ | 5,357 | $ | 4,869 | ||||||||||||||||||||||
Other financial liabilities | |||||||||||||||||||||||||
Bank indebtedness | $ | 41 | $ | 71 | |||||||||||||||||||||
Long-term debt (including portion due within one year) | 332 | 361 | |||||||||||||||||||||||
Accounts payable | 4,781 | 4,450 | |||||||||||||||||||||||
$ | 5,154 | $ | 4,882 | ||||||||||||||||||||||
Derivatives designated as effective hedges, measured at fair value | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
Prepaid expenses | $ | 42 | $ | 37 | |||||||||||||||||||||
Other assets | 20 | 32 | |||||||||||||||||||||||
Other accrued liabilities | (37 | ) | (11 | ) | |||||||||||||||||||||
Other long-term liabilities | (28 | ) | (9 | ) | |||||||||||||||||||||
(3 | ) | 49 | |||||||||||||||||||||||
Natural gas contracts | |||||||||||||||||||||||||
Prepaid expenses | 0 | 2 | |||||||||||||||||||||||
Other accrued liabilities | (1 | ) | (3 | ) | |||||||||||||||||||||
Other long-term liabilities | 0 | (1 | ) | ||||||||||||||||||||||
(1 | ) | (2 | ) | ||||||||||||||||||||||
$ | (4 | ) | $ | 47 | |||||||||||||||||||||
[d] | Derivatives designated as effective hedges, measured at fair value | ||||||||||||||||||||||||
The Company presents derivatives that are designated as effective hedges at gross fair values in the Consolidated Balance Sheets. However, master netting and other similar arrangements allow net settlements under certain conditions. The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the Consolidated Balance Sheets and the unrecognized impacts of master netting arrangements: | |||||||||||||||||||||||||
Gross | Gross | Net | |||||||||||||||||||||||
amounts | amounts | Amounts | |||||||||||||||||||||||
presented | not offset | ||||||||||||||||||||||||
in Consolidated | in Consolidated | ||||||||||||||||||||||||
Balance Sheets | Balance Sheets | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Assets | $ | 62 | $ | 42 | $ | 20 | |||||||||||||||||||
Liabilities | $ | (65 | ) | $ | (42 | ) | $ | (23 | ) | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Assets | $ | 69 | $ | 20 | $ | 49 | |||||||||||||||||||
Liabilities | $ | (20 | ) | $ | (20 | ) | $ | 0 | |||||||||||||||||
[e] | 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, bank indebtedness 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. | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||
At December 31, 2013, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2012 - Cdn$107 million]. The carrying value and estimated fair value of this investment was Cdn$99 million [2012 - Cdn$90 million]. As fair value information is not readily determinable for the Company’s investment in ABCP, the fair value was based on a valuation technique estimating the fair value from the perspective of a market participant [note 8]. | |||||||||||||||||||||||||
At December 31, 2013, the Company held available-for-sale investments in publicly traded companies. At December 31, 2013, the carrying value and fair value of these investments was $4 million [2012 - $9 million], which was based on the closing share prices of these investments. | |||||||||||||||||||||||||
Term debt | |||||||||||||||||||||||||
The Company’s term debt includes $230 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value. | |||||||||||||||||||||||||
[f] | Credit risk | ||||||||||||||||||||||||
The Company’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, accounts receivable, held-to-maturity investments 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 governments, bank term deposits and bank commercial paper with an investment grade credit rating. Credit risk is further reduced by limiting the amount which is invested in certain governments or any major financial institution. | |||||||||||||||||||||||||
The Company’s held-for-trading investments include an investment in ABCP [note 8]. Given the continuing uncertainties regarding the value of the underlying assets, the amount and timing of cash flows and the risk of collateral calls in the event that spreads widened considerably, the Company could be exposed to further losses on its investment. | |||||||||||||||||||||||||
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, 2013, sales to the Company’s six largest customers represented 83% of the Company’s total sales; and substantially all of its sales are to customers in which the Company has ongoing contractual relationships. | |||||||||||||||||||||||||
[g] | 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]]. | |||||||||||||||||||||||||
As at December 31, 2013, the net foreign exchange exposure, after considering the impact of foreign exchange contracts, was not material. | |||||||||||||||||||||||||
[h] | 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 long-term debt instruments as the interest rates on these instruments are fixed. |
Contingencies
Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||
Contingencies | ' | |||
22. CONTINGENCIES | ||||
[a] | In the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers, former employees and other parties. In addition, the Company may be, or could become, liable to incur environmental remediation costs to bring environmental contamination levels back within acceptable legal limits. On an ongoing basis, the Company assesses the likelihood of any adverse judgments or outcomes to these matters as well as 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. | ||||
In November 1997, the Company and two of its subsidiaries were sued by KS Centoco Ltd., an Ontario-based steering wheel manufacturer in which the Company has a 23% equity interest, and by Centoco Holdings Limited, the owner of the remaining 77% equity interest in KS Centoco Ltd. In March 1999, the plaintiffs were granted leave to make substantial amendments to the original statement of claim in order to add several new defendants and claim additional remedies, and in February 2006, the plaintiffs further amended their claim to add an additional remedy. The amended statement of claim alleges, among other things: | ||||
• | breach of fiduciary duty by the Company and two of its subsidiaries; | |||
• | breach by the Company of its binding letter of intent with KS Centoco Ltd., including its covenant not to have any interest, directly or indirectly, in any entity that carries on the airbag business in North America, other than through MST Automotive Inc., a company to be 77% owned by Magna and 23% owned by Centoco Holdings Limited; | |||
• | the plaintiff’s exclusive entitlement to certain airbag technologies in North America pursuant to an exclusive licence agreement, together with an accounting of all revenues and profits resulting from the alleged use by the Company, TRW Inc. [“TRW”] and other unrelated third party automotive supplier defendants of such technology in North America; | |||
• | a conspiracy by the Company, TRW and others to deprive KS Centoco Ltd. of the benefits of such airbag technology in North America and to cause Centoco Holdings Limited to sell to TRW its interest in KS Centoco Ltd. in conjunction with the Company’s sale to TRW of its interest in MST Automotive GmbH and TEMIC Bayern-Chemie Airbag GmbH; and | |||
• | oppression by the defendants. | |||
The plaintiffs are seeking, amongst other things, damages of approximately Cdn$3.5 billion. Document production, completion of undertakings and examinations for discovery are substantially complete, although limited additional examinations for discovery may occur. A trial is not expected to commence until late 2014, at the earliest. The Company believes it has valid defences to the plaintiffs’ claims and therefore intends to continue to vigorously defend this case. Notwithstanding the amount of time which has transpired since the claim was filed, these legal proceedings remain at an early stage and, accordingly, it is not possible to predict their outcome. | ||||
[b] | A putative class action lawsuit alleging violations of the United States Securities Exchange Act of 1934 was filed in May 2012 in the United States District Court, Southern District of New York, against the Company, its Chief Executive Officer and its Chief Financial Officer, as well as its founder. Boilermaker-Blacksmith National Pension Trust [“BBNPT”] was appointed the lead plaintiff on an uncontested motion in July 2012. BBNPT subsequently filed an amended complaint in October 2012, following which the defendants filed a motion seeking dismissal of the lawsuit. On August 23, 2013, the Court granted the Company’s motion and dismissed the lawsuit “with prejudice”. BBNPT appealed to the United States Court of Appeals for the Second Circuit and filed an appellant brief on December 18, 2013. Following discussions between the parties, on January 16, 2014, the United States District Court entered a Stipulation and Order regarding dismissal of the Appeal, as agreed by the parties. In accordance with that Stipulation and Order, BBNPT filed a motion to voluntarily dismiss the appeal, which the Court of Appeal granted on January 30, 2014, ending the action. | |||
[c] | On September 24, 2013, representatives of the Bundeskartellamt, the German Federal Cartel Office [the “Cartel Office”], attended at one of the Company’s operating divisions in Germany to obtain information in connection with an ongoing antitrust investigation relating to suppliers of automobile textile coverings and components, particularly trunk linings. Investigations of this nature can continue for several years. Where wrongful conduct is found, the Cartel Office has the authority to impose administrative fines that are calculated in accordance with formula-based guidelines tied to the level of affected sales, the gravity of the infringement, the consolidated sales of the group of companies to which the offending entity belongs, as well as other mitigating and aggravating factors. | |||
The Company’s policy is to comply with all applicable laws, including antitrust and competition laws. In light of the early stage of the investigation, management is unable to predict its duration or outcome, including whether any operating division of the Company could be found liable for any violation of law or the extent of any fine, if found to be liable. In the event of any such violation, any fines imposed under the Cartel Office guidelines referred to above could have a material adverse effect on Magna’s profitability in the year such fine is imposed. | ||||
[d] | In certain circumstances, the Company is at risk for warranty costs including product liability and recall costs. Due to the nature of the costs, the Company makes its best estimate of the expected future costs [note 14]; however, the ultimate amount of such costs could be materially different. The Company continues to experience increased customer pressure to assume greater warranty responsibility. Currently, under most customer agreements, the Company only accounts for existing or probable claims. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements, and the specific customer’s warranty experience. |
Segmented_Information
Segmented Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segmented Information | ' | ||||||||||||||||||||||||||||
23. SEGMENTED INFORMATION | |||||||||||||||||||||||||||||
[a] | Magna is a leading global automotive supplier with 316 manufacturing operations and 84 product development, engineering and sales centres in 29 countries. Magna has over 125,000 employees focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s product capabilities include body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. | ||||||||||||||||||||||||||||
Magna’s success is directly dependent upon the levels of North American and European [and currently to a lesser extent on Asia and Rest of World] car and light truck production by its customers. OEM production volumes in each of North America and Europe may be impacted by a number of geographic factors, including general economic conditions, interest rates, consumer credit availability, fuel prices and availability, infrastructure, legislative changes, environmental emission and safety issues, and labour and/or trade relations. | |||||||||||||||||||||||||||||
Given the differences between the regions in which the Company operates, Magna’s operations are segmented on a geographic basis. Beginning in the fourth quarter of 2013, the Company’s segments consist of North America, Europe, Asia and Rest of World. The Company maintains management teams in each of the Company’s two primary markets, North America and Europe. The role of the North American and European management teams is to manage Magna’s interests to ensure a coordinated effort across the Company’s different product capabilities. In addition to maintaining key customer, supplier and government contacts in their respective markets, the regional management teams centrally manage key aspects of the Company’s operations while permitting the divisions enough flexibility through Magna’s decentralized structure to foster an entrepreneurial environment. | |||||||||||||||||||||||||||||
Consistent with the above, the Company’s internal financial reporting separately segments key internal operating performance measures between North America, Europe, Asia and Rest of World for purposes of presentation to the chief operating decision maker to assist in the assessment of operating performance, the allocation of resources, and the long-term strategic direction and future global growth in the Company. | |||||||||||||||||||||||||||||
The Company’s chief operating decision maker uses 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 represents income from operations before income taxes; interest expense (income), net; and other expense (income), net. | |||||||||||||||||||||||||||||
The accounting policies of each segment are the same as those set out under “Significant Accounting Policies” [note 1] and intersegment sales and transfers are accounted for at fair market value. | |||||||||||||||||||||||||||||
As more fully described in notes 3 and 6, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership. From August 31, 2010 to August 31, 2012, the Company held a 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting. | |||||||||||||||||||||||||||||
For segment reporting purposes, prior to August 31, 2012 the Company recorded its proportionate share of the losses of E-Car in the Corporate and Other segment. Beginning on August 31, 2012, the consolidated results of E-Car are recorded in the Company’s North America and Europe segments. | |||||||||||||||||||||||||||||
The following tables show certain information with respect to segment disclosures: | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,734 | $ | 6,223 | $ | 167 | $ | 601 | |||||||||||||||||||||
United States | 8,409 | 7,938 | 349 | 1,135 | |||||||||||||||||||||||||
Mexico | 3,993 | 3,698 | 129 | 611 | |||||||||||||||||||||||||
Eliminations | (1,182 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 17,954 | 17,859 | $ | 598 | $ | 1,645 | $ | 656 | 645 | 2,347 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 11,813 | 11,544 | 225 | 1,463 | |||||||||||||||||||||||||
Great Britain | 975 | 968 | 24 | 70 | |||||||||||||||||||||||||
Eastern Europe | 2,317 | 2,013 | 112 | 636 | |||||||||||||||||||||||||
Eliminations | (387 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 14,718 | 14,525 | 355 | 375 | 655 | 361 | 2,169 | ||||||||||||||||||||||
Asia | 1,684 | 1,539 | 64 | 85 | 129 | 114 | 597 | ||||||||||||||||||||||
Rest of World | 889 | 889 | 20 | (76 | ) | 0 | 20 | 102 | |||||||||||||||||||||
Corporate and Other [i] | (410 | ) | 23 | 26 | 36 | 0 | 30 | 226 | |||||||||||||||||||||
Total reportable segments | 34,835 | 34,835 | 1,063 | 2,065 | 1,440 | 1,170 | 5,441 | ||||||||||||||||||||||
Other expense, net | (144 | ) | |||||||||||||||||||||||||||
Interest expense, net | (16 | ) | |||||||||||||||||||||||||||
$ | 34,835 | $ | 34,835 | $ | 1,063 | $ | 1,905 | $ | 1,440 | $ | 1,170 | 5,441 | |||||||||||||||||
Current assets | 9,923 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,626 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 17,990 | |||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | addition | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,343 | $ | 5,907 | $ | 158 | $ | 660 | |||||||||||||||||||||
United States | 7,518 | 7,053 | 294 | 973 | |||||||||||||||||||||||||
Mexico | 3,520 | 3,281 | 163 | 573 | |||||||||||||||||||||||||
Eliminations | (1,046 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 16,335 | 16,241 | $ | 432 | $ | 1,521 | $ | 701 | 615 | 2,206 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 10,089 | 9,927 | 246 | 1,490 | |||||||||||||||||||||||||
Great Britain | 961 | 952 | 15 | 58 | |||||||||||||||||||||||||
Eastern Europe | 1,847 | 1,684 | 117 | 584 | |||||||||||||||||||||||||
Eliminations | (188 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 12,709 | 12,563 | 283 | 165 | 611 | 378 | 2,132 | ||||||||||||||||||||||
Asia | 1,289 | 1,188 | 42 | 49 | 74 | 214 | 558 | ||||||||||||||||||||||
Rest of World | 822 | 822 | 17 | (77 | ) | 87 | 56 | 128 | |||||||||||||||||||||
Corporate and Other [i, ii] | (318 | ) | 23 | 27 | 0 | 0 | 11 | 249 | |||||||||||||||||||||
Total reportable segments | 30,837 | 30,837 | 801 | 1,658 | 1,473 | 1,274 | 5,273 | ||||||||||||||||||||||
Other income, net | 108 | ||||||||||||||||||||||||||||
Interest expense, net | (16 | ) | |||||||||||||||||||||||||||
$ | 30,837 | $ | 30,837 | $ | 801 | $ | 1,750 | $ | 1,473 | $ | 1,274 | 5,273 | |||||||||||||||||
Current assets | 9,135 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,701 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 17,109 | |||||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 5,951 | $ | 5,552 | $ | 115 | $ | 586 | |||||||||||||||||||||
United States | 7,025 | 6,514 | 281 | 804 | |||||||||||||||||||||||||
Mexico | 2,902 | 2,698 | 162 | 477 | |||||||||||||||||||||||||
Eliminations | (1,023 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 14,855 | 14,764 | $ | 358 | $ | 1,373 | $ | 644 | 558 | 1,867 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 10,124 | 9,963 | 284 | 1,111 | |||||||||||||||||||||||||
Great Britain | 913 | 909 | 7 | 53 | |||||||||||||||||||||||||
Eastern Europe | 1,708 | 1,557 | 132 | 438 | |||||||||||||||||||||||||
Eliminations | (189 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 12,556 | 12,429 | 259 | (22 | ) | 392 | 423 | 1,602 | |||||||||||||||||||||
Asia | 1,074 | 982 | 31 | 68 | 74 | 204 | 378 | ||||||||||||||||||||||
Rest of World | 525 | 524 | 7 | (12 | ) | 86 | 32 | 107 | |||||||||||||||||||||
Corporate and Other [i, ii] | (262 | ) | 49 | 31 | (40 | ) | 0 | 19 | 282 | ||||||||||||||||||||
Total reportable segments | 28,748 | 28,748 | 686 | 1,367 | 1,196 | 1,236 | 4,236 | ||||||||||||||||||||||
Other expense, net | (156 | ) | |||||||||||||||||||||||||||
Interest income, net | 6 | ||||||||||||||||||||||||||||
$ | 28,748 | $ | 28,748 | $ | 686 | $ | 1,217 | $ | 1,196 | $ | 1,236 | 4,236 | |||||||||||||||||
Current assets | 8,146 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,297 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 14,679 | |||||||||||||||||||||||||||
[i] | Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. | ||||||||||||||||||||||||||||
[ii] | For the year ended December 31, 2012, Corporate and Other includes $35 million equity loss related to the Company’s investment in E-Car. | ||||||||||||||||||||||||||||
For the year ended December 31, 2011, Corporate and Other includes $66 million equity loss related to the Company’s investment in E-Car. | |||||||||||||||||||||||||||||
[b] | The following table aggregates external revenues by customer as follows: | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
General Motors | $ | 6,394 | $ | 5,704 | $ | 6,202 | |||||||||||||||||||||||
Fiat / Chrysler Group | 5,137 | 4,637 | 3,864 | ||||||||||||||||||||||||||
BMW | 4,882 | 4,100 | 4,191 | ||||||||||||||||||||||||||
Ford Motor Company | 4,450 | 3,848 | 3,549 | ||||||||||||||||||||||||||
Volkswagen | 4,047 | 3,835 | 3,187 | ||||||||||||||||||||||||||
Daimler AG | 3,949 | 3,367 | 2,793 | ||||||||||||||||||||||||||
Other | 5,976 | 5,346 | 4,962 | ||||||||||||||||||||||||||
$ | 34,835 | $ | 30,837 | $ | 28,748 | ||||||||||||||||||||||||
[c] | The following table summarizes external revenues generated by automotive products and services: | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Exterior and interior systems | $ | 12,308 | $ | 11,673 | $ | 11,020 | |||||||||||||||||||||||
Body systems and chassis systems | 7,874 | 7,123 | 6,056 | ||||||||||||||||||||||||||
Powertrain systems | 4,634 | 3,825 | 3,667 | ||||||||||||||||||||||||||
Complete vehicle assembly | 3,062 | 2,561 | 2,690 | ||||||||||||||||||||||||||
Tooling, engineering and other | 2,823 | 2,317 | 2,065 | ||||||||||||||||||||||||||
Vision and electronic systems | 2,193 | 2,132 | 2,066 | ||||||||||||||||||||||||||
Closure systems | 1,941 | 1,206 | 1,184 | ||||||||||||||||||||||||||
$ | 34,835 | $ | 30,837 | $ | 28,748 | ||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
24. SUBSEQUENT EVENTS | |
Under Austria’s current group taxation system, an Austrian entity may utilize the tax losses of all direct foreign subsidiaries. On February 28, 2014, the Austrian government enacted legislation abolishing the utilization of foreign losses, where the direct foreign subsidiary is not a member of the European Union. Furthermore, any foreign losses previously used by Austrian entities arising in those direct non European Union subsidiaries will be subject to recapture in Austria. In light of this legislation, the Company anticipates taking a charge to tax expense of approximately $25 million to $30 million during the first quarter of 2014. The tax is payable over three years, commencing in 2015. |
Comparative_Figures
Comparative Figures | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Comparative Figures | ' |
25. COMPARATIVE FIGURES | |
Certain of the comparative figures have been reclassified to conform to the current year’s method of presentation. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of consolidation | ' |
Principles of consolidation | |
The consolidated financial statements include the accounts of Magna and its subsidiaries, some of which have a non-controlling interest. | |
Financial instruments | ' |
Financial instruments | |
The Company classifies all of its financial assets and financial liabilities as held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets, or other financial liabilities. Held-for-trading financial instruments, which include cash and cash equivalents and the Company’s investment in asset-backed commercial paper [“ABCP”] are measured at fair value and all gains and losses are included in net income in the period in which they arise. Held-to-maturity investments, which include long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements, are recorded at amortized cost using the effective interest method. Loans and receivables, which include accounts receivable, long-term receivables and accounts payable, are recorded at amortized cost using the effective interest method. Available-for-sale financial assets are recorded at cost and are subsequently measured at fair value with all revaluation gains and losses included in other comprehensive income. | |
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 income. 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 income. | |
Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. Most of the Company’s foreign exchange contracts are subject to master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded on a gross basis in prepaid expenses, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive 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 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 are valued at the lower of cost and market, with cost being determined substantially on a first-in, first-out basis. Cost includes the cost of materials plus direct labour applied to the product and the applicable share of manufacturing overhead. | |
Outsourced tooling inventories are valued at the lower of subcontracted costs and market. | |
Investments | ' |
Investments | |
The Company accounts for its investments in which it has significant influence on the equity basis. Investments also include the Company’s investment in ABCP, public company shares and long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements pursuant to local tax laws. | |
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% to 5% for buildings, 7% to 10% for general purpose equipment and 10% to 33% for special purpose equipment. | |
Definite-lived intangible assets, which have arisen principally through acquisitions, are recorded in other assets and are amortized on a straight-line basis over their estimated useful lives, typically over periods not exceeding five years. | |
The Company assesses fixed and other long-lived assets [excluding goodwill] for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the long-lived assets is generally determined using estimated discounted future cash flows. | |
Goodwill | ' |
Goodwill | |
Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on an annual basis. Goodwill impairment is evaluated between annual tests upon the occurrence of certain events or circumstances. 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, the fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of impairment, if any. The fair value of a reporting unit is generally determined using the estimated discounted future cash flows of the reporting unit. | |
Other assets | ' |
Other assets | |
Other assets include the long-term portion of certain receivables, which represent the recognized sales value of tooling and design and engineering services provided to customers under certain long-term contracts. The receivables will be paid in full upon completion of the contracts or in instalments based on forecasted production volumes. In the event that actual production volumes are less than those forecasted, a reimbursement for any shortfall will be made. | |
Preproduction costs related to long-term supply agreements | ' |
Preproduction costs related to long-term supply agreements | |
Pre-operating costs incurred in establishing new facilities that require substantial time to reach commercial production capability are expensed as incurred. | |
Costs incurred [net of customer subsidies] related to design and engineering, which are paid for as part of subsequent production piece price amounts, are expensed as incurred unless a contractual guarantee for reimbursement exists. | |
Costs incurred [net of customer subsidies] related to design and development costs for moulds, dies and other tools that the Company does not own [and that will be used in, and paid for as part of the piece price amount for, subsequent production] are expensed as incurred unless the supply agreement provides a contractual guarantee for reimbursement or the non-cancellable right to use the moulds, dies and other tools during the supply agreement. | |
Where these preproduction costs are deemed to be a single unit of account combined with a subsequent parts production, the costs deferred in the above circumstances are included in other assets and amortized on a units-of-production basis to cost of goods sold over the anticipated term of the supply agreement. | |
Warranty | ' |
Warranty | |
The Company 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. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience. | |
Product liability provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims on product default issues. Recall costs are costs incurred when government regulators and/or the customer decides to recall a product due to a known or suspected performance issue, and the Company is required to participate, either voluntarily or involuntarily. Costs typically include the cost of the product being replaced, the customer’s cost of the recall and labour to remove and replace the defective part. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. In making this estimate, judgment is required as to the number of units that may be returned as a result of the recall, the total cost of the recall campaign and the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company. | |
Employee future benefit plans | ' |
Employee future benefit plans | |
The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of the accrued benefit obligation at the beginning of the year and the fair value, or market related value, of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable. | |
The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation [PBO]. The aggregate of all overfunded plans is recorded in other assets, and the aggregate of all underfunded plans in long-term employee benefit liabilities. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next twelve months, is reflected in accrued liabilities. This is determined on a plan by plan basis. | |
Asset retirement obligation | ' |
Asset retirement obligation | |
The Company recognizes its obligation to restore leased premises at the end of the lease by recording at lease inception the estimated fair value of this obligation as other long-term liabilities with a corresponding amount recognized as fixed assets. The fixed asset amount is amortized over the period from lease inception to the time the Company expects to vacate the premises, resulting in both depreciation and interest charges. The estimated fair value of the obligation is assessed for changes in the expected timing and extent of expenditures with changes related to the time value of money recorded as interest expense. | |
Revenue recognition | ' |
Revenue recognition | |
Revenue from the sale of manufactured products is recognized when the price is fixed or determinable, collectability is reasonably assured and upon shipment to [or receipt by customers, depending on contractual terms], and acceptance by customers. | |
For revenue arrangements entered into prior to January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of the subsequent parts production or vehicle assembly. For revenue arrangements entered into or materially modified on or after January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis. Revenues from significant engineering services and tooling contracts that qualify as separate revenue elements are recognized on a percentage-of-completion basis. Percentage-of-completion is generally determined based on the proportion of accumulated expenditures to date as compared to total anticipated expenditures. | |
Revenue and cost of goods sold, including amounts from engineering and tooling contracts, are presented on a gross basis in the consolidated statements of income and comprehensive income when the Company is acting as principal and is subject to significant risks and rewards in connection with the process of bringing the product to its final state and in the post-sale dealings with its customers. Otherwise, components of revenues and related costs are presented on a net basis. With respect to vehicle assembly sales, where Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. These programs are accounted for on a full-cost basis under which sales and cost of goods sold include these input costs. | |
Government assistance | ' |
Government assistance | |
The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received. When a government loan is issued to the Company at a below-market rate of interest, the loan is initially recorded at its net present value, and accreted to its face value over the period of the loan. The benefit of the below-market rate of interest is accounted for like a government grant. It is measured as the difference between the initial carrying value of the loan and the cash proceeds received. | |
Income taxes | ' |
Income taxes | |
The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | |
No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries if these items are either considered to be reinvested for the foreseeable future or if they are available for repatriation and are not subject to further tax on remittance. Taxes will be 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 significant tax on remittance. | |
Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. | |
Stock-based compensation | ' |
Stock-based compensation | |
Compensation expense is recognized for stock options based upon the fair value of the options at the grant or modification date. The fair value of the options is recognized over the vesting period of the options as compensation expense in selling, general and administrative expense with a corresponding increase to contributed surplus. | |
The fair value of stock options is estimated at the grant or modification date using the Black-Scholes option pricing model. This model requires the input of a number of assumptions, including expected dividend yields, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management’s best estimates, they involve inherent uncertainties based on market conditions generally outside the Company’s control. If other assumptions are used, stock-based compensation expense could be significantly impacted. | |
As stock options are exercised, the proceeds received on exercise, in addition to the portion of the contributed surplus balance related to those stock options, is credited to Common Shares and contributed surplus is reduced accordingly. | |
The Company’s restricted stock plans and certain restricted share unit plans are measured at fair value at the date of grant or modification and amortized to compensation expense from the effective date of the grant to the final vesting date in selling, general and administrative expense with a corresponding increase to contributed surplus. As restricted stock or restricted share units are released under the plans, the portion of the contributed surplus balance relating to the restricted stock or restricted share units is credited to Common Shares and released from contributed surplus. Certain other restricted share unit plans are recorded as liabilities at the date of grant and are marked to market in selling, general and administrative expenses each period until settled. | |
Comprehensive income | ' |
Comprehensive income | |
Other comprehensive income includes unrealized gains and losses on translation of the Company’s net investment in self-sustaining foreign operations, the change in fair value of available-for-sale investments, net of taxes, change in unamortized actuarial amounts, net of taxes and to the extent that cash flow hedges are effective, the change in their fair value, net of income taxes. | |
Accumulated other comprehensive income is a separate component of shareholders’ equity which includes the accumulated balances of all components of other comprehensive income which are recognized in comprehensive income but excluded from net income. | |
Earnings per Common Share | ' |
Earnings per Common Share | |
Basic earnings per Common Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares outstanding during the year. | |
Diluted earnings per Common Share are calculated on the weighted average number of Common Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method. | |
Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share. | |
Use of estimates | ' |
Use of estimates | |
The preparation of the consolidated financial statements in conformity with U.S. 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. |
Other_Expense_Income_Net_Table
Other Expense (Income), Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Expense (Income), Net | ' | ||||||||||||
Other expense (income), net consists of: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America [a] | |||||||||||||
Impairment of long-lived assets | $ | 23 | $ | 2 | $ | 7 | |||||||
Re-measurement gain of STT | 0 | (35 | ) | 0 | |||||||||
Settlement agreement | 0 | 0 | 11 | ||||||||||
Insurance proceeds | 0 | 0 | (15 | ) | |||||||||
23 | (33 | ) | 3 | ||||||||||
Europe [b] | |||||||||||||
Restructuring charges | 89 | 55 | 0 | ||||||||||
Impairment of long-lived assets | 0 | 23 | 14 | ||||||||||
Loss on disposal of facility | 0 | 0 | 129 | ||||||||||
Customer bankruptcy | 0 | 0 | 11 | ||||||||||
89 | 78 | 154 | |||||||||||
Rest of World [c] | |||||||||||||
Impairment of long-lived assets | 10 | 0 | 0 | ||||||||||
Impairment of goodwill | 22 | 0 | 0 | ||||||||||
32 | 0 | 0 | |||||||||||
Corporate [d] | |||||||||||||
Re-measurement gain of E-Car | 0 | (153 | ) | 0 | |||||||||
Write down of real estate | 0 | 0 | 9 | ||||||||||
Gain on sale of investment | 0 | 0 | (10 | ) | |||||||||
0 | (153 | ) | (1 | ) | |||||||||
$ | 144 | $ | (108 | ) | $ | 156 | |||||||
[a] | North America | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
In conjunction with its annual business planning cycle, during the fourth quarter of 2013 the Company recorded long-lived asset impairment charges of $23 million [$11 million after tax and non-controlling interests] in North America related to battery research equipment in Canada. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During 2012 the Company recorded long-lived asset impairment charges of $2 million [$1 million after tax] in North America related to specific fixed assets at a metal fabricating facility in the United States. | |||||||||||||
On October 26, 2012, the Company acquired the remaining 50% interest in STT Technologies Inc. [“STT”] for cash consideration of $55 million. STT is a manufacturer of automotive pumps with operations in Canada and Mexico. Prior to the acquisition, the Company accounted for this investment using the equity method of accounting. | |||||||||||||
The incremental investment in STT was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measures its pre-existing investment in STT at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s investment immediately before the closing date was $55 million, which resulted in the recognition of a non-cash gain of $35 million [$35 million after tax]. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During 2011, a settlement agreement was finalized in connection with the settlement of certain patent infringement and other claims. The Company recorded an $11 million expense in the third quarter of 2011 in relation to these arrangements. | |||||||||||||
During 2011, the Company recorded long-lived asset impairment charges of $7 million [$7 million after tax] related to a roof systems facility in the United States. | |||||||||||||
During 2011, the Company received proceeds pursuant to an insurance claim for fire damages related to an interior systems facility in the United States. The proceeds received were $15 million in excess of the damaged assets’ net book value and the losses previously recognized, and was recorded in income. | |||||||||||||
[b] | Europe | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
As a result of recent customer announcements related to plant closures, the profitability of certain facilities and the level of future booked business, management determined that restructuring would have to be completed in its traditional European markets in order to remain cost competitive over the long-term. As a result, during 2013, the Company recorded net restructuring charges of $89 million [$64 million after tax] in Europe at its exterior and interior systems operations related primarily to the closure of a facility in Belgium. | |||||||||||||
Substantially all of these restructuring costs will be paid subsequent to 2013. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During the fourth quarter of 2012, the Company recorded restructuring charges of $55 million [$53 million after tax] in Europe primarily at its exterior and interior systems and complete vehicle and engineering services operations. | |||||||||||||
During the fourth quarter of 2012, the Company recorded long-lived asset impairment charges of $23 million [$22 million after tax] primarily related to exterior and interior systems facilities. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During the third quarter of 2011, the Company sold an interior systems operation located in Germany and recorded a loss on disposal of $113 million. This operation, whose long-lived assets were substantially impaired in 2010, had a history of losses which were projected to continue throughout the business planning period. Under the terms of the 2011 sale arrangements [the “SPA”], the Company agreed to fund the buyer $67 million, to be satisfied with certain working capital items, cash and the assumption of certain liabilities. Final settlement of the SPA did not occur during 2011 and in the fourth quarter of 2011 an additional $16 million was accrued in relation to the ongoing disputes with the purchaser bringing the total loss on disposal to $129 million. As more fully described in note 6, on June 4, 2012, the Company re-acquired the above operation. | |||||||||||||
During 2011, the Company recorded long-lived asset impairment charges of $14 million [$13 million after tax] related to various facilities in Europe. | |||||||||||||
During 2011, the Company recorded an $11 million charge related to the insolvency of Saab. | |||||||||||||
[c] | Rest of World | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
In conjunction with its annual business planning cycle, during 2013 the Company recorded long-lived asset impairment charges of $10 million [$10 million after tax], related primarily to fixed assets at the Company’s Seating operations in South America. | |||||||||||||
In addition, during 2013 the Company recorded goodwill impairment charges of $22 million [$22 million after tax] related to the Company’s metal stamping operations. | |||||||||||||
[d] | Corporate | ||||||||||||
For the year ended December 31, 2012 | |||||||||||||
On August 31, 2012, the Company acquired the controlling 27% interest in the Magna E-Car Systems L.P. [“E-Car”] partnership from a company affiliated with the Stronach Group for cash consideration of $75 million. | |||||||||||||
Prior to the acquisition, the Company held the remaining 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting. The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measure its pre-existing investment in E-Car at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s partnership interest immediately before the closing date was $205 million, which resulted in the recognition of a non-cash gain of $153 million [$125 million after tax]. | |||||||||||||
For the year ended December 31, 2011 | |||||||||||||
During 2011, five excess corporate real estate assets were sold to entities associated with the Company’s Founder and Chairman, Mr. Stronach and/or the Company’s former Co-Chief Executive Officer, Siegfried Wolf. The sales were approved by the independent members of Magna’s Board of Directors based on independent fair market appraisals. The appraised fair value range for the properties was less than their carrying value and, accordingly, the Company recorded a $9 million impairment charge in 2011. | |||||||||||||
During 2011, the Company sold its 40% non-controlling interest in an equity accounted investment for proceeds of $151 million [Cdn$147 million] and recognized a $10 million gain on disposal. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Earnings Per Share | ' | ||||||||||||
Earnings per share are computed as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,561 | $ | 1,433 | $ | 1,018 | |||||||
Average number of Common Shares outstanding during the year | 227.9 | 232.4 | 239.3 | ||||||||||
Basic earnings per Common Share | $ | 6.85 | $ | 6.17 | $ | 4.26 | |||||||
Diluted earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,561 | $ | 1,433 | $ | 1,018 | |||||||
Average number of Common Shares outstanding during the year | 227.9 | 232.4 | 239.3 | ||||||||||
Adjustments | |||||||||||||
Stock options and restricted stock [a] | 2.9 | 2.8 | 3.5 | ||||||||||
230.8 | 235.2 | 242.8 | |||||||||||
Diluted earnings per Common Share | $ | 6.76 | $ | 6.09 | $ | 4.2 | |||||||
[a] | Diluted earnings per Common Share exclude 0.1 million [2012 - 2.3 million; 2011 - 2.1 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. |
Details_of_Consolidated_Statem1
Details of Consolidated Statements of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Components of Cash and Cash Equivalents | ' | ||||||||||||
[a] | Cash and cash equivalents consist of: | ||||||||||||
2013 | 2012 | ||||||||||||
Bank term deposits, bankers’ acceptances and government paper | $ | 1,331 | $ | 1,220 | |||||||||
Cash | 223 | 302 | |||||||||||
$ | 1,554 | $ | 1,522 | ||||||||||
Details of Items Not Involving Current Cash Flows | ' | ||||||||||||
[b] | Items not involving current cash flows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization | $ | 1,063 | $ | 801 | $ | 686 | |||||||
Other non-cash charges | 189 | 154 | 110 | ||||||||||
Amortization of other assets included in cost of goods sold | 138 | 113 | 80 | ||||||||||
Non-cash portion of Other expense (income), net [note 3] | 0 | (188 | ) | 147 | |||||||||
Impairment charges [note 3] | 55 | 25 | 0 | ||||||||||
Deferred income taxes [note 11] | (100 | ) | (46 | ) | (76 | ) | |||||||
Equity income | (196 | ) | (151 | ) | (121 | ) | |||||||
$ | 1,149 | $ | 708 | $ | 826 | ||||||||
Changes in Non-Cash Operating Assets and Liabilities | ' | ||||||||||||
[c] | Changes in non-cash operating assets and liabilities: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accounts receivable | $ | (584 | ) | $ | (46 | ) | $ | (909 | ) | ||||
Inventories | (141 | ) | (315 | ) | (282 | ) | |||||||
Prepaid expenses and other | (56 | ) | 36 | (49 | ) | ||||||||
Accounts payable | 329 | 249 | 475 | ||||||||||
Accrued salaries and wages | 87 | 37 | 80 | ||||||||||
Other accrued liabilities | 298 | 97 | 87 | ||||||||||
Income taxes payable | (56 | ) | 16 | (29 | ) | ||||||||
Deferred revenue | (4 | ) | (2 | ) | (4 | ) | |||||||
$ | (127 | ) | $ | 72 | $ | (631 | ) | ||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Net Effect of Acquisitions on Consolidation Balance and Adjustments to Preliminary Purchase Price Allocations | ' | ||||||||||||
The net effect of the acquisitions on the Company’s 2012 consolidated balance sheet and as well as certain adjustments recorded during 2013 to the preliminary purchase price allocations are as follows: | |||||||||||||
2012 | 2013 | Final | |||||||||||
Preliminary | Adjustments | Allocation | |||||||||||
Allocation | |||||||||||||
Non-cash working capital | $ | (129 | ) | $ | (47 | ) | $ | (176 | ) | ||||
Investments | 3 | (3 | ) | 0 | |||||||||
Fixed assets | 501 | (36 | ) | 465 | |||||||||
Goodwill | 289 | (2 | ) | 287 | |||||||||
Other assets | 94 | 99 | 193 | ||||||||||
Deferred tax assets | 0 | 5 | 5 | ||||||||||
Purchase intangibles | 215 | 0 | 215 | ||||||||||
Long-term employee benefit liabilities | (49 | ) | 1 | (48 | ) | ||||||||
Long-term debt | (25 | ) | (2 | ) | (27 | ) | |||||||
Other long-term liabilities | (35 | ) | 0 | (35 | ) | ||||||||
Deferred tax liabilities | (68 | ) | (15 | ) | (83 | ) | |||||||
Non-controlling interests | (11 | ) | 0 | (11 | ) | ||||||||
Fair value of net assets (excluding cash) | $ | 785 | $ | 0 | $ | 785 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of: | |||||||||
2013 | 2012 | ||||||||
Raw materials and supplies | $ | 947 | $ | 911 | |||||
Work-in-process | 273 | 260 | |||||||
Finished goods | 339 | 283 | |||||||
Tooling and engineering | 1,078 | 1,058 | |||||||
$ | 2,637 | $ | 2,512 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||
Company's Investment in ABCP | ' | ||||||||||||
The following is a continuity of the Company’s investment in ABCP: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 90 | $ | 82 | $ | 84 | |||||||
Valuation adjustment [i] | 8 | 15 | 0 | ||||||||||
Cash receipts | 0 | (9 | ) | 0 | |||||||||
Foreign exchange and other | (6 | ) | 2 | (2 | ) | ||||||||
$ | 92 | $ | 90 | $ | 82 | ||||||||
[i] | The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. During the year ended December 31, 2013, the Company recorded an $8 million [2012 - $15 million] increase in the carrying value of its investment in ABCP in selling, general and administrative expense, due to a reduction of the spread between the anticipated return on the restructured notes and current market indices. | ||||||||||||
Company's Combined Proportionate Share of Major Components of Financial Statements | ' | ||||||||||||
[b] | The Company’s net income includes the proportionate share of net income or loss of its equity method investees. When a proportionate share of net income is recorded, it increases equity income in the consolidated statements of income and the carrying value of those investments. Conversely, when a proportionate share of a net loss is recorded, it decreases equity income in the consolidated statements of income and the carrying value of those investments. The following is the Company’s combined proportionate share of the major components of the financial statements of the entities in which the Company accounts for using the equity method: | ||||||||||||
Balance Sheets | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 373 | $ | 344 | |||||||||
Long-term assets | $ | 82 | $ | 74 | |||||||||
Current liabilities | $ | 167 | $ | 150 | |||||||||
Long-term liabilities | $ | 76 | $ | 60 | |||||||||
Statements of Income | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales | $ | 1,013 | $ | 967 | $ | 881 | |||||||
Cost of goods sold, expenses and income taxes | 839 | 814 | 805 | ||||||||||
Net income | $ | 174 | $ | 153 | $ | 76 | |||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Fixed Assets | ' | ||||||||
Fixed assets consist of: | |||||||||
2013 | 2012 | ||||||||
Cost | |||||||||
Land | $ | 236 | $ | 238 | |||||
Buildings | 1,592 | 1,513 | |||||||
Machinery and equipment | 11,510 | 11,047 | |||||||
13,338 | 12,798 | ||||||||
Accumulated depreciation | |||||||||
Buildings | (579 | ) | (541 | ) | |||||
Machinery and equipment | (7,318 | ) | (6,984 | ) | |||||
$ | 5,441 | $ | 5,273 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill by Segment | ' | ||||||||||||||||||||
The following is a continuity of the Company’s goodwill by segment: | |||||||||||||||||||||
North | Europe | Asia | Rest of | Total | |||||||||||||||||
America | World | ||||||||||||||||||||
Balance, December 31, 2011 | $ | 644 | $ | 392 | $ | 74 | $ | 86 | $ | 1,196 | |||||||||||
Acquisitions [note 6] | 75 | 206 | 0 | 8 | 289 | ||||||||||||||||
Foreign exchange and other | (18 | ) | 13 | 0 | (7 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2012 | 701 | 611 | 74 | 87 | 1,473 | ||||||||||||||||
Acquisitions [note 6] | (24 | ) | 22 | 3 | 0 | 1 | |||||||||||||||
Impairments [note 3] | 0 | 0 | 0 | (22 | ) | (22 | ) | ||||||||||||||
Reallocation between reporting segments [i] | 0 | 0 | 51 | (51 | ) | 0 | |||||||||||||||
Foreign exchange and other | (21 | ) | 22 | 1 | (14 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2013 | $ | 656 | $ | 655 | $ | 129 | $ | 0 | $ | 1,440 | |||||||||||
[i] | During the fourth quarter of 2013, the Company began reporting Asia and Rest of World as separate reporting segments [note 23]. As a result, goodwill was assigned to the reporting segments using a relative fair value allocation. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Canadian statutory income tax rate | 26.5 | % | 26.5 | % | 28.3 | % | |||||||
Manufacturing and processing profits deduction | (0.4 | ) | (0.7 | ) | (0.8 | ) | |||||||
Foreign rate differentials | (1.5 | ) | (1.5 | ) | (2.0 | ) | |||||||
Losses not benefited | 5.3 | 5.8 | 11.4 | ||||||||||
Utilization of losses previously not benefited | (1.0 | ) | (0.3 | ) | (10.2 | ) | |||||||
Earnings of equity accounted investees | (1.1 | ) | (1.2 | ) | (1.6 | ) | |||||||
Withholding tax | 1.4 | 0 | 0 | ||||||||||
Valuation allowance on deferred tax assets [i] | (1.1 | ) | (5.0 | ) | (6.5 | ) | |||||||
Mexican flat tax [ii] | (1.9 | ) | 0 | 0 | |||||||||
Research and development tax credits [iii] | (4.3 | ) | (2.3 | ) | (1.6 | ) | |||||||
Reserve for uncertain tax positions | (2.3 | ) | (1.0 | ) | (0.4 | ) | |||||||
Re-measurement gains | 0 | (1.1 | ) | 0 | |||||||||
Other | (0.7 | ) | (0.7 | ) | 0 | ||||||||
Effective income tax rate | 18.9 | % | 18.5 | % | 16.6 | % | |||||||
[i] | GAAP requires that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more likely than not” standard. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets. | ||||||||||||
[ii] | During the fourth quarter of 2013, the Company recorded a tax benefit of $36 million as a result of the elimination of the Mexican flat tax, which became effective on January 1, 2014. Previously, there were two taxes in Mexico; a flat tax and an income tax and taxpayers were required to pay tax based on the greater of the two. Deferred taxes were also maintained by the Company based on calculations under one or the other of these taxes. The elimination of the flat tax allowed the Company to reverse its net deferred tax liabilities for its entities under that tax and establish a deferred tax asset under the income tax. | ||||||||||||
[iii] | For the year ended December 31, 2013, the amount includes a tax benefit of $36 million in connection with a settlement with the United States Internal Revenue Service, of claims for research and development tax credits covering years 2008 and 2009 and a resulting change in the Company’s estimate of the amount of similar claims for subsequent periods. | ||||||||||||
Details of Income before Income Taxes by Jurisdiction | ' | ||||||||||||
[b] | The details of income before income taxes by jurisdiction are as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Canadian | $ | 653 | $ | 944 | $ | 710 | |||||||
Foreign | 1,252 | 806 | 507 | ||||||||||
$ | 1,905 | $ | 1,750 | $ | 1,217 | ||||||||
Details of Income Tax Provision (Recovery) | ' | ||||||||||||
[c] | The details of the income tax provision (recovery) are as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Canadian | $ | 159 | $ | 170 | $ | 115 | |||||||
Foreign | 301 | 200 | 163 | ||||||||||
460 | 370 | 278 | |||||||||||
Deferred | |||||||||||||
Canadian | (29 | ) | (6 | ) | 7 | ||||||||
Foreign | (71 | ) | (40 | ) | (83 | ) | |||||||
(100 | ) | (46 | ) | (76 | ) | ||||||||
$ | 360 | $ | 324 | $ | 202 | ||||||||
Summary of Deferred Income Taxes Provided on Temporary Differences | ' | ||||||||||||
[d] | Deferred income taxes have been provided on temporary differences, which consist of the following: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax depreciation greater (less) than book depreciation | $ | (23 | ) | $ | 13 | $ | 51 | ||||||
Book amortization less than (in excess of) tax amortization | (57 | ) | 16 | 0 | |||||||||
Liabilities currently not deductible for tax | (48 | ) | (29 | ) | (28 | ) | |||||||
Net tax losses (benefited) utilized | 50 | (11 | ) | (37 | ) | ||||||||
Change in valuation allowance on deferred tax assets | (21 | ) | (89 | ) | (78 | ) | |||||||
Net tax credits utilized | 2 | 53 | 24 | ||||||||||
Other | (3 | ) | 1 | (8 | ) | ||||||||
$ | (100 | ) | $ | (46 | ) | $ | (76 | ) | |||||
Summary of Deferred Tax Assets and Liabilities | ' | ||||||||||||
[e] | Deferred tax assets and liabilities consist of the following temporary differences: | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Tax benefit of loss carryforwards | $ | 610 | $ | 628 | |||||||||
Liabilities currently not deductible for tax | 337 | 263 | |||||||||||
Tax credit carryforwards | 34 | 35 | |||||||||||
Unrealized loss on cash flow hedges and retirement liabilities | 39 | 48 | |||||||||||
Other | 11 | 0 | |||||||||||
1,031 | 974 | ||||||||||||
Valuation allowance against tax benefit of loss carryforwards | (528 | ) | (504 | ) | |||||||||
Other valuation allowance | (111 | ) | (45 | ) | |||||||||
392 | 425 | ||||||||||||
Liabilities | |||||||||||||
Tax depreciation in excess of book depreciation | 170 | 199 | |||||||||||
Other assets book value in excess of tax value | 15 | 77 | |||||||||||
Unrealized gain on cash flow hedges and retirement liabilities | 21 | 19 | |||||||||||
Other | 0 | 30 | |||||||||||
206 | 325 | ||||||||||||
Net deferred tax assets | $ | 186 | $ | 100 | |||||||||
Net Deferred Tax Assets Presented on Consolidated Balance Sheet | ' | ||||||||||||
The net deferred tax assets are presented on the consolidated balance sheet in the following categories: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 275 | $ | 170 | |||||||||
Current deferred tax liabilities | (9 | ) | (19 | ) | |||||||||
Long-term deferred tax assets | 120 | 90 | |||||||||||
Long-term deferred tax liabilities | (200 | ) | (141 | ) | |||||||||
$ | 186 | $ | 100 | ||||||||||
Summary of Changes in Gross Unrecognized Tax Benefits | ' | ||||||||||||
A summary of the changes in gross unrecognized tax benefits is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 279 | $ | 252 | $ | 257 | |||||||
Additions based on tax positions related to current year | 35 | 68 | 14 | ||||||||||
(Reductions)/additions based on tax positions of prior years | (44 | ) | (31 | ) | 13 | ||||||||
Settlements | (24 | ) | (10 | ) | (12 | ) | |||||||
Statute expirations | (7 | ) | (5 | ) | (16 | ) | |||||||
Foreign currency translation | (1 | ) | 5 | (4 | ) | ||||||||
$ | 238 | $ | 279 | $ | 252 | ||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Summary of Other Assets | ' | ||||||||
Other assets consist of: | |||||||||
2013 | 2012 | ||||||||
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $ | 291 | $ | 297 | |||||
Long-term receivables [note 21[c]] | 111 | 95 | |||||||
Patents and licenses, net | 44 | 40 | |||||||
Unrealized gain on cash flow hedges [note 21] | 20 | 32 | |||||||
E-Car intangible [note 6] | 0 | 158 | |||||||
Customer relationship intangibles [note 6] | 143 | 93 | |||||||
Pension overfunded status [note 16[a]] | 26 | 0 | |||||||
Other, net | 40 | 38 | |||||||
$ | 675 | $ | 753 | ||||||
Warranty_Tables
Warranty (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Guarantees [Abstract] | ' | ||||||||||||
Schedule of Company's Warranty Accruals | ' | ||||||||||||
The following is a continuity of the Company’s warranty accruals: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 94 | $ | 76 | $ | 68 | |||||||
Expense, net | 40 | 43 | 46 | ||||||||||
Settlements | (46 | ) | (46 | ) | (38 | ) | |||||||
Acquisitions [note 6] | 1 | 17 | 0 | ||||||||||
Foreign exchange and other | 2 | 4 | 0 | ||||||||||
$ | 91 | $ | 94 | $ | 76 | ||||||||
Debt_and_Commitments_Tables
Debt and Commitments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Schedule of Company's Long-Term Debt | ' | ||||||||||||
[a] | The Company’s long-term debt, which is substantially uncollateralized, consists of the following: | ||||||||||||
2013 | 2012 | ||||||||||||
Bank term debt at a weighted average interest rate of approximately 6.3% [2012 – 8.0%], denominated primarily in Chinese renminbi and Brazilian real | $ | 239 | $ | 268 | |||||||||
Government loans at a weighted average interest rate of approximately 5.9% [2012 – 5.4%], denominated primarily in Brazilian real and euros | 26 | 15 | |||||||||||
Other | 67 | 78 | |||||||||||
332 | 361 | ||||||||||||
Less due within one year | 230 | 249 | |||||||||||
$ | 102 | $ | 112 | ||||||||||
Schedule of Future Principal Repayments on Long-Term Debt | ' | ||||||||||||
[b] | Future principal repayments on long-term debt are estimated to be as follows: | ||||||||||||
2014 | $ | 230 | |||||||||||
2015 | 39 | ||||||||||||
2016 | 22 | ||||||||||||
2017 | 15 | ||||||||||||
2018 | 18 | ||||||||||||
Thereafter | 8 | ||||||||||||
$ | 332 | ||||||||||||
Interest (Income) Expense, Net | ' | ||||||||||||
[d] | Interest expense (income), net includes: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense | |||||||||||||
Current | $ | 26 | $ | 27 | $ | 16 | |||||||
Long-term | 8 | 7 | 3 | ||||||||||
34 | 34 | 19 | |||||||||||
Interest income | (18 | ) | (18 | ) | (25 | ) | |||||||
Interest expense (income), net | $ | 16 | $ | 16 | $ | (6 | ) | ||||||
Company's Commitments under Operating Leases and Requiring Annual Rental Payments | ' | ||||||||||||
[f] | At December 31, 2013, the Company had commitments under operating leases requiring annual rental payments as follows: | ||||||||||||
Total | |||||||||||||
2014 | $ | 343 | |||||||||||
2015 | 303 | ||||||||||||
2016 | 273 | ||||||||||||
2017 | 240 | ||||||||||||
2018 | 157 | ||||||||||||
Thereafter | 402 | ||||||||||||
$ | 1,718 | ||||||||||||
LongTerm_Employee_Benefit_Liab1
Long-Term Employee Benefit Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Long-Term Employee Benefit Liabilities | ' | ||||||||||||||||
Long-term employee benefit liabilities consist of: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Defined benefit pension plans and other [a] | $ | 149 | $ | 212 | $ | 128 | |||||||||||
Termination and long service arrangements [b] | 343 | 304 | 244 | ||||||||||||||
Retirement medical benefits plans [c] | 34 | 39 | 37 | ||||||||||||||
Other long-term employee benefits | 6 | 5 | 10 | ||||||||||||||
Long-term employee benefit obligations | $ | 532 | $ | 560 | $ | 419 | |||||||||||
Schedule of Company's Defined Benefit Pension Plan | ' | ||||||||||||||||
Information about the Company’s defined benefit pension plans is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 502 | $ | 388 | $ | 337 | |||||||||||
Current service cost | 13 | 11 | 10 | ||||||||||||||
Interest cost | 19 | 18 | 19 | ||||||||||||||
Actuarial (gains) losses and changes in actuarial assumptions | (56 | ) | 50 | 42 | |||||||||||||
Benefits paid | (18 | ) | (18 | ) | (13 | ) | |||||||||||
Special termination benefit | 0 | 0 | 1 | ||||||||||||||
Acquisition | 0 | 47 | 0 | ||||||||||||||
Divestitures | 0 | 0 | (3 | ) | |||||||||||||
Foreign exchange | (6 | ) | 6 | (5 | ) | ||||||||||||
End of year | 454 | 502 | 388 | ||||||||||||||
Plan assets at fair value | |||||||||||||||||
Beginning of year | 288 | 259 | 253 | ||||||||||||||
Return on plan assets | 38 | 26 | 0 | ||||||||||||||
Employer contributions | 30 | 19 | 24 | ||||||||||||||
Benefits paid | (18 | ) | (19 | ) | (14 | ) | |||||||||||
Foreign exchange | (10 | ) | 3 | (4 | ) | ||||||||||||
End of year | 328 | 288 | 259 | ||||||||||||||
Ending funded status | $ | 126 | $ | 214 | $ | 129 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Non-current asset [note 12] | $ | (26 | ) | $ | 0 | $ | (1 | ) | |||||||||
Current liability | 3 | 2 | 2 | ||||||||||||||
Non-current liability | 149 | 212 | 128 | ||||||||||||||
Net amount | $ | 126 | $ | 214 | $ | 129 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (61 | ) | $ | (141 | ) | $ | (101 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 13 | $ | 11 | $ | 10 | |||||||||||
Interest cost | 19 | 18 | 19 | ||||||||||||||
Return on plan assets | (19 | ) | (19 | ) | (19 | ) | |||||||||||
Actuarial losses | 5 | 3 | 1 | ||||||||||||||
Special termination benefit | 0 | 0 | 1 | ||||||||||||||
Net periodic benefit cost | $ | 18 | $ | 13 | $ | 12 | |||||||||||
Future Benefit Payments | ' | ||||||||||||||||
[d] | Future benefit payments | ||||||||||||||||
Defined | Termination | Retirement | Total | ||||||||||||||
benefit | and long | medical | |||||||||||||||
pension plans | service | benefits plans | |||||||||||||||
arrangements | |||||||||||||||||
Expected employer contributions – 2014 | $ | 33 | $ | 11 | $ | 2 | $ | 46 | |||||||||
Expected benefit payments: | |||||||||||||||||
2014 | $ | 17 | $ | 11 | $ | 2 | $ | 30 | |||||||||
2015 | 17 | 10 | 2 | 29 | |||||||||||||
2016 | 17 | 10 | 2 | 29 | |||||||||||||
2017 | 18 | 11 | 3 | 32 | |||||||||||||
2018 | 18 | 14 | 2 | 34 | |||||||||||||
Thereafter | 104 | 104 | 12 | 220 | |||||||||||||
$ | 191 | $ | 160 | $ | 23 | $ | 374 | ||||||||||
Asset Allocation of Defined Benefit Pension Plans | ' | ||||||||||||||||
The asset allocation of the Company’s defined benefit pension plans at December 31, 2013 and 2012, and the target allocation for 2014 is as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Equity securities | 55-75% | 58 | % | 57 | % | ||||||||||||
Fixed income securities | 25-45% | 41 | % | 42 | % | ||||||||||||
Cash and cash equivalents | 0-15% | 1 | % | 1 | % | ||||||||||||
100% | 100 | % | 100 | % | |||||||||||||
Pension Plan, Defined Benefit [Member] | ' | ||||||||||||||||
Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost | ' | ||||||||||||||||
The weighted average significant actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | 4.7 | % | |||||||||||
Rate of compensation increase | 2.9 | % | 2.8 | % | 2.8 | % | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Discount rate | 4.1 | % | 4.7 | % | 5.2 | % | |||||||||||
Rate of compensation increase | 2.8 | % | 2.8 | % | 2.7 | % | |||||||||||
Expected return on plan assets | 6.5 | % | 7 | % | 7.1 | % | |||||||||||
Termination and Long Service Arrangements [Member] | ' | ||||||||||||||||
Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost | ' | ||||||||||||||||
The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 3.9 | % | 4.2 | % | 5.4 | % | |||||||||||
Rate of compensation increase | 3.9 | % | 3.9 | % | 4 | % | |||||||||||
Schedule of Company's Defined Benefit Pension Plan | ' | ||||||||||||||||
Information about the Company’s termination and long service arrangements is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 314 | $ | 252 | $ | 235 | |||||||||||
Current service cost | 24 | 16 | 15 | ||||||||||||||
Interest cost | 13 | 13 | 10 | ||||||||||||||
Actuarial losses and changes in actuarial assumptions | 12 | 41 | 14 | ||||||||||||||
Benefits paid | (21 | ) | (13 | ) | (12 | ) | |||||||||||
Acquisition | 0 | 2 | 0 | ||||||||||||||
Curtailment | 0 | (4 | ) | 0 | |||||||||||||
Foreign exchange | 12 | 7 | (10 | ) | |||||||||||||
Ending funded status | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 11 | $ | 10 | $ | 8 | |||||||||||
Non-current liability | 343 | 304 | 244 | ||||||||||||||
Net amount | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (82 | ) | $ | (74 | ) | $ | (45 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 24 | $ | 16 | $ | 15 | |||||||||||
Interest cost | 13 | 13 | 10 | ||||||||||||||
Actuarial losses | 4 | 12 | 6 | ||||||||||||||
Net periodic benefit cost | $ | 41 | $ | 41 | $ | 31 | |||||||||||
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: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Retirement medical benefit obligations | 4.5 | % | 3.6 | % | 4.2 | % | |||||||||||
Net periodic benefit cost | 3.6 | % | 4.2 | % | 5.4 | % | |||||||||||
Health care cost inflation | 7.7 | % | 8 | % | 9.2 | % | |||||||||||
Schedule of Company's Defined Benefit Pension Plan | ' | ||||||||||||||||
Information about the Company’s retirement medical benefits plans are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 41 | $ | 39 | $ | 36 | |||||||||||
Interest cost | 2 | 2 | 2 | ||||||||||||||
Actuarial (gains) losses and changes in actuarial assumptions | (4 | ) | 3 | 4 | |||||||||||||
Benefits paid | (2 | ) | (3 | ) | (3 | ) | |||||||||||
Foreign exchange | (1 | ) | 0 | 0 | |||||||||||||
Ending funded status | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Non-current liability | 34 | 39 | 37 | ||||||||||||||
Net amount | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized past service costs | $ | 2 | $ | 3 | $ | 3 | |||||||||||
Unrecognized actuarial gains | 10 | 8 | 12 | ||||||||||||||
Total accumulated other comprehensive income | $ | 12 | $ | 11 | $ | 15 | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Actuarial gains | (2 | ) | (1 | ) | (1 | ) | |||||||||||
Past service cost amortization | (1 | ) | 0 | (1 | ) | ||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | 1 | $ | 0 | ||||||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Particulars of Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of: | |||||||||
2013 | 2012 | ||||||||
Long-term portion of income taxes payable | $ | 133 | $ | 94 | |||||
Asset retirement obligation | 40 | 39 | |||||||
Long-term portion of fair value of hedges [note 21] | 28 | 10 | |||||||
Deferred revenue | 7 | 11 | |||||||
$ | 208 | $ | 154 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Options Outstanding | ' | ||||||||||||||||
The following is a continuity schedule of all options outstanding [number of options in the table below are expressed in whole numbers]: | |||||||||||||||||
Options outstanding | |||||||||||||||||
Number | Weighted | Number | |||||||||||||||
of options | average | of options | |||||||||||||||
exercise | exercisable | ||||||||||||||||
price | |||||||||||||||||
Outstanding at December 31, 2010 | 11,142,450 | Cdn$ | 34.22 | 3,362,116 | |||||||||||||
Exercised [i] | (2,737,253 | ) | 33.28 | (2,737,253 | ) | ||||||||||||
Cancelled | (1,537,830 | ) | 48.86 | (1,426,164 | ) | ||||||||||||
Vested | 0 | 0 | 2,868,001 | ||||||||||||||
Outstanding at December 31, 2011 | 6,867,367 | Cdn$ | 31.54 | 2,066,700 | |||||||||||||
Granted | 1,389,000 | 48.22 | 0 | ||||||||||||||
Exercised [ii] | (1,525,159 | ) | 28.46 | (1,525,159 | ) | ||||||||||||
Cancelled | (107,966 | ) | 53.14 | (58,967 | ) | ||||||||||||
Vested | 0 | 0 | 2,745,000 | ||||||||||||||
Outstanding at December 31, 2012 | 6,623,242 | Cdn$ | 35.39 | 3,227,574 | |||||||||||||
Granted | 1,060,000 | 57.02 | 0 | ||||||||||||||
Exercised [iii] | (2,805,969 | ) | 31.99 | (2,805,969 | ) | ||||||||||||
Cancelled | (119,165 | ) | 51.46 | (31,667 | ) | ||||||||||||
Vested | 0 | 0 | 2,457,171 | ||||||||||||||
Outstanding at December 31, 2013 | 4,758,108 | Cdn$ | 41.82 | 2,847,109 | |||||||||||||
The total intrinsic value of options exercised during 2013 was $56 million [2012 - $6 million; 2011 - $19 million]. | |||||||||||||||||
[i] | During 2011, 1,283,334 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $30 million were made to the stock option holders. | ||||||||||||||||
[ii] | During 2012, 1,100,001 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $19 million were made to the stock option holders. | ||||||||||||||||
[iii] | During 2013, 849,999 options were exercised on a cashless basis in accordance with the applicable stock option plans. On exercise, cash payments totalling $23 million were made to the stock option holders. | ||||||||||||||||
Summary of Characteristics of Options Outstanding | ' | ||||||||||||||||
At December 31, 2013, the outstanding options consist of [number of options in the table below are expressed in whole numbers]: | |||||||||||||||||
Options outstanding | |||||||||||||||||
Number | Remaining | Number | |||||||||||||||
of options | contractual | of options | |||||||||||||||
life [years] | exercisable | ||||||||||||||||
$15 to $20 | 487,008 | 2.2 | 487,008 | ||||||||||||||
$25 to $30 | 1,398,853 | 3.2 | 1,398,853 | ||||||||||||||
$35 to $40 | 20,000 | 3.4 | 20,000 | ||||||||||||||
$45 to $50 | 1,156,324 | 4.3 | 275,325 | ||||||||||||||
$50 to $55 | 665,923 | 4 | 665,923 | ||||||||||||||
Over $55 | 1,030,000 | 6.2 | 0 | ||||||||||||||
4,758,108 | 2,847,109 | ||||||||||||||||
Weighted average exercise price | Cdn$ | 41.82 | Cdn$ | 34.33 | |||||||||||||
Weighted average life remaining [years] | 4.31 | 3.38 | |||||||||||||||
Aggregate intrinsic value at December 31, 2013 | $ | 198 | $ | 139 | |||||||||||||
Fair Value of Stock Options Granted and Compensation Expenses | ' | ||||||||||||||||
The weighted average assumptions used in measuring the fair value of stock options granted are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.32 | % | 2.23 | % | 0 | ||||||||||||
Expected dividend yield | 2 | % | 2 | % | 0 | ||||||||||||
Expected volatility | 34 | % | 43 | % | 0 | ||||||||||||
Expected time until exercise | 4.5 years | 4.5 years | 0 | ||||||||||||||
Weighted average fair value of options granted in year [Cdn$] | $ | 14.02 | $ | 15.37 | $ | 0 | |||||||||||
Schedule of Reduction in Stated Value of Company's Common Shares | ' | ||||||||||||||||
The following is a continuity of the stock that has not been released to the executives and is reflected as a reduction in the stated value of the Company’s Common Shares [number of Common Shares in the table below are expressed in whole numbers]: | |||||||||||||||||
Number | Stated | ||||||||||||||||
of shares | value | ||||||||||||||||
Awarded and not released, December 31, 2010 | 1,182,736 | $ | 40 | ||||||||||||||
Release of restricted stock | (156,432 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2011 | 1,026,304 | 35 | |||||||||||||||
Release of restricted stock | (143,316 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2012 | 882,988 | 30 | |||||||||||||||
Release of restricted stock | (152,512 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2013 | 730,476 | $ | 25 | ||||||||||||||
Schedule of Restricted Stock Unit Programs Outstanding | ' | ||||||||||||||||
The following is a continuity schedule of restricted stock unit programs outstanding [number of stock units in the table below are expressed in whole numbers]: | |||||||||||||||||
Equity | Liability | Liability | Total | ||||||||||||||
classified | classified | classified | |||||||||||||||
RSUs | RSUs | DSUs | |||||||||||||||
Outstanding at December 31, 2010 | 181,732 | 34,242 | 186,348 | 402,322 | |||||||||||||
Granted | 208,458 | 4,150 | 22,669 | 235,277 | |||||||||||||
Dividend equivalents | 2,022 | 946 | 4,696 | 7,664 | |||||||||||||
Redeemed | (24,486 | ) | (9,532 | ) | (15,267 | ) | (49,285 | ) | |||||||||
Outstanding at December 31, 2011 | 367,726 | 29,806 | 198,446 | 595,978 | |||||||||||||
Granted | 320,131 | 15,364 | 37,456 | 372,951 | |||||||||||||
Dividend equivalents | 1,895 | 1,133 | 5,145 | 8,173 | |||||||||||||
Redeemed | (84,322 | ) | (26,204 | ) | (34,124 | ) | (144,650 | ) | |||||||||
Outstanding at December 31, 2012 | 605,430 | 20,099 | 206,923 | 832,452 | |||||||||||||
Granted | 224,841 | 13,825 | 30,716 | 269,382 | |||||||||||||
Dividend equivalents | 1,262 | 624 | 2,815 | 4,701 | |||||||||||||
Redeemed | (199,679 | ) | (4,429 | ) | (113,007 | ) | (317,115 | ) | |||||||||
Outstanding at December 31, 2013 | 631,854 | 30,119 | 127,447 | 789,420 | |||||||||||||
Summary of Stock-Based Compensation Expense Recorded in Selling, General and Administrative Expenses | ' | ||||||||||||||||
Stock-based compensation expense recorded in selling, general and administrative expenses related to the above programs is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Incentive Stock Option Plan | $ | 15 | $ | 19 | $ | 21 | |||||||||||
Long-term retention | 4 | 5 | 7 | ||||||||||||||
Restricted stock unit | 16 | 14 | 6 | ||||||||||||||
35 | 38 | 34 | |||||||||||||||
Fair value adjustment for liability classified DSUs | 5 | 4 | (3 | ) | |||||||||||||
Incentive Stock Option Plan | $ | 40 | $ | 42 | $ | 31 | |||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Normal Course Issuer Bids | ' | ||||||||||||||||||||||||||||
The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: | |||||||||||||||||||||||||||||
Maximum | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
number | |||||||||||||||||||||||||||||
of shares | Shares | Cash | Shares | Cash | Shares | Cash | |||||||||||||||||||||||
purchased | amount | purchased | amount | purchased | amount | ||||||||||||||||||||||||
2010 Bid | 8,000,000 | 0 | $ | 0 | 0 | $ | 0 | 7,546,500 | $ | 296 | |||||||||||||||||||
2011 Bid | 12,000,000 | 0 | 0 | 467,630 | 21 | 3,200,800 | 111 | ||||||||||||||||||||||
2012 Bid | 12,000,000 | 11,572,598 | 814 | 427,402 | 19 | 0 | 0 | ||||||||||||||||||||||
2013 Bid | 12,000,000 | 2,509,723 | 199 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
14,082,321 | $ | 1,013 | 895,032 | $ | 40 | 10,747,300 | $ | 407 | |||||||||||||||||||||
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 6, 2014 were exercised or converted: | ||||||||||||||||||||||||||||
Common Shares | 221,187,872 | ||||||||||||||||||||||||||||
Stock options [note 18] | 5,455,690 | ||||||||||||||||||||||||||||
226,643,562 | |||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | ||||||||||||
The following is a continuity schedule of accumulated other comprehensive income: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accumulated net unrealized gain on translation of net investment in foreign operations | |||||||||||||
Balance, beginning of year | $ | 629 | $ | 547 | $ | 759 | |||||||
Net unrealized (loss) gain | (133 | ) | 86 | (171 | ) | ||||||||
Repurchase of shares under normal course issuer bids [note 19] | (42 | ) | (4 | ) | (41 | ) | |||||||
Balance, end of year | 454 | 629 | 547 | ||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges [b] | |||||||||||||
Balance, beginning of year | 34 | (23 | ) | 40 | |||||||||
Net unrealized (loss) gain | (39 | ) | 75 | (41 | ) | ||||||||
Reclassification of net gain to net income [a] | (15 | ) | (18 | ) | (22 | ) | |||||||
Balance, end of year | (20 | ) | 34 | (23 | ) | ||||||||
Accumulated net unrealized loss on other long-term liabilities [b] | |||||||||||||
Balance, beginning of year | (168 | ) | (107 | ) | (58 | ) | |||||||
Net unrealized gain (loss) | 44 | (72 | ) | (52 | ) | ||||||||
Reclassification of net loss to net income [a] | 7 | 11 | 3 | ||||||||||
Balance, end of year | (117 | ) | (168 | ) | (107 | ) | |||||||
Accumulated net unrealized (loss) gain on available-for-sale investments | |||||||||||||
Balance, beginning of year | 1 | 5 | 11 | ||||||||||
Net unrealized loss | (5 | ) | (4 | ) | (6 | ) | |||||||
Balance, end of year | (4 | ) | 1 | 5 | |||||||||
Total accumulated other comprehensive income [c] | $ | 313 | $ | 496 | $ | 422 | |||||||
Schedule of Net Income Amounts Reclassified from AOCI | ' | ||||||||||||
[a] | The effects on net income of amounts reclassified from AOCI, with presentation location, were as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flow hedges | |||||||||||||
Sales | $ | 3 | $ | 24 | $ | 16 | |||||||
Cost of sales | 18 | (1 | ) | 15 | |||||||||
Income tax | (6 | ) | (5 | ) | (9 | ) | |||||||
Net of tax | 15 | 18 | 22 | ||||||||||
Other long-term liabilities | |||||||||||||
Cost of sales | (8 | ) | (14 | ) | (5 | ) | |||||||
Income tax | 1 | 3 | 2 | ||||||||||
Net of tax | (7 | ) | (11 | ) | (3 | ) | |||||||
Total gains reclassified to net income | $ | 8 | $ | 7 | $ | 19 | |||||||
Summary of Income Tax Benefit (Obligation) to Component of Other Comprehensive Income | ' | ||||||||||||
[b] | The amount of income tax benefit (obligation) that has been allocated to each component of other comprehensive income is as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges | |||||||||||||
Balance, beginning of year | $ | (13 | ) | $ | 12 | $ | (15 | ) | |||||
Net unrealized loss (gain) | 11 | (30 | ) | 18 | |||||||||
Reclassification of net gain to net income | 6 | 5 | 9 | ||||||||||
Balance, end of year | 4 | (13 | ) | 12 | |||||||||
Accumulated net unrealized loss on other long-term liabilities | |||||||||||||
Balance, beginning of year | 36 | 24 | 1 | ||||||||||
Net unrealized (gain) loss | (21 | ) | 15 | 25 | |||||||||
Reclassification of net loss to net income | (1 | ) | (3 | ) | (2 | ) | |||||||
Balance, end of year | 14 | 36 | 24 | ||||||||||
Total income tax benefit | $ | 18 | $ | 23 | $ | 36 | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||||||||||||||||
Foreign exchange forward contracts representing commitments to buy and sell various foreign currencies | ' | ||||||||||||||||||||||||
At December 31, 2013, 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 | Euro | Weighted | Peso | Weighted | |||||||||||||||||||
dollar | average | amount | average | amount | average | ||||||||||||||||||||
amount | rate | rate | rate | ||||||||||||||||||||||
2014 | 206 | 1.05974 | 47 | 1.34745 | 3,509 | 0.07128 | |||||||||||||||||||
2014 | (656 | ) | 1.03832 | (12 | ) | 1.40577 | (2 | ) | 0.07678 | ||||||||||||||||
2015 | 54 | 1.04289 | 12 | 1.44078 | 2,174 | 0.0717 | |||||||||||||||||||
2015 | (332 | ) | 1.04592 | (1 | ) | 1.42922 | 0 | 0 | |||||||||||||||||
2016 | 17 | 1.03766 | 0 | 0 | 510 | 0.07166 | |||||||||||||||||||
2016 | (185 | ) | 1.06735 | 0 | 0 | 0 | 0 | ||||||||||||||||||
2017 | (85 | ) | 1.07747 | 0 | 0 | 0 | 0 | ||||||||||||||||||
2018 | (2 | ) | 1.0804 | 0 | 0 | 0 | 0 | ||||||||||||||||||
(983 | ) | 46 | 6,191 | ||||||||||||||||||||||
For euros | |||||||||||||||||||||||||
Buy (Sell) | U.S. | Weighted | GBP | Weighted | Czech | Weighted | |||||||||||||||||||
dollar | average | amount | average | koruna | average | ||||||||||||||||||||
amount | rate | rate | amount | rate | |||||||||||||||||||||
2014 | 37 | 0.74048 | 31 | 1.14482 | 2,142 | 0.03956 | |||||||||||||||||||
2014 | (123 | ) | 0.75973 | (42 | ) | 1.16896 | (8 | ) | 0.0389 | ||||||||||||||||
2015 | 6 | 0.74375 | 13 | 1.1917 | 1,303 | 0.03945 | |||||||||||||||||||
2015 | (80 | ) | 0.75549 | (15 | ) | 1.16338 | 0 | 0 | |||||||||||||||||
2016 | 2 | 0.73702 | 0 | 0 | 187 | 0.03904 | |||||||||||||||||||
2016 | (34 | ) | 0.7506 | (1 | ) | 1.17217 | 0 | 0 | |||||||||||||||||
2017 | (16 | ) | 0.73141 | 0 | 0 | 0 | 0 | ||||||||||||||||||
(208 | ) | (14 | ) | 3,624 | |||||||||||||||||||||
Schedule of Company's financial assets and liabilities | ' | ||||||||||||||||||||||||
The Company’s financial assets and liabilities consist of the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Held-for-trading | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,554 | $ | 1,522 | |||||||||||||||||||||
Investment in ABCP [note 8] | 92 | 90 | |||||||||||||||||||||||
$ | 1,646 | $ | 1,612 | ||||||||||||||||||||||
Held-to-maturity investments | |||||||||||||||||||||||||
Severance investments | $ | 5 | $ | 8 | |||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||
Equity investments | $ | 4 | $ | 9 | |||||||||||||||||||||
Loans and receivables | |||||||||||||||||||||||||
Accounts receivable | $ | 5,246 | $ | 4,774 | |||||||||||||||||||||
Long-term receivables included in other assets [note 12] | 111 | 95 | |||||||||||||||||||||||
$ | 5,357 | $ | 4,869 | ||||||||||||||||||||||
Other financial liabilities | |||||||||||||||||||||||||
Bank indebtedness | $ | 41 | $ | 71 | |||||||||||||||||||||
Long-term debt (including portion due within one year) | 332 | 361 | |||||||||||||||||||||||
Accounts payable | 4,781 | 4,450 | |||||||||||||||||||||||
$ | 5,154 | $ | 4,882 | ||||||||||||||||||||||
Derivatives designated as effective hedges, measured at fair value | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
Prepaid expenses | $ | 42 | $ | 37 | |||||||||||||||||||||
Other assets | 20 | 32 | |||||||||||||||||||||||
Other accrued liabilities | (37 | ) | (11 | ) | |||||||||||||||||||||
Other long-term liabilities | (28 | ) | (9 | ) | |||||||||||||||||||||
(3 | ) | 49 | |||||||||||||||||||||||
Natural gas contracts | |||||||||||||||||||||||||
Prepaid expenses | 0 | 2 | |||||||||||||||||||||||
Other accrued liabilities | (1 | ) | (3 | ) | |||||||||||||||||||||
Other long-term liabilities | 0 | (1 | ) | ||||||||||||||||||||||
(1 | ) | (2 | ) | ||||||||||||||||||||||
$ | (4 | ) | $ | 47 | |||||||||||||||||||||
Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements | ' | ||||||||||||||||||||||||
The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the Consolidated Balance Sheets and the unrecognized impacts of master netting arrangements: | |||||||||||||||||||||||||
Gross | Gross | Net | |||||||||||||||||||||||
amounts | amounts | Amounts | |||||||||||||||||||||||
presented | not offset | ||||||||||||||||||||||||
in Consolidated | in Consolidated | ||||||||||||||||||||||||
Balance Sheets | Balance Sheets | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Assets | $ | 62 | $ | 42 | $ | 20 | |||||||||||||||||||
Liabilities | $ | (65 | ) | $ | (42 | ) | $ | (23 | ) | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Assets | $ | 69 | $ | 20 | $ | 49 | |||||||||||||||||||
Liabilities | $ | (20 | ) | $ | (20 | ) | $ | 0 | |||||||||||||||||
Segmented_Information_Tables
Segmented Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Information with Respect to Segment | ' | ||||||||||||||||||||||||||||
The following tables show certain information with respect to segment disclosures: | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,734 | $ | 6,223 | $ | 167 | $ | 601 | |||||||||||||||||||||
United States | 8,409 | 7,938 | 349 | 1,135 | |||||||||||||||||||||||||
Mexico | 3,993 | 3,698 | 129 | 611 | |||||||||||||||||||||||||
Eliminations | (1,182 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 17,954 | 17,859 | $ | 598 | $ | 1,645 | $ | 656 | 645 | 2,347 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 11,813 | 11,544 | 225 | 1,463 | |||||||||||||||||||||||||
Great Britain | 975 | 968 | 24 | 70 | |||||||||||||||||||||||||
Eastern Europe | 2,317 | 2,013 | 112 | 636 | |||||||||||||||||||||||||
Eliminations | (387 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 14,718 | 14,525 | 355 | 375 | 655 | 361 | 2,169 | ||||||||||||||||||||||
Asia | 1,684 | 1,539 | 64 | 85 | 129 | 114 | 597 | ||||||||||||||||||||||
Rest of World | 889 | 889 | 20 | (76 | ) | 0 | 20 | 102 | |||||||||||||||||||||
Corporate and Other [i] | (410 | ) | 23 | 26 | 36 | 0 | 30 | 226 | |||||||||||||||||||||
Total reportable segments | 34,835 | 34,835 | 1,063 | 2,065 | 1,440 | 1,170 | 5,441 | ||||||||||||||||||||||
Other expense, net | (144 | ) | |||||||||||||||||||||||||||
Interest expense, net | (16 | ) | |||||||||||||||||||||||||||
$ | 34,835 | $ | 34,835 | $ | 1,063 | $ | 1,905 | $ | 1,440 | $ | 1,170 | 5,441 | |||||||||||||||||
Current assets | 9,923 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,626 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 17,990 | |||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | addition | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,343 | $ | 5,907 | $ | 158 | $ | 660 | |||||||||||||||||||||
United States | 7,518 | 7,053 | 294 | 973 | |||||||||||||||||||||||||
Mexico | 3,520 | 3,281 | 163 | 573 | |||||||||||||||||||||||||
Eliminations | (1,046 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 16,335 | 16,241 | $ | 432 | $ | 1,521 | $ | 701 | 615 | 2,206 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 10,089 | 9,927 | 246 | 1,490 | |||||||||||||||||||||||||
Great Britain | 961 | 952 | 15 | 58 | |||||||||||||||||||||||||
Eastern Europe | 1,847 | 1,684 | 117 | 584 | |||||||||||||||||||||||||
Eliminations | (188 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 12,709 | 12,563 | 283 | 165 | 611 | 378 | 2,132 | ||||||||||||||||||||||
Asia | 1,289 | 1,188 | 42 | 49 | 74 | 214 | 558 | ||||||||||||||||||||||
Rest of World | 822 | 822 | 17 | (77 | ) | 87 | 56 | 128 | |||||||||||||||||||||
Corporate and Other [i, ii] | (318 | ) | 23 | 27 | 0 | 0 | 11 | 249 | |||||||||||||||||||||
Total reportable segments | 30,837 | 30,837 | 801 | 1,658 | 1,473 | 1,274 | 5,273 | ||||||||||||||||||||||
Other income, net | 108 | ||||||||||||||||||||||||||||
Interest expense, net | (16 | ) | |||||||||||||||||||||||||||
$ | 30,837 | $ | 30,837 | $ | 801 | $ | 1,750 | $ | 1,473 | $ | 1,274 | 5,273 | |||||||||||||||||
Current assets | 9,135 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,701 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 17,109 | |||||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 5,951 | $ | 5,552 | $ | 115 | $ | 586 | |||||||||||||||||||||
United States | 7,025 | 6,514 | 281 | 804 | |||||||||||||||||||||||||
Mexico | 2,902 | 2,698 | 162 | 477 | |||||||||||||||||||||||||
Eliminations | (1,023 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
North America | 14,855 | 14,764 | $ | 358 | $ | 1,373 | $ | 644 | 558 | 1,867 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 10,124 | 9,963 | 284 | 1,111 | |||||||||||||||||||||||||
Great Britain | 913 | 909 | 7 | 53 | |||||||||||||||||||||||||
Eastern Europe | 1,708 | 1,557 | 132 | 438 | |||||||||||||||||||||||||
Eliminations | (189 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||
Europe | 12,556 | 12,429 | 259 | (22 | ) | 392 | 423 | 1,602 | |||||||||||||||||||||
Asia | 1,074 | 982 | 31 | 68 | 74 | 204 | 378 | ||||||||||||||||||||||
Rest of World | 525 | 524 | 7 | (12 | ) | 86 | 32 | 107 | |||||||||||||||||||||
Corporate and Other [i, ii] | (262 | ) | 49 | 31 | (40 | ) | 0 | 19 | 282 | ||||||||||||||||||||
Total reportable segments | 28,748 | 28,748 | 686 | 1,367 | 1,196 | 1,236 | 4,236 | ||||||||||||||||||||||
Other expense, net | (156 | ) | |||||||||||||||||||||||||||
Interest income, net | 6 | ||||||||||||||||||||||||||||
$ | 28,748 | $ | 28,748 | $ | 686 | $ | 1,217 | $ | 1,196 | $ | 1,236 | 4,236 | |||||||||||||||||
Current assets | 8,146 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,297 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 14,679 | |||||||||||||||||||||||||||
[i] | Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. | ||||||||||||||||||||||||||||
[ii] | For the year ended December 31, 2012, Corporate and Other includes $35 million equity loss related to the Company’s investment in E-Car. | ||||||||||||||||||||||||||||
For the year ended December 31, 2011, Corporate and Other includes $66 million equity loss related to the Company’s investment in E-Car. | |||||||||||||||||||||||||||||
Schedule of Aggregates External Revenues by Customer | ' | ||||||||||||||||||||||||||||
[b] | The following table aggregates external revenues by customer as follows: | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
General Motors | $ | 6,394 | $ | 5,704 | $ | 6,202 | |||||||||||||||||||||||
Fiat / Chrysler Group | 5,137 | 4,637 | 3,864 | ||||||||||||||||||||||||||
BMW | 4,882 | 4,100 | 4,191 | ||||||||||||||||||||||||||
Ford Motor Company | 4,450 | 3,848 | 3,549 | ||||||||||||||||||||||||||
Volkswagen | 4,047 | 3,835 | 3,187 | ||||||||||||||||||||||||||
Daimler AG | 3,949 | 3,367 | 2,793 | ||||||||||||||||||||||||||
Other | 5,976 | 5,346 | 4,962 | ||||||||||||||||||||||||||
$ | 34,835 | $ | 30,837 | $ | 28,748 | ||||||||||||||||||||||||
Summary of External Revenues by Automotive Products and Services | ' | ||||||||||||||||||||||||||||
[c] | The following table summarizes external revenues generated by automotive products and services: | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Exterior and interior systems | $ | 12,308 | $ | 11,673 | $ | 11,020 | |||||||||||||||||||||||
Body systems and chassis systems | 7,874 | 7,123 | 6,056 | ||||||||||||||||||||||||||
Powertrain systems | 4,634 | 3,825 | 3,667 | ||||||||||||||||||||||||||
Complete vehicle assembly | 3,062 | 2,561 | 2,690 | ||||||||||||||||||||||||||
Tooling, engineering and other | 2,823 | 2,317 | 2,065 | ||||||||||||||||||||||||||
Vision and electronic systems | 2,193 | 2,132 | 2,066 | ||||||||||||||||||||||||||
Closure systems | 1,941 | 1,206 | 1,184 | ||||||||||||||||||||||||||
$ | 34,835 | $ | 30,837 | $ | 28,748 | ||||||||||||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Center | |
Operations | |
Country | |
Employee | |
Significant Accounting Policies [Line Items] | ' |
Number of manufacturing operations | 316 |
Number of product development, engineering and sales centres | 84 |
Number of Countries in which Entity Operates | 29 |
Number of employees | 125,000 |
Short-term investments maturity period | 'Less than three months |
Estimated useful lives of definite-lived intangible assets | '5 years |
Changes in assumptions and experience gains and losses | 'Greater than 10% |
Period of benefit obligation in current liabilities | 'Next twelve months |
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] | 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_Income_Net_Other
Other Expense (Income), Net - Other Expense (Income), Net (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
North America [Member] | North America [Member] | North America [Member] | North America [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Rest of World [Member] | Rest of World [Member] | Rest of World [Member] | ||||
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | ' | ' | ' | $23 | $23 | $2 | $7 | ' | ' | ' | $23 | ' | ' | $0 | $23 | $14 | $10 | $0 | $0 |
Re-measurement gain | ' | ' | ' | ' | 0 | -35 | 0 | 0 | -153 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement | ' | ' | ' | ' | 0 | 0 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance proceeds | ' | ' | ' | ' | 0 | 0 | -15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other expense (income), net | 144 | -108 | 156 | ' | 23 | -33 | 3 | 0 | -153 | -1 | ' | ' | ' | 89 | 78 | 154 | 32 | 0 | 0 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | 89 | 55 | 0 | ' | ' | ' |
Loss (gain) on disposal of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 113 | 0 | 0 | 129 | ' | ' | ' |
Customer bankruptcy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 11 | ' | ' | ' |
Impairment of goodwill | 22 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 22 | 0 | 0 |
Write down of real estate | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of investment | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ($10) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Expense_Income_Net_Other1
Other Expense (Income), Net - Other Expense (Income), Net (Parenthetical) (Detail) | 12 Months Ended | 24 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 26, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Oct. 26, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | STT Technologies Inc. [Member] | E-Car [Member] | North America [Member] | North America [Member] | North America [Member] | North America [Member] | North America [Member] | North America [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Rest of World [Member] | Rest of World [Member] | Rest of World [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | STT Technologies Inc. [Member] | STT Technologies Inc. [Member] | USD ($) | USD ($) | USD ($) | CAD | E-Car [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived asset impairment charges | ' | ' | ' | ' | ' | $23 | $23 | $2 | $7 | ' | ' | ' | ' | ' | ' | ' | $23 | ' | ' | $0 | $23 | $14 | $10 | $0 | $0 |
Long-lived asset impairment charges, after tax | ' | ' | ' | ' | ' | ' | 11 | 1 | 7 | ' | ' | ' | ' | ' | ' | ' | 22 | ' | ' | ' | ' | 13 | 10 | ' | ' |
Company acquired | ' | ' | ' | 50.00% | 27.00% | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | 27.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash acquired consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | 205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognition of non-cash | ' | ' | ' | ' | ' | ' | 0 | 35 | 0 | ' | ' | 0 | 153 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognition of non-cash after tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance proceeds | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | 89 | 55 | 0 | ' | ' | ' |
Restructuring charges, after tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 53 | ' | ' | ' | ' |
Loss (gain) on disposal of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 113 | 0 | 0 | 129 | ' | ' | ' |
Company agreed to fund the buyer against the losses on disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67 | ' | ' | ' | ' | ' | ' |
Charge related to the insolvency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 11 | ' | ' | ' |
Impairment of goodwill | 22 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 22 | 0 | 0 |
Impairment of goodwill, after tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22 | ' | ' |
Cash acquired consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of non-controlling interest in an equity accounted investment | ' | ' | ' | ' | 73.00% | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | 73.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges for assets | 55 | 25 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 151 | 147 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net income attributable to Magna International Inc. | $1,561 | $1,433 | $1,018 |
Average number of Common Shares outstanding during the year | 227.9 | 232.4 | 239.3 |
Basic earnings per Common Share | $6.85 | $6.17 | $4.26 |
Stock options and restricted stock | 2.9 | 2.8 | 3.5 |
Diluted | 230.8 | 235.2 | 242.8 |
Diluted earnings per Common Share | $6.76 | $6.09 | $4.20 |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Earnings Per Share (Parenthetical) (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Excluded Common Shares issuable under Company's Incentive Stock Option Plan | 0.1 | 2.3 | 2.1 |
Details_of_Consolidated_Statem2
Details of Consolidated Statements of Cash Flows - Components of Cash and Cash Equivalents (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Cash And Cash Equivalents [Abstract] | ' | ' | ' | ' |
Bank term deposits, bankers' acceptances and government paper | $1,331 | $1,220 | ' | ' |
Cash | 223 | 302 | ' | ' |
Cash and cash equivalents | $1,554 | $1,522 | $1,325 | $1,881 |
Details_of_Consolidated_Statem3
Details of Consolidated Statements of Cash Flows - Details of Items Not Involving Current Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Cash Flows [Abstract] | ' | ' | ' |
Depreciation and amortization | $1,063 | $801 | $686 |
Other non-cash charges | 189 | 154 | 110 |
Amortization of other assets included in cost of goods sold | 138 | 113 | 80 |
Non-cash portion of Other expense (income), net | 0 | -188 | 147 |
Impairment charges | 55 | 25 | 0 |
Deferred income taxes | -100 | -46 | -76 |
Equity income | -196 | -151 | -121 |
Items not involving current cash flows | $1,149 | $708 | $826 |
Details_of_Consolidated_Statem4
Details of Consolidated Statements of Cash Flows - Changes in Non-Cash Operating Assets and Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Cash Flows [Abstract] | ' | ' | ' |
Accounts receivable | ($584) | ($46) | ($909) |
Inventories | -141 | -315 | -282 |
Prepaid expenses and other | -56 | 36 | -49 |
Accounts payable | 329 | 249 | 475 |
Accrued salaries and wages | 87 | 37 | 80 |
Other accrued liabilities | 298 | 97 | 87 |
Income taxes payable | -56 | 16 | -29 |
Deferred revenue | -4 | -2 | -4 |
Changes in non-cash operating assets and liabilities | ($127) | $72 | ($631) |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-11 | Aug. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | Oct. 26, 2012 | |
E-Car [Member] | Thyssen Krupp Automotive Systems [Member] | Textile Competence Centre Kft [Member] | STT Technologies Inc. [Member] | |||||
Entity | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Interest acquired | ' | ' | ' | ' | 27.00% | ' | 49.00% | 50.00% |
Cash paid | ' | ' | $120,000,000 | ' | ' | ' | $9,000,000 | ' |
Increase in fixed assets | 5,000,000 | ' | 95,000,000 | ' | ' | ' | ' | ' |
Increase in goodwill | 3,000,000 | ' | 29,000,000 | ' | ' | ' | ' | ' |
Increase in other assets | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Other long-term liabilities | 2,000,000 | ' | 28,000,000 | ' | ' | ' | ' | ' |
Non-controlling interests | 1,000,000 | ' | 7,000,000 | ' | ' | ' | ' | ' |
Net cash outflow | 9,000,000 | 525,000,000 | 120,000,000 | ' | 56,000,000 | ' | ' | ' |
Cash acquired | ' | ' | ' | ' | 19,000,000 | ' | ' | ' |
Purchase intangibles | ' | ' | ' | ' | 210,000,000 | ' | ' | ' |
Number of manufacturing facilities in Brazil | ' | ' | ' | ' | ' | 4 | ' | ' |
Percentage of interest in Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd. | ' | ' | ' | 51.00% | ' | ' | ' | ' |
Total consideration for the acquisitions | ' | ' | 157,000,000 | ' | ' | ' | ' | ' |
Consideration assumed as debt | ' | ' | 37,000,000 | ' | ' | ' | ' | ' |
Change in non-cash working capital | ' | ' | 35,000,000 | ' | ' | ' | ' | ' |
Deferred tax assets | ' | ' | 6,000,000 | ' | ' | ' | ' | ' |
Company's pro forma consolidated sales | 0 | 31,500,000,000 | ' | ' | ' | ' | ' | ' |
Losses on acquisition | $0 | $1,400,000,000 | ' | ' | ' | ' | ' | ' |
Business_Acquisitions_Net_Effe
Business Acquisitions - Net Effect of Acquisitions on Consolidation Balance and Adjustments to Preliminary Purchase Price Allocations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | 2012 Preliminary Allocation [Member] | 2013 Adjustments [Member] | Final Allocation [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Non-cash working capital | ' | $35 | ($129) | ($47) | ($176) |
Investments | ' | ' | 3 | -3 | 0 |
Fixed assets | 5 | 95 | 501 | -36 | 465 |
Goodwill | ' | ' | 289 | -2 | 287 |
Other assets | 2 | ' | 94 | 99 | 193 |
Deferred tax assets | ' | ' | 0 | 5 | 5 |
Purchase intangibles | ' | ' | 215 | 0 | 215 |
Long-term employee benefit liabilities | ' | ' | -49 | 1 | -48 |
Long-term debt | ' | ' | -25 | -2 | -27 |
Other long-term liabilities | -2 | -28 | -35 | 0 | -35 |
Deferred tax liabilities | ' | ' | -68 | -15 | -83 |
Non-controlling interests | -1 | -7 | -11 | 0 | -11 |
Fair value of net assets (excluding cash) | ' | ' | $785 | $0 | $785 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and supplies | $947 | $911 |
Work-in-process | 273 | 260 |
Finished goods | 339 | 283 |
Tooling and engineering | 1,078 | 1,058 |
Inventory, net, total | $2,637 | $2,512 |
Investments_Additional_Informa
Investments - Additional Information (Detail) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 16, 2009 |
USD ($) | USD ($) | USD ($) | ABCP [Member] | ABCP [Member] | ABCP [Member] | ABCP [Member] | ABCP [Member] | |
USD ($) | USD ($) | CAD | CAD | CAD | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in ABCP | ' | ' | ' | ' | ' | 107 | 107 | ' |
Restructuring notes in a Master Trust MAV2-A Notes issued under new restructuring plan | ' | ' | ' | ' | ' | ' | ' | 102 |
Restructuring notes in a MAV2-B and C Notes issued under new restructuring plan | ' | ' | ' | ' | ' | ' | ' | 9 |
Tracking notes deemed ineligible for inclusion in the Master Trust | ' | ' | ' | ' | ' | ' | ' | 23 |
Increase in carrying value of equity method investment | ' | ' | ' | 8 | 15 | ' | ' | ' |
Sales to equity method investees | $144 | $171 | $76 | ' | ' | ' | ' | ' |
Investments_Companys_Investmen
Investments - Company's Investment in ABCP (Detail) (ABCP [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ABCP [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Balance, beginning of year | $90 | $82 | $84 |
Valuation adjustment | 8 | 15 | 0 |
Cash receipts | 0 | -9 | 0 |
Foreign exchange and other | -6 | 2 | -2 |
Balance, end of year | $92 | $90 | $82 |
Investments_Companys_Combined_
Investments - Company's Combined Proportionate Share of Major Components of Financial Statements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity Method Investments And Joint Ventures [Abstract] | ' | ' | ' |
Current assets | $373 | $344 | ' |
Long-term assets | 82 | 74 | ' |
Current liabilities | 167 | 150 | ' |
Long-term liabilities | 76 | 60 | ' |
Sales | 1,013 | 967 | 881 |
Cost of goods sold, expenses and income taxes | 839 | 814 | 805 |
Net income | $174 | $153 | $76 |
Fixed_Assets_Components_of_Fix
Fixed Assets - Components of Fixed Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property plant and equipment, gross | $13,338 | $12,798 | ' |
Property plant and equipment, net | 5,441 | 5,273 | 4,236 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property plant and equipment, gross | 236 | 238 | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property plant and equipment, gross | 1,592 | 1,513 | ' |
Accumulated depreciation | -579 | -541 | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property plant and equipment, gross | 11,510 | 11,047 | ' |
Accumulated depreciation | ($7,318) | ($6,984) | ' |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Construction in progress expenditures | $762 | $939 |
Goodwill_Goodwill_by_Segment_D
Goodwill - Goodwill by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning balance | $1,473 | $1,196 | ' |
Acquisitions | 1 | 289 | ' |
Impairments | -22 | ' | ' |
Reallocation between reporting segments | 0 | ' | ' |
Foreign exchange and other | -12 | -12 | ' |
Goodwill, Ending balance | 1,440 | 1,473 | ' |
North America [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning balance | 701 | 644 | ' |
Acquisitions | -24 | 75 | ' |
Impairments | 0 | ' | ' |
Reallocation between reporting segments | 0 | ' | ' |
Foreign exchange and other | -21 | -18 | ' |
Goodwill, Ending balance | 656 | 701 | ' |
Europe [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning balance | 611 | 392 | ' |
Acquisitions | 22 | 206 | ' |
Impairments | 0 | ' | ' |
Reallocation between reporting segments | 0 | ' | ' |
Foreign exchange and other | 22 | 13 | ' |
Goodwill, Ending balance | 655 | 611 | ' |
Asia [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning balance | 74 | 74 | ' |
Acquisitions | 3 | 0 | ' |
Impairments | 0 | ' | ' |
Reallocation between reporting segments | 51 | ' | ' |
Foreign exchange and other | 1 | 0 | ' |
Goodwill, Ending balance | 129 | 74 | ' |
Rest of World [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning balance | 87 | 86 | ' |
Acquisitions | 0 | 8 | ' |
Impairments | -22 | 0 | 0 |
Reallocation between reporting segments | -51 | ' | ' |
Foreign exchange and other | -14 | -7 | ' |
Goodwill, Ending balance | $0 | $87 | $86 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Canadian statutory income tax rate | 26.50% | 26.50% | 28.30% |
Manufacturing and processing profits deduction | -0.40% | -0.70% | -0.80% |
Foreign rate differentials | -1.50% | -1.50% | -2.00% |
Losses not benefited | 5.30% | 5.80% | 11.40% |
Utilization of losses previously not benefited | -1.00% | -0.30% | -10.20% |
Earnings of equity accounted investees | -1.10% | -1.20% | -1.60% |
Withholding tax | 1.40% | 0.00% | 0.00% |
Valuation allowance on deferred tax assets | -1.10% | -5.00% | -6.50% |
Mexican flat tax | -1.90% | 0.00% | 0.00% |
Research and development tax credits | -4.30% | -2.30% | -1.60% |
Reserve for uncertain tax positions | -2.30% | -1.00% | -0.40% |
Re-measurement gains | 0.00% | -1.10% | 0.00% |
Other | -0.70% | -0.70% | 0.00% |
Effective income tax rate | 18.90% | 18.50% | 16.60% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Valuation allowance released | $89,000,000 | $78,000,000 | $21,000,000 | $89,000,000 | $78,000,000 | ' |
Income taxes paid, net | ' | ' | 507,000,000 | 347,000,000 | 304,000,000 | ' |
Income tax loss carryforwards | ' | ' | 2,000,000,000 | ' | ' | ' |
Losses on acquisition | ' | ' | 34,000,000 | ' | ' | ' |
Total losses | ' | ' | 1,070,000,000 | ' | ' | ' |
Expiry date of losses | ' | ' | 'Between 2014 and 2033 | ' | ' | ' |
Gross unrecognized tax benefits | 279,000,000 | 252,000,000 | 238,000,000 | 279,000,000 | 252,000,000 | 257,000,000 |
Recognized tax benefits | 240,000,000 | 222,000,000 | 219,000,000 | 240,000,000 | 222,000,000 | ' |
Interest and penalties on the unrecognized tax benefits | 49,000,000 | 42,000,000 | 42,000,000 | 49,000,000 | 42,000,000 | ' |
Recoveries/(expenses) related to changes in reserves for interest and penalties | -7,000,000 | 3,000,000 | 7,000,000 | -7,000,000 | 3,000,000 | ' |
Decrease in gross unrecognized tax benefits | ' | ' | 66,000,000 | ' | ' | ' |
Decrease in recognized tax benefits | ' | ' | $62,000,000 | ' | ' | ' |
Income_Taxes_Summary_of_Income1
Income Taxes - Summary of Income Tax Rate (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ' | ' |
Tax benefit as a result of Mexican flat tax | $36 | ' |
Tax credits covering years | ' | '2008 and 2009 |
Internal Revenue Service [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Tax benefit with a settlement of claims a result of research and development tax credits | ' | 36 |
Income_Taxes_Details_of_Income
Income Taxes - Details of Income before Income Taxes by Jurisdiction (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Canadian | $653 | $944 | $710 |
Foreign | 1,252 | 806 | 507 |
Income before income taxes, Total | $1,905 | $1,750 | $1,217 |
Income_Taxes_Details_of_Income1
Income Taxes - Details of Income Tax Provision (Recovery) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Canadian | $159 | $170 | $115 |
Foreign | 301 | 200 | 163 |
Current income tax, Total | 460 | 370 | 278 |
Canadian | -29 | -6 | 7 |
Foreign | -71 | -40 | -83 |
Deferred income tax, Total | -100 | -46 | -76 |
Income tax provision, Total | $360 | $324 | $202 |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Income Taxes Provided on Temporary Differences (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Tax depreciation greater (less) than book depreciation | ' | ' | ($23) | $13 | $51 |
Book amortization less than (in excess of) tax amortization | ' | ' | -57 | 16 | 0 |
Liabilities currently not deductible for tax | ' | ' | -48 | -29 | -28 |
Net tax losses (benefited) utilized | ' | ' | 50 | -11 | -37 |
Change in valuation allowance on deferred tax assets | -89 | -78 | -21 | -89 | -78 |
Net tax credits utilized | ' | ' | 2 | 53 | 24 |
Other | ' | ' | -3 | 1 | -8 |
Deferred income tax, Total | ' | ' | ($100) | ($46) | ($76) |
Income_Taxes_Summary_of_Deferr1
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Tax benefit of loss carryforwards | $610 | $628 |
Liabilities currently not deductible for tax | 337 | 263 |
Tax credit carryforwards | 34 | 35 |
Unrealized loss on cash flow hedges and retirement liabilities | 39 | 48 |
Other | 11 | 0 |
Deferred tax assets, Gross, Total | 1,031 | 974 |
Valuation allowance against tax benefit of loss carryforwards | -528 | -504 |
Other valuation allowance | -111 | -45 |
Deferred tax assets, Net, Total | 392 | 425 |
Tax depreciation in excess of book depreciation | 170 | 199 |
Other assets book value in excess of tax value | 15 | 77 |
Unrealized gain on cash flow hedges and retirement liabilities | 21 | 19 |
Other | 0 | 30 |
Deferred tax liabilities, Total | 206 | 325 |
Net deferred tax assets | $186 | $100 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets Presented on Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred tax assets | $275 | $170 |
Current deferred tax liabilities | -9 | -19 |
Long-term deferred tax assets | 120 | 90 |
Long-term deferred tax liabilities | -200 | -141 |
Net deferred tax assets | $186 | $100 |
Income_Taxes_Summary_of_Change
Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance, beginning of year | $279 | $252 | $257 |
Additions based on tax positions related to current year | 35 | 68 | 14 |
(Reductions)/additions based on tax positions of prior years | -44 | -31 | 13 |
Settlements | -24 | -10 | -12 |
Statute expirations | -7 | -5 | -16 |
Foreign currency translation | -1 | 5 | -4 |
Balance, ending of year | $238 | $279 | $252 |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $291 | $297 |
Long-term receivables | 111 | 95 |
Patents and licenses, net | 44 | 40 |
Unrealized gain on cash flow hedges | 20 | 32 |
E-Car intangible | 0 | 158 |
Customer relationship intangibles | 143 | 93 |
Pension overfunded status | 26 | 0 |
Other, net | 40 | 38 |
Total other assets | $675 | $753 |
Employee_Equity_and_Profit_Par1
Employee Equity and Profit Participation Program - Additional Information (Detail) (Trust for Benefit of Employees [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Trust for Benefit of Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Amount borrowed from company to purchase common shares maximum | $39 | $18 | $35 |
Amount included in accounts receivable | $39 | $17 | ' |
Warranty_Schedule_of_Companys_
Warranty - Schedule of Company's Warranty Accruals (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Guarantees [Abstract] | ' | ' | ' |
Balance, beginning of year | $94 | $76 | $68 |
Expense, net | 40 | 43 | 46 |
Settlements | -46 | -46 | -38 |
Acquisitions [note 6] | 1 | 17 | 0 |
Foreign exchange and other | 2 | 4 | 0 |
Balance, end of year | $91 | $94 | $76 |
Debt_and_Commitments_Schedule_
Debt and Commitments - Schedule of Company's Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $332 | $361 |
Less due within one year | 230 | 249 |
Total long term non current debt | 102 | 112 |
Bank Term Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 239 | 268 |
Government Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 26 | 15 |
Other Long Term Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $67 | $78 |
Debt_and_Commitments_Schedule_1
Debt and Commitments - Schedule of Company's Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Bank Term Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted average interest rate of bank term debt | 6.30% | 8.00% |
Government Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted average interest rate of bank term debt | 5.90% | 5.40% |
Debt_and_Commitments_Schedule_2
Debt and Commitments - Schedule of Future Principal Repayments on Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $230 | ' |
2015 | 39 | ' |
2016 | 22 | ' |
2017 | 15 | ' |
2018 | 18 | ' |
Thereafter | 8 | ' |
Total long-term debt | $332 | $361 |
Debt_and_Commitments_Additiona
Debt and Commitments - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jun. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Borrowings under revolving credit facility | $2,250,000,000 | ' | ' | ' |
Period of revolving credit facility | '5 years | ' | ' | ' |
Revolving credit facility maturity date | 20-Jun-18 | ' | ' | ' |
Interest paid in cash | ' | 32,000,000 | 32,000,000 | 19,000,000 |
Mr. Stronach and Affiliated Entities [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Business development, Consulting, other business services agreement expenses | ' | 52,000,000 | 47,000,000 | 38,000,000 |
Related Party MID Member [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Lease expense | ' | ' | ' | 166,000,000 |
Asian Tranche [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Line of credit facility fully transferable amount | 200,000,000 | ' | ' | ' |
Mexican Tranche [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Line of credit facility fully transferable amount | $50,000,000 | ' | ' | ' |
Debt_and_Commitments_Interest_
Debt and Commitments - Interest (Income) Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest expense | ' | ' | ' |
Current | $26 | $27 | $16 |
Long-term | 8 | 7 | 3 |
Interest Expense, Total | 34 | 34 | 19 |
Interest income | -18 | -18 | -25 |
Interest expense (income), net | $16 | $16 | ($6) |
Debt_and_Commitments_Companys_
Debt and Commitments - Company's Commitments under Operating Leases Requiring Annual Rental Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $343 |
2015 | 303 |
2016 | 273 |
2017 | 240 |
2018 | 157 |
Thereafter | 402 |
Total | $1,718 |
LongTerm_Employee_Benefit_Liab2
Long-Term Employee Benefit Liabilities - Long-Term Employee Benefits Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Other Liabilities Disclosure [Abstract] | ' | ' | ' |
Defined benefit pension plans and other | $149 | $212 | $128 |
Termination and long service arrangements | 343 | 304 | 244 |
Retirement medical benefits plans | 34 | 39 | 37 |
Other long-term employee benefits | 6 | 5 | 10 |
Long-term employee benefit obligations | $532 | $560 | $419 |
LongTerm_Employee_Benefit_Liab3
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.70% | 4.10% | 4.70% |
Rate of compensation increase | 2.90% | 2.80% | 2.80% |
Discount rate | 4.10% | 4.70% | 5.20% |
Rate of compensation increase | 2.80% | 2.80% | 2.70% |
Expected return on plan assets | 6.50% | 7.00% | 7.10% |
LongTerm_Employee_Benefit_Liab4
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Non-current asset | ($26) | $0 | ' |
Non-current liability | 532 | 560 | 419 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Beginning of year | 502 | 388 | 337 |
Current service cost | 13 | 11 | 10 |
Interest cost | 19 | 18 | 19 |
Actuarial (gains) losses and changes in actuarial assumptions | -56 | 50 | 42 |
Benefits paid | -18 | -18 | -13 |
Special termination benefit | 0 | 0 | 1 |
Acquisition | 0 | 47 | 0 |
Divestitures | 0 | 0 | -3 |
Foreign exchange | -6 | 6 | -5 |
End of year | 454 | 502 | 388 |
Beginning of year | 288 | 259 | 253 |
Return on plan assets | 38 | 26 | 0 |
Employer contributions | 30 | 19 | 24 |
Benefits paid | -18 | -19 | -14 |
Foreign exchange | -10 | 3 | -4 |
End of year | 328 | 288 | 259 |
Ending funded status | 126 | 214 | 129 |
Non-current asset | -26 | 0 | -1 |
Current liability | 3 | 2 | 2 |
Non-current liability | 149 | 212 | 128 |
Net amount | 126 | 214 | 129 |
Unrecognized actuarial losses | -61 | -141 | -101 |
Current service cost | 13 | 11 | 10 |
Interest cost | 19 | 18 | 19 |
Return on plan assets | -19 | -19 | -19 |
Actuarial losses | 5 | 3 | 1 |
Special termination benefit | 0 | 0 | 1 |
Net periodic benefit cost | $18 | $13 | $12 |
LongTerm_Employee_Benefit_Liab5
Long-Term Employee Benefit Liabilities - Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Projected Termination and Long Service Benefit Obligations and Net Periodic Benefit Cost (Detail) (Termination and Long Service Arrangements [Member]) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Termination and Long Service Arrangements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.90% | 4.20% | 5.40% |
Rate of compensation increase | 3.90% | 3.90% | 4.00% |
LongTerm_Employee_Benefit_Liab6
Long-Term Employee Benefit Liabilities - Company's Termination and Long Service Arrangements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Long-term employee benefit liabilities | $532 | $560 | $419 |
Termination and Long Service Arrangements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Beginning of year | 314 | 252 | 235 |
Current service cost | 24 | 16 | 15 |
Interest cost | 13 | 13 | 10 |
Actuarial losses and changes in actuarial assumptions | 12 | 41 | 14 |
Benefits paid | -21 | -13 | -12 |
Acquisition | 0 | 2 | 0 |
Curtailment | 0 | -4 | 0 |
Foreign exchange | 12 | 7 | -10 |
Ending funded status | 354 | 314 | 252 |
Current liability | 11 | 10 | 8 |
Long-term employee benefit liabilities | 343 | 304 | 244 |
Net amount | 354 | 314 | 252 |
Unrecognized actuarial losses | -82 | -74 | -45 |
Current service cost | 24 | 16 | 15 |
Interest cost | 13 | 13 | 10 |
Actuarial losses | 4 | 12 | 6 |
Net periodic benefit cost | $41 | $41 | $31 |
LongTerm_Employee_Benefit_Liab7
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retirement Medical Benefits Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Retirement medical benefit obligations | 4.50% | 3.60% | 4.20% |
Net periodic benefit cost | 3.60% | 4.20% | 5.40% |
Health care cost inflation | 7.70% | 8.00% | 9.20% |
LongTerm_Employee_Benefit_Liab8
Long-Term Employee Benefit Liabilities - Company's Retirement Medical Benefits Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Non-current liability | $532 | $560 | $419 |
Retirement Medical Benefits Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Beginning of year | 41 | 39 | 36 |
Interest cost | 2 | 2 | 2 |
Actuarial (gains) losses and changes in actuarial assumptions | -4 | 3 | 4 |
Benefits paid | -2 | -3 | -3 |
Foreign exchange | -1 | 0 | 0 |
Ending funded status | 36 | 41 | 39 |
Current liability | 2 | 2 | 2 |
Non-current liability | 34 | 39 | 37 |
Net amount | 36 | 41 | 39 |
Unrecognized past service costs | 2 | 3 | 3 |
Unrecognized actuarial gains | 10 | 8 | 12 |
Total accumulated other comprehensive income | 12 | 11 | 15 |
Interest cost | 2 | 2 | 2 |
Actuarial gains | -2 | -1 | -1 |
Past service cost amortization | -1 | 0 | -1 |
Net periodic benefit cost | ($1) | $1 | $0 |
LongTerm_Employee_Benefit_Liab9
Long-Term Employee Benefit Liabilities - Future Benefit Payments (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contributions - 2014 | $46 |
2014 | 30 |
2015 | 29 |
2016 | 29 |
2017 | 32 |
2018 | 34 |
Thereafter | 220 |
Total | 374 |
Pension Plan, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contributions - 2014 | 33 |
2014 | 17 |
2015 | 17 |
2016 | 17 |
2017 | 18 |
2018 | 18 |
Thereafter | 104 |
Total | 191 |
Termination and Long Service Arrangements [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contributions - 2014 | 11 |
2014 | 11 |
2015 | 10 |
2016 | 10 |
2017 | 11 |
2018 | 14 |
Thereafter | 104 |
Total | 160 |
Retirement Medical Benefits Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contributions - 2014 | 2 |
2014 | 2 |
2015 | 2 |
2016 | 2 |
2017 | 3 |
2018 | 2 |
Thereafter | 12 |
Total | $23 |
Recovered_Sheet1
Long-Term Employee Benefit Liabilities - Asset Allocation of Defined Benefit Pension Plans (Detail) (Pension Plan, Defined Benefit [Member]) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
Subsequent [Member] | Subsequent [Member] | |||
Minimum [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Equity securities | 58.00% | 57.00% | 55.00% | 75.00% |
Fixed income securities | 41.00% | 42.00% | 25.00% | 45.00% |
Cash and cash equivalents | 1.00% | 1.00% | 0.00% | 15.00% |
Total | 100.00% | 100.00% | ' | 100.00% |
Other_LongTerm_Liabilities_Sum
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Long-term portion of income taxes payable | $133 | $94 |
Asset retirement obligation | 40 | 39 |
Long-term portion of fair value of hedges | 28 | 10 |
Deferred revenue | 7 | 11 |
Total | $208 | $154 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Activity [Line Items] | ' | ' |
Holding period of restricted stock available to executives | '4 years | ' |
Share based compensation arrangement long-term retention program restricted stock available to executive releasing period | '10 years | ' |
Number of days considered for weighted average trading price | '20 days | ' |
Percentage of annual retainers | 60.00% | ' |
Percentage of additional annual retainers | 100.00% | ' |
Stock Option Plan 2009 [Member] | ' | ' |
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Activity [Line Items] | ' | ' |
Maximum number of shares, issued under the option plan | 16,000,000 | ' |
Number of shares available to be granted | 7,516,831 | 8,457,666 |
Period of granted option | '7 years | ' |
Option vested under stock option plan to employees and consultants | 'One-third on each of the first three anniversaries of the date of grant. | ' |
Stock Option Plan 1987 [Member] | ' | ' |
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Activity [Line Items] | ' | ' |
Period of granted option | '7 years | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Options Outstanding (Detail) (CAD) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of options outstanding, beginning balance | 6,623,242 | 6,867,367 | 11,142,450 |
Number of options, Exercised | -2,805,969 | -1,525,159 | -2,737,253 |
Number of options, Cancelled | -119,165 | -107,966 | -1,537,830 |
Number of options, Vested | 0 | 0 | 0 |
Number of options outstanding, ending balance | 4,758,108 | 6,623,242 | 6,867,367 |
Number of options, Granted | 1,060,000 | 1,389,000 | ' |
Weighted average exercise price outstanding, Beginning balance | 35.39 | 31.54 | 34.22 |
Weighted average exercise price, Exercised | 31.99 | 28.46 | 33.28 |
Weighted average exercise price, Cancelled | 51.46 | 53.14 | 48.86 |
Weighted average exercise price, Vested | 0 | 0 | 0 |
Weighted average exercise price outstanding, Ending Balance | 41.82 | 35.39 | 31.54 |
Weighted average exercise price, Granted | 57.02 | 48.22 | ' |
Number of options exercisable outstanding, beginning balance | 3,227,574 | 2,066,700 | 3,362,116 |
Number of options exercisable, Cancelled | -31,667 | -58,967 | -1,426,164 |
Number of options exercisable, Vested | 2,457,171 | 2,745,000 | 2,868,001 |
Number of options exercisable outstanding, Ending Balance | 2,847,109 | 3,227,574 | 2,066,700 |
Number of options exercisable, Exercised | -2,805,969 | ' | ' |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Options Outstanding (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total intrinsic value of options exercised | $56 | $6 | $19 |
Stock Option Holder [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Exercised number of shares, under stock option plan | 849,999 | 1,100,001 | 1,283,334 |
Cash payments made on cashless exercise of stock options | $23 | $19 | $30 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Characteristics of Options Outstanding (Detail) | 12 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CAD | Range One [Member] | Range Two [Member] | Range Three [Member] | Range Four [Member] | Range Five [Member] | Range Six [Member] | Range Six [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | |||
USD ($) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price range lower limit | ' | ' | $15 | $25 | $35 | $45 | $50 | ' | ' |
Exercise price range upper limit | ' | ' | $20 | $30 | $40 | $50 | $55 | ' | $55 |
Number of options | 4,758,108 | 4,758,108 | 487,008 | 1,398,853 | 20,000 | 1,156,324 | 665,923 | 1,030,000 | ' |
Remaining contractual life [years] | '4 years 3 months 22 days | '4 years 3 months 22 days | '2 years 2 months 12 days | '3 years 2 months 12 days | '3 years 4 months 24 days | '4 years 3 months 18 days | '4 years | '6 years 2 months 12 days | ' |
Number of options exercisable | 2,847,109 | 2,847,109 | 487,008 | 1,398,853 | 20,000 | 275,325 | 665,923 | 0 | ' |
Aggregate intrinsic value | $198 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options | ' | 41.82 | ' | ' | ' | ' | ' | ' | ' |
Weighted average life remaining [years] | '3 years 4 months 17 days | '3 years 4 months 17 days | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | 34.33 | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercisable | $139 | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Stock Options Granted and Compensation Expenses (Detail) (CAD) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Risk-free interest rate | 1.32% | 2.23% | 0.00% |
Expected dividend yield | 2.00% | 2.00% | 0.00% |
Expected volatility | 34.00% | 43.00% | 0.00% |
Expected time until exercise | '4 years 6 months | '4 years 6 months | '0 years |
Weighted average fair value of options granted in year [Cdn$] | 14.02 | 15.37 | 0 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Reduction in Stated Value of Company's Common Shares (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of shares, Awarded and not released, Beginning balance | 882,988 | 1,026,304 | 1,182,736 |
Number of shares, Release of restricted stock | -152,512 | -143,316 | -156,432 |
Number of shares, Awarded and not released, Ending balance | 730,476 | 882,988 | 1,026,304 |
Stated value, Awarded and not released, Beginning balance | $30 | $35 | $40 |
Stated value, Release of restricted stock | -5 | -5 | -5 |
Stated value, Awarded and not released, Ending balance | $25 | $30 | $35 |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Restricted Stock Unit Programs Outstanding (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity Classified RSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding, Beginning Balance | 605,430 | 367,726 | 181,732 |
Granted | 224,841 | 320,131 | 208,458 |
Dividend equivalents | 1,262 | 1,895 | 2,022 |
Redeemed | -199,679 | -84,322 | -24,486 |
Number of options outstanding, Ending Balance | 631,854 | 605,430 | 367,726 |
Liability Classified RSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding, Beginning Balance | 20,099 | 29,806 | 34,242 |
Granted | 13,825 | 15,364 | 4,150 |
Dividend equivalents | 624 | 1,133 | 946 |
Redeemed | -4,429 | -26,204 | -9,532 |
Number of options outstanding, Ending Balance | 30,119 | 20,099 | 29,806 |
Liability Classified DSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding, Beginning Balance | 206,923 | 198,446 | 186,348 |
Granted | 30,716 | 37,456 | 22,669 |
Dividend equivalents | 2,815 | 5,145 | 4,696 |
Redeemed | -113,007 | -34,124 | -15,267 |
Number of options outstanding, Ending Balance | 127,447 | 206,923 | 198,446 |
Release of Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options outstanding, Beginning Balance | 832,452 | 595,978 | 402,322 |
Granted | 269,382 | 372,951 | 235,277 |
Dividend equivalents | 4,701 | 8,173 | 7,664 |
Redeemed | -317,115 | -144,650 | -49,285 |
Number of options outstanding, Ending Balance | 789,420 | 832,452 | 595,978 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recorded in Selling, General and Administrative Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Incentive Stock Option Plan [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | $40 | $42 | $31 |
Selling, general and administrative expenses [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | 35 | 38 | 34 |
Selling, general and administrative expenses [Member] | Incentive Stock Option Plan [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | 15 | 19 | 21 |
Selling, general and administrative expenses [Member] | Long-term retention [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | 4 | 5 | 7 |
Selling, general and administrative expenses [Member] | Restricted stock unit [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | 16 | 14 | 6 |
Selling, general and administrative expenses [Member] | Fair value adjustment for liability classified DSUs [Member] | ' | ' | ' |
Stock Based Compensation [Line Items] | ' | ' | ' |
Incentive Stock Option Plan | $5 | $4 | ($3) |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) | 0 Months Ended | 12 Months Ended |
Nov. 08, 2013 | Dec. 31, 2013 | |
Vote | ||
Equity [Abstract] | ' | ' |
Preference shares included in authorized capital stock | ' | 99,760,000 |
Shares issued or outstanding | ' | 0 |
Number of votes per share | ' | 1 |
Number of common stock shares to be purchased under the Bid | 12,000,000 | ' |
Percentage of issued and outstanding common shares | 5.40% | ' |
Commencement date of Bid | ' | 'November 13, 2013 |
Termination date of Bid | ' | 'November 12, 2014 |
Capital_Stock_Summary_of_Norma
Capital Stock - Summary of Normal Course Issuer Bids (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Share Repurchase Programs [Line Items] | ' | ' | ' |
Shares purchased | 14,082,321 | 895,032 | 10,747,300 |
Cash amount | $1,013 | $40 | $407 |
2010 Bid [Member] | ' | ' | ' |
Schedule Of Share Repurchase Programs [Line Items] | ' | ' | ' |
Maximum number of shares | 8,000,000 | ' | ' |
Shares purchased | 0 | 0 | 7,546,500 |
Cash amount | 0 | 0 | 296 |
2011 Bid [Member] | ' | ' | ' |
Schedule Of Share Repurchase Programs [Line Items] | ' | ' | ' |
Maximum number of shares | 12,000,000 | ' | ' |
Shares purchased | 0 | 467,630 | 3,200,800 |
Cash amount | 0 | 21 | 111 |
2012 Bid [Member] | ' | ' | ' |
Schedule Of Share Repurchase Programs [Line Items] | ' | ' | ' |
Maximum number of shares | 12,000,000 | ' | ' |
Shares purchased | 11,572,598 | 427,402 | 0 |
Cash amount | 814 | 19 | 0 |
2013 Bid [Member] | ' | ' | ' |
Schedule Of Share Repurchase Programs [Line Items] | ' | ' | ' |
Maximum number of shares | 12,000,000 | ' | ' |
Shares purchased | 2,509,723 | 0 | 0 |
Cash amount | $199 | $0 | $0 |
Capital_Stock_Maximum_Number_o
Capital Stock - Maximum Number of Shares Outstanding Exercised or Converted (Detail) (Common Shares [Member], March 6, 2014 [Member]) | Dec. 31, 2013 |
Common Shares [Member] | March 6, 2014 [Member] | ' |
Class of Stock [Line Items] | ' |
Common Shares | 221,187,872 |
Stock options | 5,455,690 |
Total number of shares outstanding | 226,643,562 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total accumulated other comprehensive income | $313 | $496 | $422 |
Balance, beginning of year | 496 | 422 | ' |
Net unrealized (loss) gain | -39 | 75 | -41 |
Net unrealized loss | -5 | -4 | -6 |
Balance, end of year | 313 | 496 | 422 |
Accumulated Translation Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total accumulated other comprehensive income | 454 | 629 | 547 |
Balance, beginning of year | 629 | 547 | 759 |
Net unrealized (loss) gain | -133 | 86 | -171 |
Repurchase of shares under normal course issuer bids [note 19] | -42 | -4 | -41 |
Balance, end of year | 454 | 629 | 547 |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total accumulated other comprehensive income | -20 | 34 | -23 |
Balance, beginning of year | 34 | -23 | 40 |
Net unrealized (loss) gain | -39 | 75 | -41 |
Reclassification of net gain to net income | -15 | -18 | -22 |
Balance, end of year | -20 | 34 | -23 |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total accumulated other comprehensive income | -117 | -168 | -107 |
Balance, beginning of year | -168 | -107 | -58 |
Net unrealized gain (loss) | 44 | -72 | -52 |
Reclassification of net gain to net income | 7 | 11 | 3 |
Balance, end of year | -117 | -168 | -107 |
Accumulated Net Unrealized Investment (Loss) Gain [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total accumulated other comprehensive income | -4 | 1 | 5 |
Balance, beginning of year | 1 | 5 | 11 |
Net unrealized loss | -5 | -4 | -6 |
Balance, end of year | ($4) | $1 | $5 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Schedule of Net Income Amounts Reclassified from AOCI (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Sales | $34,835 | $30,837 | $28,748 |
Cost of sales | -30,287 | -27,019 | -25,434 |
Income tax | -360 | -324 | -202 |
Net of tax | -15 | -18 | -22 |
Net of tax | 7 | 11 | 3 |
Total gains reclassified to net income | -142 | 80 | -289 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total gains reclassified to net income | 8 | 7 | 19 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Sales | 3 | 24 | 16 |
Cost of sales | 18 | -1 | 15 |
Income tax | -6 | -5 | -9 |
Net of tax | 15 | 18 | 22 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Long Term Liabilities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Cost of sales | -8 | -14 | -5 |
Income tax | 1 | 3 | 2 |
Net of tax | ($7) | ($11) | ($3) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Summary of Income Tax Benefit (Obligation) to Component of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Balance, beginning of year | ($13) | $12 | ($15) |
Net unrealized loss (gain) | 11 | -30 | 18 |
Reclassification of net gain to net income | 6 | 5 | 9 |
Balance, end of year | 4 | -13 | 12 |
Balance, beginning of year | 36 | 24 | 1 |
Net unrealized (gain) loss | -21 | 15 | 25 |
Reclassification of net loss to net income | -1 | -3 | -2 |
Balance, end of year | 14 | 36 | 24 |
Total income tax benefit | $18 | $23 | $36 |
Accumulated_Other_Comprehensiv5
Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Equity [Abstract] | ' |
Amount of other comprehensive income is expected to be reclassified to net income during 2014 | $1 |
Amount of other comprehensive income net of income tax during 2014 | $1 |
Financial_Instruments_Foreign_
Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | U S Dollar [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] |
USD ($) | EUR (€) | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2018 [Member] | 2018 [Member] | 2018 [Member] | 2018 [Member] | MXN | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | 2018 [Member] | 2018 [Member] | USD ($) | CZK | GBP (£) | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | |
U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | U S Dollar [Member] | Euro [Member] | Short [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Mexican Peso [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Short [Member] | Short [Member] | Short [Member] | |||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | MXN | MXN | MXN | MXN | MXN | MXN | MXN | MXN | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | USD ($) | CZK | GBP (£) | ||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange forward contract, Purchases Exchange Rate | ' | ' | 1.05974 | 1.34745 | ' | ' | ' | ' | 1.04289 | 1.44078 | ' | ' | ' | ' | 1.03766 | 0 | ' | ' | ' | ' | 1.07747 | 0 | ' | ' | ' | ' | ' | ' | ' | 0.07128 | ' | ' | 0.0717 | ' | ' | 0.07166 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 0.74048 | 1.14482 | 0.03956 | ' | ' | ' | ' | ' | ' | 0.74375 | 1.1917 | 0.03945 | ' | ' | ' | ' | ' | ' | 0.73702 | 0 | 0.03904 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange forward contract, Sales Exchange Rate | ' | ' | 1.03832 | 1.40577 | ' | ' | ' | ' | 1.04592 | 1.42922 | ' | ' | ' | ' | 1.06735 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 1.0804 | 0 | ' | ' | ' | 0.07678 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0.75973 | 1.16896 | 0.0389 | ' | ' | ' | ' | ' | ' | 0.75549 | 1.16338 | 0 | ' | ' | ' | ' | ' | ' | 0.7506 | 1.17217 | 0 | ' | ' | ' | ' | ' | ' | 0.73141 | 0 | 0 | ' | ' | ' |
Notional amount of foreign currency derivatives | ($983) | € 46 | ' | ' | $206 | € 47 | $656 | € 12 | ' | ' | $54 | € 12 | $332 | € 1 | ' | ' | $17 | € 0 | $185 | € 0 | ' | ' | $85 | € 0 | ' | ' | $2 | € 0 | 6,191 | ' | 3,509 | 2 | ' | 2,174 | 0 | ' | 510 | 0 | ' | 0 | ' | 0 | ($208) | 3,624 | £ (14) | ' | ' | ' | $37 | 2,142 | £ 31 | $123 | 8 | £ 42 | ' | ' | ' | $6 | 1,303 | £ 13 | $80 | 0 | £ 15 | ' | ' | ' | $2 | 187 | £ 0 | $34 | 0 | £ 1 | ' | ' | ' | $16 | 0 | £ 0 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Sales [Member] | CANADA | UNITED STATES | Forward Contracts [Member] | Natural Gas Swap Contracts [Member] | Natural Gas Swap Contracts [Member] | |
USD ($) | CAD | USD ($) | CAD | Customer | Gigajoule | MMBTU | USD ($) | USD ($) | USD ($) | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange forward contracts, gain recognized in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | $62 | ' | ' |
Foreign exchange forward contracts, loss recognized in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 1 | 4 |
Swaps outstanding fixed price | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' |
Swap fixed price | ' | ' | ' | ' | ' | ' | ' | 6.5 | 7.06 | ' | ' | ' |
Face value of investments | ' | ' | ' | 107 | ' | 107 | ' | ' | ' | ' | ' | ' |
Trading securities | 1,646 | 1,612 | 92 | 99 | 90 | 90 | ' | ' | ' | ' | ' | ' |
Fair value of investments carrying value | 4 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt due within one year | $230 | $249 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of sales to six largest customers | ' | ' | ' | ' | ' | ' | 83.00% | ' | ' | ' | ' | ' |
Number of customers | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' |
Financial_Instruments_Schedule
Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) | 12 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | USD ($) | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Prepaid Expenses [Member] | Prepaid Expenses [Member] | Prepaid Expenses [Member] | Prepaid Expenses [Member] | Other Assets [Member] | Other Assets [Member] | Other Accrued Liabilities [Member] | Other Accrued Liabilities [Member] | Other Accrued Liabilities [Member] | Other Accrued Liabilities [Member] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Held-for-trading | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trading securities | $1,646 | $1,612 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,554 | $1,522 | $92 | 99 | $90 | 90 |
Held-to-maturity investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance investments | 5 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investments | 4 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | 5,246 | 4,774 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term receivables included in other assets [note 12] | 111 | 95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 5,357 | 4,869 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other financial liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank indebtedness | 41 | 71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt (including portion due within one year) | 332 | 361 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 4,781 | 4,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 5,154 | 4,882 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives designated as effective hedges, measured at fair value, Assets | 62 | 69 | ' | ' | ' | ' | 42 | 37 | ' | ' | 20 | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives designated as effective hedges, measured at fair value, Total | -4 | 47 | -3 | 49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives designated as effective hedges, measured at fair value, Liabilities | ($65) | ($20) | ' | ' | ($1) | ($2) | ' | ' | $0 | $2 | ' | ' | ($37) | ($11) | ($1) | ($3) | ($28) | ($9) | $0 | ($1) | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Derivati
Financial Instruments - Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting [Abstract] | ' | ' |
Assets, Gross amounts presented in Consolidated Balance Sheets | $62 | $69 |
Assets, Gross amounts not offset in Consolidated Balance Sheets | 42 | 20 |
Assets, Net Amounts | 20 | 49 |
Liabilities, Gross amounts presented in Consolidated Balance Sheets | -65 | -20 |
Liabilities, Gross amounts not offset in Consolidated Balance Sheets | -42 | -20 |
Liabilities, Net Amounts | ($23) | $0 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (CAD) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ' |
Amount related to damages | 3.5 |
KS Centoco Ltd [Member] | ' |
Loss Contingencies [Line Items] | ' |
Number of subsidiaries sued by KS Centoco Ltd | 2 |
Percentage of equity interest owned by Company | 23.00% |
Percentage of equity interest owned by third party | 77.00% |
MST Automotive Inc [Member] | ' |
Loss Contingencies [Line Items] | ' |
Percentage of equity interest owned by Company | 77.00% |
Percentage of equity interest owned by third party | 23.00% |
Segmented_Information_Addition
Segmented Information - Additional Information (Detail) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2013 | Aug. 31, 2012 | |
Center | E-Car [Member] | |
Operations | ||
Markets | ||
Employee | ||
Country | ||
Segment Reporting Information [Line Items] | ' | ' |
Number of manufacturing operations | 316 | ' |
Number of product development, engineering and sales centres | 84 | ' |
Number of Countries in which Entity Operates | 29 | ' |
Number of employees | 125,000 | ' |
Number of primary markets | 2 | ' |
Interest acquired in E-Car partnership | ' | 27.00% |
Percentage of non-controlling interest in an equity accounted investment | ' | 73.00% |
Segmented_Information_Schedule
Segmented Information - Schedule of Information with Respect to Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | $34,835 | $30,837 | $28,748 |
External sales | 34,835 | 30,837 | 28,748 |
Depreciation and amortization | 1,063 | 801 | 686 |
Adjusted EBIT | 1,905 | 1,750 | 1,217 |
Goodwill | 1,440 | 1,473 | 1,196 |
Fixed asset additions | 1,170 | 1,274 | 1,236 |
Fixed assets, net | 5,441 | 5,273 | 4,236 |
Other expense (income), net | -144 | 108 | -156 |
Interest expense (income), net | -16 | -16 | 6 |
Current assets | 9,923 | 9,135 | 8,146 |
Investments, goodwill, deferred tax assets and other assets | 2,626 | 2,701 | 2,297 |
Consolidated total assets | 17,990 | 17,109 | 14,679 |
Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 34,835 | 30,837 | 28,748 |
External sales | 34,835 | 30,837 | 28,748 |
Depreciation and amortization | 1,063 | 801 | 686 |
Adjusted EBIT | 2,065 | 1,658 | 1,367 |
Goodwill | 1,440 | 1,473 | 1,196 |
Fixed asset additions | 1,170 | 1,274 | 1,236 |
Fixed assets, net | 5,441 | 5,273 | 4,236 |
North America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 656 | 701 | 644 |
North America [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 17,954 | 16,335 | 14,855 |
External sales | 17,859 | 16,241 | 14,764 |
Depreciation and amortization | 598 | 432 | 358 |
Adjusted EBIT | 1,645 | 1,521 | 1,373 |
Goodwill | 656 | 701 | 644 |
Fixed asset additions | 645 | 615 | 558 |
Fixed assets, net | 2,347 | 2,206 | 1,867 |
North America [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | -1,182 | -1,046 | -1,023 |
External sales | 0 | 0 | 0 |
Fixed asset additions | 0 | 0 | 0 |
Fixed assets, net | 0 | 0 | 0 |
North America [Member] | Canada [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 6,734 | 6,343 | 5,951 |
External sales | 6,223 | 5,907 | 5,552 |
Fixed asset additions | 167 | 158 | 115 |
Fixed assets, net | 601 | 660 | 586 |
North America [Member] | United States [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 8,409 | 7,518 | 7,025 |
External sales | 7,938 | 7,053 | 6,514 |
Fixed asset additions | 349 | 294 | 281 |
Fixed assets, net | 1,135 | 973 | 804 |
North America [Member] | Mexico [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 3,993 | 3,520 | 2,902 |
External sales | 3,698 | 3,281 | 2,698 |
Fixed asset additions | 129 | 163 | 162 |
Fixed assets, net | 611 | 573 | 477 |
Europe [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 655 | 611 | 392 |
Europe [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 14,718 | 12,709 | 12,556 |
External sales | 14,525 | 12,563 | 12,429 |
Depreciation and amortization | 355 | 283 | 259 |
Adjusted EBIT | 375 | 165 | -22 |
Goodwill | 655 | 611 | 392 |
Fixed asset additions | 361 | 378 | 423 |
Fixed assets, net | 2,169 | 2,132 | 1,602 |
Europe [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | -387 | -188 | -189 |
External sales | 0 | 0 | 0 |
Fixed asset additions | 0 | 0 | 0 |
Fixed assets, net | 0 | 0 | 0 |
Europe [Member] | Western Europe Excluding Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 11,813 | 10,089 | 10,124 |
External sales | 11,544 | 9,927 | 9,963 |
Fixed asset additions | 225 | 246 | 284 |
Fixed assets, net | 1,463 | 1,490 | 1,111 |
Europe [Member] | Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 975 | 961 | 913 |
External sales | 968 | 952 | 909 |
Fixed asset additions | 24 | 15 | 7 |
Fixed assets, net | 70 | 58 | 53 |
Europe [Member] | Eastern Europe [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 2,317 | 1,847 | 1,708 |
External sales | 2,013 | 1,684 | 1,557 |
Fixed asset additions | 112 | 117 | 132 |
Fixed assets, net | 636 | 584 | 438 |
Asia [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 129 | 74 | 74 |
Asia [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 1,684 | 1,289 | 1,074 |
External sales | 1,539 | 1,188 | 982 |
Depreciation and amortization | 64 | 42 | 31 |
Adjusted EBIT | 85 | 49 | 68 |
Goodwill | 129 | 74 | 74 |
Fixed asset additions | 114 | 214 | 204 |
Fixed assets, net | 597 | 558 | 378 |
Rest of World [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 0 | 87 | 86 |
Rest of World [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | 889 | 822 | 525 |
External sales | 889 | 822 | 524 |
Depreciation and amortization | 20 | 17 | 7 |
Adjusted EBIT | -76 | -77 | -12 |
Goodwill | 0 | 87 | 86 |
Fixed asset additions | 20 | 56 | 32 |
Fixed assets, net | 102 | 128 | 107 |
Corporate and Other [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total sales | -410 | -318 | -262 |
External sales | 23 | 23 | 49 |
Depreciation and amortization | 26 | 27 | 31 |
Adjusted EBIT | 36 | 0 | -40 |
Goodwill | 0 | 0 | 0 |
Fixed asset additions | 30 | 11 | 19 |
Fixed assets, net | $226 | $249 | $282 |
Segmented_Information_Schedule1
Segmented Information - Schedule of Information with Respect to Segment (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity loss | $196 | $151 | $121 |
Corporate and Other [Member] | E-Car [Member] | Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity loss | ' | $35 | $66 |
Segmented_Information_Schedule2
Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | $34,835 | $30,837 | $28,748 |
General Motors [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 6,394 | 5,704 | 6,202 |
Fiat or Chrysler Group [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 5,137 | 4,637 | 3,864 |
BMW [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 4,882 | 4,100 | 4,191 |
Ford Motor Company [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 4,450 | 3,848 | 3,549 |
Volkswagen [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 4,047 | 3,835 | 3,187 |
Daimler AG [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | 3,949 | 3,367 | 2,793 |
Other Customers [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue from external customers | $5,976 | $5,346 | $4,962 |
Segmented_Information_Summary_
Segmented Information - Summary of External Revenues by Automotive Products and Services (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | $34,835 | $30,837 | $28,748 |
Exterior And Interior Systems [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 12,308 | 11,673 | 11,020 |
Body Systems And Chassis Systems [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 7,874 | 7,123 | 6,056 |
Powertrain Systems [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 4,634 | 3,825 | 3,667 |
Complete Vehicle Assembly [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 3,062 | 2,561 | 2,690 |
Tooling, engineering and other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 2,823 | 2,317 | 2,065 |
Vision And Electronic Systems [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | 2,193 | 2,132 | 2,066 |
Closure Systems [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from external customers | $1,941 | $1,206 | $1,184 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Subsequent Event [Line Items] | ' |
Income tax payable period | '3 years |
Minimum [Member] | ' |
Subsequent Event [Line Items] | ' |
Tax expense | 25 |
Maximum [Member] | ' |
Subsequent Event [Line Items] | ' |
Tax expense | 30 |